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labusinessjournal.com LOS ANGELES BUSINESS JOURNAL Volume 33, Number 22 THE COMMUNITY OF BUSINESSTM May 30 - June 5, 2011 • $3.00 Up Front Space Case
CERES INC. Green: Ceres execs examine saw grass.
Stars behind bars call Chickie Fuel Firm Hunts Leventhal, bail bondswoman. PAGE 3 For Seed Money ENERGY: Ceres hopes to turn People sweet sorghum into tasty IPO. By JOEL RUSSELL Staff Reporter
Is Wall Street ready to bet $100 million on a clean-burning fuel that comes from a plant called sweet sorghum? That’s the question Ceres Inc. in Thousand Oaks will ask as it plans an initial public offering disclosed in a prospectus last week. Investors will have to decide the likelihood of ever harvesting a profit from the company’s biofu- el technology. The risks include market acceptance of sorghum and the economics of farming once the Pop-up restau- company’s seeds move out of the lab. rants: why Ceres, founded in 1997 to develop genetically celebrity chef engineered seeds, has two commercial products: Ludo Lefebvre saw grass seed that it sells to farmers in the United cooked them RINGO H.W. CHIU/LABJ Transition: David Weinberg’s film studio moved into former defense industry office in El Segundo. States, and sweet sorghum seed for sale in the up. PAGE 14 United States and Brazil. Both seeds produce crops Defense exodus swells South Bay vacancies that can be turned into ethanol, a fuel used in auto- Comment Please see ENERGY page 56 By JACQUELYN RYAN Staff Reporter Corp. and Raytheon Co., have been quietly shut- tering offices as the government slashes defense N Rhythm & Hues Studios Inc.’s new El spending and the industry migrates closer to Wash- Segundo office, 20-something computer artists ington. That has left 420,000 square feet of space Texas Eyes L.A. Iin T-shirts, sneakers and jeans are designing vacant since the beginning of this year and 1.2 mil- 3-D images for the latest Hollywood flick. lion square feet since January 2010. A little more than two years ago, Computer The newly available space has attracted some For Capital Gains Sciences Corp. software engineers with pocket creative and high-tech companies, which see an protectors were doing classified work there for the opportunity to leave pricier Westside digs and take COMMERCE: Defense Information System Agency. advantage of good deals. Austin chamber Is L.A. in holding That kind of change is not unusual. “El Segundo was attractive in that real estate ups effort to poach businesses. pattern because Aerospace and defense contractors in the South of the airport? Bay, including Boeing Co., Northrop Grumman Please see REAL ESTATE page 55 By HOWARD FINE Staff Reporter PAGE 59 Joel Gross needs to move the five employees of his web design company out of his Venice apartment and Aerospace not completely grounded in county into real office space so that he can keep growing. But MAIL TO: he feels Los Angeles County might be too expensive. By SAM BENNETT Staff Reporter as the stealth fighter remains in testing. So he is seriously considering moving his com- “We expect significant revenue growth as the pany, Coalition Technologies, to Austin, Texas. LL the square feet vacated in the South Bay F-35 goes into full production,” said Jim Sweeney, “The cost of living is much lower in Austin and by major defense contractors are a painful president of the company, a division of Bellevue, they really roll out the red carpet for you,” Gross said. Areminder of their exodus. But the news is not Wash.-based Esterline Technologies. “We’ve What’s remarkable about this is that Gross completely grim for Los Angeles County as a whole. invested quite a bit in R&D.” wasn’t even courted by Austin. His interest in the Consider TA Aerospace. The Valencia compa- Even though Washington is in a budget-cutting city shows that many L.A. business people know ny makes sealants and rivet covers, but they’re mood, the F-35 program appears safe. And it’s all about the advantages of Texas, and Austin high-tech products that help make the military’s huge. Just last week, a Pentagon forecast shocked seems to be the city of choice. new F-35 jet fighter unseen by radar. Washington when the military said it will cost But just in case there are any doubters, the Since 2000, when TA began working on the nearly $1.4 trillion to buy 2,500 of the F-35 jets Texas capital has stepped up its efforts to lure busi- project, revenue has tripled to $50 million and nesses from here. employment has more than doubled to 250 – even Please see AEROSPACE page 54 Please see COMMERCE page 56 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
2 LOS ANGELES BUSINESS JOURNAL MAY 30, 2011
LOS ANGELES BUSINESS JOURNAL ®
MAY 30 - JUNE 5, 2011 VOLUME 33, NUMBER 22
FREEanywhere DELIVERY in Downtown LA! ” Call us when you’re ready to face the music.”
RINGO H.W. CHIU/LABJ Page 1: Coalition Technologies’ Joel Gross at the company’s Venice headquarters. APPAREL – Bra maker Pure Style Girlfriends ON THE COVER (213)TICKETS turned to overseas sales for extra support in (842-5387) COMMERCE – Texas has stepped up its the recession...... 8 drive to lasso L.A. businesses with a new ENTERTAINMENT – New software from campaign by the Austin chamber. 3ality could boost 3-D film and TV ENERGY – The maker of advanced plants for production by cutting time and costs. . . . .10 ethanol fuel hopes investors take a rooting Columns & features – Media Watch 10, interest in its IPO. Banking & Finance 12, Health Care & REAL ESTATE – Departing and contracting Biotech 12, News of the Week 13 aerospace companies in the South Bay have AL BROOKS TICKETS left sky-high vacancies in their wake. PEOPLE THEATRE • CONCERTS • SPORTS AEROSPACE – Projects such as the F-35 jet 900 Wilshire Boulevard, Los Angeles, California 90017 still provide a lift to a shrinking sector in Los INTERVIEW – French chef Ludo Lefebvre www.albrooks.com Angeles County. has a full plate with his temporary restaurants and a new reality show...... 14 UP FRONT Fisher & Phillips Value THE LIST INTERNET – ESalon hopes to get ahead in
Atlanta the hair dye business with its custom-ordered RANKING – The 25 biggest restaurant groups Charlotte packages...... 3 in Los Angeles County, ranked by number of Chicago LAW – Chickie Leventhal’s bail bond business units...... 17 Cleveland has locked up some pretty big names...... 3 Columbia Dallas EVENTS – The organizers of an outdoor INVESTMENTS & FINANCE Denver movie fest are hoping live bands will drum Fort Lauderdale up business...... 3 Columns & features – LABJ Stock Houston Columns & features – Page 3, Index 44 Irvine Kansas City Regional Report 4 Many law firms talk about value as if it’s a new Las Vegas REAL ESTATE concept. At Fisher & Phillips LLP, our commitment Los Angeles to value dates back to the founding of the NEWS & ANALYSIS 444 South Flower Street Columns & features – Real Estate firm nearly 70 years ago. So how do we provide Suite 1590 this value? Los Angeles, CA 90071 INTERNET – L.A. has gotten several Column 47, Done Deals 48 phone: (213) 330-4500 members-only retail sites that want customers We do only one thing: Represent employers in labor toll free: (866) 424-2168 to pay their dues...... 5 and employment matters. You benefit from our deep fax: (213) 330-4501 COMMENTARY and broad expertise in the area of the law we Louisville REAL ESTATE – A bankruptcy judge favors know best. New England a plan to strip company control from down- COMMENT – Charles Crumpley wonders if New Jersey town power player Richard Meruelo...... 5 Kitson’s growth plan will shortchange the Our attorneys treat your legal problems as business New Orleans ENTERTAINMENT – Music Mastermind’s chain’s biggest asset – exclusivity...... 58 problems, and help you avoid legal disputes. We are Orlando AVIATION – A plane-Jane LAX is grounding responsive, we are economical, and we reward Philadelphia tune-producing tech has struck a chord with our associates for quality work, not just for billable Phoenix investment firms...... 6 L.A.’s efforts to become a world-class city, hours. We are national and local, with attorneys in Portland DINING – Subway sandwich chain looks to according to Russell Goldsmith...... 59 25 offices around the U.S. San Diego L.A. as a lab to launch menu items...... 7 TRASH – The city’s waste-hauling system for San Francisco For more on the Fisher & Phillips Value Statement, go Tampa TECHNOLOGY – Some investors see dark small businesses and apartments could stand to www.laborlawyers.com/value. Washington, DC days ahead for 3-D equipment maker RealD to be recycled, writes Greg Good...... 59 but analysts like its focus...... 7 Columns & features – LABJ Forum 58
Los Angeles Business Journal (ISSN 0194-2603) is published weekly. © 2011, Los Angeles Business Journal. Offices are located at 5700 Wilshire Fisher & Phillips LLP Blvd., Suite 170, Los Angeles, CA 90036. Periodicals postage paid at Los Angeles, CA and additional offices (USPS #492-930). Subscription prices: 51 issues and special issue, $99.95. For new and renewal subscriptions, call 1-800-404-5225. All other inquiries (323) 549-5225. Single attorneys at law copies, $3.00. Mailed copies, $5.00. Back issues, $8.00. Address and subscription inquiries to: Circulation Department, Los Angeles Business Jour- nal, 5700 Wilshire Blvd. Suite 170, Los Angeles, CA 90036. This newspaper is designed to inform decision-making executives, investors and man- ® agers on the trends, the growth and the ideas important to commerce and industry in Los Angeles County. Information in Los Angeles Business Solutions at Work National First–Tier Rankings Journal is gathered from sources considered to be reliable, but the accuracy of this information cannot be guaranteed. Neither that information nor Employment Law – Management any opinion which may be expressed here constitutes a solicitation for the purchase or sale of any securities. Opinions expressed in letters to the editor and commentaries are those of the authors and not necessarily those of Los Angeles Business Journal. Member Audit Bureau of Circulations. www.laborlawyers.com Labor Law – Management LABJ has been adjudicated Nov. 1985 to be a newspaper of general circulation. POSTMASTER: Send address changes to Los Angeles Business Journal, PO Box 16825, North Hollywood, CA 91615. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
MAY 30, 2011 UP FRONT LOS ANGELES BUSINESS JOURNAL 3
A Big Star For Those Behind Bars Bail bond expert built her career on working with celeb clientele. Your average L.A. crime suspect has all manner of grit- ty bail bond companies to call. But who do celebrities and other high-income types call? It may well be Chickie RINGO H.W. CHIU/LABJ Leventhal of Chickie’s Bail Reclining Type: Leventhal at Manhattan Beach home. Bonds in Manhattan Beach. If she bails you out, she’ll prob- convicted of killing model mistress, Leventhal knew ably be wearing her trade- Lana Clarkson. what to take: his wife’s phone mark rose-tinted glasses. Just “I had no idea who he number. don’t tell her she looks like was,” she said. “But I said, She’s now considered an your mom’s bridge partner. ‘Of course,’ because Robert authority on bail. She recently “I don’t believe I give the Shapiro was asking.” gave a lecture to the Los image of being a grandmoth- After Leventhal climbed Angeles Superior Court Bail er,” said Leventhal. the ranks in an insurance firm Bond Committee, comprising She has bailed out rapper in the 1980s, where the com- Los Angeles County judges, Snoop Dogg, Girls Gone pany wrote policies for bail- about the workings of her Wild creator Joe Francis and bond businesses, she decided practice. actor Tom Sizemore. Leven- to start her own shop for bail “The presentation was ter- thal’s clients are referred by bonds. rific, full of helpful insights,”
RINGO H.W. CHIU/LABJ the 75 or so high-profile She knows to take money said Judge James Bianco, Color Coded: From left, Gimenez and Mourad at eSalon’s office in Marina del Rey. lawyers who have come to and other valuables to ensure head of the bail bond commit- know her. That was the case the bailee shows up at court. tee. “She’s regarded as one of year. They recently reached about it from that process.” when she bailed out Phil For example, when one client the best in the industry.” A Business more than 10,000 orders. They now have a small Spector, who was eventually wanted to post bail for his – Jonathan Polakoff Model to The pair didn’t have any col- staff that mixes, tests and bot- oring experience before tles all the hair color. Dye For forming the startup. A bottle costs less than year, we put more forethought last year, and each food truck They last worked for L.A. $25. If a customer’s order Movie Fest to who we were booking.” pays a fee. The 2010 series ESalon’s website lets comparison shopping website requires two different color Tunes Up At the festival, which was drew more than 30,000 people customers customize PriceGrabber. Mourad co- formulas the second bottle scheduled to launch May 28, and the partners made twice hair color packages. founded PriceGrabber in 1999 comes at a reduced price. Outdoor event to put people can nosh on such food the amount they invested, and was the company’s first That’s more expensive than more focus on bands truck delicacies as chili cheese although Hope-Allison Walk into the eSalon chief executive. Gimenez boxed color from the store, in second go-around. fries, catch a film such as declined to specify the amount. warehouse in Marina del Rey joined PriceGrabber after its but less expensive than hav- “Raiders of the Lost Ark” and This year, Hope-Allison and you’ll find computer first year and became vice ing hair professionally col- L.A.’s latest outdoor movie win giveaways. The series will and her partners are hoping to engineers working alongside president. ored at a salon. festival isn’t just about alfresco be staged at different L.A. parks avoid some problems they ran hair colorists. Strange combi- When PriceGrabber was ESalon might not come films. It comes with food trucks each Saturday until Sept. 3. into last year. nation? Not for eSalon co- purchased by Experian for with the colorist to dye your and live entertainment, too. Hope-Allison, who comes “We had way more walk- founders Tamim Mourad and $485 million in 2005, the two hair for you, but Gimenez Outdoor Cinema Food Fest from an event production ins for ‘The Princess Bride’ Francisco Gimenez. left the company. After some said the company’s product is is returning after some success in background, started the festi- than expected and before we ESalon customers fill out an time off, they went looking more personalized than store- its initial effort last year, but this val with her screenwriter and knew it, we had way more online hair survey and the com- for a new project. bought kits. time organizers have improved event producer husband, people than the trucks could pany mails them customized “We decided online custom “People who’ve been pick- the lineup of live bands to set it Steve Allison. Co-producer handle,” Hope-Allison remem- hair color crafted by profes- hair color could be a mass- ing something off the shelf, apart from a growing number of J.J. Snyder, a longtime friend, bered. “On top of that, three sional colorists with the help of market business,” said the experience isn’t the best,” outdoor film series. provides the festival’s 52- trucks broke down and we had a computer algorithm. Gimenez, eSalon’s chief exec- he said. “We’re trying to “We had live bands last foot-tall inflatable film screen 14. So what wound up being Mourad and Gimenez co- utive. “We spent time putting replicate what’s happening at year, but it was kind of a last- through his Carlsbad firm slightly underbooked for food founded eSalon in 2008 and together a team of people who the salon for people who want minute decision,” said Heather Hollywood Outdoor Movies. trucks ended up being very began selling the customized had the expertise and hair to save money.” Hope-Allison, one of the pro- How do they make money? underbooked for food trucks.” hair color in September last color knowledge. We learned – Natalie Jarvey ducers of the festival. “This Admission is $10, up from $8 – Alexa Hyland
No Lawyers, No Cry Twenty years after reggae singer Bob Marley’s Asked if they’d gone through a Bob Marley ment, Quinn played for death (the anniversary was earlier this month), PAGE 3 phase, Mallen, 50, said he was still a big fan, cit- two hours and amassed two L.A. lawyers find themselves fighting a legal ing albums “Legend” and “Exodus.” $3,000 in chips, despite battle over the use of his likeness. Jill Pietrini and CHARLES CRUMPLEY Pietrini, 49, laughed: “In college, yeah, sure.” being a novice. Then Barry Mallen of West L.A. firm Manatt Phelps & she had to exit the Phillips LLP are representing Marley’s family in a Chips Are Up event, so she cashed in case against a Reno, Nev., clothing company. retailers including Target and Wal-Mart. Marley’s Vera Quinn doesn’t play much poker. But you her chips and, like The company, Avela, had been selling unli- family, which owns the rights to his image, want- wouldn’t know that by looking at the tower of everyone else in the censed T-shirts with Marley’s face on them to ed it to stop. After a January trial in Las Vegas, a chips she built last week. casino, donated her federal judge awarded $300,000 to the family, A senior vice president at Cydcor, a Westlake winnings to Operation with more damages to come in a later ruling. Village provider of outsourced sales teams, Smile. Pietrini and Mallen are seeking at least $3 million Quinn put together a winning streak last week at Quinn “We had some sales total. the company’s annual casino night. The event people who were self- A few members of the Marley clan, including raised money for Operation Smile, a charity that described experts at the table, so I felt pretty sons Rohan and Ziggy Marley, live or spend offers free lip and cleft surgery in less developed good winning,” said Quinn, 37. “But I had to pick time in Los Angeles. Rohan was a star witness of countries. up my son, so I walked away.” sorts during the trial, Pietrini said. Through the casino and other fundraising “He’s a very charismatic guy and when he efforts, Cydor has gathered $120,000 to fund an Staff reporters Alfred Lee and Joel Russell con- testified, he had this great gray and white pin- Operation Smile mission to Peru, Cambodia or tributed to this column. Page 3 is compiled by stripe suit on, with his dreadlocks, and he just Rwanda. Editor Charles Crumpley. He can be reached at Pietrini Mallen engaged that jury like no other,” she said. After paying $30 to enter the poker tourna- [email protected]. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
4 LOS ANGELES BUSINESS JOURNAL UP FRONT MAY 30, 2011
News and notes from communities across REGIONAL REPORT Los Angeles County
Financial terms of the deal were not dis- SAN FERNANDO VALLEY closed.
SYLMAR SAN GABRIEL VALLEY
Charged Up: Quallion LLC, a Sylmar custom battery maker, has received a $5.8 mil- CITY OF INDUSTRY lion grant from the California Energy Commis- sion to develop an automated manufacturing Asset Acquisition: Fleetwood-Fibre line for battery components. The automated Packaging & Graphics Inc., headquartered in production line would make lithium ion mod- City of Industry, will acquire the assets of ules as building blocks for batteries, including Impact Manufacturing, a Corona company spe- those used in electric vehicles. The recent grant cializing in clamshell containers and other is in addition to $1 million Quallion received printed packaging for retail products. Financial from the commission in November. terms of the deal were not disclosed.
NORTH COUNTY MONROVIA
Plugged In: AeroVironment Inc., a Mon- VALENCIA rovia maker of military drone aircraft, and electric-car battery testers and chargers, has On the Move: QSR Systems, a renter of been selected by BMW Group as the preferred Avid editing systems to the entertainment provider of electric vehicle charge equipment, industry, has purchased new headquarters in accessories and installation services in support Valencia. QSR, which is moving from another of the all-electric BMW ActiveE. BMW Baldwin Hills: Home page of Wholesome-BabyFood. site in Valencia, paid more than $2 million for Group, a division of Woodcliff, N.J.-based the 20,000-square-foot property at 24950 BMW of North America LLC, plans to release Avenue Kearny. location has seating for 113 and features a cov- WESTSIDE the ActiveE this fall. ered outdoor patio.
CENTRAL AREA WESTWOOD BALDWIN HILLS Done Deal: Macquarie Group Ltd., a Syd- CORRECTION FAIRFAX DISTRICT Online Pickup: Evolve Media Corp., a ney, Australia-based banking services firm, Baldwin Hills digital media company, has has completed its acquisition of Regal Capi- In an article headlined “L.A. Hotels Add Taking Root: The Veggie Grill, a Manhat- acquired WholesomeBabyFood.com, a Derry, tal Advisors LLC, a Westwood boutique Luxury Moniker” in the May 23 issue, the tan Beach-based restaurant chain serving all- N.H.-based site with a focus on homemade investment bank specializing in the gaming, name of Atlas Hospitality Group was plant dishes, has opened an outpost in Fairfax baby food recipes. WholesomeBabyFood will lodging and leisure industries. Regal staff has incorrect. District’s Original Farmers Market. The new be folded into Evolve’s Momtastic.com site. moved to Macquarie’s Century City office.
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FreeFree Parking in Customer Lot, Gate 6 (Enter on Hope Street) Contact Dodgers Premium at 323-224-1320, [email protected] or visit dodgers.com/premium PleasePlease R.S.V.P. no laterlater thanthan Wednesday,Wednesday, June 8th8th atat [email protected] For more information, ppleaselease call (213) 367-EXPO or visit our website at www.ladwp.com/businessexpowww.ladwp.com/businessexpo for a current listinlistingg of oopportunitiespportunities oopenpen for bidbid.. AsAs a covered entity under Title II of the Americans with Disabilities Act, the City of Los AnAngelesgeles does not discriminate on the basis of disability and, uponupon request,request, will pproviderovide reasonable accommodation to ensure equalequal access to its programs,programs, service anandd activities. To ensure availability, such request should be made 72 hours in advance by calling (213) 367-2252, TDD: 1(800) 432-73977397.. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
MAY 30, 2011 NEWS&ANALYSIS LOS ANGELES BUSINESS JOURNAL 5
’90s – is predictable and helps him plan the company’s growth. “We like it as a business because we can project and order the right amount,” he said. “We also get to learn about our users month in and month out.” BeachMint’s new clothing website, StyleMint, will follow the same model as Jew- elMint, starting with a line of high-end T- shirts. The company plans to launch two more websites for other products later this year. The low prices and monthly cycle of these sites have made online shopping easier for cus- tomers, said Matt Edelman, chief executive of Santa Monica fashion discovery website This- Next who follows the e-commerce industry closely. But there’s also the challenge of keep- ing customers happy each month. “Subscriptions services have an inherent challenge that at some point, a customer will look at their credit card statement and be tired of seeing the same charge over and over again,” he said. “It’s not easy for any company to create great fashion accessories and items that women want to own.”
Celebrity power So how do they keep people coming back? RINGO H.W. CHIU/LABJ Some websites have formed partnerships with Bringing the Bling: From left, Diego Berdakin and Josh Berman with jewelry at BeachMint’s office in Santa Monica. fashion-savvy celebrities. ShoeDazzle boasts reality TV star Kim Kardashian as a company co-founder and chief stylist who helps design and select shoes, handbags and accessories each month. JewelMint’s jewelry line is designed by actress Kate Bosworth and her stylist Cher Coul- Joining the Club ter; StyleMint will feature clothing designed by actress twins Mary Kate Olsen and Ashley Olsen. Prabhakar of Style File Group said INTERNET: L.A. is turning into a hub for retail sites offering a ShoeDazzle’s connection with Kardashian has been essential to the company’s success with pick-of-the-month in shoes, jewelry or apparel. Why? Think celebrities. customers and investors. “She’s red hot right now,” Prabhakar said By NATALIE JARVEY Staff Reporter Valley venture capitalist Andreessen Horowitz. The shopping sites work this way: of Kardashian. “It doesn’t matter how young Hitha Prabhakar, founder and principal at A customer fills out a short online survey. or old you are, she seems to relate to a bunch ALK into a high-end boutique on New York retail consultant firm Style File Group, Based on her answers, the company offers, say, of different people.” Rodeo Drive, pass the security said ShoeDazzle offers the online equivalent of five different pairs of shoes tailored to her taste But some of these sites don’t have celebrity W guard and you may be met by a the helpful and knowledgeable salesperson. each month. Prices range from $30 to $50 per partnerships. Sole Society and JustFabulous well-coiffed, Chanel-clad saleswoman who “It’s all about personal experience at the month depending on the website. For that, she can have enlisted the talents of celebrity stylists will act as your personal stylist, making recom- store,” she said. “It makes sense that you choose one item and have it mailed to her. Or she and fashion experts to help design and select mendations and pointing out the latest trends would want that same level of customer ser- can also choose to skip the month – eliminating each month’s shoe inventory. as you browse the shop’s wares. vice when you shop online.” the monthly fee or earning credit for future pur- Andy Solomon, general manager of Sole That kind of attention has been lacking in ShoeDazzle was founded in 2008 and a num- chases – or request a different selection of shoes. Society, said the company wanted to focus less the online retail experience. However, a new ber of L.A. websites have followed in its footsteps. Most of these companies create original on celebrity cachet and more on its products. wave of personalized shopping websites has BeachMint Inc. in Santa Monica launched designs and work directly with manufacturers “Certain personalities may come and go,” rolled into town and they’re making a splash jewelry membership site JewelMint.com in to produce them. BeachMint’s jewelry site, for he said. “We really wanted to be about the with both consumers and investors. October. The company plans to unveil a cloth- example, works with a local manufacturer that trends and the shoes.” Most notably, Santa Monica’s ing site, StyleMint.com, in July. also creates lines for well-known brands. That The most important thing is that the cus- ShoeDazzle.com Inc., which charges a monthly El Segundo e-commerce incubator Intelli- means the company can sell jewelry that would tomer feels the goods are being selected espe- membership fee, knows customers’ preferences gent Beauty Inc. jumped into the space last retail for $100 for only $30. cially for her, said ThisNext’s Edelman. well enough to offer a personalized selection of year with a shoe-of-the-month website, Just- BeachMint Chief Executive Josh Berman, “Personalization is the most important aspect shoes and accessories. It has racked up a client list Fabulous, and downtown L.A.-based flash- who co-founded the company with Diego of a woman’s choice when she’s deciding what of 3 million and recently announced the comple- sales company HauteLook launched a month- Berdakin, said the monthly membership model to buy,” he said. “She’s looking for something tion of a $40 million funding round led by Silicon ly shoe club, Sole Society, in February. – similar to CD clubs that were popular in the that speaks to her and that she connects to.” Is Big Downtown Property Player on the Way Out? of shrewd purchases of old industrial properties Meruelo Maddux with $38 million in fresh capital, REAL ESTATE: Richard and parking lots over the last two decades. Meruelo Maddux (OTC: MMPIQ.PK) including a $15 million loan and $17 million to Properties Inc. By 2007, when Meruelo took his company pub- FRI. CLOSE, PAST 5 WKS purchase 55 percent of outstanding shares. Meruelo loses bid to hold Los Angeles 0.53 lic, he had amassed more than 3.4 million square feet 0.51 Meruelo’s attorneys responded in subsequent CEO: Richard Meruelo of space in the area and CB Richard Ellis Group 0.49 court filings that all money was used for legiti- on to bankrupt company. Employees: 82* Inc. declared him the biggest downtown landholder. 0.47 mate business purposes and that Charlestown Market Cap: $40.5 million 0.45 By HOWARD FINE Staff Reporter Meruelo also was a political player; he was May 26: $0.46 and Hartland were trying to bury the company in P/E: NA 0.43 the largest donor to Antonio Villaraigosa in his 0.41 document searches as part of a “war of attrition.” Richard Meruelo, who built up the largest 2005 campaign for mayor. EPS: -$2.12* 4/21 4/29 5/6 5/13 5/20 Calls to Meruelo were not returned, nor property portfolio in downtown Los Angeles, But the company quickly unraveled as the *as of last regulatory filing in June 2010 Source: Yahoo Finance were calls to Meruelo’s lead bankruptcy attor- is on the verge of losing control of his bankrupt real estate market collapsed and Meruelo Mad- ney, Gary Klausner. real estate company. dux couldn’t refinance its loans. In March sale of properties and the refinancing of debts. In an earlier interview, attorney Christopher U.S. Bankruptcy Court Judge Victoria 2009, the company announced it couldn’t But dissident shareholders Charlestown Cap- Prince, who represents Charlestown and Hart- Kaufman has tentatively endorsed a plan by make payments on $266 million in debt and ital Advisors LLC and Hartland Asset Man- land, said the firms want two interim executives dissident shareholders that would remove cur- filed for Chapter 11 bankruptcy protection. agement, New York investment firms that own to run Meruelo Maddux until the board selects rent managers from Meruelo Maddux Prop- The company has since sold off pieces of its about 2 percent of Meruelo Maddux, accused him new management. erties Inc. The May 19 decision is expected to portfolio to major shareholders and creditors. in court papers of mismanaging the company and The next step is for Charlestown and Hart- be finalized in the next few weeks. Meruelo had filed his own bankruptcy exit using corporate money for personal purposes. land to draw up final documents for the judge The judge’s order would marks a stunning plan, which called for him to stay as chief exec- They put forward their own exit plan that called to consider. Assuming the judge approves reversal for the hard-driving real estate magnate, utive and the current management to remain for Meruelo’s ouster and proposed an alternative those documents, the management of the com- who created his downtown empire with a series intact. Creditors would be repaid through the recapitalization strategy. The plan would refinance pany will pass to the interim managers. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
6 LOS ANGELES BUSINESS JOURNAL NEWS & ANALYSIS MAY 30, 2011 Investors Like the Sound Of Song-Producing Tech which will launch later this year, has grams and music video games such as Activi- music. ENTERTAINMENT: Music investors paying the piper. sion Blizzard’s now-defunct “Guitar Hero.” When the funding was announced last Mastermind funding round Music Mastermind announced last week It works like this: A person sings into a week, Dave Flanagan, managing director of that it raised $10.8 million in a funding round computer microphone or special device and the investor Intel Capital, said the company was raises $10.8 million. led by Intel Capital, the investment arm of program records and adjusts the song’s pitch. attracted to Music Mastermind’s technology Intel Corp., and telecom company Liberty Then the person sings background vocals and because it allows people to create music in a By NATALIE JARVEY Staff Reporter Global Inc. That brings the company’s total mimics the sound of a background instrument, new way. funding to $15.8 million. for example a drum, that the program turns “We believe that their products will help OK, so Lady Gaga might not use Music Bo Bazylevsky, president and chief operat- into a real drum beat. The software can also transform the way we think about music cre- Mastermind Inc.’s software to record her next ing officer, said in an e-mail that the company generate background guitar and bass tracks to ation and interactive entertainment across PC, album. But someone without much playing or will use the recent funding to develop its soft- fit the tune. mobile and set-top platforms,” he said in a recording experience can sing a melody into it ware and launch its first product. Bazylevsky said Music Mastermind’s new statement. and then turn that tune into a fully produced Music Mastermind, which has more than software will be an updated version of what Music Mastermind didn’t provide a price pop song. 40 employees, has been tightlipped about was shown at CES. range for the software. How? The Calabasas company has devel- exactly how the new software will work. But “The product we will launch later this year It’s unlikely that people who want to start a oped an audio-processing technology called after the company showcased an early proto- will have some similar elements to what was career in music will use the company’s soft- SoundBetter that helps people add back- type at the Consumer Electronics Show in Las shown at CES,” he said, “but it will be a full ware, said Steve Cunningham, an assistant pro- ground music to a vocal recording without Vegas in January 2010, a Los Angeles Times evolution of our early prototype.” fessor of practice in ever having to pick up an instrument. The review of the show said the software com- The software will also include a feature that music industry at software using the SoundBetter technology, bined elements of music composition pro- will let customers publish and share their USC’s Thornton School of Music. But it could have value as an educational tool or as an entertainment product, drawing on With Aflac, you know that if your employees get hurt or sick they will have a safety net. Aflac the same audience that likes to pick up “Gui- helps pay costs that major medical doesn’t cover, by sending cash directly—faster than our tar Hero’s” plastic gui- tar and play the game Bazylevsky with their favorite clas- Aflac makes your benefits sic rock songs. “It’s really interest- even sweeter. ing technology and, you know, it might top competitors. Because it’s voluntary, it doesn’t cost your business a penny. Pretty sweet. generate more musi- cians,” he said. “But Visit aflac.com/sweetbenefits, and see what all the buzz is about. will professionals use it? Nah.” Cunningham said lagging interest in music-based video Serletic games could hurt Music Mastermind’s chances for success. Activision Blizzard shuttered its “Guitar Hero” line in February and sales of “Rock Band,” from Cambridge, Mass., developer Harmonix Music Systems, have swooned. “The ‘Rock Band’ and ‘Guitar Hero’ thing is pretty much done,” Cunningham said. “But if Music Mastermind’s product is good enough, you may see a resurgence.” Bazylevsky, formerly a Wall Street bond trader, founded Music Mastermind in 2007 with Matt Serletic, a music producer and song- writer who won two Grammy Awards in 2000 for his work with guitarist Carlos Santana. Bazylevsky said the pair wanted to develop a product that let anyone create music despite a lack of previous training. “Music Mastermind was formed to break down barriers to creativity and give everyone the joy of creating and sharing their music,” he said.
