Jobs, Cost, Feasibility: a Look at California's Energy Transition

October 22–November 4, 2019 Long Beach Area’s Newsmagazine lbbusinessjournal.com

City Council In This Issue Jobs, Cost, Feasibility: A Look At Approves California’s Energy Transition Permanent Lease With Community Hospital Operator

By DENNY CRISTALES Staff Writer

The Long Beach City Coun- Ban On Vape cil unanimously voted Tuesday, Flavors Proposed October 15, to approve a per- (Page 6) manent lease and cost-sharing agreement between the City of Long Beach and the selected operator for Community Hos- pital Long Beach – Molina, Wu, Network, LLC (MWN). The time period for the lease agreement is 45 years, in addition to two optional 10- year extensions, Long Beach With its ambitious climate goals, California is spearheading the transition toward renewable energy in the nation, but Economic Development Di- experts say the state’s timeline for achieving them is jumping ahead of available technology. Pictured is one of the Long rector John Keisler explained Queen Mary Leaseholder Beach THUMS Oil Islands, where trees and false buildings mask shoreside oil infrastructure from beachgoers. during a presentation to the (Photograph courtesy of Long Beach Energy Resources) Not Meeting Obligations city council. The rent is $1 per By ALENA MASCHKE 11 million people worldwide, with ciency sectors. As a result, workers year, but MWN will pay the (Page 8) Senior Writer room to grow as the industry’s share with lower educational attainment city additional rent equal to of the world’s electric power mix ex- can achieve higher wages than their 20% of the hospital’s net prof- California has set ambitious pands. “Southern California, being similarly educated peers in other in- its during the first five years of goals for phasing out fossil fuels in the big economic engine that it is, dustries. the agreement, Keisler said. favor of renewable energy sources could play a big role when it comes But there’s still work to be done The City of Long Beach is across the state’s power production to those jobs,” Greg Roche, vice in terms of inclusion. “The clean the landlord of the Community grid, commercial operations and president of renewable gas provider energy economy workforce is old- Hospital property, which in- consumer vehicles. What will this Clean Energy Fuels, told the Busi- er, dominated by male workers, and cludes the hospital facility at energy transition look like, who is ness Journal. lacks racial diversity when com- 1720 Termino Ave., a physician involved and how long will it take? A study by the Brookings In- pared to all occupations nationally,” medical building at 1760 Ter- The Long Beach Business Journal stitute’s Metropolitan Policy Pro- a summary detailing the study’s mino Ave. and a magnetic res- Holiday Corporate consulted numerous studies and re- gram found that wages in the clean fndings stated. Less than 20% of onance imaging center at 4111 search papers, as well as industry Gifting Tips energy sector – which researchers workers in the clean energy produc- E. Wilton St. experts, to fnd out. defned as the production of energy tion and energy effciency sectors Per the agreement, MWN (Page 10) Employment that is not derived from fossil fu- are women, and black workers make must operate an acute-care The renewable energy market is els – exceed average national wag- up less than 10% of the workforce. hospital and other health care ripe with employment opportunities. es by up to 20%, depending on the Catherine Reheis-Boyd, pres- facilities, including a medical According to a study by the Interna- occupation studied. Education re- ident of the Western States Petro- office building and emergen- tional Renewable Energy Agency quirements are also lower, the study leum Association (WSPA), noted cy services, at the site. Keisler (IRENA), the renewable energy found, especially in the industry’s that even companies traditionally said MWN will sublease a por- sector already employs an estimated energy production and energy eff- (Please Continue to Page 22) tion of the facility to the Long Beach Police Department’s Sexual Assault Response Team What Westsiders Want From Their New Councilmember (SART), a public safety group By DENNY CRISTALES former Councilmember Lena during a special municipal elec- of medical experts that address The Final Piece Of Staff Writer Gonzalez’s election to the state tion on November 5. crimes related to sexual as- senate in June. A new face will Ahead of the election, the sault. Douglas Park Long Beach’s 1st District represent the 1st District’s resi- Business Journal reached out to MWN is responsible for (Page 16) city council seat has been va- dents and business owners once business owners in the Westside all construction work to bring cant for months following a councilmember is elected (Please Continue to Page 23) (Please Continue to Page 5)

Is This Think Piece Serving You?

By Editor SAMANTHA MEHLINGER More free-spirited cultures have long been made Baby Boomer readers will recall their genera- fun of Americans for a certain degree of uptight- tions’ pushback against this cultural phenomenon ness when it comes to emotions and sexuality. I with the Free Love movement. They get the Gold don’t need to give you a history lesson (I hope), Star for the generation to most aggressively rail but our Puritanical roots are usually cited as the against the Puritanical machine. But, of course, cause of our country becoming the poster child resistance to repression – emotional, sexual or for this sort of repression in the Western world. (Please Continue to Page 26) IN THE NEWS 2 • Long Beach Business Journal • October 22–November 4, 2019

PortSide: Keeping Up With Vol. XXXVIII No. 20 • October 22 - November 4, 2019 The Port Of Long Beach PUBLISHER The Long Beach Business Journal is a April Economides publication of South Coast Publishing, Inc., incorporated by the State of California EDITOR in July 1985. It premiered March 1987 as Samantha Mehlinger the Long Beach Airport Business Journal. The Business Journal is published every SENIOR WRITER & PHOTOGRAPHER other Tuesday, except between December Brandon Richardson 25 and mid-January. Distribution is approximately 22,000. Reproduction SENIOR WRITER in whole or in part without written Alena Maschke permission is strictly prohibited unless otherwise stated. Opinions expressed by STAFF WRITER perspective writers and guest columnists Denny Cristales are not necessarily the views of the Long Beach Business Journal. COPYEDITOR Virginia Gonzales ADVERTISING/EDITORIAL DEADLINES Ads: Wednesday prior to publication. GRAPHIC DESIGNER Press releases: two weeks prior to KDA Consulting publication. E-mail press releases to [email protected]. The editorial calendar is PUBLISHER EMERITUS available at lbbusinessjournal.com. George Economides Follow us LONG BEACH BUSINESS JOURNAL @LongBeachBusinessJournal 2599 E. 28th Street, Suite 212 Signal Hill, CA 90755 Follow us @LBBizJourn Phone: (562) 988-1222 Fax: (562) 988-1239 [email protected] Follow us @LBBusinessJournal

SUBSCRIPTIONS: 1 year: 25 issues Standard Bulk: $30 lbbusinessjournal.com By ALENA MASCHKE Leading the port’s internship and schol- Senior Writer arship program as well as the Academy for Global Logistics program at Cabrillo As a senior community relations High School, Güitrón said she feels for- MONDAY specialist at the Port of Long Beach, tunate to see her work come to fruition Alejandra Güitrón oversees the port’s frst-hand. “My job is rewarding in the MORNING educational outreach. A child of Mex- sense that, a lot of times people do the ican immigrants and a frst-generation work, but they don’t really see the impact COFFEE and high school graduate, Güitrón said she of it,” she explained. “We do the work, we still remembers how lost she felt as her do the programs, and I’m already seeing BIZBRIEF high school graduation approached. “I the impact.” The results are signifcant, was frst generation, I wasn’t ready for she noted: at the start of the port’s high college, I didn’t know what direction to school academy program in 2016, 6% of Sign up at lbbusinessjournal.com for MONDAY MORNING COFFEE and go in,” she recounted. Güitrón credits her BIZBRIEF, FREE email subscriptions about issues, events and meetings for Cabrillo students were enrolled in ad- the week. Monday Morning Cofee is sent out at 6 a.m., and BizBrief is news of senior year career advisor for setting her vanced placement (AP) classes; now that the day, sent out periodically around 4 p.m. weekdays as needed. on the right trajectory, enabling her to percentage has increased to 17%.“It real- take on the role she has today, opening ly feels good to see that what we’re doing up opportunities for the next generation. is changing lives,” she said.

It’s not too late to become a Viking this Fall! SEPT. 23: 12-week classes begin OCT. 21: 8-week classes begin NEWSWATCH Long Beach Business Journal • October 22–November 4, 2019 • 3

City Council Targets Coffee Lids, Mortuary Honored For 25 Years Of Service Straws And Retail Sale Of Polystyrene In Expanded Food Packaging Policy

By SAMANTHA MEHLINGER into a four-step procedure. The frst step Editor focuses on educating a business in vio- lation, the second focuses on reinforcing The Long Beach City Council on Oc- compliance requirements, the third may tober 15 directed City Attorney Charles result in a citation or hearing and the Parkin to amend the city ordinance ban- fourth may result in referral to the city ning restaurants’ use of expanded poly- prosecutor or the business licensing bu- styrene products for food packaging reau for further review, according to Mel- to include a ban on #6 coffee cup lids, konian. which are typically used for to-go hot “I completely commend the city coun- coffee, in lieu of recyclable alternatives. cil and the city staff for working on this The amendment would also require that issue, and the councilmembers that have straws be made available only upon re- continuously brought this issue up,” May- quest in food establishments, and that or Robert Garcia stated during the meet- those straws must not be made of plastic ing. “These actions have consequences or bioplastic, which is often made from statewide. And when we passed our plas- corn starch. tic bag ban, it affected the states’ then-de- Ken McKenzie, owner of McKenzie Mortuary Services, is being honored for 25 Additionally, 5th District Coun- cision on plastic bags. Our polystyrene years of service to the Long Beach community during the October 22 Long Beach City Council meeting. Fourth District Councilmember Daryl Supernaw and May- cilmember Stacy Mungo made a motion, work has affected the way the state deals or Robert Garcia will present a certifcate of recognition to McKenzie during a which was accepted by the item’s princi- with polystyrene, and what we’re doing special presentation. In 1994, at the age of 26, McKenzie opened McKenzie Cre- pal author, 7th District Councilmember with straws will affect further laws state- mation & Burial Services in Signal Hill. He then purchased land at 3843 E. Ana- Roberto Uranga, to also expand the ordi- wide.” heim St. in Long Beach and built the mortuary. Over the last 25 years, more than nance to ban the retail sale of polystyrene Garcia added, “Long Beach has al- 24,000 people have been cared for at the mortuary. Aside from sponsoring annual food containers. ways led on these issues, and I’m really holiday food drives and summer estate sales to raise money for people receiving Parkin and Public Works Director proud that this council continues to do care at local hospices, McKenzie donates 3% of his service charge to Kamm Craig Beck clarifed that they would re- that.” Cares, a nonproft McKenzie founded to raise money for people going through turn to the council with an amended ordi- The council voted 6-0 to approve the breast cancer treatment. For more information, visit funeralhomelongbeach.com nance banning #6 coffee lids and plastic/ item. Councilmembers Jeannine Pearce and kammcare.com. (Photograph by Brandon Richardson) bioplastic straws, and that this would con- and Rex Richardson were absent. stitute a fourth phase of implementation for the ordinance. When the amended ordinance is brought back to the council, councilmembers could decide to adopt it as is, or to instruct city staff to add a pro- vision banning the retail sale of polystyrene food containers, according to Parkin. Adopted on April 17, 2018, the ordinance included three phases of adoption. The frst, which occurred September 3 of 2018, applied to city departments, facilities, contractors, vendors and events. The second phase, effective March 3, 3:00 – 5:30 p.m. 2019, applied to restaurants with seating Speaker Panel & Economic Forecast Presentation for 101 patrons or more, franchise eat- 5:30 – 6:30 p.m. eries, grocery and convenience stores, Hosted Craft Beer and Wine Tasting food trucks and the Long Beach Unifed School District. The third phase goes into effect on December 3, 2019, and applies TUESDAY A REGION IN TRANSITION: ADVANCES IN to restaurants and food providers that seat 10.29.2019 101 patrons or fewer. The third phase also implements a ban on the sale of polysty- INNOVATIVE TECHNOLOGY rene ice chests, bean bags and crafts, and specifes that take-away straws and uten- JOIN US AND LEARN TECHNOLOGY PANEL PRESENTERS sils may only be given upon request. • About the latest disruptive AEROSPACE EMCEE AND MODERATOR No business owners provided public technologies in the South Bay. Van Espahbodi Frank Mottek, Business News Anchor, KNX 1070 NEWSRADIO commentary on the item. In a presentation Co-Founder, Manager & Partner, Starburst Accelerator • From start-up to the next US ECONOMY AND CHANGES about the implementation of the original Space X—How to reach for E-MOBILITY TO SOUTH BAY ECONOMY ordinance, Diko Melkonian, deputy di- Sohel Merchant William Yu, Economist, UCLA Anderson Forecast the stars. Founder, Canoo rector of public works, detailed the city’s ENTREPRENEURIAL INVESTMENT • When will we put the brakes outreach to the business community. The BIOMED Jennifer Brodmann, Assistant Professor of Finance, CSUDH on gas-powered vehicles? Dr. Leonard Sender health department began making site vis- Senior Vice President, NantKWest TELEWORK AND THE FUTURE its to affected businesses in September Co-Director, Chan Soon-Shiong Institute For Medicine OF THE WORKPLACE Fynnwin Prager, Co-Director, CSUDH Economics Institute 2018, and the public works department Loker Student Union | Grand Ballroom SPACE INNOVATION has visited nearly 300 restaurants since 1000 E. Victoria Street, Carson, CA 90747 Monica Jan HOUSING MARKET June 2019, Melkonian stated. Senior Director of Strategy & Customer Experience, Virgin Orbit Jose N. Martinez, Co-Director, CSUDH Economics Institute About one-third of businesses affect- Gold Sponsors: Ms. Bree Nguyen, CSUDH ALUMNA ed by the upcoming third phase implementation of the ordinance are already Visit www.csudh.edu/economic-forecast to register. in compliance, according to Melkonian, For sponsorship opportunities visit www.csudh.edu/onlinegiving. who noted that 77% of the city’s food es- For more info contact University Ceremonies & Events at (310)243-2666 tablishments fall into this category. Enforcement of the ordinance falls GROWING LONG BEACH 4 • Long Beach Business Journal • October 22–November 4, 2019 Growing Long Beach: Cohesive Efforts Lead To ‘Activation’ At The Promenade terior designer and leader of RDC’s hospi- tality and interiors group, said RDC fulflls this mission by providing architecture and branding services to local cities. Studio One Eleven is now a neighbor to Portuguese Bend Distilling, which opened in June. Prior to the distillery’s opening, Studio One Eleven worked with Navarro to design the distillery’s interior. Long Beach Development Services assisted with compliance work, such as land use and safety procedures, said Oscar Orci, deputy director of development services. Alan Pullman, senior principal of Studio One Eleven, indicated that The Promenade has seen a 30% increase in foot traffc in the last two years, per DLBA data. This increase in activity is largely a part of national changes in retail patterns, Pullman said. To compete with online retailers, developers are responding by introducing plazas that combine retail, lifestyle and socialization. This change has led to more engaging shopping centers and neighborhoods, said Thile- nius, who also helped designed Portuguese Bend Distilling’s interior. “It’s empowering and exciting for people,” he said. Navarro said the Long Beach Econom- ic Development Department has assisted in Portuguese Bend Distilling opened in June. The business’s neighbor, Studio One Eleven, assisted owner Luis Navarro in designing his space’s interior. creating an environment that allows entre- Pictured, from left: Alan Pullman, senior principal of Studio One Eleven; Jackson Thilenius, Studio One Eleven interior designer; and Navarro. (Photo- preneurs to thrive. Residents reap the bene- graph by Brandon Richardson) fts, he added. Sergio Ramirez, deputy eco- By DENNY CRISTALES in the city – marked Navarro’s fourth estab- opment departments. Specifc to downtown, nomic director of the department, said The Staff Writer lishment in Long Beach. Navarro operates in The Promenade, partners like Studio Promenade’s transformation in particular Lola’s Mexican Cuisine, with two locations One Eleven, RDC and the Downtown Long would not be possible without the vision of For the past several years, the assertion in Bixby Knolls and Retro Row, and The Beach Alliance (DLBA) play crucial roles, his fellow city leaders. that Long Beach is going through a “renais- Social List, a restaurant at 2105 E. 4th St. he said. “You really see all the residents come sance” has been made so often – by elect- All told, Navarro has more than a decade in Studio One Eleven’s work on its new out and are at different restaurants and ed offcials, real estate brokers, business restaurant entrepreneurship. headquarters at 245 E. 3rd St. helped kick bars,” Ramirez said of The Promenade. “It leaders and even economists – that it seems Navarro’s presence in all three of these off the revitalization of the area as part of feels so European. It feels like a great place to have become a full-fedged local man- neighborhoods has given him a frst-hand the reimagining of The Streets shopping that is very warm and fun.” tra. With the advent of new retail centers observation of Long Beach’s economic and center. The company relocated from the Pullman echoed this thought, also em- – Long Beach Exchange and 2nd & PCH, developmental growth. “The businesses are Landmark Square offce tower in 2016 to phasizing the role of entrepreneurs. “A to name a couple – and the construction of changing and there’s a lot of energy com- its current location at a former Nordstrom successful downtown is an ecosystem of many developments citywide, there certain- ing in,” he said. “Every district is different. I Rack, and helped the shopping center’s a lot of successful players,” Pullman said. ly is a good case to make that it’s more than see more people walking around, people on owner redesign the gateway to The Prom- “But really it’s the private sector that’s the a narrative, but a reality. bikes [and] couples. . . . People bring more enade at 3rd Street. engine. I know one thing that economic de- However, local restaurant entrepreneur people. When there is activation, it’s like a Michael Bohn, senior director and prin- velopment is looking at is attracting more Luis Navarro has a different term for this magnet.” cipal of Studio One Eleven, said the com- business downtown and attracting the right shift: “activation.” The opening of Portu- This citywide transformation is some- pany’s mission is to repair and revitalize development downtown. It’s playing to the guese Bend Distilling this past summer at thing Navarro attributes to both the city’s cities, with a focus on urban environments. successes that we’ve already had.” 300 The Promenade N. – the only distillery development services and economic devel- Jackson Thilenius, Studio One Eleven in-

