BusinessBusiness LeaderLeader EconomicEconomic DevelopmentDevelopment forfor thethe RegionsRegions ofof LosLos AngelesAngeles CountyCounty www.LAEDC.org County Economic Development Corporation Fall 2008

THE MOST BUSINESS-FRIENDLY CITY FINALISTS In This Issue: Cerritos • Glendale • Long Beach • Pasadena • Santa Clarita • Kyser Center forecasts weaker economy Culver City • La Mirada • Monrovia • Santa Fe Springs • Vernon

• SCLC and LAEDC issue On September 16, 2008, the “Because of the overwhelming actually lost jobs in that period, report on water strategies LAEDC announced the finalists strength of the applications while others have added many for its Most Business-Friendly received, we decided to create two new jobs. Much of the reason • LAEDC urges preserva- City in Los Angeles County categories to recognize these for that disparity is that many award. This year, the LAEDC very deserving cities,” said Bill cities are more proactive than tion of Enterprise Zones created two categories for this Allen, LAEDC President and CEO. others about attracting and award to recognize cities with “This is an extraordinarily retaining quality jobs that pay • Strategic Advisory populations of 50,000 and encouraging sign that more and good salaries and generate Committee Reports above and those with 50,000 more cities are being proactive healthy tax revenues. and under. in their efforts to retain and • Sony Studios hosts attract quality jobs and Last year, the City of Lancaster LAEDC Summer Mixer The cities of Cerritos, Glendale, businesses in their communities. was the winner for the 2007 Long Beach, Pasadena, and The ability and commitment of Most Business-Friendly City in • Membership Survey Santa Clarita are finalists for the our local governments to attract L.A. County competition. The population 50,000+ category, and retain good jobs is City of El Segundo was the first Results and Culver City, La Mirada, absolutely essential if our region winner in 2006. There is a Monrovia, Santa Fe Springs, and is to sustain its economic vitality three-year moratorium before a Vernon are finalists in the and quality of life.” winning city can reapply for the population 50,000 and under award. category. One winner from each In the past 25 years, the County category will be announced live of Los Angeles has added more Read more about each city at the 13th Annual Eddy than 2.5 million residents, but finalist on page 6. Awards® on November 17 at the only about half a million jobs. Beverly Hilton Hotel. Some cities in the County have (Continued on page 6)

Antonovich, LAEDC, WTCA connect with China L.A. County Supervisor leads a successful China trade mission

With the support of the World Trade Center Association Los Angeles - Long Beach and the Honoring LAEDC, Los Angeles County Supervisor Michael D. Antonovich Rick J. Caruso and led a delegation to China in The Walt Disney September 2008 to encourage direct investment from China to Los Angeles County.

Monday, November 17 “Los Angeles County is the The Beverly Hilton gateway to the North American Alex Pan of PricewaterhouseCoopers, WTCA L.A. - Long Beach President market,” said Supervisor Vance Baugham, LAEDC Chairman Ray Holdsworth, L.A. County Supervisor Full details on page 7. Michael Antonovich, Senior Vice President China MinMetals Corporation Xu Siwei, and LAEDC President & CEO Bill Allen. (Continued on page 4) silver lining in gloomy economy Jack Kyser and panel of experts discuss the economy’s grim outlook and the advantage of FDI

We did see it coming. So did the 350 in and -affiliated businesses in the county were market outlook from Richard A. Weiss, Chief attendance at the 2008 Mid-Year Economic retail trade, wholesale trade, manufacturing, Investment Officer, City National Bank. Forecast event at the Los Angeles Marriott finance and insurance, and transportation Downtown on July 16. and warehousing. The list of such In California, the unemployment rate in establishments includes 7-Eleven, Toyota, August reached 7.9 percent compared to 5 The LAEDC and the Kyser Center for Honda, Motel 6, Trader Joe’s, Circle K stores, percent in 2007. Kyser offered a slightly Economic Research revealed their outlook for Nestle, Sunglass Hut, and A.C. Nielsen. optimistic outlook, pointing out that “muted the California economy as being “on the brink growth will return in 2009.” of a recession,” that some parts of the state Among the British companies with a presence are already in recession, and the causes of in L.A. County is BT Americas, one of the Another silver lining Kyser provided is that the downturn will persist into 2009. However, world’s leading providers of communications “…the region has some industry sectors that the findings from the LAEDC’s Foreign Direct solutions and services operating in 170 are still growing such as international Investment (FDI) Study released on the same countries. “The company chose El Segundo for tourism, technology, healthcare, and private day showed major contributions to our local their corporate headquarters for its availability education. Moreover, it has a large and economy from foreign direct investments, of talented and experienced workforce and growing population and business base, and is creating 359,000 Los Angeles County jobs innovation in the area,” said Dibbo. a magnet for foreign investment.” and $1 billion in state and local taxes. The L.A. region is also an important market Despite these areas of positive growth, The Forecast event was comprised of two for SOEX, a Germany-based textiles recycling California is in a drought and water supply will panel discussions. The first panel focused on company, who, for more than 25 years, has affect the agriculture industry as well as the impact of FDI in Los Angeles County. taken discarded textiles and turned them into development patterns. Government budgets LAEDC Vice President and Senior Economist reusable products used in industries such as are under extreme stress. Program and job Dr. Nancy D. Sidhu highlighted the FDI Study the automobile industry in the manufacture cuts are possible. High fuel costs will findings while James Dibbo, Vice President & of insulation materials. According to Kölln, continue to hurt businesses and consumers, CFO, BT Americas (United Kingdom), and 10 percent of all trash in L.A. City’s landfills is and could change the way key industries such Michael Kölln, Director, SOEX (Germany) comprised of textiles. That equates to 100,000 as international trade and tourism operate. offered their insights on the benefits of doing tons of textiles that are discarded annually. business in Los Angeles County. On the housing market side, Kyser said a SOEX has established a pilot plant located in housing recovery might come as late as 2010. The study determined that a foreign-owned Vernon, just outside of Los Angeles. While However, Burns saw demand for housing to establishment is a Los Angeles County firm this plant only does sorting, it provides a continue to trend upward but cautioned that that is at least 10 percent owned by a parent channel for the reduction of waste in our there will be significant bumps along the way. company located in a country outside the U.S. landfills. The company is currently exploring In this groundbreaking FDI report, the LAEDC the opportunity to establish a full-fledged The housing slump, slow economic growth, rising counted 4,521 such establishments plant in Los Angeles County, which would oil prices and unemployment is also adversely operated by companies from 52 foreign bring 1,000 new jobs to the region. affecting the U.S. economy and financial countries. The top foreign sources of markets, according to Weiss. He shared ownership were: Japan (1,413); United The second panel featured the Economic strategies for weathering the slowdown and Kingdom (794); France (360); Germany Forecast report from LAEDC SVP and Chief positioning for the turnaround. (334); and Canada (278). Economist Jack Kyser, housing market expertise from John Burns, President, John Save the date for the 2009-2010 Economic The top industry sectors for foreign-owned Burns Real Estate Consulting, and financial Forecast on February 18, 2009.

