Spring 2016 l Volume 55 The

RADCO CompaniesHigh Desert Report An economic overview of the High Desert region affiliated with The Bradco Companies, a commercial real estate group We have some very cancer, he was unable to prepare an article Jr.; Mr. Michael Yannone; Mr. Robert R. exciting information for this edition. Considering how long he Gaines, Sr.; Mr. Brad Orchard; Mr. Mark to share in this Edi- has been in this battle, Dr. Gobar is do- Eagleton; Ms. Judith Joan Curren; Mr. tion of the Report. ing quite well. We talk often and he con- Mike Perry & Mr. Tom Perry (the son and But first, I wish to tinues to be one of my personal mentors. husband of our close friend and renowned welcome our cur- When the doctors told him they thought escrow professional Mrs. Debbie Perry); rent, future, and long he would lose a substantial amount of Mr. Stephen J. Flannery; Mr. Bill Nelson; standing subscrib- weight, they forgot that Dr. Gobar is a Ms. Susan Mari So; Ms. Rita Rae Dale; ers and sponsors of unique individual, undoubtedly one of Mr. Chuck Love; Mr. Jack Julian Hall; the 55th Edition of the most unique people anyone will ever Ms. Rita Louise Jaramillo; Mrs. Cherie The Bradco High Desert Report, the first meet. He has actually gained over 16 Vackar; Mr. Lowell Draper; and my wife’s and only economic overview of The High pounds. He looks great and still has the 99-1/5-year old Aunt, Ms. Myrtle Mason- Desert, covering the northern portion of greatest sense of humor. For those of you er-Unger. May you all Rest in Peace. This San Bernardino County, California. who have ever heard him speak, as I have special edition of The Bradco High Desert As many of you longtime readers know, more than 50 times, you know that humor. Report is dedicated to you, your families Dr. Alfred Gobar has continually supplied We are glad that the health of Dr. Gobar and the memories you created for us all. some of the greatest articles to The Brad- continues to improve, and we wish him Thank you for all you gave to the High co High Desert Report since its inception well. For those of you who may wish to Desert. Hopefully, we can strive to con- in May of 1993, all the way through our do so, please extend your regards to him tinue following in your footsteps. 52nd Edition. Due to an 8-year battle with at his email: [email protected]. As we dedicate this issue to those we It has been nearly 11 months since we lost, I would be remiss not to thank those Inside This Issue published the 54th edition of our Report. who continue to contribute to our efforts What Happened to the Inland Empire Film The reason for this is simple: it has been a to bring The Bradco Report to our read- Commission?...... 2 very tough year for my family and for the ers and our community. Much thanks to: High Desert Communtiy Foundation...... 3 High Desert community in terms of health Mr. Dan Taylor of the Inland Empire Film Governor’s Record Budget...... 4 and personal losses. Commission; State Senator Mike Morrell; Caltrans Achieves Major Milestones...... 5 Everyone, including myself, has been ex- and Ms. Joy Sepulveda, Public Informa- Cadiz Inc. Continues to Work to Provide tion Officer for Caltrans. Additionally, I California Much-Needed New Water...... 7 tremely busy, and unfortunately, during Valdez Appointed San Bernardino Auditor- this time, we have lost many High Desert want to recognize Ms. Courtney Degener, Controller/Treasure...... 8 leaders. While I reflect upon my father’s Vice President of Communications & In- MWA Offers Assistance to Small Water declining health at 85 years old, I realize vestor Relations for Cadiz, where she has Providers...... 9 been a team member for over 12 years; VVWRA New Subregional Plants...... 10 how lucky all of us are to have our health and how lucky we are to live a vibrant the new San Bernardino Auditor-Con- Building Opportunity and Time for the High troller/Treasurer/Tax Collector, Mr. Oscar Desert...... 12 lifestyle. In the pursuit of business, I hope Lahontan RWQCB Stormwater...... 13 we all remember that family, friends and Valdez; Community Liaison Officer for High Desert Businesses give MDAQMD colleagues are the most important part of the Mojave Water Agency, Ms. Yvonne High Marks ...... 15 what we do each day. Hester; Chief of Legislative and Public High Desert Corridor Final EIS/R...... 16 Affairs for San Bernardino Associated San Bernardino County EDA...... 18 On that note, I want to dedicate the 55th Governments, Mr. Tim Watkins; Ms. Patty Keeping the American Drive Alive...... 19 Edition of The Bradco High Desert Re- Z. Kouyoumdjian, Executive Director for Energy Disclosure in California...... 20 port to those great individuals whom we Lahontan Regional Water Quality Control Congressman Paul Cook Leads the Charge...... 22 have recently lost. These people touched Board; and Ms. Christie Robinson, CRE VVC Serving the High Desert for 55 Years. 23 my life in one way or another, and I was Prop 13 is Safe, for Now...... 25 Specialist for the Mojave Desert Air Qual- High Desert Unemployment Rates...... 25 privileged to call all of them my friends. ity Management District. They taught me the value of life and to not Taxable Parcels Increase in Value...... 26 Thanks also to our great friend Ms. Lisa 2016 Economic and Housing Market take our time here on earth for granted. Outlook...... 27 They all loved our High Desert region and Lawrence, Executive Director of the High Job Growth on the Horizon...... 29 all that it has to offer. Desert Community Foundation. I strongly City Update encourage all High Desert property own- Adelanto...... 30 Those we lost in the last year in the High ers, investors, and those who want to sup- Town of Apple Valley ...... 32 Desert include: Mr. Bill Emick (father of port a local organization to consider the Barstow...... 33 Town of Apple Valley Councilmember contribution that the Foundation makes Hesperia...... 34 Curt Emick); Mr. Manuel Mojica Benitez Victorville...... 35 to the community through the leadership continued on page 31 The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] 2 High Desert Report An economic overview What happened to the Inland Empire Film Commission? By Dan Taylor Many of you remember the articles by two filming regions as semi-retired too. Dry Lake and Aviation Warehouse in Sheri Davis of the Inland Empire Film Over the 20 plus years the IEFC was in El Mirage. This might have technically Commission (IEFC), revealing all the existence, Sheri and I helped to bring been an indie film, but it will star Keanu juicy tidbits of information about the in over $1.4 billion dollars in economic Reeves, Jason Momoa and Jim Carrey. film industry traipsing around the High impact to the two county regions of the Desert looking for the perfect location Inland Empire. “The Neon Demon,” shot at Bristol Salt for their feature film, commercial or Flats in Amboy, I think Keanu Reeves magazine shoot. All of a sudden the “How will all these changes affect me likes the High Desert. This is another Inland Empire Film Commission disap- and my business,” you might ask. Well indie he did also starring Christina Hen- peared with little fanfare. hopefully, you did not notice any change dricks and Elle Fanning. at all. Due to the quick actions of Mary “What happened,” You ask? Well, the Jane Olhasso, Assistant Executive Of- “Sky,” shot in Barstow (High Noon details are pretty convoluted, but basi- ficer - Finance and Administration for Saloon); Hinkley (Hinkley Rd; Hinkley cally the entity housing the Film Com- the County of San Bernardino, the day Ranch); Joshua Tree (Copper Mountain mission decided to close that division. the IEFC closed the San Bernardino College; Quail Springs Rd; Broadway So how will the High Desert continue County Film Office (SBCFO) was up Rd; Sunfair Rd); Landers (Rattlesnake to get the filming that brings so much and running. The SBCFO does most of Cyn Rd); Lenwood (Hills Ranch); money to the area? the same things the IEFC did, such as Ludlow (Ludlow Café; Main St; Na- process permits in 1-3 days, coordinate tional Trail Hwy; Lavic Rd); Newberry The County of San Bernardino Eco- with the various county departments Springs (Mobil Gas Station; Black Butte nomic Development Agency quickly (i.e. Transportation, Parks, Fire, etc) to Rd; Pisgah St; Bagdad Café); Victor- stepped in to help fill the gap. They accommodate special filming requests, ville (Holland Burger). This “little mov- contracted with the newly formed Dan maintain a local film crew and services ie that could,” starred Diane Kruger, Taylor Consulting company to pick up database, and keep a location library re- Norman Reedus, Lena Dunham, Lou the pieces – in other words, they hired source to assist the film industry in their Diamond Phillips and Joshua Jackson. the author of this article. I have worked search for the perfect spot to film. They hopped all over the High Desert for Sheri Davis and the IEFC for over for several days to get this movie made. 14 years and at the time it closed, I was Filming Report for 2015 the Deputy Director. Riverside County “Honey Jar: Chase for the Gold,” shot at decided to also open their own film of- Feature Films: Unfortunately, we were Calico Ghost Town in Yermo. fice with two wonderful ladies Sheri not able to secure any major feature films this year, but the High Desert had TV Episodic: The most notable was and I have been training for over a year, cable show “Into the Badlands,” which Stephanie Stethem and Bettina Breck- the opportunity to have a total of 18 in- die features, up from 11 in 2014. Cali- came out in September and shot a scene enfeld. Sheri Davis is semi-retired but on the El Mirage Dry Lake. is still working, filming with the Big fornia as a whole has benefited from the Bear Lake Film Office and the Greater recent State Film incentive, but so far it TV Reality: Five TV Reality shows Palm Springs Film Office / Alliance. has not trickled down to the High Des- chose the high desert for their locations. Once you have worked 27,000 square ert. Here are some of the smaller films “Little Women,” shot at Silverwood miles of filming opportunity for over that shot here: Lake in the Hesperia area, “The Great 20 years, I guess you would consider “The Bad Batch,” shot at El Mirage Food Truck Race,” shot at the Route 66 continued on page 3

THE BRADCO HIGH DESERT REPORT Publisher: Mr. Joseph W. Brady, CCIM, SIOR Editors: Ms. Kaitlin Alpert, Ms. April Tyler, Ms. Jenny Margotta, Ms. Tailor Titus, and Mr. Seth Neistadt Editor Emeritus: Mr. Lowell Draper Printed & Designed by One Stop Printers & Direct Mail Service Digital Version by Axiom Media Inc. P.O. Box 2710, CA 92393-2710 760.951.5111 BSN Ext. 100 l 760.951.5113 FAX www.TheBradcoCompanies.com l e-mail to: [email protected]

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The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] High Desert Report 3 An economic overview High Desert Community What happened to the Inland Empire Film Commission? Foundation Continued By Lisa Lawrence It is a privilege to join my colleagues Museum in Barstow; “The Story Trek,” watch their video here - http://tinyurl. and past Bradco High Desert Report shot at Calico Ghost Town in Yermo; com/feelingelectric. “Andreea Balan:” article submitters Vici Nagel and “This is Life with Lisa Ling,” shot at the This Romanian pop singer loved El Mi- Debbie A. Cannon, in discussing the Hotel Nipton; “Storage Wars,” shot in rage Dry Lake when she shot her video Adelanto; and the “Rich Kids of Bev- “Uita-ma” – watch it here - http://ti- current status and future outlook for erly Hills,” shot in Yermo and Baker. nyurl.com/uita-ma. “Cheek:” Cheek is nonprofit organizations in the High a Finnish Rapper who found the rocky Desert region and the important Commercials: There were 107 commer- desert area of Cougar Buttes perfect for connections with the business cials that chose the county as a location his music video “Sa Huudat” – check it community. and 54 of them were shot in the High out at http://tinyurl.com/sa-huudat. Desert. Here are some of the most no- So what are we facing? The National table: Documentary and Industrial: 12 of the Council of Nonprofits says, “The top 22 Documentary and Industrial shoots “Mercedes,” shot at the Pisgah Crater in were in the High Desert. Here are a few three trends for charitable nonprofits Newberry Springs; “Born Shoes,” shot to look into: will continue to be: limited resourc- at the Death Valley National Park; “5- es, increased demands on nonprofits, Hour Energy,” shot at Dumont Dunes; “In Search of Colour:” The BBC loves stemming from increased needs in “Johnny Walker,” shot at El Mirage Dry California and comes out almost every communities; and the growing aware- Lake; “iPhone 6,” shot at El Mirage Dry year. This year they chose to shoot in Lake, and Aviation Warehouse in El Big Bear Lake, Fawnskin and Death ness that every nonprofit and board Mirage; “Jay Leno’s Garage,” shot his Valley. “Scout Junior:” This was an In- member needs to be an active, vocal opening sequence at the El Mirage Dry dustrial shoot for Indian Motorcycle that advocate for his/her nonprofit’s mis- Lake; and “Dominos,” shot at Harper shot at the El Mirage Dry Lake. What sion.” Dry Lake in Hinkley. is an Industrial shoot? “It is a video that targets ‘Industry’ as its primary audi- The national trend is magnified in our Stills & Catalog: Still photographers ence,” according to Wikipedia. In this High Desert area. The issue of an un- have loved the High Desert for years be- case it was an educational video made derfunded Inland Empire region has cause of the wide open spaces, topogra- for an audience within the motorcycle phy and the abundance of natural light. industry. been widely discussed over the past In 2015, 35% of all the stills shoots in few years, particularly as it relates to the county chose the High Desert: Students: 50% of ALL the student foundation dollars coming into our shoots in the County of San Bernardino area. The increased needs in our com- “Ford,” shot at Coyote Dry lake in Ye- were based in the High Desert. Here is munity, likewise, have been identified rmo; “VW,” shot at Rabbit Dry Lake a list of the schools that chose a desert in Apple Valley; “Maite Perroni:” This backdrop for their project: through formal processes and reported Mexican actress, model and singer/ by statistics. More profoundly, we all songwriter chose El Mirage Dry Lake Art Center College of Design, Azusa see, hear, and read real-life stories of for her latest shoot. “Kiyoharu:” This Pacific University, Biola University, the people affected. These stories are Japanese musician and singer/song- Chapman University, Columbia Col- what fuel those of us in the nonprofit writer also chose El Mirage Dry Lake lege Hollywood, Loyola Marymount community and our supporters. as the backdrop to his portfolio; and University, New York Film Academy, “Pepsi Strong Zero:” This new product Saddleback College, and St. John’s Uni- The response to these trends has been from Pepsi Cola chose Cougar Buttes in versity. for Inland Empire nonprofit to contin- Lucerne Valley for their ad campaign shoot for this Japanese soda. Other: Other encompasses any film ue to focus on building stronger net- shoot that does not fit into one of the works and collaborations. While for- Music Videos: The High Desert is THE categories above (i.e. web video, short profit businesses with like products place to shoot your music video, as evi- films, etc). Over 59% of this category and services do not necessarily work denced by the 41 of the 54 music videos chose the High Desert: that shot in San Bernardino County: in cooperation with their “competi- “Mini/Tony Hawk BTS” – Web Com- tors,” that strategy is highly utilized “Interscope Records Music Video:” An mercial; “Triumph Motorcycles” – Web and effective among nonprofit orga- undisclosed client of Interscope chose Commercial; “King of the Hammers” – nizations. A recent Daily Press ar- to shoot their music video at Giant Rock Event Video; “The Road” – Short Film; ticle titled “The Business of Poverty” in Landers. I wonder who it was? “Pa- and “Leap” – Short Film - http://tinyurl. outlined a food distribution program rade of Lights:” This new genre-bending com/movie-leap. headed by Desert Manna in Barstow. band chose Dumont Dunes and Silurian Dry Lake in the Baker area for their de- The article described the worsening but song, “Feeling Electric.” You can continued on page 4 The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] 4 High Desert Report An economic overview Governor’s Record Budget High Desert Community Foundation Asks Taxpayers for Even More Continued By Senator Mike Morrell At the beginning of the year, the gov- economic plight of the region, using school seniors this year. We set up ernor released the details of his pro- data provided by the county, school scholarships in coordination with the posed state budget. While the next few district, nonprofit organizations, and donor, including memorial scholar- months will be filled with negotiations The Bradco Companies. It also gave ships to honor a loved one’s legacy. and committee hearings to hammer a beautiful illustration of nonprofit or- ganizations working together and le- The nonprofit community recognizes out the details, it is already clear that the continuing contributions of our this budget continues a trend of gov- veraging resources for greater impact. The logistics alone are impressive. businesses. Many of our High Desert ernment growth and spending at the businesses are already actively en- expense of the taxpayer – this time to Another example of nonprofits work- gaged with and supportive of nonprofit the tune of a record $122.6 billion. ing together is Academy for Grass- organizations and activities. Academy The governor and Democratic leaders roots Organizations (AcademyGO) for Grassroots Organizations is em- have reiterated their belief that Cali- and High Desert Community Foun- barking on a campaign to strengthen dation. Mrs. Nagel and I are the Ex- that vital connection and effectively fornia is in good financial shape and ecutive Directors, respectively, and build the capacity to serve and respond have used this assessment to justify we are continually collaborating to to the increased needs in our commu- spending increases, though many, in- strengthen and improve our communi- nities. The question of “Why are non- cluding the governor himself, con- ty. AcademyGO does an outstanding profits good for business?” will also be tinue to warn that another recession job in capacity building of nonprofits asked and answered. Watch for more could be just around the corner. through training, regular networking information in the coming months or Yet still the governor has doubled events, and connections to resources. contact Debbie A. Cannon through down on calls for higher taxes. At the foundation, we have over 60 www.AcademyGO.com. projects providing services or support A cornerstone of this plan would enact for: veterans, low income families, se- On behalf of the nonprofit community, $3 billion in new gas taxes and “road niors, children, health, animals, edu- thank you to our businesses! You are user fees.” Senate Republicans have cation, homeless, civic efforts, arts, an invaluable partner in improving our High Desert region. put forward our own plan that would music, and public safety. Our foun- provide nearly the same amount for dation has directly benefitted from the Lisa Lawrence is the Executive Di- California’s roads and highways with- services of AcademyGO, and many of rector of the High Desert Community out raising taxes. Included in our plan our projects have grown in their abil- Foundation. For more information, is a guarantee that taxes paid by driv- ity to obtain resources, including sev- visit www.hdcfoundation.org or call ers and truckers would be used to the eral firsttime grants. her at (760) 242-8877. benefit of our roads and highways. The High Desert Community Foun- If you drive as much as I do, you are dation also manages permanent and well aware that in California, we al- temporary funds for in- ready pay among the nation’s highest dividuals, families, and prices for gas. Between taxes and en- businesses to impact our community both now vironmental regulations, government URGENT CARE! and into the future. We costs imposed on motorists are nearly are an excellent alterna- QUICK • AFFORDABLE 70 cents per gallon. For families and tive to establishing your businesses alike, paying more at the own foundation and can FAST MEDICINE WHEN YOU NEED IT MOST pump will mean even less money to assist you in leaving a put toward investing and saving for legacy by supporting 3 Urgent Care Locations to serve you: the future. causes you care about. Victorville • Adelanto • Hesperia This budget proposal is premised on a We also have a thriving view that the books are balanced. By scholarship program and several measures, however, Califor- over $250,000 will be given to graduating high www.DesertValleyMedicalGroup.com continued on page 5 The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] High Desert Report 5 An economic overview Caltrans Achieves Major Milestones in the High Desert Governor’s Record Budget By: Joy M. Schneider—Public Information Officer, Caltrans Asks Taxpayers for Even More Continued State of California • Department of Transportation ______For approximately vard and final striping of various areas nia’s fiscal situation is far from- bal four years, Caltrans of the project. anced. has been actively working in the High The project team joint ribbon cutting cer- Consider that the State Treasurer has  Desert to improve and emony (partnering with the I-15 Cajon estimated state and local government upgrade the transportation system. Rap- Pass Pavement Rehabilitation Project) debt at $1.5 trillion. While the budget 13-112 id growth in the region and the resulting was held May 20, 2016. The ceremony includes about $7 billion to pay down included a walk, run, bike event geared Today's Date: May 8, 2013 congestion have made improvements a related debt costs, this amount rep- toward community involvement. District: 8 – San Bernardino priority. As one of three routes in and resents only the minimum necessary Contact: Terri Kasinga out of Southern California, the Inter- I-15 Cajon Pass Pavement to pay off a small portion of state li- Phone: (909) 383-4646 (work) (951) 232-4268 (cell) state 15 (I-15) and Interstate 215 (I-215) Rehabilitation Project abilities. With windfall revenues, the interchange is a heavy goods movement budget could pay off more debt, avoid corridor and recreational gateway to The I-15 Cajon Pass Pavement Reha- future interest costs, and prevent the FOR IMMEDIATE RELEASE places like Las Vegas and the Colorado bilitation Project began in Spring 2013. River, in addition to being a commuting As a strictly pavement rehabilitation cycle of issuing more debt to finance route. project, it will resurface and restore the existing debt so that future generations pavement between Kenwood Avenue are not stuck having to foot this bill CALIFORNIA TRANSPORTATION COMMISSION APPROVES NEARLYTwo $1 ofBILLION the major projects that will ad- and the Hesperia overhead, which will rather than fuel more out-of-control IN NEW CONSTRUCTION PROJECTS TO IMPROVE TRANSPORTATdressION congestion AND and wear-and-tear on provide approximately a 40-year life to spending in Sacramento on things like DRIVE ECONOMIC GROWTH the facility are nearing the finish line, the pavement through the Cajon Pass. high-speed rail. while several others continue to work to Coffman Parsons Joint Venture, the San Bernardino – The state’s vast transportation system received a major infusionbring of reliefcash to the High Desert. Our duty is to provide an environ- project contractor, is currently complet- ment where businesses and families today, as the California Transportation Commission (CTC) allocated $878 million in fundingDevore to Interchange Project ing the last few concrete replacement 114 projects that will support job growth, alleviate traffic delays, and repair aging roads and thrive. We have our work cut out for The $325 million I-15/I-215 Devore In- areas. They expect the striping to be bridges. back to the existing configuration by the us in California, where the nation’s terchange Project, which began in No- top CEOs for 11 years straight have vember 2012, will add a truck by-pass end of April 2016. Once the striping is “The benefits these projects bring are a huge boon to our economy,” said Caltrans Director finished, workers will install a rumble named our state the worst place to do lane, add an additional lane in each di- business. Malcolm Dougherty, “This investment in our transportation system creates jobs andrection improves and bring the interchange up to strip. the quality of life for all Californians.” operational standards, as well as address The Cajon Pass Project team working Throughout history it has been dem-

