While analysts decry the flat state of the retail industry, the partners behind independent apparel designer and manufacturer Sanctuary Clothing of North Hollywood tell a different story. “Pretty much all of our accounts are up 20 to 25 percent from last year,” said co-founder and partner Debra Polanco. “Right now the products are retailing really, really well. We’re getting a lot of re-orders something like that hasn’t happened, like, in the past two or three years.” That growth is just the tip of the iceberg, said Ken Polanco, the other co-founder who is also Debra Polanco’s husband. “In three years we plan to do $100 million.” He can make that bold statement, he said, thanks to the company’s new partnership with Camuto Group, a Connecticut-based company that started as a footwear designer and has been evolving into a major brand manager of footwear and apparel. On Feb. 4, Sanctuary sold 50 percent of its stake to Camuto. “Sanctuary was looking for a bigger brother,” said Ken Polanco, one “that could take it to a level of lifestyle where we thought we were headed; where our vision is.” The partnership allows Sanctuary to retain creative direction while getting assistance in things like marketing and sales. “We’re very excited to have them on board as one of the brands for this group,” said Hillary Fritz, president of designer apparel for Camuto Group. “They’re a high profile, indie spirit, LA-based company that we felt would be a good fit.” We really believe it has huge potential because their style appeals to so many different types of customers,” said Fritz, “and as the line expands there will be other initiatives such as footwear, (coming in the Fall of 2009) and handbags.” One of the first initiatives of the new collaboration is the construction of an exclusive 2,200-square-foot showroom in New York City, which opened last week. “That will be their very first showroom, devoted just to their brand and with a devoted sales team,” said Fritz. These are heady times for the husband-and-wife team who have been working together for 20 years; the last nine as business partners. Ken Polanco said he has always been an entrepreneur, starting out selling bootlegged t-shirts outside of rock concerts when he was in his early 20s. He went legit not long after that, starting a company called California High Tech that did screen printing. “At the time, I had about 40 employees, at my high point,” said Ken Polanco. “I went from t-shirts to actual cut garments.” It’s also where he met a client who became his wife. Beyond shirts Following Ken Polanco’s vision of moving beyond just shirts, the new couple formed a new company: Rockpool USA. The company was successful, the couple said, churning out about 300,000 garments a month for private labels. But nine years later, the couple was burned out and their silent investors were clamoring to have the Polancos buy them out. It was time to re-evaluate their business and their lifestyle, the couple agreed. Their new direction was inspired by a road trip to Santa Fe, N.M. On a whim, Ken and Debra Polanco took a side trip to the little town of Chimayo, the site of El Sanctuario; a shrine referred to by the archdiocese of Santa Fe as the “Lourdes of America.” Afterwards, the two said they sat down over margaritas and created a list of all the things they liked about the business, and what they didn’t. One thing they wanted, Ken Polanco said, “was to create a sanctuary where we wanted to go to work everyday.” Now they have that with a 5,000-square-foot design facility on Cahuenga Boulevard which is home to about 25 of their 31 employees; the others are in another 5,000-square-foot shipping center nearby. Family business Son Jeff, 29, is sales coordinator and is responsible for international business while Ken Polanco’s 81-year-old mother Bea opens the doors every day and keeps all the paperwork in order. The partnered Polancos live in Toluca Lake with their three daughters, now ages 11, 15 and 16. Ken Polanco runs the “hard” side of the business. During a tour of the company headquarters, he is quick to point out the large plotter and talks about how Sanctuary’s equipment allows them to go from design, to pattern creation, to cutting cloth in one day, if needed. Debra Polanco, the creative lead, oversees two other designers and four assistant designers. On the same tour, she showed off a rack of clothes from their “party” line for 2008 soft rose, cool grey and smooth black with a vintage feel; and talked animatedly about plans for the 2009 spring collection’s colors and fabrics. Sanctuary’s tops, bottoms and jackets, the Polancos say, can best be categorized as belonging in the contemporary market. Most of their pieces retail for between $100 and $200; with about half of sales being to major department stores, like Bloomingdale’s, and the rest to specialty stores, like Anthropologie. “Sanctuary has