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MAIL T O: BUSINESS JOURNAL • PAGE 2 December 2012 December 2012 BUSINESS JOURNAL • PAGE 3
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AT DEADLINE Special Future of Sections Real Estate Pitfalls that Health Insurance California Amends Statutory Market Derail Outlook Corporate Exchanges Requirements for Employee Decision Making Ron Goldstein, president Personnel Files Pg. 25 Pg. 18 and chief executive officer of On Jan. 1, 2013, an amendment (AB 2674) to California Labor CHOICE Administrators, joined Code § 1198.5 goes into effect, changing California’s statutory Bary Freet Named with fellow executives from requirements in regards to employee personnel file records. These five of the state’s leading health changes are as follows: Newest Member plans to discuss the future of Tramway Authority healthcare in California at a spe- Who May Request to Inspect and/or Obtain Copies of Bary Freet has been appoint- cial forum recently hosted by Personnel Records ed to the Mount San Jacinto the Inland Empire Association Current law does not explicitly provide for inspection of person- Winter Park Authority by the of Health Underwriters nel files by former employees. With this amendment, current and for- Riverside County Board of (IEAHU). Sharing the panel mer employees, as well an employee’s representative, have the right Supervisors. Freet retired from with Goldstein were representa- to inspect and receive a copy of their personnel records. A represen- the Palm Springs Fire tives from Aetna, Anthem, tative is someone authorized by the employee in writing (e.g., a Department in 2004 and has CIGNA, Health Net and Kaiser lawyer or translator) to inspect or obtain a copy of their personnel since served as the executive Permanente. records. The amended statute limits the employer’s duty to respond director of the Weil Institute of Focusing his remarks on one to no more than 50 requests from a representative in a calendar Critical Care Medicine. of the most significant changes month, which protects an employer from being overburdened by a “I’m looking forward to being brought about by the representative making requests on behalf of many employees. working with Bary again, as we Patient Protection and Employers only have to respond to one request per year by a former did when I was with the City of Affordable Care Act (PPACA), employee. Palm Springs,” stated Rob Goldstein told the audience that In addition, employers may take reasonable steps to verify the Parkins, general manager of the health insurance exchanges pro- identity of the current/former employee or representative. Palm Springs Aerial Tramway. vide new opportunities for bro- Special Form Supervisor John Benoit, kers and health insurance agents As a new requirement, employers must provide a request form for who appointed Freet stated, to grow their business. inspection or copies of personnel records upon a verbal request from “Bary has valuable experience “Employers and individuals are the employee or a representative, and may designate a person to in public safety, fire safety and looking for a vehicle that pro- whom personnel records requests should be made. natural resources management. vides affordable health insur- Complying with a Request for Inspection and/or Copies of His skills and demonstrated ance that meets their needs Personnel Records commitment to serving the pub- while providing choice and Currently the law requires the employer to provide copies only of lic make him an asset to the affordability, and for many what employees had signed; under the new law, if an employee Tram Board.” The seven-mem- health insurance exchanges will requests a copy of his or her personnel file, employers must provide ber Mount San Jacinto Winter be the answer,” he said. a copy, subject to charges for the actual cost of reproduction. Park Authority, a public agency Goldstein said that while The amendment specifically defines the time period for providing exchanges may be sold directly and public corporation of the access to personnel files. Employers continued on page 5 to the consumer, the critical role State of California, is the gov- of brokers has been acknowl- There is no time more fitting to say erning body of Palm Springs edged by the state; and the bro- Aerial Tramway. ker’s expertise and knowledge thank you and to wish you a Two members of the will be more important than happy holiday season and a new year of Authority are appointed by the ever in this environment. good health, happiness and prosperity. Palm Springs City Council, two “Brokers are best equipped to by the Riverside County Board provide the information and Bill the publisher guy. of Supervisors and three by the unbiased recommendations Ingrid the managing editor gal. California Governor. They serve employers need to make well- Jon the graphics’ guy. without compensation for a continued on page 44 Eileen, Mitch, Terrell, Brian, Camille and the entire team. four-year term. BUSINESS JOURNAL • PAGE 4 December 2012 INDEX News and Features Columns
The End of Marketing As We Know It A number of Marketing...... 7, 18 & 19 studies are showing that people no longer pay much attention to traditional marketing as they progress Investments and Finance...... 8 through the “buyer’s decision journey” says Bill Lee. . . 7 Asset Protection in Business...... 9 E-Commerce Business Stand to Lose More The Web and Design...... 10 Without Asset Protection Find out what differentiates commerce businesses from traditional Opinion...... 10 & 17 businesses when it comes to asset protection...... 9 Financial Column...... 12 Duct Tape My Software and Hope for the Best? A redesign of a website is simply a repackaging. There Real Estate Notes...... 13 can be only a handful of reasons to even entertain the thought of it—and Joe Thomas gives us a handful of New Business...... 16 some of these reasons...... 10 The Lists: No Money, No Problem: Eleven Tips for a Start-up Business With Very Little Cash (and a Great Idea) Business Brokerage Firms Serving the Inland Empire . . . 25 You have a new start-up and got a winning idea, but you have one problem—lack of funding. Michael Restaurant Review...... 34 Houlihan gives us some bootstrapping strategies that worked for him...... 16 Manager’s Bookshelf...... 36
Ways to Manage High and Low Performers As a New Business Lists: manager, CEO or business owner, how do you identify the employees you should focus on, and how can you County of San Bernardino...... 40 make the most of your lower performers? Dr. Marty Martin gives us some good lessons in helping County of Riverside...... 41 acceptable performers move into the ranks of high performers...... 18 Executive Time Out...... 43
Vol. 24, No. 12, December 2012 — Inland Empire Business Journal is published monthly by Daily Planet Communications, Inc., 1801 Excise Street, Suite 111, Ontario, CA 19761. (909) 605-8800. Bulk rate U.S. postage paid, Ontario, CA, permit No. 1. Send address changes to: Inland Empire Business Journal, P.O. Box 1979, Rancho Cucamonga, CA 91729. Information in the Inland Empire Business Journal is deemed to be reliable, but the accuracy of this information cannot be guaranteed. The management of the Inland Empire Business Journal does not promote or encour- age the use of any product or service advertised herein for any purpose, or for the purpose or sale of any security. “Inland Empire Business Journal” trademark registered in the U.S. Patent Office 1988 by Daily Planet Communications, Inc. All rights reserved. Manuscripts or artwork submit- PUBLISHED BY BOARD CHAIRMAN ted to the Inland Empire Business Journal for publication should be accompanied by self- Daily Planet Communications, Inc. William Anthony addressed, return envelope with correct postage. The publisher assumes no responsibility for their return. Opinions expressed in commentaries are those of the author, and not necessarily those of MANAGING EDITOR ACCOUNT EXECUTIVE the Inland Empire Business Journal. Subscription payment must accompany all orders for the Ingrid Anthony Mitch Huffman monthly journal or annual Book of Lists. Copyright 2012 Daily Planet Communications, Inc. CORRESPONDENTS AND COLUMNISTS Bill Lee Dr. Marty Martin Orlando Acevedo Ingrid Anthony Quotations on Time Dr. Alfred J. Gobar Henry Holtzman Oliver Chi William Cortus The more sand has escaped from the hour glass of our life, the clearer Michael Houlihan Tracy Foster Joe Thomas Barry LePatner we should see through it. Hillel Presser Michael Menard Bill Anthony Mike Morrell Jean Paul J. Allen Leinberger Russ Swansen Ashley Bennett Tim Donnelly
The man who wastes to-day lamenting yesterday will waste to-morrow STAFF lamenting to-day. Travel Editor: Camille Bounds Art Director: Jonathan Serafin Consultant: Mel Pervais Sales: Mitch Huffman Philip M. Raskin
God never imposes a duty without giving time to do it. CONTACT US John Ruskin William J. Anthony Publisher & Producer [email protected] Ingrid Anthony Managing Editor [email protected] Take all the swift advantage of the hours. Jonathan Serafin Art Director [email protected] William Shakespeare December 2012 BUSINESS JOURNAL • PAGE 5
$750, in addition to injunctive nel records under this section records; (3) Premium wage rates California... relief and attorneys’ fees. ceases during the lawsuit, and for all overtime hours worked; continued from pg. 3 Further, violation of this sec- the employee must proceed (4) A regular rate of pay of not must make the records available tion is an infraction. through regular litigation chan- less than 30 percent more than for inspection or provide copies Exceptions to the nels to obtain the file. the state minimum wage rate.” within a reasonable time not to Production of Personnel Also, the amended law does Significance for exceed 30 calendar days from Records not apply to employees subject Employers the date of a written request. A If a current/former employ- to a valid collective bargaining Employers should educate mutual agreement for an exten- ee sues the employer in a law- agreement that expressly pro- management personnel regard- sion cannot exceed five extra suit related to a personnel mat- vides for all of the following ing these new requirements, pre- calendar days. Employers may ter, defined as a matter where “(1) The wages, hours of work, pare a written form for employ- redact the names of non-super- the employee’s personnel and working conditions of ees who make verbal inspec- visory employees from person- records “are relevant to the law- employees; (2) A tion/copy requests, and desig- nel records that are produced or suit,” the right of the employee procedure for the inspection nate an individual to respond to copied. to inspect/get copies of person- and copying of personnel continued on page 39 For current employees, employers must make the records available for inspection where the employee reports to work, or another mutually agreeable location. For current employees, if the employee is required to inspect/receive a copy of the files at a different location from where the employee reports to work, the employer may not deduct from pay for work time lost in travel- ing to review the file. For former employees, the employer must make the records available where the employer stores the records, or another mutually agreeable location, as agreed upon in writing. A for- mer employee may receive a mailed copy of the records if they reimburse the employer for the actual postal expenses. In the case of a former employee who is terminated for a violation of the law, harassment or work- place violence, under the new law, the employer may desig- nate a location for inspection other than the workplace, pro- vided the place is within a rea- sonable driving distance from the former employee’s home. Alternatively, the former employer may mail a copy of the records to the terminated employee. Retention of Personnel Records In contrast to current law, the amended statute requires that an employer retain person- nel files for at least three years after an employee’s termination. Penalties for Employers Violation of the statute car- ries a per violation penalty of BUSINESS JOURNAL • PAGE 6 December 2012 High Desert Report - A Quarterly Economic Overview City of Victorville – Fall 2012 By Tracy Foster, Management Technician As the largest city in the Walmart shopping center off of designed entrances and décor. new site will be open just in High Desert, Victorville is lead- Bear Valley Road and Interstate The mall is also expanding, time for the busy holiday sea- ing the way towards a strong -15. with construction taking place son. Victorville residents are economic recovery for the The largest retail develop- on two of its anchor locations. very excited about Macy’s plans region. Victorville’s population ment is the transformation tak- JCPenney’s is completing con- for its first store in the High of 113,000 continues to grow ing place at the Mall of Victor struction on its new 100,000- Desert. Macy’s will open a and diversify faster than the Valley. The mall itself is getting square-feet location that dou- 103,000-square-foot anchor at national average. To keep up a makeover, with newly bles its current size. JCPenney’s continued on page 37 with that growth, several com- panies have located or expand- ed in Victorville in the past year. These signs point to a strength- ening economy, with forecasts of more development in retail, industrial, and even housing in the coming year.
Industrial Industrial development has been key to job growth through- out Victorville over the past decade. This year, companies such as United Furniture Industries and M&M/Mars have brought in over 150 jobs to the region. M & M/Mars relocated from their existing Victorville location to a larger and more modern facility at Southern California Logistics Airport (SCLA). Their former site was not vacant for long as it became a perfect location for Church & Dwight, the parent company of Arm & Hammer. Church & Dwight opened operations in July, manufacturing Arm & Hammer liquid laundry deter- gent, XTRA laundry detergent, and Arm & Hammer clumping cat litter onsite.
Retail Retail has seen a resurgence in 2012 with activity taking place throughout the city. In September, a brand new 193,000-square-foot Walmart store opened to much fanfare and excitement. The new store is located just off Interstate – 15 and will provide a multitude of products, including a vast array of produce, meats, and other grocery products. Panera Bread began construction on a new restaurant in September, which will be located within the new December 2012 BUSINESS JOURNAL • PAGE 7 MARKETINGMARKETING The End of Marketing As We Know It A number of signs point to an inconvenient truth for many businesses: Traditional marketing is on its way out. In place of this broken model, America’s most innovative companies are implementing new, more authentic techniques based on peer influence and community building. Bill Lee explains how you can join them.
Consider for a moment the growth, and lack the ability to chase a lawnmower, a haircut, a eign countries where they don’t annoying, interruptive, often explain how their programs will good dining experience, a speak the language or under- obnoxious nature of traditional lead to increased business. movie, a car, the services of a stand the culture. The firm will marketing. Dinnertime phone Nearly four in five CEOs com- good assistant, or a good doc- engage with local software calls from strangers in noisy call plained that CMOs can’t explain tor? Do they pick up the phone users—whom they call MVPs centers. Glossy pictures of the how brand equity can be linked and call a salesperson, or read (Most Valuable Professionals)— latest fashions worn by models to recognized financial meas- through a bunch of business many of whom have built sub- who barely look human. ures such as firm equity. websites? No, they’re much stantial followings of their own Crowded store shelves with A bitter pill for mainstream more likely to talk to neighbors, through blogging and their head-spinning arrays of options marketing executives, perhaps, friends, colleagues at work, and social networks. arranged in no discernable order but Lee says you can hardly others in their peer networks and “One is known as ‘Mr. (“I just need some toothpaste!”). blame the disgruntled CEOs ask what they’ve used. Excel’ to his followers, and on Company websites that give us when you consider the logic “Marc Benioff understood some days his website gets more no clue what the business actu- behind traditional marketing in this when he was building visits than Microsoft’s own ally does. Hype. Spin. Pushy light of today’s world. Salesforce.com to compete Excel page on its corporate web- salespeople. “Think about it: Companies against much bigger, entrenched site,” says Lee. “Many compa- It’s hard to believe these are hire people who come from out- competitors,” says Lee. “He was nies, when faced with the same the methods and tools of a pro- side the buyer’s world and don’t building a better enterprise soft- situation, threaten lawsuits. fession designed to attract and share his interests—employees, ware product, and to get the Microsoft embraced Mr. Excel. persuade us to become cus- agencies, consultants, and the word out, he organized ‘City In fact, they support his activi- tomers, says Bill Lee—especial- like—and expect them to per- Tour’ events and neighborhood ties with ‘insider knowledge’ ly when “we the buyers” suade buyers to hand over their ‘street teams.’ The City Tour and the opportunity to get a increasingly ignore them. money,” says Lee. “Yeah, right! events would bring his cus- sneak preview and to test new “A number of studies are There is no respected research tomers together with prospects releases. In return, Mr. Excel, showing that people no longer on group behavior suggesting and a few other interesting peo- and thousands of other pay much attention to traditional that such an approach is con- ple for presentations and group Microsoft MVPs, wind up pro- marketing as they progress ducive to influencing people to discussion. viding invaluable input as the through the ‘buyer’s decision take action or change.” “Benioff found that buyers firm develops new releases, and journey,’” says Lee, author of Of course, not everyone in were much less interested in produce its most effective mar- “The Hidden Wealth of the marketing world clings to hearing from him than they were keting communications, as buy- Customers: Realizing the worn-out methods, says Lee. In in talking to his customers— ers realize that it comes from a Untapped Value of Your Most fact, he works with a pioneering their peers, other software pro- peer they know and trust. Important Asset.” “Instead, buy- group of C-level and forward- grammers like themselves,” he “In such ways, the MVPs ers are checking out product and thinking marketing executives adds. “When he studied the are helping Microsoft penetrate service information in their own who are successfully replacing numbers, Benioff found that 80 and grow markets more effec- way, often through the Internet, this increasingly dated model percent of the prospects who tively and cost affordably than their social network, or just with something that customers attended such events wound up the corporation could do using plain word-of-mouth or cus- actually welcome and respond becoming customers them- traditional marketing approach- tomer reviews. It seems clear to. For those who’d like to join selves—in effect, an 80 percent es staffed by hired outsiders,” he that marketing as we currently them, Lee offers the following close rate.” adds. practice the discipline is on its advice: Cultivate customer sales Build strong customer way out.” Go retro: Cultivate a local and marketing people. communities. Consider Harley- The inability of traditional buying experience. It’s a myth Business spends billions of dol- Davidson’s success in creating a marketing to engage buyers has- that social networks and their lars training salespeople to build sense of community around its n’t escaped the notice of CEOs, technologies are creating new relationships with prospects and bikes. Three decades ago, the the ones who approve its budg- approaches to marketing. At customers. But no one has to public associated Harleys with ets. A pair of wake-up-call stud- their most effective, they’re spend a dime training a cus- gangs and outlaws, which ies by the Fournaise Marketing doing the opposite: They’re tomer to build a trusting rela- turned off consumers. Harley- Group in London in 2011 and allowing customers to re-create tionship with your prospects. Davidson worked hard to 2012 found that more than 70 the experience of shopping and Since they’re peers, they pretty change the image, first by get- percent of CEOs think that their buying in their local communi- much already have one. ting police departments to start chief marketing officers lack ties. Microsoft builds on this aspect using them, and then by work- business credibility, lack the Think about it this way: of human nature when it pene- ing assiduously to build a cus- ability to generate acceptable How do buyers prefer to pur- trates new markets, often in for- continued on page 32 BUSINESS JOURNAL • PAGE 8 December 2012 DUFF & PHELPS/INLAND EMPIRE BUSINESS JOURNAL STOCK CHART THE GAINERS THE LOSERS Top five, by percentage Top five, by percentage
Company Current Beg. of Point %Change Company Current Beg. of Point %Change Close Month Change Close Month Change Hot Topic Inc. 9.66 8.48 1.18 13.9% Simplicity Bancorp, Inc. 14.10 15.43 -1.33 -8.6% Provident Financial Holdings, Inc. (H) 15.65 14.77 0.88 6.0% CVB Financial Corp. 9.94 10.82 -0.88 -8.1% Outdoor Channel Holdings, Inc. 7.45 7.26 0.19 2.6% American States Water Company (H) 43.29 44.02 -0.73 -1.7% Monster Beverage Corporation (L) 45.74 44.65 1.09 2.4% Physicians Formula Holdings Inc. 4.82 4.89 -0.07 -1.4% Watson Pharmaceuticals, Inc. (H) 85.26 85.95 -0.69 -0.8% Watson Pharmaceuticals, Inc. (H) 85.26 85.95 -0.69 -0.8%
Ticker 11/21/12 10/31/12 %Chg. 52 Week 52 Week Current P/E Exchange Close Price Open Price Month High Low Ratio
American States Water Company (H) AWR 43.29 44.02 -1.7 45.79 33.56 16.3 NYSE CVB Financial Corp. CVBF 9.94 10.82 -8.1 12.95 9.02 13.6 NASDAQGS EMRISE Corporation (L) EMRI 0.40 0.52 -23.1 0.76 0.26 NM OTCPK Monster Beverage Corporation (L) MNST 45.74 44.65 2.4 83.96 39.99 25.1 NASDAQGS Hot Topic Inc. HOTT 9.66 8.48 13.9 10.73 6.44 25.4 NASDAQGS Simplicity Bancorp, Inc. SMPL 14.10 15.43 -8.6 15.74 11.76 18.9 NASDAQGS Outdoor Channel Holdings, Inc. OUTD 7.45 7.26 2.6 7.99 5.80 93.3 NASDAQGS Physicians Formula Holdings Inc. FACE 4.82 4.89 -1.4 5.14 2.76 32.4 NASDAQGS Provident Financial Holdings Inc. (H) PROV 15.65 14.77 6.0 16.02 9.05 10.1 NASDAQGS Watson Pharmaceuticals, Inc. (H) WPI 85.26 85.95 -0.8 90.00 55.00 66.3 NYSE
Notes: (H) - Stock hit fifty two week high during the month, (L) - Stock hit fifty two week low during the month, NM - Not Meaningful
Five Most Active Stocks Monster Beverage Corporation 42,765,360 Hot Topic Inc. 12,243,470 Watson Pharmaceuticals, Inc. 12,143,900 CVB Financial Corp. 7,138,350 American States Water Company 1,414,860
D&P/IEBJ Total Volume Month 78,700,530
Monthly Summary 11/21/12
Advances 4 Declines 6 Unchanged 0 New Highs 3 New Lows 2
Duff & Phelps, LLC One of the nation’s leading investment banking and financial adviso- ry organizations. All stock data on this page is provided by Duff & Phelps, LLC from sources deemed reliable. No recommendation is intended or implied. (310) 689-0070. December 2012 BUSINESS JOURNAL • PAGE 9
ASSETASSET PROTECTION PROTECTION ININ BUSINESSBUSINESS Learn why people want to E-Commerce Businesses Stand to live, work and do business Lose More Without Asset Protection By Hillel Presser in the High Desert What differentiates commerce businesses from traditional busi- • Factual economic information about the Inland Empire North/e cor- nesses when it comes to asset protection? ridor, including the cities of Adelanto, Barstow, Hesperia, and Potentially more assets in need of protecting. Victorville, the Town of Apple Valley, and northern San Bernardino Both types of business owners have assets such as homes, cars County and bank accounts that need protection in the event of a lawsuit – whether it’s a personal suit or one targeting the business. E-com- • Economic analysis merce businesses may need more financial protection to cover their • Updated overview of quarterly absorbency rates of commercial, wealth of intangible assets, including domain names, website con- industrial, and office space tent, intellectual property, trademarks and patents. Additionally, an e- • Free e-mail subscription commerce business may prove to be more of a lawsuit liability • Minimum of three (3) issues per year because it’s vulnerable not only in the state where the storefront or • The most condensed, up-to-date, factual business information from warehouse is located, but essentially everywhere substantial connec- highly respected professionals, effected property owners, investors, tions are made, including internationally. In that sense, the need to developers and lenders, local businesses, anyone with a vested financial create, maintain and regularly update an asset protection plan interest in the High Desert becomes more urgent. To legally shield wealth from lawsuits and other potential threats, • Quarterly comments by Dr. Alfred Gobar, renowned real estate econ- including divorce, business owners of all types should have an asset omist, Alfred Gobar Associates, (Anaheim, California) protection plan. This multi-layered strategy involves a range of tech- niques to title assets such as homes, savings and property (tangible Visit us at www.TheBradcoCompanies.com or call (760) 951-5111. and intangible) in the event that a claim is brought against the busi- SUBSCRIBE TODAY! ness or owner. It’s not a guarantee that the protected person will avoid lawsuits or other financial calamities, but it can guarantee they’ll lose fewer assets if the worst does happen. I advise clients to work with an attorney to create a plan that’s the best fit for their specific financial situation. Clients should: 1) edu- cate themselves, 2) inventory their wealth, 3) assess their liabilities, 4) decide the best asset protection tactic or strategy to use with each asset inventoried, and 5) execute the plan. • Educate yourself. Clients should understand what’s going on when their attorney is creating their plan, how it relates to their life, and what changes will trigger the need for an update. They should learn what they can and can’t transfer as well as who they should and shouldn’t transfer assets to, even temporarily. For instance, if they “gift” a home to their children shortly after or in proximity to a civil claim filed against them, in the event of a judgment that gift may be looked upon as a fraudulent transfer. It could be reversed, making their home susceptible to the creditor judgment. Education is key to maintaining long-term asset protection. The Presser Law Firm, P.A. offers complimentary books on asset protection and an asset protec- tion worksheet at www.AssetProtectionAttorneys.com; submit a request in the contact form. • Inventory your wealth. They should include both tangible and intangible financial recourses. Tangible assets include but are not limited to: their home, real estate, bank accounts, vehicles, boats, etc. Intangible assets include but are not limited to: patents, copyrights, franchises, goodwill, trademarks, domain names and trade names, etc. • Assess your liabilities, present and future. Some present liabilities could include current creditors (whether or not they have claims against the client), personal guarantees on home or business loans, and the client’s marital status as well as longevity of your mar- riage. Future liabilities include unexpected potential financial risks. A failing business in an economy downturn is a good example. Surely many businesses didn’t contemplate their demise in the financial and economic crash of 2008. Those continued on page 38 BUSINESS JOURNAL • PAGE 10 December 2012
