New Action Committee Fires Back After Claiming Local Community Group Has ‘Launched an Attack’ on Property Owners

1_LBBJ_August2_2016_LBBJ 7/30/16 8:51 PM Page 1

August 2-15, 2016 Long Beach’s Newsmagazine www.lbbizjournal.com New Action Committee Fires Back After Claiming Local Community Group Has ‘Launched An Attack’ On Property Owners

I By BRANDON RICHARDSON Butler, has been pushing for a Last year, instead of REAP, the Staff Writer Rental Escrow Account Program Long Beach City Council voted (REAP) like Los Angeles imple- unanimously to enact the Proac- ith rents skyrocketing mented in 1988. tive Rental Housing Inspection W around the city, com- In L.A., if a property owner is Program (PRHIP) to “safeguard munity groups are looking for a found to provide tenants with sub- the stock of decent, safe and sani- means to eradicate slumlords and standard living conditions, the tary rental housing” in the city implement programs to protect property is placed in REAP and through mandatory periodic in- renters’ rights. tenants may pay a reduced rent spections of rental properties. Since 2013, Housing Long into a city-managed escrow ac- While Butler acknowledged Beach, a nonprofit organization count until inspectors determine that PRHIP was a good starting led by Executive Director Josh the violations have been corrected. (Please Continue To Page 13) Low Interest Rates Forecasted To Persist,

Elaine Hutchison, right, and Joani Weir have teamed up to create an action committee in Long Beach to fight for the rights of property owners. The committee claims Driving Buyer Demand For Residential Properties that Josh Butler, executive director of Housing Long Beach, has “launched an attack” on property owners’ rights. (Photo by the Business Journal’s Larry Duncan) I By SAMANTHA MEHLINGER forded by lower rates and pay- have been in an interest rate situa- Senior Writer ments coupled with increasing tion that is very atypical,” Robert rental rates. Kleinhenz, economist and execu- Long Beach Sales Tax Measure lthough an improving “For the last couple of years, we (Please Continue To Page 16) A economy usually triggers Voters Draw A Line In The City increases in interest rates, such has not been the case in the United I By GEORGE ECONOMIDES Altos area, Naples and other parts States over the last couple of Publisher’s Analysis of East Long Beach. years. Financial and real estate ex- On January 1, 2017, the city’s perts, as well as economists, agree map by a local consulting sales tax moves to 10% from the that continued global uncertainties A firm plotting the final re- current 9% – an 11.1% tax in- are keeping rates low and are sults of the June 7 Long Beach crease. The new revenue is to be likely to do so well into 2017. sales tax measure shows that most used for the city’s public safety Low interest rates are putting of the opposition to the tax in- and infrastructure needs. pressure on demand for residential crease came from residents living While the measure passed eas- real estate, both in the single-fam- in Northeast Long Beach, with ily citywide – 60% to 40% – a dis- ily and multi-family markets, ac- heavy opposition from the Los (Please Continue To Page 32) cording to local real estate professionals. Homebuyers are Jess Romo Named Airport Director seeking to take advantage of lower home mortgage payments, while Robert Camerota, senior vice president of residential lending operations for Farm- Jesus “Jess” L. Romo is the new director of the Long investors in apartments hope to ers & Merchants Bank, said he doesn’t expect interest rates to increase significantly Beach Airport, effective September 6. City Manager capitalize on steady cash flows af- in the foreseeable future. (Photograph by the Business Journal’s Larry Duncan) Pat West announced the appointment on July 29. Romo has been serving as interim deputy executive director of Los Angeles World Airports, oversee- Americans With Disabilities Act – ing operations and emergency management at LAX, and has also served as director of airport operations 26 Years On, The Court Battles Continue for Ontario International and Van Nuys airports. “Mr. Romo is an accomplished aviation professional I By MICHAEL GOUGIS in the Central District of Califor- vate businesses. This has left who will provide strong leadership and strategic planning for Long Contributing Writer nia, U.S. District Court, against public agencies, but especially

Beach Airport,” West said in a press release. “He will work collabora- the Long Beach auto repair facil- business owners, footing the

tively with all stakeholders, including the community, tenants and our he parking lot at Coast ity shows that 26 years after the bill for enforcement and com- commercial and general aviation partners.” T Auto Care & Tires isn’t a passage of the Americans with pliance actions. In the same release, Romo said he is “committed to being an ap- parking lot in the common usage Disabilities Act, litigation remains (Please Continue To Page 9) proachable and responsive steward of this great airport.” He earned a of the term – it’s a driveway into the way that specific issues of ac- bachelors in psychology from UC Irvine and a masters in industrial the service bays. Therefore, there cess for the disabled are resolved. Understanding The psychology from CSU Los Angeles. He also holds the designation is no designated parking area set And in California, despite ef- A.A.E. – Accredited Airport Executive. I – Business Journal Staff aside for spaces that are accessible forts to reform the system, en- School District to people with disabilities. forcement of compliance still Bond Measure Long Beach Business Journal That set of circumstances has takes place through what one PRSRT STD 2599 E. 28th Street, Suite 212 U.S. POSTAGE become an issue in federal court. court called “serial litigation” Signal Hill, CA 90755-2139 PAID The civil lawsuit, filed in June against public agencies and pri- I By GEORGE ECONOMIDES 562/988-1222 • www.lbbizjournal.com Los Angeles, CA Publisher PERMIT NO. 447 Earthquake Insurance: Most Residents Not Prepared See Story Beginning On Page 11 ocal voters are being asked L to support a $1.5 billion Focus On The Business Of Weddings school district bond measure to • Wedding Traditions Through The Generations not only complete the work of the • From Chuppahs To Henna: Wedding Customs From Around The World earlier bond Measure K approved in 2008, but to ensure that all of • Intimate Wedding Venues In Long Beach the K-12 facilities are in the best See Stories Beginning On Page 23 (Please Continue To Page 8) 1_LBBJ_August2_2016_LBBJ 7/30/16 8:51 PM Page 2 This Edition’s Advertisers Inside This Issue

Aquarium of the Pacific 33 Aquarium of the Pacific/PREMIER 29 5 Newswatch Big E Pizza 10 • City Council Takes Steps To Place Marijuana Taxes On Ballot Boulevard Cadillac 12 • New Station For Transit’s Electric Buses Set For Convention Center Brascia Builders, Inc. 19 Buono’s Pizzeria 9 • Superior Court Makes Final Ruling Against Rail Yard Project Bustamante, George/Warshauer, Steve/ • Harbor Commission Approves Funding To Reduce Pollution Jacques, Cameron – CBC BLAIR WESTMAC 18 • 9th District Councilman Rex Richardson Elected Vice Mayor Catalina Express 9 • Southeast Area Specific Plan Draft EIR Ready Chronic Tacos 2 City of Long Beach, Department of • Possible Carousel, Amphitheater For Queen Mary Area Financial Management, Purchasing Division 8 • School District November 8 Bond Measure, from Page 1 Coast Auto Care & Tires 12 • Coast Auto And The Americans With Disabilities Act, from Page 1 Coldwell Banker Commercial BLAIR WESTMAC 15 • Another Big Quake Is Coming – But Most Residents Not Prepared Eye Physicians of Long Beach 11 Farmers & Merchants Bank 3 Real Estate Quarterly Glen Park at Long Beach 5 13 Grounds Bakery & Café 5 • Fighting For The Rights Of Property Owners, from Page 1 Hilton Long Beach 25 • Low Interest Rates Expected To Continue, from Page 1 Holiday Inn Long Beach Airport 25 • Low Vacancy Rates Mean High Prices For Commercial Real Estate Hyatt Regency Long Beach 25 • To Fight The Housing Crisis, Some Cities Are Going Micro INCO Commercial 21 International City Bank 7 The Business Of Weddings International City Escrow 14 23 International City Theatre 11 • From Chuppahs to Henna: Wedding Customs Around The World Irvine-Parker, Barbara – • Wedding Traditions Through The Generations Coldwell Banker Coastal Alliance 16 • Intimate Wedding Venues In Long Beach Kafe Neo 9 Knightling 5 In The News LB Walker Automotive 2 30 Lee & Associates Commercial Real Estate Services 21 • Liberation Brewing Company Coming To Bixby Knolls Long Beach Water Department 8 • Creative Corridor Challenge Injects Public Art In North Long Beach Mar Mel Inn 5 • LBS Financial Employees Cleaning Up Long Beach Coastline Marcus & Millichap 13 • Big E Pizza Celebrating 30th Anniversary Michael Levy Gallery 11 Morey Remodeling Group 14 • Nino’s Bidding Farewell After 58 Years In Business Naples Rib Company 10 Pacific Gateway 4 32 Perspectives Port of Long Beach Back Cover • Analysis Of Long Beach Sales Tax Measure; Sares•Regis Group 19 Technology & Innovation; Inside City Hall; Effective Leadership; The Carson Center 27 The Earl Burns Miller Japanese Garden, Small Business Dollars & Sense; Realty Views; Trade & Transportation California State University, Long Beach 29 The Grand Long Beach 24 The Queen Mary 28 Free: Long Beach Business Journal Digital Edition, Volterra Dental 10 Monday Morning Coffee and NewsFlash – Sign up at: www.lbbizjournal.com Watson Land Company 17 Whirledge, Mary – Coldwell Banker Star Realty 16 Find us on Facebook and follow us on Twitter: @LBBizJourn

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August 2-15, 2016 NEWSWATCH Long Beach Business Journal 5

City Council Takes marijuana businesses that sell those products for the LBT’s new fleet of battery electric new bus station to charge the vehicles to customers,” Richardson said at the meet- buses on July 25. The station is to be lo- during a 10-minute stop, according to Steps To Place ing. That tax could be increased to a rate of cated at the Long Beach Convention & En- LBT documents. 8% by a majority vote of the city council. tertainment Center. The contract, which A few months ago, LBT received the Marijuana Taxes Additionally, the initiative would “estab- includes a 10% contingency, was awarded first of these buses, which it has been lish a tax of $12 per square foot of space to Culver City-based Fast-Track Construc- using for testing and training. At the July On November Ballot dedicated to the cultivation of marijuana tion, the same firm that built LBT’s Transit 25 meeting, Rolando Cruz, executive di- over the canopy area,” Richardson said. A Gallery in downtown in 2010. rector and vice president of maintenance majority vote of the city council could raise The new bus station will feature charg- and facilities at LBT, said that the re- I By SAMANTHA MEHLINGER that taxation rate up to $15. ing equipment for the fleet of zero-emis- maining buses are nearing completion on Senior Writer When 3rd District Councilmember sion buses, which are being the assembly line in Lancaster. At least Suzie Price asked if Richardson’s initia- manufactured by Chinese-based corpora- seven of the buses are designated for use On July 19, the Long Beach City Council tive would compete with the marijuana tion BYD at a plant in Lancaster. The on the Passport Route, a free bus service unanimously passed a motion by Vice regulation initiative that has already qual- buses include a system called Wireless in Downtown Long Beach, Cruz said. Mayor Rex Richardson to begin steps to ified for the ballot, City Attorney Charles Advanced Vehicle Electrification. An in- The remaining buses will be rotated in place an initiative for the taxation of mari- Parkin said that only the portion related ductive plate is to be installed to the bot- different routes throughout the city to juana businesses on the November 8 ballot. to taxation would conflict. Per election tom of the buses, and corresponding give the community a chance to ride The initiative would compete with the tax- code, if the city council-proposed initia- charging pads are to be installed at the them and see them, he added. I ation portion of another proposal that has tive receives more votes, its taxes would qualified for the ballot based on resident be put into effect, he explained. signatures. Richardson called the proposal balanced Richardson’s motion was to request City and modest. He emphasized that revenue Attorney Charles Parkin to prepare docu- from the proposed taxes would offset city ments to place an initiative on the ballot that, costs and “ensure a public benefit.” I if passed by voters, would establish a 6% gross receipts tax on medical marijuana dis- New Station For pensaries. By majority vote, the city council could increase that tax to a maximum rate of Transit’s Electric 8%. The sale of non-medical marijuana for adult use would be subject to an 8% gross re- Buses Slated For ceipts tax, which the council could increase to a maximum rate of 12% by majority vote. Convention Center If passed, the proposed ballot initiative would also enact a 6% gross receipts tax on I By SAMANTHA MEHLINGER Long Beach businesses “that engage in the Senior Writer manufacture, testing, processing, distributing, packaging or labeling of marijuana or The Long Beach Transit (LBT) Board of marijuana-containing products, medical or Directors approved a $1,465,314 contract nonmedical, for wholesale to other retail for the design and construction of a station 6 Long Beach Business Journal NEWSWATCH August 2-15, 2016

State Superior Court The project has been in litigation for sion. “This ruling affirms that the proposed ized a $46.4 million program to decrease more than three years since the City of project cannot proceed without additional port-related pollution. Makes Final Ruling Long Beach, Long Beach Unified School measures to protect Long Beach neighbor - The funds are expected to be disbursed District, and multiple transportation com - hoods, which is a win for Long Beach and over a 12- to 15-year period. These funds, Against Controversial panies and environmental groups filed suit Westside residents,” Garcia stated. combined with $17.4 million already after the City of Los Angeles and its port “As proposed, this project would have awarded by the port to various community Rail Yard Project decided to go ahead with the project de - endangered the health of our children and groups since 2009, totals almost $65 mil - spite concerns over the EIR’s validity. damaged the neighborhoods where many lion, which is more than any other U.S. sea - According to the release, Contra Costa people live, study and work,” Garcia’s port has voluntarily committed for I By SAMANTHA MEHLINGER Superior Court Judge Barry P. Goode statement continued. “Thanks to my pred - environmental mitigation, according to a Senior Writer found that flaws with the EIR included un - ecessor, Mayor Bob Foster, for fighting to port statement. derestimating traffic impacts to local protect our residents and to City Attorney “As commissioners, we live in Long A superior court judge made a final rul - streets, a misleading analysis of air quality Charlie Parkin, Assistant City Attorney Beach, so we understand for the port to do ing against BNSF Railway’s proposal to impacts, and not considering the project’s Mike Mais, and our entire legal team for well, we must do good,” Lori Ann Guzmán, build a new rail yard adjacent to West Long capacity to spur further growth in the area, this historic win for our West Long Beach the harbor commission president, said. Beach after BNSF appealed his prior among other issues. neighborhoods.” I “Being the ‘Green Port’ is in our DNA and March decision that found the project’s en - “The new rail yard would have directed our record as being leaders on the environ - vironmental impact report to be flawed. thousands of diesel trucks and miles of mental front while being good neighbors is The final ruling, which came down on July diesel trains close to schools, daycare $46.4 Million Program unparalleled. The proposed community mit - 26, found BNSF’s objection that a state centers, playing fields and residences on To Decrease Pollution igation program is the latest example of our court could not have jurisdiction over the a daily basis,” the city attorney’s state - longstanding and long-term commitment to issue to be invalid. ment read. “By 2035, the project would Approved By Long Beach the environment and to Long Beach.” The environmental impact report (EIR) have generated two million truck trips per This fall, guidelines for allocating funds for the project was conducted by the Port year to and from the site and the loading Harbor Commission between community health, facility im - of Los Angeles, which now must “complete and unloading of up to 1.5 million ship - provement and community infrastructure a more robust and accurate analysis of the ping containers annually.” Parkin stated I By BRANDON RICHARDSON projects will be developed at a public work - environmental impacts of the project before that his office was pleased with the out - Staff Writer shop hosted by the port. A location and date the project can move forward,” according come of the case. has yet to be determined. to a press release from the office of Long Following the news, Mayor Robert Gar - At its July 25 meeting, the Long Beach Program funding is expected to be Beach City Attorney Charles Parkin. cia released a statement lauding the deci - Board of Harbor Commissioners author - awarded beginning in 2017. I

