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labusinessjournal.com LOS ANGELES BUSINESS JOURNAL Volume 33, Number 31 THE COMMUNITY OF BUSINESSTM August 1 - 7, 2011 • $3.00 Up Some Don’t See 99 Cents as Deal Agents Using Term Front INVESTMENT: But discounter ‘Certified’ Doesn’t may be Leonard Green’s next buy. $9.2 billion Total value of Leonard Green’s announced Add Up for CPAs By RICHARD CLOUGH Staff Reporter deals in past year. By ALFRED LEE Staff Reporter Petco. J. Crew. Whole Foods. Jo-Ann Fabric. Rite Aid. Container Store. financial world, Leonard Green’s high-profile deals Mike Paek has been doing taxes for customers in No, that’s not the itinerary for next weekend’s in the past few months have cemented its reputation Koreatown for more than 10 years. errands. It’s a list of some of the major national as one of the country’s leading acquirers of major But he’s not one of the 300 certified public accoun- How the Nazarian chains owned by Leonard Green & Partners LP retailers. It most recently snapped up East Coast tants who cater to L.A.’s Korean-American communi- brothers may add of West Los Angeles. retail chain BJ’s Wholesale Club Inc. While many ty, the largest in the country. Instead, he is what’s sizzle to Adam And if all goes according to plan, 99 Cents Only investment firms are waiting on the sidelines for the known as an enrolled agent – authorized to do tax Fleischman’s Stores Inc. will join them soon. market to fully recover, Leonard Green is earning preparation and bookkeeping but not other CPA-only Umami burgers. But Leonard Green, one of the most active local respect for persistence and boldness. services such as auditing. PAGE 3 private-equity firms today, is facing shareholder “They’re aggressive, they’re smart, they’re good For a long time, enrolled agents and CPAs managed opposition in its effort to add the Commerce-based at recognizing opportunities,” said Lloyd Greif, an uneasy co-existence, offering overlapping services in discount retailer to its roster of well-known brands. News & Though it’s not a well-known name outside the Please see INVESTMENT page 33 Please see ACCOUNTING page 33 Analysis Working On Jobs 3-D TV has Tom Engdahl’s com- New L.A. ‘czar’ pany focused on growth. all about business PAGE 6 By HOWARD FINE Staff Reporter

ATT Karatz grew up in France and was People the only American kid at school. So he Mquickly learned what it meant to be the Why Adam odd person out. When he saw another kid in that Miller’s business position, he felt compassion and reached out. took off after he His father – former KB Home Chief Executive fired himself. Bruce Karatz – believes that’s how Matt Karatz PAGE 16 developed “an uncanny ability to bring together people of disparate interests for a common good.” Matt Karatz will need to draw on this skill now as Los Angeles Mayor Antonio Villaraigosa’s new jobs czar: Villaraigosa last month tapped him to replace Austin Beutner as deputy mayor of the office of economic and business policy.

‘Yes’ Man: Matt Karatz at City Hall meeting room. Please see GOVERNMENT page 31

RINGO H.W. CHIU/LABJ Plan for Tower Records Spot in a Spin MAIL TO: DEVELOPMENT: Neighbors can send it to the City Council for possible approval or back to the drawing board for more revision. fear new center will bring traffic. Chicago developer Sol Barket first planned a five- story building with a supergraphic and two video bill- By JACQUELYN RYAN Staff Reporter boards at 8801 W. Sunset Blvd., which is at Horn Avenue. But he has agreed to scale it down to three- A Chicago developer wants to build a three-story stories with video billboards but no supergraphic. retail, office and gym complex on one of L.A.’s Residents say: sorry, still not good enough. They most prominent corners, the former home of leg- want the developer to cut the project down another endary Tower Records on the Sunset Strip. story, find a tenant that isn’t a gym, eliminate the Other businesses nearby mostly welcome the video signs and add parking. development. But residents are fighting it. However, the Sunset Strip Business Associa- The long battle between the developer and project tion favors the project, called Centrum Sunset. Todd

opponents is scheduled to return to West Hollywood’s RINGO H.W. CHIU/LABJ Planning Commission on Thursday. The commission Please see DEVELOPMENT page 32 Foes: Cleary, Eisenberg across from planned site.

Loans up to $300 million, one business at a time.

2 LOS ANGELES BUSINESS JOURNAL AUGUST 1, 2011

LOS ANGELES BUSINESS JOURNAL ®

AUGUST 1 - 7, 2011 VOLUME 33, NUMBER 31 FREEanywhere DELIVERY in Downtown LA! ” See Taylor. Swift.”

RINGO H.W. CHIU/LABJ Page 15: From left, Farmscape’s Dan Allen and Jesse DuBois at backyard ‘farm.’ TECHNOLOGY – Unrest in Pakistan after (213)TICKETS ON THE COVER the killing of Osama bin Laden has shot down the stock of software maker NetSol...... 10 GOVERNMENT – New L.A. jobs czar Matt (842-5387) Columns & features – Media Watch 11, Karatz will work to improve the city’s Banking & Finance 12, News of the Week 14 relationship with businesses. INVESTMENT – Shareholders of Leonard Green are discounting the firm’s move to PROFILE acquire the 99 Cents Only chain. INNOVATION – Farmscape looks to break DEVELOPMENT – Neighbors have rocked a out beyond backyard farms to reap developer’s plan to roll a new project into the institutional customers...... 15 old Tower Records space on the Sunset Strip. ACCOUNTING – Koreatown CPAs feel PEOPLE AL BROOKS TICKETS enrolled agents who work on tax returns are taking too much credit when they use the term INTERVIEW – Cornerstone OnDemand • • THEATRE CONCERTS SPORTS “certified.” CEO Adam Miller says his bartending skills 900 Wilshire Boulevard, Los Angeles, California 90017 are still on tap...... 16 www.albrooks.com UP FRONT THE LIST DINING – Umami hopes the Nazarian brothers can add some sizzle to the burger RANKING – The 25 largest general chain’s expansion plan...... 3 contractors in Los Angeles County, ranked by ARCHITECTURE – A local office that 2010 county billings...... 19 designed an Olympic resort for South Korea’s failed 2014 bid helped that country score the INVESTMENTS & FINANCE 2018 Winter Games...... 3 ENTERTAINMENT – Angelenos will get an Columns & features – Econowatch 23, eyeful of Quebec thanks to an “Iris”-linked LABJ Stock Index 24 festival of events...... 3 Columns & features – Page 3, REAL ESTATE Regional Report 4 Columns & features – Real Estate NEWS & ANALYSIS Column 26

LENDING – ZestCash looks to lure customers L.A. BIZ SEEN of payday lenders with a lower-cost online alternative...... 5 CELEBRATIONS – Photos from L.A. business community events...... 34 BIOTECH – CytRx’s plan for a capital shot in the arm through a stock offering has sent share prices tumbling...... 5 COMMENTARY ENTERTAINMENT – Postproduction COMMENT – Charles Crumpley thinks company ADS looks to expand its depth of reforming the city of L.A.’s permit process field by adding 2-D-to-3-D conversion may take time, but there’s no reason to wait services...... 6 on ditching its gross receipts tax...... 36 NON-PROFIT – Billionaire Patrick Soon- TAXES – New attempts to modify Proposition Shiong has plugged in as CEO of a national 13 could result in businesses passing higher scientific and medical data network...... 7 expenses on to customers, cautions John METALS – Increase in sales helped Reliance Kabateck...... 37 Steel & Aluminum forge a strong second TRANSPORTATION – L.A.’s car culture quarter...... 7 could be at a crossroads, according to BANKING – L.A.’s publicly traded banks Chauncey Swalwell...... 37 checked in with a strong second TRANSIT – Susan Bursk says local officials quarter, pointing to a continued recovery. . .8 have long dug Constellation Boulevard as a ENGINEERING – National Technical subway stop...... 38 Systems has grown its reach and customer Columns & features – LABJ Forum 36, base with a Midwest pickup...... 10 Letters 38

Los Angeles Business Journal (ISSN 0194-2603) is published weekly. © 2011, Los Angeles Business Journal. Offices are located at 5700 Wilshire Blvd., Suite 170, Los Angeles, CA 90036. Periodicals postage paid at Los Angeles, CA and additional offices (USPS #492-930). Subscription prices: 51 issues and special issue, $99.95. For new and renewal subscriptions, call 1-800-404-5225. All other inquiries (323) 549-5225. Single copies, $3.00. Mailed copies, $5.00. Back issues, $8.00. Address and subscription inquiries to: Circulation Department, Los Angeles Business Jour- nal, 5700 Wilshire Blvd. Suite 170, Los Angeles, CA 90036. This newspaper is designed to inform decision-making executives, investors and managers on the trends, the growth and the ideas important to commerce and industry in Los Angeles County. Information in Los Angeles Business Journal is gathered from sources considered to be reliable, but the accuracy of this information cannot be guaranteed. Neither that information nor any opinion which may be expressed here constitutes a solicitation for the purchase or sale of any securities. Opinions expressed in letters to the editor and commentaries are those of the authors and not necessarily those of Los Angeles Business Journal. Member Audit Bureau of Circulations. LABJ has been adjudicated Nov. 1985 to be a newspaper of general circulation. POSTMASTER: Send address changes to Los Angeles Business Journal, PO Box 16825, North Hollywood, CA 91615. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

AUGUST 1, 2011 UP FRONT LOS ANGELES BUSINESS JOURNAL 3 Architecture Firm Proves Its Mettle Korean resort designed to boost 2014 bid pulls in 2018 Winter Games. The Marina del Rey office of Cuningham Group Architecture has learned that if you design it, they will come. Eventually. Thawed Out: Alpensia ski resort in South Korea. Seven years ago, a team of architects drew up plans for Korea built the village to boost late,” joked Jim Schiedel, a an Olympic Village for South its chances for future Games. Cuningham principal in Mari- Korea to use in its bid for the The village, Alpensia, is a na del Rey who headed the 2014 Winter Olympics. Even $1.4 billion resort that features project. “Sometimes it takes a RINGO H.W. CHIU/LABJ though that bid failed, South a ski jump, cross-country ski while for victory. We’re hon- Piling On: Owner Adam Fleischman at his Hollywood Umami restaurant in 2009. Korea built the village any- trail and a biathlon track in ored to have been part of this.” way. Then last month, the mountains two hours by car Cuningham has 180 Umami, but Fleischman said hotels, nightclubs and restau- country was named host of from Seoul. The resort also employees, with about 35 in Brothers SBE’s experience developing rants, including the high-end the 2018 Winter Olympics. includes 700 villa-style resi- Marina del Rey. The firm has Added restaurants made the Nazari- Katsuya sushi chain. The village will be the dences, an indoor water park, designed casinos, hotels, con- ans the best candidates. David Nazarian’s Nimes Games’ official home. live broadcasting stations and vention centers and restaurants. To Menu “I really liked the kind of Capital in Century City is It all started in 2004, when three hotels with a total of But this is the only Olympic platform SBE has, a high- known for its portfolio of envi- the South Korean government more than 1,000 rooms. Village it has designed. It is Umami founder turns level hospitality system, high- ronmental technology compa- hired Cuningham, based in Now that South Korea will likely to be the only one. to Nazarians to grow end technology and pretty nies, including solar thermal Minneapolis, to design the host the Games in 2018, “That’s not really our L.A. burger chain. state-of-the-art stuff for electric power plant developer Olympic Village that would be Alpensia will serve its intend- focus,” he said. “It’s an restaurants,” Fleischman said. SolarReserve. He is also the submitted as part of its bid. ed purpose. unusual business to be in.” Sam Nazarian is famous The Nazarian brothers chief investment officer at his Russia won that bid, but South “It was just four years – Jacquelyn Ryan for his nightclubs and hotels. invested eight figures through family’s investment firm, His brother David, a their respective companies, Nazarian Enterprises. financier, invests in green hospitality group SBE and So will the Nazarian broth- Yanick Godbout, head of val. Sensation Mode of Mon- technology companies. venture capital firm Nimes ers and Fleischman be able to Quebec the Quebec government’s treal will present a fashion Nevertheless, they both Capital. They will also sit on turn Umami into a national hit? Eyes ‘Iris’ L.A. office in Westwood, show for department store know a good hamburger Umami’s board. Darren Tristano, executive conceived the event. buyers and studio cos- when they taste one. The big money will pay for vice president at Chicago mar- Canadian province to “For years I’ve tume designers. So they’re putting millions a huge expansion of the chain, ket research firm Technomic roll out festival tied to been asking, ‘How The festival will be of dollars into opening dozens known for its malt liquor tem- Inc., said Umami is expanding new Cirque show. can I showcase Que- funded half by the more Umami burger restau- pura onion rings and signature at the right time because the bec’s excellence in government of Quebec rants. The Nazarians burgers made with meats national gourmet burger scene Quebec’s government L.A.?’ ” he said. “I and half by corporate announced last month that ground on site. The plan calls is just starting to grow. wants to bask in the reflected saw all the buzz sponsors, such as Air they’ve invested in L.A.’s for 40 new locations in the next “There’s a proliferation of glory of Cirque Du Soleil’s around ‘Iris.’ Why Canada. Umami Restaurant Group. four years in the greater San better burger chains on a new Hollywood show. not use the spot- The Egyptian The Nazarians do indeed Francisco area, Orange and regional basis with the excep- So to capitalize on the light?” Godbout Theater, Hollywood enjoy the food there, said San Diego counties, and other tion of a few national players, opening of “Iris” at the Kodak The festival will run Sept. & Highland Center, El Rey Adam Fleischman, who markets such as Las Vegas. Five Guys and Smash Burg- Theatre in September, the 9 to 25, coinciding with the Theater, Music Box and oth- founded Umami in 2009. Fleischman said the majority er,” Tristano said. “And look- L.A. office of the Canadian opening of “Iris.” ers will host events for free, in Fleischman said he started of the locations will be Umami ing today, 10 different players province is organizing the first Godbout has enlisted some exchange for box office talking to Sam and David Burger eateries, while others will could emerge as the third Quebec in Hollywood festival. local companies. Miracle receipts. Nazarian about investing four be the company’s new concept, largest. The question is: How The goal is to introduce L.A. Mile-based concert promoter “We don’t have a large months ago after meeting Umami Ko, a fast-casual version quickly can you grow and fashion buyers, film producers Goldenvoice is organizing budget,” Godbout said. “But through a mutual friend. that was recently announced. how can you separate from and other potential investors to music shows and L.A. non- we’ve been amazed by the Other investors had been talk- Sam Nazarian’s SBE is the pack?” entertainment-related busi- profit American Cinemath- warm reception.” ing about taking a stake in known for developing hip – Alexa Hyland nesses in Quebec. eque is setting up a film festi- – Jonathan Polakoff

‘Six Degrees of Carl Terzian’ Joe Cilic, an executive with Sotheby’s Inter- Cilic and Barron have kept in touch since position on the neighborhood council last year national Realty in Brentwood, had heard the returning stateside, discussing real estate but was not elected. He now fills one of the coun- name of Lucie Barron through a mutual acquain- opportunities – and chatting at Terzian’s net- cil’s business seats, created to make sure people tance. But when they finally met, it wasn’t on the working sessions. who work in the area have a say in addition to Westside, it was on the other side of the world. those who live there. Now He’s Cooking Gillard said it’s important for businesses to Joseph Gillard, executive chef at Napa Valley get involved in local politics so they can advocate PAGE 3 Grille, wants to do more for Westwood residents for their needs. than feed them. He also wants to see the neigh- “I want to make sure that we balance the CHARLES CRUMPLEY borhood revived. needs of the business community with the neigh- So Gillard, 43, ran for a seat on the 19-mem- borhood’s needs,” he said. “It’s got to be good ber Westwood Neighborhood Council last month for everybody.” Anne Grignon Margaret Grignon Through sheer coincidence, Barron, founder and won. of Century City dispute resolution firm ADR Ser- “It’s unfortunate Family Ties There have been a few hiccups, however. The vices Inc., and Cilic were each among a dozen that we have so many When Anne Grignon started her job as an two get mistaken for each other on the phone. To people at a rehearsal dinner for a wedding in empty storefronts,” associate at law firm Reed Smith LLP recently, add to the confusion, Margaret’s daughter-in- Palermo, Italy. Gillard said. “I want to she saw someone familiar: her mom. law, Marissa Grignon, works in the marketing “We just started talking and realized that in continue to draw atten- Margaret Grignon, a former appellate court department of the same office. this very small town in this small restaurant that tion to Westwood as a judge and a partner in the L.A. office of the Pitts- “We’re constantly getting each other’s e- we had that common link,” he said. community and elevate burgh-based firm, helped recruit her 33-year-old mails,” the 60-year-old Margaret said. Before they ever met, though, Cilic had heard it to the glory days daughter as her appellate practice group got busier. of Barron from Carl Terzian at the PR expert’s when it was a vibrant, The two have been working together just Staff reporters Richard Clough, Natalie Jarvey and regular breakfast networking meetings. popular destination.” about every day. So far, so good. Alfred Lee contributed to this column. Page 3 is “He connects people,” said Cilic, 35. “It was Gillard, who lives in “We think and write very similarly,” Anne compiled by Editor Charles Crumpley. He can be sort of the six degrees of Carl Terzian.” Santa Monica, ran for a Gillard said. reached at [email protected]. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

4 LOS ANGELES BUSINESS JOURNAL UP FRONT AUGUST 1, 2011

News and notes from communities across REGIONAL REPORT Los Angeles County restaurant and bar, co-owned by Eduardo SAN FERNANDO VALLEY Castillo and Alejandro Meza, is at 100 W. Ninth St.

SAN FERNANDO Regional Report Sticking With It: Precision Dynamics To be considered for publication, Regional Corp., a San Fernando maker of medical wrist Report submissions should be e-mailed to: bands and labels, has received a three-year [email protected] contract to be the sole provider of medical labels to Novation, an Irving, Texas, medical Business news from companies in Los Ange- industry supply company. Financial terms of les County or nearby areas is listed on the the deal were not disclosed. page. Please be sure that press releases specify the name of the city and the name of Healthy Boost: Northeast Valley Health the company along with the description of Corp., a San Fernando-based operator of com- the news. Submissions are evaluated on the munity health centers, has received $371,000 basis of company size and the significance of from the Department of Health and Human the announcement. The Business Journal Services and the federal government to buy tries to include as many listings as possible, medical equipment for three San Fernando Burbank: Front entryway of Hotel Amarano, which is undergoing an expansion. but some may not be published due to space Valley school-based clinics. The clinics are on limitations. the campuses of Maclay Middle School in number of agents at the outpost to 150. Rodeo Please address all inquiries to the e-mail Pacoima, and San Fernando and Sun Valley has moved from a 5,000-square-foot office to a NORTH COUNTY address above. If you do not receive a high schools. new 12,000-square-foot office at 23901 Cal- response in a timely manner, abasas Road. call (323) 549-5225, ext. 229. PALMDALE VAN NUYS On Tap: The Yard House, an Irvine-based New Chapter: Trilogy Studios, a Van TRI-CITIES restaurant chain, has opened a restaurant in CORRECTIONS Nuys video game developer, has launched an Palmdale at the Antelope Valley Mall. It has interactive storybook division, Trilogy Touch leased a 10,000-square-foot space at the mall, In the article headlined “Mayor Grabs Ax Studios. The new division will adapt children’s BURBANK at 1233 W. Rancho Vista Blvd. for L.A. City Tax” in the July 25 issue, stories, including the “Harold and the Purple the name of USC professor Charles Crayon” series, for digital devices. Hotel Expansion: Hotel Amarano, a Swenson was misspelled. boutique luxury hotel in Burbank, has launched a construction project to add 32 CENTRAL AREA • • • CALABASAS rooms to the site, boosting guest capacity by An article in the Up Front section of the July 30 percent. The hotel, in the city’s media dis- 25 issue headlined “Insurer’s Curbside Office Expansion: Rodeo Realty, a Bev- trict, is also building a pool and luxury suite DOWNTOWN LOS ANGELES Appeal” gave the wrong name of the com- erly Hills real estate firm, has more than dou- with the hopes of luring more business from pany that sells specialized insurance for food bled the size of its Calabasas sales office and nearby entertainment production facilities such Sewn Up: Pattern Bar has opened in trucks. The name is Risk Strategies Co. plans to hire about 50 agents, bringing the as Warner Bros. Studios and Walt Disney Co. downtown L.A.’s fashion district. The new

Let others argue whether the economy has turned the corner.

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AUGUST 1, 2011 NEWS&ANALYSIS LOS ANGELES BUSINESS JOURNAL 5

availability for the people who need it most.” An applicant begins by going to Zest- Cash.com and choosing the amount of the loan – it can be for up to $800 – and pay- back time, which can be up to eight months. Applicants provide their name, address and other personal data, including Social Security number. ZestCash’s computers then obtain additional credit information, such as an applicant’s bill payment history. Within a few minutes, a representative from ZestCash calls the applicant, confirms information and may ask for additional data. By the end of the conversation, the loan is approved or denied. If it’s a go, ZestCash wires the money to the borrower’s checking account within 24 hours. The company then automatically deducts payments from the same account every 14 days until the loan is paid off. If there’s no money in the account, a ZestCash rep will try to contact the borrower. Merrill said that a $500 loan for five months at a payday loan store costs about $900, compared with about $424 on his website. The traditional payday lender charges a $45 to $60 fee plus about $17 in interest for each $100 on a 14-day loan. But because most bor- rowers can’t pay it back completely in two weeks, the unpaid portion of the loan and its interest rolls over. The average payday loan is rolled over seven to 10 times before being paid off. By the end of five months, the total in fees and interest adds up to more than $900, plus the original $500 in principal. RICHARD CLOUGH/LABJ “In the end, you will have paid a total of Lender: Founder Doug Merrill at ZestCash.com’s Hollywood headquarters. $1,400 for the privilege of borrowing $500 for five months,” Merrill said. In contrast, when ZestCash makes a loan for five months, the borrower makes 11 payments of $84 each, deducted from the bank account every two weeks. The total amount is $924. Scoring Credit High interest Merrill said the main reason his company can charge lower fees is because of better LENDING: underwriting data. People who use payday ZestCash.com hopes to offer low-cost alternative stores usually have thin credit files. The lack of data results in high interest rates because the to payday lenders with its Google-inspired data analysis. lender is taking an unknown risk. ZestCash has contracts with companies that By JOEL RUSSELL Staff Reporter lywood. The company made its first loan in order to take business away from payday loan have access to an applicant’s rent payments October and now has a loan portfolio worth stores, which serve about 19 million customers and cell phone credit history. Merrill said his HEN Doug Merrill’s sister asked him more than $1 million. annually in the United States, according to the software helps determine creditworthiness, and to lend her a few hundred dollars for Last month, the company announced a $19 Community Financial Services Association of his system results in lower default rates so W new tires, it inspired him to start a million round of investment. A total of $11 America, a Washington, D.C.-based trade ZestCash can charge less for its loans. company. million came from three venture capital firms group for payday lenders. But the rates are still high, and the payday Merrill, a former chief information officer including GRP Partners in Los Angeles to “Our mission is to save billions of dollars lending storefronts do offer a personal touch, at Google Inc., felt sure his sister would pay fund hiring and expansion of ZestCash into for the country’s underbanked,” Merrill said. one analyst noted. So ZestCash might face him back. And he figured if he didn’t loan her new states beyond the four where it now oper- “We’re taking an entirely different approach to some market resistance. the money, her only alternative was expensive ates. In addition, an $8 million line of debt underwriting that combines Google-style Paul Leonard, director for California at the payday loans or a pawn shop. financing will get loaned out to customers. machine learning techniques, large-scale data Center for Responsible Lending in Oakland, In 2009, Merrill launched ZestCash, an ZestCash offers lower charges and interest analysis and traditional credit scoring. The online petty cash lender headquartered in Hol- rates – about half the cost in certain cases – in result is better loan decisions and more credit Please see LENDING page 32 Investors Devalue Firm’s Plan for Stock Offering cents July 27, down 36 percent from the day two and a half years. Later this year, he said BIOTECH: CytRx CEO before and 41 percent from a week earlier. CytRx Corp. (Nasdaq: CYTR) the company plans to start a mid-stage, “My sister is an investor in the company West Los Angeles FRI. CLOSE, PAST 5 WKS worldwide study of Inno-206, a drug that tar- 0.8 defends decision despite CEO: Steven Kriegsman and I even got a call from her,” Kriegsman 0.7 gets tumors and allows for larger doses of

tumble in share value. said. “She couldn’t understand – she paid Employees: 15 0.6 chemotherapy. $3.50 for the stock. She wasn’t very happy Market Cap: $45 million 0.5 “In order to do that and do it well and get By JAMES RUFUS KOREN Staff Reporter with her brother.” July 27: $0.41 the kind of efficacy we’re looking for, you P/E*: N/A 0.4 CytRx reported 110 million shares out- 0.3 don’t want to run the risk of not having enough Sometimes, says CytRx Corp. Chief Exec- standing as of July 15. The offering of 39.2 EPS: -$0.05 6/24 7/1 7/8 7/15 7/22 capital,” he said. utive Steven Kriegsman, you have to do “the million new shares and a like amount of war- *Twelve months trailing. Source: Yahoo Finance Kriegsman said the CytRx board decided ugly financing.” rants would increase the number of shares out- the timing was right to make the move. For the West L.A.-based biotech company, standing by 36 percent, or up to 71 percent if raise capital (through an offering) what appears “Our board felt that, because of the condi- last week was one of those times. CytRx shares all warrants in the offering were exercised. to be happening is you’re diluting. But what tions in the market on a worldwide basis, we plunged after the company announced it would Kriegsman acknowledged that the offering you’re really doing is increasing capital and could not run the risk of raising money six seek about $19 million in capital from a stock looks dilutive, but said that dilution was “irrel- increasing the overall value of the company.” months from now,” he said. “We’ve seen, offering that Kriegsman acknowledged looked evant” for CytRx shareholders. He said CytRx plans to use the capital overall, the smaller biotechs not particularly dilutive to many stockholders. “In order to build a major biotech company, raised through the offering to continue clini- doing well in the market. We didn’t want to be Shares fell to a new 52-week low of 41 you have to raise capital,” he said. “When you cal trials of three cancer drugs for the next left empty-handed.” 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