LAEDC would like to thank our sponsors and partners for the 2008 Mid-year Economic Forecast

- - PRESENTING SPONSOR - - - - EVENT SPONSORS - - - - MEDIA PARTNERS - -

•LOS ANGELES DAILY NEWS •L.A. DOWNTOWN NEWS

- - FDI PANEL & STUDY SPONSORS - - •BUSINESS LIFE MAGAZINE •SAN MARINO TRIBUNE •KNX 1070

2 LAEDC Business Leader - Fall 2008 Bringing SoCal to the Water SCLC and LAEDC Consulting collaborate on a drought solution for the region

In July 2008, the LAEDC Consulting reaching and potentially dire consequences urban water conservation, local storm water department released the preliminary findings for Southern California. capture, recycling, ocean desalination and from its study, Where Will We Get The Water? groundwater desalination. Assessing Southern California’s Future Water “Our local, regional water agencies and Strategies. Commissioned by the Southern private water companies need to work •Urban water conservation is one of the most California Leadership Council (SCLC) and together to devise and implement a regional promising and least costly options to extend other sponsors, the study identifies and water reliability strategy which uses Southern our water supplies. There are three primary compares water supply and reliability options California’s full array of water resources and strategies for encouraging water conservation: for the region in light of the declining supplies infrastructure, including exchange programs, prices increases, regulations, and rebates. from our traditional water import sources, the underground storage, and other shared Colorado River, the Sacramento/San Joaquin services to meet our future water needs,” •Local storm water capture and increased Delta, and the Owens River. explained SCLC Executive Director Lee use of ground water storage are the next Harrington. largest and most cost effective alternatives. It California is heading toward a water crisis. The is an attractive strategy because every acre- spring of 2008 was the driest in 88 years, and “Private sector companies will partner in foot of water sourced locally reduces the rivers across the state are running dangerously such efforts including the investment of need to import water from outside the region. low. Furthermore, mountain snow pack has needed capital for facilities,” said SCLC Co- been subject to increased evaporation, a chair Floyd Wicks, CEO of Golden State Water •The wastewater could be cleaned up to the condition likely to be exacerbated in future Company. same standards as drinking water and years by climate change. The disaster in New returned to the local water supply. The “ick” Orleans has also brought attention to the aging Interagency cooperation to share water factor is one of the biggest obstacles, but levees in the Sacramento-San Joaquin Delta resources and minimize unnecessary water attitudes are changing. Southern California system. An earthquake or levee breach could transfers can be a no-cost or reduced-cost water agencies have developed several disrupt the intricate flow of water into and out option to meet the region’s needs and can be recycling projects with the intent of tapping of the Bay Area; such an event would create a facilitated by the Metropolitan Water District the large, reliable, local source offered by water disaster in all parts of the state from the (MWD). treated wastewater. East Bay to the Mexican border. “The Metropolitan Water District can be a •Ocean and groundwater desalination The three sources of Southern California’s value added facilitator in this effort,” said promises an extremely reliable (drought- imported water supplies--the Colorado River, Timothy Brick, MWD Chairman. proof) water supply that is limited only by the the San Francisco Bay-Delta, and the Owens cost of removing the salt and the energy River Valley--are all under pressure. Continued The solution to addressing the region’s water required to do so. But with the rise in population growth in California will place problem will have to incorporate a portfolio of demand for fresh water and improvement in greater demands on these sources. Water strategies. The LAEDC report evaluated five technologies, it could become a more shortages or disruptions would have far- strategies based on their potential including attractive option.