9th District’s Rex Richardson Elected To Serve As Vice Mayor Rex Richardson, councilmember for Long Beach’s 9th District, was elected vice mayor by his peers on the city council on July 19. Soon to turn 33, he is the youngest person to serve in this position in Long Beach. “I am hon - ored to have my colleagues’ confidence to serve as our city’s vice mayor,” Richardson said in a statement from his office. “I accept this as a recognition of our entire community’s progress since taking office two years ago. I look forward to working with Mayor Garcia and each of my fellow councilmembers as we continue to build a better Long Beach.” Since taking office, Richardson has focused on revitalizing North Long Beach via his Roadmap to the Renaissance initiative. He has also initiated programs such as participatory budg - eting, the city’s My Brother’s Keeper initiative, a young adult diversion program, and the Uptown Creative Corridor Challenge. Richardson is pictured in his office, which was recently revamped by North Long Beach creative agency RMD Group. To his left are staff members Alyssa Gutierrez, special projects coordinator, and Christian Cambridge, field deputy. To his right are Shawna Stevens, chief of staff, and at far right, Marina Escobedo, legislative affairs deputy. According to the Long Beach City Charter, “the vice mayor shall perform all duties and, except for the power to veto actions of the city council, may exercise all powers of the mayor as prescribed in the City Charter when the mayor is absent.” (Photographs by the Business Journal’s Larry Duncan) 1_LBBJ_August2_2016_LBBJ 7/30/16 8:51 PM Page 7

August 2-15, 2016 NEWSWATCH Long Beach Business Journal 7

Draft SEASP And on July 27 to incorporate public comments Long Beach student designers – to give the believes a large event space could attract into its guiding principles and finalize last- project a true Long Beach vibe. symphonies and bands. Environmental Impact minute concepts. “We’re intrigued by the idea of getting “This would be a region-wide, if not The newest concept was the return of an the carousel that once was in Long world-class, space that could accommodate Reports Available iconic carousel to the area. A 1911 carousel Beach,” Michael Bohn, task force chair, a stage and all the support materials for that,” designed by Charles I.D. Looff, an Ameri- said. “It would be bringing back some- Bohn said. “One of the task force members For Review can master carver famous for building the thing authentic to the city, as opposed to believes that it could be a mini Hollywood first carousel at Coney Island in 1876, was bringing in something every other city Bowl by the sea, and that’s how it would be a main attraction at the former Pike amuse- can buy in a catalog. This would be a distinguished within the Southland for bands I By BRANDON RICHARDSON Staff Writer ment park. The carousel burned down in piece that has its roots in Long Beach. and symphonies and other musical events.” 1943, leaving only the roof of the Lite-a- Those are exactly the types of elements The task force will review the final guid- After incorporating public comments Line building. The remaining structure was the committee believes would be good ing principles document online, which will from community members, the Long Beach demolished in 2008. for our city.” include its most recent comments and will Planning Commission has released its Public commenters at the meeting wel- Aside from the carousel, the task force be finalized by consultant Gwynne Pugh of Southeast Area Specific Plan (SEASP) con- comed the idea of bringing such a celebrated decided to make a 5,000-capacity am- the architectural and design firm Gwynne ceptual draft, now called the Hearing Draft. piece back to the city. They suggested the phitheater the focal point of its guidelines, Pugh Urban Studio. The group will not re- Some of the top priorities of the plan in- city seek private investors to finance the ex- according to Bohn. The city has been lack- convene until the document is presented to clude improving traffic flow, enhancing pensive landmark, as well as using local de- ing a permanent venue to attract national the mayor and the city council, which Bohn wetlands, improving pedestrian and bicycle signers and contractors – or even Cal State and international musical acts, but Bohn says will be in September. I connectivity, encouraging upscale shop- ping and dining, and creating a land plan that “encourages a greater mix of uses and appeals to a diverse population.” The commission hopes to utilize signage at city gateways to welcome people into the city. The five gateways into the SEASP area are located at the intersections of Bellflower Boulevard and Pacific Coast Highway (PCH), Studebaker Road and the Garden Grove Freeway, 2nd Street and Studebaker Road, 2nd Street and PCH, as well as on PCH on the Seal Beach side of the bridge. The plan also maintains the unique views and edges of Southeast Long Beach by minimizing signs and light pollutions and providing transitions between buildings and the water. Land use designation is very diverse with 162 acres of channels, marinas and water- ways; 293 acres of coastal habitat and wetlands; a 9-acre commercial neighborhood; 292 acres of industrial space; 86 acres for mixed-use; 337 acres for 310 mobile homes, 2,458 multi-family units and 1,440 single-family residences; 75 acres of open space and recreation; 20 acres of public space; and 197 acres of right-of-way, or ROW, which is land reserved for transportation purposes such as footpaths, high- ways, canals and bike trails. The full hearing draft can be viewed at www.lbds.info/seadip_update/default.asp. Also available on the website is the Draft Environment Impact Report (DEIR), which has been completed for public review. Pub- lic comments on the EIR are due by Sep- tember 19 to Craig Chalfant, senior planner, Long Beach Development Serv- ices, via e-mail at craig.chalfant@long- beach.gov or by mail to 333 W. Ocean Blvd., 5th Floor, Long Beach, CA 90802. On August 18, the planning commission is holding a study session that is open to the public to learn more about the EIR and SEASP. The commission is taking public testimony that becomes part of the public record. The session starts at 5 p.m. at city council chambers, 333 W. Ocean Blvd. I Iconic Carousel, Amphitheater Approved By QM Task Force

I By BRANDON RICHARDSON Staff Writer

After revealing its progress and ideas to the public earlier this month, the Queen Mary Land Development Task Force met 1_LBBJ_August2_2016_LBBJ 7/30/16 8:51 PM Page 8

8 Long Beach Business Journal August 2-15, 2016

Understanding The Long Beach Unified School District Bond Measure On The November 8 Ballot

(Continued From Page 1) LBBJ: If the measure passes, when does it go into effect? condition possible to provide the best edu- LBUSD: The billing would begin with cation possible for students. This includes the 2017-18 property tax bill. repairs, retrofits, new construction, tech- LBBJ: Is the assessment the same for a nology upgrades and much more. residence as it is for an office building, in- The Long Beach Board of Education dustrial park, strip center, etc.? voted to place the measure on the Novem- LBUSD: Yes. The estimated rate would ber 8 ballot. For the measure to pass, 55% apply to all taxable property at $60 per of voters must support it. The $1.2 billion $100,000 of assessed value (not market Measure K bond was supported by 71% of value) regardless of the type of property, voters. Additionally, a recent phone survey whether residential, commercial or in- showed that more than seven in 10 local dustrial. voters believe additional funding is needed LBBJ: Are government facilities ex- to “modernize and improve campuses.” empt from the assessment? Is there any To provide voters full transparency other property exempt? about the measure, the Business Journal LBUSD: Government, non-profits and asked school district officials to respond to churches are the only types of exempt several questions. Also, the district has a property. seven-member citizens oversight commit- LBBJ: What is the estimated total cost tee which, “is charged with informing the of the bond at the conclusion of the as- public about Measure K projects, review- sessment? ing Measure K expenditures, and develop- LBUSD: The estimated total cost is ing an annual report to the board of $3.8 billion. education on the progress of projects.” The LBBJ: Is there a specific list of next meeting of the oversight committee is projects that the bond measure is tar- September 22, 5 p.m. at Poly High School geting? In other words, as stated by the Construction Trailer, 1600 Atlantic Ave. district, “needed improvements to meet LBBJ: What is the cost to property own- 21st Century safety and environmental ers and how many years does the assess- standards.” ment last? LBUSD: The overall facilities need re- LBUSD: We estimate $60 per $100,000 mains at more than $3 billion, even after of assessed valuation (not market value, but Measure K. We knew all along that assessed value). Measure K was the same. Measure K would not meet all needs, so Such bonds are issued in series with esti- we began by addressing high priority mated financing terms of up to 30 years. projects. Should the bond measure pass in November, we would again address higher priority needs, focusing on health and safety-related repairs and upgrades. That includes air conditioning as one component. We estimate the cost of air conditioning the entire district to be more than $700 million, including the necessary upgrades to electrical and other equipment. Many of our schools were built 60 to 70 years ago. Beyond air conditioning, there is also a great need to fix deteriorating bathrooms and leaky roofs, upgrade fire alarms and security systems, improve plumbing and electrical wiring to increase water conservation and energy efficiency, and make upgrades to meet newer handi- cap accessibility and earthquake safety laws. We posted this related item online right after the board’s June decision to call for the bond election, and it includes links to supporting materials: http://lbschools.net/Departments/News room/arti- cle.cfm?articleID=2242. Among the supporting materials is the newly updated Facility Master Plan for our district, with a school-by-school project list: http://lbschools.net/District/measurek/ pdfs/LBUSD-Facilty-Master-Plan-Update- 2016.pdf. LBBJ: What specifically has been completed with the funds from Measure K, and can you put a dollar figure with each project? LBUSD: Most of the $1.2 billion in Measure K funding has been used or al- located. A list of completed and current Measure K projects, with dollar figures, is available on the Measure K website: http://www.lbschools.net/District/measurek/measurek.cfm. I 1_LBBJ_August2_2016_LBBJ 7/30/16 8:51 PM Page 9

August 2-15, 2016 Long Beach Business Journal 9

Coast Auto And Americans With Disabilities Act

(Continued From Page 1) Handy LLP – states that the attorneys for the center have been “litigating disability “It’s like you get thrown into a clothes access cases since 1996. There is no firm dryer, and you’re just tumbled around, not that has had a bigger impact on disability knowing what is happening or how much it access law.” is going to cost you," says Manuel Campos, This process of finding ADA violations owner of the auto repair operation at the in- and correcting them by allowing members tersection of Pacific Coast Highway and of the public and their attorneys to sue pri- Atlantic Avenue in Central Long Beach. vate businesses has been recognized and “To get thrown into a lawsuit – if you’re even endorsed to an extent by the courts. not savvy, you can rack up some major bills.” On one hand, courts have found that the Under federal law, plaintiffs filing law- system works well in forcing places of pub- suits over access for disabled persons do lic accommodation to become ADA-com- not receive monetary compensation for pliant – and that it is indeed necessary by successfully suing to get a business or pub- the political decision to put the law into lic entity to fix violations of the ADA. place without any real public sector method However, their attorneys can be reimbursed of enforcement. for legal fees incurred in pursuing such lit- “For the ADA to yield its promise of igation. Yet California is one of a small equal access for the disabled, it may indeed handful of states that specifically allows for be necessary and desirable for committed plaintiffs to receive monetary damages if individuals to bring serial litigation advanc- they prevail in court. ing the time when public accommodations That set of circumstances created, in will be compliant with the ADA,” the essence, a class of professional bounty United States Court of Appeals Ninth Cir- hunters – a cadre of attorneys and “profes- cuit ruled in a pair of cases at the end of the sional plaintiffs” who specialize in finding last decade. and suing companies that do not comply But the court also warned that the serial with the ADA. litigation method of enforcing compliance One of those law firms, Potter Handy had its own dangers – specifically, the dan- LLP in San Diego, represents the plaintiff ger of litigation that was brought not to that has filed the complaint against Coast bring about compliance but to harass a de- Auto. Partner Mark Potter, who did not re- fendant. Frightened of fighting an open- turn a phone call seeking comment on this ended legal battle, small businesses often case, states on his website that he has suc- settle ADA litigation out of court by fixing cessfully litigated more than 2,000 disabil- the violation and paying attorney costs, ity cases. The website for the Center for which can escalate quickly into five figures. Disability Access – a division of Potter (Please Continue To Page 10) 1_LBBJ_August2_2016_LBBJ 7/30/16 8:51 PM Page 10

10 Long Beach Business Journal NEWSWATCH August 2-15, 2016

Coast Auto And Americans With Disabilities Act Establishing clearly-visible, accessible steward of my neighborhood. For someone parking spaces is another, because “that’s to come over and just put something in my

(Continued From Page 9) “serial litigation” process, says former Long the one they see from outside. It makes the face . . . that’s just rotten. If there’s an issue Beach City Councilmember Evan Braude, plaintiff wonder what other violations are and we can comply, let’s just do it.” I That concern led to state legislators re- the lawyer representing Campos’ company. inside,” Braude says. vising the California codes regulating the “There were just so many of these suits Additionally, businesses awards for ADA compliance litigation. In being filed,” Braude says. “The plaintiffs can hire a certified access 2012, Senate Bill 1186 expanded the uni- were the same in many, many cases.” specialist (CASp) to inspect verse of defendants who, upon being There are a few things businesses can the property. The inspector, served with an ADA violations lawsuit, do to limit their exposure to an ADA vio- certified by the state, can can immediately petition the court for a lation lawsuit, Braude says. The first is to point out violations, certify stay of proceedings and an early evalua- make sure that the business complies with that a building is in compli- tion conference for the litigation. And the the law. There are simple things that can ance, or opine that removal of bill allows the court to reduce the mone- and must be done under the law – instal- a barrier to access is not tary award for plaintiffs if the violation is lation of hand rails and wheelchair-acces- “readily achievable, i.e., eas- corrected in a short period of time, which sible sinks in restrooms, for example – ily accomplishable and able varies based on the defendant. that business owners can do on their own, to be carried out without The change had to be done to slow the inexpensively. much difficulty or expense,” as the U.S. Department of Justice states. While such a report may offer some protection in the event of a lawsuit, the inspections are not cheap, Braude says. The thing that bugs Cam- pos the most is that he wasn’t asked to fix the violations before he was sued, he says. “Why not just go to the business and say, why don’t you make it so I can visit your business? Most places would. I would have,” Campos says. “I don’t have any problem complying with the law. Manuel Campos has owned Coast Auto for the past 14 years, an “I’ve been in business for 14 auto repair business at Pacific Coast Highway and Atlantic Av- years. I’ve always bent over enue. He was recently sued for violations associated with the Americans with Disabilities Act. Upset by the suit, he said, “For backwards to be the best busi- someone to come over and just put something in my face . . . that’s ness I can for my customers, just rotten. If there’s an issue and we can comply, let’s just do it.” number one, and to be a good (Photograph by the Business Journal’s Larry Duncan) 1_LBBJ_August2_2016_LBBJ 7/30/16 8:51 PM Page 11

August 2-15, 2016 Long Beach Business Journal 11

EARTHQUAKE INSURANCE Another Big Quake Is Coming – But Most California Residents Aren’t Prepared

I By SAMANTHA MEHLINGER Pomeroy noted. As a result, only about $7 Senior Writer billion out of the $75 billion in damages that would be caused by another North- If you live in a flood zone, you’re re- ridge quake would be insured, he ex- quired to have flood insurance. If you have plained. Thus, $68 billion in damages a home mortgage, you have to be insured would be uninsured. for fire damage. But if you live near a fault “More alarming is that there is a 75% line in California – a state known to shake chance of a 7.0 occurring somewhere in – you’re not required to have earthquake in- Southern California in the next 30 years. surance. In fact, despite certainty among And that’s three times as strong as North- scientists that another “big one” is coming, ridge,” Pomeroy said. “The [earth’s tec- most Californians don’t have earthquake tonic] plates are shifting and it’s going to insurance, according to Glenn Pomeroy, happen. I don’t think we need to live in fear CEO of the Sacramento-based California about it. We just need to be prepared.” Earthquake Authority (CEA), the state’s About 1.2 million homes in California nonprofit earthquake insurance provider. need basic retrofitting, according to “Scientists are clear – it’s certain that Pomeroy. These homes are typically built there is going to be a Northridge-sized above ground with crawl spaces on “spindly earthquake event or greater somewhere in studs” that aren’t able to hold the home in California in the next 30 years,” Pomeroy place in the event of a significant earth- said in an interview at the Business Jour- quake. “When the ground shakes, the studs nal’s offices. In fact, scientists are 99.9% wobble and the home goes off the founda- certain, he noted. tion,” he explained. “This is a common con- The 1994 Northridge quake measured struction in homes built prior to World War 6.7 on the Richter scale and caused about II. Construction codes started to get better $42 billion in overall damages, according then, but you’ll still find homes like this to AccuWeather. If that same earthquake built all the way up to 1979.” were to occur today, it would cause about The CEA offers a 20% discount on its $75 billion in damage to homes alone, policies to homeowners who retrofit. “The Pomeroy said. retrofit just involves going under the home Although most Californians live within into the crawl space, and you put in some 30 miles of an active fault, about 90% of braces or bolt them to the foundation, de- them don’t have earthquake insurance, (Please Continue To Page 12) 1_LBBJ_August2_2016_LBBJ 7/30/16 8:51 PM Page 12