always been an important part of our casual business,” said Nicole Sewall, a senior buyer for Anthropologie, a division of Urban Outfitters. “We carry them in all of our Anthropologie stores.” That means 109 stores throughout the U.S.: Locally, Sanctuary pieces can be found at Anthropologie in the Simi Valley Town Center; The Oaks in Thousand Oaks; and their recently-opened third area store at the Americana at Brand complex in Glendale. Sewall, who has been with Anthropologie for four years, declined to release sales figures or revenues for Sanctuary’s offerings, but was happy to talk about the clothes themselves. “They suit our customers’ lifestyle,” she said. “They’re easy to wear, comfortable and current.” While that last sentence aptly describes one side of the Polancos themselves, the couple also clearly has a shared entrepreneurial vision. In describing his evolution as a businessman, Ken Polanco said, “First I had the top, then I had the sleeves, then I went to the full garment, and now I need (to move on to) the other parts of the body.” Laughing at that, Deborah Polanco adds, “We want your entire closet.” SPOTLIGHT – Sanctuary Clothing Revenues in 2008: $25 million (projected) Revenues in 2007: $15 million Employees in 2008: 33 Employees in 2007: 31

One of the longest awaited groundbreakings in recent memory will take place May 12, when construction will commence on the controversial 101-bed South Addition of Providence Holy Cross Medical Center in Mission Hills. For more than two years, Community Advocates for Responsible Expansion at Providence Holy Cross (CARE) has requested that the hospital complete an environmental impact report for the $146 million expansion project, a move Providence isn’t legally obligated to make. In spite of the environmental concerns about the project, the City Council decided late last year not to overturn the Planning Commission’s July 2007 approval of the hospital’s expansion, clearing the path for construction to begin. Now, Holy Cross faces just one problem: The CARE coalition has filed a lawsuit against the city to stymie the project. The first hearing is set for July 14 and, depending on its outcome, construction on the project could be halted months after ground is broken. For now, though, the hospital is approaching the groundbreaking with an upbeat attitude. “It’s very exciting construction is beginning,” Holy Cross spokesman Dan Boyle said. If construction continues uninterrupted, the project will be finished sometime in 2010. “It’s a big project, and we’re ensuring everything is being done correctly.” Once complete, the addition stands to be the first “green” hospital building in the state. To earn such a designation, it will be certified through the Leadership in Energy and Environmental Design (LEED) Grand Building Rating System. There are currently just three LEED-certified hospital buildings nationwide. The celebration of the project’s groundbreaking, to take place at 10 a.m., will feature a bevy of local dignitaries, including Los Angeles County Supervisor Zev Yaroslavsky. Councilman Tony Cardenas has also been invited to appear. Holy Cross officials, such as Administrator Kerry Carmody, Bishop Gerald Wilkerson and Dr. David Solarte, who will serve as medical director of the project’s Neonatal Intensive Care Unit, will also be on hand. Though the suit against the city could eventually affect construction, Boyle feels that the hospital’s expansion project is just one of many issues involved in the court order. “This trial has a lot to do with city protocol, with how they approve projects,” he said. “It’s regarding much more than the Holy Cross construction project. It’s regarding protocols through the city Planning Commission and appeals through the City Council.” Because the CARE coalition did not request an injunction to stop construction, building will go on indeterminately until a ruling is given. Wayde Hunter, president of the North Valley Coalition of Concerned Citizens Inc., a CARE member, said that an injunction would have been filed but the group didn’t have enough money to make such a move. “For them, at this point to break ground, especially when an appeal has been filed and it is in Superior Court, it’s very risky for Holy Cross to go ahead and start doing what they’re doing,” Hunter said. “We’re talking about air. We’re talking about the parking, the traffic, the whole series of problems they’re not addressing.” Hunter, who lives in nearby Granada Hills and is a member of the Granada Hills North Neighborhood Council, believes that Holy Cross has not been a good neighbor. When CARE requested that the medical center build a parking structure to remedy what the group perceives as a parking shortage, Holy Cross officials told CARE that it had created more parking spaces than mandated by the state, according to Hunter. But CARE believes such standards are