the arterial highways network deficien- in coordination with the Devore Inter- onstrated that the larger government The allocations include $476 million from Proposition 1B, a 2006 voter-approved transportation cies—specifically the reconnection of change Project team held a joint ribbon becomes, the more it consumes, and bond. In total, nearly $15.5 billion in Proposition 1B funds have been put to work statewide.Route 66 (Cajon Boulevard). cutting ceremony on May 20, 2016. the fewer freedoms all of us will have. “This billion-dollar investment helps preserve California’s great infrastructure of theThe past project and isput currently 95% complete. SR-138 Widening (West) Project Last year Republicans heeded this thousands of Californian’s to work building something new,” said Brian Kelly, ActingThe Secretary major items of of work left to be per- cautionary truth to stop tax increases formed are completion of Cajon Boule- The SR-138 Widening (West) Project in their tracks. the Business, Transportation & Housing Agency. “These investments in preservation and consists of widening innovation are absolutely critical to California’s economy: In 2010, traffic congestion caused 95 State Route 138 (SR- As we finalize the budget in the months million hours of delay, wasting fuel and squandering productive, economic activity.” 138) to four lanes ahead, our resolve remains the same with a 14-foot medi- as we work to protect the taxpayers of Highlights of the funding allocations include: an buffer from Phelan California. Road to Interstate 15. City of Riverside/Riverside County Transportation Commission (RCTC) – Construct a four The project will also Senator Mike Morrell, R-Rancho Cu- lane grade separation for railroad lines at Riverside Avenue ($12.1 million – Prop 1B/TCIF upgrade shoulders to camonga, represents the 23rd District funds). current standards, ex- in the State Senate which includes tend drainage (as nec- portions of Los Angeles, Riverside, San Bernardino County – This project will provide a multipurpose facility that will protect essary) and construct and San Bernardino counties. California’s transportation infrastructure and promote interstate commerce. It will construct a a wildlife-crossing commercial vehicle facility on I-15 near Wheaton Springs (Joint Point of Entry (JPOE) at structure. Nevada State Line). Eventually a facility will be constructed to house the new Agriculture Inspection Station once funding is approved ($36.8 million – Prop 1B/SHOPP funds). continued on page 6

MORE The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected]

6 High Desert Report An economic overview Caltrans Achieves Major Milestones in the High Desert Continued

The $52.1 million dollar project was The State Route 58 (SR-58) project installed in anticipation of a 100-year awarded to Flatiron Construction Corp. will widen and realign a portion of storm event. The major earthwork will The project began in February 2015, and State Route 58 (SR-58) from a two-lane be finished by mid-April 2016, at which is currently 45% complete. It is estimat- conventional highway to a four-lane time concrete paving will commence. ed to be completed in December 2016. expressway, extending from approxi- The Hinkley Road/Bridge is open. The mately 2.4 miles west of Hidden River project is expected to be complete in SR-138 Widening (East) Project Road to approximately 0.7 miles east of February 2017. Lenwood Road, near the unincorporated The SR-138 Widening (East) Project is The project team takes the needs and a 2.1 mile project that will realign SR- community of Hinkley in San Bernardi- no County. concerns of the Hinkley community 138 from 1.9 miles east of I-15 to just members very seriously. Community west of Summit Post Office Road. It The project will include construction meetings are held every two months so will also construct two-lane paved sec- of two interchanges on the widened that the community can find out about tions of highway with outside shoulders, and realigned portion of SR-58; one at the status of the construction, as well three wildlife crossings and an off high- Hinkley Road and the other at Lenwood as report any concerns they may have way vehicle crossing. Road. All entrance ramps (westbound about the project and/or construction The project is needed because the ex- and eastbound) will have two lanes activities. at the local road and will transition to isting configuration has many non- US-395 Widening Project standard, steep horizontal and vertical a single lane prior to merging onto the curves and grade. There are no paved expressway. All exit ramps will have With traffic expected to increase by as shoulders and narrow or non-existent three-way stops at the exit ramp inter- much as 90% by the year 2038, Phase earth shoulders, as well as few turnouts sections with the local road. Americans One of the US-395 Widening Project and no passing opportunities. This proj- with Disabilities Act (ADA) compliant aims to improve the operational efficien- ect will improve operational efficiency, curb ramps will be included. cy of the highway by providing one ad- traffic safety and will also upgrade and The project includes access to non- ditional lane in each direction, installing widen the existing lanes and shoulders motorized transportation modes (e.g., a 14-foot median and rumble strips, and to current standards. pedestrian, bikes, and equestrian) by modifying signals at various intersec- tions from SR-18 to Chamberlaine Way Work began in late April 2016. providing six-foot-wide sidewalks, as well as standard eight-foot shoulders in the cities of Victorville and Adelanto. SR-58 Hinkley Expressway across the two overcrossing bridges at Caltrans District 8 is currently partner- Project Lenwood and Hinkley Roads. A short ing with the San Bernardino Associated length of the existing SR-58 at the east Governments (SANBAG) to work on end of the project is proposed the right-of-way and final design for to be realigned to tie in to the the widening of US-395. It is estimated Lenwood Road westbound that the project will go to construction in entrance and exit ramps. Summer 2018 and will be completed in The widened and realigned Winter 2020. expressway is planned to be Caltrans is pleased with the achieve- on a fill section (elevated ments of the projects mentioned above. sections of a roadway). All Each project will aid in the enhancement locations with large verti- of the transportation infrastructure of the cal surfaces (i.e., retaining High Desert. Caltrans will continue to walls and bridge structures) deliver quality projects that will provide will include aesthetic archi- a safe, sustainable, integrated and effi- tectural treatment to prevent cient transportation system to enhance graffiti. California’s economy and livability. The project was awarded to Skanska and broke ground in April 2015. To date, drainage features have been

The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] High Desert Report 7 An economic overview Cadiz Inc. Continues Work to Provide California Much-Needed New Water By Courtney Degener, Vice President, Communications & Investor Relations A part of the Cadiz team for over 12 years The Mojave Desert’s Cadiz Valley in our proximity to the Colorado River so that in a second phase we can utilize eastern San Bernardino County, Cali- Aqueduct, which carries water from the its immense storage capacity to hold fornia, is a hot, dry place. The sandy soil river to 19 million people from Ventura up to one million acre-feet of imported supports only sparse, low brush well County to San Diego County, both the wet-year water from the Colorado River adapted to the hot dry climate where supply and storage concepts proved or State Water Project until needed in summer temperatures reach up to 120 feasible. The plan has evolved with the subsequent dry years. degrees. It’s just about the last place times. Once envisioned as a groundwa- you’d go looking for water. ter storage-focused project in partner- When designing the project, protecting ship with the Metropolitan Water Dis- the environment was a top priority, and But in the 1980s, our Company found- trict of Southern California, today the we worked with our project partners, San ers did just that. Guided by early NASA Cadiz Valley Water Conservation, Re- Bernardino County and best-in-class ex- satellite imagery, they postulated that covery and Storage Project is smaller in perts, to ensure the project would do no the unique geology of the Cadiz Val- scale and scope than earlier envisioned, harm. We plan to build our pipeline in ley, which is about the size of Rhode but remained focused on a pledge to do a disturbed railroad right-of-way, rather Island, could indicate that groundwater no harm to the environment. than crossing undisturbed federal land had been collecting under the soil for to ensure no species are impacted. We millennia. We purchased land, drilled The project, which will be implemented have also committed to an 80-foot hard exploratory wells and, indeed, found in two phases, will actively manage the floor on groundwater withdrawals for plentiful, high-quality groundwater. groundwater basin underlying our prop- the avoidance of doubt about water re- erty to create a new reliable water sup- source impacts. The project includes an Later modeling and field work would ply for Southern California, as well as a extensive, prescient groundwater man- show the Cadiz aquifer system holds new opportunity for groundwater stor- agement plan regulated by the county to as much as 34 million acre-feet of wa- age. The first phase will capture approx- enforce our commitments. ter – more than 11 trillion gallons and imately 50,000 acre-feet of groundwater an amount equal in volume to Lake per year–enough for 400,000 people Public Review & Approval Mead, America’s largest reservoir. Our –from a wellfield on the Cadiz property In July 2012 the project received ap- wells have been prolific, or as one drill- and deliver that water via a pipeline to ing contractor said during field work in proval under California’s rigorous en- the Colorado River Aqueduct and then vironmental laws–generally regarded 2010, “based on 43 years of experience to local communities throughout South- – I’ve been involved with hundreds, as the most protective in the nation. ern California. Over the 50 year life of The Environmental Impact Report was possibly thousands, of drilling projects the project, only 3-6% of water in stor- – and without a doubt (Cadiz well) TW1 prepared and certified, after extensive age would be withdrawn and this water public review, by Santa Margarita Wa- was the most productive production well would be replenished over time. Ac- I’ve ever been involved with.” ter District (SMWD). Nine water agen- cording to Anthony Brown, M.Sc. En- cies from across the region, including Over time we continued our land acqui- gineering & Hydrology, who conducted SMWD, have signed up to purchase sition and began to farm, relying upon an independent peer review of the proj- the water made available by the project. this groundwater for irrigation. Today ect’s science, “given the low amount San Bernardino County, which oversees we are the largest private landowner in of proposed pumping relative to the groundwater at the project area, served San Bernardino County, with 45,000 significant size of the basin, the Cadiz as a Responsible Agency in the project acres and a sustainable farming opera- project can be intelligently managed to and separately approved the project and tion of aquifer-watered lemon orchards provide a new beneficial use without the management plan in October 2012. and vineyards that provide a lush green any harm.” spot in the sparse Mojave landscape. As occurs so frequently with large “Conservation” is a critical part of the projects in California, litigation fol- Creating an Environmentally project’s name and objectives because lowed. Cadiz, SMWD and San Ber- Benign Water Project all of the water in the Cadiz aquifer nardino jointly defended challenges to presently flows to desert dry lake pla- the project’s approvals. Some lawsuits In the 1990s as California’s population yas, where it turns ten times saltier than were dropped early on and several went grew and the State’s water supplies in- the ocean and evaporates. Without the to trial. In 2014 all of the project’s ap- creasingly came under pressure, we also project, over 10 trillion gallons of water provals and environmental documents started considering the potential to make are lost every year. The project aims to were upheld without any changes. As our property available for a water supply manage these outflows to the dry lakes expected, opponents appealed these rul- and groundwater storage project. Given and create integrity in the aquifer system ings and the matters are now before the continued on page 8 The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] 8 High Desert Report An economic overview Valdez Appointed San Cadiz Inc. Continues Work to Provide California Bernardino Auditor- Much-Needed New Water Controller/Treasurer/Tax Collector Continued Oscar Valdez California Court of Appeals. We remain cess to the railroad right-of-way for our was appointed confident in the thorough environmen- conveyance pipeline; and, (3) complete to the vacated tal review conducted in accordance with final contracts for the water. We expect elected posi- California’s tough environmental laws the appeals will be decided this summer tion of Audi- and are optimistic the Appeals Court and the contracts are expected to follow. tor-Controller/ will uphold the 2014 trial court deci- Thanks to the support of a broad bi-par- Treasurer/Tax sions. tisan delegation of California Congres- Collector by the sional members, we are in dialogue with San Bernardino A Big Boost for the Local the BLM about how we can resolve our County Board Economy dispute and reach a final path forward of Supervisors on February 17, As it has waded through the CEQA pro- for the pipeline. 2016. Prior to his appointment, Valdez cess and now CEQA litigation, the need While we continue to believe that the served as the Assistant Auditor-Con- for the project has not diminished and water project would be the highest and troller/Treasurer/Tax Collector from the state’s unpredictable hydrological best use of our properties and resources, May 2011 until his current appoint- cycles have only made it clearer that a we also recognize that water in Califor- ment in 2016 and was responsible for groundwater supply and storage proj- nia is a tough business and can take a the management and oversight of the ect in Southern California would be a long time. Therefore, we’ve also recent- auditor, controller, and treasurer divi- benefit to the entire system. Southern ly announced plans to expand farming sions for the County of San Bernardino. California economic consulting firm operations in Cadiz so we can put our Valdez has over 20 years of accounting, Stratecon Inc. recently valued the water auditing, budgeting, finance, and -man most valuable asset to work while we supply, storage, and water quality ben- continue to pursue the water project. agement experience, 16 of which have efits attributable to the project at $6.1 been with San Bernardino County. billion. These benefits would not only The initial expansion will expand farm- The Auditor-Controller/Treasurer/Tax be realized by Project subscribers, but ing on 2,100 acres and ultimately could Collector’s Office has a budget of near- experienced by all water users through- reach 9,600 acres, which would utilize ly $40 million and employs 315 county out the entire region, which has faced an amount of water comparable to our employees. The department performs significant water rate increases over the Water Project permits. Our agricultural the accounting, reporting, and claims of last 10 years. partners will install water and energy all county financial activities to ensure infrastructure that later will be used sound financial management. Valdez In addition to tremendous water supply by the project once final approvals are is responsible for the investment of all benefits, the project is also expected to received. The well-field infrastructure county and school district funds within create needed jobs and local investment. and related improvements required for the county investment pool and over- The $250 million project, which we will agriculture are substantially similar to sees the collection of over $2.3 billion privately finance, will create and sup- water project infrastructure, so they can in property taxes each year for payment port over 1,500 jobs per year of con- be fully integrated into the project once of over 805,000 annual secured and un- struction and generate nearly a billion it is permitted. secured tax bills. dollars in economic activity. Under a pledge we made to the county, 80% of As a long-time desert business, whether Valdez and his staff provide courteous the capital investment will be dedicated pursuing agriculture or water supply and professional customer service to county departments, residents, and local to San Bernardino County-based busi- development at the property, we also government agencies. Valdez’s commit- nesses and 50% of the jobs to county- intend to maintain a variety of legacy ment to providing superior customer ser- based workers, including 10% to local commitments in Cadiz, including a tour- vice is evident by the many convenient veterans. ist-based steam train, cultural center, kit fox research, and the largest desert tor- ways his office offers residents to pay Next steps… their property taxes, including eCheck, toise land mitigation bank in California. debit card, and credit card services To reach construction and implementa- We are more than the water project, and available online, in person, and over the tion, we must still complete three pri- as our CEO, Scott Slater, reminds our phone. On March 22, 2016, Valdez was mary tasks: (1) resolve the outstanding team regularly, we will always do proj- presented with a NACo Award in recog- appeals of the CEQA permits; (2) re- ects that our kids can be proud of. nition of his department’s Online Bank- solve a dispute with the federal Bureau ing Tax Payment Project, which result- of Land Management (BLM) over ac- continued on page 9

