Co-Workers and Friends for Decades, Chris Pook and Jim Michaelian
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1_LBBJ_May23_2017_LBBJ 5/20/17 9:12 PM Page 1 May 23-June 5, 2017 Long Beach’s Newsmagazine www.lbbizjournal.com Inside This Issue Co-Workers And Friends For Decades, Chris Pook And Jim Michaelian Now Battle Over Future Of Grand Prix City Council To Decide As Early As July If IndyCar Continues Its Long Run Or Formula One Gets Nod For 2019 t was Memorial Day weekend 1973 and ship between Pook and Michaelian. More than a request for proposals, only two were received: I Chris Pook, a 32-year-old, Engish-born 25 years later, when Pook left the association one from Pook’s World Automobile Champi- travel agent, who had arrived in the U.S. 10 he started, it was Michaelian who was named onship of California; the other from Michaelian years earlier with a sales and marketing degree to replace him – and there he remains. and the GPALB. The city council contracted The Nonprofit Sector in hand from the University of London, was sit- By any measure, the Toyota Grand Prix of with KPMG two days after the 2017 race to an- • Interview With Don Rodriguez, ting in his office with a view of the Queen Mary Long Beach has been a huge success and long alyze the proposals. John Keisler, director of watching the Indy 500 on the telly. He thought, ago was fully embraced by the community. At the city’s economic and property development Boys & Girls Club of Long Beach “Why not a Monaco-style race on the streets of 43 consecutive years, it is the longest-running department, told the Business Journal, “We • Trends Shaping Not-For-Profits Long Beach?” Thus began a nearly 15-month street race in the U.S. It is the city’s largest hope the KPMG study will allow staff to make journey to convince city, state and car-racing of- event. It provides the city more free TV time a recommendation [to the city council] in July.” Pages 14-17 ficials to give Pook the green light for a For- than any other event. It is in the black. The city One thing to look for in the study is if KPMG mula One race through the city’s downtown is reimbursed fully for the services it provides. is able to confirm Pook’s claims or reaffirm streets. Jim Michaelian became one of Pook’s Today, the men’s relationship is strained. Michaelian’s assertions. first hires for the newly-formed Grand Prix As- Pook wants to return Formula One to Long The Business Journal sat down with Pook sociation of Long Beach (GPALB). Beach, where it hasn’t raced since he switched and Michaelian, separately, for in depth inter- On September 28, 1975, a Formula 5000 to IndyCar with the 1984 race. views. What follows is an inside look at the “test” race was run, marking the begining of a When Long Beach city officials decided to proposals and the men – in their own words. decades-long working relationship and friend- review all aspects of the annual event and issue – Publisher George Economides/Sr. Writer Brandon Richardson Health Care Quarterly Pook: Change Needed To Achieve Michaelian: We Are A Known Quantity • Federal & State Legislation Highest And Best Use For The City And A Community Asset – We Deliver • New Spine Center At Memorial LBBJ: Why are you pursuing this? LBBJ: Please explain the owner- • St. Mary’s New CEO Caldwell Pook: What’s occurring right now, ship arrangement regarding the Grand • SCAN Marks 40th Anniversary for whatever reasons, the IndyCar Prix Association of Long Beach. series is not delivering the econom- Michaelian: In 2005, two gentle- • Chronic Conditions Among Srs ics that it should. And if you are a men and race team owners, Kelvin Pages 18-27 business person in Long Beach and Kalkhoven and Jerry Forsythe, you are impacted by this race, either bought the Grand Prix Association of positively or negatively, what is re- Long Beach (GPALB) [from then- ally important is to determine what owner Dover Downs Entertainment] is the highest and best use of city under the name Aquarium Holdings, property if, indeed, you are going to LLC, based in Alamo, California. run a motorcar race. LBBJ: Do they own anything LBBJ: Have you spoken to Formula One (F1) officials at Liberty else, as far as racing? Media [which, as of January 23, 2017, acquired F1 for $8 billion] Michaelian: They own Cosworth, which is a huge company. Cos- about your plan? worth makes engines, all sorts of electronic systems for cars. They make Small Business Showcase Pook: Yes. the electronic ignition systems for Porsche and for Corvette, and now Parkview Village LBBJ: And what did they say? they’re in the process of building an engine for some of the high-tech Pook: They said they are looking at three venues in the United States – manufacturing companies that do limited runs, like they’ll do something Pages 38-39 they obviously want New York, they obviously want Southern California for Aston Martin. So they’re actively involved in the business. 