6 LOS ANGELES BUSINESS JOURNAL NEWS & ANALYSIS AUGUST 1, 2011 Postproduction Company Looks to Channel 3-D TV Both ADS and DDD use software to identi- ENTERTAINMENT: ADS fy where 3-D could be added to a shot. A tech- sees conversion of 2-D nician then does the conversion. Thomas Engdahl, chief executive of ADS, shows as business boost. is marketing the new service to studios and production companies. Those customers can By JONATHAN POLAKOFF Staff Reporter then sell the 3-D content to cable and satellite providers including Comcast and DirecTV, Postproduction and technology companies sud- which both have 3-D channels. denly are competing to convert old reruns into new In June, Disney became the first studio to 3-D TV. They’re hoping 3-D catches on in home launch a 3-D channel, ESPN 3-D. theaters this year as it did in movie theaters in 2010. But there could be more to come. Last week, Hollywood postproduction This March, studios began sending Engdahl company Advanced Digital Services Inc. clips of old shows, asking if he could convert announced the addition of conversion services them to 3-D on a trial basis. That spurred him to to its repertoire, looking for studios that want train three members of his postproduction team in to convert 2-D TV libraries to 3-D. ADS is stereography, the technique used for conversion. competing with Dynamic Digital Depth, a In the following months, he has seen more RINGO H.W. CHIU/LABJ Westchester-based technology company that interest from studios looking to convert and Big Pictures: Chief Executive Thomas Engdahl at ADS office in Hollywood. licenses mobile 3-D conversion technology. commercialize footage that would otherwise be sitting on a shelf. He said he’s in talks with two studios and a production company, but declined to name them. ACG LOS ANGELES ADS’ main business will remain in other BUSINESS CONFERENCE areas of postproduction, including creation of 2011 media kits, high-definition conversions and GROWTH STRATEGIES | M&A | FINANCE editing. The company has 86 employees. “We’re all about monetizing,” Engdahl said. “Two-D to 3-D is enhancing our cus- JOIN US FOR THE NATION’S PREMIER DEAL FLOW AND BUSINESS CONFERENCE tomers’ ability to make money.” Content-Rich Breakouts | Extraordinary Deal Flow and Networking Opportunities ADS charges about $3,000 to $5,000 per minute of conversion, while DDD charges around SEPTEMBER 20 – 21, 2011 | BEVERLY HILTON HOTEL $10,000 per hour for TV conversions. Both companies have a similar approach, but ADS has a GOLD SPONSORS more detailed technical process. And both are con- Bingham McCutchen LLP Capital IQ sidered in the middle of the pricing pyramid. For Etonien comparison, conversion of theatrical films from 2- Houlihan Lokey D to 3-D can run up to $100,000 per minute. Intrepid Investment Bankers LLC DDD, which has 30 employees, and ADS Los Angeles Business Journal Kibel Green offer relatively lower prices in part because PETER GUBER McGladrey conversion for TV requires less labor. Rather Chairman and CEO, Mergers & Aquisitions than work on each frame individually, as is Mandalay Entertainment PitchBook Group PwC done for theatrical releases, TV technicians The Deal convert entire scenes at once. The M&A Advisor KNX 1070 News Radio Low demand KPMG Sheppard Mullin Richter & Hampton LLP The conversion opportunities are ultimately Thomson Reuters tied to how popular 3-D TVs become. Last year, TSG Consumer Partners only 1.2 million 3-D TVs were sold in North Union Bank America, according to New York market ARIANNA HUFFINGTON LAWRENCE H. SUMMERS CORPORATE SPONSORS research firm ABI Research. High prices and lit- JOE TORRE Ernst & Young President and Editor-in-Chief of Director, White House National tle content were two reasons cited by El Segundo Economic Council for President Legendary Baseball GreenbergTraurig The Hufﬁ ngton Post Media Group Barack Obama, 2009-2010 Manager and EVP of research firm iSuppli for low consumer demand. Major League Baseball O’Melveny & Myers LLP Wells Fargo Capital Finance But ABI projects 3.2 million 3-D sets will CORPORATE EXECUTIVE & be sold in North America this year. BUSINESS OWNER TRACK Still, TV buyers don’t make their purchasing USC Marshall School of Business decisions based on 3-D, said Jason Blackwell, an NEW BDO ABI analyst. Sales are projected to increase because Duff and Phelps high-end TVs will offer 3-D as an added feature. CONFERENCE NACD – Southern California Chapter SAP Business by Design But with 3-D TVs arriving in more homes, SESSIONS even if not a result of direct consumer demand, HENRIK FISKER HARRY MARKOPOLOS KEVIN FREIBERG IN 2011 SPECIAL EVENT SPONSORS Engdahl hopes to make the shows feel natural Co-founder, CEO and Madoff Best Selling Author CapitalSphere Executive Design Director, to the point where a viewer hardly realizes the Whistleblower and Entrepreneur Fisker Automotive Crowe Horwath D.A. Davidson & Co. added depth. DLC Engdahl compares the adoption of 3-D in FocalPoint Partners the home to that of high-definition TVs a few NEW TRACKS FOR 2011! GE Capital Gemini Partners years ago. Greif & Co. “It’s a duplicate paradigm of when HD came WOMEN’S FORUM Manatt, Phelps & Phillips, LLP on,” he said. “It’s richer and more interesting.” Sheppard Mullin Richter & Hampton LLP But the 3D-conversion business faces spe- TUESDAY, SEPTEMBER 20 11 A.M. TO 1:00 P.M. TSG Consumer Partners | VACO cial challenges. Some content doesn’t convert well. Shows like “The Office,” filmed with SILVER SPONSORS handheld cameras, are poor candidates due to CORPORATE EXECUTIVE Crowe Horwath Generational Equity the shakiness and lack of depth in the sets. BUSINESS OWNER TRACK Grant Thornton Other shows, shot in standard definition, AND Jeffer Mangels Butler & Mitchell LLP must be upgraded to high definition before SEPTEMBER 21 PNC Business Credit being converted to 3-D. WEDNESDAY, | 10 A.M. TO 12:00 P.M. Robert Half SingerLewak In addition, channels such as 3Net, a joint Stillwater Business Park venture launched in June by Sony, Imax and Dis- Presented by U.S. Bank Asset Based Finance covery, will only show programming originally WOMEN’S FORUM SPONSORS shot in 3-D, so no conversion will be necessary. Pepperdine Private Capital Markets Project That leads some to believe that if 3-D TV catch- NAWBO-LA es on, converted footage may just be a place holder before native 3-D footage is widely available. SUPPORTING SPONSORS “There is a market for the near future,” said Kaye Scholer Register at www.acglaconference.com Moelis Capital Partners Philip Lelyveld, program manager for the Con- sumer 3-D Experience Program at USC’s Enter- tainment Technology Center. “But native 3-D Sponsorship Opportunities: Mina Trujillo 310.444.9065 | Email: [email protected] content is coming a lot faster than people expected. Conversion may be just a transitional need.” 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

AUGUST 1, 2011 NEWS & ANALYSIS LOS ANGELES BUSINESS JOURNAL 7 Soon-Shiong’s Institute Plugs Into Data Network NON-PROFIT: Billionaire Known as NLR, the network has 12,000 miles lion will fund the extension of the cable net- medicine in that we are harnessing data to look of cable across the United States. work to more universities, hospitals, drug com- at what is happening to one particular patient.” takes reins at struggling Soon-Shiong, the new chief executive of panies and other users. In a statement, Soon-Shiong said NLR NLR, plans to invest $100 million to upgrade Soon-Shiong’s interest in NLR stems from “will serve as a cornerstone of our long-held National LambdaRail. and expand the system. Part of the money will his long-term goal to create a national informa- vision to establish a secure national intranet of go toward the accumulated debt of NLR, tion network for the health industry. Peirce health, and a digital infrastructure for continu- By DEBORAH CROWE and which has been in the red for years for as cash- said the CSS Institute plans to connect genetic ous improvement in health and health care.” JOEL RUSSELL Staff Reporters strapped universities have had to stop paying labs with each other and ultimately to health Soon-Shiong made his fortune by selling membership and user fees. care providers. That infrastructure would allow APP Pharmaceuticals and Abraxis Bio- L.A. billionaire Patrick Soon-Shiong has Bob Peirce, an adviser to Soon-Shiong, said a patient’s genes to be evaluated by labs, with Science Inc., which develops cancer drugs. He taken on a new challenge: the turnaround of he expects Soon-Shiong will be able to get the results transmitted to a doctor who could give is No. 1 on the Business Journal’s list of one of the nation’s largest non-profit research network back on track soon. personalized treatment. Wealthiest Angelenos with an estimated worth networks. “There is a substantial amount of red ink, Earlier this year, the CSS Institute built two of $7.8 billion. Last week, the Chan Soon-Shiong Institute but we think we can turn that around pretty data centers and a supercomputer in Phoenix He’s now focused on health care-oriented for Advanced Health announced it will take quickly,” Peirce said. “It’s fundamentally a job as the hub of a national health information sys- philanthropy, and pledged $100 million to help over management and financial responsibility of marketing. NLR is a national asset that most tem. NLR will connect to these facilities. reopen Los Angeles County’s troubled Martin for National LambdaRail, a fiber-optic network people have never heard of. As we extend its “Our goal is not just to operate a pipeline Luther King. Jr. Hospital in Willowbrook. that connects universities and government labs reach and capacity, it will generate more inter- for data, but to provide the analysis of huge The Chan Soon-Shiong Institute is named so that scientific and medical researchers can est and revenue.” amounts of data, too,” Peirce explained. “You in honor of his father and the father of his wife, share data too massive for the regular Internet. In addition to paying off debt, the $100 mil- can look at this as the dawn of 21st century Michele Chan. Downtown L.A. Company Forges Healthy Quarter METALS: Reliance sees net income and sales rise compared with a year ago.

By HOWARD FINE Staff Reporter

If steel and aluminum sales can be considered a bellwether of general economic performance, then the news from Reliance Steel and Aluminum Co. last week shows that the economy is not doing badly. The downtown L.A. metals service company reported strong second quarter earnings, with net income of $98.7 million, up 60 percent from a year ago. “We are pleased with our results, which were slightly better than we originally expected,” Chief Executive David Hannah said in a statement. A day earlier, the company announced it had secured a $1.5 billion credit facility from a consortium of 26 banks. That’s 40 percent larger than its previous credit line and the agreement allows for an additional $500 million increase next year. That showed that the credit crunch might be easing for certain companies, and it also signaled Reliance’s readi- ness to make more acquisitions. The company’s fundamentals look good, said Timothy Hayes, research analyst with Rich- mond, Va.-based Davenport & Co. LLC. Hayes reiterated his “buy” recommendation last week. “The better economy has led to two things for Reliance: more sales volume and, just as important, an increase in sales of metal that’s more expensive,” he said. As one of the nation’s largest metals service center companies, Reliance buys raw steel and aluminum from mills and shapes it into smaller blocks that meet the demands of its customers, typically machine shops serving industries such as aerospace or energy. During the second quarter, demand was particularly strong for more expensive metals – particularly aluminum – used in the energy and aerospace sectors. Reliance also benefited from a general run-up in metal commodity prices that peaked early in the quarter. The combination of these trends pushed sales to $2.05 billion, up 26 percent from second quarter 2010, but just below the consensus analyst estimate of $2.07 billion. In a conference call with investors, Reliance CEO Hannah said uncertain economic times can sometimes lead to more sales for his company because it makes smaller order batches. In those conditions, machine shops and other customers sometimes buy more of those instead of bigger orders. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

8 LOS ANGELES BUSINESS JOURNAL NEWS & ANALYSIS AUGUST 1, 2011 Earnings Something to Bank on in Second Quarter Beach bank consulting firm Unicon Financial the second quarter. Analysts had expected 14 Still, that was a dramatic improvement BANKING: Results of most Services Inc., said there has been growing cents a share. However, the holding company from the first quarter, when Wilshire reported L.A. institutions met or optimism for several quarters and the latest for Center Bank was profitable for the sixth red ink of more than $52 million. After its earnings show that the worst is straight quarter. most recent earnings report, the bank’s stock beat analyst expectations. over. Six of the seven Los Angeles jumped nearly 9 percent. “The positive news for banks County banks that had reported “This is a very significant increase in share By DENIZ KORAY Staff Reporter should be expected,” he said. “The earnings as of July 27 were prof- price,” said Aaron James Deer, an analyst with banks that have made it this far have itable in the second quarter. Kore- Sandler O’Neill & Partners in San Francisco. A stack of strong earnings shows that a very good chance at survival.” atown’s Wilshire Bancorp Inc. “Especially since most banks were down for L.A.’s banking industry is continuing on the Indeed, survival had been in was the only one to lose money, the day.” path to recovery. doubt for some local banks not long and that was because of a one-time City National, the downtown L.A. parent of Six of seven local publicly traded banks met ago. Koreatown’s Hanmi Finan- write-down. City National Bank, surpassed expectations or exceeded expectations with their second cial Corp. reported huge losses The holding company Wilshire with second quarter net income of $47.5 mil- quarter earnings, a sign that that the industry during the downturn, but had net State Bank recorded a net loss of lion, or 88 cents a share. Analysts had expect- continues its upswing after several dismal years. income of $8 million in the recent Goldsmith $4.6 million, or 9 cents a share, for ed 77 cents. The results beat both the previous The better-than-expected reports came from second quarter, its third straight the quarter. But that was due to a quarter and the same quarter last year. across the spectrum, from big banks such as profitable quarter. $6.7 million noncash goodwill impairment It was “(the) best quarter in more than three City National Corp. to small institutions such Center Financial Corp., the only bank that charge caused by falling share prices. Without years with improvements across the board in as Preferred Bank. didn’t meet analyst expectations, reported net that, Wilshire’s earnings would have been posi- loans, deposits and credit quality,” Chief Exec- Wade Francis, chief executive of Long income of $4.9 million, or 10 cents a share, for tive, with a $2.1 million profit, or 4 cents a share. utive Russell Goldsmith said in a statement. Preferred Bank, meanwhile, was expected to have a loss of 3 cents a share, but instead posted a profit of $1.7 million, or 13 cents a share. That was a strong reversal from a year ago, when the bank lost more than a buck a A GREAT CITY DESERVES share. The earnings drove Preferred stock to $8.27 A TRUE COMMUNITY BANK WITH CAPACITYCAPACITY on July 27, up 11 percent from the week before. It was the top gainer on the LABJ Stock Index (page 24). Julianna Balicka, an analyst with New York-based Keefe Bruyette and Woods Inc., noted that some banks’ earnings were actually held back by efforts to clean up lingering asset quality issues. Koreatown bank holding company Nara Bancorp Inc., for instance, met expectations at 14 cents a share after disposing TORREY PINES BANK FINANCES BUSINESS LOANS AND REAL ESTATE PROJECTS of about $26 million in loans. “Their earnings had the potential to be even higher if they hadn’t sold off some of their problem loans,” Balicka said. “Their earnings Torrey Pines Bank honors the many real estate and PAUL DONALDSON could have been up to 24 cents per share for Division President, Los Angeles the quarter.” construction professionals who have ensured Los Angeles Deer said that 64 percent of U.S. banks 213.362.5201 an economically diverse region. From the mountains reported earnings that exceeded analyst expec- [email protected] tations, while 24 percent did worse than to the sea, your projects keep businesses growing and expected. That means L.A. banks actually had communities strong. It’s the shared vision of a strong a stronger showing than their U.S. peers. ADAM DJOU He added that many institutions are looking community that keeps Torrey Pines Bank focused on to grow their loan portfolios. Senior Vice President providing financing to help your projects and this region “We’ve been in the midst of a rebound for 213.362.5299 flourish, today and well into the future. several quarters, and now the banks have got- [email protected] ten some traction on loan growth,” he said. “It might sound contrary to media reports, but We offer deep knowledge of local businesses, an extensive most banks have been eager to bring in new NORIKO OAKLAND clients. Their livelihood is in making loans.” line of innovative banking products, highly personalized Senior Vice President Meanwhile, an improvement in banks’ service, uncommon lending capacity and fast decision– 213.362.5210 long-term outlook can allow the institutions to [email protected] draw down their loan loss reserves, which making. And with the support of Western Alliance were higher at the depths of the recession. Bancorporation, a $6 billion regional bank holding Francis said many banks set aside extra cash in the event of catastrophic loan losses; the cash company with operations in Arizona, California and LORA WONG can now be used to pad net income in the com- Nevada, it’s the kind of community bank Los Angeles Senior Vice President ing quarters. businesses deserve. 213.362.5288 “The storm is coming to a close, so the [email protected] sandbags are no longer necessary,” he said. “But were they useful during the storm? Of With a strong financial foundation let Torrey Pines Bank course.” structure your next project. ANN YASUDA Senior Vice President List Updates 213.362.5218 The Los Angeles Business Journal is compil- FINANCIAL STRENGTH* [email protected] ing information for the following lists: Ŷ $1.6 Billion in assets • New Auto Dealers Ŷ All capital levels exceed FDIC requirements • Largest Construction Projects NEED TO TALK ABOUT YOUR BUSINESS? • Largest Employers Ŷ Non-performing assets are a mere 0.78% of total assets TALK TO US. | 213.362.5200 To determine whether your company qualifies, indicating market expertise and prudent fiscal practices please send the company name, address, contact Ŷ Over $1 million donated to charities person's name and telephone number to dnus- [email protected]. Subsequent to publication of a List, if your company moves, changes its name, replaces its top local executive, or gets a new phone number, please submit those changes on company letterhead to the above TORREYPINESBANK.COM address before Nov. 15 so they can be incorporated into the year-end Book of Lists. No revi- * As of 06/30/11. sions of data used to determine rankings will be 7RUUH\3LQHV%DQNLVDQ$I¿OLDWHRI:HVWHUQ$OOLDQFH%DQFRUSRUDWLRQ considered for republication in the Book of Lists. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

AUGUST 1, 2011 LOS ANGELES BUSINESS JOURNAL 9

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10 LOS ANGELES BUSINESS JOURNAL NEWS & ANALYSIS AUGUST 1, 2011 Calabasas Company Takes Growth Plan on Trial Run ENGINEERING: Expansion “Thanks to the acquisition of Ingenium, NTS can further augment … testing capabilities and QUATEMAN of NTS continues with increase its access to more customers,” he said. NTS anticipates the acquisition will con- the firm’s second pickup. tribute at least $3 million in earnings before interest, taxes, depreciation and amortization in + By HEEJIN PARK Staff Reporter the first full fiscal year after the acquisition. Ingenium’s work force and operations will National Technical Systems Inc.’s recent remain in Rockford; NTS will operate the acquisition of an Illinois testing company is a company as part of NTS Technical Systems. clear indication of how it wants to grow: by Growth and expansion have been goals of POLSINELLI scooping up firms that expand its geographic NTS for five years, but the company has just reach and customer base. begun to put its plan into action. The Calabasas company, which does engi- Last November, the company signed an neering and testing for aerospace, defense, amended credit agreement that included $20 telecommunications, automotive and high- million for acquisitions. The following month, tech companies, acquired Rockford, Ill.- it bought Mechatronic Solutions in Albu- based Ingenium Testing for $12.5 million in querque, N.M. Mechatronic is a consultant to cash July 21. aerospace and defense companies. Ingenium’s business is concentrated in the Planning for other acquisitions, NTS com- aerospace, heavy industry and automotive markets. pleted a $14 million private placement of debt NTS acquired all of the business and assets of and equity with Greenwich, Conn.-based Mill Ingenium and two affiliated companies. The acqui- Road Capital in June. Most of that money sition expands NTS’ presence to the Midwest. covered the cost of the Ingenium deal, which “It’s a good strategic acquisition,” said sets the stage for others. Michael Lowell, a managing director at West “The acquisition of Ingenium is a signifi- L.A.’s B. Riley & Co., which helped finance cant step in our strategic plan to grow NTS the deal. “Through this acquisition, NTS into a larger, more diverse and more compre- makes its presence in the Chicago region and hensive provider of testing and engineering also they can add more customers.” services,” said William C. McGinnis, president NTS can use Ingenium to offer more ser- and chief executive of NTS. “We will continue vices to its clients, said Erik Choy, vice presi- to seek additional opportunities.” dent of Costa Mesa’s McGladrey Capital Revenue has almost doubled since 2005, Markets LLC. Choy was a financial adviser from $73.9 million to $144 million in fiscal on the deal. 2011. Bin Laden Death Weighs Heavy on Firm’s Shares

TECHNOLOGY: NetSol Netsol (Nasdaq: NTWK) Technologies Inc. FRI. CLOSE, PAST 5 WKS says Pakistani unrest Calabasas 1.9 CEO: Najeeb Ghauri 1.7 Comprehensive counsel coast-to-coast. caused customer concern. 1.5 Employees: 732 July 27: $0.83 1.3 Market Cap: $48.7 million 1.1 A full spectrum of practice areas and a 540-strong By NATALIE JARVEY Staff Reporter P/E*: 5 0.9 0.7 team of attorneys bring our clients the vast resources The killing of Osama bin Laden has taken a EPS: $0.17 6/24 7/1 7/8 7/15 7/22 toll on the stock of a Calabasas business soft- *Twelve months trailing. Source: Yahoo Finance needed in today’s complex legal environment. With ware company. Shares of NetSol Technologies Inc. were worried about the security of its Lahore locations in key markets across the country, and plummeted 45 percent last week to 83 cents, facility after unrest in Pakistan that followed making it the week’s biggest loser on the the killing of bin Laden. Those customers now coast to coast with the addition of Los Angeles – LABJ Stock Index (see page 24). The stock delayed signing contracts with NetSol until plunged after the company announced that the company explained its emergency- we’re everywhere you need to be. unrest in Pakistan after an American raid on response plan. bin Laden’s compound in May forced it to “These concerns first came to our atten- lower earnings expectations for its 2011 fis- tion in mid-May (and delayed) a few back- cal year. The company has a big office in logged license agreements that were sched- Pakistan, and customers there delayed buying uled to be signed,” Ghauri said. “It was this from NetSol. reaction that caused the shortfall in our rev- NetSol, which will release fiscal year earn- enue guidance.” ings in September, announced July 21 that it For the third quarter of its fiscal year, Net- anticipates revenue for the year to fall between Sol reported revenue of $10.8 million, up from $35 million and $36 million. The company had $8.9 million in the same period last year. Net previously provided guidance of $40 million to income was $3.3 million compared with $44 million. $589,000 in the third quarter last year. NetSol Chief Executive Najeeb Ghauri In response to recent customer concerns attributed the decrease to “geopolitical issues about security, NetSol is expanding its center that contributed to a longer-than-expected sales in Bangkok, where the company develops cycle” in a statement. software, provides tech support to customers NetSol executives were not available for and does business analysis. NetSol plans to

Chicago | Dallas | Denver | Edwardsville | Jefferson City | Kansas City | Los Angeles | New York comment for the story. add sales and marketing teams in Bangkok The 732-person company licenses its soft- and to increase its technology staff there from Overland Park | Phoenix | Springﬁeld | St. Joseph | St. Louis | Topeka | Washington, D.C. | Wilmington, DE ware technology primarily to businesses in the 10 to more than 50 within the first half of the health care, financial services and manufacturing 2012 fiscal year. industries. It has offices in eight cities, including Building up the company’s Bangkok Polsinelli Shughart PC. In California, Polsinelli Shughart LLP. The choice of a lawyer is an important decision and should not Lahore, Pakistan, and Bangkok, Thailand. office should help alleviate its dependence on be based solely upon advertisements. polsinelli.com In a July 28 conference call with its Lahore location, Ghauri said in the confer- investors, Ghauri said that NetSol customers ence call. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

AUGUST 1, 2011 NEWS & ANALYSIS LOS ANGELES BUSINESS JOURNAL 11

MEDIAWATCH

MOVIE BOX OFFICE Weekend Gross Total Gross Rank Title (millions) (millions) Distributor 1 Captain America: First Avenger $65.1 $65.1 Paramount 2 Harry Potter 47.4 273.5 Warner Bros. 3 Friends With Benefits 18.6 18.6 Screen Gems 4 Transformers 12.1 325.8 Paramount 5 Horrible Bosses 11.9 82.6 Warner Bros. 6 Zookeeper 8.7 59.2 Columbia 7 Cars 2 5.7 176.4 Disney 8 Winnie the Pooh 5.2 17.6 Disney 9 Bad Teacher 2.6 94.4 Columbia 10 Midnight in Paris 1.8 44.8 Sony Weekend ended July 24 Source: Bloomberg News

PRIMETIME TV SHOWS Rank Program Network Rating* 1 America's Got Talent (Tues.) NBC 7.3 2 NCIS CBS 6.6 3 America's Got Talent (Wed.) NBC 5.9 4 (tie) 60 Minutes CBS 5.3 4 (tie) Bachelorette ABC 5.3 Week ended July 24 *Each rating point equals 1.1 million homes. Source: Bloomberg News CABLE TV SHOWS Rank Program Network Rating* 1 The Closer TNT 4.2 2 Rizzoli & Isles TNT 4.1 3 (tie) Pawn Stars (Mon., 10:30 p.m.) History 3.9 3 (tie) Pawn Stars (Mon., 10 p.m.) History 3.9 5 American Pickers History 3.3 Week ended July 24 *Each rating point equals 1.1 million homes. Source: Bloomberg News TOP SELLING ALBUMS Rank Last Week Artist Title Label 1 New Blake Shelton Red River Blue Warner Bros. 2 New Incubus If Not Now, When? Epic/Immortal/Sony Music 3 2 Adele 21 XL Recordings/Columbia 4 New Chris Young Neon RCA Nashville/Sony Music 5 1 Beyonce 4 Columbia Week ended July 29 Source: Billboard.com

MOVIE RENTALS - DVD/VHS Rank Last Week Title Distributor 1 New Lincoln Lawyer Lions Gate 2 New Insidious FilmDistrict 3 New Rango Paramount 4 1 Season of the Witch Relativity RED MOUNTAIN 5 3 Unknown Warner Bros. Retail Group Week ended July 17 Source: Rentrak

DVD SALES Rank Last Week Title Distributor Suggested Retail 1 New Rango Paramount $29.99 2 New Lincoln Lawyer Lions Gate $29.95 3 New Insidious FilmDistrict $30.99 4 6 Harry Potter: Warner Bros. $28.98 Deathly Hallows Part 1 5 New Arthur Warner Bros. $28.98 Week ended July 17 Source: Rentrak MOVIELINK DOWNLOADS Rank Title Distributor Suggested Retail 1 Arthur Warner Bros. $15.95 2 Rango Paramount $15.95 3 Lincoln Lawyer Lions Gate $15.95 4 Limitless Relativity $15.95 5 Source Code Summit $15.95 Week ended July 27 Source: Cinemanow.com