out-of-date and inadequate. Hunter said that many community residents who don’t know that the hospital is expanding already complain about how hard it is to find parking in the area. If Holy Cross had performed an environmental impact report, as CARE had requested, hospital officials would have had to find ways to minimize the project’s environmental effects, such as the perceived parking problems. However, performing an EIR would have delayed the project by 18 months, Holy Cross administrators argued. Moreover, the city Planning Commission only required the hospital to perform a mitigated negative declaration, which required it to revise the project to ensure that the environmental impact would be insignificant. CARE “is asking for an EIR no matter what, and we’re not legally required or recommended to have one,” Holy Cross Administrator Carmody told the Business Journal last year. But the EIR issue is not the only reason CARE opposes the project, Hunter said, for the group isn’t against the expansion itself. “That is my hospital,” he explained. “I live in Granada Hills, which is a few miles over, so why would I do anything to jeopardize my health services? I would like them to expand but not irresponsibly.” By breaking ground, he added, “They’re thumbing their noses at all of us.” Holy Cross officials maintain that, by completing the expansion, the hospital is adding much-needed beds during a period in which hospital closures are straining resources. “If CARE wins their lawsuit, the judge could basically rule that construction would have to stop,” Boyle said. On the other hand, the judge could rule that construction could continue, but the city would have to change its protocol for approving such projects. For now, “There’s no way of stating what effect (a ruling) would have on construction or whether we would appeal,” Boyle said. “There’s so many different scenarios that would have to happen.”

Operating on the wrong body part, leaving surgical instruments in the body or allowing patients to develop ulcers during their hospital stays are just a few of the medical errors that result in an estimated 44,000 patient deaths per year in medical facilities throughout the nation. In what the company says is a bid to improve the quality of care hospitals provide to patients, Anthem Blue Cross recently announced that it will no longer reimburse hospitals for services that result in serious and preventable adverse medical events, also known as “never events.” “We are listening to our members, business coalitions, and our key accounts who want to know their health plan is looking out for them,” Anthem Blue Cross President Leslie Margolin stated. “As a strong advocate for patient safety, Anthem firmly believes that putting processes in place that focus on preventing these events can have an immediate impact on health care safety and quality.” This is the first phase of Anthem’s new initiative, which is modeled on a policy introduced by the Centers for Medicare and Medicaid Services (CMS) last August and criteria developed by the National Quality Forum in 2002. “CMS has piloted this first. What we’re doing is looking closely at CMS wanting to mirror those policies,” said Anthem Blue Cross Chief Medical Officer Dr. Zeinab Dabbah. “We’re still working on details for the process of reaching out to various physician groups.” In light of the new initiative, no one will be charged if surgery is performed on the wrong body part or on the wrong patient or if the wrong surgery is performed on the right patient. Moreover, there will be no additional charges if objects are left in the body during surgery, there is an air embolism or blockage, blood incompatibility or a hospital-acquired injury. The same is the case if certain kinds of infections or ulcers develop during a hospital stay. The goal is to help protect Anthem Blue Cross’s eight million members from additional payments resulting from these errors, according to the company. Dabbah said that preventable errors can cost about $4,700 per day. “Not only are we paying for the cost, but the premiums go higher.” In some instances of adverse events, both the hospital and the physician are responsible, such as when surgery is performed on the wrong patient. In others, such as when a patient develops an ulcer from being stationary at length, only the hospital would be responsible. Asked how much money Anthem can expect to save in light of its new policy, Dabbah balked. “I hope we don’t save a penny,” she said. “These things should never happen. We never did any financial analysis. If the facilities or physicians do the right thing, there would be no money saved.” This begs the question: Why aren’t hospitals already striving to prevent medical errors? Dabbah agreed that hospitals should always aim to prevent medical mistakes. Yet, she said, the fact that medical error kills more people per year than