The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] High Desert Report 9 An economic overview MWA Offers Assistance to Small Water Providers Valdez Appointed San By Yvonne Hester, Community Liaison Officer Bernardino Auditor- Controller... Continued As California continues to experience Project team was formed, and the MWA ed in increased efficiency in processing year five of a statewide drought, hopes Board of Directors approved an initial payments remitted through a taxpayer’s of a saving El Niño continue to elude $200,000.00 program budget for a con- online banking system. the Golden State. Here in the High Des- tract with the California Rural Water Valdez’s office averages a 98% annual ert, periods of drought are part of the na- Association to provide small water sys- collection rate, meeting the established tive climate, requiring the Mojave Wa- tems expertise. Under the MWA Small performance measures and in doing so- ter Agency to continually monitor and Water Systems Assistance Program, a supporting the Countywide Vision and invest in plans and programs to ensure local expert was made available to dis- Goals. Property tax bills that are not water for today and tomorrow. Among cuss containment solutions including paid become tax-defaulted and subject the Agency’s newest programs is the consolidation of two or more systems, to the Tax Collector’s power to sell after Small Systems Assistance Program blending water, or well head treatment. five or more years. Annual tax sale auc- (SSAP) that has been named as a finalist tions are held each May in an effort to As a result of the MWA program, a for an award of excellence from the As- return these properties to property tax- sociation of California Water Agencies. number of grants for small systems were paying status. Properties not sold at the submitted, and Gordon Acres Mutual May auction are re-offered in August at During the past two decades, MWA in- Water Company in Lucerne Valley re- a reduced minimum bid. Last year 2,296 vested heavily in large capital projects ceived a grant of $468,000.00 from the tax-defaulted properties were offered at such as pipelines and recharge facilities, State Water Resources Control Board. the May and August tax sales, and 92.5% but today the focus is on optimization These funds will help develop a water of those properties were sold, resulting of resources, thanks to community in- system plan to address insufficient -de in $14.7 million in collected revenue. put during the 2014 Integrated Regional livery, water outages, and water quality Water Management Plan. Increased par- violations. The Tax Collector’s tax sale auctions are ticipation in the plan’s process resulted hosted online. This year’s auction was in the committee ranking assistance for Other small water systems in the re- held May 14-20, 2016. Each parcel list- ed for tax sale included a current parcel disadvantaged communities as a top pri- gion also have received assistance from number, situs city, minimum bid, parcel ority. the program. All requesting water sys- tems have received on-site assistance map and Google map, and some parcels Unlike the larger water providers, re- for technical, managerial and financial also included a photo. To maintain single sources are scarce for the small provid- challenges, as well as need assessments, ownership on undeveloped tracts, Val- ers. The new program was developed leak detection audits, conservation plan dez’s office offered grouped parcels that to assist disadvantaged and severely assistance, and rate studies. MWA also must be purchased on an all-or-nothing disadvantaged small water systems that has provided 10 free workshops and has basis. Developers interested in review- ing current tract maps for grouped par- lack staff, expertise, and funding to ad- made available wastewater expert help. cels can request a copy from the County dress both water quality and reliability. For more information on this pro- Recorder’s Office. A complete listing of While the MWA region is served by 10 parcels scheduled for future tax sale can large water purveyors, there are also gram, contact Mojave Water Agency at 760.946.7000. request a copy of the listings from the some 40 smaller systems that provide Tax Collector’s website at www.mytax- water to homes and businesses. 2016 High Desert Water Summit to collector.com under Tax Collector>Tax Residents living in disadvantaged com- Feature State and Local Experts Sale Information>Current Sale Items. munities deserve quality water, but of- Winner of Student Essay Contest Also Beyond his many roles for the County ten maintaining infrastructure is costly. Featured of San Bernardino, Valdez is an active Many of the small systems have pipe- member of the following professional lines, pumps, and storage reservoirs that “Predicting Our Future by Our Own De- organizations: Government Finance Of- are 30-50 years old, resulting in a va- sign” was the theme of the 2016 High ficers Association, California Associa- riety of water-quality issues. Many of Desert Water Summit held April 13 at tion of County Treasurers and Tax Col- the small water systems are challenged the Barstow Community College Per- lectors, California State Association of with naturally occurring and manmade forming Arts Center. Each speaker fo- County Auditors, Association of Gov- water quality issues, including arsenic, cused on key issues and resources that ernment Accountants, and Institute of fluoride, and Chromimum-6. serve to shape the region’s water fu- Internal Auditors. ture. In an effort to address these concerns, a committee formed by the IRWM Plan continued on page 10

The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] 10 High Desert Report An economic overview Victor Valley Wastewater Reclamation Authority’s Apple MWA Offers Assistance to Valley and Hesperia Subregional Reclamation Plants Small Water Providers Scheduled for Completion in Early 2017 Continued Victor Valley Wastewater Reclama- VVWRA is the Victor Valley’s single Speakers included Dr. Christopher tion Authority is so much more than a largest piece of public infrastructure. Thornberg, founding partner of Beacon wastewater treatment plant. VVWRA The main plant in Victorville is more Economics, based in Los Angeles. He is more like a resource recovery facil- than 400 acres, with 42 miles of sewer provided an economic and population ity that protects public health by taking line interceptors throughout the val- profile of the region. Ellen Hanak, Se- the incoming waste and transforming ley. VVWRA serves the businesses nior Fellow and Director of the Public it into something useful. With the help and residents in Victorville, Apple Policy Institute Water Policy Center of nearly $200 million in capital proj- Valley, Hesperia, Spring Valley Lake in San Francisco, provided a statewide ects, funded in part by more than $71 and Oro Grande. With construction of overview of water management issues, million in grants, along with forward subregional water reclamation plants in as well as climate challenges. Addition- thinking planning and management, Apple Valley and Hesperia, VVWRA ally, Lance Eckhart, MWA Director of VVWRA creates millions of gallons is switching from a regional treatment Basin Management and Water Resourc- per day of clean recycled water, gener- model to a distributed treatment model. es, presented water supply and demand ates sustainable green energy and pro- Currently, all wastewater is treated at projections included in the current up- duces high nutrient bio-solids that are the main VVWRA plant in Victorville. date of the Regional Urban Water Man- used for land application. But it wasn’t The new subregionals will allow for agement Plan. always like this. In the last ten years, treatment of wastewater closer to the Also Enrique Arcilla, the 15-year-old VVWRA has gone from a facility that source, while all solids will continue essay contest winner, a sophomore at was essentially dead and facing mul- to the main plant to produce energy. the Academy for Academic Excellence tiple water quality violations, to a plant The benefits are two fold; first, itex- in Apple Valley, presented his essay that is recognized as a leader in both pands VVWRA’s capacity in the in- titled “The Path to Sustainability” at the the renewable energy and wastewater terceptors, which will help delay the April 13 event. As the winner, Arcilla industries. need for extremely expensive upgrades received a $5,000 scholarship. at the Victorville plant; secondly, the When Logan Olds took over as General subregionals will supply a new source The Water Summit ran from 7:15 to Manager of VVWRA in 2006, he had of reliable recycled water within those 11:30 a.m. on April 13 at the Barstow no idea of the headaches he inherited. communities. When completed in early Community College Preforming Arts But it soon became apparent the plant 2017, each of these facilities will pro- Center. The campus is located at 2700 was not operating properly and the vi- vide up to one million gallons of re- Barstow Road. olations were piling up. And to make cycled water per day for above-ground matters worse, VVWRA was broke. A The cost for the event was just $10 and irrigation in Apple Valley and Hespe- included a full breakfast buffet. wastewater plant is essentially a large ria. The recycled water in Apple Valley living organism that if not operating will be piped to the Apple Valley Golf properly can get sick and die. With Course where it will be used to water that grim picture, VVWRA was in its the grounds. Similarly, the recycled death throes, but tough decisions made water in Hesperia will be by innovative managers helped turn used at the Hesperia Golf this once struggling utility around. To- Course and to irrigate the day, VVWRA has 46 employees and grounds at Civic Plaza. The stands on the verge of revolutionizing combined planning and Mojave Water Agency is using an evolving industry. construction cost for the science and innovation to manage Grants have played a big part in subregionals is estimated at VVWRA’s many capital projects. $80 million dollars. That is the region’s water supply. Thanks to more than $71 million dol- a lot of money. However, lars in grants, VVWRA has launched VVWRA and its member an industry leading waste to energy agencies have managed to program, made massive repairs to the obtain $21 million dollars sewer interceptor through the Upper in grants, which essentially Mojave Narrows and started construc- reduces the overall cost by Together, we’re securing water for today and tomorrow… tion on two water recycling facilities 26 percent. That saves local www.mojavewater.org continued on page 11

The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] High Desert Report 11 An economic overview Victor Valley Wastewater Reclamation Authority’s Apple Valley and Hesperia Subregional Reclamation Plants Scheduled for Completion in Early 2017 Continued communities and residents money. And management believes this is a prom- is now the final step for the recycled from an economic standpoint, the sub- ising source of green power that could water before it is released into the Mo- regionals will also provide VVWRA have a huge impact on power genera- jave River. UV disinfection uses pow- with more interceptor capacity, which tion both here in the US and globally. erful lights to essentially disinfect any means the Victor Valley can accom- remaining organisms, making it impos- modate growth throughout the area. One of the biggest challenges VVWRA sible for them to reproduce. The UV has faced over the last ten years came system has allowed VVWRA to stop VVWRA has become known industry- in December of 2010 when a series of wide for its groundbreaking Waste to using chemicals like chlorine to disin- heavy storms severely damaged the fect the recycled water. Energy program, a program where nat- main sewer line in the Upper Mojave urally occurring methane, also known Narrows. The incident was declared a The many projects that VVWRA has as biogas, is created at the plant and Federal emergency and a temporary embarked on in recent years have been used to generate electricity. The pro- emergency bypass line was installed in focused on two issues: to protect public gram has been made possible by a com- just 9 days. Since that time, VVWRA health and the environment. The better bination of grants, Southern California has been working with engineers and VVWRA is able to do that, whether Edison incentive rebates, and a unique construction teams to build a permanent through technological improvements public/private partnership that resulted sewer line that avoids environmentally or repairs and upgrades, the better it is in no additional cost to rate payers. sensitive areas in the Upper Narrows. able to serve and protect our commu- VVWRA teamed with Anaergia Inc. to This project has proven to be costly nity. Secondly, VVWRA has made a build the Omnivore system. Anaergia’s and dangerous. After a number of un- conscious effort to seek the best solu- proprietary recuperative thickener was foreseen setbacks and design changes, tions for problems now and anticipate connected to a retrofitted, formerly de- the project is nearly completed. It’s es- issues related to growth in the future. commissioned anaerobic digester. The timated it will cost $41 million dollars They have done that with the goal of result has been a dramatic increase in by the time it is completed in mid-2016. keeping costs down as much as possi- the production of bio-gas. VVWRA is However, the vast majority of that ex- ble. VVWRA has aggressively sought collecting the bio-gas produced by Om- pense is being picked up by the Fed- out grants, alternative funding, rebates nivore, as well as the other digesters on eral Emergency Management Agency and public\private partnerships to pro- the site, and is using it to fuel a pair (FEMA), with just a small percentage vide the Victor Valley with the best of 800 kwh 2G generators. This elimi- being the responsibility of VVWRA’s possible service at the most reason- nates the need for expensive natural member agencies and ratepayers. able price. Wastewater is something gas that was previously used to power that most people don’t think about, but equipment. The 2G generators are ca- VVWRA has also made a number of VVWRA takes its job very seriously pable of producing enough electricity improvements to its regional plant in and is dedicated to keeping the public’s to meet all VVWRA power needs, es- recent years, including installation of trust. sentially making the plant carbon and a state of the art Aqua Diamond fil- energy neutral. In addition, VVWRA tering system and an ultraviolet (UV) has a long term power agreement with disinfection building. UV disinfection Anaergia, locking in that power at a much lower rate than traditional electri- ISU Insurance Services Ryan McEachron cal service. Plans are also in the works ARMAC Agency President/CEO for installation of a microgrid and bat- Lic. # 0C26179 tery system that would allow VVWRA to store and supply itself with a more One Responsible Source™ For ALL Your Insurance Needs reliable stream of green energy. This project is being paid for entirely by a state grant from the California Energy Commission. VVWRA foresees a time 17177 Yuma Street Phone: (760) 241-7900 in the future that they could even ex- Victorville, CA 92395 www.isu-armac.com port power to the grid. While there are still a few legislative and technical ob- stacles to make that happen, VVWRA

The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] 12 High Desert Report An economic overview Building Opportunity and Time for the High Desert By Tim Watkins, Chief of Legislative and Public Affairs,

San Bernardino Associated Governments

San Bernardino Associated Governments „ 1170 W. 3rd Street,In 2thend Floor High „ San Desert Bernardino, region CA 92410-1715 of San „ Bernar- entire traffic burden for commuters try- and widen the Mojave River Bridge so www.sanbag.ca.gov „ Contact: Jane Dreher, Public Informationdino Officer County, „ (909) transportation 884-8276 continues to ing to get to the interstate. Much like that the freeway median and shoulders March 2012 For information: beJane a Dreher, major Public factor Information in Officer the quality of life of Bear Valley Road, the congestion relief can be brought up to federal standards. 909‐884‐8276 or [email protected] the people who live and work here and experienced after the completion of the This will enhance the safety and opera- beyond.Ellen Pollema, HighAccording Desert Projects to census data, near- interchange was a welcomed sight for tions of the freeway and also improve 909‐884‐8276 or [email protected] ly 40,000 residents of the High Desert commuters and businesses alike. the overall driver experience in this SANBAG/San Bernardino Associated Governmentswork in areas south of the Cajon Pass. And, just as time matters to us as com- area. High Desert Transportation Update This commuter demand relies heavily muters, it matters to our economy as Perhaps the most significant SANBAG/ on a freeway corridor that also serves as well. San Bernardino County serves as Caltrans partnership is the nearly com- San Bernardino Associated Governments (SANBAG) is the Councila primaryof Governments artery and transportation for goods agency movement for San to Bernardino County. SANBAG is responsible for cooperative regional planning and furthering an efficient multi‐modal the gateway to and from the rest of the pleted Interstate 15/Interstate 215 Dev- transportation system countywide. SANBAG serves the 2.1 millionand residents from of Santhe Bernardino rest of County. the nation, offering nation for the various goods that come ore Interchange Project. This approxi- significant motivation to find solutions in and out of the Ports of Los Angeles mately $300 million project was part of As the County Transportation Commission, SANBAG supports freewayto the construction transportation projects, regional challenges and local road before improvements, train and bus transportation, railroad crossings, call boxes, ridesharing, air quality and congestion and Long Beach. Much of that is via an innovative delivery design-build pilot management efforts, and long‐term planning studies. SANBAG us.administers As the Measure economy I, the half‐cent continues transportation to slowly truck, but equally important is how we program that enabled the project team to sales tax originally approved by county voters in 1989 and reapprovedrebound in 2004 from to extend the from downturn 2010‐2040. experienced keep freight moving on our rail lines as develop and build it more than a year

almost a decade ago, housing starts are well. Last year we opened the Lenwood ahead of schedule compared to the typi- SANBAG considers the transportation needs of the entire county,returning with focused attentionto the provided region. by specialized This will only committees, one of which is the Mountain Desert Committee. Following is a summary of some of the projects being Road Grade Separation project which cal process. When complete (a public planned for the High Desert. result in even greater demand on our in- represents just that…a moving econ- ceremony was held May 20th), drivers frastructure. La Mesa/Nisqualli Road Interchange omy. Hundreds of trains pass through will now be able enjoy the multiple en- After decades of development, officials from the City of Victorville,Over County the of Sanpast Bernardino, few years,SANBAG, and the Caltrans San Bernar- that community daily and now they can hancements that were constructed in one kicked off the construction of the new Interstate 15 ‐ La Mesa/Nisquallidino Interchange Associated with a bang Governments in front of a crowd (SAN- do so even more efficiently. Sometimes of the most used corridors in our county. of nearly 200. BAG) has been directly involved in overlooked is the fact that grade separa- The relationship between Interstate 15 The Interstate 15 ‐ La Mesa/Nisqualli Interchange will provide athe new east/westdevelopment cross‐over point and for localdelivery traffic, as of major tion projects help the local community and Interstate 215 will be modified to well as a freeway access alternative to Bear Valley road to the southimprovements and Palmdale Road to to the north. connect This significant people and as well. Improved traffic circulation, make for seamless transitions that will addition to the Victorville transportation infrastructure will ultimately ease congestion, improve local circulation and enhance overall safety in and around Interstate 15 in that area.communities to opportunity and time enhanced response times for emergency greatly reduce the weaving of passenger through enhancements to our transpor- service providers, and less noise are all vehicles and heavy trucks. Trucks will The contractor began work on February 13, 2012. Since then, significant progress has been made on the Oro Grande Wash; Mariposa Road has been realigned to allow for constructiontation of the system.eastern bridge abutment; and, utilities positive by-products of this investment be using newly constructed truck by- (both private and public) have been relocated to make room forFor the new example, interchange configuration. when SANBAG Information and the into the region. pass lanes and passenger vehicles using updates about the project are available on the SANBAG websiteCity (www.sanbag.ca.gov of Victorville) and ongoing were outreach joined to the by nearly Moving forward, finding ways to con- the I-15 fast lane to get up and down community of Victorville will continue throughout the construction period. Individuals interested in getting email the pass will stay in the fast lane as they alerts about the project, which will include schedule changes, traffic300 handling, citizens and detour and plans,business can sign up owners from the to open nect east and west continues to be a crit- transition through Glen Helen, Fontana, the La Mesa/Nisqualli Interchange1 | Page back ical challenge for our region. SANBAG in 2013, we welcomed in an alternative is actively working with the County of and Rancho Cucamonga. to the then heavily-congested Bear Val- San Bernardino, the Town of Apple Val- In addition, wider lanes, improved ley Road. At the time, Bear Valley car- ley, and the City of Victorville to tackle ramps, and enhanced bridges will make ried more vehicles per day than Inter- the funding needs for a complete Yucca for a better drive and more efficient com- state 15, and as a result commuters and Loma Corridor. This three-pronged ap- mute for the nearly one million vehicle businesses felt the impact during peak proach has already seen major strides trips through the pass weekly. Route 66 hours…which at that time represented toward connecting the eastern portion which runs parallel to I-15, will be re- most of the day. Today, because of La of the High Desert to Interstate 15. The connected, providing an alternate route Mesa/Nisqualli, traffic on Bear Valley Yucca Loma Bridge and Yates Road when needed and improve overall fire Road is manageable and people can ac- widening are complete and construction and public safety response times. cess their destinations more effectively to widen Yucca Loma Road, the eastern Couple the Devore Interchange Proj- and efficiently. leg of the corridor to Apple Valley, is ect completion with the concurrently About a year later, Victorville’s neigh- underway. scheduled completion of the Caltrans bor to the south, Hesperia, was also Our transportation partners at the Cali- Cajon Pass Project that is rehabilitat- joined by SANBAG to usher in the new fornia Department of Transportation ing concrete lanes on I-15 between the Ranchero Road Interchange. Couple this (Caltrans) have kicked off the recon- summit and State Route 138, and com- project with the Ranchero Road Rail- struction of the “D” and “E” Street in- muters, recreational travelers, and other road Underpass to the east, and residents terchanges. This all started as part of a users of the system will experience an of this growing community were able to two-phase project to widen Interstate 15 improved transportation system that re- have better access to and from Interstate between Victorville and Barstow almost duces travel times and increases access 15. Prior to the interchange comple- two decades ago. The work underway to and from the High Desert. tion, Main Street carried practically the will reconstruct these two interchanges

The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] High Desert Report 13 An economic overview Lahontan Regional Water Quality Control Board’s Stormwater Program By Patty Z. Kouyoumdjian, Executive Officer