LAEDC NAMED IEDC AWARD FINALIST communities and regions. The award programs exceeded $6 billion from first- recognizes effective, innovative BRE year wages, local government tax receipts The LAEDC was selected as a finalist for the programs or initiatives which have been crossed the $100 million mark, and LAEDC 2008 Excellence in Economic Development established for a minimum of three years. served its 1,000th client. Awards by the International Economic Development Council (IEDC) for the The IEDC Excellence in Economic Business Retention and Expansion Development Awards recognizes the category. The LAEDC was selected as a world’s best economic development finalist in the 200,000+ population programs and partnerships; marketing category for its achievements in retention materials; and the year’s most and expansion. influential leaders. These prestigious awards honor organizations and The IEDC’s Business Retention and individuals for their efforts in creating Expansion (BRE) category was created this In the fiscal year ended March 31, 2008, positive change in urban, suburban, and year to honor economic development the LAEDC celebrated three key milestones. rural communities. The awards will be initiatives that focus on retaining and The economic impact on Los Angeles presented to the winners at the IEDC’s growing existing businesses within County from LAEDC’s Business Assistance annual conference in October 2008.

LAEDC Business Leader - Fall 2008 3 WTCA CHINA VISIT “This was an unprecedented opportunity to Los Angeles County and our global economy. (Continued from page 1) promote business investment from China to Los Angeles County,” said Baugham. “This The delegation’s last destination was a visit to Antonovich. “Our two ports handle mission was designed to harness a key Dalian at the invitation of Mayor Xia Deren. approximately $200 billion in trade with portion of the extraordinary growth that is There Supervisor Antonovich spoke at the China annually. With 244,000 business happening in China now.” annual Asia Pacific City Summit, and along establishments, 38,000 Asian-owned with Allen, met privately with Mayor Xia and businesses and more than 400,000 Chinese In Beijing, the delegation met with the China local business leaders. residents, Los Angeles County welcomes Investment Promotion Agency, Ministry of Chinese investment.” Commerce (CIPA). Currently, CIPA has signed MOUs with 14 states. They announced that they would sign an MOU with Los Angeles County to direct Chinese investment to the region. This would be the first such agreement with a county in the U.S.

“Los Angeles County is home to more than 4,500 foreign-owned businesses,” noted Allen. “Foreign direct investment creates jobs for more than 359,000 workers in Los Angeles County which represents nearly 10 percent of all private-sector workers in the County. Our mission was an important step in GKK Works Principal Praful Kulkarni, Bill Allen, attracting more investment to create more Mayor Xia of Dalian, and Supervisor Antonovich. such jobs in our region.” Alex Pan, Bill Allen, Vice General Manager of Shanghai Zhong-ou Auto Electric (ZOECO) Zhao Lanshan, Vance Baugham, and Squire Sanders & This trade mission laid the groundwork for Dempsey Senior Advisor, Chinese Business future collaborations and business Affairs, Yongzhou Bao at ZOECO in Shanghai. development opportunities from four major economic regions of China. As the Business Capital of America, Los Angeles County was During their trip the delegation, which was presented as the gateway for China trade. comprised of Supervisor Antonovich, WTCA Los Angeles County is an ideal location for Los Angeles - Long Beach President Vance expansion of the many China-based Baugham, LAEDC Chairman Ray Holdsworth, companies that are seeking entry into the and LAEDC President and CEO Bill Allen, U.S. marketplace because of the size of the visited the cities of Shanghai, Beijing, Tianjin, market, its accessibility to critical and Dalian. They met with 18 Foreign Direct infrastructure such as the world-class air and Investment (FDI) prospects, including two sea ports as well as its available workforce companies that announced plans to expand Supervisor Antonovich speaking about Los and quality of life. their Los Angeles County operations and four Angeles County at the World Economic Forum. others that announced plans to open a new This important mission was sponsored in part office in Los Angles County. The delegation by two LAEDC member organizations, also held two conferences resulting in 120 In Tianjin, the delegation attended the World PricewaterhouseCoopers and Squire, attendees, 32 business assistance requests, Economic Forum. In addition to meeting with Sanders & Dempsey LLP, and ChinaMart, an and 12 immediate FDI leads. CEOs of emerging global companies, LAX area development project that focuses on Supervisor Antonovich participated in panels supporting Chinese companies’ entry into the of leading experts discussing issues critical to the Los Angeles County market.

LAEDC members are cordially invited to attend the LLAAEEDDCC HHoolliiddaayy PPaarrttyy Wednesday, December 10. 5:30 - 8:00 p.m. California Club. Second Floor Dining Room. This is a members-only event. All attendees must be registered in advance. RSVP to Ashley Elliott at (213) 236-4864 or [email protected].