THETHE WEBWEB ANDAND DESIGNDESIGN OPINIONOPINION Duct Tape My Software and Hope Listening for Silent Voices: Five for the Best? Reasons Why the Nation’s Leaders By Joe Thomas Aren’t Speaking Up About a Key The clients are different, but the question is always basically the Safety and Economic Issue—the same. Can you redesign my website? It doesn’t matter how the question is phrased, every time it’s Nation’s Crumbling Infrastructure asked, I give the same response: There is no such thing as a Re Design. It’s true; a redesign of a Election season chatter has focused mainly on issues website is simply a repackaging. It’s taking the same content and put- like the economy, jobs, taxes, and the national deficit. ting it in a new dress. Or taking the same software or function and But while these issues get a lot of attention from adding some make-up. Now seriously, why would you want to do candidates, other important issues go ignored. One of that? There can only be a handful of reasons to even entertain the those issues, says Barry LePatner, is the nation’s thought of it: crumbling infrastructure. He explains why the nation’s 1. The current site doesn’t work. It’s broken, kaput! leaders continue to ignore an issue that could have a 2. The current site is no longer effectively selling your product huge economic and safety impact. or service. 3. It’s outdated and ugly. Throughout the presidential campaign cycle, several topics have 4. You just woke up and decided to change everything for the been discussed ad nauseam. In debates, interviews, campaign ads, sake of changing things. and stump speeches, the economy, taxes, job creation, national secu- 5. Somebody told you it was a good idea. rity, and the national deficit have gotten a lot of attention. But, notes Here’s a breakdown of those reasons, and whether or not a Barry LePatner, there is at least one very important issue that has got- redesign is the solution. ten little, if any, airtime, and that’s what’s to be done about the 1. If the current site is broken: Well if it’s broke, you’ve got nation’s crumbling and increasingly unsafe infrastructure. to fix it. And if it needs to be fixed, why use duct tape and glue? “It has become clearer than ever before that unless there is a cat- Building it correctly from the ground up is a smarter use of your astrophic failure of another piece of infrastructure, there is little like- money, and will most likely cost you the same thing—or less. And lihood our imperiled roads and bridges will receive the attention they you can build it with the latest technology, optimized for search, eas- deserve,” says Barry LePatner, creator of ier updating and better functionality www.SaveOurBridges.com and author of “Too Big to Fall: America’s 2. If the site is no longer effectively selling your product or Failing Infrastructure and the Way Forward.” “The presidential can- service: Why repackage something that doesn’t sell? A good devel- didates have all but ignored infrastructure, and I fear their lack of oper will tell you why it’s not selling—he just needs to look at the concern is representative of our nation’s leaders as a whole. And data. Let him show you why it’s a lame duck, then have him give you without a political push, there is little hope that the federal funding the alternatives. needed to correct decades of neglect will be provided.” 3. If it’s outdated and ugly: Well this is pretty self-explanato- The reality, LePatner argues, is that as talk of the economy, jobs, ry but I will say this: I’ve seen a lot of “ugly” sites sell a lot of prod- and national security fill the airwaves, repairing the nation’s infra- uct; don’t base your decision on ugly—that’s a matter of opinion. I’ve structure should be part of those conversations because it can have a told many people with ugly sites NOT to touch them. Hey, if they substantial effect in all of those areas. sell, who cares what they look like, right? Outdated is a different “There are 4,000 dams that are in danger of bursting and flooding story. You can’t compete with today’s sites using outdated technolo- cities and towns,” points out LePatner. “Our clean water pipes leak gy. Just ask MySpace what has been estimated to be as high as 10 billion gallons of water 4. If you just woke up and decided to change everything: Go a day. Our congested roads cause over $87 billion in wasted gas and shoe shopping. Buy a new hat. But realize when you call a web loss to our economy. There are 7,980 bridges relied on to keep com- developer, you’re not going to be happy with anything he does. merce going that are in danger of collapsing just as the I-35W Bridge You’ll be wasting your money and driving some poor developer did in Minneapolis in August 2007. These certainly sound like eco- nutso for nothing. nomic and national security problems to me, and finding ways to fix 5. If somebody told you to redesign your website: Odds are, them would put people back to work.” that person is a web designer—NOT a web developer, and trust me, LePatner has long been fighting to bring attention to this issue. In there is a huge difference between the two. A web designer is going fact, most recently, he created www.SaveOurBridges.com, a site edu- to give you exactly what you ask for—the colors, the content, the but- cating the public on the dangerous bridges in their communities. tons, the pictures—the exact website you tell him to build. A web “We can no longer treat our infrastructure as a second- or third- developer is going to tell you honestly if and why you’re wrong about tier priority when it comes to funding,” says LePatner. “Our roads all of those things. A developer is going to tell you that your bio is and bridges make commerce possible. Shut down even just a few of great, but it doesn’t sell you. Or that your photos make you look like these key points of economic circulation and it’s the equivalent of a an alien life form. A developer is going to tell you how and why to heart attack. You’re closing down an economy that’s already weak. build it this way. And let’s be honest—if you knew the exact site you Those in power must remember that the risks we face are not limited needed to have with the colors, content, buttons and pictures, you to the dangers they cause to the traveling public. They include jeop- wouldn’t need to hire someone continued on page 37 ardizing our country’s entire com- continued on page 14 December 2012 BUSINESS JOURNAL • PAGE 11 High Desert Report - A Quarterly Economic Overview Innovators A Shortage of Homes for Sale Has Caused a Significant Recognized at Increase in the Price of Homes in the High Desert 10th Annual During the 2004-2005 hous- for the area was only $110,000; September 2012 compared to Spirit of the ing bubble, 600 new homes however prices have increased 451 closings. During 2004 and were sold each month in the consistently since May of this 2005 the number of outstanding Entrepreneur Victor Valley area in addition to year. By September 2012 the listings averaged 2,500, which Awards 500 previously owned homes. median price reached $121,000. represented four to five months The vacancy level was low and The table below titled the Victor of sales. Real estate agents The 10th anniversary of builders were straining to meet Valley SFR Market Condition believe this is one of the factors the “Spirit of the demand, which was artificiality Report for September 2012 was causing the rise in home prices Entrepreneur Awards” pro- inflated by the lax lending stan- prepared by Bob Thompson for over the last few months. gram, presented by Cal State dards fostered by the federal Escrow Junction. It is the infor- Also, a review of the second San Bernardino, honored top government through Freddie mation source for this article. page of the Market Condition Mac and Fanny Mae. The medi- In the last six months the Report would reveal that only business entrepreneurs in the an price for previously owned financial institutions including 77 REO properties were listed Inland Empire. single family homes in the Freddie Mac and Fanny Mae for sale at the end of September, Mike Stull, founding Victor Valley area peaked in have further reduced the num- which is less than the 209 units organizer of the event and February 2006 at $322,000. By ber of homes they release for available at the end of March. director of Cal State San April 2009 the median price had sale. The number of homes list- There were only 97 “short sale” Bernardino’s Inland Empire declined approximately 68% to ed has declined from a 2.2- units available in September Center for Entrepreneurship, $103,000, which was the low month supply last March to only compared to 230 in March of said the award is a nice rein- point for this real estate cycle. 1.4 months today. There were 2012. On the other hand in the forcement. “It’s nice to say In March 2012 the median price 641 homes available for sale in latest report there were 469 “Standard Sale” homes ‘you’re doing a good job,’” listed by non-financial said Stull, who is also a pro- institutions which was fessor of entrepreneurship at essentially the same num- the university. ber available last March. Two awards went to Jerry In the case of REO sales, Mall of K&N Engineering, the ratio of closings to list- Riverside for Lifetime ing is only 0.50 months. Achievement, and Bob There is truly a shortage of Burlingame of Burlingame REO listings. The inven- tory for short sale proper- Industries in Rialto to Master ties that could be sold in Entrepreneur. 1.1 months at the current Spirit awards were also rate of sales, while the presented to Robin Allen of ratio of supply to demand Necessary Nutrition, Inc. for was 2.2 months for stan- Emerging Entrepreneur; Isaac dard sales. and Lucy Gallardo of Inland REO and short sales Empire Autobody & Paint, accounted for 53% of the Inc. for Family Business transactions in September 2012. This is down from Entrepreneurs; and Chris Ma 67% in March of this year of Vantage LED for and 74% from 18 months Manufacturing Entrepreneur. earlier. This is a positive Additional winners were trend because it indicates Kathy Walsh of Business properties that were fore- Waste Management LLC for closed on represent a Consulting Entrepreneur, declining portion of the Terry Oelrich of Reverse sales activity. Many of the Control Inc. of San buyers were investors, rather than owner occu- Bernardino and Josiah Bruny pants, who renovate the of Music Changing Lives in homes, and either, resell Redlands tied for the Social the units, or lease them to Entrepreneur award; and Grey renters who are not able to Frandsen of HG. continued on page 12 BUSINESS JOURNAL • PAGE 12 December 2012
purchase a home. A Shortage Of... The demand for single family FINANCIALFINANCIAL COLUMN COLUMN continued from pg. 11 homes continues to be artificially inflated, because of the policies of the federal government. Interest Budgetary “Groundhog Day” rates are extremely low and down payments are usually substantial- By William J “Bill” Cortus, FIC, Financial ly below 20% of the purchase price for owner occupants. Individuals are purchasing homes in the High Desert with as little as 3% down. Consultant, Thrivent Financial and On the other hand the underwriting criteria and documentation Russ Swansen, Thrivent Investment Management requirements are far more rigorous and extensive than normal; and Chief Investment Officer the requirements for home appraisals tend to place a downward pres- sure on home prices. The past appraisals could only include REO Reflecting on the election and its implications for the federal sales comps which are lower than standard sales comps. The effect budget, I am reminded of the movie “Groundhog Day” in which of all this is to make home prices in the High Desert the most afford- Bill Murray wakes up on the same day over and over again until able in Southern California. he finally gets it right. The big difference? Our budget problems The requirement to use REO sales when doing an appraisal has aren’t funny. Still, like Murray’s character, we find ourselves in been recently waived, which will make it easier for home prices to practically the same situation we’ve been in for some time, facing increase. This will be the case, not only for the High Desert but for the same political divisions and the same budget challenges. In all of Southern California. The second page of the Market Condition fact, we’re not just where we were right before the election, we’re Report depicts the median close price for the 11 residential submar- where we were a year or two ago. Hopefully, in 2013, Washington kets in the Victor Valley Area. In September of this year the median will get it fixed. close price for the REO sales in the area was $108,000. This com- Not that failure to fix it has been all bad, at least for the finan- pares to a median close price of $116,000 for short sales and cial markets. Over the past three years we’ve watched Washington $130,000 for standard sales. fail to fully consider the Simpson/Bowles and other deficit-reduc- Home prices are expected to continue trending upward if the U.S. tion plans, struggle through the debt-ceiling crisis of 2011 and and California economies continue to expand, creating jobs that continue contentious tax and spending debates during the election could support population growth and substantial household forma- of 2012. During that time, the S&P 500 stock index rose almost tions in both the High Desert and the Inland Empire. The good news 23%, albeit with a lot of volatility. The debt-ceiling standoff alone is that the population of the High Desert increased since the U.S. set the market back nearly 18%, in addition to prompting the first- Census and is currently slightly higher than it was at the beginning ever downgrade of the country’s credit rating. of 2009, before there was an out migration caused by the last reces- Our budget and economic woes haven’t disappeared, though. sion. Recent population trends are discussed in another article on The biggest immediate concern is the so-called “fiscal cliff” – the population in the Bradco High Desert Report. package of hefty automatic spending cuts and tax increases sched- uled to take effect beginning on Jan. 1, 2013. Uncertainty over whether Washington will allow us to go over the cliff or craft some alternative policy has made it difficult for businesses to have the confidence they need to fully invest. The term “fiscal cliff” itself is a bit misleading. As I have pre- viously noted, it would be more accurately described as a fiscal slope, since its impact will not hit us all at once. Nonetheless, it is the crisis of the moment, and everyone is wondering whether Washington will arrive at some grand bargain to resolve it, and our policy uncertainty, before the end of the year. I doubt it. To me, a “grand” bargain means comprehensive tax and entitlement reform that puts our nation’s debt-to-GDP ratio on a downward trend. (GDP, or gross domestic product, represents the sum total of our nation’s output of goods and services.) Reform of the magnitude envisioned by a grand bargain would almost certainly take months to negotiate, so it is inconceivable to me that one will be struck by year-end. I think a petite bargain may be possible, something that defers the start date for the spending and tax cuts for a period of months to allow time for real negotiation and reform. However, I put the odds of that happening during Congress’ lame duck session fairly low, too – perhaps at 50%. So what happens if we reach the end of the year without a petite or grand bargain? Not much, really, although the financial markets may not see it that way. On spend- ing, President Obama has some latitude as to when to actually begin the spending cuts. In effect, he can stall. On the tax front, any changes enacted mid-year can be made retroactive to the beginning of the year, as has been done many times in the past.
There are Deadlines, and There are Deadlines Deadlines are important, and continued on page 26 December 2012 BUSINESS JOURNAL • PAGE 13 High Desert Report - A Quarterly Economic Overview REALREAL ESTESTAATETE NOTESNOTES Barstow City Update By Oliver Chi, Assistant City Manager VICTORVILLE MULTIFAMILY PROPERTY SELLS FOR NEAR $14 MILLION There is no doubt that the economic downturn has impacted the In a recent high desert apartment sale from the city of Victorville, city of Barstow. Even today, the signs of economic distress can be High Desert Villas, a 232-unit 55-plus seniors housing community, seen throughout the community as Barstow still has an unemploy- sold for $13.75 million, or about $59.3k/unit. ment rate of 14.7%. Unequivocally, there is still much work that The 55-plus community is located at 16850 Jasmine Street, near needs to be done. Desert Valley Hospital. Victor Valley is situated on the southwestern However, in the midst of the Great Recession, the city has during edge of the Mojave Desert approximately 37 miles east of San the past few years taken proactive steps to position the community as Bernardino. the next big thing in the Inland Empire’s High Desert region. High Desert Villas was constructed in 1989 on 10 acres. The one- The process began by focusing on improving the physical appear- and two-story, 118.6k-square-foot Southwestern-style property fea- ance of the community. An aggressive $21 million capital improve- tures 196 one-bedroom units and 36 two-bedroom apartments, 80 ment campaign centered on the enhancement of city infrastructure percent of which are first-floor units. The pet-friendly community’s has been initiated. Furthermore, the city implemented a new econom- amenities include a beauty salon/barbershop, recreation room, fully ic development approach by employing sophisticated research tools stocked library, game room, arts and crafts room, swimming pool and to assist with business attraction and retention efforts. fitness center. It is also important to note that signs of an economic turnaround Alexander Garcia, a senior vice president in Marcus & can be found when looking at demographic data in Barstow. From a Millichap’s Ontario office, represented the seller, the property’s orig- statistical perspective, one measure that illustrates how a communi- inal developer. Garcia also represented the buyer. ty’s economic health is trending can be seen through tracking the “High Desert Villas is a one-of-a-kind property,” says Garcia. “Its area’s median income levels. In the 2000 census, the Barstow area high occupancy is due in part to the attention to detail paid during had a median income level of $35,069. As of the 2010 census, the construction and the high quality of the amenities and senior-orient- median income levels for the Barstow area had increased around 37% ed services. The previous owner tightly managed the property with to $48,042. This data means that the quality of the jobs in the Barstow an eye to both expense control and value preservation,” adds Garcia. area is improving and points to a positive trend for the local econo- my. CARDENAS MARKETS LEASES 263K SQUARE FEET In addition to the statistical data, the city has been working on ONTARIO SPACE several important economic development projects that have the Cardenas Markets agreed to a new 10-year lease for 263k square potential to dramatically improve the overall quality of life in feet of industrial space in the city of Ontario. Cardenas, a family- Barstow. owned supermarket business, is one of the largest privately owned Current significant projects that are underway in the community companies in the Inland Empire. Their new lease is for the majority include the following: of a 420k-square-foot multi-tenant industrial building located at 2501 East Guasti Road, west of Archibald Avenue and just north of Airport Barstow Casino & Resort Project Drive and Ontario International Airport. The Barstow Casino & Resort Project, which is being pursued as Cardenas Markets is expanding its headquarters and distribution a partnership project between the Los Coyotes Band of Cahuilla & operations with this new lease, moving from a 126k-square-foot Cupeno Indians and Bar West Gaming, is still a viable initiative that property, also in Ontario. The new facility serves multiple uses, com- is in the review process. In order for the initiative to move forward, prising abundant executive office space and parking for corporate both the Federal Government and the State of California will have to use, distribution facilities, room for the installation of refrigerated agree to allow the project to be constructed. Currently, the Federal warehouse storage, and plenty of truck and trailer parking. Government’s Department of the Interior is evaluating the proposed Steve Glusker of Pacific Properties Group repped Cardenas Barstow Casino & Resort project and it is anticipated that a final rul- Markets in the transaction. Joe Miller of Voit Real Estate Services ing will be issued before the end of 2012. worked with Ruben Goodsell, Peter McWilliams and Michael If the Department of the Interior approves the project as meeting McCrary of Jones Lang LaSalle to represent the lessor, MK federal guidelines, the next step in the process would be negotiating Associates LTD. Mike Leifer of Palmieri, Tyler, Wiener, Wilhelm & a gaming compact with the Office of California Governor Jerry Wadron assisted in dealing with the land use issues. Brown. That agreement would also have to be approved by the “This transaction required a great deal of persistence, as it was California State Legislature. To assist with these efforts, the city necessary to effect a zoning amendment on the property to accommo- recently engaged the services of the lobbying firm Joe Gonsalves & date Cardenas Markets’ use,” explained Miller. With more than 28 Son to assist with developing a comprehensive strategy aimed at locations throughout Southern California and Nevada, Cardenas gaining state approval for the project. If all the approvals are Markets specializes in providing customers with specialty products obtained, the overall casino project could be constructed in 2013 or and flavors from Latin America. 2014. PALM DESERT RETAIL CENTER SELLS FOR OVER Barstow Community Hospital Project $300 SQUARE FEET During the past several years, the city has been coordinating with Desert Gateway, a 17.7k-square-foot retail property in Palm Community Health Systems, Inc., on building a brand new state-of- Desert, sold for $5.375 million ($304/sf). Located at 34380 the-art medical facility in town. continued on page 15 Monterey Avenue, Desert Gateway continued on page 27 BUSINESS JOURNAL • PAGE 14 December 2012
mercial sector as well as our nation- Listening for... al security network.” continued from pg. 10 Read on for LePatner’s thoughts on why this essential issue continues to be ignored by the nation’s leaders and policymakers: No political will. There is no Occupy Wall Street movement call- ing attention to the fact that politicians are blithely ignoring this national tragedy-in-waiting. One reason the issue doesn’t get much traction is that it’s overwhelming for citizens and policymakers. Many politicians simply don’t know where to start. Then they look at what has happened to leaders who have taken a leap of faith on solv- ing big problems—for example, President Obama and his actions on reforming healthcare—and see the political backlash that comes with those actions. “We need a bold leader to take action on repairing infrastructure despite its overwhelming scope and cost,” says LePatner. “Currently, no political leader in office has spoken up. That’s probably because there is very little money being made available to even start on the first repair. But to be blunt, no money is likely to become available in an atmosphere that has politicians signing vows not to raise taxes and ignoring proposals to provide stimulus money to restore jobs to the two million construction workers who would be needed to attend to these ailing facilities. We need a leader brave enough to take the all- important first step.” Politicians go where the money is. Our politicians have, in the words of Thomas L. Friedman of the New York Times, become inhibitors, not enablers. They are ensconced in a system that makes them totally beholden to the lobbyist funding they must have in order to fund their reelection campaigns. “It’s simply not true that there is no money for infrastructure investment,” says LePatner. “The truth is, states aren’t required to spend the federal funds they’re given on bridge repairs. They can, and do, allocate half of that money to other projects. Over the years, politicians have used these funds to build new projects that lead to ribbon-cutting ceremonies, publicity, and votes. Repairing infrastruc- ture just isn’t sexy enough. Repair projects won’t get the attention of big donors, so politicians spend money on projects that will.” Partisan bickering. Our politicians brook no interference by the rest of the nation when it comes to what they do in Washington and how they frame the national agenda. “Throughout the election, we have been held in a political choke- hold of two philosophies that are sure to guarantee gridlock for years to come, no matter who is elected,” notes LePatner. “It is a power play of the most enormous proportions and consequences. There is no give and take by either side: The GOP adamantly resists any attempt to increase taxes even on those who have been making over $1 mil- lion a year and who are paying the lowest tax rate in decades. The Democrats have totally failed to make a persuasive argument that cutting social benefits, raising taxes on the rich, and paying for need- ed stimulus for high-speed rail networks and other infrastructure improvements will not lead our economy into further ruin.” “Job creation” = political buzzwords, not action. Not just the presidential candidates but many candidates in Congressional races and state and local races utter these words every chance they get. No matter what side of the aisle a candidate is from, he or she won’t hes- itate to tell you how they’re all about job creation. But by ignoring our nation’s infrastructure, they’re all leaving an amazing opportuni- ty to put people back to work on the table. “Consider this: Estimates from studies show that every $1 billion of infrastructure investment creates 10,000 to 31,000 jobs,” says LePatner. “Therefore, if we estimate that the top 2,000 of these bridges can be fixed for an average of $20 million, then with an investment of $40 billion we can continued on page 29 December 2012 BUSINESS JOURNAL • PAGE 15
