1_June_19_2018_issue_lBBJ 6/16/18 6:46 pm page 1

June 19-July 2, 2018 Long Beach’s Newsmagazine www.lbbizjournal.com

Inside This Issue Focus on The hospiTaliTy and Tourism indusTry More Hotel With Debut Of Flashy Fountains, Investment Convention Center Improvements Come Full Circle – So What’s Next? On The Way I By SAMANTHA MEHLINGER transform the Long Beach Convention & En- Hundreds Of Millions EDITOR tertainment Center’s underutilized venues Small Business Showcase into turnkey event spaces that are not only Of Dollars To Be Pumped Page 6 he debut of the new Terrace Theater contemporary, functional and visually unique, T plaza fountains in mid-May repre- but that also offer a cost savings to clients. Into Long Beach Market sented the culmination of a master plan to (Please Continue To Page 20) I By BRANDON RICHARDSON SENIOR WRITER

undreds of millions of dollars are H being invested in new hotel develop- ments in Long Beach, with the downtown area alone to see the introduction of nearly The CVB’s Jeff Forney: 1,000 new hotel rooms over the next several Hospitality Extraordinaire (Please Continue To Page 26) Page 32 Community Hospital MemorialCare, City At Odds Over Transition; Molinas Enter Picture Airport’s Fred Pena Says Aloha I By SAMANTHA MEHLINGER To 49-Year Aviation Career EDITOR Page 43 T he Long Beach City Council is 2 PortSide slated to consider a new operator for Community Hospital tonight, June 19: 2 In The News Molina, Wu, Network (MWN), LLC. City 6 Small Business Dollars & Sense staff will ask the council to allow them to 8 Real Estate & Development pursue exclusive negotiations with the Charlie Beirne, left, general manager of the Long Beach Convention & Entertainment Center, and Steve health care group. 8 Realty Views Goodling, president and CEO of the Long Beach Convention & Visitors Bureau, have collaborated John Bishop, CEO of Community and 11 Newswatch over the past several years to position Long Beach as one of the top destination cities in the country. (Photograph by Matt Fukushima) (Please Continue To Page 18) • Hotel, Rent Control Initiatives • Ross Aviation Lease Approved Entrepreneur Howard Takes Reins Of Chamber Board • Pearce Recall Effort Failing • Charter Amendments Proposed I By SAMANTHA MEHLINGER June 13, replacing outgoing chair Kent Peter- the same lessons she taught to her five-year- • First Power/Hydrogen Generation EDITOR son of P2S Engineering. old students. She sacrificed to put him Howard is a native of Compton, where he through private schools, including the South- Station Plans Announced ohn Howard, a former U.S. Air Force was raised by a single-mother and kinder- ern California Military Academy and • Local Election Results J pilot and owner of the Chick-fil-A fran- garten teacher with a passion for education Brethren Christian Junior & Senior High 18 Community Hospital Update chise at the Long Beach Towne Center for the that she was determined to instill in her son. School. Howard and his mother moved to 20 Hospitality And Tourism Focus past 12 years, was installed as chair of the He recalled that she would come home from Long Beach when he was about 13. Long Beach Area Chamber of Commerce on work when he was a toddler and teach him (Please Continue To Page 16)

Long Beach Business Journal prsrT sTd 2599 E. 28th Street, Suite 212 u.s. posTaGe Signal Hill, CA 90755-2139 562/988-1222 • www.lbbizjournal.com PAID los angeles, ca permiT no. 447 By Editor Samantha Mehlinger CHANGE SERVICE REQUESTED Stop Asking Me If I Hate Men, Or, ‘Feminism For Millennials’ You would think that in the era of the #MeToo She Persisted” and even the visage of Supreme movement and women’s marches when women are Court Justice Ruth Bader Ginsburg emblazoned proudly going about their every day lives with across their chests, that I would not have found my- phrases like “Nasty Woman” and “Nevertheless self in this situation yet (Please Continue To Page 5) 1_June_19_2018_issue_lBBJ 6/16/18 6:46 pm page 2

Page 2 • June 19-July 2, 2018 • Long Beach Business Journal In The News

PortSide Keeping Up With The Port Of Long Beach

Jamilla Vollmann, a deputy project manager on the Long Beach Civic Center project, was first attracted to the city because of the many developments taking place. “I wanted to participate in the city’s urban design,” she said. After starting her career in the bay area, she moved to Long Beach about 15 years ago to work as a city planner. Vollmann then became a project manager for the city’s former redevelopment agency, where she had the opportunity to collaborate on the Gov. George Deukmejian Courthouse and the City of Long Beach Downtown Plan, an outline for the design guidelines and development standards for the area. “It’s exciting to see the plan- ning stages of what I did earlier with the city come to fruition,” she said. Vollmann became an employee of the Port of Long Beach Harbor Department, a department of the city, almost six years ago. She described the civic center, which will house the new port headquarters, as a “once in a lifetime project.” Her responsibilities include designing and reviewing the plans for the site. “Each day is very different,” Vollmann explained. “I’m in meetings most of the week with our own team at the port, as well as with the architects and contractors for the project onsite at the construction trailers. We coordinate many items with the city.” Vollmann said the project is on track for completion next summer. “I’ve always been a big fan of design and seeing a project grow from a concept all the way to construction,” she commented.

– Article and Photograph by Staff Writer Anne Artley

Foundation For The Long Beach Symphony Names First Executive Director – The Foundation for the Long Beach Symphony has named Genevieve Macias to serve as its first executive director. Macias has served as the director of development and communications for the Long Beach Sym- phony since 2013, and will now also lead the nonprofit corporation that serves as the organization’s endowment fund. The foun- dation was created in 1986 and has since been overseen by a board of directors. Ma- cias’s goal is to triple the endowment fund over the next few years. Arts Council For Long Beach Appoints New Director Of Programs – The Arts Council for Long Beach announced the appoint- ment of Lisa Desmidt as its new director of programs. Her responsibilities include overseeing the grants, marketing and arts education programs, as well as managing the organization’s website. Desmidt has served as the arts council’s grants and mar- keting manager for three years. Belmont Heights Community Association Welcomes New Boardmembers – The Bel- mont Heights Community Association has welcomed two new boardmembers, resi- dents Derrick Muska and Scott Gallic. Muska is a real estate agent with Muska Long Beach’s Cabe Toyota Honored With Toyota Motor North America President’s Award Homes at Main Street Realtors. He plans Cabe Toyota, located at 2895 Long Beach Blvd., was recently honored with the annual President’s Award from Toyota Motor North America, Inc. This award to promote family-friendly events and the recognizes American Toyota dealerships that exceed the company’s quotas for vehicle and parts sales, as well as for earning a high level of customer satisfaction. association's outreach program. Gallic is John Cabe, Cabe Toyota’s general manager and dealer principal, said his location has won the award five times in the last six years. Cabe described the deal- an environmental program manager with ership as a family store with many repeat customers. “We’re a smaller dealer. Our employees have been here a long time like our parts and service managers. Cumming Corporation. He is serving as We’ve got guys who’ve been here for 40 years,” he said. “Over the years, we just take care of our customers. That’s our deal.” Cabe’s father and uncle, the organization's treasurer, and looks for- identical twins, started the dealership in 1966. “I was born a few blocks from the dealership,” Cabe remarked. “I haven’t gone very far.” Cabe has served as general manager since the 1980s. “Toyota has been a good partner,” Cabe commented. “They treat their dealers really well, they support us and they make a ward to exploring sustainability-focused great car.” Cabe is pictured in front of a 2018 Toyota Camry, one of the dealership’s bestsellers. (Photograph by the Business Journal’s Anne Artley) community projects. I

The Long Beach Business Journal is a publication of South Coast Pub- Advertising/Editorial Deadlines lishing, Inc., incorporated in the State of California in July 1985. It is pub- Wednesday prior to publication date. Note: Press releases should Vol. XXXI No. 12 • June 19-July 2, 2018 lished every other Tuesday (except between Christmas and be faxed, mailed or e-mailed to: [email protected]. No follow up calls, mid-January) – 25 copies annually. The Business Journal premiered please. For a copy of the 2018 advertising and editorial calendar, FOUNDER AND PUBLISHER March 1987 as the Long Beach Airport Business Journal. Reproduction please e-mail or fax request to 562/988-1239. Include your name, George Economides in whole or in part without written permission is strictly prohibited company and address and a copy will be sent to you. Distribution: SPECIAL ASSISTANT & PHOTOGRPAHER unless otherwise stated. Opinions expressed by perspective writers Minimum 22,000. Pat Flynn and guest columnists are their views and not necessarily those of the Regular Office Hours EDITORIAL DEPARTMENT Long Beach Business Journal. Send press releases to the address Monday-Friday 8:30 a.m.-5:30 p.m. EDITOR shown here: Subscriptions: Office 25 issues – 1 year Samantha Mehlinger 2599 E. 28th Street, Suite 212, Signal Hill, CA 90755 Standard Bulk Rate: $30.00 SENIOR WRITER Ph: 562/988-1222 (add $2 if paying with credit card) Brandon Richardson Fx: 562/988-1239 1st Class: $70.00 STAFF WRITER www:lbbizjournal.com (add $3 if paying with credit card) Anne Artley FREE: Sign up at lbbizjournal.com for Monday Morning Coffee & BizBrief (e-mail sent out at 6 a.m. every Monday about issues, events, meetings for the week; BizBrief is news of the day, sent out around 4 p.m., Monday-Friday) Find us on Facebook • Follow us on Twitter: @LBBizJourn 1_June_19_2018_issue_lBBJ 6/16/18 6:46 pm page 3 1_June_19_2018_issue_lBBJ 6/16/18 6:46 pm page 4 1_June_19_2018_issue_lBBJ 6/16/18 6:46 pm page 5

Long Beach Business Journal • June 19-July 2, 2018 • Page 5 Millennial Pulse

(Continued From Page 1) Like any philosophy, feminism can get again: explaining to another Millennial sticky and complicated if you go too far what “feminism” is. down the theoretical rabbit hole. But I’m I could not tell if, as he blasély half- not expecting anybody to do that. And I asked/half-stated, “Doesn’t that really just think your average guy or gal wearing a mean you hate men,” while he consumed “feminist” shirt doesn’t either. a giant medium rare burger and a 20-ounce The basic issue behind feminism is this: india pale ale, if he was entirely serious. sexism still exists. And unless you have As I looked back at him over my been living under a particularly dense medium well burger (because I don’t like rock, you should know this. You should it to look half-dead, thank you very much) know this because millions of women and my pink glass of rosé, I said, “No. across the world are annually marching That’s a myth perpetuated by the patri- through the streets to remind us. You archy.” I could see the gears start to turn should know based upon the millions of as he now wondered whether I was en- tweets marked #MeToo. Women aren’t tirely serious. doing those things just for kicks. And I think in both cases the truth was Feminism in its most basic form or somewhere in the middle. essence is the belief that the genders I’ve had similar conversations start in should be equal. This means all genders, many ways, often on dates. Sometimes including those that fall within noncon- they begin by asking: are men allowed to forming lines. open doors for women and pay for the It means, for example, that if a man date, or will this cause the woman to were doing the same exact job as me at erupt in a fit of rage? Once, the conver- the same skill level, that we should be sation began after a man in his early 30s making the same amount of money. But asked me why women “can’t just let men study after study shows that in such cases, take care of them anymore.” women on average make less than their Needless to say, my eye-rolling capabil- male counterparts. Both Republicans and ities are now so well practiced that they Democrats – Ivanka Trump and Michelle are second to none. Obama, for example – agree with me on Although I have had these interactions this. So, for that matter, does the United with both men and women my age, about States Bureau of Labor Statistics, which 99% of them have been with men. They’ve has found that women earn about 83 cents occurred over many years, well before the to every dollar a man earns, on average. #MeToo movement and well after multi- So why are Millennial men still asking ple “waves” of feminism, all of which I me if being a feminist is “even necessary” confess rather blur together for me. nowadays? Like many women, I think, feminism I think in part, this problem has to do was not something that occurred con- with what I refer to as the Millennial Bub- sciously to me, at first. ble. That cozy world many middle to It slowly crept up on me after years of upper class Millennials were brought up having my behind grabbed in all manner in. In our classrooms, we celebrated dif- of places – from my high school hallway, ferences. Championed leaders of social to the dive bar down the street from my justice. We learned about the civil rights university, to in my own home by a friend movement and women’s suffrage. We who meant no harm and didn’t understand were taught about all the ways society had where the line was because, well, no one become better. We learned about all the ever made him adhere to one. laws that were repealed and written to re- It slowly crept up on me when in col- solve issues of racism and sexism. lege, as a member of a sorority that annu- History, you see, was a required course ally planned Take Back The Night (an in every year. Current Events was not. event that remembers sexual assault vic- And the problem is, laws can’t erase cen- tims and gives them a platform to speak) turies of prejudices in a snap, or even, as each year I saw more and more women I we are finding, within decades. knew speak up about their own experi- I think many Millennials – particularly ences and began to realize that all the of the white variety, like myself – may alarming statistics they tell you on the have grown up with the perception that news and in college orientations are true. our society had become blind to differ- It slowly crept up on me in some class- ences like gender and race, or that issues rooms, where more men were called upon like racism and sexism were no longer than women. It crept up on me when I prevalent. kicked a man out of a friend’s dorm when My medium-rare burger eating ac- she was clearly incapacitated, and he was quaintance and I talked circles around not. It crept up on me when, getting some of these things. It ended like this. drinks for a friend’s 21st, a much larger “But what about how the men always man put his arm around her shoulders and have to pay the women alimony? Isn’t that refused to step back until I threatened to unfair?” he asked. make “a scene.” “The person who pays alimony is the These are the moments that come to one making more money,” I said. mind when someone my age says to me, “But it’s always the men,” he protested. “Doesn’t that just mean you hate men,” “Well, women still on average make less and I am frozen by the flood of memories, money than men for doing the same job, wondering: how do you begin to explain even at the executive level. They’re less feminism to someone who doesn’t have the likely to be the one making more money,” experiences to know why it’s necessary? I said, adding, with a lilt of finality, “So.” What do you tell them? Is it about the The IPA-lover considered this quietly for wage gap? Is it about sexual harassment? a moment. “You’re a good debater,” he al- Is it about freeing the nipple? Burning lowed. Perhaps jaded, perhaps realistic, I bras? Or the great divider of red and blue: studied his expression wondering if he abortion? added, silently to himself, “For a woman.” I 1_June_19_2018_issue_lBBJ 6/16/18 6:46 pm page 6

6 • June 19-July 2, 2018 • Long Beach Business Journal Small Business Showcase – Redondo Avenue & 10th Street Articles and photographs by Staff Writer Anne Artley Support Local Small Businesses Soul Purpose Michelle Armor, the owner of Soul Purpose, described herself as an “intuitive.” “I don’t need mation; I’m just able to tap in and see your whole life,” she said. This is a talent, Armor explained,any infor- that she has possessed her entire life. “I could see into other people’s lives when I was three or four years old. I didn’t know I was different. I was able to read adults when I was very young and the out.” At Soul Purpose, Armor offers both in-person and virtual intuitive sessions, wherey would she kindguides of hertrip clients to the right path for them. She specializes in couples’ therapy and helping clients overcome addic- tions. Armor estimated that she has about 5,000 clients worldwide, some of whom speak to her through a translator. Armor employs six healers and plans to add on three more by the end of this month. “We have hypnotists, tarot card readers, herbal healers, reiki masters – we all do something different,” she said. Armor described reiki as a form of healing in which practitioners move their hands over a client to clear blocked energy. In addition to various therapies, Soul Purpose also s ells crystals, candles, sage, jewelry and incense. “In just over two years of business, I’ve only sold one thing,” Armor remarked. “I’ve probably given away about $20,000 worth in products. I believe in paying it forward.” Soul Purpose is located at 1032 Redond Ave. For more information, visit soulpurposelongbeach.com or call 714/745-5322. o ai Curry Pizza Sam Vanavi, the owner of Thai Curry Pizza, moved to Los Angeles from Bangkok, Thai- land, when he was 24. Although he had already earned a graduate degree in Thailand, he obtained another degree at a business college in L.A. “I had to start all over,” he said. After a string of odd jobs, he opened Indra Thai Restaurant in Glendale in 1975, which his son now manages. Vanavi’s wife, Sue, a co-owner of Thai Curry Pizza, suggested merging her native cuisine with pizza to appeal to more customers. “The pizza is good for the kids,” Vanavi said. Customers are “crazy about” the Thai Curry Tofu Pizza and Tom Yum Pizza, which are Sue’s original recipes. Curry sauce replaces the traditional tomato spread on the Thai Curry Tofu Pizza, and toppings include basil, onions, bell peppers and tofu. The Tom Yum Pizza is made up of hot and sour Tom Yum Thai sauce, mushrooms, tomatoes, cilantro and chicken. The rest of the menu offers mixed cuisine such as wonton soup, a selection of Thai salads, buffalo wings and hamburgers. Although there is only one Thai Curry Pizza location, Vanavi’s goal is to open two others: one near the Wat Thai Temple in North Hollywood, and the other in Thai Town, a neighborhood in East Hollywood. The Wat Thai Temple is the largest Thai Buddhist Temple in Los Angeles. Thai Curry Pizza is located at 929 Redondo Ave. For more information, call 562/987-3295.