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FOR MORE INFORMATION, PLEASE CONTACT THE CITY’S ECONOMIC DEVELOPMENT DEPARTMENT. (562) 570-6172 www.longbeach.gov/economicdevelopment/ NEWSWATCH Long Beach Business Journal • October 22–November 4, 2019 • 5

sales tax for infrastructure and public Community Hospital safety, on the March 2020 ballot. Pay- (Continued from Page 1) ing for the hospital’s seismic retrofit the hospital up to state seismic stan- costs was one of the reasons for plac- dards, as well as for state permitting ing the extension on the ballot. and medical licensing to operate the The lease, which became effective facility through the tenure of the lease October 15, is a finalized version of a agreement. The city has no responsi- short-term agreement approved by the bility to perform any improvements, city council in March. repairs or maintenance to the property, Community Hospital’s pending according to the lease. transformation into a fully operation- The City of Long Beach will real acute-care facility could gener- imburse MWN for 50% of the seis- ate at least 250 new nursing, mainte- mic-retrofitting costs, up to $25 mil- nance, administrative and other jobs, lion annually, over a 15-year period. according to economic projections in The city may withhold these payments Keisler’s presentation. Estimates for on a “dollar for dollar basis” in the medical office and non-acute medical event of that MWN defaults on the staffing were not available. agreement, Keisler said. MWN may Fourth District Councilmember also voluntarily terminate the lease if Daryl Supernaw has been championing it determines that the hospital is not the reopening of the Eastside medical economically feasible to operate. If facility, in particular its emergency The City of Long Beach and Molina, Wu, Network, LLC have ofcially entered into a lease and room (ER), for some time. At the Oc- cost-sharing agreement for Community Hospital. MWN can now take steps to hire staf and MWN does choose to terminate the purchase the necessary equipment required for a pending California Department of Public Health lease, the city would be responsible for tober 15 council meeting, he acknowl- inspection. Pictured, from left: Community Hospital CEO Virg Narbutas, Long Beach Economic reimbursing any of the operator’s costs edged the challenges of establishing Development Director John Keisler, 4th District Councilmember Daryl Supernaw, and Community associated with the hospital. such an agreement between MWN and Hospital Long Beach Foundation Chair Ray Burton. (Photograph by Brandon Richardson) Keisler said the city will look at us- the city. “I don’t know of any real es- ing any budget reductions in its Gen- tate transaction that occurs without an Hospital had a total of 27,205 emergen- offering for the City of Long Beach eral Fund or other revenues, such as element of risk,” Supernaw said. “What cy visits in 2016. Since the hospital’s continue to exist.” Measure A dollars, to pay for the city’s I will say about the risk in this deal is closure in 2018, the Long Beach Fire With an established lease agree- share of the seismic retrofit costs and that whatever it ends up being, it pales Department’s average rescue transport ment, MWN can take steps to begin administration of the lease – which is in comparison to the risk [to] our resi- times have increased by at least 10%, hiring staff and purchase the neces- an estimated $100,000 to $150,000. dents . . . not having an ER.” according to Modica’s presentation. sary equipment that will be required The Long Beach City Council recently During his presentation to the Long The public impacts of not hav- for a pending California Department approved placing a permanent exten- Beach City Council, Tom Modica, the ing an Eastside hospital is something of Public Health inspection, which is sion of Measure A, a temporary 1% acting city manager, said Community that hits close to home with 3rd Dis- scheduled for some time at the end of trict Councilmember Suzie Price. The October, according to John Molina, a councilmember said her mother, who partner in MWN and founder of Pa- is battling metastasized breast cancer, cific6 Enterprises. Completion of the recently needed emergency transpor- inspection will result in the approval tation to the closest medical facility. of a medical license for Community Without an accessible emergency room Hospital. in Long Beach, the nearest facility was MWN will then take measures to Los Alamitos Hospital, about six miles submit a seismic compliance plan to from her mother’s location. Price said the Office of Statewide Health Plan- a trip to Community Hospital would ning and Development (OSHPD) by have been “at least half that distance.” June 2020 and complete related con- “Minutes matter,” she said. “That’s struction by January 1, 2025. just my personal story. I’m sure there “I think this hospital is very aptly are hundreds of stories, if not thou- named – it is a community,” Molina sands, just like that. The option is just said. “The success of this hospital, and not there for Eastside residents. . . . I have no doubt that it will successful, Personally, I’m grateful that we have is going to be due to the commitment a partner [in MWN] who has such a of everyone in the community to band heart for the community that they’re together to revitalize an asset that is willing to invest to make this 90-year here for everyone’s benefit.” NEWSWATCH 6 • Long Beach Business Journal • October 22–November 4, 2019 ‘We Can’t Survive Without Flavors’: Vape Shop Owners Fight Proposed Flavor Ban

Nels Hansen, owner of Breathe Vape in Long Beach, is spearheading a petition against a proposed ban on favored vaping products within the city’s limits. (Photograph by Brandon Richardson)

By ALENA MASCHKE mation regarding the health impacts,” products containing nicotine. Only no strong evidence so far that vaping Senior Writer 3rd District Councilmember Suzie 13% reported that they exclusively used constituted a healthier alternative to Price, who spearheaded the effort to nicotine-containing products, while smoking. “There is a misconception With over a thousand injuries and create a temporary ban, said during the 32% reported they had only used prod- that e-cigarettes are healthier,” Youssef 26 deaths nationwide, three in Califor- council meeting. ucts containing THC. said. “There is a big difference between nia, the Center for Disease Control and But local vape shop owners and us- “They did not even put [the THC healthier and less harmful.” Instead, he Prevention’s numbers on a recent out- ers of vape products voiced concerns cartridges] in the scope of their in- said, the recent wave of injuries should break of vaping-related illnesses paint that the ordinance would decimate terest,” Jeff Luciano, owner of Long serve as a reminder that ingesting nic- a stark picture. While the exact cause local businesses while doing little to Beach Vapor, bemoaned. “That is so otine or THC-containing smoke or va- of the outbreak remains unclear, state prevent the kinds of injuries that have shameful.” Luciano said vaping has por into one’s lungs will have adverse and local governments have taken steps placed patients across the country in helped him minimize his nicotine ad- health effects. “Now is a great time to to regulate vaping products in light of intensive care units. A group of vape diction and that the products sold at his stop smoking,” he noted. the deadly wave of pulmonary injuries, shop owners has started a petition to store have helped others do the same. Price said adults using vape prod- and Long Beach is no exception. fight the ban, which is currently being Now, his customers worry that with- ucts to curb their smoking habit would The Long Beach City Attorney’s drafted. out access to flavored vaping products, still be able to access them. “Anyone Office is currently drafting a tempo- Instead of focusing on flavors, they they will return to cigarettes, Luciano using e-cigarettes to quit smoking and rary ban on flavored vaping products, say elected officials should address the explained. “My customers are calling break themselves of a nicotine addic- following a 7-0 vote on the matter by sale and use of products containing tet- me depressed, and I don’t know what to tion, under our temporary ban, would the city council on October 1. Vice rahydrocannabinol (THC), particularly tell them,” he said. “This is something still be able to access the products. It Mayor Dee Andrews was absent from those obtained from illicit or informal beyond my control.” would just not be the flavor of cotton the meeting but submitted a letter in sources, which “are linked to most Medical experts in the United candy,” Price said at the October 1 support of the proposed ban. “Cities, of the cases and play a major role in States have questioned the health ben- meeting. counties and states all across the coun- the outbreak,” according to the CDC. efits of vaping claimed by manufac- Flavors like cotton candy have long try are making major strides to con- Among the 573 patients who provided turers, merchants and devoted users been blamed for the prevalence of vape front this issue, and it is time the City information on the substances used, of vape products. Dr. Fady Youssef, a use among teens, and some in the in- of Long Beach did the same to protect 73% reported using vape products con- pulmonologist at MemorialCare Long dustry argue that elected officials are our residents until we have more infor- taining THC and 57% reported using Beach Medical Center, said there was succumbing to the pressure mounted NEWSWATCH Long Beach Business Journal • October 22–November 4, 2019 • 7