Those efforts have culminated with Barstow City... the opening of the new Barstow continued from pg. 13 Community Hospital. The ultra- modern three-story, 82,500-square-feet facility features 30 private rooms, a high-tech emergency room, a modern intensive care center, a technologically advanced diagnostic imaging department, and inno- vative laboratories and surgical rooms. All told, building the updated facility required around 3,283 cubic yards of concrete, over 65 tons of concrete reinforced rebar, 476 tons of structural steel, and over 120,000 square feet of fireproofing material. When the new hospital As we enter this holiday season, I am reminded that we have is complete, the overall project will have constituted an estimated so much to be thankful for and celebrate, as individuals, a com- investment of around $80 million in the Barstow community. munity, a state, and a nation. Here in our neighborhoods, I am hearing more and more Lenwood Grade Separation The city has been working diligently with the County of San about the good things happening in our community, even during Bernardino and SANBAG to coordinate the construction of the these difficult economic times. About 98% of businesses in our Lenwood Grade Separation project. A number of design enhance- state are small businesses, employing approximately 20 people. ments have been coordinated during the past several months and the This past year has presented some challenges for our state. project team is currently working on finalizing the engineering work Sacramento politicians are promoting their own agenda instead and right-of-way coordination for the new bridge. In total, the of focusing on getting people back to work and our economy Lenwood Grade Separation will cost an estimated $31.5 million and back on track. Hundreds of new laws will go into effect on Jan. is on schedule to begin construction in 2013. 1, 2013 that will affect our lives in every area from education, to public safety, to laws governing our businesses. Wal-Mart Supercenter Expansion While many of us still share concerns about our future, our During the past several months, the city has been engaged in an state can still have its brightest days ahead. We have some of the intensive review process with Wal-Mart representatives regarding the best seaports in the world for trade, connected to an amazing expansion of the current Wal-Mart store on Montara Road into a transportation system that moves goods throughout our state and Supercenter format. Given the current project schedule, it is antici- to the rest of the nation. As one of the world’s largest producers pated that the project will be considered for final approval in January of agriculture, California yielded $43.5 billion in 2011, and just 2013. The overall project includes building a new 184,000-square- over the hill in the Silicon Valley we are the home of the most foot Wal-Mart Supercenter along with an addition 55,000 square feet innovative and world-transforming technology. And who can of new retail development. forget Hollywood? The world’s capital of entertainment. California is where the rest of the world longs to live, and Barstow Industrial Park each of us call this great state home. Another significant initiative that the city is coordinating is the In addition, we are citizens of one of the greatest nations in revival of the Barstow Industrial Park project. In total, the Barstow the world. This nation was founded on the involvement of its cit- Industrial Park spans over 1,174 acres and is located around 3 miles izens, and based on the fact that each of us has a voice in our gov- northwest of Interstate 15 and around 5 miles west of the Interstate ernment. We have the right and the duty to hold our leaders 15 / Interstate 40 interchange. The city has been working very close- ly with the project developer and discussions are currently underway accountable and fulfill the greatest experiment of all time – a regarding infrastructure installation, utility coordination issues, and nation “for the people and by the people.” the construction of a rail-spur for additional site access. There are Let’s work together to encourage our friends and neighbors to several potential end users that the city and the developer are work- be more involved, and instead of politicians implementing their ing with now in a joint effort to ensure that the Barstow Industrial pet agendas, we as citizens would be deciding what is best for our Park becomes the High Desert’s premier logistics, manufacturing, neighborhoods, cities, and state. This year can change the way and distribution hub. politics is played if each of us vigorously exercise our civic responsibility. Wal-Mart Distribution Center This Christmas, the families of our community face a variety The city has continued to stay in close contact with representa- of economic circumstances. In the midst of the country’s troubled tives from Wal-Mart regarding the proposed construction of a cold- economy, most residents will enter the holiday season with an storage distribution center located adjacent to the city’s planned unusually tight household budget. Others will not have the Industrial Park. In every conversation that the city has had with Wal- resources to give to their loved ones as they have in the past. A Mart, the message has remained consistent. Wal-Mart is still planning few will, for the first time, celebrate Christmas during a stretch on constructing the distribution center in Barstow; however, the proj- of painful unemployment. ect is waiting for approval from the Wal-Mart Logistics Department. For many, this year held tragedy and heartbreak. While join- Given the recent number of Wal-Mart Supercenter conversions ing together with family and friends to celebrate the season, occurring in the high desert and throughout Southern California, in please do not forget those who are struggling. Consider partici- addition to the announcement that Wal-Mart will be testing a small- pating in one of the many local food or toy drives for those in our store format called Wal-Mart Express, it is likely that the distribution community. center in Barstow will be approved for construction in the near future. No matter your circumstance, may this season remind you of the everlasting joy and contentment that can be found. Joanie Redevelopment Dissolution Impacts Minimal for Barstow and I would like to wish you a very Merry Christmas. God bless. On Dec. 29, 2011, the California continued on page 31 BUSINESS JOURNAL • PAGE 16 December 2012
NEWNEW BUSINESS BUSINESS No Money, No Problem: Eleven Tips for a Start-up Business With Very Little Cash (and a Great Idea) Many entrepreneurs kick off their ventures on a budget so lean it’s beyond shoestring; it’s dental floss! That’s especially true in an era where credit is almost impossible to come by. Michael Houlihan, one of the founders of Barefoot Wine, explains how to get the biggest possible bang out of very few start-up bucks. You have a new start-up and determined to find a way to Whether it’s an attic, a garage, a commonsense insight,” he adds. you couldn’t be more excited. make our dream a reality.” spare bedroom, or even the “In our case, Bonnie’s mom You know you’ve got a winning Over the next two decades, kitchen table, go anywhere that came up with the term ‘Barefoot idea and you’re certain cus- Houlihan and Harvey learned won’t make a dent in your bank Bubbly’ for our champagne— tomers will love it. There’s just how much they didn’t know account. and it was a huge hit.” one problem, and it’s a doozie: about wine—making it, bottling “As I said earlier, Barefoot’s Assume someone else’s lack of funding. Yes, even in the it, selling it, marketing it, and first office was a laundry room,” excess inventory. Who says you best of times it can be hard for competing against other reminds Houlihan. “It wasn’t have to start from scratch when cash-strapped entrepreneurs to labels—and Barefoot Cellars glamorous. It certainly didn’t it comes to producing your pay for what they need. But came close to producing its last scream, ‘The people who work product? If it’s feasible in your now, with a sluggish economy bottle many times during those here are a force to be reckoned industry and for your particular and tough restrictions on who years. with!’ But it held our files and a product, try to acquire another can get credit, your frustration is “Even if you’re very famil- desk—which, by the way, was company’s unsold merchandise. threatening to overwhelm your iar with your industry, you face an old door laid on top of a cou- If you can repurpose it, improve passion. More and more you’re an uphill battle when you start a ple of old sawhorses. And most it, or otherwise incorporate it starting to wonder, “Should I company,” reflects Houlihan. importantly, it allowed us to get into your product, you’ve just just cut my losses and throw in “But ultimately, being under- the job done without spending saved yourself time, effort, man- the towel now?” capitalized was a great thing for any extra money.” power, and money. Not so fast, says Michael Barefoot. It forced us to think Get your family to help. “At Barefoot, we bought Houlihan. While you do need creatively and to be resourceful The same people who cheered bulk wine in tanks, juice from some money to get started, you every step of the way. In order to for you at Little League games grapes before it was fermented, can seriously reduce the amount survive, Bonnie and I had to and came to your annual piano and grapes themselves,” if you take advantage of some develop processes and proce- recitals when you were a kid explains Houlihan. “We would key bootstrapping strategies. It dures that worked; that succeed- haven’t changed the way they do whatever was needed to was the use of these very strate- ed solely on their own merits— feel about you. As long as you make each batch into a wine that gies that enabled him and his not because we were constantly are humble and appreciative, fit the Barefoot specifications. business partner, Bonnie throwing money at every prob- you might find that they would Sometimes, we would even con- Harvey, to found and grow lem that cropped up.” like nothing more than to help tract with other wineries to Barefoot Cellars, the company Barefoot Cellars turned out your start-up succeed. So even if make wine to our specs! Since that transformed the image of to be a big success and it was you have to swallow some pride we did not rely on owning and American wine from staid and sold to E&J Gallo in 2005. Now, in order to admit that you aren’t maintaining our own vineyards, unimaginative to fun, lightheart- Houlihan is passionate about Super Businessperson and can’t we saved a ton of money, which ed, and hip. sharing with other entrepreneurs do it all by yourself, ask family is one reason that Barefoot “Trust me, I know what it’s what he and Harvey learned the members to stuff envelopes, put became known as an affordable, like to try to start a business hard way. together email lists, file paper- yet quality, wine. when you’re basically broke,” Read on to learn about 11 work, catalog inventory, and “If you go this route, just be says Houlihan, coauthor along cost-saving measures that more. sure that you never, ever com- with Harvey of “The Barefoot helped Barefoot Wine survive “Retired grandmas, aunts, promise on quality when work- Spirit: How Hardship, Hustle, and grow in its laundry room and uncles would love to make a ing with someone else’s inven- and Heart Built a Bestselling days, and that might just be life- difference in your life, and tory,” he adds. Wine” (coming in February savers for your start-up, too: they’ll probably be thrilled to do Outsource everything 2013 from Evolve Publishing, Start in the garage. Hey, something new and help the except quality. Yes, you’re pas- www.thebarefootspirit.com). this strategy has worked for family business get started,” sionate about your business, and “Bonnie and I were originally so many aspiring bands (at least confirms Houlihan. it’s natural for you to want to strapped for cash that when we until Mom cut the electricity and “Remember, each relative who control and oversee every aspect began making our wine in the silenced the electric guitar), and offers to help out takes the place of it from day one. But look at it mid-’80s, our administrative it can help your start-up to sur- of an employee you’d otherwise this way: Until your financial office was the laundry room of a vive, too. Unless your company have to pay. And who knows, balance sheet is more stable, rented farmhouse in Sonoma needs to operate in a specific they may do a lot more for your what little money you have will County, California. But despite type of space, wait until you start-up than just add manpower. be best spent on marketing your our humble surroundings and have gained more momentum to “Family members can also product so that you can make shallow bank account, we were start writing rent checks. provide objective opinions and continued on page 29 December 2012 BUSINESS JOURNAL • PAGE 17
OPINIONOPINION Why I Despair By Charles C. W. Cooke An apocryphal tale tells of presumably reach a point at while an American thinks, “I’ll ber to a room that had too many an American who claimed to which it could no longer useful- be him one day.” This my father barriers to entry.” Britain treated own George Washington’s axe. ly be called America. How close considered a great virtue — as me well in a great many ways, “Three times,” he exclaims, the to that point are we? do I. By the time that I was 10 but I understand what Hitchens axe has “had its handle replaced, I was born in England in years old, I didn’t just think that meant: America is mercifully and twice had its head 1984, two days before Ronald America was the world’s great lacking in gatekeepers. replaced!” Reagan was elected to a second hope, I knew it. Inevitably, this translates This is a joke that has been term. As a small child, I watched On frequent visits across the into politics. British elections rendered in more serious form the Space Shuttle take off from pond, I saw little to disabuse me are mean-spirited and meretri- by philosophers throughout the Cape Canaveral in Florida. I had of these notions. America was cious affairs that reveal what the ages — perhaps most famously an Apollo 11 lunchbox. With just different: There was no country has become in its post- in Plutarch’s Life of Theseus — varying levels of awareness, I crushing class system, and it had imperial form. In them, the and it may be time now to con- saw the United States defeat a genuine and unique scope for focus flits between mercenary sider it in relation to the United Communism, come to Kuwait’s immigrants to integrate fully, discussion of what the govern- States. People and countries aid in 1991, and rise to hyper- and the virtue of living under the ment is going to give the people change, as they must. But, as power status. During the 1990s, protection of the greatest consti- and petty bickering over incon- with Washington’s axe, to I watched in awe as Silicon tution in the history of the sequential details such as which change too much is to invite the Valley revolutionized the world. world. There was opportunity, schools the candidates went to possibility not merely of alter- Once, my father told me that the too. Christopher Hitchens, by no and how much money they ation, but of replacement. difference between the average means short of talent, once have. Few principles are at stake Predicated, as it is, on an estab- Briton and the average wrote that he had been com- because classical liberalism is lished set of principles — rather American was that a Briton pelled to move to America largely dead, so debates ulti- than merely on geographical or looks at a man driving a Ferrari because “life in Britain had mately boil down to the question racial fact — America could and thinks, “What a b*****d,” seemed like one long antecham- continued on page 20 BUSINESS JOURNAL • PAGE 18 December 2012
MANAGEMENTMANAGEMENT Ways to Manage High and Low Performers By Dr. Marty Martin People who invest their ty. Deliberate practice can be of all of your staff, even chronic Low Performers money wisely spend more time enhanced with explicit, targeted low performers; it is unlikely The third lesson is to cut focusing on the investments feedback from managers. It is that they are not doing well in your losses relatively early. Our with the greatest chance of turn- far easier, more rewarding, and all aspects of their job. country’s goal is to increase ing out to be winners. Do you do more effective to leverage Watch out for the employment, but as a manager the same when managing the strengths, rather than solely “Pygmalion Effect.” This or CEO you also have a respon- performance of your employ- focusing upon weaknesses. The means that your staff rises or sibility to your boss or stock- ees? If you are like most man- key is to find strength in one falls to your expectations. In holders, to your company, and agers, sadly the answer is that area and get the performer to use other words, if you have low your customers. you get caught up spending too that strength in an area that expectations, then they will There are two ways to much time with low performers requires improvement. Real, move to meet your low expecta- address chronic low performers. who have a fair chance of being sustained improvement takes tions. The opposite is also true; First, if after setting clear expec- acceptable, but not stars. What time. This requires patience on if you have high expectations, tations, monitoring their per- would happen if you dedicated your part as a manager focusing then your employees will move formance, giving feedback more time to your employees upon the long term and not just to meet your high expectations. about their performance, coach- who are acceptable performers the quick fix. The quicker the Focus on making progress ing them, and then letting them yet exhibit clear signs of being fix, the less sustainable the toward a longer term goal, and know about the consequences of high performers? The answer is result. reward that progress, even if it is underperforming, you see no that many of these acceptable only one baby step after another. improvement, you should let performers will move into the Keep Hope Alive for All By rewarding small steps to the them go. ranks of high performers. Performers larger performance goal, you Second, if your company So, as a manager, CEO or The second lesson is keep will also feel less frustration cannot afford to let any employ- business owner, how do you hope alive for all performers, because you know your efforts ees go in order to keep the oper- identify the employees you even those who are chronically with the low performers are pay- ation running, you should reas- should focus on, and how can low. What does this mean? As a ing off. sign the chronic low performers. you make the most of your manager or CEO, you want to When you reassign an employ- lower performers? make investments, though not Reassign or Fire Chronic continued on page 37 equal investments, in all per- Be Selective About Who to formers. But, do not potentially Focus Upon waste too much time, energy SUBSCRIBE NOW! The first lesson is to careful- and other resources in your SUBSCRIBE NOW! ly select who will be important employees who, at their very Ye s I want to subscribe to the Inland Empire Business Journal for you to invest time, energy, best, will only be an average or and other resources in to devel- acceptable performer. This does One year $24 annual subscription One year $82 — Includes 2012 oping their performance. This not mean that they are not a My check is enclosed Digital Book of Lists (A $75 Value) decision is incredibly important; good person, that they are not American Express MasterCard Visa if you choose a low performer, worthy of their salary or that then your likely payoff will not they are a slacker. It may simply Credit Card Number: be as great as if you had select- mean that they are comfortable Expiration Date: ed a high performer. This may in their current position and seem at odds with what you have no desire to become the Extended Card Validation (front or back right of card): have learned in the past, or it company superstar, or that they Name: may even seem to go against the are a bad fit for your organiza- Company: grain of democracy or fighting tion. A manager that wants to for the underdogs. But, if your improve performance should Address (to send Journal): goal is to maximize perform- demonstrate what psychologists City, State Zip: ance, then this approach is more call “Unconditional Positive likely to yield greater results Regard.” This means that you Phone: quickly. accept where your staff begins E-mail: As humans, we can only their performance improvement really improve 2-3 things at a journey. For some, they may Make checks payable to: single time, no matter what begin behind, for others at the Inland Empire Business Journal multi-taskers tell you. right place, and some are even P.O. Box 1979, Rancho Cucamonga, CA 91729 Deliberate practice on 2-3 things ahead. Assess the starting place For more information, is what drives high impact gains but do not judge. Then, you can Call (909) 605-8800/Fax (909) 605-6688 in performance and productivi- identify the signature strengths December 2012 BUSINESS JOURNAL • PAGE 19
MANAGEMENTMANAGEMENT CDSA Inland Empire Caucus Honors Business Partners The Top 5 Pitfalls that Derail The California Disability Services Association (CDSA) Inland Corporate Decision-making Empire Caucas, held its annual event to recognize business and com- By Michael Menard munity partners. This event recognizes 10 non-profit and for profit businesses that do an extraordinary job of providing individualized Despite the wealth of information available to us these days, training for the people they serve, including personal growth skills, many of today’s best and brightest business leaders still make poor vocational training, job placement and job coach services, job reten- decisions. This is unfortunate, because sound decision-making is at tion, community access and inclusion, communication and social the heart of every company’s success. skills, and independent living skills, just to name a few. The event, Even if you have the best education and years of experience, it’s which was hosted by Assembly Member Norma Torres and Assembly still possible—and common—to make poor decisions. Why? Today’s Member Mike Morrell, was titled, “With you, we can!” The employ- decision-makers are up against a long list of pitfalls and obstacles ers and other community partners attending the event have provided that prevent them from making sound decisions. Fortunately, once opportunities for employment and community access. you know what you’re up against, you can take the proper steps to This has been so important in making many dreams come true for correct it. Here are the top five decision-making pitfalls that get in the people with developmental disabilities; and for that, CDSA wanted to way of organizational success. say thank you! Each organization had two honorees at the event. Pomona Valley Workshop (PVW) was very happy to recognize 1. “We need to change, only not today.” (Avoiding the deci- Foamtec International and Chino Hills Government Center for their sion) partnerships with PVW. Foamtec is a partner with the work program. Saint Augustine (b. 354 – d. 430) prayed, “Lord, make me chaste, PVW’s disabled workforce packs thousands of sponges for them each but not yet.” It’s one thing to know about change and imagine future year. Representing Foamtec and accepting the award on their behalf benefits, but we often avoid deciding to take action right now because was Sara Trent. continued on page 39 change means some level of immediate discomfort. Realize, though, that no business or individual grows without change and risk. PROFESSIONAL OFFICE CLEANING However, risk aversion is basic human nature. The paradox is that we want something different without having to change. 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Richmond Cleaning Services takes customer satisfaction seriously and complex situations can overwhelm us, so we unconsciously and to help build our reputation in the office cleaning industry. We strive to pro- mote a clean and healthy image for your business that your employees erroneously make them simpler. However, this natural tendency to will love and your customers will appreciate. simplify information can hinder decision-making. Of course, let’s not confuse oversimplification with the highly 10 PERCENT OFF THE FIRST MONTH OFFICE CLEANING valuable ability to reduce a problem to its essentials. After all, deci- WE GIVE DISCOUNTS FOR REFERRALS! sion-making needs to be both effective and efficient. But we must distinguish between these two words. We can be efficient without Richmond Cleaning Service, LLC being effective by doing the wrong task well. Licensed • Bonded • Insured No matter how well-intentioned we are, under pressure our desire [email protected] for simple answers to complex questions increases dramatically. The www.richmondofficecleaning.com red flags go up. When we imagine we don’t have time or resources to 10% Discount at the time of service for new customers address a problem adequately, we start to look for a single explain- A testimonial from one of our customers! able cause that fits into our existing framework. Paying too much We have used the weekly janitorial services of Richmond Cleaning for the attention to what we directly see in front of us is called the present past two years. Their personnel have always been efficient, reliable and bias. Oversimplification discounts contributing factors and exagger- courteous. I have no hesitation in recommending their services. Many Thanks, Melissa A. ates what already stands out for us. continued on page 27 BUSINESS JOURNAL • PAGE 20 December 2012