Royal Cup Café Raj Weerakkody, the general manager of the Royal Cup Café, started his business to escape the structuress is not of the corporate world. “I wanted to do something different,” he said. “But the restaurant busine easy. There’s lots of competition, and if you don’t evolve with the competition, you’re goings eatery to go apart. under.” “I According to Weerakkody, the fusion of cuisines from different cultures is what sets hi and Sri wanted different textures and tastes,” he said. Weerakkody draws from American, Hispanic, Cuban Lankan influences. Royal Cup Café offers breakfast all day as well as fruit smoothies, baked goods, salads and a wide selection of sandwiches. Weerakkody said the salads and paninis are his bestsellers. “They’rehem super different,” he said. “Nobody has what we have.” He uses a set of main ingredients and mixes t n- together in different combinations. Some of his staples include chutney, pesto, sundried tomatoes, ove roasted turkey and salami. The café has two other locations: one in Torrance and the other in Santa Monica. “I was a businessperson, but I loved food, so I surrounded myself with really good people,” he said. “Allle. “I of my staff has been with me for 10 to 15 years.” Weerakkody’s favorite part of the business is the peop love the interaction and having them enjoy our food. That’s the whole goal as a service business.” Weer- akkody is pictured at left with manager Yona Elias. Royal Cup Café is located at 994 Redondo Ave. For more information, visit: www.royalcupcafe.com/ or call 562/987-1027. easier to separate your business from personal expenses and immediately pay for day to Small Business Dollars & Sense day business expenses. Need to make large seasonal purchases or cover payroll? – Nearly every small busi- ness will face a time when it needs more cash than it has on hand. A business line of Finding Financing Options For Your Small Business credit may provide fast, easy access to cash (which can bridge gaps in cash flow) and help supplement cash flow for business expansion, taxes, insurance, or other expenses. ou may be overwhelmed with the different business financing op- Want to expand your business or make a large equipment or vehicle purchase? – Ytions out there. From credit cards to bank loans, it can be difficult For a specific business need, business term or equipment loans should be considered. to decide which type of financing to apply for. But choosing the appro- Loans give small businesses immediate access to funds and are ideal for business owners priate type of financing can play a big role in the success of your business. who want a flexible way to get a lump sum at a fixed or variable interest rate for a fixed The key is matching the right business financing to your business needs. period of time. There are many types of loans, including unsecured loans, secured equip- According to a Wells Fargo/Gallup Small Business Index survey, about ment loans, real estate loans, and vehicle loans, and rates and terms vary. one in three small business owners use their own funds or personal credit When evaluating lending options, you should also consider an SBA loan. – Through for their business. Yet as a business seeks to grow, obtaining business government-guaranteed SBA loans, financial institutions are able to extend financing to By Natasha credit is essential and may help finance purchases, build a credit history, a segment of creditworthy small business owners who may not be able to obtain a con- Mata supplement cash flow, and preserve savings. ventional loan or loan terms that meet their business needs. Business owners who are So how do you choose the most suitable credit option for your small business? The type looking to buy real estate, acquire a new business, purchase equipment, fund business of business credit you may need depends on your business goals and how much funding you expansion, make leasehold improvements, or fund construction may find that an SBA need. Following are four common credit needs, and options available to address each one: loan offers more flexible terms than a conventional loan. SBA products include the SBA Need a way to pay for everyday business expenses? –No matter what type of small Express line of credit, and SBA 7(a) and SBA 504 term loans. business you own, you’ll likely have to deal with the same everyday expenses: meals, As small business owners consider credit options, you should consult with a banker to travel, supplies — office and material, etc. When looking for a convenient way to pay for help determine the best option to meet the specific needs of your business. everyday business expenses and a smart alternative to cash, checks, and personal credit (Natasha Mata, a 22-year veteran of Wells Fargo, is region bank president of the greater cards, business credit cards may be a good option. With a business credit card, it may be Central Los Angeles Area, which includes Long Beach and some North Orange County cities.) 1_June_19_2018_issue_lBBJ 6/16/18 6:46 pm page 7

Support Local Small Businesses 1_June_19_2018_issue_lBBJ 6/16/18 6:46 pm page 8

8 • June 19-July 2, 2018 • Long Beach Business Journal Real Estate & Development

WilloW sTreeT

During its June 7 meeting, the Long Beach Planning Commission approved the development of a 65- unit residential project at 1400-1452 Long Beach Blvd. (Rendering courtesy of the City of Long Beach)

I By BRANDON RICHARDSON wood siding, decorative tile, metal siding SENIOR WRITER and metal awnings. The project includes 93 parking stalls in all, and new landscaping Commission Approves throughout. The multi-family project proposal on Plan For Multi-Family Long Beach Boulevard includes 65 resi- Residential Project dential units in a four-story-plus mezzanine The Long Beach Planning Commission building that totals nearly 69,000 square unanimously approved two projects during feet of living space. The project site is cur- laKeWood BouleVard its June 7 meeting: a three-restaurant rede- rently developed with surface parking lots velopment of the southeast corner of Lake- and auto repair and moving truck rental wood Boulevard and Willow Street and a businesses. multi-family project at 1400-1452 Long The project includes 2,100 square feet of Beach Blvd. Both projects passed with four ground-floor commercial space and the votes, as three commission members were residential units would be for sale. Unit absent from the meeting. sizes range from 720 square feet to 1,705 The commercial project will replace square feet and the building has a mix of Spires Restaurant and a portion of the Amer- one-, two- and three-bedroom floor plans. ican Tire Depot. The project calls for the de- The complex will also include a total of 90 The Long Beach Planning Commission unanimously approved plans to redevelop the southeast corner velopment of two pads for the construction parking stalls, with 36 garage stalls, 32 of Lakewood Boulevard and Willow Street, which is currently occupied by Spires Restaurant, during its of three restaurant tenants. Pad 1 will consist covered stalls and 22 open stalls. The build- June 7 meeting. The current restaurant and part of an existing tire shop would be demolished to make way for a Starbucks with drive-thru, an unidentified fast-casual restaurant and a Jack in the Box with a of a 4,238-square-foot building that will ing includes 3,450 square feet of common drive-thru. (Site map courtesy of the City of Long Beach) house two tenants, one of which has been and shared open space, such as a roof deck, identified as a Starbucks with a drive-thru a media and game room and a fitness room. New Leases And • Geosyntec Consultants signed a lease lane, and the other an unidentified fast ca- Included with the project is the construc- Business Reopenings for nearly 7,000 square feet of space at 211 sual restaurant. Pad 2 will consist of a 2,516- tion of a 12,000-square-foot parklet “from E. Ocean Blvd. to open its first Long Beach square-foot building that will become a Jack the eastern edge of Long Beach Boulevard The following is a list of new leases and office location, according to Smith. The in the Box with a drive-thru lane. to the southerly prolongation of the eastern business reopenings obtained from CBRE space is an expansion of their Huntington The existing tire shop is 11,000 square property line of the project site,” according Senior Vice President David Smith, Lee & Beach office, with a seven-year lease, feet but will be reduced to 5,073 square feet to city documents. The parklet will close Associates Commercial Real Estate Serv- Smith said. The company plans to open the and maintain its current use. The new 14th Street to vehicular traffic in that area ices Principal Jeff Coburn, and Bixby office on August 1, he added. buildings will feature a combination of ex- to provide active and passive open space Knolls Business Improvement Association • Crunch Fitness is opening a new Long terior finishes, including smooth stucco, for the community and future residents. Executive Director Blair Cohn: Beach location in the former 24 Hour Fit-

net worth for many Americans – and is an Supply and demand are the key elements are also in a spending mood, boosted by re- important step in accumulating personal fi- that determine prices, however, and nor- cent tax cuts and rising wages.” Realty Views nancial assets over the long term,” said mally when sales go down, prices tend to NAR expects a healthy jobs market and Randy Noel, chairman of the National As- stagnate. But that is not the situation right lower taxes to help housing demand, but Home Is Where The sociation of Home Builders (NAHB). now. The number of contracts signed in with mortgage rates now at a seven-year Americans had a record-high $14.4 tril- April for the purchase of resale homes in high and prices increasing, many are wor- Wealth Is In The U.S. lion of equity in their homes in the fourth the United States unexpectedly declined by rying about the affordability factor. quarter of 2017, and the national homeown- 1.3% in April, according to the National “The unfortunate reality for many home Even with the stock ership rate of 64.2% is up after bottoming Association of Realtors (NAR). The sales shoppers is that reaching the market will re- market and Wall Street en- out to a low of 62.9% in the second quarter index for the Western part of the country main challenging if supply stays at these joying a strong run with 2016. However, this number is still down was the lowest since June of 2014. dire levels,” said Lawrence Yun, NAR’s many share prices setting from the peak of 69.2% in 2004 and remains And according to the real estate website chief economist. “Demand for buying a records, over on Main below the 25-year average rate of 66.3%. Zillow, the national median home price has home is very robust. Listings are typically Street it appears that “We must continue to address the obsta- increased 8.7% since last year – and appre- going under contract in under a month, and homeownership is the pri- cles that remain for many potential home ciation is the fastest since June of 2006 – instances of multiple offers are increasingly By terry ross mary driving force for buyers, including factors that increase the well before the recession, when the rate of common and pushing prices higher.” most Americans and is set- cost to build new homes. Skyrocketing increase was 9%. In the Los Angeles-Long Considering that home values are just ting records – as it has been for decades. costs for lumber is the number one chal- Beach-Anaheim area, the home price in- now getting back to pre-recession levels According to the most recent edition of lenge for builders right now,” Noel added. crease is 8.4%; in the Riverside area it is after a decade of financial turmoil, it is the Survey of Consumer Finances pub- Real estate markets throughout the 9.2% and in San Francisco the increase is good news for those who now own their lished by the Board of Governors of the country are experiencing an unusual phe- 11.4% since last year. own homes that values are climbing. And Federal Reserve, consumers’ homes – nomenon in that prices keep going up – “Home values are rising faster than it demonstrates that, despite all the hype their primary residences – amount to one but listing and sales contract numbers are we’ve seen in a very long time,” noted about other investments, owning a home is quarter of all equity assets held by house- going down. The increased cost of lumber Aaron Terrazas, senior economist at Zillow. still one of the most solid and stable forms of holds. Based on the latest figures from – much of it due to the trade dispute with “The spring home-shopping season has wealth accumulation. 2016, household equity is the largest part Canada that has increased the price of a been a perfect storm of strong demand and (Terry Ross, the broker-owner of TR of most consumers’ total net worth, in- new single-family home by $9,000 – is tight supply. Sluggish new construction has Properties, will answer any questions cluding other financial assets and retire- adding to new home costs, along with the exacerbated the supply situation, and about today’s real estate market. E-mail ment accounts. added costs of regulations that builders homes that are hitting the market are mov- questions to Realty Views at “Homeownership is a primary source of encounter today. ing very quickly once they do. Americans [email protected] or call 949/457-4922.) 1_June_19_2018_issue_LBBJ 6/17/18 12:03 PM Page 9

Long Beach Business Journal • June 19-July 2, 2018 • Page 9 Real Estate & Development

ness located at the City National Bank be announced soon – a 2,500-square-foot building, 100 Oceangate, according to convenience store, a 1,500-square-foot Smith. The 24,500-square-foot, state-of- sandwich shop and a 1,500-square-foot the-art gym is set to open tomorrow (June chicken restaurant. The property has two 20). The grand opening party will run from additional storefronts with no currently in- 10 a.m. to 4 p.m. and feature music, ven- terested parties. dors, enrollment specials and raffle prizes. Summer Deal Making Series • First Choice Loan Services Inc. signed For Commercial Real Estate a lease for 2,500 square feet at 3910 Cover St. in Douglas Park, according to Coburn. The Long Beach Commercial Real Es- The company is relocating from its current tate Council is featuring Tyson Sayles of Long Beach location at 6695 E. Pacific Ensemble Real Estate Investments as a Coast Hwy., Suite 250, in the Marketplace. speaker during its Summer Deal Making • The R.O.A.D.S. Foundation signed a Series during its member breakfast July 13. 7,000-square-foot lease at 4800 E. Los Sayles, Ensemble’s principal for residential Coyotes Diagonal, for the former East and mixed-use properties, will focus on the Long Beach Police Station property owned company’s Sonata Modern Flats develop- by the Automobile Club of Southern Cali- ment, which features 112 residential units fornia, Coburn said. The company is cur- located at 207 Seaside Way. The series of- rently located at 121 S. Long Beach Blvd. fers members and guests “exclusive and The foundation did not immediately re- unique ground-floor retail deal making op- spond for comment and it is unknown if portunities for projects in development that the Long Beach lease is for an expansion require leases to be signed within the next or relocation. 120 days,” according to the council. The • After suffering a fire in December event is being held at The Grand, 4101 E. 2016, George’s ‘50s Diner at 4390 Atlantic Willow St., and begins at 7:30 a.m. To reg- Ave is currently in a soft-opening phase, ister for the event, visit www.lbcrec.com. with a planned grand opening on June 23, Construction Costs See according to Cohn. Large Increase In May Cherry & Spring Retail Due To New Tariffs Center Nears Completion Construction costs increased in May due Construction of the new retail strip cen- to steep increases in building and road ma- ter on the northeast corner of Cherry Av- terials, particularly those subject to new tar- enue and Spring Street should be iffs that could drive prices even higher, completed in the next several weeks, ac- according to the Associated General Con- cording to Robert Park, who is handling the tractors of America’s analysis of new U.S. leasing of the property. Though no leases Labor Department data. have been finalized, Park said three should (Please Continue To Page 10) 1_June_19_2018_issue_LBBJ 6/17/18 12:03 PM Page 10

10 • June 19-July 2, 2018 • Long Beach Business Journal Real Estate & Development

On June 9, Loiter Stepp Commercial Sells Galleries an- nounced the grand Complex For $4.88 Million opening of its Stepp Commercial Principal Robert Stepp newest pop-up col- and Vice President Todd Hawke represented laborative, “Loiter the seller, a private LLC, in the $4.88 million Pop Up Galleries.” sale of San Antonio Apartments at 1090 E. The art gallery will be located at 375 San Antonio Dr. “The affluent Bixby Knolls is a highly desirable residential area in Long N. Promenade at 15,638-square-foot building consists of The Streets in Down- Beach,” Stepp said. “The property is advan- 24 units on a 0.34-acre lot. The 1961 town Long Beach tageously positioned across the street from building includes 20 one-bedroom/one- into the summer. the beautiful Bixby Knolls Park. The buyers bathroom units, three two-bedroom/one- The space is led by plan to add value to the property, which of- Long Beach artists bathroom units, and one three- Vinny Picardi and Monica Fleming, and it provides local artists a place to showcase their work for little bedroom/two-bathroom unit in the Bluff or no cost. “We will be the debut artists of what will hopefully be the first of many pop up gallery showcase Heights neighborhood. The complex fea- opportunities for Long Beach artists in temporarily available storefronts,” Picardi and Fleming said in a tures 12 single-car garages, an inner joint statement. “As cities redevelop, available gallery space is out of reach for most artists. Our goal is to ensure Long Beach artists will always have a venue to present their work.” Pictured from left: Picardi; courtyard and on-site laundry. Jennifer Kumiyama, a representative from the office of 1st District Councilmember Lena Gonzalez; and NAI Capital Sells Multi-Family Fleming. (Photograph courtesy of Pier Communications) Property For $1.4 Million “Prices jumped at double-digit annual The association noted that the impacts of fers a potential 15 percent rental increase in NAI Capital Multifamily Services rates for metals, lumber and plywood, and the U.S. imposed tariffs on steel and alu- a non-rent-controlled market.” Built in 1948, Group Vice President Mario Gandara and diesel fuel, while ready-mixed concrete, as- minum imports from Canada, Mexico and the two-story, 20-unit apartment complex Associate Ramzy Prado represented the phalt paving and roofing materials also had the European Union have not been re- consists of 16 one-bedroom units and four seller, a private investor, in the $1.4 mil- unusually large increases,” Ken Simonson, flected in the most recent data. The pro- studio units. The transaction closed at a price lion sale of an apartment complex at the association's chief economist, said in a ducer price index for all materials used in of $243,750 per unit and the buyer was a pri- 1432 Gaviota Ave. “Through our exten- prepared statement. “The cost of all goods construction projects rose 2.2% in May vate investor. sive marketing techniques, experience used in construction rose 8.8% from May alone and 8.8% in the last 12 months, the Bogie Investment Group and knowledge of the market we were 2017 to May 2018, the steepest annual in- steepest year-over-year increase since July Completes $6.5 Million able to produce multiple offers,” Prado crease in nearly seven years.” 2011, the association added. said. “We created an auction environment Data indicates that the producer price “Considering the impact that the mere Multi-Family Transaction to get the best and highest price. The index increased 17.3% for aluminum mill threat of tariffs has had on materials prices Marcus & Millichap’s Bogie Invest- final cap rate was a 4.29% and a 13.33 shapes, 13.9% for lumber and plywood, and demand, prices are likely to increase ment Group founder Steve “Bogie” Bo- gross rent multiplier.” The transaction is 13.8% for copper and brass mill shapes and further as the new trade restrictions come goyevac and Senior Associate Shane a record-setting sale on price per square 10% for steel mill products from May 2017 online,” Stephen Sandherr, the association’s Young represented the buyer, a local in- footage for 1920 construction in Long to May 2018. Additional increases were chief executive officer, said. “Forcing con- vestor, in the more-than-$6.5 million sale Beach, Gandara added. The single-story seen in the price of diesel fuel, asphalt felts tractors to pay more for materials and wait of a multi-family property at 3121 E. complex consists of nine studio units and and coatings, ready-mix concrete, and longer to receive them will make construc- Marquita St. The Encino office of Marcus a single one-bedroom unit. The complex paving mixtures and blocks. tion more costly and slower.” & Millichap represented the seller. The is 100% occupied. I 1_June_19_2018_issue_lBBJ 6/16/18 6:46 pm page 11