The Lahontan Regional Water Qual- Minimizing sediment transport im- that the post-construction BMPs will ity Control Board, known as the La- pacts is the primary permit objec- be effective at meeting this require- hontan Water Board, is a state agency tive. For each project a site-specific ment. While there are a wide range of whose mission is to protect surface Stormwater Pollution Prevention BMPs that may be proposed, the La- and groundwater uses for current and Plan, or SWPPP, must be prepared hontan Water Board promotes BMPs future benefit of all Californians. The by a Qualified Stormwater Develop- appropriate to the arid high desert board has seven members appointed er. It must identify appropriate Best climate, using Low Impact Develop- by the governor and confirmed by the Management Practices, or BMPs, ment, or LID, principles discussed Senate. Staff offices are located in that will be installed and maintained below. Effective post-construction South Lake Tahoe and Victorville. by a Qualified Stormwater Developer BMPs must be proposed in the proj- Implementing a number of federal for both the construction and post- ect design. Numerous termination and state regulatory programs, board construction periods. requests have been declined by the decisions directly or indirectly affect The water board’s key objective is en- water board where post-construction most all residents within the Lahon- suring that effective post-construction BMPs were not in place. To speed tan Region. The Lahontan Region BMPs are in place at the time permit the termination process, proponents encompasses the Great Basin portion termination is granted. The permit should include photographs show- of California. It extends from Ore- requires that the post-construction ing the periphery of the construc- gon south to the San Gabriel and San runoff is equal to or less than pre- tion site, especially runoff locations. Bernardino Mountains and eastward construction runoff and that runoff Photographs of the interior drainage from the crest of the Sierra Nevadas does not cause downstream effects, features, unless integral to post-con- to Nevada. Within San Bernardino including erosion or modification of struction BMPs such as prefabricated County, numerous board actions drainage patterns, swales or stream infiltration chambers, are less impor- are taken to protect and improve the channels. A site-specific hydrology tant. state’s waters. This article’s focus is calculation must be done to verify Industrial Activities the Stormwater Program. Industrial permit coverage is required Stormwater Program based on industry type or Standard Requirements Industrial Classification (SIC) codes. Statewide general orders (e.g. permits) For manufacturing facilities cover- exist for three main stormwater pro- age is required for SIC codes 20XX gram categories; industrial, construc- through 39XX and 4221 through 4225. tion, and municipal. Permit links are Permitted facilities must prepare and on the State Water Resources Control implement a SWPPP that identifies Board website at: http://www.wa- appropriate BMPs. The permit re- terboards.ca.gov/water_issues/pro- quires stormwater runoff sampling grams/stormwater/. Coverage under from Qualifying Storm Events. Staff all permits is obtained through the has inspected many industries in the SMARTS database, which can be ac- Victor Valley that have ineffective cessed at that website. BMPs or conduct operations in or near ephemeral waterways, causing Construction Activities adverse effects to waters. Identifying Construction permit coverage is re- and requesting modified practices and quired for any land disturbance great- improved stormwater management er than one acre. Note that disturbed will be the focus of future inspec- tions. The permit includes two new area, not project size, is the governing Porous concrete makes up part of a new options for enrollees. A No Exposure factor. Additionally, project compo- parking lot in Victorville at Valley Hi nents forming a larger plan of devel- Certification may be obtained if all Toyota (darker pavement) opment must be considered together. industrial materials and activities are continued on page 14 The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] 14 High Desert Report An economic overview Lahontan Regional Water Quality Control Board’s Stormwater Program Continued protected by a storm-resistant shelter. water from the 85 percentile 24-hour the ephemeral wash downstream en- A Notice of Non-Applicability signed precipitation event. Effective main- vironment by increasing runoff ve- by a registered professional engineer tenance is the key to ensure post-con- locities and volumes, causing exces- may be submitted if a facility is engi- struction BMPs continue to protect sive sediment erosion and sediment neered to contain the maximum his- water quality. deposition in lower-lying areas, bury- toric precipitation event or is located Low Impact Development, Stream ing wildlife and riparian habitat. In- where there is no hydrologic connec- and Wetland Impacts corporating LID principles in future tion to waters of the United States. new and re-development projects will In the earliest project design phase, protect and improve our unique des- applicants should ert environment and water quality for assess and evalu- our future. ate how site con- ditions such as Proposition 1 Grant Funding soils, vegetation, Resources and flow paths A new opportunity to obtain storm- should be consid- water project funding is available ered in the place- through Proposition 1 grants. This ment of buildings requires applications to reference an and impervious adopted Stormwater Resources Man- surfaces to re- agement Plan that identifies projects duce adverse im- on a watershed basis. That plan may pacts to surface become a component of the Mojave flow paths, water Water Agency’s Integrated Regional quality and wild- Water Management Plan and can be life habitat. Envi- used to support grant requests. The ronmental docu- water board encourages local munici- Erosion in ephemeral wash caused by concentrated ments should palities to cooperate and cost share in urban run-off, Hesperia identify how the preparing this plan. project incorpo- Municipal Activities rates Low Impact Development, or Municipal permit coverage is re- LID, principles to protect water qual- quired for the Town of Apple Valley; ity. The High Desert has unique rain- Cities of Barstow, Hesperia, and Vic- fall and stormwater runoff patterns. torville, and portions of the County of LID practices should be cus- San Bernardino. In addition to con- tomized for each individual trolling pollutants in stormwater run- site to preserve pre-develop- off from municipal activities (shops, ment hydrology by limiting yards, streets, etc.), municipalities impervious surfaces (i.e, pav- must adopt ordinances providing le- ing), promoting stormwater gal authority to control pollutants (in- infiltration, minimizing land cluding sediment) into and from the disturbance, and incorporat- municipal storm system. Other pro- ing structural BMPs such as gram areas include public outreach pervious pavement, infiltra- and education, illicit discharge identi- tion galleries, energy dissipa- fication and elimination, construction tion, etc. Water board staff site controls, and post-construction have observed many older BMP requirements. The permit re- projects have radically altered quires new projects to capture storm-

The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] High Desert Report 15 An economic overview High Desert Businesses Give MDAQMD High Marks for Customer Service By Christie Robinson, CRE Specialist Mojave Desert Air Quality Management District In today’s economic climate, cus- • More than 65% of respondents • “The smoothest permitting for tomer service can mean the differ- rated the ease of reaching District any air district in California. Well ence between success and failure staff by phone or e-mail as “excel- done!” for some businesses and organiza- lent.” • “MDAQMD personnel have al- tions. In January of this year, the • Accuracy of service/information ways demonstrated a high degree of Mojave Desert Air Quality Manage- provided by permitting staff was rat- professionalism, knowledge, and in- ment District–the local air quality ed “excellent” by more than 64%. terest in helping with issues regard- agency for San Bernardino County’s ing compliance.” High Desert and Riverside County’s • Courtesy and professionalism of Palo Verde Valley–initiated a Cus- compliance staff in conducting facil- According to Eldon Heaston, tomer Service Satisfaction Survey in ity inspections was rated “excellent” MDAQMD Executive Director, an effort to provide the MDAQMD by almost 72%. “The survey’s results will help the Executive Board with insights on • Timeliness of permitting or com- District construct a road map for how well staff is meeting the needs pliance staff in conducting facility implementing improvements and to of regulated business while issuing inspections was rated “excellent” by continue providing optimum servic- permits, inspecting facilities and re- more than 60%. es to the regulated community in the near future.” sponding to questions about air qual- • Permitting and compliance staff ity rules and regulations. knowledge of technical issues and The MDAQMD is responsible for The MDAQMD’s last Customer Ser- applicable regulations was rated “ex- regulating stationary air pollution vice survey– which was conducted cellent” by almost 72%. sources and implementing state and in 1999–produced 26 responses. The federal air quality rules and regu- • Almost 60% of participants rated lations within its 20,000 square 2016 survey produced a total of 60 the level of service provided by the responses from local industry. More mile jurisdiction, which is home to MDAQMD compared to other Cali- more than 550,000 residents. The than 650 postcards announcing the fornia air districts as “excellent.” survey were distributed using direct MDAQMD has garnered a reputa- mail and e-mails to permittees and • Nearly 85% of the respondents tion as one of the most responsive other interested parties between Jan- rated their overall satisfaction with and business-friendly air districts in uary 11, 2016 and March 1, 2016. ease of applying for a permit or au- California. thority to construct between “excel- To find out how doing business The MDAQMD’s Customer Service lent” and “good.” Satisfaction Survey was designed within the MDAQMD could be good using Survey Monkey and posted Several questions on the survey for your business, call 760.245.1661 to the district’s website. The ques- asked for comments; a sampling is or visit us online at www.mdaqmd. tionnaire was designed to elicit re- provided below: ca.gov today! spondents’ opinions on a variety of • “Inspectors have been approach- district services, as well gauge how able, knowledgeable, and reach- well the district is performing and able.” how it can improve. • “Work well The survey consisted of 15 rating with the staff. The scale questions, ranging from ease staff is always of contacting the district, technical willing to meet in and rule support, and ease of apply- person to discuss ing for a permit. Respondents were issues.” asked to provide a rating for each topic on a scale between “poor” and “excellent,” or N/A for not applica- ble. Below are some of the survey’s findings:

The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] 16 High Desert Report An economic overview High Desert Corridor Final EIS/R to be Released Late April By Laurie Hunter

The High Desert Corridor, in the EIS Outreach). need to be a future Oversight Board High Desert of both San Bernardino The High Desert Corridor (HDC) is or JPA (Joint Powers Authority) of and Los Angeles Counties, an east- a prototype for how to intelligently some type that will be responsible west highway between Palmdale plan, without “sprawl”, to join two for contracting out for engineering, and north Victorville and private major population centers—and like land acquisition, and construction/ sector-supported rail line connecting the olden days—using transporta- development. Anaheim to Vegas, is close to being tion infrastructure built first—to pro- DESCRIPTION: The HDC has four environmentally cleared for land ac- vide the backbone for planning the components in one right-of-way quisition and development. The final best land use for the region. In the (ROW): Caltrans-produced EIS (environ- High Desert there is an abundance of • Highway/expressway between mental impact statement), followed housing, but residents need to com- by a month-long review period, the SR 14 in Palmdale and the I-15 mute for hours to jobs far away. To at Falchion Road in Victorville was due to be released in late April, reduce commute times and provide 2016. After the Federal Government jobs, the HDC affords the opportu- • High speed rail tracks to connect issues a Record of Decision, usually nity for land use planning and in- rail stations: XpressWest’s station, within a few months of EIS release, vestment/development that creates on the east side of the I-15 where land acquisition of the right of way jobs: the goal is increased mobility, Dale Evans Parkway enters/exits— can legally begin. a safer alternative that saves half the traveling to the west in the HDC High Desert Corridor time and removes trucks from SR Right of Way to Palmdale’s future California High Speed Rail (CAH- Interactive Map 138, and improves the quality of life by spurring jobs along the alignment SRA)/Metrolink Station You can get the latest information, that enable residents to spend more • Green corridor to use space not see where the on and off ramps are time at home instead of commuting. occupied by the highway and rail likely to be located, and see land use tracks for solar energy generation to and public comments relating to spe- The HDC is locally supported by a two-county coalition of local gov- power the trains and an underground cific points by doing a web search transmission line for solar rooftop for the HIGH DESERT CORRI- ernments who govern a Joint Powers Authority to stimulate its develop- and solar farm connection to the DOR INTERACTIVE MAP. The grid, and; final alignment, and cost estimates ment in order to advance economic will be announced when the EIS is development and investment in • Bikeway between Adelanto and released, and you can follow prog- the Victor and Antelope Valleys. Palmdale ress on the Interactive Map (devel- The HDCJPA is chaired by Robert The EIS will environmentally clear oped by Arellano and Associates Lovingood, with Vice Chair Michael 63 miles of highway/expressway, under contract from Metro for HDC D. Antonovich and local board repre- but realistically, the eastern seven sentation by Ryan McEachron, Vic- miles in Apple Valley will not be torville; Scott Nassif, included in an initial P3. Private sec- Apple Valley; Richard tor financing, combined with public Kerr, Adelanto; and transportation funding, will require Jim Ledford, Palm- the project to be developed in mul- dale. tiple phases, leaving the eastern sev- Financing: The HDC en miles through Apple Valley for will be developed as a the future. In the Victor Valley, the public-private partner- HDC P3 will travel from US 395 in ship (P3), with private Adelanto, approximately along Air investment providing Expressway through SCLA in Vic- the majority of fund- torville to an I-15 interchange at Fal- ing. Because govern- chion Road, then roughly six miles ment funding is also into Apple Valley, ending near the needed, there will North Apple Valley Industrial Park.

continued on page 17 The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] High Desert Report 17 An economic overview High Desert Corridor Final EIS/R to be Released Late April Continued

Financing agencies to construct projects with plied to improvements to Metrolink Construction costs can be initially significant private involvement. to bring passengers to Palmdale to reduced by working with the pri- • EIFDs (Enhanced Infrastruc- transfer to High Speed Rail transport vate sector on plans to build the ture Development Districts), one by XW to Las Vegas HDC in phases as funding strategies surrounding the Palmdale HSR/ • Revenue to be determined from are devised. For example, develop Metrolink Station and one surround- the green corridor energy generation only two or four lanes of highway- ing the XW Station. Modeled some- and transmission, electric and natu- expressway initially-reserving right what after Redevelopment Agencies, ral gas fueling stations, fibre optic of way for future widening for lanes state legislation provides new author- and broadband lines, and more. needed at a later date. ity for lesser tax increment financing P3 Revenue Studies Underway of real estate development Yet another possibility for phasing To provide preliminary information is separating the timelines and con- • Cap and Trade Financing: The to the private sector to gauge their struction of the highway and rail HSR Tracks are eligible for Cap and interest, two studies are currently components to build the rail tracks Trade funding in their own right and underway: first if there is private sector- fund for CAHSR “Connector” expendi- ing interest to begin before highway tures in Palmdale Highway: Metro has just selected a contractor to perform a study to de- funding is available. Then the right • Costs will be shared to develop of way (ROW) for the highway can termine the revenue that can be ex- the CAHSR connector ROW and pected from tolling the middle sec- be preserved. The green corridor can tracks be planned and developed even later tion of the highway between 100th when the latest technology of the day • Local 1/2 cent sales taxes. 1) The St. E in Palmdale and US 395 in can be used for operations of trains, HDC is named in Measure I as eli- Adelanto. A previous study by In- lighting, maintenance, thus increas- gible for the 1/2 cent sales tax in San fraConsult estimated tolling would ing revenue. Bernardino County, but more likely provide $4.7 Billion in 2012 dol- a new Measure would be considered. lars over 45 years (low forecast); Strategies to phase highway or rail 2) In Los Angeles County, the Metro $5.8 Billion (high forecast). Tolls development will be determined in Board is close to placing a Measure in the mid-section will be adjustable the coming year. Full buildout of an R2 for the November 2016 ballot for cars and trucks and attract new eight-lane highway and HSR tracks, that specifies the Antelope Valley business from new trucks traveling and the last non-P3 seven miles is Metrolink Line will have priority for from Chicago/Vegas, and Northern/ around $8 Billion. Strategies to re- new Metrolink R2 funding, and $170 Central California, and the Ports of duce costs and to attract private Million for ROW purchase in the Hueneme, LA, and Long Beach to sector funding can make this sum first five years, with authority for ac- continued on page 18 manageable and reduce initial costs celeration through a P3 and funding by billions. Phasing will be decided available in 45 years by the timing of available public and without a P3. Polling private financing. in North Los Angeles Possible sources of funding are: County showed 71% • Tolling the middle section of the public support for highwayn Adelanto using a new 1/2 sales tax to fund the HDC • Applying a “toll” on passenger ticket sales between Palmdale and • FAST and Las Vegas, regardless of whether the Freight: New Fed- operator is XpressWest, CAHSRA, eral Transportation Metrolink, or private operators not funding legislated by in existence today Congress contains provisions for infra- • TIFIA (highway) or RRIF (rail- structure that relieves road) federal loans and PABS (Pri- freight congestion vate Activity Bonds) are debt in- which might be ap- struments issued by state or local The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] 18 High Desert Report An economic overview San Bernardino County Economic Development Agency High Desert Corridor Improving the Job Prospects of Residents Final EIS/R... By Mary Jane Olhasso, Assistant Executive Officer, County of San Bernardino Continued One of the most rewarding aspects of the (NCCER) stackable certificates. Bar- new intermodal facilities at SCLA, San Bernardino County Economic De- stow offers this program at a lower cost and logistics facilities at the Apple velopment Agency’s work is improving compared to similar programs offered at Valley Industrial Center, Barstow, the job prospects of residents. Work- private colleges. and Hesperia. ing with the business community on These programs and others are true job relocation and expansion opportunities Rail: The High Desert Corridor JPA creation successes. California Steel ac- selected a contractor to perform an and implementing proactive workforce cepted five Barstow Community - Col development programs are just some of investment grade study to assess the lege students into their paid internship volume of rail passengers between the ways the agency makes an impact. program over the last several years and a Moreover, the department’s efforts are few have stayed on to become full-time Anaheim and Las Vegas and their augmented by valuable partners in edu- California Steel employees. A number willingness to pay for HSR to Las cation, investment and real estate who of other companies have partnered with Vegas instead of car or plane, as work in collaboration to ensure job cre- Barstow Community College, either well as interim use (until CAHSR) ation opportunities. by recruitment, placement, advisory, of Metrolink to get to Palmdale to A great example now being led by edu- or donations, including: NRG Energy, board an XW car to Las Vegas. The cation partners is the implementation of Abengoa Solar, Rio Tinto, Trinity Con- study, which will provide a revenue a nearly $15 millon grant awarded to struction, National Training Center-Fort estimate, will show if the rail com- Chaffey College and the Inland Empire Irwin, Marine Corps Logistics Base, and ponent of the HDC will need any Regional Training Consortium (IERTC) Burlington Northern Santa Fe. public funding and if so, how much. in 2014. The competitive grant was Another example of how community The study is slated for completion awarded by the Trade Adjustment As- colleges are increasing job prospects is June 30, 2016. sistance Community College and Ca- the work being done by Victor Valley High Desert Corridor Interactive reer Training (TAACCCT), which is College. The Welding Department at co-administered by the Department of Map: don’t forget to search the web Victor Valley College has been an ac- for “High Desert Corridor Inter- Labor and Department of Education, tive department in the community for to improve manufacturing training for more than 35 years as a Los Angeles active Map” to get specific informa- the Inland Empire. The IERTC includes Certified Testing Facility for the Los tion about various locations along the 10 community colleges, 2-four-year Angeles Department of Building and alignment and progress of the EIS. universities, and the Manufacturers’ Safety, an American Welding Society Council of the Inland Empire as well as Certified S.E.N.S.E educational facil- several faith-based and community or- ity, and a Fabricator and Manufacturers ganizations. Association International Educational In March Chaffey and the consortium partner. Today, the Victor Valley Weld- celebrated the opening of the Industri- ing department has evolved into a robust al Technical Learning Center (InTech program that has placed Center) located on the campus of Cali- students throughout the fornia Steel Industries (CSI) that will years with government train thousands of workers in advanced agencies such as NASA, manufacturing, advanced transporta- the Naval Nuclear Sub- tion, logistics, energy and utilities, as marine Assembly dock well as computer/ICT/digital media. in Virginia, and the These programs are conducted at no or Marine Corp Logistics a proud part low cost to employers and employees, Base in Yermo. It has of the thanks to the TAACCCT grant. served as a pre-employ- High Desert Community Through TAACCT funding, Barstow ment testing facility for Northwest Pipe and Cas- sponsoring Community College now offers a low- the ing, partnered with local cost, two-year plan in Industrial Main- 55th Edition Bradco High Desert Report tenance Mechanic Technology. This industry to create intern- program offers National Center for ships and pathways, and Construction Education and Research is continually working continued on page 19 Cushenbury Plant 5808 State HWY 18, Lucerne Valley, CA 92356