by worried parents, without any ev- pointed to the diverse array of vape liq- the percentage of nicotine permitted they used electronic cigarettes in the idence to suggest that flavors have uids displayed behind a bar at his store. in vape liquids, arguing that the high past 30 days, according to the CDC. In played a role in the recent slew of inju- “If they get rid of this wall of small nicotine content of products like Juul 2014, 73% of high school students and ries. “So far, we don’t have a strict link business, this store goes with it and the made them more attractive to teenag- 56% of middle school students who between the two,” Youssef said. “But only products that you’ll have available ers looking for a buzz. “They want it used tobacco products in the past 30 the thought is that the flavoring itself are at 7-Eleven, which is only big to- for the head-pop,” Hansen said. Adult days reported using a flavored tobacco can be an irritant.” bacco products,” Hansen said. smokers preferred liquids with a lower product during that time. Nels Hansen, owner of Breathe Vape Flavors or not, teenagers will con- nicotine content, he argued, pointing While her current proposal is fo- shop in the Park Estates neighborhood, tinue to use vaping products or even to the 0.3% nicotine content of his top cused on banning only flavored prod- expressed doubts that banning flavors cigarettes, Hansen argued. “Are kids selling vape liquid compared to the 5% ucts, Price said a complete ban on vap- such as caramel or cotton candy would vaping? Yes, it’s bad. But it’s not our of nicotine contained in Juul Pods. ing products might also be on the table. address concerns over potential lung fault,” he said. “Kids are going to do The amount of nicotine consumed “That’s something we want to look irritations. “What they don’t under- bad stuff. Kids are going to experi- by teens can have long-lasting health at in the future,” she said. For now, stand is: tobacco is a flavor,” he said. ment. Kids are going to try things that effects, according to Youssef. “Young- placing a temporary ban on a specific “To make a tobacco [vape] juice, you’re adults are doing. That’s part of being a er individuals who are exposed to high product group is a compromise, Price actually putting in flavors, just like you teenager: emulating adults.” nicotine levels are going to be more de- explained. “We’re trying to mitigate would for a strawberry vape juice.” To- Hansen argued it is parents’ respon- pendent on and more addicted to those harm to the industry,” she added. bacco-flavored products would not be sibility to educate their children and products,” he said. He also pointed to Hansen said the current rhetoric affected by the proposed ban. “So are the task of law enforcement and school adverse impacts on the long-term men- around vaping has already impacted we talking about people getting hurt or officials to enforce existing regulations tal development of teens and immedi- his business. “Our numbers are already are we talking about kids liking fla- against teen use. “If they’re using this ate symptoms such as irritability and down dramatically, just from media vors?” Hansen asked. as a scapegoat to ban flavors, it’s pret- lack of impulse control linked to un- hysteria,” he said. “We had to lay off Instead of flavors, vape shop own- ty appalling and temple-scratching. It derage nicotine consumption. everybody except for one person.” ers and employees have pointed to a doesn’t make sense,” he said. Instead, Despite a lack of evidence that fla- Among the few customers who trickle specific style of vaporizer popular he and other industry members argued, vors are responsible for the serious and into the store throughout the day, the with teens. The vaporizers sold at most the sale of vape products should be re- deadly injuries reported by the CDC, proposed ban is a constant topic of con- vape-only shops are larger, more ex- stricted to the few vape-only stores in Youssef said he supported a ban on versation. “I’ve had customers sitting pensive devices than the thumb drive the city, to make age restrictions easier flavored vape products until more re- right here, crying,” Hansen said, point- or pen-like devices commonly used by to enforce. According to Kelly Colopy, search becomes available. “I think the ing to a leather couch near the store- teens. “The kids are using smaller de- director of the Long Beach Health and goal should be to minimize the expo- front window. “They don’t want to go vices that are more discreet,” Luciano Human Services Department, there are sure to younger individuals,” he noted. back to cigarettes.” If the ban passes, pointed out. currently 13 vape-only stores and 490 While the percentage of high school Hansen said, he will likely convert his A recent letter to parents sent out stores licensed to sell tobacco prod- students using cigarettes has decreased store into a smoke shop to stay afloat. by the Long Beach Unified School Dis- ucts. significantly in the past decade, 20.8% “We can’t survive without flavors,” he trict confirms this assertion. “The cas- Some also proposed a limit on of high schoolers in 2018 reported that noted. ing can come in any shape or size, but its most popular form is the Juul, which usually appears as a flash drive and can be easily concealed in a backpack, coat, purse, etc.,” the letter stated. Juul, which is partially owned by Altria Group Inc., the maker of Marl- boro cigarettes, uses pods that feature a much higher nicotine content than most other vaping products commonly sold at vape-only stores, according to store owners. Juul pods and devices can be purchased at tobacco and convenience stores. The company has been rebuked by the U.S. Food and Drug Administration for its marketing to youth as well as claims that its products present a healthier alternative to smoking. Price said she wasn’t surprised to see local vape shop owners arguing against the proposed flavor ban. “Something like this would be a hit to wǀɰwȖȵưźȖ̮͗ĔǹɜǾʗǀ͗ǾȪ͗uȵɜǀǾǲȪ͗½źɜȓǀɰɤ͗ their business model, I get that,” she told the Business Journal. “I regret that that that’s the case, but they happen Áȵʗ̵͗˘͇˙̭͗͗͗͗²ȵȪǲ͗5ǀźƱǹ̯͗6 to be selling a product that’s causing death throughout the United States.” Ĕǹǀ̴͗˓͗ưʀɤǾȪǀɤɤ͗ɤʀȨȨǾɰ͗ǰȵɜ͗ǾȪɰǀɜȪźɰǾȵȪźȖ͗ɤɰɜźɰǀǲʣ̯͗ Fifth District Councilmember Sta- ǾȪɰǀɜȪźɰǾȵȪźȖ͗ǀʢəźȪɤǾȵȪ̯͗źȪƸ͗ȓǀʣ͗ǰȵɜǀǾǲȪ͗Ȩźɜȓǀɰ͗ƸʣȪźȨǾƱɤ̵ cy Mungo, who later joined her fellow councilmembers in supporting the proposed temporary ban, cautioned against painting the industry with too ˓˒˒͵ ˘˒͵ ˔˗͵ broad a brush. “What I don’t want to do is punish and ban an industry that Ćəǀźȓǀɜɤ ĆǀɤɤǾȵȪɤ þȵʀȪƸɰźưȖǀ͗=ǾɤƱʀɤɤǾȵȪɤ has not actually caused any deaths,” Mungo said. Many in the vaping industry have argued that banning flavors would uǾȪƸ͗ȵʀɰ͗Ȩȵɜǀ͗źȪƸ͗ɜǀǲǾɤɰǀɜ͗źɰ͗wǀɰwȖȵưźȖ̵Ʊȵ kill off small businesses such as vape shops and vape liquid manufacturers, handing the market back to big tobacco Ģɤǀ͗úɜȵȨȵ͗6ȵƸǀ͗²55¬˔˒˓˛͗ǰȵɜ͗˗˒΍͗×uu companies like Altria Group. Hansen NEWSWATCH 8 • Long Beach Business Journal • October 22–November 4, 2019 Queen Mary Leaseholder Not Meeting Obligations, City Says Queen Mary. ceived from the inspecting engineer is not These are just a few of many concerns that there would be any sort of a catastroph- outlined in the detailed reports of Edward ic failure, but that you would start to see Pribonic, the independent inspector hired by sagging in certain areas related to the side the City of Long Beach to keep track of re- shell.” He added, “But the side shell and the pairs and maintenance on the Queen Mary, super structure that holds up the lifeboats which is currently under the care of lessee are integral to the structure of the ship, so Urban Commons. The monthly reports are it’s something that we want to get addressed dated from January through June of this as quickly as possible.” year. Keisler’s letter notifed Woods that Ur- On October 1, Long Beach Economic ban Commons’ annual audited fnancials Development Director John Keisler sent Ur- for 2018 and evidence of the account depos- ban Commons CEO Taylor Woods a letter its and balance for the ship’s Base Mainte- informing him that the company had failed nance and Replacement Plan Fund are due to meet its obligations as outlined in its 66- to the city no later than October 30, 2019. year lease agreement to operate the Queen The latter identifes funds available for Mary. Keisler cited a number of issues de- maintenance projects. “Please respond to tailed in Pribonic’s inspection reports, in- this letter within 30 days and provide a plan cluding failing paint, the need to remove de- to address the defciencies described above,” teriorating lifeboats, and necessary repairs Keisler wrote in the letter. “If you fail to re- to the ship’s side shell, expansion joints and spond within 30 days, Urban Commons bilge. may be found in default per Section 14.1.b A photograph from the June 2019 inspection report of the Queen Mary property by an indepen- Some of the necessary repairs are crit- of the Lease, with the right to cure pursuant dent contractor, Edward Pribonic, shows a hole in the Scorpion submarine. The heavily corroded ical for visitor and employee safety, per the to Section 14.2.” sub is docked beside the Queen Mary, and in danger of listing or sinking, according to the report. inspection reports. For example, as Keisler A spokesperson for Urban Commons (Photograph courtesy of the City of Long Beach) wrote, the continued corrosion of the side told the Business Journal on October 10 By SAMANTHA MEHLINGER with drawn-on numerals, and splitting car- shell “represents a serious threat to the that the documents would be sent to the city Editor pet patched with duct tape. The adjacent ship’s structural integrity and the safety of by the deadline. Asked when Urban Com- Queen’s Marketplace, which was supposed guests and employees.” mons’ 2018 fnancial records were original- The lifeboats on the Queen Mary are to have been demolished, is being used to Asked for further detail about the state ly due to the city, Vallejo said that should in danger of structural failure. Handrails store rubbish. The ship’s neighbor in its of the ship’s side shell, Johnny Vallejo, have been received in March. “They are late, on the ship are broken in some places, and moat, the Scorpion Russian submarine, is business operations bureau manager for the which is why it was called out,” he said. in others, missing entirely. Missing num- heavily corroded and could sink, posing city’s economic development department, Vallejo noted that the fnancial state- bers on the ship’s elevator were replaced a threat to the structural integrity of the explained, “The communications we’ve re- ments show the amount of proft Urban NEWSWATCH Long Beach Business Journal • October 22–November 4, 2019 • 9

Commons is making in running the Queen years behind schedule. Mary. He noted that in order to make enough Linda Tatum, director of Long Beach proft to maintain the ship, the lease agree- Development Services, confrmed via email ment assumes that the planned shoreside de- that in 2017 Urban Commons submitted a velopment must go forward. “The way the design concept to her department for Queen current lease is written, it did contemplate a Mary Island. “Development Services pro- signifcant resource for maintaining the ship vided a couple of rounds of comments on is the shoreside development,” he said. [the] proposal, as to its consistency with the In a separate letter also sent on October Queen Mary Land Development Guide- 1, Keisler approved a request made by Ur- lines,” she said. But further work has been ban Commons on September 10 to demol- put on hold while Urban Commons address- ish Queen’s Marketplace – a defunct retail es matters related to its fnances. “Subse- village next to the ship – and construct ad- quent to the submittal of the concept design, ditional parking. He directed Urban Com- Urban Commons advised staff that the proj- mons to provide evidence of the availability ect was on hold to allow time for the frm of funds necessary to complete this project. to focus on issues related to its corporate Notably, the letter directed Urban Com- fnancing structure. Staff has been advised mons to submit written documentation “that that the QMI project will be reinitiated at a because it does not intend to fnalize the en- future time, but no date has been provided titlements for the Queen Mary Island project for the resubmittal,” Tatum explained. within the next 24 months, the demolition Asked if the city has concerns about Ur- of the Village and Marketplace buildings ban Commons’ fnancial ability to maintain and the construction of the parking lot is re- the ship and meet its leaseholder obligations, A porthole in view of the public on the Queen Mary languishes in disrepair, as evidenced in this quired.” Queen Mary Island is Urban Com- Vallejo pointed to the frm’s move to go pub- image from a May 2019 by Edward Pribonic, an independent inspector hired by the City of Long mons’ planned development of the land ad- lic on the Singapore Stock Exchange. “We Beach to keep track of ship maintenance. (Photograph courtesy of the City of Long Beach) jacent to the ship, which would tentatively do believe that they have access to addition- include an outdoor amphitheater, retail and al revenue and that the development plan is which consisted of existing city reserves and our lease agreement with the City of Long other amenities. still on course,” he said. bond revenues, has been spent. Per a city Beach,” the e-mail from Urban Commons’ When the plan for Queen Mary Island As previously reported by the Busi- memo, as of September, just eight projects public relations representative stated. “Re- was unveiled in March 2017, Woods told ness Journal, a 2015 marine survey of the have been completed and 19 are in prog- pairs to The Queen Mary have been under- the Business Journal that the project would ship estimated it would cost $235 million ress. Eight other projects are pending and way for some time, with each item outlined be completed in six to eight years from that to $289 million to address needed short- unfunded. in our agreement appropriately prioritized time, including one to two years to procure term, mid-term and long-term repairs to the In a statement sent to local media on Oc- and either already addressed, or postponed necessary permits and permissions. Given Queen Mary. But in 2016, Urban Commons tober 4, Urban Commons responded to re- with supporting documentation in favor of that timeline, if it does indeed take Urban requested just $23 million in city funds to ports about needed repairs and maintenance, issues that required immediate attention to Commons as much as 24 months to fle en- address 27 preservation and restoration proj- and its lease obligations. “Urban Commons ensure the ship remains safe for visitors and titlements, the project would be at least two ects. About $14.08 million of that money, is currently in compliance with the terms of crew at all times.”

oin us for our 20th annual Scarium of the Paciﬁc on Saturday and Sunday, October 26-27, from 9:00AM to 5:00 PM. Families will learn about the scary and not-so-scary animals that inhabit the Paciﬁc Ocean, while enjoying special Scarium programs. Activities include magic shows, live creepy creatures, underwater pumpkin carving, a decorated pumpkin display, children’s coloring contest, and a variety of fun crafts. Children are invited to come dressed as an underwater creature or in traditionally ghoulish attire to compete in our daily costume contest (must register by noon to participate).