Long Beach Business Journal • June 19-July 2, 2018 • Page 11 Newswatch

Long Beach Gray Panthers and the Long the company currently occupies at Long Signature Verification To Begin For Beach Tenants Union. Other organizations Beach Airport (LGB), which will allow the such as Better Housing For Long Beach company to develop new hangar space. Hotel Workplace Initiative; Rent and the Apartment Association of Southern “We welcome Ross Aviation’s current and California Cities have spoken out against future operations at Long Beach Airport,” Control Backers Look To 2020 it, as has the Business Journal. I LGB Director Jess Romo told the Business Journal. “They consistently demonstrate strong operational fundamentals with excel- I By ANNE ARTLEY amount of affordable housing in the city. City Council Approves lent customer service, enhance the airport’s STAFF WRITER The proposal would set a maximum al- appeal to aeronautical users, and contribute lowable rent increase based on the con- Airport Lease With to the airport’s role as an economic engine While the Long Beach City Clerk’s of- sumer price index, the average that Ross Aviation for the city and the region.” fice is slated to begin verifying signatures consumers pay for goods and services. No On August 21, the City of Long Beach for one proposed local ballot initiative, to more than one rent increase per year could released a request for proposals (RFP) for qualify it for placement on the November be enacted. It would also establish just I By BRANDON RICHARDSON the development of 31 acres on the west ballot, another is still in the signature-gath- causes for eviction and a rent board to han- SENIOR WRITER side of the airport. The RFP included five ering phase. dle appeals. It would make rents retroactive parcels located east of Cherry Avenue, ad- The city clerk’s office tallied 46,084 sig- to January 1, 2017. During its June 12 meeting, the Long jacent to the 90-acre former Boeing C-17 natures for a ballot initiative aimed at cre- In addition to Housing Long Beach, Beach City Council unanimously approved Globemaster III manufacturing site: Parcel ating hotel worker safety protections and other supporters of the proposal include the new lease terms with Ross Aviation for space (Please Continue To Page 12) workload restrictions, which the Long Beach Coalition for Good Jobs and a Healthy Community submitted on May 22. The clerk’s office is slated to begin the ver- ification process, which ensures that the signatures are from Long Beach registered voters, on June 21. The deadline to com- plete this process is July 5. The proposed Hotel Workplace Require- ments and Restrictions ordinance would apply to hotels with 50 or more rooms. It mandates that hotels provide personal alarms to employees who work in guest rooms without other workers present, and to post signage informing guests of this prac- tice. The proposed ordinance also restricts the amount of space a worker is allowed to clean in an eight-hour workday, and bars ho- tels from assigning more than two hours of overtime in a day without written consent. However, a unionized hotel may receive ex- emptions to the proposed regulations. The Long Beach City Council voted down a similar ordinance by a narrow mar- gin last fall. Councilmembers who voted against it were Suzie Price, Al Austin, Stacy Mungo, Dee Andrews and Daryl Supernaw. The Long Beach Hospitality Alliance, an arm of the Long Beach Area Chamber of Commerce, also expressed opposition to that ordinance and to the current proposal. The Business Journal is also opposed to the initiative. “The fact that if a non-union hotel unionizes exempts it from the initia- tive’s requirements says it all,” stated Pub- lisher George Economides. “This has nothing to do with helping employees and everything to do with gaining more union members and dues for union bosses.” The other proposed city ballot initiative would establish a rent control policy in Long Beach. After failing to meet the June deadline to qualify for the November bal- lot, members of the #RentControlNOW Coalition behind the proposal are striving to submit their petition signatures by July 30. If they achieve their goal, the initiative could qualify for the March 2020 ballot, ac- cording to Long Beach City Clerk Monique De La Garza. “We were originally gunning for the No- vember 2018 election. But we had created a multitude of plans, so depending on how the campaign ended up going we’d be fine submitting to either,” Jordan Wynne, a community organizer for coalition member Housing Long Beach, said. “The sooner we can get this issue heard, the more rapidly and efficiently we can help tenants in this city.” Housing Long Beach is a nonprofit that aims to improve and increase the 1_June_19_2018_issue_lBBJ 6/16/18 6:46 pm page 12

12 • June 19-July 2, 2018 • Long Beach Business Journal Newswatch ross aviation lease are still underway for its proposal for Parcels in the councilmember’s district or are not Devin Cotter as her former chief of staff in A, B, a portion of D, and land between registered to vote, according to data pro- 2016 despite being engaged in a romantic (Continued From Page 11) Parcels A and D. No details have been re- vided by City Clerk Monique De La Garza. relationship with him, as well as a later road- A, 11.18 acres that formerly served as leased regarding the terms of the lease or fu- To trigger a recall election, 6,363 signa- side incident in which the two were engaged parking for Boeing employees at the C-17 ture development plans for the site. tures from verified registered voters of the in a dispute that resulted in a police call. Ad- site; Parcel B, 2.86 acres; Parcel C, 3.17 “We are in preliminary conversations 2nd District would be required. ditionally, the state attorney general is inves- acres; Parcel D, 6.83 acres; and Parcel E, with the Long Beach Airport about our Pearce provided the following statement tigating Pearce’s office for misuse of public 6.87 acres. Current LGB tenants Ross Avi- presence there and anticipate additional to the Business Journal regarding these ini- resources for political purposes. ation and Gulfstream Aerospace Corp. sub- discussions with them over the next several tial findings: “The City Clerk’s Office has Pearce publicly apologized for these mat- mitted proposals by the November 1 months,” a Gulfstream representative told been doing a diligent job ensuring the will ters at the May 22 council meeting. deadline. the Business Journal. “We remain commit- of the voters is clear. We look forward to Patton said that, despite the outcome of Ross Aviation has an existing long-term ted to our presence in Long Beach.” I the 21st [of June] when the district and the the recall initiative, he believes Pearce’s po- lease for 12.16 acres adjacent to the area city can fully focus on delivering the results litical career is over. “She is 100% done,” encompassed within the RFP. The company our constituents count on.” he said. I also has a month-to-month lease for Parcel Ian Patton, spokesperson for the recall C, which prohibits the company from de- Councilmember Pearce committee, said that there had been issues veloping the site. Under the new lease Recall Effort Appears with paid signature-gathering efforts pro- terms, both leases will be rolled into one vided by the Friends of Long Beach PAC. First Of Three Public 31-year lease for the combined 15.33 acres. To Have Failed Patton would not confirm who was associ- “The lease will require Ross [Aviation] ated with the PAC. “They encountered a Hearings Held On to invest a minimum of $4 million for the number of issues with the vendors they development of Parcel C, which no devel- I By SAMANTHA MEHLINGER hired, beginning with a company called Proposed Charter oper would undertake with only a month- EDITOR Method Campaign Services,” he said. The Amendments to-month agreement in place, where either committee never received 2,000 signatures party could terminate upon 30 days’ no- An initial count by the Long Beach City that company collected, according to Pat- tice,” airport staff said in an e-mail to the Clerk’s office has found that the validity of ton. Thousands of others were received the I By BRANDON RICHARDSON Business Journal. “The lease will go into about 47% of signatures gathered in an ef- night before they were due. SENIOR WRITER effect upon the mutual execution of the fort to force an election to recall 2nd Dis- “My basic comment on the entire thing agreement by landlord and tenant.” trict Councilmember Jeannine Pearce are in is that we ended Jeannine Pearce’s career. During a joint meeting of the Long Ross Aviation did not respond to multiple question. The clerk’s staff is in the process We achieved that by getting a unanimous Beach City Council and the Long Beach requests for comment. During an August of verifying its initial assessment by re- censure vote officially condemning her Charter Amendment Committee, Mayor 2017 interview with the Business Journal, counting the signatures by June 21. If these conduct on the record by the City of Long Robert Garcia and City Auditor Laura Ross Aviation General Manager Greg Mc- statistics hold up, the recall effort will fail. Beach, a unanimous vote of the city coun- Doud presented five proposed charter Queary said the company plans to build The 9,050 signatures submitted by the cil,” he said. amendments they hope to get on the No- hangar space large enough to accommodate Committee Supporting the Recall of Coun- On May 22, the council censured Pearce vember ballot. two Gulfstream 650s, which he noted as a cilmember Jeannine Pearce were verified for conduct that they alleged raised ques- “I’ve joined with City Auditor Laura missing link for larger aircraft at LGB. by the clerk’s office. Of those, 4,266 are in tions of sexual harassment, conflict of inter- Doud in supporting these measures be- Gulfstream already has 22.55 acres under question, mostly because they appear to est and failure to adhere to the city’s ethics cause they are smart reforms, common in direct lease at the airport and negotiations have been made by people who do not live code. These issues stem from Pearce hiring other large cities, and will make our gov- 1_June_19_2018_issue_lBBJ 6/16/18 6:46 pm page 13

Long Beach Business Journal • June 19-July 2, 2018 • Page 13 Newswatch

One of the Long Beach date the water and gas departments under during which there was some dissent but he could support the amendents. That ex- a newly formed Utilities Commission; and mostly support. However, many supporters ception: a third term for the mayor and city Charter Amendments Proposed establish an ethics commission comprised shared concerns about the phrasing and councilmembers. Is To Provide A Third Four-Year of Long Beach residents to monitor, admin- vagueness of some of the amendments. “If the recommendation is that current ister and enforce governmental ethics laws Garcia assured members of the audience elected officials would be able to serve a Term For The Mayor And in the city. that he looks forward to working with res- third term, then voters will view it as self- City Councilmembers “In regard to the city auditor authority idents and advocate groups to hash out the serving and defeat it, and in fact could charter amendment, this change is needed finer details of the proposals, a sentiment cause all five amendments to lose,” he to update 110-year-old, obsolete language. echoed by several councilmembers, includ- said. “There are a lot of talented, smart ernment more effective and efficient,” [It] will make it explicit and accurately re- ing Vice Mayor Rex Richardson. people who live in Long Beach who don’t Garcia told the Business Journal follow- flect the performance audit services that “I just wanted to let the public know, I run because it’s extremely difficult and ing the hearing. we’ve been providing for decades,” Doud hear you. We’re not just a rubber stamp,” costly to go up against an incumbent. State law requires that three public hear- told the Business Journal. “We also want to Richardson said during the hearing. “This Leadership change is good, bringing new ings be held over a 60-day period prior to make it explicit in the charter that we are is an exciting process, I believe, to make ideas is good.” any decision being made to place city char- authorized to examine all city records – un- our city work better and we want you to en- He added, “Remember, if your con- ter amendments on a ballot and that a ma- less restricted by law – that are necessary gage in that process.” stituents like the job you’re doing and want jority of voters must approve them. The to conduct honest and thorough audits.” Business Journal Publisher George to keep you around a third term or longer, next charter amendment hearings are Doud explained that the city auditor Economides said that, with one exception, you can run as a write-in.” I scheduled for July 17 and August 7. During amendment would bring Long Beach more these meetings, updated information will in line with the auditing profession’s stan- be presented, public comment will be heard dards and best practices, as well as those of and changes to the proposed amendments other major California cities such as Los will be made. At the final hearing, the city Angeles, San Diego, San Francisco and council will decide whether to put one, Sacramento. She added that she fully sup- some or all of the proposed charter amend- ports all five charter amendments, as they ments on the November ballot, according would provide transparency and accounta- to City Attorney Charles Parkin. bility in the city government. If placed on the ballot and approved by Garcia stated that the redistricting com- voters, the five amendments would: allow mission is especially important to him, as for the mayor and city councilmembers to city councilmembers should not be draw- serve three terms rather than two, and elim- ing their own districts. He added that the inate the term-limits loophole for write-in goal is to ensure the city’s diverse commu- candidates; create a citizens redistricting nities are represented fairly and that he commission that would redraw city council hopes commission applicants will be se- districts every 10 years, with the first new lected at random, as opposed to being se- map being adopted before the end of 2021; lected by the mayor, similar to the City of authorize the city auditor to conduct per- Los Angeles system. formance audits of city departments, More than 40 minutes of the one-hour boards, commissions and offices; consoli- hearing were dedicated to public comment 1_June_19_2018_issue_lBBJ 6/16/18 6:46 pm page 14

14 • June 19-July 2, 2018 • Long Beach Business Journal Newswatch

Richard Cameron, managing director Plan Released For America’s First 100% Renewable of planning and environmental affairs for the port, is excited about the future poten- Power/Hydrogen Generation Station At Port Of Long Beach tial of the project beyond Toyota’s imme- diate needs. He noted that Toyota is I By SAMANTHA MEHLINGER print and to build a fuel cell plant called The function of the Toyota’s Port of Long testing a zero-emission, hydrogen fuel EDITOR Tri-Gen that would produce hydrogen to Beach facility is to receive and process ve- cell powered Class A semi-truck within supply a new hydrogen pumping station for hicles from overseas, according to Jamese the port complex, and speculated that the The Port of Long Beach and its tenant, the company’s hydrogen-powered vehicles, Yarber, senior manager of TLS. “For our development of this technology could be Toyota Logistics Services (TLS), have re- such as the Mirai. dealers, we put on post production acces- partly behind Toyota’s motivation in leased a draft plan for North America’s first “When it comes online in 2020, Tri-Gen sories to the vehicle. We add vehicle con- building hydrogen fueling station. Yarber 100% renewable megawatt carbonate fuel will generate approximately 2.35 tent to help our dealers increase the sale of confirmed this. cell power generation plant as part of megawatts of electricity and 1.2 tons of hy- the unit,” she said of work at the terminal. Cameron said he hopes that, down the planned improvements to Toyota’s Pier B drogen per day, enough to power the equiv- “And then the second thing we do is we’re road, there might be the potential to form a terminal at the port. alent of about 2,350 average-sized homes responsible for the logistics of those units private-public partnership with Toyota for The company, a division of Toyota Motor and meet the daily driving needs of nearly from the facility to our dealer network on hydrogen fueling needs if the new drayage North America, is seeking to consolidate its 1,500 vehicles,” an announcement made by the West Coast,” she explained. Vehicles technology takes off on a larger scale. facilities within the existing terminal foot- Toyota in November stated. are distributed both by truck and by rail. “These are exciting times,” he said. Multiple buildings onsite would be com- A final internal vote by Toyota on bined into a new LEED certified structure, whether to go forward with the project is according to the plans. Russ Koble, manager scheduled in August, according to Yarber. of brand communications for TLS, said the “After that point we will be ready to break changes would result in a “big reduction” in ground. And our hope is to do that prior to air emissions at the facility. Consolidated the end of calendar year 2018,” she said. operations would include offices, car wash- The draft study for the project is avail- ing, fueling, auto body work and other serv- able for public comment at ices, according to a statement from the port. www.polb.com/ceqa. I San Pedro Bay Ports To Give Update On Clean Air Action Plan

I By BRANDON RICHARDSON last year and calls for greenhouse gas emis- SENIOR WRITER sions to be reduced to 1990 levels by 2020. The ports are holding up to four advisory The ports of Long Beach and Los Ange- meetings in 2018 to update stakeholders on les are hosting the second advisory meeting the plan’s progress. The first meeting was of 2018 on June 26 to discuss progress on held on March 29. During the upcoming the San Pedro Bay Ports Clean Air Action meeting, staff from both ports will discuss Plan (CAAP) 2017 update. The meeting near-term priorities for implementation, will take place from 1-3 p.m. at the Crowne next steps for the Clean Truck Program, the Plaza Los Angeles Harbor Hotel, 601 S. status of technology demonstrations and Palos Verdes St., San Pedro. timelines for feasibility assessments. The 2017 update is “a comprehensive The ports of Long Beach and Los Ange- strategy for accelerating progress toward a les are hosting the second advisory meeting zero-emission future while protecting and of 2018 on June 26 to discuss progress on strengthening the ports’ competitive posi- the San Pedro Bay Ports Clean Air Action tion in the global economy,” according to a Plan (CAAP) 2017 update. The meeting joint statement released by the ports. Since will take place from 1-3 p.m. at the Crowne the plan’s original adoption in 2006, San Plaza Los Angeles Harbor Hotel, 601 S. Pedro Bay port-related diesel particulate Palos Verdes St., San Pedro. matter has decreased 87%, nitrogen oxide The 2017 update is “a comprehensive emissions have decreased 56% and sulfur strategy for accelerating progress toward a oxide emissions have decreased 97%. The zero-emission future while protecting and 2017 update set target dates for a reduction strengthening the ports’ competitive posi- of greenhouse gases to 40% below 1990 tion in the global economy,” according to a levels by 2030 and 80% below 1990 levels joint statement released by the ports. Since by 2050. The plan acts as an extension of the plan’s original adoption in 2006, San California Assembly Bill 32, which passed (Please Continue To Top Of Next Page) 1_June_19_2018_issue_lBBJ 6/16/18 6:46 pm page 15