The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] High Desert Report 19 An economic overview Keeping the American Drive San Bernardino County Economic Development Alive for Future Generations Agency Improving the Job Prospects of Residents By Victorville Councilman Ryan Continued McEachron, SANBAG President to provide students with job placement continue throughout this year. Last year renowned economist Joel opportunities. Kotkin published a study entitled The department also hosted educational Thanks to additional funds, Victor Val- workshops in collaboration with other “Housing the Future,” which identified ley’s successful Welding department partners, provided resources to educate the Inland Empire as having one of the will expand its training in metal forming and prepare local manufacturing busi- largest youth populations in the nation and fabrication with the planned addi- nesses that are interested in exporting with approximately 180,000 millenni- tion of space and resources. Construc- or expanding their export base, and en- als–ages 18-35 years old. As the father tion will begin on their new facility, gaged in business-to-business match- of two children under 10 years old, which is slated to be completed by the making meetings, both locally and in these statistics leave me with a linger- end of this year. other countries. Additionally, the county ing question: are we building enough The efforts of Barstow Community Col- is participating in the Advanced Manu- homes to keep up with this future de- lege, Victor Valley College and InTech facturing Partnership’s (AMP SoCal) mand? Center are all part of a collaborative efforts with USC Center for Economic Development as the lead agency to pro- According to Kotkin, San Bernardino solutions-oriented effort to provide an economic boost to the county by provid- mote and support the aerospace and de- County and the State of California suf- fense industry in Southern California. fer from a chronic housing shortage ing new skills to workers who are then which creates a lack of affordability able to quickly fill jobs in manufactur- These multiple outreach efforts and the for aspiring homeowners, including ing, distribution and related technology progress to date will continue to posi- sectors. millennials. With an estimated state- tion this region as a premier choice, es- The Economic Development Agency pecially in Southern California, for new wide shortage of two-million homes investment and job creation. and coinciding affordability gap, more has also been focused on a manufac- and more young working families will turing initiative that builds awareness likely be forced to leave California. So of the county’s advantages for manu- how do we reverse this trend? Clearly, facturing businesses: it identifies opportunities we need to support public policies that for manufacturers outside encourage vibrant new community de- the county to consider Wo rkforce Development Board velopment and harness the economic expansion or relocation growth that results when we address to the county; identifies Providing the workforce ASSiStAnce you need our chronic housing shortage. obstacles to expansion from our buSineSS reSource teAm of existing county busi- For example, a study by Mark Boud of The San Bernardino County Workforce Real Estate Economics reported that if nesses; and informs busi- Development Board (SWDB) is a public-private San Bernardino County were able to nesses about workforce board appointed by the County Board of incentives and programs. Supervisors that utilizes federal funds to create address two-thirds of its current hous- workforce development programs for residents ing shortage, it would benefit from The team has already and businesses in San Bernardino County. over $3.5 billion in new economic ac- reached out to nearly • On-the-Job Training Funds tivity. Other housing experts estimate 1,000 unique manufac- • Business Consulting that 1,000 new homes create approxi- turing companies, result- • Process Improvement Consulting • Human Resources Hotline mately 3,000 full-time jobs, $160 mil- ing in more than 258 di- rect contacts that allowed • Staff Recruitment lion in wages and $110 million in tax • Facilities Available for Recruitment staff to share information revenues, which can be invested in • Layoff Prevention Services on the benefits of San • Business Workshops quality of life necessities such as new Bernardino County. More • Labor Market Information roads, schools, parks, public safety than 90 of those contacts • Advertise Job Opportunities at www.csb-win.org and water infrastructure. were sent follow-up let- Our Job is to Power Up Your Future... ters and general cost com- Likewise, UC Riverside’s Center for Call us today at (800) 451-JOBS (5627) parisons for manufactur- Economic Forecasting and Develop- This WIOA Title-I financially assisted program, is an equal opportunity employer/program. ment published a report stating that ing in San Bernardino vs. Auxiliary aids and services are available upon request to individuals with disabilities, California Relay Service 711. Los Angeles or Orange more housing is needed to sustain eco- JAMeS C. RAMOS, Chair, Third District Supervisor | ROBeRT A. LOvIngOOD, vice Chair, First District Supervisor | JAnICe RuTHeRFORD, Second District Supervisor County. This effort will CuRT HAgMAn, Fourth District Supervisor | JOSIe gOnzALeS, Fifth District Supervisor continued on page 20 gRegORy C. DeveReAux, Chief executive Officer | SAnDRA HARMSen, executive Director, Workforce Development Board

The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] 20 High Desert Report An economic overview Energy Disclosure in California has a Bumpy Road Keeping the American By Marika Erdely, Founder and CEO of Green EconoME Drive Alive for Future Generations Continued AB 1103, which was in effect during sues with privacy. The new law also 2014 and 2015, was repealed on Oc- eliminates the building owner’s re- nomic growth in the Inland Empire. tober 8, 2015, to eliminate energy dis- sponsibility to disclose the data when Kotkin, Boud and UCR all agree that closure requirements as of 12/31/2015. involved in a financial transaction. In housing is a cornerstone of our econ- As you may recall, AB 1103 required current form, buildings over 50,000 omy; however, during the recession, all sales, refinance and single tenant sq. ft., including multi-family, will be our County lost over 70,000 construc- leases of buildings exceeding 10,000 required to disclose their energy us- tion jobs and has only replaced 11,000 sq. ft. to disclose their energy usage age on an annual usage, with it being of them over the past few years. prior to the signing of financial docu- a public disclosure within a year of re- Like many parents, I want my children ments. porting. to get a great education, a good pay- The California Energy Commission Recently, CEC held a workshop on ing job, and own a home to enjoy with (CEC), who administers this law, stat- AB 802’s progress, and showed this their family. A recent article in the ed that one of the reasons to repeal AB timeline for implementation (see be- Daily Press (3/29/16) outlined how a 1103 was that the utilities were having low): majority of millennials in the National difficulty accessing energy usage in With this tentative timeline, commer- Association of Realtors’ March 2016 multi-tenant buildings due to privacy cial building energy disclosure is be- Home Survey said they want to buy a laws. All meter rate payers own their ing delayed, yet again to April 1, 2018 single-family dwelling. However 78% energy usage unless they give authori- and multi-family disclosure would be- of millennials in California are “un- zation to release it. Therefore, a build- gin a year later on April 1, 2019. Let’s certain or doubtful” about obtaining ing owner would not have access to not hold our breath anticipating these a mortgage. This is no surprise, since tenant data in order to comply with dates, as the asterisk gives a clear pic- California is currently ranked 49th in AB 1103, and in multi-meter situa- ture that this is probably not going to the U.S. in homeownership, while the tions (retail, some commercial) it was happen. even more difficult to attain this infor- average homeowner spends over 25% mation. Therefore, an accurate energy In regards to enforcement, AB 802 of their income on housings costs– disclosure was impossible to produce. does provide for enforcement mecha- more than any other state. I fear if we The CEC also stated that compliance nisms to impose a civil fine, but we don’t support policies that encourage was limited, most likely because no have yet to see what form this will be. more workforce housing in California, enforcement of the law occurred, and Los Angeles and its Energy Disclo- my children will join millennials and the reported 625,000 U.S. residents many building owners took the chance sure Law is Moving Forward and did not comply. The CEC decided who left California and moved to to repeal the entire law and to start all The City of Los Angeles is also con- neighboring states between 2007 and over. sidering an Energy and Water dis- 2014. continued on page 21 AB 802, California’s new Energy Dis- Fortunately, there’s reason for opti- closure Law, ini- mism in the High Desert. We remain tially focuses on the an important destination for logistics utilities requirement and our elected leaders remain focused to provide aggre- on attracting businesses, jobs and gated energy usage commerce to spark a thriving econo- data, also known my. We’ve also seen several excellent as ‘whole building new residential developments come data’. This would through the pipeline in recent months, require the entire so we’re on the right track. I’m con- building’s energy vinced that if we continue to embrace usage, common area quality housing, our children, millen- and tenant meters nials, dual-income families and se- to be downloaded niors will all find a place to call home into the EPA’s En- ergy Star Portfolio in the High Desert, Inland Empire and Manager Software Golden State. as one number. This eliminates any is- The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] High Desert Report 21 An economic overview Energy Disclosure in California has a Bumpy Road Continued closure ordinance for existing build- Energy Use Intensity (EUI)), wouldn’t have 50% of the current existing ings (www.laexistingbuildings.org). you take steps to reduce these costs? It building stock to be ZNE by 2030 as We learned that the new ordinance is like everything else in life: if you well. This appears to be a good but had been drafted and sent to the City know you are over-spending, you lofty goal since most building own- Council’s Energy and Environment make changes. Why should it be any ers have no idea how their building Committee during April 2016 for ap- different with energy costs? stands in regards to energy efficiency. proval. Plans for implementation are Energy Disclosure provides this data, Which brings us back to the question- set to begin during 2017. especially if you further analyze the able decision to eliminate AB 1103. The current Energy Benchmarking energy usage data and costs and pro- Why eliminate a law that provided this Compliance Proposal to include: duce financial graphic analysis to knowledge to the building owner? Re- understand the financial metrics, like pealing the law that provides insight • Starting 2016 – City-owned build- needed to drive towards ZNE seems to ings > 7,500 ft. Green EconoME prepares. As every- one says, big data is valuable. be counterintuitive. We find this step • Starting 2017 – all buildings > by the CEC a detriment to the goal of 50,000 ft. So once you know your building is ZNE. inefficient, retrofitting your lighting • Starting 2018 – all buildings > with LEDs is the easiest way to cap- Market Valuations to Take Note 25,000 ft. ture the ‘low hanging fruit’ and pos- It is also important to note that Energy • Starting 2019 – all buildings > sibly reduce your total energy kWh Disclosure is closely tied to market 10,000 ft. This size building is a by 15-20% and your lighting kWh by valuations. If a building’s operating sticking point, and the new ordi- 60%. Providing HVAC control with costs are lower, this provides for high- nance may not drop to this level. new wireless thermostats can provide er valuation in the market value of the even more cost savings by easily man- The Los Angeles disclosure will also building. Cap rates are obviously af- aging schedules and reducing con- require energy and water efficiency fected by operating costs. Energy Star sumption in unoccupied spaces with retrofits if buildings do not meet a and LEED Certifications can provide door and occupancy sensors. These certain level of energy or water effi- the labeling for this higher valuation. retrofits will reduce your building’s ciency. LA’s energy disclosure infor- Should you wish to know more about kW demand and kWh usage and you mation will also become public one Energy Disclosure and how your can save big. year after compliance begins. There building can consume less energy, feel will be penalties and fines levied for Utility incentives can help reduce the free to contact Marika Erdely at 818. non-compliance. It is assumed that the cost of the retrofits, along with- ac 681.5750 or Marika@greeneconome. County of Los Angeles and its neigh- celerated depreciation and various fi- com. boring cities will also follow suit and nancing methods, including Property Marika is Founder and CEO of Green implement their own version of an En- Accessed Clean Energy (PACE). EconoME (www.greeneconome.com), ergy Disclosure law once Los Angeles How does the Building Code affect a full service Energy Consulting firm signs their law into place. all of this? located in Pacific Palisades. She is Why is Energy Disclosure California’s Title 24, the Building a Certified Energy Auditor (CEA), a Important and Why Should You Code related to energy will be up- LEED AP BD+C, and holds an MBA Care? dated again in early 2017. It is impor- from Pepperdine University. Marika tant to note that the goal of Title 24 was formerly the CFO for New Mil- If all you do each month is grumble lennium Homes, the master developer about your electricity bill but have is to build to Zero Net Energy (ZNE) standards for residential construction for The Oaks of Calabasas. Marika’s no idea if these charges are reason- background is deep in financial analy- able for your building and its use, why by 2020 and commercial (including multi-family) by 2030. What is ZNE? sis and the desire to understand how wouldn’t you want to know how your new technologies can reduce energy building stands compared to similar Simply, a building’s energy consump- tion is offset by its energy generation consumption. Green EconoME holds buildings? Benchmarking a building a License B (#10001368), is a VAR in the EPA’s Portfolio Manager Soft- during an annual period to have a zero net effect. for Daintree Networks (lighting and ware provides this knowledge. HVAC control) and is an Energy Star If you knew that the energy usage was With the goal to build ZNE for com- Partner. extreme (low Energy Star score or high mercial by 2030, the CEC hopes to

The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] 22 High Desert Report An economic overview Congressman Paul Cook Leads Victor Valley College the Charge for National Security Serving the High Desert Col. Paul Cook (Ret.), U.S. Congressman, 8th Congressional District for 55 Years Our nation is faced with a litany of administration took office in 2008. Robert Sewell, Director Marketing & Public challenges, both at home and abroad. To address this troubling level of Information Officer / ASB Advisor / Public As your representative in the U.S. debt, House Republicans and I are Relations / ASB Victor Valley College House of Representatives, here’s an fighting for the Debt Management Victor Valley College (VVC), now in update on the important work I’m and Fiscal Responsibility Act to be its 55th year, serves an area encom- doing on behalf of my constituents. enacted into law. This important passing roughly 2,200 square miles Strengthening our national security measure requires the President and and is located on a 253-acre campus in the wake of the San Bernardino his administration to appear before at the center of the three major com- terrorist attack is my top priority in Congress prior to each potential debt munities of the Victor Valley (Apple Congress. My colleagues and I in the limit increase and provide testimony Valley, Hesperia and Victorville). House have and will continue to pres- and detailed reports including reduc- VVC serves the cities and commu- sure the administration to increase tion proposals and progress on debt nities of the High Desert: Adelanto, the screening of refugees from Iraq reduction. It also establishes shared Apple Valley, Helendale, Hespe- and Syria. The Security Against For- legislative-executive responsibil- ria, Lucerne Valley, Oro Grande, eign Enemies (SAFE) Act, which I ity for a clearly defined debt reduc- Phelan, Piñon Hills, Silver Lakes, supported, is an integral step towards tion plan. If we are going to tackle Spring Valley Lake, Victorville and this end. We need to remain vigilant the largest fiscal problem our nation Wrightwood. VVC also features in our screening process to ensure faces, we must have a roadmap in a 13-acre Regional Public Safety Training Center (RPSTC) in Apple that ISIS doesn’t exploit weaknesses place. Valley. In total, a population base in our immigration system. Recently, the House Budget Com- of approximately 400,000 people In addition to the SAFE Act, I re- mittee approved a plan to reduce the with over 20 feeder high schools and cently supported the Counterterror- deficit by $7 trillion, balance the na- diploma-granting institutions rely on ism Screening, and Assistance Act tion’s budget within 10 years, and VVC for their educational needs and of 2016. This bill, which passed in put the country on a path to eventu- opportunities. the House, tightens border security ally pay off the national debt. I’m Great strides have been made in the screening abroad, mandates a re- hopeful in the coming months we past year to complement our aca- port card to assess the border secu- will see a responsible budget pass demic programs and offerings. In rity of foreign countries, establishes the House and Senate—one that puts addition to the degrees–Associates minimum border security standards, our fiscal house in order and protects in Science and Associate in Arts–of- and withholds foreign assistance for national security. We owe it to the fered in 23 different disciplines, the countries that don’t meet border secu- next generation to leave them a debt- Chancellor’s office approved, - be rity standards. Improving our allies’ free, stronger, safer America. That ginning Spring 2015, four new As- capacity and increasing coordination will certainly continue to be my pri- sociate Degrees for Transfer. These will improve our national security by ority as your Congressman. degrees (Political Science, English, mitigating potential threats before If you’d like more information re- Geography, and Psychology) pro- vide students guaranteed admission they reach our soil. garding the work I’m doing in Con- with junior standing to the California While our national security needs gress, please visit my website at State University system. are significant, we must do more to cook.house.gov and sign up for my put the federal government’s fiscal weekly e-newsletter. You may also Nursing students have three new op- house in order. Put simply, the U.S contact my Apple Valley district at portunities to affordably obtain their .is amassing a crushing burden of 760.247.1815 to learn more. Bachelors of Science from Cal Bap- debt. Under current policies, the def- tist, Azusa Pacific, and Grand Can- icit will continue to climb to historic yon University. In addition, VVC levels. The total debt has doubled to Students can now take on campus classes with Park University. The nearly $19 trillion since the current continued on page 23 The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] High Desert Report 23 An economic overview Victor Valley College Serving the High Desert for 55 Years Continued University offers degrees as part of Pre-School Teacher. Mojave Environmental Education a 2 + 2 program. Accreditation Consortium (MEEC), and Southern Enrollment California Edison. The NMR is be- Victor Valley College’s accredita- ing used for the first time in the 2016 For the 2015-2016 academic year, tion status was confirmed June 29, spring semester for students in up- enrollment is approximately 13,000 2015, from the Accrediting Com- per level organic chemistry classes students with a Full-Time Equivalent mission for Community and Junior and will make a huge difference for Student target of 9,245. A full-time Colleges (ACCJC) with no sanc- students intending to transfer to the equivalent student is a person taking tions. On March 29, 2016, the AC- university system like Cal State San more than 12 credit units or three CJC approved a substantive change Bernardino. Until recently, CSUSB part-time students taking a single which will allow the college to in- would only accept the theoretical 4-credit unit class. VVC was able crease access and offer more classes work accomplished and not the prac- to offer a successful Winter 2016 and programs at the Regional Public tical work. Because of the investment Intersession, serving 3,054 students Safety Training Center (RPSTC) in of our industry partners, CSUSB will who were enrolled in 3,730 classes. Apple Valley. now accept both, alleviating a bottle- Students were/are enrolled in an Campus Updates neck in their system where hundreds average of 2.5 classes in both the VVC students will have the benefit of students are currently sitting on Fall 2015 and Spring 2016 Semes- waitlists for Biology and Chemis- ters, 11,860 students taking 30,499 of a new interactive Student Orienta- tion Video this Fall 2016. try classes requiring a lab with the courses in Fall and 11,375 currently NMR. enrolled in 28,845 Spring classes. In the first of an ongoing collabora- VVC employs over 1,000 full and tion, the trustees from Barstow Com- The Victor Valley College Math De- part time employees. munity College and Victor Valley partment this year embarked on sev- eral major changes to their program During the 2014-15 academic year, College held two joint meetings in 2015. The meetings helped to high- that could significantly increase col- VVC conferred more than 1,100 As- lege completion rates for area resi- sociate Degrees and Certificates and light existing partnerships and iden- tified new opportunities to leverage dents. Math has been a hurdle for looks to improve on that number dur- many students who were previously ing the 2015-2016 academic year. resources to benefit students in both Districts. required to take a multi-course se- Programs featured include but are quence of remediation before ac- not limited to: Nursing, Liberal Victor Valley College was selected cessing a degree-applicable course. Arts, Science and Math, and other as one of nine community college In Fall 2016 new practices for place- Transfer Courses, along with 16 Ca- districts and 14 colleges to partici- ment will begin, allowing the ma- reer Technology Programs such as pate in the Education Planning Ini- jority of students to enter the math Computer-Aided Design, Airframe tiative (EPI). EPI is an innovative sequence within one class of their and Power Plant Technology, Fire statewide project in the deployment degree requirements instead of the Technology, Administration of Jus- of a new academic advising and plan- up to five they previously encoun- tice, Digital Animation, Respiratory ning platform. Community college tered. Following proven models that Technology, Paramedics, and Con- students throughout California will have worked at other institutions, in- struction Technologies, etc. soon have access to new technology cluding just-in-time remediation and that will help them identify their aca- Certificates of Completion were- is a statistics-based alternative to alge- demic goals, develop structured per- bra, VVC expects significantly more sued in Administration of Justice, sonalized Ed Plans for success, and Child Medical Assistant, Paralegal students to successfully advance make informed course choices about through math. Removing the barri- Studies, Horticulture, Auto Special- their education. ist, Business Administration, Build- ers in math will make graduation a ing Inspection, Advanced Business A Nuclear Magnetic Resonance Ma- reality for more VVC students. Real Estate, Construction Technolo- chine (NMR) was acquired by Victor In 2014 Victor Valley College was gy, Firefighter, Public Works, Weld- Valley College, thanks to the VVC awarded a grant to facilitate career ing, Restaurant Management, and Foundation, Mitsubishi Cement, pathways pipelines throughout the Cemex, A Family Pharmacy, the continued on page 24 The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] 24 High Desert Report An economic overview Victor Valley College Serving the High Desert for 55 Years Continued region in five key industries: Auto- credits were earned in courses in- Construction motive, Aviation, Energy/Utilities cluding English, Sociology, History, Victor Valley College Main Cam- Healthcare and Manufacturing. One and Philosophy. pus and the Regional Public Safety goal of what has become known as In the Fall of 2015, the cohorts grew Training Center are valuable com- the RAMP UP project is to maximize to a total of 84 students enrolled, munity resources. The college of- the input of employers by establish- with the results demonstrated that fers relevant programs and services ing advisory councils that include all 95% of the cohort passed all classes to help students prepare for transfer local schools and Victor Valley Col- with a “C” grade or better, totaling and address workforce needs through lege together, rather than the previ- 612 college credits earned. career technical education and basic ous practice of multiple independent The Hesperia High study also re- skills instruction. Over the last seven meetings at individual institutions. years, Measure JJ Bond dollars have This work was initiated in 2015, and vealed that the pass rate in the Early College courses surpasses traditional touched each of these areas: the Re- today nearly all targeted advisory gional Public Safety Training Center councils have been identified or are Hesperia High courses by 20% (Eng- lish) and 10% (History). It should be in Apple Valley (Spring 2012), Mu- in active development for the local sic Building (Fall 2014), and the Dr. area. This strategy is expected to noted that these classes, where appli- cable, count toward the high school Prem Reddy Health and Sciences help streamline curriculum, allowing Building (Fall 2015). local students to complete training student’s A-G high school gradua- that more quickly meets employer tion requirements. In 2016 another Measure JJ project needs. Student Athlete Success gets under way as we turn our atten- tion to the remodel and expansion of Another goal of the RAMP UP proj- In 2015 Coach Dave Hoover guided our Vocational facilities. Ground- ect is to link schools and colleges the Rams Football Team to a 9-1 re- breaking takes place May 16, and together through technology, allow- cord as they got the privilege to play the new additions will be ready for ing them to share classes and learn- in the American Division Champi- student use Spring 2017. The proj- ing experiences with one another. In onship Bowl Game. The Rams, 19-1 ect includes a new Automotive/ 2016 the installation of these class- during the past two seasons, had five Diesel Mechanics lab space, new rooms was completed, system tests players named to the All-California Welding Lab, public restrooms and successfully conducted, and the first First Team and All-American DL an additional 6,240 ASF for lecture multi-site connection allowed stu- Dougladson Subtyl was named De- classrooms. Additional Automotive dents at eight high schools to partici- fensive Player of the Year. space will provide for a service writ- pate in a healthcare industry lecture Veteran’s Resource Center er program, machine shop and bay last month. RAMP UP also includes In Spring 2015 Victor Valley Col- space for car lifts. Welding Technol- linkages to the Antelope Valley, ogy will be equipped with an entirely Barstow and San Bernardino, where lege opened a much needed Veter- ans Resource Center (VRC) located new welding facility with state of the similar activities are in develop- art equipment. ment. in the Student Activities Center. In addition to helping veteran students In July 2015 the Facilities Master Expanding its relationships with lo- with certifying VA education ben- Plan update was approved which cal high schools, VVC embarked efits, the VRC provides counseling identified a need for a new Student on a new partnership with Hesperia services, tutoring, a computer lab, Services ‘One Stop’ Building suf- High School in Fall 2014. In the Fall and community workshops. ficient to provide greater efficiency of 2014, 53 students were enrolled This could not have been possible between related functions in serving in predominantly General Education our students, thereby freeing current classes delivered by VVC’s depart- without the dedication of the Vet- erans Services staff, VA student space for reconversion to classrooms ment of Humanities, Arts, and So- and solving the near-term classroom cial Science (HASS) on the Hesperia workers, Veterans Club, VVC Foun- dation, and Wal-Mart for their gen- shortage. In addition a study was High School campus. By the end of presented outlining a future Stadium that semester, 98% of the students erous grant which helped buy com- puters and furniture. and Conference Center that will seat passed all classes with a “C” grade 3,500 and 3,000, respectively. or better, and a total of 414 college The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] High Desert Report 25 An economic overview