Participating Southern California Denny’s locations are ofering a coupon valid for a FREE child’s admission (ages 3-11) with the purchase of a full-priced adult admission. Ofer available through 10/31 or while supplies last. Coupons valid through 3/31/20.

AQUARIUMOFPACIFIC.ORG 562.590.3100 100 AQUARIUM WAY, LONG BEACH, CA 90802 NEWSWATCH 10 • Long Beach Business Journal • October 22–November 4, 2019

The Holidays And Corporate Gifting: An Opportunity To Build Relationships leave the client with a favorable impression, offers an online business gifting program, she added. which includes small orders of boxes flled Anticipation is a big part of gifting, with four to six pieces of chocolate as well as Couch said. The psychology of a gift recipi- larger-scale purchases. “We offer a little bit ent unwrapping a present by untying the bow of everything for everyone’s taste and bud- or removing layers of paper builds up excite- get,” she said. “I have realtors who gift folks ment, she explained. Simple presents like gift for buying a home or attorneys who give cards or cash are effcient and welcome, but ‘thank you’ gifts for partnerships or clients.” Couch said they are not engaging. One of the catalog’s major sellers is the “If you gave your employee tickets to company logo box. The box is adorned with their favorite team playing, that’s going to a customizable image the purchaser submits speak a lot more to the employee, because to See’s Candies, Freeman said. Buyers have you’re personalizing it,” she said. “Maybe the option of choosing different chocolate you can give a gift card or a cash bonus, but and candy combinations for the gift box, and you can do it in a thoughtful way. You can in-store shipping to locations throughout the do it in a personalized envelope or a baseball United States is also available. card of someone they like. . . . We’re really “Our gift packs are beautiful and big on the presentation, because . . . it really unique,” Freeman said. “They just leave a speaks to the thought and the process of [se- memorable impression. We haven’t ventured lecting] the gift.” off the grid with our recipes or our offerings. The holidays are a time for corporate employers to leave an impression on their clients, according to local gift strategists. When gifting an item, it’s essential to put thought into what that client does Deborah Fay, co-owner of Romance You know what you’re getting, and that is for a living, said Deborah Fay, co-owner of local gift and fower shop Romance Etc. Fay co-owns Etc., echoed this sentiment. Romance Etc. quality.” In lieu of boxes, buyers can use gift the store with her sister, Dawna, who is pictured here with their shop dog Tessa. (Photograph by is a full-service gift and fower shop at 5407 tins, which are reusable, she added. Brandon Richardson) E. Village Rd. that offers foral decorations, Olivier Kielwasser, a wine category lead By DENNY CRISTALES and owner of Long Beach-based Tinsel & jewelry, bath and body products and more. for BevMo’s corporate operations, said the Staff Writer Bow Gifting Services. Fay co-owns the store with her sister Dawna. company offers a variety of custom-made Couch emphasized gift giving as a form When gifting an item, it’s essential to put wooden gift baskets in-store or online. Some As the holiday season starts to rear its of relationship building. As such, gifting the thought into what that client does for a living, of the customization options include pairing festive head, consumers are left wondering right item is essential in showing how much a Fay said. “If someone is a veterinarian, you certain beverages, such as wine or cham- what kind of gifts they will purchase for their business cares for a client or employee. “Gift can pair a holiday-centered candle with a box pagne, with different snacks like crackers, loved ones this year. On a corporate level, giving is about the recipient,” she said. “Tai- of matches that would have cats and dogs on cheese or chocolate. employers can use the holidays as a time to lor things to them as much as possible. . . . It’s the matches,” she said. “That would be indic- “For the holidays, it’s always appropriate show appreciation to clients or employees, important to give something that’s person- ative of what they do. By the same token, if to provide wine,” Kielwasser said. “You very according to Kathryn Couch, gift strategist alized.” Putting thought into these gifts will they had a bicycle shop, you could get a cool often associate the holidays with wine and box of postcards depicting iconic bicycles of champagne. It’s a season that is very festive. our era. That’s a great gift for someone in What’s better than a bottle of champagne, for that type of business.” instance, to celebrate the season and the busi- The idea is to avoid being “generic,” Fay ness that you do with someone?” added. If a personable present isn’t feasible, Thoughtfulness is key, Lisa Albanese, Fay suggested gifting more functional items owner of Cheese Addiction, said. The cheese that have an aesthetic appeal to them. “We shop has two locations citywide at 4236 have handmade pens out of wood and stone,” Atlantic Ave. in Bixby Knolls and 195 Cla- she said. “They’re all made here locally in remont Ave. in Belmont Shore. Cheese Ad- Long Beach. We also have hard cases for diction offers an array of gift baskets flled credit cards, money clips and [many things with cheese, wine or beer or a variety of like that].” Fay said her shop also creates cus- items. Gift baskets or platters can make fne tom items, such as ornaments with a specifc presents, but a great gift needs to be “geared design or logo. more toward the recipient’s lifestyle.” EXHIBITION Before brainstorming gift ideas, Couch One business owner from Wisconsin said it’s important to determine a budget. who visits Cheese Addiction every year has As a general “rule of thumb,” she said busi- a client base in California, she said. “They nesses should spend between 5% to 10% of like to give little bags that have indigenous the net value of what a customer generates. aspects related to California specifcally,” “That’s what we recommend, and obvious- she said. 914-51(#46 ly there are clients that bring you hundreds Another local client that works in es- of thousands of dollars,” Couch said. “And crow held a meet-and-greet with clients and that’s when we suggest spreading that out ordered wine and cheese platters for the oc- throughout the year. Don’t just wait for the casion, Albanese said. She recommended an holidays; gift throughout the year.” assortment of different cheeses that pair well Sending gifts every quarter or season to with various wines. Days later, she heard clients will accomplish two things, Couch from the client that the meeting was a suc- said: the company will constantly be on the cess. It was the thought this business owner client’s mind, and they will also see how put into this gift – an experience with food – much the company cares about them. Gift that made it that much more poignant for the baskets are an example of an easy quarterly clients involved, Albanese said. present, Couch said. However, in the spirit “There are all sorts of fun things that a of being creative, she recommended gifting corporate giver can do,” she said. “Some- *GCXGP 2WTICVQT[ *GNN a series of items that are part of an ongo- thing like cheese and wine or beer and wine ing theme – such as “travel” for one year or is the gift of an experience. You’re creating 3%26)#%3 “health” another year. a culture. You’re sharing a sense of yourself If time is an issue and bulk ordering with people. You took the time to pick up that #USTOM&RAMING items is optimal, companies like See’s Can- bottle or that cheese. It was something that &INE!RT!PPRAISALS dies and BevMo offer different online pack- you felt refects the individual you are giving %STATE,IQUIDATIONS ages exclusively for businesses. it to. And you’re showing how you react emotionally to those pairings.” %AST0ACIFIC#OAST(WY ,ONG"EACH #! !24/&(!.$3 !/,#/- Sherilyn Freeman, See’s Candies’ South Bay sales representative, said the company NEWSWATCH Long Beach Business Journal • October 22–November 4, 2019 • 11

Survey Shows Long Beach Engineers’ Salaries Below Regional Median

In addition to salary increases, the union is hoping to persuade the city to participate in the State Disability Insur- ance (SDI) program, Rodriguez noted. Currently, union members do not pay into the SDI program and do not receive benefts through the state program if they have to take an extended break from work for health reasons, he explained. Instead, employees can purchase disability insurance from an outside vendor. “It’s a lot harder, a lot more expensive and you’re not getting the full umbrella [of] coverage,” Rodriguez said. Under the SDI program, employees would still be responsible for their contributions to the insurance fund and there would be no additional cost to the city, Rodriguez argued. “We’ve [heard] several stories . . . recently of people who were without insurance,” he noted. “We’re really hoping to get that.” Dana Anderson, human resources manager at the city’s human resources department, said she could not comment on the details of the ongoing negotiations. “The city is currently engaged in good faith ne- Data Source: Long Beach Association of Engineering Employees and Long Beach Department of Human Resources Salary Survey, Data Visualization: Alena Maschke gotiations with the Association of Long Beach Engineers and cannot discuss the By ALENA MASCHKE member, said he has noticed that applicant by the harbor department and the airport, specifcs while in active discussions,” An- Senior Writer numbers for some positions included in the should provide room for the salary increas- derson said in an email to the Business survey have been low and that some of his es the union is seeking. Journal. A salary survey recently made public colleagues have left the city after being of- by the Long Beach Association of Engi- fered better pay somewhere else. “I know neering Employees (LBAEE) shows that we’ve had a couple of people leave to other salaries among the city’s engineering staff agencies,” Newkirk said. Still, he noted, he are signifcantly below the median salaries and most of his colleagues are happy to be paid by other agencies in the region. working for the City of Long Beach. “Most The study, which was conducted as a people I work with like their jobs, like do- joint effort by members of the union’s board ing what they’re doing and like their em- of directors and City of Long Beach De- ployer. There’s not a whole lot of friction,” partment of Human Resources staff, found he explained. that some engineering employees received “We understand that you can’t just give up to 16% less than their peers in cities such someone a 16% increase, so it makes sense as Anaheim, Los Angeles or Torrance. The that it would be done over a period of time,” study compared the salaries of employees Rodriguez said. For now, he said the union based on a set of guidelines set forth by the is hoping for a cost-of-living increase com- city, which includes a list of the “Standard parable to those recently approved in sur- 10” cities to consult for comparison. rounding cities, to keep the pay gap from The positions to be compared are also widening. picked according to the city’s guidelines, The consumer price index for the Los to ensure that human resources staff would Angeles-Long Beach-Anaheim metropol- accept the survey’s results into the record itan area increased 3% compared to last of the active contract negotiations, LBAEE year, according to the U.S. Bureau of La- President Jason Edward Rodriguez told the bor Statistics. Firefghters in Los Angeles Business Journal. “The positions them- recently agreed to a 2.5% cost-of-living selves have to match very closely in terms adjustment (COLA) and police offcers in of duties and the entire salary package, so Long Beach received a 4% salary increase, that we’re comparing apples to apples,” Ro- effective October 1, 2019, as part of their driguez said. recent labor agreement with the city. Long The gap in pay between Long Beach Beach frefghters are expecting to see a 3% engineers’ salaries and those of similar pay increase in the frst year of their new employees in surrounding cities has made contract, once it has been approved by the it hard for the city to attract and retain city council. A vote is scheduled for Octo- talent for certain positions, Rodriguez ex- ber 22. plained. Geographic Information System Rodriguez highlighted that a majority (GIS) analysts are the group exhibiting the of union members’ positions are paid for largest gap in pay between Long Beach and through enterprise funds, rather than the comparable cities at a 16.2% difference, city’s General Fund. In a 2019 interview followed by senior surveyors and civil en- with the Long Beach Business Journal, gineering assistants, whose pay is 14.3% outgoing city manager Patrick West high- below the median. lighted the strength of the city’s enterprise Gary Newkirk, a senior surveyor at the funds. Rodriguez argued that the strength Port of Long Beach and LBAEE union of enterprise funds, such as those operated REAL ESTATE & DEVELOPMENT 12 • Long Beach Business Journal • October 22–November 4, 2019 City And Governor Sued Over Renter Protections does nothing but make it more expensive and diffcult to provide housing, but it vio- lates the property rights of affected housing providers. We hope and expect that those constitutional rights will be vindicat- ed in court.” In an email to the Business Journal, Long Beach Deputy City Attorney Richard Anthony said his offce is aware of the suit but has not formally been served with the complaint. “As a result, we have not yet re- viewed it or the claims contained therein,” he added. “We have no comment at this time.” In a July 8 interview with the Busi- ness Journal, City Attorney Charles Parkin said he is confdent the city ordinance is legally sound, noting numerous California cities have passed similar regulations.