the number who die on highways means that greater action needs to be taken. “They’ve made great progress, but somebody needs to be more accountable,” Dabbah said. “That will make people put more money into preventing the errors.” Dabbah isn’t alone in that view. Assemblyman Mike Feuer is so concerned about preventable medical mistakes that he introduced a bill that would make a policy such as the one Anthem has adopted law. Thus far, Dabbah said that Anthem has had virtually no resistance to its new reimbursement policy. “I’ve been very pleasantly surprised,” she said. “We’ve only gotten positive feedback, whether from facilities or physicians. I haven’t had any negative feedback.” In the period leading up to Anthem’s announcement about its new policy, the company made a series of waves in the area of medical error prevention. It has included patient safety metrics in its Quality-in-Sights Hospital Incentive Program and in its Member Health Index program, the first program in the industry to track and compare the collective health of all health plan members based on 20 clinical areas and 40 separate component measures, according to the company. Anthem has also supported the Institute for Healthcare Improvement’s Million Lives campaign, a voluntary initiative to protect patients from medical harm through December 2008. Lastly, the company has participated in Leapfrog’s patient safety survey to reduce preventable medical mistakes and improve the quality and affordability of health care. The steps Anthem has taken in the realm of medical error prevention have elicited praise from the National Patient Safety Foundation. “Anthem Blue Cross’ efforts to concentrate on patient safety and work toward eliminating avoidable hospital errors are commendable and commensurate with our goals for a safer health care system that must realign itself to pay on the basis of safety and quality,” NPSF President Diane Pinakiewicz stated. “It is important that our industry find ways to correct the systems issues that allow avoidable errors to occur, and Anthem Blue Cross’s leadership in the field will help move us in this direction.”

Welcome to Valley Biz Seen, a new reader-driven feature. Send us your photographs of Valley business people being feted, awarded, commended or just taking part in interesting regional events. Don’t forget to include the names of the people in the pictures, a brief highlight of the event including when and where the picture was taken and contact information in case we have any questions. Photos should be a minimum resolution of 200 dpi and at least 4″ x 4″ in size.

Developer Rick Caruso’s Americana at Brand in Glendale has enjoyed nearly two weeks of immense publicity surrounding its May 2 opening the long-awaited sequel to Caruso’s hugely successful Fairfax-area development The Grove. But success of the so-called “lifestyle center” could come down to two issues parking and the development’s residential element. Back in 2002, high prices for parking had shoppers steering clear of the Hollywood and Highland project until rates were reduced. At the Americana, shopping is free for the first hour, $3 for the second hour and increases by $2 for each subsequent hour up to a daily maximum of $9. Valet parking is available. Moviegoers can receive a validation for four hours from Pacific Theaters; while the Cheesecake Factory and Katsuya restaurants, Barnes & Noble and three other retail stores offer two-hour validations. Across the street, parking is free for Glendale Galleria patrons. “Ample, convenient parking is always important for our customers and our retailers and our employees,” said Janet Lefevre, senior marketing director for the Galleria. “We’re very much watching what’s going on with parking and trying to monitor the situation.” <!– Living easy at the Americana at Brand in Glendale. –> Living easy at the Americana at Brand in Glendale. With just one entry point to the 3,000-space parking structure that is dedicated to retail customers, getting in may be challenging, especially during peak times. Residents in the Americana complex will have a separate parking entrance to an underground garage of their own. “We know we’re going to have a problem with parking because we always do,” said the project’s developer Rick Caruso, “but it’s above the city code.” The opulent parking lobby, with its marble floors, crystal chandelier and self-playing grand piano may soothe shoppers. The second make-or-break issue is the project’s residential mix. These are tough times for those in the luxury living sector of the industry, with a large supply of both high-end apartments and condominiums recently opened or coming online soon between Pasadena, Downtown L.A. and Woodland Hills. While Caruso has exhibited he knows what he’s doing when it comes to retail the Commons in Calabasas; The Oaks in Thousand Oaks and the Grove in West Los