List Updates The Los Angeles Business Journal is compil- ing information for the following lists: • Local Headquarters of Foreign Companies • Retail Centers • Office Leases
To determine whether your company qualifies, please send the company name, address, con- tact person's name and telephone number to research director, Los Angeles Business Jour- nal, 5700 Wilshire Blvd., Suite 170, Los Ange- les, CA 90036. Subsequent to publication of a List, if your company moves, changes its name, replaces its top local executive, or gets a new phone number, please submit those changes on company letterhead to the above address before Individual coverage underwritten and offered by American Family Life Assurance Company of Columbus. In New York, coverage underwritten and offered by American Family Life Assurance Company Nov. 15 so they can be incorporated into the of New York. Some policies may be available as group policies. Group coverage underwritten and offered by Continental American Insurance Company. Policies may not be available in all states. Aflac year-end Book of Lists. No revisions of data pays cash benefits direct to the insured, unless assigned. Aflac processes most claims in an average of four days. For Continental American Insurance Company, the average is five days. There may used to determine rankings will be considered be indirect administrative or other costs. for republication in the Book of Lists. NAD1116 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
MAY 30, 2011 NEWS & ANALYSIS LOS ANGELES BUSINESS JOURNAL 7 Investors See Dimmer Prospects for 3-D Business the brightness of digital projectors, and the sales during opening weekend. Most 3-D ver- TECHNOLOGY: Analysts poor domestic performance of the 3-D version sions of a film account for at least 60 percent. RealD Inc. (NYSE: RTD) of the latest “Pirates of the Caribbean” film. But James Marsh, an analyst at Minneapo- Beverly Hills FRI. CLOSE, PAST 5 WKS say issues with projectors 35 A spokesman at RealD declined lis-based Piper Jaffray & CEO: Michael Lewis 34 to comment. Co., said both concerns are Employees: 74 33 are not RealD’s problems. 32 Critics have long attacked 3-D RELATED unfounded and he expects the Market Cap: $1.58 billion 31 By ALFRED LEE Staff Reporter projection as not bright enough. But stock to bounce back. He 30 STORY P/E: N/A May 26: $30.80 29 a Boston Globe article published blamed the projection prob- 28 Investors afraid of the dark led a sell-off May 22 asserted that projectors New software could lems on Sony, not RealD. EPS: -$1.07 4/21 4/29 5/6 5/13 5/20 last week of shares of 3-D movie technology designed for 3-D were also causing help cut costs for 3-D Even if theater owners Source: Yahoo Finance company RealD Inc., but some analysts say 2-D films to look dimmer when the- production. PAGE 10 wanted to switch to a competi- the Beverly Hills company’s future remains ater operators neglected to remove tor in the short term, some of “Pirates” film accounted for a much higher bright. 3-D lenses from the projectors. The them can’t: AMC Theatres portion – 66 percent – of international sales, Since its initial public offering last July, article traced problems to a specific Sony pro- and Regal Entertainment have signed 10-year offsetting its relatively poor performance shares of RealD have nearly doubled. They jector that uses RealD lenses. contracts with RealD. domestically. closed at an all-time high May 18, but then Then the performance of the 3-D version of “It’s not a RealD issue,” Marsh said. “It’s a Of eight analysts following the company dropped 14 percent during the following week. “Pirates of the Caribbean: On Stranger Tides” Sony issue or it’s an exhibitor issue. It won’t according to Bloomberg News, seven rate the The sell-off appears to have been prompted hijacked investor confidence when it account- have any impact.” stock a “buy,” while only one gives it a “sell” by two concerns: newly raised issues regarding ed for only 46 percent of the film’s domestic He added that the 3-D version of the new rating. Sandwich Chain Likes to Get Things Cooking in L.A. DINING: Subway looks to region to test items such as its breakfast menu. By DAVID NUSBAUM Staff Reporter
It’s often said that breakfast is the most important meal of the day. So for Subway restaurant franchiser Hardy Grewal, it seemed natural to add an early morning menu. Grewal, chief executive of L.A.-based OhCal Foods Inc., serves as the development agent for more than 1,000 Subway restaurants in Southern California and Ontario, Canada. Does your money cross borders (Subway is the biggest restaurant group in Los Angeles County.) Grewal helps the chain come as easily as you do? up with and test products in the L.A. market before being considered for Subway’s more 52ºN – Cambridge, UK than 34,000 locations in 98 countries. “We develop a lot of new programs here,” said Grewal. “We were the first market to offer When life takes you or your family across borders, your money should breakfast. The company looked at our numbers seamlessly follow. HSBC Premier can help you open HSBC deposit in Los Angeles and made breakfast a nation- accounts in 30 countries and territories from the U.S. and move money wide offering starting online between them—securely and without fees.1 You’re at home about a year ago.” abroad. Now the same can be said for your money. THE LIST Franchisees have Restaurant Chains long been a source of Choose from a selection of welcome gifts, including a PAGES 17-18 new menu items for MacBook Air, when you start an HSBC Premier relationship restaurants. McDon- before July 22, 2011 with a qualifying balance.2 ald’s famous Big Mac sandwich was invented by a franchisee as Stop by your nearest branch, call 866.375.6661, or visit was its Filet of Fish sandwich. hsbcpremierusa.com/connect to see how you can start living Grewal first experimented with breakfast in life without boundaries. 2008 at the same time that Seattle-based Star- bucks Corp. decided to do away with its breakfast sandwiches. The coffee chain said the sandwiches were profitable, but the smell overpowered the coffee aroma in its stores and diminished the café experience for customers. A strong lunch crowd is Subway’s main source of business. By offering breakfast, stores must open earlier, creating longer hours for employees 1Global View, Global Transfers, and international account opening are not available in all countries. Foreign currency exchange rates may apply. and more work: switching products at midday. 2Offer(s) valid when you begin a new personal Premier relationship* in the United States funded in new money from May 16, 2011 to July 22, 2011. With a minimum qualifying balance of $150,000, you qualify for the MacBook Air. Alternate gift available with a minimum qualifying balance of $100,000 or more. Offer(s) not valid for The lure of a $5 sandwich generates more Insurance Products, which include Annuities, or for existing HSBC Premier clients regardless of what other non-Premier Accounts they have or how they are listed on revenue for the stores during the midday three- account titles; Online Savings Account is ineligible for gift promotion. New money is defined as funds or positions not previously held by any member of the HSBC Group hour period than any other time. But the big over the past six consecutive months. For qualifying customers upgrading to Premier, new money must be in addition to existing deposit and investment balances as of the close of business on May 13, 2011 (“Existing Balances”). Premier relationship in the U.S. must remain open; new money and Existing Balances must remain on deposit lunch lines can drive away customers. for a minimum of six months or the value of gift will be deducted from account proceeds if time requirement has not been met. “People walk out of existing stores if lines *To qualify for an HSBC Premier relationship, you need to open a Premier Checking account and maintain $100,000 in combined U.S. personal deposits, including Online are too long,” Grewal said. “So we have fran- Savings Account, and investment balances. Business owners may use their commercial balances to qualify for a personal Premier relationship, but these balances cannot chise owners open new stores nearby if there be used to meet the new money requirements. A monthly maintenance fee of $50.00 will be incurred if minimum balance requirements are not maintained. You have up to 90 days after account opening to meet the full $100,000 balance requirement. The Annual Percentage Yield (APY) and balance for a Premier Checking account are high traffic counts.” which is accurate as of April 18, 2011 is 0.01% APY on balances of $5.00 or more. APY is variable and subject to change after opening. Charges and fees may reduce Meanwhile, the local Subway restaurants earnings. Qualified Premier clients will be notified via mail within 90 days of account opening; notification will include instructions for redeeming gift of choice. Eligibility continue to develop new products. Local stores requirements may apply for some gift choices. Limit one gift per eligible new Premier relationship. This offer cannot be combined with any other offers or promotions, is offer a healthy bread option, called 9 Grain With nontransferable, good while supplies last. Any gift not chosen by October 31, 2011 will be forfeited. The cost of the gift will be reported on IRS Form 1099. ® Omega-3. The bread choice could be added to Apple, the Apple Logo and MacBook Air are registered trademarks of Apple Inc. All rights reserved. Apple is not a participant in or sponsor of this promotion. United States persons (including U.S. citizens and residents) are subject to U.S. taxation on their worldwide income and may be subject to tax and other filing obligations with the national menu if it is successful here. respect to their U.S. and non-U.S. accounts – including, for example, Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts (“FBAR”)). U.S. persons should consult a “We change the products as we are evolv- tax adviser for more information. ing. We are always trying to find better, health- Deposit products offered in the U.S. by HSBC Bank USA, N.A. Member FDIC. ©2011 HSBC Bank USA, N.A. ier products,” said Grewal. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
8 LOS ANGELES BUSINESS JOURNAL NEWS & ANALYSIS MAY 30, 2011
RINGO H.W. CHIU/LABJ Shaping Up: Juliana Lutzi, Pure Style Girlfriends chief executive and founder, with company products at the undergarment maker’s South L.A. office. Bra Company Finds Overseas Markets Uplifting
Lutzi decided to go international. She Also, Pure Style Girlfriends has 15 trade- APPAREL: Founder turned began attending trade shows and contacting Pure Style Girlfriends marks, one patent and a patent pending to pro- to international markets to distributors in other countries. By the third tect its intellectual property. quarter of 2010, revenue at the company had FOUNDED: 2007 Winston added that Lutzi can plan on her offset suddenly flat sales. jumped 400 percent from a late-2009 low HEADQUARTERS: South Los Angeles costs going up as she enters more countries. point. During the quarter, the company sold “Each country has its own set of customs laws, By JOEL RUSSELL Staff Reporter 15,000 units in the United States and 513,000 CORE BUSINESS: Push-up bras, inserts labeling requirements and import duties,” he said. in other countries; customers in South Korea and adhesive pads for breast support. “As the company grows, that will become more RA maker Pure Style Girlfriends and Italy were the largest buyers. EMPLOYEES: 12 of an issue. You’ll need customs brokers and almost went bust in the recession. But “My real goal wasn’t to be in boutiques – it lawyers in each country and they aren’t cheap.” GOAL: To grow into $100 million company international marketing savvy and was profitability,” Lutzi said. through retail, international and direct-to- careful money management gave the She’s not competing with European lingerie Direct to consumer B consumer sales. company the lift it needed to survive and thrive. – only the specialized market of padding and Pure Style Girlfriends is Lutzi’s second Juliana Lutzi started the South L.A. compa- padded bras. THE NUMBERS: One-year revenue gain of startup. ny in 2007 to design, manufacture and sell “Our products are not sexy to look at, but 400 percent entirely from foreign sales. Her first company, Fire Solutions, offered adhesive pads and specialty bras that support they make you look sexy in your favorite out- online professional courses to Wall Street and reshape women’s breasts. Lutzi’s strategy fits,” she explained. “This is a different market.” stock brokers. After she sold the company in was to sell the items in fashion boutiques. Lutzi, that posed a huge risk if she manufac- 2004 to Palmer Group, a Philadelphia private The items were carried by 300 shops in the Foreign policy tured thousands of bras that wouldn’t sell. investment firm, she used part of the proceeds United States. By Lutzi believes the most important decision Instead, she negotiated to sell her products in to bankroll Pure Style Girlfriends. Profile: late 2008, that when selling overseas is selecting the right dis- 14 of the chain’s largest stores. “I understand the complexity of raising number rose to tributor. She has lined up different types of “We had never sold in department stores in money,” she said, “and I’m happy I’ll never TURNAROUND 1,400 stores, strategic partners in each country where she does Europe before,” she explained. “We wanted to have to raise another dollar. Pure Style was including upscale business. For example, her distributor in South start in a controlled way. Eventually we want self-funded.” chains Tracy Ross, Intuition, Fred Segal and Korea sells the pads and bras direct to consumers to be in all those stores.” She said the business is profitable with rev- Cache. Things were going well. through TV ads. In Italy, her products are on the Bruce Winston, owner of trade consultancy enue of less than $3 million annually. With her But in December 2008, the economic crisis shelves at Coin, a major department store chain. Makor Group International in Culver City, products selling in more than 10 countries, devastated upscale clothing retailers. By late Once she chooses a distributor, she pro- said that once products such as Pure Style Girl- Lutzi is turning her attention to selling directly 2009, nearly 40 percent of Pure Style Girl- vides support in the form of marketing materi- friends’ are established in a foreign market, to consumers in the United States. A marketing friends’ retailers had gone out of business. An als such as videos or photos of celebrities local companies will try to horn in on the action. campaign that launched in May with online additional 30 percent were still open but stopped wearing the products. “If a foreign distributor finds he can cut her and TV ads will direct consumers to a website buying products in order to conserve cash. The She never ships items until she receives a out by having a local plant make the products, or 800 number, respectively, to order products. remaining 30 percent continued to order prod- wire transfer or a letter of credit. he might try it unless she has solid brand Lutzi thinks her company has emerged ucts, but at lower numbers or with no growth. “People who legitimately do business over- recognition among consumers,” Winston said. from the recession stronger than before and she The company was burning through its start- seas are comfortable with this, so small busi- Lutzi said she protects her products from has high goals for growth in the future. up investment money. Lutzi knew the clock nesses shouldn’t feel intimidated about ask- piracy and imitators. Every product has differen- “I wouldn’t do this if I didn’t think it could was ticking. ing,” she said. “If the client balks, it means tiating characteristics such as a special seam grow into a $100 million business,” she said. “As the numbers got worse every month, there’s a problem.” inside a bra cup or a stretchy material used for “When we launched we were a one-legged we were on a crash course for the rocks,” she Also, she’s careful. For example, the Italian tape that moves with the skin. These details are pony by only selling through boutiques. Now recalled. “I couldn’t continue to allow sales to retailer Gruppo Coin wanted to sell Pure Style noticed by consumers and make the product very we have three channels – boutiques, interna- dip much longer.” Girlfriends products in all 85 of its stores. For difficult or expensive for pirates to duplicate. tional and direct to consumer.” 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
MAY 30, 2011 LOS ANGELES BUSINESS JOURNAL 9
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Screen image is simulated and not to scale. AmericanAirlines and AA.com are marks of American Airlines, Inc. oneworld is a mark of the oneworld Alliance, LLC. © 2011 American Airlines, Inc. All rights reserved. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
10 LOS ANGELES BUSINESS JOURNAL NEWS & ANALYSIS MAY 30, 2011
MEDIAWATCH
MOVIE BOX OFFICE Weekend Gross Total Gross Rank Title (millions) (millions) Distributor 1 Pirates: On Stranger Tides $90.2 $90.2 Disney 2 Bridesmaids 20.9 59.3 Universal 3 Thor 15.5 145.4 Paramount 4 Fast Five 10.6 186.2 Universal 5 Priest 4.8 23.8 Screen Gems 6 Rio 4.7 131.7 20th Century Fox 7 Jumping the Broom 3.7 31.3 TriStar 8 Something Borrowed 3.5 31.5 Warner Bros. 9 Water for Elephants 2.2 52.5 20th Century Fox 10 Madea's Big Happy Family 1.0 51.7 Lions Gate Weekend ended May 22 Source: Bloomberg News PRIMETIME TV SHOWS Rank Program Network Rating* 1 Dancing With the Stars (Mon.) ABC 13.5 2 American Idol (Wed.) Fox 13.3 3 American Idol (Thurs.) Fox 12.5 4 Dancing With the Stars (Tues.) ABC 11.6 5 NCIS CBS 11.4 RINGO H.W. CHIU/LABJ Week ended May 22 *Each rating point equals 1.1 million homes. Focusing In: Employees work with a 3-D camera at 3ality in Burbank. Source: Bloomberg News CABLE TV SHOWS Rank Program Network Rating* Automated Camera Angles 1 NBA Playoffs (Chicago vs. Miami) TNT 6.4 2 NBA Playoffs (Miami vs. Chicago) TNT 6.1 3 NBA Playoffs (Oklahoma City vs. Dallas, Thurs.) ESPN 4.4 4 NBA Playoffs (Oklahoma City vs. Dallas, Tues.) ESPN 4.3 Give 3-D Company an Edge 5 NBA Playoffs (Dallas vs. Oklahoma City) ESPN 3.7 Week ended May 22 *Each rating point equals 1.1 million homes. The new technology comes just as Santa Source: Bloomberg News ENTERTAINMENT: Two Monica-based private equity firm Clearlake TOP SELLING ALBUMS 3ality software programs Capital Group LP has acquired controlling interest of 3ality, who has retained founder Rank Last Week Artist Title Label aim to save time, cut costs. Steve Schklair as chief executive. Financial 1 1 Adele 21 Columbia terms of the deal were not disclosed. 2 3 Various Artists Now 38 EMD By GREG HERNANDEZ Staff Reporter The company’s 3-D cameras and equipment 3 New Lonely Island Turtleneck & Chain Universal are being used in three high-profile feature film Republic Burbank company 3ality Digital LLC has productions: “The Amazing Spider-Man,” “The 4 New Christina Perri lovestrong. Atlantic unveiled software that programs multiple cam- Hobbit” and “Jack the Giant Killer.” 5 New Tyler, the Creator Goblin XL Recordings eras for the alignment required to film in 3-D. The company is also looking to the still Week ended May 27 Source: Billboard.com The company says the software will save time largely untapped area of 3-D television for its MOVIE RENTALS - DVD/VHS and money by eliminating some labor, continued growth. although production workers aren’t happy “For TV to succeed, there has to be a lot of Rank Last Week Title Distributor about that. content. There’s got to be a variety of content,” 1 1 Green Hornet Sony The software, sold in IntelleCal and Intelle- said Schklair. “For all types of programming, 2 New No Strings Attached Paramount Cam versions, is expected to become available the costs have to be lower and the content has 3 2 Dilemma Universal this fall and 3ality claims the tools will make to be more compelling.” 4 3 Little Fockers Universal 3-D TV broadcasts cheap- Of course, more 5 4 Gulliver's Travels 20th Century Fox er to produce. people have to own 3- Week ended May 15 Source: Rentrak “It automates the most ‘The software they are D-capable TV sets, too. complex and time-con- As with most high-tech DVD SALES suming processes,” said bringing forth is not consumer products, Rank Last Week Title Distributor Suggested Retail Gari Ann Douglass, just a help to individual sales are expected to 1 New Justin Bieber: Never Paramount $29.99 3ality’s chief operating producers, but to the pick up as prices come 2 New No Strings Attached Paramount 29.99 and financial officer. “It’s entire ecosystem of 3-D.’ down. Many 3-D TVs 3 2 Harry Potter: Deathly Hallows Warner Bros. 28.98 easier, more economical, now go for around 4 1 Green Hornet Sony 29.99 more reliable and enables DOUG STANLEY, $2,000, and are either 5 4 Tangled 20th Century Fox 29.99 a crew to shoot 3-D on a Ridgeline Entertainment less expensive or cost Week ended May 15 Source: Rentrak 2-D schedule.” about the same as a Three-D production has similarly sized high- MOVIELINK DOWNLOADS always been more time definition TV. Rank Title Distributor Suggested Retail intensive due to the labor involved in manual “The differential in price between normal 1 Rite Warner Bros. $15.95 camera setups. IntelleCal is designed to save TVs and 3-D TVs is becoming smaller and 2 Dilemma Universal 15.95 time by automating the alignment of a camera smaller,” said Pietro Macchiarella, research 3 Green Hornet Sony 15.95 rig without a technician. A process that usually analyst for Dallas-based Parks Associates. 4 No Strings Attached Paramount 15.95 takes 35 to 40 minutes could take five minutes “The differential in cost production is not that 5 Mechanic Sony 15.95 or so. If it works as touted, the software could high. By 2014, we expect 80 percent of TVs Week ended May 25 Source: Cinemanow.com represent a big step forward for 3-D. sold in the U.S. to be 3-D capable.” “The software they are bringing forth is not The IntelleCam version of the new software OUTTAKE OF THE WEEK just a help to individual producers, but to the can eliminate the need at each rig for conver- entire ecosystem of 3-D,” said Doug Stanley, gence pullers, technicians that handle the THINGS PAST chief executive of Ridgeline Entertainment image separation of foreground and back- Woody Allen’s “Midnight in LLC in the Sacramento-area town of Auburn, ground. Paris” may have taken in only which produces film and TV projects with a 3- “Will people be unhappy? Yes,” said $599,000 its opening week- D emphasis. “It brings the cost down.” 3ality’s Douglass. “But there is enough work end, but that was from only in the pipeline that those people could very six theaters. The comedy, Find a balance easily find other types of activities where they with Owen Wilson, left, as a But how much 3ality will charge for its can be employed and contribute.” writer who travels back in technology isn’t yet known. The company will Richard Clark, a 25-year member of the time to 1920s Paris, packed have to find a balance between affordability International Alliance of Theatrical Stage the houses for a nearly and recovering the cost of development. Employees Local 695, wonders if 3ality’s tech- $100,000-per-screen aver- “We have invested a lot of money to devel- nology will really produce the cost savings that age, a career best for Allen. op these products, so we need to price them at the company claims. (The new “Pirates” movie a price point that makes it attractive enough,” “My gut feeling is they are assigning to this averaged about $22,000.) Douglass said. “But at the same time, we have more importance than it probably deserves,” costs we need to amortize. Clark said. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
MAY 30, 2011 LOS ANGELES BUSINESS JOURNAL 11 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
12 LOS ANGELES BUSINESS JOURNAL NEWS & ANALYSIS MAY 30, 2011 Small-Business Loans Make a Big Comeback in L.A. LENDING: Wilshire and BANKING & Center Financial are among FINANCE top SBA lenders in U.S. RICHARD EVERAL local banks are taking advantage CLOUGH of a rising demand for small-business S loans to increase their national profiles. According to data recently released by the approval from state and federal regulators. U.S. Small Business Administration, nine L.A. The credit union industry was upended by banks ranked among the 100 largest SBA the financial crisis, with a number of local lenders nationwide in the first six months of institutions being seized by regulators, but CU the fiscal year, which began in October. That SoCal said the merger was not driven by finan- number is up from six the previous year. cial concerns. In particular, Wilshire Bancorp Inc. and “While both credit unions are financially Center Financial Corp., a pair of community sound and doing well today, we know that bank holding companies in Koreatown, both together we can create a new organization that ranked among the top 25 SBA lenders in the will be strategically positioned to grow and
country, ahead of such banking giants as Citi- RINGO H.W. CHIU/LABJ bring our members even more value and group Inc. and Bank of America Corp. In the Top 25: A Center Financial banking branch in Koreatown. greater convenience over the long term,” said Wilshire ranked No. 21 with 168 loans, while CU SoCal Chief Executive Dave Gunderson, Center Financial came in at No. 23 with 153 SBA loans made to local companies jumped ing, however. Excel National Bank in Beverly who will hold the same position in the merged loans; neither cracked the top 25 last year. 14 percent to 1,379, while the total dollar Hills, which originated 197 such loans in the institution, in a statement. By dollar value, both Center Financial at amount of the loans surged 65 percent to near- first half of last year, has made just 19 this year. The combined entity will retain the Credit $145 million and Wilshire at $138 million ly $1 billion. The bank said last week that it has raised Union of Southern California name. ranked in the top 10 nationally. The role of community banks in SBA lend- $10 million “to expand its presence in the Jason Kim, Center Financial’s chief credit ing was expected to rise with the passage of greater Los Angeles area as well as diversify C-Suite News officer, attributed the rise in lending to an recent legislation intended to free up capital for its loan products, especially among the com- Trinity Capital LLC, a boutique investment increase in demand from potential borrowers. small-business lending. Among the measures, mercial and industrial markets.” bank in Brentwood, has hired Sharon Hatch- “There appears to be more activity compared Congress established a $30 billion fund to Bank executives did not return requests for ell as senior vice president. … City National to a year ago with property purchase requests encourage community banks to resume lend- comment. announced two hires in its capital finance unit: and business purchase requests,” he said. ing, and extended an earlier move to raise the Martin Chin has joined as senior vice presi- City National Corp. also made a signifi- SBA loan guarantee to 90 percent. Inland Merger dent and Brent Phillips was hired as vice pres- cant jump in the national rankings. The down- Patrick Rodriguez, a spokesman for the Credit Union of Southern California, a ident. … Union Bank, a subsidiary of San town L.A. institution was the 41st largest SBA SBA’s L.A. office, said the legislation, com- Whittier institution with $599 million in assets, Francisco’s UnionBanCal Corp., has hired Joe lender in the country, originating 85 loans, bined with an improving economic landscape, announced plans last week to merge with a Soto as community lending sales manager for after failing to rank in the top 100 in the same has “provided tools to small-business owners smaller credit union in Pomona. the L.A. region. period last year. through tax breaks and incentives, and also CU SoCal, as it is known, will have $642 Nationwide, SBA lending is up 47 percent provided additional capital to small businesses million in assets and eight branches after Staff reporter Richard Clough can be reached this year to more than 29,000 loans, according through our loan programs.” absorbing Inland Empire Credit Union, the at [email protected] or at (323) to the data. In the L.A. district, the number of Not every local bank upped its SBA lend- institutions said. The transaction requires 549-5225, ext. 251. FDA Gives Approval and a Leg Up to Device Maker R&D: MannKind-owned form. Efficient execution of that strategy has HEALTH almost tripled the company’s stock price com- Bioness to step up efforts CARE & pared with a year ago. Shares, which trade over the counter, closed at $2.63 on May 26. on mobility stimulator. BIOTECH Revenue in the most recent fiscal third DEBORAH quarter, which the company reported this S Alfred Mann struggles to get the first month, rose 23 percent to more than $7.6 mil- product from his public drug develop- CROWE lion. Derycz reported a $1.5 million loss, com- A er MannKind Inc. approved, one of pared with a year-earlier profit, primarily due his smaller companies has received the Food smaller design rather than rely on certain data to an accounting change. and Drug Administration’s blessing this month that was gathered in studies using the original Chief Executive Peter Derycz sees his com- to market its third medical device. inhaler. The device would be the company’s pany as a superaggregator that eliminates the Bioness Inc., a privately held Valencia first product. need for a customer to do research and reprint company, received approval for its second- MannKind narrowed its first quarter loss by work themselves. Customers get access to an generation wireless neurostimulation system, 7 percent to $41.5 million as it cut its research enormous database of articles and several which increases the mobility for victims of and development costs. However, it reported delivery options. strokes, multiple sclerosis, and traumatic brain 16 percent higher expenses, mostly due to sev- While one company might want a few or spinal cord injuries. erance payments related to laying off 179 copies of an article delivered to key scientists, Historically, patients have relied on rigid workers, about 40 percent of its staff. another may require tens of thousands of plastic braces to walk, but they restrict thigh The company had $47.5 million in cash at copies sent via e-mail to doctors before a med- and ankle movements and can increase the risk the end of March, down from $70.4 million at ical conference. Derycz the company handles of falling. Bioness’ first product, the Ness the end of last year. Mann, who is chief execu- the logistics, while also negotiating publisher L300 unit, provides electrical stimulus to the Shoo-In: Bioness’ Ness L300 Plus unit. tive of the company and its largest shareholder and copyright issues. Most of its customers are lower leg, helping patients move their ankle. with 39 percent of stock, said his team is con- drug makers or medical device manufacturers. The just approved Ness L300 Plus System ble said that thousands of Ness L300 units sidering a variety of financing options to get “Like Amazon, we stand between the pub- adds thigh stimulation, giving patients control have been sold since the device was approved them though the coming year. lishers and the consumers,” Derycz said. “We over their knees. The device is synchronized in 2004. Research and development takes “I remain committed to MannKind and I’m make sure documents are flowing one way and with a wireless heel sensor to detect when the place in both Valencia and Israel, where the exploring ways to make moneys available. We dollars are flowing the other way.” foot is on or off the ground. technology was developed and the devices are are also studying several nondilutive as well as The company foresees additional gains “It’s more than just a prosthesis device still manufactured. dilutive financing opportunities,” said Mann, from the acquisition of a European competitor. because it can actually help the user rehabili- who has loaned money to the company in the The all-stock deal to buy Techniques tate,” said Kim Schelble, Bioness marketing MannKind Regroups past as well as taken larger equity stakes. Appliquees aux Arts Graphiques, a reprint director. Meanwhile, Mann and other executive at company outside Paris, is expected to increase The company’s other product is a forearm MannKind said during a first quarter confer- Derycz’s Growth Continues. revenue by about $1 million per month, a 50 device to treat hand paralysis. None of the ence call that they expect new clinical trials to When drug companies need copies of a percent increase from preacquisition levels. devices is cheap, with suggested retail prices of answer FDA concerns about the company’s medical journal article to promote a new drug, The deal closed in April. roughly $7,900. But Schelble said that with Afrezza insulin inhaler device, which was Derycz Scientific Inc. is working hard to Medicare or private insurance, costs can be cut recently redesigned. However, those trials may make sure it’ll get the call. Staff reporter Deborah Crowe can be reached by 20 percent to 50 percent. not be completed until next year. The Santa Monica company has found a [email protected] or at (323) The company, of which Mann is majority Regulators decided in January that they growth business by providing archival scientif- 549-5225, ext. 232. Staff reporter Joel Russell owner, does not disclose revenues, but Schel- wanted more extensive trials on the new, ic literature in both printed and electronic contributed to this story. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
MAY 30, 2011 NEWS & ANALYSIS LOS ANGELES BUSINESS JOURNAL 13
$88.4 million in damages it won from Mattel Inc., and to labusinessjournal.com NEWS OF THE WEEK award it attorney fees, restitu- The best source for up to the minute local, national and tion and other costs from the worldwide business news. PIZZA DEAL: After more undisclosed amount. Calavo, a lion in cash on AWR’s bal- seven-year fight over rights to FREE MORNING UPDATE than a year of searching for a Santa Paula marketer of avoca- ance sheet, plus earn-outs the dolls. In a proposed order suitor, California Pizza dos, avocado products, refrig- payable over the next three filed in federal court in Santa Prepared by the editors of the Los Angeles Business Journal and sent to you by e-mail every business day. Sign up now at Kitchen Inc. has reached a erated fresh salsa and gua- years. AWR’s software is Ana, Van Nuys-based MGA www.labusinessjournal.com definitive agreement with camole hummus, said Ran- used in the semiconductor, asked for $339 million, an affiliate of Golden cho Cordova-based aerospace, test equipment and including $4.3 million in Gate Capital to be Renaissance has the communications industries. restitution from Mattel based The Burbank entertainment games through the mail on acquired for potential to sig- on unfair competition claims. giant, which has 340 stores the Netflix model. The acqui- about $470 nificantly JOBLESS RATE: Los MGA has argued that El worldwide, said the planned sition of San Francisco-based million in cash. expand its busi- Angeles County’s unemploy- Segundo-based Mattel set out openings would bring the Direct2Drive will expand The $18.50-per- ness. Renaissance’s ment rate fell to 12.1 percent to destroy most of the value of total number of interactive GameFly’s ability to deliver share price that San plants, which include in April – the lowest since its business through years of stores to 60. The new format games to consumers for a Francisco-based Golden facilities in Sacramento and December 2009 – as more litigation. Mattel claimed that includes special attractions, variety of platforms. Terms Gate agreed to pay is a pre- Houston, make deli-style sand- residents reported finding the Bratz doll line was first such as a child-size “magic of the deal were not dis- mium of about 11 percent wiches, grab-and-go salads work. The county also saw a drawn while its designer was mirror” castle showing Dis- closed. IGN’s minority equity over the L.A. restaurant and party trays. modest increase of 13,000 working for Mattel. ney movie clips and a work- stake in GameFly gives News chain’s closing price May 24. payroll jobs, led by small shop area for children to build Corp. an observer seat on Like other restaurant compa- BOUGHT: National Instru- gains in the health care and EXPANDING: Walt Disney custom toy cars. Among the GameFly’s board. nies that have sought part- ments Corp. has signed an leisure-hospitality sectors. Co. intends to triple the num- new locations will be a store Direct2Drive has regional ners, CPK has been facing agreement to acquire AWR The unemployment rate in ber of interactive-concept at Westfield Fashion Square offices in Los Angeles. rising food costs at the same Corp., an El Segundo devel- April was down a bit from a Disney Store locations by in Sherman Oaks. time it continues to deal with oper of design software for revised 12.3 percent in opening 40 more retail stores EARNINGS: Guess Inc. fewer diners or customers radio and microwave equip- March and 12.4 percent in this year around the world. NEW PARTNER: GameFly reported net income of $42.7 who order less when they do ment, in a deal valued at $58 April 2010. The figures Inc. has acquired million, 15 percent lower eat out. million. National Instruments, showed 60,000 more resi- Direct2Drive.com, a than a year earlier. Sales rose based in Austin, Texas, said dents reported they were videogame distribution and 10 percent to $592 million. ACQUISITION: Calavo that privately held AWR working in April compared download service owned by … 99 Cents Only Stores Growers Inc. has agreed to would continue to operate in with March. News Corp.’s IGN Enter- reported net income of $17.9 acquire Renaissance Food El Segundo as a wholly tainment, in a deal that million, 6 percent higher a Group LLC, which operates owned subsidiary under exist- PAYBACK: Bratz doll maker includes IGN taking a minori- year earlier. Revenue rose six fresh-food processing facil- ing management. The value MGA Entertainment Inc. ty stake in GameFly. Game- 11.5 percent to more than ities across the country, for an of the deal includes $7 mil- has asked a judge to triple the Fly of Los Angeles rents $378 million.