Prop 13 is Safe, For Now

Legislative Update – April 2015

In 2015 several ballot initiatives aimed tried to weaken the protections of Propo-The 2015 Legislativefor anotherSession is in full swing two and things years,are starting to get Ivery would busy in Sacramento. encourage Once a bill is introduced, that piece of legislation is then referred to one of a number of different policy committees. Here, bills are thoroughly at undermining Proposition 13 were pro- sition 13. Some want to lower the thresh-analyzed, debated,everyone and often times kille tod before remain getting an opportunity vigilant to be presented toagainst the entire California future State Assembly. Here is a list of some of the bills that I am working on and where they are at in the process: posed by labor groups and other special old of the 2/3rds vote, making it easier toAssembly Billinitiatives 203 – Fire Prevention Feethat Due Dates would undermine taxpayer This legislation extends the period for paying or disputing a fire prevention fee from 30 days to 60 days from the date of interests. As of today none of those initia- raise taxes. Others want to create a “splitassessment. protections.AB 203 is set to be heard in the AssemblyI pledge Natural Resources to Committeedo the on March same 23, 2014. in the Assembly Bill 410 – Improving Government Transparency tives will be on the 2016 ballot. This is a roll” so commercial properties have theirThis bill requiresState a state agency Assembly. to post on its website any document that is mandated by law to be submitted to a legislative committee so that the public can freely access the information. It has also been included in the Assembly Republican Caucus victory for homeowners, small businesses property values reassessed annually. Both#MakeGovWork bill package. .AB 410 is currently waiting to be referred to a policy committee. Assembly BillAssemblyman 809 – Local Tax Measure Ballot Labels Jay Obernolte represents and taxpayers. However, we must remain of these would be disastrous to taxpayersThis legislation is sponsored by the Howard Jarvis Taxpayers Association and requires local tax ballot labels to state the amount of thethe tax to be33rd raised, the rate, Assembly and the duration of the taxDistrict to better inform voters in about the the taxes Califor they are being asked- vigilant if we want to prevent any future and negatively impact our economy. to approve. AB 809 is currently waiting to be referred to a policy committee. Feel free to niaemail me atState [email protected] Legislature. orSince contact my District being Office at (760) elected 244-5277 with undermining of Prop 13. any questions or concerns you may have. 2016 was thought to be the year in whichPlease visit tomy website the for additionalState updates: Assembly, www.assembly.ca.gov/obernolte he has earned 100% Proposition 13, or the People’s Initiative Prop 13 would come under siege due to ratings from both the Howard Jarvis Tax- to Limit Property Taxation, as it was offi- the fact that the number of signatures re- payers Association and the California cially named, was a constitutional amend- quired to place an initiative on the ballot is Taxpayers Association for his legislative ment that limited the rate of property tax lower than it has been in recent elections record. In 2015 he authored AB 809, a increases on residential and commercial because of decreasing voter turnout. How- bill sponsored by the Howard Jarvis Tax- properties. It also put in place protections ever, with an extension to the Proposition payers Association and signed into law by against future tax increases by requiring a 30 tax increases likely to be placed before Governor Jerry Brown, which required 2/3rds vote of the state legislature to in- voters in 2016, it appears that the special all tax increases placed before the vot- crease taxes, as well as a 2/3rds majority interests who are looking to raise taxes ers on a ballot be clearly labeled as a tax in local elections to impose local tax in- think it may hurt their case if too many increase. AB 809 was widely praised as creases. tax increases appear on the ballot. a measure to protect taxpayers from mis- Since its passage, many groups have While Proposition 13 appears to be safe leading ballot propositions.

High Desert Unemployment Rates Annual Average 2014 to 2015 14.0 13.2

12.0

10.8 10.8

10.0

8.8 8.5 8.6 8.1 2014 AA 2015 AA 8.0 7.4 7.5 6.9 6.9 6.6 6.2 6.0 Percent 6.0

4.0

2.0

0.0 Adelanto city Apple Valley town Barstow city Hesperia city Victorville city Riv‐SB‐Ont California

The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] 26 High Desert Report An economic overview Taxable Parcels Increase in Value Due to Existing Home Sales By Bob Dutton, San Bernardino County Assessor

In June 2015 the assessment roll are responsible for the upward trend Looking back over the course of my contained 820,314 taxable parcels in the High Desert. In general, peo- career in both the private and public and was valued at $186,894,462,703, ple are taking advantage of the af- sectors, I was fortunate to have par- which represented a 5.077% net in- fordability of homes in the market. ticipated in encouraging: the redevel- crease as compared to the 2014 as- Moreover, little of this upward trend opment of Ontario Motor Speedway, sessment roll. Our office reported is due to new construction. Approxi- which ultimately became Ontario that the primary reasons for the in- mately 12 % of the increase was due Mills; the development of Victoria crease in value were sales of existing to construction, unlike the 2006- Gardens; expansion of Ontario Inter- homes, Proposition 8 recovery of as- 2007 valuations when 60 % of the national Airport; and the billions of sessed values, and the Proposition 13 value increase was due to new con- dollars invested in goods movement Consumer Price Index adjustment. struction. and transportation infrastructure for New construction also contributed to This bodes well for the High Des- the Inland Empire, as well as help- the increase but to a lesser degree. ert. While I am optimistic about the ing to bring Amazon to our region. The 2015 assessment roll finally region, the greatest need is for new All of these projects are significant reached and surpassed the previous business start-ups. Based on person- long-term catalysts for ongoing eco- high achieved in 2008 before the al experience over the course of my nomic growth and development op- collapse of the real estate market. career, I think the greatest judge of portunity. Three of the cities with the highest a healthy economy is small business Now I look at the current trends and increases were all located in the High growth. believe that the future is bright, espe- Desert, including Hesperia at 7.8 %, The High Desert has all the right cially because our County, including Victorville at 6.7 %, and Adelanto at components for healthy growth, such the Assessor’s department, is com- 6.5%. as low cost land, affordable homes, mitted to delivering a friendly and When looking at historic trends for basic infrastructure, and a pro-busi- fair business environment. This is the High Desert, we see that the as- ness approach from the County and all part of my work to help San Ber- sessment roll for all cities is increas- High Desert cities. I think the re- nardino County be recognized as the ing since the drop in values experi- newable energy opportunities that best place to live, work and raise a enced in 2009. The upward trend is are unique to the region are another family. a positive sign and many of the same benefit to business growth. drivers for the County as a whole

Values and Parcel Counts By Roll Year and High Desert City ADELANTO APPLE VALLEY BARSTOW HESPERIA VICTORVILLE TOTALS Year Value Count Value Count Value Count Value Count Value Count Value Count 2006 1,670,524,278 12,207 4,547,255,525 29,814 974,643,081 9,451 4,698,653,614 32,584 6,857,451,458 37,048 18,748,527,956 121,104 2007 2,217,773,952 12,858 5,425,165,015 31,144 1,147,251,317 9,535 5,880,149,285 33,322 8,704,038,294 42,091 23,374,377,863 128,950 2008 2,179,755,292 13,580 5,537,568,909 31,528 1,254,875,771 9,794 5,770,150,953 34,025 8,596,322,559 44,681 23,338,673,484 133,608 2009 1,605,544,481 13,561 4,752,185,584 31,618 1,247,295,013 9,940 4,662,301,742 34,024 6,871,506,647 44,763 19,138,833,467 133,906 2010 1,465,749,663 13,557 4,358,317,668 31,527 1,171,295,607 9,959 4,179,909,181 33,834 6,306,920,513 44,539 17,482,192,632 133,416 2011 1,440,999,131 13,548 4,326,347,737 31,524 1,138,058,888 9,936 4,162,901,561 33,756 6,259,975,344 44,400 17,328,282,661 133,164 2012 1,482,114,675 13,497 4,317,152,388 31,553 1,122,838,313 9,950 4,157,883,488 33,687 6,303,742,213 44,394 17,383,731,077 133,081 2013 1,569,418,539 13,497 4,473,615,681 31,541 1,100,838,510 9,929 4,366,295,390 33,645 6,581,339,426 44,388 18,091,507,546 133,000 2014 1,632,458,638 13,500 4,730,243,875 31,528 1,118,715,264 9,899 4,612,384,829 33,594 6,991,019,694 44,300 19,084,822,300 132,821 2015 1,732,164,407 13,508 5,020,496,167 31,776 1,151,054,914 9,868 4,995,664,539 33,619 7,495,501,426 44,380 20,394,881,453 133,151

The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] High Desert Report 27 An economic overview 2016 Economic and Housing Market Outlook By Oscar Wei, Senior Economist CALIFORNIA ASSOCIATION OF REALTORS® Economic Outlook surpassed the sales level at the same point to improve and more home sales will like- The U.S. economy ended last year with a of 2015 by 7.6%. When compared to ly take place in the coming year. As such, lackluster performance of 1.4% annual- the previous year, sales in February in- a slow-down in home price appreciation ized growth rate in the fourth quarter of creased in most price segments except at the state level is anticipated as the mix 2015. While the annual increase in GDP for those properties priced under $200K, of sales changes in favor of lower-priced in 2015 maintained the pace as that of between $300K and $400K, and homes properties in 2016. 2014, it was a letdown for many econo- over $2,000,000. Homes priced between High Desert Regional Housing Market mists who predicted a stronger outlook $1,000,000 and $2,000,000 experienced Outlook for the nation last year. The subpar per- the strongest growth—rising by 10.8% over February 2015. Home sales activity continued to improve formance of the year was due to multiple in the High Desert region at the beginning factors including: 1) the sharp decline Much of the growth in Southern Califor- of 2016. The number of single-family in oil and commodity prices; 2) the eco- nia in particular was driven by the Inland detached homes sold in February 2016 nomic slowdowns in China, Europe, and Empire as sales in Riverside and San Ber- increased 4.5% when compared to the Canada; and, 3) a strong dollar that makes nardino were 7.5% and 5.1% above last same time last year. In fact, sales have American goods relatively expensive and year. Orange County saw a 1.5% increase been improving on a year-over-year basis weakens demand overseas. Despite the in sales last month. However, Los Ange- for every month since March 2015. The hiccups in recent quarters, the labor mar- les, San Diego and Ventura all experi- year 2015 was also the first year since ket continued to improve, with nonfarm enced negative growth in February. In the 2009 that the market experienced a year- employment averaging a gain of more Bay Area, only Solano and Sonoma saw over-year gain in sales. With the econo- than 233,000 new jobs per month in the an increase in home sales, suggesting that my expected to improve in the upcoming last 12 months. The unemployment rate tight inventories are beginning to nega- year, sales in the regional housing market in March 2016 also reached a near-full tively impact activity. should continue to grow with a mid-single employment level of 5% that we have not As for the statewide median home price, digit in 2016. seen since 2007. growth rate cooled to a 3.8% annual pace The median home price of the High Des- Meanwhile, the economy of California in February 2015 as the statewide median ert region remained on an upward trend continued to grow at a faster pace than that price increased to $446,460. This marks in the most recent month. When com- of the nation as technology and tourism the slowest rate of growth for home price pared to last year, the regional median pushed the state economic growth ahead in six months and likely reflects the shift price increased 8.5% to $203,600 in Feb- of much of the country. The strong per- of sales activity toward the Central Valley ruary. Over the last twelve months, the formance in the labor market is an illustra- which has lower home prices on average. year-over-year gain in median price has tion of how well the Golden State has been As tight inventory in the Bay Area and an average of 9.6%, slightly higher than doing in recent years. The unemployment Southern California drive a larger share the statewide average of 6.0% for the rate in California dropped to 5.5% in Feb- of activity in more affordable areas, price same time frame. Home prices in the ruary, the lowest level observed since Au- growth should continue to normalize in High Desert region have been improv- gust 2007. Statewide job growth has been the remainder of 2016. ing since 2012, with its annual median rising at or near 3% year-over-year since The statewide housing supply remains an price increasing 24.5% in 2013, 16.6% late 2012. While the unemployment rate issue as the demand for housing contin- in 2014, and 9.2% in 2015. Despite the in California remained above that of the ues to outpace the growth in inventory. upward trend in price in recent years, the U.S., the growth in the job market at the While it is a welcome sign to see steady regional median price in February 2016 state level has been outpacing the nation improvement in housing demand, the lack remained 39.6% below the cyclical peak since March 2012. Overall, the outlook of supply is definitely a concern. The im- reached in June 2006 but was up 90.9% for the economy remains positive with balance between the two sides not only from the recent cyclical bottom reached in continued improvement in consumer, intensifies market competition and pushes April 2009. For the rest of 2016, increase business, and state and local government home prices higher, but it also leads to in housing demand in the region should spending in 2016. housing affordability issues that will ulti- put upward momentum on home prices as California Housing Market Outlook mately lower homeownership rates if the the economy continues to improve. The With the economic fundamentals remain- problem persists. regional median price could increase year ing strong in California, the state housing The supply constraint in the Bay Area is over year by a mid-to high-single digit in market has had a solid performance since more pronounced and has led to fewer 2016. the beginning of this year. Through the homes being sold in the high-cost region. Economic and Housing Market first two months of 2016, sales of exist- On the other hand, demand in regions Forecast ing single-family detached homes have with more affordable housing continues Looking ahead, the state economy should continued on page 28 The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] 28 High Desert Report An economic overview 2016 Economic and Housing Market Outlook Continued

provement in consumer spending will pull in more imports. Robust increase in jobs in high-cost ar- eas could be another downside risk to the housing market. Due to the spillover ef- fect of growth in high-paying jobs, plenty of lower-paying jobs have been created, with many of these jobs being in the same geographic areas where the high paying jobs are being added. As such, income disparity in these areas could further com- plicate and deteriorate the housing afford- ability issue. Policymakers continue to list the mortgage