OUTTAKE OF THE WEEK SHIELD BEATS WAND Captain America may not have set any box office records, but the WWII-era comic-book hero’s debut packed enough punch to knock Harry Potter out of first place. “Captain America: The First Avenger,” starring Chris Evans, left, is the set-up for Paramount’s superhero team-up “The Avengers.” 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

12 LOS ANGELES BUSINESS JOURNAL NEWS & ANALYSIS AUGUST 1, 2011 L.A. Companies’ Public Perception Gets a Boost

Co., Targeted Medical Pharma Inc. and Executive Dennis Huber said in a statement. INVESTMENT: IPO filings GameFly Inc. in the pipeline. SCE was founded in 1952 to serve workers Still, not every offering is generating a lot of Southern California Edison. picked up in second quarter of interest. following sluggish first. Wesco, which registered in April, fell short Free and Clear of expectations when it went public last week. Several top credit union leaders can finally FTER several stops and starts over the The Valencia aerospace supplier, owned by breathe a little easier. past few years, L.A.’s IPO market is private-equity firm Carlyle Group, priced 21 A federal judge in Los Angeles last week A showing signs of healthy activity, million shares at $15 apiece, raising $315 mil- officially dismissed complaints brought by fed- according to a new report. lion. Shares had been expected to price eral regulators against the former directors of Two local companies went public during between $15.50 and $17.50. In its first full day Western Corporate Federal Credit Union, a the second quarter, while three other compa- of trading, shares fell slightly, closing July 28 San Dimas institution that failed in 2009. nies filed papers for an initial public offering, at $14.92. Among the dozen defendants dismissed was Wesco’s offering came soon after Boingo Bill Cheney, the former head of the California Wireless Inc.’s debut. The Santa Monica Wi- Credit Union League. BANKING & Fi network operator met expectations in May The National Credit Union Administration, FINANCE with a $78 million IPO, but shares have fallen a regulatory body overseeing the nation’s cred- 34 percent from the offering price. it unions, had filed a lawsuit against the former RICHARD Air Lease Corp. has also sputtered, but not officers and directors of the corporate credit as badly. The Century City jetliner leasing union, known as WesCorp, seeking more than CLOUGH company raised a whopping $800 million in its $1 billion in damages, alleging the directors April IPO, but shares have fallen 8 percent pursued overly risky investments that led to the since then. failure. joining three that were already in the pipeline, The dismissal of charges had been expect- according to Ernst & Young LLP’s U.S. IPO Nevada Merger ed. U.S. District Court Judge George Wu had Pipeline study released last week. SCE Federal Credit Union, which for said previously that the directors were cov- Nationwide, 82 companies filed to go pub- decades has served the market around its ered by California’s so-called business judg- lic, bringing the total number in the pipeline to Irwindale headquarters, is going to Sin City. ment rule, but he gave the plaintiffs time to 140: the highest levels since before the finan- The credit union, which has nearly $500 respond. Cheney: Judge dismisses suit. cial crisis. million in assets, recently announced it will However, Wu did not dismiss the charges “After a somewhat … sluggish first quar- absorb Sonepco Federal Credit Union, a against three of WesCorp’s former officers, boards of City National Corp. and its sub- ter, activity has definitely picked up and we small Las Vegas institution. The merger, meaning the lawsuit will likely proceed to trial sidiary, City National Bank, for undisclosed see a host of technology, energy and finan- which requires approval from regulators and unless a settlement is reached. Wu set a sched- reasons. … Comerica Bank has hired John cial companies ready to come to market and Sonepco’s members, will boost SCE’s assets uling conference for Aug. 25. Tellenbach as group manager for its Los bolster second-half results as well,” Herb to $560 million, and give it 50,000 members Angeles County business banking operations Engert, an Ernst & Young executive, said in and 10 branch locations. C-Suite News and James Kelley as alternate group manager a statement. “The current plans to merge with Sonepco First California Financial Group Inc., the for the same division. In Los Angeles, Wesco Aircraft Holdings will benefit each organization, most notably Westlake Village holding company for First Inc., Oaktree Capital Group LLC and Ceres providing all members with an expanded California Bank, announced that Gilbert Dal- Staff reporter Richard Clough can be reached Inc. each filed papers during the second quar- branch network when they travel between mau has been appointed chief banking offi- at [email protected] or at (323) ter to go public, joining TMAC Mortgage Southern California and Nevada,” SCE Chief cer. … Alison Davis has resigned from the 549-5225, ext. 251.

YO U RESER TAB R CO The Los Angeles Business Journal LE TORPO VE D RATE is pleased to present the 5th annual AY! Best Places to Work Awards.

Awards Luncheon: Tuesday, August 9, 2011, 11:00a.m. – 1:30p.m. J.W. Marriott at L.A. Live, Platinum Ballroom, 900 W. Olympic, Los Angeles, CA 90015 Individual tickets: $125 each; Corporate table of 10: $1,000

This event is designed to honor Los Angeles’ best employers. Local employers are given the opportunity to participate in a professional program conducted by Best Companies Group on subjects such as Leadership and Planning, Corporate Culture and Communications, Training and Development, Work Environment and much more. Join the Los Angeles Business Journal as we identify and recognize these outstanding workplaces at an exciting awards celebration.

Advertising Supplement: August 15, 2011 PRESENTING SPONSORS:

For more information or to reserve tickets GOLD SPONSORS: please contact Marissa De La Cruz at Bentley Prince Street, Inc. Pepperdine University Graziadio 323.549.5225 ext. 213 or email: School of Business and Management Bingham Ryan, LLC [email protected] Kaiser Permanente Vaco Los Angeles, LLC Palmer, Lombardi & Donohue LLP Partners Trust Real Estate Wells Fargo Bank Brokerage & Acquisitions Walker Financial Partners, LLC 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

AUGUST 1, 2011 LOS ANGELES BUSINESS JOURNAL 13

With you when your passion qrows into somethinq more

America’s #1 Small Business Lender Businesses have always had a big impact on our country’s growth. Wells Fargo believes in the potential that can come from one person’s dream. As America’s #1 small business lender1 and the largest SBA lender2, we’re providing financial resources to help you pursue your passion. Because at Wells Fargo, we mean business. For over 159 years, we’ve been dedicated to helping businesses succeed. Stop by your local Wells Fargo store or call 1-800-35-WELLS to find out how we can help. Or for free financial information, visit our Business Insight Resource Center at wellsfargobusinessinsights.com.

12009 Community Reinvestment Act government data. 22010 Small Business Administration federal fiscal year-end data, in dollar volume. © 2011 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

14 LOS ANGELES BUSINESS JOURNAL NEWS & ANALYSIS AUGUST 1, 2011

Last week’s major news from labusinessjournal.com NEWS OF THE WEEK and other sources

Stadium Bonds: L.A. Live complex rendering. Mayor’s Race: Beutner Assessments: Property values up. Bollywood: Screwvala

STADIUM BONDS: Under burg, Md., has acquired running a private equity firm, erty values in the region board resigned last month as quarter net loss of $30 mil- a draft memorandum of Dworsky Cos., a large L.A. served as first deputy mayor rose 1.5 percent to $1.1 tril- part of the reorganization. lion, compared with net understanding between the commercial landscape ser- and jobs czar for Mayor lion from Jan. 1, 2010, to income of $40.2 million a city of Los Angeles and vices firm, for an undis- Antonio Villaraigosa for Jan. 1 of this year. About BOLLYWOOD BUYOUT: year ago. Revenue fell 14 Anschutz Entertainment closed amount. Dworsky more than a year before three-fourths of the $16.2 Walt Disney Co. has offered percent to $434 million. … Group, the developer will Cos. was founded in 2002 by resigning in April to consider billion jump in values came to pay as much as $454 mil- CB Richard Ellis Group take more responsibility and Dave Dworsky, who has a run for the office when Vil- from residential sales trans- lion to buy out the remaining Inc. reported second quarter risk for financing a $1 billion been in the commercial land- laraigosa terms out in 2013. actions. Properties that half of Indian media company net income of $61.2 million, football stadium and a new scaping industry more than hadn’t been sold in several UTV Software Communica- 11 percent higher than a wing of the Los Angeles Con- 20 years. Its client list JOBLESS RATE: Educa- years were reassessed at tions Ltd. Disney already year ago. Revenue rose 21 vention Center. The MOU includes the Hughes Center, tion-related layoffs pushed higher values when they owns 50.4 percent of the percent to $1.42 billion. … would require the city to issue Sun America and Equity Los Angeles County’s unem- sold. The increase is good Mumbai company, which DreamWorks Animation $195 million in bonds – Office Properties. ployment rate back up to 12 news for the coffers of operates TV channels, and SKG Inc. reported second which would be paid from percent in June and led to a struggling local govern- makes and distributes movies, quarter net income of $34.1 revenue from the project – MAYOR’S RACE: The drop of 9,500 payroll jobs, ments, which generally TV programs and video million, 42 percent higher down from the $350 million Austin Beutner for Mayor according to state figures. receive about 1 percent of games. The Burbank media than a year ago. Revenue first proposed. An additional Exploratory Committee has With little growth in other assessed home values in giant is hoping that UTV will rose 38 percent to $218 mil- $80 million in bonds would reported that it raised areas of the economy, these property taxes. provide it greater visibility in lion. … Northrop Grum- be the responsibility of AEG. $405,034 in its first 11 weeks cutbacks forced the jobless south Asia. Under the deal, man Corp. reported second If the company fails to pay the of operation. Beutner’s 579 rate up to 12 percent in June NEW CEO: Meruelo Mad- UTV Chief Executive Rohin- quarter net income of $520 taxes necessary to cover those donors as of June 30 include from a revised 11.9 percent in dux Properties Inc. has ton “Ronnie” Screwvala, a million, 30 percent lower bond payments, the city could former Mayor Richard Rior- May. Seasonal layoffs in edu- named Matt Caverly its chief major shareholder, would than a year ago. Revenue foreclose on AEG’s L.A. Live dan, philanthropist Eli Broad cation as the school year drew executive. He had been serv- become Disney’s chief of fell 9.6 percent to $6.56 bil- complex. The project could and former Los Angeles Area to an end resulted in the loss ing in that post on an interim operations in India. lion. … Occidental Petro- provide the city about $410 Chamber of Commerce of roughly 20,000 jobs. There basis. He has more than 20 leum Corp. reported second million in new revenue over a Chairman David Fleming, the also were slight declines in years of experience in the NEW ROLE: Response quarter net income of $1.82 30-year period. committee said in its first wholesale trade, retail real estate industry, and most Genetics Inc. Chief Execu- billion, 71 percent higher campaign finance report. employment, and state and recently led the acquisitions tive Kathleen Danenberg has than a year ago. Revenue ACQUIRED: Brickman Beutner is considered a local government. Manufac- department at Hackman resigned to focus on research rose 34 percent to $6.17 bil- Group, a national commer- strong contender to draw sup- turing employment was one Capital in West Los Ange- and development at the com- lion. … Avery Dennison cial landscape management port from the business com- of the few bright spots, gain- les. His appointment came as pany she helped found in Corp. reported second quar- company based in Gaithers- munity. He made his fortune ing 3,000 jobs. Business ser- a creditors’ plan of reorgani- 1999. She will be executive ter net income of $73.3 mil- vices and entertainment also zation went into effect. scientific and technology offi- lion, 13 percent lower than a posted slight increases. MMPI Acquisition LLC cer at the L.A. developer of year ago. Revenue rose 2.7 labusinessjournal.com has bought 55 percent of out- molecular diagnostic tests. percent to $1.73 billion. … The best source for up to the minute local, national and ASSESSMENTS: Los standing shares of the L.A. Vice President Denise Jacobs Engineering worldwide business news. Angeles County’s total company, which is a signifi- McNairn will serve as interim Group Inc. reported fiscal FREE MORNING UPDATE property values rose during cant owner of property in chief executive until a third quarter net income of 2010 after two years of downtown Los Angeles. replacement is found. $90.7 million, 377 percent Prepared by the editors of the Los Angeles Business Journal and sent to you by e-mail every business day. Sign up now at decline, according to county Founder and former Chief higher than a year ago. www.labusinessjournal.com figures. County Assessor Executive Richard Meruelo, EARNINGS: Skechers Revenue rose 8 percent to John Noguez said that prop- his management team and USA Inc. reported a second $2.7 billion.

Advertising Feature

Hirings, promotions and special People on the Move accomplishments in local business

LOCAL REALTOR® ASSOCIATION COSMETICS ACCOUNTING On Saturday, July 9th NYX Professional Makeup, the Congratulations to Green Hasson the C.A.R.E. Project professional makeup line known for Janks’ recent promotions! We of the Beverly Hills/ its quality and value, announced the would like to recognize the following Greater Los Angeles appointment of Scott Friedman as employees for their hard work, Association of Chief Executive Officer. Mr. Friedman high level of client service and REALTORS® brings more than 15 years of industry commitment to the firm: Anita Wu, joined with The experience to the role, formerly held by Principal; Jennie Tieu, Manager; Children’s Lifesaving Toni Ko who will transition to Founder Tes Baradas, Manager; Greg Sills, Senior; and Tina Foundation at Zuma and Chief Creative Director. Prior to Xia, Senior. The impressive accomplishments of our Beach to surf and C.A.R.E. Project Friedman joining NYX, Friedman was CEO of recent promotions exemplify Green Hasson Janks’ swim with both homeless and at risk youth, many of Allegro MFG., Inc., a leading international manufacturer commitment to growing great people. which have limited if any beach experiences before. and marketer of cosmetics, organizers, electronics and The day at the beach was sponsored by Lex Angeles accessory bags, which sold to Conair in 2007. Kay and participating were Jon Wax and Theresa Shapiro of Prudential, as well as President Robin Greenberg of Prudential and her daughter Suzanne and granddaughter Nikki. We are currently collecting Contact Rosz Murray at 323.549.5225 backpacks and school supplies throughout August. For more information please visit www.bhglaar.com. [email protected] 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

AUGUST 1, 2011 PROFILE LOS ANGELES BUSINESS JOURNAL 15

RINGO H.W. CHIU/LABJ Harvest Time: From left, Farmscape Chief Executive Jesse DuBois and Chief Financial Officer Dan Allen at a customer’s backyard farm in East San Gabriel. Farmscape looks to go beyond backyard gardens and sow farming clients among Space to Grow institutions with in-house cafeterias.

By HOWARD FINE Staff Reporter rants, schools, hospitals and the like. market themselves,” Katz said. “Or they can “We see this as a huge market that’s largely Farmscape LLC try to find new markets.” N a recent tour of Japan, East San untapped,” said Jesse DuBois, Farmscape’s co- FOUNDED: 2008 Farmscape does offer lower-price garden Gabriel resident Niki Nakayama founder and chief executive. tool kits for the do-it-yourself crowd. But the noticed people were growing vegeta- DuBois, 26, started Farmscape in late 2008 HEADQUARTERS: Los Feliz main focus now is diversifying by signing up O bles in the country and community with Merritt Graves, a friend of his roommate CORE BUSINESS: Sets up and maintains commercial and institutional clients. gardens in cities. It was a sight that inspired her at Macalester College in St. Paul, Minn. organic farms for single-family residences, N/naka is Farmscape’s first entry into the plan to open a restaurant back in Los Angeles Graves put up $150,000 in seed money and schools and businesses. restaurant and catering industry. In the past, offering homegrown vegetables for its dishes. helped with the initial business plan. some restaurant owners wanting to source But Nakayama knew nothing about farming Eventually, DuBois convinced his room- EMPLOYEES: Six full time; eight part-time. foods locally grew their own vegetables, gen- or vegetable gardens. So she searched the mate, Dan Allen, now 25, to join the company GOAL: To sign up more schools, restaurants erally staying with one or two produce items. Internet and found a local startup called Farm- as chief financial officer. and other businesses. For most volume purchases, they turned to scape LLC that sets up and maintains small wholesale suppliers and farmers markets. backyard garden farms Surge of interest THE NUMBERS: $170,000 in revenue last Now, restaurant owners can choose the This Week: for homeowners. DuBois and Allen capitalized on the surge of year; on track to triple that for this year. higher-yield Farmscape option – as long as Nakayama hired interest in backyard farming as the recession took they can find the space to grow the crops. INNOVATION Farmscape to set up hold, signing their first customers in early 2009. start a backyard farm, they hired Farmscape after Allen said that one catering company that vegetable beds in her Rachel Surls, Los Angeles County director seeing a notice on a community bulletin board. may hire Farmscape is considering its options. backyard and plant Japanese specialty crops of the University of California Cooperative “As a native New Yorker, I had never real- It may set up home gardens, or may rip up such as baby eggplant; Kyoto carrots; and Extension, said the timing was right. ly grown anything and I was intimidated by it,” some of its parking lot to set up a garden there. shiso, a Japanese mint herb. “It’s all tied to the rise in farmers markets and Green said. Farmscape opened its doors for business in the interest in locally grown food, which has really What she didn’t count on was the huge Farming powerhouse early 2009, focusing exclusively on setting up exploded in the last two or three years,” Surls said. crops the Farmscape-managed plot produced Eventually, the company wants to offer its small backyard organic (pesticide-free) veg- Farmscape has mostly focused on the upper last summer. farming services to corporations, hospitals and etable and produce gardens for homeowners and end of that market. “We thought it would be just enough for us other institutions with in-house cafeterias. then maintaining those gardens for a weekly fee. Costs vary depending on levels of service. and a few friends or neighbors. We had no idea “We see the food service industry as a Thanks to Farmscape’s setup, Nakayama each For example, setting up 100 square feet of gar- how prolific the output would be,” she said. major growth area,” DuBois said. morning now picks some of the vegetables to take den space could run about $2,700 and about $60 “We just couldn’t keep up with it.” Farmscape has also targeted local schools to her new N/naka Restaurant in Culver City. a week for maintenance. Home-grown crops Today, the Greens’ farm is growing pumpkins, and colleges, trying to capitalize on increased “About two-thirds of the vegetables I use in include tomatoes, squash, cucumbers, peppers cantaloupes, watermelons, zucchini, bell peppers interest in healthy food choices for students my restaurant come from the garden,” she said. and beans. Company gardeners and growers and tomatoes. This season, the couple hopes the while also giving students a chance to learn “The taste is natural and the flavors stronger carry out the work, with the goal of high yields. yields will be more in line with their appetites. about farming. than what you get from the market and my “What Farmscape offers is a convenience But the company plans to diversify in the The company has set up and operates gar- customers really appreciate it.” for homeowners with the means to pay for the face of increasing competition for the residential dens in 11 schools around Southern California, More and more services such as Farmscape setting up and maintenance of an edible garden market. That’s a good move, Katz said, because including the private San Jose-Edison Acade- have been popping up across the nation. While but who don’t have the time or the expertise to new companies may come in with lower setup my in West Covina. Farmscape’s owners believe it’s the only com- do it on their own,” said Nurit Katz, sustain- fees and leave maintenance to the customer. Next on the agenda: Trying to break into the pany in Los Angeles offering its setup and ability coordinator at UCLA. “Farmscape will eventually confront a huge Los Angeles Unified School District system. maintenance services, it probably won’t be One of Farmscape’s early customers was choice: If they stick with the homeowner DuBois said Farmscape’s ultimate goal is to alone for long. Amanda Green, a television writer who lives in market, they could be relegated to niche sta- become a regional urban farming powerhouse. So, Farmscape is pursuing customers in the the foothill community of Altadena with her hus- tus while others go mass market with much “The real question is how much of the city commercial and institutional markets – restau- band and 4-year-old son. When they decided to lower price points, or they can try to go mass we can turn into a farm,” he said. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

16 LOS ANGELES BUSINESS JOURNAL PEOPLE AUGUST 1, 2011

RINGO H.W. CHIU/LABJ Seated: Adam Miller, chief executive of Cornerstone OnDemand, in the lobby of the human resource services company’s Santa Monica headquarters.

Cornerstone Chief Executive Adam Miller credits becoming a father in 2005 with spurring him to refocus Birth Sign and re-evaluate his HR services company.

By NATALIE JARVEY Staff Reporter M.B.A. is helpful in understanding strategy made assistant manager. I went back to Philly and business management. Being a CPA has Adam Miller to finish school and while I was in my senior DAM Miller took Cornerstone been helpful in understanding the accounting year, the restaurant became available. We OnDemand Inc. public in March. It and finance. TITLE: Chief Executive ended up buying it with a group of people. I was the result of nearly 12 years of COMPANY: Cornerstone OnDemand Inc. learned a tremendous amount. hard work for Miller, Conerstone’s How long did it take you to get all those A BORN: 1969; New York. chief executive, who co-founded the company titles? Like what? in his New York apartment in 1999. Today, the I did the J.D. and M.B.A. early in three-and-a- EDUCATION: B.S., economics, B.A., You tip better. It’s cost me a lot. company, which sells human resources soft- half years. It was very busy. European history, University of Pennsylvania; ware to corporations around the world looking J.D., M.B.A., UCLA. What prompted you to take a trip around for technology to help hire, train and evaluate Did you want to be a lawyer? the world? their employees, has 450 employees and offices By the end of my first semester of law school, MOST INFLUENTIAL PEOPLE: Father, an When I was in grad school I got a job at a bou- in several countries. In addition to being an I’d decided that I was not going to be a lawyer accountant, and mother, a teacher; tique law firm. I met a woman there who was entrepreneur, Miller is passionate about edu- and that I would start a business. Cornerstone’s management team; teachers. an author working on a writing project and she cation. He has two bachelor’s degrees, a J.D. CAREER TURNING POINT: In 2005, when asked me to help her. We ended up writing and and M.B.A., and is a certified public accoun- Who are some of the most influential peo- he had his first child, took some time off, publishing two books. I took the proceeds from tant. After finishing school, he took a two-year ple in your life? then returned with a new approach for the those books and figured if I ever had a chance trip around the world that he said taught him It’s definitely my parents and my teachers. In company. to travel, now was the time. the foundation for leading an international business, I haven’t really had a single mentor. company. Miller met with the Business Journal For me, it was the management team that real- PERSONAL: Lives with his wife, Stacey, and What were the books about? at Cornerstone’s headquarters in the Water ly helped me with the whole business. None of their three children, 6, 4 and 1, in Westwood. The first book was called “Managing Your Garden, a Santa Monica office park and us had ever run a company. We’ve been in the ACTIVITIES: Writing, playing tennis, Inheritance.” The second one was “Business explained why he once fired himself, described trenches together figuring it out. spending time with friends, volunteering. Capital for Women.” It was about helping his extreme travel experiences in Peru and female entrepreneurs get capital and get their Nepal, and remembered what he learned from What did your parents do? businesses going. his summer as a bartender. My dad’s an accountant and my mom’s a fully an entrepreneur. I was a minority share- teacher. My grandfathers were actually pretty holder in a restaurant that I helped manage. Would you write another book? Question: You’ve got a lot of degrees. entrepreneurial. One grandfather had a jewelry Definitely, if I could just find the time. I have Have they helped you? business. The other was very senior in his lodge. How did you get involved in a restaurant? about six ideas that I’d like to do, but no time. Answer: The legal background has always I came out to Los Angeles for the summer to been very helpful, especially in the begin- So when did you get the entrepreneurial bug? see if I wanted to go to grad school in Califor- Tell me about the trip around the world. ning. At the end of the day, most of what I In high school there were the first seeds of it, nia. I’d never been. My friend and I got jobs was doing was negotiating contracts. The more so in college. By graduate school I was bartending. By the end of the summer, I’d been Please see page 18 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

AUGUST 1, 2011 LOS ANGELES BUSINESS JOURNAL 17

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Biz 360 offers are available to corporate-liable customers only. Additional fees or monthly recurring charges may apply. Motorola Photon 4G requires activation on a select plan and a $10 Premium Data add-on. May require up to a $36 activation fee/line, credit approval and deposit. Up to a $200 early termination fee/line applies. Service availability is dependent upon phone/device. Coverage is not available everywhere. The Nationwide Sprint Network and the Sprint 3G Network reach over 278 million and 274 million people, respectively. The Sprint 4G Network reaches over 70 markets and counting, on select devices. See sprint.com/4G for details. Not all services are available on 4G, and coverage may default to 3G/separate network where 4G is unavailable. Offers are not available in all markets/retail locations or for all phones/networks. Pricing, offer terms, fees and features may vary for existing customers not eligible for upgrade. Restrictions apply. MOTOROLA and the Stylized M Logo are registered in the U.S. Patent and Trademark Ofﬁ ce. ©2011 Sprint. All rights reserved. Sprint and the logo are trademarks of Sprint. Other marks are the property of their respective owners. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

18 LOS ANGELES BUSINESS JOURNAL PEOPLE AUGUST 1, 2011

Continued from page 16

I thought it would be a one-year trip. It ended up being two years. I went to six of the seven continents.

What were some of your favorite places? The most beautiful place I visited was Nepal. One of my favorite countries is Chile. I loved my time in Australia and New Zealand. And in Israel, I ended up getting a job in banking and working there for a while. It was really interesting.

Did you have any crazy adventures? I almost died twice, once in Nepal when I was trekking without the right equipment or shoes. And once in Peru when I got really bad food poisoning and I was on an overnight bus. They basically threw me off of it. I was literally in the middle of nowhere at night.

How’d you find your way to where you were going? People helped. That restored my faith in humanity.

What was it like to be away from friends and family for two years? I went home once to see my grandparents. And I would meet friends in different parts of the world. This was before there were Internet cafes everywhere. So the way I’d communi- cate with everyone is that I’d write a letter home to my friends and my mom had a mail- ing list and would send it out.

What did you learn from the experience? That trip really gave me a better understanding of the world. When you see that many different parts of the world in that compressed a time, you really start to get an appreciation of the similarities and differences of the different places. I think that is a significant reason that we have a successful global company today.