Long Beach Business Journal • June 19-July 2, 2018 • Page 15 Newswatch

Pedro Bay port-related diesel particulate Wells Fargo Celebrates The Grand Opening Of Its Newest Long Beach Branch matter has decreased 87%, nitrogen oxide Though it opened for business on April 2, the new Wells Fargo Bank branch at 4411 E. Pacific Coast Hwy. celebrated its grand opening on June 16. The event emissions have decreased 56% and sulfur included a ribbon-cutting ceremony, a photo booth, games, a DJ and face painting. Appearances were made by the L.A. Galaxy’s Efrain Alvarez and the iconic oxide emissions have decreased 97%. The Wells Fargo Stage Coach. 2017 update set target dates for a reduction Chick-fil-A, which shares a of greenhouse gases to 40% below 1990 parking lot with the new levels by 2030 and 80% below 1990 levels branch, catered the event. by 2050. The plan acts as an extension of The branch has 10 team members and the services California Assembly Bill 32, which passed it provides include cashier last year and calls for greenhouse gas emis- checks, check cashing, sions to be reduced to 1990 levels by 2020. money orders, new ac- The ports are holding up to four advisory count openings, notary meetings in 2018 to update stakeholders on services, medallion stamp- the plan’s progress. The first meeting was ing, mortgage consulting held on March 29. During the upcoming and financial advising. Pictured from left: Dennise meeting, staff from both ports will discuss Banuelos, service man- near-term priorities for implementation, ager; Shabnam Ebrahimi, next steps for the Clean Truck Program, the Beach Harbor district man- status of technology demonstrations and ager; Jason Guerrero, per- timelines for feasibility assessments. sonal banker; Dina Noe, The meeting is open to the public and branch manager; and those in attendance are allowed to comment Dorsha Wilson, personal banker. Not pictured: on CAAP and its implementation. For more Natasha Mata, region information on CAAP, visit www.cleanairac- bank president; Javier tionplan.org. Marquez, personal 8The meeting is open to the public and banker; and tellers Araceli those in attendance are allowed to comment Garibaldo, Arlene Nava, on CAAP and its implementation. For more Keiona Dismute, Selene information on CAAP, visit www.cleanairac- Hernandez and Tiffani Davila. (Business Journal tionplan.org. I photograph by Brandon Richardson) pile a report by January 1, 2020, detailing and the city’s Catholic charities currently age and transportation to support the shel- State Program expenditures, the number of homeless in- provide access to 259 shelter beds, the ter; grants to organizations offering innova- Invests $12 Million dividuals served, and progress toward city’s homeless population of 2,000 ex- tive approaches to tackling homelessness; homelessness reduction goals. ceeds that supply. Garcia’s goal is to open and a pilot program to fund work opportu- In Reducing This grant comes as the city is beginning a year-round shelter that serves more than nities. Obtaining the funds requires the city its Everyone Home Long Beach initiative, 125 people per night. to declare a homelessness crisis, an action Homelessness an effort to increase cohesiveness among City staff are drafting a list of other pos- the Long Beach City Council is implement- the programs already in place to address sible one-time expenditures, including stor- ing in the next few weeks. I In Long Beach homelessness. A task force comprised of community leaders is at the forefront of the program, and they met on Friday, June 15 I ANNE ARTLEY By for the first time. STAFF WRITER “Securing these funds was the top leg- islative priority of California’s big city Long Beach joins California’s largest mayors,” Long Beach Mayor Robert Garcia cities in receiving one-time funds from the stated in a press release. “For Long Beach, state’s Homeless Emergency Aid Program. it means significant funding for us to meet The program’s budget for fiscal year 2019 our goal of opening a year-round city shel- allocates $12 million for city initiatives to ter, and some innovative approaches to ad- fight homelessness. dressing homelessness across the city.” Since January, the mayors of California’s The Homeless Emergency Aid Program 11 most populated cities have advocated budget includes $500 million in one-time for state funding to address homelessness, funding to local governments. Statewide, the since they are on the front lines in combat- funding will be split three ways: $250 million ing the crisis. Representatives of these allocated to continuums of care; $150 mil- cities will work with the California Depart- lion to a city with a population of more than ment of Housing and Community Devel- 330,000; and $100 million for continuums of opment to develop spending plans by the care based on each city’s homeless count. end of this year. Grant recipients will com- While the Long Beach Rescue Mission 1_June_19_2018_issue_lBBJ 6/16/18 6:46 pm page 16

16 • June 19-July 2, 2018 • Long Beach Business Journal Newswatch

John Howard, the new chair of the board for the Long Beach Area Chamber of Commerce, became the first owner of a freestanding Chick-fil-A franchise in Los Angeles County when he opened his restaurant in 2006. The restaurant, which has 95 employees, is located at Long Beach Towne Center in Northeast Long Beach. (Photograph by the Business Journal’s Pat Flynn) new chamber Board got the bug to do something more impact- franchisees,” Howard said. “That’s what I “I joined the chamber in 2005 before my ful and influential for people,” Howard was doing when I was in Nashville. So on restaurant was even open. I am that pas- chair John howard said. Soon after, he decided to pursue a ca- days when I wasn’t flying, I was literally sionate about business in this community,” (Continued From Page 1) reer as a franchise owner within the Chick- going to my local Chick-Fil-A and learn- Howard said. “I learned that from other fil-A brand. He filed an application with ing from a guy named Bill Fender and his Chick-fil-A operators around the nation: When Howard graduated from high the company in 2003, which reached out to wife, Karen.” just to get involved in the community and school in 1991, the Air Force recruited him, him a year later to see if would be inter- Howard left the Air Force in 2005 and try to give back and have a working rela- offering to pay for him to attend a college ested in applying to run its first standalone opened the restaurant in Long Beach in tionship. It really is important.” of his choice so long as he enlisted when location in Los Angeles County at the new 2006. He started with about 10 employees. Since then, Howard has served a total of his studies were completed. “I decided to Long Beach Towne Center. Today he has 95. “We roll our biscuits fresh nine years on the chamber board and has go to Embry-Riddle Aeronautical Univer- “What they encourage people like my- every day. . . . There is a lot of labor that previously served as vice chair of member- sity in Daytona Beach . . . and the rest is self who had not worked in the restaurant goes into Chick-fil-A products, because it’s ship and vice chair of community develop- history. I learned how to fly airplanes at business to do was just go meet owners, all done by hand,” he said. ment. He has also been a member of the Embry Riddle,” he said. chamber’s government affairs council Upon graduating, Howard became a and sits on the small business council. second lieutenant in the Air Force and At the chamber’s annual retreat last did a stint at Vandenberg Air Force Base month, Howard debuted his theme for before undergoing military pilot training the year: “TEAMwork Makes The at Columbus Air Force Base in Missis- Dream Work.” “I use TEAM as an acros- sippi. “After that, I went to Little Rock tic where the T stands for Talent, the E Air Force Base flying C-130s, and then stands for Evolve, A is for Atmosphere, back to Nashville at the Air National M is for Membership,” Howard said. Guard Unit to fly C-130s there,” he said, “Those are the four major areas of focus referring to the “work horse” aircraft I have for this year.” used to transport everything from the Talent is a major focus for Howard president’s motorcade to paratroopers. because it is under his watch that a fu- “The highlight of my C-130 career ture replacement for Senior Vice Presi- was on the afternoon of September 11,” dent Jeremy Harris will be selected. Howard said. “We were just watching on Harris is due to step into the role of TV like everybody else . . . . And the president and CEO of the chamber next thing you know, our phone is ring- when Randy Gordon leaves the position ing at the squadron and it’s Tennessee in 2020. “First and foremost we have to Donor Services. They said that they had make sure we nail that one,” Howard a dying baby at Vanderbilt Hospital. said, calling the position vital. They were taking the liver out of this “I definitely want us to continue to baby to get to a donor recipient in evolve and to do it in a positive atmos- Houston, Texas. But all the commercial phere. And that includes working flights were grounded,” he recalled. closely with city hall, elected officials Howard and another pilot assembled a and staff people,” Howard said of his crew, coordinated with the U.S. Depart- priorities. “We are going to continue to ment of Defense and the Federal Avia- foster that and then focus on member- tion Administration, and managed to ship for our large and small businesses get permission to fly the liver to Hous- so they can see the value.” ton even as nearly all air traffic in the Howard noted that some members of nation was being grounded. The donor the chamber aren’t as active as they recipient of that liver is now 17 years John Howard, left, the new chair of the board for the Long Beach Area Chamber of Commerce, meets with out- could be. “I want to convey to the mem- old, Howard said. going chair Kent Peterson of P2S Engineering outside Howard’s Chick-fil-A restaurant at the Long Beach Towne bership that you are only going to get out “Because of that 9/11 mission I really Center. The two share a passion for small business. (Photograph by the Business Journal’s Pat Flynn) (Please Continue To Top Of Next Page) 1_June_19_2018_issue_lBBJ 6/16/18 6:46 pm page 17

Long Beach Business Journal • June 19-July 2, 2018 • Page 17 Newswatch

of it what you put into it,” he said. “Me as agers and employees must attend a Respon- systems in an amount of up to $3,918,000 2019. It also authorized the city manager a small business owner, I tried to attend sible Cannabis Vendor Program. for the first year and an annual amount of to submit a renewal grant application for breakfasts, and if I couldn’t I would go to Requiring Certification up to $1,250,000 until the contract expires the following year for an amount between an evening mixer of some sort. But there For Massage Practitioners on March 3, 2021. Councilmembers will $8,000,000 and $10,000,000 for July 1, I are a lot of people who are in the chamber Councilmembers are voting on amending also decide on multiple lease-purchasing 2019, through June 30, 2020. who just don’t do that. . . . So we are the municipal code to require California agreements of up to $19,259,000 with Banc Long Beach June 5 going to try to get the membership to un- Massage Therapy certification for all of America Public Capital Corporation to derstand the value.” masseuses. This is meant to prevent personal finance the new civic center’s technology Election Results Howard sees the role of the chamber in and economic injury as the result of improp- infrastructure, in an aggregate amount of up the Long Beach community as a driving to $21,411,000. The council will also vote (Totals As Of Friday, June 15, From erly trained practitioners. It is also intended L.A. County Registrar Of Voters) force for business. He quoted Harris’s phi- to prevent prostitution, sex trafficking and on increasing appropriations in the General losophy that the chamber should focus on other unlawful sexual conduct which has oc- Services Fund in the Technology and Inno- Measure M “three C’s,” which include being “a catalyst curred in businesses offering massages. This vation Department by $19,254,000 to re- a charter amendment allowing the city’s for business growth, a convener for leaders item also includes making changes to the place and install outdated equipment. water and gas departments to transfer up and influencers, and the champion for zoning code, which currently classifies any The Long Beach City Council decided on to 12% of gross utility revenues to the stronger communities in Long Beach,” he establishment offering massages as their pri- the following items at its June 12 meeting: General Fund to maintain general city services. explained. “If we can do those things and mary service as an “Adult Entertainment Uptown PBID Renewal do them well, we will be the premiere busi- The Long Beach City Council adopted a yes: 29,881 53.33% Business.” The amendments would redefine no: 26,148 46.67% ness force in the city.” them as a “Massage Establishment.” resolution of intention to renew the Uptown Asked if he approves of the chamber Human Relations Property and Business Improvement Dis- 5th City Council District having an affiliated political action com- Commission Appointment trict (BID), and set the date of a public northeast long Beach/airport area. mittee (PAC), Howard said the PAC is im- hearing for August 7 at 5 p.m. incumbent stacy mungo in a runoff portant to business advocacy. The PAC is a The city council is slated to vote on the Increase To with challenger rich dines. appointment of Shefali Mistry to the mungo: 7,360 55.33% separate legal entity from the chamber, he Pacific Gateway Contract noted. “I am a big fan of the PAC. I really human relations commission. Mistry dines: 5,943 44.67% Councilmembers voted to increase a believe it’s vital, because so many things serves as a manager of constituent en- 7th City Council District contract with Pacific Gateway by come down – from electing officials, to gagement in the California State Univer- Wrigley, West long Beach, california propositions and measures in the city – and sity chancellor’s office. $4,750,000 to provide residents with train- heights. incumbent roberto uranga in a we need a body that can look at that and ad- Street Improvements Contract ing and employment services for a revised runoff with challenger Jared milrad. vise the chamber membership as to the va- Councilmembers are scheduled to vote total of up to $4,850,000, and to extend it uranga: 3,912 52.97% lidity of it and whether or not it’s helpful on an agreement with Sully-Miller Con- for an additional one-year period. milrad: 3,473 47.03% for business,” he explained. tracting Company for a total of no more Grant Funding For Board Of Education District 3 Howard added, “For a small business than $4,567,200 for street improvements to Continuum Of Care downtown. open seat. runoff between owner like myself . . . I can remember 3rd Street and Broadway, between Magno- The city’s elected representatives voted Juan m. Benitez and cesar a. armen- clearly days when I just did not have a lia Avenue and Alamitos Avenue. These in- to approve grant funding of $8,185,190 dariz. chance to look at anything political. And clude repairing curbs, gutters and from the U.S. Department of Housing and Benitez: 4,651 62.47% my main go-to source was the chamber driveways as well as pavement resurfacing. Urban Development for the 2017 Contin- armendariz: 2,794 37.53% and the chamber PAC.” To Reconfigure uum of Care for Homeless Assistance Pro- (Note: the Registrar’s Office is counting more There is improvement to be made as to Bicycle Boulevard gram, from July 1, 2018, through June 30, ballots today, June 19, and on June 22.) the business friendliness of the Long The city council is slated to vote on a Beach City Council, according to Howard. contract for up to $2,017,400 with Sully- “One of the reasons that we do get in- Miller Contracting Company to make volved with advocacy . . . is to hopefully changes to the 1.1-mile bicycle boulevard get more candidates elected that are busi- along 3rd Street, between Golden Avenue ness friendly,” he said. and Alamitos Avenue. The existing parking- Going forward, Howard said the chamber protected bike lanes will be moved from the needs to “come together and be a united left side of the street to the right. The project front for business.” He explained, “I think also includes new median bus stop islands, there are a lot of other challenges that are parking meters, striping and signage. going to come about that we are probably Increase To Contract not even aware of right now. Going for- ward, I think you need someone there to be With Parking Company a voice and a warrior to charge and lead the Councilmembers plan to decide on in- way to make sure that business is heard, creasing a contract with LAZ Parking Cali- and that business is recognized in order to fornia, LLC for parking operations and make a difference.” I management services by $4,522,813 for a re- vised total amount of up to $13,971,791 for a three-year period. City staff has requested Long Beach City LAZ to manage five additional locations. Contracts Regarding Council Action Technological Services The city council is scheduled to vote on I By ANNE ARTLEY three contracts regarding data systems equipment. Councilmembers will deter- STAFF WRITER mine whether to move forward on a con- The Long Beach City Council is slated tract with GovConnection, Inc. in an to vote on the following actions at tonight’s amount of up to $11,222,500 for the first June 19 meeting: year, and an annual amount of up to Ordinance Allowing Adult-Use $2,866,000 for ongoing replacements. They may also authorize the city manager Cannabis Production And Sale to enter an agreement with EMC Corpora- An ordinance to allow the production tion for up to $8,605,600 for the first year and sale of adult-use cannabis is up for a and up to $2,087,000 annually until the vote. Proposed provisions include requiring equipment contract expires on March 31, dispensaries to hold both a medical and 2020. An agreement with Office Depot, adult-use license; maintaining buffer zones Inc. is also up for a vote, for an amount of between dispensaries and public facilities up to $6,777,900 for the first year, and an such as schools, parks and beaches; and re- annual amount of up to $1,587,000 for on- quiring businesses to attain a health permit going replacements. The city council will before submitting an application. In addi- also vote on a contract with Computer Aid, tion, under the proposal dispensary man- Inc. for installing information technology 1_June_19_2018_issue_lBBJ 6/16/18 6:46 pm page 18