4 LAEDC Business Leader - Fall 2008 Preserving Enterprise Zones A statement from LAEDC President & CEO Bill Allen

The following commentary piece has been California’s Enterprise Zones remain one of benefits for employees and employers and submitted to several newspapers throughout the only dependable statewide tax incentives create economic growth and stability. These the region for possible publication as an op-ed. that local areas can use to encourage zones have been instrumental in helping businesses to stay or locate in-state. attract and retain scores of businesses in Working for a leading California economic areas that would not ordinarily have the development organization, I am often asked These zones provide tax incentives for capacity to do so. about the state of our economy and my businesses in economically-distressed areas thoughts on how we can get it back on track. to hire workers who face barriers to In Los Angeles County, zones range from Clearly, this is a top concern to citizens here employment. Returning veterans, laid-off economically-depressed urban environments in California and across the country. workers, government assistance recipients and in the cities of Los Angeles and Long Beach to other physically, mentally and economically- the more rural locales of the Antelope Valley We’ve seen a recent federal housing bill, challenged job seekers are all eligible for and Santa Clarita. Without an Enterprise Zone federal bank bailouts, and a lot of designation in these once neglected posturing on how to improve the economy communities, opportunities for local from elected officials in Washington, D.C. residents to achieve financial security and as well as from those campaigning for self-sufficiency would have vanished. elected office. No question that with the Eliminating these [Enterprise] That’s not to mention the social benefits struggling economy, steep energy prices, “ which would have been lost to these and dramatic job declines, our federally- zones would almost certainly communities; indeed, I don’t know of a elected officials must support policies make things worse in already more successful social program than that spur business growth and stimulate providing someone with a well-paying job. the U.S. economy. stressed areas, which would Terminating or suspending the Enterprise Like their federal counterparts, our state suffer further job losses, Zone Program to meet state budget cuts officials need to enact policies that economic decline and would be exactly the wrong prescription support economic development and for fixing our ailing economy. Eliminating growth. Similarly, state leaders must diminished quality of life. these zones would almost certainly make safeguard successful programs that have things worse in already stressed areas, been shown to generate jobs, reduce which would suffer further job losses, poverty levels and support local economic decline and diminished quality economies - this must be part of any of life. rational stimulus program. preferred hiring in Enterprise Zone regions. What’s more, the” working poor (single If anything, the state should strengthen its So why then would our state legislators be taxpayers making less than $16,334 or joint commitment to the Enterprise Zone Program considering phasing-out or suspending the filers making less than $32,668) employed at in these difficult economic times as a key California Enterprise Zone program, which for an Enterprise Zone business can obtain a mechanism to revitalize economically- almost 25 years has proven invaluable to state tax credit of up to $525 per year. challenged areas by providing incentives that creating thousands of jobs, decreasing create high-wage jobs and investment in poverty, and revitalizing entire communities? The program’s success rate is undeniable. It these communities. By responsibly doing so, has been fairly well-publicized that Enterprise state officials would not only strengthen local This is not a program that should be cut to Zones perform dramatically better than their economies, but strengthen the state’s long- help manage our state’s budget crisis. Just surrounding areas after designation. In fact, term economic foundation as well. the opposite. Even so, due to the current a recent Department of Housing and state budget deficit, the program is under fire Community Development report confirmed Too many of our state and local residents in Sacramento and may face severe that California Enterprise Zones have desperately need jobs. Until such time when reductions or outright elimination without outperformed the rest of the state in several this is no longer the case, there will always be swift intervention. key areas: poverty decreased by 7.35 percent a critical role for Enterprise Zones. This is one more than in the rest of the state, program our elected officials cannot ethically In these hard economic times, the California unemployment rates fell by 1.2 percent more afford to eliminate. Enterprise Zone Program plays a key role in than the rest of the state, household incomes revitalizing economically-challenged areas of grew 7.1 percent faster, and wages and salary 1 Enterprise Zone data from: “Report to the the state, encourages development in levels increased 3.5 percent more than the California Department of Housing and Community blighted neighborhoods and creates rest of the state.1 Development on Enterprise Zones”, Nonprofit economically-stable communities by embracing Management Solutions and Tax Technology entrepreneurship and private sector market Here in Los Angeles County, we have nine Research, LLC, California Department on Housing and Community Development (HCD), dated: 2006. forces to stimulate local economies. Enterprise Zones that deliver numerous