12 Long Beach Business Journal NEWSWATCH August 2-15, 2016

Earthquake Insurance a story of a homeowner who canceled his Pomeroy explained. In fact, it has earthquake insurance just days before the lowered its rates five times since (Continued From Page 11) Northridge quake. He lost his home and it was founded in 1996. pending on how much room you have to all his retirement savings and was only Although the State of California work with,” Pomeroy said. “You wrap it in able to get by with the help of his adult requires all insurance providers to plywood sheathing and you’ve dramatically children, Pomeroy said. offer some form of earthquake reduced the risk of loss.” For a home on “There is also a perception that the gov- coverage, after the Northridge level ground, such a project costs about ernment will bail them out,” Pomeroy said quake insurance companies began $3,000 to $5,000, he said. “We’re working of those who don’t have earthquake insur- to pull back on their offerings. To to develop funding sources to help people ance. “That just doesn’t happen. Govern- make up the difference, the state with these costs, but those funds aren’t un- ment assistance is available, but it’s limited,” founded the CEA, a nonprofit limited,” he added. he continued. “You can apply for a FEMA earthquake insurance provider A few myths are behind Californians’ grant and that maxes out at about $32,000. with plans sold through participat- apparent reticence in buying earthquake . . . You can’t rebuild a home for that.” ing insurance companies. insurance, according to Pomeroy. One is Also a deterrent is the perception that The CEA is overseen by a five- an attitude that “it won’t happen to me,” earthquake insurance is expensive. But as member governing board, includ- he said, again emphasizing that scientific a nonprofit, the CEA’s mission is to provide ing the governor (who has statistics indicate otherwise. He recounted affordable, quality earthquake coverage, appointed a cabinet member to represent him, Pomeroy noted), the state insurance commissioner and the state treasurer as voting members. Non-voting members are the speaker of the state assembly and the chair of the state senate rules committee. To be able to offer CEA’s insurance, companies have to “buy in,” Pomeroy explained. The initial total buy-in, divvied up amongst its members, was $1 billion. That Glenn Pomeroy is CEO of the California Earthquake Author- seed capital has since grown ity, the state’s nonprofit earthquake insurance provider. Ac- cording to Pomeroy, most Californians aren’t insured for through investments and policy- earthquake damage to their homes or rental units. (Photo- holder payments to the point graph by the Business Journal’s Larry Duncan) where the CEA now has a total coverage capacity of $12 billion. “We esti- a wide range of deductible options for mate that if Northridge were to reoccur those seeking cheaper payments. Up to today our losses would be about $4 billion,” $100,000 in living expenses for displaced he said. “So we have the capacity to handle residents are covered. “It’s a whole new ball three Northridges.” game,” Pomeroy said. Since the CEA was established, it has Pomeroy was the insurance commis- lowered its rates by 55%, Pomeroy said. sioner of North Dakota in 1997, when the And as of this year, it has expanded its of- state had a horrible winter with a snow ferings to include an array of policies, from pack that just “wouldn’t melt,” he recalled. minimalistic plans to beefed-up options. When spring came, the snow melted, re- Initially, the CEA offered a policy that sulting in massive flooding. The city of insured the full cost to replace a home (not Grand Forks was entirely evacuated – the its market value), and up to $5,000 was largest evacuation of an American city covered for the contents of the home. The since the Civil War, he said. plan had a 15% deductible, meaning that “We had a mess on our hands. But it was 15% of the total replacement value for the really when I learned about the importance home had to occur in damages before the of insurance for natural catastrophes, CEA would pay a claim. But once that 15% whether it’s wildfires, earthquakes, hurri- mark was triggered, CEA would cover all canes or tornadoes or floods. It’s important the costs – the policyholder would not be to have financial protection for the home,” responsible for the deductible, Pomeroy ex- Pomeroy said of his experience in North plained. This policy also provided $1,500 Dakota – an experience that drew him to in living expenses for displaced residents. lead the CEA when he was approached in Now, in addition to the full replacement 2008. “The risk is real, and Long Beach is cost of the home, CEA offers as much as certainly aware of that from the historical $200,000 in contents coverage, and there is events that have occurred here.” I 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 13

August 2-15, 2016 REAL ESTATE QUARTERLY Long Beach Business Journal 13

Fighting For The Rights lords that would like to use the system to the private owners. So we are at a loss to best to fix what the city deemed violations, continue to operate a business plan based explain why any of these programs would she was never able to get her property out Of Property Owners on a lack of investment in their properties improve the situation we have right now, of REAP. She was forced to list the prop- – a business plan of displacement. We see which is affordable housing.” erty as a short sale, which also cost her an- (Continued From Page 1) that. We know those conditions exist – not According to Weir, another concern the other property that she had mortgaged to point, he does not feel that it does enough only here in Long Beach but nationwide.” committee has regarding REAP is that it is purchase the Echo Park location. to ensure renters’ rights and still advocates But Hutchison and Weir argue that pro- in the tenants’ and city’s best interests to Weir claims that the L.A. Building and for REAP, as well as just-cause eviction grams such as REAP and just-cause evic- keep a property in REAP and not allow vi- Safety Department, code enforcement and laws, to come to Long Beach. tion would have an extremely negative olations to be fixed. This is because tenants the housing department utilized “unfair “REAP is something we’ve been work- impact on private property owners around can enjoy a reduced rent as long as the practices under the guise of REAP” to keep ing on up to the middle of last year when the city, which would result in a decline property is not brought back up to code and Cohen’s property in REAP until she lost it. the city council elected to adopt the in affordable housing. the city receives administrative fees as long Both Hutchison and Weir feel that, aside PRHIP,” Butler said. “We took a step back “Long Beach is the most affordable as the property is in REAP. from their negative view of REAP, the city from asking for our REAP ordinance, but beach community in California, and you Weir described her first encounter with already has a similar program in PRHIP: an I still think we should be taking punitive have to ask why,” Hutchison said. “The city REAP, involving a friend who was a prop- inspection requirement to ensure suitable measures against slumlords, and I’m not certainly isn’t building affordable housing. erty owner in Echo Park. Belissa Cohen, a living conditions. But Hutchison said that sure why anyone who’s not a slumlord In the past they have had programs that former L.A. Dee Da columnist for L.A. inspections can oftentimes be subjective, wouldn’t want to defend an ordinance that were designed to do affordable housing, Weekly, lost her three-unit rental property and standards are not clear about what gets is specifically going after slumlords, but that hasn’t really happened. The afford- after it was placed in REAP, and though she written up and what doesn’t. which is a very small number of landlords able housing that we have is provided by met with numerous consultants and did her (Please Continue To Page 14) in Long Beach.” His persistent push for these programs has recently drawn the attention of property owners and managers in the city. Elaine Hutchison, president of Long Beach-based property management company Paragon Equities, and Long Beach private property owner Joani Weir have joined together in creating an action committee to “fight for property owners’ rights” and to “stop rent control.” The committee held its first meeting on Sunday, July 17. Weir said they only expected around 25 people to attend, but more than 50 showed up. Those in atten- dance included property owners, real estate agents, tenants and Kathy Jurado, a member of the League of United Latin American Citizens, who spoke during the meeting. In an e-mail invitation to members of the community to attend its meeting, the committee accused Butler of launching “a campaign against property owners that includes rent control and REAP for Long Beach.” According to Butler, Housing Long Beach’s primary concern is the availability of livable, affordable housing and keeping residents occupying units, but Hutchison says programs such as REAP actually make housing less affordable. “The city has a history of affordable housing, but when you look at major cities that have all these programs, what you find is the rents are very high,” Hutchison said. For example, Hutchison said median monthly rent is $4,850 in San Francisco, $2,670 in San Jose, $2,630 in Los Angeles and $2,250 in Seattle. While accurate, these numbers only account for median rent of two-bedroom apartments, according to apartmentlist.com, which had identical numbers for two-bedroom units, except for San Francisco which is listed at $4,650 per month. Median rent for one-bedroom units in those same cities is $500 to $1,200 less. Apartmentlist.com listed 100 major cities’ median rents and yearly rent increases, showing median rent in Long Beach has increased 8% from July of last year, second only to Colorado Springs which grew 9%. According to the site, as of July, Long Beach renters can expect the median rents of $1,430 for a one-bedroom unit and $1,950 for a two-bedroom unit – or about $700 less than Los Angeles. However, regardless of median rent, But- ler said that REAP is designed to catch the small percentage of property owners who have pushed the envelope of substandard living conditions. He said, “There are land- 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 14

14 Long Beach Business Journal REAL ESTATE QUARTERLY August 2-15, 2016

Fighting For The Rights Butler said, “Usually we are talking unit inspected and they don’t want to give Hutchison continued, saying, “A lot of about extremely substandard conditions. their name and phone number,” Weir said. people don’t recognize that REAP and just- Of Property Owners There are places that councilmembers said “That can be a very uncomfortable expe- cause eviction are the sidelines, the bud- they could hardly breathe inside the build- rience for the tenants. The spirit of PRHIP dies, of rent control, but they are and they (Continued From Page 13) ing. That’s one thing that does not come was to protect them, not get their personal will have the same effect. Any city that’s However, while it is true that some in- across in pictures.” Butler was referring to identification and go into their unit if they brought in just-cause eviction says that you spectors may be stricter than others, the Housing Long Beach taking several coun- do not want you in the unit.” have to have specific reasons why you PRHIP ordinance in section 18.30.010, cilmembers to visit “slum properties.” In the section of the ordinance regard- would be able to move a tenant out, and subsection D, states that the standards Another of the committee’s PRHIP ing inspections (18.30.120, subsection C), they can sue you and all kinds of things. I property owners must meet are those of the concerns, according to Weir, is the viola- however, it states that only 10% of units think it’s Josh’s way to ensure that he gets state that would fall under California tion of landlords’ and tenants’ rights and garages will be inspected periodi- rent control – to get these [programs] in Health and Safety Code section 17920- through forced inspection of every unit in cally. If during those inspections the in- first and then he can build on them.” 17928, which defines “substandard living a building. Weir claims that this would spector determines one or more violations Several U.S. cities, including San Diego, conditions.” A lack of hot and cold running impact the undocumented community the exist, they may inspect additional units up have approved just-cause eviction laws water, insect or rodent infestation, mold most, as personal identification is asked to 100% on the property. So, while it is without also enacting rent control policies, and structure dilapidation are some of the for upon inspection of units. possible that all units may be inspected, it but Weir claims it is still a form of rent con- substandard living conditions set forth by “That could open up human rights vio- is not the norm. trol in and of itself. She said, “I think a me- the state, which PRHIP is meant to uphold. lations if someone does not want their Though the committee does not agree diation process with difficult obstacles [for with PRHIP, it understands that the pro- landlords] equals rent control.” gram is here to stay for now. Regarding Aside from all their concerns, Hutchison Housing Long Beach still pushing for full and Weir echo Butler’s statement that the REAP, Hutchison said, “Let’s give PRHIP number of undesirable landlords in the City a chance to work. Let’s see if that can of Long Beach is very low. Hutchison re- work first before we jump into something called a council meeting several months that’s onerous and will perhaps not solve ago when 1st District Councilmember Lena the problem either.” Gonzalez asked Long Beach Development Hutchison explained that through Services Director Amy Bodek how many PRHIP if an owner has a code violation owners would be considered undesirable, on their property and does not correct that to which Bodek answered nine. violation in a timely manner, they would Weir said that she has cleaned up 19 go before the city prosecutor in court. “So buildings in Long Beach since 1999, and there’s nothing more that we need that we that if one woman could do that, Bodek don’t already have in PRHIP, and we should be able to rid the city of nine slum- won’t accept it.” lords utilizing her staff and city resources. Just-cause eviction is the other major “I would love to sit with Amy and show change Butler and Housing Long Beach her my techniques if she doesn’t know are urging the city to adopt. As it stands in them,” Weir said. “Because with all that Long Beach, renters can be evicted without staff that she has, I’m sure she could take cause. If a landlord suspects a renter is en- care of those issues with the nine land- gaging in illegal activity but cannot prove lords that are undesirable to Long Beach it, they can be evicted. Butler calls these very quickly, without implementing pro- practices into question because they can be grams that are going to chase people out abused by landlords who can and will evict of [the city].” tenants simply because they don’t like them She continued by offering the same or something they have said. courtesy to Butler, adding, “I don’t think Butler told the story of Consuelo Quin- Josh has cleaned up 19 buildings. I would tana, a Long Beach resident who was welcome him to spend a year with me and evicted from her apartment after 41 years see how the real world works on those for telling two younger tenants that she properties.” would not go out and do laundry at night Weir said she has met with Butler before because there had been shootings in the and explained these concerns to him, but area. The young tenants complained to the that he has been indoctrinated and isn’t landlord who then evicted Quintana. looking at the long-term consequences. She “I think there’s been a lot of displace- said he is dividing landlords and tenants by ment in Downtown Long Beach, and I utilizing social media, mainstream media, think a lot of it has gone very quietly,” But- intimidation, litigation, petitions and ler said. “We think the changes that are protests with professional protestors which happening in Downtown Long Beach are is a mistake and dishonest. great, but we have to figure out how to In a 9.5-minute video produced by Weir, make those changes without making them many claims are made against Butler. on the backs of our residents. Slides appear saying Butler is “intention- “We have 58% of the community who ally inflaming our community with half- rent, and we think those renters should be truth stories that are unjust and biased protected from unwarranted evictions,” against landlords, using social issues such Butler continued. “We have low-income as race, gender equality, homelessness and people of color who are a big part of the the LGBT community to further his spe- Long Beach story. We boast about our di- cial interest agendas” and that “Josh and versity, but right now we are at risk of los- Housing Long Beach are using these so- ing that diversity. It’s low-income cial elements to give them political power. communities of color who are paying This is inauthentic.” higher percentages of their income and Hutchison added, “I think he’s very who are getting caught in that vicious short-sighted. He only sees the euphoria cycle of being continuously behind on and the ego of the people that are following everything.” him at the moment. What we are is a broad- Weir, on the other hand, claims that just- based community organization that is get- cause eviction is utilized merely as a re- ting together to deal with these issues and branded form of rent control in cities like to provide more accurate information be- Boston where it already exists. She said the cause I think that’s what’s not out there. program is a catalyst for rent control to be People don’t really have the knowledge and implemented in a city because one cannot the understanding. That’s our purpose and exist for long without the other. we are here to stay.” I 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 15 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 16