New Grocery Store Coming To East Long Beach Demolition of the former Haggen Food & Pharmacy in the Lakewood Plaza Mar- ketplace in East Long Beach is well-un- derway. Located at 6235 E. Spring St., the building is being reduced from 52,000 This 12-unit property at 5558-5562 Dairy Ave. in North Long Beach recently sold for $2.85 million. (Photograph courtesy of Stepp Commercial) square feet to about 40,000 square feet, according to Bruce Patterson, president and By BRANDON RICHARDSON Business Journal, citing expensive rent Amendment to the U.S. Constitution, CEO of Long Beach-based Patterson Con- Senior Writer controlled cities such as Santa Monica, which is applicable to local governments struction, which is handling the demolition New York and San Francisco as examples due to the Fourteenth Amendment, pro- and shell re-construction. City staff have Property owner organization Better that such policies do not work in practice. tects the “right of the people to be secure in confrmed the space, which had also previ- Housing for Long Beach (BHLB) and lo- “We need to fght this overreaching gov- their persons, houses, papers, and effects, ously served as a Lucky’s and Alberton’s, cal property owner Joani Weir have fled ernment movement to take away property against unreasonable . . . seizures.” The is going to reopen as another grocery store a lawsuit against the City of Long Beach rights; it is bad for our city and state.” suit alleges that requiring tenant relocation concept. “We are excited that the landlord and California Gov. Gavin Newsom over The suit contends that both the ordi- payments from owners is akin to forcing is investing in the property,” 5th District rent control and tenant relocation assis- nance and state law violate the takings them to buy back the unit they already Councilmember Stacy Mungo told the tance policies. The suit makes eight claims clauses of the California Constitution and own, and is therefore an illegal seizure Business Journal. “The new grocery store – four against the city’s tenant relocation Fifth Amendment of the U.S. Constitution. of their money. The suit also claims both will be amazing.” Patterson is constructing ordinance and four against Newsom for his The takings clause in the U.S. Constitution regulations infringe upon property own- a new facade, roof and loading dock area, signing of Assembly Bill 1482, which es- states governments are prohibited from ers’ rights under the due process clause of as well as updating the building’s electrical tablished a statewide annual rent increase taking private property unless it is for the Fourteenth Amendment, which states and fre sprinklers. The smaller building cap and other renter protections. City and public use and when “just compensation” regulations of private property are uncon- will allow for a patio area and additional state offcials have stated the ordinance is paid to the owner. A similar clause in stitutional if they do not serve a legitimate parking, Patterson told the Business Jour- and legislation are meant to assist in allevi- the state constitution dictates that private public purpose. nal. A conditional-use permit is pending ating a statewide housing crisis. property can only be taken for public use. “Now, housing providers must make for the sale of alcohol, according to city “Better Housing for Long Beach is The suit alleges that neither the state nor a hefty pay-off to renters – who can use staff. fghting back on these new unconstitu- city regulations meet necessary require- the windfall for any purpose whatsoever tional laws. We think that Gavin Newsom ments, arguing that forced relocation pay- – in order to exercise their right to legal- Commission Recommends Updated Land and Mayor Garcia are acting as if they ments are equivalent to the government ly repossess their units,” Paul Beard, an Use PEIR Approval are above the law and can push any spe- taking money from private citizens for attorney with Alston & Bird representing On March 6, 2018, after more than 10 cial interest agenda that they want without private use. BHLB, said in an email to the Business years and heated public debate, the Long resistance,” Weir said in an email to the The seizure clause of the Fourth Journal. “Not only is that bad policy that Beach City Council voted to confrm the REAL ESTATE & DEVELOPMENT Long Beach Business Journal • October 22–November 4, 2019 • 13

General Plan Land Use Element (LUE) and Urban Design Element (UDE) place- type and height maps, directing city staff to update the Program Environmental Im- pact Report (PEIR). During its October 17, 2019 meeting, the Long Beach Planning Commission voted to recommend the city council certify the PEIR, adopt the LUE and UDE, and repeal the General Plan’s Scenic Routes Element, which the new documents would replace. Following the council’s 2018 vote, the LUE and UDE texts were updated to refect changes requested by the council, “to correct minor errors [such as grammar, typos and for- matting] and to address environmental impacts arising from the environmental review process,” according to a staff report. Implemented changes include policies related to environmental justice and equity, nuisance motels, natural resource protection, and coordinating and consulting with Native American Tribes during the planning process. In all, 13 policy ad- ditions were made.

Loan Approved For Future Affordable Long Beach-based Patterson Construction has demolished a portion of the former Haggen Food & Pharmacy at 6235 E. Spring St. and will begin Housing Development Site renovations to the space, which will reopen as a diferent grocery store concept. (Photograph by Brandon Richardson) During its October 16 meeting, the Long Beach Community Investment Com- for the future development of affordable Century stated that the project design, in- more density. Century has also identifed pany approved a $1.5 million Community housing and amenities for homeless indi- cluding the number of units, would be the several potential funding sources for the Development Block Grant loan to Century viduals and families, according to a staff result of “extensive feedback from city project, including the state’s No Place Like Affordable Development, Inc. for the ac- report. The loan has a 3% interest rate and staff, the North Long Beach community Home, Veterans Housing and Homeless- quisition of 6801 Atlantic Ave. in North a 55-year term. The property is adjacent and other stakeholders.” The developer ness Prevention, and Multi-Family Hous- Long Beach. The 0.92-acre property cur- to the potential future site of a city-owned also noted that any fnancially feasible per- ing programs, as well as project-based rently contains two single-family struc- homeless shelter and services facility at manent supportive housing project would vouchers, tax credits and equity invest- tures, which will be demolished to allow 6845 Atlantic Ave. In its grant application, require rezoning the parcel to allow for (Please Continue to Page 14)

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E S T A B L I S H E D I N 1 9 6 5 . R E I N V E N T E D I N 2 0 1 9 .

1 TSG Wealth Management is associated with Wells Fargo Advisors Financial Network, LLC Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC, members FINRA/SIPC, registered broker-dealers and non-bank affliates of Wells Fargo & Company. REAL ESTATE & DEVELOPMENT 14 • Long Beach Business Journal • October 22–November 4, 2019

Barre Attitude’s frst location. The ftness studio utilizes ballet-inspired moves, positions and exercises to create a total-body workout. “I feel privileged that Barre At- titude’s fagship location will be at Long Beach Exchange and look forward to joining the other successful boutique ftness concepts at LBX,” founder and owner Stephanie Jones stated. Barre Attitude is expected to open in January.

Smaller Industrial Buildings Have Higher Demand, Study Says Warehouses smaller than 120,000 square feet have a higher demand in Southern California despite the growth of e-commerce, according to a new study by CBRE. An analysis of transactions shows that vacancy for light-industrial warehouses measuring from 70,000 to 120,000 square feet declined more than larger spaces – 3.9% over the last fve years – while having the largest growth in average rents – 33.7%. “The bulk of transactions in the Greater L.A. and Southern California region take place in the 100,000 square-foot space and below,” Kurt Strasmann, executive managing director of CBRE’s Orange County and Inland Empire operations and Located at 463 W. 6th St., this eight unit-property recently sold for $1.37 million. (Photograph courtesy of Centennial Advisers) CBRE’s Southern California functional industrial and logistics market leader, stat- (Continued from Page 13) Long Beach Q3 Offce Market Report saw a slight uptick from 19.3% to 19.5% ed. “It’s just the nature of our market and ment. Because the future development is The overall vacancy of offce space in quarter-over-quarter, while the suburban overall vacancy in that segment is a mere dependent on factors out of the control of Long Beach has increased from 15.2% in market vacancy rate increased from 8.9% 1-2%. Generally speaking, light industri- the developer, the request did not specify a the second quarter to 16.8%, according to a to 12%. The increase in the suburban mar- al has performed exceptionally well and timeline for the project. third-quarter report released by Cushman ket is due in large part to the Port of Long typically gets leased up fairly quickly by & Wakefeld. The vacancy in downtown Beach’s relocation to its new downtown a variety of users.” Construction of indus- headquarters from the 176,860-square- trial space since 1990 has not met demand, foot building at 4801 Airport Plaza Dr., the study notes, which has resulted in the which now sits vacant. Large move-outs by low vacancy rate and high rents for small- Epson America and Molina Healthcare in er buildings. Construction completion the suburban market are expected to fur- of light-industrial facilities smaller than ther increase offce vacancy in the South 120,000 square feet have averaged 1% of Bay, according to the report. Overall ask- overall stock since 1990, whereas facilities ing rents for all classes were fat, increas- larger than 250,000 square feet have aver- ing only one cent from the second quar- aged 3% of the overall stock. ter to $2.34 per square foot. Rents in the suburban market increased from $2.38 per City Of Carson To Build square foot to $2.43 per square foot quar- Inclusive Playground ter-over-quarter, while the downtown mar- Earlier this month, the City of Carson ket decreased two cents to $2.39 per square broke ground on its frst playground de- foot. Signifcant leases during the third signed for children of varying abilities. Ap- quarter included a new 46,593-square-foot proved by the Carson City Council on July lease by the State of California Department 2, the design provides stimulating struc- of Industrial Relations at 1500 Hughes tures that appeal to children with varying Way, a 18,601-square-foot lease renewal by physical, cognitive and social-emotional Advanced Medical Management at 5000 abilities. “I hope that this project will en- Airport Plaza Dr. and a 15,714-square-foot courage all children, regardless of their lease by Midnite Air Corp at 5001 Airport abilities, to spend quality time at this park Plaza Dr. as the equipment is designed to unite children of all abilities,” Carson Mayor Albert New Tenants Announced At LBX Robles stated. “The city does not present- Barre Attitude and European Wax ly have a playground with equipment that Center are the latest tenants announced children with differing disabilities can ac- for the Long Beach Exchange (LBX) re- cess and enjoy.” The $1.25 million project tail center, with both expected to open in is being funded by a grant from Marathon early 2020. “With just three months left in Petroleum Corporation. The playground, 2019, our team is looking forward to 2020, which will include swings and ground lev- which is already promising to be an excit- el play structures, is expected to be coming [year] at Long Beach Exchange,” Steve pleted by April 2020. Thorp, partner at Burnham-Ward Proper- ties, stated. “We are honored to have the Recent Transactions By Local Firms opportunity to bring the Long Beach com- The following is a list of recent trans- munity the all-new ftness brand – Barre actions by the teams at Centennial Advis- Attitude – in addition to European Wax ers, Coldwell Banker Commercial BLAIR Center’s top-notch service.” First opening WESTMAC, Marcus & Millichap and in 2004, European Wax now has 892 loca- Stepp Commercial: tions nationwide. The LBX studio will be • Ryan Rayburn, senior adviser with REAL ESTATE & DEVELOPMENT Long Beach Business Journal • October 22–November 4, 2019 • 15

Centennial Advisers, represented the seller in the $1.37 million sale of an eight-unit property at 463 W. 6th St. The building consists of six studio apartments and two one-bedroom units. Five offers were made on the property, with the fnal sales price being $25,000 over asking. The seller is donating a portion of the proceeds to California State University, Long Beach, through a Charitable Remainder Trust. • Linda Treffry, an associate with BLAIR WESTMAC, represented the buyer and seller, both private investors, in the $1.8 million sale of a medical offce located at 1066 Atlantic Ave. According to Treffry, the new owner has plans to fully remodel the more than 7,000-square-foot building, which is across the street from Dignity Health St. Mary Medical Center. • Steve “Bogie” Bogoyevac, founder of Marcus & Millichap’s Bogie Investment Group, represented the seller in the more than $4.5 million sale of a 21-unit apart- ment building at 1505 E. 11th St. Built in 1946, the property consists of three studio apartments, six one-bedroom units, 12 Stepp and Vice President Mark Witsken at 5558-5562 Dairy Ave. Stepp Commer- consists of all studio apartments. two-bedroom units, garage parking and represented the seller, LMDG Real Estate cial’s Travis Traweek represented the buy- • Stepp and Traweek represented the on-site laundry. Value Fund II Holdings, in the more than er, Los Angeles-based LB View, Inc. The seller, a private investor out of Los An- • Bogie represented the buyer in the $3 million sale of an eight-unit property two-building property was built in 1961 geles, in the more than $2 million sale of $3.1 million purchase of a nine-unit build- at 315 Cherry Ave. in the Alamitos Beach and consists of four one-bedroom units a 10-unit property located at 1871 Chest- ing at 125 Cherry Ave. in the Alamitos neighborhood. Built in 1923, the prop- and eight two-bedroom units. nut Ave. in the Wrigley neighborhood. Beach neighborhood. The 1948 build- erty consists of two studio units and six • Stepp and Witsken represented the The buyer of the 1964 building was also ing includes two studio apartments, six one-bedroom units. seller, LMDG, in the $2.1 million sale of a Los Angeles-based private investor. one-bedroom units and one two-bedroom • Stepp represented the seller, a San an 8-unit property at 1010 E. 2nd St. in The two-story property consists of eight unit. Diego-based investment group, in the the Alamitos Beach neighborhood. The one-bedroom units, two two-bedroom • Stepp Commercial Principal Robert $2.85 million sale of a 12-unit property two-story property was built in 1923 and units and six garages.

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REAL ESTATE & DEVELOPMENT 16 • Long Beach Business Journal • October 22–November 4, 2019 Building A Better Long Beach: The Final Piece Of The Douglas Park Puzzle Turelk’s corporate headquarters, re- Long Beach Unified School District. placing its current Long Beach office Projects range from maintenance to at 3700 Santa Fe Ave. just off the 405 new building construction, such as an Freeway. Turelk plans to move its 65 upcoming $40 million project at May- Long Beach employees into the new fair High School in Lakewood. building by the end of the year, Vice Aside from purchasing and devel- President Marcos Ramirez told the oping its own projects, 2H does main- Business Journal. The company’s Santa tenance work for private companies Fe Avenue office consists of approxi- and property owners, such as CBRE mately 13,000 square feet of office and and Continental Development Corpora- 3,000 square feet of warehouse space. tion. 2H also does work for hospitals, Turelk is dedicating approximately including MemorialCare Long Beach 8,000 square feet of its new building to Medical Center. Though the company serve as warehouse space. has worked as far as San Diego, Ven- According to Hitchcock, 2H com- tura and Riverside counties, Hitchcock pletes around 300 projects per year said he is always looking for more op- ranging from small tenant improve- portunities in the Long Beach-Signal ments to ground-up building construc- Hill area. tion, such as its Douglas Park projects. “It’s so diversified – socioeconomi- The company focuses its work mostly cally, the people, the actual land itself. 2H Construction plans to complete the new corporate headquarters for Turelk, a Long Beach-based on office and light industrial spac- It’s a great mix that not all other cities tenant improvement contractor, before the end of the year, according to 2H President and CEO Sean es, which occasionally includes retail have,” Hitchcock said. “I’m a longtime Hitchcock, who is pictured at the site. Located at 3815 Bayer Ave., the project is the fnal development in the 261-acre Douglas Park commercial center. (Photograph by Brandon Richardson) components. local community person with kids that The company’s work is split nearly grew up here and went to elementary By BRANDON RICHARDSON 2H broke ground on the $5 million, 50-50 between the public and private and high school and college here, and I Senior Writer 22,000-square-foot office and ware- sectors. Public clients include numer- went to college here. Most of the people house space in January of this year. ous California State University and in my office live here. [We’re] bound to For nearly a decade, development Unusually heavy rains delayed the University of California schools, as the community.” has been ongoing at Douglas Park, a project about three months, Hitchcock well as K-12 districts, including the 261-acre commercial park consisting noted. The building was pre-leased of light industrial buildings, offices, for 10 years in early 2018 by Turelk, a hotels and retail. The bulk of devel- Long Beach-based tenant improvement opment was completed by Sares-Regis contractor with 138 employees spread Group, which sold off some small par- among three offices, including in Los NOW AVAILABLE FOR PURCHASE cels to other developers. Signal Hill- Angeles and Newport Beach. Lee & $12 (Incl. tax & shipping) based 2H Construction completed a Associates Principal Jeff Coburn bro- at lbbusinessjournal.com 36,000-square-foot building at 3849 kered the lease. 2H is scheduled to com- McGowen St. in late 2017 and, on De- plete the shell and core of the building cember 1, will complete construction by December 1, at which point Turelk on its second Douglas Park project at will complete its own interior build out. 3815 Bayer Ave. “This is the last development in this “[Douglas Park] was a great de- park, and I wish there was more because velopment to re-energize the city,” 2H I would keep doing it. This complex is President and CEO Sean Hitchcock amazing,” Hitchcock said. “[We pur- said, noting that inner-city areas don’t chased the parcel] three years ago. We often have large parcels of developable didn’t hold off – right from purchasing land become available. “It gave [devel- the property, we started planning and opers] the opportunity to . . . create a developing. It just takes that long to get brand new vibe – places to work and through the entitlement process.” distribution centers and food places.” The new building will serve as