Angeles are all very successful shopping centers by all accounts the residential component is new to him. “It’s been a very interesting learning experience for all of us,” said Caruso of dealing with this new component, “because what appears to be something that is simple and straightforward from a design standpoint becomes very complicated when you’re layering underground parking, then retail podium, and then residential.” The Americana has two categories of residences: 238 luxury apartments aptly named The Residences were 20 percent leased prior to the grand opening, while 100 condominiums are expected to open later in the year. When asked what his target market was for the residences, Caruso quipped, “Anybody with a buck.” Getting serious, he said that young professionals and empty nesters were their expected tenants, but that it was surprising that families with young children were also expressing an interest. It’s not known if these people are aware that skateboards and bicycles will be off-limits on the Americana’s “streets.” Rents for the apartments range from $2,000 to $5,500 per month, with one-bedroom, one-bath units starting at 675 square feet and the largest, townhome-style units as large as 1,928 square feet. According to Glendale native and Realtor Phyllis Harb of Dickson Podley Realtors, those prices are going to be a tough sell. A typical one-bedroom in Glendale rents for about $1,100. To come up with an apples-to-apples comparison, she suggested the Park Towers luxury high-rise condominium complex. Although these are privately owned, leases do come available from time to time. Most recently, Harb said, a 1,450-square-foot corner unit with two bedrooms and two baths was snapped up for $2,500 a month. Amenities are comparable with the Americana: a doorman and concierge service, swimming pool and barbecue area, private gym and spa, but the Towers also offers two tennis courts. Harb said she has had people express an interest in the Americana residences, but after finding out what the prices were, that interest vanished. She hasn’t yet visited the project. The only other truly comparable project local to Glendale, because it also has residential over retail, is Paseo Colorado in Pasadena. Prices there are comparable, with studios starting at $1,755 and the largest two-bedroom units renting for as much as $3,485 per month. The leasing manager for the complex did not return phone calls, but Jodi Taylor-Zens, director of marketing for the retail portion of the project, said the biggest challenge of the apartment-over-retail concept is noise. “I think you have to be the kind of person who understands you’re living in a downtown environment where trash trucks come early and stores get deliveries early in the morning and at night restaurants and bars are open late with music and people,” she said. The Paseo also has one thing the Americana doesn’t its own grocery store. “It certainly makes it easier,” said Taylor-Zens, but it shouldn’t be a deal-breaker, she added. The Americana does have a Rite-Aid where staples are available. Plus, residents can always run over to the three-story Target at the Galleria for some foodstuffs. With the tough residential market, only time will tell if Caruso’s bet was a good one. “You don’t build an airplane for calm weather alone,” Caruso said, apologizing for the corny analogy, “The economy will have its ups and downs, but we’re investing $400 million for the long-term.” The retail side is 98 percent leased, outperforming the pro form, he added. “The apartments don’t worry me at all and neither do the condos.”

The slowdown in the overall economy isn’t necessarily slowing down Palmdale. Last month ground was broken for a new Embassy Suites hotel, a seven-story structure that will be the tallest building in the city when completed. Not far away work continues on the multi-story Palmdale Regional Medical Center expected to open later this year. New shopping areas remain under construction, including one on the east side of the city that includes one of the first Super Target stores in southern California. The city has big plans on the horizon a power plant and a conference center to host large meetings. All this activity takes place as a drop in retail revenues, building permit fees and property tax revenue forced two rounds of layoffs of city staff 11 workers in February, and 39 in March. An additional 20 unfilled positions remain vacant. Like other areas of the region the real estate market has nosedived, leading to notices of default on mortgage payments and foreclosures. Empire Land, master developer of the Anaverde community filed for bankruptcy protection, raising doubts on the construction of an agreed to school and fire station. Still, Palmdale Mayor Jim Ledford remains confident that future is bright, stating that the long-term projects of the power plant and conference center