LAEDC Business Leader - Fall 2008 5 MBFC FINALISTS PASADENA provides R&D businesses and a municipal property tax or utility user’s tax. (Continued from page 1) facilities with incentives that include priority As a result, the City does not levy taxes on plan check reviews and fee reductions or electricity, telephone, gas, water or cellular CITIES WITH POPULATION OF 50,000+ waivers. Pasadena also boasts a number of telephones and does not have special programs designed to help businesses such as assessment districts. La Mirada does not A no-or-low property tax city, CERRITOS has a its business seminar series, small business impose impact or exaction fees on businesses business improvement district and has loan program, and small business incubators. looking to expand or relocate to the City. designated portions of the city as They have also designated certain parts of the “redevelopment project areas” providing city as an Enterprise Zone, and the Mayor and MONROVIA boasts no utility or parking taxes opportunities for innovative financing. The City Manager host special meetings with top and also offers financial relocation assistance City offers a streamlined permit process and level executives of businesses to identify new to businesses. The City has a designated is dedicated to strategic planning and high- development needs. business improvement district and also has quality development standards. They have two redevelopment project areas. As part of added three business-oriented planning zones SANTA CLARITA does not assess a utility user their outreach and transparency to the that promote appropriate land uses and tax, allowing businesses to save up to five business community, Monrovia regularly visits encourage the highest quality of design and percent or more on their electric, telephone, businesses in the area, conducts customer environment within the designated areas. water, and gas bills, and it has recently been service surveys, and hosts a CEO roundtable Cerritos was also named a finalist in 2007. designated as a State of California Enterprise which brings business leaders together. Zone. Santa Clarita offers its businesses and GLENDALE has created special zones for residents a highly educated workforce, SANTA FE SPRINGS strategically invested in business improvement and development and available land for development, site selection infrastructure, public safety, and other services has no business tax or license fees and no assistance, and expedited plan reviews and to help businesses prosper. They created a five- gross receipts tax. The city-wide economic permit processing. Santa Clarita was named year Redevelopment Implementation Plan to development program provides activities and a finalist in 2006 and 2007. highlight strategies for their economic projects aimed at creating an environment development efforts, and business and job promoting the success of the business CITIES WITH POPULATION LESS THAN 50,000 expansion activities. Expedited permitting and community. These activities include a one- formalized coordination among all departments stop permit center, career center, utility CULVER CITY offers several business incentive on all development projects are part of Santa consultation, façade improvement, programs that include permit fee Fe Springs’ effort to help businesses cut redevelopment agency assistance, and access reimbursement, permit streamlining, gap through the traditional layers of bureaucracy. to Glendale's demographic information. closer loans, and commercial façade rehabilitation loans. Their business resource VERNON provides its own water and natural A finalist in 2006 and 2007, LONG BEACH center offers a one-stop shop for information gas service, fiber optic system, and its own has demonstrated its commitment to assistance, guidance, and referral services, electric utility company with rates that are retaining jobs in its region through an and is available online as well. And their consistently ten to 40 percent lower than investment in the local business community outreach team meets with key businesses to those outside the City. The City does not have by offering Enterprise Zone benefits, discuss their individual business needs, a utility user tax and its redevelopment expedited permit processing, and a concerns, and issues. Prospective businesses agency has spent nearly $40 million on transparent, proactive government can also view available properties for lease or infrastructure improvements and land for comprised of civic leaders who understand purchase on the city’s website. economic development. Vernon also boasts the necessity of planned growth. Moreover, the distinction of “Most Competitive” among Mayor Foster holds monthly breakfast LA MIRADA was recognized as one of the least 12 other industrial cities (six in Southern meetings with select businesses to discuss expensive cities in which to conduct business California and six in other states), according issues and to identify solutions. by the Kosmont-Rose Institute “Cost of Doing to the Kosmont Companies business costs Business Survey.” La Mirada has never levied analysis report.

6 LAEDC Business Leader - Fall 2008 Dare to Dream LAEDC to honor Rick Caruso and The Walt Disney Company at the Eddy Awards®

“If you can dream it, you can do it,” said Walt theatrical productions, and parks and Disney. His maxim surely applies to The Walt resorts, Disney is an economic force fueling Disney Company and famed real estate the Los Angeles County region and beyond. developer Rick Caruso, the honorees of the 13th Annual Eddy Awards®. Their visions The Walt Disney Company is the highest and successes contribute to the prosperity of ranking Fortune 500 firm headquartered in the Los Angeles region. Los Angeles County, employing more than 10,000 people and contributing more than On Monday, November 17, at the Beverly $3.6 billion to the economy of Southern Hilton, the LAEDC will proudly present the California. Eddy Awards® to Anne Sweeney, Co-Chair of Disney Media Networks, and President, RICK CARUSO Disney-ABC Television Group, who is accepting the award of behalf of The Walt Rick Caruso is known for creating lifestyle Disney Company, and to Rick Caruso, centers such as The Grove in Los Angeles, President and CEO of Caruso Affiliated, in The Commons at Calabasas, and the newly- recognition of their exceptional contributions opened Americana at Brand in Glendale to positive economic development in the region. which attracts millions of visitors to Los Angeles County. The signature Eddy Awards® event is Monday, November 17, 2008 attended by several hundred of the region’s The Beverly Hilton Caruso has redefined the retail experience most influential business, government, and his commitment to developing high- education, and civic leaders and has become Honoring quality retail centers that push the bounds of one of the most prestigious award programs the industry has earned him numerous in the state of California. awards and recognition including “Developer and of the Year,” “Humanitarian of the Year,” and THE WALT DISNEY COMPANY RICK J. CARUSO “Man of the Year” to name just a few. The Walt Disney Company is a globally Developer of The Grove and He has earned a reputation as an recognized and beloved brand. Since its The Americana at Brand extraordinary businessman and a founding in 1923, Disney and its affiliated compassionate member of the community. companies have remained faithful to their 6:30 p.m. Reception & Silent Auction In addition to his many achievements, Caruso commitment to produce unparalleled 7:30 p.m. Dinner & Awards Program was the youngest Commissioner for the Los entertainment experiences based on the rich Angeles Department of Water and Power and legacy of quality, creative content and Sponsorship & Tickets also served as President of the Los Angeles exceptional storytelling. Across its multitude Nhien Barros (213) 236-4816 Police commission. of media networks, motion picture studios,