2 People In The News and they already have a venue in Austin, Texas. They are on record pub- LBBJ: Have the owners expressed to you that they’re fully committed licly saying that they want to be in the major markets. to the future of IndyCar in Long Beach? 6 Real Estate & Development LBBJ: But other than saying Southern California, they haven’t specif- Michaelian: Absolutely. In fact, Kevin was out here during a race 6 Perspective: Realty Views ically said Long Beach? They could go anywhere? and we actually met with the mayor and he expressed that very thing. 8 Mayor’s June 6 Forum On Pook: They could go anywhere but they understand, fully, what is going LBBJ: We’ve spoken to quite a few people since the announcement Development Projects In City on here. They’re aware that there is an RFP [request for proposal]. of the KPMG study, and most of them are very supportive of the race They’re aware that we have responded to the RFP on their behalf. the way it is. But at the same time, they said, “You know what, there’s 9 Newswatch LBBJ: And the facilities basically exist. nothing wrong with having the city check to see how everything is • Trash Hauling Ordinance Pook: The facilities are here. There are some minor modifications to and to do a comparison.” Do you have a problem with the city doing • Belmont Plaza Pool the circuit – it needs to be lengthened, there needs to be a pit complex. an analysis? LBBJ: So do you feel you have an advantage over other cities with Michaelian: No. In fact, the issue first came up in 2014 when some • Affordable Housing Study Long Beach already having an existing track? councilmembers wanted to take a look at the landscape and see what • Looking For Historic Businesses Pook: Oh, absolutely. Without a doubt. was available. My first and only reaction has always been, “Fine, you’ve 39 Small Business Dollars & Sense (Please Continue To Page 28) (Please Continue To Page 33) Long Beach Business Journal PRSRT STD 2599 E. 28th Street, Suite 212 U.S. POSTAGE Signal Hill, CA 90755-2139 562/988-1222 • www.lbbizjournal.com PAID Los Angeles, CA PERMIT NO. 447 By Assistant Editor Samantha Mehlinger Trump’s Millennial Problem It’s time to talk about the comb-over in the Millennials do not like Donald Trump. room. My apologies to those of you seeking To be fair, I should say the majority of Amer- respite from its chick-fluff colored glow. But at ican Millennials do not like Donald Trump. But this point, it just seems irresponsible of me to put polls and surveys have shown that it’s a pretty it off any longer. strong majority, so (Please Continue To Page 4) 1_LBBJ_May23_2017_LBBJ 5/20/17 9:12 PM Page 2 Page 2 • May 23-June 5 • Long Beach Business Journal People In The News Local Cable Show The Institute of Museum and Library Services named Long Beach Public Li- brary as one of 10 recipients of the ‘Straight Talk’ 2017 National Medal for Museum and Library Services. The award is the na- tion’s highest honor given to museums Turns 25; Hosted and libraries for service to the commu- nity and will be presented later this year By Art Levine at an event in Washington, D.C. “It’s a great honor to receive the National Medal for Museum and Library Service for Long Beach Public Library,” The I By BRANDON RICHARDSON city’s director of library services, Senior Writer Glenda Williams (pictured here the Michelle Obama Neighborhood Library in North Long Beach), said in a press release, “We exist to partner with our Long Beach residents to meet their For the last 25 years, Art Levine has in- personal and educational goals. We strive daily to provide exceptional, relevant services, classes and events that will offer countless opportunities for our terviewed politicians, business executives, community to grow and prosper.” The recipients were selected from 30 national finalists. (Photograph by the Business Journal’s Larry Duncan) entertainers, doctors, educators, health care administrators, nonprofit and community Brown & Baerwitz, and his schedule Director of the Anti-Defamation League widening schism between political parties, groups, and leaders in the arts as the host of would not allow it. So he recommended Abraham Foxman; County Supervisor Don and even within parties, Levine said he “Straight Talk,” a weekly cable show. Levine to take his place.