will not sink or swim on an upturn or downturn in the economy. “We are the beneficiaries of an area growing outside of its boundaries,” Ledford said. It’s a scenario Palmdale has been through before. In the early 1990s, the aerospace and defense contractors making up some of the largest employers in the Antelope Valley lets thousands of workers go due to cutbacks in defense spending. Job loss is less a factor in the current downturn as much as the real estate bust and the credit crunch. The difference between a stock market slowdown and one involving real estate is the length of the recovery, which is longer for real estate, said Mel Layne, president of the Greater Antelope Valley Economic Alliance. A year ago, about 70 percent of Valley homeowners receiving notices of default on a mortgage payment redeemed themselves. That number dropped to 40 percent in the first quarter of 2008 which indicates to him that owners either cannot re-work the loan or cannot sell their home, Layne said. In the next six months, the Antelope Valley should expect weak home sales and consumer spending and soft job growth, said Mark Schniepp, a principal with the California Economic Forecast in Santa Barbara when giving his economic forecast before business leaders and public officials in Lancaster in April. Despite that prediction, chain retailers and restaurants will need workers when they open their doors this year pushing up the already abundant numbers of hourly employees in the service sector. True, Lockheed Martin and Northrop Grumman are among the largest employers in the city but there is only one each of those. Fast-food restaurants, drug stores, and retail outlets have multiple locations spread across Palmdale and into Lancaster. The Los Angeles County portion of the Antelope Valley had more than 13,000 wage and salary jobs in the retail trade sector in 2007. The lodging and food service sector had 7,100 jobs that year, according to Schniepp’s report. Retail The Palmdale Gateway shopping center will open on 70 acres on the east side of the city, with a Super Target, Staples and Home Depot among the anchors. The stores in the center are expected to draw shoppers from throughout the southeast Antelope Valley. This and other retail projects move forward even as sales decreased by 5.78 percent in the third quarter of 2007, the most recent data available. In 2006, total retail sales topped $1.7 billion in Palmdale. A Staybridge Suites has been proposed by Phil Barney, the owner of the Holiday Inn, and a Hilton Garden Inn opens this year. When the Embassy Suites opens in 2009 it will be the first full-service hotel to open in Palmdale in several years. Filling existing and new hotels is not expected to be a problem, with aerospace firms taking rooms during the work week and weekends filled by those coming to take part in sporting events, such as soccer or softball tournaments. “Lockheed Martin puts in thousands of room nights alone,” said David Walter, the economic development manager. “There are not a lot of hotels they contract with. Embassy Suites will be one of those.” While Ledford concedes there is a heavy emphasis on service industry jobs in the city, he adds that job growth is an evolution. The restaurant and retail jobs service an immediate need, he said. With a retail infrastructure in place, light industrial development is expected to follow; the type of companies employing residents that keep wages in the local economy. In 1999, the city bought property that it turned into a 99-acre business park, selling off the individual lots. Some companies in the park, such as U.S. Pole and Delta Scientific relocated to Palmdale from the San Fernando Valley. The city now has plans for a second business park at Avenue M and 10th Street West. Palmdale is a great opportunity for companies to invest because they can purchase for the same amount that they can lease in other areas of the Los Angeles region, Ledford said. The city also owns 600 acres at Avenue M and Sierra Highway as the proposed location of a power plant. A 500-megawatt natural gas-powered turbine will sit on half the property and a solar array will take up the other half. A city-owned plant provides a stable source of local power and allows for cost savings for residents and companies alike, Ledford said. “Power generation will be necessary for us to move forward,” Ledford said.

The Santa Clarita Film Office issued 63 percent more permits in April when compared with the previous year. The 31 permits for on-location filming made for the best April ever for the city’s film office. In April 2007, the office issued 19 permits. In recent weeks Santa Clarita has seen increases in television production, which was severely affected by the television and screenwriters’ strike. Such production contributes more than $20 million in economic benefit annually to Santa Clarita and its businesses.