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© 2019 Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Afliates. All rights reserved. Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial afliates fully supports the principles of the equal opportunity act. Each ofce is independently owned and operated. Coldwell Banker Commercial and the Coldwell Banker Commercial logo are registered service marks owned by Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial afliates. All information is deemed reliable but not guaranteed. Corporate BRE #01330395 REAL ESTATE & DEVELOPMENT Long Beach Business Journal • October 22–November 4, 2019 • 17 Realty Views: Finally, Some Good News for Housing

Perspective by TERRY ROSS Home Price Perception Index (HPPI), ers are validating the stronger values Chief Economist Odeta Kushi. which measures the difference be- and owners and sellers are not over-in- The unemployment rate fell to a Despite a year full of sketchy, tween what owners believe a property flating their opinions on the value of five-decade low, with the economy downbeat news and predictions about is worth and what trained appraisers their properties. gaining 136,000 jobs in September where the housing market is headed, give as their opinion of value. In Au- Homeowners in Boston and Char- and wage growth up 3.5%, spelling an the fourth quarter is starting with some gust, appraisals averaged 0.64% less lotte appeared to underestimate their increase in consumer spending. “The surprising statistical news: The doom than what owners expected, while in home’s value the most, with appraisals housing market, by many metrics, had and gloom predicted for 2019 and 2020 September the difference was only 1.71% and 1.61% higher, respectively, one of its best months in August 2019, might have been a bit overblown. 0.49%, indicating that owners and buy- than the owner’s estimate. On the oth- as it was buoyed by lower mortgage Even though agents and sellers ers have more optimism in how strong er end, Chicago owners overestimated rates, favorable demographics and the might feel that the market was not as home values are. their home’s value the most: by 1.67%. continued growth in wages, which con- strong this year as it was in 2018, there “The HPPI is a reminder to have “The clear news from the HPPI tributes to higher household income appears to be some renewed interest on a good grasp on your area’s unique data is that homebuyer interest is not and stronger purchasing power,” Kushi the part of buyers in the fall season, a housing market before you start the falling with the leaves,” Banfield add- told The Mortgage Leader. time of year when sales usually start to mortgage process, for either a home ed. “Despite the start of the school Another positive indicator is the trail off after the summer selling sea- purchase or a refinance,” executive year, and the introduction of cooler prime-age labor force’s (25 to 54-year- son. vice president of capital markets for temperatures in parts of the country, olds) participation rate, which contin- Mortgage rates have drifted lower Quicken Loans, Bill Banfield, noted home shoppers are still active. Buyer ues to climb and was up 0.8 percent- over the past few months, helping the in HousingWire, a website dedicat- interest, combined with persistently age points compared to a year ago. affordability factor, and buyers are ed to mortgage and housing market low home inventory, continues to pump Although not back to 2007 levels, this aware that the window for these low news. “Underestimating your home up home values. With August’s jump in statistic must continue to rise for wage rates might not last long if the econo- value could, understandably, feel like homebuilding, at its highest level in 12 growth to continue to grow. my picks up steam. a windfall. But if a homeowner overes- years, there could be some hope on the If these trends continue, then the Quicken Home Loans’ Home Val- timates their home value, the mortgage horizon for home shoppers who haven’t predicted housing slump may end up ue Index for the average appraisal was could need to be reworked when refi- been able to find a home that there is a being just a minor bump in the road. 2.15% higher in September than in Au- nancing – possibly even requiring the perfect fit at the right price.” Terry Ross, the broker-owner of gust – the largest monthly jump in five buyer to bring more cash to the closing Another piece of good news for TR Properties, will answer any ques- years. The year-over-year annual in- table,” he stated. housing was the September jobs report, tions about today’s real estate market. crease for the month of September was Another surprising statistic is that which showed that jobs and consumer E-mail questions to Realty Views at 6.52% – two percentage points higher in 55% of the metropolitan areas stud- buying power should aid in a strong [email protected] or call (949) 457- than the annual growth rate in August. ied, the average appraisal was higher housing market moving forward, ac- 4922. Quicken also publishes its National than had been anticipated – so apprais- cording to First American Deputy

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© 2019 Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Afliates. All Rights Reserved. Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Afliates fully DRE. 01359006 supports the principles of the Equal Opportunity Act. Each Ofce is Independently Owned and Operated. Coldwell Banker Commercial and the Coldwell Banker Commercial Logo are registered service marks owned by Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Afliates. All information contained herein is from sources deemed reliable and is submitted without any warranty or representation, express or implied, as to its accuracy or completeness. We assume no liability for errors or omissions of any kind. Corporate BRE #01330395 This information contained herein was obtained from third parties and has not been independently verified By real estate brokers. Buyers and tenants should have experts of their choice inspect the property and verify all Information. Real Estate Brokers are not qualified to Call For Details |(562) 495-6070 |CBCBlair.com act as or select experts with respect to legal, tax environmental, building construction, soil drainage or other such matters. ENERGY 18 • Long Beach Business Journal • October 22–November 4, 2019 Oil And Gas Industry Leans On Technology And Diversity To Prepare For The Future By ALENA MASCHKE of all Californians identify as Hispanic Senior Writer or Latino, 36% identify as White alone (not including those who also identify California’s oil and gas industry re- as Hispanic or Latino), 15.3% as Asian mains a signifcant economic driver in and 6.5% as Black, according to the the state. According to a recent report U.S. Census Bureau’s 2018 population by the Los Angeles Economic Develop- estimates. ment Corporation (LAEDC), the indus- The industry also boasts a diversi- try employed 152,000 Californians in ty of educational backgrounds. While 2017. The report, which was commis- over a third of workers hold at least a sioned by the Western States Petroleum bachelor’s degree, that group is closely Association (WSPA), states that the in- followed by those who have completed dustry supported an additional 213,860 associate’s degrees or some level of col- auxiliary jobs that same year. lege. A ffth of all workers in the indus- “We think it is very important for try listed a high school degree as their our industry to provide high-wage op- highest level of education, while 11% portunities to all individuals and com- said they did not complete a high school munities across a wide range of skills education. and education,” WSPA President Cath- “We are committed to helping erine Reheis-Boyd told the Business our state and its diverse communities Journal. Reheis-Boyd said she was par- achieve and sustain a vibrant and in- ticularly proud of the strides the indus- clusive future for generations to come,” try has made in achieving racial and William Gillespie, coastal assets op- ethnic diversity. erations manager at the California Re- According to the report, 28% of em- sources Corporation (CRC), told the ployees across the industry identifed as Business Journal. CRC is a publicly Hispanic or Latino, 10.8% as Asian, 6% traded oil and natural gas exploration as Black, with the remaining 52% iden- and production company, and is the tifying as White. For comparison, 39% largest oil and natural gas producer in

Signal Hill Petroleum (SHP) employees work on an oil derrick at the company’s West Unit Plant. Unlike other fossil fuel companies, SHP primarily operates production sites located in densely populated, urban areas. “Virtually everything we do is in the public eye,” Vice President and COO David Slater said. (Photograph by Brandon Richardson)

California. “[The industry’s] high-qual- Slater said. In turn, new technologies ity jobs provide economic mobility and have allowed his company to keep pro- a path to the middle class.” duction steady and become increasingly The WSPA/LAEDC report estimat- energy effcient. ed that the industry generated $12.1 bil- SHP was the frst company in the lion in direct labor income in 2017, re- Los Angeles Basin to use seismic im- sulting in an average salary of $79,335 aging technology, combing through per worker, based on employment data current and historic data in search of provided in the report. undiscovered oil production sites. The For new recruits, the oil and gas in- company also uses a technique called dustry provides opportunities for life- secondary recovery – commonly re- long careers with competitive salaries, ferred to as waterfooding – to retrieve Signal Hill Petroleum (SHP) Executive residual oil reserves. Following the pri- Vice President and Chief Operating mary recovery of oil through traditional Offcer David Slater pointed out. “Our wells, this technique involves pump- industry creates jobs where dedicated ing saltwater into the reservoir, which young people can come to work, with washes out residual oil reserves. “Oil or without a college degree, and fnd a and gas reservoirs have a natural de- place where they can grow on the job,” cline in their production rates,” Slater Slater said. explained. However, Slater stated “we As in many industries, those in the have been able to keep production from oil and gas workforce have to adapt to this feld fat for over 20 years.” new technologies on a regular basis. The saltwater used for secondary “It’s been interesting and fun to watch recovery is fully recycled and used for how our industry and the people [who] future waterfooding cycles, Slater ex- work in it have embraced technology,” (Please Continue to Page 20) T:10.5 in

TOGETHER WE POWER T:14.5 in LONG BEACH As California’s largest oil and natural gas producer, California Resources Corporation (CRC)

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CLIENT: CRC HEAD: TOGETHER WE POWER PUB: LONG BEACH BUSINESS JOURNAL_ INDUSTRY TRIM: 10.5” X 14.5” LIVE: 10” X 14” BLEED: 11” X 15” COLORS: CMYK CLOSE: 10/16/19 REVS: 1 ENERGY 20 • Long Beach Business Journal • October 22–November 4, 2019

(Continued from Page 18) around,” she pointed out. “Even though plained. Additionally, the company’s it’s very exciting that the electric vehi- operations are powered in part by natu- cle market has certainly increased and ral gas produced on site. “We generate a continues to increase, it’s at 600,000 signifcant amount of the electricity we [vehicles], so we [have] a long way to need,” Slater said. go.” Gillespie noted that CRC has al- Slater said eventually it will be con- ready achieved some success in working sumers’ responsibility to decide the toward its 2030 sustainability goals on future of fossil fuels in the state. “If emissions, water recycling and the in- nobody bought gasoline in California, tegration of renewable energy sources. we’d be out of business really quickly,” Alongside other achievements, Gilles- he said. But Reheis-Boyd observed that pie said the company has been able to public policy and urban design also play reduce its methane emissions by 60% a role, especially when it comes to mov- since 2013. ing millions of Californians across the Energy companies big and small state’s rural plains and urban sprawl. have taken steps to reduce their reliance “[We] really have to talk about different on outside power, make their operations modes of transportation than the tradi- more effcient and incorporate renew- tional California dream of everybody able energy, Reheis-Boyd noted, point- owning a car,” she explained. ing to the solar and thermal power plant Aside from concerns over green- at the Belridge oil feld as an example. house gas emissions’ climate changing Signal Hill Petroleum employs 110 workers and produces 1.1 million barrels of oil per year, ac- The plant, which is currently being built effects, the L.A. Basin is also impact- cording to Slater . (Photograph by Brandon Richardson) on a 770-acre site near Bakersfeld, will ed by the detrimental effect car emis- be used to power Aera Energy’s local oil sions have on local air quality. Ongoing ing a virtually leak-free system.” While be had to ensure that California’s ef- operations and – once completed – will efforts to reduce car emissions in the some of the equipment standards, mon- forts to reduce emissions and create a be the largest solar feld in California, state have made a signifcant difference itoring and reporting requirements set sustainable energy mix for the future according to its developer, Glasspoint. when it comes to air quality, Slater said, forward by state agencies can be la- reach their full potential, while main- “That’s an exciting step in the right di- and he welcomes the state’s efforts to bor-intensive and costly to implement, taining the economic gains of oil and rection,” Reheis-Boyd said. achieve similar goals in the energy pro- Slater said he approves of the state’s gas production in the state. “Our state While the industry has begun to em- duction sector. regulatory environment overall. “We government and the federal government brace renewable energy to power part “Attacking automotive emissions view the regulatory environment as re- are diametrically opposed on fossil fu- of its operations, Reheis-Boyd said that back in the 1980s made a huge differ- ally necessary for our society, so that els,” Slater pointed out. “Directing our fossil fuels will still have a place in Cal- ence in air quality in L.A., and now we keep everybody above a reasonable efforts at national and international ifornia for many years to come. “Cali- regulators are looking more at smaller bar,” he explained. solutions is really our hope. That the fornia still has 26 million combustion potential sources,” Slater said. “That’s Both Reheis-Boyd and Slater said effort [focuses] in that direction, where engines to move [39] million people assisted us in understanding and operat- there were still many conversations to we can really make a difference.” PREMIERE TURNKEY SERVICE PROVIDER FOR REFINERIES THROUGHOUT THE UNITED STATES