The 13th Annual Eddy Awards® Sponsors at Press Time

~ Platinum ~ ~ Silver ~

~ Gold ~ ~ Bronze ~ Boeing • City of Lancaster • City of Santa Fe Springs • Housing Authority of the City of L.A. Leo A Daly • Los Angeles Times • Mayer Brown • McKenna Long & Aldridge • Port of L.A. State Farm Insurance • Tejon Ranch • Wells Fargo • Woodbury University

LAEDC Business Leader - Fall 2008 7 New Faces on the Block LAEDC welcomes new staff members in Strategic Relations, BAP, and Kyser Center

REGIONAL MANAGER COVERAGE UPDATE YVONNE CHAVEZ SHANNON SEDGWICK Manager, Business Assistance and ELAN SHORE now permanently covers the San Economic Research Assistant Development Fernando Valley, and HENRY LEYVA handles Kyser Center for Economic Research Yvonne joined the projects in both the Antelope and the Santa Joining the LAEDC in LAEDC in July 2008. Clarita Valleys. June 2008, Shannon She is responsible for assists both the promoting Los Angeles In the interim, GRETA BOYE will take over Consulting department County’s vital economic Central and South Los Angeles in addition to and the Kyser Center strengths, business the Westside region. with data collection opportunities, diversity, and research. For competitive advantages Consulting, Shannon and unique benefits. NATASHA JONES develops subject-specific information and data for economic impact, industry Executive Assistant, Strategic Relations Yvonne previously served as the and issue studies. For the Kyser Center, Community Reinvestment (CRA) Officer Natasha joined the she manages data sets covering the for Community Bank and Senior Loan LAEDC in August 2008 State of California, Southern California, Officer of the Business Financial Center, with over four years as its counties and their sub-regions. She is a small business development and Executive Assistant to responsible for the annual “L.A. Stats” lending program of CHARO Community the CEO of National report containing the most frequently Development Corporation. Previous to Mobile Television. requested statistics for Los Angeles and her position at CHARO, Yvonne acted as surrounding counties. Capacity-Building Specialist for Special Prior to that, Natasha Services for Groups developing bilingual served as a Campaign Assistant at the Previously, Shannon managed an training curriculum and conducting Cathedral of Our Lady in Los Angeles, industrial and steel supply company in business/non-profit development assisting the campaign department and the Inland Empire where she identified workshops. Furthermore, Yvonne has overseeing volunteers. She has also held and targeted a diverse customer base, conducted training for nonprofit other clerical and call center positions. and analyzed product and customer organizations focusing on community patterns in the local industrial market to facilities and fund development. successfully increase revenues.

Yvonne earned a Master’s degree from GRETA BOYE A California native and L.A. resident, Regional Manager, Westside Univerity of Southern California School Shannon received her BA in Economics of Public Policy. She also serves as a Greta joined the LAEDC in from University of Southern California Board Member for the FDIC Alliance for June 2008. She recently with a minor in architecture. She is a Economic Inclusion and is a member of returned stateside after member of the Los Angeles Chapter of the National Latina Business Women’s working overseas for the the National Association for Business Association. last 15 years with projects Economics (NABE). funded by USAID, the World Bank, other international GABRIELE WARD donor agencies, and private ASHLEY ELLIOTT Associate, Business Assistance & companies. During that time, Greta advised Program Coordinator, Strategic Relations Development foreign governments and businesses on trade and investment issues and led teams Ashley joined the LAEDC in A recent graduate of promoting economic development. Most of July 2008. This University Howard University in the challenges she faced were related to of Southern California Washington D.C., Gabriele competitiveness. She has focused on creating Psychology graduate is the joined the LAEDC in July and retaining jobs, resolving red-tape primary point of contact for 2008. Previously, she challenges, and scoping new opportunities to membership information organized non-profit organi- react to changes in the international business and updates. zations, academic institu- environment. tions, and city governments Prior to the LAEDC, Ashley was part of the to responsibly rebuild the Lower 9th Ward in Greta holds an MBA in International Business Community Administrative Support Worker New Orleans, worked as an on-campus mar- from George Washington University and Program at the City of L.A. Department of keting consultant for Sports Illustrated and recently completed an MS degree in Speech Airports where she provided administrative JetBlue Airways, and volunteered as a teacher and Language Technology at the University of support to the HR Division and other division for inner-city youth in D.C. with Americorps. Edinburgh in Scotland. staff as requested.

