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0409 Sanjoaquin LOCATE YOUR BUSINESS in one CCENTRALENTRAL of California’s most dynamic business headquarters...The A.G. Spanos corporate CCALIFORNIAALIFORNIA’’SS headquarters building. In a prime location bordering PPREMIERREMIER I-5, the Spanos Companies building offers high visibility and state-of-the-art amenities. BBUSINESSUSINESS At present there is nearly 50,000 square feet of available space for AADDRESSDDRESS lease. Reserve your office space and floor plan today! C O N T A C T SHELLY CANNON-KEELY [209] 476-2916 CB Richard Ellis EIGHT MILE ROAD I-5 N STOCKTON SAN JOAQUIN COUNTY Logistics and Demographics Redefine the Greater Bay Area The San Joaquin County economy by MARK AREND is increasingly influenced by the San Francisco Bay he Altamont Pass east of Area — a region the San Francisco Bay area is notable for more than its some might not windmill farms. From its peak, one can look west have associated T into Alameda and Contra Costa Coun- with it. For years, ties and the rest of the Bay Area, which serves as a daily destination for dozens San Joaquin County of thousands of commuters from the east. Looking east from the Pass — has supplied Silicon “the hill” to locals — one sees San Valley with much of Joaquin County, which is an increas- ingly logical destination for high-tech its labor force. But and other companies seeking closer proximity to their work forces. that is changing as The Pass, therefore, symbolizes an commuters tire of economic dividing line that many in the region are working to eradicate. the daily trek over The division is between where the high-paying, high-tech jobs generally the Altamont Pass are — west of the line — and where and companies affordable housing is — east of the line. The division is eroded each time discover the cost a site seeker realizes that a San Joaquin location delivers easy access to the The University of the Pacific in Stockton is one benefits of a San transportation, cultural, educational, of three local higher education institutions high-tech and other assets of the Bay supplying San Joaquin County employers Joaquin County with workers (see page 12). Area. More significantly, the San Joa- Photo of Port Stockton (on cover page this editorial survey) courtesy Phil DiMarino, Colornet, Inc. location. quin Valley, based on the Consumer SITE SELECTION EDITORIAL SURVEY SEPTEMBER 2004 3 Pac-West Telecomm, Inc., a local exchange carrier and Internet service provider, serves California and four other western states from its headquarters in Stockton. Price Index, provides a 69-percent are expanding and need reasonably providers such as ProLogis, Panattoni lower cost of living and a 30-percent priced space in which to do so. Development Co. and IDI, and other lower cost of doing business than alter- California’s rebound is paralleled by investors in warehouse and distribution native Bay Area locations. Pacific Gas & Electric (PG&E), the centers (DCs), discovered years ago — With corporate investment in new primary energy company in northern that the Valley, in the heart of the facilities on the upswing following a California. PG&E exited from Chapter state’s agricultural region, is an ideal post-9/11 and recession-induced slump, 11 in April 2004 and as a direct result location from which to serve operations San Joaquin County is positioning itself reduced electrical rates to commercial up and down the West Coast. as the greater Bay Area location to and industrial customers by 10 to 15 “The exact demographic center of beat. Several infrastructure and devel- percent. Forecasts for the future pro- the West Coast is at Copperopolis in opment projects will soon come online ject a continuing reduction in rates as the [Sierra Nevada] foothills, about 30 in San Joaquin County that will further stability returns to the California ener- miles east of Stockton,” notes Robert make the case that the region deserves gy market. K. Wheeler, plant manager at a Gener- close consideration from those who al Mills plant in Lodi, in the northern looked only west of the Altamont Pass 21st Century Gold Rush part of San Joaquin County. “But there in the past for proximity to the San Historically, Stockton, the largest city are few roads there and no railroads, so Francisco metro and Silicon Valley. in San Joaquin County (pop. 300,000), you’re not going to want to go there. These include new business parks in was a jumping-off point for the 1849 You’d want to be here, which is why Tracy, in the southwestern part of the Gold Rush. Today it is a center of you see a preponderance of distribu- county nearest the high-tech havens on renaissance growth for the 21st centu- tion facilities in the Stockton and Lodi the other side of the hill, and increased ry, with more than $200 million in pub- areas.” Wheeler serves as chairman of development