16 Long Beach Business Journal REAL ESTATE QUARTERLY August 2-15, 2016

Eric Christopher, senior associate specializing in multi-family properties for INCO Commercial, said the combination of low interest rates and increasing rental rates makes investments in apartments in Long Beach “a winning equation” right now. (Photograph by the Business Jour- nal’s Larry Duncan)

its federal funds rate, which is directly Interest Rates tied to interest rates, according to Califor- (Continued From Page 1) nia Association of Realtors (CAR) Econ- omist Jordan Levine. Interest rates for tive director of research for Beacon Eco- both short-term and long-term loans and nomics, told the Business Journal. mortgages are likely to stay below 4% 127-Unit Apartment Complex In “Theoretically, interest rates should go through the first half of 2017, he said. Long Beach Sells For $35.3 Million up in the U.S. as the economy improves. Robert Camerota, senior vice president The Patio Garden Apartments at 4874 E. Los Coyotes Diag. has sold for $35.3 million or $277,953 But that assumes a lot of other things are of residential lending operations for for each of its 127 units. Institutional Property Advisors (IPA), a division of Marcus & Millichap, han- not changing, one of which is the state of Farmers & Merchants Bank, said he does- dled the transaction. Patio Gardens was built in 1958 and consists of 19 buildings on 5.87 acres uncertainty around the world,” Kleinhenz n’t expect interest rates to increase in the with amenities such as a fitness center, laundry facilities and garage parking. About 80% of the explained. “We also know that whenever next four to six months unless the U.S. units have patios or backyards. IPA executives, who represented the seller and procured a buyer, in- there are spikes in uncertainty the U.S. is starts to see overwhelmingly positive job volved in the transaction were: Executive Directors Greg Harris and Ron Harris; Senior Directors [considered] the safe haven, so a lot of Kevin Green and Joseph Grabiec; Director Paul Darrow; and Associate Michael DiSimone. Neither gains. “But I don’t anticipate that happen- the seller or buyer were identified. (Photograph provided by IPA) money goes to the safety of the U.S. treas- ing,” he added. uries and that tends to push interest rates In the short run, low interest rates are are likely to view low interest rates as an two years while everybody sorts out all down here.” The recent Brexit vote and going to boost demand for single-family opportunity to get into the housing mar- the financial implications.” uncertainties about China’s economy have homes, Levine said. “You are going to ket. “The Millennials are probably the Although increasing prices of homes been creating this dynamic in 2016, he have low rates that are going to make biggest buying market out there today, impacts housing affordability, low interest noted. mortgages more affordable for our do- consumer-wise. They are out there look- rates help make up for the cost via low Uncertainties about recent events in mestic residents – for Californians and ing and they are looking hard,” he said. monthly payments, according to Klein- Europe and China are also making it un- Angelenos,” he explained. “Their challenges are the large down pay- henz. “With low interest rates, even with likely that the Federal Reserve will raise Camerota said Millennials in particular ment and affordability.” the tight qualifying standards, at least in Home prices in Southern California principle you’ve got a larger pool of and in Long Beach have increased by 5% would-be homebuyers because of the fact year over year, according to Geoff McIn- that mortgage rates are so low,” he said. tosh, president-elect of CAR and owner “If you can find something, buy it of Long Beach’s Main Street Realtors. now,” McIntosh said. “You really will Sales prices for detached homes and con- never see lower interest rates than this. It’s dos in Long Beach have been increasing unbelievable.” steadily over the past few years thanks to Interest rates are having a similar effect low interest rates boosting demand, McIn- on the local multi-family market. Eric tosh explained. Because the inventory of Christopher, senior associate specializing homes for sale in Long Beach is so low, in multi-family properties for Long the dynamic of high demand and low sup- Beach-based INCO Commercial, said he ply is boosting sales prices. might expect to see a half-percent in- The current inventory of single-fam- crease in interest rates in 18 months. ily homes for sale in Long Beach would Low interest rates and rising rental be exhausted in 1.8 months given the rates in Long Beach make for “a really current rate of sales transactions if no good cash flow equation” for multi-fam- new homes were listed, McIntosh ex- ily investors, Christopher said. “You’ve plained. Overall, the total inventory of got rents that are going up and interest homes for sale statewide is three rates that are staying the same or actually months. “There is slightly more inven- going down. So what those two things tory in the condo market, but we’re talk- provide is the buyers being even more ag- ing about 2.1 months of inventory gressive,” he observed. “If you can raise locally. There is [essentially] nothing [rental] income and you have got an inter- for sale,” McIntosh noted. Thanks to global uncertainties, est rate like we do, it’s a winning equation McIntosh expects interest rates to re- for at least five to seven years when you main low and for these trends to con- are fixed-rate.” tinue putting pressure on sales prices. As in the single-family market, high de- “I would never have imagined rates to mand and low supply have caused sales remain this low for this long, nor could prices for local multi-family properties to I have fathomed that we would see a increase, impacting affordability. “Now, global event that would cause our mort- in this market, the high prices are kind of gage rates to drop from historic lows,” being just offset in people’s minds with he said. “But indeed we have. Brexit the [low] rates,” Christopher said. has definitely impacted the global fi- “The low rates and improving economy nancial markets. We saw an immediate are going to keep upward pressure on de- decline in mortgage rates, and the an- mand,” Camerota said of the picture for ticipation . . . is that we will continue residential real estate moving forward. to see benefits of those low interest “The question is: how do we find the sup- rates for probably another 18 months or ply to fulfill that demand?” I 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 17 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 18

18 Long Beach Business Journal REAL ESTATE QUARTERLY August 2-15, 2016 Low Vacancy Rates Mean High Prices For Commercial Real Estate

I By BRANDON RICHARDSON Staff Writer

ith several commercial W development projects in the works, Long Beach’s strong retail, office and industrial markets will only see more activity. Irvine-based property management company Sares-Regis Group currently has several projects in Douglas Park in escrow, including a 270,000-square-foot Jeff Coburn, left, and Shaun McCullough, principals at Lee & Associates Commercial Real Estate Services, stand at the site of the future Terminal at Dou- retail center by Newport Beach developer glas Park project. Located on the southwest corner of Lakewood Boulevard and Conant Street, Terminal is a four-building project (see inset) that will Burnham USA and a four-building, create more than 100,000 square feet of creative office space designed to encourage “natural light and ventilation into the workspace.” (Photograph 100,000-square-foot office project by by the Business Journal’s Larry Duncan) Long Beach developer Urbana. termined,” Lukanish said. “When the user project is side-by-side with a two-acre site – there’s 30 to 40 acres right there on the Sares-Regis also has a 470,000-square- approaches us, we look at what their build- that will be the new 40,000-square-foot coastal part of downtown that was kind of foot, three-building industrial complex out needs to be, and we quote a rate at that corporate headquarters of United Pacific a failure for years, the way it was devel- called Pacific Pointe East under construc- point. But right now we’re not quoting rates (formerly United Oil). oped just not being right. I was at the task tion. With market prices fluctuating so rap- and not selling buildings, just leasing.” When talking about development proj- force meeting a couple weeks ago, and idly, Larry Lukanish, senior vice president Nexus Development, a Santa Ana-based ects that will have a positive impact on that was very compelling.” of Sares-Regis, said he is unsure how much developer, recently broke ground on four the city’s retail market, Blair Commercial Doug Shea, president of INCO Commer- each space will lease for. acres in Douglas Park at the corner of Real Estate Vice President Brian Russell cial Realty Inc., mentioned the “roaring “When we are building new buildings, Lakewood Boulevard and Cover Street. The said, “I think the big ones are: The Pike at success” of Huntington Beach’s Pacific they go up unpriced because the market is developer is constructing a dual-branded Rainbow Harbor being converted to an City, a new retail development full of changing pretty rapidly, so it’s all to be de- hotel that will contain 241 rooms. This outlet mall – that’s huge. The Queen Mary restaurants and shops. Shea said Long 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 19

August 2-15, 2016 Long Beach Business Journal 19

Beach would have similar success if such a been 87 lease deals and 107 sales trans- center were to be built at the corner of 2nd actions in Long Beach with $60 million Street and Pacific Coast Highway in place in the pipeline. During the first quarter, of the SeaPort Marina Hotel. the average price per square foot was “You position it on the water, give a good $212.25, according to Russell. For the product, you’re going to do well,” Shea second quarter, the average jumped to said. “2nd Street is still doing well, but they $291.82 per square foot. still have the tendency to overprice – you’re Recently, Pacific Collective Real Estate seeing people come and go.” Investments bought a 5,000-square-foot re- Tilted Kilt, at the Marketplace Long tail strip center on the northwest corner of Beach, was the most recent establishment Redondo Avenue and 3rd Street for $2.33 to close, which Shea also attributes to ex- million at $466 per square foot. ceedingly high rents. “They are asking From July 1 to July 19, there have al- way too much money for that. I’d say rent ready been four transactions totaling about is averaging around $25,000 per month $4.6 million with another eight deals still right now. So you really have to put out in escrow worth $15.7 million. Russell said some numbers to be successful on that the average price per square foot spiked to and really have some high-end ownership $408.55, partially due to the 8,179-square- and management.” foot property at 5258-5272 E. 2nd St. that Shea believes that only a large, corpo- sold for $1,369 per square foot and skewed rate brand can hold down locations with the numbers. He also noted the city has such high rents and doesn’t foresee land- seen a lot of out-of-state money coming lords lowering prices. He predicts that a into the real estate market. restaurant such as BJ’s Restaurant and “Long Beach has pretty compelling com- Brewhouse or Chili’s Grill & Bar will re- mercial opportunities. It’s still cheaper than place the Tilted Kilt location. Manhattan Beach, Newport Beach and Even without completed development things like that, so we still have value.” projects, Russell describes the retail mar- However, Russell added, “With the vanish- ket in Long Beach as very robust with a ing market out there, I hope it doesn’t get strong demand. too overheated. That’s my concern.” “People must feel good about the direc- The market for office space is also doing tion the city is going because at the polls very well, according to Shaun McCul- they elected for all these taxes to go on lough, a principal at Lee & Associates for community college and sales tax and Commercial Real Estate Services. He said everything else. So they must feel reason- a lot of space downtown has begun to fill ably confident. I think that’s evident in the up, and there has been a resurgence in leasing activity that we’re seeing and the downtown with new ownership pumping sales activity.” money into existing buildings. Since March 1, Russell said there have (Please Continue To Page 20) 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 20

20 Long Beach Business Journal REAL ESTATE QUARTERLY August 2-15, 2016

cording to Lance Ryan, the senior vice president of marketing and leasing for Watson Land Company in Carson. He explained that Los Angeles County has the lowest vacancy nationally, which makes the high demand difficult to keep up with. Because of the low inventory, Long Beach and surrounding areas are seeing rising property rents, multiple bids per property and even industrial properties being leased before construction is completed. “The bottom line is there is really a lack of available space,” Ryan said. “So any user looking to gain warehouse space is going to be looking at buildings that aren’t even on the market yet, because most tenants are trying to renew [their leases] as they are re- alizing what a tight market it is. In terms of rates, we’ve seen increases in the 10% area year over year.” Ryan said the driving factor for businesses wanting to be located in the city is its adjacency to the ports of L.A. and Long Though he describes the industrial real estate market as anemic, Brandon Carrillo, left, a principal at Lee & Associates Commercial Real Estate Services, said Beach, as they are the two largest ports in it speaks to the high demand for property in Long Beach. Carrillo is pictured in front of the building at 3920 Gillman St. with Garrett Massaro, center, and the country. Another factor is the easy, ef- Dennis Ingram, both of Lee & Associates. Located in the Long Beach Business Center, the building provides 13,010 square feet of industrial space, including ficient access to much of the West Coast 18-foot clearance, a loading dock and 4,770 square feet of office space. (Photo by the Business Journal’s Larry Duncan) from the area. Lastly, Ryan said the quality you still have some holes in downtown that that in the central areas of the city, build- of life draws companies to Long Beach. It’s Prices Are Increasing need to get filled in a few buildings,” Mc- ings are selling for around $110 to $120 not just the weather, he said, but the hous- (Continued From Page 19) Cullough said. “It will be fun to see how per square foot, and leasing rates are ing and the number of highly educated em- long it will take for those to get filled up.” much lower than they are in the markets ployees who want to live and stay in “In terms of leasing, there has been some Blair Commercial Real Estate President near the airport and downtown. Southern California. decent absorption over the past six Becky Blair echoed McCullough, saying “Long Beach continues to be a very pop- “The outlook is very good. And this dy- months,” McCullough said. “If you look at that this has been a busy time for her com- ular place to do business,” Blair said. namic is going to remain in place through the opportunities where users want to start pany. She said she is really pleased with the “We’re excited that businesses are coming the end of 2016, for certain, and continue buying, there really is nothing available out amount of activity and development hap- into the area and are buying their own on into 2017,” Ryan said. there that is of substance or quality.” pening downtown and around the city. buildings, maybe 10,000 square feet or While Ryan is ever hopeful for continued Lee & Associates’ client, Urbana, “I know the national office market is less. But now we’re seeing that more atten- success, Brandon Carrillo, a principal at hopes to add quality to the market when forecast to absorb 36 million square feet tion is being paid to the leasing sector be- Lee & Associates, has several concerns at it breaks ground on a 100,000-square- of office space in 2016, down from 62 cause there is only so much supply. So I the state and national level that could po- foot, four-building project in October. million square feet in 2015,” Blair said. think some businesses are deciding to lease tentially have negative effects on the indus- The project, Terminal at Douglas Park, is “The current forecast of net office space now, instead of purchase.” trial market and real estate in general. estimated to be completed by summer is to regain some strength in 2017 at 42 Blair commended the city on its recent On the national stage, Carrillo thinks that 2017. It will include creative office million square feet. The reason that is im- work in selling off former redevelopment concerns regarding the direction of the spaces from 2,600 square feet up to portant is because we want to know how properties. It’s helping businesses focus country during an election year will force 25,000 square feet on the corner of Lake- that is going to affect the Long Beach and making more business owners want companies to slow down their growth until wood Boulevard and Conant Street. market and our market regionally.” to come into the city, not only for the it is known what economic policies are Just up the street from the development Currently, the office market vacancy workspace but because their employees going to be put in place. project, McCullough said Lee & Associ- rate in Long Beach is 15% to 18% de- will have access to market-rate and af- “After November, there’s going to be ates’ buildings at 4811 Airport Pl. and 5000 pending on which report is looked at, fordable housing, he said. people upset and concerned with where E. Spring St. are 100% and 95% leased, re- Blair said. The city is seeing a significant The city’s industrial real estate market we’re going, no matter who wins,” Carrillo spectively. Leasing prices near the airport amount of creative space being created by vacancy rate sits at less than 1%, while said. “You see how heated things are get- range from $2.25 to $2.75 per square foot. converting 10,000- to 30,000-square-foot, the national vacancy rate is just above ting in regard to the issues that are being “With the activity on the leasing front, single-purpose buildings. Blair explained 6% – the lowest it’s been in 16 years, ac- brought up by both parties, and it’s just concerning heading into this election year how businesses are going to react.” At the state level, Carrillo said he is cu- rious to see how the legalization of marijuana plays out. In November, the Adult Use of Marijuana Act will be on the ballot for approval by California residents. If approved, the recreational use of marijuana would be made legal, much like in other states such as Colorado. According to Carrillo, Lee & Associates has an office in Denver that saw drastic changes in the industrial real estate market after the legalization of recreational marijuana. He explained that in Denver they no- ticed other industries being priced out of the local economy by those in the marijuana business and the industrial market tightening even more than it already was. 3rd Street And Redondo Avenue Strip Center To Be Upgraded By New Owner “Also, with the raising of minimum A conceptual rendering depicts what the retail strip center at the northwest corner of 3rd Street and Redondo Avenue in Long Beach may look like after its wage, a lot of the conversations I’ve been new owner, Santa Monica-based Pacific Collective Real Estate, revamps it. The firm purchased the nearly 5,000-square-foot property, which formerly having with businesses are about relocat- housed a health store, a liquor store and other retail businesses, for $2.33 million, according to Rahul Paliwal, managing director. “We think it has great ing, which is concerning because those potential. We just love the neighborhood it is in and that it is a corner lot right up the way from Belmont Shore,” Paliwal told the Business Journal. “That’s are additional jobs that we will be losing why we invested in it.” The purchase was financed with a $2.25 million loan from Los Angeles-based iBorrow. Brian Good, iBorrow’s CEO, said in a statement that the center “was an attractive investment for us because it is truly urban infill property that has been underutilized for a long time.” He continued, here,” Carrillo said. “It’s just going to be “The strong demographics in the immediate surrounding area plus the pre-leasing the borrower has done made us comfortable being involved in the interesting to see how our businesses in project.”(Rendering provided by Pacific Collective Real Estate) California react.” I 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 21