of who is going to run the welfare So, too, were the two central achievements of Obama’s first term: Why I Despair... system more efficiently. The candi- the spending of an unprecedented amount of borrowed money on the continued from pg. 17 dates’ arguments are full of nebu- president’s political allies, and the turning of the health-care system lous, slippery words, such as “fairness” and “investment” — and the over to the bureaucracy in a “reform” that, inter alia, stipulates that to never-ending substitution of the word “community” for “govern- be alive is to owe something to Washington. The latter move involves ment.” You would never hear Kennedy’s famous “Ask not what your a claim on the people that no free government should ever make, and country can do for you” line in a British political context because that no American government has ever made before. For these grave nobody would understand what he was talking about. Only in missteps, the president suffered an epic loss in Congress in 2010. The America. Anyone can make it there! revolt looked promising, but then — for whatever reasons — he was But, consider this: A president of the United States just ran a reelected. Now, Obama has the chance to remake the Supreme Court reelection campaign based on the promise of government largess, and remake America ’s Constitution, too. Who doubts he will take it? exploitation of class division, the demonization of success, the glori- If we are to lose America as it has been, could we not ask that it fication of identity politics, and the presumption that women are a be lost to something better than this? Our president, a Narcissus mas- helpless interest group; and he did so while steadfastly refusing to querading as a Demosthenes, makes big speeches packed full of lit- acknowledge the looming — potentially fatal — crisis that the coun- tle ideas, and he is applauded wildly for it. His, says Marco Rubio, try faces. And it worked. “are tired and old big-government ideas. Ideas that people come to Worse, as David Harsanyi has observed, “the president’s central America to get away from. Ideas that threaten to make America more case rests on the idea that individuals should view government as like the rest of the world, instead of helping the world become more society’s moral center, the engine of prosperity and the arbiter of fair- like America.” I will vouch for the verity of these words. I have ness.” This stunted and tawdry vision of American life was best watched how these sorry ideas play out in the real world, and it is not summed up in his campaign’s contemptible Life of Julia cartoon, pretty: They make people’s lives worse, and yet simultaneously con- which portrayed the American Dream as being impossible without vince them that any reform will kill them — a fatal combination. heavy cradle-to-grave government, and in which the civic society Americans should avoid this path sedulously, for that way lies that Tocqueville correctly saw as the hallmark of the republic was decline. wholly ignored — if not disdained outright. “Government is the only Rubio is correct in another assessment. How small Barack thing we all belong to,” declared a video at the opening of the Obama’s politics are! How deficient and outmoded are his ideas; how Democratic National Convention. In another age, this contention limited his understanding of America’s value; how dull his magnilo- would have been met with incredulity and confusion; in ours, it was quence. The president has an ample library of ideas from which to cheered. choose, and yet he raids the Old continued on page 28 High Desert Report - A Quarterly Economic Overview Reviving California Is Going to Take a Revolution By Assemblyman Tim Donnelly, 59th District ISU “You can send everyone else send. I wish every elected offi- sent him this year. Among them industry tell me that their num- home; this is my job.” cial in this state could have was a brand new tax on timber, ber one problem is not the econ- That is what a woman told stood with me on that porch. which, of course, he signed. omy; it’s government interfer- an employer when interviewing These are the people we repre- This means that the Sacramento ence. for a job that received hundreds sent. We were not sent there for majority and the Governor, both While other states are of applicants right here in San the lobbyists and special inter- looking at double-digit unem- rolling out the red carpet for Bernardino County. When ests who try to buy power. ployment and a state that is businesses to open or expand, asked why she was so confident, People all over this state are hemorrhaging businesses, California taxes materials, the woman told her interviewer doing everything they can to get decided that taxing the literal penalizes energy users (aka that she wanted it more than back to work. I wish I could say building block of the recovery manufacturers) and punishes anyone else—that unless she the same for the legislature. was the answer. production. These backwards found work that day, she and her Instead, the people who are sup- I disagree. policies have chased business young son would be living out posed to represent us are doing I regularly have the pleasure owners out of our state, with of their car. everything they can to stay in of meeting business owners manufacturers leading the She isn’t alone. the good graces of the green from across the state. Recently, charge. It’s as if the so-called When I was walking door- police and union bosses to keep a gentleman explained to me leaders of our state don’t want to-door meeting constituents, their pet projects running. They that because of California’s anything to be built in one man stepped away from our have done so at the expense of heavy regulatory hand, he is California! When they drive sta- conversation mid-sentence to our business climate, job market unable to expand his business ble, high-wage jobs out of our take a phone call, then rushed and overall economic health. and hire more employees, region, they create a hole in the out the door and took off in his In the last week of session, although he would otherwise do budget, which always dispro- car. His wife nearly broke out the Assembly tried to pass 550 so. In the midst of the greatest portionally affects education, into tears explaining that he got new bills in just five days. Most recession since the Great the largest state expense. a call offering a half-day’s Californians don’t think we Depression, it is a devastating Instead of trying to attract work. They had been living on a need any new laws at all. and offensive reality. It’s offen- new businesses or incentivize wing and a prayer, hoping Governor Brown just finished sive because it is 100% prevent- employers to hire people, against hope to keep their home, going through the mess of hun- able. The vast majority of busi- California is literally extorting and every little job was a god- dreds of bills the Legislature ness owners in almost every continued on page 37 December 2012 BUSINESS JOURNAL • PAGE 21 High Desert Report - A Quarterly Economic Overview The Demand for Industrial Space in the High Desert Has Increased Substantially Over the Last 18 Months By Ronald J. Barbieri, Ph.D., CPA - The Bradco Companies There are two different such as Wal-Mart in the town of in excess of 50,000 SF. The sec- ers in the regional market. They classes of industrial tenants and Apple Valley, or large manufac- ond consists of smaller manu- are typically small space users users in the High Desert. One turing operations, such as facturing or distribution firms that occupy single or multi-ten- class consists of the large box United Furniture Industries at that for the most part cater to the ant buildings of 50,000 SF or users. They typically are ware- SCLA in Victorville. Such com- local population and businesses less. The average floor area of housing and distribution firms, panies usually occupy buildings or are niche manufacturing play- the small buildings is 10,200 SF. The graph below categorizes the industrial inventory in the High Desert by city as well as by whether or not the structures are greater than 50,000 SF. It also segregates the industrial space in the city of Victorville into the inventory at SCLA and the non-SCLA portion of the city. Of the 20.5 million SF of industrial inventory in the High Desert, 8.5 million SF is associ- ated with buildings of 50,000 SF or less. The remaining 12.0 mil- lion SF is in buildings greater than 50,000 SF. The city of Victorville has almost 8.4 mil- lion SF of industrial space, of which 4.5 million SF is located at SCLA. The balance of 3.9 million SF is in the Foxborough Industrial Park, which the city developed, and in several other industrial sub-markets through- out its incorporated area. The city of Hesperia is home to 4.6 million SF of industrial invento- ry, much of which is in the older industrial area north of Main Street between the railroad tracks and I Avenue. Adelanto accounts for 3.3 million SF while the town of Apple Valley has 2.8 million SF. Barstow has 1.4 million SF of industrial space. As of June 30, 2012, the vacancy rate in the High Desert for buildings 50,000 SF or less was 5.4%, while for larger buildings it was 4.2%. The city of Barstow had the highest vacancy rate for buildings over 50,000 SF. It was 36.2%. The vacancy rate for the smaller buildings in Barstow was 6.8%. The non SCLA portion of Victorville had an 8.1% vacancy rate in the smaller buildings, but continued on page 31 BUSINESS JOURNAL • PAGE 22 December 2012 December 2012 BUSINESS JOURNAL • PAGE 23 BUSINESS JOURNAL • PAGE 24 December 2012 December 2012 BUSINESS JOURNAL • PAGE 25 High Desert Report - A Quarterly Economic Overview Real Estate Market Outlook By Dr. Alfred J. Gobar Chairman, Alfred Gobar Associates Over the past 50 years, Riverside, San Bernardino, and in order to identify attractive California; i.e., new develop- increase in nonagricultural wage San Diego Counties) is illustrat- real estate market opportunities. ment is at about the rate of and salary employment as ed in Exhibit A in comparison From August 2007 until August demand growth. reported by public agencies has with a similar index based on 2009 (about the bottom of the There may be a light at the correlated closely with house- the 1990 recession. As indicat- decline in nonagricultural wage end of the tunnel. It is likely, and salary employ- however, that we are looking ment), total job base in into a fairly long tunnel. the six-County Southern During the 12 months ended California area August 2012, nonagricultural decreased by about wage and salary employment as 800,000 jobs. Recovery reported by the California since August 2009 Employment Development through August 2012 Department for the six-county has amounted to almost area grew by approximately 200,000 jobs. Currently, 158,000 jobs. This is a signifi- therefore, the total cant increase. Employment employment base is trends for California recently about 600,000 jobs have been outperforming the below the peak prior to general trends for the U.S. over- the onset of the current all. recession. Theoretically Employment growth over this amounts to an the 12 months ended August improvement in demand 2012 shows increases in most from the low point of sectors including construction. hold formation and, therefore, ed, employment declined more the cycle on the order of Of significant interest is the housing occupancy. in percentage terms in the cur- 135,000 dwelling units. increase in employment in the Employment growth is a good rent recession than it did two Concurrently, however, despite finance sector amounting to 9.2 thing for real estate markets. An decades ago, and the recovery modest new construction, percent of the overall job index of nonagricultural wage has been relatively feeble. approximately 140,000 new growth. Within that category, and salary employment for Those of us interested in the units have been added or are in employment in real estate-relat- Southern California as a whole High Desert real estate market, the pipeline to be added to the ed activities—rental and leas- (Ventura, Los Angeles, Orange, therefore, should have patience total housing stock in Southern continued on page 26 Business Brokerage Firms Serving the I.E. Listed Alphabetically
Company Name $ Sales Volume: # Offices I.E. # Agents I.E. Specialties Headquarters Top Local Executive Address YTD Sept. 2012 # Offices Total Year Founded Title City, State, Zip Year 2011 Phone/Fax E-Mail Address
Business Quest $4,000,000 1 4 Wholesale, Distribution, Rancho Cucamonga Edward L. Fixen 1. 9431 Haven Ave., Ste. 104 $3,500,000 1 2007 Manufacturing, Medical, President Rancho Cucamonga, CA 91730 Technology (909) 803-2296/(866) 381-7257 [email protected]
Century 21 Wright $145,010,960 1 55 Residential Real Estate, Land, Temecula Ruth & Jerry Wright 2. 30610 Rancho California Rd. $96,698,000 4 1992 Commercial Lease, Broker/Owner Temecula, CA 92591 Small Business Management Sales/Property (951) 694-5300/(951) 694-5401 [email protected] [email protected]
Professional Practice Sales $10,000,000 0 5 Practice Appraisals, Tustin Thomas M. Fitterer 3. 18410 Irvine Blvd. $10,000,000 3 1966 Practice Sales, President Tustin, CA 92780 Professional Business Sales (714) 832-0230/832-7858 [email protected]
Sunbelt of Coachella Valley $3,000,000 1 5 Business Brokerage for All Palm Desert Richard Smetana 4. 72-757 Fred Waring Dr., Ste.8 $2,500,000 250 2004 Types and Sizes of Businesses President/Broker Palm Desert, Ca 92260 & Professional Practices (760) 568-1511/773-0668 [email protected]
Sunbelt Business Brokers $1,693,000 1 7 Manufacturing, Distribution, Prof. Services, Cleveland D. Joe Atchinson 5. 9036 Pulsar Ct., Ste. J $3,523,000 212 2003 Food Services, Automotive, Daycare, President Corona, CA 92883 Gas Stations (951) 277-4002/277-4003 [email protected]
Note: All California Business For Sale provides business for sale information on their Web sites at www.allcalifbiz.com and www.bizben.com, or phone (925) 831-9225. N/A = Not Applicable WND - Would not Disclose na = not available. The information in the above list was obtained from the companies listed. To the best of our knowledge the information supplied is accurate as of press time. While every effort is made to ensure the accuracy and thoroughness of the list, omissions and typographical errors sometimes occur. Please send corrections or additions on company letterhead to: The Inland Empire Business Journal, P.O. Box 1979, Rancho Cucamonga, CA 91729-1979. Copyright 2012 by IEBJ. BUSINESS JOURNAL • PAGE 26 December 2012
other categories, total increase level of nonagricultural wage Real Estate... in nonagricultural wage and and salary employment in Budgetary... continued from pg. 25 salary employment over the 12 Ventura County declined slight- continued from pg. 12 ing, etc.—amounted to 4.9 per- month interval would have been ly during the 12 month interval. I’m not trying to minimize the cent of the 158,000 jobs above the long-term average for The pattern of housing one we face with the fiscal increase. The finance sector rep- Southern California as a whole development in Southern cliff. But not all deadlines are resents less than 6.0 percent of and job growth would have California derivative of building created equal, and some Southern California’s employ- exceeded the long-term average permit activity for 2011 is fairly become real only when cir- ment base. The real estate por- trend. consistent with the relative cumstances force the issue. tion of the finance sector When Harry Truman was growth in nonagricultural wage The first time the House voted amounts to about 2.0 percent of President, he was said to have and salary employment among on whether to rescue the the total base. These categories pushed for “one-handed econo- the five study areas (Riverside nation’s banking system in of employment, therefore, are mists” so that economists could and San Bernardino Counties 2008, for example, the rescue growing substantially faster avoid tempering their projec- are grouped together as the vehicle – the Troubled Asset than the general economy and tions by saying “on the other “Inland Empire”). A comparison Relief Program – was voted faster than their overall role in hand.” Similarly, we should of the percent of nonagricultural down. The Dow promptly the economy. point out that for the past sever- wage and salary employment dropped 777 points, its largest Employment in leisure and al years, employment estimates growth accounted for by each of one-day point decline ever, hospitality accounted for a sub- from government agencies have the five areas relative to the per- and the House passed TARP stantial portion of job growth been subject to revision and to cent of new units authorized by three days later. Similarly, we during the 12 months ended rather erratic behavior on a permit in each of the five areas hit the debt ceiling in May of August 2012, amounting to 23.3 month-to-month basis contribut- is shown below: 2011, but did not get an imme- percent of the increase. This sec- ing to some queasiness regard- The specific data indicate diate agreement from tor accounts for less than 12.0 ing the validity of the data. that San Bernardino County rep- Congress to raise it even percent of the total employment Since the recent employment resented 5.9 percent of the new though Standard & Poor’s, the base in the six-county area. figures have been so positive, units authorized during 2011 credit-rating agency, had Government employment however, until they are revised, and Riverside County for 13.3 already issued a negative out- grew little during the most we will continue to act like we percent. Riverside County’s look on the government’s cred- recent 12 months for which data fully trust their validity. housing market benefits from its it rating. Lawmakers didn't act are available, accounting for 2.2 In the most recent 12 month proximity to San Diego County, until 79 days later, on the eve percent of the net increase. data, the most significant which experienced the recession of the Treasury being unable to Overall, government employ- growth in nonagricultural wage sooner than the rest of Southern pay its bills. ment is about 15.0 percent of the and salary employment California and has been doing I think the current focus on total employment base in occurred in Los Angeles somewhat better than much of the fiscal-cliff “deadline” of the rest of Southern Jan. 1, 2013, is overdone. It is California. In addition, not a real deadline unless some Riverside County serves crisis, like a bad reaction by a national market for sec- the financial markets, makes it ond homes and retirees. one. The debt ceiling, by con- The trend of building trast, will present a real dead- permit activity for resi- line, although based on the dential development in 2011 experience, it may not be Southern California the day the ceiling is breached since 1985 is illustrated on paper but the day the gov- in Exhibit B. ernment really can’t pay its There has been a bills. We estimate the govern- modest increase in resi- ment will hit the debt ceiling dential building permit near the end of this year, but activity since 2009. Treasury officials have said Actual numbers of new they will be able to fund the units authorized by per- government into early 2013. mit since 1985 for Whatever the exact timing, Southern California this will be a significant lever- overall are summarized age point in the fiscal-cliff in Exhibit C. Projections negotiations. for full-year 2012 sug- gest building permit The Outlook activity for Southern My expectation is that we California will total will get our grand bargain on about 29,000 units. taxes and spending sometime Southern California. If govern- County, followed by San Diego Interestingly, this is roughly in 2013, although the political ment employment were to be County, Orange County, and the 14.0 percent of the level of brawling between then and increasing consistent with the Inland Empire, in that order. The continued on page 30 continued on page 31 December 2012 BUSINESS JOURNAL • PAGE 27
is leased to California Patio, Oversimplify and we set ourselves Real Estate Notes... Payless Shoes, Desert Gateway The Top 5... up for poor decision-making. continued from pg. 13 Dental Group and Mathis Brothers continued from pg. 19 Sleep Center. 3. “Everything is GREAT!” (Happy talk) Positioned at the highly trafficked intersection of the I-10 Project advocates would never get the ear of senior management Freeway at Monterey Avenue and Dinah Shore Drive, the property is without predicting optimistic outcomes. Politicians would never be part of the Desert Gateway Power Center, which covers more than 70 elected if they didn’t promise a sunny future. Optimism is ingrained acres of land. The center is anchored by Wal-Mart Super Center, in American culture. Attempts to confront it with reality are consis- Sam’s Club, Kohl’s Department Store, and Ashley Furniture. tently dismissed with the discussion-ending judgment of negativity. Alan Krueger, senior vice president investments, Kevin Boeve, But who wouldn’t rather think they are going to enjoy a positive vice president investments, and Kevin Le, associate in Marcus & future rather than pain, suffering, and gnashing of teeth? However, Millichap’s Ontario office, had the exclusive listing to market the due to unrealistic optimism, who hasn’t miscalculated how long it property on behalf of the seller, a limited liability company. will take to get to a destination? Who hasn’t underestimated the real cost of time and effort to reach a particular goal? The optimism bias MURRIETA INDUSTRIAL PARK ACQUIRED BY FROME shows up every time a company has to restate its earnings. Project- DEVELOPMENTS OMEGA cost overruns, delays, and benefit shortfalls result from this combina- Frome Developments Omega purchased an 82k-square-foot, tion of wishful thinking and the inability to recognize complexity. multi-tenant industrial park in Murrieta for $5.5 million ($67/sf). The Of course optimism is not a bad thing. It can stem from genuine property, which was built in 2006, is a five-building complex and is responsible confidence, and confidence may lead to bold, necessary, centrally located just east of the 15 and 215 Freeways. and effective action. But optimism without a foundation sunk into the The property is at 38340 Innovation Court, east of Winchester ground of reality is unstable and self-delusional. The optimism bias Road and just south of French Valley Airport. Built with recent insti- underestimates necessary contingent factors—as any insurance sales- tutional quality improvements, the industrial park, made up of 44 man would be happy to point out to you. units ranging from 1k square feet to 3.5k square feet, is in excellent condition and was over 85% occupied at the time of purchase. 4. “I can’t wait that long.” (The time factor) Rob Socci and Jack Faris of Voit Real Estate Services’Anaheim Given the choice, would you prefer to have $100 today or $300 office represented the buyer and the seller, a lender that had taken tomorrow? Most of us can defer immediate gratification and wait an ownership of the property after a loan default. Escrow closed within extra day for a significant monetary increase. However, studies show 45 days. if we have to wait one year for $300 or we can take $100 today, most Based in Costa Mesa, Frome Developments Omega owns and of us demonstrate what’s called present bias and go for the $100 right manages approximately 2 msf of multi-tenant business parks now. throughout Orange, Riverside, San Bernardino, and Los Angeles The perceived length of time to realize a benefit has a significant Counties. With this latest acquisition, Frome has acquired close to impact on our selection, so let’s change the time factor. Imagine you 300k square feet of multi-tenant industrial parks within the last 15 are given the choice between gaining $100 one year from today or months. $300 in one year and one day. Most people given such a choice can wait the extra day. Studies show that under similar conditions, as the CAMDEN PROPERTY TRUST CLOSES 469-UNIT time to realize the benefit is increased, the majority of us would INLAND EMPIREAPARTMENT BUY reverse our decisions. Without short-term reinforcement of long-term Landmark at Ontario Towne Center, a 469-unit multifamily com- goals, our objectives remain mirages and greatly affect our decision- munity located in Ontario, was purchased by a subsidiary of Camden making ability. Property Trust, one of the largest publicly traded multifamily compa- nies in the United States. The asset was 95% occupied at the time of 5. “According to my Magic 8-Ball…” (Magical thinking) the sale. “Mirror, mirror on the wall, who’s the fairest of them all?” The Landmark at Ontario Towne Center offers 15 modern floor plans evil queen in “Snow White” wanted to know about the future, and so averaging 982 square feet in size. Interior amenities include cherry do we. She had a magic mirror. We have educated guesses. While any wood finish cabinetry, nine foot ceilings, crown molding, trendy prediction about the future or how a decision will turn out is a guess, kitchens, French doors, washer/dryers and beautiful mountain, pool educated guesses are more likely than magical thinking to deliver and courtyard views. Landmark residents enjoy resort-style commu- results we want. However, we should be aware of our tendencies to nity amenities such as a relaxing pool area, modern clubhouse, inter- oversimplify, as we discussed, by focusing only on what we think is net café, executive business center, manicured putting green, chil- relevant. dren’s play area and dog park. Cognitive scientists call this bias anchoring. Once this anchor has Landmark is located within the master plan development known securely fixed itself in a crevice in the seabed of your mind, it’s not as Piemonte at Ontario Center. This 89-acre mixed-use urban center easy to shift. Then you interpret information based on this what-you- includes residential, business, entertainment, retail and restaurant think-is-relevant anchor. It gets worse. You ignore other possible rel- uses. Landmark is conveniently accessed from the 10 Freeway via evant factors. Not only are you focusing on wrong information, but the Haven Avenue exit north to 4th Street east, at the southeast cor- you’re ignoring information that could be vital to long-term success. ner of 4th Street and Duesenberg Drive. Falling prey to magical thinking and not testing your assumptions— CBRE’s Paul Runkle, senior vice president in the Ontario office; not anchoring—can capsize the whole enterprise. Tyler Anderson, vice chairman in the Phoenix office; and Laurie Lustig-Bower, executive vice president in the Beverly Hills office; It’s Never Too Late represented the seller, a fund advised by Prudential Real Estate If you’ve ever realized that a decision you made was less than Investors. The transaction value was not disclosed. stellar, don’t feel bad. It happens to us all. But by understanding the continued on page 30 top five things that get in the way of continued on page 37 BUSINESS JOURNAL • PAGE 28 December 2012
tem that would quickly displace less of who wins office. ther left. For the model, see Why I Despair... the established church as Obamacare will now go into Obama’s record on student continued from pg. 20 Britain’s national religion. (If effect, and Americans will soon loans. World. Compare Barack you question the believers’ zeal, feel entitled to its fruits. Those Economic gravity will pre- Obama’s entire oeuvre to a sin- take a look at the frenzied NHS who doubt that this will have a vail, as it always does, and it gle line from Thomas Jefferson worship at the Olympic opening deleterious effect on American will eventually yield another or Emma Lazarus or Frederick ceremony.) As Mark Steyn has republicanism have clearly conservative president. Indeed, Douglass—or even Ronald correctly observed, in Britain as never been bribed with their the nature of the two-party sys- Reagan. Does it stand up? Only elsewhere, the National Health own health care. Almost certain- tem all but guarantees it. But in a society that has lost touch Service paved the way for a ly, Obamacare will fail. And this won’t do much good in and with the ancient and is reflexive- “permanent left-of-center politi- then, as always, it will be of itself. The growth of the state ly in love with the new could cal culture” that obtains regard- replaced by something even fur- continued on page 39 such a man be considered to be an inspiration. And yet, he has now won twice. To paraphrase Oscar Wilde, to elect such a man once may be regarded as a misfor- tune, but to elect him twice looks like carelessness. (Or, rather, criminal negligence.) This year, certainly, was not the perfect storm of 2008. Then, novelty and redemption played a role; this time, an insipid bore ran on an openly statist platform and won the day in a country that is supposed to be “center right.” Maybe it no longer is. In 1980, when faced with a set of policies that demonstrably had- n’t worked and a president who wanted to take America left- ward, America chose a different path; in 2012, it doubled down. That says a lot about a people. The central problem, then, is not that Obama will be president for the next few years, but that the American people — knowing him — chose to reelect him. Even if this is put down to a fail- ure of Romney’s turnout opera- tion or Hurricane Sandy or Obama’s brilliant targeting, it does not say much for their commitment to classical liberal- ism that a significant group of Americans stayed away from the fight because they didn’t like Mitt Romney. That this was not a clear-cut repudiation of the president should sound the alarm. Many had hoped that Tuesday would be 1980 revisit- ed. It was not. Instead, in its effects at least, it was more like 1945 in Britain, in which year the Labour party was elected and began to put into place the foundations of a government- owned and -run health-care sys- December 2012 BUSINESS JOURNAL • PAGE 29