Advertising Feature
Hirings, promotions and special People on the Move accomplishments in local business
HEALTH CARE MARKETING ARCHITECTURE Leslie A. Margolin has been elected 360e, a Live and Visual Commu- AHBE Landscape Architects has Chair of the Board of Directors of nications Agency, owned by Chris hired Hongjoo Kim, RLA, ASLA as the March of Dimes Los Angeles Schultenover, President, continues a Design Principal. AHBE says that Division. Margolin, President & CEO a strong track record of winning con- adding Kim to its leadership team is a of Partners Transforming Health, secutive Silver Telly Awards. 360e critical component of the company’s Former Senior Executive at Anthem/ won three 2011 Silver Telly Awards future strategy. He brings to AHBE Blue Cross, Kaiser Permanente and for its brand image and product a comprehensive understanding CIGNA HealthCare (CA), will lead local launch work for client JAFRA Cosmet- of how landscape architecture March of Dimes efforts to improve ics’ new and improved Color line. can deliver design solutions with Margolin the health of women and babies. Schultenover Which lead to a complete ongoing Kim strong aesthetics, functionality, image overhaul with JAFRA. Delivering impressive ROI infrastructure, and ecology. on historic Product Launch Programs for its clients that leads to strong Agency/Client partnerships. EXECUTIVE COACHING Goodstone Group LLC, a global ENTERTAINMENT provider of executive coaching Paul Sewell and leadership advisory services, ADVERTISING joins Stratus Media welcomes David Peck to its Group as Senior Vice President of leadership team. Peck, based in Viamedia hires Allan Kass as VP/ Global Marketing and Group Sales. Palm Springs, serves clients in GM for Los Angeles Market. Kass His experience in entertainment California and around the world. will be responsible for driving local brand marketing and business Like all Goodstone coaches, he has and regional business, providing development includes: SVP of significant management experience, support for the national sales teams, Partner Integration for House Peck expertise in behavioral change, and assisting in training efforts, driving of Blues Entertainment, and as outstanding coaching credentials. focused sales events and delivering Executive VP of Partnerships and budget expectations. Additionally, Sewell Business Development for AVP Pro he will work closely with Viamedia's Beach Volleyball tour. Kass Manager of Advanced Advertising MARKETING to increase Viamedia Online Sales opportunities. Kass comes to Viamedia with over 30 years experience in the advertising industry. ENTERTAINMENT Ned Sands joins Stratus Media Group as Vice President of REAL ESTATE Advertising Sales and Sponsorships. He launched his profession at Bravo RJ Feder & Associates, Inc. TV, and joined NBC and MTV as VP of announced the appointment of Sales. Ned’s portfolio also includes: Eric Friedland as Vice President Executive Director of Sales at Tennis Shahrik Huelsman Barroukh of Retail. Mr. Friedland brings Channel and VP of West Coast Sales 25 years of Commercial Real Creative Partners West, a Los Angeles marketing com- at IGA Worldwide. Estate experience to RJ Feder. Sands munications firm, announces the addition of three new He specializes in retail tenant employees: Kim Huelsman as Creative Director, Julie Bar- representation, owner-user roukh as Director of Business Development, and Anahid acquisitions and sales and retail Shahrik as Social Media Strategist. The announcement Friedland leasing on behalf of both landlords is part of the firm’s expansion of services beyond public Contact Rosz Murray and tenants. Mr. Friedland handles both new store relations. The firm now offers a wide range of marketing, development as well as repositioning stores in various at 323.549.5225 branding, advertising, and social media programs. trade areas according to client requirements. www.creativepartnerswest.com [email protected] 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
14 LOS ANGELES BUSINESS JOURNAL PEOPLE MAY 30, 2011
RINGO H.W. CHIU/LABJ ‘Bites’-Sized: Ludo Lefebvre at Gram & Papa’s, a restaurant in L.A.’s Fashion District that was home to one of his most successful temporary restaurants.
The popularity of his temporary-restaurant concept has earned Ludo Lefebvre his own reality show, where the chef hopes to In and Out keep the focus on cooking and not his spicy-hot personality.
By ALEXA HYLAND Staff Reporter Question: You’ve been traveling through- You pioneered the pop-up restaurant out the United States filming your upcom- Ludovic ‘Ludo’ Lefebvre business with LudoBites. Why did you HEN Ludo Lefebvre was a kid, ing reality show, “Ludo Bites America.” want to launch a temporary restaurant? his parents looked down their What’s the experience been like? TITLE: Founder When I created this concept, LudoBites, three noses at chefs, saying the job Answer: I’ve been cooking for 25 years, I COMPANY: LudoBites years ago, it was more of a restaurant for my was for people too stupid to be know a lot about cooking. But there’s still a friends. I was tired of cooking for food critics. W BORN: Burgundy, France; 1971 lawyers, doctors or accountants. Well, they’ve lot I don’t know. On the show, I go and I When I was working at Bastide and L’Orangerie, since changed their tune. Lefebvre, 40, has learn about people, and I cook at the EDUCATION: College of Toucy (high school it was a race to be No. 1 and it was a lot of pres- become one of the most well-known chefs in the restaurants. equivalent); apprenticeship supervised by Le sure. I was tired of wearing a white hat and white world. The New York Times called him an Castle in Dijon (technical school equivalent). jacket. So I said to Krissy, “I just want to do a “impresario of pop-up dining” and Time mag- What did you learn about Americans? simple restaurant and cook my kind of food.” At CAREER TURNING POINT: Starting azine dubbed him a “chef of the future.” Lefeb- I learned that each state is so different. It’s LudoBites, we create this relationship between LudoBites, a temporary restaurant he runs vre has become a critic’s darling thanks to his very interesting to see how the cooking is so the chef and the customer. I take your order, I’m with his wife, Krissy. widely popular temporary restaurant concept different in each state, and how people cook cooking, it’s like you are in my house. LudoBites – demand for a table is often so and eat. In Alabama, for example, people are MOST INFLUENTIAL PEOPLE: Krissy; Marc extreme that hopeful customers have crashed so slow over there. I wish I could be like that Meneau, Pierre Gagnaire and Alain Passard, But you haven’t been able to get away the OpenTable reservation system. But Lefeb- in my life. chefs he studied with in France. from the food critics with LudoBites. Do vre, with his brash personality and rock star you still feel the pressure? PERSONAL: Lives with wife in Sherman tattoos, doesn’t like to be called a celebrity How did the show come about? When LudoBites opened for the first time, it Oaks. Couple has twin babies, a boy and a chef. He says he’s just a regular guy with a A lot of networks and producers wanted to do was great. We had a lot of bloggers and girl. passion for cooking inspired by his grandmoth- a show with us. People saw me on “Top Chef nobody was taking themselves seriously. But er: He would help her prepare the family meals Masters.” I screamed a lot; I’m French; I ACTIVITIES: Taking care of twins; painting. now, LudoBites is so big and we have all the when he was a young boy growing up in the express myself. So people love the drama with critics coming here – from the New York French province of Burgundy. Lefebvre sat me. But I take myself seriously and I didn’t Times, the Los Angeles Times – it’s kind of down with the Business Journal at Gram & want to do a show about my life with Krissy So now you’re really a celebrity chef? amazing. And now there are so many bloggers Papa’s, a Fashion District restaurant where and fight on camera in my house. It still needs People say I’m a celebrity chef and I’m not. I and they take themselves so seriously. They Lefebvre staged one of his most successful to be about my philosophy, about cooking and don’t like when people call me a celebrity. For come here because they want to be the first to LudoBites, to discuss his apprenticeships under about traveling. So we sent out a pitch to a lot me, a celebrity is somebody you see a lot on take pictures of the food and they forget to eat. famous French chefs, his travels throughout the of producers and networks, and Sundance TV and not enough in his restaurant – that’s a It’s still fun, but now it’s a lot of pressure. United States for his new reality show and what Channel was the first one to say yes to our celebrity chef. But when you come to Ludo- he would order for his last meal. show so we went with them. Bites, I’m here every night. Please see page 16 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
MAY 30, 2011 LOS ANGELES BUSINESS JOURNAL 15 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
16 LOS ANGELES BUSINESS JOURNAL PEOPLE MAY 30, 2011
Continued from page 14 Through the Years: Like all chefs, you’ve had your bad nights. Clockwise from New York Times critic Sam Sifton was top, Ludo there for one of yours, although you Lefebvre in 2001, didn’t know it at the time. What hap- at L’Orangerie. pened? In 1974 at a I went walking around the block because I was beach in Spain. getting frustrated with the staff. I had some With his wife, new shoes on and I got blisters. People don’t Krissy, in 2009 at realize, but LudoBites is challenging. Breadbar in Los Angeles. What upset you? My staff was repeating the same mistakes. What was I supposed to do, say, “Great job”? No. I couldn’t take it anymore. Every time I have new cooks. I never really get the same staff, so I have to retrain people. But it’s fun when you finish. It’s an amazing experience.
Who inspired your interest in cooking? My grandmother. My mom was a great cook, too, but my mom was working, so my grandmother took care of me every day. She would pick me up from school at 4 p.m. and then she would cook and I would do my homework at the kitchen
table. It was just amazing to see her cook, the way PHOTO BY RACHEL WEILL she was so passionate and serious about it.
Which of your grandmother’s meals is your favorite? Roasted potatoes with roasted chicken. It’s so simple, but so difficult to make because you want the skin crispy and the meat very moist.
Do you make that for yourself now? Yes, and it’s not bad. But it’s not as good as my grandmother’s.
Tell me about growing up in France. I grew up in Burgundy, wine country. It’s all about wine and food. I have memories of peo- ple coming to my house and eating for five hours. They would just party and drink and party, and my grandma would cook.
At 13, you knew you wanted to be a chef. PHOTO BY KEVINEATS.COM How did your parents react to that? My dad didn’t want me to be a chef because at that time, a chef was not a job you could be break the mailbox of the teacher. I had nothing to When somebody tells me my steak tartare is I think I’m going to make a line of food for proud of. It was more like if you aren’t smart do in Burgundy and my friends had nothing to do. too raw. It is raw. People don’t know. I don’t babies. When we did the baby shower and in school, then you go be a chef in the kitchen. know how bloggers with no experience can played the games, they blindfolded me and I And my mom, a side of my mom’s family is Did you graduate high school? come here and judge me in my job. You know had to taste the baby food. It didn’t taste like very snobby. But I liked to cook. I don’t know how, but I graduated high school. what my dream is? To go and judge people in what it’s supposed to taste. I’m going to cook I graduated because my dad put me in religious their job because they judge me in my job. for my babies, do a BabyBites. And your parents came around? school. I went to work at a restaurant with Marc Sounds like the negative comments hurt What else inspires you? Meneau, so it was better because I was work- You moved to Los Angeles at 24. Why you. What’s going on in my life, what’s around me. ing with a big chef. Southern California? Sometimes it makes me sad and sometimes it I get inspiration from traveling, looking at I came to L’Orangerie. I had a chance to go to make me want to close the restaurant because other restaurants, looking at magazines or What was it like working with him? Chicago or New York, and I don’t know why I it hurts. They come here to judge you and to be painters. It was very hard. I was 14 years old, working 18 picked Los Angeles. I was thinking I would negative because you are so successful. hours a day with 20 cooks in the kitchen who stay for two years; I’ve been here for 16. Who is your favorite artist? beat me up all day and said, “You are doing a There are moments when you want to I’m obsessed with Jean-Michel Basquiat. To bad job.” They would put me in a corner, and What kept you here? stop doing LudoBites? look at his paintings makes me want to cook. tell me to peel the potatoes. But I liked it. I became the head chef at L’Orangerie after six So many times I want to quit, but Krissy won’t His texture, his color, I like the way he paints a months and I was very happy to be head chef. let me. message in his paintings. It’s very powerful. Any other memories from that experi- But I think it was too much. I wish I would ence? have traveled more, traveled to Asia or South What’s Krissy like? Tell me about your tattoos. I was living in a house with a lot of people, America and learned about food. We don’t fight too much. When we have I got my first tattoo in 1996. I got a flower on like a boarding house, and I was scared. I was fought a few times, I say to Krissy, “What hap- my back. I regret it now, I cover it. People ask 14 years old; it was chaos. I was living with So you shouldn’t have stayed? pens at the restaurant has to stay at the restau- me, “Why don’t you have a tattoo about people who were 20 years old and 30 years I wish I had stayed two years at L’Orangerie rant.” food?” But I have things that inspire me in my old, and they were all watching porn movies and then done something else. But I became life. I have Buddha, it’s a spiritual thing, and on TV. I was afraid to take a shower with head chef and it was a good job. I always say How did you two meet? the name of my wife and my sister. I have a them. It was terrible. Every morning, I had no to my young chefs, “Don’t become a head chef When I was a chef at L’Orangerie, she was a rooster. In France, the logo for national teams way to get to work so I would hitchhike. Some at 24, 25 or 26. Work with other chefs and guest. Trust me, I was working. like soccer or rugby is the rooster. guys would take me every morning. learn their different philosophies.” I know Krissy had a hysterectomy after What’s the best advice you’ve received? What lessons did you learn? Which chef was the most influential in being diagnosed with cervical cancer. So In life, you need to be you and don’t try to be Just to say, “Yes, chef.” Even if the chef is your life? did you have a surrogate for your baby somebody else, and it’s true. Pierre Gagnaire wrong, you say, “Yes, chef.” Marc Meneau because I learned a lot about twins? told me that. cooking from him. He taught me to have this We had a surrogate; it was an amazing experi- How did working at such a young age connection with food. ence. We tried adopting, but it’s a messed-up What would you order for your last meal? shape you? business. It was a nightmare. My grandmother’s roasted chicken with pota- I learned to be responsible, it was good for me. Do you keep in touch with him? toes. I think being a chef really saved me from being A few months ago, he called me and said, “I’m How have the twins changed your life? a bad boy. Trust me, at 14 years old I was very proud of you.” He had heard about the The babies have given me more inspiration. I What do you have left to accomplish in doing some stuff. food truck. And that’s cool, a three-star Miche- want to be more successful for my kids and your life? lin chef is proud of my food truck. more responsible in life. I’m not going to ride A lot of things. Next year, I hope to open a Like what? my motorcycle anymore. new restaurant concept. And I want to take I was very bad in school. I was stealing radios Have people ever said anything about LudoBites on a restaurant tour like a band, like from cars, stupid things. I would take a bat and your food that upset you? So they’ve motivated you. a rock star. 6,109 3,503 2,027 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page 1,959 1,647
MAY 30, 2011 LOS ANGELES BUSINESS JOURNAL 17
X NEXT WEEK RESTAURANT GROUPS The 25 Largest Insurance Brokerage THE LIST Ranked by Los Angeles County units Firms in L.A. County
X EXECUTIVE SUMMARY X THE TRENDS X THE PACESETTER
HE 25 largest food and beverage UBWAY tops the list of chains operating in Los Angeles Meal Tickets the largest restaurant T County run 3,898 locations. Food and drink sales in California. S groups with 611 loca- That’s down 42 locations, or 1 percent, tions in Los Angeles County. from last year. $60 That’s up 26 locations from The decrease primarily came from (in billions) last year. two companies: Starbucks Corp. and 55 The company offers fran- Quizno’s. Seattle-based Starbucks has chise opportunities locally 50 408 stores in the county, a decrease of through OhCal Foods Inc., a 28 stores compared with a year ago. The 45 development agent for both coffeehouse operator closed 600 stores Los Angeles and Orange coun- nationwide since 2008 as part of cost 40 ties. OhCal also owns rights Hardy Grewal reductions related to the recession. 35 to offer franchises in Ontario, Denver-based Quizno’s has 143 stores Canada. More than 1,000 Subways operate in OhCal’s territories. in the county, down 26 from a year ago. 30 The company has grown quickly under the leadership of Hardy Grewal, 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 The sandwich shop operator hasn’t been OhCal chief executive. Grewal, a franchisee himself, sold most of his stores able to keep pace with Subway, which to acquire rights to the local territory in 2007. At that time, he set a goal to has maintained growth and had the largest open 150 Subways in Los Angeles in seven years. increase in units locally. Quizno’s reached Growing Appetite “We are way ahead of schedule,” Grewal said. “We opened 150 stores a $206 million out-of-court settlement last The number of restaurants in California. in just four years. Our goal is now to open up 100 more in the next three year in a class-action lawsuit with franchi- years.” sees who sued the company for deceptive 100,000 The company tends to give new franchises to current franchise owners. business practices. On average, L.A. County franchisees own three stores each and Grewal said Burger King and Carl’s Jr. both saw 95,000 his company seldom approves new owners. modest decreases in store counts in the 90,000 “It makes it easier for us if a current franchisee agrees to open a new county. Burger King was down five store. We look at the sales, volume and demographics of an area and ask stores; Carl’s Jr. shed two locations. In 85,000 them to open nearby,” he said. comparison, McDonald’s added two 80,000 Locally, top stores include those at universities such as UCLA and USC. locations while In-N-Out had zero net A location that opened earlier this year at Union Station in downtown Los changes from last year. 75,000 Angeles is also among the top 10 stores in sales for the region. Fred DeLuca founded the sandwich chain in 1965 as a way to pay for Only six chains grew this year. Aside 70,000 from Subway, Panda Express and Little 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 college. The first L.A.-area store opened in 1979 in La Crescenta. Caesar’s Pizza made modest increases, – David Nusbaum both adding four stores from last year. Source: California Restaurant Association – David Nusbaum
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18 LOS ANGELES BUSINESS JOURNAL THE LIST MAY 30, 2011
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TRANSIENT OCCUPANCY TAX AUDIT PROGRAM - City of Los Angeles seeks qualifi ed professional fi rm(s) to develop and implement a Transient Occupancy Tax Audit Program. RFP available beginning Tuesday, May 31, 2011 from the Offi ce of Finance, 200 N. Spring St., Room 220, Los Angeles, CA 90012, Attn: Ken White, (213) 978-1510. Proposal due Monday, July 11, 2011. Please visit www.labavn.org for a copy of the RFP.
Staying Subscribe today. As part of your subscription, you will also receive access to still isn’t the daily electronic Los Angeles Business Journal, unlimited on-line an option access to our archives, and the Book of Lists published at the end of the year.
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MAY 30, 2011 LOS ANGELES BUSINESS JOURNAL 19
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20 LOS ANGELES BUSINESS JOURNAL DATA BANK MAY 30, 2011
CONVENTIONS 9 a.m. CALENDAR 261 S. Figueroa St., downtown Los Angeles Friday, June 10 $165 Networking Breakfast • Dwell on Design Wednesday, June 1 (310) 825-2012 Sponsor: Beverly Hills Chamber of Commerce June 25-26 8 a.m. Business Breakfast www.DwellonDesign.com Sponsor: Sherman Oaks Chamber of Commerce Tuesday, June 7 North Face 423 N. Beverly Drive 7:30 a.m. Speed Networking Anime Expo Maria’s Italian Kitchen Sponsor: West Hollywood Chamber of Commerce $25 • July 1-4 13353 Ventura Blvd., Sherman Oaks 8 a.m. (310) 248-1000 $35 Cecconi’s www.Anime-Expo.org (818) 906-1951 8764 Melrose Ave., West Hollywood Thursday, June 16 $10 Foreclosure Workshop California Gift Show Business Card Exchange • (323) 650-2688 Sponsor: California Foreclosure Institute July 22-25 Sponsor: Santa Fe Springs Chamber of Commerce 6 p.m. (800) 526-2784 7:30 a.m. Torrance Library Town Center Hall Responding to RFPs Sponsor: Federal Technology Center 3301 Torrance Blvd. 11740 Telegraph Road, Santa Fe Springs Adultcon $25 9 a.m. Free • (562) 944-1616 Long Beach Area Chamber of Commerce (310) 379-0101 July 29-31 One World Trade Center (310) 859-6900 Foreclosure Workshop Free Saturday, June 18 Sponsor: California Foreclosure Institute (866) 382-7822 Business Survival BrideWorld Expo 5:30 p.m. • Sponsor: VEDC July 30-31 Lloyd Taber-MDR Library Background Checks 9 a.m. 4533 Admiralty Way, Marina del Rey (800) 600-7080 Sponsor: Challenger Networking Group 5121 Van Nuys Blvd., Van Nuys Free Free (310) 379-0101 Noon Zen Buffet (818) 907-9922 • Modern Living Expo Thursday, June 2 21610 Victory Blvd., Woodland Hills Aug. 6-7 $11 lunch Wednesday, June 22 (626) 274-9666 Speed Networking Sponsor: Santa Monica Chamber of Commerce (818) 992-4270 State of the City 7:30 a.m. Sponsor: West Hollywood Chamber of Commerce West Coast Expo Noon • La Cachette Bistro Startup Do’s and Don’ts Aug. 12-14 1733 Ocean Ave., Santa Monica Sponsor: VEDC Plummer Park, Fiesta Hall (323) 905-1306 $25 4 p.m. 7377 Santa Monica Blvd., West Hollywood (310) 393-9825 5121 Van Nuys Blvd., Van Nuys $75 $10 (323) 650-2688 • Exxxotica Expo Enabling Army Operations: Global Employment (818) 907-9922 Aug. 26-28 (two-day event) Sunday, June 26 (215) 462-8800 Sponsor: Greater L.A. Chapter of the Association of Wednesday, June 8 Casino Night the Army 7:30 a.m. Zhihang Chi, Air China general manager Sponsor: Beverly Hills Bar Association, Senior Clean Air Fair Barristers • Westin Hotel Sponsor: Town Hall Los Angeles Sept. 15 333 E. Ocean Blvd., Long Beach 11:30 a.m. 5 p.m. (909) 396-2221 $500 Millennium Biltmore Hotel Sofitel (714) 220-3897 506 S. Grand Ave., downtown Los Angeles 8555 Beverly Blvd., Los Angeles $67 $95 • Wizard World Comic Con Interactive Awards Gala (213) 628-8141 (310) 601-2422 Sept. 24-25 Sponsor: thinkLA (646) 380-2475 6:30 p.m. Thursday, June 9 To be considered for publication, Calendar listings Beverly Hilton should be submitted at least three weeks in advance Business-to-Business Luncheon 9876 Wilshire Blvd., Beverly Hills of the event. Listings can be submitted by e-mail to • Fall Home and Garden Show $225 Sponsor: Alhambra Chamber of Commerce Sept. 30 (310) 823-7320 [email protected] or by mail to: 1:30 p.m. (800) 999-5400 Wahib’s Los Angeles Business Journal Friday, June 3 910 E. Main St., Alhambra Calendar Intro to Entrepreneurship $16 5700 Wilshire Blvd. #170 Sponsor: UCLA Extension (626) 282-8481 Los Angeles, CA 90036 L.A. Convention Center, (213) 741-1151, ext. 5340
Lee S. No Manzano Holdings Inc. Michael Jay Berger L.A. 90010 BANKRUPTCIES 916-484-5870 (Investment) 310-271-6223 Chapter: 11 5405 Lindley Ave., Suite #207 Assets: N/A Green Star Resources Inc. 4947 Great Encino LLC Tarzana 91356 Art Deco First Street LLC Debts: N/A (Business type N/A) (Real estate) Chapter: 7 (Apartment rentals) Doc# LA11-28407-BB 201 N. Palomares St. 15720 Ventura Blvd., #415 Assets: N/A 281 Nieto Ave., #A File-Date: 04/28/11 Pomona 91767 Encino 91436 Debts: N/A Long Beach 90803 Mark S. Horoupian Chapter: 7 Chapter: 7 Doc# SV11-15065-GM Chapter: 7 213-626-2311 Assets: N/A Assets: $240,380 File-Date: 04/25/11 Assets: $808,350 Debts: $1,870,359 Debts: N/A LA Reit Inc. Doc# SV11-14995-MT Lynne Romano Debts: $1,432,786 Doc# LA11-27492-VZ (Real estate consultant) File-Date: 04/22/11 626-552-0270 Doc# LA11-28348-ER File-Date: 04/22/11 433 N. Camden Drive, Suite #600 Pro-per. File-Date: 04/27/11 Joseph M. Tosti WCK Inc. James G. Allen Beverly Hills 90210 949-450-1200 Davis Children’s Clothing Inc. DBA: Four Points by Sheraton 818-735-7000 Chapter: 11 FDBA: Davis Children’s Wear (Business type N/A) Assets: N/A Capco Offshore of Texas Inc. (Children’s clothing) 23790 Canyon Vista Court Cisco Bros. Corp. Debts: N/A (Business type N/A) 834 S. Los Angeles St. (Business type N/A) Doc# LA11-28454-EC 201 N. Palomares St. Diamond Bar 91765 L.A. 90014 5955 Western Ave. File-Date: 04/28/11 Pomona 91767 Chapter: 11 Chapter: 7 Pro-per. Chapter: 7 Assets: N/A L.A. 90047 Assets: $100 Debts: N/A Chapter: 11 Assets: $3,650,000 Debts: $37,497 211 E. 55th Street LP Debts: $1,390,760 Doc# LA11-28047-PC Assets: N/A Doc# LA11-27920-ER File-Date: 04/26/11 Debts: N/A (Business type N/A) Doc# LA11-27498-BB File-Date: 04/25/11 John Eom Doc# LA11-28380-AA 433 N. Camden Drive, Suite #600 File-Date: 04/22/11 Young K. Chang Beverly Hills 90210 Joseph M. Tosti 213-384-3326 File-Date: 04/27/11 213-480-1050 Chapter: 11 949-450-1200 Brian L. Davidoff Assets: N/A ML Properties Inc. 310-286-1700 Keokuk Valley Investments Inc. Debts: N/A Alondra & Virginia LLC (Business type N/A) (Investment) Doc# LA11-28461-EC (Single-asset real estate) 2862 W. Eighth St. Majestic Towers Inc. 18375 Ventura Blvd., Suite #423 File-Date: 04/28/11 11726 San Vicente Blvd., Suite #290 L.A. 90005 (Real estate) Tarzana 91356 Pro-per. L.A. 90049 Chapter: 7 Chapter: 11 3515 Wilshire Blvd. Chapter: 11 Assets: N/A Assets: N/A Assets: N/A Debts: N/A Debts: N/A Debts: N/A Doc# SV11-15054-VK Doc# LA11-28087-VZ Bankruptcy information is supplied by Timely Info of Los Angeles, Jack Vaughn (323) 664-4423. Chapter 7: a “straight” liquidation bankruptcy involving an appointed trustee to sell all assets by Doc# LA11-27551-AA File-Date: 04/25/11 File-Date: 04/26/11 File-Date: 04/22/11 auction or other means to pay creditors and trustee fees. Lynne Romano John Eom Robert S. Altagen Chapter 11: a process which allows a business to gain temporary relief from paying debt in order to 626-552-0270 213-384-3326 323-268-9588 attempt a successful reorganization. The debtor remains in control of the business during the bank- ruptcy and the business continues to function. Great Osborn LLC Hoskins Enterprises Inc. Firgrove Plaza LLC (Business type N/A) Chapter 13: a bankruptcy plan available to individuals whose “income is sufficiently stable and reg- (Business type N/A) (Adult day program) ular to enable such individual to make payments under a plan.” The debtor makes payments to a 15720 Ventura Blvd., #415 trustee who disburses the funds to creditors. 17520 Kingsbury St. Encino 91436 14365 Foothill Blvd., Unit #6 Granada Hills 91344 Chapter: 7 Sylmar 91342 Involuntary bankruptcy: the debtor is forced into bankruptcy by secured creditors whose claims Chapter: 7 Assets: $960,000 Chapter: 11 total at least $220,000. Involuntary bankruptcy may be filed under Chapter 7 or 11. Assets: N/A Debts: $3,970,000 Assets: $186,198 AKA: also known as FKA: formerly known as Debts: N/A Doc# SV11-15057-MT Debts: $230,283 DBA: doing business as FAW: formerly associated with Doc# SV11-14981-VK File-Date: 04/25/11 Doc# SV11-15148-GM FDBA: formerly doing business as File-Date: 04/22/11 Pro-per. File-Date: 04/26/11 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
MAY 30, 2011 • AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL
Improving Care,
A SPECIAL Improving REPORT ON HOSPITALS & Communities HEALTH CARE
SPONSORED BY
This special advertising supplement did not involve the reporting or editing staff of the Los Angeles Business Journal. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
22 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL MAY 30, 2011
IMPROVING CARE, IMPROVING COMMUNITIES
Hospital Association of Southern California (HASC): An Overview
INCE 1923, the Hospital Asso- concerns and regulatory issues. We work to influence the future of health action on policy issues. Topics for ciation of Southern Califor- work with county boards of supervi- care in a way that best represents hos- current committees and task forces Snia (HASC) has effectively sors, chambers of commerce, local pital interests, patients’ needs and the include quality and patient safety, advanced the interests of hospitals departments of health and other communities they serve. Together, we palliative care, behavioral health, in Los Angeles, Orange, Riverside, agencies to assure the hospital’s create visionary change no hospital licensure and accreditation, managed San Bernardino, Santa Bar- voice is heard. can achieve alone. care, emergency medical services, bara and Ventura Coun- We serve our mem- HASC helps to: contracting, among many others. ties. We are comprised of bers through two • Improve quality and patient safety With 95% market share, our mem- 165 member hospitals and unique organizations: • Support hospital transition to bership represents a varied cross sec- health systems (public, HASC - a historically value-based purchasing and health tion of Southern California’s health private, not-for-profit and strong hospital trade reform care community. Members include: for-profit), plus numerous association that serves • Promote appropriate reimburse- • 165 hospitals related professional associ- the political, economic ment from Medicare and Medi-Cal • 30 hospital systems ations and associate mem- and educational needs • Preserve the safety net, trauma sys- • 52% non-profit facilities bers, all with the common of hospitals. tems and access to care • 37% investor-owned facilities goal: to improve the oper- AllHealth - a HASC • Provide education, funding and • 11% government-sponsored facilities ating environment for HASC President/CEO subsidiary providing promotion of disaster and pandem- • 11 affiliated professional societies hospitals and the health Jim Barber specialized fee-for-ser- ic preparedness status of the communities vice products to help • Initiate long-range solutions to the HASC has a staff of 65 and a $22 they serve. hospitals improve operations. hospital workforce shortage million operating budget with Working alongside the California In a changing health care environ- HASC sponsors 25 board-appoint- offices located in Los Angeles, Hospital Association (CHA), we pro- ment, hospitals need assertive repre- ed member committees and numer- Orange, Riverside and Ventura vide leadership at the local, state and sentation. Through partnerships with ous task forces where hospital execu- Counties. To learn more about federal levels on legislation, budget CHA and community hospitals, we tives can meet, confer and initiate HASC, please visit www.hasc.org.