of the Stockton/San lic investment for waterfront improve- the board of the San Joaquin Partner- Joaquin Regional Airport and the Port ments, office developments, a sports ship, the county’s public-private eco- of Stockton. The latter, on the Stockton arena, ballpark, convention center and nomic development corporation. Deep Water Channel 75 nautical miles hotel. In addition to the Channel rede- east of San Francisco Bay, is a key logis- velopment, Stockton has more than 50 Distribution Solution tics asset to the agriculture, building million sq. ft. (4.6 million sq. m.) of The abundance of tractor-trailers materials manufacturing and other industrial space attracting such compa- plying I-5 and Highway 99, the two industries in the San Joaquin Valley nies as Simpson Strong-Tie, with a 62- main north-south arteries running (see the sidebar on page 10). acre (25-hectare) research and devel- through the county, and I-205 to I-580 Plans for these projects have been in opment, manufacturing and logistics into the Bay Area, should come as no the works for some time, but recent facility; Eagle Roofing Products, a divi- surprise. Other than at Sacramento to economic conditions — and Califor- sion of Burlingame Industries, con- the north and at the point south of Bak- nia’s economic situation in particular, structing a roof-tile manufacturing ersfield where the two meet, the Stock- among other factors — have kept them plant; and Burlington Northern Santa ton area in central San Joaquin County from taking off. But the tide is chang- Fe Railroad with a multi-million dollar is the point at which the two north- ing. The population is migrating inland intermodal facility. south thoroughfares are closest togeth- from the Golden State’s pricey coastal The case for a San Joaquin County er at just three miles (4.8 km.) apart. region; high-tech companies are leaner location relative to coastal California is This gives DC logistics and transporta- and wiser following the dot-com era, straightforward on the basis of real tion managers throughout the region and they are increasingly sensitive to estate cost and availability. Adding an some important route options where employees’ quality-of-life issues for abundant skilled work force and excel- serving their markets by highway is fear of losing those workers; and a lent Interstate highway access, it’s clear concerned. growing economy means businesses to see what international logistics (continued on pg. 8) 4 SEPTEMBER 2004 Contact the SAN JOAQUIN PARTNERSHIP at www.sjpnet.org or 800-570-JOBS It’s what you want for your investments. And it’s what you’ll get at Guaranty. With over 100 years experience and $17 billion in assets, Guaranty Financial Services has the knowledge to help you succeed. Plus, our experts take the time to listen and learn what is best for you. WWW.GUARANTYGROUP.COM Guaranty Bank* 1.800.288.8822 Guaranty Residential Lending** 512.434.8000 Guaranty Insurance Services 512.434.8106 Lumberman’s Investment Corporation 512.434.5786 *Guaranty Bank is a member of the FDIC **Licensing by the Department of Corporations under the California Residential Mortgage Lending Act. 2004 Guaranty Bank. All rights reserved. Development Fee Comparisons One measure of San Joaquin County’s cost advan- Assumptions tage over the Bay Area is the Comparison difference in fees associated assumes a 50,000 square with developing sites. In foot facility with October 2003, the San Joaquin 30 percent site Partnership produced a coverage on 5 Regional Development Fee acres employ- ing 150 people. Comparative Analysis report in order to determine the effect of a proposed regional transportation impact fee that would affect the cost of any new development in the coun- ty. Higher fees make any potential site location less competitive. Assumptions The report includes analysis Comparison of 18 jurisdictions — eight in assumes a San Joaquin County and 10 550,000 square outside the county — that are foot facility with 60 percent site considered competitive in coverage on 30 terms of economic develop- acres employing ment. These charts graph the 300 people. total estimated development fee cost for the 18 jurisdic- tions. Fees include permits and plan checks, public/capi- tal facility fees, infrastructure, finance districts, taxes and other agency fees. The graphs also provide the average and median development fee cost Assumptions for the 18 jurisdictions. With Comparison assumes a the exception of Tracy, the 125,000 square San Joaquin County locations foot facility with weigh in at or below the aver- 60 percent site age of the 18 jurisdictions coverage on 12 acres employ- studied — and well below ing 224 people. Sacramento, less than an hour’s drive north of Stockton, and Livermore, the first city west of the Altamont Pass heading into the Bay Area.
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