Where did the idea for Cornerstone OnDemand come from? I had a really strong interest in education and technology and wanted to bring the two together. When we started the company, we focused on this idea that we should give adults access to education wherever they were, at home as individuals, inside small businesses or as part of large corporations. Public Presence: At top, Adam Miller with Cornerstone OnDemand employees March 17 at Nasdaq Marketsite in Cornerstone doesn’t work with individuals New York on the day the company went public. At bottom, Miller volunteered at Charles Drew Middle School in at home or small businesses, though, South Los Angeles as part of Teach for America day April 2010. mostly with corporate clients. What changed? After the bubble burst in the spring of 2000, we ing on at the time. They became our first three cial part. I know a lot of CEOs can’t stand it. How did it feel to take Cornerstone public? decided to just focus on adults inside of large clients and we built our business from there. To me, it was really the graduation of the com- corporations. We built up a pipeline of financial And the worst part? pany. But it wasn’t the end, just like gradua- service provider customers primarily because What was your career turning point? Anytime I feel like we’re starting to get tion’s not the end. myself and Steven Seymour (a co-founder and One of the turning points for the company and bureaucratic, all the legal and compliance now the company’s vice president of strategic my career was definitely when my first child things we have to deal with – dealing with Did you celebrate when you rang the accounts) worked in financial services. Immedi- was born. minutiae. There are a lot of little things you Nasdaq bell on the day the company ately we began to diversify into other industries. have to deal with that get in the way. I still try started trading? Why’s that? to interview most people in the company. It We simulcast the bell-ringing and had a virtual Was it hard to transition from the finance It was 2005, and I remember being home with gets harder to do. company party in all our offices at the same world to starting a company? the baby and thinking, either we’ve got to do What do you do in your free time? time. In California it was early, so it was a cham- For me, the more natural thing was definitely something (to start growing) or stop doing this. I like writing and playing tennis. Now most of pagne breakfast. In Paris and Tel Aviv it was the entrepreneurial route. I had a really hard So, I like to say that I fired myself and brought in my time is spent going to little kids’ birthday par- late. We watched the stock open on the trading time working in a big company. Back when a new CEO – who was me. And I really re-evalu- ties. The other thing is I spend a lot of my time floor at Goldman Sachs, then we rented out the they were building the Water Garden, I thought ated the business. We decided we were going to with non-profits. A lot of people assume that you Thompson Hotel and that party went all night. it’d be really cool to have a company in that go for it. By 2006 we had a much more substan- can do that when you’re retired or unemployed. I building, which is of course where we are now. tial business. And in 2007 we raised money and just don’t buy that. You need to make time to do Has the IPO changed how you do the business really took off. That was really an these things, time to find a balance. business? You founded the company in New York. inflection point in the business and in my career. What’s been most surprising is that there’s very Why did you move to Los Angeles? What non-profit work do you do? little difference. The IPO, for us, is a point in I started the company in my one-bedroom How would you describe your leadership A few years ago, we started the Cornerstone time where we have the resources and people to apartment. Three months later, I decided it was style? Foundation. It’s focused on three sectors: edu- execute on the things we want to do. We have a not fun starting a company in your small apart- I try to lead by example. I try to never ask peo- cation, work force development, and disaster lot of ideas and a lot of things we want to do. ment. I realized it would be much more fun to ple to do things that I wouldn’t do myself. The relief. We give our software away to non-prof- It’s very exciting. It keeps you invigorated in do it out here. other thing is that we’re very focused on team- its and bolster it with consulting and support. the business. It keeps it interesting. work. We try to operate the business as a meri- What are some of the challenges you’ve tocracy. We’re constantly promoting from What’s something your employees don’t How has your role changed over the had building the company? within. If people are doing well, they can move know about you? years? We built up our customer pipeline in financial ser- around and move up. I never understood that show “Undercover At the beginning, I had to do lots of small oper- vices and then Sept. 11 hit. We had this situation Boss” because I feel like everybody knows ational things. For a couple of years I was basi- where we were like, how will we survive as a What’s your favorite part of the job? who I am. They don’t all know that I was a cally the vice president of sales, and then for a company? There was a lot of pressure to cut staff, My favorite parts are working on strategy, bartender for a while. That’s really the only couple of years I was basically chief technical but on Sept. 15, I decided to keep hiring. We actu- closing deals, designing a product and working transferable skill I have. I feel like bartenders officer. Now that we’ve built out the manage- ally closed three of the four deals we were work- with great people. And I don’t mind the finan- are always needed. ment team, I can focus on being the CEO. 6,109 3,503 2,027 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page 1,959 1,647 AUGUST 1, 2011 LOS ANGELES BUSINESS JOURNAL 19

X NEXT WEEK GENERAL CONTRACTORS The 25 Largest Telecom Firms THE LIST Ranked by 2010 L.A. County billings in L.A. County

X EXECUTIVE SUMMARY X THE TRENDS X THE PACESETTER

.A.’S largest general contractors URNER Construction tops the list of the largest reported falling revenue for the Industrial Contracts general contractors in Los Angeles County L second consecutive year as firms Value of industrial construction projects in L.A. County. T with $320 million in revenue. The New York finished many large projects and with few company reported revenue fell from $387 million projects starting. Entitled projects have been $300 in 2009, but it still surpassed Webcor Builders and delayed by financing issues in the current Clark Construction Group to take the top spot. 250 economy. (in millions) Public projects for primary and secondary San Mateo-based Webcor Builders saw 200 schools have helped sustain the company through a sharp decline in revenue locally, dropping the economic downturn. It has been awarded from $478 million in 2009 to $105 million 150 seven projects for Los Angeles Unified School last year. The firm relied heavily on private District since 2006, as well as projects for Long Dow developments, and had completed many 100 Beach Unified School District. It also manages projects for Los Angeles Community College District and UCLA. large projects in 2009 and 2010. Those 50 include the W Hollywood Hotel and Resi- “Education and health care has sustained us through the hard times,” dences, the Century condo tower in Century 0 said Kevin Dow, Turner vice president and general manager for South- City, Concerto condo tower in downtown 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ern California. “We’re encouraged by signs of private developments and Los Angeles, and the Ritz-Carlton Hotel and expect the market to be more balanced.” Residences at L.A. Live. Turner’s major local projects in the area include a $100 million data Clark Construction Group-California LP Commercial Contracts center for Southern California Edison in Alhambra that will be com- and Tutor Perini Corp. each saw revenue Value of new commercial construction projects in L.A. County. pleted by the middle of next year. It was recently awarded a contract drop by at least $100 million locally from $2,000 to build three-and-a-half floors of office space for JPMorgan Chase in 2009 to 2010. (in millions) Century City. Austin Commercial debuts on the list at Commercial projects have started to come back, especially in downtown No. 15 this year. The company has only one 1,500 Los Angeles. Turner is working on a $26 million mall redevelopment for project locally, but it’s the largest project in Brookfield Properties at Seventh and Figueroa streets that will house a Tar- Los Angeles County. The Dallas company is 1,000 get store. That project is about one-third complete, Dow said. Other smaller part of a joint venture working on the $1.3 projects include lobby renovations in several office buildings. billion Bradley West terminal at Los Ange- Compared with other major metropolitan areas across the country, les International Airport. 500 Dow said that downtown Los Angeles hold promise for continued Overall, the 25 largest firms reported investment and building, especially with the prospect of a National Foot- county revenue of $3.2 billion last year. ball League stadium. 0 That’s down by 30 percent compared with 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 “Down the road, it has the highest potential with projects like the 2009. Firms on the list employ more than Wilshire Grand, Civic Center and the interest in the Convention Center 3,000 full-time workers in the region. Source: Construction Industry Research Board and a potential football stadium,” said Dow. “The question is: When will – David Nusbaum these jobs actually start?” – David Nusbaum

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20 LOS ANGELES BUSINESS JOURNAL THE LIST AUGUST 1, 2011

Continued from page 19

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AUGUST 1, 2011 LOS ANGELES BUSINESS JOURNAL 21

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22 LOS ANGELES BUSINESS JOURNAL DATA BANK AUGUST 1, 2011

CONVENTIONS 1733 Ocean Ave., Santa Monica Networking Lunch CALENDAR $25 Sponsor: Long Beach Area Chamber of Commerce (310) 393-9825 11:30 a.m. • Modern Living Expo Tuesday, Aug. 2 Parkers’ Lighthouse Aug. 6-7 Government Contracting Is Your Retirement Plan Protected? 435 Shoreline Village Drive, Long Beach (626) 274-9666 Sponsor: Federal Technology Center Sponsor: Beverly Hills Chamber of Commerce $30 (RSVP required) 8 a.m. (562) 436-1251 9 a.m. West Coast Expo Sunrise Assisted Living • Long Beach Area Chamber of Commerce Aug. 12-14 One World Trade Center, Suite 206 201 N. Crescent Drive, Beverly Hills Wednesday, Aug. 10 $10 (323) 905-1306 Free All About Business Loans (866) 382-7822 (310) 248-1000 Sponsor: VEDC Hemp Con 4 p.m. • Night Golf Classic Business to Business Breakfast Aug. 26-28 Sponsor: Alhambra Chamber of Commerce 5121 Van Nuys Blvd., Van Nuys Sponsor: Greater San Fernando Valley $10 (626) 961-6522 Chamber of Commerce Noon Almansor Court (818) 907-9922 4 p.m. Exxxotica Expo Braemar Country Club 700 S. Almansor St., Alhambra • Aug. 26-28 4001 Reseda Blvd., Tarzana $5 Friday, Aug. 12 (215) 462-8800 $75 (626) 282-8481 Networking Breakfast (818) 989-0300 Sponsor: Beverly Hills Chamber of Commerce Optimizing Your Job Search 8 a.m. • Senior Clean Air Fair Networking at Night Sponsor: Challenger Networking Group InterContinental Hotel Sept. 15 Sponsor: Greater San Fernando Valley Noon 2151 Avenue of the Stars, Century City (909) 396-2221 Chamber of Commerce Zen Buffet $30 5 p.m. 21610 Victory Blvd., Woodland Hills (310) 248-1000 Wizard World Comic Con Braemar Country Club $11 (for lunch) • 4001 Reseda Blvd., Tarzana (818) 992-4270 Sept. 24-25 $15 (or free with Night Golf Classic) Saturday, Aug. 20 (646) 380-2475 (818) 989-0300 Foreclosure Workshop 1-Day Real Estate Boot Camp Sponsor: California Foreclosure Institute Sponsor: UCLA Extension • Fall Home and Garden Show Wednesday Aug. 3 5:30 p.m. 9 a.m. Sept. 30 San Gabriel Library Extension Lindbrook Center (800) 999-5400 Bankruptcy Luncheon 500 S. Del Mar Ave. 10920 Lindbrook Drive, Westwood Sponsor: Beverly Hills Bar Association Free $165 Noon (310) 379-0101 (310) 206-1555 • Ultimate Women’s Expo Lawry’s Oct. 1-2 100 N. La Cienega Blvd., Beverly Hills (866) 618-3434 $125 Saturday, Aug. 6 Survival in a Bad Economy Sponsor: VEDC (310) 601-2423 Business Ethics Sponsor: UCLA Extension 4 p.m. • Grow Internet Marketing and Business Development 9 a.m. 5121 Van Nuys Blvd., Van Nuys Oct. 1-2 $10 For Next Generation Businesses Extension Lindbrook Center [email protected] (818) 907-9922 Sponsor: Los Angeles Business Executives Forum 10920 Lindbrook Drive, Westwood 6 p.m. $179 • Green Festival L.A. Wolfgang’s Steakhouse (310) 206-5075 Oct. 29-30 445 N. Canon Drive, Beverly Hills (800) 584-7336 Free Tuesday, Aug. 9 To be considered for publication, Calendar listings (310) 281-3917 should be submitted at least three weeks in advance Alternative Project Delivery of the event. Listings can be submitted by e-mail to • Blogworld & New-Media Expo Sponsor: Southern California Development Forum Nov. 2-5 Thursday, Aug. 4 7:15 a.m. [email protected] or by mail to: (858) 366-2962 Networking Breakfast Luxe Hotel Los Angeles Business Journal Sponsor: Santa Monica Chamber of Commerce 11462 Sunset Blvd., Brentwood Calendar 7:30 a.m. $45 5700 Wilshire Blvd. #170 La Cachette Bistro (310) 422-5186 Los Angeles, CA 90036 L.A. Convention Center, (213) 741-1151, ext. 5340

Doc# LA11-37860-BR Assets: N/A L.A. 90022 Assets: N/A BANKRUPTCIES File-Date: 06/28/11 Debts: N/A Chapter: 11 Debts: N/A Michael O. Akhidenor Doc# SV11-17889-MT Assets: N/A Doc# LA11-38519-SK 4388 Tujunga Ave LLC 818-988-0855 File-Date: 06/29/11 Debts: N/A File-Date: 07/01/11 (Rental property) Alan F. Broidy Doc# LA11-38366-SK Christine M. Pajak 6355 Topanga Canyon Blvd., #100 IATY Investment LLC 310-286-6601 File-Date: 06/30/11 310-228-5600 Woodland Hills 91367 (Business type N/A) Mark T. Young Chapter: 7 1926 Cumberland Drive 55 Bluebell Partnership 661-259-9000 Nand Singh Garcha Inc. DBA: La Plaza Super Mercado Assets: $490,000 West Covina 91792 (Real estate) (Supermarket) Debts: $6,164,597 Chapter: 7 5531 Bluebell Ave. DBI Housing LLC 1425 N. Hacienda Blvd. Assets: N/A DBA: Ortiz Produce; Doc# SV11-17830-MT Valley Village 91607 La Puente 91744 File-Date: 06/27/11 Debts: N/A Chapter: 7 Bambi Fashion; Tacos Ortiz Chapter: 11 Juan C. Acevedo Doc# LA11-37914-PC Assets: $500,000 (Produce/clothing store/fast-food) Assets: N/A 818-626-3333 File-Date: 06/29/11 Debts: $1,426,041 4808 W. Washington Blvd. Debts: N/A Irwin M. Friedman Doc# SV11-17924-VK L.A. 90016 Doc# LA11-38531-SK Neek Nilou LLC 310-217-4080 File-Date: 06/29/11 Chapter: 11 File-Date: 07/01/11 (Business type N/A) William Brownstein Assets: $1,320,230 Gabriel I. Glazer 14535 Greenleaf St. 13 Partnership 310-458-0048 Debts: $1,457,129 310-228-5600 Sherman Oaks 91403 (Business type N/A) Doc# LA11-38517-EC Chapter: 11 1600 Naud St. BioAgri Corp. File-Date: 07/01/11 Topeka Valley Investments Inc. Assets: N/A L.A. 90012 (Business type N/A) Anthony Egbase (Investment) Debts: N/A Chapter: 7 2154 Moonview Drive 213-620-7070 5431 Topeka Drive Doc# SV11-17833-MT Assets: $850,000 Hacienda Heights 91745 Tarzana 91356 File-Date: 06/27/11 Debts: $2,190,019 Chapter: 7 Rising Sun Enterprises Inc. Chapter: 7 Raymond H. Aver Doc# LA11-38107-PC Assets: N/A DBA: Cost Saver Market #1; Assets: N/A 310-473-3511 File-Date: 06/29/11 Debts: N/A Cost Saver Market #2 Debts: N/A William Brownstein Doc# LA11-38314-RN (Retail groceries) Doc# SV11-18028-VK Miller Geer Arizmendez Inc. 310-458-0048 File-Date: 06/30/11 1141 W. Carson St. File-Date: 07/01/11 (Public relations) Sam X. Wu Torrance 90502 Lynne Romano 18327 Gridley Road, Suite #I China Den Inc. 909-396-4642 Chapter: 11 626-552-0270 Cerritos 90703 (Restaurant) Chapter: 7 22333 Pacific Coast Highway, #8 WCK Inc. Bankruptcy information is supplied by Timely Info of Los Angeles, Jack Vaughn (323) 664-4423. Assets: $38,532 Malibu 90265 (Hotel management) Chapter 7: a “straight” liquidation bankruptcy involving an appointed trustee to sell all assets by Debts: $1,274,311 Chapter: 7 23790 Canyon Vista Court auction or other means to pay creditors and trustee fees. Doc# LA11-37721-RN Assets: $0 Diamond Bar 91765 Chapter 11: a process which allows a business to gain temporary relief from paying debt in order to File-Date: 06/28/11 Debts: $7,135 Chapter: 11 attempt a successful reorganization. The debtor remains in control of the business during the bank- Ralph Ascher Doc# SV11-17887-AA Assets: N/A ruptcy and the business continues to function. 714-638-4300 File-Date: 06/29/11 Debts: N/A Chapter 13: a bankruptcy plan available to individuals whose “income is sufficiently stable and reg- Hung B. Tran Doc# LA11-38324-PC ular to enable such individual to make payments under a plan.” The debtor makes payments to a APS Assist 626-308-9308 File-Date: 06/30/11 trustee who disburses the funds to creditors. (Business type N/A) John Eom Involuntary bankruptcy: the debtor is forced into bankruptcy by secured creditors whose claims 556 N. Diamond Bar Blvd., Suite #101 Calpacific Mortgage Inc. 213-387-1300 total at least $220,000. Involuntary bankruptcy may be filed under Chapter 7 or 11. Diamond Bar 91765 (Business type N/A) AKA: also known as FKA: formerly known as Chapter: 7 6700 Fallbrook Ave., Suite #111 Auto Market & Financial LLC DBA: doing business as FAW: formerly associated with Assets: $5,200 West Hills 91307 (Business type N/A) FDBA: formerly doing business as Debts: $227,542 Chapter: 7 629 1/2 S. Atlantic Blvd. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

AUGUST 1, 2011 INVESTMENTS & FINANCE LOS ANGELES BUSINESS JOURNAL 23

ECONO L.A.COUNTY WATCH Staying Subscribe today. As part of your subscription, you %± from will also receive access to GENERAL INDICATORS Latest Previous previous Year %± from still isn’t the daily electronic Los Angeles period period period ago year ago Business Journal, unlimited on-line 1 Employment (000’s) (June) ...... 4,237.6 4,284.5 -1.1% 4,233.7 +0.1% an option access to our archives, Unemployment (000’s) (June)1 ...... 600.2 574.0 +4.6% 601.5 -0.2% and the Book of Lists published Film Production Days (2nd qtr.)2 ...... 11,260 11,604 -3.0% 11,134 +1.1% Bankruptcies at the end of the year. Chapter 7 (Apr.)...... 3,609 4,043 -10.7% 3,680 -1.9% Chapter 11 (Apr.) ...... 57 47 +21.3% 38 +50.0% Call toll-free 3 Trade 1.800.404.5225 Exports (mils.) (May) ...... $10,355.5 $10,397.0 -0.4% $9,270.8 +11.7% Imports (mils.) (May)...... $22,344.6 $20,031.9 +11.5% $20,273.6 +10.2% Air cargo4 LAX (May) ...... 155.3 155.1 +0.1% 168.3 -7.7% Burbank (May) ...... 7.4 7.3 +1.4% 7.7 -3.9% Container volume5 (000’s) Long Beach (June) ...... 554.3 536.7 +3.3% 520.1 +6.6% Los Angeles (June)...... 640.8 692.9 -7.5% 730.3 -12.3% Los Angeles CPI (June) ...... 232.3 233.4 -0.5% 225.9 +2.8% REAL ESTATE %± from PUBLIC AUCTION* REAL ESTATE Latest Previous previous Year %± from period period period ago year ago Construction lending (mils.) (May) ...... $160.5 $121.9 +31.7% $111.1 +44.5% FOR SALE Property acquisition lending (mils.)6 (May) ...... $1,729.1 $1,698.8 +1.8% $2,226.5 -22.3% Refinance lending (mils.) (May)7 ...... $3,139.8 $3,716.4 -15.5% $3,290.7 -4.6% Foreclosures Approximately 107,834 Square Feet Number (May) ...... 2,487 2,309 +7.7% 2,942 -15.5% Value (mils.) (May) ...... $691.7 $604.4 +14.4% $914.8 -24.4% M-Zoned Property* Building contracts (mils.) Residential (June) ...... $190.3 $162.6 +17.0% $174.3 +9.0% at 1810 East 25th Street, Vernon, CA Nonresidential (June) ...... $515.9 $103.1 +400.4% $331.0 +55.9% Building permits (mils.) By: Alameda Corridor Transportation Authority Residential (June) ...... $227.4 $401.7 -43.4% $273.5 -16.9% Nonresidential (June) ...... $288.8 $290.6 -0.6% $266.4 +8.40% Public Auction at 2:00 p.m., on Housing start permits (June) ...... 541 1,567 -65.5% 716 -24.4% Home sales (June)8 ...... 3,867 4,641 +4.2% 5,710 -15.0% August 18, 2011 Home prices (000’s) (June) ...... $340 $340 0.0% $350 -2.9% One Civic Plaza, Suite 350 Condo sales (June)8 ...... 1,564 1,785 +9.5% 2,156 -9.3% Condo prices (000’s) (June) ...... $285 $297 -4.0% $305 -6.6% Carson, CA 90745 Apartments (1st qtr.) Gross occupancy ...... 93.9% 93.8% +0.1% 93.6% +0.3% For information and to register to bid at the Avg. sq. ft. rent ...... $1.93 $1.86 +3.8% $1.90 +1.6% public auction, visit ACTA’s website at: Avg. monthly rent ...... $1,637 $1,609 +1.7% $1,590 +3.0%

Office vacancy rates (2nd qtr.) www.acta.org Downtown Los Angeles ...... 15.4% 15.0% +2.7% 15.7% -1.9% or call Charles Fornelli at (310) 816-0460 San Fernando Valley ...... 17.6% 18.5% -4.9% 19.0% -7.4% West L.A...... 15.7% 16.6% -5.4% 15.4% +1.9% The property is comprised of: South Bay ...... 18.9% 19.3% -2.1% 17.8% +6.2% Parcel A = approximately 68,231 Square Feet* Countywide ...... 16.5% 16.9 -2.4% 16.6% -0.6% Parcel B = approximately 39,603 Square Feet* Industrial vacancy rates (2nd qtr.) Downtown/Central ...... 2.2% 2.1% +4.8% 2.4% -8.3% South Bay ...... 3.0% 3.1% -3.2% 2.8% +7.1% San Gabriel Valley ...... 3.5% 3.5% 0.0% 3.8% -7.9%

%± from TOURISM Latest Previous previous Year %± from month month month ago year ago Hotel occupancy rate (May) ...... 74.7% 73.9% +1.1% 70.7% +5.7% Room rate (May)...... $147.3 $149.6 -1.5% $139.5 +5.6% Passengers LAX (000’s) (May) ...... 5,476.2 5,028.1 +8.9% 4,956.6 +10.5% Burbank Airport (000’s) (May) ...... 360.3 355.7 +1.3% 383.5 -6.0%

FOOTNOTES 1. Not seasonally adjusted. 5. 20-foot equivalent unit. 2. Music, television, film and commercials quarterly. 6. Apartment and residential combined 3. Through Los Angeles Customs District. 7. Includes refinancings, second mortgages and equity mortgages 4. In thousands of tons. 8. Adjusted for selling days.