Hospital Association of Southern California Board of Directors 2011
EXECUTIVE COMMITTEE MEMBERS AT LARGE: INLAND AREA ORANGE COUNTY AREA MEDICAL STAFF LIAISON Ruthita Fike, MEMBERS: Chief Executive Officer Richard Afable, M.D., Chair: Chair: Paula Verrette, M.D., Loma Linda University Chair: President/Chief James Holmes, President/ Peter Bastone, President/ Vice President, Quality/Per- Medical Center Richard Yochum, Executive Officer Chief Executive Officer Chief Executive Officer formance Improvement President/ Hoag Memorial Hospital Redlands Community Mission Hospital Chief Medical Officer John Schunhoff, Ph.D., Chief Executive Officer Presbyterian Hospital Huntington Memorial Chief Deputy Director Pomona Valley Hospital Steve Geidt, Hospital L. A. County Department of Medical Center Steven Barron, President Patrick Brilliant, Chief Executive Officer Health Services St. Bernardine President/ Chief Saddleback Memorial TRUSTEE LIAISON Chair-Elect: Medical Center Executive Officer Medical Center Kenneth Westbrook, Michael Hunn, Riverside Community Walter Noce, Jr., President/CEO Senior Vice President and Michael Rembis, Hospital Debbie Walsh, Chairman of the Board Integrated Healthcare Chief Executive Chief Executive Officer Chief Executive Officer St. Joseph Health System Holdings, Inc. California Region Hollywood Presbyterian Karolee Sowle, Fountain Valley Providence Health Medical Center Chief Executive Officer Regional Hospital and HEALTH CARE EXECUTIVES SPECIAL CONSTITUENT & Services Desert Regional Medical Medical Center OF SOUTHERN CALIFORNIA REPRESENTATIVES Gary Wilde, President/ Center President: Chief Executive Officer SAN GABRIEL VALLEY AREA Josh Luke, Ph.D. Behavioral Health Services: Jim Barber, President/ Community Memorial LOS ANGELES Gary Mittelberg, Director, Chief Executive Officer Health System CENTRAL AREA Chair: PATIENT CARE Behavioral Health Hospital Association of James West, President/ ADMINISTRATION Glendale Adventist Medical Southern California COAST AREA Chair: Chief Executive Officer Center Beth Zachary, President/ Presbyterian Beverly Quaye, EdD, RN, Treasurer: Chair: Chief Executive Officer Intercommunity Hospital Vice President, Patient Hospital Distinct Part SNF: Douglas Bagley, Craig Leach, President/ White Memorial Medical Care Services/Chief Trevor Wright, Chief Executive Officer Chief Executive Officer Center/Adventist Health Philip Cohen, Nursing Officer Associate Administrator Riverside County Regional Torrance Memorial Chief Executive Officer St. Francis Medical Center Providence Little Company Medical Center Medical Center Leonard LaBella, Garfield Medical of Mary Medical Center- Chief Executive Officer Center/Monterey Park MULTI SYSTEMS Torrance Secretary: Mark Gavens, Verdugo Hills Hospital Hospital REPRESENTATIVES John Calderone, Ph.D., Chief Operating Officer EX-OFFICIO MEMBER Chief Executive Officer Cedars-Sinai Medical Center NORTHWEST AREA SANTA BARBARA/ Linda Bradley, Olympia Medical Center VENTURA AREA Chief Executive Officer C. Duane Dauner, HARBOR AREA Chair: Centinela Hospital President/Chief Gustavo Valdespino, Chair: Medical Center Executive Officer Chair: Chief Executive Officer James Raggio, Prime Healthcare Services California Hospital Gerald Kozai, Valley Presbyterian Hospital Chief Executive Officer Association President/CEO Lompoc Valley Mark Costa, St. Francis Medical Center Barry Wolfman, Medical Center Executive Director Chief Executive Kaiser Permanente Diana Hendel, Providence Saint Joseph Paul Lorenz, Los Angeles Chief Executive Officer Medical Center Hospital Administrator Community Hospital of Ventura County Adam Darvish, Long Beach/Long Beach Medical Center Vice President, Southern Memorial Medical Center/ California District Miller Children’s Hospital Kindred Healthcare 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
MAY 30, 2011 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL 23
You know the best soccer leagues in L.A. for your kids. Do you know the best hospital?
Giving their children the best of everything is every parent’s #1 goal. At Children’s Hospital Los Angeles, providing kids with the very best medical care has always been ours. Which is why we’re so proud that Children’s Hospital Los Angeles is one of only eight children’s hospitals in the U.S. good enough to be ranked “Best”on the prestigious U.S. News & World Report “Honor Roll.” To learn more about the children’s hospital that’s in a league of its own, visit CHLA.org or call 888-631-2452. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
24 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL MAY 30, 2011
IMPROVING CARE, IMPROVING COMMUNITIES
Health Care As the health care reform debate still goes on, the Los Angeles Business Journal turned to the HASC to gather four of the most knowledgeable and active participates in the equation, the Reform leaders of the hospitals themselves. Below is a series of questions the Business Journal posed to these health care stewards of Los Angeles County and the unique responses they provid- Roundtable ed – offering a glimpse into where health care stands today – from the perspectives of those in the trenches delivering health care services to the Discussion people of Los Angeles County today.
Last year the Affordable Care Act tives and information systems. This has). We also expect to see contin- do you feel health care reform was to became law. For the average busi- lack of alignment and duplication of ued/heightened focus on quality out- the current health care landscape? nessperson reading this, how would service drives up the cost of care – comes and patient safety initiatives. you describe the current state of health and does little to improve the health Moreover, there is a clear emphasis on Richard Yochum: Health care reform care, in a nutshell, and the differences outcomes. greater cost effectiveness. has been necessary for well over a health care reform will ultimately make Furthermore, there is little The not-so-good news is that very decade for several reasons — but two to that current status? “health” care in our health care sys- likely in the short-term there will be issues, in particular, come to the tem. For the most part, we are an increase in costs to the private forefront. First, the growing number Beth Zachary: In spite of the intense designed to respond and intervene sector as providers attempt to offset of uninsured and underinsured has focus on the problems of our indus- with medical care – procedures, hos- drastic reductions in reimbursement created a moral, ethical and financial try, the United States is blessed with pital stays, medication, etc… – all of from government payers. Also, with problem for our country. Second, the best medical care in the world. which is certainly more expensive respect to the soon-to-be initiated with the coming of the “age wave,” The technology, expertise, treatment than managing health. Health Exchanges, depending upon the federal government cannot sus- and facilities available to us can Over the past 10 years, this has how California bureaucrats config- tain the escalating cost in providing accomplish things that only a few begun to change as government and ure the rules/regulations – the out- care to millions more of Americans years ago seemed impossible. private insurers have begun to come could be a significant and neg- without significant change in the Unfortunately, we cannot afford require public reporting of clinical ative impact on local businesses. delivery and incentives in the way this care into the future – particular- and safety outcomes. Last year’s we provide care. ly if we are committed to expanding health care reform bill continues this Roger Seaver: Our health care system insurance coverage to a broader pop- process by beginning to address the capability is very good, but variation BA: Yes, reform has been, in a word – ulation. A major overhaul of the financing of health care. As current- in access, cost and quality threatens critical. The U.S. health care system medical system will be required – ly structured, the plan works to the existing system. Health care was clearly on an unsustainable eco- and is underway. incentivize cost efficiencies as well as reform focused on reforming the nomic path. However, ideally we While we frequently refer to our a focus on managing “health” of a insurance marketplace and attempts would have seen more health deliv- industry as the “health care system,” population. to mandate, subsidize and incen- ery system reform in the ACA as there is limited “system-ness” about tivize participation to improve access opposed to largely payment reform. how we operate. Hospitals, physi- Barry Arbuckle: The good news is that to coverage. If successful, it will be a cians, insurers, long-term care, the Affordable Care Act moves the giant step forward in gaining more RS: I agree that reform of the system homecare, outpatient centers and United States aggressively toward uni- equitable access for most that lack is necessary. Many ideas in the broad others who make up the industry versal coverage (like every other devel- comprehensive access today. reform legislation are attempts to operate independent of each other. oped nation in the world). However, achieve real reform, but many are For the most part, we have different we must have universal participation Prior to the launch of current health payment systems, financial incen- (again, as every developed nation care reform legislation, how necessary Continued on page 26
Roundtable Participants
BARRY ARBUCKLE, PhD ROGER SEAVER RICHARD YOCHUM BETH ZACHARY President/CEO President/CEO President/CEO President/CEO MemorialCare Henry Mayo Newhall Memorial Pomona Valley Hospital Medical White Memorial Medical Center / Health System Hospital Center Adventist Health 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
MAY 30, 2011 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL 25
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26 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL MAY 30, 2011
IMPROVING CARE, IMPROVING COMMUNITIES
Continued from page 24
unrealistic and do not address the need for common incentives ‘The United States is ‘The good news is that throughout the system. blessed with the best the Affordable Care Act From your perspective, have tangible medical care in the world. moves the United States and visible changes already been made? Unfortunately, we cannot aggressively toward universal BA: Yes, we are beginning to – but afford this care into the not so much as a direct result of the coverage. The not-so-good ACA – more of an indirect result as future – particularly if we news is that very likely in providers begin working more close- ly together and payers prepare for are committed to expanding the short-term there will what they believe lies ahead. insurance coverage to a be an increase in costs RS: The tangible and visible changes broader population.’ to the private sector.’ associated with coverage of children BETH ZACHARY BARRY ARBUCKLE to age 26, no lifetime maximums and access to insurance with pre- existing conditions are all close to being visible to the beneficiary. For business, federal and state govern- nesses to put them in place. I think will allow individual’s access to nearly as prevalent or widespread as ment and insurance companies, the primary thing to keep in mind as providers which today may only be it is in the US. And any changes in however, the real cost of this change employers is that prevention costs a offered through larger commercial our system invariably impact some is not yet determined. great deal less than medical care. group plans. the profit of some industry segment.
How long before we start to see a sig- RS: Business leaders will play a major BA: It is a more complex question BZ: There are many reasons for the nificant difference to the way health role as they make their value deci- than might appear obvious. The term heated debate about health care. care is delivered? sions in each market they serve and ‘moral hazard’ from the 16th century Like religion and politics, health care the role as purchaser, payer and comes to mind here. Moral hazard is is very personal. It affects each of us RY: Changes seem to be coming employer. I would encourage them when a party insulated from risk and our families. Because of this, slowly and the ultimate regulations to stay focused on the changes, stay behaves differently than it would and the reverence that our country have not yet been presented. Many educated and make the best deci- behave if it were fully exposed to the places on life, it is very hard to look of the proposed changes are in the sions you can for your long term risk. For many years, moral hazard at it from strictly a business or finan- demonstration stage with imple- view of the impact on your business. has existed with health insurance, as cial perspective. mentation targeted for 2012-2014. contrasted with automobile insur- As the government and business From a hospital perspective, do you ance for example, as the insured indi- work to expand coverage and con- How do you think the health care deliv- believe that health care reform, as it vidual has little to no economic trol the growing costs of health care, ery system will change in the coming has been sculpted by the current incentive to adopt a healthy lifestyle we will need to make some difficult five years as a result, specifically, of administration, will lead to improving (e.g., eating less, eating the right decisions about the benefits to be health care reform? patients’ safety and quality of care foods, exercising at least 4 days/week) provided. It is likely that in some while controlling costs? as the economic consequences of cases, choice (of hospitals, physi- RY: The most promising changes their behavior are generally not their cians and treatments) will be nar- promote increased coordination of BA: Yes, particularly with the laser responsibility. A key component of rowed. The fact that most of us are care and integration of providers focus of Dr. Don Berwick at the Cen- the ACA adds yet another layer of covered by a “third party” has dis- and hospitals. ter for Medicare and Medicaid Ser- moral hazard. Here, the patient’s tanced us from many of the deci- vices. The heightened attention by provider assumes all of the economic sions that we will now become more RS: Health care reform will increasing- all in the health care industry is risk if the patient chooses not to fol- involved in. ly focus providers on outcomes at a leading to greatly improved out- low their care plan or opts to seek Whether it is the country or us lower cost. This will require substan- comes in patient safety and quality treatment in multiple other locations personally making these decisions, it tially more collaborative work and of care while continually becoming – all unbeknownst to the provider. will be very difficult. What can we alignment of various parts of the more efficient. afford? What treatment presents the health care delivery system to improve RS: I do not believe that the health most value? Where do we have the care coordination and improve value RY: To a great extent, the progress care reform can or will guarantee best clinical outcomes? Answering for those that pay for it. in improving safety and quality of patients freedom of choice in their these questions will cause heated care over the past several years has local communities, and I do believe debate – as they should. How will these changes affect busi- also been a result of more public one of the unintended consequences nesses? What role can business lead- reporting and transparency. We of health care reform is to accelerate RY: Everyone you talk to believes we ers play to positively adapt to reform? think there will be continued less choice for available access. need to reform health care, as long as it improvements, particularly with does not impact them. The change in BZ: First and foremost, it is impor- the improvements in information Why do you feel the very subject of our system is necessary, and has been tant that as employers, we under- technology, and the movement health care reform seems to spur such inevitable for many years. Although stand the massive restructure that is towards paying for value versus heated debate? Why isn’t everybody massive change has been proposed, I occurring for health care – and what volume. together on it? believe it will come more incremental- will be required of us in the future. ly when all is said and done. While many of the details are still Does health care reform effectively BA: Politics and profits. One of the to be determined, it is clear that key help to guarantee patients a choice of more unique and costly aspects of What about hospitals’ day to day elements of health care reform will doctors and health plans, while still the US health care system is that operational functions? Will they be include (1) personal responsibility investing in prevention and wellness? profit motive drives much of the sys- affected by health care reform in any for managing one’s health, and (2) tem. Political contributions by vari- noticeable way over the coming managed and careful use of the RY: Many aspects of health care ous factions of the system contribute months and years? health care system. reform, particularly insurance to drive regulation and policy. More- This is a great time to begin to reform, have not yet been worked over, profit opportunity exists at RY: We are in a mode of listening think about work programs for out. Having said this, there appear to every level of the system and con- and learning as much as we can dur- employee wellness and financial be aspects of the reform that may tributes to driving up the costs of the ing the regulation development incentives for staying healthy. Many provide better access and choice of US system. While pockets of profi- phase of the reform. Again, we think hospitals have these programs in providers, such as the creation of the teering are present in the health care that the most promising aspects of place, and will work with are busi- Health Insurance Exchanges, which systems of other nations, it is not the reform will be to incentivize
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MAY 30, 2011 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL 27
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28 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL MAY 30, 2011
IMPROVING CARE, IMPROVING COMMUNITIES
Continued from page 26 regulated, possible single payer sys- tem due to the likely failure of per- coordination of care and the integra- ‘Everyone you ‘The current spective non-incentivized reform. tion of providers. talk to believes health care How would you describe what your BA: Between reduced government we need to reform law is a organization is doing to prepare for the reimbursement (in part to fund the implementation of health care reform? ACA), chronic state budget pressures reform health vast overreach leading to reduced payments from RY: Our hospital, working with our MediCal, coupled with understand- care, as long as in prescribing medical community, has had a coordi- able pressure from the private sector it does not solutions.’ nation of care delivery strategy for of reimbursement – payments to over 30 years. We believe we have health care providers continue to be impact them.’ ROGER SEAVER most of the skills, systems, resources, ratcheted down. RICHARD YOCHUM and relationships necessary to adapt to Also, increasing government regu- the changes we see coming forward. lations are impacting hospitals’ abili- ty to continue providing the range BZ: We believe that this work (1) of services to their communities. won’t seek out the best knowledge Secondly, there is a great deal of starts with understanding the health Clearly, some free-standing commu- to help them succeed. I am confi- “over” treatment provided in order to needs of our community, (2) cannot nity hospitals will not survive the dent they will. Of course, when a decrease the risk of malpractice. This be carried out by the hospital alone payment reductions that are includ- major part of their business or is duplicative and expensive. Malprac- – it will take collaboration with ed in the ACA. employment costs are involved with tice reform will be critical to achieving other providers – hospitals, physi- evolutionary or revolutionary the goals of health care reform. cians and community services, and RS: Hospital operations will likely changes, these resources require (3) must involve each individual, change to become much more inte- more time and effort to make sure RS: The current health care reform because we each have a responsibili- grated with pre-hospital primary and your approach to change is a fit for law is a vast overreach in prescribing ty to manage our health. Using these specialty care providers and with your business. solutions and unfortunately the law beliefs, we are working with our post hospital care management and does not significantly advance the partners to redesign the health ser- post-acute care providers. How should the law be changed to most likely predictor of change, vices on the Eastside. make securing its goals easier and which would be a change to further We also believe that it is important To better understand and navigate the more cost effective? align incentives for providers and to have culturally competent nurses health care reform process, what would payers to achieve breakthrough and physicians, so we are heavily you say is the most reliable source of infor- BZ: First and foremost, collaboration reform. In short, the reform law involved in educating nurses and mation for businesses? will be needed to successfully imple- emphasizes regulatory minor incen- physicians who want to serve as part ment health care reform. In light of tives, significant penalties and little of a community health organization. RS: All businesses have their trusted this, it is critical that antitrust con- or no alignment. At worst, the business advisors. It is unrealistic to straints be addressed to promote the reform law moves the system further Thanks to each of the expert panelists think that their trusted advisors work that needs to be done. down the road to an even higher for their time and insight.
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MAY 30, 2011 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL 29
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30 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL MAY 30, 2011
IMPROVING CARE, IMPROVING COMMUNITIES Government Underpayments and Regulations Combine with Medical Advances to Drive Rising Hospital Costs
By C. DUANE DAUNER
HE spotlight is shining on health care costs. It’s an issue that generates newspaper headlines and debate among business When Congress created the Tleaders, policymakers and con- sumers. But for all of the arguments Medicare and Medicaid pro- – and accusations – that emanate from this discussion, the facts are grams in 1965, the federal more complex than the dialogue government covered the cost often reflects. California’s community hospitals of delivering services to the are on the front-lines of our health care system. Hospitals deliver care to enrollees of both programs. every patient in need – anytime of Since that time, however, state the day or night – whether or not the person has health insurance or and federal actions have been the ability to pay. Hospital charges were established implemented, resulting in sig- more than fifty years ago to cover nificant payment shortfalls, the cost of patient care services, with an additional amount allocat- especially in the Medi-Cal ed to cover charity care, bad debt and future capital needs. When (Medicaid) program. Congress created the Medicare and Medicaid programs in 1965, the fed- eral government covered the cost of delivering services to the enrollees of both programs. Since that time, however, state and federal actions have been implemented, resulting in significant payment shortfalls, especially in the Medi-Cal (Medic- aid) program. Medi-Cal reimburses hospitals only 78 percent of the cost California’s rank among all states to provide hospital care to the Medi- Amount Medi-Cal presently reimburses hospitals of the cost 49 % in Medicaid payments to health Cal beneficiaries. California ranks 78to provide hospital care to Medi-Cal beneficiaries. care providers. 49th among all states (next to the lowest) in Medicaid payments to health care providers. Over the years, the basis upon tals and other health care providers medical education, special services 43 percent in 1980 to 32 percent in which hospital charges are estab- must shift these unreimbursed costs such as trauma care and research gen- 2010. Growth in spending in hospi- lished has evolved. Today, hospital to the private sector by negotiating erally are paid for by private insur- tals is less than the rise in costs for prices are based on many factors – higher payments from private insur- ance and self-insured individuals. pharmaceuticals, home health and including governmental payment ers and individuals who pay their Compensation to labor is the other services. shortfalls, discounted health plan bills directly. This “cost-shifting” is largest factor affecting hospital costs. Many factors affect the consump- reimbursements, charity care, bad not a new phenomenon. It has exist- According to a recent report by the tion of health care services, which in debt, county indigent patients, new ed for decades as Medi-Cal and American Hospital Association turn lead to increased costs. The technologies, labor costs and unfund- Medicare have repeatedly reduced (AHA), nearly 60 cents of every dol- solution to this perplexing dilemma ed state and federal mandates. payments to hospitals and other lar spent by hospitals goes to pay for lies in collaborative efforts to bring In 2010, California hospitals pro- providers. It is what former Governor wages and benefits to individuals together key stakeholders and vided $12.5 billion in uncompensat- Arnold Schwarzenegger termed the who directly care for patients or sup- patients in innovative ways to ed care. Of that amount, more than “hidden tax” and it affects every Cal- port their care. In California, these improve the availability and quality $3.6 billion was the result of ifornian who pays his/her bill direct- figures are higher in part because of of care in a safe, cost-effective man- Medicare payment shortfalls and ly or who has private health insur- the state’s rigid nurse-to-patient ratio ner; improve healthy behavior in all $4.8 billion was attributable to ance. This hidden tax costs every law – the only such universal man- individuals; and align incentives so underpayments from the Medi-Cal California family more than $1,200 date in the nation. that every person, whether he/she program. These inadequate govern- per year in extra health insurance Other factors that drive up the uses or provides health care, has a mental payments are set by the fed- premiums or in direct payments by cost of hospital care include an stake in changing the demand and eral and state governments. These the self-insured who have the ability aging population, obesity, chronic supply sides of health care. payment levels are expected to get to pay their bills. conditions and behavior-induced ill- This challenge is not for the faint even worse in the coming years as California hospitals also face chal- nesses. The acuity of hospital of heart. It requires visionary and the federal government continues to lenges posed by unfunded state man- patients is rising as a result of these practical solutions, alignment of ratchet back hospital payments in dates such as the state’s earthquake forces, thereby putting more pres- financial and clinical incentives, order to pay for health care reform compliance standards – estimated by sure on the cost side of the health commitment, collaboration, coordi- and the state grapples with its own the independent RAND Corporation care equation. nation and accountability. budget deficits. to cost as much as $110 billion. The Despite all of these cost drivers, When governmental programs fail rising costs for personnel, health hospital care as a percent of total C. Duane Dauner is President/CEO of to pay hospitals for the actual cost of information technology, medical spending on health care services and the California Hospital Association. caring for their beneficiaries, hospi- equipment, prescription medications, supplies has actually declined from 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
MAY 30, 2011 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL 31
The Los Angeles Chapter of The Leukemia & Lymphoma Society proudly announces the leadership team for its 2011 Light The Night Campaign
John Sotoodeh Michael M. Schneider 2011 Honorary Walk Chair 2011 Corporate Walk Chair Executive Vice President, Vice President, Customer Operations Regional President Southern California Gas Company Los Angeles Metro Community Bank Wells Fargo
2011 Light The Night – Hollywood Executive Committee Preet Chaudhary, MD PhD, USC Norris Cancer Center Patricia Flynn,TheMaximaGroup,LLC Valerie Lertyaovarit, Southern California Gas Company Julie Leucht, KPMG LLP Kathryn Meade, PriceWaterhouseCoopers LLP Kimberly Miller, Metzger Law Group Kathryn West, Amgen Oncology Jill Wicke, Metropolitan Water District of Southern California
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SAVE Saturday, October 1st – Light The Night Hollywood at Sunset-Gower Studios PRESENTING THE Saturday, October 22nd – Light The Night Woodland Hills at Warner Center Park SPONSOR DATES Saturday, October 29th – Light The Night Santa Clarita at Bridgeport Park
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Providence Holy Cross Medical Center Providence Saint Joseph Medical Center Providence Tarzana Medical Center 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
32 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL MAY 30, 2011
IMPROVING CARE, IMPROVING COMMUNITIES Health Care Workforce Shortages Pose Access-to-Care Challenges for Patients and Hospitals
UCH has been written about the predicted shortage of Total Employees Eligible for Retirement M primary care physicians and nursing professionals within the by Occupation and Eligibility Period (Age 62)* next few years. Just as critical, but No. Eligible for Retirement less well-known, is the shortage of allied health professionals – those Occupation 2010 2013 2015 Total clinicians who work both at the bed- side and behind-the-scenes to pro- Clinical Lab Scientist 217 189 438 844 vide laboratory, imaging and other Respiratory Therapist 92 99 280 471 critical services needed to diagnose and treat patients. Pharmacist 76 80 260 416 While California’s community Radiological Technologist 41 51 205 297 hospitals today employ more than 440,000 high skilled and trained Pharmacy Technician 21 27 140 188 health care workers, a recent survey Physical Therapist 19 15 139 173 of California hospitals, analyzed by researchers at the University of Cali- Total Expected Retirements 466 461 1462 2389 fornia at San Francisco’s Center for the Health Professions, indicates *According to 2010 CHA Allied Health Workforce Survey alarming rates of retirements expect- 125 California Hospitals Responding ed over the next five years. Accord- ing to the report, a large number of retirements of health care workers This expected workforce shortage beginning in 2014. trying to solve,” said Cathy Martin, will lead to serious shortages of clini- comes at the same time as the Baby One might be tempted to assume director of the California Hospital cal laboratory scientists, respiratory Boom generation enters their senior – given the current high levels of Association’s (CHA) Healthcare therapists, physical therapists, radio- years requiring increased health care unemployment driven by the reces- Workforce Coalition. “Nationwide, logical technologists and a host of and as the nation prepares for funda- sion – that filling these well-paying the health sector is one of the very specially trained imaging profession- mental changes in the health care jobs would be easy. The unfortunate few sectors adding jobs in today’s als, including ultrasound and MRI delivery system driven by the imple- reality, however, is not so simple. economic climate. However, Cali- technologists. mentation of health care reform “It’s a complex equation we’re fornia hospitals have been particu-
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MAY 30, 2011 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL 33
IMPROVING CARE, IMPROVING COMMUNITIES
larly hard hit with a combination of factors including the recession and payment cuts from Medicare and Medi-Cal that have forced them to engage in short-term cost-cutting ‘California hospitals have been strategies. Those strategies include particularly hard hit with a combination workforce reductions or consolida- tions. While at the same time, in of factors that have forced them to some hospitals, especially those in California’s rural communities, engage in short-term cost-cutting positions are available but vacancies strategies. Those strategies include remain due to lack of professionals to fill them,” she added. workforce reductions or consolidations.’ Martin adds that health care jobs CATHY MARTIN, CHA Healthcare are expected to be “an economic Workforce Coalition engine for California in the future,” with demand for services driven by our growing and aging population. On the flip side, however, is the cuts to education budgets by the makers and educational leaders to: 2007 for the purpose of developing reality that many professionals cur- state and other funders are creating • Ensure health science curriculum is strategic solutions to the shortage of rently making up our health care financial gaps that can’t be filled by more closely aligned with the needs non-nursing allied health profes- workforce are Baby Boomers – the hospitals alone,” said Ryan. “Califor- of health care employers; sionals. The coalition includes a very people who will be retiring in nia is at a crossroads in determining • Standardize prerequisite courses broad cross-section of stake holders the next few years.” whether it will make the invest- across all educational institutions so including the University of Califor- According to Patrice Ryan, vice ments necessary to educate and train students transferring between col- nia, California State University, Cali- president of Human Resources at its own residents to fill these jobs,” leges are not required to retake fornia Community Colleges Chan- Cottage Health System in Santa Bar- she added. courses, and; cellor’s Office, California Labor and bara, and Chair of the CHA Work- The looming shortages in the • Address barriers to clinical training Workforce Development Agency, force Committee, it is anticipated future are bringing a new sense of such as streamlining the applica- California Health Workforce that the fastest growing area of urgency to all stakeholders to devel- tions process for becoming an Alliance, UC San Francisco Center health care employment will be in op innovative solutions that will approved clinical laboratory training for the Health Professions, California allied health, with a projected 63 improve access to education and site and replacing paper applications Institute for Nursing and Health percent increase between 2010 and training for these professions. Fund- forms with online documents. Care, Office of Statewide Health 2030. “Hospitals across the state are ing for education should be a top Planning and Development, and the investing millions of dollars to help priority. Other solutions for closing CHA formed the statewide California Primary Care Association. educate health professionals, but the gap require California’s policy- Healthcare Workforce Coalition in
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34 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL MAY 30, 2011
IMPROVING CARE, IMPROVING COMMUNITIES
Spending on hospital care has lagged growth in health insurance premiums and pharmaceuticals The Cost for Caring: Cumulative Percentage Change in National Spending for Hospital Services, Health Insurance Premiums1 and Pharmaceuticals, 2000-2009 Demand for Care and 120% Sources: Centers for Medicare & Medicaid Services, Office of the Hospital Care Actuary, National Health 100 Medical Advances Drive Insurance Premiums Statistics Group, (2011). National Health Expenditures Aggregate, 80 Pharmaceuticals Per Capita Amounts, Percent Spending on Hospital Care Distribution, and Average Annual 60 Percent Growth, by Source of Funds: Selected Calendar Years HE costs to provide health care TrendWatch Report titled, “The Cost of 1960-2009, and The Kaiser 40 Family Foundation and Health are rising at the same time Caring: Drivers of Spending on Hospital Research & Educational Trust, Tadvances in medicine, an aging Care. According to the report, issues 20 (2009). Employer Health Briefing population and rising burden of chron- and trends affecting rising health care 2009 Annual Survey, Washtington, DC. ic disease are increasing demand for costs also include investments in new 0 1 Average annual premiums for care, according to the American Hospi- clinical technology, adoption of elec- ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 family coverage. tal Association (AHA) and their new tronic health records, the growing lev- els of uncompensated care for the unin- sured and underinsured, and the health care’s workforce shortage. While hospitals grapple with these complex and overlapping cost factors, they are working to make health care more affordable and provide quality patient care. Medical advances such as new proce- dures, devices, imaging technology and pharmaceuticals have enabled people to live longer. These advances are respon- sible for 70 percent of the improvement in survival rates for heart attack patients and two-thirds of the reduction in mor-
The number of people over age 65 will more than double by the year 2050. As people age they OUR AWARD: 50 TOP CARDIOVASCULAR HOSPITAL have more health problems, and YOUR REWARD: EXTRAORDINARY CARE consequently, require more While earning national recognition for our Stead Heart and Vascular Center is notable, health care our true reward is the difference we make in the lives we touch. Offering comprehensive services. heart, vascular and stroke care, our winning cardiovascular team is dedicated to excellence and preserving our patients health. Perhaps that’s why physicians and patients alike rely on us as a trusted source in the heart of your community. tality for those suffering from cancer, according to AHA. Less invasive surgery For a referral to one of our top cardiologists or cardiovascular surgeons, call 1-909-865-9858 means patients can be discharged and or visit to learn more about our award-winning care. recover faster, missing less time from www.pvhmc.org work. These advances lead to higher standards of care and increased utiliza- tion, which can drive up costs. While technological advances are leading to better patient outcomes, demographic changes are leading to increased use of all health care services, including hospital services. The number of people over age 65 will more than double by the year 2050. As people age they have more health problems, and consequently, require more health care services. Nearly half of all Medicare beneficiaries have three or more chron- ic conditions that are very expensive to 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
MAY 30, 2011 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL 35
IMPROVING CARE, IMPROVING COMMUNITIES
Advances in medicine contribute to longer lives. treat. The most common of these are everyone, hospitals are seeking new U.S. Life Expectancy at Birth, 1940-2007 hyper-tension, arthritis, heart condi- approaches to reduce costs without 77.9 tions, cognitive or mental impairments, compromising care. Some of these 76.8 and diabetes. opportunities include forming partner- 75.4 Also driving up costs is the highly ships among hospitals, physicians and trained and highly skilled health care other care providers to better coordinate 73.7 workforce. About 60 cents of every dol- care; implementing performance lar spent by a hospital goes to pay for improvement and other “best practice” 70.8 69.7 wages and benefits of health care work- initiatives, and developing new and Ages in Years ers who directly care for patients before, more coordinated delivery models to 68.2 during and after their hospital stay. improve care for patients as they transi- Finally, hospitals are absorbing the tion between care settings. cost burden for caring for uninsured 62.9 and underinsured. As the nation’s For additional information or to see the full uninsured population continues to AHA TrendWatch Report, please go to 1940 1950 1960 1970 1980 1990 2000 2007 Source: National Center for Health Statistics, (2010). Deaths: Final Data for 1007. grow, hospitals are caring for more www.AHA.org. Hyattsville, MD. Access at www.cdc.gov/NCHS/data/nvsr58/nvsr58_19pdf. patients who are unable to pay for the care they receive. Hospitals are there- fore, providing more financial assis- tance and accruing more bad debt. At the same time, Medicaid (Medi-Cal in California) enrollment is increasing, yet payments from this government program to providers fall well short of hospitals’ costs. “Understanding these cost drivers is critical to developing strategies to con- tain costs,” said AHA President and CEO Our exceptional community Rich Umbdenstock. “With need for hos- pital services on the rise, now is not the time to cut health funding for vital deserves exceptional health care.