money, develop a customer base, create as many as 400,000 jobs that No Money, No... and build momentum. Then you can Listening for... will last for at least two years and continued from pg. 16 start funding a production facility if continued from pg. 14 avoid future catastrophes. One-third you so desire. Just remember that oversight is critical—anything you of this expenditure (i.e., $13 billion) will immediately be returned to outsource will ultimately bear your company’s name, so never com- the federal and state governments via income taxes. The balance will promise on quality. be rotated through the economy as workers spend on food, housing, “With outsourcing, you usually pay only when the product is pro- clothing, and other consumer goods. The net cost to the deficit will duced—and produced to your quality specs,” confirms Houlihan. be zero.” “Remember our laundry room? Well, it was only an office—a com- Alternative funding methods are repeatedly ignored or avoid- mand center, if you will. Bonnie and I outsourced wine production, ed. To date, many public-private partnerships in the U.S. have been bottling, and manufacturing the logo that went on the bottles. If we’d quickly quashed by a combination of lobby interests and government had to pay for all of that space, equipment, and manpower up-front, concern that the deals will unfairly favor the private sector. we would never have gotten Barefoot off the ground.” For example, in 2008, the Pennsylvania legislature derailed Use “worthy cause marketing” to advertise your product or efforts by a consortium of private investors to pay the state $12.8 bil- service. No matter how unique or useful or amazing your product is, lion for a 75-year lease to manage the Pennsylvania Turnpike. A your company will never succeed unless potential customers know report by the Pew Center on that failed transaction found that causes you exist. In other words, you need to advertise. This, says Houlihan, ranged from a lack of coordination between the executive and legisla- is one area in which he and Harvey “stumbled” into a stroke of tive branches of state government, overly optimistic financial genius. In a nutshell, since Barefoot didn’t have the budget for tradi- assumptions, and the lack of a “clearly articulated plan for how the tional marketing, they spread the word about their wines by partner- proceeds would have been invested and spent.” ing with nonprofit organizations (NPOs). “We must take the right precautions in pursuing public-private “Specifically, we sought out organizations that believed in caus- partnerships (P3s),” says LePatner. “But they are options that should es close to our own hearts—environmentalism, civil rights, educa- be on the table. For example, we will have to ensure that there is a tion, the arts, and more,” explains Houlihan. “In this way, we gained balance of competing governmental and private profit-seeking inter- access to huge numbers of potential customers and gave them a ests in P3 projects. We will also need to ensure that the proper finan- ‘social reason’ to buy Barefoot wine. cial advisors are sitting on the side of state and federal officials to bal- “When Barefoot Wine was starting out, Bonnie and I donated ance out the experts who advise these private investors. By taking the wine and manpower at our partner NPOs’ events,” he recalls. “We right steps, we can devise several workable models to use P3s to were able to help the NPOs, talk up our product, and conduct market improve the nation’s infrastructure while still protecting the traveling research by talking to attendees. We also recognized the NPOs on our public from excessive toll rates and ensuring that the interests of website and publications, and vice versa. It was very much a grass- truckers, railroads, union workers, and the towns and cities along roots effort, and because we worked hard, had fun, and believed in those routes are fairly heard and balanced into the equation.” what we were doing, it paid off for us and our partner NPOs. “Right now, our nation’s leaders are not leading,” says LePatner. “Consider adopting this strategy for yourself,” he suggests. “Start “They are not looking down the road to a brighter future. Instead, by seeking out NPOs—small, local ones are best—that resonate with they are consistently ‘kicking the can’ down a brutally congested you and your product.” road, pockmarked with potholes and connected by bridges that are Trade the goods and services you have for goods and services unsafe for the traveling public. Their silence on this important issue you need. If you think that bartering is a thing of the past, think is deafening. And yet, even in the din of the voices screaming for again! When you look in the right places, you’ll find that there are their next political campaign contribution and posing for a photo opp, still many entrepreneurs and companies that are willing to accept there is a whispering sound, ‘Drop by drop comes wisdom by the goods and/or services in lieu of a cash payment. Many start-ups awful grace of God.’” besides yours, especially in their early days, will actually prefer this option to spending money, just the way you do. For more information, please visit www.TooBigToFall.com and “Find other start-ups that have what you need and need what you www.BarryLePatner.com. have,” recommends Houlihan. “Specifically, a good place to start might be any suppliers that are also start-ups. They are cash-strapped Barefoot’s relationship with our bottle supplier in the early days like you and probably need to spend money they don’t have. Find out stands out to me in particular. They extended highly unbank-like what they need and see if it’s something you can provide. Perhaps credit extensions to us many times. I explained that I could either pay your product is something their supplier needs. what we owed now and not have any money left over to grow, or I “If your own inquiries don’t yield any results, there are many could wait to pay and continue to grow. The glass company recog- barter companies that specialize in these kind of trades,” he adds. nized that everyone would benefit more in the long term if Barefoot “The main thing is to remember that your product can be valuable to was allowed to grow now, and they always extended the credit we someone who is willing to trade to get it. Just be sure that any trade needed. you make is legal, and realize that there can be tax consequences.” “One last thing: Make sure to never give your suppliers a reason Forge strategic growth alliances with suppliers. This one to doubt your goodwill or integrity,” he adds. “Call them as soon as comes down to plain old common sense: There are no drawbacks and you know you will be unable to pay on time, and give them a work- many advantages to having a good relationship with your suppliers. able payment plan. They have bills to pay too and will appreciate a Remember, as your company grows, you’ll become a bigger and big- timely heads up. As a matter of fact, that’s exactly the kind of cus- ger customer, which in turn will help your supplier to succeed. tomer they want long term.” “It never hurts to remind your suppliers of this fact,” points out Give discounts for cash and large volume purchases. This Houlihan. “And when you’re on good footing with them, you’ll find strategy, says Houlihan, is another win-win proposition. Start by that they’re willing to help you by providing special discounts and offering retailers a discount if they’ll pay cash for your product, or if extending your credit because they like the way you pay your bills. they purchase a large quantity. Right continued on page 38 BUSINESS JOURNAL • PAGE 30 December 2012
cent of that level at about 30,000 of residential building permit Real Estate... units a year. activity on the High Desert. At Real Estate Notes... continued from pg. 26 Although the 1980’s reces- the peak of activity, more than continued from pg. 27 building permit activity sion had the special features of 8,000 units a year were being 300-SQUARE-FOOT observed in 1986 when extraordinarily high inflation authorized by permit. Recently, INLAND EMPIRE POWER Southern California was emerg- and interest rates, the recovery as shown in Exhibit E, overall CENTER HITS THE ing from the 1980 recession. It from the current recession has residential building permit MARKET is also interesting to note that been minimal, suggesting that activity has been on the order of Foothill Crossing, a 312.3k- during 1985—at the end of the economic growth that occurred less than 250 units per year in square-foot regional power cen- 1980’s recession—building per- during the 1980s supported a 2011 and likely to be substan- ter in Rancho Cucamonga, has mit activity in Southern strengthening housing and real tially less than 1,000 new units been listed for sale with an ask- California totaled nearly estate market, while the tepid for 2012. ing price of $60 million. The 150,000 new units, while cur- economic growth observed cur- The figures in Exhibit E are property, located at 12181- influenced substantially 12357 Foothill Boulevard, just by 205 multi-family units west of I-15, is being marketed authorized by permit in by Jeff Conover of Faris Lee Victorville. Absent this Investments on behalf of the atypical level of activity seller, Foothill Crossing LLC. in multi-family housing The property is 98 percent construction, overall occupied and is comprised of a building permit activity strong national credit tenant on the High Desert would lineup anchored by Sears probably be on the order Grand, Total Wine & More, and of 350 units for the full Office Depot. The center draws year, or less than 4.0 per- from a market area of approxi- cent of the more than mately one million people with- 8,000 new units author- in a 10-mile radius. ized in 2005. Built in 2004 and 2006, the Based on the average property sits on just over 31 building permit value per acres and is located across from unit, much of the new Victoria Gardens, a 1.5m- construction of single- square-foot lifestyle mall family housing on the anchored by Macy’s, JCPenney, High Desert recently has AMC Theaters, and Bass Pro apparently been custom Shops, and is one of the top per- homes. This is not a prod- forming retail centers in uct that lends itself to California, providing excellent high-volume activity. tenant synergy and strong Much of the real estate crossover shopping. activity observed recent- Foothill Crossing also bene- ly has been of a qualita- fits from unobstructed retail tive nature—purchase of frontage of nearly a half-mile distressed assets that lend along Interstate 15, and approx- themselves to be imately 1,600 feet of frontage reworked for enhanced along Foothill Boulevard. The value. The whole process average household income is in of flipping foreclosures excess of $89,000 within a five- has attracted increasing mile radius. levels of interest on the “This center offers an part of real estate profes- investor a high 8.26 percent sionals who have limited cash-on-cash return starting opportunities in tract day-one of ownership,” said developments, land enti- Conover. “The intrinsic value of tlement, or other large- the prime Southern California scale endeavors which real estate located off a major typify opportunities in a freeway on/off ramp in a highly strong market. Although populated retail corridor and interest rates are at record pricing below replacement cost lows—a factor which of $192 per square foot makes rently in 2012, approximately rently has obviously not resulted should encourage real estate this a secure and stable owner- three years after the bottom of in similar real estate sector development or real estate ship opportunity that that offers the current recession, building activity. investment—uncertainty associ- passive returns year over year.” permit activity is only 20.0 per- Exhibit D shows the pattern continued on page 35 December 2012 BUSINESS JOURNAL • PAGE 31
Supreme Court upheld the legisla- zero in the larger structures. In the Barstow City... tion that effectively dissolved rede- The Demand... town of Apple Valley there was no continued from pg. 15 velopment agencies throughout the continued from pg. 21 vacancy in the larger buildings but state. However, in Barstow, the city had created contingency plans the rate for the smaller buildings was 8.2%. The smaller buildings in over a year ago in anticipation that redevelopment agencies could be the city of Adelanto had a vacancy rate of 3.1% while the larger eliminated. The strategy that the city developed was focused on buildings had no vacancy. The vacancy rate for smaller buildings in developing enough capacity within the General Fund to absorb nec- the city of Hesperia was 3.6% compared to 11.6% for larger build- essary RDA expenses. For example, several employee positions that ings. For an area the size of the High Desert the stabilized vacancy were previously paid for with redevelopment monies were transi- rate is approximately 5% so long as the demand for industrial space tioned to General Fund roles as part the FY 11/12 Budget. In addi- is expanding. tion, a new cost allocation formula that was instituted with the budg- From January 2011 through June 2012 the High Desert experi- et called for the RDA to pay for fewer General Fund expenses than in enced a net absorption of 1,281,000 SF. SCLA accounted for prior years. When the Supreme Court ruled that redevelopment agen- 1,067,000 SF, of which 1,113,000 SF was in the larger industrial cies in California were to be dissolved, the city of Barstow was ready buildings. The city of Adelanto gained almost 121,000 SF in indus- to address the situation. While the dissolution of the RDA does cre- trial demand; all of which was associated with smaller buildings. ate a financial impact on the city, overall, the elimination of redevel- During the same period, the town of Apple Valley had a net absorp- opment will not require any reductions or modifications to the city’s tion of 25,000 SF, somewhat evenly split between smaller and larger current operations. sized buildings. The city of Hesperia absorbed over 94,000 SF; in spite of the fact that there was a slight decrease in occupancy in the Fort Irwin Projects larger buildings. The city of Barstow experienced a decline in indus- Fort Irwin and the United States Military have made a concerted trial occupancy of approximately 54,000 SF, all in larger buildings, effort to involve the local community in a variety of currently while the non SCLA portion of the city of Victorville recorded 27,000 planned projects. While there are numerous improvements being SF of positive absorption. coordinated by Fort Irwin, the two most significant initiatives include the construction of a $100 million water treatment plant and a $400 Budgetary... now may be unpleasant to watch. million hospital facility. These two projects, which will total an Make no mistake, this is a colossal continued from pg. 26 investment of over half a billion dollars in the greater Barstow area, negotiation, and the parties are scheduled to break ground within the next year and are both involved will deploy all the strategies and tactics at their dispos- scheduled for completion in 2015. al, including, among other things, anchoring, currency creation, While the overall economic situation is still challenging, the cur- and time management. Since the election, we have already seen rent projects in the Barstow area illustrate that: negotiators trying to establish anchoring points, or places from • Barstow is strategically situated midway between Los which to start discussions. We have seen them trying to create cur- Angeles and Las Vegas. rency, or something they can trade in exchange for what they want • Barstow is a major transportation corridor that serves more out of a deal. Undoubtedly they will soon be posturing on time, than 60 million travelers and 19 million vehicles each year. too, in a bid to put pressure on their opponents. • Barstow is where the Interstates 15 & 40 and Highways 58 & Because of the complexity of these negotiations, it is difficult 247 all converge. to predict what the exact outcome will be, including how badly • Barstow is home to the Tanger Outlets and Barstow Outlets, the spending cuts will really impact the economy if they are which provide shopping options that are usually only found in met- allowed to go through. The Congressional Budget Office, which is ropolitan areas. the official evaluator of policy, has projected that if all the fiscal • Barstow is where an eclectic mix of railroad, military, high tightening takes effect as scheduled, inflation-adjusted GDP will technology, and mining employers have located. contract by 0.5 percentage in 2013. That figure assumes an eco- • Barstow is home to a vibrant and caring community. nomic decline in the first half of the year, followed by renewed • Barstow is positioned to be the next big thing in the High growth at a modest pace later in the year. The first-half contrac- Desert. tion of the economy would push the unemployment rate up to • Barstow is at the crossroads of opportunity… where the best 9.1% by the fourth quarter of the year. (It was 7.9% last month.) is yet to come. After next year, the CBO estimates, economic growth would pick up and the labor market would strengthen, returning economic Any individual who would like to learn more about all that output to its potential level and shrinking the unemployment rate Barstow has to offer is encouraged to visit the city’s website at to 5.5% by 2018. www.barstowca.org or to contact Oliver Chi, assistant city manager, Well, that doesn’t sound so bad if the alternative is continuing via email at [email protected] or by telephone at (760) 577-4510. on the path to becoming Greece, which is suffering through disas- trous debt problems. It almost sounds more like a fiscal bump than a fiscal cliff. Some in Congress may conclude that it would be bet- Inland Empire Business Journal ter to go that way than to continue toward a Greek tragedy. Subscribe for Only $24.00 Willingness to go down the fiscal-bump path would give them a lot of leverage in negotiating a better plan. Undoubtedly there are Print Subscription Includes: some in both parties who see it that way, though I don’t know how • 12 monthly issues • Exclusive monthly e-newsletter many. • The popular “Lists” in each issue, special industry reports, Meanwhile, what about the impact of our current political restaurant reviews, executive time out, and much more disharmony? As I’ve noted, policy uncertainty is already holding Also Available, the Digital 2012 Book of Lists back our economy. Economists at the Federal Reserve Bank of Subscribe today! Call 909.605.8800 or visit www.busjournal.com San Francisco believe that without continued on page 33 BUSINESS JOURNAL • PAGE 32 December 2012
tomer community of middle-class sor Eric von Hippel has coined the term “lead users” to describe The End of... (law-abiding) customers that mor- them, and worked with 3M’s healthcare business to develop a system continued from pg. 7 phed into today’s famous million- for finding them. The result was an eightfold improvement in rev- person HOGs (Harley Owners Group). Today, Harley-Davidson enues from innovations developed with the help of such customers HOGs, far from being outlaws, position themselves as family: the vs. innovations developed by 3M’s ordinary, internally developed brothers (and now sisters) you never had. process. It’s not just sexy products like Harleys (and iPads) that can create “What makes this particularly significant, of course, is that 3M’s large communities of customers—which in turn attract large numbers product developers are among the most innovative in the world,” of buyers. One of the most successful customer communities is says Lee. Procter & Gamble’s BeingGirl community of teenage girls, formed Help customers build social capital. Why do customers engage around, of all things, feminine care products. so enthusiastically in helping companies develop, market, and sell “The key to forming customer communities is not to try to build their products—in effect, growing their businesses? Many pundits them around your brand—a common and obvious mistake marketing think you need an incredibly sexy product like an iAnything devel- departments make,” notes Lee. “Rather, ask, ‘What does our product oped by a once-in-a-century genius like Steve Jobs. But that misses or service mean to our customers?’ Or, ‘What could they mean?’ the point: All it takes is a business that changes customers’ lives for P&G realized that its feminine care products could symbolize the dif- the better—which is something far more replicable—even if you’re ficult, scary, exciting transition its teenage customers are making into making feminine hygiene products. becoming young women.” What all these companies—and others that Lee features in his Get customers involved in the solution. When toy maker LEGO book—do is help customers build their social capital by helping them launched its robotics building-block kits, Mindstorms, a few years affiliate with their peers in customer communities, build their status ago, hackers almost immediately started altering the code to allow and reputation, and learn and grow in the process. Often, they also the robots to do more. In circumstances like this, most firms call their include service to a larger purpose. legal departments and start issuing cease and desist demands. Indeed, “Enterprise software maker SAS Canada, for example, addressed faced with a similar response when it issued a comparable line of an unexpected decline in its customer retention rates by engaging toys, Sony did just that. But LEGO took a smarter approach, says some of its leading customers, called ‘Customer Champions,’ in the Lee. effort to hold on to customers and bring the defectors back,” notes “Basically, LEGO executives did the math,” he explains. “One Lee. “The Customer Champions organized live forums in more than thousand or so hackers—or more to the point, enthused and techni- 20 major markets around the country, presented and brought in local cally advanced customers—were coming up with robots that could speakers, contributed to an e-newsletter that SAS started, and more. do amazing things that the firm’s seven internal developers had never The result was to completely restore the firm’s retention rates to its thought of. One of the hacker-created robots could solve a Rubik’s previous high levels. cube. As they—and their other customers—realized the value the “Why did the Customer Champions put forth such an effort?” he hackers were creating, LEGO further embraced them. Now its cus- adds. “Because it gave them a chance to affiliate more deeply with tomer community numbers in the tens of thousands and continues to their peers—other software managers and engineers. It gave them a develop amazing arrays of robotic toys—far beyond anything the chance to play a leadership role in their peer community. It gave them company might have developed on its own.” substantial status and recognition as well. And of course, it increased Meanwhile, 3M and other companies are systematizing cus- their knowledge and expertise by more deeply understanding how to tomer-led innovation. Rather than wait passively for customers to address the needs of other SAS customers.” begin altering or hacking their products, they’ve learned how to If you think all of this sounds more appealing than the old manip- proactively pursue and find customers, or “users,” who would be ulate-them-into-buying techniques, you’re not alone, says Lee. most likely to come up with breakthrough innovations. MIT profes- “When companies commit to continued on page 37 December 2012 BUSINESS JOURNAL • PAGE 33 High Desert Report - A Quarterly all the policy uncertainty we’ve Budgetary... had, unemployment would be Economic Overview continued from pg. 31 about 2 percentage points lower right now. Town of Apple Valley City Update Business investment, which normally contributes strongly in a By Orlando Acevedo, Economic Development recovery, would likely be stronger, too. It has averaged zero this Manager year, in part because small businesses, which account for virtual- ly all of the net job growth in the economy, have been hunkered Get a Slice down. Their mood is reflected in that a very small percentage of The town of Apple Valley continues to carry forward its econom- small businesses surveyed by the National Federation of ic development objectives. A team led by Town Manager Frank Independent Business think this is a good time to expand. Robinson recently exhibited an Apple Valley booth and marketed a It seems pretty clear that the only real path to a stronger econ- number of available commercial properties at the International omy is to get some policy clarity. Again, we can only hope Council of Shopping Centers retail conference in San Diego. The list Washington gets fixed in 2013 what it couldn't get fixed in 2010, of hot properties included a 40,000-square-foot former Ralphs’ gro- 2011 or 2012. cery store in the geographic and civic center of town; the Fountains at Quail Ridge, a planned mixed-use center at a major intersection About Inland Empire by the along the Yucca Loma Bridge Corridor; and, finally, a prime 4,300- Inland Empire Financial square-foot restaurant on a 47,000 square foot site, for lease at the Consultants most successful non-freeway intersection in the region, at Bear Thrivent Financial is repre- Valley and Apple Valley roads. sented in the Inland Empire by Proving the local retail market is rebounding, Jess Ranch the Inland Empire Financial Marketplace recently confirmed the regional commercial center has Consultants, which includes Bill attracted the high desert’s first Ulta, a beauty retailer with nearly 500 Cortus at 3333 Concours St., stores nationwide. The 10,000-square-foot store will open adjacent to Building 8, Suite 8100, Ontario, Best Buy, Bed Bath and Beyond, Cinemark Theaters, and 24 Hour CA 91872, phone: 909-945- Fitness and will feature skin and hair care, cosmetics, fragrances, and 4996, website: a full-service salon. In addition, a new Denny’s restaurant will soon www.thrivent.com/plg/inlandem- open adjacent to Red Robin. Dollar General recently held its grand pire. CA Insurance ID #0D96803 opening, one of the first seven to open in California, in a neighbor- hood lacking grocery and general merchandise stores. As Walmart Supercenters open around the High Desert, a court www.BergmanWindowWashing.com challenge still remains regarding Apple Valley’s approved store. Although a firm start date has not been set, the store is expected to When Planning Your 2013 Advertising open in 2013 on Dale Evans Parkway directly across from Lewis Budget, Consider... Retail Center’s Apple Valley Commons, anchored by Super Target. Randall Lewis, EVP of sales and marketing, 31 recently interviewed THE in Globe Street, said of the close proximity of these two retailers, “It’s definitely a positive because it will bring more retail (critical INLAND EMPIRE mass) to the intersection, and we expect that it will also attract new customers from some of the outlying areas of the High Desert, such BUSINESS JOURNAL as Barstow, which should help create new tenant interest in Apple Valley Commons from those retailers looking for a more regional draw. As a side note, this is also a relocation of an existing Walmart that is currently across the street from our center.” During the last seven years the town attracted more than 3.5 mil- lion square feet of new retail, created by leading development com- panies, including Lewis Retail Centers and Malcom Riley and Associates. Most recently, Apple Valley has seen eight consecutive quarters of sales tax revenue growth and since July 2011 issued 110 certificates of occupancy for new establishments, improvements, and expansions.