interest deduction (MID) as a potential tar- Fig 1: Sales of single‐family homes (High Desert) Fig 2: Median price of single‐family homes (High Desert) get in any movement toward tax reform. If MID were to be eliminated, home buy- continue to grow through 2016, as the share of high-end homes sales to overall ers would not have the tax savings benefit high-tech sector remains in the driver seat. home sales, which could also lead to a Economic and Housing Market Forecast of homeownership, thus reducing their New product development may disrupt in- slow-down in the appreciation in the state- incentive to purchase a house, lowering Lookingdustries ahead, across the the state globe, economy but should it could continue also to growwide through median 2016, price. as the Ashigh such,‐tech sector the statewide the demand for housing, and thus reduc- remainsyield sizable in the driver revenue seat. andNew haveproduct significant development maymedian disrupt priceindustries is expected across the globe,to increase but it at a ing affordable homeownership across the couldspillover also yield effect sizable in revenue their respectiveand have significant local spillovermoderate effect in pace their respectiveof 3.2% localin 2016 economies. as more country and the State of California. The Theeconomies. construction The industry construction is an example industry that shows is how homesthe rapid inexpansion the affordably-priced of technology firms Central economic impact would stress the state’s throughoutan example Silicon that Valley shows has howhelped the to driverapid the ex construction- Valley payrolls and toInland increase Empire by double are‐digits being over sold. already battered balance sheet and, if any pansion of technology firms throughout the past year. Improvement in the construction industry is expectedRisks inthat the upcomingCould Tip year the and Scaleswill help of the proposed changes were to come to Silicon Valley has helped to drive the con- to push the economy forward. The statewide non‐farm job growth will increase by 2.3 percent in 2016 fruition, could amount to billions of dol- struction payrolls to increase by double- Although the outlook for both the econo- and the unemployment rate in California will fall from 6.2 percent in 2015 to 5.5 percent in 2016. lars of economic output lost. digits over the past year. Improvement in my and the housing market remains posi- Meanwhile,the construction the California industry housing is market expected is expected in to tivehave fora decent 2016, performance there are in uncertainties 2016. The and While the recent volatility of the stock Federalthe upcoming Reserve will year most and likely will raise help the federal to push funds ratewildcards two to three in times2016 in that2016. could Modestly change higher the market has been drawing attention in the interestthe economy rates, however, forward. should The not statewide present much non- of a directoutcome challenge and to tipthe housingthe scales market. the Withother the way. news, it is more of a distraction rather than economyfarm job expected growth to will grow, increase housing demand by 2.3% should in continueGlobal its upward economic trend with issues, sales of for existing example, a disruption to the continual improvement single2016,‐family and thehomes unemployment projected to increase rate in6.3 Calipercent- in could2016 to 432,570. begin taking a toll on economic in the housing market. The drop in values growth domestically in 2016. Slow eco- of equity in January reduces the overall Inadequatefornia will supply fall from in high 6.2%‐end areas in 2015 such asto the5.5% Bay Area will continue to exert upward pressure on in 2016. nomic growth in China and other Europe- wealth and may have a small negative ef- prices, but home sales in those regions will simultaneouslyan be countries, constraint. coupled The constraint with strongerin home sales growth fect on the economy in general. Its impact inMeanwhile, the Bay Area theleads California to a decline housing in the share market of high ‐endin homes the U.S., sales tohave overall paved home the sales, way which for higher to the housing market, however, should be couldis expected also lead to to ahave slow ‐adown decent in the performance appreciation in theinterest statewide rates median and price. led As to such, a stronger the dollar. minor, as solid employment conditions, statewidein 2016. median The Federalprice is expected Reserve to increase will most at a moderateAs such, pace ofinternational 3.2 percent in 2016trade as will more likely be anticipated increase in household forma- homeslikely inraise the affordably the federal‐priced funds Central rate Valley two and to Inland aEmpire drag are on being growth sold. with global economic tions, and record-low interest rates contin- three times in 2016. Modestly higher in- slow-down and the stronger dollar cut ue to provide support to the fundamentals terest rates, however, should not present demand for exports, while continued im- of the housing market. much of a direct challenge to the hous- ing market. With the economy expected Figure 1: California Housing Forecast to grow, housing demand should continue its upward trend, with sales of existing 2010 2011 2012 2013 2014 2015 2016f single-family homes projected to increase SFH Resales (000s) 416.52 422.55 439.79 414.90 383.72 407.06 432.57 6.3% in 2016 to 432,570. % Change -12.3% 1.4% 4.1% -5.9% -7.8% 6.4% 6.3% Inadequate supply in high-end areas such Median Price ($000s) $305.0 $286.0 $319.3 $407.2 $446.9 $474.4 $489.4 as the Bay Area will continue to exert up- ward pressure on prices, but home sales % Change 10.9% -6.2% 11.6% 27.5% 9.8% 6.2% 3.2% in those regions will simultaneously be Housing Affordability 48% 53% 51% 36% 30% 31% 28% constraint. The constraint in home sales 30-Yr FRM 4.7% 4.5% 3.7% 4.0% 4.2% 3.9% 4.5% in the Bay Area leads to a decline in the

Risks thatThe Could Bradco Tip theHigh Scales Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] Although the outlook for both the economy and the housing market remains positive for 2016, there are uncertainties and wildcards in 2016 that could change the outcome and tip the scales the other way. Global economic issues, for example, could begin taking a toll on economic growth domestically in 2016. Slow economic growth in China and other European countries, coupled with stronger growth in the US, have paved the way for higher interest rates and lead to a stronger dollar. As such, international trade will likely be a drag on growth, as global economic slow‐down and the stronger dollar cut demand for exports, while continued improvement in consumer spending pulls in more imports.

Robust increase in jobs in high‐cost areas could be another downside risk to the housing market. Due to the spillover effect of growth in high‐paying jobs, plenty of lower‐paying jobs have been created, with many of these jobs being in the same geographic areas where the high paying jobs are being added. As such, income disparity in these areas could further complicate and deteriorate the housing affordability issue.

Policymakers continue to list the mortgage interest deduction (MID) as a potential target in any movement toward tax reform. If MID were to be eliminated, home buyers would not have the tax savings benefit of homeownership, thus reducing their incentive to purchase a house, lowering the demand for housing, and thus reducing affordable homeownership across the country and the state of California. The economic impact would stress the state’s already battered balance sheet and if any of the proposed changes were to come to fruition could amount to billions of dollars of economic output lost.

While the recent volatility of the stock market has been drawing attention in the news, it is more of a distraction rather than a disruption to the continual improvement in the housing market. The drop in values of equity in January reduces the overall wealth and may have a small negative effect on the economy in general. Its impact to the housing market, however, should be minor, as solid employment conditions, anticipated increase in household formations, and record‐low interest rates continue to provide support to the fundamentals of the housing market.

High Desert Report 29 An economic overview Economic Report: Job Growth on the Horizon By Sandy Harmsen, Executive Director, County of San Bernardino Workforce Development Board The San Bernardino County Workforce development, and support services. Pro- ensure greater prosperity and opportu- Development Board (WDB) commis- grams are designed to help youth achieve nity. sioned the Virginia-based consultant academic and employment success. For more information on the San Bernar- Chmura Economics and Analytics to Adult job seekers can access a number dino County Workforce Development conduct in-depth analyses of the Inland of services at the High Desert America’s Board, please visit www.csb-win.org or Empire’s economic vitality on an annual Job Center of California (AJCC) locat- call 800.451.JOBS. basis. The purpose of the analysis was to ed in Victorville, which include resume assist the Board in determining future ac- About the Workforce Development writing, interview training, job training Board of San Bernardino County: tions that will support growing industry and placement, career counseling and sectors to strengthen the workforce tal- skills assessment. For more informa- The Workforce Development Board of ent pipeline. In addition it provides an tion, please call the High Desert AJCC at San Bernardino County (WDB) is com- accurate guide to where the WDB should 760.552.6550. prised of private business representatives invest funds to ensure the availability of and public partners appointed by the skilled workers in the projected growth For business owners there is a team of County of San Bernardino Board of Su- sectors. Business Service Representatives avail- pervisors. The WDB strives to strength- able to provide assistance with On-the- en the skills of the County’s workforce The study denotes there are positive indi- Job Training, customized recruitment cators on the horizon. The employment through partnerships with business-ed- services, and easy access to a large pool ucation- and community-based organi- rate is expected to rise 3.5% this year, a of pre-screened applicants. statistic that outperforms the state of Cal- zations. The County of San Bernardino ifornia and the nation. A free Human Resources Hotline is Board of Supervisors is committed to available to San Bernardino County providing county resources which gener- Industries are thriving and creating jobs. businesses 24 hours a day. Advisors ate jobs and investment in line with the The Chmura analysis shows that since at the hotline deal with a variety of in- Countywide Vision. 2012, 88% of employment in the Inland quiries ,including questions on wages The Workforce Development Board, Empire has been driven by six projected and hourly rates, leave laws, hiring and growth sectors: Healthcare and social through the County of San Bernardino’s termination procedures, handbooks and Economic Development Agency and assistance; transportation and warehous- policies, attendance, and attitude and dis- ing; manufacturing; construction; utili- Workforce Development Department, cipline problems. Businesses can access operates the County of San Bernar- ties; professional, scientific, and techni- the free Human Resources Hotline by cal services. dino’s three America’s Job Centers of calling 1.800.399.5331 or visiting www. California (AJCC). The AJCCs provide Construction, healthcare, and utilities are employers.org. To read more about the individuals with job training, placement the growth sectors forecasted to grow hotline, visit http://mediasourcelink. and the tools to strengthen their skills more rapidly in the near future. As a re- com/human-resources-free-hotline-of- to achieve a higher quality of life. The sult of this new data, the WDB can effi- fers-help-to-local-businesses/. AJCCs also support and provide services ciently allocate federal dollars appropri- In addition to providing excellent ser- to the County’s businesses, including ately to bolster the acceleration of growth vices to businesses and job seekers, the employee recruitment and business re- for these businesses. WDB strives to ensure that employment tention programs. The analysis explains that manufacturing and training services are coordinated so Employers and job seekers who are in- is the most important sector of economic that job seekers acquire industry recog- terested in the Workforce Development activity. Average wages in manufactur- nized skills and credentials. Riverside Board programs may call: 800.451.JOBS ing are 20% higher than the average of County has partnered with the WDB or visit www.csb-win.org. Also follow all other industries; therefore, this indus- to form the Inland Empire Consortium us on: Facebook www.facebook.com/ try holds enormous employment poten- for the statewide SlingShot initiative, a SBWIB; Twitter @InlandEmpireJob; tial for the growing population of young project to accelerate income mobility for and YouTube http://www.youtube.com/ workers who would replace numerous the local workforce through employer- SBCountyWIB. retiring workers. informed training and education. This information suggests a key area of The consortium works to link, align opportunity for the Workforce Develop- and leverage the assets and resources of ment Board to assist both the job seeker economic development, education and and employer. Young job seekers receive workforce development partners. It im- services such as occupational skills train- plements a regional economic and work- ing, counseling, internships, job place- force development strategy designed to ments, mentoring, tutoring, leadership

The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] 30 High Desert Report An economic overview Adelanto—Resiliency in Progress! By Michael Stevens, Communications Consultant; City of Adelanto Resiliency, the ability of $785,662 annually; these measures will new businesses, thereby creating temporary to overcome challenges also provide one additional police officer (a construction employment along with pur- of all kinds–and bounce second when a new facility has been com- chases of supplies and building materials in back stronger, wiser… pleted); Adelanto and throughout the High Desert; you don’t have to look • using reserves created by the sale of the (5) Create jobs in manufacturing, mainte- any further than the City Community Correctional Facility to pay for nance, marketing, sales, distribution, trans- of Adelanto to see how it General Fund Budget Deficits. portation (whose employees will spend and works. At only three-quarters of the way through support not only the Adelanto economy but Whatever opinion you might have about the $13 million dollar fiscal year budget, also the High Desert); Adelanto, good or bad, suspend your con- revenues from permits and fees are up (6) 50 percent of the jobs created must tar- clusion until after you’ve read this article. over budget projections by approximately get Adelanto residents (assuming they meet Adelanto, the third oldest of the five mu- $670,000; these increases are used for Code or exceed minimum qualifications); nicipalities that comprise the High Desert Enforcement cost recoveries, residential in- (7) Likely purchase products, supplies and region of northern San Bernardino County, spection fees, and permits, licenses and fees services to be used to support the business has been known as the “City with Unlimited related to the new Indoor Agriculture busi- in Adelanto or other High Desert communi- Possibilities.” ness to the city. One hundred, thirty-eight ties; Even though the designation “City with Un- business licenses were issued between Janu- (8) Hire local security personnel who will limited Possibilities” remains true, the city ary and March 2016. protect the businesses around the clock and now prefers the slogan “Progress by De- City staff and consultants continue to work reduce calls for service for Adelanto’s Po- sign.” I’ll describe how later. aggressively to locate other cost savings lice; For the past 46 years, the City of Adelanto programs, grants and revenue sources with- (9) Pay taxes already required by the IRS, has continued to attract businesses and resi- out reducing city services. Franchise Tax Board and Board of Equal- dents due to its prime location in the High A Comprehensive Strategy to Keep the ization. Desert. Strategically located within 90 miles City Solvent of Los Angeles, the city boasts five Indus- A proposed Fiscal Mitigation Impact Fee As part of an overall strategy that involves (which will turn into a tax in November if trial Parks, including one of the largest areas aggressive economic development to ad- of industrial land available for development the ballot measure passes) would be used to dress the city’s fiscal challenges, one deci- improve: police, fire, street, park, and gov- in the High Desert with 11.41 square miles sion the Council made—that’s generated the of land zoned for industrial and business ernments services, resulting in better servic- most notoriety—was to allow for medical es for our residents. zoning, ample vacant land in its 52 square marijuana cultivation. miles, and a pro-business City Council. Ad- Progress by Design—Commercial elanto is well positioned to accommodate The City Council thoroughly weighed the Development Continues future growth and development. pros and cons of allowing marijuana cul- Several projects progressing through the de- tivation, and chose to move forward only How has the City Progressed? velopment process that will help the city’s after careful and deliberate consideration, fiscal status include: Adelanto has experienced a metamorphosis discussions and debate, believing that the since the great recession of 2008, starting positives outweighed the negatives and that 1. Rancho Road Commercial Center —NEC with the election of three new councilmem- steps would be taken to mitigate any poten- (Northeast Corner) Rancho and HWY 395; bers in 2014 and the appointment of a new tial negative consequences. Multi-Tenant Retail Center with gas station, city manager in 2016. But more important- convenience store, car wash, supermarket, The brainchild of Council Member John hotel, restaurants, office and retail facilities ly, the progress didn’t end there. Not para- Woodard, the ultimate financial impact of lyzed by fear of being condemned, ridiculed all totaling 199,050 square feet of floor area allowing marijuana cultivation is unknown on 17.98 acres. or criticized, the City Council demonstrated at this time but is anticipated to create a fi- bold, courageous leadership and made sev- nancial benefit for the city. At a minimum 2. LCS Holdings, LLC—NEC of Violet eral tough decisions to keep the city from each applicant (there have been 29 to date) Road and Emerald Road; The construction the verge of bankruptcy. will: and operation of a 3,200 bed prison on 125 acres. Although the city still faces fiscal challeng- (1) Pay a $7,000 application fee for a per- es due to the recession, decisions made that mit to do business in the city; 3. St. Mary’s Properties—SWC (Southwest are helping to put the city on stable financial Corner) of HWY 395 & Cactus Road;16 footing include: (2) Pay a yet-to-be-determined impact fee Pump gas station, 3,500 SF restaurant, to mitigate impacts to fire, police and gov- • staff reductions and consolidation of 7,400 SF retail building, 2,500 SF fast food, ernmental oversight (this fee will be based 5,000 SF convenient store and car wash, and staffing services that resulted in approxi- on the size of canopy area for each facility); mately $365,000 in salary savings plus ben- an 18,191 SF medical office building on 4 efits; (3) Pay a $2,735 Conditional Use Permit ap- acres. plication fee to allow the Planning Com- • passed an Ordinance and Resolution 4. Lewis Retail Centers—SWC of Highway mission to impose conditions that protect 395 and Mojave Drive: Development of a that will bring prison participation rate rev- both citizens and cultivators; enues from approximately $177,938 per 35.35-acre retail shopping center to include year up to $963,600 per year or an increase (4) Construct facilities to accommodate continued on page 31 The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] High Desert Report 31 An economic overview Adelanto—Resiliency in Publisher’s Message Progress! Continued Continued Target, large retailers, restaurants, and a of Ms. Lawrence and their very strong region with two individuals collecting data bank on 35 acres. Board. for over a year, we make the information 5. BergerABAM for GEO Group—NEC Lastly, I would also like to give thanks to about the market readily available to all of Koala and Holly: The construction and op- Ms. Laurie Hunter, the Special Advisor/JPA our subscribers. If you need a snapshot of eration of a 247,425 sq. ft, 1,050 bed cor- High Desert Corridor Administrator; Ms. a particular segment of the market (indus- rectional facility on 22.16 acres. Mary Jane Olhasso, Assistant Executive trial, retail, office or land) please give us a 6. Clark Pacific, Inc—Holly Road between Officer of County of San Bernardino; call and we would be glad to share. Beaver Road and Koala Road-precast con- City of Victorville Councilmember and The next few months will be rather excit- crete fabrication plant on 80 acres. SANBAG President Ryan McEachron; ing for our country and our country’s his- Infrastructure Improvements will En- Ms. Marika Erdely, Founder and CEO of tory with the upcoming 2016 Presidential hance Commercial Corridor Green EconoME; Col. Paul Cook (Ret.) election. Put on your seat belts and strap U.S. Highway 395, a major arterial for com- U.S. Congressman, 8th Congressional yourself in. Do I believe that the Presi- merce throughout California, bisects the District; Mr. Robert Sewell, Director of dential election will have an impact on city and will undergo a major expansion Marketing & Public Information Officer/ the High Desert economy? Absolutely, between Palmdale Road and Chamberlaine ASB Advisor for Victor Valley College; but to what extent I don’t really know. We Way starting in 2017 that will expand to Assemblyman Jay Obernolte, 33rd are hoping that the uncertainty that typi- four or five lanes to enhance the commercial Assembly District; Mr. Bob Dutton, San cally happens in the six months prior to a and retail corridor of the city. Bernardino County Assessor; Mr. Oscar Presidential election and six months after State Highway 18, which connects Adelanto Wei, Senior Economist of the California will not happen this time around. The one to Los Angeles County and ultimately, the Association of Realtors®; and Ms. Sandy thing I tell my friends is that, as an elected ports of Los Angeles and Long Beach, will Harmsen, Executive Director for the official within the High Desert region (I be widened into a divided highway from County of San Bernardino Workforce am very proud to be an elected Trustee at Highway 395 to the Los Angeles County Development Board. Victor Valley Community College one of line. Construction will also include a four California’s greatest community colleges); foot media, shoulders widened to eight feet I would also like to thank each one of our we are watching history being made. No ,and the addition of new centerlines and city partners for the updates from their rumble strips. Economic Development Directors. Offi- matter what you think, your vote counts. cials from our local cities were the first to I encourage everyone to vote, regardless The much anticipated E-220, known as the of your candidate. Voting is a privilege High Desert Corridor, will be a six-lane urge me many years ago to create a means in other countries and a right in ours, so freeway and High Speed Rail connecting by which to accurately portray our High Palmdale and the Victor Valley. It is cur- Desert economy and all of the work done please vote. rently under environmental review and will by the cities, their Mayors and Councils, The High Desert still offers great econom- have a dramatic impact on Adelanto once City Managers, and Economic Develop- ic and investment opportunities to those completed. ment Directors. I appreciate each one of who spend the time seeking those oppor- Housing growth, though not substantial, you for all that you do. tunities. We hope that includes you. has continued to climb the last five years, And just in case they think their hard work Lastly, if you wish to continue to receive increasing from 9,261 new units in 2014 to goes unnoticed, I must thank my staff and a copy of the Bradco High Desert Report, 9,342 in 2015, a 23% increase with suffi- my wife, Deborah. I would not have made any statistical reports, op-ed articles that cient units for start-up, established, or retire- it through this past year and could not do we post to our website for free, please ment families. Along with the slight hous- ing growth, population has increased as well what I do on a daily basis without your register at our website at www.TheBrad- from 32,476 in 2014 to 33,084 in 2015, a support and encouragement. coCompanies.com/register. 1.8% jump where residents have discovered As I said earlier, we have some very excit- and come to appreciate the clear skies, open ing information to share and we are look- spaces and family-friendly environment. ing at new sources of information data Adelanto and its City Council will continue about the High Desert region. What we to live up to its obligation to be good stew- have opted not to do is take retail, indus- ards of taxpayer dollars AND ensure that the trial office data from Costar and publish it city remains solvent to serve its residents without showing our source. You can find and businesses. No one believes the chal- that information by visiting our website at lenge will be easy, but judging by the results www.TheBradcoCompanies.com. of the past few years, it should be easy to conclude that Adelanto is one resilient city! As the first company to actually measure the square footage of industrial, retail and office space throughout the High Desert