BOLDFACE INDICATES UPDATED FIGURES Sources: California State Employment Development Department (employment figures); FilmL.A. Inc. (film permits); U.S. Bankruptcy Court, Central District of Calif., Los Angeles (bankruptcies); Census.gov (exports, imports); City of Los Angeles Airport Department (LAX passenger traffic and air cargo); Burbank-Glendale-Pasadena Airport Authority * ACTA will be accepting bids for the sale of the parcels, separately or combined, on an “AS IS” condi- (Burbank passenger traffic and air cargo); Bureau of Labor Statistics, Los Angeles (Los Angeles consumer price tion and basis with all faults pursuant to the Terms and Conditions of the Auction and the sale of the index); Office of Economic Research at California State University, HomeData (home sales, home prices, condo Property will be subject to the terms of a Purchase and Sale Agreement and Joint Escrow Instructions, sales, condo prices); F.W. Dodge Division, McGraw-Hill (building contracts); Construction Industry Research Board each of which may be obtained by contacting ACTA. ACTA makes no representations, warranties, (housing start permits, building permits); M/PF Research Inc. (apartments); Grubb & Ellis (office and industrial promises, covenants, agreements or guaranties of any kind or character whatsoever with respect to the vacancy rates); PKF Consulting (hotel occupancy rate, room rate). – Compiled by Deniz Koray Property including, without limitation, the zoning and size of the Parcels. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

24 LOS ANGELES BUSINESS JOURNAL INVESTMENTS & FINANCE AUGUST 1, 2011

THE LABJ STOCK INDEX TRACKING LOS ANGELES AREA COMPANIES

WEEKLY TOP GAINERS WEEKLY TOP LOSERS

Preferred Bank DreamWorks Animation SKG Inc. NetSol Technologies Inc. Hanmi Financial Corp. $12 $40 $2.5 $1.5 July 27, 2010 $10.00 11 35 2.0 July 27, 2011 10 $8.27 July 27, 2011 1.2 30 $22.08 9 1.5 July 27, 2011 25 July 27, 2010 $1.03 $32.08 8 0.9 1.0 July 27, 2010 20 7 July 27, 2010 July 27, 2011 $1.22 $0.85 $0.83

6 15 0.5 0.6 7/10 9/10 11/10 1/11 3/11 5/11 7/11 7/10 9/10 11/10 1/11 3/11 5/11 7/11 7/10 9/10 11/10 1/11 3/11 5/11 7/11 7/10 9/10 11/10 1/11 3/11 5/11 7/11

TOP TEN LOCAL GAINERS BY PERCENTAGE (with closing prices at least $1) TOP TEN LOCAL LOSERS BY PERCENTAGE (with opening prices at least $1) July 27 July 20 Price 1-Wk 52-Wk July 27 July 20 Price 1-Wk 52-Wk Company Close Close Change % Chg. % Chg. Company Close Close Change % Chg. % Chg. Preferred Bank ...... $8.27 $7.45 $0.82 11.0% -17.3% NetSol Technologies Inc...... $0.83 $1.52 -$0.69 -45.2% -2.2% DreamWorks Animation SKG Inc...... 22.08 20.06 2.02 10.1% -31.2% Hanmi Financial Corp...... 1.03 1.25 -0.22 -17.6% -15.6% On Assignment Inc...... 10.24 9.61 0.63 6.6% 108.1% MPG Office Trust Inc...... 3.20 3.69 -0.49 -13.3% 7.0% Green Dot Corp...... 31.62 29.72 1.90 6.4% -26.5% Guidance Software Inc...... 7.37 8.46 -1.09 -12.9% 50.4% Wilshire Bancorp Inc...... 3.26 3.12 0.14 4.5% -58.0% Farmer Bros Co...... 7.74 8.85 -1.11 -12.5% -52.8% Beach Business Bank ...... 6.00 5.75 0.25 4.3% 17.6% Molina Healthcare Inc...... 23.38 26.48 -3.10 -11.7% 23.2% Simulations Plus Inc...... 3.34 3.23 0.11 3.4% 41.5% Cathay General Bancorp ...... 14.24 16.02 -1.78 -11.1% 16.0% Spark Networks Inc...... 3.53 3.44 0.09 2.6% 5.4% Staar Surgical Co...... 4.86 5.42 -0.56 -10.3% -18.7% PC Mall Inc...... 8.00 7.80 0.20 2.6% 98.0% Ever-Glory International Group Inc...... 1.93 2.15 -0.22 -10.2% -28.5% Stamps.com Inc...... 13.78 13.48 0.31 2.3% 47.9% Pacific Office Properties Trust Inc...... 1.80 2.00 -0.20 -10.0% -65.0%

MARKET DIARY MARKET INDEXES Concern over the government’s debt-ceiling negotiations and general economic uncertainty rocked the stock markets July 27 July 20 Point 1-Wk 52-Wk during the week ended July 27. The Dow Jones industrial average fell more than 2 percent. The LABJ Index dropped Index Close Close Change % Chg. % Chg. 2.3 percent as 133 local stocks declined and just 32 advanced. NetSol Technologies Inc., a leasing software company in Calabasas, was the biggest loser after reporting disappointing preliminary earnings. Shares fell more than 45 per- Dow Jones Industrial ...... 12,302.55 12,571.91 -269.36 -2.1% 16.7% cent to 83 cents. MPG Office Trust Inc., a real estate company in Los Angeles, took a hit after it announced the NASDAQ ...... 2,764.79 2,814.23 -49.44 -1.8% 20.8% exchange of preferred stock for common stock. Shares fell more than 13 percent to $3.20. Better-than-expected earn- S&P 500 ...... 1,304.89 1,325.84 -20.95 -1.6% 17.2% ings lifted several bank holding companies, including Preferred Bank in Los Angeles and Wilshire Bancorp Inc. in Koreatown. Preferred’s shares rose 11 percent to $8.27 while Wilshire’s shares climbed nearly 5 percent to $3.26. LABJ Index ...... 123.71 126.59 -2.88 -2.3% 4.5%

MARKET SUMMARY DIVIDEND YIELD MOST ACTIVE STOCKS VOLUME WEEKLY SUMMARY Company Dividend Yield Dividend Weekly Close Walt Disney Co...... 8,690,703 Advances ...... 32 Scope Industries ...... 25.3% $66.00 $261.00 Activision Blizzard Inc...... 6,815,855 Declines ...... 133 Stamps.com Inc...... 14.5% $2.00 $13.78 DirecTV ...... 4,829,247 Unchanged ...... 15 Anworth Mortgage Asset Corp...... 13.6% $0.95 $6.99 Amgen Inc...... 4,078,283 New Highs ...... 8 PennyMac Mortgage Investment Trust ...... 10.0% $1.61 $16.04 Occidental Petroleum Corp...... 3,577,783 New Lows ...... 13 BreitBurn Energy Partners LP ...... 8.4% $1.60 $19.11

LABJ INDEX

LABJ Index, 52 weeks LABJ Index v. S&P 500, 5 days LABJ Index v. S&P 500, 52 weeks 150 2.0% 25%

1.5 20 SP 500 1.0 LABJ Index 15 0.5 10 120 0.0 July 27, 2011 5 123.71 -0.5

0 -1.0 SP 500 LABJ Index -1.5 -5

90 -2.0 -10 J A S O N D J F M A M J J 7/21 7/22 7/25 7/26 7/27 J A S O N D J F M A M J J

Note: The LABJ Stock Index includes all companies on the opposite page and is weighted by market cap.

For more information please contact: Data provided by Bloomberg, a source considered to be reliable. However, the information in this feature may not be complete James Hillman, Managing Director (213) 553-9748 and cannot be guaranteed. The information provided in this feature does not constitute the provision of investment advice. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

AUGUST 1, 2011 INVESTMENTS & FINANCE LOS ANGELES BUSINESS JOURNAL 25

THE LABJ STOCK INDEX TRACKING LOS ANGELES AREA COMPANIES TOP GAINERS TOP LOSERS Company July 27 1-Wk YTD 52-Wk P.E. Mkt. Cap Company July 27 1-Wk YTD 52-Wk P.E. Mkt. Cap Name Ticker Close % Chg % Chg % Chg Ratio (millions) Name Ticker Close % Chg % Chg % Chg Ratio (millions)

AEROSPACE/DEFENSE RadNet Inc. RDNT $3.45 -8.0% 22.3% 65.9% NA $128.8 Aerovironment Inc. AVAV $28.88 -7.8% 7.6% 19.6% 24.9 $637.0 VCA Antech Inc. WOOF 20.09 -4.4% -13.7% -2.4% 15.5 1,736.2 AML Communications Inc. (H) AMLJ 2.45 -1.6% 82.8% 67.8% 22.3 26.3 INSURANCE Ducommun Inc. DCO 21.61 -3.4% -0.8% 4.9% 13.9 227.6 Mercury General Corp. MCY 37.43 -2.6% -13.0% -15.2% 19.1 2,051.8 Flamemaster Corp. FAME 4.05 -4.7% -17.3% 1.3% 8.7 5.1 Unico American Corp. (H) UNAM 10.34 0.5% 13.1% 19.3% 18.8 55.2 Northrop Grumman Corp. NOC 62.68 -3.5% 6.7% 18.8% 9.4 17,370.9 INTERNET Teledyne Technologies Inc. TDY 49.32 -2.8% 12.2% 16.9% 15.1 1,811.4 Bidz.com Inc. BIDZ 0.95 0.2% -21.7% -33.1% NA 18.5 APPAREL Boingo Wireless Inc. WIFI 8.80 -1.6% NA NA NA 291.4 American Apparel Inc. APP 1.03 -1.9% -38.0% -40.5% NA 85.3 CrowdGather Inc. (L) CRWG 0.41 -21.1% -73.9% -60.9% NA 23.3 Cherokee Inc. CHKE 16.06 -4.3% -14.6% -19.1% 17.5 136.6 J2 Global Communications Inc. JCOM 27.26 -3.3% -5.8% 13.0% 12.7 1,253.5 Guess? Inc. GES 38.40 -2.4% -18.9% 10.6% 12.8 3,555.6 ReachLocal Inc. RLOC 18.33 -8.0% -7.9% 41.0% NA 535.1 Hot Topic Inc. HOTT 7.35 -6.7% 16.9% 30.1% 122.5 328.9 Spark Networks Inc. LOV 3.53 2.6% 18.9% 5.4% 27.2 72.7 Joe's Jeans Inc. JOEZ 0.81 -10.0% -47.9% -60.3% 27.0 52.5 Stamps.com Inc. STMP 13.78 2.3% 4.0% 47.9% 25.5 197.6 K-Swiss Inc. KSWS 10.67 -6.3% -14.4% -8.7% NA 377.5 United Online Inc. UNTD 6.02 -2.9% -8.8% -10.4% 9.6 533.6 People's Liberation Inc. PPLB 0.11 0.0% 0.0% -21.4% NA 4.0 ValueClick Inc. VCLK 17.81 -3.9% 11.1% 56.6% 16.8 1,401.3 Skechers U.S.A. Inc. SKX 14.30 0.4% -28.5% -59.7% 33.3 712.0 MANUFACTURING True Religion Apparel Inc. TRLG 28.41 -4.4% 27.6% 11.0% 15.0 732.3 Avery Dennison Corp. (L) AVY 31.65 -3.7% -25.2% -16.5% 10.6 3,382.6 AUTOMOTIVE/PLASTICS/METALS BioSolar Inc. BSRC 0.13 14.0% 35.4% -35.0% NA 20.9 Motorcar Parts of America Inc. MPAA 13.39 -7.3% 2.7% 96.6% 12.9 166.5 Cereplast Inc. CERP 4.48 -6.1% 8.2% 38.3% NA 70.6 Reliance Steel & Aluminum Co. RS 47.19 -4.6% -7.7% 17.1% 14.6 3,530.8 Dole Food Co Inc. DOLE 13.51 -0.7% 0.0% 22.0% NA 1,196.7 Superior Industries International Inc. SUP 20.12 -7.8% -5.2% 37.5% 10.0 542.6 Ever-Glory International Group Inc. EVK 1.93 -10.2% -8.5% -28.5% 3.6 28.5 US Auto Parts Network Inc. PRTS 7.14 -6.3% -15.0% 9.7% 71.4 218.1 Farmer Bros Co. (L) FARM 7.74 -12.5% -56.5% -52.8% NA 125.4 BIOMEDICAL/PHARMACEUTICAL Jakks Pacific Inc. JAKK 17.52 -1.6% -3.8% 17.9% 17.7 476.7 Amgen Inc. AMGN 53.80 -2.2% -2.0% -1.3% 11.3 50,019.5 Mattel Inc. MAT 26.72 0.1% 5.1% 24.0% 14.1 9,162.0 Arrowhead Research Corp. ARWR 0.51 -1.2% -43.0% -51.4% NA 36.6 OSI Systems Inc. (H) OSIS 41.69 -4.9% 14.7% 43.5% 25.6 794.3 CytRx Corp. (L) CYTR 0.41 -42.1% -59.9% -54.0% NA 44.2 Overhill Farms Inc. OFI 5.19 -4.2% -9.9% -5.3% 15.7 82.1 Iris International Inc. IRIS 10.00 -2.2% -2.2% 6.0% 64.9 178.0 Reed's Inc. REED 1.93 -1.6% -4.0% -0.6% NA 20.9 MannKind Corp. (L) MNKD 3.31 -8.1% -58.9% -54.0% NA 432.6 Virco Manufacturing VIRC 2.63 -2.2% -0.3% -12.3% NA 37.4 Obagi Medical Products Inc. OMPI 10.25 -3.4% -11.3% -15.7% 14.9 189.6 MEDIA/LEISURE/ENTERTAINMENT Oxis International Inc. OXIS 0.10 7.5% -31.7% -4.8% NA 18.9 Crown Media Holdings Inc. CRWN 1.78 -3.8% -32.1% -1.1% 17.8 640.2 Physicians Formula Holdings Inc. FACE 3.82 -2.3% 1.6% -2.6% 191.0 51.9 Daily Journal Corp. DJCO 70.43 -0.8% -2.2% 0.6% 12.3 97.2 Response Genetics Inc. RGDX 2.72 -2.9% 9.7% 1.1% NA 49.9 Demand Media Inc. DMD 10.69 -7.8% NA NA NA 889.5 Staar Surgical Co. STAA 4.86 -10.3% -20.3% -18.7% NA 172.7 Derycz Scientific Inc. DYSC 2.95 -3.3% 11.3% 189.2% NA 49.6 COMPUTERS/PERIPHERALS/ELECTRONICS DirecTV DTV 51.44 -2.0% 28.8% 37.5% 18.9 39,494.9 Aura Systems Inc. AUSI 0.71 -4.1% -5.3% -6.6% NA 47.3 DreamWorks Animation SKG Inc. DWA 22.08 10.1% -25.1% -31.2% 4.4 1,843.7 International Rectifier Corp. IRF 26.52 -0.9% -10.7% 31.4% 14.0 1,850.0 DTS Inc. DTSI 35.38 -4.4% -27.9% -4.2% 36.9 615.7 Ixia XXIA 10.05 -4.4% -40.1% -11.1% 41.9 690.5 Entravision Communications Corp. EVC 1.86 -4.6% -27.6% -19.5% 37.2 158.9 MRV Communications Inc. MRVC 1.39 -4.1% -22.3% 5.3% 19.9 218.9 Image Entertainment Inc. DISK 0.15 -6.3% 7.1% -37.5% NA 38.3 PC Mall Inc. MALL 8.00 2.6% 5.7% 98.0% 11.8 99.2 Lions Gate Entertainment Corp. LGF 7.03 0.4% 8.0% 0.4% NA 963.1 Power-One Inc. (L) PWER 7.08 -3.9% -30.6% -29.4% 5.8 733.2 Live Nation Entertainment Inc. LYV 11.11 -1.0% -2.7% 15.6% NA 2,020.5 Qualstar Corp. QBAK 1.85 0.0% 9.5% 10.1% NA 22.7 NeuMedia Inc. (H) MNDLE 0.78 26.1% 169.7% 123.4% NA 32.6 Semtech Corp. SMTC 24.04 -5.1% 6.2% 30.6% 18.4 1,571.5 Point.360 PTSX 0.67 0.8% -24.4% -59.9% NA 7.2 Taitron Components Inc. TAIT 1.10 -3.4% -30.4% 10.0% NA 6.1 Provision Holding Inc. PVHO 0.04 -16.0% -30.0% -20.8% NA 1.9 Trio Tech International TRT 3.72 -0.5% -10.8% -7.2% 16.2 12.4 Reading International Inc. RDI 4.32 0.7% -14.5% -1.4% NA 102.5 Vitesse Semiconductor Corp. VTSS 3.65 -7.1% -12.9% -38.0% 3.6 89.2 RealD Inc. RLD 17.90 -0.8% -30.9% -3.9% NA 969.6 CONSTRUCTION/ENGINEERING Salem Communications Corp. SALM 3.25 0.0% 2.5% -12.7% 29.5 78.8 Aecom Technology Corp. ACM 25.23 -3.6% -9.8% -0.3% 12.0 3,007.4 Sports Club Inc. SCYL 0.15 0.0% -40.0% -51.6% NA 3.2 Ameron International Corp. AMN 84.97 -0.4% 11.3% 39.3% 100.0 770.6 Stratus Media Group Inc. SMDI 0.60 11.1% -6.2% -40.6% NA 38.5 Jacobs Engineering Group Inc. JEC 39.84 -4.3% -13.1% 7.4% 15.6 5,052.2 Tix Corp. (H) TIXC 1.86 -1.1% 50.0% 89.8% 10.9 57.9 KB Home (L) KBH 8.66 -8.4% -35.8% -27.4% NA 666.9 Walt Disney Co. DIS 39.52 0.4% 5.4% 15.3% 17.3 74,698.9 Ryland Group Inc. RYL 14.97 -6.0% -12.1% -13.2% NA 664.3 MISC. SERVICES Tetra Tech Inc. TTEK 22.00 -1.4% -12.2% 13.3% 16.7 1,371.5 Air Lease Corp. AL 24.74 -0.6% NA NA NA 2,479.4 Tutor Perini Corp. (L) TPC 15.81 -9.9% -26.2% -16.0% 8.5 745.0 Cadiz Inc. CDZI 10.83 -5.1% -12.9% -9.8% NA 149.8 ENERGY/UTILITIES Electro Rent Corp. ELRC 16.05 -6.5% -0.7% 16.6% 19.1 384.9 American States Water Co. AWR 33.88 -2.5% -1.7% -7.7% 16.3 632.3 Enova Systems Inc. ENA 0.76 -5.0% -40.7% -15.6% NA 23.9 BNK Petroleum Inc. BNKPF 4.58 1.1% 33.6% 181.0% NA NA Korn/Ferry International KFY 21.49 -2.1% -7.0% 47.5% 16.5 1,011.8 BreitBurn Energy Partners LP BBEP 19.11 -3.6% -5.1% 23.9% 40.7 1,128.3 National Technical Systems Inc. NTSC 5.94 0.2% -26.4% -31.2% 59.4 60.9 Capstone Turbine Corp. CPST 1.49 -5.7% 55.2% 49.0% NA 386.4 NetSol Technologies Inc. NTWK 0.83 -45.2% -55.6% -2.2% 4.6 45.9 Edison International EIX 38.85 1.4% 0.6% 15.2% 11.8 12,657.8 On Assignment Inc. ASGN 10.24 6.6% 25.6% 108.1% 73.1 378.5 Occidental Petroleum Corp. OXY 101.40 -4.5% 3.4% 26.8% 14.1 82,425.5 Rentech Inc. RTK 0.97 -5.7% -20.4% -3.8% NA 216.5 U.S. China Mining Group Inc. SGZH 2.75 -9.8% -56.8% -43.9% 2.9 52.0 Scope Industries SCPJ 261.00 0.0% 102.3% 102.3% 80.8 260.7 FINANCIAL SERVICES UTi Worldwide Inc. UTIW 16.65 -2.6% -21.5% 16.5% 23.8 1,709.1 1st Century Bancshares Inc. FCTY 3.63 -3.5% -11.5% 12.0% NA 33.8 REAL ESTATE American Business Bank AMBZ 23.50 -1.1% 5.5% 16.2% 11.1 102.7 Alexandria Real Estate Equities Inc. (H) ARE 82.13 -2.0% 12.1% 13.9% 27.5 5,072.6 Anworth Mortgage Asset Corp. ANH 6.99 -3.6% -0.1% -5.4% 7.9 884.5 CB Richard Ellis Group Inc. CBG 22.92 -1.5% 11.9% 48.7% 29.8 7,448.7 Bank of Santa Clarita BSCA 7.25 -9.4% 4.3% 16.0% 60.4 16.0 Douglas Emmett Inc. DEI 19.78 -1.4% 19.2% 25.5% NA 2,461.0 Beach Business Bank BBBC 6.00 4.3% 20.0% 17.6% NA 24.3 HCP Inc. HCP 36.61 -2.8% -0.5% 2.9% 33.9 14,864.7 Broadway Financial Corp. BYFC 2.23 0.0% -8.2% -18.9% NA 3.9 Hudson Pacific Properties Inc. HPP 15.14 -2.0% 0.6% -6.9% NA 508.2 California United Bank CUNB 12.25 0.0% -0.8% 11.4% NA 60.5 Intergroup Corp. INTG 24.88 1.8% 15.1% 61.3% 6.5 59.6 Cathay General Bancorp CATY 14.24 -11.1% -14.7% 16.0% 14.8 1,119.8 Kennedy-Wilson Holdings Inc. (H) KW 11.92 -2.4% 19.3% 16.7% NA 536.1 Center Financial Corp. CLFC 6.25 -2.8% -17.5% 18.6% 13.9 249.5 Kilroy Realty Corp. KRC 38.72 -4.9% 6.2% 16.4% 430.2 2,263.7 City National Corp. CYN 53.39 -0.5% -13.0% -5.9% 18.0 2,839.2 LTC Properties Inc. LTC 27.06 -2.8% -3.6% 6.5% 24.4 820.9 Colony Financial Inc. CLNY 17.71 -1.6% -11.5% -1.3% 12.1 579.7 Macerich Co. MAC 52.85 -3.3% 11.6% 29.9% 195.7 6,918.0 East West Bancorp Inc. EWBC 18.86 -4.1% -3.5% 6.5% 13.0 2,804.8 Meruelo Maddux Properties Inc. MMPIQ 0.52 8.3% 85.7% 147.6% NA 45.8 Farmers & Merchants Bank FMBL 4250.00 -0.3% 7.1% 2.1% 9.7 556.4 MPG Office Trust Inc. MPG 3.20 -13.3% 16.4% 7.0% NA 156.9 First California Financial Group Inc. FCAL 3.79 1.1% 35.4% 48.0% NA 107.7 Pacific Office Properties Trust Inc. (L) PCE 1.80 -10.0% -56.8% -65.0% NA 34.9 General Finance Corp. GFN 2.63 -8.4% 32.8% 113.8% NA 57.9 Portsmouth Square Inc. PRSI 24.00 0.0% 4.3% 17.1% 6.3 17.6 Great American Group Inc. (L) GAMR 0.21 -4.5% -57.1% -83.2% NA 6.5 PS Business Parks Inc. PSB 56.62 -2.9% 1.6% -4.7% 32.0 1,399.3 Green Dot Corp. GDOT 31.62 6.4% -44.3% -26.5% 32.9 1,324.2 Public Storage (H) PSA 119.19 -1.5% 17.5% 20.7% 42.1 21,336.3 Hanmi Financial Corp. HAFC 1.03 -17.6% -10.4% -15.6% 20.6 155.8 Kaiser Federal Financial Group Inc. KFFG 12.18 -2.1% 5.2% 0.6% 13.9 116.4 Santa Fe Financial Corp. SFEF 14.75 0.0% 11.7% 22.9% 163.9 18.3 Malaga Financial Corp. MLGF 14.85 0.0% -2.6% -1.0% 8.1 86.7 Thomas Properties Group Inc. TPGI 3.30 0.9% -21.8% -4.3% NA 168.0 Manhattan Bancorp MNHN 3.65 0.0% -29.1% -18.9% NA 14.6 RESTAURANTS/RETAIL/GROCERY Mission Valley Bancorp MVLY 4.03 0.0% 7.5% -2.9% NA 18.2 99 Cents Only Stores NDN 19.75 -2.6% 23.9% 18.1% 18.5 1,391.1 Nara Bancorp Inc. NARA 8.05 -2.8% -18.3% 8.8% 15.2 305.9 Arden Group Inc. ARDNA 89.61 -5.0% 8.6% -1.8% 15.2 275.2 NCAL Bancorp (L) NCAL 7.25 -3.3% -27.5% -29.3% NA 17.1 Big 5 Sporting Goods Corp. BGFV 8.41 -1.1% -44.9% -39.5% 9.2 184.9 Pacific Commerce Bank PFCI 3.25 0.0% 8.3% -7.1% NA 7.9 Cheesecake Factory Inc. CAKE 29.52 -9.7% -3.7% 22.6% 19.8 1,704.8 PacWest Bancorp PACW 20.24 -2.1% -5.3% -4.7% 39.7 717.7 DineEquity Inc. DIN 51.89 -5.5% 5.1% 35.9% 31.1 961.3 PennyMac Mortgage Investment Trust PMT 16.04 -2.2% -11.6% -3.4% 9.4 445.3 Grill Concepts Inc. GLLC 0.28 0.0% -3.4% -20.0% NA 2.5 Preferred Bank PFBC 8.27 11.0% -6.0% -17.3% NA 109.1 Jerry's Famous Deli Inc. DELI 1.50 0.0% -57.1% -52.4% 4.8 7.0 Saehan Bancorp SAEB 0.25 0.0% -35.9% -64.8% NA 47.3 Sport Chalet Inc. SPCHB 2.15 -2.3% -42.5% -15.4% NA 28.4 SearchMedia Holdings Ltd. IDI 1.86 -6.5% -40.2% -43.5% NA 38.8 SOFTWARE Wilshire Bancorp Inc. WIBC 3.26 4.5% -57.2% -58.0% NA 232.4 Activision Blizzard Inc. ATVI 11.92 0.1% -4.2% -0.2% 19.5 13,632.7 HEALTH CARE Cornerstone OnDemand Inc. CSOD 16.86 -6.6% NA NA NA 801.5 Health Net Inc. HNT 28.54 -6.2% 4.6% 17.2% 11.7 2,582.7 CyberDefender Corp. (L) CYDE 0.85 -4.7% -72.3% -74.1% NA 23.9 Herbalife Ltd. HLF 57.09 -1.1% 67.0% 123.3% 21.9 6,807.3 Guidance Software Inc. GUID 7.37 -12.9% 2.5% 50.4% NA 186.6 Imaging3 Inc. IMGG 0.08 -3.0% -47.7% -73.8% NA 30.4 Peerless Systems Corp. PRLS 3.76 -2.8% 19.4% 33.8% 19.8 13.0 IPC The Hospitalist Co Inc. IPCM 49.87 1.4% 27.8% 91.9% 31.6 816.3 Simulations Plus Inc. SLP 3.34 3.4% 24.2% 41.5% 18.6 51.9 Molina Healthcare Inc. MOH 23.38 -11.7% 25.9% 23.2% 15.4 1,072.1 THQ Inc. (L) THQI 3.20 -0.3% -47.2% -35.4% NA 218.6

NOTES ON STOCK TABLES (H) Stock hit new 52-week high (L) Stock hit new 52-week low (S) Stock split during week 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

26 LOS ANGELES BUSINESS JOURNAL REAL ESTATE AUGUST 1, 2011 Tower Owner Hopes to Rise After Chapter 11 Many of its problem holdings were pur- much higher than REORGANIZATION: Deal REAL chased at the height of the market. In 2009, the 15 percent mar- ESTATE Milbank filed Chapter 11 to reorganize the ket average. Mil- for downtown property company that owns its downtown Roosevelt bank listed has eluded Milbank. JACQUELYN Lofts. It also has filed Chapter 11 to reorganize Figueroa Tower for the companies that own Encino Corporate $75 million in HE partnership that owns Figueroa RYAN Plaza at 16661 Ventura Blvd., and First August last year. Tower in downtown Los Angeles has National Buildings I and II in Oklahoma City. In a motion T filed for Chapter 11 protection while it A year after Milbank bought the Figueroa related to the reorganizes its finances. from the Mani Bros. Real Estate Group. Mil- Tower, its anchor tenant, law firm Manning & Chapter 11 filing, The building is one of many properties held bank filed last month to reorganize the partner- Marder Kass Ellrod Ramirez LLP, broke its the company asks by Milbank Real Estate Services Inc. through ship that holds the building, Figueroa Tower-I 60,000-square-foot lease early and moved across to use cash collat- separate limited liability companies. Milbank has LP. Liabilities are estimated at $64.3 million, the street to 801 S. Figueroa, which is owned by eral from the been trying to sell Figueroa Tower for more than most of it in the mortgage. Mani Bros. While the space was subleased, the Figueroa Tower’s L.A.: Figueroa Tower. a year. The real estate investment and manage- The tower joins four other Milbank proper- uncertainty of lease renewals made it nearly August and Sep- ment company bought the 24-story building at ties in Chapter 11. The company has also sold impossible for Milbank to find a buyer for the tember rent, a projected total of $968,000, to 660 S. Figueroa St. for $62.4 million in 2004 several properties. building, which was already 25 percent vacant, pay the building’s operating costs and related bankruptcy charges until it completes reorganization. Among the top unsecured creditors listed in the filing are the Los Angeles Department of Water and Power, AMB Security Services, Col- liers International and Cushman & Wakefield. Milbank did not return calls for comment.