‘With need for hospital services on the rise, now
is not the time to LOS ANGELES, CA cut health funding 2010-2011 Ranked for vital health among the best care programs. New ICU in Los Angeles* Hospitals will continue to be Accredited Breast Imaging part of the national Community Cardiac Center of conversation Cancer Program Cath Lab Excellence on changes.’ RICH UMBDENSTOCK, With new recognition and enhanced AHA President & CEO services, Henry Mayo delivers.
For the past 35 years, Henry Mayo has grown with Santa Clarita to provide the exceptional health care our city deserves. health care programs. Hospitals have been, and will continue to be, part of What is exceptional? Acclaimed services like the Sheila R. Veloz the national conversation on changes Breast Imaging Center and an Advanced Primary Stroke Center. that will reduce costs and improve care 24/7 A Level II Trauma Center, available 24/7/365. Expansions such for all patients,” he added. Level II as our cardiac cath lab, all-new ICU, and trauma helipad. While health care costs continue to Trauma Center rise, hospital care is shrinking as a share This is just the beginning. A new NICU and up to 120 beds of total health care spending, according of additional inpatient capacity are a few of the significant to AHA’s TrendWatch Report. Hospital enhancements coming. We’re fully dedicated to providing care costs accounted for 33 percent of exceptional care, as Santa Clarita continues to grow. total health care spending in 2009, Advanced compared to 43 percent in 1980, as Primary health spending continued to rise. It Stroke Center remains the largest single category of health care spending, illustrating hospi- tals’ central role in caring for the most acutely ill and injured patients. Despite the myriad of factors driving HENRYMAYO.COM | 661 253 8000 health care spending and costs for
*High Performing in Geriatrics, Neurology & Neurosurgery, Orthopedics, and Pulmonology 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
36 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL MAY 30, 2011
IMPROVING CARE, IMPROVING COMMUNITIES Numbers
4Every seconds someone enters a California emergency room seeking treatment.
people received life-saving care in a California 11 million ER last year.
babies were born in community More460,000 than hospitals last year. California hospitals provided $12 billion in uncompensated care to patients in 2009. More than $8 billion of those losses were due to critically low reimbursement rates from California’s Medi-Cal program and the federal Medicare program. Charity Care 500,000 Medicare Medi-Cal & Bad Debt high-skilled workers are employed by California $0 hospitals, with total annual compensation of Total uncompensated cost of $35 billion providing care Each hospital job creates 1.2 additional jobs, for total wages and salaries of $12 $3.6 billion billion $3.9 in 2009 billion } $4.5 $66 billion billion
California hospitals provided nearly
hospitals and $1billion emergency of community benefit services in 2009. Services included preventive More than rooms in care programs for children, seniors and the homeless; free health California have and dental clinics for the uninsured; and community health screenings closed in the like mammography and diabetes, among others. past 10 years.
70Figures from California Hospital Association 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
MAY 30, 2011 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL 37 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
38 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL MAY 30, 2011
IMPROVING CARE, IMPROVING COMMUNITIES Emergency Room Visits at an All Time High – Hospitals Innovate to Ease Crowding
By MARCUS GODFREY, RN private practice physicians will not accept the substantially low reim- F you’ve been to a hospital bursements rates to treat these emergency room (ER) lately, patients. Routine medical condi- I you may have seen a crowded tions that we care for from all these waiting room or had to wait to see patient groups could have been an ER physician. That’s because more efficiently and more cost- there have been a record number of effectively treated by primary care people visiting California’s hospital physicians and other lower-cost emergency rooms. care settings like clinics. In 2009, there were more than Hospitals also feel the pain of 12 million visits to California’s the underfunded Medi-Cal pro- community hospital ERs. That’s an gram. California currently ranks increase of 74 percent since the 49th out of 50 states in the level beginning of the decade. During of reimbursements to hospitals. that same time period, more than Last year, hospitals lost $4.6 bil- 70 hospitals and ERs closed. With lion in under-payments from more patients and less emergency Medi-Cal. This financial burden rooms available, California’s ERs threatens hospitals’ ability to pro- are becoming increasingly over- vide critical ER and other services crowded. ERs are now seeing more to their communities. than 32,000 patients every day or nearly 1,400 patients every hour. As California’s population contin- ues to grow and age, the situation is expected to get worse before it gets better. Emergency rooms are open 24 hours a day, 7 days a week to care for everyone who enters their doors. As an emergency room nurse, I can tell you firsthand that we’re on the front lines every day – caring for you, your family, your friends, for the seriously ill and injured, for the uninsured, and for the millions of Medi-Cal patients who can’t find a primary care physician to see them. Hospitals emergency rooms are truly the ‘safety net’ provider for the com- munities they serve, and they are 12 facing increasing challenges. million Due to our nation’s slow eco- nomic recovery, jobs and employer- Number of visits to California based insurance coverage continues community hospital to decline. Government-sponsored emergency rooms in 2009, health care programs are also cut- a 74% increase since the ting back due to budget shortfalls, beginning of the decade. including counties that are reduc- ing mental health services and the number of available beds for psy- Lastly, California has a dwin- chiatric patients. As these and other dling number of available beds for cutbacks in the health care system all the patients coming through the occur, California’s population con- doors. In my Emergency Depart- tinues to grow and age. In short, ment, we often say that the over- we’re looking at the perfect storm crowding issue is not a numbers of more patients, requiring more problem but a real estate problem. services and fewer hospital and Approximately one-third of the emergency room beds. beds that are available in an average California now has 7 million ER are occupied by patients await- uninsured people who regularly use ing inpatient hospital beds or by expensive ER services because they mental health patients who no have no regular physician to care longer have services provided in for them. In addition, patients with their counties. These patients often insurance are using ER services for stay in the ER for over 24 hours the convenience of the 24/7 avail- until another hospital or psychi- ability of services especially after atric bed becomes available. For hours when doctor’s offices are example, my 34-bed ER shrinks to closed. And finally, the 8 million only 24 available beds while the people covered by Medi-Cal – chil- 200 patients we treat every day con- dren, low income and the disabled tinue to arrive. – are also adding to the overcrowd- Today, the average wait time in a ing problems. Medi-Cal patients are California hospital ER is just over the most frequent users of emer- four hours. Using innovative design gency room services because most and operational changes, hospitals 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
MAY 30, 2011 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL 39
and ER professionals are working reduces the wait time for patients to EXPERIENCE together to more effectively man- see a physician and be directed to age the the flow of patients ERs and the appropriate care. Still other hos- insure the highest quality patient pitals are authorizing nurses at the the excellence care for everyone. front of the ER to order lab and X- . For example, hospitals that have ray tests, as well as treat pain, all in recently renovated or rebuilt hospi- an effort to reduce the time the tal buildings to meet new earth- patient spends waiting. quake safety standards are increas- It’s no secret that wait times in ing the number of ER beds whenev- emergency rooms are challenging er possible and designing “fast- for everyone, but emergency track” systems. A fast-track system room nurses, other providers and allows patients with non-life threat- hospitals all over California are ening conditions to be cared for in implementing a variety of new a separate section of the Emergency and innovative practices to reduce Department designed to quickly wait times for their patients and care for minor emergencies such as their communities. sprains, lacerations, fevers, etc. Emergency room nurses and Other hospitals are reducing wait physicians see patients at their times and increasing patient satis- most vulnerable, worst moments. It faction by streamlining their patient is our mission to provide the high- assessment and admitting processes. est quality care and comfort in This includes a Rapid Medical those times. Examination process which has a physician stationed at the very front Marcus Godfrey, RN, is President-Elect of the ER to quickly assess and then of the California State Council, When one golden hour can make the difference between life and death, direct an incoming patient. This Emergency Nurses Association. nothing matters more than access to expert care. As the only trauma center in the San Gabriel Valley, Huntington Hospital treats victims of automobile accidents, head trauma and life-threatening injuries every single day. When the situation is critical — when excellence matters most — accept nothing The Uncertainty and Benefits less than Huntington Hospital. of Health Care Reform for California Businesses Experience. Excellence. www.huntingtonhospital.com Call (800) 903-9233 to find a Huntington Hospital physician. EALTH care coverage is one of Care Act (ACA) – is to change the the most expensive benefits way care is delivered and paid for. Hpaid for by employers. The law was designed to make it Whether you’re a small start-up, easier for more people to obtain, large multi-national or something in pay for and keep health care cover- between, you’re well aware of the age through a variety of govern- affects that health care insurance ment, individual, and employer- We costs have on your business, employ- based mechanisms. What is not ee retention and productivity. clear about the ACA is the impact specialize in you! Nationally, the United States the law will actually have on the spends an estimated $2 trillion rising cost of care. Finally... a comprehensive facility dedicated to the annually on health care expenses, Some elements of health care health care needs of women in the prime of their lives. more than any other industrialized reform – such as incentives for country in the world. According to improved quality and preventive Whole-woman care for the whole you—conveniently a report by the Council on Foreign care – may help stem the tide of ris- located all in one place, under one roof. World class Relations, many U.S. businesses are ing costs. On the other hand, less competitive globally because of increased utilization, resulting from care from specialists who specialize in you. ballooning health care costs. In the elimination of lifetime benefit addition, the annual Milliman Med- limits and expanded access to care, ical Index (MMI) reported that the may continue to drive costs annual cost of health care coverage upward. So what does all this mean for a typical family of four in a pre- for employers in California? ferred provider plan (PPO) rose 7.3 “Hospitals throughout California percent in the past year, from are both providers of health care COMING FALL 2011 $18,074 in 2010 to $19,393 in 2011. services as well as major employers No one can deny that our current and we uniquely see the potential health care system is getting more challenges and opportunities of costly, more fragmented and is health reform,” said Methodist Hos- unsustainable. Premium increases pital of Southern California’s Presi- are at an all time high which is dent Dennis Lee. “Reforming severely impacting both employer- health care is going to create peri- sponsored and individual coverage. ods of uncertainty and fluctuation, In addition, the severe economic but I encourage large and small downturn also has dramatically employers alike to not let the affected California’s health care sys- uncertainty paralyze them. Employ- tem. According to UCLA’s Center for ers can look to their community Health Policy Research, nearly two hospital as a trusted partner in get- million Californians lost their health ting educated on what the impacts insurance in 2008 and 2009 because and opportunities are,” said Lee. of the recession, bringing the state’s In 2010, insurance market reforms It’s happening downtown. total number of uninsured to more and coverage provisions for small 1513 South Grand Ave. Suite 400 Los Angeles, CA 90015 (213) 742.5784 than 8 million people. businesses were enacted, and over The long-term goal of federal health care reform – the Affordable Continued on page 40 www.lacwh.org 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
40 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL MAY 30, 2011
IMPROVING CARE, IMPROVING COMMUNITIES
Continued from page 39
the course of the next three years a series of coverage expansion and finan- ‘The key is employer education and cial changes will be rolled out. engagement. Many communities will Two provisions in the law can ben- efit small businesses. The first is a tax be able to take advantage of educa- credit to help small businesses cover tional opportunities hosted by their the costs of health care for their employees. The second is the health community hospital so employers and benefit exchange which is designed to give small businesses and individuals employees can make intelligent choic- easy access to affordable plans. Cali- es from their health coverage options.’ fornia’s insurance exchange is expect- ed to be up and running in 2014. DENNIS LEE, President, Under the law, small business Methodist Hospital of Southern California employers qualify for the tax credits if they have less than 25 full-time equiva- lent employees with average annual wages less than $50,000. They must also not yet eligible for Medicare. This pro- While community hospitals devel- take advantage of educational oppor- cover 50 percent or more of employee gram is a bridge to 2014, when early op and implement best practices to tunities hosted by their community premiums. According to the U.S. Small retirees will be able to purchase improve the quality and efficiency of hospital so employers and employees Business Administration, there are affordable coverage in the new health care, health reform opens the door for can make intelligent choices from about 500,000 small businesses in the insurance exchanges. purchasers – California’s employers their health coverage options,” he state eligible for the tax credits. By 2014, employers that have 50 and workforce – to drive market continued. For large employers, the law or more full time workers and do not changes that will create a high-per- Federal health care reform was a cat- intends a smooth transition for those provide affordable health coverage forming health care system, according alyst for policymakers, businesses, already providing health coverage by must pay an assessment based on the to Dennis Lee. health care providers and other stake- exempting employer-based coverage number of full time workers they “The key is employer education holders to start addressing an unsus- that was in effect on March 23, 2010 employ. The law also creates an and engagement,” said Lee. “Employ- tainable, costly health care system. from certain provisions in the Afford- option for employees who spend ers can implement health and well- Creating real reform in the future how- able Care Act, so current coverage can between 8 percent and 9.8 percent of ness programs that reward employees ever, means creating a system that sup- continue. It creates the Early Retiree their income on premiums to use for taking action to maintain and ports existing employer-based cover- Reinsurance program, which provides those contributions toward their cov- improve their health and they can age, provides adequate access to health financial assistance to continue erage as a voucher in the health choose health plans that reward care services by covering more Califor- employer- based health insurance for exchanges, at no additional cost to providers for better health outcomes. nians, and reduces costs for everyone. early retirees ages 55 to 64 that are their employer. Many communities will be able to
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MAY 30, 2011 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL 41
IMPROVING CARE, IMPROVING COMMUNITIES
Post-Acute Care Services in California
ALIFORNIA’S community hospitals provide lifesaving care for mil- Clions of patients each year. Fol- lowing an inpatient stay for an injury As California’s population continues or illness, many patients require contin- to increase and age, the ued medical care, either at home or in a specialized facility. These post-acute demand for more health care care services play an essential role in the individual’s successful recovery and services, including post-acute- return to health and home. care services, continues to grow. A majority of California’s more than 400 acute care hospitals offer at At the same time, health care least one post-acute care service or program. Post-acute care includes providers are facing increased institutional-based programs, such as financial pressures. inpatient rehabilitation facilities, skilled-nursing facilities (SNFs) and long-term-care hospitals. It also includes home and community-based cial pressures, and are challenged by much so that many providers choose of dollars in unreimbursed costs as services, such as home health agencies outdated reimbursement and regula- not to care for Medi-Cal patients or to they continue to care for patients who and outpatient therapeutic services. tory policies. California’s post-acute limit the number they can accommo- may no longer need to be in their Finally, post-acute care includes high- medical care system is complex and date. For example, in some regions, facilities. Even more importantly, ly specialized services, such as pallia- fragmented. Patient access is limited, Medi-Cal beneficiaries have no access individual patients may be prevented tive care, hospital case management and outcomes are compromised. to home health services or adequate from returning to home and commu- and discharge planning. outpatient care. Availability of transi- nity by our outdated and inadequate Medi-Cal tional and rehabilitative services is payment system. The Issue At present, Medi-Cal reimburse- also limited as many SNFs do not pro- As California’s population contin- ment is inadequate to provide opti- vide a full range of medical and thera- Medicare ues to increase and age, the demand mal and cost-effective post-acute care. peutic care. As a result, individuals The federal Medicare for seniors is for more health care services, includ- Authorization and payment processes who might otherwise be able to return also equally complicated and cumber- ing post-acute care services, continues are cumbersome and lengthy, and home remain in inpatient settings at some. Each level of post-acute care has to grow. At the same time, health care often lead to delays in patient access. greater cost. providers are facing increased finan- Reimbursement levels are poor, so California’s hospitals incur millions Continued on page 42
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42 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL MAY 30, 2011
IMPROVING CARE, IMPROVING COMMUNITIES
Continued from page 41 has proposed far-reaching reforms to to address these difficult chal- Recommendations the post-acute care reimbursement lenges. Hospitals have established The California Hospital Association and delivery system. close working relationships with (CHA) recommends developing pay- specific and unique admission poli- Many of CMS’ initiatives hold care providers at all levels of post- ment and regulatory policies that pro- cies, program regulations and reim- promise for improving care transi- acute care, both within their own mote care delivery across a full contin- burse- ment mechanisms. While tions and patient outcome. Howev- organization and in partnership uum of care, and provide adequate Medicare beneficiaries generally er, if not implemented carefully, with other care providers. They patient access to post-acute care ser- enjoy access to a wide range of post- proposed changes to reimburse- work closely with community- vices, including transitional and reha- acute care services, the fragmentation ment and policy may result in based care organizations to identify bilitative services. CHA is committed and variety of providers leads to con- decreased access to adequate post- and address community needs. to the long-term goal of creating “an fusion and competition, and does acute care services and compromis- Many are also developing special- optimally healthy society” in which not promote coordination of care es in patient outcomes. ized care transition programs or every Californian has equitable access across settings. In the context of California’s 430 hospitals and care coordination programs to pro- to safe, affordable, high-quality, med- health care reform, the Centers for health systems are already working to vide improved follow-up and ically necessary physical and mental Medicare & Medicaid Services (CMS) develop creative practices patient support. health care.
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MAY 30, 2011 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL 43
IMPROVING CARE, IMPROVING COMMUNITIES
Is California’s New Medicaid Waiver a Bridge to Reform?
By JIM LOTT
AST November, the director of the state Department of Health County budgets have been stressed LCare Services was “pleased to announce” that the federal govern- for several years now, and many ment had approved a new five-year Medicaid Section 1115 waiver for Cal- support the medical care needs of our ifornia. In his announcement letter, poor and vulnerable residents with he summarized the $10 billion plan, referred to as the “California Bridge to overpromised and underfunded Reform,” and proclaimed that health programs. These counties will be hard- care coverage would be expanded “ to as many as 500,000 low-income unin- pressed not to use their portions of sured residents” under the new pro- gram. The other provisions are the Waiver funds to simply maintain designed to help counties prepare for their existing (over) commitments. the changes in 2014 brought about by the federal health care reform laws enacted last year and to move the high-cost, high-service-consuming seniors and persons with disabilities poor and vulnerable residents with tionally, with some exceptions, Califor- be covered by this new funding source from the state’s fee-for-service pro- overpromised and underfunded pro- nia’s counties are shying away from by many of the counties closely gram to the more cost-efficient grams. These counties will be hard- extending coverage to the uninsured approximate the number of uninsured regional managed care programs. pressed not to use their portions of with individual annual incomes currently supported by them. Getting this waiver and the largess the Waiver funds to simply maintain between 134 and 200 percent of the This all leads me to conclude that that comes with it is welcome relief their existing (over) commitments. federal poverty level (or $14,400 and most of our poor and uninsured resi- for our deficit-plagued state and cash The “as many as 500,000 low- $21,600). Most are focusing this new dents won’t be allowed onto Califor- strapped counties. But a “bridge to income uninsured residents” who will funding source on those uninsured nia’s “bridge to reform.” reform” … well … that may be hard gain access to coverage falls woefully individuals with incomes between 100 to demonstrate? short of the 3,061,000 residents who and 133 percent of the federal poverty Jim Lott is Executive Vice President, County budgets have been stressed are eligible for one of the two programs level who will become eligible for Medi- Health Care Policy Development and for several years now, and many sup- created by the Waiver, as estimated by Cal in 2014 under provisions of the Communications for the Hospital port the medical care needs of our the Insure the Uninsured Project. Addi- Affordable Care Act. Moreover, those to Association of Southern California. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
44 LOS ANGELES BUSINESS JOURNAL INVESTMENTS & FINANCE MAY 30, 2011
THE LABJ STOCK INDEX TRACKING LOS ANGELES-AREA COMPANIES X MARKET DIARY X WEEKLY TOP GAINERS Rising commodities prices late in the week ended May 25 helped stop a slide in the stock markets sparked by fears TOP TEN GAINERS BY PERCENTAGE (with closing prices at least $1) over the global economy. Each of the major indexes fell by more than 1 percent. The LABJ Index declined an even 1 May 25 May 18 Price 1-Wk 52-Wk YTD percent as 123 local stocks fell and just 62 advanced. RealD Inc., a 3-D movie projection company in Beverly Hills, Company Close Close Change % Chg. % Chg. % Chg. took the hardest hit amid concerns over the performance of 3-D films and the lighting level of its digital projection sys- BNK Petroleum Inc...... $5.10 $4.38 $0.72 16.4% 126.4% 46.5% tems. Shares fell 14 percent to $30.08. BNK Petroleum Inc., a Camarillo oil and gas company, benefited from rising oil California Pizza Kitchen Inc...... 18.47 16.16 2.31 14.3% 4.6% 6.9% prices as its shares jumped more than 16 percent to $5.10. The stock of California Pizza Kitchen Inc. popped after the General Finance Corp...... 3.00 2.66 0.34 12.8% 119.0% 51.5% L.A. restaurant chain announced that it would be acquired by a private equity firm. Shares rose more than 14 percent Peerless Systems Corp...... 3.40 3.11 0.29 9.3% 23.6% 7.9% to $18.47. General Finance Corp. rose on news that a subsidiary would go public in Australia. Shares of the Pasadena Reading International Inc...... 4.93 4.57 0.36 7.9% 31.1% -2.4% freight container company climbed nearly 13 percent to $3. Santa Fe Financial Corp...... 16.00 15.00 1.00 6.7% 36.2% 21.1% Thomas Properties Group Inc...... 3.30 3.12 0.18 5.8% -7.8% -21.8% X MARKET INDEXES Virco Manufacturing ...... 3.16 3.00 0.16 5.3% -4.0% 19.7% Flamemaster Corp...... 5.00 4.80 0.20 4.2% 31.6% 2.0% May 25 May 18 Point 1-Wk 52-Wk YTD DTS Inc...... 46.20 44.44 1.76 3.9% 42.2% -5.8% Index Close Close Change % Chg. % Chg. % Chg. X WEEKLY TOP LOSERS Dow Jones Industrial ...... 12,394.66 12,560.18 -165.52 -1.3% 23.4% 7.1% NASDAQ ...... 2,761.38 2,815.00 -53.62 -1.9% 24.9% 4.1% TOP TEN LOSERS BY PERCENTAGE (with opening prices at least $1) S&P 500 ...... 1,320.47 1,340.68 -20.21 -1.5% 22.9% 5.0% May 25 May 18 Price 1-Wk 52-Wk YTD LABJ Index ...... 143.66 145.12 -1.46 -1.0% 19.5% 5.9% Company Close Close Change % Chg. % Chg. % Chg.
X INDUSTRY ANALYSIS RealD Inc...... $30.08 $35.00 -$4.92 -14.1% NA 16.0% Bidz.com Inc...... 1.07 1.21 -0.14 -11.6% -37.1% -11.8% May 25 May 18 Point 1-Wk 52-Wk YTD PC Mall Inc...... 8.08 9.05 -0.97 -10.8% 69.6% 6.7% Index Close Close Change % Chg. % Chg. % Chg. Power-One Inc...... 8.12 9.07 -0.95 -10.5% 15.5% -20.4% Voyager Oil & Gas Inc...... 3.02 3.32 -0.30 -9.0% -1.0% -44.1% AEROSPACE/DEFENSE ...... 209.82 209.47 0.35 0.2% 6.8% 1.4% K-Swiss Inc...... 10.23 11.10 -0.87 -7.8% -17.6% -18.0% APPAREL ...... 109.76 116.34 -6.58 -5.7% -8.8% -10.7% Physicians Formula Holdings Inc...... 4.78 5.18 -0.40 -7.7% 49.4% 27.1% AUTOMOTIVE/PLASTICS/METALS ...... 303.20 309.95 -6.75 -2.2% 20.7% -0.1% Bank of Santa Clarita...... 7.85 8.50 -0.65 -7.6% 16.3% 12.9% Guess? Inc...... 40.10 43.26 -3.16 -7.3% 12.7% -15.3% BIOMEDICAL/PHARMACEUTICAL...... 84.90 86.73 -1.83 -2.1% 17.0% 5.8% International Rectifier Corp...... 28.23 30.36 -2.13 -7.0% 41.1% -4.9% COMPUTERS/PERIPHERALS/ELECTRONICS . . .21.49 22.94 -1.45 -6.3% 33.6% -1.9% CONSTRUCTION/ENGINEERING ...... 255.78 261.59 -5.81 -2.2% 5.0% -5.3% X MARKET SUMMARY ENERGY/UTILITIES...... 473.27 464.87 8.40 1.8% 28.9% 6.0% MOST ACTIVE STOCKS WEEKLY SUMMARY FINANCIAL SERVICES...... 152.13 156.65 -4.52 -2.9% 5.3% -5.8% HEALTH CARE...... 545.38 555.34 -9.96 -1.8% 54.7% 30.2% TOP TEN STOCKS VOLUME Advances ...... 62 Declines...... 123 INSURANCE ...... 143.60 144.75 -1.15 -0.8% 4.0% 0.3% Walt Disney Co...... 42,743,289 Unchanged ...... 13 INTERNET ...... 115.82 118.67 -2.84 -2.4% 30.0% -0.2% Activision Blizzard Inc...... 32,881,960 New Highs ...... 7 MEDIA/LEISURE/ENTERTAINMENT ...... 95.16 96.49 -1.33 -1.4% 10.8% 9.0% California Pizza Kitchen Inc...... 32,843,995 New Lows ...... 8 Occidental Petroleum Corp...... 28,976,524 MANUFACTURING ...... 140.87 144.08 -3.21 -2.2% 17.1% -1.6% NOTES ON STOCK TABLES MISC. SERVICES ...... 165.35 169.51 -4.16 -2.5% 44.2% -2.6% DirecTV ...... 22,077,796 Amgen Inc...... 20,967,448 REAL ESTATE ...... 614.41 624.31 -9.90 -1.6% 43.6% 15.3% Tables based on May 18 - 25 Edison International ...... 18,498,197 RESTAURANTS/RETAIL/GROCERY STORES. . .192.19 191.03 1.16 0.6% 21.7% 5.2% Guess? Inc...... 18,456,665 (H) Stock hit new 52-week high SOFTWARE ...... 637.68 645.77 -8.08 -1.3% -1.8% -13.7% Northrop Grumman Corp...... 14,268,522 (L) Stock hit new 52-week low Power-One Inc...... 13,517,122 (S) Stock split during week Investment Banking and Financial Duff & Phelps is a national investment banking and financial advisory firm focused on providing merger and acquisition, private placement, valuation, financial opinion and restruc- Advisory Services Since 1932 turing services. Since 1932, Duff & Phelps has been committed to delivering independent advice and service of exceptional quality to a broad range of public and private companies. All stock data is provided by Duff & Phelps from sources deemed reliable. No recommendation is intended or implied. The firm can be contacted at (310) 689-0070. EVENT Is your CFO one of the best in Los Angeles?