Yucca Loma Bridge While the dissolution of redevelopment agencies in California was a potential roadblock to this key piece of the High Desert region- al transportation plan, Apple Valley was successful in keeping the funding intact. Although some details remain to be finalized with state and county agencies, the town expects to award the contract for construction management in October 2012. The next steps will be the approval and issuance of bid documents. For Advertising Information Call (909) 605-8800 Once under construction, the $31 million dollar Yucca Loma or visit www.busjournal.com Bridge over the Mojave River will continued on page 37 BUSINESS JOURNAL • PAGE 34 December 2012
RESTAURANTRESTAURANT REVIEW REVIEW Waffles Are the New Buns By Ashley Bennett (Inland Empire Weekly) Bruxie reinvents the waffle can call our own is in Chino ern-day Coca-Cola should when Seuss-lovers). Don’t worry; the and there’s no way you’ll be Hills, now operating in what I watch the company’s ham is still pink like it should able to pick just one. used to be a Johnny Rockets. Christmas commercials. Add a be. The light, unsweetend waffle You can eat a breakfast bis- The only thing shared between scoop of Bruxie’s exclusive holds its crunch pretty well cuit or dainty lemon tart in its the two franchises is the recreat- Wisconsin Frozen Custard and against the thin pesto sauce and regular form but there’s a world ed memories to diners of old. you get an equally sweet float. sogginess won’t set in because of difference when waffles While Johnny Rockets forced its Bruxie’s food menu on the everything will be eaten way replace the buns and biscuits of employees to dress like ’50s other hand mixes the old with before it gets the chance. an otherwise normal meal. busboys, Bruxie brings you the new. While drinks send you Even more exciting than re- Bruxie has promoted the waffle back solely with the taste. Back back in time, the main dishes imagined breakfast waffles are from its previously limited before Coke and Pepsi were will force you into a waffle-lov- the desserts. Honestly, dessert career as a breakfast item mainstream, a simple “cola” ing future. I was lucky enough will always blow everything soaked with maple syrup. While would successfully quench your to get to try a bit of Bruxie’s else out of the water. The Lemon we hate to admit that the idea thirst. Now you take gulp of a breakfast, lunch, dinner and Cream & Berries is a tantaliz- originated outside of the IE in carbonated drink today and dessert inspirations prior to its ingly tart waffle dish. I’d cave Old Town Orange, the illuminat- you’re rewarded only with a lin- grand opening. One the for a Nutella and Bananas or ed culinary greatness of gourmet gering and unpleasant aftertaste. strongest of the group is the S’mores Bruxie any day but the waffle griddling goes to none To solve this problem, Bruxie Green Eggs and Ham with a Lemon Cream Bruxie is more other than Dean Simon and hires local artisans to make Old bright green arugula pesto sauce than just a sideline dessert. Kelly Mullarney. Is the use of Fashioned Pure Cane Sugar covering the top of a jumbo- Described as housing an waffles in place of bread a sign Sodas in the flavors of cola, diet sized egg and beneath that, a “intense lemon cream,” from the of the apocalypse? If it is, who cola, orange, lemon-lime, vanil- few thick slices of cooked ham first bite to the last you’ll taste a cares; these waffle sandwiches la cream, root beer and a current (is a throwback to generations of continued on page 39 are addicting. new addition, grape. Bruxie’s The Bruxie location that we cola tastes how I imagine mod-
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Tour the Historic Winery weekends from 2:00 pm to 4:00 pm or by appointment Listed in the National Register of Historical Places December 2012 BUSINESS JOURNAL • PAGE 35 Brand You Sponsorship is a Business Expense— By Ruben Estrada Charity is a Philanthropic Initiative Sounds simple doesn’t it? The trouble is that often when we However, it’s good to let your sponsor know how funding your look at our branding strategy we put our products and our service charity will help their business. in front of us. Ultimately, of course, the product or the service is what our customers receive. 1. Cause-Related Marketing Benefit Social responsibility is But a lot of companies offer similar products and services. really social opportunity. People like to buy from companies that Do you really want to brand your product or your service or give back to their communities. Do your research because sponsors should you be branding you? Here is a great example. Think have different approaches to philanthropy. Some companies do only about Nike. Think about their brand. Ask yourself, what is a one yearly charity event and others build their charitable partners into Nike? It is certainly not the name of a product or a service, but every part of their company DNA. their brand has become one of the most recognizable in the world. We know from the brand that they sell sports clothing and 2. Promotional Opportunities The sponsor can do promo- equipment. Obviously, they’ve done a good job branding Nike. tions with your charity by selling specific items to raise money, spot- Here’s a tip: Look again at your Branding Strategy. Are the lighting your charity on their Internet, social campaigns and market- image and language you use focused on your products and serv- ing. In turn, your charity can also promote the sponsor to your fol- ices, or are you branding you? Take a fresh look at the messages lowers and donors. you’re sending out through your e-mails, pushing out through your marketing collateral, even what your sales people might be 3. Strategic Alliances Sponsors can introduce your charity to saying. Make sure that what your customers hear leaves them key players in funding and you can introduce the sponsor to influen- knowing you. If they know you, they will have no trouble tial people in your industry. remembering what it is you do and what you sell.
estate decisions particularly dif- Community Reinvestment Act with lower interest rates and Real Estate... ficult, even for those intrepid and encouragement of Fanny more moderate-priced housing. continued from pg. 30 individuals who somehow chose Mae and Freddie Mac, we Significant portions of the hous- ated with the tax environment, to make their living in this field. induced marginal buyers into ing market (which is the largest the risk of a double-dip reces- One thing that makes this real estate ownership prior to the proportion of the real estate sion, and general unease about recession different from previ- recession. The reservoir of pent- market) have been overexploit- an uncertain fiscal policy in ous ones is that heretofore we up demand represented by ed because of the interference of light of the potentially inflation- generally relied on the housing potential first-time homebuyers government policy, making this ary impact of the current mone- market to lead the country into was severely eroded and is not recession atypical relative to tary policy contribute to an aura an economic recovery. Because readily available to stimulate an past experience. Basically, we of uncertainty that makes real of efforts through the economic recovery associated have already shot that arrow and no longer have it in our quiver. This implies that the recovery is likely to continue to be slow, and that the real estate market will not begin to be vibrant for quite some time. Opportunities, there- fore, will continue to be in rearranging real estate assets better to conform to the demand profile or exploiting market imperfections associ- ated with limited understanding of the characteristics of demand and supply for real estate prod- uct. Raw demand is not likely to drive a strong real estate market for a number of years. BUSINESS JOURNAL • PAGE 36 December 2012
MANAGER’SMANAGER’S BOOKSHELFBOOKSHELF “Into the Storm: Lessons in focus on the winning scenario “Strategy #10: Never give “Strategy #4: Build a gung- up—there’s always another Teamwork From the Treacherous ho culture of learning and move” innovation As a final point, Perkins Sydney to Hobart Ocean Race,” “Strategy #5: Be willing to looks at the role of the team By Dennis N.T. Perkins with Jillian B. Murphy; sail into the storm leader. It’s short and sweet, but AMACOM, New York, New York; “Strategy #6: Cut through equally important: “The leader the noise of the wind and the needs to set the example.” 2012; 272 pages; $24.95. waves There are many books on A truly unusual book about deaths, and missing boats, “Strategy #7: Find ways to building teamwork, but very business, “Into the Storm” author Perkins concentrated on share the helm are as interesting and as effec- offers the team-building les- how skipper Ed Psaltis sur- “Strategy #8: Step up to tive as “Into The Storm.” It’s a sons that can be learned from vived and won. The result is conflict—and deal with the banquet of ideas for the price wind-powered yacht racing, in that his book is primarily things that slow you down of a good lunch. this case the 1998 race from divided into parts. The first “Strategy #9: Master the art Sydney, Australia to Hobart, half is a very fine adventure of rapid recovery -Henry Holtzman Tasmania. This race has always tale that also explains how been a difficult one. Although Psaltis put his team of six this race had earned the nick- together so that they survived Best-selling Business Books name of the “Mt. Everest of an incredibly destructive storm boat racing” early in its history, to become Overall Winners. Here are the current top 10 best-selling books for business. The list is the 1998 race gave the nick- The second part of the book compiled based on information received from retail bookstores name new and deadly meaning. concentrates on how wise lead- throughout the U.S.A. Author Dennis Perkins points ers put teams together and out why quite clearly: assure that they work together 1. “The Energy Bus: 10 Rules to Fuel Your Life, Work, and Team “The 1998…Race proved no matter how difficult a situa- with Positive Energy,” by Jon Gordon (John Wiley & to be the most perilous in the tion may be. Sons…$21.95)(1)* event’s 65 year history. As the Surprisingly, this second How to motivate individuals and build them into successful teams. fleet sailed down the coast of section takes a thorough look 2. “Clients First: The Two Word Miracle,” by Joseph and JoAnn Australia, boats were hit by an at several factors, including the Callaway (John Wiley & Sons…$21.95)(4) unexpected weather bomb—a one everyone thinks of first: Why and how to putting your clients first helps build success. by Greg Smith (Grand Central massive storm that created 80- the “flipping coins” factor: 3. “Why I left Goldman Sachs,” Publishing…$27.99)(6) foot waves and 92- pure luck. The author puts this The reasons why a top manager resigned from a leading firm. (6) knot…winds.” way: 4. “Reverse Innovation: Create Far From Home, Win While many crews tried to “To win…in a hurricane, Everywhere,” by Vijay Govindarajan and Chris Trimble (Harvard maneuver around the storm, the team would have had to flip Business Review Press…$30.00)(2) the 35-foot AFR Midnight those coins for 700 miles in How to make innovation happen in emerging markets. Rambler chose to head directly Force 12 hurricane conditions. 5. “Bailout: An Inside Account of How Washington Abandoned into its path. After battling And they would have to keep Main Street While Rescuing Wall Street,” by Neil Barofsky (Free mountainous waves and hurri- winning the coin toss for a Press…$26.00)(3) cane force winds in the Bass decade. In any particular race, How and why TARP saved banks while abandoning everyone else. Straight, the tiny boat arrived of course, there is an element 6. “Three Simple Steps: A Map to Success in Business and Life,” in Hobart, three days and six- of chance, and other boats were by Trevor Blake (BenBella Books…$12.95)(3) teen hours later. close competitors….But it is Why some people succeed in any economic conditions. “Their decision to head into this sustained record of success 7. “Leading Culture Change in Global Organizations: Aligning the eye of the storm—along in difference racing conditions Culture and Strategy,” by Daniel Denison, Robert Hooijberg, with extraordinary tenacity, and different time periods that Nancy Lane, and Colleen Lief (John Wiley & Sons…$34.95)(9) optimism, courage, and team- gives me confidence that they How and why business culture impacts on business performance. by Colin Powell work—enabled this crew of are doing much more than cap- 8. “It Worked for Me in Life and Leadership,” (with Tony Koltz)(HarperCollins Publishers…$27.99)(8) amateur sailors to beat profes- italizing on chance.” How to succeed in the workplace and elsewhere. sionals on much larger and bet- In Part Two of the book, 9. “Unintended Consequences: Why Everything You’ve Been told ter financed boats. The skipper, Perkins elaborates on 10 strate- About the Economy is Wrong,” by Edward Conard (Penguin Ed Psaltis, and his crew of six gies that are essential to devel- Group…$27.95)(8) were proclaimed the Overall oping effective teams. These An explanation why economic planning rarely works as planned. Winners and awarded the cov- are: 10. “Steve Jobs,” by Walter Isaacson (Simon & eted Tattersall’s Cup. They “Strategy #1: Make the Schuster…$35.00)(10) were the smallest boat in 10 team the rock star The story of a modern Thomas Edison. years to win the race.” “Strategy #2: Remove all ______While nearly everyone else excuses for failure *(1) -- Indicates a book’s previous position on the list. focused on the storm, the “Strategy #3: Find and ** -- Indicates a book’s first appearance on the list. December 2012 BUSINESS JOURNAL • PAGE 37 California Is... Duct Tape... Ways to... Victorville... continued from pg. 20 continued from pg. 10 continued from pg. 18 continued from pg. 6 billions of dollars from compa- would you? ee, you protect the majority of the former site of Gottschalks in nies under the guise of “Cap & If I want to build a house, those that are performing well 2013. Trade.” And what are they going I'm going to call a guy who from a smaller group that could Southern California to do with all this new-found builds houses, not a guy who persuade them to lower per- Logistics Airport money? Are they going to pay paints them. formance across the board or Southern California down the deficit or restore K-12 So, when is it time to distract the higher performers. Logistics Airport continues to funds? No. Instead, the redesign? If your site isn’t sell- Picture yourself three to six grow as the largest develop- Governor just signed AB1532, ing, it’s possible that tweaking months from now after experi- ment project in the region. removing all constraint on how the content, navigational tools menting with these three recom- Several tenants have extended those funds can be used. No or other elements will help. But mendations. Not only will you their lease agreements to constraint. That describes the before you decide a paint job is have a plan for all performers remain in Victorville, including legislature’s actions through the the answer, consult a web devel- but you will have dedicated Leading Edge Aviation last session. AB1532 is a recipe oper, who can provide an objec- more time, energy and resources Services, Boeing, and the U.S. to fund every hare-brained tive opinion based on quantifi- to those performers with the Army National Training Center. scheme and pet project they can able data. greatest payoff. Your time is The Air National Guard also dream up, all under the guise of When is it time to build precious; you can only focus on completed construction on a reducing greenhouse gasses. anew? If your site is broken or so much. You have to be selec- state-of-the-art $5 million The inescapable reality in outdated, it may be time to tear tive about what you focus upon. hangar in June for its MQ-1 California is that no matter what it down to the studs and start You have to prioritize. Be sure Predator program. business you are in, govern- fresh, using all the new wisdom to do this when you are manag- Future Growth ment, not greenhouse gas, is the and whirligigs that have become ing performance in your compa- The future is even brighter greatest threat to your liveli- available just in the past five ny and feel confident that your for Victorville. Next year, hood. The good news is that we years or so. investment will pay off for you, SANBAG and CalTrans are can change our government. In either case, I suggest stay- your company and your cus- expected to complete construc- The founders created a peaceful ing away from the duct tape. tomers. tion on the Nisqualli/La process of revolution that takes Mesa/Interstate – 15 inter- place every two to four years. For additional information For more information or to change, alleviating traffic on Beginning in November 2012, I visit www.leftbraindigital.com. contact Dr. Martin, please visit other major thoroughfares in believe the people will con- his website at www.drmarty- Victorville and nearby cities. found the experts and reject The End of... martin.com. Another very exciting develop- these wrong-headed policies ment that will impact that threaten to strangle our continued from pg. 32 Victorville and the surrounding state. depending on authentic cus- The Top 5... communities is the construction tomer advocacy to grow their continued from pg. 27 of a new hospital. St. Joseph, firms, it not only improves their most decision-makers, you can St. Mary just broke ground on Apple Valley... marketing results, it also analyze your decision with a construction of a $260 million continued from pg. 33 improves their organizations,” new perspective and make the facility that will include 128 take approximately 24 months says Lee. “That’s because it’s best choice for you, your organ- beds and a level 3 trauma cen- to complete. With the required hard to mask substandard per- ization, and your future. ter. This will be the first trauma improvements to Yucca Loma formance and customer discon- center in the Victor Valley and Road and Yates Road scheduled tent with your products and To learn more about Mike the only one between the San to be completed simultaneously services if they’re the ones you Menard please visit Bernardino Valley and Las with the new bridge, opening rely on to tell the world how www.afishinyourear.com. Vegas. day should occur in 2015. great you are.” Inland Empire Business Journal Purchase your very own South OC-based Advertising/Marketing Company Subscribe for Only • Focused on a lucrative B2B sector (business owners interested in reaching a demographically-unique consumer audience) with minimal direct competition. $24.00 • Well-established turn-key business with a documented ‘success Print Subscription Includes: formula’ that includes a current business plan & SOP. • 12 monthly issues • A strong local brand—in print & online--along with • Exclusive monthly e-newsletter significant growth opportunities based on two well- • The popular “Lists” in each issue, special industry reports, defined expansion models position this company restaurant reviews, executive time out, and much more to be sold in the low $100’s. Also Available, the Digital 2012 Book of Lists • Current owners retiring out of the area. For info E-mail [email protected] Start your subscription today by calling 909.605.8800 or visit www.busjournal.com BUSINESS JOURNAL • PAGE 38 December 2012