August 2-15, 2016 Long Beach Business Journal 21

tributes this to stringent regulations and To Fight The long permitting processes. “I think there is an affordability crisis in our state, and it is impacting the Housing Crisis, younger generations, Millennials,” Phil Jones, managing partner at Coldwell Some Cities Banker Coastal Alliance, said. “There are so many issues in our state, and government regulation adds to it.” Are Going In May, Gov. Jerry Brown proposed new legislation to allow market-rate developments with 20% affordable housing Micro on-site, or 10% if it’s near public transit, to be approved “as of right.” This means projects that fall under these specifica- I By BRANDON RICHARDSON Staff Writer tions would be exempt from most local reviews, including environmental impact s California’s major city popu- reviews, making it easier for develop- lations steadily increase year ments to progress. The proposal is to be A voted on later this month. after year, many cities have and will continue to explore options to al- Another move to combat the housing leviate the housing crisis in the state. crisis was recently made with several pro- Long Beach is ranked the seventh largest posals to amend state zoning laws to city in California, with a population near- make it easier for residents to build small ing 485,000 – an increase of more than units on their properties in their garages, 3,000 residents (or 0.7%) from January as extensions of their homes or as free- 2015 to January 2016, according to a May standing structures. 1 report by the California Department of However, some cities in the state, includ- Finance Demographic Research Unit. ing San Francisco, San Diego and most re- These numbers are similar to other major cently Santa Monica, are already utilizing cities in the state: Los Angeles grew to a method that could be a solution to certain over 4 million by adding 1.3%, San Fran- cities housing problems: micro-units. cisco grew 1.1%, San Diego 0.9% and The simplest definition of a micro- Santa Monica 0.6%. unit is a very small studio apartment. In a June 14 post, the California Depart- Where studios usually range from 300 to ment of Housing and Community Devel- 450 square feet, micro-units typically opment said “the state has only built 45% range from 200 to 300 square feet, of the units estimated to be needed to ac- sometimes less. commodate growth.” The department at- (Please Continue To Page 22) 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 22

22 Long Beach Business Journal REAL ESTATE QUARTERLY August 2-15, 2016

David Baker Architects of San Francisco recently completed a micro-unit condominium complex at 388 Fulton St. in the Hayes Valley neighborhood of San Francisco. Because of city requirements, the property is 50% micro-units and 50% two-bedroom units. The micro units range from 320 to 370 square feet and sell for $1,700 per square foot. According to Baker, Natural light, com- pact kitchen space and other space-saving storage features alleviate some of the feeling of living in a confined space. (Photos and floor plan provided by the David Baker Architects)

Micro Units Baker said he read a recent study that on the city and its residents. In Long behaviors,” Senden said. “Bike ridership showed people living in dense, urban Beach and other major cities, the top con- has gone way up in Long Beach partially (Continued From Page 21) cities were staying in micro-units longer cern is parking. because it is getting more difficult to use a than standard apartments. He said this is “We’re a parking-impacted city, and it’s car. That is social engineering.” “It’s just a place to live,” David Baker, because in these types of cities, people a severe problem,” Jones said. “I think Baker added, “The question is, what do founder and principal of David Baker Ar- can use the city as their living room [micro-units] would really exacerbate that parking and traffic have to do with quality chitects in San Francisco, told the Busi- through parks and corner cafes that are problem and put more stress on our infra- of life? If your idea is that if you have min- ness Journal. “I think we have a very easily accessible by foot or public trans- structure.” imal congestion and lots of parking then skewed viewpoint here in the United portation. In San Francisco, a city nearly five that’s a good place to live, good luck. Move States where we consider a 350-square- With Long Beach’s economic growth, square miles smaller than Long Beach with to a suburb somewhere.” foot unit to be the living-equivalent of several large development projects that almost double the population, there are no Another zoning hurdle for micro-units killing baby seals or something. But in promise to continue that growth and its in- minimum parking requirements as there are in Long Beach is that the current down- other places, that would be considered a creasing population, some in the city say it in Long Beach. In fact, the Bay city has town plan requires units to be a minimum pretty good-sized unit.” is time we look at some options. parking maximums that act as a cap for the of 600 square feet, however, 15% of units Baker reminisced about staying in a Coldwell Banker’s Jones said the Long number of parking spaces allowed and en- can be as small as 450 square feet if a re- tiny, 150-square-foot unit in Japan, saying Beach housing market is constricted by ables developers to omit parking from their quest is approved. But 450 square feet that it was fine. He also explained that in high demand and a lack of inventory, plans entirely, which Baker says is a very still does not qualify as a micro-unit. San Francisco there are thousands of units which leads to affordability issues. “It’s progressive parking policy in the U.S. Going smaller would require a change in as low as 50 square feet that sometimes pretty apparent that we need to have alter- “I’m like a progressive capitalist,” Baker policy and the downtown plan by a city have a mother and child living there. native options,” he said. “Mini homes and said. “I don’t think you should force the council directive. Baker views these living conditions as prefab homes are very small living quar- private sector to provide something like a A major concern is that if the city were preferable to adding to our state’s home- ters, but people can have a roof over their parking space. When you do that, you sort to implement these changes and begin lessness population because living spaces head and a place to call home.” of kill the economic vitality of your city. building micro-units, what would happen are “too small.” However, acknowledging the need for And you’ll never crawl out of that hole – if the fad died out. The buildings would In fact, Baker said that a major cause of alternative options is easier than creating you’re just digging it deeper.” remain for many years, but it may become the homelessness crisis in the state was them for residents. David Senden, a prin- Baker described a market-rate building impossible to keep long-term tenants. the tearing down of micro-units in the cipal at L.A.-based KTGY Architecture + his firm recently completed at 388 Fulton “I’m a firm believer that people will rent past because they were “bad places to Planning, described the construction of St. in San Francisco’s Hayes Valley neigh- as much space as they can afford in the lo- live,” but the units were not replaced with micro-units as being slightly more expen- borhood. The building is 50% micro-units cation that is most appealing for them,” additional affordable housing. sive than traditional units. and 50% two-bedroom units because of Senden said. “I’m not sure if Long Beach From a developer’s standpoint, they Senden explained that this is because in city requirements when working with is that location or not. There might be a might pursue micro-units because they a building full of micro-units, there would micro-units, according to Baker. For the small market for [micro-units], but I don’t are unique in many markets, have no be twice as many kitchens and bathrooms 70 condominiums for sale at $1,700 per think it would be a deep pool of people that competition and will yield a higher rent in the same amount of space as a building square foot, zero parking spaces were would choose that living arrangement in per square foot since more units would fit full of traditional units. However, he said, provided. Long Beach. Not yet.” in the building. “You would probably be able to rent those “It’s right by BART [Bay Area Rapid Despite the challenges and opposition to Baker explained that in the 1980s de- two units for a greater sum than the one Transit], it’s got a bike share, and there are micro-units, Baker maintains that they are velopers in San Diego built micro-units traditional unit.” Ubers and Lyfts all over the place. Nobody a great way to produce an abundance of the as a replacement for defunct single room Baker, on the other hand, said that really has the excuse to think that parking most affordable housing. He cited regula- occupancy buildings (SROs). The city be- micro-units lend themselves well to mod- is totally, absolutely essential now that you tions, such as minimum kitchen size, that lieved that nonprofits would utilize the ular construction which helps keep cost can summon a car from your phone.” make it illegal to create efficient designs, units as affordable housing. down. Modular construction is a form of In Long Beach, however, current zoning thus allowing cities to hinder innovation. “They built these replacement SROs prefabricating homes or buildings off-site laws downtown require one parking space “I think what people should always from 120 to 300 square feet, and it and then putting the pieces together at the per unit for new buildings. Some city offi- keep in mind is just because you wouldn’t turned out that they were very popular as construction site. In the case of micro- cials question the feasibility of implement- want to live there or it wouldn’t suit your market-rate rental housing. Nobody was units, each unit can be constructed indi- ing such progressive parking reform as San lifestyle, doesn’t mean there isn’t a seg- doing ownership because it’s more psy- vidually and then stacked and connected Francisco, considering many Long Beach ment of the market that needs to be ad- chological than rental. Rental is just, can to form a complex with the same safety residents already disapprove of the amount dressed,” he said. “So I would like to see you afford the apartment and can you standards as a traditional building. of parking availability. people not get all moral about it. Let peo- live there? With ownership there is, ‘Will Other aspects that city officials must “Really, the infrastructure needs to catch ple be innovative. Let them be creative, I be able to sell it in the future?’ or ‘Are examine to even consider implementing up. But from a macro standpoint, a planner and don’t get hung up on your cultural there comps?’” micro-units is the impact they might have would say this pain is necessary to change preconceptions.” I 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 23

August 2-15, 2016 THE BUSINESS OF WEDDINGS Long Beach Business Journal 23

An Indian bride who recently married at the Hyatt Regency Long Beach is adorned with bright colors and jewelry, including bracelets bearing her name as well as her spouse’s. Her hands are painted with henna, as is customary in both Hindu and Muslim wedding ceremonies. (Photograph by Greycard Photography) From Chuppahs To Henna: Wedding Customs From Around The World I By SAMANTHA MEHLINGER ular at the Hyatt. The lagoon is ideal for Senior Writer a part of Hindu weddings called the baraat – a processional where the groom In an international city, it should come and his family walk to meet the bride and as no surprise that Long Beach’s wedding her family. The groom typically rides in a venues regularly host ceremonies and par- rickshaw or on the back of a horse or ele- ties for families of diverse backgrounds. phant, Rathband said. Some venues in the area so often host “Most of the [South Asian] cultures are weddings for couples from international very colorful with their dress,” Rathband cultures and religions that they now spe- shared. “Depending on which culture cialize in these events. The Business Jour- you’re speaking of, the dress is not white. nal spoke with event organizers, managers Typically white is not used because it is and wedding professionals from some of usually reflective of when someone these venues to get a glimpse into various passes away.” unique traditions associated with our Indian weddings have a number of cer- area’s diverse cultures. emonies and celebrations. They tradition- With ample space, ballrooms and an ad- ally last three to four days, although some jacent lagoon, the Hyatt Regency Long couples prefer to opt for a one-day event Beach has been a popular spot for South as is customary in America, according to Asian weddings – often large both in scale Rathband. and the number of guests – for more than Both Hindu and Muslim weddings feature pre-wedding ceremonies involving 25 years, according to Siobhan Rathband, henna – a dye used to temporarily tattoo senior catering manager for the hotel. The the skin with intricate designs. According Hyatt frequently hosts Indian weddings, to The Emily Post Institute, the Hindu which primarily involve traditions and cer- Mehndi ceremony is held the day prior to emonies associated with the Hindu, Sikh the wedding to adorn the bride with henna and Muslim faiths, she explained. on her arms, hands, legs and feet. In the “The South Asian community reached Muslim tradition, henna parties for the out to the hotel initially, asking if we could bride are held with her close female accommodate weddings that are large- friends and family members days before scale,” Rathband said. “Back then, 25 years the wedding. ago, they were much larger scale – a mini- The Earl Burns Miller Japanese Garden mum of 500 people,” she recalled. “Some- on the campus of California State Univer- times up to 700 and 800. Nowadays, they sity, Long Beach is also a popular wedding are downscaled quite a bit. They fall within spot for people from Asian cultures, accord- about 300 to 500 now.” ing to Jeanette Schelin, the venue director. The Hyatt’s location at Rainbow La- “The garden, I feel, is common ground. It goon, which features a winding path and Some African American couples still practice the tradition of jumping the broom at their weddings, is a great place for people from around the bridges over the water, is one of the rea- an African tradition that became customary in America during the time of slavery as a means to world to feel like they belong,” she said. sons Indian weddings have become pop- make a marriage official. (Please Continue To Page 24) 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 24

24 Long Beach Business Journal THE BUSINESS OF WEDDINGS August 2-15, 2016

Both Muslim and Hindu wedding traditions involve ceremonies to adorn a bride’s feet, legs, arms and hands with henna, a dye that creates a temporary tattoo. (Photographs by Greycard Photography)

In Jewish weddings, the groom customarily ends the wedding ceremony by stomping on a glass.

adding that Long Beach is home to the which typically involve an entire day of that both pre-ceremony and pre-exchange Wedding Customs largest population of Cambodians outside drinking. Oftentimes, every table has its of vows, or we have actually seen it be in- (Continued From Page 23) of Cambodia. A recent Cambodian cere- own bottle of liquor, he noted. corporated in the exchange of vows.” mony was “beautiful and symbolic,” she Chinese and Japanese weddings are also The garden, The Grand and the Carson “A lot of the Asian cultures feel right at said, and involved multiple changes of common in Long Beach and are often held Community Center in the City of Carson all home at the garden, and we are able to ac- dress by the bride. in the Japanese Garden, according to Sche- often host Jewish weddings, which can dif- commodate their traditions,” Schelin said. Dan D’Sa, director of food and beverage lin. “With our Japanese and Chinese cou- fer depending on the denomination – Ortho- Recently, the garden has hosted many for The Grand Long Beach, said his venue ples, we frequently incorporate a tea dox, Reform or Conservative. The Grand, Cambodian weddings, Schelin noted, also often hosts Cambodian weddings, ceremony,” she said. “We accommodate which also provides catering services for 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 25

August 2-15, 2016 Long Beach Business Journal 25

the Carson Center, is located directly across and are exchanged at special occasions from the Alpert Jewish Community Center such as weddings and funerals. of Long Beach and often partners with the In some African American ceremonies, center for weddings, D’Sa said. “We work couples “jump the broom” – the bride and with outside catering vendors who are spe- groom hold hands and jump over a broom cific to the Jewish community and what to symbolize their union – according to their needs are,” he said. Ramirez and Schelin. “My understanding is One of the most memorable weddings that it goes to the experience of African Regina Ramirez, general manager of the Americans during the slave period when they Carson Community Center, has seen at the were so limited in what they were able to do, center was for an Orthodox Jewish couple, and so the household object of the broom she recalled. “They had the wedding on our worked its way into the tradition,” Schelin patio at sunset, and they had the chuppah said. Academic texts indicate this tradition out,” she said, referring to the four-posted originated in Ghana and was brought to the canopy beneath which Jewish couples tradi- U.S. by slaves from that region. tionally are married. As is custom, the groom Some of the unique traditions associated stomped on a glass to mark the end of the with specific cultures are spreading be- ceremony. “It was a beautiful ceremony and yond those cultures, Schelin observed. “In the reception was very festive,” she said. the very diverse community we have, peo- At the reception, a partition divided the ple become intrigued by things they see at male and female guests – another Orthodox their friends’ weddings, and they start to tradition – Ramirez said. The bride and adapt them for their own purposes,” she said. groom are each lifted on chairs by guests “Right now, if you look in bridal maga- in celebration, a sight Ramirez said she re- zines, you see these structures that are draped members vividly. “Seeing the bride and in fabric and flowers are very popular. And groom lifted up on chairs, dancing around while it might have started out as a traditional – that’s stunning,” she reflected. chuppah or what Indian ceremonies call the The Carson Community Center also mandap, now you’ll find folks who are not frequently hosts Samoan weddings be- from those traditional cultures who also want cause of the city’s large Samoan commu- that piece of architecture,” she explained. nity, according to Ramirez. A key D’Sa said that at The Grand he and his component of Samoan wedding cere- staff have taken note of some popular and monies is the presentation of finely successful traditions in cultural weddings woven mats between the bride’s and and now sometimes recommend them to groom’s families, she said. “The fine mats couples outside of those traditions. “What in the Samoan community are very sacred we do is just share information on what has and they are very meaningful,” she ex- happened with other cultural weddings and plained. According to the National Park what was successful and where there may Service, these mats are known as ‘ie tōga have been some stumbles,” he said. I 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 26