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MAY 30, 2011 INVESTMENTS & FINANCE LOS ANGELES BUSINESS JOURNAL 45
S TOP GAINERS T TOP LOSERS THE LABJ STOCK INDEX TRACKING LOS ANGELES-AREA COMPANIES May 25 1-Wk YTD 52-Wk P.E. Mkt. Cap May 25 1-Wk YTD 52-Wk P.E. Mkt. Cap Company Ticker Close % Chg % Chg % Chg Ratio (millions) Company Ticker Close % Chg % Chg % Chg Ratio (millions)
AEROSPACE/DEFENSE InstaCare Corp. ISCR $0.04 -25.9% -14.0% -42.7% NA $4.6 Aerovironment Inc. AVAV $29.18 -0.6% 8.8% 18.1% 27.0 $639.0 IPC The Hospitalist Co Inc. IPCM 49.56 -0.2% 27.0% 74.3% 31.4 811.2 AML Communications Inc. AMLJ 2.48 0.0% 85.1% 95.3% 22.5 26.6 Molina Healthcare Inc. MOH 25.94 -3.9% 39.7% 47.2% 18.0 1,189.5 Ducommun Inc. DCO 19.27 -0.7% -11.5% -0.4% 12.4 203.0 RadNet Inc. (H) RDNT 4.91 0.8% 74.1% 77.3% NA 183.2 S Flamemaster Corp. FAME 5.00 4.2% 2.0% 31.6% 10.7 6.3 VCA Antech Inc. WOOF 23.91 -5.2% 2.7% -6.1% 18.4 2,061.7 Northrop Grumman Corp. (H) NOC 64.92 0.4% 10.5% 17.7% 10.0 19,003.4 INSURANCE Teledyne Technologies Inc. TDY 48.28 -1.4% 9.8% 25.4% 14.8 1,773.2 Mercury General Corp. MCY 40.70 -1.1% -5.4% -2.4% 20.8 2,231.1 APPAREL Unico American Corp. UNAM 9.75 3.2% 6.7% 6.6% 17.7 52.0 American Apparel Inc. APP 1.01 -1.0% -39.2% -22.9% NA 83.6 Wesco Financial Corp. WSC 387.65 -0.6% 5.2% 11.7% 56.7 2,760.0 Cherokee Inc. CHKE 18.62 -4.2% -1.0% -7.3% 21.4 158.2 INTERNET T Guess? Inc. GES 40.10 -7.3% -15.3% 12.7% 13.4 3,701.7 Accelerize New Media Inc. ACLZ 0.50 25.0% -16.7% -9.1% NA 18.0 Horiyoshi Worldwide Inc. HHWW 0.36 -5.3% -78.8% NA NA 22.9 T Bidz.com Inc. (L) BIDZ 1.07 -11.6% -11.8% -37.1% NA 20.8 Hot Topic Inc. HOTT 7.50 -2.1% 19.3% 32.5% 125.0 335.6 J2 Global Communications Inc. JCOM 27.95 -1.2% -3.5% 22.1% 13.1 1,285.3 Ironclad Performance Wear Corp. ICPW 0.10 -16.5% 0.0% -9.1% 10.0 7.3 MMRGlobal Inc. MMRF 0.04 2.2% -53.8% -75.7% NA 10.2 Joe's Jeans Inc. JOEZ 0.83 -2.8% -46.6% -58.9% 27.7 53.5 ReachLocal Inc. RLOC 21.16 -3.0% 6.3% 36.4% NA 608.0 T K-Swiss Inc. KSWS 10.23 -7.8% -18.0% -17.6% NA 361.9 Spark Networks Inc. LOV 3.26 0.6% 9.8% -1.5% 25.1 67.1 People's Liberation Inc. PPLB 0.08 -20.0% -27.3% -33.3% NA 2.9 Stamps.com Inc. STMP 12.61 0.5% -4.8% 43.3% 23.4 180.8 Skechers U.S.A. Inc. (L) SKX 17.59 -2.5% -12.1% -51.0% 9.4 875.8 United Online Inc. UNTD 5.75 -4.1% -13.0% -12.7% 9.1 509.2 Talon International Inc. TALN 0.14 -17.6% 33.3% 7.7% NA 2.9 ValueClick Inc. VCLK 17.00 -3.3% 6.1% 58.6% 16.0 1,337.6 True Religion Apparel Inc. TRLG 28.34 0.3% 27.3% 5.1% 15.0 730.5 MANUFACTURING AUTOMOTIVE/PLASTICS/METALS American Metal & Technology Inc. AMGY 0.31 0.0% -13.9% -36.7% 9.4 3.7 Motorcar Parts of America Inc. (H) MPAA 15.15 2.0% 16.2% 154.6% 14.6 182.8 Avery Dennison Corp. AVY 41.18 -2.4% -2.7% 22.4% 13.6 4,401.1 Reliance Steel & Aluminum Co RS 50.92 -2.5% -0.4% 15.0% 15.7 3,809.9 BioSolar Inc. BSRC 0.13 -7.4% 30.2% -26.5% NA 20.1 Superior Industries International Inc. SUP 21.51 -0.9% 1.4% 46.4% 10.7 580.1 Cereplast Inc. CERP 4.92 -2.8% 18.8% 23.0% NA 77.5 US Auto Parts Network Inc. PRTS 7.08 -2.7% -15.7% -10.6% 70.8 216.2 Dole Food Co Inc. DOLE 12.79 -5.7% -5.3% 42.9% NA 1,133.2 BIOMEDICAL/PHARMACEUTICAL Ever-Glory International Group Inc. EVK 2.01 -4.3% -4.7% -28.2% 3.7 29.7 Amgen Inc. (H) AMGN 59.84 -2.2% 9.0% 13.9% 12.5 55,635.1 Farmer Bros Co FARM 9.89 2.4% -44.4% -42.6% NA 160.3 Arrowhead Research Corp. (L) ARWR 0.55 -4.0% -38.3% -55.8% NA 39.6 Jakks Pacific Inc. JAKK 19.55 -2.1% 7.3% 34.3% 19.4 531.9 CytRx Corp. CYTR 0.99 14.9% -2.2% 6.9% NA 107.9 Mattel Inc. MAT 26.36 -1.7% 3.7% 23.4% 14.6 9,162.4 Iris International Inc. IRIS 8.85 -4.8% -13.5% -12.3% 57.5 157.5 OSI Systems Inc. OSIS 38.28 -3.7% 5.3% 48.1% 23.5 729.3 MannKind Corp. MNKD 4.11 2.5% -49.0% -23.5% NA 537.1 Overhill Farms Inc. OFI 6.18 -0.6% 7.3% 4.4% 18.7 97.8 Obagi Medical Products Inc. OMPI 9.69 1.6% -16.1% -22.0% 13.8 179.3 Reed's Inc. REED 1.96 -2.0% -2.5% -4.8% NA 21.2 T Physicians Formula Holdings Inc. FACE 4.78 -7.7% 27.1% 49.4% 239.0 65.0 S Virco Manufacturing VIRC 3.16 5.3% 19.7% -4.0% NA 44.9 Oxis International Inc. OXIS 0.10 18.5% -33.8% -12.7% NA 18.4 Vision Industries Corp. VIIC 0.20 11.1% -28.6% -16.7% NA 7.6 Response Genetics Inc. RGDX 2.09 -2.3% -15.7% -7.9% NA 38.4 MEDIA/LEISURE/ENTERTAINMENT Staar Surgical Co STAA 5.32 -3.8% -12.8% 9.9% NA 189.1 Crown Media Holdings Inc. CRWN 1.96 0.5% -25.2% 7.1% 19.6 705.0 COMPUTERS/PERIPHERALS/ELECTRONICS Daily Journal Corp. DJCO 75.00 0.6% 4.2% 5.9% 13.1 103.6 Aura Systems Inc. AUSI 0.70 -2.0% -6.5% -12.4% NA 40.3 Demand Media Inc. (L) DMD 13.60 -6.8% NA NA NA 1,131.6 GTX Corp. GTXO 0.09 35.4% 17.3% -45.0% NA 4.8 Derycz Scientific Inc. DYSC 2.62 0.9% -1.0% 176.2% NA 44.1 Interlink Electronics Inc. LINK 0.40 25.0% 42.9% 53.8% NA 5.5 DirecTV DTV 49.04 -2.4% 22.8% 31.4% 18.0 37,652.2 T International Rectifier Corp. IRF 28.23 -7.0% -4.9% 41.1% 14.9 1,969.3 DreamWorks Animation SKG Inc. (L) DWA 25.25 -1.8% -14.3% -20.0% 5.1 2,132.1 Ixia XXIA 15.38 -3.9% -8.3% 60.0% 64.1 1,056.7 S DTS Inc. DTSI 46.20 3.9% -5.8% 42.2% 48.1 803.9 MRV Communications Inc. MRVC 1.42 -3.4% -20.7% 5.2% 20.3 223.6 Entravision Communications Corp. EVC 2.03 -2.4% -21.0% -25.6% 40.6 173.5 T PC Mall Inc. MALL 8.08 -10.8% 6.7% 69.6% 11.9 100.2 Image Entertainment Inc. DISK 0.16 -5.9% 14.3% -15.8% NA 40.9 T Power-One Inc. PWER 8.12 -10.5% -20.4% 15.5% 6.7 841.5 Lions Gate Entertainment Corp. LGF 5.87 -1.3% -9.8% -13.0% NA 802.7 Qualstar Corp. QBAK 1.75 -1.7% 3.6% 2.9% NA 21.4 Live Nation Entertainment Inc. LYV 11.00 1.7% -3.7% -9.2% NA 2,000.5 Semtech Corp. SMTC 27.29 -5.8% 20.5% 52.7% 20.8 1,765.2 NeuMedia Inc. MNDL 0.44 25.7% 51.7% 25.7% NA 15.9 Taitron Components Inc. TAIT 1.39 0.7% -12.0% -2.8% NA 7.7 Point.360 PTSX 0.59 -7.8% -33.0% -68.9% NA 6.4 Trio Tech International TRT 3.50 -5.4% -16.1% -15.0% 15.2 11.6 Provision Holding Inc. PVHO 0.07 8.3% 8.3% -44.7% NA 2.9 Vitesse Semiconductor Corp. VTSS 4.19 3.5% 0.0% -32.4% 4.1 102.4 Public Media Works Inc. PUBM 0.50 0.0% -47.4% -56.5% NA 15.9 CONSTRUCTION/ENGINEERING S Reading International Inc. RDI 4.93 7.9% -2.4% 31.1% NA 113.8 Aecom Technology Corp. ACM 27.58 -0.7% -1.4% 11.0% 13.1 3,287.5 T RealD Inc. (H) RLD 30.08 -14.1% 16.0% NA NA 1,543.2 Ameron International Corp. AMN 63.74 -2.2% -16.5% 6.8% 36.0 582.4 Salem Communications Corp. SALM 3.41 0.3% 7.6% -9.5% 28.4 82.7 Jacobs Engineering Group Inc. JEC 44.61 -3.8% -2.7% 9.8% 18.1 5,657.0 Sports Club Inc. SCYL 0.25 0.0% NA NA NA 5.4 KB Home KBH 11.45 2.0% -15.1% -22.1% NA 881.3 Stratus Media Group Inc. SMDI 1.00 19.2% 56.3% -44.1% NA 64.2 Ryland Group Inc. RYL 17.05 1.5% 0.1% -4.9% NA 756.6 Tix Corp. TIXC 1.82 0.0% 46.8% 41.1% 45.5 56.6 Tetra Tech Inc. TTEK 23.69 -1.0% -5.5% 8.2% 17.9 1,476.9 Walt Disney Co. DIS 41.13 -0.7% 9.7% 27.3% 18.0 77,742.0 Tutor Perini Corp. TPC 19.16 -6.4% -10.5% -3.0% 10.4 902.9 Warner Music Group Corp. (H) WMG 8.23 0.4% 46.2% 53.0% NA 1,281.9 ENERGY/UTILITIES MISC. SERVICES American States Water Co AWR 33.46 0.1% -2.9% -0.8% 16.1 624.4 Cadiz Inc. CDZI 10.74 -1.0% -13.7% -20.0% NA 148.5 S BNK Petroleum Inc. BKX 5.10 16.4% 46.5% 126.4% NA 734.2 Electro Rent Corp. ELRC 14.17 -0.1% -12.3% 5.0% 16.9 339.8 BreitBurn Energy Partners LP BBEP 20.53 2.4% 1.9% 49.9% 43.7 1,212.1 Enova Systems Inc. ENA 0.86 -1.7% -33.3% -16.2% NA 26.9 Capstone Turbine Corp. CPST 1.74 -1.7% 81.3% 61.1% NA 428.0 Korn/Ferry International KFY 19.64 -0.4% -15.0% 42.3% 18.5 922.4 Cavitation Technologies Inc. (L) CVAT 0.10 -9.3% -32.4% -45.6% NA 13.6 National Technical Systems Inc. NTSC 6.39 -2.7% -20.8% 22.0% 16.0 65.4 Edison International EIX 39.47 0.5% 2.3% 26.4% 12.0 12,859.8 NetSol Technologies Inc. NTWK 1.54 -2.5% -17.6% 109.0% 8.6 85.2 Occidental Petroleum Corp. OXY 104.22 2.0% 6.2% 32.0% 16.6 84,715.1 On Assignment Inc. ASGN 9.74 -5.1% 19.5% 84.5% 69.6 360.0 U.S. China Mining Group Inc. SGZH 3.80 -3.8% -40.3% -29.6% 4.0 71.8 Rentech Inc. RTK 0.95 -6.1% -22.2% -8.8% NA 211.5 T Voyager Oil & Gas Inc. VOG 3.02 -9.0% -44.1% -1.0% NA 174.7 Scope Industries SCPJ 212.00 0.0% 64.3% 63.1% 65.6 211.7 FINANCIAL SERVICES Simon Worldwide Inc. (L) SWWI 0.15 -37.5% -38.9% -36.2% NA 7.6 1st Century Bancshares Inc. FCTY 3.90 -4.9% -4.9% -1.8% NA 38.1 Sionix Corp. SINX 0.16 29.2% 210.0% 76.1% NA 41.5 American Business Bank AMBZ 23.10 -2.5% 3.7% 2.7% 11.2 101.0 UTi Worldwide Inc. UTIW 21.33 -3.4% 0.6% 56.7% 30.9 2,178.6 Anworth Mortgage Asset Corp. ANH 7.18 0.3% 2.6% 8.3% 8.4 908.5 REAL ESTATE T Bank of Santa Clarita BSCA 7.85 -7.6% 12.9% 16.3% 39.3 13.5 Alexandria Real Estate Equities Inc. ARE 79.09 -0.6% 8.0% 25.3% 26.4 4,884.8 Beach Business Bank BBBC 6.25 0.0% 25.0% 21.4% NA 25.1 CB Richard Ellis Group Inc. CBG 26.51 -1.9% 29.4% 75.7% 34.4 8,615.4 Broadway Financial Corp. BYFC 2.35 0.4% -3.3% -30.7% NA 4.1 Douglas Emmett Inc. DEI 20.18 -1.1% 21.6% 38.1% NA 2,510.8 California United Bank CUNB 12.40 -0.8% 0.4% 9.7% NA 61.2 HCP Inc. HCP 36.74 -1.0% -0.1% 19.2% 34.0 14,917.4 Cathay General Bancorp CATY 15.61 -0.4% -6.5% 40.9% 23.3 1,227.5 Hudson Pacific Properties Inc. HPP 15.80 1.1% 5.0% NA NA 530.3 Center Financial Corp. CLFC 6.51 -3.1% -14.1% 12.4% 14.5 259.8 Intergroup Corp. INTG 22.30 1.4% 3.2% 39.9% 5.8 53.4 City National Corp. CYN 54.63 -2.7% -11.0% -1.7% 19.2 2,905.1 Kennedy-Wilson Holdings Inc. KW 10.98 -0.1% 9.9% -0.2% NA 441.2 Colony Financial Inc. CLNY 18.34 0.4% -8.4% 0.4% 12.6 600.3 Kilroy Realty Corp. KRC 40.00 -0.6% 9.7% 27.0% 266.7 2,338.3 East West Bancorp Inc. EWBC 19.47 -5.5% -0.4% 20.3% 15.7 2,895.6 LTC Properties Inc. LTC 28.62 -1.1% 1.9% 16.4% 25.8 868.2 Farmers & Merchants Bank FMBL 4255.00 -0.2% 7.2% 2.0% 10.1 557.1 Macerich Co. MAC 51.87 -0.3% 9.5% 33.1% 192.1 6,789.8 First California Financial Group Inc. FCAL 3.60 -5.3% 28.6% 28.1% NA 102.3 MPG Office Trust Inc. MPG 2.67 1.1% -2.9% -2.9% NA 130.9 S General Finance Corp. GFN 3.00 12.8% 51.5% 119.0% NA 66.0 Meruelo Maddux Properties Inc.* MMPIQ 0.47 4.4% 67.9% 526.7% NA 41.4 Great American Group Inc. GAMR 0.30 -1.6% -38.8% -83.3% NA 9.2 Pacific Office Properties Trust Inc. PCE 2.20 1.4% -47.2% -49.8% NA 42.6 Green Dot Corp. GDOT 38.03 -5.9% -33.0% NA 39.6 1,592.6 Portsmouth Square Inc. PRSI 24.00 -4.0% 4.3% 2.1% 6.3 17.6 Hanmi Financial Corp. HAFC 1.19 -1.7% 3.5% -25.0% NA 180.0 PS Business Parks Inc. PSB 56.40 -3.3% 1.2% 5.7% 31.9 1,393.9 Kaiser Federal Financial Group Inc. KFFG 12.17 1.0% 5.1% -10.4% 13.8 116.4 Public Storage PSA 114.37 -2.8% 12.8% 27.2% 40.4 20,450.8 Malaga Financial Corp. MLGF 16.50 3.1% 8.2% 26.9% 9.1 95.7 S Santa Fe Financial Corp. SFEF 16.00 6.7% 21.1% 36.2% 320.0 19.9 Manhattan Bancorp MNHN 4.75 -3.1% -7.8% -15.2% NA 18.9 S Thomas Properties Group Inc. TPGI 3.30 5.8% -21.8% -7.8% NA 168.0 Mission Valley Bancorp MVLY 4.35 -5.4% 16.0% -3.3% NA 10.7 RESTAURANTS/RETAIL/GROCERY Nara Bancorp Inc. NARA 8.45 -2.8% -14.3% 10.5% NA 321.1 99 Cents Only Stores (H) NDN 20.37 -0.6% 27.8% 39.2% 19.0 1,427.4 NCAL Bancorp NCAL 8.50 0.0% -15.0% -26.1% NA 19.8 Arden Group Inc. ARDNA 83.30 -0.7% 1.0% -5.3% 14.1 255.8 Pacific Commerce Bank PFCI 3.75 0.0% 25.0% -6.3% NA 9.2 Big 5 Sporting Goods Corp. (L) BGFV 9.36 -2.1% -38.7% -36.7% 10.3 205.8 PacWest Bancorp PACW 20.78 -3.0% -2.8% 1.2% 230.9 736.9 S California Pizza Kitchen Inc. CPKI 18.47 14.3% 6.9% 4.6% 22.5 454.1 PennyMac Mortgage Investment Trust PMT 17.10 -2.4% -5.8% 5.1% 10.0 474.8 Cheesecake Factory Inc. CAKE 30.88 0.0% 0.7% 21.6% 21.2 1,783.3 Preferred Bank PFBC 1.58 -2.5% -10.2% -21.0% NA 104.3 DineEquity Inc. DIN 53.42 -1.2% 8.2% 70.5% 32.0 989.6 SearchMedia Holdings Ltd. IDI 2.05 0.8% -34.1% -50.0% NA 42.8 Grill Concepts Inc. GLLC 0.31 19.2% 6.9% -13.9% NA 2.7 Saehan Bancorp SAEB 0.34 0.0% -12.8% -41.4% NA 4.1 Jerry's Famous Deli Inc. DELI 1.75 0.0% -50.0% -41.7% 5.6 8.2 Wilshire Bancorp Inc. WIBC 3.19 1.3% -58.1% -69.6% NA 210.1 Sport Chalet Inc. SPCHB 2.05 -4.7% -45.2% -32.3% NA 27.4 HEALTH CARE SOFTWARE Apollo Medical Holdings Inc. AMEH 0.22 0.0% 46.7% 129.2% NA 6.4 Activision Blizzard Inc. ATVI 11.38 -1.3% -8.5% 10.7% 18.7 13,020.6 Compumed Inc. CMPD 0.08 -20.2% -16.7% -64.6% NA 2.0 CyberDefender Corp. CYDE 1.82 -1.1% -40.5% -55.6% NA 51.2 CrowdGather Inc. CRWG 0.87 -1.1% -44.6% -20.9% NA 49.5 Guidance Software Inc. GUID 7.61 1.5% 5.8% 34.7% NA 192.6 Health Net Inc. HNT 31.25 -3.0% 14.5% 36.9% 12.8 2,827.9 S Hemacare Corp. HEMA 0.37 0.0% -32.7% -47.1% NA 3.6 Peerless Systems Corp. PRLS 3.40 9.3% 7.9% 23.6% 11.7 11.7 Herbalife Ltd. HLF 53.31 0.0% 55.9% 144.8% 20.4 6,356.5 Simulations Plus Inc. SLP 2.84 -4.4% 5.6% 20.3% 18.9 43.8 Imaging3 Inc. IMGG 0.09 1.2% -43.1% -78.3% NA 33.1 THQ Inc. THQI 4.14 -0.7% -31.7% -28.9% NA 281.7 * Reorganizing under Chapter 11 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
46 LOS ANGELES BUSINESS JOURNAL MAY 30, 2011
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MAY 30, 2011 REAL ESTATE LOS ANGELES BUSINESS JOURNAL 47 Hilton Will Check New Brand Into Hollywood CONVERSION: LaSalle Inc., which represented Base Partners. new generation of high-tech buildings when it Garden Inn “Jones Lang LaSalle was able to achieve a REAL ESTATE opened in 2000. Among other features, it has will take place of RLJ’s premium price for Base Partners by showing redundant backup systems and raised flooring investors the potential of this property as a pre- JACQUELYN RYAN that can hold more than 200 miles of cable. Hollywood Heights Hotel. mier facility for data center users in Southern “We were able to provide BT with a viable California,” Strickfaden said. solution to some of its complex corporate real HE Hollywood Heights Hotel is being con- Also representing the seller at Jones Lang The building was acquired this month for estate issues during their period of reorganization verted into the tourist area’s first Hilton were Steve Solomon, managing director, and $51.2 million by GLL Properties Inc., the (several years ago) and it proved to be a prof- T Garden Inn, a Hilton Hotels Corp. brand Curt Holcolmb, senior vice president. The U.S. subsidiary of GLL Real Estate Partners itable investment for Broadreach,” said David known for its open courtyards and boutique feel. buyer was represented in-house. Inc., a Munich, Germany, real estate funds Simon, the company’s managing director. The 160-room, seven-story hotel on High- management group. Broadreach was represented in the transac- land Avenue near the Hollywood Bowl was pur- Nifty Profit Broadreach had acquired the three-story Class tion by Eastdill Secured. GLL Properties rep- chased in December by RLJ Lodging Trust of Broadreach Capital Partners has sold a A building at 2160 E. Grand Ave. for $45.5 million resented itself in-house. Bethesda, Md., from L.A.’s CIM Group LP. It 157,000-square-foot office building in El from British Telecom in a 2006 sale-lease-back had been operated by the Holiday Inn as the Hol- Segundo that serves as the North American cor- deal when the telecom giant was divesting itself of Staff reporter Jacquelyn Ryan can be reached lywood Walk of Fame hotel until 2008, when it porate headquarters of BT Infonet, a voice and noncore assets. BT Infonet’s lease expires in 2021. at [email protected], or (323) was converted to the Hollywood Heights Hotel. data networking subsidiary of British Telecom. The headquarters was one of the first of a 549-5225, ext. 228. The purchase price was undisclosed, but CoStar Group estimates the building’s value at $21 million. The Hilton Garden Inn is a midprice hotel chain, comparable with Marriott’s Courtyard brand. Other Hilton Garden Inns in Los Ange- les are in Calabasas, Montebello, Pasadena, El Segundo, Valencia and Palmdale.
Checking Out: Hollywood Heights Hotel. “Having this opportunity to capture such a unique area as Hollywood within the brand is truly a little treasure,” said Alan Roberts, Hilton Garden Inn’s vice president of brand performance and support. The hotel at 2005 N. Highland Ave. was built in 1976. Renovation plans call for construction of an airy courtyard pavilion and large windows. Interior upgrade plans include outfitting guest rooms with the brand’s large desks and chairs. The hotel restaurant, now called the Hideout, will be converted into a Great American Grill, the standard restaurant of Hilton Garden Inns. The hotel will stay open during construction, which is scheduled for completion by next May. The hotel is one of 10 nationwide that RLJ is converting this year into Hilton Garden Inns. There are more than 500 Hilton Garden Inns in 12 countries. “The rebranding of this property will induce new customers that in the past have not come to the market,” said Jeff Lugosi, Colliers PKF Consulting hospitality analyst. “I think it’s going to be very successful. The Hilton Garden Inn is one of the top focused-service brands in the market today.”
Data Deal The demand for data center properties continues. T5 Partners in Atlanta bought a data cen- ter in El Segundo this month for roughly $30 million from Base Partners Inc., a San Fran- cisco developer. The one-story, 121,586-square-foot building at 444 Nash St. will be redeveloped into a data office center with a raised floor and powerful transformer on the property. The internal structure that houses the building’s power source will be expanded, and the building will be prepared for tenants that need between 2,500 square feet and 72,000 square feet. El Segundo is already home to large data centers owned by San Francisco’s Digital Realty Trust and Redwood City’s Equinix. El Segundo offers cheaper power rates then downtown Los Angeles, a key consideration for data center operators, said Chris Strick- faden, a managing director at Jones Lang 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
48 LOS ANGELES BUSINESS JOURNAL REAL ESTATE MAY 30, 2011
Last month’s major commercial real estate transactions in Los Angeles DONE DEALS APRIL 2011 County, including leases and sales.
OFFICE SALES
SF/ Year Sale Price Property Address Property Name Bldg Class Built Buyer Buyer Broker Seller Seller Broker (in millions) 550 S. Hope St. 550 South Hope 565,738 1990 LBA Realty MPG Office Trust Inc. Michael Kathrein $158 Los Angeles A Eastdill Secured 15350-15400 Sherman Way Sherman Plaza 273,618 1983/ Majestic Investments LLC Embarcadero Capital Partners LLC Bob Safai 49.5 Van Nuys (2 Prop.) A 1988 Madison Partners 150 S. Rodeo Drive William Morris Rodeo 73,700 1991 Douglas Emmett Inc. Brickman Management LLC Marc Renard 42 Beverly Hills A Cushman & Wakefield 2300 E. Imperial Highway 157,225 1964 V.C.I. Corp. CWCapital Asset Management LLC Chris Sinfield 25.4 El Segundo A Cushman & Wakefield 1400 Montefino Ave. Diamond Bar Professional Bldg 128,647 1985/ J.E. Robert Cos. Inc. Adler Realty Investments Inc. 15.5 21015 Pathfinder Road, B 1984 21073 Pathfinder Road, Diamond Bar (3 Prop.) 6035 Bristol Parkway Park Place Business 8,628 1979 KSS Holdings LLC Ronald Rader Alexander & Katherine Gladkov Thomas Patriarca 2.55 Culver City Park Bldg 6 B NAI Capital
INDUSTRIAL SALES SF/ Year Sale Price Property Address Property Name Bldg Class Built Buyer Buyer Broker Seller Seller Broker (in millions) 29011 Commerce Ctr. Drive 165,141 2000 Sares-Regis Group Craig Peters, Craig Peters, $12.8 Valencia A CB Richard Ellis CB Richard Ellis 341 N Baldwin Park Blvd. 48,484 1970 Exxel Outdoors NewTower Trust Co. Cameron Merrill, 8.2 City of Industry C CB Richard Ellis 211 S. Lake St. 68,713 1960 VAST RE/sources Mark Pettibone, Fred L Bell Family Trust David Issaians, Coldwell 6.25 Burbank C Commercial Resource Banker Commercial R/E Services North County
8190 Byron Road 72,281 1973 DCT Industrial Trust Richard McGeagh, 4.8 Whittier C CB Richard Ellis 1737-1745 E. Seventh St. 100,000 1921 Linear City LLC Michael Meraz, Bayview Loan Servicing LLC Joe Kimaz, 3.8 Los Angeles C Magnum Properties CB Richard Ellis 13435 S. Main St. 40,360 1974 Aztec Auto Detailing Rosie Rojas, Jung Family Trust Jason Ehrenpreis, Centers 3.65 Los Angeles C House to Home Realty Business Management 4916-4930 Santa Anita Ave. 43,936 1960 2.9 El Monte B 20470 E. Walnut Drive 20,250 1978 Multi Express Inc Rich Horn, NAI Capital Mei Lin King Hon Henry Hong, Richmore 2.39 Diamond Bar C Realty 4516-4520 Doran St. 22,680 1961 Richard W Schreck Randy Stevenson, 2.2 Los Angeles B Stevenson Real Estate 850 Monterey Pass Road 20,682 1959 Rui Z Zhao & Guo Ping Luo Henry Liu, CBD Harold Wakcher Bradley Ross, 2.17 Monterey Park C Investments Inc. Major Properties
RETAIL SALES
SF/ Year Sale Price Property Address Property Name Bldg Class Built Buyer Buyer Broker Seller Seller Broker (in millions) 17501 Colima Road Puente Hills Mall 20,174 Navus LLC Andrew Miliotis, The Krausz Cos. Inc. Shaun Riley $12.5 City of Industry AIT Realty Faris Lee Investments 1735 W Artesia Blvd. Gardena Marketplace 97,250 Glenmont Capital Management 11.7 Gardena (5 Prop.) 23925-23961 Newhall Bridgeport Marketplace 117,874 Madison International Realty Alexander & Baldwin Inc. 10 Ranch Road, Valencia (4 Prop.) 1138 The Strand Hennessey's Tavern 3,920 Hennessey P & J Trust Krause Family Trust 7.25 Hermosa Beach 2750 W. 120th St. Hawthorne Crossing 58,636 J.E.R. Partners Capmark Bank 6.75 Hawthorne
MULTI-FAMILY SALES
SF/ Year Sale Price Property Address Property Name Bldg Class Built Buyer Buyer Broker Seller Seller Broker (in millions) 400 Appian Way 1,240,429 AvalonBay Communities Inc. UDR Inc. $237 Pomona (6 Prop.) 612 S. Flower St. Pegasus 483,140 1949 Equity Residential Buchanan Street Partners Marc Renard, Cushman 100 Los Angeles & Wakefield Inc. 255 W. Fifth St. Vue 498,645 2009 Carmel Partners The Carlyle Group Javier Rivera, 80.1 San Pedro Jones Lang LaSalle 1200 W. Riverside Drive Royal Equestrian 142,992 1965 Raintree Partners Capri Capital Partners LLC 43.2 Burbank 22065 Pacific Coast Highway Villas at Carbon Beach 25,600 2006 Builders Bank Villa Development LLC 14 Malibu 5047 Bakman Ave. The Morrison Apartments 87,559 Peggy A. Jones Ronald Harris, Interstate Equities Corp. Ronald Harris, 13.3 North Hollywood (3 Prop.) Marcus & Millichap Marcus & Millichap 800 Pine Ave. Pine Villa 53,952 1929 CLMG Corp. Pacific Property Assets 10.7 Long Beach 18339 Collins St. Tarzana Gardens Apartments 68,748 Pacific Coast Realty Group Dean Zander, 9.8 Tarzana (2 Prop.) Hendricks & Partners 435 Hawthorne St. 45,932 1986 Pepper Lane Properties Arthur Arejian, Properties International Arthur Arejian, 9.5 Glendale Vanguard Investments. Vanguard Investments Inc. 43460 32nd St Antelope Valley Apartments 114,004 1982 Investment Property Group Matthew Friedman, GH Capital Matthew Friedman, 9.5 W. Lancaster Marcus & Millichap Marcus & Millichap 225 W. Verdugo Ave. Verdugo Hills Apts 42,362 1986 Cusumano Real Estate Group Cory Stehr, BRC Advisors David F Freeman Kevin Hurley, 8.0 Burbank Hendricks & Partners 24938-24952 Walnut St. Walnut Village 46,809 1986 Sussex Capital Group LLC 7.25 Newhall 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
MAY 30, 2011 REAL ESTATE LOS ANGELES BUSINESS JOURNAL 49
OFFICE LEASES Lease Property Address SF Property Name Tenant Tenant Broker Owner Owner Broker
10250 Constellation Blvd. 80,808 Constellation Place Houlihan Lokey Inc. Jeffrey Mintz, Travers JMB Realty Corp. Hunt Barnett, Gary Weiss, Monte Richardson; Century City (formerly MGM Tower) Realty - ONCOR International LA Realty Partners 3330 Cahuenga Blvd. 28,000 DG Fastchannel Inc. Josef Farrar, David Kluth; Glenborough LLC Nico Vilgiate, CB Richard Ellis Los Angeles UGL Services 1888 Century Park East 24,429 Eighteen Eighty Eight Building Horizon Media Inc. Craig Kish, Jones Lang LaSalle The Blackstone Group Anthony Gatti, Brian Niehaus; Century City Jones Lang LaSalle 22700 Crenshaw Blvd. 20,156 Crenshaw Plaza Prudential California Steve A. & Rosan Johnson Torrance 1150 S. Olive St. 19,070 Tower Building- AT&T Center USC LBA Realty John Zanetos, Chris Penrose; CB Richard Ellis Los Angeles 3130 Wilshire Blvd. 9,489 White Sutton & Co. Jeffrey Resnick, Joel Frank, Derek Scott; Santa Monica First Property Realty 815 Colorado Blvd. 8,094 Annandale Two - Annandale Flewelling Architecture Corey Waite, Coldwell Banker Los Angeles Firemen's Credit Union Tim Miller, Marin Rutherford; Los Angeles Office Center Commercial North County Jones Lang LaSalle 4510 E. Pacific Coast Highway 5,017 Circle Business Center 2 College Internship Program Andy Batcheller, NAI Capital Jamison Services Inc. Jeff Coburn, Shaun McCollough; Long Beach Lee & Associates 6380 Wilshire Blvd. 1,778 The Plaza Belly Buds LLC David Passman, Commercial Jamison Services Inc. Jeffrey and Jennifer Resnick; Los Angeles Asset Group First Property Realty Corp. 23341 Golden Springs Drive 1,050 American Medical Response Joe Gonzalez, Henry Nunez Rich Equity LLC Lynn Yangchana, MGR Real Estate Diamond Bar Real Estate
INDUSTRIAL LEASES
Lease Property Address SF Property Name Tenant Tenant Broker Owner Owner Broker
250 W. Apra St. 149,654 NRT Tres Reid, CB Richard Ellis Prudential Investment Management Steve Bohannon, Rusty Smith; Compton Cushman & Wakefield Inc. 12224 Montague St. 113,500 Natural Balance Pet Foods Inc. John DeGrinis, Patrick DuRoss; David Hoffberg, Gerald Scullin; Pacoima Colliers International Delphi Business Properties 1001 W. Walnut St. 100,000 R.I.M. Logistics Ltd. Robert Flores, DAUM AMB Property Corp. Rooney Daschbach, Rusty Smith; Compton Commercial Real Estate Services Cushman & Wakefield Inc. 601 Vincent Ave. 91,501 TRI Products Brian Deets, CIBA Real Estate William Kim, Scott Heaton; Azusa Colliers International 1550 Gage Road 53,704 CJ United Food Corp. Ryan Lewis, Voit Real Rggl Corp. John Privett, Jeff Stephens, Cameron Merrill; Montebello Estate Services CB Richard Ellis 7700 Airport Business Park Way 48,413 Airport Business Park Red Bull Robin Dodson, Cushman Scott Bader David Harding, Greg Geraci; CB Richard Ellis Van Nuys Building 3 & Wakefield 12329 Gladstone Ave. 16,568 Gladstone Finishing Inc. David Harding, Greg Geraci; David Harding, Greg Geraci; CB Richard Ellis Sylmar CB Richard Ellis 20420 S. Susana Road 12,192 Pratt Communications Steve Bohannon, Rusty Smith; Greenberg Associates David Bales, Lee & Associates Carson Cushman & Wakefield 5901 Sheila St. 4,000 Osorio Enterprises Jeff Stephens, Cameron Merrill, David S. & Wilma T. Draves Jeff Stephens, Cameron Merrill, John Privett; City of Commerce John Privett; CB Richard Ellis CB Richard Ellis
RETAIL LEASES
Lease Property Address SF Property Name Tenant Tenant Broker Owner Owner Broker
15525-15607 Heron Ave. 22,750 Transit Air Cameron Driscoll, Kane Industrial Properties LLC Jeffrey Thompson, Grubb & Ellis La Mirada Voit Real Estate Services 1662 Long Beach Ave. 21,780 Ann 2 La Moda Kee Kwon, North American; LA Glo Inc Jeffrey Thompson, Grubb & Ellis Los Angeles Commercial Industrial Properties 10823 Zelzah Ave. 15,108 Grana Village Shopping Center Rite Aid Macquarie CountryWide Trust Eric Li, Regency Centers Granada Hills 200 E. Del Mar Blvd 13,942 Evergreen Office Center Center for Developing Kids Inc. Esteban Felix, Lin Yit; Ideal Real Estate LLC Esteban Felix, Lin Yit; Insignia PMG Pasadena Insignia PMG 825 Colorado Blvd. 5,013 Annandale Office Center 1 Fusion Academy James Malone, Jones Lang Frank De Pietro & Sons Damon Feldmeth, Kevin Duffy; Los Angeles & Learning Center LaSalle CB Richard Ellis 140 W. Valley Blvd. 5,000 Hot Pot Café Universal Shopping Plaza Inc. Jack Chu, San Gabriel Square San Gabriel 2400-2484 W Victory Blvd. 4,460 Landmark Shopping Center Fresh & Easy Express Albert & Garnik Mnatsakanyan Kirk Cartozian, Cartozian & Burbank Associates Real Estate 1135 Lindero Canyon Road 3,040 Pavilions - North Ranch Fitness Movement Pilates The Vons Co. Inc. Jed Craig, Inland Western Retail Estate Trust Westlake Village 25931-25955 The Old Road 2,387 Valencia Marketplace D.E.E. Studio Productions Valencia Marketplace I and II Michael Schiff, NAI Capital Valencia 5201 E. Los Altos Plaza 2,100 Park Plaza Center- Farmers & Merchants Long Beach Los Altos Plaza
Reproduced with the permission of CoStar Realty Information, Note: Ranked by square footage unless information is Inc. For more information go to www.costar.com. not available. SF = square footage 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
50 LOS ANGELES BUSINESS JOURNAL MAY 30, 2011 Investment Properties For Sale COMMERCIAL COMMERCIAL
2 101 16 RESTAURANTS FOR SALE W. 3rd Dodger 5 CULVER CITY WILSHIRE Stadium • High End Mexican Lunch & Dinner • Comm’l Kitchen/Warehouse BLVD. 10 • Franchise- Business Only • 4,400 sq. ft. on For Sale. From $175,000 8,000 sq. ft. of land
LOS ANGELES COUNTY • 16 Calif. Locations - Some • $1,750,000 VENTURA COUNTY FIGUEROA with Beer and Wine. 10 FLOWER ◆ G. Batiste / B. Hart Santa
Clarita ALAMEDA 60 Ken Singh ◆ 888-895-7535 Ext 214 (310) 478-7700 110
118 INDUSTRIAL Simi 2 FOR SALE Valley Northridge CULVER CITY Burbank FOR SALE 170 • Retail-Restaurant Agoura 5 GENERAL INDUSTRIAL SITE Hills 101 • 1,570 sq. ft. on Hollywood Pasadena 210 • Owner Will Carry 3,136 sq. ft. of land Calabasas Glendale • Warehouse & Garages Plus 405 6 • $850,000 Alhambra 10 West 1,500 SF Offi ce-.49 Acres Covina ◆ G. Batiste / B. Hart • Located Near 710 Fwy & LOS ANGELES Pomona Port of Long Beach (310) 478-7700 1 Santa 1 Monica 2 Montebello Malibu Linda Martinez ◆ 888-895-7535 ext 216 Venice Culver City Whittier LOS ANGELES COUNTY Marina Del Rey Lynwood 5 215 AVE “I”, ORANGE COUNTY FOR SALE: REDONDO BEACH El Segundo 100% LEASED INVESTMENT OPPORTUNITY Hawthorne • 12 Apts (2/2’s) Manhattan Beach 4 CLAREMONT BUSINESS PARK & Retail 5 miles Hermosa Beach Torrance • Court Ordered Redondo Beach Anaheim Sale Bids due by 3 Carson JUNE 20, 2011 • $6,500,000 Long 5 Beach Rancho Palos Huntington Santa Ana Steve Miller (310) 792-3600 Verdes LONG Beach Lic #00782584 [email protected] BEACH San Clemente Irvine LEGEND LOS ANGELES HARBOR HARBOR Office Costa Mesa • Six industrial buildings - 5 single • Quality, stable income stream tenant and 1 multi-tenant – All tenants have been in-place over 18 years 1040 MANHATTAN Residential • 69,428 square feet total • Allows for a secondary exit strat- FOR SALE: BCH BLVD, MB • Excellent opportunity to acquire a egy through the sale of individual stable, fully leased business park industrial buildings to owner-users • 4,500 SF/Bldg Commercial • Highly desirable area within as the current leases roll - each the City of Claremont, off Arrow building is on a separate parcel. • 15,747 SF/Land Highway, near I-10 • Sgl User or Industrial re-develop • $2,900,000 Land Robert Griffi th Steven Ward Lic 00816302 Lic 01773125 Steve Miller (310) 792-3600 (949) 608-2091 (949) 608-2061 Lic #00782584 [email protected] Robert.Griffi [email protected] [email protected]
OFFICE Need more information on advertising your Investment Property?