off the bat, they can chalk up a win owners without an asset protection No Money, No... because they’ve saved money, and E-Commerce... plan in place prior to 2008 were out continued from pg. 29 you can too because you’re ahead of continued from pg. 9 of luck when their life savings, your bills. homes, real estate and other wealth were jeopardized by creditor law- “This strategy continues to pay off over time, too,” promises suits. The best advice for e-commerce business owners is to be proac- Houlihan. “Say a buyer has just received a large shipment of your tive – the threat of a suit can bring a business to its knees and the best product. Chances are, he or she will want to put them on special and way to protect themselves is to practice financial self-defense and advertise them in order to sell them faster. After all, until the products lawsuit-proof their assets. are sold, they’re just taking up valuable warehouse space. It’s easy to • Decide whether or not to re-title their assets, what entity see how this benefits both parties: Your product becomes more visi- formations to use, and whether equity stripping is appropriate ble and (hopefully) draws in new repeat customers, and the retailer for assets still inadequately protected. Only non-exempt assets makes money from sales. Now that you and the customer are smil- need to be re-titled. Exempt assets are those that cannot be seized in ing, you can start the process over again.” the event of a judgment. All non-exempt assets should be re-titled as Sell your product overseas. “Going international” with your exempt assets and/or transferred to more protected entities such as a product is another good way to make cold, hard cash that you can Limited Liability Company, Limited Liability Partnership or Family then reinvest into your business. Giving credit to overseas buyers is Limited Partnership, to name a few. Each entity has its own advan- so risky due to legal challenges, so most international transactions are tages and disadvantages and each person may have specific needs cash sales based on a signed ocean-going bill of lading through a let- that make one of these entities more advantageous than the others. ter of credit. It’s kind of like an escrow account where you get paid Alternatively, these assets can be titled to either domestic or interna- when the buyer takes possession. tional trusts. International trusts, such as the NEVIS trust, are espe- “Admittedly, this strategy will take a significant amount of cially protective because the laws of most preferred international research and preparation up-front,” says Houlihan. “But if you deter- trust locations favor the owner of the trust over creditors. Any unpro- mine that selling your product overseas is a viable option, your work tected assets can be stripped of their equity. For example, taking out can pay off big time. Remember, the trick to juggling payables and a loan on a home that the client owns free and clear would make them receivables is timing. If you have negotiated longer terms with your more undesirable to a creditor than if they had full equity in the suppliers, you can actually get paid through international sales before home. you have to pay your own bills. And if you can negotiate it, you can • Implement the plan and maintain the protection over the then pay the supplier earlier for a discount.” years. Asset protection plans should be reviewed at least once a year Produce just-in-time inventory. Just-in-time inventory is (as the and whenever there is a potential for litigation. Also, integrating an name suggests) a product that is produced just in time for the sale estate plan into an asset protection plan is essential because an unex- rather than one that is produced ahead of time and stored in a ware- pected death intestate could tie up an estate in litigation for years. house. The advantages of this strategy are obvious. First, you don’t Asset protection is important for all business owners in today’s have to spend as much money up-front creating a product stockpile. litigious society. E-commerce businesses are even more vulnerable to Second, if you play your cards right, you won’t have to spend money lawsuits and potentially have more assets to protect. Business owners renting or buying storage space. should enlist the assistance of an asset protection attorney to create, “Third, if you are able to get a purchase order from your cus- implement and help maintain a lawsuit-proof plan, and they should tomers up-front, you can manufacture only the amount of product have an estate plan as well. that will be sold, thus keeping you from wasting money on excess production,” adds Houlihan. “If an up-front purchase order isn’t prac- our logo should look like. He told me, ‘Don’t make it a hill or a leap tical, operate with the minimum inventory you need to satisfy your or a run or a valley or a creek…Don’t put a flower on it. And for customers, assuming a reasonable growth factor that you reassess crissakes, don’t make it a chateau. Make the logo the same as the every month. name…And whatever you do, put it in plain English…And, “At Barefoot, we bottled our wine just before it was shipped so Houlihan, make it visible from four feet away. [The shopper] has to that we didn’t have numerous cases waiting for orders and racking up be able to see it when she’s pushing her cart down the aisle. Now get storage costs,” he explains. “By the time the wine was bottled, we outta here. I got work to do.’ knew it would be paid for and shipped quickly.” “Turns out, that advice was solid gold, and I didn’t have to pay a Ask a lot of questions. When you’re starting a business with a dime for it,” adds Houlihan. “All I had to do was ask a question.” tight budget, you literally can’t afford to make mistakes—and that “Ultimately, launching and growing a successful business isn’t means there’s no such thing as a dumb question. Before making any so much about how much money you have as it is about identifying kind of commitment that will cost you money, ask lots of questions the resources you have and using them as effectively as possible,” (and then ask some more) ahead of time until you’re sure you’re concludes Houlihan. “And once you do build up momentum, the moving in the right direction. You’ll save money because you aren’t cost-saving measures and innovations that helped you to survive in guessing or making incorrect assumptions. For instance, Houlihan the early days will help your company to continue to operate as effi- and Harvey asked many questions so basic that many in the industry ciently and effectively as possible.” had stopped thinking about them: Which demographic buys the most wine? How do you sell it? How does this work? About the Authors: The answers allowed them to get a fuller picture of the wine Michael Houlihan and Bonnie Harvey, authors of “The Barefoot industry than many longtime professionals had, explains Houlihan. Spirit: How Hardship, Hustle, and Heart Built a Bestselling Wine,” He and Harvey learned that it would be smart to aim for supermarket started the Barefoot Wine brand in their laundry room in 1986, made customers who wanted a solid, reliable wine, but who were put off by it a nationwide bestseller, and successfully sold the brand to E&J fancy labels and French terminology. Gallo in 2005. Starting with virtually no money and no wine industry “We asked questions on a more granular level too,” he says. “I’ll experience, they employed innovative ideas to overcome obstacles never forget asking one supermarket chain’s gruff wine buyer what and create new markets. December 2012 BUSINESS JOURNAL • PAGE 39
strong zing akin to the first sip of requests. Further, employers should Waffles Are The... less-than-sweet lemonade (but in a California... make sure to calendar both the continued from pg. 34 much more pleasant way). Lightly continued from pg. 5 three-year retention requirement for gooey on the inside and littered with seasonal blackberries, strawber- personnel records and the thirty day deadline for responding to an ries and powdered sugar, this sweet waffle is worth every bite. employee’s inspection/copy request. For the retention of records, There are no online or over-the-phone orders which will force employers may want to consider retaining personnel records for more you to crave a waffle dish so much that you won’t be able to resist than three years, as some causes of action have a longer statute of driving out to Chino Hills to get it yourself. Bruxie seems to be doing limitations. everything right; it’s got a good crew, knowledgeable owners, and the If you have any questions regarding this update, please contact bonus of creative and delicious menu items that work so well with the Sidley lawyer with whom you usually work. waffles. Start holiday shopping and grab a waffle from Bruxie while you’re in the area. The cola will certainly help bring you back to the The Employment and Labor Practice of Sidley Austin LLP days when Santa made sure that there was no bad aftertaste follow- Our Employment and Labor Practice has decades of experience ing a drink. in litigating virtually all types of employment and traditional labor claims before federal and state courts and agencies, ranging from sin- Bruxie, 13865 City Center Dr., Chino Hills, (909) 334-4162; gle-plaintiff cases to complex class actions. We also provide compre- www.bruxie.com. Open 8am-9pm. AE, D, MC, V. hensive counseling to our clients on a wide variety of employment and labor issues. CDSA Inland... The other honoree for PVW is a business partner in Supported To receive future copies of this and other Sidley updates via continued from pg. 19 Employment. PVW has an enclave email, please sign up at www.sidley.com/subscribe of three consumers and one job coach at the Chino Hills Government Center. The group performs janitorial and portering services Monday “In August 1914,” wrote the historian A. J. P. Taylor, “a sensible, through Friday and keeps these beautiful city government buildings law-abiding Englishman could pass through life and hardly notice the sparkling. Accepting on behalf of Chino Hills Government Center existence of the state, beyond the post office and the policeman. He was Sean O’Connor. could live where he liked and as he liked. He had no official number or identity card.” A century later, he does not even expect to have to is a one-way ratchet, and its size and tend to his own family’s garden. That’s some shift in the Overton Why I Despair... intrusion are almost never window. I quite earnestly believe in all of the stuff that I’m not sup- continued from pg. 28 retrenched. Thomas Jefferson wrote posed to. I believe that America is exceptional; that it is an objective- in 1788 that “the natural progress of things is for liberty to yield, and ly better nation than any other that has ever existed; and that it is, as government to gain ground.” “A government bureau,” added Ronald it was explicitly designed always to be, the last, best hope for Reagan, “is the nearest thing to eternal life we’ll ever see on this mankind. As Winthrop ’s sermon poetically put it, America is the earth.” “Shining City upon a Hill,” there so that men without liberty have How true these words are. Mrs. Thatcher, fittingly lionized by somewhere to turn and a light that they might follow. I followed that those on the right, certainly achieved a lot. But she could do nothing light—3,500 miles from my friends and my family—because I about Britain’s creaking welfare system or its antediluvian National believed that my life would be better here, because I wanted to be Health Service. Nobody can. Nobody would even try. (Consider what free, and because I felt that under American liberty I would be able an Augean task it is even to get people seriously to discuss to be myself more honestly and more fully. There is nowhere else I Medicare’s disquieting trajectory.) Mrs. Thatcher’s party is well could have gone. Alas, there is nothing written in the stars that says named: They are, quite literally, the “Conservatives,” and their role that America will always be America. “Rome,” as Joseph Heller bru- now is simply to run the government better than the socialists. Britain tally reminded us, “was destroyed, Greece was destroyed, Persia was once had an Empire that stretched across one quarter of the globe; it destroyed, Spain was destroyed. All great countries are destroyed. provided the world with a common language, many of its institutions, Why not yours? How much longer do you really think your own global trade, and cricket; we did Great Things at home and abroad. country will last? Forever? Keep in mind that the earth itself is des- Now, we wrangle over whether state spending should be 39 or 40 per- tined to be destroyed by the sun in 25 million years or so.” There will cent of GDP, and we hold the prime minister personally responsible be little virtue in America if it becomes a larger version of Britain, but for hospital conditions hundreds of miles from London. It’s debilitat- with free speech and the right to bear arms. ing. Once upon a time, when civic society flourished in Britain, it was On Tuesday, America took another giant leap away both from its uncontroversial to observe that to demur at government involvement revolutionary mission and from the classical liberalism that it has in the achievement of an end was not necessarily to consider that end successfully incubated for so long. This is a rotten thing for America, undesirable. Under Leviathan, such distinctions draw blank stares. In and also—though it might not realize it—for the world; for, like 2010, on the BBC’s Question Time — a British current-affairs show Anthony Blanche, Evelyn Waugh’s “aesthete par excellence,” should on which the guests trip over one other to display the appropriate the United States descend into the mire, it will “take something away degree of fealty to whichever orthodoxy is in the news that week with it.” If America ceases to be America, it will “[lock] a door and whilst the audience tries to be as clever as one can be without doing hang the key on a chain.” And then? “All [its] friends, among whom any reading — the question of impending government spending cuts [it] had always been a stranger,” will realize they need it. I know I do. was raised. One audience member stood up and, waving her hands around, asked who would mow her elderly mother’s lawn if the gov- The views expressed in the above opinion do not necessarily ernment no longer did it. The audience clapped. The host looked seri- reflect the political opinions of the Inland Empire Business Journal ous. Not a single person on the panel said, “You!” Neither of the or any of its staff. Comments are welcomed, send to putatively Conservative guests even raised an eyebrow. A particular- [email protected]. Note: Managing Editor does not agree ly oleaginous MP proceeded to tell her that it was a “good question.” with this opinion. I threw a coffee cup at my television. BUSINESS JOURNAL • PAGE 40 December 2012
NEWNEW BUSINESS BUSINESSCCountyounty ofof S Sanan BBernardinoernardino
ACE COURIER & JCB SERVICES SIGNATURE BILL DUNN BAIL BONDS FARMER BOYS REDLANDS PAIN AND TRANSPORT 1340 N. CHAFFY CT. PROFESSIONAL 567 E. RIALTO AVE. RESTAURANT HEALTH MANAGEMENT 2764 COTTONWOOD TR. ONTARIO, CA 91762 TRAVELING NOTARY SAN BERNARDINO, CA 15617 ROY ROGERS DR. 16 NEVADA ST. ONTARIO, CA 91761 SERVICES 92408-1231 STE. 301 STE. A JERSEY MIKES 9637 LEMON AVE. VICTORVILLE, CA 92394 REDLANDS, CA 92373 AIR-TECH SERVICES 10040 ALABAMA ST. RANCHO CUCAMONGA, BOOYAA VAPORS 11253 G AVE. STE. D CA 91737 8949 9TH ST. FINE ARTISTS RESTAURANTE HESPERIA, CA 92345 REDLANDS, CA 92374 STE. 150 ENTERTAINMENT CARDENAS THE MARCHING RANCHO CUCAMONGA, 14568 VANCOUVER AVE 2501 E. GUASTI RD. BAILA FITNESS II KASCH GRAPHICS PODCAST CA 91730 FONTANA, CA 92336 ONTARIO, CA 91761 128 W BASELINE RD. 1245 N. FITZGERALD AVE. 333 N. UNIVERSITY RIALTO, CA 92376 STE. 101 STE. 26 CARDENAS FLOWERS UNIQUE RIVERSIDE PALMS RIALTO, CA 92376 REDLANDS, CA 92374 2501 E. GUASTI RD. 10260 CENTRAL AVE. 1062 S. RIVERSIDE AVE. BILL FOX ALL INCLUSIVE ONTARIO, CA 91761 MONTCLAIR, CA 91763 RIALTO, CA 92376 VACATIONS KING MOTORS TOUCH TRUST 21999 VAN BUREN ST. 8452 HOOVER CT. SOLUTIONS CARGO LOGISTICS FRA MER ROSE BLOSSOM CARE\ GRAND TERRACE, CA OAK HILLS, CA 92344 577 N. D ST. 14470 EL CONTENTO AVE. 9999 FOOTHILL BLVD. 25819 AMAPOLAS ST. 92313 STE. 111G FONTANA, CA 92337 STE. SP 97 LOMA LINDA, CA 92354 LIGHTHOUSE LENDING SAN BERNARDINO, CA RANCHO CUCAMONGA, BLACKSTONE REALTY 8311 HAVEN AVE. 92401 CARTER'S BALLOONS & CA 91730 SEALED WITH A BOW 8311 HAVEN AVE. STE. 180 CANDY CREATIONS 7898 HARIZON ST. STE. 180 RANCHO CUCAMONGA, TREAT ADVENTURES 12765 SNAKE RIVER DR. GETMORE SCREEN CHINO, CA 91708 RANCHO CUCAMONGA, CA 91730 13165 AUTUMN LEAVES VICTORVILLE, CA 92391 PRINTING-VEHICLE CA 91730 AVE. WRAPS SELENA'S TIRE'S LITTLE DARLIN’S VICTORVILLE, CA 92395 CHANO’S 290 W ORANGE SHOW RD. 556 S. DRIFTWOOD AVE. BLANCA’S AUTO CONSIGNS CONSTRUCTION STE. 101 RIALTO, CA 92376 ACCESSORIES 33359 YUCAIPA BLVD. UNLIMITED WORSHIP 16369 ALISO DR. SAN BERNARDINO, CA 16309 MERRILL AVE. YUCAIPA, CA 92399 DANCE STUDIO FONTANA, CA 92337 92408 SEND IT FONTANA, CA 92335 294 S EUCLID AVE. 10722 ARROW RTE. LITTLE JOE HAIR UPLAND, CA 91786 CORONA AUTO REPAIR & HANDSOME LOSER STE. 216 BOKISO DESIGNS MUFFLER MUSIC RANCHO CUCAMONGA, 11660 CHURCH ST. 259 W. BLOOMINGTON USANJU 996 N. MT VERNON AVE. 31757 HILLTOP BLVD. CA 91730 STE. 10 AVE. 790 FERRARI LN. SAN BERNARDINO, CA RUNNING SPRINGS, CA RANCHO CUCAMONGA, RIALTO, CA 92376 ONTARIO, CA 91764 92418 92382 SOLAR UNIVERSE CA 91730 RANCHO CUCAMONGA MARCELLE & ASSOCI- WAREHOUSE SUPLLIES CORRECT NURSING INTRINSIC METALS 8282 WHITE OAK AVE. COOL CASH ATES, INC. AND MAINTENANCE APPAREL CNA RECYCLING STE. 108 8875 FOOTHILL BLVD. 1549 SOUTH LAUREL AVE. 4686 EAST AVE. 9305 MESA VERDE DR. 3681 WALNUT AVE. RANCHO CUCAMONGA, RANCHO CUCAMONGA, ONTARIO, CA 91762 RANCHO CUCAMONGA, STE. B CHINO, CA 91710 CA 91730 CA 91730 CA 91739 MONTCLAIR, CA 91763 MARTINEZ MOTORS J & J ENTER PRISES SUPER 99 CENTS PLUS DTO EXTREME 8452 HOOVER CT. YANCY A. MARTIN - CREATIVE FLEET 6848 PINE AVE. 1655 N. MOUNT VERNON 13407 GOLD DUST WAY OAK HILLS, CA 92344 FARMERS INSURANCE LEASING TWENTYNINE PALMS, CA AVE. CHINO HILLS, CA 91709 AGENCY 13501 BENSON AVE. 92277 SAN BERNARDINO, CA MARTINS DISTRIBUTION 1645 S. RIVERSIDE AVE. CHINO, CA 91710 92411 ECHARM 594 E JAMES ST. STE. B LMCR PROPERTY INTERNATIONAL RIALTO, CA 92376 RIALTO, CA 92376 CROSS CULTURAL RENTAL T.L. AUTO SALES 6872 ARIZONA AVE. MARRIAGE & FAMILY 33776 FAIRVIEW DR. 11504 ABERDEEN DR. JOSHUA TREE, CA 92252 MONEY STOP 1 800 ECHARM COUNSELING CENTER YUCAIPA, CA 92399 FONTANA, CA 92337 8875 FOOTHILL BLVD. 6872 ARIZONA AVE. 535 WEST STATE ST. ELEMENTS OF CHANGE RANCHO CUCAMONGA, JOSHUA TREE, CA 92252 STE. C MARTINEZ PAINTING THE HANOVER GROUP ACADEMY OF MARTIAL CA 91730 REDLANDS, CA 92373 8810 C AVE. 8250 WHITE OAK AVE. ARTS 1000 NIGHTS STE. 226 STE. 102 2440 W. ARROW RT. MOONLIT ROSE 16940 BEARVALLEY RD. CWV ENVIRONMENTAL HESPERIA, CA 92345 RANCHO CUCAMONGA, STE. 4C 22141 MAVIS ST. STE. A SOLUTIONS CA 91730 UPLAND, CA 91786 GRAND TERRACE, CA VICTORVILLE, CA 92395 255 E. 47TH ST. MERCADO CARDENAS 92313 SAN BERNARDINO, CA 2501 E. GUASTI RD. THE TAMBIAN GROUP ELITE BULB A+ INTERNATIONAL 92404 ONTARIO, CA 91761 8459 WHITE OAK AVE. 865 S MILLIKEN AVE, OMNI SPORTS TRAVEL CENTER STE. 106 STE. G 15973 AVENAL CT. 7900 HAVEN AVE. DELBERT OLSON MESKER WEST RANCHO CUCAMONGA, ONTARIO, CA 91761 CHINO HILLS, CA 91709 STE. 24 ADVERTISING 8797 ROCHESTER AVE. CA 91730 RANCHO CUCAMONGA, 15595 MUSCATEL ST. STE. A-2 EXOTIC IRON PARAME INVESTMENT CA 91730 HESPERIA, CA 92345 RANCHO CUCAMONGA, THE TREATMENT 55850 SHANNON RD. INC, CA 91730 CENTRE LANDERS, CA 92285 7152 MYRTLE PL. ASK AUTO DISMANTLERS ELDER HAVEN DAY 25805 BARTON RD. FONTANA, CA 92336 14639 WHITTRAM AVE. CENTER QUINTERO TAX STE. 107 GREEN TECH COLLISION FONTANA, CA 92335 512 E. WILLIAMS SERVICES LOMA LINDA, CA 92354 CENTER POSH RAGZ BARSTOW, CA 92311 7161 EAST AVE. 1800 W. 11TH ST. 14998 COBALT RD. AUREUS ANALYTICAL STE. 105 TRI CITY QUALITY UPLAND, CA 91786 VICTORVILLE, CA 92394 AGENCY ENDOROL MUSIC GROUP RANCHO CUCAMONGA, SYSTEMS 25058 PROSPECT AVE. 15181 CRANE ST. CA 91739 20331 RIMROCK RD. HEADZ UP BEAUTY & SHERICANDO LOMA LINDA, CA 92354 FONTANA, CA 92336 APPLE VALLEY, CA 92307 BARBER SHOP 7501 PALM AVE. RAFA THE WELDER 15752 MOJAVE DR. STE. 85 BACKNTIME EXECUTIVE REAL 9851 8TH ST. UNIVERSAL STE. A YUCCA VALLEY, CA 92284 11161 ACANTHUS ST. ESTATE MGMT STE. G CONTRACTORS VICTORVILLE, CA 92394 PHELAN, CA 92371 14176 AMARGOSA RD. RANCHO CUCAMONGA, 1904 CRYSTAL COVE CT. SIERRA LIQUOR STE. E CA 91730 REDLANDS, CA 92374 IGLESIA RIO DE AGUA 8058 SIERRA AVE. BAOSH WHEELS USA VICTORVILLE, CA 92392 VIVA FONTANA, CA 92336 1250 E. ACACIA ST. RAPID REGISTRATION UNO INCOMETAX 241 BASELINE ST. ONTARIO, CA 91761 FAMILY TRANSITION SERVICE 17914 FOOTHILL BLVD. STE. E & F STS KUSTOMS ASSIST 13949 CAMEO DR. STE. 1 RIALTO, CA 92376 13076 SAN ANTONIO AVE. BIG BROTHER BAIL 11825 VINTON RD. FONTANA, CA 92337 FONTANA, CA 92335 CHINO, CA 91710 BONDS PHELAN, CA 92371 IMPERIAL RESOLUTIONS 567 E. RIALTO AVE. BELLA’S FLOWERS MIKE’S BIKE SHOP 13541 ANOCHECER AVE. SAN BERNARDINO, CA 527 HAVEN AVE. 4286 EUCLID AVE. CHINO HILLS, CA 91709 92408 ONTARIO, CA 91761 ONTARIO, CA 91762 December 2012 BUSINESS JOURNAL • PAGE 41