Bankers and housing market analysts are warning of a chilling new trend in the mortgage world: Homeowners voluntarily defaulting on their loans even though they can actually afford to make the payments. It’s known colloquially as “walking away,” or more jocularly as “jingle mail,” from the sound your house keys supposedly make when you mail them back to your bank. It’s a way of saying that Americans are beginning to apply a cold financial calculation to home ownership: When a home’s value has fallen below what is owed on its mortgage, they feel it makes no sense to keep up the payments. For the full story visit http://www.latimes.com/business/la-fi-walkaway11-2008may11,0,1641820.story

Construction on the Valley Performing Arts Center at Cal State Northridge has begun. An official groundbreaking ceremony was held April 30 at the site. The proposed center, which will be completed in two years, has been the focus of the university’s attention for the last few years. It will be both a public venue for holding a wide variety of arts productions as well as a teaching facility. CSUN officials as well as supporters of the center promise that it will be a top-notch facility with productions rivaling those of downtown L.A. venues. CSUN has all but $29 million of the $125 million necessary to finish the 1,700-seat venue. A public-private partnership is making the center happen. More than half of the money already obtained comes from state bonds with $15 million coming from other campus earmarked funds. Private donors have given $15 million. No naming rights have been granted for the venue, although officials certainly want to do that if a large enough gift is obtained. Corporate naming rights have not been ruled out. In fact, major corporate gifts have been few and far between in fund-raising for the center. A major corporate campaign is about to get underway, according to Vance Peterson, CSUN Vice President of University Advancement. So the ball has been thrown to the business community in the Valley to get behind the center both financially and in spirit. With this in mind, I requested a meeting with CSUN President Jolene Koester to look at the Valley Performing Arts Center from a businessperson’s perspective and to ask some questions I know some of our readers have about the project. Koester had VP Peterson sit in on the meeting. I asked about content at the center. What’s going to be there? Will a Valley businessperson who attends many productions downtown and in other parts of Los Angeles be able to give up any season tickets they have at those places since the Valley will have a top-notch venue? Koester said that the Valley center will have world-class productions but it is merely another option for those seeking culture. “We’ve always conceived this performing arts center as adding to choices,” Koester said. “What we’re hoping to create are new audiences,” she added. The center has an agreement with the L.A. Music Center to help provide programming for the Valley venue. But Koester assures us that we won’t get castoffs that the Music Center doesn’t want. The lineup will include full-scale Broadway-type productions, symphony, opera, dance and opportunities for movie screenings and premieres. There will be some student performances, but that will be less of the content, Koester said. The second big thing I tried to get at with the CSUN officials was execution of the site. Yes, will this thing really come off as planned and will it be a consistent top performer that the Valley can be really proud of or will it be something half-baked that the rest of L.A. would expect from the 818? Those of us who have lived in the Valley for awhile know that sometimes we expect too little of ourselves. It’s just the way it is. “It’s going to be world-class programs in a world-class facility,” Koester assured. I believe her and believe that corporations large and small should get behind this thing and bring it over the $29 million mark in construction fundraising and support it when it opens. Why? – We deserve it. There are 1.8 million people just in the San Fernando Valley and over 2 million in our surrounding valleys who can support this thing. That’s a number far bigger than some states. Besides, our area is so spread out that it has become a major hassle to get to those Hollywood and downtown L.A. performances. “The single biggest problem we have in L.A. is traffic congestion,” said Bob Rawitch, CSUN alumnus, Valley businessman and university foundation board member. “I don’t view it as a rival to downtown as a venue but an alternative to downtown as a venue , an excellent alternative.” – Other than downtown L.A. and Thousand Oaks, there’s nothing like this in our suburban Valleys. Once again, there are over 2 million people here. – CSUN does have world-class music and arts programs. Of any state school, it can pull it off. – The arts have been decimated in lower grades in public education. This will provide a place for kids to get exposed to things they wouldn’t otherwise come upon. The dumbing down of our country has got to stop. If we support this, we at least are helping to raise the level of education in our local area. For businesses, that’s a definite plus. This is reason enough for supporting the center. It’s a bad time to be asking businesses or anybody for money. But if you ever thought about a long-term investment, this is a really good one. This will be something you can see the benefits of directly. Every weekend, maybe. Vance Peterson talked about the intangibles from supporting the center. It adds to quality of life, he says. You can’t deny that. The center promotes high-quality talent, he added. Good for education and that’s good for business. To those who say CSUN should be spending time and money on other things such as curriculum upgrades: To that I say the center will be a curriculum upgrade. Once again, CSUN is known nationally for its music and arts programs. This enhances it greatly. I asked about restaurants. Yes, restaurants. Northridge has few top-notch restaurants that could enhance a high-class arts experience. To that, the CSUN officials respond by saying that the center will create great opportunities for businesspeople to start those types of restaurants. Build it and they will come. That’s what I say about the Valley Performing Arts Center. Business Journal Editor Jason Schaff can be reached at (818) 316-3125 or at [email protected] .