8 LAEDC Business Leader - Fall 2008 Committee Fiscal Year-end Reports LAEDC Strategic Committee Chairs shed some light on L.A. County’s issues

At the May 2008 LAEDC Board Meeting, the O’Connor pledged that the Committee would cargo and passenger volumes that are LAEDC Strategic Advisory Committee chairs continue to provide input, write opinion expected during the coming years. provided updates on some of the critical editiorials and educate public officials on the issues facing Los Angeles County and importance of maintaining a jobs-housing WORLD TRADE COMMITTEE described some of the initiatives the balance that promotes economic growth and committees have been working on during the sustainable communities when making land “It is an exciting time for the international past fiscal year. Led by David Flaks, Director use decisions and developing land use policies. trade sector in L.A. County,” said Chair Roy of Policy Initiatives, the LAEDC standing Hearrean, Chairman, SWI Group. In 2007, committees convene on a regular basis to AVIATION COMMITTEE the L.A. Customs District two-way trade value engage members in the policy activities of the was $349 billion, ranking first in the nation. LAEDC by providing them with a forum to give The Aviation Committee has been busy this Hearrean announced that the Committee, input on certain key issues that affect, or past year as well. The Committee examined a which combines the capabilities of the LAEDC have the potential to affect, the Los Angeles number of issues ranging from increasing and WTCA Los Angeles - Long Beach, will County economy. runway capacity to improving accessibility in continue to help develop and shape and around the airport to renovating successful programs including consulate LAND USE COMMITTEE domestic and international terminals. Chair outreach and trade missions - the last of Viggo Butler, Chairman, United Airports which to India generated approximately $70 The mission of the Land Use Committee is to Limited, stated that Los Angeles World million in new business for L.A. County firm. preserve the county’s dwindling jobs- Airports has built an excellent executive The Committee will also continue to monitor producing industrial land. At the present, the management team that is proving to be a and weigh-in on certain significant and topical industrial land vacancy rate stands at 1.5 positive catalyst in providing the L.A. region policy issues that go to the heart of our percent countywide. In the central core of the with a modern, first-class, first-world airport international trade sector, including green City of L.A., the industrial vacancy rate is that it so desperately wants and needs. The growth at our twin ports, the Clean Air Action closer to about 1.0 percent, by far the lowest Committee plans to continue an active Plan, and goods movement challenges at the of any major metropolis in the nation. Chair educational campaign, including letter Ports of Los Angeles and Long Beach. Maura O’Connor, Partner, Seyfarth Shaw, writing, editorials and forming coalitions to said, “You cannot expect to have a vibrant educate the public and their representatives For more information about the LAEDC’s regional economy without requisite land to on the importance of renovating LAX in a way strategic advisory committees, contact David support the high-value jobs and industry that can conveniently and safely Flaks at [email protected] or (213) 236- sectors driving that regional economy.” accommodate the forecasted increase in air 4834.

AND THE MEMBERSHIP SURVEY SAYS... staff, and the LAEDC has already taken LAEDC is to keep abreast of issues steps based on the input received. facing the local economy. In August 2008, the LAEDC Strategic •LAEDC activities from which members Here are some result highlights: Relations Department conducted a member receive the most value include the survey. The purpose of the survey was to Economic Forecasts, Board of •92 percent of respondents feel they provide members an opportunity to share Governors meetings, Strategic Advisory are getting value from their LAEDC feedback on the LAEDC’s various programs Committees, and e-EDGE Weekly membership. and activities so that we can learn how to Economic Update. deliver more value to our membership. •91 percent would recommend the LAEDC to others. To encourage participation in the survey, The Strategic Relations Department •85 percent of respondents rate their one lucky respondent won two delivered the survey electronically to 244 overall membership satisfaction as complimentary orchestra seat tickets to the recipients and received a 34 percent “extremely satisfied” or “satisfied”. world premiere of ’s 9 to 5: The response rate. The survey responses have Musical, generously donated by the provided valuable information to the LAEDC •The main reason members join the Ahmanson .

I think this is the best organization of its kind I’ve ever been associated with and hope that more LA businesses come to understand the critical nature “ of the LAEDC’s work. ” Paul Rokich, Managing Director - Southern California Region Field Sales, FedEx

LAEDC Business Leader - Fall 2008 9 Membership Update Welcome new board and executive committee members and new member companies