18 • June 19-July 2, 2018 • Long Beach Business Journal Community Medical Center Long Beach

the health system had indicated it would close the hospital by June 30, 2019. “MemorialCare did not provide us with any lead time. Even though they have until June of 2019, they chose to close a year early. And so they forced the situation and provided us with very little lead time,” Keisler said. Bishop said that the decision was made in April to break the lease for the hospital and cease operations because more than one- third of the hospital staff had quit. “Despite putting in a generous employee retention bonus, it was staff departures that resulted in the accelerated timeline,” he said. “And with any reasonable expectation of contin- ued resignations we wouldn’t be able to maintain operations and provide safe patient care beyond the actual date of the closure.” Closing the hospital on July 3 is Memo- rialCare’s choice, Keisler said. “They have the power to work with a new group, and they have the power to keep the hos- pital open through this management agreement, and we’re hoping that they’ll work that out,” he said. According to City Attorney Charles Parkin, the city council is likely to meet in closed session around 4:30 p.m. on Tuesday to discuss the transition to a new hospital operator. The matter will then be discussed publicly at the city council meeting after the closed session. I Task Force Advocates For Continued Care (Continued From Page 1) have been significantly scaled down, and “We have submitted every single report and MemorialCare Health System’s two other everyone is leaving,” Bishop said. “If they have worked with them exhaustively to try Long Beach hospitals, confirmed the Moli- want to reopen the hospital, we will work and identify a solution,” he said. “The only At Community nas’ involvement. with them and facilitate that process. But if thing accurate about that is we never sub- An announcement earlier today by the they are expecting us to work with Molina to mitted a plan that was able to be approved Medical Center City of Long Beach states that it would be negotiate a management agreement, not only because there was no solution. And we ac- up to MemorialCare to negotiate a transi- is there not time, but that would be an irre- tually received from them [OSHPD] written Long Beach tion process to keep the hospital open while sponsible decision on behalf of our employ- confirmation that no solution was viable.” MWN prepares to take over. Bishop said ees, and it would be frankly misleading.” Keisler said that OSHPD has, in several that MemorialCare is sticking to its plan to Bishop said that it is his understanding meetings, made suggestions as to how I By ANNE ARTLEY close the hospital July 3 and pointed out that that the city and MWN intend to try to make services could be consolidated in the her- STAFF WRITER none of the work has been done to allow a “Hail Mary” pass to appeal to the Office itage building and be approved by the state. MWN to begin operating the hospital. of Statewide Health Planning and Develop- “So what’s happening is that the new oper- (Note: The following article was written “First of all, our lease agreement pre- ment (OSHPD) to grandfather in the hospi- ator has been meeting with our building of- prior to the city’s June 15 announcement cludes us from selling, transferring, [or] as- tal, making it exempt from the office’s ficials in the city, as well as with OSHPD that it would be negotiating with a group signing [the lease for the hospital] without seismic requirements and thereby avoiding and the geological survey of the State of led by former Molina Healthcare President the city. It’s their land, their building, and it the necessity to retrofit. “We feel that that is California. . . . So we are finishing those and CEO Mario Molina and his brother, is up to them to come up with terms with irresponsible of them to do that. We also plans and once they are done, probably in John Molina, who served as chief financial the successor operator,” Bishop told the don’t believe that OSHPD ultimately will be July, those will be submitted to the State of officer of Molina Healthcare, to operate Business Journal this morning. “What we a party to that and will not approve their plan California,” he explained. Community Medical Center Long Beach. told the city we would do is we would work to go forward with acute care without doing But Bishop said that the heritage build- The story highlights the efforts of local cit- to facilitate the appropriate regulatory ap- any seismic fixes,” Bishop said. ing’s assessment as seismically safe was izens and business people to keep the hos- provals. Unfortunately, those things take “The employees, the majority of them, made before the active fault was discovered pital operating.) many months, typically, and they have done have already left. And the majority of the and seismic studies were conducted. “If it As the date draws closer that Memorial- absolutely nothing.” balance have positions that are starting in were rated today, it would not be compliant, Care, the current operator of Community According to Bishop, no legal entity has early July. So the city is asking us to tell and it would require what’s called a seismic Medical Center Long Beach, is slated to been established to take over the hospital those employees not to pursue those posi- separation. You would have to be 50 feet give up the lease to the site, a task force of lease and creating one within two weeks tions and to basically wait and hope that from the edge of the fault and then you community members continues to advocate would not be possible. this Hail Mary attempt to achieve seismic would have to saw the building in half and for keeping the hospital open. Bishop has met with the proposed new compliance is successful. And we are not then retrofit the remaining building,” he ex- The task force formed earlier this year operators twice and has been in continuous supportive of that,” Bishop said. plained. “So if the city were to continue to after MemorialCare announced that, due to discussions with the city since announcing John Keisler, director of economic de- operate it would be on a technicality of . . . noncompliance with state seismic regula- last November that MemorialCare would velopment for the City of Long Beach, ex- looking at grandfathered buildings and it tions, it would be unable to operate the hos- have to close the hospital because its loca- plained that what is known as the “heritage wouldn’t address the safety issue.” pital past June 30, 2019, according to Brascia tion on an active fault line made it uncom- building” on the site of Community Hos- Keisler noted that it typically takes six to Builders Owner Mike Brascia, one of the pliant with state seismic requirements. It pital has been deemed seismically safe, nine months for the state to approve a tran- task force leaders. The facility, located at would cost an estimated $80 million to $100 and that the city is working to submit a sition to a new hospital operator, and that 1720 Termino Ave., sits on an active seismic million to retrofit the hospital, according to plan to consolidate hospital services within he and the city had hoped that Memorial- fault and requires retrofitting certain struc- Bishop, who argued that to do so would not that building to OSHPD. He also stated Care would continue managing the hospital tures to meet the requirements. In February, be “feasible” for MemorialCare. MemorialCare never submitted its seismic while MWN goes through this process. He the health care provider informed the city of “The hospital is going to close on 7/3. Our assessments to OSHPD. noted that the July 3 closure date was dic- its intention to renounce the lease on July 3. contracts have been canceled. Operations Bishop pushed back on that assertion. tated by MemorialCare. Last November, “A request came through [Fourth District 1_June_19_2018_issue_LBBJ 6/16/18 7:07 PM Page 19

Long Beach Business Journal • June 19-July 2, 2018 • Page 19 Community Medical Center Long Beach

Pictured from left are Ross nia State University, Long Beach professors here,” Brascia added. “You could truly feel Riddle, a boardmember for and an independent marketing research these doctors can work just about any- Community Medical Center firm, the foundation interviewed 400 ran- where. They have other opportunities, but Long Beach and the Com- domly selected households on the city’s east they want to see this continue and survive. munity Hospital Long Beach side and in Signal Hill. The results, which When I’ve sat in meetings for the advisory Foundation; Matthew Faulkner, the foundation’s were released in early April, show high de- board, task force, or even when I’m just out executive director; and mand for the hospital, Faulkner said. and about in the community, I can see that Mike Brascia, owner of “The staff here is very supportive of the these doctors and nurses are very passion- Brascia Builders. They are hospital, and not just because they work ate that it needs to stay.” I the leaders of a task force advocating for continued service at Community Med- ical Center Long Beach. Read The Non-Binding Letter Of (Photograph by the Business Journal’s Anne Artley) Interest To Operate Community Medical Center Long Beach Councilmember Daryl] Supernaw to have a Other hospitals have received [extensions] community task force to provide input and after these two things are in place.” Keisler A group interested in operating Community Medical Center Long Beach submitted guidance to the process,” Community Hos- said he currently does not have an estimate the following letter, dated May 7, 2018, to John Keisler, director of the Long Beach pital Long Beach Foundation Executive Di- on the cost of the retrofit, which would de- Economic Development Department. rector Matthew Faulkner said. “The pend on the operator’s construction plans. foundation offered to facilitate that, which To maintain a publicly accessible emer- “We represent a consortium of health care organizations that have come together in means we would staff it, put an agenda to- gency department, the new operator is re- the interest of operating Community Medical Center Long Beach (“Community”). This gether and host public meetings open to par- quired under state law to provide eight basic consortium is made up of: ticipation by any member of the community.” services: medical, nursing, surgery, anesthe- • John & Mario Molina: the Molina brothers have over 30 years’ experience in working This year, the task force has held five sia, laboratory, radiology, pharmacy and di- in the Long Beach health care community as leaders of Molina Healthcare and Golden meetings, with an average attendance of 75 etary. “Because of the state’s seismic Shore Medical Group. to 80. According to Faulkner, the organiza- requirements, [the new operator] will not be • AMHC: AMHC has over 30 years’ experience in hospital management. AMHC tion has the support of the California Nurses able to provide the exact same services on owns and operates seven community hospitals in Southern California. Association as well as the Long Beach Fire- the campus,” Keisler explained. “Some of • Network Medical Management: NMM has nearly 25 years’ experience in managing fighters Association. The task force has en- the facilities have been deemed seismically physicians and working with managed care organizations to improve patient care. NMM couraged attendees to contact elected unsafe. [The contenders] will be presenting serves thousands of physicians in Long Beach and contracts with Golden Shore Medical representatives, purchase a lawn sign to pro- a plan to consolidate the emergency depart- Group, as well as Accountable IPA (a large Long Beach-based physician network). mote awareness and share experiences on ment and the eight basic services on a seis- We are pleased to include CSULB’s School of Gerontology and School of Nursing as www.savetheer.com. “We’re telling the peo- mically safe portion of the property, and adjunct members of the consortium. ple who come to the meetings that if they then they’ll present a plan to reuse and Our proposal would be to establish an entity that would lease the Community campus care enough to come, then they’re a part of retrofit other facilities that may no longer from the City and take over the current hospital license. We strongly believe Community the task force,” Ross Riddle, a task force be acceptable for what is called general provides vital critical acute care and emergency healthcare services and should continue leader and boardmember for the hospital acute care. . . . It’ll be a new use of some of its operations for the safety, health and welfare of its community. We also recognize and foundation, commented. the facilities.” Acute conditions are defined that Community, in its current construct, cannot continue operations due to seismic re- The task force leaders agreed that the as severe and sudden in onset, such as a bro- quirements; however, we are willing to work with the City to reconfigure those portions hospital’s location makes it an indispensa- ken bone or a heart attack. of Community which meet seismic standards in order to maintain an acute care hospital ble resource, as it provides a necessary Faulkner envisions Community Hospital and Emergency Department. We propose to continue operating all hospital services service for the east side of town. “[The transitioning into more of a “boutique” hos- necessary in maintaining Emergency Room services, including capability to receive Ad- paramedics] at other hospitals are displaced pital which focuses on the eight basic serv- vanced Life Support (ALS) paramedic ambulances. We also propose to substantially because they may get calls further out and, ices. “The consensus of opinion of where hire Community employees to provide these services. in an emergency, all those seconds and we’re going here is to a 50-bed acute care fa- We believe that the original hospital building meets current seismic standards and can minutes matter,” Faulkner explained. “A cility that’s [used for] emergency, surgery be operated as an acute care hospital that includes an Emergency Department and 30- man at one of our meetings said his daugh- and an intensive care unit. The other services 40 inpatient beds. In order to operate as such, several departments will need to be re- ter had an allergic reaction to peanuts. He like post-operative would be in a sub-acute located and other parts of the facility may need upgrading. Furthermore, we intend to brought her [to Community Hospital] and setting. . . . For us, that’s absolutely perfect.” work with the City to develop a long-term seismic compliance plan that would allow said she would not have made it if he had According to Keisler, the city’s choice in for the continued use of the remaining parts of the hospital pending seismic retrofit. taken her to [another hospital].” operator depends upon which institution is In addition, one or more of the following complementary components would be added According to Supernaw, the city council able to negotiate a transition agreement with to transform the facility into a “health care community”: is expected to meet in closed session on June MemorialCare. This also would determine • Independent and assisted living services 19 to select one of two operators to take over whether the hospital will close after July 3. • Inpatient and outpatient behavioral health services the lease to the hospital [Note: One bidder Despite the time constraint to retrofit the • Program for All-Inclusive Care for the Elderly (PACE) dropped out leaving only the group led by site, Keisler has discovered a “tremendous • Medical Education (in conjunction with CSULB) the Molina brothers]. In order for the hospi- amount of interest” from contenders. “Op- • Outpatient medical and surgical services tal to continue emergency care services, it erating a hospital on the east side of Long • Additional nonmedical residential (as might be integrated) must comply with state seismic require- Beach is an attractive proposition for many It would be our intent that the organization created by the consortium would contract ments by the end of 2019, as mandated by health care providers,” he commented. “The with the City of Long Beach to lease the property and in turn would subcontract out for the Office of Statewide Health Planning and challenge is, how do they meet the seismic services as follows: Development. In February, Assemblymem- requirements given the short timeframe? • AMHC would be contracted to operate the hospital ber Patrick O’Donnell introduced a bill that There will be some construction that’s • NMM would be contracted to bring managed care contracts to the hospital, help would extend this deadline by five years. needed to retrofit even the seismically safe physicians manage those contracts and provide other “back office” support to insure In April, the assembly health committee portion of the facility. . . . It will take more long-term financial viability of the hospital chairman elected to withhold a vote on the than 18 months. We still have to have the In order to implement this ambitious program, we would request the following from bill until the city produces a plan detailing state approve an extension so we can remain the City: how and when the hospital could meet the operational while we’re doing construction. • 40-year lease for all Community property, facilities, equipment and licenses seismic standards. Long Beach Economic That’s a sequence of events that’s a very • Lease rate of $1 per year Development Director John Keisler ex- complex timeline because of how short of a • Consultation/facilitation regarding financing for structural changes required to move pressed confidence that the new operator notice we received from MemorialCare. . . . certain departments into the original hospital building and upgrading/renovating other would receive an extension. but it’s all feasible and possible.” parts of the facilities “The health committee did us a favor,” The CHLB Foundation funded a survey • Consultation/facilitation of the building process so as to expedite through the plan- Keisler said. “The committee chair has of residents of the east side of Long Beach ning and building process stated to the City of Long Beach that they’ll and Signal Hill to determine consumer de- We look forward to the next steps in this process. If you have any questions, please consider our extension bill as soon as we mand for critical care services, emergency feel free to contact us. have a lease agreement for a future operator care, an intensive care unit and a cardiac Sincerely” and a plan for construction for retrofitting. care unit. In conjunction with two Califor- (The letter was signed by John Molina, Dr. Sim and Dr. Wu.) 1_June_19_2018_issue_lBBJ 6/16/18 6:46 pm page 20

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The Long Beach Convention & Visitors Bureau staff splashes into summer at the new Terrace Theater plaza fountains. Pictured, from left, in the front row: Lori Elgayar, Pauline Taylor, Shannon Yates, Heather Gonzalez, Susan Valen, Yvonne Riner, Gary Watters, Cindy Robbins, Sammy the puppy, Iain Campbell, Claudette Baldemor, Steve Goodling, Karen Thomas, Bob Maguglin, Jan Miller, Erica Morris, Loren Simpson, Lilian Olguin and Jamie Weeks. Pictured in the back row: James Robinson, Gregg Haniford, Aristotle Marinas and Jeff Forney. (Photograph by Matt Fukushima)

(Continued From Page 1) “There are larger cities than us. And yet, was averaging before improvements were immersive experience so that, if multiple As a result of the innovation behind we’re getting a lot of press. You quite hon- made, he noted. venues were to be utilized at once, their these improvements, both the center itself estly don’t read anything about a lot of Last year, the center unveiled its next elements would be in sync as guests and the Long Beach Convention & Visi- other convention centers being innovative,” biggest transformation: the conversion of walked from area to area. tors Bureau (CVB) have been recognized Goodling told the Business Journal. an underpass outside the Seaside Ballroom The total investment in the Pacific again and again for excellence in the con- The re-imagining of the convention beneath the plaza into an outdoor event Room, Pacific Gallery and Bogart’s, The vention industry. In 2017, the CVB was center began with the debut of the Pacific space, also equipped with stage lighting Cove, The Terrace Theater plaza and the named “Best CVB in the West” at the Room at the Long Beach Arena in 2013. and re-envisioned with nautical elements to Rainbow Bridge amounts to just over $25 Stella Awards, put on by two of the indus- The Arena was outfitted with a lighting give it an under-the-ocean feel. The space million, much of which was funded by the try’s largest publications, Successful and truss system capable of transforming is called The Cove. city’s Tidelands Fund. The CVB and Meetings Magazine and Meetings & Con- the venue for events ranging in size from Following The Cove, the Rainbow SMG, the management company that op- ventions Magazine. To achieve the honor, corporate banquets to sports competi- Bridge, a pedestrian bridge connecting the erates the convention center, also chipped the CVB had to beat out some of the tions. TheatreDNA, a Los Angeles-based center’s Pine Avenue promenade to the Ter- in, according to Goodling. largest cities in the Western U.S., includ- theater consulting firm, designed profes- race Theater plaza, debuted late last year. Now, with the debut of the fountains, ing Las Vegas. The convention center also sional stage lighting for the venue, and The bridge not only provides better connec- which offer colorful Bellagio-style water picked up a second place Stella for “Best the convention center amassed an array of tivity throughout the center, but also mim- shows programmed to music, these con- Convention Center in the West,” beat out hip furniture and decor – all offered to ics the lighting design of the center’s new temporary venues combine to put the cen- only by Honolulu, Hawaii’s facility. clients for no extra cost. That year, the re- turnkey venues with programmable LED ter on “the cutting edge” amongst its Last year, CVB President and CEO Steve designed Pacific Gallery, formerly re- lights lining its length. competition, according to Beirne. “Steve Goodling was named among the 25 most ferred to simply as the Arena lobby, and Amongst these venues, a common ele- [Goodling] says it all the time and I agree influential people in the meetings industry its revamped restaurant, Bogart & Co., ment is lighting – each were outfitted wholeheartedly that we certainly are ahead by Successful Meetings. The CVB won also debuted. with similar lighting schemes and equip- of the curve moving forward to attract new several other awards for its service and The CVB has booked 140 conventions ment by TheatreDNA, Goodling ex- business compared to other convention achievements in 2017, including the because of the addition of the Pacific plained. Charlie Beirne, general manager centers,” he said. “Prime Site Award of Excellence” and the Room, Goodling reported. The Arena is of the convention center, noted that his Goodling pointed out that equipping “Top Destination Award of Excellence” now in use about 254 days per year, in staff is able to program the lighting and the convention center with unique event

from Facilities & Destinations Magazine. comparison to the 154 active use days it sound for each space to create a cohesive, (Please Continue To Page 24) 1_June_19_2018_issue_lBBJ 6/16/18 6:46 pm page 21 1_June_19_2018_issue_lBBJ 6/16/18 6:46 pm page 22 1_June_19_2018_issue_lBBJ 6/16/18 6:47 pm page 23 1_June_19_2018_issue_lBBJ 6/16/18 6:47 pm page 24