Call Rosz Murray • 323.549.5225 ext. 215
LEASING GUIDE
OFFICE FOR LEASE Showcase your property in the
D Bank Site - LA’s Premier Address LEASING GUIDE section of the Available Space: 3,200 sqft.+++ (signalized corner) LOWERE TO 750K Term Length: 3-10 years (negotiable) Los Angeles Business Journal. Lease Type: Bank branch site Rate Type: NNN Also - offi ce/retail from 3.50 Available: Immediately Contact: Arun Bhumitra, Armitra Properties Email: [email protected] Phone: (310) 994-7400 Call Rosz Murray ADDRESS: 23211 Hawthorne Blvd., Torrance, CA Originally 15 Million - property can now be purchased for 9.5 Million! 323.549.5225 ext. 215 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
MAY 30, 2011 LOS ANGELES BUSINESS JOURNAL 51 BUSINESS MARKETPLACE FINANCIAL SERVICES REAL ESTATE SERVICES RENT REDUCTION NEGOTIATOR Pay nothing if not successful! (Why pay above market rates?)
1. Have trouble getting a Rent reduction 2. Only pay 10% of savings from rent reduc- tion. You keep 90% of negotiated savings. 3. Have a 95% success record
Ron Ozur, CPA 818.907.9572 • 818.370.6985 [email protected]
BUSINESS SERVICES Got Distributions?
Property Management Leasing • Brokerage
www.iwpartners.com 213-929-5057
68 Units Bank REO
3 Locations, LA & Inglewood www.wjmpropertylist.com Bill Morris 310-491-2021
Property Tour Dates: Thursday, June 2, 2011; Monday, June 6, 2011 10:30 am to 2:00 pm
Call for Offers: Friday, June 10, 2011, 5:00 pm 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
52 LOS ANGELES BUSINESS JOURNAL MAY 30, 2011 BUSINESS MARKETPLACE EVENT ANNOUNCEMENTS CAREER SERVICES INCREASE PROFITS: ACCESS GLOBAL MARKETS Thursday, June 2, 2011 8:00am – 12noon PROGRAM TOPICS • Expanding Your Export Road Map • Market Entry Strategies • Financing • Logistics • Import/Export Legal & Regulatory Issues • Identifying Growth Industries
Santa Monica College SBDC at Bundy Campus 3171 S Bundy Drive, Los Angeles, CA 90066 Pre-registration $25/At the door $35 Free on-site parking Register online at www.smcsbdc.org
Call for confi dential one-on-one international trade business counseling 310/434-3566
SBDC’s are funded by the SBA. Funding is not an endorsement of any product opinion, or service. All Federal and State funded programs are extended to the public on a nondiscriminatory basis. Special arrangements for individuals with disability will be made if requested in advance. DBA EMPLOYMENT OPPORTUNITIES Fictitious Name Statement File No. (2011028953) The following company is doing business as Canyon Hills Pet Hospital, 14656 Pipeline Ave, Chino, CA 91710. This business is being conducted by AM Veterinary Clinic, Inc. 2121 Foothill Blvd., Pasadena, CA 91107. This statement was filed with the County Clerk of Los Angeles on May 12, 2011. Published on, 5-30-11, 6-6-11, 6-13-11, 6-20-11. Notice - this fictitious busi- SBA Lending ness name statement expires on, May 12, 2016. A new fictitious business name statement must be filed prior May 12, 2016, The filing of this statement does not itself authorize the use in this state of a fictitious business name in violation of the rights of another under federal, state, or common law (see section 14400 ET SEQ, business and professional code). A well capitalized and profi table fi nancial institu- tion headquartered in the San Francisco Bay Area REQUEST FOR BIDS
seeks to establish a SBA lending division in the Los Requesting Sub-bids from Qualifi ed Angeles area. We seek an established lending group MBE/WBE/OBE Subcontractors/Vendors for: who have the desire to become a Southern Califor- Federal Legislative Consulting Services Los Angeles Department of Water & Power nia premier SBA lender. Sub Bid Deadline: June 1, 2011 For information on the availability of plans and specifi cations and the All serious inquiries should be directed to Mr. bidder’s policy concerning assistance to subcontractors in obtaining Mukhtar Ali, Executive Vice President United La- bonds, lines of credit, and/or insurance, please contact our offi ce: SNR Denton bor Bank, 100 Hegenberger Road, Oakland, Ca Attn: John Russell 1301 K St, NW Washington, DC 20015 94621. 510-567-6900. (202) 408-6400 [email protected] 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
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54 LOS ANGELES BUSINESS JOURNAL MAY 30, 2011 Aerospace: Up-in-the-Air Sector Still Yields Jobs
Continued from page 1
and keep them operating for the next 50 years. The program is by far the costliest in current dollars the Pentagon has ever committed to. Nancy Sidhu of the Los Angeles Eco- nomic Development Corp. said that while big-ticket programs are under Congress’ microscope, stealth technology and cutting- edge weapons – a strong point for L.A. defense contractors – will play a big role in the military’s future. “The new fighters are an example of that, and at the same time there’s the arrival of new gadgets,” said Sidhu, noting the success of Monrovia’s AeroVironment, a growing maker of drone aircraft that can be launched by hand in the battlefield. Factory Floor: TA Aerospace makes high-tech rivet covers and sealants for the F-35 stealth fighter at this Valencia plant. Changing gadgets Philip Finnegan, director of corporate than a decade ago at Air Force Plant 42 in general manager of ATK Defense Electronics programs to Oklahoma, cutting 250 jobs and analysis at the Teal Group, an Arlington, Va.- Palmdale. (The project is classified.) Systems. “We’re a small division, but we have a relocating 550 more. based defense consultancy, said the F-35 pro- The work apparently is being done at the capability that the Navy absolutely needs and over However, the company earlier this year gram not only will move forward as the United same 5,800-acre Mohave Desert site as the the next 10 years we see meaningful growth.” won a huge $35 billion contract to build the States seeks to keep ahead in stealth technolo- original one. The program reportedly has near- Kasting said ATK is in talks with the Navy to Air Force’s next-generation refueling tanker. gy, but will have broad benefits. ly $200 million in funding this year, and $3.7 determine if the missile could be used on the F-35, The KC-46A contract will mean about 4,500 Indeed, the fighter has 151 suppliers in the billion over the next five. It’s still early in the which would mean further orders and contracts. jobs in California for Boeing and its subcon- county that directly employ 4,300. In turn, 12,200 process and the program’s future is unclear. tractors, with most in the county. additional workers are supported by those suppli- There are other examples of companies Stealth defense In addition, Boeing’s Space and Intelli- ers. That’s 16,500 jobs that depend wholly or with local operations benefitting from the mili- But for big contractors, such as Boeing gence Systems facilities in El Segundo is the partly on the supply chain to the fighter. tary’s focus on aerospace weaponry. Co., the story is mixed. Earlier this year, Boe- world’s largest satellite manufacturing opera- Of course, the fighter, which is assembled ATK Aerospace Systems is the prime con- ing announced that it would cut 900 of 3,700 tion, with about 5,000 workers. In the last four in Fort Worth, Texas, is still being tested. So tractor for the Advanced Anti-Radiation Guid- jobs at its C-17 Long Beach plant. years, about 400 positions have been cut or the program has not unfolded quickly. ed Missile, a precision air-to-ground missile The four-engine transport plane has been in phased out, but Shawa said the cutbacks are “It’s been a slower road than expected,” that targets enemy radars. production since the early 1990s, but will end finished for now. said Finnegan, noting the nearly 10 years the The company is based in Minneapolis but at the close of next year unless more buyers The company last year won a $1 billion Defense Department and contractors have been has about 230 employees developing software, can be found, said Paula Shawa spokesperson contract to deliver a satellite system to the gov- working on the F-35. “But it’s going to hap- manufacturing the front-end guidance system for Boeing Defense, Space & Security. ernment of Mexico. The system will include pen, and I can’t imagine any aerospace sectors and doing other work at its Woodland Hills “We need to bring in new customers in the three satellites and ground-based network that won’t benefit.” plant, which has a $50 million, multiyear Navy international market to keep that going,” she said. operations. Such contracts should continue to In another example, the Defense Depart- contract. Boeing, which has about 15,000 local buoy local production. ment is believed to be working on a replace- “Our business is poised for growth, and we employees and three manufacturing facilities “The demand is there for our capability,” she ment for the B-2 stealth bomber, which was expect to ramp up production within 12 to 18 in Long Beach and El Segundo, also recently said. “We feel we’ve got a pretty good thing built by Northrop Grumman Corp. more months,” said Bill Kasting, vice president and moved its B-1 bomber and the C-130 transport going and expect to have additional orders.” BUSINESS MARKETPLACE BUSINESS OPPORTUNITIES 21,325,673 Made in LA
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MAY 30, 2011 LOS ANGELES BUSINESS JOURNAL 55
‘The market is going to experience pain over the next 24 months as there is a releasing of space. It definitely is another shift in the market. But at the end of the day you’ll look back and say, “We have a lot of new tenants,” but we have to get there.’ BILL BLOODGOOD, CB Richard Ellis Group Inc. Real Estate: Defense Leaves South Bay at a Loss “Vacancy of buildings that are greater than Continued from page 1 100,000 square feet has a huge impact because there isn’t anybody out there to occupy those was cheaper,” said Rhythm & Hues Chief buildings,” he said. “The kinds of space they Financial Officer David Weinberg. “We were are vacating are larger spaces and those spaces two miles north of LAX and now we’re a mile are not readily adaptable for multitenant uses south, so it wasn’t that much of a move.” so the bulk of those buildings look for large The company spent $26 million to acquire tenants.” its 100,000-square-foot headquarters, as well as two buildings totaling just over 100,000 New users square feet, from Computer Sciences. However, Bloodgood said that the area may However, with the 31 million-square-foot be able to attract new defense industry star- office market giving back nearly 390,000 square tups. He noted there is still a large concentra- feet of office space in the first quarter alone – the tion of defense businesses, and the Los Ange- most of any submarket in Los Angeles County – les Air Force Base remains on Aviation Boule- there is still a lot of empty space. vard in El Segundo. The market’s vacancy rate has risen 1.3 “It is where the contracts are administered points over the past year to 19.3 percent, while by the Air Force, so anyone doing business per-square-foot asking rents have fallen eight with the Air Force has a local presence. They cents to $2.19 just since January, according to all want to be in walking distance right around Grubb & Ellis Co. the base,” he said. “The market is going to experience pain over Nancy Sidhu, chief economist of the non- the next 24 months as there is a releasing of profit Los Angeles County Economic Devel- space,” said broker Bill Bloodgood, a senior opment Corp., said other tenants may be vice president at CB Richard Ellis Group Inc. attracted, noting the market hasn’t seen such who specializes in the South Bay. “It definitely cutbacks for years, and there are big blocks of is another shift in the market. But at the end of space newly available. the day you’ll look back and say, ‘We have a lot “The folks who own and manage those of new tenants,’ but we have to get there.” leased properties now have the opportunity to RINGO H.W./CHIU Moved In: Rhythm & Hues’ David Weinberg at his office in El Segundo. sell what sounds to me like fairly large blocks Defense déjà vu of space and into a market where there may be This is not the first time the region has some interest,” she said. experienced a cutback in aerospace. At its Rhythm & Hues fits into that category, by height in the late 1980s, the aerospace industry taking 200,000 feet off the market in its head- employed about a quarter-million workers quarters deal. It has leased back one of the countywide, with the epicenter in the South smaller buildings to Computer Sciences, while Bay. By the mid-1990s, employment had been the third building is virtually unoccupied. cut in half due to Defense budget cuts after the The deal was completed in 2009 after Com- end of the Cold War. puter Sciences announced it was moving to It took nearly seven years for the real estate Virginia, and Rhythm & Hues moved in less market to recover, Bloodgood said, as multiple than a year ago. CFO Weinberg said the move companies went out of business. For example, has worked out well. tactical missile manufacturers fell from 13 to “When you walk around the area, it feels five and satellite manufacturers from eight to Northrop Grumman offices Boeing Co. offices somewhat diverse; it doesn’t feel like just four. Eventually, some of the defense compa- defense contractors. But you go into the salad nies took some space back, and the area diver- Taking Off bar, and there are guys in fatigues. It takes sified. Media and entertainment companies some getting used to,” he said. About 1.24 million square feet of South Bay commercial real estate has been moved in, as did those in health care, finance Bob Tarnofsky is the director of real estate vacated by defense contractors since last year. and international trade. for Continental Development Corp., an El Square This time around, the employment losses Segundo real estate company that owns the Company Operation Address Vacated Footage aren’t nearly as great. For example, there were Apollo Street building. 37,000 workers employed countywide in aero- Boeing Co. B-1 and 4811 Airport Plaza Q1, 2010 126,000 In the early 1990s, Continental Develop- space products and parts manufacturing in Jan- Hercules programs Drive, Long Beach ment saw defense contractors TRW Inc. and uary 2010. That was down to 35,700 last Boeing Co. satellite division 2260 E. Imperial Q2, 2010 298,000 Hughes Electronics Defense vacate the entirety month. The figures are only partial, and do not Highway, El Segundo of a building in Continental Park, a large office cover, for example, defense-related engineer- complex it owns in El Segundo. The departure ing jobs. Still, the job losses have resulted in Boeing Co. satellite division 400 Continental Blvd., 2010 102,000 posed some odd challenges. significant vacancies. El Segundo “An aerospace and defense office, because Computer Sciences has been pulling back Northrop information 222 W. Sixth St., Q3-4, 2010 186,000 of the issues of security and in certain cases from the county since it announced in January Grumman Corp. systems/corporate San Pedro secrecy, would often be found with no win- 2008 it was moving its headquarters to Falls dows, and the modern-day office with signifi- Church, Va. The company has vacated well Northrop satellite and space 1230-1240 Rosecrans Q1 2011 215,000 cant natural light is the polar opposite,” over 100,000 square feet since then. Grumman Corp. station operations Ave., El Segundo Tarnofsky said. Similarly, Northrop announced last year Raytheon Co. undisclosed 800 Apollo St., Q1-2 2011 190,000 The company spent millions to renovate the that it was moving its headquarters from El Segundo building and market it to a new nondefense- Century City to the Washington, D.C., area Raytheon Co. R&D/office 2175 E. Park Place, Q3-4 2010 120,000 oriented company. It landed oil company Uno- to be closer to its prime customer: the U.S. El Segundo cal Corp., which moved its headquarters from government. Compiled by Jacquelyn Ryan downtown Los Angeles to El Segundo. The company retains major operations in Tarnofsky is facing the same choice today the county, but last year vacated 186,000 with his 800 Apollo building. Interior modifi- square feet in San Pedro, where it had corpo- East, where 350 workers have been employed. Waltham, Mass. but has a 1 million-square- cation could cost about $60 per square foot. rate and information systems jobs. It vacated Boeing also continues to have major opera- foot campus in El Segundo, abandoned His company is debating its options, but said an additional 215,000 square feet early this tions in the county, but after a slowdown in 198,000 square feet at 800 Apollo St. in the he’s in negotiations with a few interested com- year in El Segundo, where it had satellite and satellite orders, it laid off 400 workers in El city. It was working on a highly classified pro- panies. space station operations. Segundo, and vacated 400,000 square feet in ject and has disclosed little about the departure. “We’re trying to think a little out of the box Meanwhile, it laid off 500 county employ- the city at satellite-division offices at 2260 E. Steve Cramer, a managing director at Jones and get creative with adaptive reuses for the ees in finance and human relations positions, Imperial Highway and 400 Continental Blvd. Lang LaSalle Inc., believes there is still going site,” said Tarnofsky. “The days of just plop- and this summer is set to vacate its 140,000- Some of the departures are more difficult to to be a large amount of empty real estate in the ping one big aerospace or defense user into a square-foot headquarters at 1840 Century Park track. Raytheon Co., which is based in South Bay for a while. building have been gone for a while.” 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
56 LOS ANGELES BUSINESS JOURNAL MAY 30, 2011 Energy: Plant Fuel Company Sows Seeds for IPO technology but limited sales. However, he of oil or natural gas dips low, it makes no company from promoting an IPO during the Continued from page 1 thinks the IPO should proceed successfully sense to plant sorghum because hydrocarbon quiet period after a prospectus filing. because Wall Street likes clean energy. fuels are more economical. Also, if the farmer Financially, the company resembles many mobiles and electricity generation plants. “The market is very receptive to this right plants sugarcane, he can sell his harvest to other startups. In fiscal 2010, Ceres reported a The company recently completed its first now with the high price of oil and high hopes either food companies or electricity plants, loss of $22.6 million on revenue of $6.3 million. commercial planting of genetically modified for biofuels,” he said. “There have been a depending on the price of table sugar. But Since its founding in 1996, the company has sweet sorghum in Brazil. The South American number of IPOs announced. Now is a great sorghum, which is used to make molasses, is accumulated a deficit of nearly $188 million. nation is a leader in using ethanol fuel derived window to get into the market.” not widely used as a food for humans so the “We expect to incur additional losses for at from sugarcane. However, seasonal weather Riggs Eckelberry, Chief Executive of Orig- farmer loses that flexibility. least the next several years as we continue to invest limits the sugarcane crop to about 200 days a inOil Inc. in Los Angeles, an alternative ener- “That’s a risk for Ceres, at least in the short in our research and development programs, to year. As a result, Brazil’s ethanol-based elec- gy company that went public in 2008, said the and medium term,” Zalkin said. develop new products and to move forward with tricity plants run out of fuel and shut down for timing is right for Ceres’ IPO. Finally, the conversion of the U.S. market to our commercialization,” the prospectus states. about five months of the year. By using Ceres’ “They are at the stage when capital require- sorghum may run afoul of corn growers, who The company has sustained itself with capital sorghum, the electric plants could produce for ments explode,” Eckelberry said. “There’s have established their crop as the main source of from large institutional investors. They include several additional months because the plant is money out there for companies in this space, ethanol in the United States. Zalkin said corn is Artal Luxembourg in Luxembourg, which owns hardier and grows faster than sugar. and I think Ceres is going to do well.” not a particularly efficient source for energy, but 18 percent of the company’s equity; New York- “Our largest immediate commercial oppor- However, risks for Ceres include whether the political power of corn growers may restrict based Warburg Pincus with 16 percent; and tunity is the Brazilian ethanol market,” the farmers will adopt the technology, the govern- development of alternate biofuels. Boston’s Oxford Bioscience with 11 percent. prospectus states. “The seed-based propaga- ment will support sorghum as an ethanol Also, Monsanto Co. in St. Louis. a giant in the tion, shorter growing cycle and lower water source, and the economics of sugarcane and oil Plant money seed industry, owns 6.4 percent of the company. and fertilizer requirements of sweet sorghum play out in its favor. The prospectus devoted Ceres plans to use the proceeds from the IPO Directors and officers of the company own 36 relative to sugarcane will serve as the basis for 25 pages to explaining these risk factors. on seed research and commercialization, percent of the equity, including a 4.2 percent stake expanded adoption of this product line.” Zalkin said that the risk disclosures in IPO according to its prospectus. The stock will trade owned by Chief Executive Richard Hamilton. Ceres plans to expand its sales in Brazil to documents are often boilerplate lawyer speak, on the Nasdaq Global Market under the symbol Eckelberry at OriginOil, who is not prove the economic viability of sorghum for but this one had entertainment value. CERE. The offering is being underwritten by involved in Ceres, believes investors and exec- ethanol production. Then the company hopes “It’s one of the funnier risk sections I’ve Goldman Sachs & Co. and Barclays Capital. utives will be rewarded. to convince electricity and gasoline producers ever read,” said Zalkin. “Clearly, they don’t The filing with the Securities and Exchange “People say this market for energy compa- in the United States and elsewhere to adopt the know how their product will work on the mar- Commission did not include a date, number of nies is like the late 1990s for the Internet, but Brazilian model. ket. When they’ve done it in the lab it works, shares or estimated price for the stock issue. How- it’s not,” Eckelberry said. “We are in the early Seth Zalkin, managing partner at merger but what happens when you get out in the ever, the filing said the company expects proceeds stages and eventually the frenzy will be greater and acquisition advisory firm Astor Group in field? I think it will work, but it’s risky.” from the IPO will total as much as $100 million. than the dot-com market ever was. People are Rio de Janiero, Brazil, and an expert on clean Zalkin noted that Ceres is dependent on The company declined a request for an putting their markers down and now Ceres will energy investments, said Ceres has interesting Brazilian farmers buying the seeds. If the price interview, citing regulations that prohibit a have its market position.” Commerce: Texas Looks to Corral L.A. Businesses tion, high earners in particular like the fact that Continued from page 1 Key Indicators: Austin vs. Los Angeles Texas has no individual income tax. Austin Los Angeles Earlier this year, the Greater Austin Chamber Category Metro Area County Tough challenge of Commerce hired an Irvine consulting compa- “It’s a very hard task to compete with costs Median home price (2010 average) $193,500 $346,800 ny to spread the word throughout California. and incentives from other states and out-of-state Unemployment rate (March 2011) 6.8% 12.1% “We are talking to at least 10 companies cities,” said Robert Swayze, vice president for every month, with more than half of them in Job growth (March 2010-11) 1.8% 0.7% economic development at the non-profit Los Southern California,” said Jim Renzas, principal Median household income (2009) $56,218 $54,467 Angeles County Economic Development Corp. of that consultancy, RSH Consulting Group. Median annual salary for managers (2010) $45,000 $51,400 Swayze said that the LAEDC has stepped The Lone Star State has long been exploit- Median annual salary for computer specialists (2010) $37,210 $37,280 up efforts to contact local companies in order ing the high levels of dissatisfaction among Sources: Greater Austin Chamber of Commerce, Kosmont Cost of Doing Business Survey to find out how to keep them here. The organi- L.A.-area business owners over the cost of zation has used Dun & Bradstreet Co. guides doing business, from high labor and property and into the arms of cities such as Austin,” said why we decided to hire RSH.” and other financial data to target about 2,000 costs to onerous government regulations and Tracy Rafter, chief executive of the Los Ange- One of those companies is Coalition Tech- firms that appear to be in financial difficulty. endless red tape at city hall. But it sees a par- les County Business Federation, which repre- nologies, which Gross launched two years ago “We ask them if they’ve been contacted by ticularly good opening now. sents more than 70 local chambers of commerce out of his Venice apartment after moving from any other states or out-of-state cities and Texas Part of the reason is and other business organizations. Seattle. Gross, 27, has a close friend from San is the No. 1 reference,” he said. the better economy Francisco who last year decided to move his LAEDC business retention specialists try to there. Texas has added Luring businesses tech business to Austin. steer local companies to local resources to help jobs at a 2.5 percent clip Austin officials have a good track record in “He has been constantly telling me how much them stabilize their finances so they can in the past year while luring local companies: Since 2005, a dozen com- cheaper everything is in Austin, that he’s had no remain in the region. They also remind busi- California has seen less panies from Los Angeles County have set up shop problem finding top-notch talent and that the ness owners about the markets in the L.A. than a 1 percent increase in Austin, bringing with them roughly 2,000 jobs. government there is a whole lot easier to work region, the easy access to the Pacific Rim and in payroll jobs. The Glendale-based LegalZoom.com Inc., an with than anywhere in California,” Gross said. a well-educated local work force. unemployment rate in online legal document company, opened an So, Gross contacted the Austin The LAEDC has also brought Texas stands at 8 per- office in Austin last year that has since grown chamber about two months ago. back the “red teams” that first Gross cent; California’s is to more than 100 employees. LegalZoom Pres- He learned that the cost of running LABJ appeared during the recession of close to 12 percent and L.A.’s is 12.1 percent. ident Frank Monestere said last week the com- a business in Austin can be 20 per- FORUM the 1990s. These are teams of local Another reason: California’s assault on pany is slightly ahead of schedule with its plan cent to 40 percent cheaper than in and state economic development Will Texas lure Vernon. Texas Gov. Rick Perry last month to bring its Austin office up to 600 employees Los Angeles. officials convened to address con- many more L.A. sent dozens of e-mails to manufacturers in within five years. Meanwhile, housing prices are sig- cerns of a specific company; they companies? Vernon, a tiny industrial city just south of Monestere said LegalZoom chose Austin nificantly lower, and that’s a key fac- come up with a specially tailored PAGE 58 downtown Los Angeles that California law- for its major expansion because of the city’s tor in the lower cost of labor in Austin. incentive package aimed at allow- makers are considering dissolving. Businesses well-educated and young work force, its sub- According to the Austin chamber, ing the company to remain or there fear that disincorporation would end the stantially cheaper cost of doing business, and $50,000 in after-tax earnings in Austin buys the expand within the county. business-friendly environment and sharply strong outreach from local and state officials. same standard of living as $70,000 in after-tax “We knock down every issue that we can in drive up the cost of doing business. “They have a genuine interest in the wel- earnings in Los Angeles. these retention cases,” Swayze said. “But Local business leaders and economic devel- fare of our company, and that’s refreshing,” What’s more, because Texas has no corpo- there’s only so much you can do when you opment officials are trying to fight the Texas Monestere said. rate income and business gross receipts taxes, can’t compete on basic costs and there’s very assault, but they are hampered by the region’s For each of the last several years, Austin Austin is ranked in the cheapest category for limited help from Sacramento.” inherently high land and labor costs. Making chamber executives had been making more taxes and fees on business nationally, while As for Coalition Technologies’ Gross, he matters worse, they say, is a general attitude than a dozen trips to California in search of Los Angeles, Culver City and Santa Monica hasn’t decided if he will move his business to among California and local officials of taking companies to lure to Austin. are in the highest category, according to the Austin. He wants to add 10 employees per year business for granted and heaping new taxes The contract with RSH marks a more 2010 Cost of Doing Business Survey from for the next five years. He’s considering a site and fees on companies. aggressive approach. Kosmont Cos. and the Rose Institute of Local in Culver City, which would allow him to “There will come a time when California’s “We continue to see a pickup in the number Government at Claremont-McKenna College. remain in his Venice apartment. But he’s lean- seemingly ceaseless stream of new regulations of companies expressing interest in relocating As if that weren’t enough, Austin has an ing heavily toward Austin. and fiscal crises – and the permitting delays, or expanding in the Austin metro area,” said incentive program through which companies “I love the beach, but at this point that’s proba- taxes and fees that are continually thrown at David Porter, the Austin chamber’s senior vice that open offices in the city can get up to bly not enough to keep me here,” he said. “It’s just business – will drive companies out of this state president of economic development. “So that’s $7,500 in tax credits per job created. In addi- so much cheaper on all fronts to be in Austin.” 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
MAY 30, 2011 INDEX LOS ANGELES BUSINESS JOURNAL 57
‘I had no idea ‘When we launched ‘I screamed a lot; who he was.’ we were a one- I’m French; I CHICKIE LEVENTHAL, legged pony by express myself.’ Chickie’s Bail Bonds, only selling through LUDO LEFEBVRE, on bailing out boutiques.’ LudoBites, on his Phil Spector, JULIANA LUTZI, reality TV appeal, PAGE 3 Pure Style Girlfriends PAGE 14 PAGE 8
PEOPLE F Klausner, Gary ...... 5 P Simon, David ...... 47 Finnegan, Philip ...... 1/54 Passard, Alain ...... 14/16 Solomon, Andy ...... 5 Flanagan, Dave ...... 6 Perez, John ...... 58 L Sorell, Steven ...... 58 Lefebvre, Krissy ...... 14/16 Perry, Rick ...... 1/56 B Soto, Joe ...... 12 G Phillips, Brent ...... 12 Bazylevsky, Bo ...... 6 Lefebvre, Ludovic 'Ludo' ...... 14/16 Gagnaire, Pierre ...... 14/16 Pietrini, Jill ...... 3 Strickfaden, Chris ...... 47 Berdakin, Diego ...... 5 Leventhal, Chickie ...... 3 Gimenez, Francisco ...... 3 Porter, David ...... 1/56 Swayze, Robert ...... 1/56 Berman, Josh ...... 5 Lindsey, Gina Marie ...... 59 Goldsmith, Russell ...... 59 Prabhakar, Hitha ...... 5 Bloodgood, Bill ...... 1/55 Lugosi, Jeff ...... 47 Sweeney, Jim ...... 1/54 Good, Greg ...... 58 Prince, Christopher ...... 5 Bosworth, Kate ...... 5 Lutzi, Juliana ...... 8 Grewal, Hardy ...... 7 Griffith, Thomas D...... 58 Q T M C Gross, Joel ...... 1/56 Quinn, Vera ...... 3 Tarnofsky, Bob ...... 1/55 Chin, Martin ...... 12 Gunderson, Dave ...... 12 Mallen, Barry ...... 3 Coulter, Cher ...... 5 Mann, Alfred ...... 12 R V Marley, Rohan ...... 3 Cramer, Steve ...... 1/55 H Rafter, Tracy ...... 1/56 Marley, Ziggy ...... 3 Villaraigosa, Antonio ...... 5, 59 Crawford, Mark F...... 58 Hamilton, Richard ...... 1/56 Renzas, Jim ...... 1/56 Cunningham, Steve ...... 6 Hatchell, Sharon ...... 12 Marsh, James ...... 7 Roberts, Alan ...... 47 Meneau, Marc ...... 14/16 Rodriguez, Patrick ...... 12 W Meruelo, Richard ...... 5 D K Weinberg, David ...... 1/55 Monestere, Frank ...... 1/56 Derycz, Peter ...... 12 Kardashian, Kim ...... 5 S Williams, Lori ...... 58 Mourad, Tamim ...... 3 Kasting, Bill ...... 1/54 Schelble, Kim ...... 12 Winston, Bruce ...... 8 E Kaufman, Victoria ...... 5 Serletic, Matt ...... 6 Eckelberry, Riggs ...... 1/56 Kemp, Michael ...... 58 O Shawa, Paula ...... 1/54 Edelman, Matt ...... 5 Kim, Jason ...... 12 Olsen, Ashley ...... 5 Sidhu, Nancy ...... 1/54, 1/55 Z Elgin, Jeff ...... 7 Kitson, Fraser Ross ...... 58 Olsen, Mary Kate ...... 5 Sifton, Sam ...... 14/16 Zalkin, Seth ...... 1/56