The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] 32 High Desert Report An economic overview Town of Apple Valley City Update By Orlando Acevedo, Economic Development Manager

The County Board tion of this phase, around September In June 2015 the Town Council of Supervisors re- 2017. The bids came in at $8.6 mil- approved an Owner Participation cently approved a lion, nearly $4 million less than the Agreement to invest $1.2 million 249-acre project original estimate, according Brad dollars into the construction of off- to be rezoned from Miller, Town Engineer. site regional street improvements. agricultural to The $37-million-dollar Yucca Loma The distribution center will occupy residential within the town’s sphere Bridge project alleviates conges- 106 acres near Navajo Road and La of influence. The Lewis Operat- tion along east/west regional arte- Fayette Street, north of Apple Valley ing Company’s Deep Creek Project rials, including Bear Valley Road, Airport. The $115 million project extends from Deep Creek Road to and allows residents to travel to and will bring 400 to 500 permanent jobs Mockingbird Road and is divided by from Apple Valley, Victorville and to the community and is expected to Ocotillo Way. Spring Valley Lake with more ease. break ground this year, with another This project will require improve- This phase of the corridor will con- 300 construction jobs estimated dur- ments along these three roadways, as nect to Ridgecrest Road and includes ing the 18-month build. This distri- well as Rock Springs Road, to help bikeways and barrier-protected side- bution center is expected to open in mitigate traffic and the risk of wash- walks across the bridge. The proj- 2017. out. Construction for Rock Springs ect will also pave the way for The The town is pleased to announce Road improvements is set to begin Fountains at Quail Ridge, a 346,500 the Small Business Loan Program in 2018. square foot mixed-use commercial (SBLP), a business development center at the north- tool designed to help eligible busi- east corner of Yucca nesses fund employee training and/ Loma Road and Ap- or finance the purchase of new ple Valley Road. equipment or assets. The program The Victor Valley is funded by federal grant dollars Wastewater Rec- to help companies grow local jobs lamation Author- and increase production in targeted ity is constructing a sectors, including manufacturing, sub-regional water assembly, and startups. The town reclamation plant at will partner with AmPac Tri-State Brewster Park. More CDC to administer the program. For than 20 years in the more information on the program, making, this water please contact Orlando Acevedo, The long awaited Yucca Loma Bridge nearing reclamation plant Economic Development Manager, at completion. will produce a mil- 760.240.7915 or by email at select@ lion gallons a day of applevalley.org. The Yucca Loma Bridge is expected non-potable, recycled water that can to be completed by the end of April be used to keep Apple Valley’s parks 2016; however, there is one more and golf course green. The plant is step prior to opening it to traffic. The expected to be completed by mid- Council recently awarded a contract 2017. for major improvements to Yucca After a lengthy and competitive site Loma Road, including widening, selection process, Apple Valley suc- bike lanes and major storm drain in- cessfully attracted a major indus- frastructure from Apple Valley Road trial project, a 1.35 million square to the bridge, as well as traffic signals foot distribution center, to the North at the Fire Station and Havasu Road. pple Valley Industrial Specific Plan. The bridge will open at the comple-

The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] High Desert Report 33 An economic overview Barstow City Update By Gaither Loewenstein, Economic Development and Planning Manager Although 2015 fell somewhat short of the tion of elements of the Specific Plan will need to jump-start the housing market city’s expectations in terms of economic commence immediately and is expected has prompted the City Council and local growth in Barstow, the pace of activity to draw additional visitors to the area, school district to collaborate on a strat- has picked up markedly at the outset of sparking downtown revitalization. egy for short-term reductions in impact 2016 as several projects that were an- Elsewhere, continuing progress is being fees in an effort to spur residential devel- ticipated to be initiated or completed last made in acquiring lands within the Span- opment. Additionally, city planning staff year have become untracked ish Trail Specific Plan area (located at has compiled an inventory of existing Commercial Development Outlook I-15 and L Street) from the State Lands available infill property in proximity to Commission and the Bureau of Land local utilities and infrastructure. The city The long-awaited Montara Place shop- remains optimistic that these efforts will ping center, anchored by a new Super Management. Acquisition is anticipated to be finalized in the first half of 2016, help bring the long moribund Barstow WalMart store, broke ground late in 2015 housing market to life in 2016. and project completion is now expected and once the site has been assembled un- to occur in 2017. Recruitment of retail- der a common ownership recruitment of Infrastructure Update ers for the eight out pads has begun. The national retailers and lifestyle purveyors, By the end of 2016 Barstow will be near- city’s inventory of existing available re- it is expected to begin in earnest. ing completion of its ambitious capital tail space continues to be absorbed, as Industrial Development Outlook improvement plans, resulting in recon- Marshall’s joins Harbor Freight in the The Barstow General Plan identifies a struction or resurfacing of the majority former K-mart space and smaller retail number of sites suitable for industrial de- of local roadways, modernization of the spaces continue to find lessees. velopment, several of which are likely to city’s wastewater treatment plant, cir- After improving dramatically for several experience construction activity within culation network improvements in the quarters, the city’s hotel occupancy rate the plan’s 2015-2020 time horizon. Al- vicinity of I-15 and Lenwood Road, and has leveled off in the high 80s, still suf- though the proposed aluminum process- construction of the $ 31.7 million Len- ficient to draw interest from several na- ing facility that was previously submitted wood Road Grade Separation Project. tional hotel chains. Plans for a new Best for city review did not come to fruition, The $ 71 million reconstruction of the Western Plus are in the final stages of the city has continued to invest in infra- First Street Bridge is in the final planning review and Home2Suites, a Hilton prod- structure expansion, making the Barstow stages with construction scheduled to be- uct, is expected to submit building plans Industrial Park more readily suitable for gin in 2017. in late March. development, and prospective tenants Through its integrated efforts at long- In the same vicinity, taxable restaurant continue to express interest in this loca- range planning and infrastructure im- sales have fallen somewhat from their tion. Grading is nearing completion on provement, Barstow has positioned itself 2015 growth rate of 8.5% in large part the 60-acre Crossroads Route 66 Indus- to capitalize on the next wave of eco- due to lower fuel prices nationwide. The trial Park, located on West Main Street nomic growth as national, regional and restaurant market in the Lenwood Road near the onramp to State Route 58. Once local recovery from the Great Recession area remains robust, with a 4,500 square completed, this site will be a promising continues. Though arriving later than an- foot Asian Food Court currently under location for logistics enterprises and has ticipated, the momentum has continued construction and expected to open in already begun to draw interest from pro- to slowly build in the early months of summer 2016, and two more nationally spective tenants. 2016. known restaurant brands coming to the Residential Development Outlook area, in addition to regional powerhouse Housing development in Barstow has yet Oggi’s Pizza, which has slated a late- to recover from the Great spring 2016 opening. Recession. Although a On Main Street, Choice Medical Group robust potential market is in the final stages of its new 17,000 for new home sales exists BarstowBarstow CACA square foot medical office facility, Fos- in the city, as evidenced ter Freeze is currently undergoing an ex- by its 1.2:1 ratio of jobs- On the Crossroads of Opportunity. pansion, and several existing businesses to-housing, the absence have proposed plans for expansion and/ of comparable new home Commercial - Industrial - Retail or facelifts. The city is preparing a Spe- sales has proved an im- cific Plan for the Downtown Business pediment to the financing and Cultural District that will be com- 760-255-5177 of new home develop- www.barstowca.org pleted in early summer. Implementa- ment. Recognition of the

The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] 34 High Desert Report An economic overview Hesperia City Update Quite Simply, Hesperia Works for Business By Lisa K. LaMere, Economic Development Management Analyst The City of Hesperia is a pro-busi- The High Desert Gateway, a two- to rave reviews for custom pizzas ness community in Southern Cali- phased 533,000 square foot commu- and fresh salads; Yogurtland, an- fornia eager to welcome prospective nity shopping center anchored by a other first for the region, celebrated developers, industrialists, retailers 180,000 square foot Super Target, their ribbon cutting in February as and new business owners. Hesperia will soon break ground on Phase II. well. Look for future Hesperia busi- will assign a team of professionals The Marketplace on Main, anchored ness development in 2016, including as strategic partners, making your by a 195,350 square foot Walmart Firehouse Subs, a national grocer, a transition here expedient, affordable, Supercenter, has a second major of national automotive repair franchise, productive and profitable. It is no 180,000+ square feet available for and manufacturing and logistics wonder that national brand retailers development. Both of these centers companies. choose Hesperia as their first loca- contain some of the top-producing Located in a robust market with high- tion in the High Desert. retailers and restaurants in the state. ly desirable market characteristics, Hesperia is located along both the Hesperia finished 2015 with 93,554 coupled with vast market intelligence I-15 and SR-395 highways in the square feet of new, expansion and to make their case to retailers, and a expanding High Desert region of tenant improvement projects as crack team to get them to opening, it Southern California. With 17 miles tracked by the Economic Develop- is clear Hesperia works for business. of freeway frontage, Hesperia offers ment Department. Six projects— “You won’t find any other City that easy access to 431,000 High Desert Petco, Pacific Eye Institute, WaBa works as closely or as openly with residents and traffic counts on I-15 Grill, AM/PM, Hesperia Speedwash, a developer as Hesperia’s Economic in excess of 200,000 cars per day. and another first-in-the-region Habit Development department. We work With strong economic indicators Burger Grill—contributed $24.6 very hard to find tenants for our new in its favor and having developed a million in taxable sales to Hesperia’s shopping centers and we actively diverse toolkit of business friendly economy, along with 137 jobs. Also work on a daily basis with develop- programs and strategies, the eco- included was a two-unit 9,985 square ers. We get more work done quicker nomic development team for the city foot, multi-tenant office building on because of this relationship; we just of Hesperia is primed for prosperity. Walnut Street at Hesperia Road. go straight to the bottom line,” said In 2016 development activity in the Interim Economic Development Di- Increasingly, retail businesses and rector Rod Yahnke. restaurants are staking their claims city began with stellar opening sales in the flourishing City of Hesperia for the first-in-the-region Tractor Commercial, industrial, and office located in the Inland Empire. One Supply Co. (TSC), located west of properties abound throughout Hes- of Hesperia’s top priorities is to Interstate 15 just past the High Des- peria, and this pro-development, bring attractive lifestyle options to ert Gateway on Main Street. With a customer service-oriented City is se- its ever-growing base of residents grand opening in January less than rious about bringing your business to with household incomes that aver- five months after breaking ground, Hesperia! To see how Hesperia can age $65,774. TSC reported initial sales for their work for you, contact the Economic 18,800-square-foot retail store ex- Development Department by email Even during the economic downturn ceeded company projections by at [email protected]. of the recent past, Hesperia has dem- 300%. onstrated strong growth and astute planning, keeping its ribbon-cutting Joining Habit Burger Grill in The shears sharply honed. One reason Marketplace on Main, anchored by is the impressive $1.4 billion retail the Walmart Supercenter, are Pie- potential in the I-15 and Main Street ology Pizzeria, Yogurtland, Metro trade area of the city encompassing PCS, and Great Clips in the 14,000 Lewis Retail Center’s High Desert square foot multi-tenant building Gateway, as well as the Marketplace along Main Street at Escondido. on Main. Pieology opened in early February

The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] High Desert Report 35 An economic overview Victorville City Update City of Victorville Gaining Momentum and Improving in Key Areas By: Doug Robertson, Victorville City Manager Each year the Vic- Lehndorfer. Stirling Capital and has lease com- torville City Coun- Isaac for example, saved our Veter- mitments from Arden Companies, cil prepares an an- ans Day Commemoration when he a leading manufacturer of outdoor nual report to the volunteered to be a substitute bugle patio cushions and Newell Rubber- community in the player; and Jessica is encouraging maid, a global leader in consumer form of our State children to read during our library’s products. of the City presen- summer reading program. Each of As we market Victorville to new tation. Our Council Members pre- these talented people is contributing business, our goals are growth and sented this year’s State of the City at individually to Victorville’s success, job creation. We are placing great the Victor Valley Chamber of Com- but their stories remind us that when emphasis on the Southern California merce’s Valley Morning Insight, we bond together, we build a stron- Logistics Airport (SCLA), the former Feb. 3. ger, healthier, more vibrant city in site of George Air Force Base that is All indicators show that we are gain- which to work, live and play. being transformed into a 5,000-acre ing momentum and improving in key Our State of the City also shows that commercial aviation hub and indus- areas. Specifically, sales tax revenue Victorville continues to lead the re- trial complex, which serves as the has increased, several road improve- gion in growth and development. As valley’s largest development project. ment and development projects are SCLA is becoming a multi-disciplin- Mayor Pro Tem Jimexhaust Cox air reported, system. This capital improvement investment took SCLA’s and Leading Edge’s joint complete, new business-license and we saw the opening of many new ary logistics hub chosen by nation- housing-permit requests are up, bur- businesses during 2015,efforts and including commitment ally so that and Leading internationally Edge would recognizedbe able to meet its customers painting glaries are down, and clean up ef- Holiday Inn, Desert Fiat, and Davita companies in manufacturing, ware- forts have left the city cleaner. Mojave Sage Dialysisreq Clinic,uirements as when well operating housing within and a cold aerospace winter climate. services. The most recent of these paint jobs We had a good year, and we are as Michael’s, Dollarinclude Tree, ordersand Sta for - EthiopianYou might Airlines, be China surprised Southern to learn Airlines, that Singapore Airlines, United looking forward to an even better ples in Dunia Plaza. SCLA has the second-longest com- 2016. As Victorville Mayor Gloria This growth continuesAirlines, in 2016. and many On moremercial to come. runway Leading in Edge the U.S. employs so anwe estimated can 150 people at SCLA. Garcia commented during the State accommodate the largest of wide- Feb. 15, after much anticipation,Other large investments BJ’s made by SCLA include facility upgrades to occupied and unoccupied of the City, “The changes that are Restaurant and Brewery opened in a body aircraft. SCLA’s location, happening in our City speak well for 7,525 square foot spacefacilities on Amargo including - hangarsland, and municipal office buildings, utilities security and upgrades flight- which include the repair of today and for generations to come. sa Rd. creating 137 new jobs; while favorable weather gives Victorville We can all be proud to say, “I Am construction began existing on the fence Krispy, and covering global dilapidated appeal; housing and areawe inare order attracting to beautify the Airport. Victorville.” Kreme location on Roy Rogers Dr. large business from the country and Our Council chose the theme “I Am Krispy Kreme is expectedMore recently, to open in the lastthe six world. months , The Boeing Company, a tenant of SCLA since 2003, has Victorville” for this year’s State of sometime this summer,brought and itsgenerate 777 offload Victorville program to its offers facility a inworld Victorville. of oppor Leading- Edge and Boeing have the City to showcase how our indi- 25 to 30 new jobs. tunity, and our future is bright. To vidual contributions make Victor- You can expect to seeteamed several up in more this program learn and more continue about to bringVictorville business and to SCLA. de- In December 2013, the ville strong. We wanted to dem- velopment opportunities throughout Victorville businessesBoeing in the 787 coming-900 Dreamliner landed at SCLA where it has been undergoing a significant amount onstrate that the character of a city year such as a two-story medical of- our city, including SCLA, visit our is in the people who live and work fice building on Yumaof flight Street, testing. a 170- website at www.victorvillecity.com here and that we build our commu- bed nursing facility on Winona and or call 760.955.5032. nity together. We shared stories of Eleventh; and a four-storyTo stay currentHome-2- with exciting news on SCLA or retail and restaurant growths in the City of five people who are making Victor- Suites by Hilton HotelVictorville on Amargosa follow us on our social media sites. ville better: La La Jones, the man- and La Mesa Roads Benear sure the toChuck visit our website at www.victorvillecity.com. Contact Keith Metzler at ager of Peoples Care; Jessica Oban E. Cheese’s restaurant. from Friends of the Victorville City [email protected] or call 760. 955. 5032. Library; Tim Watts, the owner of Construction has also begun on a Victorville Motors; Michael Casa- 444,000 square-foot industrial build- nova, a City of Victorville heavy ing on Lot 13B at our Southern Cali- equipment operator and Air Force fornia Logistics Airport. The new Reservist; and local Boy Scout Isaac construction is being developed by

The Bradco High Desert Report 760.951.5111 • Fax: 760.951.5113 • www.TheBradcoCompanies.com • email: [email protected] High Desert Report PRESORTED An economic overview STANDARD P.O. Box 2710 US POSTAGE Victorville, CA 92393-2710 PAID VICTORVILLE, CA Joseph W. Brady Inc., DBA The Bradco Companies, PERMIT #38 The High Desert Report, is a California Licensed Real Estate Broker No. 01057618

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in the High Desert l Factual economic information about the Inland Empire North/e corridor, including the Cities of Adelanto, Barstow, Hesperia, and Victorville, the Town of Apple Valley, and northern San Bernardino County l Published since May 1993 l Sales and permit trends l Economic analysis l Updated overview of absorbency rates of commercial, industrial, and office space l Free e-mail subscription with online registration at www.TheBradcoCompanies.com/register l Each edition at least 24 pages l The most condensed, up-to-date, factual business information from highly respected professionals, effected property owners, investors, developers and lenders, local businesses, anyone with a vested financial interest in the High Desert l Packed with valuable information from expert contributors l Published by Joseph W. Brady, CCIM, SIOR l Nominated for small business of the year, Inland Empire North/e corridor region by the Inland Empire Small Business Association visit us at www.TheBradcoCompanies.com SUBSCRIBE TODAY! or call 760.951.5111. To receive your FREE online subscription to The Bradco High Desert Report register today at: www.TheBradcoCompanies.com/register