26 Long Beach Business Journal THE BUSINESS OF WEDDINGS August 2-15, 2016

A bride, Janet Smyser circa the early A bride, circa 1968. A bride, circa 1976. Ted Knight and Mary Tyler Moore on A bride, circa the 2000s. 1900s. (Photograph by Frank R. Snyder) (Photograph by Emily Walker) (Photograph by Czajko) “The Mary Tyler Moore Show,” 1977. Wedding Traditions Through The Generations

I By SAMANTHA MEHLINGER to wear two dresses on the big day – a Senior Writer longer one for the ceremony, a shorter one to dance in at the reception. If you were to compare wedding photos Wearing white is also a tradition that is, of the past three generations, the differ- for some brides, on its way out. “A lot of ences would likely be stark. From the wed- color has been on the bridal fashion week ding venue to the design of the gown to runways in past seasons, and now we’re re- who is in the wedding party, traditions have ally seeing it stick with brides across the evolved greatly over the years, although country,” Jacobson said. “We have seen lots some people still opt for the old way of of ombre tones, blush or gray, floral pat- doing things. terns. . . . It’s definitely a trend I think is According to representatives from The here to stay. A lot of brides still wear white Emily Post Institute and The Knot, since or ivory, but it’s not becoming so crazy to the early 1900s the big day has shifted from wear color now down the aisle.” a simplistic affair – typically held in homes There has also been a shake-up in recent or houses of worship – to ultra-personal- years of who is included as bridesmaids and ized, less formal and often very detailed groomsmen, according to Jacobson. “Usu- (and expensive) parties. ally it was men on one side, women on the “Typically, ceremonies were held in a other,” she said. Now, many brides incorpo- church, and the reception was then held right rate their male friends into their wedding afterwards at somebody’s home,” Lizzie Post, parties, and grooms include their female great-great-granddaughter of famed etiquette A bride in May of this year. (Photograph by Caught In The Moment Photography) friends in theirs, she explained. Also, while expert Emily Post, told the Business Journal. married in historic homes and farms, with many couples meeting up with guests traditionally there were matching numbers “My grandmother got married in a living wineries, campgrounds, breweries and mu- at another location after the reception for of people in the groom’s and bride’s parties, room.” Post is an author and a spokesperson seums,” she said. “If the couple are sports drinks or an activity like karaoke, Post noted. now couples simply include whomever they for The Emily Post Institute, which holds fans, they might want to get married at a The wedding dress – one of the most please. “People are trying not to stress about seminars and trainings built on the original stadium. If they love movie theaters, they talked about aspects of any wedding – has that as much,” Jacobson said. Post’s principles of good manners. might want to get married at a historic the- also evolved over the generations from sim- “Another thing we have seen change from “I think there was a period, especially ater in their area. The sky is really the limit plistic styles to today’s endless array of years ago are finances,” Jacobson said. “The during war times or right after wars, where with personalization.” forms, colors and fashions. “We have gone traditions of who pays for what – who pays it was a lot more common to have a less As venues have changed, so have wed- through a lot of different style changes – for the ceremony and reception, that’s kind frivolous wedding and to really just make ding vows. “Years ago, vows were very by tons of them over the decades,” Post said. of all out the window now.” Traditionally, the the wedding actually happen,” Post said. “It the book, especially if you were getting “A bride used to get married in kind of bride’s family pays for the wedding. Nowa- was nice and it was simple, but it was not married in a church or another house of what was her best dress, whatever color days, sometimes both families contribute, or over the top. It was nothing like what you worship,” Jacobson said. “You would meet that may have been, whatever style it may the bride and groom pay some and one fam- see on TLC or any of these channels that with whomever your officiant was and kind have been. It wasn’t until Queen Victoria ily pays the rest, or the engaged couple pays do wedding shows.” Gradually, a shift oc- of flesh it out with them,” she explained. that we got a trend of white dresses.” for the whole affair, she explained. In 2015, curred where more receptions began to be “But now, couples are having their friends While in days past, many women wore 12% of couples paid for their weddings en- held in hotels, Post noted. marry them, and the whole ceremony is a their mothers’ or grandmothers’ wedding tirely by themselves, she noted. Ivy Jacobson, editor for The Knot, a little bit more personalized. People more dresses as their own, this tradition has Post said engaged couples should meet wedding magazine and online planning often than not are writing their vows, and largely been abandoned, Jacobson said. with their families to discuss finances early guide, pointed out that venues for modern- they don’t have to say the same thing or re- In the 1940s and 1950s, lace became a on. “Now we say it’s really important to day weddings vary greatly. “Couples are peat themselves.” popular fabric for wedding dresses, Jacob- have an open and candid conversation breaking more traditions,” she said. “We While the format of receptions – a meal, son noted. Post pointed out that ball gown- about what people are willing, able or ex- have been seeing a shift in traditional cere- dancing, a cake and perhaps cocktails – has- style dresses also came into vogue. In the pected to contribute,” she said. mony and reception sites.” n’t changed much, those elements have 1980s, for example, Princess Diana wore a “To me, it’s fascinating how obsessed While many people still choose to be evolved in some ways, according to Post. voluminous ball gown in her highly publi- American culture has become with the wed- wed in churches or houses of worship, Dancing, for example, was mostly restricted cized marriage to Prince Charles. ding,” Post reflected. “Whereas in past gen- many others are opting for less conven- to partners dancing to formal music in the “Nowadays people don’t feel as obligated erations the wedding was definitely tional venues, according to Jacobson. The days of Emily Post. “In my grandmother’s to wear a white ball gown-type dress,” Post important, the actual act of getting married general rule now, she said, is “if a place can day, it was still probably more formal but a said. “You see a lot of sheath dresses, a lot seemed more prominent than the wedding it- hold people and you can have caterers there mix of slow songs and kind of more con- of low-cut dresses. You see short, knee- self. Nowadays, we put a lot more pressure and a liquor license, you can consider it.” temporary dancing songs,” Post said. “And length dresses. I think we sort of opened up and expectation on the event, rather than what Nowadays, the venue is more related to then nowadays, I think it’s mostly contem- our scope of what makes a woman feel her the event is about.” She concluded, “Mostly, creating a personal or thematic atmosphere, porary dance songs and a few slow songs.” most beautiful on her big day.” it is the sentiment we want to make sure Jacobson explained. “People want to get After-parties are also quite common now, Jacobson noted that some women choose stays alive when it comes to weddings.” I 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 27 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 28

28 Long Beach Business Journal THE BUSINESS OF WEDDINGS August 2-15, 2016

cause of their own lifestyles – for example, if they are divers – or because they want to Intimate hold their wedding somewhere out of the box, she noted. Long Beach’s other major attraction, the Queen Mary, is another local venue that Wedding often hosts large weddings. But according to Kacie Rattigan, Queen Mary wedding planner, couples are often surprised that the Venues In ship has numerous spots for intimate ceremonies and receptions. “I think a lot of guests and tourists would be surprised at how many spaces we have Long Beach where we can accommodate a smaller group,” Rattigan said. “In my opinion, the I By SAMANTHA MEHLINGER most beautiful is the wheelhouse, where we Senior Writer can accommodate just a few guests. It’s pretty much standing room only.” The wheel- Although a 2016 survey by the service The green gates of the Rancho Los Cerritos Historic Site lead in to the venue’s inner courtyard, which referral website Thumbtack found most can accommodate both a wedding ceremony and reception for small parties. (Photograph by the Busi- house is where captains and crew steered the Californians opt for midsized weddings ness Journal’s Larry Duncan) historic vessel in its oceangoing days. The re- with 50 to 100 guests, intimate weddings “We have our rooftop veranda that Great Hall for intimate wedding parties stored room, which features brass railings are appealing for many couples, not only opened in April of last year. We have done because if “you have less than 100 peo- and details, holds up to 20 people. because of the cost savings they represent weddings for about 100 up there, but usu- ple, it sort of feels like nobody came to Another indoor spot for intimate wed- but also for the opportunity to share their ally they are a lot smaller,” Noriega said, your party,” there are other spots in the dings is the Queen Mary’s chapel, which is special day with people they are close to. estimating that typical weddings there av- Aquarium for couples who want an decked out in Art Deco style with dark In Long Beach, there are a number of ven- erage 25 to 65 people. The rooftop veranda “under the sea” vibe for their small af- woods and artwork, Rattigan said. The ues suited for small weddings, from a wa- overlooks Rainbow Harbor and the Queen fairs. The reef exhibit in the upstairs chapel is the ship’s most traditional wed- terside boutique hotel to historic sites and Mary, making it a scenic location for a Tropical Pacific Gallery is one such spot, ding space, with rows of seating and an even the Aquarium of the Pacific. wedding, she said. which can seat as many as 80 people. “It altar. “It is very intimate and very private,” Some of these venues typically host large Unlike other spaces with the Aquarium, has got the beautiful 350,000 gallon tank she noted, explaining that the chapel is not weddings, like the Aquarium. This water- the veranda is available for weddings dur- as your backdrop, so people feel like they open to the public. front attraction often hosts weddings of ing normal operating hours because it is are really in the Aquarium,” Noriega said. The Queen Mary’s various outdoor more than 100 people in its Great Hall, closed off from the rest of the attraction, For parties of up to 30 people, dinner re- spaces and decks are its most popular spots which features a floor to ceiling tank of sea Noriega pointed out. “It’s nice because we ceptions can be held in the same gallery’s for weddings for the views they offer, ac- life and life-size replicas of whales hanging can do daytime events up there and close tropical tunnel, allowing guests to be sur- cording to Rattigan. The most intimate of from the ceiling. But the venue also has it to the public,” she said. “So it gives us rounded by water and aquatic life. “People these is the well deck, which is located on smaller spaces suited to intimate weddings, a chance for those people who want to do feel like they’re underwater,” Noriega said the bow of the ship. The space accommo- according to Erica Noriega, special events an 11 a.m. wedding or a 2 p.m. wedding.” of the space. Couples who choose to marry dates up to 50 guests and has views of the manager at the Aquarium. While Noriega doesn’t recommend the at the Aquarium are often drawn to it be- Long Beach skyline. 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 29

August 2-15, 2016 THE BUSINESS OF WEDDINGS Long Beach Business Journal 29

Some guests who hold small weddings are looking at the sun porch of the adobe and on the Queen Mary still choose to marry in the water lily pond. And it is surrounded by areas able to accommodate larger parties, the high walls of the adobe itself.” Rattigan noted. The gazebo on the stern of On the bluffs just past Downtown Long the ship is one such place, she said. Beach, the Long Beach Museum of Art of- No matter where a couple wants to get fers another historic setting – its Elizabeth married onboard the ship, Rattigan and the Millbank Anderson House was built in ship’s staff are happy to accommodate, she 1911 – with waterfront views. Although the said. “If you just want something small and museum is able to accommodate large wed- you just want to do maybe a small dinner dings thanks to its two buildings, lawn and afterward, we can accommodate the space patio, Director Ron Nelson said it is often where you can have an intimate ceremony, host to intimate affairs. but then have an upscale beautiful dinner “We have large and small weddings,” overlooking the water at Sir Winston’s,” she Nelson said. “One of the things that’s said. The Queen Mary’s wedding vendors unique about this particular place – and are willing to cater to smaller wedding people say it over and over – is that even groups, she added. though there could be a thousand people Located near the Queen Mary at here, there is still an individual sense of Queensway Bay is the Hotel Maya, a Dou- The restored wheelhouse on the Queen Mary provides a unique backdrop for an intimate wedding, space and grandeur,” Nelson said. “It has bleTree by Hilton hotel, that also offers a with standing room for 20 people or fewer. (Photograph provided by the Queen Mary) that inspiration to it. And when you’re here number of options for couples planning in- is able to accommodate up to about 60 utive director, said. The historic adobe by yourself, it has that same feeling,” he timate weddings. One of the most popular people. home, built in 1844, serves as the backdrop continued, explaining that smaller wed- of these is the hotel’s Jardin De Palmeras – Another spot at the hotel for small wed- for weddings, which are held outside in the dings do not take away from the museum’s that’s Spanish for “palm garden” – an out- dings is the Esplanade – an outdoor patio inner courtyard or the backyard. feeling of grandeur. door space with “a waterfall and lush, trop- with views of the Long Beach skyline that is For intimate weddings, the courtyard – Smaller wedding groups, particularly in ical foliage,” as well as fire pits and tiki covered by a 42-foot diameter umbrella. which features an Asian pond with water the winter, are often held in the Anderson torches, Lisa Duncan, director of catering “You’re right on the water looking back on lilies – is a good spot for the ceremony, ac- House, Nelson said. We have done wed- for the Hotel Maya, said. to the city. It’s a beautiful spot,” Duncan said. cording to Bruesehoff. “A lot of people use dings there for 30 people. It’s possible to do “The thing about the Jardin space is most “Again, we have done ceremonies and recep- the inner courtyard for the wedding cere- a cocktail outside or a service outside, and of our couples don’t really bring in any ad- tions in that space underneath the umbrella.” mony, and then they will move to the back- then come in and eat,” he said. ditional decor because it’s so green, lush Duncan noted that the Hotel Maya is in- yard for the reception,” she said. If it’s a The smallest wedding the museum has and tropical already,” Duncan explained. creasingly hosting more intimate weddings particularly small wedding, both the cere- hosted recently was for just 12 people. “It is also right on the water. So you get this and that they “seem to be a trend.” mony and reception may be held in the “Something I will say of our staff, if you fantastic water view and you still have this For those looking for historic charm, the courtyard, she noted. want to book a wedding for Saturday night really nice, intimate setting,” she added. Rancho Los Cerritos Historic Site located “You’re at the adobe, and you walk in in the middle of the summer – a prime wed- Couples who have smaller weddings in near Bixby Knolls also has a space suited through the big main green gates. And it is ding night – and it’s only going to be 12 the Jardin typically choose to have both for intimate weddings. “There aren’t a lot this really picturesque, small lawn hedged people, it’s your night. It’s your 12 people,” the ceremony and reception in the space, of historic sites where you can get mar- with all kinds of different flower beds,” Nelson said. “You’re going to get the same Duncan said. For these affairs, the garden ried,” Alison Bruesehoff, the rancho’s exec- Bruesehoff said of the courtyard. “Then you attention to detail.” I 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 30

30 Long Beach Business Journal IN THE NEWS August 2-15, 2016

Liberation Brewing Company To Open In Bixby Knolls Later This Year Blair Cohn, executive director of the Bixby Knolls Business Improvement Association, right, welcomes Dan Regan and Liberation Brewing Company to Long Beach. Located at 3630 Atlantic Ave., Liberation is the brainchild of Regan, who spent 20 years touring the world as a trombone player for the ska punk band Reel Big Fish. Regan left the band in 2013 and decided to delve deeper into his love of craft beers. He partnered with home brewer Eric McLaughlin, winner of various medals for his home brew, including a 2014 World Beer Cup silver medal for Saison Noir, made while brewing for Ohana Brewing Company in Los Angeles. “We hope to make it a haven for all of my friends who are touring and coming through town. We’re not going to have a live performance permit, at least not at first, but we may work with the city and have select events, maybe music on First Fridays or a summer program. Music informs everything that I do and we are hoping to expand into a safe haven for local bands.” Formerly a 99 Cents Only Store, the location totals 4,800 square feet with 3,000 square feet dedicated to the five- barrel brewing system and 750 square feet for a tasting room where pints and growlers will be sold to the public. With no restaurant aspect associated with the brewery, Regan said they are focusing on the beer and distributing to local bars to get their name out. “The Long Beach identity has informed all of our creative process in putting the brewery together,” Regan said. “We really feel like Long Beach needs its own beer label and we’re hoping to be it.” According to Regan, he hopes to open before the end of the year. (Photo by the Business Journal’s Larry Duncan)