Business Platinum Credit Card AV Club CCS California, an audio and visual equipment company, is consolidating its L.A. base and Orange County office at a new headquarters in Hawthorne this month. The company bought a 12,250-square-foot introductory property, at 3331 Jack Northrop Ave. near the Hawthorne Airport, for $2.1 million from rate Kearny Real Estate Co. in June. It’s investing $1 million to convert 80 percent of the industrial warehouse into corporate office space, and to create a showroom and servicing facility. The firm is moving from a 7,000-square-foot office at 5055 Wilshire Blvd. and a 1,500-square- foot Costa Mesa office at 3525 Hyland Ave. The new digs are in the Century Business Center, an 86-acre business park, formerly 0% home to defense contractor Northrop Grum- man Corp., near the intersection of the San Diego (405) and Century (105) freeways. The complex is also home to electric-car maker Tesla Motors and Space Exploration Tech- Special offer for all new California customers nologies Corp., better known as SpaceX. The 15-year-old company sells products such as interactive whiteboards, projectors and The Wells Fargo® Business Platinum Credit Card is an essential tool for all small businesses video conference systems to clients that include Northrop, UCLA and Walt Disney Co. to help better manage business expenses, while getting rewarded for everyday purchases. CCS was represented by Travers Realty’s Get the business platinum credit card today and take advantage of the 0% introductory Guy Eisner and Mark Rauch. Kearny was represented in-house by Principal Hoonie Kang. rate for 6 months! Lion Roars The Business Platinum Credit Card offers: Lion Real Estate Group is on a buying spree. It recently picked up one multifamily

1 complex and is in escrow on another and a ƌ żǚ$)/-* 0/*-4-/ !*-Ƃ(*)/#. *)+0-#. .) ') /-).! -. mixed-use property. The value of the three transactions is $8.5 million. ƌ ./Ɲ$)Ɲ'.. - 2- . Last month, the Brentwood property invest- 2 ment company bought for $2.6 million a 24- ƟɄɄ)-*''Ʉ$)Ʉ/# Ʉ0.$) ..Ʉ- Ʉ 2- .Ʉ+-*"-(Ʉ) Ʉ" /Ʉ/# ɄŨ-./Ʉ4 -Ʉ- 2- .Ʉ!- unit Silver Lake apartment complex, at 1042 Ɵ -)(*- 1'0' - 2- .!*- 1 -4 40.$) ..+0-#. . Sanborn Ave., just steps from the area’s popular retail strip Sunset Junction. ƌɄ * ))0' - ! It also paid $2.6 million for a 42-unit building in Hollywood, at 5105-5115 Melrose Ave. at the corner of St. Andrews Place near Paramount Studios. ƌɄ - $/ '$) . 0+ /* ǃƁżƇżżż Lion is buying a mixed-use property that includes a 34-unit Pasadena complex. The sale Talk to your California banker today! is scheduled to close at the end of this month. The four-story building, at 306 S. El Molino Ave., is next to a triplex and a parking lot, which are included in the $3.3 million deal. The company, which specializes in buying and revitalizing underutilized properties, plans to renovate all of its recent purchases and achieve higher rent rates within the year. The company has bought eight other proper- 1 Offer valid from July 1, 2011 to December 31, 2011. New approved Business Platinum Credit Card accounts submitted through a California banker during ties in the past year, and plans to acquire 1,000 the promotional period will receive the introductory rate of 0% for the first six billing cycles. The 0% introductory rate applies to purchases and balance residential units within the next five years. transfers for the first six cycles as long as the customer does not default under the Customer Agreement. 2 Enroll in the Wells Fargo Business Card Rewards® program when you open a new Business Platinum Credit Card account and get the annual rewards Staff reporter Jacquelyn Ryan can be reached program fee of $50 waived for the first year only. at [email protected] or (323) 549- © 2011 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. (578606_02504) 5225, ext. 228. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

AUGUST 1, 2011 LOS ANGELES BUSINESS JOURNAL 27 Investment Properties For Sale COMMERCIAL RESIDENTIAL

2 101 W. 3rd FOR SALE Dodger 5 FOR SALE WILSHIRE Stadium 38 UNITS FREE STANDING RETAIL BLVD. DOWNTOWN LONG BEACH 10 • 4 blocks to the beach ◆ Daryl Ellison • Near Queen Mary & LOS ANGELES COUNTY VENTURA COUNTY FIGUEROA ELLISON REALTY Convention Center FLOWER Santa 10 OFFICE: (562) 439-5433 • Owner may carry 1st

Clarita ALAMEDA 60 CELL: (562) 883-1887 • $3,950,000 110

118 OFFICE Simi 2 • Over 2,000 SF on Busy Valley Northridge Corner Next to Taco Bell Burbank 170 DESIGNER OFFICE • Use Code – Retail Stores, Agoura 5 Hills 101 Rear Parking For 8 Hollywood Pasadena 210 FOR LEASE Calabasas Glendale 405 Alhambra 10 West Steve Warshauer Covina LOS ANGELES Pomona 888-895-7535 Ext 225 1 Santa Monica Montebello 3 Malibu Venice Culver City Whittier LOS ANGELES COUNTY Marina Del Rey Lynwood 5 RETAIL FOR SALE ORANGE COUNTY El Segundo 31,900 SF, MULTI-TENANT Hawthorne NNN RETAIL INVESTMENT Manhattan Beach • Free Standing 3,303 SF, 5 miles Hermosa Beach Single Level Torrance 1 Redondo Beach Anaheim • Floor to Ceiling Windows Carson 2 throughout – Central Atrium Long

Rancho Palos Huntington Santa Ana Verdes LONG Beach Steve Warshauer BEACH San Clemente Irvine LEGEND LOS ANGELES HARBOR 888-895-7535 Ext 225 HARBOR Ferguson: # 1 heating and plumbing distributor in the world Office Costa Mesa Goodwill: New 10-year lease with 3% annual increases California Patio: One of the largest outdoor furnishings retailer in So CA Residential Signalized Intersection Location Need more information 2 Blocks from The River Entertainment Center Commercial 72014-72060 Highway 111, Rancho Mirage, CA on advertising your Industrial Contact: William B. Asher Investment Property? 949.585.7684 • [email protected] Land DRE License #01318078 Call Rosz Murray • 323.549.5225 ext. 215

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RETAIL SPACE & EXECUTIVE SUITES Bank Site - LA’s Premier Address Available Space: 3,200 sqft.+++ (signalized corner) LOWERED ADDRESS: 2137 W 182nd St, Torrance CA 90504 TO 750K Term Length: 3-10 years (negotiable) Lease Type: Bank branch site Rate Type: NNN Available Space: 1039 sqft Location: Nijiya Plaza Also - ofﬁ ce/retail from 3.50 Available: Immediately Term Lease: 4 year Rate Type: NNN Contact: Arun Bhumitra, Armitra Properties Email: [email protected] Phone: (310) 994-7400 Useage: Optometrist, Acupuncture, Beauty Salon, Barber Shop, Liquor Store, Etc ADDRESS: 23211 Hawthorne Blvd., Torrance, CA Available: Immediately- Last One Left Originally 15 Million - property can now be purchased for 9.5 Million! ADDRESS: 2161 W 182nd St #103, Torrance CA 90504 Available Space: 533 sqft Rate Type: Gross Lease COMMERCIAL Available: Immediately Lots of Visibility, Corner Ofﬁ ce/Building Contact: Patsy Palos 310-532-2111 ext 3039 Email: [email protected] COMMERICAL PROPERTY FOR LEASE ADDRESS: 22905 S Vermont Ave, Torrance CA Showcase your property in the Available Space: 15,500 sqft Supermarket Building ++ 10,000 sqft available LEASING GUIDE section of the Term Length: 20 year Rate Type: $1.99 sqft + NNN Useage: Supermarket, Drug Store, Automotive Super Store, Los Angeles Business Journal. Medical Use Potential, Etc. Lots of Potential Available: Immediately Contact: Patsy Palos 310-532-2111 ext 3039 Email: [email protected] Call Rosz Murray • 323.549.5225 ext. 215 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

28 LOS ANGELES BUSINESS JOURNAL AUGUST 1, 2011 BUSINESS MARKETPLACE CORPORATE TRANSPORTATION BUSINESS SERVICES

INVESTMENT OPPORTUNITIES An Iconic Australian Wine Direct To You

Robertson of Clare Wines is a bou que producer from the Clare Valley with a very limited quan ty of the Iconic 2005 MAX V Super Bordeaux Style Blend (5 varie es) reserved for the US market. The wine has won 5 Gold Medals and has been awarded a 95/100 from James Halliday, Australia’s top wine cri c and an 18/20 from UK MW Jancis Robinson. Not yet rated by Parker so you be the ﬁ rst to cellar its poten al.

Buy direct from the producer’s LA Oﬃ ce at US $58/bo le plus local delivery charges. Minimum order 1 dozen, maximum 2 doz.

See www.rocwines.com.au for full details and send your order request to [email protected]. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

AUGUST 1, 2011 LOS ANGELES BUSINESS JOURNAL 29 BUSINESS MARKETPLACE FINANCIAL SERVICES CAREER SERVICES

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30 LOS ANGELES BUSINESS JOURNAL AUGUST 1, 2011 BUSINESS MARKETPLACE AIRCRAFT CHARTER LEGAL SERVICES

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AUGUST 1, 2011 LOS ANGELES BUSINESS JOURNAL 31

‘We showed that things could be changed and laid the foundation for change ... So much more needs to be done to move the needle so that businesses can regain the confidence to hire and reinvest in our city.’ MATT KARATZ, CITY OF L.A. JOBS CZAR

Government: Jobs Czar Has Backing of Business

at the Department of Building and Safety. long-term career. harsh media glare shone on the dealing of his Continued from page 1 But some business leaders have privately “This was all about uncovering the bad in father, whose reputation suffered. expressed disappointment that Beutner’s atten- people and, at bottom, I’m a glass-half-full “The publicity was the most challenging Beutner, a former private investment exec- tion was forced elsewhere when Villaraigosa person. So I decided to transition out of the part of this whole affair,” he said. “I learned utive, left the administration three months ago called on him to run the DWP. Then, just after business,” he said. how to grow a thick skin.” to consider launching a campaign to replace he returned to focus full time on his jobs czar Karatz returned to Los Angeles and decided Of that period, Bruce Karatz said one of the Villaraigosa as mayor in 2013. duties, Beutner resigned to launch his to join his father’s company. “This was some- most difficult things for him was the concern After working in broadcast journalism and exploratory campaign for mayor. thing I did completely on my own; my father that his children, wife, family and friends con- real estate – including stints at Westwood- Beutner said that while he was focused on never persuaded me to do it,” he said. tinually expressed for him. based KB Home and Caruso Affiliated Hold- the DWP, he delegated some of the economic In fact, Bruce Karatz took a hands-off “I had to keep telling them that I was fine, ings in Los Angeles – Karatz, 39, is suddenly development work to his volunteer corps, approach. His son was assigned to KB Home’s that whatever happened I was going to make it one of the most powerful people at City Hall including Karatz. land division, where he helped negotiate land through OK and so would they,” the elder and one that the local business community He also said it would be naïve to assume deals. Matt Karatz eventually rose to senior Karatz said. looks to. He will help craft and implement that Los Angeles could become business- director of land acquisition for KB Home’s more business-friendly policies. friendly in a year. north L.A. division, covering north Los Ange- Call to serve He also supervises the city’s development “We showed that things could be changed les County, and Ventura and Kern counties. In the midst of the trial, Matt Karatz and housing agencies, Los Angeles World Air- and laid the foundation for change,” he said. Bruce Karatz said that his being chairman received a call from Beutner, who just weeks ports, the Port of Los Angeles “There’s much more left to do, probably hindered his son’s ability to advance earlier had joined the Villaraigosa administra- and the Department of Water but that first step is often the in the company. tion as first deputy mayor. Beutner was look- and Power. One of his tasks is to LABJ POLL hardest.” “In retrospect, going to work at KB Home ing for volunteers (they got a symbolic salary make these inertia-prone and Should L.A.’s permit Karatz said he’d be continu- slowed down his growth,” he said. “Being the of $1 a year) to help bring focus to City Hall’s turf-conscious bureaucracies process be streamlined? ing on that path. son of the chairman one might think that it’s efforts to attract and retain businesses, create more responsive to business and labusinessjournal.com “So much more needs to be helpful. In his case, it was hurtful. His abilities jobs and grow the economy. development. done to move the needle so that were far greater than the responsibilities that “At first, I said, ‘No, thank you,’” Karatz For Karatz, it’s a chance to businesses can regain the confi- he was given. I never directed anyone in our said. “But then, the more I thought about it and emerge from the shadow of his father, who last dence to hire and reinvest in our city,” he said human resources department on what to do talked it over with my wife and family, the year was convicted on charges of backdating during a recent visit to the Business Journal with Matt.” more the offer appealed to me as a way to give stock options while at KB Home. Bruce Karatz offices. At about this time, the younger Karatz got mar- back to the community.” received a sentence of five years probation, However, Karatz and the Villaraigosa ried. He met his wife, Lindsey, at a dinner party in But Karatz had one condition: He had to including eight months of house arrest in administration must tread carefully. If they go New York. She now oversees marketing and pub- stay with the family investment business at which he must wear an electronic monitor. He too far in their efforts to smooth the road for lic relations for her sister’s L.A.-based women’s least through the verdict. Once that happened, was also sentenced to 2,000 hours of commu- business and development interests, they risk a apparel company. They live in the Benedict in April of last year, Karatz joined Beutner’s nity service, and has been fulfilling that by backlash from homeowner and environmental Canyon area with their 4-year-old son, Levi. team at City Hall, working out of a Spartan working with former gang members at down- groups concerned about congestion and In 2006, Bruce Karatz resigned as chairman office on the 13th floor. town L.A.’s Homeboy Industries. overdevelopment. and chief executive amid mounting investiga- He said the biggest surprise he encountered For the last year, Matt Karatz had been tions of the company’s handling of stock was that despite good intentions, City Hall just managing director of the mayor’s office of Getting there options. Matt Karatz left a few months later couldn’t make it easier for developers and economic and business policy, part of a team Karatz lived in France as a boy because his and took a job working for shopping mall other businesses to succeed in Los Angeles. of volunteers recruited by Beutner to assist in father was running KB Home there; at one magnate and potential mayoral candidate Rick An example of what he calls all the missed his business development activities. point, it was that country’s biggest home- Caruso. His first responsibility at Caruso Affil- opportunities was the failure of the “12-to-2” In that role, Karatz helped bring new com- builder. iated was selling condominiums that were part permit reform program. The number of agen- panies to the city, including architectural firm He initially decided against following in his of the Americana at Brand project in Glendale. cies responsible for approving projects was Gensler, which moved to downtown from father’s footsteps and, after graduating from Unfortunately, Karatz’s timing was off. supposed to be reduced by that ratio. Turf bat- Santa Monica, and apparel company Lucky Pitzer College in Claremont, moved to New Within months, the real estate market crashed. tles and bureaucratic inertia stalled the pro- Brand Jeans, which moved from Vernon to York to embark on a journalism career. Caruso described Karatz as personable and gram for two years and Beutner finally pulled downtown’s Arts District. He also helped Irv- He landed a job as a broadcast intern at a “good thinker,” who is able to bring people the plug on it last summer in favor of top-to- ing, Texas-based Mission Foods open a manu- ABC News. Then, two years later in 1996, he along with him as he puts forward solutions. bottom reform. facturing plant in Panorama City. got his big break. It was Mother’s Day and a “People like Matt and they want to follow The conference room for the economic ValuJet plane had just crashed in the Ever- Matt and do what he asks them to do,” Caruso Business reaction development office on the 13th floor of City glades in Florida. With his regular crew said. “That’s a really strong and important Karatz said his top tasks will be to imple- Hall features a board with the legend, “Getting unavailable, Karatz’s boss, investigative corre- quality, especially at City Hall.” ment further permit reform and garner support to Yes,” and decorated with letters from busi- spondent Brian Ross, asked him to fly down to for Villaraigosa’s latest initiative to scrap the nesses and other constituents grateful for the Florida and interview the manager of ValuJet’s Period of trial city’s costly and much despised gross receipts department’s help and can-do attitude. maintenance facility. As the recession dragged on, Karatz’s business tax. “I left my mother at the lunch table and prospects at Caruso dimmed. In the meantime, his Some see him as an untested commodity, Business praise went straight to the airport,” he recalled. “I expertise was needed on the home front as his and wonder about his youth and the level of Karatz has won plaudits from local busi- didn’t even have time to get any of my things.” father prepared for trial. So he left Caruso and support he’ll have at City Hall. ness leaders who have worked with him over The interview was the lead story on both took over management of Avondale Investments One local business leader, speaking private- the past year. the “ABC Nightly News” and “Nightline,” and LLC, the Karatz family property portfolio. ly, said that while Karatz shows promise, he “Matt gets it,” said Carol Schatz, chief Karatz’s broadcast career took off. He was Matt Karatz described the next year as a has had little experience leading large organi- executive of the Central City Association, promoted to an investigative reporting position tough time. zations. “He’s no Austin Beutner,” that person which represents business interests, primarily on the “20/20” news magazine show, where he “Watching my father go through this was said. downtown. “He understands the barriers that received an Emmy Award for a story on cam- very difficult for me and very, very unfortu- Caruso, who has been critical of City Hall, developers and businesses face and what’s paign finance reform. He also worked on an nate,” he said. “But he never let it show. He said that despite his respect for Karatz, the necessary to spur business investment in the award-winning expose of CIA activities in was able to gather the troops and think posi- environment might prove to be very difficult. city. Most important, he has shown he can Iraq. During that investigation, sources blind- tively. He was responsible for keeping all of us “He’ll do a good job over there in a very implement things, not just talk.” folded Karatz and his news team to take them heading in the right direction when we could tough situation,” Caruso said. “But he’s part of But Karatz faces a challenge in convincing to secret locations. each have gone off the deep end.” an administration that’s not had great success a skeptical business community that lasting “I really enjoyed it. At the time, I was unat- That applied even on what he called the in bringing in new business – and now it’s a change can be made after years of promises tached and traveling the world and getting two worst days in his life: the reading of the lame duck administration, too. People get and false starts. such incredible assignments,” he said. guilty verdict in April 2010 and sentencing day stuck in their ways after so many years in an Business interests got their hopes up early seven months later. administration. So the real question is whether last year when Villaraigosa named Beutner his Joining father’s firm As an investigative journalist, he had rev- Matt can get the backing of the mayor to get jobs czar. Accomplishments of the office include As he neared 30, Karatz realized that he eled in exposing secrets the subjects of his sto- meaningful change and the resources to carry opening a one-stop permitting office last month didn’t want investigative journalism to be a ries would rather not become public. Now, the it out.” 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

32 LOS ANGELES BUSINESS JOURNAL AUGUST 1, 2011

RINGO H.W. CHIU/LABJ Racked Up: Left, clothing retailer Live! On Sunset at former Tower Records site on Sunset Boulevard; right, rendering of three-story Centrum project. Development: Project Owner Won’t Bend on Gym

to the project at a July meeting, and the com- spaces, about 40 fewer than is typically around and go somewhere else instead,” he said. Continued from page 1 mission asked city administrators to get more required for a project of this size by the city. “We’re not saying don’t build,” Eisenberg information on their concerns. The site has commercial buildings on three said. “What we are saying is put in a responsible Steadman, the association’s executive director, sides and residential homes to the north. project that is not at the level of traffic impacts said that new development is crucial along that Centrum Sunset this project is. We have a lot of common goals part of Sunset. Centrum Sunset would be the first L.A. Years of opposition in wanting to revitalize the strip. There are uses “Something needs to change there,” he project for Barket and his company, Centrum Since the Centrum Sunset plan was that are not as (parking intensive) as a gym. He said. “That corner is iconic and it’s a project Properties Inc., which builds residential com- unveiled five years ago, residents have sent in has never not considered a gym and he has that I think will bring some life. Business munities and mixed-use projects, and develops hundreds of letters to the city and have orga- never reduced the size of the gym.” brings business.” Walgreens stores in the Midwest. nized against the project at nearly all public But Barket disagreed; he said he has lis- Wolfgang Puck’s famous Spago restaurant To clear the way for Centrum Sunset, Bar- meetings where it was discussed. tened to the neighbors carefully and made closed across from that corner in 2001; Tower ket would demolish the one-story building on The resident group, led by Elyse Eisenberg, many modifications to the project over the Records closed in 2006. The building now hous- the site, now home to clothing retailer Live! who has lived in the city for nearly 25 years years in response. es a clothing store. There hasn’t been any retail On Sunset, and replace it with a three-story, and heads the West Hollywood Heights Neigh- “We came to what we believe is a really development at the intersection in recent years. 52,000-square-foot building. Plans call for borhood Association, said that she is not great compromise,” Barket said. “It may not So the association sees the new project as office space on the top floor, gym and spa opposed to the building itself. Her group wants have gotten to the level that certain people necessary. space on the second floor, and retail on the to eliminate electronic signage, make the would have liked to have seen, but I truly think “The strip, just like any destination, contin- first. The project includes a 12,000-square-foot building one floor shorter, add parking and an it’s a compromise from where we started.” ues to need to have exciting new things,” public park on its north side as a kind of buffer entrance at Sunset and Horn. The group also If the project is approved, a development Steadman said. “By having new and exciting zone for residences. wants Horn to be widened. agreement gives West Hollywood 10 percent projects, it draws attention to the boulevard.” The project will include a David Barton What’s of most concern to neighbors is the of revenue from the project’s sign advertising. Burket believes his project is a great match. Gym, a fitness center with spa facilities. The traffic. An environmental impact report esti- While Barket declined to estimate an amount, “It wasn’t necessarily L.A. that I was look- Miami chain has a gym in one of Barket’s mates the project will add 1,161 car trips a the proposal indicates the city could get at least ing to do a development in, it was West Holly- Chicago properties. Barket said it’s an integral weekday, mostly to and from the gym. $450,000 from the project annually. wood,” he said. “(This project) is going to part of the Sunset project. Jerome Cleary, a stand-up comic and writer But that doesn’t mean the commission is totally revitalize and transition that area of the He is proposing an 11-foot-by-128-foot who lives next to the site, said businesses that ready to rubber-stamp the project. Sunset Strip, which is an amazing boulevard electronic billboard that wraps around the top support the project are not considering the “I think there are a lot of questions about the with a lot of history.” of the building, as well as a 36-foot-by-14-foot increased traffic. billboard and a lot of questions of parking,” said This week’s meeting will be the second billboard on the Sunset side of the structure. “I think other Sunset Strip businesses will Planning Commission Chairman Alan Bern- time the project goes to the commission. About The project will also provide two floors of lose a lot of business when customers cannot stein. “There’s a lot of traffic on Sunset and 50 residents showed up to speak in opposition underground valet parking for a total of 238 make it down Sunset timely and will turn obviously new construction does have impact.” Lending: ZestCash Wants to Take From Payday Lenders

expansion in other states. Merrill declined to Continued from page 5 estimate when the company would enter the ‘While we always welcome competition, it’s hard to California market. said the ZestCash site does a good job of mak- Also, the money will fund a larger payroll. ing costs clear to the borrower, but those costs comment on this company’s business model. This company The company has 40 employees but expects to are still very high compared with alternatives is an installment lender, not a payday lender.’ reach 60 by the end of the year. Merrill esti- such as credit cards. STEVEN SCHLEIN, Community Financial Services Association of America mates the company will reach breakeven by For example, the ZestCash site states its early 2012. average interest rate is 180 percent. Merrill wants ZestCash to have a quirky cor- “Even a credit card at 30 percent is a much porate culture like Google. Couches sit between better option,” Leonard noted. as deal with any issues over the life of the loan. ditional payday loan, which on average is $350 the cubicles, toys sit on desks and posters of Also, Leonard said payday stores have a Steven Schlein, a spokesman for the payday and has a two-week term.” crash-test dummies decorate the walls. Merrill reputation for excellent customer service, a lender trade group Community Financial Ser- doesn’t have an office, just a desk in a corner; he potential marketing advantage over an online vices Association of America, said the industry State strategy selected his location because a nearby window lender such as ZestCash. welcomes online competitors such as ZestCash Online finance companies can operate displays the Hollywood sign. “Payday lenders have stores in low-income because consumers get the option of choosing either as partners with a federally chartered Although Merrill believes his credit algo- areas where people of color are concentrated either the personalized service of a storefront bank or as an independent company regis- rithms can accurately predict whether a bor- and they hire people from the area who cus- or online convenience. tered in specific states. Because state regula- rower will pay back a loan, it’s a hypothesis tomers feel comfortable with,” he said. “They “While we always welcome competition, tions are simpler, ZestCash has followed a he never had to try with his first customer – are good at providing friendly service to sell it’s hard to comment on this company’s busi- state-by-state growth strategy. Currently, the the sister in Spokane, Wash., who needed these incredibly predatory loans.” ness model,” he said, referring to ZestCash. company operates only in Missouri, South new tires. Merrill said ZestCash’s procedure includes “This company is an installment lender, not a Dakota, Utah and Idaho – states with simpler “I’m sure she would have paid me back,” a phone conversation with a service represen- payday lender. It makes longer-term loans that regulatory environments. he asserted, “but I ended up giving her that tative to provide a human connection as well are generally a higher dollar amount than a tra- The $11 million in venture capital will fund money.” 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