COMPANIES, Citigroup Inc...... 12 Gruppo Coin ...... 8 LW and Associates ...... 58 Renaissance Food Group LLC ...... 13 City National Corp...... 12, 58 Guess Inc...... 13 ASSOCIATIONS, ETC. Rhythm & Hues Studios Inc...... 1/55 Claremont-McKenna College ...... 1/56 M RLJ Lodging Trust ...... 47 Coalition Technologies ...... 1/56 H Macquarie Group Ltd...... 4 RSH Consulting Group ...... 1/56 Colliers PKF Consulting ...... 47 Harmonix Music Systems Inc...... 6 Makor Group International ...... 8 1 - 9 Computer Sciences Corp...... 1/55 Hartland Asset Management ...... 5 Manatt Phelps & Phillips LLP ...... 3 S 99 Cents Only Stores ...... 13 Consumer Electronics Show ...... 6 HauteLook Inc...... 5 MannKind Inc...... 12 ShoeDazzle.com Inc...... 5 Continental Development Corp...... 1/55 Hilton Hotels Corp...... 47 Mattel Inc...... 13 Sony Corp...... 7 A CoStar Group ...... 47 Hi-Tech Crime Solutions ...... 1/55 MGA Entertainment Inc...... 13 Sorell Law Group ...... 58 Activision Blizzard Inc...... 6 Crawford Park Financial Inc...... 58 Michael Kemp Architects ...... 58 Starbucks Corp...... 7 Credit Union of Southern California . . . .12 Adreessen Horowitz ...... 5 I Monsanto Co...... 1/56 Style File Group ...... 5 Cydcor Inc...... 3 AeroVironment Inc...... 1/54, 4 IGN Entertainment ...... 13 Music Mastermind Inc...... 6 Subway ...... 7 AMC Entertainment Inc...... 7 Impact Manufacturing ...... 4 D Artal Luxembourg S.A...... 1/56 Inland Empire Credit Union ...... 12 N T Derycz Scientific Inc...... 12 National Instruments Corp...... 13 Astor Group ...... 1/56 Intel Corp...... 6 T5 Partners ...... 47 Direct2Drive.com ...... 13 New York Times ...... 14/16 ATK Aerospace Systems ...... 1/54 Intelligent Beauty Inc...... 5 TA Aerospace ...... 1/54 Avela Inc...... 3 DirecTv ...... 47 Intuition ...... 8 News Corp...... 13 Target Corp...... 3 AWR Corp...... 13 Nordstrom Inc...... 5 Techniques Appliquees Northrop Grumman Corp...... 1/54, 1/55 E J aux Arts Graphiques ...... 12 Eastdill Secured ...... 47 B Jones Lang LaSalle Inc...... 1/55, 47 ThisNext Inc...... 5 ESalon LLC ...... 3 O Bank of America Corp...... 12 Tracy Ross ...... 8 Esterline Technologies ...... 1/54 OhCal Foods Inc...... 7 Barclays Capital Finance Ltd...... 1/56 K Trinity Capital LLC ...... 12 Base Partners Inc...... 47 Evolve Media Corp...... 4 Kitson ...... 58 OriginOil Inc...... 1/56 Bastide ...... 14/16 Excel National Bank ...... 12 Kosmont Cos...... 1/56 Oxford Bioscience Partners LP ...... 1/56 U BeachMint Inc...... 5 U.S. Food and Drug Administration . . . .12 BMW of North America LLC ...... 4 F P L U.S. Small Business Administration . . . .12 Boeing Co...... 1/54, 1/55 Fire Solutions ...... 8 Palmer Group Inc...... 8 Learning Tree International Inc...... 1/55 UnionBanCal Corp...... 12 Broadreach Capital Partners ...... 47 Fleetwood-Fibre Piper Jaffray & Co...... 7 LegalZooom.com Inc...... 1/56 USC Gould School of Law ...... 58 BT Infonet ...... 47 Packaging & Graphics Inc...... 4 PriceGrabber.com Inc...... 3 Liberty Global Inc...... 6 USC Thornton School of Music ...... 6 FranChoice ...... 7 L'Orangerie ...... 14/16 Pure Style Girlfriends ...... 8 C Fred Segal ...... 8 Los Angeles Alliance Cache Inc...... 8 for a New Economy ...... 58 Q V Calavo Growers Inc...... 13 G Los Angeles Coalition QSR Systems ...... 4 Veggie Grill ...... 4 California Pizza Kitchen Inc...... 13 GameFly Inc...... 13 for the Economy and Jobs ...... 59 Quallion LLC ...... 4 CB Richard Ellis Group Inc...... 1/55, 5 GLL Real Estate Partners Inc...... 47 Los Angeles County W Center Financial Corp...... 12 Golden Gate Capital ...... 13 Business Federation ...... 1/56 R Wal-Mart Stores Inc...... 3 Ceres Inc...... 1/56 Goldman, Sachs & Co...... 1/56 Los Angeles County Economic Raytheon Co...... 1/55 Walt Disney Co...... 13 Charlestown Capital Adivosrs LLC ...... 5 Gram & Papa's ...... 14/16 Development Corp...... 1/54, 1/56 RealD Inc...... 7 Warburg Pincus LLC ...... 1/56 Chickie’s Bail Bonds ...... 3 Greater Austin Los Angeles Times ...... 14/16 Regal Capital Advisors LLC ...... 4 WholesomeBabyFood.com ...... 4 CIM Group LP ...... 47 Chamber of Commerce ...... 1/56 LudoBites ...... 14/16 Regal Entertainment Group ...... 7 Wilshire Bancorp Inc...... 12
These indexes list the people, businesses, associations, organizations, schools, etc., that are named in this week's issue. The numbers refer to the page on which the name is found. Numbers with slashes refer to pages on which lengthier articles are located that contain the name. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
58 LOS ANGELES BUSINESS JOURNAL COMMENTARY MAY 30, 2011 LOS ANGELES BUSINESS JOURNAL ® High Price of Mass Appeal 5700 WILSHIRE BLVD., SUITE 170, LOS ANGELES, CA 90036 HEN I read the article last week about the chance to see some starlet – or at least a TMZ aren’t state lawmakers trying to disincorporate the (323) 549-5225 FAX 549-5255 how the owner of Kitson had decided to cameraman waiting to see some starlet. City of Industry? www.labusinessjournal.com open stores around the world, my first The more shops that Kitson opens in more far- I mean, many political types are arguing hard to W PUBLISHER & CEO impression was, “Of course. It’s about time.” flung locations, the more it dilutes that magic. disband Vernon. It’s a company town, they claim, MATTHEW A. TOLEDO After all, for such a small opera- Celebrities, if only local ones, may be masquerading as a city. There are only a few resi- [email protected] | ext. 207 tion, Kitson has a huge name. Starlets drawn to Kitson shops in other cities – dents, and they are beholden to city officials, who and wannabe celebrities flock to the but only so long as the shops are rare. have entrenched themselves in power as much as EDITOR CHARLES CRUMPLEY flagship store on Robertson Boule- I could see two or three shops each in they’ve enriched themselves financially, or so the [email protected] | ext. 208 vard with paparazzi waiting outside. New York, Paris and Tokyo. I could story goes. DESIGN DIRECTOR Young shoppers all over the world see a shop or two in Chicago; Singa- But state lawmakers could make much the same ROBERT LANDRY [email protected] | ext. 243 have seen the name in magazines and pore; and Sao Paulo, Brazil. case against the nearby City of Industry. It, too, is a MANAGING EDITOR websites, and are probably eager to Add up all the possible sites, it company town with a few residents and an LAURENCE DARMIENTO see what a local Kitson has in store totals dozens, perhaps 60 or 70 shops entrenched power structure. And some of those [email protected] | ext. 200 for them. worldwide. elected types have gotten big money from deals DEPUTY MANAGING EDITOR STEVE SILKIN A Kitson expansion is the kind of But if Kitson opens 200 stores, that that appear cozy. [email protected] | ext. 229 obvious potential that you don’t see COMMENT means it’s ganging up shops in top But when Assembly Speaker John Perez wrote NEWSDESK EDITOR TOM HICKS every day. Or even every year. cities and going into secondary mar- his disincorporation bill, he crafted it to target [email protected] | ext. 223 The article – by Alexa Hyland and kets. I mean, how much exclusivity cities with fewer than 150 residents. That affects CHARLES REPORTERS headlined “Refashioning” in the May will Kitson have if its opens its third only one city: Vernon. Industry, which only has SAM BENNETT 23 issue of the Business Journal – CRUMPLEY shop in Cleveland? How many starlets 50-some houses but more than 150 residents, was [email protected] | ext. 263 RICHARD CLOUGH went on to say that executives plan to would Kitson expect to see in a subur- off the hook. [email protected] | ext. 251 open 200 stores in major markets worldwide. ban mall in Anytown, USA? So why not Industry? DEBORAH CROWE Wait a minute. Two hundred stores? The store’s founder, Fraser Kitson Ross, is a I wonder if it has something to do with the fact [email protected] | ext. 232 HOWARD FINE Maybe it’s just me, but that number seems brilliant marketer and he has assembled some that billionaire Ed Roski Jr. is a power broker in [email protected] | ext. 227 high. Quite high. Like maybe three or four times smart, experienced executives. Maybe they’ll suc- Industry – as well as a big political donor in Sacra- GREG HERNANDEZ too high. ceed. Still, it will be a true challenge for them to mento. [email protected] | ext. 226 ALEXA HYLAND Think about it. What does Kitson sell, really? pull off the tricky feat of making Kitson available I really don’t know. Just wondering. [email protected] | ext. 235 Sure it sells trendy apparel. That’s where it makes to the masses without killing its exclusivity. ALFRED LEE money. But lots of stores sell that. Kitson is really Charles Crumpley is editor of the [email protected] | ext. 221 NATALIE JARVEY selling something special and rare. It’s selling • • • Business Journal. He can be reached at [email protected] | ext. 230 exclusivity. Hollywood glamour. It offers shoppers Here’s something I’m wondering about: Why [email protected]. JOEL RUSSELL [email protected] | ext. 237 JACQUELYN RYAN [email protected] | ext. 228 VISITING FELLOW LABJ FORUM HEEJIN PARK [email protected] | ext. 241 CHIEF EDITORIAL PHOTOGRAPHER Will Texas be able RINGO H.W. CHIU Poaching L.A. companies has become a popular pursuit for the Lone Star State. [email protected] | ext. 256 to lure many more Austin The Austin Chamber of Commerce recently hired a regional consultant to woo RESEARCH DIRECTOR businesses (see story on page 1). So the Business Journal asks: L.A. companies? DAVID NUSBAUM [email protected] | ext. 236 EDITORIAL ASSISTANT vs. L.A. JONATHAN POLAKOFF [email protected] | ext. 239
VICE PRESIDENT OF ADVERTISING MICHAEL KEMP exactly the types of businesses that California exodus. Business is going to choose the location that JOSH SCHIMMELS [email protected] | ext. 218 Principal would like to have, an Internet services business will maximize profits. That includes access to trans- ASSOCIATE SALES MANAGER Michael Kemp Architects and the other an organic food processor. portation, an educated population and government DARRIN SENNOTT Yes, the business climate services. Because of Proposition 13, California relies [email protected] | ext. 220 ADVERTISING ACCOUNT there is irresistible. Texas has LORI WILLIAMS heavily on business taxes, rather than property taxes, MANAGERS an extremely positive attitude Owner and that’s something that should probably be fixed. JESSICA ANNAS toward business, a readily LW and Associates [email protected] | ext. 240 MICHELLE GIUNTA available work force that is Yes, but only if the decision is based solely on MARK F. CRAWFORD [email protected] | ext. 214 enthusiastic and hard-working, business factors and not lifestyle choices. I was a President MICHAEL KOSASKY and an attractive and afford- company owner in Texas for 11 years prior to relo- Crawford Park Financial Inc. [email protected] | ext. 253 BILL MOIR able housing market. I believe cating to California 10 years ago. I can say the Texas Businesses will move if they can, of course. [email protected] | ext. 216 many more California compa- business environment is more conducive to growth. Our business has three people, and we are required ROSZ MURRAY Kemp nies, in this increasingly com- by the state to submit over 35 filings and reports. [email protected] | ext. 215 JIM SLATER petitive economic climate, will have to seriously THOMAS D. GRIFFITH These reports are not used to better serve the pub- [email protected] | ext. 209 consider moving there. Professor lic, they are used to extract penalties and fees from SPECIAL EVENTS/ USC Gould School of Law California businesses to pay the salaries and retire- ADVERTISING COORDINATOR MARISSA DE LA CRUZ STEVEN SORELL I don’t see anything that would suggest a mass ment benefits of government employees. [email protected] | ext. 213 Principal PRODUCTION ARTISTS Sorell Law Group SALLY FOSTER I can’t comment directly on Texas, but I can [email protected] | ext. 212 PATTY TSAI-CHU say that in the last year I have had several client [email protected] | ext. 242 companies move to Nevada for tax and regulatory CIRCULATION DIRECTOR relief. It’s distressing because two of them were MICHAEL LEVINE [email protected] | ext. 247
CUSTOMER SERVICE LE MILLHAUSER [email protected] | ext. 245 Los Angeles Business Journal Poll ZAINABU BRYANT [email protected] | ext. 244 Will Texas be able to lure many more L.A. companies? CONTROLLER No. Those NANCY SCHWARTZ Not too that wanted [email protected] | ext. 202 many to move ACCOUNTS RECEIVABLE more. already have. SPECIALIST PATRICIA A. BENSON 31% 12% [email protected] | ext. 231 ASSISTANTS TO THE PUBLISHER BETH THERIAC [email protected] | ext. 249 PAUL KNEZEVIC [email protected] | ext. 203 57% Yes. The RECEPTIONIST ERIN SCHAUER business [email protected] | ext. 270 climate is irresistible. CITY BUSINESS JOURNALS Online results for week ended May 25 NETWORK 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
MAY 30, 2011 COMMENTARY LOS ANGELES BUSINESS JOURNAL 59 Getting LAX Off the Ground Much needed renovations to the airport could provide a lift to L.A.’s tourism and trade industries.
By RUSSELL GOLDSMITH The growing HIS summer, millions of travelers will board flights to and from Los Angeles. Many of them will come here consumer and T hoping to enjoy our city’s unique creative energy and business demand to lifestyle – its world-famous beaches, amusement parks, recre- travel and trade ational activities, shops and cultural attractions. goods around the These travelers could contribute significantly to our local economy. But first, they will step into an airport that hasn’t nation and the been fully renovated since Ronald Reagan was president and world requires a our city was preparing for the 1984 Olympics. And it shows. 21st century airport From London and Shanghai to Dubai and Denver, the to accommodate world’s leading cities are making the investments necessary to compete for the critical economic benefits that accompany 21st century aircraft international trade and tourism. safely and efficiently. Ours is a 21st century city that must have a 21st century air- port – one that is capable of accommodating more travelers and larger, more fuel-efficient aircraft, safely, productively and in style. A decade ago, only two other airports in the world received more visitors than Los Angeles International Airport, but now our airport ranks sixth. With unemployment in Los Angeles hovering around 12 percent, we can’t afford to lose Flight Path: Signage at Los Angeles International Airport. more ground. Also at risk is L.A.’s vital share of international trade. Each year, LAX handles some $80 billion of high-value products and impression of Los Angeles and for some, the entire United ily to the Metropolitan Transportation Authority’s growing merchandise – from custom handbags to iPads. But today many States, with outdated restrooms, inferior restaurants and shops, transportation network and other destinations throughout the planes have the fuel capacity to fly past LAX and distribute confusing walkways, inadequate and outdated lounges, and no region. Public rail to LAX has been in discussion for more than their cargo through other U.S. cities. signage in multiple languages. Los Angeles is one of the world’s 20 years and getting it done is overdue. The mayor’s 30/10 pro- LAX is critical to the economy and quality of life in Los Ange- top economic and cultural communities, and LAX should show- posal would provide the funds to expedite this extension ($330 les and this region of 15 million people. The airport is responsible case its unique brands, attractions, theaters, businesses, restau- million is already committed to the estimated $600 million price – directly or indirectly – for one of every 20 jobs here. rants, museums and landmarks, and how to get to them. tag). Eventually, a traveler should be able to land at LAX, hop The good news is that for the first time since 1984 some signif- • Necessary improvements to increase safety and productivi- on a rail line and travel rapidly to downtown Los Angeles, the icant progress is being made – thanks to the strong leadership of ty, specifically moving the north runway Westside, the San Fernando Valley and even on to Disneyland Mayor Antonio Villaraigosa and his airport’s executive director, The growing consumer and business demand to travel and and Long Beach, without getting on the freeway. Gina Marie Lindsey. Most notable are the new international termi- trade goods around the nation and the world requires a 21st cen- Only with a truly world-class airport will Los Angeles nal now being built and the new concessionaires on the way. But tury airport to accommodate 21st century aircraft safely and maintain its rightful place as a truly world-class region that despite the improvements, much more needs to be done at LAX. efficiently. Local businesses and our region’s huge logistics commands respect, attracts abundant trade and tourism, and The Los Angeles Coalition for the Economy and Jobs, a industry need a fully modern LAX to interact rapidly and com- fully meets the needs of citizens and businesses in Southern group of regional leaders from the business, labor, academic petitively with the global marketplace. On the north airfield, California. and non-profit sectors, believes there are three top priorities that there needs to be greater separation between the two runways, The ability of Los Angeles to lead and to thrive in the 21st must be addressed urgently: and a center line taxiway needs to be built in between for opti- century global economy requires that these three additional pri- • A much better customer experience mal safety reasons and to increase productivity of the airport. orities be embraced and executed promptly. Domestic and international visitors using LAX contribute As we saw with the April accident in New York, the A-380 and nearly $9 billion to the L.A. economy; $4 billion alone from 747-8 require more space. Russell Goldsmith, chairman and chief executive of City international visitors. Roughly 60 million people walk through • Improving public transit connections, especially extending National Bank, is also chairman of the Los Angeles Coalition LAX’s terminals each year, and we need to provide customers the Green Line for the Economy and Jobs, a non-profit that helps develop and with a world-class arrival-and-departure experience - curbside to Extending the Green Line to LAX will allow travelers and advance policies that produce long-term economic and job aircraft in every terminal. LAX’s terminals provide a dismal first employees of the airport to connect much more quickly and eas- growth. L.A.’s Current Trash System Is a Big Heap
By GREG GOOD Puente Hills landfill – the second largest in the country – has less than $100 for the same service plan. historically charged L.A. waste haulers artificially low dumping Some argue that this disparity is simply a matter of hard bar- HE Business Journal recently ran a story describing fees, helping to keep “tipping fees” at the region’s other land- gaining – and haphazard rates are no reason for change. However, efforts to transform L.A.’s commercial and multifamily fills in check. However, Puente Hills will close in 2013. So, we these disparities are emblematic of a commercial waste system in T waste market. (“Foes Pile Up on L.A. Trash Plan,” April can expect those depressed fees to disappear and haulers to pass dire need of evolution – and as a matter of public policy, the city 18.) Unfortunately, the Business Journal undersold a crucial the increased landfill costs on to customers. and business community should ensure fairness in fixed costs for piece of the story. small businesses. Large companies and apartment owners have The cost of trash in Los Angeles is on the way up – and with- Costs to Angelenos multiple properties and waste volume that afford them pricing out strategic action, small businesses and apartment buildings are Finally, the current system imposes other costs on all Ange- leverage when soliciting bids. Small businesses don’t have that going to pay the bill. A competitive franchise system for the com- lenos – unnecessary emissions, wear and tear on city streets, bargaining power and are subsidizing the bigger companies’ rates. mercial and multifamily market provides the best protection for traffic congestion, and a general lack of accountability. If you In advocating for the status quo, the city’s well-heeled busi- those ratepayers and the best path for our city to handle its waste. live on a block with apartment complexes, chances are you see ness community is throwing their smaller brethren under the The cost of waste will rise for L.A. businesses because the multiple trucks from multiple companies servicing adjacent proverbial garbage truck. They’re also throwing the rest of us permit system servicing commercial properties is inadequate for buildings every trash day. Permitted haulers service needlessly under there by urging the city to ignore the broader negative responding to imminent state regulation and rising landfill costs. overlapping routes, in many cases, with dirty diesel trucks. This impacts of the current system. Distinguishable from L.A.’s award-winning, city-run residential is a Wild West: Accountability and accurate auditing are virtu- Los Angeles is the second largest waste market in the country trash service, the existing permit system also results in quality- ally impossible, hauling companies realize no economies of and a lucrative place for waste companies to do business. Yet, of-life costs, such as too many dirty trucks, traffic congestion, scale (and pass those inefficiency costs on to customers), and we’re not maximizing the potential of this asset for our city and and wear and tear on our streets. Angelenos pay with their health and quality of life. we’re not protecting the small businesses that will feel coming The origin of these costs is multifold. For starters, the Cali- In the face of these realities, the current system offers little changes in this industry most acutely. The city needs to get a fornia Global Warming Solutions Act (AB 32) will soon require protection or price stability – and for many customers, rates will hold of its commercial and multifamily waste system – not only all municipalities to ensure recycling services for commercial increase. In fact, some small businesses and small apartment to protect our air, maximize recycling and create good jobs, but buildings and apartment complexes. Under L.A.’s current sys- complexes are already being charged unfairly. The Don’t Waste to ensure fair rates for its small businesses and landlords. A com- tem, providing recycling in commercial or apartment buildings L.A. Coalition, 30 organizations calling for more recycling, petitive franchise system will make these things possible. is completely optional – so, predictably, many can’t recycle clean air and good jobs in L.A.’s commercial waste industry, where they work or live. With AB 32, recycling will no longer reviewed waste service bills for more than 70 small businesses Greg Good is director of the Don’t Waste L.A. Project at the be an option. This means additional costs. and apartment complexes. Within a three-mile radius, some Los Angeles Alliance for a New Economy, which advocates for Second, Los Angeles is losing its dominant public dump. customers were paying up to $400 a month while others paid good jobs, thriving communities and a healthier environment. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
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1 HEADLINES: Touching headlines leads you directly to the labj.com article. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
DIGITAL EDITION USERS GUIDE | PAGE JUMPS Los Angeles Business Journal digital edition provides links to navigate through pages and articles easily whether you are on your mobile device such as iPad and computer. With a the touch of your fi ngertips on the headlines, the digital edition will directly link you to the website where the article is placed and can be forwarded through email or copied and pasted on documents of choice.
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2 PAGE JUMPS: Touch jump tags leads you to and from the jump page 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
DIGITAL EDITION USERS GUIDE | ADVERTISING LINKS Los Angeles Business Journal digital edition provides links to navigate through pages and articles easily whether you are on your mobile device such as iPad and computer. With a the touch of your fi ngertips on the headlines, the digital edition will directly link you to the website where the article is placed and can be forwarded through email or copied and pasted on documents of choice.
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3 ADVERTISING LINKS: Touch hyperlinks leads you directly to the website 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
DIGITAL EDITION USERS GUIDE | TABLE OF CONTENTS PAGE Los Angeles Business Journal digital edition provides links to navigate through pages and articles easily whether you are on your mobile device such as iPad and computer. With a the touch of your fi ngertips on the headlines, the digital edition will directly link you to the website where the article is placed and can be forwarded through email or copied and pasted on documents of choice.
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4 TABLE OF CONTENT: Touch table of content teaser will jump directly to the page of the story. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
DIGITAL EDITION USERS GUIDE | NAVIGATION TOOLBAR Los Angeles Business Journal digital edition provides links to navigate through pages and articles easily whether you are on your mobile device such as iPad and computer. With a the touch of your fi ngertips on the headlines, the digital edition will directly link you to the website where the article is placed and can be forwarded through email or copied and pasted on documents of choice.
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5 NAVIGATION TOOLBAR: Touch navigation button to go to specifi c page indicated. iPad Only 'Thumbnails, LABJ User Guide, Front Page and Table of Contents will appear on iPad. Computer The entire navigation toolbar for computers will appear for expanded navigation options. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
DIGITAL EDITION USERS GUIDE | THUMBNAILS Los Angeles Business Journal digital edition provides links to navigate through pages and articles easily whether you are on your mobile device such as iPad and computer. With a the touch of your fi ngertips on the headlines, the digital edition will directly link you to the website where the article is placed and can be forwarded through email or copied and pasted on documents of choice.
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Thumbnails continue on next page 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
DIGITAL EDITION USERS GUIDE | THUMBNAILS Los Angeles Business Journal digital edition provides links to navigate through pages and articles easily whether you are on your mobile device such as iPad and computer. With a the touch of your fi ngertips on the headlines, the digital edition will directly link you to the website where the article is placed and can be forwarded through email or copied and pasted on documents of choice.
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57 58 59 60 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
DIGITAL EDITION USERS GUIDE | DOWNLOAD INSTRUCTION FOR PC/MAC Los Angeles Business Journal digital edition provides links to navigate through pages and articles easily whether you are on your mobile device such as iPad and computer. With a the touch of your fingertips on the headlines, the digital edition will directly link you to the website where the article is placed and can be forwarded through email or copied and pasted on documents of choice.
We recommend you read the very brief CBJ Digital Edition User Guide which you can download right now at:
http://www.cbjonline.com/a3sdbj/resources/Digital-Edition-InstructionsONLINE.pdf
The User Guide will help you get the most out of the many enhancements incorporated into the Digital Edition.
To read the Digital Edition on either your PC/MAC please follow the instructions below;
To Download: 1. Click on the below listed URL: www.labj.com/digital 2. Click on the edition you wish to download (the editions for each paper are represented by an icon which appears on the Web page you access with the browser). 3. Wait as the selected edition is downloaded into your browser. Download progress will vary from different browsers. 4. The downloaded edition will appear in your browser
Reading Instructions (start here if you have already downloaded the Digital Edition into your browser)
1. Save the Los Angeles Business Journal Digital Edition in an easily accessible folder on your computer. We suggest creating a Digital Edition folder in your Documents Folder where you can save each issue of the Digital Edition. 2. Go do the folder with the Digital Edition, locate the Digital Edition icon and the Digital Edition will open in Adobe Reader. If you don’t have a copy of Adobe Reader on your computer, go to www.labj.com/digital and download a free copy of Adobe Reader. 3. As the Digital Edition opens inside Adobe Reader you will be asked to allow the Digital Edition to open in the full screen mode. 4. You will note a series of buttons across the top of the page of the Digital Editions. The buttons provide the following commands:
Previous Page, 2-Page Spread, 1-Page View, Thumbnails, User Guide, Front Page, Table of Contents, Zoom-in, Zoom-out, Next Page
There are addition links embedded in the Digital Edition (and described in the User Guide) which are intended to enhance your reading experience.
Note: the Digital Edition can also be read on Android, Apple, Blackberry and Windows smart phones and on Kindle and Nook digital reading devices. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page
DIGITAL EDITION USERS GUIDE | DOWNLOAD INSTRUCTION FOR iPAD Los Angeles Business Journal digital edition provides links to navigate through pages and articles easily whether you are on your mobile device such as iPad and computer. With a the touch of your fingertips on the headlines, the digital edition will directly link you to the website where the article is placed and can be forwarded through email or copied and pasted on documents of choice.
We recommend you read the very brief CBJ Digital Edition User Guide which you can download right now at:
http://www.cbjonline.com/a3sdbj/resources/Digital-Edition-InstructionsONLINE.pdf
The User Guide will help you get the most out of the many enhancements incorporated into the Digital Edition.
To read the Digital Edition on either your iPad please follow the instructions below;
To Download: 1. Click on the below listed URL: www.labj.com/digital 2. Click on the edition you wish to download (the editions for each paper are represented by an icon which appears on the Web page you access with the browser). 3. Wait as the selected edition is downloaded into your browser. Download progress is marked by a blue thermometer indicator in the URL bar of the browser. 4. The downloaded edition will appear in your browser
Reading Instructions (start here if you have already downloaded the Digital Edition into your browser) 1. To read the Digital Edition you must move the Edition from your browser to a digital reader. 2. Move the downloaded edition into the iBooks digital reader (iBooks is a standard app delivered on all iPads. The app is available free on in the Apple app store should you need to download a copy of the app) by tapping in the center of the page until you see the "open in" button appear in the upper right-hand corner of the page. 3. Tap on the "open in" button. A list of apps will appear. Select iBooks. After a delay of a few moments, the digital edition will appear on a bookshelf in the iBooks app. 4. Tap on the image of the digital edition shown on the bookshelf and the edition will open in iBooks. 5. Use the tools at the top of each page of the digital edition in combination with the built in tools in iBooks to read and navigate the edition. 6. You will note a series of buttons across the top of the page of the Digital Editions. The buttons provide the following commands:
Thumbnails, User Guide, Front Page, Table of Contents
7. Enjoy reading your weekly digital edition of the Los Angeles Business Journal 8. Please give us feedback by sending me an email at: [email protected]
Note: the Digital Edition can also be read on Android, Apple, Blackberry and Windows smart phones and on Kindle and Nook digital reading devices.