Creative Corridor Challenge Injects Public Art Into North Long Beach Vice Mayor and 9th District Councilmember Rex Richardson’s office launched the Creative Corridor Challenge in February to erect seven murals by local artists in neighborhoods around North Long Beach. The murals add color and vibrancy to once blank or blighted walls, helping make the areas more family- and pedestrian-friendly. This mural by Maria “Mer” Young is located on Artesia Boulevard just east of Atlantic Avenue. Richardson is pictured with the project team, from left: Katie Phillips of Squeeze Art Collective, Christian Cambridge, 9th District field deputy, and April Economides of the Arts Council for Long Beach. A bus tour took place Saturday, July 30, allowing approximately 60 community members to see all of the murals and meet the artists. For a map of the murals and more information, visit www.facebook.com/rexrichardsonlb/. (Photograph by the Business Journal’s Larry

LBS Financial Employees, Families And Friends Volunteered Their Time To Clean Up City’s Coastline More than 100 LBS Financial Credit Union employees, joined by their families and friends, recently completed 200-plus volunteer hours in cleaning up part of Long Beach’s coastline. The clean up occurred between 14th Place and 19th Place below Ocean Boulevard, a stretch “adopted” by LBS Financial in 2011 as part of the city’s “Adopt-A-Beach” program. Clean ups were held in March, May and July, and included the sand, bike path and a parking lot. LBS Financial serves more than 120,000 members with six branch office locations, including Long Beach. It was founded in 1935 as the Long Beach School District Employees Federal Credit Union. The photograph provided by LBS Financial shows the July clean-up team. 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 31

August 2-15, 2016 IN THE NEWS Long Beach Business Journal 31

Big E Pizza Celebrating Its 30th Anniversary Jimmy Eleopolous started up his pizza joint, Big E Pizza, when he was just 19 years old. In August, he is celebrating his business’s 30th anniversary, and he is planning a yet-to-be-announced celebration coming up in September. Eleopolous’s parents had owned a restaurant when he was growing up, and at 19 he decided to get into the industry himself, opening Big E Pizza at 3225 E. Pacific Coast Hwy. in Signal Hill, where it is still located today. “It has been a great 30 years,” he told the Business Journal. “I have employees who still work for me 30 years later.” Most of his employees have been working for him at least 15 years, he noted. Two years ago, he expanded the business, opening an adjacent banquet room. “The dining room is packed with parties and dinner rushes and late night eating,” he said, explaining that the restaurant is open until 1 a.m. Sundays through Thursdays and until 3 a.m. on week- ends. Big E also delivers through those hours, he noted. “We’re very blessed. It’s a busy store,” he said. For more information, visit www.bigepizza.com or call 562/498-8788. (Photographs by the Business Journal’s Larry Duncan)

Nino’s Italian Restaurant Bidding Farewell After 58 Years . . . Last Day Is August 12 Nino’s Italian Restaurant, which has been serving up a little bit of Italy in Long Beach for 58 years, is closing its doors on August 12. The restaurant, which was founded by Vincenzo “Nino” Cristiano and wife Inge on July 31, 1958, has been a fixture in Bixby Knolls at 3858 Atlantic Ave. since it first opened its doors. Daughter Carina Cristiano said the family made the decision to retire to spend more time together. Her mother, a German immigrant, is 82, she said, and her father, who hailed from Italy, passed away two years ago at the age of 90. Carina said she took her first steps at the restaurant when she was two years old. Over the years, her parents, Carina and her siblings, Nino and Mike, grew the restaurant from 16 tables to two large dining rooms, a banquet room, a cocktail bar, patio dining and catering services. Much of the restaurant’s staff has been with the family for years – including the chefs, who have been at Nino’s for four decades, she said. “It’s not like a regular restaurant because everybody knows one another,” she reflected. “Our customers have been coming for so long, so we see their families grow up and they’ve seen us grow up. We share stories.” In an e-mailed statement, Inge said that she would miss seeing all the friends she has grown accustomed to visiting with on a weekly basis. “It has been a wonderful 58 years, but I agree with my children, it is time to close our doors. Small business today is so much more work, and it is time for us to all get a break,” she said. The family is selling the property, which includes an adjoining parking lot, pictured bottom left. For in- quiries, call Mike Cristiano at 562/889-6852. Pictured, from left, are: Nino, Mike, Inge and Carina Cristiano. Below, Inge is pictured by a photograph of her late husband, Vincenzo. (Pho- tographs by the Business Jour- nal’s Larry Duncan) 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 32

32 Long Beach Business Journal PERSPECTIVES August 2-15, 2016

Analysis Of Long Beach a role in the vote. For example, the same two zip codes account for the highest home Sales Tax Increase Sales Tax Measure ownership rates in the city – 77.8% in the Measure A Results By City Council District 90808 zip code and 65.7% in 90815. City- (Continued From Page 1) wide, home ownership is one of the lowest tinct line seems to have been drawn in the in the country at barely over 40% (U.S. City Council Total Registered city, according to the mapping completed home ownership is at 64.4% and 54.8% in District Yes No % Yes % No Votes Voters Turnout by Adouki & Associates, a political and California). Homeowners are paying in- 1 4,002 1,287 75.7% 24.3% 5,289 21,730 24.3% governmental affairs consultancy firm creased property taxes that renters are not 2 7,122 3,656 66.1% 33.9% 10,778 29,197 36.9% based in Signal Hill. Of the 43 precincts in concerned about, including the passage of the city opposing the measure, 41 are lo- the Long Beach City College bond meas- 3 9,092 8,176 52.7% 47.3% 17,268 36,332 47.5% cated east of Lakewood Boulevard (the ure on the same June 7 ballot, and the most 4 5,667 3,880 59.4% 40.6% 9,547 26,532 36.0% other two are in the Virginia Country likely passage of a Long Beach Unified Club/Bixby Knolls area). School District bond measure on the No- 5 7,633 8,932 46.1% 53.9% 16,565 34,832 47.6% The 5th City Council District is the only vember 8 ballot. 6 3,710 1,282 74.3% 25.7% 4,992 21,674 23.0% district where the measure failed, with 54% Two other interesting tidbits that may of voters in opposition (refer to adjacent have impacted the vote: (1) a majority of 7 6,902 3,690 65.2% 34.8% 10,592 30,248 35.0% chart). The entire 90808 zip code is within the city’s registered Republicans – who his- 8 5,574 3,034 64.8% 35.2% 8,608 27,463 31.3% the 5th District, as is part of the 90815 zip torically lean anti-tax – live in East Long 9 5,226 2,195 70.4% 29.6% 7,421 25,416 29.2% code. The two zip codes represent the low- Beach (as of June 1, 18.8% of voters are est crime rates in the city and encounter far registered Republicans and 51.9% are De- Totals 54,928 36,132 60.3% 39.7% 91,060 253,4243 35.9% fewer infrastructure problems compared to mocrats); and (2) Mayor Robert Garcia led Source: City of Long Beach through Los Angeles County Registrar-Recorder. other areas of Long Beach – factors that the effort to pass the tax. When he was may have played into why voters were elected in 2014, the only city council dis- Surprisingly, the highest support for the people at or below the poverty rate – the against the tax increase. trict he lost was the 5th, and he won the 3rd tax increase – 70% plus – came from the 1st, 6th and 9th Districts. Home ownership may have also played District by fewer than 50 votes. three city council districts with the most That is a puzzling since an argument made by tax opponents was that lower-income people could least afford the increase – which, as pointed out previously, amounts to an 11.1% tax hike. In fact, the tax increase negates the January 1, 2016, state increase in the minimum wage, which went from $9 an hour to $10 an hour, or, that’s right, 11.1%. Additionally, it is gener- ally accepted that sales taxes are regressive because the cost of essentials such as food, rent and clothing make up a higher percentage of a lower-income worker’s budget. Therefore, one must wonder if many voters did not fully understand the tax increase or the impact on their pocket book, or maybe they were swayed by the massive campaign – mailer after mailer – to pass the increase. However, the opposite may also be Home Ownership Versus Renter United States 64.4% owner* 35.6% renter California 54.8% owner 45.2% renter Long Beach 40.2% owner 59.8% renter Long Beach By Zip Code (Numbers equal housing units per zip code)

OWNERS RENTERS %OWNERS %RENTERS 90802 4,456 15,765 22.0% 78.0% 90803 7,233 9,548 43.1% 56.9% 90804 2,977 11,592 20.4% 79.6% 90805 11,098 14,968 42.6% 57.4% 90806 3,953 8,258 32.4% 67.6% 90807 6,794 5,767 54.1% 45.9% 90808 11,080 3,164 77.8% 22.2% 90810 5,098 4,166 55.0% 45.0% 90813 2,312 14,246 14.0% 86.0% 90814 2,957 6,094 32.7% 67.3% Notes: • 393 ballots cast in 28 small Vote-By-Mail-only precincts are included in the district totals chart (and in the full results on the Google Spreadsheet) but are not reflected 90815 9,522 4,961 65.7% 34.3% on the map Source: ACS (American Community Survey) 2014, which is Precinct markers are plotted on the map by polling location, thus some markers fall slightly outside the bounds of the indicated election precinct (which means in some an ongoing statistical survey by the U.S. Census Bureau. cases the markers will also fall just outside the council district within which they apply) * According to a U.S. Census update, the U.S. homeowner- • All election precincts fall entirely within a single council district with the exception of one 7th District sub-precinct which was consolidated into a 1st District election ship rate had fallen to 63.4% by the 2nd Quarter of 2015, precinct. and a year later to 62.9%. Prepared by Adouki & Associates, a political and governmental affairs consultancy. [email protected] or adoukiandassociates.com 1_LBBJ_August2_2016_LBBJ 7/30/16 9:11 PM Page 33

August 2-15, 2016 PERSPECTIVES Long Beach Business Journal 33

true: voters clearly understood what they Not alarmed yet? Here’s a prediction by the Code.org – a non- were voting on, and their voice came profit dedicated to expanding access to computer science, and through loud and clear that they trust the Technology And Innovation increasing participation by women and underrepresented stu- mayor and city councilmembers to hire dents of color: while computing jobs will double to 1.4 million more police officers to fight rising crime by 2020, women leaving the industry will result in a shortage of and to address the city’s infrastructure needs. qualified employees to fill those jobs. Major employers like According to Adouki & Associates, the Women Engineers And Google, Apple and Facebook are already reporting a shrinkage city’s police union poured more than Workplace Conditions in the ratio of women in their technical divisions. Isn’t it time to $213,000 into the Measure A Yes cam- rethink the high-technology workplace? paign. Other large donations came from the Report after report indicates that women prefer to work in col- city’s firefighters’ union, which gave A very large proportion of women leave the laborative environments where creativity is valued. By contrast, $77,625, and more than $130,000 was do- engineering and science fields due to difficult they are more prone to leave workplaces that are hierarchical and nated from three other union groups. workplace conditions. That fact was confirmed do not allow flexibility. So it should not be a surprise that a co- The consulting company claimed voters in a five-year study that began in 2009 and in- operative environment, where the supervisor and co-workers are were “vulnerable to the influence of false cluded interviews with 5,300 women engineers. supportive of one another, will create a stronger sense of belong- and misleading mailers,” including one that In summarizing the study, Huffington Post re- ing, and it is this connectedness that leads to higher retention of said voting yes would result in more police ported that nearly 80 percent of women who en- women. Of course of greater importance is women’s working re- and firefighters, with big bold numbers tered the engineering workforce and lationship with their immediate supervisors. stating “200 fewer cops, 80 fewer firefight- By Forouzan subsequently left, did so because of the “orga- Regardless of the type of industry and its size, the attitude of ers = a less Safe Long Beach.” The infer- Golshani nizational climate.” This group attributed the management toward promoting women makes a huge difference. ence, the company says, is that passing the climate issues mostly to two factors: non-sup- Very often this attitude is shaped by the realities of other women tax would result in all those public safety portive supervisors and general incivility. Other reasons cited in- filling the higher spots. This is true of private sector, public or positions being filled, which is unlikely. cluded salary disparities, a dearth of opportunities for government, and the perception of glass ceiling within the or- In a statement, Adouki & Associates advancement, and extensive travel necessities. The report quoted ganization is probably the most significant deterrent. called the campaign “one of the most dis- one respondent who stated: “It is hard to justify the long hours Should the high-technology industry remain aloof to these honest in Long Beach political history – to go nowhere,” to sum up the reasons for the exit of nearly 40 serious failures, women will continue to flee the field with the $600,000-plus spent to ‘educate’ voters percent of women engineers. same alarming rates. Should STEM employers continue to ex- about what they were voting for without If you’re not convinced that we have a national problem, let’s pect long hours from all employees – yes, some practically live ever using the words ‘sales’ or ‘tax’ to de- look at the numbers. Due to massive campaign by the National at their workplaces – we will be further deprived from the con- scribe a referendum on a new sales tax.” Academy of Engineering, in 2014 we saw significant increases tributions of women to these vital fields. The sobering fact is Whether one agrees with the consulting in the number of science, technology, engineering, and mathe- that women will continue to work outside the home, as over 70 firm or not, the fact is the tax passed. Now matics (STEM) degrees awarded to women. Specifically, in the the onus is on the mayor and councilmem- fields of engineering and science, 49 percent of bachelor of sci- percent with young children do. The simple and unfortunate bers to keep their word. ence degrees, 43 percent of master of science degrees and 40 fact is that they will not be working for engineering or com- City officials often talk about Long percent of PhDs were awarded to women. However, despite these puting fields – the two fields that traditionally have been en- Beach being one big, beautiful city, full of high levels of graduation in STEM fields, women make up only riched significantly by women’s innovations and intellectual diversity. That may be true, but politically 25 percent of the STEM workforce. In engineering alone, the contributions. there is a line and the vote on the sales tax number is much worse. Only less than 11% of employed engi- (Forouzan Golshani is the dean of the College of Engineering at measure clearly pointed it out. I neers are women, according to IEEE Spectrum. California State University, Long Beach.) 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 34