The Los Angeles City Council commemorated Earth Day last month by passing an ordinance requiring large privately-built construction projects to meet new “green” building standards. Ordinance 179820 established the Green Building Program and applies to all new construction and renovation projects encompassing more than 50,000 gross square feet that are submitted for plan check after Nov. 1. Residential projects of six or fewer stories have an additional year before they must comply. The Leadership in Energy and Environmental Design (LEED) ratings system will be used as the enforcement tool. The LEED ratings have different levels of environmentally-responsible building standards for every conceivable type of construction, from single-family homes to hospitals, and including renovations of existing projects as well. One incentive being offered to those going beyond the most basic LEED rating is priority processing of plans and permits. The measure stops short of requiring builders to actually receive LEED certification, a notion that has left some puzzled. “I think that’s yet to be determined whether that was prudent,” said Shelley Billik, vice president of environmental initiatives for Warner Bros. They were one of the first in the area to pursue LEED certification for their 56,000-square-foot renovation, serving as a pilot project for the CI-ratings (commercial interiors) program. Warner Bros. received a “silver” rating, the second-highest “You don’t want to say we complied with the LEED standards you want to say we’ve achieved LEED silver or LEED gold certification,” she said. Project Management Collaborative LLC, an Encino-based firm that oversees design and construction projects, is currently shepherding a 13,000-square-foot retail building in Westwood through the design and plan check process, including trying to achieve a LEED silver rating. Development Impact When asked about the impact of LEED certification on the development process, PMC Field Manager Mitch Brill said “It is going to impact your schedule on pulling the design together.” He points out that this impact may be lessened if the architect has its own in-house LEED accredited consultant. Even though the project is supposedly receiving expedited plan check service, thanks to its “green” status, Brill hasn’t really noticed any difference in processing time. That may be, in part, because the plans were submitted just prior to the end of 2007, when many were rushing plans into plan check to avoid having to comply with beefed-up 2008 building codes. That situation will likely be repeated at the end of this year, this time with developers who are trying to avoid complying with the new City LEED ordinance. The city has created a Green Building Team with the mission, according to the proclamation, being to “encourage innovation, to remove obstacles to green building, and to facilitate the City’s sustainable green building objectives.” The GBT will be comprised of representatives 14 City officials’ offices, starting with the Mayor’s Office which will be the chair of the committee, and will hold monthly meetings. An annual report will be issued along with a Green Building Report Card. This is not to be confused with the Green Team L.A., an initiative of the city attorney’s office, “to help childcare facilities identify and eliminate environmental hazards that put children, families and communities at risk.” In addition to the cost of a LEED-accredited professional who will certify compliance, applicants will also be required to pay an additional $268 processing fee. That’s a small upfront price, say proponents of the ordinance, when the long-term savings are so great. “What green building gives you are facilities that are much more efficient,” said Billik, “so you have a building that’s going to help you in terms of lower operating costs and lower maintenance costs.” The Greater Los Angeles chapter of BOMA (Building Owners and Managers of America) will be hosting a lunchtime seminar about green buildings and LEED standards on June 12 in Glendale. Call (213) 629-2662 for registration information. AT A GLANCE: Green Building Ordinance – All new projects greater than 50 units or 50,000 square feet must show compliance with the LEED Certified level. – Expedited processing through all departments, if LEED Silver designation is met. – Initiate an ongoing review of city codes to ease use of environmentally sound and superior materials and processes. – Create a cross-departmental Sustainability Team that will meet weekly to review and revise green building policies and specific projects. – Direct City General Managers and department and agency heads to train and certify their staff in green building methods and policies and/or as LEED Accredited Professionals. – Work with the Board of DWP Commissioners to continue to add DWP financial incentives for projects that meet standards. – Recognize exemplary efforts by individuals and companies in the private sector with the Mayor’s Annual Award of Excellence in Sustainable Design & Construction. Adapted from http://mayor.lacity.org/greenbuilding.htm