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marine life and reduce emissions by curbing Energy Transition the use of natural gas power in the state, say (Continued from Page 1) shutting down natural gas plants may endan- focused on fossil fuel for energy production ger the state’s energy transition. have expanded their portfolio of renewable “Storage technology has not matured at production sites. “What we do are clean ener- [a large enough] scale to be able to store so- gy jobs,” Reheis-Boyd noted, pointing toward lar for the times that we need it, because as BP’s wind operations spanning 11 sites in 10 we know, the sun doesn’t shine all the time states as an example. “These are energy com- and the wind doesn’t blow all the time,” Re- panies and they are looking toward what their heis-Boyd explained. “So natural gas was al- future will look like and what [their energy] ways the backup.” mix will look like,” Reheis-Boyd said. This concern was echoed by the Califor- The Brookings Institute’s report also nia Independent Systems Operator (CAISO). noted that future studies on the employment In July 2019, CAISO submitted a letter to impact of the energy transition must consider the California Public Utilities Commission the transition taking place within the work- (CPUC), expressing concerns that California force of traditional energy producers. “Con- could face power shortages if gas plants were sidering that many of today’s industries that taken off the grid by the 2020 deadline. On contribute to dirtier activities will become September 12, the CPUC proposed a pro- central to tomorrow’s clean energy economy, curement process for 2.5-gigawatt in addi- defning clean energy economy occupations tional power production resources across the means looking much wider than just the new- state to ensure grid reliability, which could in- est green occupations,” the report stated. The clude both an expansion of renewable power natural gas, petroleum and fossil fuel industry production capacities and an extension of the currently employs over 888,000 Americans, operations at coastal gas facilities until 2023. according to the 2019 U.S. Energy and Em- “This gap is real and it needs to be ad- ployment Report published by the National dressed from a reliability standpoint,” Wirta Association of State Energy Offcials and the said. “It’s just a matter of time before battery Energy Futures Initiative. storage gets off the ground [and] catches up with the real generation demand, and that’s Cost when California will really have achieved its Save Money The cost of the energy transition toward goals.” In 2017, natural gas made up 33% of a higher percentage of renewable energy and the state’s electricity mix, according to the – potentially – an energy mix completely free California Energy Commission. of fossil fuels, can be measured at an individ- The Union of Concerned Scientists, a This Winter! ual company level and as a change in tax rev- nonproft science advocacy organization, enues collected by the local, state and federal agreed that the state will have to rely on some governments. level of natural gas power production until at The oil and gas industry in California least 2030 to ensure energy reliability as re- generated a total of $21.5 billion in taxes in newable energy production processes mature. 2017, according to a report commissioned by “But for California to realize the benefts of WSPA and published by the Los Angeles Eco- its clean energy transition and achieve its Dial it Down! nomic Development Corporation (LAEDC). global warming emissions targets, it needs to A majority of the total tax revenue generat- reduce its dependence on natural gas electric- ed by the industry came from sales, property ity generation signifcantly,” a 2018 release and income tax, according to the report. The by the organization stated. “This transition potential tax revenue from renewable energy should prioritize reducing natural gas genera- What to Expect production remains to be explored as wind tion in communities most negatively affected During colder months, your household’s gas farms, biomass plants and solar felds con- by the pollution resulting from burning fossil tinue to grow across the country. Currently, fuels and by the social, economic and health usage may increase and this can impact the State of California offers a large number burdens associated with global warming.” your bill. of grant programs and tax incentives to en- Experts from both the renewable and fos- courage residents and businesses to make the sil fuel sectors have described the state’s goals Why? switch toward renewable energy sources and for phasing out fossil fuels as ambitious. “You become more energy effcient. have to give the State of California credit for Households tend to use more natural gas for The technology available for fossil-free really pushing the envelope,” Wirta noted. home heating and for water heating. energy production is still signifcantly more “The goals are realistic; the timeline was a expensive than traditional oil and gas produc- little optimistic.” Increased demand for natural gas can lead to tion, according to Weikko Wirta, operations Among U.S. consumers, the adoption of higher commodity prices locally. and maintenance manager at AES Southland. renewable technologies, for example to power The company, which operates natural gas personal vehicles, still lags behind adoption Quick Tips to Lower Your Gas Bill plants in Alamitos, Huntington Beach and levels in other parts of the world, Roche said. Redondo Beach, also runs a wind park near “Historically, gasoline has always been very • Limit your hot showers to less than 5 minutes Palm Springs. “Despite the fact that solar, inexpensive, so the auto manufacturers – un- • Wash your clothes in cold water wind and battery energy storage costs have til recently – have not really been pushing al- come down dramatically, they still continue ternatives to gasoline cars,” he explained. “I • Turn your thermostat down to 68 or lower to be prohibitive,” Wirta said. don’t know if the auto manufacturers would • Open the drapes on sunny California days be willing to make the investment to bring Timeline And Feasibility [alternatively-fueled] consumer vehicles to AES is currently in the process of bring- market here like they have in Europe, South ing its South Bay gas operations into com- America and elsewhere.” pliance with new standards set forth by the Until then, Reheis-Boyd argued, Cali- state government. In 2010, the State Water fornia shouldn’t count out its local fossil fuel longbeach.gov/energyresources/ Resources Control Board kicked off the pro- production just yet. “If you don’t produce it cess of phasing out the use of seawater for in California, under the strictest regulations – the cooling of natural gas plants by the end because California has them – and the very @LBenergyresources of 2020. Several aging coastal gas plants are well-paying jobs that go with it, you still have expected to shut down by that deadline. Crit- to import it,” she noted. “California loses in ics of the regulation, which seeks to protect that equation.” ENERGY WESTSIDE INDUSTRIAL AREA Long Beach Business Journal • October 22–November 4, 2019 • 23

vide the business owners with a clean What Westsiders Want and safe neighborhood to create value (Continued from Page 1) for the city and its residents. Business industrial area of Long Beach to gath- owners on the Westside are working to- er their thoughts on what they would gether to revitalize the Westside Project like to see in their new councilmember. Area Council (PAC), and we welcome Six responded to the query. Although our new councilmember to be an active responses varied, nearly all business participant. owners emphasized the need to address a pervasive homelessness issue in the German Ibarra, President, Snugtop, area. Visual blight and employee safety 1711 Harbor Ave. are also paramount concerns. 2019 has become the year that West- One Westside business owner ex- side Long Beach experienced a dramat- pressed concern about the Port of Long ic increase in homelessness and drug Beach’s Pier B On-Dock Rail Support abuse. This is greatly due to the change Facility project, which is intended to in law that now makes it illegal to re- expand and enhance the existing Pier B side along the riverbed. This change has rail facility that currently borders Ana- forced so many homeless individuals One business resident said Westside Long Beach is a core economic driver for the city, with indus- heim Street and the 710 Freeway. Some to relocate to neighborhoods, such as tries such as manufacturing providing key services to the region. However, some business owners businesses in Westside Long Beach are those surrounding Snugtop. The own- feel there is little support from city representatives, and they hope the next 1st District Long Beach in the direct path of the Pier B On-Dock ers of these motorhomes understand councilmember will make the Westside more of a priority. (Photograph by Brandon Richardson) Rail Support Facility project and may that they simply need to move their ve- have to relocate. Other business owners hicles every 72 hours at a minimum of looking for from the new councilmem- the attention it deserves. I’d love to see desire a councilmember that will listen fve feet in order to be in compliance. ber is honesty, integrity and support of a more considerable effort from the to community feedback and frequently They dump all of their trash just outside the Westside business community. Long councilmember to keep our streets free meet with Westside residents and busi- their vehicles, and when they move their has Westside Long Beach been ignored of trash and graffti, removal of recre- ness owners. vehicles, they leave their trash behind. by the mayor and council. During the ational vehicle dwelling and homeless Some of these establishments, many They dump their bodily fuids (human approval process for the Pier B On-Dock encampments and an increase of as- of which offer services in disciplines waste) on the street. We have seen them Rail Project, which will certainly bring signed police patrols to our area. The like manufacturing and woodworking, carrying gallons of this and disposing noise and pollution to the Westside, we neighborhood can often look uninvit- have been staples of the Westside in- of them near street corners. This poses certainly did not receive support from ing, which makes it tough for business dustrial area for decades. Although dis- a severe hygienic and safety hazard for our councilmember. Business owners owners to attract customers. In years tinct in their business offerings and pri- all of our employees. The reality is that on the Westside – more than 300 – were past, the Westside business community orities, all six business owners shared Snugtop isn’t in one of the safest loca- lied to and betrayed. There was no hon- has been a thriving district with much a desire to improve the Westside. The tions in Long Beach. There are some esty and certainly no support from our pride. It would be great if we could in- following responses outline the issues days we can see as many as six or seven councilmember. The Westside needs spire that again! these business owners believe the new vehicles parked in front of our facility help with the homeless situation, the 1st District councilmember must priori- and as many as 13 in the frst two blocks marijuana industry, street maintenance Mike Zupanovich, President, Harbor tize for the Westside of Long Beach. from Pacifc Coast Highway. This and monitoring of traffc on Anaheim Diesel Industries, 537 W. Anaheim St. doesn’t leave much room for our near- Street and Pacifc Coast Highway. I As a property and business owner on Matt Cullen, Owner and President, ly 200 employees making our employ- would like to see a councilmember that the Westside in the Magnolia Industrial Amber Resources, 1543 W. 16th St. ee parking even worse than it already visits the Westside more than once or Group area since 1976, I have been part As a longtime Westside business res- is. Employees report that it takes them twice a year and pays attention to us as of one of the, if not the most, neglected ident and major employer in the City of more than 30 minutes to fnd parking much as they do to the downtown area. areas in the City of Long Beach. The Long Beach, we are looking for a coun- and are forced to park blocks away from We generate a lot of tax dollars on this quality of life in the area is very poor cilmember that will serve as an advocate Snugtop. Tuesday and Wednesdays are side of Long Beach. Visit us sometimes for residents, businesses, employees and for our area. The Westside is a core eco- the worst because that is when street and attend a few WestPAC meetings. Be property owners. The area is inhabited nomic engine for the city, yet employers sweeping is scheduled. By parking so honest, be sincere and have a genuine daily by homeless criminal, drug-addict- in the district receive little support or far away, employees are unable to keep interest in the Westside. ed and mentally ill vagrants that bring basic city services. A quick trip around a close eye on their vehicles to try to blight, theft, health and safety issues to our neighborhood provides you with an discourage vehicle thefts and vandal- Tania Lopez, Co-owner, RTL Woodwork, all of us Westsiders. I want to be clear: example of what I have described. [We ism. 1660 Hayes Ave. our problem is [not with] homeless in- have] numerous broken-down motor- They must have a passion for the dividuals looking for a helping hand to homes parked with trash surrounding Stan Janocha, Chief Operations Officer, City of Long Beach! He or she must get back on their feet and contribute to them, [and] our streets and alleys are Superior Electrical Advertising, 1700 want to build upon those things that society, for whom I support doing what littered with garbage. We need some- W. Anaheim St. make Long Beach a great city to live we can to give them the help they need. one who will demand action and pro- The most important things I am and work [and] know the great quality The next councilmember needs to work the city possesses. In addition to having for 1st District residents and businesses courage to ask diffcult questions and alike and not focus only on social is- able to hear responses that they do not sues to attract more business and create necessarily agree with, [they must have more jobs. [We need to] give the Long the] ability to listen to the community. Beach Police Department what they [That’s] what is most important. Despite need to enforce the law and remove the being a great city, there are business . . . vagrants from the Westside. There owners who feel like they aren’t being are streets deteriorated beyond repair heard, and the candidate needs to hear all over the Westside [that] need to be the comments and complaints of the replaced. [We can] reach out to the Port business owners. They [must have the] of Long Beach for help to subsidize new nerve to make decisions with the city’s infrastructure in the industrial area. A best interest in mind. Sometimes the signifcant amount of businesses are do- best decisions are not the most popular. ing business in the port, and the heavy truck traffc has, and is, contributing Shawnte Marquez, Owner, Joyful Paws to the deterioration of our streets. [We Pet Hotel & Daycare, 1701 Fashion Ave. need more police] patrol on the West- The Westside district creates the side regularly, especially in the indus- Ahead of the election, the Business Journal reached out to business owners in the Westside indus- most signifcant revenue stream, [more] trial areas. Streets, alleys and sidewalks trial area of Long Beach to gather their thoughts on what they would like to see in their new coun- than any other region in Long Beach, need to be cleaned up promptly for ev- cilmember. Although responses varied, nearly all business owners emphasized the need to address yet our neighborhood doesn’t receive eryone’s health and safety. a pervasive homelessness issue in the area. (Photograph by Brandon Richardson) WESTSIDE INDUSTRIAL AREA 24 • Long Beach Business Journal • October 22–November 4, 2019