AUGUST 1, 2011 LOS ANGELES BUSINESS JOURNAL 33 Investment: Leonard Green Wants to Pocket 99 Cents “They’re very disciplined about looking for she said. “Clearly, (Leonard Green) makes Continued from page 1 transactions that fit their criteria,” said John friends with management.” Mack, managing director of Century City Shopping Spree Calls to 99 Cents Only were not returned. president of downtown L.A. investment bank investment bank Imperial Capital LLC, which Leonard Green & Partners has announced A large shareholder has criticized the $1.3 Greif & Co., who has known Leonard Green’s has explored potential deals with Leonard more than $9 billion worth of buyouts and billion offer as too low and is urging the board leaders for decades. “They’ve got strong fun- Green. “Their performance speaks for itself.” other investments in the past year. to find a better offer. But that could be tough, damentals when it comes to retail. It’s an area Target Deal Value Storms said, since the family is supportive of that a lot of firms don’t invest in.” Deep roots Company Date (in billions) Leonard Green’s offer. Started by a leveraged buyout pioneer and Leonard Green was launched in 1989, but The firm is known to leave management run by former Drexel Burnham Lambert exec- its roots go back decades earlier. 99 Cents Only Stores NA* $1.3 teams largely intact at the companies it buys, utives, the firm, which overlooks the San In 1969, Leonard I. Green, the man, co- BJ’s Wholesale Club June 29 2.8 largely because it targets companies that are Diego (405) Freeway from its offices at Santa founded New York merchant bank Gibbons Cascade Bancorp Jan. 28 0.18 already well-run. Experts said the firm is able Monica and Sepulveda boulevards, now has $9 Green and van Amerongen Ltd., which along Jo-Ann Stores Dec. 23 1.6 to add value in part by providing capital for billion under management and 30 companies with Kohlberg Kravis Roberts & Co. and sev- J. Crew Group Nov. 23 3.0 growth and improvement, which 99 Cents in its portfolio. eral other firms pioneered the leveraged buy- Prospect Medical Holdings Aug. 16 0.36 Only can use. Since the financial crisis, many of the local out business. *Announced deal has not yet been approved by board “I think the deal will get done,” Storms private-equity firms active in the market have The deals, which were financed by high- Source: Leonard Green & Partners LP said. “It really makes sense. There’s a lot of been those specializing in distress investing, yield debt – or junk bonds – became especially investing that has to go on at 99.” including Beverly Hills’ Platinum Equity popular during the 1980s. In 1986, Green, who LLC and downtown L.A.’s Oaktree Capital ran the firm’s L.A. office, helped arrange what took a lesser role at the firm, passing control to Aggressive tactics Management LP. But Leonard Green, which was then one of the largest buyouts ever, the three managing partners – former Drexel exec- Still, Leonard Green’s tactics have drawn has announced six acquisitions in the past year $520 million acquisition of Budget Rent-a-Car. utives John Danhakl, Peter Nolan and Jonathan some criticism. totaling more than $9 billion including debt But toward the end of the decade, Green Sokoloff – who still run the company today. The firm, along with partner TPG Capital and partner investments, has gone against the split from Gibbons Green over “philosophical Observers said that consistency of leader- of Fort Worth, Texas, reportedly negotiated for grain by targeting relatively healthy companies differences,” he said at the time, and launched ship has helped the firm remain committed to nearly seven weeks with J. Crew Chief Execu- with growth potential. his eponymous firm, which debuted with a its acquisition strategy despite market cycles. tive Millard “Mickey” Drexler before present- Unlike its competitors, which sometimes $216 million fund. The timing couldn’t have In a typical deal, Leonard Green will buy ing its buyout offer to the board, a move that seize control of vulnerable companies and been better. out shareholders of a public company using angered some shareholders of the preppy- replace key executives, Leonard Green is “That was the peak of the market in ’89 and relatively low levels of debt and take a control- clothing retailer. The move, critics said, essen- known for taking a softer approach, gaining then it crashed,” Greif said. “The key is getting ling position on the board. In most cases, the tially sealed the deal before the board could management support before acquisitions and that money raised and they just got it done in firm appeals to the management team before solicit better offers from other potential buyers. leaving the executive roster largely intact. the nick of time.” negotiating the purchase. Shareholders filed a lawsuit over the deal, The strategy has paid dividends: Leonard Green died in 2002. But his guiding princi- “They’re not doing things that are hostile or while the New York Times, which graded the Green is the best performing buyout firm in the ples were detailed in a 1990 Wall Street Jour- antagonistic,” Imperial Capital’s Mack said. past year’s deals, gave the buyers an “F” for world, according to a study released in Decem- nal article: avoid companies that are highly “These are guys looking to win over manage- “appearing to manipulate the J. Crew sale ber of more than 300 private-equity firms con- cyclical, struggling or in need of significant ment teams.” process unduly in their favor.” ducted by French business school HEC Paris capital; steer clear of high-tech companies; and Indeed, analysts were surprised in March McCarthy said Leonard Green doesn’t tend and Dow Jones. (The study uses proprietary get control of the company. when the firm announced that it had teamed to pursue hostile takeovers, but he admitted, databases for its rankings and does not disclose Brian McCarthy, a corporate attorney with the family that owns 99 Cents Only to “They can be aggressive buyers.” the actual performance of each firm.) with New York-based Skadden Arps Slate buy the franchise and take it private. The com- To many dealmakers, though, that’s not A number of the firm’s investments have Meagher & Flom LLP who knew Green, said pany was co-founded in 1982 by David Gold necessarily a bad thing. been tremendously successful; for instance, he was anything but a stereotypical cutthroat and the Schiffer-Gold family has remained Howard Marks, chairman of Oaktree, Leonard Green tripled its investment in VCA dealmaker. fiercely protective of its ownership stake. which has been known to take an aggressive Antech Inc. when it exited the West L.A. vet- “He was always very professional and cor- Joan Storms, an analyst with downtown stance when going after potential acquisitions, erinary hospital operator in 2004. dial,” McCarthy said. L.A.’s Wedbush Securities Inc., said she said Leonard Green has a good reputation in The firm, which does not typically disclose After the junk bond market’s flameout, assumed the family would balk at any deal to the local industry. its performance data, is raising its sixth fund leveraged buyout activity slowed in the 1990s, sell the company. “They’ve gone on to have a consistent and declined to comment due to regulatory but Green’s new firm racked up several “I never expected them to be an LBO can- record of good wins and only moderate loss- restrictions. However, many industry leaders notable deals, including the 1992 purchase of didate because of the family. You need the es,” he said. “That’s about as good as you can are willing to detail the firm’s strengths. Big 5 Sporting Goods Corp. In 1998, Green family to be able to get a deal like that done,” do in this business.” Accounting: Koreatown CPAs Oppose ‘Certified’ Billing place themselves in the same category as a hand, take accounting and business courses, earn adding in another phrase that can mean either Continued from page 1 CPA. Who knows, soon they might be calling a bachelor’s degree, and spend at least one year “licensed” or “certified.” themselves attorneys, too.” working under the supervision of a licensed CPA The lawsuit states that in 2008, one enrolled Koreatown. But as the downturn has shrunk Koo convinced 10 other Korean-American in California. They also need to pass an exam agent wrote an article in a Korean-language news- their revenue, they’ve become embroiled in a enrolled agents to stop using the disputed that covers not just tax law but auditing, business paper defending his right to use the disputed term. fight over advertising. phrase in the pages of publications such as the concepts and financial reporting. At about the same time, Korean CPAs “It’s a turf war,” said Paek, who prepares Korea Daily newspaper or the Radio Korea pleaded their case to the California Board of taxes for Korean-American businesses and Business Directory by sending them a cease- Accountancy and the Internal Revenue Ser- individuals from his office on Wilshire Boule- and-desist letter. The 16 who are being sued vice, but the arguments over translation made vard. “They see us as a competitor, but this is didn’t comply with the letter. it hard to get much traction. That’s when the no way to go about it.” One thing both sides agree on is that busi- ‘They hold themselves out 28-year-old KACPA finally sent the cease- Paek and others have been attacked by ness has been sluggish since the downturn. using this title that confuses and-desist letters and filed suit against the Koreatown’s CPAs who claim enrolled agents And new tax and accounting professionals tar- the public ... Who knows, agents who didn’t comply, Koo said. are unfairly moving in on their territory in geting local Koreans continue to open their soon they might be calling “Korean CPAs are very conservative and don’t Korean-language directories and newspapers. doors, increasing competitive pressure. like fighting or conflict,” he said. “They tried to The dispute comes down to a matter of transla- “There’s more and more competition, and themselves attorneys, too.’ persuade (the enrolled agents) again and again, but tion: For years, Paek and others have adver- (the CPAs) think we’re taking away their busi- BENJAMIN KOO, they are adamant about using this term.” tised using the phrase “kong in sae moo sa,” ness,” said Paek, the enrolled agent. “My busi- Korean American Certified The legal fight has had the effect of mobi- which he claims translates to “licensed tax spe- ness is hurting, just like everyone else’s.” Public Accountants Society lizing Korean enrolled agents, who previously cialists.” But Korean CPAs complain the Koo, the attorney-CPA, said he’s seen a operated as lone wolves. Most of those being phrase actually means “certified tax accoun- similar crush of attorneys in Koreatown, and sued have banded together to hire an attorney, tant,” violating state laws that ban non-CPAs attributed the overflow of service professionals and vow to fight the lawsuit, which is in Los from using the word “certified.” partly to the predisposition of Korean immi- Angeles Superior Court. Two weeks ago, they The dispute heated up last month when the grants toward starting businesses instead of But the difference between the two doesn’t revived a long inactive organization, the Kore- Korean American Certified Public Accountants working as employees. really matter to the average Korean-American an American Society of Enrolled Agents. So Society of Southern California, which has more client in Los Angeles, according to Paek, because far, more than 30 enrolled agents in Los Ange- than 300 members, sued 16 Korean enrolled Enrolled vs. certified the services in demand are usually just tax related. les and Orange counties have joined. agents in Los Angeles and Orange counties. The Even without translation problems muddy- Friction between the two sides in Kore- One of those is Ken Kim, an enrolled agent CPAs claim their rivals were using misleading ing the issue, the difference between enrolled atown goes back at least 10 years. At first, Koo based in Northridge whose clients are mostly advertising and causing them to lose business. agents and CPAs can be confusing. said, the enrolled agents just listed themselves Korean immigrants. “They hold themselves out using this title There are about one-eighth as many enrolled as “sae moo sa,” meaning either “tax special- “The lawsuit was definitely a factor (in that confuses the public,” said Benjamin Koo, agents as there are CPAs in the United States. ist” or “tax accountant.” Korean CPAs griped joining),” Kim said. “We haven’t had any a KACPA member who also is representing Enrolled agents pass a two-day exam to prove about it even then, but didn’t take much action. association up to now, but we felt we needed the organization as its attorney. “They want to their familiarity with tax laws. CPAs, on the other Enrolled agents then drew more complaints by some sort of group representation.” 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

34 LOS ANGELES BUSINESS JOURNAL AUGUST 1, 2011

L.A. BIZ SEEN Los Angeles business events

1. From left, John Arnold, Killefer Flammang Architects project manager; Alice Roth, Los 1 Angeles City Council Fourth District deputy district director; Marvin Southard, Los Angeles County Department of Health director; Sarah White, Clifford Beers Housing senior project manager; and John Molloy, Path Ventures executive director; at the June 7 groundbreaking for the NoHo Senior Villas in North Hollywood.

2a. From left, Susan Munro, Hybrid Edit co- founder, and Tynesha Williams, Sanders Wingo creative director, at Hybrid Edit’s June 16 AlterEgo event at Hybrid Edit’s Barn Studio in Santa Monica.

2b. Attendees at Hybrid Edit’s AlterEgo event for members of the local entertainment, advertising and media industries.

3. Tim Mason, Fresh & Easy Neighborhood Market CEO, speaks on “A 21st Century Approach to Food Retailing” July 12 at Town Hall Los Angeles 2a 2b at the Millennium Biltmore Hotel in downtown Los Angeles.

4. From left, Frank Mottek, KNX-AM (1070) host of “KNX Business Hour”; Howard Fine, Business Journal reporter; Jane Wells, CNBC correspon- dent; John Corrigan, Los Angeles Time business editor; Richard Saxton, radio business journalist; at the L.A. chapter of the Society of Professional Journalists’ June 16 “Covering Business News” at the American Federation of Television and Radio Artists ofﬁ ce on Miracle Mile.

5. Eventgoers at Commercial Real Estate Women – Los Angeles’ June 22 Women at the Top awards gala at the Millennium Biltmore Hotel in downtown Los Angeles. 3 4

6. From left, David W. Beehler, Robins Kaplan Miller & Ciresi LLP Minneapolis offi ce partner; Christopher S. Reeder, Century City offi ce partner; and Roman M. Silberfeld, Century City offi ce managing partner; at Robins Kaplan’s July 14 client reception at the fi rm’s Century City offi ce. The event celebrated Reeder Lu LLP’s attorneys joining Robins Kaplan’s Century City offi ce.

7. From left, Jimmy Steal, Emmis Commu- nications/Power 106 vice president; Jeffrey H. Smulyan, Emmis Communications Corp. chairman-CEO; Val Maki, Emmis Communica- tions/Power 106 senior vice president; J. Scott 5 Enright, Emmis Communications Corp. executive vice president; Mary Melton, Los Angeles Magazine editor in chief; Gregory T. Loewen, Emmis Publishing LP president; Deborah Paul, Emmis Publishing LP executive vice president; Patrick M. Walsh, Emmis Communications Corp. CFO-COO; Erika Anderson, Los Angeles Magazine publisher; Amy Banner Saralegui, Emmis Publishing LP vice president; and Wayne Ratkovich, Ratkovich Co. CEO; at Los Angeles Magazine’s June 22 50th anniversary party at the magazine’s headquarters on Miracle Mile.

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AUGUST 1, 2011 LOS ANGELES BUSINESS JOURNAL 35

1a 1b 1a. From left, Ken Kaufman and Brian McKeaney, co-owners of Rush Street bar and restaurant, celebrate the Culver City establish- ment’s third anniversary July 18.

1b. Attendees of the Rush Street anniversary.

2. From left, front row, Marc Merrill, Riot Games president; Brandon Beck, Riot Games CEO; Ajay Handa, Columbus Technologies & Services Inc. CEO. From left, back row, Lyndon Faulkner, Pelican Products Inc. CEO; Neal Schore, Triton Media Group CEO; Steve Rechnitz, Twin Med LLC CEO; Frank Addante, Rubicon Project Inc. CEO; and Perry Wallack, Cornerstone OnDemand Inc. CFO. 2 They were honored at Ernst & Young’s June 21 Entrepreneur of the Year greater L.A.-area awards gala at the Beverly Hilton in Beverly Hills. (Wallack was accepting on behalf of Adam Miller, Cornerstone CEO.)

3a. From left, chiropractor Dr. Dennis Buckley with George Falardeau, Art Center College of Design senior vice president, at the Pasadena Chamber of Commerce’s July 15 Inaugural Gala at the Sheraton Pasadena. Buckley was given a plaque for his service as 2010-11 chamber chairman; Falardeau is the new chairman.

3b. From left, Joseph Anthony, Masters Hair Studio CEO; Patty Waggoner, Amalgamated Bank, senior vice president; Buckley; and Ben Green, San Gabriel and Pomona Valley chapter of the American Red Cross CEO; are sworn in as chamber board members by Falardeau. 3a 3b 4a. From left, Los Angeles City Council Presi- dent Eric Garcetti speaks with Al Abrams, Abrams Creative Services CEO, at the Valley Industry and Commerce Association’s July 21 After Dark event at Morton’s the Steakhouse in Woodland Hills.

4b. From left, Daymond Rice, Vons director of governmental and public affairs, speaks with Garcetti at VICA’s After Dark event.

5. Attendees at Women in Sports and Events’ July 20 Power Night at the L.A. Galaxy’s soc- cer game at the Home Depot Center in Carson.

6. From left, Ali Brown, Ali International LLC CEO; Joy Chudacoff, Smart Women Smart Solutions founder; Merri Jill Finstrom, HUT- 4a 4b dogs chief creative ofﬁ cer; Tracy Williams, Olmstead Williams Communications CEO; and Darya Allen-Attar, Morgan Stanley Smith Barney ﬁ nancial adviser and Broads Circle founder, at Broads Circle’s July 13 luncheon at the UCLA Faculty Center in Westwood.

5 6

L.A. Biz Seen publishes photographs of business-related events in Los Angeles, including parties, awards dinners, benefits and other celebrations. Please e-mail photographs to [email protected] with “photographs” in the subject line. Please include contact information. Compiled by Tom Hicks 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

36 LOS ANGELES BUSINESS JOURNAL COMMENTARY AUGUST 1, 2011 LOS ANGELES BUSINESS JOURNAL ® Less Tax, More Business 5700 WILSHIRE BLVD., SUITE 170, LOS ANGELES, CA 90036 F you have a business in the city of Los Ange- come out ahead. have to pay every bit as much as the same-size busi- (323) 549-5225 FAX 549-5255 les, you probably have two big complaints with Now, this report could be one more that council ness next door that’s got a fat 40 percent margin. www.labusinessjournal.com City Hall. members accept, say thank you and put on the shelf. It’s also burdensome because the rates are I PUBLISHER & CEO One is the absurdly long time it takes – 18 Or they could take the recommendations to heart steep. In Los Angeles, they range from $1.01 to MATTHEW A. TOLEDO months, in some cases – to get rou- and eliminate the gross receipts tax or $5.07 for every $1,000 in gross receipts. No other [email protected] | ext. 207 tine permits to start and operate your at least scale the tax rates way back. city in this region has rates that high (although business. The other is the city’s gross One thing that indicates it may be Santa Monica’s rates come close), and some don’t EDITOR CHARLES CRUMPLEY receipts tax. the latter: Mayor Antonio Vil- have a gross receipts tax at all. [email protected] | ext. 208 On the first complaint, the city has laraigosa has said he favors killing “Since a city tax represents a cost of doing busi- DESIGN DIRECTOR ROBERT LANDRY made some moves to pare back the the tax. It was a surprise when he said ness, cities having such a tax have a clear competi- [email protected] | ext. 243 permit-waiting time. Granted, they that recently in a speech to the Valley tive disadvantage over cities which do not,” wrote MANAGING EDITOR LAURENCE DARMIENTO are grudging moves and have spotty Industry and Commerce Association. the author of the report, USC professor Charles [email protected] | ext. 200 results so far, but at least there’s been Later, reporter Howard Fine of the Swenson, in the draft. DEPUTY MANAGING EDITOR some effort. (For more, see the article Business Journal gave him a chance According to his study, eliminating the tax STEVE SILKIN on page 1 about Matt Karatz.) to walk back, but he stood pat. essentially would result in more businesses mov- [email protected] | ext. 229 NEWSDESK EDITOR As for the second complaint, the COMMENT “I do favor elimination of the gross ing to Los Angeles as well as staying put and TOM HICKS city this week could take a big step receipts tax,” Villaraigosa was quoted expanding in the city. That would result in more [email protected] | ext. 223 toward resolving it. as saying in the article that was pub- property taxes, utility taxes and the like. Under REPORTERS CHARLES RICHARD CLOUGH That’s because a report that ana- lished last week. one of his formulas, for every $1 in gross receipts [email protected] | ext. 251 CRUMPLEY DEBORAH CROWE lyzes reform options put forward by Fine also quoted City Council tax the city would lose, it would gain more than $4 [email protected] | ext. 232 the city-appointed Business Tax President Eric Garcetti saying he is in other taxes. HOWARD FINE Advisory Committee is to go to the council this open to the notion of killing the tax. Let’s hope the City Council members this week [email protected] | ext. 227 ALEXA HYLAND week. And a preliminary draft of that report all Now that two of the city’s top elected leaders understand that it is in their economic best interest [email protected] | ext. 235 but concludes what business operators have are on record opposing the tax, it is far more like- to kill the gross receipts tax, or at least dramatically NATALIE JARVEY [email protected] | ext. 230 known for years: The city would be better off ly the tax will be sent to death row or at least get chop back the rates. JAMES RUFUS KOREN without the gross receipts tax. a Lap Band. And then get back to that permit problem. [email protected] | ext. 225 ALFRED LEE If the city spiked that onerous tax, businesses The gross receipts tax is unfair to businesses in [email protected] | ext. 221 would be more likely to move to Los Angeles or at Los Angeles because it is not an income tax but a Charles Crumpley is editor of the JONATHAN POLAKOFF tax on revenue. That means if your business is Business Journal. He can be reached at [email protected] | ext. 239 least not leave. That would increase the other taxes JOEL RUSSELL the city collects. So much so that the city would scraping by with a 1 percent profit margin, you may [email protected]. [email protected] | ext. 237 JACQUELYN RYAN [email protected] | ext. 228 REPORTING INTERN DENIZ KORAY [email protected] | ext. 263 LABJ FORUM VISITING FELLOW HEEJIN PARK [email protected] | ext. 241 CHIEF EDITORIAL PHOTOGRAPHER Mayor Antonio Villaraigosa surprised L.A. business Do you think the city should RINGO H.W. CHIU leaders by backing the axing of the city’s gross receipts maintain, reduce or eliminate [email protected] | ext. 256 Time to RESEARCH DIRECTOR business tax. So the Business Journal asks: its business taxes? DAVID NUSBAUM [email protected] | ext. 236 Ax Tax? VICE PRESIDENT OF ADVERTISING JOSH SCHIMMELS [email protected] | ext. 218 ASSOCIATE SALES MANAGER SHARON ALTMAN JOSHUA AZRAN governments are strangling small businesses with DARRIN SENNOTT Partner Owner-Partner fees, fines and other hidden taxes, Los Angeles [email protected] | ext. 220 ADVERTISING ACCOUNT NSBN LLP Azran Financial should be applauded for considering a decidedly MANAGERS No way on keeping the sta- Los Angeles would be best served to eliminate pro-business long-term solution like eliminating the JESSICA ANNAS [email protected] | ext. 240 tus quo. The system is broken the business tax entirely. The format of the tax and city’s often-mystifying business tax. NAZ BAYAZIT and needs fixing. Since our the economic impact is contrary to the city’s cur- [email protected] | ext. 253 BILL MOIR city relies on this money, it rent need to become more business friendly. With MATT KLINK [email protected] | ext. 216 would not be reasonable to many alternative locales available to business own- President ROSZ MURRAY Cerrell Associates [email protected] | ext. 215 eliminate the tax. So, as a ers, it behooves the city of Los Angeles to become JIM SLATER CPA and business manager, I more cost competitive for businesses operating The city of Los Angeles needs a shot in the arm [email protected] | ext. 209 would suggest that they within the region. and getting rid of business taxes would help SPECIAL EVENTS/ reduce the rates and simplify tremendously. But why stop there? Let’s not only ADVERTISING COORDINATOR MARISSA DE LA CRUZ Altman the categories. H. JACOB LAGER end business taxes that make L.A. uncompetitive [email protected] | ext. 213 Partner with our neighbors, but let’s toss out a bunch of PRODUCTION ARTISTS KEN WALTZER Zuber & Taillieu LLP regulation, red tape and bureaucracy. SALLY FOSTER President At a time when cash-strapped state and local [email protected] | ext. 212 PATTY TSAI-CHU Kenfield Capital Strategies [email protected] | ext. 242 Reducing the tax to be on par with other cities CIRCULATION DIRECTOR MICHAEL LEVINE makes sense, as it evens the playing field and would [email protected] | ext. 247 encourage businesses to stay in or move to L.A., CUSTOMER SERVICE potentially increasing its business tax base and making LE MILLHAUSER [email protected] | ext. 245 up for the shortfall without increasing taxes elsewhere. ZAINABU BRYANT [email protected] | ext. 244 NEW BUSINESS DEVELOPMENT Los Angeles Business Journal Poll REPRESENTATIVE JEFF LYON Th City of Los Angeles is considering [email protected] | ext. 210 business tax reform. Your preference: CONTROLLER NANCY SCHWARTZ Reduce rates [email protected] | ext. 202 across the board 2% ACCOUNTS RECEIVABLE to keep them in Status SPECIALIST line with other quo. PATRICIA A. BENSON cities. [email protected] | ext. 231 ASSISTANTS TO THE PUBLISHER 49% BETH THERIAC [email protected] | ext. 249 PAUL KNEZEVIC [email protected] | ext. 203

RECEPTIONIST ERIN SCHAUER 49% [email protected] | ext. 270 Eliminate taxes.

CITY BUSINESS JOURNALS Online results for week ended July 27 NETWORK 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

AUGUST 1, 2011 COMMENTARY LOS ANGELES BUSINESS JOURNAL 37 Putting the Burden on Business New drive to revamp Proposition 13 to increase state tax revenue would stick consumers with higher bills.

By JOHN KABATECK

OV. Jerry Brown said recently that if he were unable to raise taxes through the budget, labor groups were likely G to propose a change to Proposition 13, California’s landmark property tax measure. Los Angeles Mayor Antonio Villaraigosa went even further, volunteering to lead the charge to increase property taxes. As the debate over Proposition 13 heats up, it is important to understand just how devastating dismantling it would be for Califor- nia’s small businesses. California already has the second highest unemployment rate in the nation at 11.8 percent, and in Los Angeles it’s 12 percent. The state is also ranked 49th in the country in tax burden and 50th in regulatory costs, causing businesses and families to flee the state. We are consistently ranked dead last as a place to do business, and it is critical for businesses to rely on consistent and fair property taxes. The majority of small businesses – doctors’ offices, family- owned restaurants and gas stations – rent their shops and office spaces. As property taxes increase by billions each year, these businesses will have to pay higher rent in addition to the other taxes they already pay on payroll, equipment, and income. Businesses will be forced to lay off employees, cut wages, increase the prices of their products and services, or simply go out of business. This is why all Californians should be concerned about a BLOOMBERG NEWS change to Proposition 13. The billions of dollars in increased Graphic: Gov. Jerry Brown discusses the California budget in Sacramento on May 16. taxes on small businesses will be passed on to consumers of products like food and gas, and on services from health care to auto repair. Another recent study found that women- and minority- to increase taxes on our small businesses, which President owned businesses operate on smaller margins than other Obama acknowledges are responsible for most of the new jobs Sting of higher taxes companies, so one could conclude that they will be dispro- in this country. Businesses should be encouraged to grow and Renters will feel the sting of higher property taxes, too. portionately affected by an increase of business property expand in California, not flee to states with more business- Senior citizens, students and others on fixed incomes will see taxes. friendly environments. their rental costs increase dramatically as taxes on apartment A recent study by our organization, the National Federation Small businesses in California have persevered through the buildings and rental homes rise. of Independent Business/California, found that nearly 80 per- recession by cutting back and living within their means. Sacra- According to the state’s nonpartisan legislative analyst, an cent of small-business owners are strongly opposed to proposals mento should do the same. increase in property taxes would raise taxes on Californians by that would tax business properties at a different rate than resi- billions each year. A recent study by a former legislative analyst dential properties. John Kabateck is executive director for the National Federation estimated that increasing property taxes on business by just 1 With California ranking near the top in tax burden and at the of Independent Business/California, which represents small and percent would lead to the loss of 43,000 jobs. bottom of nearly every economic indicator, now is not the time independent businesses.

Time to Apply the Brakes to L.A.’s Car Culture?