24 • June 19-July 2, 2018 • Long Beach Business Journal The Hospitality And Tourism Industry

(Continued From Page 20) approving what needs to be done, and spaces is a major component of keeping Charlie will reduce his rental [rates] and the center competitive. The facility’s main the hotels will also contribute additional source of competition is among big box monies to help offset [the reduction],” hotels, which offer both sizable conven- Goodling explained. tion and meeting space in addition to hotel “That’s why our drive to create these rooms and food service. unique spaces has been so important, be- “Generally speaking, those hotels will cause these unique spaces set us apart,” greatly reduce the rental rate for the meet- Goodling said. “You really can’t find these ing space because they are making their in large box hotels, nor can you find them [profit] on the in-house food and beverage in other convention centers.” that’s captured, and the room service and The center has picked up a lot of short- the hotel sleeping rooms,” Goodling ex- term business, events that are booked with- plained. Convention centers like the one out much advance notice, this year, in Long Beach don’t have those additional according to Goodling. He estimated that, Over the past five years, multiple re-imagined events venues have debuted within the Long revenue streams, making it more difficult Beach Convention & Entertainment Center, from the Pacific Room at the Long Beach Arena, by year’s end, meeting and convention outfitted with a theatrical truss and lighting system able to accommodate corporate luncheons, to keep rental rates for meetings compet- bookings will have increased up to 3% in concerts, major sporting events and more; to the urban, outdoor underpass setting of the itive. “As an organization, we have to help comparison to 2017. “Next year, our con- Cove, complete with sparkling neon trees, plenty of space for dancing and perfect for food offset the convention center’s costs. We trucks; to the Rainbow Bridge, an LED-lit art piece that does double duty as a connection vention business is looking strong. We’re up from the Terrace Theater to the center’s Pine Avenue promenade. (Photographs provided by share those rental reduction requests with about 14% and, even though the economy the Long Beach Area Convention & Visitors Bureau) our board and they help in reviewing and is softening in many markets in terms of convention business, we still have a lot on the books and we should be doing very fine next year,” he said. What’s Next? Goodling and Beirne haven’t stopped dreaming of more improvements to make to the center. In fact, they argue that some changes will be necessary to accommodate the Olympics in 2028. “In order for the Arena to be successful with the Olympics, it needs . . . sports light- ing up to international standards. It needs new stadium seats. We also really need to revisit the exterior,” Goodling said. “And we also need to enhance the space on the backside of the Arena lobby, which basi- cally is more or less an area for trucks to drive up to. . . . You’re along the waterfront, the Pacific Ocean. You really should be using that as a venue.” Goodling added the bathrooms in the Arena also need to be redone. “The entire facility of the Arena needs work before 2026,” he said. Beirne pointed out that the concessions areas in the Arena date back to 1962, and also need updating. “The other thing that has been discussed . . . is building some type of deck that over- looks the Pacific Ocean off of the Arena,” Goodling mused. “You could do private functions on this deck for 400 to 500 peo- ple, and then building a kitchen. The view is looking down the coast.” Discussions about future improvements are in preliminary stages, Goodling noted, adding that the mayor and city staff have in- quired about how to best prepare the facility for the Olympics. He estimated that, to be ready in time, improvements need to get going within the next three years. I 1_June_19_2018_issue_lBBJ 6/16/18 6:47 pm page 25 1_June_19_2018_issue_lBBJ 6/16/18 6:47 pm page 26

26 • June 19-July 2, 2018 • Long Beach Business Journal The Hospitality And Tourism Industry hotel investment Bar. The remainder of the building, which formerly housed offices, is already vacated. (Continued From Page 1) An initial project submission has been years. Many existing hotels have millions submitted to the city, according to Atkinson, of dollars in renovations planned and will who said a time is being scheduled for the unveil new lobbies, restaurants, bars and company to go over the city’s feedback. He event spaces within a year. explained that, if everything goes smoothly, “What we see is a market that is in sig- he hopes to start construction by the first nificant transition. The opportunity to be quarter of next year. The buildout is expected on the waterfront in a market like that, with to take 16 to 18 months, with completion ex- all the investment that’s going into it – we pected in mid-2020, Atkinson added. just see all the signs pointing in the right The hotel will have a rooftop venue of direction,” Chris Atkinson, managing part- some sort and will include some element ner of commercial developer Pacific Prop- of food service in addition to The Federal erty Partners, said. “It’s now just a matter Bar offering, Atkinson said. He added of being very strategic about what the best that Cambria hotels are known for their fit is for these different projects and what’s high-tech guest rooms and fitness rooms, going to work well for the city and the as well as meeting space that caters to community. We are very bullish about the convention groups. opportunities in Long Beach.” The purchase of 110 N. Pine Ave. by Pa- Pacific Property Partners has plans to cific Property Partners last year included bring 400 or more new hotel rooms within the parking structure at 123 W. 1st St. be- blocks of the Long Beach Convention & En- tween L’Opera Italian Restaurant and an- tertainment Center. The most publicized is other parking structure on the corner of 1st the conversion of the historic Security Pa- Street and Pacific Avenue. The company is cific National Bank building at 110 Pine Ave. also in escrow to purchase the 12-story to a 200-plus room boutique hotel to be Salvation Army Building at 180 E. Ocean named Cambria Hotel. The ground floor and Pacific Property Partners (PPP) purchased the historic Security Pacific National Bank building at Blvd., which currently houses offices. 110 N. Pine last year. The development company has submitted the initial project proposal to basement of the building will remain occu- the city for a roughly 200-room Cambria hotel. Pictured: PPP Managing Partners Barry Beitler, One of these two properties will be con- pied by restaurant, bar and venue The Federal left, and Christopher Atkinson. (Photograph by the Business Journal’s Brandon Richardson) verted into another 200-plus room hotel, but 1_June_19_2018_issue_lBBJ 6/16/18 6:47 pm page 27

Long Beach Business Journal • June 19-July 2, 2018 • Page 27 The Hospitality And Tourism Industry

the company has not yet decided which. is rapidly changing and becoming much If 180 Ocean does not become a hotel, more dynamic and we wanted to be part of Atkinson said the company has also con- that. And there hasn’t been a new, major, sidered maintaining its office use or con- full-service hotel built in Long Beach in verting it to a residential building. The 1st about 27 years. So, I think it’s time.” Street parking structure would be demol- John Molina and his partners at locally ished to make way for a hotel, residential based investment firm Pacific6 are work- units or both. ing to complete designs for their previously “What we were thinking on 1st Street is announced repositioning of The Breakers, we are looking at the possibility of hotel a historic building located at 210 E. Ocean with residential above it,” Atkinson said. Blvd., into a boutique hotel. Molina ex- “We’re playing with various designs and plained that progress is being made toward looking at feedback from the city, but I the final designs, with architectural and de- think we’re pushing [for] 25 floors or so.” sign teams on board for the project. He said Once the company completes all three the lobby design is going to be stunning projects, Atkinson said the combined in- and unlike anything in Long Beach. vestment could be upward of $250 million. The project will likely have about 170 The largest new hotel proposed in Long rooms, though Molina said the number Beach is a 30-story structure by Seattle- may fluctuate a bit until designs are final- based American Life Inc. Located at the American Life Inc. has unveiled plans for the largest new hotel proposed in the city at the ized. Included in plans is an overhaul of former site of the historic Jergins Trust former Jergins Trust Building site near the Long Beach Convention & Entertainment Center. The Sky Room, which will reopen within The 30-story hotel will include about 426 rooms and the highest rooftop bar on the South- Building, which has been vacant for 30 ern California Coast, according the American Life President Greg Steinhauer. This will be the hotel under the same name. The Cielo years and currently serves as a parking lot, the first new, major, full-service hotel to be built in Long Beach in 27 years, he added. rooftop bar will also be refreshed and en- the hotel will include around 426 rooms, (Rendering courtesy of American Life) larged, and will open under a new name. according to American Life President Greg and undergoing environmental review, months, with a target opening during the The boutique hotel will also have a pool Steinhauer. Current designs also call for Steinhauer explained. He said the company fourth quarter of 2021, Steinhauer said. deck overlooking the Long Beach Perform- 22,500 square feet of meeting space and hopes to have planning commission ap- “We think it’s the 50-yard line of Long ing Arts Center, a jazz club, a spa and a the highest rooftop bar on the coast of proval by August. A groundbreaking is an- Beach at the intersection of Ocean and Pine, lobby bar and restaurant, Molina added. Southern California, he added. ticipated for late spring next year. The adjacent to the convention center. It’s a great Aside from appealing to the guests, The project is currently in entitlement buildout is estimated to take 18 to 20 location,” Steinhauer said. “It’s a market that (Please Continue To Top Of Next Page) 1_June_19_2018_issue_lBBJ 6/16/18 6:47 pm page 28

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(Continued From Page 27) Molina said he hopes the project will appeal to Long Beach residents and that its bars and restaurants become local hot spots. The project is going through the permitting process now, and Molina is hoping for a first quarter of 2020 opening, but noted it may not be until the second quarter. “The nice thing about all hotels in Long Beach is the great service. You can tell how much the employees at those places care. We’re going to take that and we’re going to knock it up a notch. Not to put them down, but you’re going to get the five-star, white- glove service at The Breakers,” Molina said. “We’re just really excited. The Break- ers opened in 1920, so we will be bringing the 1920s into the 2020s.” This summer, Pacific6 will be serving up food around the city out of a food truck called Breakers Roadshow. Molina ex- Part of the Holiday Inn Long Beach Airport is scheduled to be demolished in the coming weeks to make way for a 125-room Staybridge plained that the food truck is launching as Suites concept, according to General Manager Mooyon Kim. The project is expected to break ground toward the end of July or beginning a way to introduce the community to what of August and is anticipated to open in November or December 2019. (Rendering courtesy of Holiday Inn) can be expected in terms of service and the hallways and guest rooms, as well as completely different look than we have chefs to be a consultant on our project.” food when The Breakers reopens. new bedding and TVs. The hotel will also now. It will be more current, modern and it The Westin will also have a licensed Star- Highgate Hotels purchased The Westin increase its bandwidth to one gigabyte later will take on a nice Long Beach feel for ar- bucks location next to the new restaurant, Long Beach in August of last year and is this year and add the new Marriott enter- rival, for gathering, for collaboration,” Ault adjacent to the plaza between the hotel and now gearing up for $20 million in renova- tainment platform to all rooms, allowing said. “Probably the biggest change in our the Shoreline Square office building. Ault tions, according to hotel Managing Director guests to access their Netflix, Hulu and hotel is the restaurant. The bar will be out explained that everything in the lobby is John Ault. About $6 million is to be spent other streaming services. All nine elevators front and center of the restaurant. We’re going to change, from the marble-tile floor- renovating the soft goods in the guest tower, will also be modernized, Ault added. going to change our menu to a modern Cal- ing to the carpet to the lighting, and even the including lighting, carpet, vinyl and paint in “The lobby is going to transition to a ifornia cuisine. We’re looking for some top color scheme. The front desk is slated for a

The 310-room Long redesign so that customer service employees Beach Marriott at Lake- can move freely to assist customers better, wood Boulevard and Ault added. The lobby and restaurant de- Spring Street is plan- ning on upgrading its signs also include large collaborative tables. rooms and corridors, Room renovations are expected to begin according to General around November, with work being done Manager Imran Ahmed. Pictured is the to one or two floors at a time to avoid dis- hotel’s sales team, top rupting hotel services. With holiday par- row from left: Catering ties already scheduled at the hotel, Ault Sales Manager Daisy Prestwood; On-Site said the lobby overhaul will likely begin Revenue Manager after the holiday season. The Starbucks is Shannon Cattron; Ex- likely to be completed first, sometime ecutive Sales Assistant Jessica Martinez; As- around the end of January. The renovation sociate Director Of schedule is only tentative, Ault explained, Sales Hector Martinez; and Executive Meeting but he hopes everything will be completed Manager Gerald by mid-to-late March. Ariza. Bottom row “We want to be done as soon as we can, from left: Sales And Events Manager Mar- but we don’t want to harm any of the city- lene Robbins; Events wide business that’s coming in, including Manager Patty Burns; [creating] any delays [going] into the Long Executive Sales Assis- tant Alex Cantu; Direc- Beach Grand Prix. So, our goal is to get it tor of Sales & done quickly but get it done right,” Ault Marketing Crystal said. “The Orange County market is very Sierra; and Senior Catering Sales Man- competitive, the L.A. market is very com- ager Marla Miralles. petitive, and we want to put ourselves on (Photograph by the the map. That is why this $20 million in- Business Journal’s Anne Artely) vestment is so important to us.” The Renaissance Long Beach Hotel’s main lobby space is going to be updated and 1_June_19_2018_issue_lBBJ 6/16/18 6:47 pm page 29

Long Beach Business Journal • June 19-July 2, 2018 • Page 29 The Hospitality And Tourism Industry

renovated beginning in the first quarter of Recently, Ryan was given authorization next year, according to General Manager by the Long Beach Fire Department to host Pam Ryan. After seeing the success of the events on the 2,500-square-foot rooftop he- Sip Bar and Lounge in the lobby and adjoin- lipad of the hotel. Though the space is not ing patio area, Ryan said the hotel is going being promoted just yet, Ryan said it will to expand on that space into other areas of be available for small receptions before the the lobby. The anterior bar and patio space end of the year. The target events for the will have a light refresh, including minor de- space are receptions of up to 100 people sign work and color alterations, but the rest and weddings with between 80 and 100 of the lobby will see more extreme changes. guests. The hotel has hosted two events on The hotel’s licensed Starbucks will be the helipad, according to Ryan. She said gutted and completely refreshed begin- details around safety and the aesthetic of ning in November or December. Ryan the space are still being worked out. said the coffee shop’s footprint will not The public areas within the Long Beach change but the store will be updated to in- Marriott were updated in 2013, so there are clude the company’s newer, more modern no current plans to renovate those spaces, ac- and urban concept. The 21,000 square cording to General Manager Imran Ahmed. feet of meeting space on the first, second However, the hotel’s rooms and corridors are and third floors will also be renovated, renovated every 10 years, and plans are targeted to begin in September and be awaiting approval to begin those upgrades at completed within four to six weeks. the end of this year or the beginning of 2019. “We want to continue to enhance the cus- The updates to the 310 hotel rooms will tomer experience. And there is a lot of com- include new vinyl, carpet, bedding, furni- petition out there,” Ryan said. “The ture and TVs – essentially everything in the competition has extended way beyond meet- rooms. Once renovations begin, Ahmed ing rooms to freestanding restaurants, bars, said every room should be done within six event venues – nowadays people are looking to eight months. for experiences way beyond just a meeting “Hotels go through a lot of wear and tear, room and we are working around that.” (Please Continue To Top Of Next Page) 1_June_19_2018_issue_lBBJ 6/16/18 6:47 pm page 30

30 • June 19-July 2, 2018 • Long Beach Business Journal The Hospitality And Tourism Industry