NEW EXECUTIVE COMMITTEE Eric Duyshart Lupe Valdez MEMBERS Economic Development Manager Director, Public Policy & Community FEATURED LAEDC MEMBER City of Pasadena Affairs Corporate Relations Union Pacific Railroad Michael Bushey Mark Griffith Manager, Economic & Business Corporate + Commercial + Civic Barry Waite Development Market Sector Leader Business Development Manager Southern California Edison Perkins+Will City of Carson Mike Collins Ken Hitts Genine Wilson Managing Director Government Economic Development Manager Interim Region Manager Relations As America’s premier port City of Glendale Kelly Services Los Angeles World Airports and an undisputed center for global trade, THE PORT Samuel Hoi Mark Furlet NEW MEMBER COMPANIES OF LOS ANGELES is the key President Vice President & General Manager to Southern California's Otis College of Art and Design LA Mart CORPORATE MEMBER economic dominance. •City of Carson Jeff Keating Jerry Givens •City of Pasadena The Port has been the Executive Director, Public Affairs Senior VP/Local Executive Officer •City of South Gate leading containerport in the Western University of Parsons Brinckerhoff •Long Beach City College United States for eight Health Sciences •Los Angeles Southwest College consecutive years. This Kathy Irish •Otis College of Arts & Design thriving seaport not only Steve Lefever Executive Director, Economic •Parsons Brinckerhoff sustains its competitive Director of Community Development, Education & •Perkins+Will edge with record-setting Development Outreach Services •Santa Monica Community cargo operations, but is also City of South Gate Department of Water and Power College known for its groundbreaking City of Los Angeles •The Tax Credit Company environmental initiatives, Alan Long •Union Pacific Railroad progressive security measures Past President Carole Wagner Vallianos •Western University of Health and diverse recreational Beverly Hills/Greater Los Angeles Interim President and CEO Sciences and educational facilities. Association of Realtors L.A. Biomedical Research Institute •Woodbury University at Harbor-UCLA Medical Center Late in 2006, the Ports of Richard Nordin 2009 BOARD OF GOVERNORS Los Angeles and Long Beach VP University Advancement Nick Zappia approved the landmark San Woodbury University MEETING SCHEDULE Senior Vice President Pedro Bay Ports Clean Air US Bank Action Plan, the first plan of Doug Otto •January 21 its kind in the world aimed Trustee •February 18: Economic Forecast NEW BOARD OF GOVERNORS at air emissions reductions Long Beach City College •March 18 of 45 percent within five MEMBERS •April 15 years for all mobile sources. George Pardon •May TBD: Int’l Trade Outlook Makoto Anayama VP for Administration and CFO •June 17 Solidifying its role as an Chief Representative CA State University, Los Angeles •July 16: Mid-year Forecast environmental steward, the Japan Business Association •August TBD: Summer Mixer Port of Los Angeles remains Max Shenker •September 16 committed to managing Janet Blum Vice President of Client Services •October 21 resources and conducting Executive Director The Tax Credit Company •November TBD: Eddy Awards Port developments and Westside Economic Collaborative •December 9: Holiday Event operations in both an Mike Stockstill environmentally and fiscally Chito Cajayon Consultant Attendance at Board of responsible manner. Dean, Workforce & Economic Northgate Gonzales Markets Governors meetings is by mem- Development bership or invitation only. The Port of Los Angeles Santa Monica Community College Tod Sword celebrated its Centennial Project Manager, SoCal Edison For membership information, anniversary in 2007. It has Jack Daniels III, Ph.D. South Bay Economic Development please contact Gina Barro at been an LAEDC member President Partnership [email protected] or (213) since 1999. Los Angeles Southwest College 236-4815.

10 LAEDC Business Leader - Fall 2008 LAEDC Board Meeting Reports A recap of important issues and developing projects

MAY dependent upon each other; 60 percent are Recently legislation passed new earthquake operating with a positive margin; 40 percent standards for all California hospitals, the cost The International Trade Report Breakfast was are operating with a negative margin. of which is estimated to exceed $105 billion held in lieu of a May Board Meeting. for compliance. With low reimbursement Within the past five years, 11 hospitals have rates, the high and increasing costs of JUNE closed in Los Angeles County which puts a hospital staff, and the new seismic strain on the other hospitals in the system. requirements, hospitals are rightly concerned Lott stated that one out of every four about their future ability to provide care. Jim Lott, Executive Vice President, Healthcare individuals treated in an emergency room has Policy Development & Communications, no insurance, totaling $10.8 billion a year of Hospital Association of Southern California, JULY unpaid care. shed some light on the state of Southern California hospital industry. The LAEDC 2008 Mid-year Economic During the current state budget crisis, Forecast was held in lieu of a July Board Governor Schwarzenegger has recommended The County of Los Angeles has 116 hospitals, Meeting. For a complete recap,see page 2. cutting all programs 10 percent resulting in a 75 of which are acute care hospitals with $189 million budget cut in the hospital emergency rooms. These hospitals have an AUGUST industry in Los Angeles County. The cuts economic output contribution to the L.A. affect all Medicare and Medical patients economy of $47.2 billion or almost 12 The LAEDC Summer Mixer held in lieu of an including the nursing home population as percent. Hospitals in California are inter- August Board Meeting. well as physician payments. Summer Mixer on the Set LAEDC members, guests and staff mingled and toured Sony Studios in Culver City

Susan Champion (Lee & Associates), Dennis Erin Clark (City of Pasadena), Jan Swinton Champion (Walter Mortenson Insurance), Steve (Glendale Community College), David Kauffman Borowski (Metropolitan West Capital (Nixon Peabody), Ann Camp (CSU Dominguez Management), and Barry Hibbard (Tejon Ranch) Hills), Millie Garcia (CSU Dominguez Hills), and and Casey Hibbard. Mark Sadovnick (Sadovnick Partners).

Sony Pictures Senior Vice President, LAEDC members and guests mingle on the Government Affairs, and host of the LAEDC Mike Nuby (Southern CA Edison), Del Heintz street of Sony Studios’ 1st Avenue North. Summer Mixer Keith Weaver with LAEDC (Charter Communications), David Huntoon President and CEO Bill Allen. (Rose Institute), and Carrie Rogers (LAEDC).

LAEDC Business Leader - Fall 2008 11 LAEDC would like to thank the following Economic Leaders:

BUSINESS LEADER is published 3 times a year by the LAEDC Corporate Communications & Marketing Department

Bill Allen President & CEO Editor & Contributor

Nhien Barros [email protected] Director of Communications and Marketing Editor & Contributor

V. Oakley Boren [email protected] Communications Manager Designer & Contributor

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As the Southern California region’s premier business leadership organization, the LAEDC’s mission is to attract, retain, and grow businesses and jobs in the regions of L.A. County.