By CHAUNCEY SWALWELL cast, in its 2011 second quarter report, cited the housing and ones in a year or less? Did you notice the 405 was packed again, automobile sectors as “major culprits” and that “until consumers as usual, the week after the traffic nirvana that Carmageddon RITICS who dismiss the new transportation policies of start buying homes and cars, the recovery remains in the future.” proved to be? current or potential elected officials claim that Southern The same forecast noted a significant shift in demand for C California’s car culture never will change. They’re miss- residential construction, away from single-family housing (par- Rethinking mass transit ing the point. Shifts in housing, demographics, the economy ticularly in outlying areas) and toward condominiums and apart- This increasing density in housing appears a reality, so and fuel prices may be permanent, signaling a shift from subur- ments. This is not good news for areas like Riverside, where maybe it is time to take more seriously some of what in years bia to the city core now in progress, and slavish devotion to growth was spurred by folks who wanted a big house and were past were (and perhaps still are) viewed as pie-in-the-sky, ain’t- denying mass transit and supporting bigger highways to subur- willing to commute long distances. Less demand for housing in never-gonna-work-in-L.A. ideas on mass transportation: Mayor bia are as relevant as MySpace or the Pontiac Aztec. outlying areas means fewer construction jobs in those areas, if Antonio Villaraigosa’s support for the extension of the subway We survived Carmageddon in mid-July, but can we survive significant numbers of people (especially younger people) pre- system; the bus-only lanes being created on Wilshire Boule- spending billions more on highways? fer to live in an apartment or condo closer to work. vard; Anschutz Entertainment Group’s football stadium propos- Fewer cars traveling in and out of the city could mean a al and expressed desire to have it serviced by mass transit suffi- reduction in volume for freeways such as the 91, 14 and even cient to have a 100 percent walk-in Super Bowl; potential may- Whatever the solution, the time stretches of the 10, but what will this mean for those who live oral candidate and developer Rick Caruso’s musings about and work in already traffic-choked areas such as Mid-Wilshire, Grove-like (and Red Car reminiscent) trolleys. seems right to take advantage along Ventura Boulevard and the entire Westside? More apart- Obviously, each have pros and cons, and perhaps each is rela- of the shift in the housing culture ments and condominiums in those areas would mean even more tively easy to dismiss as too costly in these budget constrained to change the transportation culture people and more cars. times. Personally, I would rather see the mayor’s 30/10 funding of this city. That’s where the opportunity to look at things differently hit proposal used to fund construction not of subways, but rather ele- me, and I started looking at ideas I admittedly scoffed at for vated trains (a proposal at least once, and perhaps still, espoused years. Greater density of people living in multifamily housing, by Caruso), which seems far more cost effective and likely to seemingly the utopia of urban planners, might make mass-tran- succeed (although admittedly not a perfect solution either). It’s common to believe the mind-set that Los Angeles can’t sit options feasible in Los Angeles. Arguments as to why mass Whatever the solution, the time seems right to take advan- be changed. But the economic recovery, traffic and gas prices transit never will work here, and why Angelenos won’t surren- tage of the shift in the housing culture to change the transporta- signal a new era. A shift in housing demands in and around Los der their cars, revolve around the “fact” Los Angeles is too tion culture of this city. Traffic relief and job creation are the Angeles is a significant factor affecting those issues, and may spread out. But if people are shifting their tastes and demand for obvious benefits, and may help bring the much sought after eco- signal an opportunity to achieve solutions once thought unthink- housing so greater density is being created, a shift away from nomic recovery of this city closer to fruition. If Carmageddon able for a city entrenched in the car culture. our one-car, one-person approach can be encouraged. proved anything, it is that Angelenos can and will change their Economic reports and forecasts about the California econo- The continuing and historic focus on widening freeways, behavior with the right motivation. my published in recent weeks confirm what most people proba- such as the ongoing efforts on the San Diego (405) Freeway, is bly figured out for themselves – the recovery is happening much oft criticized by urban planners – does anyone really doubt Chauncey Swalwell is a partner who specializes in commercial more slowly than hoped (if at all). The UCLA Anderson Fore- those new lanes will be as choked with traffic as the current real estate at Stroock & Stroock & Lavan LLP in Century City. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

38 LOS ANGELES BUSINESS JOURNAL COMMENTARY AUGUST 1, 2011 Subway’s Tunnel Vision Transportation officials have been planning since the 1960s for a station at Constellation Boulevard. There are schools all By SUSAN BURSK over the country, including California, lot has been written by opponents of a proposed subway that have subway station at Constellation Boulevard. The subway stop in tunnels underneath A the Century City area is an important issue for the business community as well as all Angelenos, and warrants reporting them. The Bentley that is based on accurate data as opposed to hearsay and innuendo. School in Oakland has In fact, the proposal to build the station at Constellation and been around since Avenue of the Stars has been under consideration since the 1960s. This is not a “bait and switch,” which it has wrongfully 1920 and is directly been referred to by many. Beginning in the 1960s, the Southern over a Bay Area California Rapid Transit District planned the future of L.A.’s Rapid Transit tunnel; subway system and many routes were discussed. The Jan. 1, the West Portal 1968, minutes of a special board meeting of that district state Elementary School in the following from Frank Lombardi, executive officer of the Planning Department of the city of Los Angeles: San Francisco is also “On the Wilshire Corridor, specifically, this committee has over a BART tunnel recommended to the council, which they are now considering, and has been that the alignment is satisfactory as far as it goes, but we think it operating since 1951. should go beyond. We feel that the Wilshire Corridor Line should be extended west under Wilshire with stops at Robertson Boulevard, Beverly Drive, and then under Constellation Underground: Metropolitan Transportation Authority subway tunnel. Avenue in Century City, with a stop at Century City, and a return to Wilshire Boulevard. ...We feel the extension of that Wilshire Corridor to serve these areas is imperative.” Further, in the transit district’s final report in May 1968, it said this about “Wilshire Corridor – Route Description”: There are schools all over the country, including California, that access to jobs an explicit priority. … Metro leaders should coor- “Entering Young Street at about Lasky Drive the line pro- have subway tunnels underneath them. The Bentley School in Oak- dinate strategies regarding land use, economic development and ceeds westerly in subway to Moreno Drive where it enters and land has been around since 1920 and is directly over a Bay Area housing with transit decisions in order to ensure that transit proceeds under the property of the Beverly Hills High School to Rapid Transit tunnel; the West Portal Elementary School in San reached more people and more jobs efficiently.” a position in Constellation Avenue at Century Park East. The Francisco is also over a BART tunnel and has been operating since According to recent surveys, a station at Constellation and alignment follows Constellation Avenue to the westerly limit of 1951 (again, BART was built sometime later). Locally, at Wilshire Avenue of the Stars currently would encompass more than 11 Century City at Century Park West.” and Vermont Avenue, a station goes under the grounds of a middle million square feet of existing commercial space and approxi- Also in 1968, two line-drawing civil maps show the alignment school and no vibrations or any other issues have been reported. mately 28,000 employees within one-quarter mile. This location under Beverly Hills High school en route to Century City at Con- There are buildings all over the world with subterranean park- is also closer to the southern portion of Century City’s residen- stellation. Official documentation is available for all of these points. ing structures built over subway tunnels. The Broad Museum in tial community as well as Fox studios. There has been discussion back and forth as to the best downtown Los Angeles is being built and calls for a three-level A station at Santa Monica and Century Park East encom- alignment for the Westside subway for decades, whether it be underground parking structure over a proposed Metro tunnel at passes a little more than 4 million square feet and approximate- Santa Monica Boulevard or Constellation. Traffic has choked Grand Avenue and Second Street, as well as the station at Hope ly 9,800 employees within a one-quarter mile. This location is our highways and streets to a point that the time has finally Street and Second. There is a proposed commercial development anchored on one side by the Los Angeles Country Club, which come to move forward with these plans (that have been on the at the Universal City Metro Station with similar conditions. would produce no ridership. books for more than 40 years), and the realization that funding Nabih Youssef, a structural engineer involved with these Without question, safety is key, no matter where we put a could finally be attained from local Measure R and federal New projects, states, “There are several other tunnels and Metro sta- subway. We have one opportunity to get this right, and I suggest Starts funds. The Metropolitan Transportation Authority (which tions currently in design with appropriate measures to allow for we stick to the facts and keep emotions under control. Let’s stay took over the SCRTD) can finally move forward with making future development above without compromise of structural on track and work together to find solutions that address legiti- this vision a reality. Metro is doing extensive testing and geo- performance or vibration concerns.” mate concerns, but let’s not stop “America’s Fast Forward.” logical field work on Santa Monica and Constellation to deter- People take transit for any number of reasons. But one of the mine the safest route, as well as looking at both locations to most common is to get to work. According to a report from the Susan Bursk is president and chief executive of the Century City ascertain which site would attract the greatest ridership. Brookings Institute, “Transportation leaders should make Chamber of Commerce.

LETTERS

‘Waste the store’s time’ competitor, a compassionate and wise teacher of life, an impres- ed and enhanced by Russian leaders, some people still have an Re: The Comment column in the July 18 issue headlined sive role model for young and old, a focused and sensible diplo- opinion that you can’t do anything without connections, which is “Clicked Off Over Internet Taxes”: mat, and the best example of what an Iowa farm boy can not the case today. It is important, as it is in all developed markets, achieve when his career is nurtured by influential and powerful to have the right anchor partner(s). I certainly believe that first of The technology afforded companies like Amazon, which cities like Los Angeles and Washington. all you should have a great product – one that will appeal to the easily handles millions of transactions, could certainly set up its I was privileged to handle some of his public relations in his Russian population and visitors from around the world, and the systems to handle 8,000 different sales tax districts. early years as a lawyer, president of the California Bankers ability to deliver and execute a vision for the future. Another thing not mentioned is the consumer going to a Association and chair of First L.A. Bank. The real value of Magic World Russia is the merit of the brick-and-mortar store to learn about a product, which they Chuck sensed how to effectively blend rural Midwestern project. Everyone involved with Magic World Russia is com- can’t do with Amazon or other Internet sellers, and waste the roots with the resolve and sophistication of the urban center so mitted to creating a magical experience for kids and their fami- store’s time. It also costs the owner dearly who has to train peo- as to serve well the politics and country he loved and admired. lies as well as a unique world-class resort, which is why we ple to know the product. I have a small retail business and this As a Republican, I was greatly impacted by the commit- have successfully presented the project to the Russian business happens often. It isn’t illegal but it certainly is immoral. ment, energy, perseverance, personality, skill, substance and community and government agencies. It is truly a gift for the I realize everyone looks for bargains but most jobs in this vision of this formidable Democrat. As a human being, I was children of Russia, but also a gift that the world will be able to country are in small businesses, and Los Angeles makes it espe- reminded through Chuck of the widespread difference one indi- share with them. cially hard for the small business with all the regulations and taxes. vidual can truly make. The bottom line is the online seller wants to retain the price Gennady “Gene” Moshkovich advantage by not having to collect sales tax and the cost that Carl R. Terzian Beverly Hills goes with the collection. Los Angeles

Marvin Rosenfield • • • Canoga Park ‘Merit of the project’ Re: The article in the July 18 issue headlined “Building an L.A. How to reach us • • • Team for Russian Thrill Rides”: ‘Treasured friend’ Please keep your letters less than 150 words. Include your I was saddened to learn about the recent passing of Chuck While I appreciate Jonathan Polakoff’s story about our project, name, address and daytime phone number on all submis- Manatt. Magic World Russia, his story leads readers to think that our “con- sions. We reserve the right to edit letters for brevity and I knew and respected him as a treasured friend, a caring hus- nections” are the most important thing. Despite the extraordinary taste. E-mail: [email protected] band and father, an awesome California and national political improvements in investment opportunities that are greatly support- 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

AUGUST 1, 2011 INDEX LOS ANGELES BUSINESS JOURNAL 39

‘We’re constantly ‘The real question ‘I have about six getting each is how much of ideas that I’d like other’s e-mails.’ the city we can to do, but no time.’ MARGARET GRIGNON, turn into a farm.’ ADAM MILLER, Reed Smith LLP, JESSE DUBOIS, Cornerstone on working with Farmscape LLC, OnDemand Inc., daughter Anne Grignon, PAGE 15 on writing another book, PAGE 3 PAGE 16

PEOPLE Danhakl, John ...... 1/33 Grignon, Marissa ...... 3 Marks, Howard ...... 1/33 S Davis, Alison ...... 12 McCarthy, Brian ...... 1/33 Schatz, Carol ...... 1/32 H A Deer, Aaron James ...... 8 McNairn, Denise ...... 14 Hannah, David ...... 8 Schiedel, Jim ...... 3 Allen, Dan ...... 15 Drexler, Millard Mickey ...... 1/33 Merrill, Douglas ...... 5/32 Hayes, Timothy ...... 8 Schlein, Steven ...... 5/32 Altman, Sharon ...... 36 DuBois, Jesse ...... 15 Meruelo, Richard ...... 14 Dworsky, Dave ...... 14 Huber, Dennis ...... 12 Azran, Joshua ...... 36 Meza, Alejandro ...... 4 Sokoloff, Jonathan ...... 1/33 Miller, Adam ...... 16/18 Soon-Shiong, Patrick ...... 7 E K B Moshkovich, Gennedy Gene ...... 38 Eisenberg, Elyse ...... 1/32 Kabateck, John ...... 37 Steadman, Todd ...... 1/32 Balicka, Julianna ...... 8 Engdahl, Thomas ...... 6 Karatz, Bruce ...... 1/32 Storms, Joan ...... 1/33 Barket, Sol ...... 1/32 N Engert, Herb ...... 12 Karatz, Lindsey ...... 1/32 Nakayama, Niki ...... 15 Surls, Rachel ...... 15 Bernstein, Alan ...... 1/32 Karatz, Matt ...... 1/32, 36 Nazarian, David ...... 3 Swalwell, Chauncey ...... 37 Beutner, Austin ...... 1/32, 14 F Katz, Nurit ...... 15 Nazarian, Sam ...... 3 Blackwell, Jason ...... 6 Fleischman, Adam ...... 3 Kelley, James ...... 12 Swenson, Charles ...... 36 Brown, Jerry ...... 37 Francis, Wade ...... 8 Kim, Ken ...... 1/33 Noguez, John ...... 14 Bursk, Susan ...... 38 Klink, Matt ...... 36 Nolan, Peter ...... 1/33 T G Koo, Benjamin ...... 1/33 Tellenbach, John ...... 12 C Garcetti, Eric ...... 36 Kriegsman, Steve ...... 5 O Caruso, Rick ...... 1/32, 37 Ghauri, Najeeb ...... 10 Obama, Barack ...... 37 Terzian, Carl R...... 38 Castillo, Eduardo ...... 4 Gillard, Joseph ...... 3 L Tristano, Darren ...... 3 Caverly, Matt ...... 14 Gold, David ...... 1/33 Lager, H. Jacob ...... 36 P Chan, Michele ...... 7 Goldsmith, Russell ...... 8 Lelyveld, Philip ...... 6 Paek, Mike ...... 1/33 V Peirce, Robert ...... 7 Cheney, Bill ...... 12 Godbout, Yanick ...... 3 Leonard, Paul ...... 5/32 Villaraigosa, Antonio . . . . .1/32, 14, 36, 37 Cleary, Jerome ...... 1/32 Graves, Merritt ...... 15 Lustgartern, Andy ...... 26 Green, Amanda ...... 15 R W D Greif, Lloyd ...... 1/33 M Riberi, David ...... 26 Dalmau, Gilbert ...... 12 Grignon, Anne ...... 3 Mack, John ...... 1/33 Rosenfield, Marvin ...... 38 Waltzer, Ken ...... 36 Danenberg, Kathleen ...... 14 Grignon, Margaret ...... 3 Manatt, Chuck ...... 38 Ross, Brian ...... 1/32 Wu, George ...... 12

COMPANIES, Chan Soon-Shiong I National Federation of Sunset Strip Business Association . . . .1/32 ASSOCIATIONS, ETC. Institute for Advanced Health ...... 7 Imperial Capital LLC ...... 1/33 Independent Business/California . . . . .37 Cirque Du Soleil ...... 3 Internal Revenue Service ...... 1/33 National LambdaRail Inc...... 7 T iSuppli ...... 6 1 - 9 City National Corp...... 8 Nazarian Enterprises ...... 3 Targeted Medical Pharma Inc...... 12 99 Cents Only Stores Inc...... 1/33 City National Corp...... 12 NetSol Technologies Inc...... 10 Technomic Inc...... 3 City of Los Angeles ...... 14 J Nimes Capital LLC ...... 3 TMAC Mortgage Co...... 12 Jacobs Engineering Group Inc...... 14 A Comcast ...... 6 Northeast Valley Health Corp...... 4 Tower Records ...... 1/32 ABI Research ...... 6 Comerica Bank ...... 12 Northrop Grumman Corp...... 14 K TPG Capital ...... 1/33 Abraxis BioScience Inc...... 7 Community Financial Services Novation ...... 4 KB Home ...... 1/32 Trilogy Studios ...... 4 Advanced Digital Services Inc...... 6 Association of America ...... 5/32 NSBN LLP ...... 36 Kearny Real Estate Co...... 26 Air Lease Corp...... 12 Cornerstone OnDemand Inc...... 16/18 Keefe Bruyette & Woods Inc...... 8 U Amazon.com Inc...... 38 County of Los Angeles ...... 14 O Kenfield Capital Strategies ...... 36 Umami Restaurant Group ...... 3 American Cinematheque ...... 3 Cuningham Group Architecture ...... 3 Oaktree Capital Management LP . . . . .1/33 Korean American Certified Unicon Financial Services Inc...... 8 Anschutz Entertainment CytRx ...... 5 Occidental Petroleum Corp...... 14 Public Accountants Society University of California Group Inc...... 14, 37 of Southern California ...... 1/33 D P Cooperative Extension ...... 15 APP Pharmaceuticals Inc...... 7 Korean American Davenport & Co. LLC ...... 8 Pattern Bar ...... 4 University of California Los Angeles . . . .15 Avery Dennison Corp...... 14 Society of Enrolled Agents ...... 1/33 Azran Financial ...... 36 DirecTV ...... 6 Pitzer College ...... 1/32 USC Entertainment Technology Center . . . .6 Platinum Equity LLC ...... 1/33 UTV Software Communications Ltd. . . . .14 DreamWorks Animation SKG Inc...... 14 L Precision Dynamics Corp...... 4 B Dworsky Cos...... 14 Leonard Green & Partners LP ...... 1/33 Preferred Bank ...... 8 V Big 5 Sporting Goods Corp...... 1/33 Dynamic Digital Depth ...... 6 Lion Real Estate Group ...... 26 BJ's Wholesale Club Inc...... 1/33 Los Angeles Department Valley Industry and R Boingo Wireless Inc...... 12 E of Building and Safety ...... 1/32 Commerce Association ...... 36 Reed Smith LLP ...... 3 Brickman Group ...... 14 Ernst & Young LLP ...... 12 Los Angeles Department VCA Antech Inc...... 1/33 Reliance Steel and Aluminum Co...... 8 of Water & Power ...... 1/32 Response Genetics Inc...... 14 C F Lucky Brand ...... 1/32 W California Board of Accountancy . . . . .1/33 Farmscape LLC ...... 15 Rodeo Realty ...... 4 Walt Disney Co...... 4, 14 California Credit Union League ...... 12 First California Financial Group Inc. . . . .12 M Warner Bros. Studios ...... 4 Carlyle Group ...... 12 S Magic World Russia ...... 38 Wedbush Securities Inc...... 1/33 Caruso Affiliated Holdings ...... 1/32 G San Jose-Edison Academy ...... 15 Mani Bros. Real Estate Group ...... 26 Wesco Aircraft Holdings Inc...... 12 CB Richard Ellis Group Inc...... 14 GameFly Inc...... 12 Martin Luther King Jr./Drew Sandler O'Neill & Partners ...... 8 West Hollywood Heights CCS California ...... 26 Gensler ...... 1/32 Medical Center ...... 7 SBE Entertainment Group LLC ...... 3 Neighborhood Association ...... 1/32 Celegene Corp...... 7 Goldenvoice ...... 3 Meruelo Maddux Properties Inc...... 14 SCE Federal Credit Union ...... 12 Center Financial Corp...... 8 Google Inc...... 5/32 Milbank Real Estate Services Inc...... 26 Senation Mode ...... 3 Wilshire Bancorp Inc...... 8 Center for Responsible Lending ...... 5/32 Greif & Co...... 1/33 Mission Foods Corp...... 1/32 Skadden Arps Slate Central City Association ...... 1/32 GRP Partners ...... 5/32 Meagher & Flom LLP ...... 1/33 Y Centrum Properties Inc...... 1/32 N Skechers USA Inc...... 14 Yard House ...... 4 Century City Chamber H N/naka Restaurant ...... 15 SolarReserve LLC ...... 3 of Commerce ...... 38 Hanmi Financial Corp...... 8 Napa Valley Grille ...... 3 Sonepco Federal Credit Union ...... 12 Z Ceres Inc...... 12 Homeboy Industries ...... 1/32 Nara Bancorp Inc...... 8 Stroock & Stroock & Lavan LLP ...... 37 ZestCash Inc...... 5/32 Cerrell Associates ...... 36 Hotel Amarano ...... 4 National Credit Union Administration . . . .12 Studley Inc...... 26 Zuber & Taillieu LLP ...... 36

These indexes list the people, businesses, associations, organizations, schools, etc., that are named in this week's issue. The numbers refer to the page on which the name is found. Numbers with slashes refer to pages on which lengthier articles are located that contain the name. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

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4 TABLE OF CONTENT: Touch table of content teaser will jump directly to the page of the story. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

DIGITAL EDITION USERS GUIDE | NAVIGATION TOOLBAR Los Angeles Business Journal digital edition provides links to navigate through pages and articles easily whether you are on your mobile device such as iPad and computer. With a the touch of your ﬁ ngertips on the headlines, the digital edition will directly link you to the website where the article is placed and can be forwarded through email or copied and pasted on documents of choice.

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5 NAVIGATION TOOLBAR: Touch navigation button to go to speciﬁ c page indicated. iPad Only 'Thumbnails, LABJ User Guide, Front Page and Table of Contents will appear on iPad. Computer The entire navigation toolbar for computers will appear for expanded navigation options. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

DIGITAL EDITION USERS GUIDE | DOWNLOAD INSTRUCTION FOR PC/MAC Los Angeles Business Journal digital edition provides links to navigate through pages and articles easily whether you are on your mobile device such as iPad and computer. With a the touch of your ﬁngertips on the headlines, the digital edition will directly link you to the website where the article is placed and can be forwarded through email or copied and pasted on documents of choice.

We recommend you read the very brief CBJ Digital Edition User Guide which you can download right now at:

http://www.cbjonline.com/a3sdbj/resources/Digital-Edition-InstructionsONLINE.pdf

The User Guide will help you get the most out of the many enhancements incorporated into the Digital Edition.

To read the Digital Edition on either your PC/MAC please follow the instructions below;

To Download: 1. Click on the below listed URL: www.labj.com/digital 2. Click on the edition you wish to download (the editions for each paper are represented by an icon which appears on the Web page you access with the browser). 3. Wait as the selected edition is downloaded into your browser. Download progress will vary from different browsers. 4. The downloaded edition will appear in your browser

Reading Instructions (start here if you have already downloaded the Digital Edition into your browser)

1. Save the Los Angeles Business Journal Digital Edition in an easily accessible folder on your computer. We suggest creating a Digital Edition folder in your Documents Folder where you can save each issue of the Digital Edition. 2. Go do the folder with the Digital Edition, locate the Digital Edition icon and the Digital Edition will open in Adobe Reader. If you don’t have a copy of Adobe Reader on your computer, go to www.labj.com/digital and download a free copy of Adobe Reader. 3. As the Digital Edition opens inside Adobe Reader you will be asked to allow the Digital Edition to open in the full screen mode. 4. You will note a series of buttons across the top of the page of the Digital Editions. The buttons provide the following commands:

Previous Page, 2-Page Spread, 1-Page View, Thumbnails, User Guide, Front Page, Table of Contents, Zoom-in, Zoom-out, Next Page

There are addition links embedded in the Digital Edition (and described in the User Guide) which are intended to enhance your reading experience.

Note: the Digital Edition can also be read on Android, Apple, Blackberry and Windows smart phones and on Kindle and Nook digital reading devices. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Content Previous Page Zoom In Zoom Out Next Page

DIGITAL EDITION USERS GUIDE | DOWNLOAD INSTRUCTION FOR iPAD Los Angeles Business Journal digital edition provides links to navigate through pages and articles easily whether you are on your mobile device such as iPad and computer. With a the touch of your ﬁngertips on the headlines, the digital edition will directly link you to the website where the article is placed and can be forwarded through email or copied and pasted on documents of choice.

We recommend you read the very brief CBJ Digital Edition User Guide which you can download right now at:

http://www.cbjonline.com/a3sdbj/resources/Digital-Edition-InstructionsONLINE.pdf

The User Guide will help you get the most out of the many enhancements incorporated into the Digital Edition.

To read the Digital Edition on either your iPad please follow the instructions below;

To Download: 1. Click on the below listed URL: www.labj.com/digital 2. Click on the edition you wish to download (the editions for each paper are represented by an icon which appears on the Web page you access with the browser). 3. Wait as the selected edition is downloaded into your browser. Download progress is marked by a blue thermometer indicator in the URL bar of the browser. 4. The downloaded edition will appear in your browser

Reading Instructions (start here if you have already downloaded the Digital Edition into your browser) 1. To read the Digital Edition you must move the Edition from your browser to a digital reader. 2. Move the downloaded edition into the iBooks digital reader (iBooks is a standard app delivered on all iPads. The app is available free on in the Apple app store should you need to download a copy of the app) by tapping in the center of the page until you see the "open in" button appear in the upper right-hand corner of the page. 3. Tap on the "open in" button. A list of apps will appear. Select iBooks. After a delay of a few moments, the digital edition will appear on a bookshelf in the iBooks app. 4. Tap on the image of the digital edition shown on the bookshelf and the edition will open in iBooks. 5. Use the tools at the top of each page of the digital edition in combination with the built in tools in iBooks to read and navigate the edition. 6. You will note a series of buttons across the top of the page of the Digital Editions. The buttons provide the following commands:

Thumbnails, User Guide, Front Page, Table of Contents

7. Enjoy reading your weekly digital edition of the Los Angeles Business Journal 8. Please give us feedback by sending me an email at: [email protected]

Note: the Digital Edition can also be read on Android, Apple, Blackberry and Windows smart phones and on Kindle and Nook digital reading devices.