Homelessness And Infrastructure Top Westside Business Concerns

have to enroll in a program,” he said. Pearson said he has discussed this strategy with some Westside business owners. Collins mentioned a similar approach. Tamery McCrabb, president of Cow- elco Steel Contractors at 1634 W. 14th St., said the RV presence has gradually become worse. Her business’s proximi- ty to an alley also poses a safety threat, she said. “We are constantly getting vagrants, like people doing drugs [and] using needles,” McCrabb said. “I mean, it’s not safe for homeless people to be out there. And it’s not safe for my employees either when they’re stepping over needles and sewage. We have a lot of human waste that’s been dumped in the corner here.” Janie Cozine has been a LBPD patrol resources offcer with the West Division since May. Collins and McCrabb both praised Cozine for her work in referring homeless individuals to the Long Beach Multi-Service Center, a public health department service located 1301 W. 12th St. that offers resources to homeless individuals. “My role as a resource offcer is to help provide resources for subjects that are experiencing homelessness and The Westside Project Area Committee (Westside PAC), which consists of hundreds of Westside business owners, convenes monthly to address a direct them to some help,” she said. variety of issues plaguing the area. Recently, a subcommittee was formed to focus on the area’s longstanding homeless problem. Pictured, from left: The Multi-Service Center collab- Daryl Phillips, owner and president of Phillips Steel Co.; Paul Collins, president of the Westside PAC and owner of PAC Design; and Lawrence Maeha- orates with the LBPD to provide these ra, vice president of the Westside PAC and owner of Berth 55. (Photograph by Brandon Richardson) services, according to Shannon Parker, By DENNY CRISTALES nian, deputy manager of public works. fx it.” the City of Long Beach homeless ser- Staff Writer Melkonian said he witnessed illegally In spite of Collins’ and Phillips’ vices offcer. “The police are very well dumped items, as well as many parked praise of the LBPD’s efforts, some trained to offer resources,” she said. The Westside has long been plagued recreational vehicles (RVs) and home- business owners aren’t seeing much of Parker said the police have been with issues related to homelessness and less encampments. The Long Beach a change. Joe Pearson, president of Hi proactive in approaching RVs that are deteriorating infrastructure, according Clean Team, a public works program Standard Manufacturing & Engineering unlicensed and illegally parked, but the to area business owners. Homeless issues focused on removing litter and debris at 1510 W. Cowles St., called the infux challenge in doing that begins with prop- are creating health and safety concerns throughout the city, has assisted in ad- of RVs “absolutely ridiculous.” Vandal- erly identifying these vehicles as home- among business owners, while other dressing some of the Westside blight, ism is also a major problem with West- less dwellings. “It’s a subjective choice,” chronic problems include infrastructure Melkonian said. The Long Beach Public side businesses, he said. “I mean, my she said. “We have to distinguish all the issues related to degrading streets, storm Works Department’s stormwater/envi- building just got tagged [recently],” he time between what it is illegal activity drainage and a lack of fber optics. ronmental compliance division, which noted. and what is being homeless. In situations Daryl Phillips, owner and president works to address citywide stormwater, Pearson proposed setting aside a where the RV is not operable or the li- of Phillips Steel Co. at 1368 W. Ana- dumping and fooding issues, also sends specifc area for homeless campers and censing has expired and things like that, heim St., said these issues have persisted out information publicly and in-person vehicles, like a parking lot, where there we will work with the police department, for years. But although there has long to prevent the dumping of items. would be basic utilities, such as a show- because that is their area of expertise.” been a sense that the Westside has been “We make sure they understand what er and bathroom. “We could put these Parker added that she has met with neglected by city offcials, Phillips said is and isn’t appropriate,” Melkonian campers on [that] property. Maybe you’d Westside PAC members periodically there has been a “turnaround” in recent said. “We need to make sure people are months. not dumping any waste into the storm The Westside Project Area Com- drains – which would be illegal – and mittee (Westside PAC), consisting of just to kind of provide some general ed- hundreds of Westside business owners, ucation about rights and wrongs and dos convenes monthly at the Long Beach and don’ts.” Police Department’s (LBPD) West Di- Phillips’ biggest concern is security. vision Offce to address a variety of Some Westside PAC members who own issues plaguing the area. Recently, a restaurants mentioned that homeless subcommittee focused on the homeless individuals often enter their establish- problem has been formed and meets on ments screaming and shouting, Phillips a bi-weekly basis. said. “It’s a mess,” he added. In August, Westside PAC leaders, in- During a four-week period in Sep- cluding Phillips and Westside PAC Pres- tember, the LBPD moved roughly 200 ident Paul Collins, escorted city offcials illegally parked motor homes and their with the public works and health depart- homeless occupants in the industrial ments around the Westside industrial area, Collins told the Business Journal. area to survey the scene frsthand. This Phillips said the area now has roughly tour helped city offcials open their eyes 14 such vehicles. However, Collins ex- to the problem, Phillips said, adding that pressed concern that the solution is only “we have [received] a tremendous, tre- temporary, since most of these vehicles Westside Long Beach has seen an increase in parked recreational vehicles and homeless en- mendous response” since then. will simply park elsewhere. “I think it’s campments, according to area business owners. The Long Beach Police Department recently as- Among the city offcials that sur- a very diffcult situation,” he said. “I sisted in relocating some of these illegally parked and unlicensed vehicles, but Westside business veyed the Westside was Diko Melko- don’t think there is any magic bullet to owners said this is only a temporary solution. (Photograph by Brandon Richardson) WESTSIDE INDUSTRIAL AREA Long Beach Business Journal • October 22–November 4, 2019 • 25

Infrastructure issues plaguing Westside Long Beach include damaged sidewalks and streets. Dar- Westside Long Beach has been plagued with deteriorating infrastructure, including degrading yl Phillips, owner of Phillips Steel Co. and member of the Westside Project Area Committee, said streets and storm drainage, according to Long Beach business owners. (Photograph by Brandon some Westside business owners also face other challenges, such as storm drain issues that have Richardson) led to water runof into the streets. (Photograph by Brandon Richardson) to update them on the service’s efforts structure issues have improved “consid- opment department, said members of his ment in addressing the Westside’s chron- to address the homeless problem. Phil- erably” over the last few years, but there team plan on attending this meeting. ic issues has Phillips feeling optimistic. lips praised Parker and the work at the are still “a few glitches here and there.” The Westside’s homeless problem is “I do believe that all these issues are Multi-Service Center. Regardless, the Westside is a far cry part of a bigger nationwide epidemic, cyclical,” Phillips said. “They come in As a security measure, Cozine said from the shape it was in a few years ago, Phillips said. And although he said it’s waves. And I do think that this will set- Westside businesses should always re- McCrabb said. “Flooding was just a nor- not his place to offer a solution to the tle down and slow down a little bit. The port suspicious activity to the police. mal part of the year,” she said. “We did nationwide homeless problem, he did business owners and property owners Precautionary tactics may include in- have fooding about fve years ago, and it mention that developing a strategy starts are grouping together to address these stalling security cameras or alarms and covered the entire street. And we would with proactively working with commu- issues. And there are answers. We’re securing windows and doors. Investing just clean up and keep moving forward.” nity members and city government en- not saying we have those answers, but I in extra lighting may also deter any Melkonian said the public works tities. think they will come.” criminal activity, Cozine said. department has at least one major proj- The City of Long Beach’s involve- Another uncertainty looming over ect planned that would increase the Westside business owners is the pending size of storm drains at the intersections Pier B On-Dock Rail Support Facility of Judson Avenue and 16th Street and project, a Port of Long Beach effort that Seabright Avenue and Cowles Street to is intended to expand and enhance the remediate fooding. “We as city employ- existing Pier B rail facility. Some West- ees are going to do our best to make sure side businesses are in the direct path of that we have a clean and safe environ- the project. Port offcials have told the ment for them to maintain their busi- Business Journal that they intend to mit- nesses,” Melkonian said. igate all potential risks associated with Phillips said the Westside PAC is in the project, which includes relocation the early stages of meeting with the City assistance for Westside businesses. of Long Beach Economic Development Utilities are also lacking for Westside Department to consider establishing a business owners, Phillips said. Storm business improvement district specif- drain issues have led to water runoff into cally for Westside industrial business some of the streets, while aging fber owners. The Westside PAC has met optic connections have led to pervasive with the city once, and PAC members problems with internet and phone line are meeting in early November to dis- connectivity. “We’re not privy to that cuss options and developing a potential here on the Westside,” Phillips said. member database. Eric Romero, project McCrabb said some of these infra- 10/16/2019manager with the city’sFAb shop Sept 2013 economic 133.JPG devel-

https://drive.google.com/drive/u/1/folders/1r5QVjXs2_3sTTCRJWYgwNsn0iojUMKhm 1/1 MILLENNIAL PULSE 26 • Long Beach Business Journal • October 22–November 4, 2019

(Continued from Page 1) is, the space will be flled when you make this sinkhole, one by one removing peo- right now, because bygummit, it’s my turn: otherwise – continued on with the next a conscious decision to let go of that which ple from their lives until they were largely • Cable news networks, which have ap- generations in varying forms. does not serve you,” he wrote. He advocat- without any close relations, settling instead parently adopted the manifesto, “If it is not When it comes to Millennials, I am ed for removing anything that makes you for fy-by-night buddies who only have nice related to President Trump, it’s not news.” puzzled lately by how our response to feel unfulflled, or which is “taxing you things to say because it’s a more pleasant As far as I can tell, they serve up just one this aspect of American culture has taken mentally, emotionally, physically and spir- experience than the rigors of developing hour of “news” in the evenings, which con- shape. In one breath, we encourage others itually.” intimacy. I’ve had friends who have made sists of paid talking heads arguing about to pursue our true selves and identities. In In theory, that sounds like a decent life it their mission to completely rid their lives the president for 30 minutes, with 25 min- another, we advocate for letting go of any- strategy. But it seems some have been tak- of negativity. I say “had” because, ulti- utes spent on commercials and just 5 min- thing that isn’t “serving” us. In pursuit of en this original, well-meaning attempt to mately, these people vanished into their utes – if we’re lucky – paid to national and both of these avenues, we expect to fnd encourage happiness to an extreme – emo- own presumably blissful existence, where international news. fulfllment. But it seems to me that instead, tional avoidance. everything is amazing because there is no • The “insulation” between my up- somehow in our quest for happiness, we For the past couple of years, my Insta- one to tell them otherwise. stairs neighbors’ foors and my ceiling, ended up advocating not for emotional gram feed has become increasingly flled Well, you know what’s not serving and, while we’re at it, drugstore earplugs. freedom, but for emotional avoidance. with people bragging about letting go of me, or probably you, for that matter? That Spoiler alert: they might drown out snor- If you don’t often peruse Instagram, toxic relationships, avoiding social gather- attitude. At the risk of sounding like an ing, but not Stompy McStomperson’s 5 you may not have any idea what I’m al- ings that stress them out, and eliminating elder Millennial, I propose this: sure, rid a.m. Riverdance. luding to. So allow me to let you in on my all sorts of people, places and things that your life of truly toxic relationships and • Unreliable on-demand delivery es- pet peeve – the trend among young people, “do not serve them” in pursuit of a more activities. But don’t think that just because timates. How does 30-40 minutes always particularly the Millennials and Genera- fulflled existence. I originally felt OK you have been challenged with a negative become an hour and a half? This woman tion Z-ers that rule social media, to advo- about this concept. I mean, if you have a emotion – regret or shame or disappoint- needs her pho and she needs it within a cate for removing people or elements from crappy boyfriend, by all means, dump him! ment – that it is a hindrance to your devel- specifed timeframe! their lives that “do not serve” them. But what happens when we start avoid- opment. It seems to me that the happiest, • Dating apps. Enough said. I suspect the origination of this topic’s ing friends and family because they are a most successful people in the world didn’t • The Santa Ana winds, which make proliferation on social media was a 2017 bit high-maintenance and stress us out a hide from the things that challenged them the temperature nice but turn my nose into article published on Medium.com – a pop- little, or because they, with the best-inten- – they faced them head on, and came out a faucet and my eyes into itchy balls of fre. ular online resource where anyone can tions, point out areas of our lives that ad- better for it. • My family, literally. I had dinner at post think pieces – entitled “This Is How mittedly need a little fxing up? Is avoiding That being said, by all means, please their house the other night, and they had To Let Go Of What No Longer Serves negative emotion really “serving” us? Or is do dump your crappy boyfriend. I’m not the gall to suggest I serve myself. I mean, You, So You Can Attract More Of What it stifing our personal growth? There is a advocating for purposefully engaging in really. Who do they think I am, a full- You Really Need.” The author, Tony Fah- difference between addressing an issue and things that make you miserable for mis- grown adult with fully functioning hands kry, is described as a “self-empowerment then letting go of it – that’s healthy. But not ery’s sake. Let that ish go. But don’t run and feet? author, expert speaker and coach.” addressing it because you don’t like how it away from everything that makes you feel • Generation Z. As far as I can tell, Fahkry argued that suffering is caused makes you feel and then expecting life to something unpleasant without frst taking these kids have done nothing to serve their by holding on to things that do not serve carry on for the better, well, that just seems a good hard look at why that is. elder Millennial Generation. They’re too us, but which offer us comfort because psychologically problematic. Now, let’s take a moment to contem- busy trying to fght climate change and they are familiar. “The truth of the matter I’ve known people to disappear into plate the things that aren’t serving ME keep guns out of schools. The nerve. A Trip to Italy For Only $9.99!

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