(Continued From Page 29) absorb the additional rooms over time, so if you don’t keep your property up to especially if their introduction is stag- date and refreshed at a minimum of every gered over the next several years. 10 years, then it will look tired and your “L.A County as a whole has been guests will not be happy,” Ahmed said. undersupplied in hotel rooms for so “That’s why it’s imperative that any hotel long that we’re operating at occupan- go through their recommended renovation cies that are really above long-term av- logs and keep the property up to date.” erages and levels that are sustainable,” When the 399-room Hilton Long Beach Baltin said. “For example, year-to- was purchased in 2012 by Atrium Hospital- date, the Long Beach market through ity, the company instantly began looking at April is at 81% occupancy, the same as renovating the property from top to bottom. it was last year, which means the [ca- In 2015 and 2016, that is exactly what was pacity of the] Hampton Inn and Home- done, according to General Manager Greg wood Suites that opened by the airport Keebler. He said that during the Great Re- was fully absorbed immediately.” cession many hotels did not have the funds Baltin explained that, if a hotel closes to maintain usual renovation schedules, a year at an 81% occupancy rate, that which are typically every five to 10 years. means there were about 150 to 180 days “It’s the guest expectation. It enables ho- Greg Keebler, general manager of the 399-room Hilton Long Beach, said regular investment where the hotel was at capacity. In 2016, into hotels is necessary in order to keep up with guest expectations. He explained that tels to remain solvent and drive occupancy Long Beach’s hotel occupancy was hotels spend millions of dollars per year on infrastructure that often goes unnoticed by and hopefully some [increased] rates, with guests. (Photograph by the Business Journal’s Brandon Richardson) 78%, and last year it was 79%. CBRE fresh products. Just like your home, you social events Monday through Thursday, said the Staybridge will offer activities such Hotel’s forecast for Long Beach in 2018 have to improve it over time or it’s not Kim explained. Rooms will consist of stu- as yoga, pool exercise classes and other was 78.6%. Though the current year-to-date going to be a nice home anymore,” Keebler dio suites, one-bedroom suites and two- events throughout the week. rate is above that level, Baltin said the fourth said. “There are always things that are done bedroom suites, and feature full kitchens The demolition process is estimated to quarter is typically slower for hotels in many every single year, but they are things that with full-sized refrigerators to accommo- take three or four weeks, Kim explained, markets. That should bring Long Beach oc- don’t make the headlines because they are date extended stays. The lobby will feature with a groundbreaking ceremony to be held cupancy down to previously projected levels. not things the guests will see. Hotels are a marketplace that Kim described as a mini toward the end of July or early August. The Long Beach market is considered spending millions of dollars per year on in- convenience store. Guests will be able to Once construction begins, the buildout is extremely strong, according to Baltin, with frastructure items, particularly in the older order groceries similar to typical room estimated to take about 16 months, putting the national average occupancy currently at hotels in Long Beach.” service and hotel employees will deliver the the opening of the new hotel around No- an all-time high of 66%. He noted that, Investment in new hotel construction is food and stock the fridge. vember or December of 2019, according to from 2012 to 2018, hotel supply in Long also happening outside of the downtown The new hotel will feature a state-of- Kim. The Holiday Inn tower will remain, Beach has increased 1.6% on a compound area. At the end of last year, the 241-room the-art fitness center with a floor-to-ceil- having been fully remodeled last year. annual growth basis, while the volume of Hampton Inn and Homewood Suites dual ing glass wall overlooking a brand-new Maintaining A occupied rooms grew by 3%. These num- hotel by Hilton opened at Douglas Park. pool area to include a 2,800-square-foot Sustainable Market bers show that the demand for more hotel Just up the street, demolition is set to begin deck between the Staybridge and Holiday With the nearly 1,000 new hotel rooms rooms in Long Beach is there, he said. on the two-story portion of the Holiday Inn Inn tower for the hotels to share. Two hot proposed for the Downtown Long Beach Steve Goodling, president and CEO of Long Beach Airport on the northeast cor- tubs are included in the pool area, one for market alone, questions of market sustain- the Long Beach Area Convention and Visi- ner of Lakewood Boulevard and Willow all guests and one reserved for guests age ability and oversaturation have arisen. tors Bureau, agreed with Baltin and took it Street by the end of June or early July, ac- 21 and over, Kim added. Bruce Baltin, managing director of CBRE a step further, saying two projects will bring cording to General Manager Mooyon Kim. In addition to the built-in amenities, Kim Hotels, said the market should be able to a whole new niche market to the city. He ex- The existing building consists of 50 hotel plained that boutique hotel projects at The rooms and is already vacated. The site will Breakers and the Security Pacific National be home to a new, six-story Staybridge Bank building will fill out the Long Beach Suites. The hotel will include 125 rooms hotel offerings by becoming destination ho- and 3,000 square feet of meeting space that tels due to the historic nature of the sites, a can divided into six meeting rooms as well niche previously not catered to in the walk- as two boardrooms, Kim said. able Downtown Long Beach area. “We saw the need for an extended stay “We’ve recently targeted new associa- hotel. Long Beach is booming – we’ve had tions that previously could not meet at the families stay with us for an extended period convention center because we did not have of time waiting for the house to be ready. enough downtown hotel rooms immediately Also, we have many corporate guests stay around the convention center,” Goodling with us for an extended period of time,” said. “We just got verbal approval for a con- Kim said. “The project will really revitalize vention in 2026 from a board and it’s 1,600 the whole campus. We’ll be able to offer rooms on peak nights. This type of new in- more options to our guests in terms of ac- The Renaissance Long Beach hotel recently received authorization to host events on its ventory will help us attract those types of commodations and amenities.” rooftop helipad, according to General Manager Pam Ryan. Targeted events include groups. These projects are great opportuni- receptions of up to 100 people and weddings with between 80 and 100 guests, she The new hotel will serve complimentary ties for Long Beach [toward] . . . becoming said. The rooftop venue will give guests “an unforgettable experience with breathtaking breakfast every morning and offer evening views,” Ryan said. (Photograph courtesy of Renaissance Long Beach) an even better-known destination.” I 1_June_19_2018_issue_lBBJ 6/16/18 6:47 pm page 31 1_June_19_2018_issue_lBBJ 6/16/18 6:47 pm page 32

32 • June 19-July 2, 2018 • Long Beach Business Journal The Hospitality And Tourism Industry Jeff Forney: Family Man & Hospitality-Tourism Extraordinaire

I By BRANDON RICHARDSON in the hospitality and tourism industry, he added. SENIOR WRITER “It’s been a long run. Eighteen years at a company is unheard of for a lot of places but, because we’re For the last 18 years, Jeff Forney has taken his always evolving and the City of Long Beach is al- family values and applied them to his work at the ways evolving, it’s a lot of fun,” Forney said. “I know Long Beach Convention & Visitors Bureau a lot of our 400 members – a lot of them joined when (CVB). Born and raised in Redondo Beach, For- I started. We’ve had 18 years of relationships with ney attended El Camino Community College be- them. That’s why we call it ‘Team Long Beach’ – fore transferring to California State University, we’re almost like family with a lot of them.” Dominguez Hills, where he graduated with a bach- The family-like attitude Forney brings to work was elor’s degree in recreation. instilled in him while he grew up in his own family. “My mom said to just follow my heart,” Forney His parents have been married for 60 years and he is said. “I loved to play. I was very active in sports. I the youngest of their eight children. Watching his played basketball in high school, some volleyball older brothers and sister grow up helped shaped the in college, volleyball on the beach, cycling, run- person he is today, Forney said. ning, all of that. I was a total beach guy.” “Family is very important. For me, family is your “I had beautiful blonde hair at one point,” he support. The five closest people around you kind of added with a hearty laugh. dictate who you are and who you become. I happen During college he worked as a bellman at a Mar- to have eight of them, plus my wife’s side,” Forney riott hotel, which was his first professional intro- said. “I always have somebody there to help me. I’m duction to the hospitality industry. After very fortunate, I really am. I don’t take it for granted. graduation, Forney worked at a teen center in Man- I appreciate everyone in my family. If I didn’t have hattan Beach, followed by a stint at a boys home them, where would I be?” in the San Fernando Valley. In the early 1990s, he Forney has been married to his wife, Jackie, four oversaw a new teen center for the City of Redondo years and they have a four-year-old son, Matthew. Beach. Forney noted that, at the time, teen centers He said he loves being a husband and a father, noting often closed after eight months; however, after two how much having Matthew has changed him – more years of building the program and laying the foun- than he ever thought possible. dation, he left his position, and the center is still “I love meeting new people and working Though his family has to deal with his some- operating today at a larger location. with people and being in a city that’s always times-crazy work hours, Forney said they are very Through his work at the teen center, Forney reinventing itself and adding and improving.” supportive and often get to attend events and par- landed a position with Main Street Experiences in Jeff Forney, Vice President Of Marketing, Membership And Special Projects ties. He recalled bringing Matthew to a video shoot Torrance (the company still operates today in Lake- Long Beach Convention & Visitors Bureau at the convention center’s recently unveiled up- wood), where he handled contracting with restau- graded fountains. He said the camera crew an- rants and attractions for senior outings. His work at Main special events – staying within a budget and managing nu- swered Matthew’s questions and let him watch them Street allowed him to build a relationship with the new merous contracts at a time. work, giving him an experience he may not have had if Aquarium of the Pacific in Long Beach, leading him to take “Some people get intimidated [with contracts and math] his dad did not work for the CVB. on the role of sales manager at the Aquarium for the youth but it’s something that I’ve done for so long, it doesn’t faze While trying to provide Matthew with every opportunity and senior markets, as well as tours for CVB clients. me too much,” Forney said. “Plus, being surrounded by a to experience new things and to succeed in life, Forney said “It’s kind of been the ‘who you know’ versus ‘what you great team helps. We have a lot of experience that I can he is also trying to instill a sense of community and giving know’ for me. After two years at the Aquarium, I moved draw on. We can learn how to better events. We always try back. He said that his goal is to help guide Matthew down a away to Camarillo for a short stint,” Forney said. “I and improve. That’s part of the fun for me, trying to im- path he enjoys, rather than fixating on the “almighty dollar.” stayed in touch with people and realized I really wanted prove on something.” In their spare time, the Forney family enjoys exploring to come back to the beach, and there happened to be a Though special events take up a lot of his time due to Long Beach and surrounding areas. Forney said there are position at the CVB in membership. Ever since 2001 I the amount of logistics and planning involved, Forney said frequent trips to parks, and he tries to take Matthew to new have been here.” marketing and membership are equally important. Last parks as often as possible. The Forneys like experiencing Forney started his time at the CVB as the membership year, the membership team went to or hosted 60 events – new things, particularly restaurants. He explained that the services manager and worked his way up to membership summer concerts, fundraisers, open houses, grand open- family does not go to chain restaurants very often, opting director. In 2006, he moved over to marketing. He noted ings and mixers. He said these are opportunities for all to patronize those owned by locals. Forney gets his adren- that, even though he does not have a degree in marketing, members to connect and hopefully gain business within the aline fix by playing paintball with friends, an activity he he has been enveloped in it throughout his post-college life, community. With a chuckle, he added that people often put has enjoyed since 1994. as each position he held called for marketing skills in one on weight in the hospitality business due to the amount of “When you’re growing up you have a vision. I never knew form or another. Today, Forney serves as the vice president eating they do between events and taking clients out. I’d be where I’m at but I couldn’t see myself doing anything of marketing, membership and special projects. The best part about working in Long Beach is that the different because I get to go to events, I get to meet a ton of With his dad working nearly 30 years in the California city, the businesses and the people are genuine, Forney ex- people – I’m very social,” Forney said. “I love meeting new State University Chancellor’s Office in Long Beach over- plained. He said it is a distinct city, with each neighborhood people and working with people and being in a city that’s al- seeing contracts, Forney said he developed a love for math having its own vibe, while the city maintains an overall au- ways reinventing itself and adding and improving. It isn’t and contract details. His passion for math and contracts has thentic feel. The fact that no one is trying to be something stagnant. If I was in a place that was just the same all the served him well at the CVB, particularly when planning they are not is what makes Long Beach a great destination time, I would leave. It wouldn’t be personally fulfilling.” I 1_June_19_2018_issue_lBBJ 6/16/18 6:47 pm page 33 1_June_19_2018_issue_lBBJ 6/16/18 6:47 pm page 34

34 • June 19-July 2, 2018 • Long Beach Business Journal The Hospitality And Tourism Industry Tour Long Beach From The Couch: New Long Beach CVB Website To Immerse Users In City It’s ’Like Google Street View On Steroids’

I By ANNE ARTLEY friendly experience. New features include a virtual tour through the city’s hotels and STAFF WRITER major attractions, content shared by users, and an optimized search engine. Loren Simpson, the CVB’s director of digital communications, drew on her back- The soon-to-debut Long Beach Convention and Visitors Bureau (CVB) website al- ground in entertainment to execute an inventive design. “What’s great about our CEO lows users to sit behind the wheel of a race car in the Toyota Grand Prix, walk the is that he’s an innovator,” she said, referring to CVB President and CEO Steve deck of the Queen Mary and peek into the shark tank at the Aquarium of the Pacific, Goodling. “When I come up with these different - maybe scary at times - ideas, he all without stepping foot in the city. embraces them. With the virtual reality component, we’re trying to equip our sales The CVB partnered with Xplorit, a Nevada-based virtual travel technology company, directors with a better tool to explain, ‘When you book Long Beach, it’s a campus.’” and Tempest, a tourism marketing organization, to create a more interactive and user- The virtual reality component of the new site enables users to walk through the city’s 16 largest hotels as if they are experiencing them in real time and in person. The site gives potential visitors a sense of the proximity of the hotels to the convention center and the downtown area, highlighting the city’s walkability. “The big business for the convention center is big meetings, so “[the CVB] wanted to show how convenient the center is to all the hotels,” Greg Murtha, president of Xplorit explained. He described the site as “like Google Street View on steroids.” Murtha clarified that the technology is designed to bring the im- mersive interaction to every type of device, such as smartphones, tablets or three-dimensional viewing devices. “There’s basically a trend on the web: how do you make your website more experiential?” Murtha explained. “Instead of reading about the Aquarium, you can see what it’s like to walk over to the shark tank or see the penguins. Our clients are trying to create a compelling experience to make peo- ple want to visit.” Another experiential component is the incorporation of photos posted to social media with the hashtag #VisitLB. “The photos that users take versus marketing pictures are completely different The new Long Beach Convention & Visitors Bureau (CVB) website contains a virtual reality component as well as – you can tell,” Simpson said. “That’s why digital influencers are a sleeker design, content shared by users and an optimized search engine. “With the virtual reality component, so huge. People are looking for those authentic takes.” we’re trying to equip our sales directors with a better tool to explain, ‘When you book Long Beach, it’s a campus,’” Long Beach CVB Director of Digital Communications Loren Simpson said. (Photograph courtesy of the CVB) The site’s new, optimized search engine also increases the city’s accessibility. “[The search bar] looks at your entire sentence rather than individual words,” Simpson said. “It aggregates the informa- tion it thinks you’re looking for. It assists users in their quest, which makes it more user-friendly.” The CVB collaborated with Tempest to create a unique site de- sign and achieve accessibility. According to Jenny Rose, Tem- pest’s director of client services, the company employed technology such as large-format photography, full-screen video and a streamlined navigational experience to connect users to the city. “Intuitive, visual navigational elements invite the visitor to explore additional pages on the website, and advanced filtering options help the visitor quickly sort and sift through local business listings to find the restaurant, attraction, or retail shop that best fits their needs,” Rose said in an e-mail statement. Although the site is scheduled to launch at the end of June, Simp- son already has some ideas for future virtual experiences. “The camera could go up on the scaffolding of the POW! WOW! Long Beach murals as they’re painting away, so you can see the paint dripping off the wall,” she explained. “Long Beach has so many Loren Simpson is the director of digital communications for the Long Beach Convention & Visitors Bureau cool things: cultural festivals at the aquarium, music festivals and (CVB). Together with Xplorit, a Nevada-based virtual travel technology company, and Tempest, a tourism even a ghost tour on the Queen Mary. . . . I just want to give a teaser marketing organization, she has implemented a new website set to launch at the end of the month (Photograph courtesy of the Long Beach CVB) to bring everybody out.” I 1_June_19_2018_issue_lBBJ 6/16/18 6:47 pm page 35 1_June_19_2018_issue_lBBJ 6/16/18 6:47 pm page 36

36 • June 19-July 2, 2018 • Long Beach Business Journal The Hospitality And Tourism Industry

Business Journal photograph Long Beach Tourism Professionals Upbeat As Summer Approaches

I By SAMANTHA MEHLINGER Attractions On The Waterfront own Snoop Dogg and other performers as coil, a device that shoots out low-wattage EDITOR The Queen Mary has a full calendar of headliners. And the radio station 98.7 FM electricity in lightning-like light shows. events planned for the summer, thanks in is bringing back its Alt Summer Camp to The ship’s hotel is also doing well, ac- Long Beach’s largest attractions and part to a partnership with major events the ship’s grounds on August 12, with cording to John Jenkins, vice president of tourism-based businesses are apparently firm Goldenvoice. The company has famed indie band Death Cab for Cutie at asset management for Urban Commons. reaping the benefits of a solid economy and planned a series of waterfront concerts ad- the top of the lineup. “Due to the continued efforts of the Long bustling convention center, with executives jacent to the ship with big names attached Urban Commons, the Queen Mary’s Beach Convention & Visitors Bureau, the and business owners interviewed by the – the upcoming Summertime in the LBC leaseholder, first introduced new events Queen Mary hotel occupancy has contin- Business Journal all expressing upbeat at- concert on July 7, for example, features Ice like Goldenvoice’s concerts to the water- ued to improve year over year and is up 4% titudes going into the summer. Cube, The Game, Ja Rule, Long Beach’s front in 2017, while continuing its already in 2018 from 2017,” he said. successful annual events like the Hal- Across the water from the ship at Rain- loween maze, Dark Harbor, and the winter bow Harbor, the Aquarium of the Pacific is holiday event, CHILL. “Events are driving celebrating its 20th anniversary year with a visitors to the ship,” Dan Eisenstein, direc- series of events and competitions, accord- tor of events for Urban Commons, said. ing to President and CEO Jerry Schubel. “We are very happy with our partner that “We have contests that take place every we picked up at the end of last year, Gold- day. We have some new exhibits. We have envoice, one of the largest purveyors of live got this new film that plays every day in the entertainment in the world. We’re happy Great Hall that highlights the Aquarium’s with the results that we’re seeing.” observation work over the last 20 years. As the company continues to make im- And we’re having art exhibits throughout provements to the Queen Mary – a require- the rest of the year,” he said. ment before it begins a planned ship-side A recent special lecture included former development with new attractions, shops Mayor Beverly O’Neill and other local lead- and an entertainment venue – it continues to ers who were influential in getting the Aquar- find new ways to bring people to the site, ium built, such as former City Manager Jim which is across the water from downtown Hankla and current Long Beach City Col- and adjacent to the Port of Long Beach. lege District Trustee Doug Otto. In August, Most recently, Urban Commons brought in Vice President of Husbandry Sandy the world’s largest traveling observation Trautwein will give a special lecture high- (Ferris) wheel for a period of about a month, lighting the animals of the Aquarium, partic- that the firm intends to bring back for a ularly those that have been with the facility longer stay next summer, Eisenstein said. since its grand opening, Schubel said. The ship itself continues to host multiple The Aquarium’s newest exhibit is a tank exhibits, including the long-running Diana: featuring a day octopus, an active cephalo- Legacy of a Princess, which is finally closing pod that enjoys swimming in the light and in January 2019, according to Eisenstein. An often changes colors before guests’ eyes. exhibit on Winston Churchill, which at this New Aquarium residents also include baby time has no set closure date, details the for- animals like a seal pup and three new pen- mer prime minister’s ties to the ship and fea- guin chicks, Schubel noted. The Aquar- tures replicas of his war rooms from World ium’s regular series of lectures also War II. Closing July 7 is Titanic In Photo- continues, with a full schedule available on graphs, an exhibit featuring photos and arti- its website at aquariumofpacific.org. facts of the ill-fated RMS Titanic. The ship’s “We also continue our urban ocean Ghosts & Legend’s Tour has also been re- cruises. There are several of those over the vamped, now featuring a trip to a refurbished summer,” Schubel said. These cruises boiler room equipped with a massive Tesla (Please Continue To Page 38) 1_June_19_2018_issue_lBBJ 6/16/18 6:47 pm page 37 1_June_19_2018_issue_lBBJ 6/16/18 6:47 pm page 38