NEWNEW BUSINESS BUSINESSCCountyounty ofof S Sanan BBernardinoernardino
AB’S PARTY RENTALS CALSTATE SOLAR ELITE HOME HOPE TRUCKING M & R AUTO GLASS REDLANDS REALTY 2280 W RIALTO AVE. ENGINEERING INSPECTIONS 2501 N. LUGO AVE. 9406 MANGO AVE. GROUP STE. 18 6711 ZIRCON AVE. 56170 TAOS TR. SAN BERNARDINO, CA FONTANA, CA 92335 1009 CAMPUS ST. SAN BERNARDINO, CA ALTA LOMA, CA 91701 YUCCA VALLEY, CA 92284 92404 REDLANDS, CA 92374 92410 M.INK PRINTS CHERYL EVEY, E.A. ELITE REALTY & INLAND CITIES REAL 12463 TAMARISK LN. ROCKY PLAZA MARKET ABC FORKLIFT 17140 KENTWOOD BLVD. LENDING SOLUTIONS ESTATE CHINO, CA 91710 AND LIQUOR TRAINING STE. 3 14263 CALLE DOMINGO 357 W. 2ND ST. 31583 OUTER HWY 10 5489 SAN BERNARDINO ST. VICTORVILLE, CA 92392 VICTORVILLE, CA 92392 STE. 12 MC WELCO PRODUCTS STE. 4 MONTCLAIR, CA 91763 SAN BERNARDINO, CA 6730 SANTA FE AVE. REDLANDS, CA 92373 CHINO HILLS AQUATICS EUNIQUE 92401 STE. E ACE CARPET AND 2441 VELLANO CLUB DR. 8566 CANDLEWOOD ST. HESPERIA, CA 92345 ROHR POOL REPAIR UPHOLSTERY CLEANING CHINO HILLS, CA 91709 CHINO, CA 91708 J.D. YANCEY 294 ERLACH DR. 4429 TERRY ST. ENTERPRISES MTAX BUSINESS CRESTLINE, CA 92325 CHINO, CA 91710 CITRUS DONUTS EXQUISITES: A HANDBAG 1479 N. LINDEN AVE. SERVICES 16115 FOOTHILL BLVD. AND GIFT PLACE RIALTO, CA 92376 17140 KENTWOOD BLVD. RUANCE ACS BOOKKEEPING FONTANA, CA 92335 17180 BEAR VALLEY RD. STE. 3 521 CAMINO REAL SERVICE STE. 5C JACKSON HEWITT TAX VICTORVILLE, CA 92392 REDLANDS, CA 92373 14270 ALDER WOOD LN. COAST CAR SALES VICTORVILLE, CA 92395 SERVICE CHINO HILLS, CA 91709 2240 E CEDAR ST. 17140 KENTWOOD BLVD. NORTH AMERICA LIVING SAN BERNARDINO ONTARIO, CA 91761 GOD BLESS AMERICA STE. 3 RENTALS MOTEL ADELINA EYES SELF STORAGE VICTORVILLE, CA 92392 1300 PRIMROSE ST. 2528 W FOOTHILL BLVD. PHOTOGRAPHY & OJOS CONCESSION-DEPOT VICTORVILLE STE. 1 SAN BERNARDINO, CA MAGAZINE, US. 4886 MANE ST. 11622 AMARGOSA RD. JMR TRUCKING UPLAND, CA 91786 92410 4325 DENVER ST. MONTCLAIR, CA 91763 VICTORVILLE, CA 92392 8947 DATE ST. MONTCLAIR, CA 91763 FONTANA, CA 92335 ONEWAY TOWING STOREMORE SELF D.L.G. TOWING HAROLD’S JEWELERS 2326 N. SYCAMORE STORAGE VICTORVILLE BBG BLANKETS & BLING 15352 CITRON AVE. 360 N. D ST. JNJ'S MERCHANDISE RIALTO, CA 92377 11622 AMARGOSA RD. 11958 ALMOND DR. FONTANA, CA 92335 SAN BERNARDINO, CA 16745 CAROB AVE. VICTORVILLE, CA 92392 FONTANA, CA 92337 92401 CHINO HILLS, CA 91709 PATRIOT SELF STORAGE DESERT BOOKKEEPING VICTORVILLE TRUMAR APPRAISALS BRAVO AUTO GLASS 17140 KENTWOOD BLVD. HEALTH HABITAT KODIAK ARCHERY & 11622 AMARGOSA RD. 1030 N MOUNTAIN AVE. 17268 SAN BERNARDINO STE. 3 27190 HWY 189 TAXIDERMY VICTORVILLE, CA 92392 STE. 443 AVE. VICTORVILLE, CA 92392 BLUE JAY, CA 92317 10018 IVY CT. ONTARIO, CA 91762 FONTANA, CA 92335 YUCAIPA, CA 92399 PERFORMANCE EKO-SYSTEM HIGH-TECH HOME PHYSICAL THERAPY, INC WINE BARREL LIQUOR CA RECYCLING CENTER LANDSCAPE SERVICES IMPROVEMENT LANIC AEROSPACE 10431 COMMERCE ST. 2205 S EUCLID AVE. 25082 E. BASELINE ST. 9481 DEVON ST. 415 W. LOCUST ST. 12144 6TH ST. STE. A STE. 1 SAN BERNARDINO, CA RANCHO CUCAMONGA, ONTARIO, CA 91762 RANCHO CUCAMONGA, REDLANDS, CA 92374 ONTARIO, CA 91762 92410 CA 91730 CA 91730
NEWNEW BUSINESS BUSINESS CCountyounty ofof Riverside Riverside
CORRECTIVE SKINCARE CLEANUP SOLUTIONS AQUATIC LIFE FIVE STAR HOME SOUTH VALLEY BEST WESTERN PLUS 3683 ADAMS ST. 30246 VIA DEL FIERRO CREATIONS SERVICES ELECTRIC PALM DESERT RESORT RIVERSIDE, CA 92504 MENIFEE, CA 92584 2191 W. ESPLANADE AVE. 418 TAVA LN. 673 CALLE VIBRANTE 74695 HWY 111 STE. 105E PALM DESERT, CA 92211 PALM DESERT, CA 92211 PALM DESERT, CA 92260 ROGERS’ GARDENHILL SELF STORAGE SAN JACINTO, CA 92582 GUESTHOUSE BED & INNOVATIONS COVES LANDSCAPE KIDS KORNER CONSIGNS RED ROOF INN BREAKFAST 30246 VIA DEL FIERRO AQUATIC INC. MANAGEMENT 73625 HIGHWAY 111 THOUSAND PALMS 21925 GARDEN DR. MENIFEE, CA 92584 2191 W. ESPLANADE AVE. 82290 DEBORAH DR. PALM DESERT, CA 92260 72-215 VARNER RD. NUEVO, CA 92567 STE. 105E INDIO, CA 92201 THOUSAND PALMS CA KABOB HUTT SAN JACINTO, CA 92582 R&R HOME REPAIRS AND 92276 G & Y FORKLIFT 165 WASHBURN CR. CREATIVE OFFICE RENOVATIONS SERVICE CORONA, CA 92882 PVC PRODUCTS INTERIORS 30815 LAS FLORES WAY LEIAMEX 44489 TOWN CENTER WAY 25830 BAY MEADOWS WAY 72624 EL PASEO THOUSAND PALMS, CA 1090 5TH ST. STE. 350 PGH ELECTRIC MURRIETA, CA 92562 STE. C1 92276 STE. 108A PALM DESERT, CA 92260 19945 WINDWOOD CIR. PALM DESERT, CA 92260 CALIMESA, CA 92320 RIVERSIDE, CA 92508 VIOLET JUNE PALM DESERT ATHLETIC FIERCEHEART PHOTOGRAPHY & ALL COMM CLUB NOLITA’S KITCHEN 26855 CHINA DR. BRONNIKOV METHOD DESIGN 42920 VIRGINIA AVE. 73600 ALESSANDRO DR. 1580 PELHAM PL. SUN CITY, CA 92585 USA 27488 MURRIETA OAKS PALM DESERT, CA 92211 PALM DESERT, CA 92260 RIVERSIDE, CA 92506 37081 CHERRYWOOD DR. AVE. QUILT KIT SHOP MURRIETA, CA 92562 MURRIETA CA 92562 IRON HORSES AUTOS ACE TRANSPORTATION ALCHEMY UNLIMITED 13773 TURF PARADISE ST. 83711 INDIO BLVD. OF THE DESERT 39415 BRIGHTON ST. CORONA, CA 92880 FAST SPANISH AMAZING SIGNS INDIO, CA 92201 36990 PALMDALE RD. MURRIETA, CA 92563 37081 CHERRYWOOD DR. 3465 GLASGOW CIR RANCHO MIRAGE, CA SALON MOSELLE MURRIETA, CA 92562 RIVERSIDE, CA 92503 MERIDA'S POOL CARE 92270 ARTISAN WEB DESIGN 41925 5TH ST 31635 AVENIDA EL PUEBLO 39415 BRIGHTON ST. STE. 103 INTEGRAL ENERGETICS REDEMPTION STE. B ACE DESERT MURRIETA, CA 92563 TEMECULA, CA 92590 INTERNATIONAL UNIVERSITY CATHEDRAL CITY, CA DESTINATION 37081 CHERRYWOOD DR. 3465 GLASGOW CIR. 92234 36990 PALMDALE RD. STUCCO SHOP PREMIER MURRIETA, CA 92562 RIVERSIDE, CA 92503 RANCHO MIRAGE, CA 11995 ZANTAR PROGRAMMING HANDY J’S FLOOR 92270 MORENO VALLEY, CA 8735 CAMINO LIMON RD. SMART AUDIO FRI GROUP COVERING SERVICE 92557 CORONA, CA 92883 37081 CHERRYWOOD DR. 1860 CHICAGO AVE. 45500 COLD BROOK LN. RAVING ENTERPRISES MURRIETA, CA 92562 STE. I-17 LA QUINTA, CA 92253 43635 RECLINATA WAY J&M CONCRETE DIRECTIONAL DRILLING RIVERSIDE, CA 92507 INDIO CA 92201 CONTRACTORS CONSULTANTS FINANCE WIZARD NESTEGGG ACCOUNTING 749 N. POPLAR ST. 27476 PROMINENCE RD. 16945 OLD LAKE RD. SALAZAR PAINTING SERVICES ORANGE CA 92868 SUN CITY, CA 92586 RIVERSIDE, CA 92503 22795 CALLAWAY RD. 258 N. PALM CANYON DR. PERRIS, CA 92570 PALM SPRINGS, CA 92262 BUSINESS JOURNAL • PAGE 42 December 2012
NEWNEW BUSINESS BUSINESS CCountyounty ofof Riverside Riverside
URIZA THE AROMA RANCH CORONA MINI STORAGE BAR TRENDERS HOUSEHOLD HEALTH- AVALAND CONTRACTOR 14327 FREDRICK ST. 58581 HWY 371 1051 POMONA RD. 30414 DE CARON ST. CARE 4162 ADAMS ST. MORENO VALLEY, CA ANZA, CA 92539 CORONA, CA 92882 MURRIETA CA 92563 42400 MORAGA RD. RIVERSIDE, CA 92504 92553 STE. 302 CREOSOTE PARTNERS WOOLEY'S MARK II PROPERTIES TEMECULA, CA 92591 BELLA SORRISO R-SCAPE LANDSCAPE CO. 901 E TAHQUITZ 54274 N. CIRLCE DR. 31285 TEMECULA 26193 PALM TREE LN. 650 MAPLE AVE. CANYON WAY IDYLLWILD CA 92549 PARKWAY DIRT SOLUTIONS MURRIETA, CA 92563 BEAUMONT, CA 92223 STE. B-201 STE. C8-200 27538 AUCILLA CT. PALM SPRINGS, CA 92262 AWESOME DRESS SHOP TEMECULA, CA 92592 WINCHESTER, CA 92596 CANTON CHINESE TOM’S TRUCK SHOP 200 S. MAIN ST. 1756 UNIVERSITY AVE. 44093 C ST. JOSE’S MOBILE CAR LAKE ELSINORE, CA 92530 AFFORDABLE B & F PROPERTIES STE. 100 HEMET, CA 92544 WASH CREATIONS BY TRENDY 10726 HOLLENBECK DR. RIVERSIDE, CA 92507 30668 JESSICA ST. CALIFORNIA CREPES ON TRASH RIVERSIDE, CA 92505 IRESPECT THOUSAND PALMS, CA A STICK 26433 ROLAND RD. VALINA DURHAM DREAM 3976 BARBURY PALMS 92276 1800 E. LAKESHORE DR. MURRIETA, CA 92563 ROYALTY TRANSPORT BUILDERS INVESTMENTS WAY STE. 606 21788 GLEN VIEW DR. 18855 CONSUL AVE. PERRIS, CA 92571 DE LA CRUZ FARM LAKE ELSINORE, CA 92530 JUNKY TRUNKS BY MORENO VALLEY, CA CORONA, CA 92881 LABOR CONTRACTING TRENDY TRASH 92557 MCI CONSTRUCTION 65-014 DONOVAN CIR. J.K. CABINET 26433 ROLAND RD. SHAZZAM ELECTRIC COMPANY MECCA, CA 92254 WHOLESALERS MURRIETA, CA 92563 SENERGY HEATING AND 28201 CANNON DR. 82-746 KYLE DR. 15881 LA COSTA ALTA DR. AIR CONDITIONING SUN CITY, CA 92585 INDIO, CA 92203 JOCY’S BARBER SHOP MORENO VALLEY, CA BOSSIN UP 9351 STIRRUP ST. 82-365 HWY 111 92555 3081 CANYON CREST DR. RIVERSIDE, CA 92509 STERLING RV AUMSHANTI STE. 4 STE. B 42440 WINCHESTER RD. INTERNATIONAL INDIO, CA 92201 TERMITE MATADOR RIVERSIDE, CA 92507 OXFORD DATA & MAIL TEMECULA, CA 92590 28929 ALESSANDRO BLVD. 2522 CAVALCADE CT. SVC MORENO VALLEY, CA SOLAR VENTURES PERRIS, CA 92571 ZZ ROUGH RIDER 469 SAN REMO AVE. IE WATER WORKS 92555 52105 AVENIDA HERRERA 3081 CANYON CREST DR. SAN JACINTO CA 92582 4741 FOXBOROUGH CT. LA QUINTA, CA 92253 XTREME TRANSMISSION STE. B RIVERSIDE, CA 92509 VINNY NAILS - SPA & AUTO REPAIR RIVERSIDE, CA 92507 NEXT LEVEL HOOP 73-910 HWY 111 FORD PROPERTIES 2189 SAMPSON AVE. STARS COMMUNITY FIRST STE. G 73-141 FRED WARING DR. STE. 101 ENERGYGYD 573 WALTZ RD. REALTY & PROPERTY PALM DESERT, CA 92260 PALM DESERT, CA 92260 CORONA, CA 92879 2023 ADOBE AVE. PERRIS CA 92570 MANAGEMENT CORONA,CA 92882 27186 NEWPORT RD. MEX-AMERICAN TAX CONCIERGE, ETC. LAM JIM'S LOCK AND KEY STE. 2 SERVICE OF COACHELLA 50660 EISENHOWER ST. 42090 LORRAINE CIR. NATURAL PET FOOD & 3776 VINE AVE. MENIFEE, CA 92584 49913 HARRISON ST. STE. 1112 MURRIETA, CA 92562 SUPPLIES NORCO, CA 92860 COACHELLA, CA 92236 LA QUINTA, CA 92253 39650 WINCHESTER RD. DISCOVER THE PASS INC MR. KABOB STE. D BE HAPPY NUTRITION 1098 SILVER STAR DR. ROCK CHURCH OF PEA SHOOTS CATERING MEDITERRANEAN TEMECULA, CA 92591 CENTER BANNING, CA 92220 COACHELLA VALLEY 74166 PEPPER GRASS ST. FRESH GRILL 23639 SUNNYMEAD BLVD. 75400 GERALD FORD DR. PALM DESERT, CA 92260 28120 JEFFERSON AVE. AEZ MOVE STE. H CARE PLUS STE. 110 TEMECULA CA 92590 914 PARK AVE. MORENO VALLEY CA 92553 808 DE ANZA CIR. PALM DESERT, CA 92211 B G’S EL PASEO SAN JACINTO, CA 92583 CORONA, CA 92882 73-130 EL PASEO POWDER COATING RIVERSIDE TAX TEAM DESERT STAR REALTY PALM DESERT, CA 92260 BLUES SERVICIOS DE NEGOCIO 5858 MAGNOLIA AVE. FAIRWAY HOMES IN 79926 AMORA DR. 43214 BLACK DEER LOOP DE PONCE STE. A PALM SPRINGS LA QUINTA, CA 92253 SAGEWATER SPA STE. 205 31104 CAMINO VERDE RIVERSIDE CA 92506 78-920 SONESTA WAY 12689 ELISEO RD. TEMECULA CA 92590 TEMECULA, CA 92591 LA QUINTA, CA 92253 MM&M PRODUCTIONS DESERT HOT SPRINGS, CA RIVERSIDE TAX TEAM 69760 CAMINO PACIFICO 92240 JC PRO PAINTING ALKAM CASH FOR GOLD 5858 MAGNOLIA AVE. SIGNS BY TOMORROW- RANCHO MIRAGE, CA 45531 CLUBHOUSE DR. 51706 HARRISON STE. A PALM DESERT 92270 SAGEWATER GET AWAY TEMECULA CA 92592 COCHELLA, CA 92236 RIVERSIDE, CA 92506 73850 DINAH SHORE DR. 12689 ELISEO RD. STE. 101 BRIDAL ANGEL DESERT HOT SPRINGS, CA THOROUGHBRED ORTIZ CONSULTING FAIR TRADE WORLD PALM DESERT, CA 92211 45325 PANORAMA DR. 92240 PREVIEW GROUP 23587 TAFT CT. STE. 15 31152 BELL CIR. 4197 WITT AVE. MURRIETA, CA 92562 STEVE’S DESERT PALM DESERT, CA 92260 CENTURY 21 WRIGHT WINCHESTER, CA 92596 RIVERSIDE CA 92501 HANDYMAN 30610 RANCHO DONA ANA’S PUPUSERIA 73243 CATALINA WAY HEALTHY CHOICE CALIFORNIA RD. BOBI GIFT BASKET MALL AND RESTAURANT PALM DESERT, CA 92260 68030 VISTA CHINO TEMECULA CA 92591 1311 CORONA AVE. 3533 CORONA AVE. 9638 MISSION BLVD. STE. 104 NORCO CA 92806 NORCO, CA 92860 JURUPA VALLEY, CA 92509 PARK VIEW OPTICAL CATHEDRAL CITY, CA IMPALA PALM SPRINGS 68955 RAMON RD. 92234 555 EAST SAN LORENZO USANICA TRANSPORT GUZPAR FRUIT ENERGY BALANCE STE. 6 RD. 16710 TARANO LN. 26418 THOROUGHBRED LN. 26805 HOWARD MANOR CATHEDRAL CITY, CA J R ASSOCIATES, PALM SPRINGS CA 92264 MORENO VALLEY, CA MORENO VALLEY, CA HEMET, CA 92544 92234 REALTORS 92551 92555 43840 SAN YSIDRO CIR. TRIANGLE INN PALM POOLMAN OPTICAL CANDO’S PALM DESERT, CA 92260 SPRINGS LOOKSY COUTURE STAR BUZZ TOBACCO 2411 SUNSET DR. 68955 RAMON RD. 555 EAST SAN LORENZO 120 N. PALM CANYON DR. 790 S. STATE ST. RIVERSIDE, CA 92506 STE. 6 JIM ROSE, REALTOR RD. PALM SPRINGS, CA 92262 STE. F CATHEDRAL CITY, CA 43840 SAN YSIDRO CIR. PALM SPRINGS CA 922564 SAN JACINTO, CA 92583 A&J WELLNESS CLUB 92234 PALM DESERT, CA 92260 DEVINE PLUS CLOTHING 24877 SUNNYMEAD BLVD. HEMET DOG DAYS OF 19171 DIPLOMAT AVE. CUCCINA DELI MORENO VALLEY, CA CART CONNECTION AIR SUPPLY, LTD SUMMER CORONA CA 92881 311 S STATE ST. 92553 76717 CALIFORNIA DR. 583 S. OLEANDER RD. 530 W DEVONSHIRE AVE. HEMET, CA 92543 PALM DESERT, CA 92211 PALM SPRINGS, CA 92264 STE. 79 KNOWSLIP.COM MUTTLY MAKEOVERS HEMET CA 92543-2867 24844 HAYES AVE. INLAND WEST HOME 19353 COWAN RD. FASHION SEASON 2 CAFE SCANDIA MURRIETA, CA 92562 LOANS PERRIS, CA 92570 82204 HWY 111 356 S. INDIAN CANYON DR. HILZ CABEL ASSEMBLIES 504 EAST 6TH ST STE. H PALM SPRINGS, CA 92262 INC HIDDEN TREASURES & STE. B DTHLS, INC. INDIO, CA 92201 31889 CORYDON ST. COLLECTIBLES CORONA CA 92879 23382 HEMLOCK AVE. THE GROUTSMITH STE. 110 28822 OLD TOWN FRONT STE. 103 RUSIK 80509 CAMINO SAN LUCAS LAKE ELSINORE CA 92530 STE. 202 READY SET GROW MORENO VALLEY, CA 3030 RAINBOW LN. INDIO, CA 92201 TEMECULA CA 92592 6386 FERN CT. 92557 BANNING CA 92220 EASTVALE CA 92880 December 2012 BUSINESS JOURNAL • PAGE 43
EXECUTIVEEXECUTIVE TIMETIME OUTOUT The Renaissance Las Vegas Hotel—a Place of Serious Business in Las Vegas By Ingrid Anthony over 1,500 bot- mushroom sauce. Desserts tles and an array include grand Marnier and of unique hand- orange brulee, warm sticky tof- crafted cocktails. fee pudding and bittersweet Some choices warm chocolate cake and other include the exceptional selections. For a Primo (Absolut, less formal and a relaxed dining Canton ginger experience, try Grill 55 which liquor, fresh offers comfort food dishes such lemon and straw- as BBQ chicken, BBQ ribs, fish berry juice); tacos, prime rib along with 5ifty 5ive Mojito favorites as hamburgers and (Flor de Cana turkey wraps. aged rum, hand- Renaissance Las Vegas pressed mint, Hotel offers wedding packages lime and black- for those couples who want a berries, lavender more sophisticated venue in essence and Las Vegas. Special packages You have a business related imity to everything Las Vegas splash soda water); and Sin-U- for corporate meetings or other trip that is being held in Las has to offer and return to your Rita (Espolon tequila, hibiscus, social occasions are also avail- Vegas. You probably think to refuge from the hustle and bus- hand-pressed lime and Serrano, able. yourself, “How is that going to tle of The Strip. If you wish to agave nectar). I think you get If you do not want having to happen with all the noise, travel by the Monorail, it is the picture. fight through a casino to get to smoke and the racket of slot found right outside the hotel. The Envy Steakhouse offers your room and long for a some- machines?” This is a very The Renaissance Las Vegas fine dining from Angus filet to what peaceful time in Las important business trip, and I is a contemporary hotel with bone-in rib eye. Their special- Vegas, but close to the action if don’t want the excess of Las luxurious rooms. Their deluxe ties are, of course, steaks; how- you so wish, the Renaissance Vegas’ distractions with neon standard room includes a 42” ever, if you are not a steak Las Vegas Hotel is a great lights and loud music. flat panel LCD TV, refrigerator, lover, other options are avail- choice for your stay in Vegas. The good news is there are coffee-tea maker, bathrobes, able such as Tuscan veal chop, some hotels in Vegas that offer and even Egyptian cotton bed Dijon crusted lamb chops, The Renaissance Las Vegas peace and tranquility for those liners with down comforters broiled lobster tail, chicken Hotel is located at 3400 who want and need it for those and duvets. The bathrooms are breast, jumbo shrimp and pan- Paradise Road, Las Vegas, occasions. One such hotel is spacious with walk-in showers seared sea bass. Their signa- Nevada 89169. For more infor- the Renaissance Las Vegas and separate full-size bathtubs. ture sauces adds to the delight mation visit their web site at Hotel. It is part of the Marriott The hotel includes a state- of the meal such as pinot noir www.renaissancelasvegas.com chain and is the largest non- of-the-art health club and fit- reduction, béarnaise, spicy or call 702-784-5700. smoking and non-gambling ness center which is open 24- chipotle-gorgonzola and a hotel in the area. If your busi- hours a day, a lush pool area ness is associated with the Las and a 24-hour Vegas Convention Center, it is business center a stone’s throw from that site. which you can Actually, it is the perfect choice even receive for the business traveler with its deliveries and ideal location and calm envi- coordinate all of ronment—and if your family your business has to accompany you, it offers needs. an ambiance of family-friendly Gourmet surroundings without the enthusiasts will smoke and mayhem of the casi- also take pleas- nos located in the lobbies of the ure in their fine other hotels. selections of However, if one does want restaurants. An to see a show and gamble, the award-winning hotel is located just off the Las steakhouse, Vegas Strip—so you do have a Envy, offers a choice. You can enjoy the prox- wine selection of BUSINESS JOURNAL • PAGE 44 December 2012
ping mall where employers, 2014, or default to a federal fall- Health Insurance Exchange and Future of Health... consumers, insurance brokers back program. is in final discussions with other continued from pg. 3 and others can easily view com- For the past 16 years, states as well. informed decisions,” said peting health plans side by side, CHOICE Administrators has In addition to examining the Goldstein. “Trusted, licensed comparing benefits, costs, operated CaliforniaChoice, the future of health insurance and qualified brokers can also provider networks and other nation’s most successful small exchanges, the IEAHU Carrier provide guidance and important features and choose the one that group private exchange. Panel Forum also discussed perspective on everything from best fits their needs. The CHOICE Administrators is also industry issues like the emer- routine issues to serious policy PPACA mandates that all U.S. working in partnership with gence of accountable care interpretation.” states and territories establish Xerox to provide support to the organizations, the importance of Health insurance exchanges and launch their own health Florida Health Choices program promoting a culture of wellness create an online, one-stop shop- insurance exchange by Jan. 1, and the Nevada Silver State in the workplace, and the chal- lenges California’s health plans face in handling the influx of newly insured citizens as a result of the PPACA. Founded in 1990, the Inland Empire Association of Health Underwriters was formed to serve the needs of health insur- ance agents and brokers in Riverside and San Bernardino counties. It also has a satellite chapter, the Desert Empire Sub- Chapter, which serves the mem- bership of the low desert and the Coachella Valley. Representing approximately 200 agents, bro- kers and industry representa- tives, IEAHU is affiliated with the California Association of Health Underwriters and the National Association of Health Underwriters, which boasts more than 18,000 members. CHOICE Administrators Exchange Solutions is part of The Word & Brown Companies, the nation’s leading developer and administrator of consumer- choice insurance exchange models. Among the exchanges currently operated by CHOICE Administrators are the CaliforniaChoice® small group (2-50 employees) and mid-mar- ket (51-199 employees) private exchanges currently serving more than 10,000 employers and more than 150,000 mem- bers; HSA California; Choice Builder, the nation’s first ancil- lary benefit exchange; and Quotit, one of the nation’s largest individual/family pro- posal and online enrollment systems that generated 22 mil- lion individual health quotes in 2011. Other CHOICE Administrators products include Kaiser Permanente Choice Solution and Contractors’ Choice.