34 Long Beach Business Journal PERSPECTIVES August 2-15, 2016 Inside City Hall Small Business Dollars & Sense How To Prepare For City Budget Exercises The Next Generation Of Entrepreneurs:

ver wonder why Long Beach has a different budget cycle from other How Millennials Are Changing The Landscape Ecities and businesses? We are on an October 1 to September 30 cycle, while most everyone else is on a January 1 to December 31 fiscal year. M illennials are starting their own businesses at a rate unseen by any In 1994, the city council voted 6-2 (Alan Lowenthal and Jenny Oropeza other generation; they are the fastest growing segment of entrepre- opposing) to change the fiscal year from the rest of government. It was neurs today. Born between 1981-1997, Millennials have surpassed Baby argued that a new fiscal year would give newly elected councilmembers Boomers as the largest living generation on earth, and one area in which who take office in July, enough time to study the budget and vote three they have made a big impact is the workforce. From pursuing a more flex- By Gerrie months later. City management claimed it would also give them more time ible work environment to seeking a challenge, Millennial entrepreneurs schipske to study the state’s budget and to adjust to the state taking revenue. all have their own reasons and motivations for starting a business instead By Ben As Lowenthal and Oropeza argued, this new scenario did not give new councilmem- of settling into a traditional career path. bers sufficient time to study the budget. I came into office in 2006 and the Fiscal Year alvarado Forging Their Own Path 2007 budget was a done deal. City management had formalized its recommendations Many Millennials were graduating high school or college during the financial crisis, that it had worked out in April and, barely two months into office, the council voted on and this experience helped form their plans for their future careers. This generation is the a budget that is large and complex. most diverse and most entrepreneurial, with Millennials launching approximately 160,000 If you want to follow along with the city budget exercises, the process is as follows: the startups per month and 82 percent of Millennial small business owners say they started city manager asks each department to begin updating their budgets in early January. By June, their business because they wanted to be their own boss and have control over the future, departments complete their budgets and the City Council Budget Oversight Committee be- and today, 71 percent are working on their businesses full time. The study also found that gins its review. The city manager gives the budget, not to the city council, but to the mayor, 41 percent of Millennial small business owners are looking not only for a comfortable fu- who reviews and makes changes. On August 1, the mayor submits both budgets – the mayor’s ture, but to grow their business as big as possible, compared to 21 percent of older small and the city manager’s – to the city council that in turn has four or fewer scheduled meetings business owners. Most said they are planning to grow their businesses over many years to review and request changes. By law, the budget must be balanced and passed by September with the goal of potentially even passing it down to their children. 15. During the process, councilmembers are free to hold public meetings on the budget and Launching More Businesses the city has adopted an online program to allow taxpayers to weigh in about choices. Millennials today are starting more businesses in a wide variety of industries. Nineteen The city does not use “zero-based budgeting,” requiring departments to start at zero each percent say they own more than one business, compared to 17% of older small business year and justify the amounts they are requesting. Therefore, budgets grow incrementally. owners. When asked what business type/industry they work in, the top three reported were The city also does not set out ahead of time a list of detailed performance measures that each professional and business services (22%), retail, wholesale or restaurant (20%), and con- department must attain to also justify budgets and which indicate the costs to perform city sumer services such as house painting or auto repair (16%). services. Performance measures are listed as “accomplishments” and are broad. What is needed Seeking Support is a calculation of what it costs for each unit of service provided in a specific department. When it comes to seeking support for their business’s financial success, Millennial small The International City Management Association (ICMA) has developed a number of business owners aren’t afraid to ask for help. According to the Wells Fargo study, Millen- performance measures that could be used, such as the one for Code Enforcement: Percent- nial small business owners draw on a number of different sources for inspiration, with age of code violations brought into voluntary compliance prior to initiation of administra- most turning to friends and family (82%), and other small business owners and competitors tive or judicial action; Number of code violations resolved per full time equivalent code (74%). In addition, a large percentage of Millennial small business owners (76%) say they enforcement personnel; and Cost per code enforcement case. are willing to pay for products and services that help them do a better job of running their The city posts its budget documents online. These documents provide summaries and often businesses, compared to 66% of older small business owners. lack the entire financial picture of the city. To view that, I recommend readers go online and The Glass Is Half Full download the last Comprehensive Annual Financial Report (see link: CAFR 2014) The CAFR In thinking about the future of their businesses, Millennial small business owners tend contains management’s representations of the revenues, assets and expenditures of the city and to have an optimistic outlook. In fact, the Wells Fargo study found that the outlook for the is prepared usually one year after the budget has been passed. CAFR includes detailed expla- coming year is seen to be brighter among Millennial small business owners, with 77% nations not found in the budget. For instance, did you know that in FY 2014 the city increased saying that they expect improvement in their business in the next year, compared to 51% spending on public safety by $10.3 million? This was spent on increased workers compensation of older small business owners. The positive, ambitious outlook supports their plans to costs, additional funding for gang enforcement and costs for operating a police academy. grow and scale their business in line with their goals. Next column: Why does the city have a health department? As more Millennials enter the small business space and launch their ventures, under- (Gerrie Schipske was elected to both the Long Beach Community College Board of standing how they operate and what motivates them is the key to helping them succeed. Trustees and the Long Beach City Council. She is the author of several books on Long (Ben Alvarado, a 25-year veteran of Wells Fargo, is the president of the bank’s So. Calif. Re- Beach history. Her blog is www.longbeachinside.blogspot.com.) gion, which stretches from Long Beach to Orange, Imperial and San Diego counties.) result, any attempt to appreciate or add value to others will about your strengths and preferences, but not “rigidity.” hit roadblocks unless the culture supports it. That’s because When we embrace diversity, we also appreciate divergence Effective Leadership culture is like the oxygen we breathe. If the atmosphere is and dissent. Lockstep thinking leads to dysfunction, where one of fear, mistrust or toxic competition, it will be hard anyone different is somehow inferior. This attitude is not Five Ways To Create An to add value to others without cleaning up the air. If the appreciation-friendly, and adds no value to either party. focus is on what is wrong or broken, appreciation is more Our differences can lead to celebration or intimidation. Appreciate-Friendly Atmosphere difficult. If the focus is on looking for the best in others, Choose celebration. then appreciation is encouraged. 5. Rituals – Establish rituals to highlight and commem- “Appreciation can make a day, even change a life. Your will- 2. Gratitude – Gratitude unlocks the fullness of life. It orate successes, accomplishments, effort and personal cel- ingness to put it into words is all that is necessary.” turns meals into feasts, and strangers into friends. Those ebrations (birthdays, anniversaries, and milestones). One – Margaret Cousins who are grateful are the best at adding value to others organization put together Stress Support Kits. If someone ppreciation means to “increase in through appreciation. It is heartfelt and specific. When we was working on a difficult project they received the kit. It Avalue.” We understand the concept realize how much we’ve been given, we have so much included aspirin, a comedy DVD, wind up toys and a stress of appreciation in the financial realm, more to give. The more valuable we feel, the more value ball. You can design your own – families included. The rit- yet increasing the value of others is not we can add. In fact, we can’t help but do this. Appreciation ual helps send the message that what they are going as clear. Rather than talk about the “how is really gratitude in action. through is both known and appreciated. Rituals provide re- to’s,” let me describe the necessary 3. Margin – Without margin in our schedule it becomes minders that help structure appreciation and add value to difficult to do the important things. We live in a world of people’s lives. By Mick mindsets. “spinning plates.” When we solve one problem, we leap to The practice of appreciation is a powerful art. When a per- ukleja Here are five that create an appreciation-friendly atmosphere. the next. With our frantic pace it’s easy to become a victim son feels genuinely appreciated, their connection, response, 1. Culture – Every organization – large and small – has of the urgent things, while ignoring the important things. performance, and production increase. It’s the language of a culture. Even every family has a culture. Where 2 or Creating the space to include appreciation of others is not appreciation and it takes practice to become fluent. more people are gathered for any length of time, a culture a waste of time. It increases value which goes to the bot- (Mick Ukleja is an author, speaker and generational exists. It has been referred to as the personality of the or- tom line. strategist. He keynotes across the country on leadership, ganization, group, or family. Often people don’t recognize 4. Diversity – Celebrate the differences that exist among generational diversity and personal productivity. He is it’s existence, but it is a major driver of behavior. Most peo- people. Don’t let a personal preference or strength become co-author of the best seller, “Managing The Millennials, ple cannot describe what their culture is, any more than a a weakness. When we appreciate the differences in others 2nd Edition.” Check his weekly blog at www.Leadership- fish (if they could talk), could tell you what water is. As a our personal strengths increase. It’s good to have “clarity” TraQ.com.) 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 35

August 2-15, 2016 PERSPECTIVES Long Beach Business Journal 35

In addition to the lack of inventory, the lack of income growth has also put the brakes on sales, while Californians wait for Realty Views their wages to catch up. In the years leading up to the housing bubble – 2003 to 2007 – the income deficit was much the same, Vol. XXIX No. 15 Rising Home Prices Slowing Sales but the conditions were much different. Lending was much more flexible and lenient with stated income loans. Consumers August 2-15, 2016 were much more trusting of the economic environment and s home prices continue to recover and ap- EDITOR & PUBLISHER were much more willing to sell and buy knowing that they Aproach – or in some cases exceed – the could get a loan, they would have a job, and prices would con- lofty prices prior to the 2008 housing crash, George Economides tinue to climb. Today – after the Great Recession – the con- some interesting trends have emerged nation- SALES & MARKETING EXECUTIVE sumer mindset is much different, not to mention the mindset of ally, locally and statewide. lenders and regulators. Heather Dann An increase in sales volume usually leads to So where does it go from here? In those states with relatively PHOTOGRAPHER AND price increases. Eventually, the lack of inventory less expensive housing, first-time homebuyers will continue to By Terry ross leads to higher prices – as with anything that is STAFF ASSISTANT have greater opportunity to purchase a home that they can af- more scarce. In today’s housing market, sections of the country ford for the time being. Most economists predict that the influx Larry Duncan where prices and the cost of living are lower are currently enjoy- of younger, up-and-coming first-time buyers and the downsiz- EDITORIAL DEPARTMENT ing excellent growth in the volume of homes being sold. ing of baby boomers will help fuel the next housing boom SENIOR WRITER Much of this has to do with entry-level buyers who can get across the country in 2019 to 2021. into the housing market at a much lower price point. So places In California, incomes will need to support the prices that we Samantha Mehlinger like the Midwest and the South are seeing those buyers making have now, or hope to attain in the next few years. This may not STAFF WRITER purchases in increased numbers because prices are much more be easy since we are already outstripping the ability of many Brandon Richardson affordable in comparison with the West Coast. In the city of consumers to pay these prices. More jobs and better paying CONTRIBUTING WRITERS Detroit, for example, the volume of sales in May of this year ones will be needed to make up this gap. Right now we are get- was 58% higher than in the same month of 2015, according to ting a break with no increase in interest rates, like those that Michael Gougis and Gerrie Schipske the real estate website Redfin. had been predicted at the beginning of the year. An economy COPY EDITOR Now compare that with California and our higher prices, and that has not increased as expected is the reason for that. you get a completely different picture. Statewide, home sales The other unknown factor is what comes out of this turbulent Kellie O’Reilly decreased 2% during that same period – from April 2015 to election year. By early next year, we should have some indica- The Long Beach Business Journal is a publi- April 2016. Regionally, sales dropped 1% in Los Angeles tion of what course all of this is going to take. But some housing County, 6.4% in Orange County and 3.8% in Riverside. Home analysts think that home prices will trend down in the first half cation of South Coast Publishing, Inc., incor- sales in San Diego dropped 1.7%, while up north sales dropped of 2017, mainly due to the current uncertainty that could con- porated in the State of California in July 1985. 5.7% in San Francisco and 7.2% in Santa Clara. tinue for a while. It is published every other Tuesday (except Across the state, home prices have increased 8% over the past (Terry Ross, the broker-owner of TR Properties, will an- between Christmas and mid-January) – 25 two years, moving prices near the highpoint of almost a decade swer any questions about today’s real estate market. E-mail copies annually. The Business Journal pre- ago. Going back further than two years ago, prices in California questions to Realty Views at [email protected] or call miered March 1987 as the Long Beach Air- were increasing at an even higher rate. 949/457-4922.) port Business Journal. Reproduction in the British government to conduct drone testing there. The whole or in part without written permission range of experiments includes technologies not yet permitted is strictly prohibited unless otherwise Trade And Transportation in the U.S. Other tests are being conducted in Canada. Given the potential collision with the helicopter in Los An- stated. Opinions expressed by perspective geles (and numerous other close calls), the concerns of regula- writers and guest columnists are their views tors are legitimate. The question is to what extent federal, state and not necessarily those of the Long Beach Big Week For Drones and local agencies can help themselves by engaging companies Business Journal. Send press releases to the like Amazon and 7-Eleven in the R&D process here in this address shown here: ot surprisingly, the political conventions country as a way of directing the use of the technology and bet- Nheld the spotlight over the past few ter anticipating the impacts of its use. weeks and dominated the news cycles. But To a certain extent, the horse is already out of the gate, par- Office there were developments on some other fronts ticularly when it comes to the use of drones in the supply chain. South Coast Publishing, Inc. that are worth noting. One in particular turned Airborne drones are already in use. Germany has approved use 2599 E. 28th Street, Suite 212 what was once the stuff of science fiction into of a Parcelcopter delivering drugs and other supplies to offshore reality. It had to do with drones. locations in the North Sea. Companies such as DHL and Signal Hill, CA 90755 By ToM Google – in addition to Amazon – have all made investments July was actually a big month for drones. Ph: 562/988-1222 • Fx: 562/988-1239 o’Brien Not all of the news was good. In Los Angeles, in unmanned aerial vehicle (UAV)-related R&D. We should also a fire firefighting helicopter was prevented from dropping water expect to see drones used within the distribution center where www:lbbizjournal.com on a brush fire as it attempted to avoid a collision with a drone. they have the potential to be more flexible than forklifts and conveyer systems. The technology has been tested and used for This is the kind of activity that regulators fear and explains in Advertising and Editorial Deadlines part why, in mid July, the U.S. Congress passed legislation that palletizing, sorting, loading, and unloading containers. Wednesday prior to publication date. Note: requires the Federal Aviation Administration (FAA) to establish Other applications are also on the way. Rolls Royce is devel- guidelines that restrict the operations of drones near “critical oping drone cargo ships under a project called Blue Ocean. A Press releases should be faxed or mailed. infrastructure” including chemical plants. This comes on the fully autonomous cargo ship without a human crew potentially No follow up calls, please. For a copy of the means no living quarters, air conditioning, water or sewage, heels of the FAA’s issuance of final regulations in June limiting 2016 advertising and editorial calendar, the use of drones to the visual line of sight of the operator and thus leaving more room for cargo space. For its part, Mercedes- please fax request to 562/988-1239. Include prohibiting flights over people not involved in the drone oper- Benz is developing a self-driving semi-truck designed to reduce ation itself. both costs and human error behind the wheel. your name, company and address and a But as is the case with many new technologies, policies and There are risks of course, and the wide ranging use of un- copy will be sent to you. Distribution: Mini- manned vehicles of whatever type will have tremendous impli- regulations can only play catch-up to innovators in the private mum 22,000 copies. sector. Another major event occurred in July when 7-Eleven cations for society as a whole. The technology can help supply made the first autonomous commercial drone delivery to a cus- chains be more customer-driven, but the customer has to be Regular Office Hours tomer’s home. Partnering with a drone delivery company (which comfortable with the technology in the first place. Monday-Friday knew they already existed?) a store in Reno delivered two pack- And if we‘re not quite there yet, it’s impossible to deny that ages containing among other things Slurpees, coffee and a we’re in a period of rapid change. Regulators, hesitant perhaps 8:30 a.m.-5:30 p.m. chicken sandwich to a resident’s backyard. The delivery was to make it easier to get Slurpees-on-demand, are rightly cau- able to comply with existing FAA guidelines. tious; but technologies tested elsewhere will no doubt find their Business Journal Subscriptions Amazon, which has been on the forefront of the commercial way into use on our shores. New approaches to regulation will Standard Bulk Rate: $30.00 drone debate, has struggled with the FAA regulations, particu- be required to match new approaches to innovation. (add $2 if paid by credit card) larly those that pertain to line of site operations in urbanized (Dr. Thomas O’Brien is the executive director of the Center 1st Class: $70.00 areas and limitations on night time deliveries. As a result, the for International Trade and Transportation at CSULB and an (add $3 if paid by credit card) company – which has stated its interest in using drones to guar- associate director for the METRANS Transportation Center, 25 issues – 1 year antee 30-minute deliveries – has announced a partnership with a partnership of USC and CSULB.) 1_LBBJ_August2_2016_LBBJ 7/30/16 8:52 PM Page 36