38 • June 19-July 2, 2018 • Long Beach Business Journal The Hospitality And Tourism Industry

(Continued From Page 36) day. I think part of it are the conventions in to a lot of the events for Urban Commons. tion to family-friendly museums through- highlight the urban ocean, which stretches town,” she said, adding that she is expecting So if people want to see a concert and not out Los Angeles and Orange counties, in- from Santa Barbara to the Mexico border. the village to also benefit from the expan- get in traffic to get over there, then they can cluding the Reagan Library in Simi Valley, “More people live along that stretch than sion of Carnival Cruise Line’s terminal and take the water taxi over,” Gonzales said. the Huntington Library in San Marino, the in the entire State of New York,” Schubel the future expansion of the Aquarium. Last year, Long Beach Transit began part- Mission San Juan Capistrano and more. said. “This population makes intensive The restaurants and shops at Shoreline nering with Urban Commons to provide The round-trip fare on the charter-style bus and varied uses of the ocean. We’ve got Village have experienced an aggregate in- water taxi service to Dark Harbor, with the is $12, with the exception of a trip to the the two biggest container ports in the crease of 8% in sales, according to Fixen. expense included in the event ticketing fee. Morongo Casino scheduled for July 21 country. And we seem to be able to coexist One store, a candle shop, recently went out About 30% of Dark Harbor attendees used which costs $15, according to Gonzales. in relative harmony with nature.” of business, but it gave another business an the service, Gonzales noted. “This is a really popular service,” Gon- With the exception of a dip in attendance opportunity to expand. “We moved Queen According to Gonzales, a contractor has zales said. “I think we in Southern Califor- in May, so far the Aquarium is “going gang- Mary Couture over to the candle location. been identified to repair the AquaLink’s stop nia are accustomed to jumping in the car busters” this year with visitors, Schubel said. And then Louisiana Charlie’s, the Cajun at the Belmont Pier, which was damaged and going places to have a fun time, and we “We have checked with other institutions restaurant that’s here, they expanded into during a storm last year. “I think by next sea- find sometimes when we get there that our and most of them, except for the California that space,” Fixen said, explaining that the son, that will be back in action,” he said. fun time is sort of spoiled by the amount of Science Center, also had soft attendance in restaurant expanded within the past month. Long Beach Transit also offers a free bus congestion around the parking and just get- May. So something strange was happening,” “Then we had a store go out that had been service, Passport, to popular downtown des- ting into the venue. To offer a really com- he said. “But I am expecting that we are here for a long time, Purple House. And tinations such as the Queen Mary and the fortable charter type vehicle to take people going to have a good, strong summer.” that was replaced with this new, really fun Aquarium. Gonzales noted that the service to these events is really an advantage.” Construction on the Aquarium’s expan- trendy store called Find Your Feet.” The is facing more competition from ride-shar- Whale-Watching, Catalina sion, dubbed Pacific Visions, is progressing new shop specializes in socks and sandals. ing services like Uber and Lyft, as well as a Trips, And Cruises At Sea on time and on budget, according to Schubel. Helping visitors travel amongst these privately operated free ride service that uses Long Beach is home to a variety of The expansion is scheduled to open in 2019, various waterfront attractions is Long golf cart-like vehicles to hustle visitors water transit services, ranging in size from and will feature an immersive theater, an art Beach Transit, which offers two water taxi throughout the area. “They are offering small lunch cruise operations to the 3,000- gallery, a new exhibit space and more. services – AquaBus and AquaLink. The lat- something really different than we are. We plus passenger cruises by Carnival Cruise Businesses located at Shoreline Village in ter provides water transit from downtown are offering a regularly scheduled transit Line. Owners and executives of these busi- Rainbow Harbor are also benefiting from waterfront venues all the way to Alamitos service that is required by federal law to nesses described a steady flow of business an increase in visitors to the area, according Bay Landing. AquaBus operates within the provide a higher level of service,” he said, in 2018 bolstered by an overall strong to Property Manager Debra Fixen. “Traffic downtown harbor area. The water taxis noting that the Passport buses are all ADA tourism industry in Long Beach. has been up. We were blessed with great began their daily operations on Memorial compliant. Some of them are battery-pow- Dan Salas, owner of Harbor Breeze weather for the early winter,” Fixen said, Day Weekend, according to Paul Gonzales, ered and operate at zero emissions, as well. Cruises, hopes to expand his business with noting that this winter was much drier than external affairs manager and public infor- Beginning July 6, Long Beach Transit is the addition of a new vessel operating from in 2017. “Also, it just seems like there is mation officer for the transit agency. launching its summer-long Museum Ex- Long Beach. Harbor Breeze operates daily

more tourism. I see more people here every “We are also providing water taxi service press service, which provides transporta- (Please Continue To Page 40) 1_June_19_2018_issue_lBBJ 6/16/18 6:48 pm page 39 1_June_19_2018_issue_lBBJ 6/16/18 6:48 pm page 40

40 • June 19-July 2, 2018 • Long Beach Business Journal The Hospitality And Tourism Industry

(Continued From Page 38) Harbor Breeze’s marketing to promote its sea life watching cruises, harbor tours and superior vessels, its partnership with the chartered vessels for special events. “We Aquarium and easy access parking is en- have proposed to the City of Long Beach to abling the company to hold its ground. Har- bring to Rainbow Harbor a modern, state-of- bor Breeze’s corporate bookings for special the-art, 500-passenger vessel with California events cruises are growing, Salas added. Air Resources Board-compliant engines and “I am so proud of Steve Goodling and his a handicapped-accessible elevator,” Salas team at the Long Beach CVB, and the said. “We are awaiting city approval.” Long Beach Chamber, the Downtown Salas said ridership figures for his ves- Long Beach Alliance, the Aquarium of the sels have been “fantastic” so far this year. Pacific and the Pike, and of all the hard He attributed an increase in ridership both work by city officials, the mayor’s office to strong tourism, and also to increased wa- and city manager’s office,” Salas said. “We terfront visits by Long Beach residents and are headed for becoming a world class des- workers. “We’re seeing people embracing tination and a world class city.” and using the waterfront,” he said. “There Greg Bombard, president of Catalina Ex- are more people walking their dogs in the press, which provides daily service to and morning, more people riding their bikes, from Catalina Island, also praised the city for more people just taking an afternoon stroll its efforts to boost tourism. “Something that’s because of all the new housing and the de- helping is the City of Long Beach has really velopment,” he observed. “We are starting worked hard on their convention options,” he to see employees who work in the buildings said, referring to improvements to the Long around Long Beach taking their lunch Beach Convention & Entertainment Center. break and strolling around the water.” “What they have done in Long Beach with Harbor Breeze’s whale-watching tours, that convention center is phenomenal as far which are each staffed by an Aquarium rep- as how they have been able to . . . bring a lot resentative, are in fierce competition with of new groups to town,” he said. “When peo- another company in Newport Beach that is ple come in and enjoy their convention here, offering extremely low fares, according to they come back with family.” Salas. “It has made it extremely difficult So far, 2018 has been on pace with 2017 for us to attract those passengers,” he said. in terms of Catalina Express’s ridership Even though some potential customers are numbers, Bombard said, attributing the flat being lured by the lower prices, Salas said growth pattern to gloomy weather in May 1_June_19_2018_issue_lBBJ 6/16/18 6:48 pm page 41

Long Beach Business Journal • June 19-July 2, 2018 • Page 41 The Hospitality And Tourism Industry

and early June. He noted that improve- vides for a quicker on-boarding, or em- ments continue to be made on Catalina Is- barkation, process, he noted. “We couldn’t land, which ought to attract more be happier,” he said. passengers. “They are constantly upgrading About 650,000 people are expected to the Descanso Beach Club. They have done sail from Long Beach on Carnival Cruise a great job of that,” he said, referring to the Line ships this year, according to Torres de venue in Avalon. A second beach club has Navarra. “We always sail full, so those been created at Two Harbors, he added. numbers are pretty consistent,” he said. Sports-centric attractions such as a zipline In late 2019, Carnival is introducing its experience and parasailing are also strong newest vessel, which is currently under con- drivers for tourism to the island, he noted. struction in Italy, to Long Beach: the Carnival “We have extended some of our market- Panorama. “It’ll be the first time that we put ing with the Santa Catalina Island Com- a brand-new ship out in California. So that’s pany where we are reaching out to San a huge investment and commitment from the Francisco and doing some advertising up Carnival brand to this region,” he said. that way that we haven’t done in the past,” The Panorama will replace the Carnival Bombard said, noting that air travel from Splendor in Long Beach. But, before it the Bay Area is quick and easy. does, the Splendor will take a first of its Carnival Cruise Line’s recently expanded kind 24-day cruise from Long Beach to terminal, which now takes up the entirety Singapore, with stops in Guam, Malaysia of the dome adjacent to the Queen Mary, is and Vietnam. “It is the first step for Carni- functioning as the company had hoped, ac- val Splendor’s move to her new home port cording to Carlos Torres de Navarra, vice in Sydney, Australia,” Torres de Navarra president of strategic and commercial port explained. “It will be the longest revenue development for Carnival. cruise that we have ever offered for Carni- “It really is exceeding our expectations,” val Cruise Line.” In the meantime, Carnival Torres de Navarra said. “We knew that our continues to offer its regularly scheduled guests would love it. But what we are see- cruises to Hawaii and various stops in Mex- ing now is that this terminal, in terms of ico, as well as an annual Alaska trip. guest experiences, is now the highest rated “We can’t recall a time where in our terminal in terms of the embarkation minds Long Beach has been at a higher po- process.” The new terminal is not only a sition in terms of attracting cruise tourism,”

beautiful setting for guests, but also pro- (Please Continue To Page 42) 1_June_19_2018_issue_lBBJ 6/16/18 6:48 pm page 42

42 • June 19-July 2, 2018 • Long Beach Business Journal The Hospitality And Tourism Industry

(Continued From Page 41) paninis, pastries and coffee, according to Torres de Navarra said. “When you con- the couple. “We came up with several dif- sider all the new and exciting stuff that’s ferent sandwiches. And the fun thing for happening here with the Aquarium as well me was trying to name them in homage to as new improvements to current hotels and Long Beach,” Arredondo said. The menu the tourism from conventions doing really boasts items such as the “Retro Row Pesto” well, I mean, it’s all positive.” and “Daugherty Spicy Flyer.” Torres de Navarra concluded, “I can’t The Long Beach City Council approved state this enough: that the support we’re plans for major airport improvements in getting from the City of Long Beach, the May, and the execution of the contract for mayor and the Port of Long Beach is criti- the work with Swinerton Builders is immi- cal.” He added, “The attitude that we see nent, according to Romo. Regular meetings with the port and with the city is, ‘Look, to prepare for groundbreaking on the im- we’ll make it work. We’ll find a way.’ And provements should begin in July, he said. we love that positive working relationship.” The first improvement planned is the Long Beach Airport construction of a new ticketing lobby be- Travel through the Long Beach Airport hind the historic airport terminal, which is up 9% compared to last year, according in turn will become the counter area for Airport Director Jess Romo. Samantha Argosino and Anthony Arredondo are the co-owners of the new Little Brass Café rental car operations. The new ticketing “The load factors are also up this year,” in the historic terminal at the Long Beach Airport. The café offers a variety of sandwiches, lobby will function in a common use for- Romo said, referring to the ratio of passen- paninis and coffees. (Photograph by the Business Journal’s Samantha Mehlinger) mat. “Depending on who is using a gate gers to seats in an airplane. “That also ac- “Concessions revenue continues to be partner and husband, Anthony Arredondo. or who needs the ticketing function at that counts for the increase in traffic, because it’s strong year to date. And we’re expecting to Argosino previously operated The Brass time, they will allocate it to a specific car- the same number of flights that we had last continue to see a really good summer,” Lamp on the Promenade in Downtown rier,” Romo explained. year.” Romo said airlines operating from the Romo said, noting that strong revenue Long Beach, which closed last year. The baggage claim areas are also slated Long Beach Airport – which include Jet- among the concessions businesses at the “After we closed we got a phone call from to be consolidated into one space, which Blue Airways, Southwest Airlines, American airport are also an indication of an increase Seyed Jalali and John Keisler [from the will enable the courtyard at the rear of the Airlines and Hawaiian Airlines – are better in the number of travelers. “We see that city’s economic development department], new ticketing lobby to be expanded, accord- utilizing their allocated daily flight slots, and their revenues are up, which means the air- and they asked if I’d be interested in opening ing to Romo. The enlarged courtyard will that there is an increasing demand for travel port’s revenues are up.” here,” Argosino said. Arredondo, who had present new opportunities for pre-TSA area out of Long Beach. Hawaiian Airlines is the The newest concessions business at the been working at Boeing for 17 years, quit concessions accessible to travelers as well newest commercial airliner to offer service airport is the Little Brass Café, a small his job to join Argosino in the new venture. as airport employees and workers in the from the Long Beach Airport, and cele- business in the historic terminal operated The Little Brass Café has been doing area, he noted. “We’re planning for every- brated its first flight to Honolulu on June 1. by Samantha Argosino and her business well so far with its offerings of sandwiches, thing to be finished within three years.” I 1_June_19_2018_issue_lBBJ 6/16/18 6:48 pm page 43

Long Beach Business Journal • June 19-July 2, 2018 • Page 43 The Hospitality And Tourism Industry Long Beach Airport’s Fred Peña Says Aloha To His 49-Year Aviation Career

I By BRANDON RICHARDSON operator was hired to do work at the Los SENIOR WRITER Angeles Olympics, Peña recalled. He ex- plained that the operator, an Italian man After 49 years in the aviation industry, with a heavy accent, was having trouble Fred Peña, the now-former manager of air- finding a place to park his blimp. After port operations and facilities at Long Beach being booted from the military base in Los Airport (LGB), retired. Several months shy Alamitos, the operator decided to try his of his 68th birthday, Peña’s last work day at luck with Berg at LGB. Berg called a meet- the airport was May 31. The following ing the following day with the appropriate morning, he and his wife, Kimberly, airport staff and city officials, but not be- boarded Hawaiian Airlines’ inaugural flight fore telling Peña about the situation. from LGB to Honolulu. “That night, Randy and I were having a “This has come full circle for me be- ‘debriefing’ session – at the time, there was cause my first-ever plane ride was from a nice lounge on the second floor of the ter- Honolulu to Lihue on the island of Kauai minal and we had reserved seats in the af- on Hawaiian Airlines,” Peña said while sit- ternoon. I gave him an Italian ‘phrase of ting in his boxed-up office on his final welcome’ and he wrote it down on an index work day. “To be able to go back to Hon- card,” Peña laughed. “The following day olulu on Hawaiian Airlines, it just . . . there when he had their meeting, the pilot walked are a lot of emotions for me. I can’t de- After 49 years in the aviation industry, Fred Peña, left, retired from Long Beach Airport, into the office and Randy threw out the scribe the feeling.” where he worked from 1982 to 1995 and again from 2002 to May 31, 2018, in various phrase. The pilot asked him if he knew Jet fuel is in Peña’s blood. His dad capacities. Peña is pictured in front of the historic terminal building with Airport Director Jess what it meant and Randy, with all these city worked for Philippine Airlines before be- Romo on his last day of work. (Photograph by the Business Journal’s Brandon Richardson) people around him, said he thought he was coming a manager with Japan Airlines in ferred to Orange County at John Wayne to runways and the terminals. He even saw saying hello and welcoming him. But no. Honolulu, where Peña is originally from. Airport. That is where I closed out my [22- the introduction of LGB’s famous (or, to I’ll have to let you use your imagination He said that, when he was a kid in the early year] career with Alaska – I had the itch to some, infamous) noise ordinance in 1995, from there, but the room cracked up. In the 1950s, he loved going to work with his dad, try something new. I started with Long as Alaska took part in lawsuits against the end, the airport was able to put the airship standing by the fence and watching the Beach Airport in June 2002.” city throughout the 12-year process of rais- on the field and we all became very good planes arrive and depart. That is when he Then-Airport Manager Chris Kunze ing a proposed daily flight cap from 15 to friends with the pilot after that.” first caught the aviation bug, he reminisced. reached out to Peña directly when the super- 41 commercial flights. A while after that, Peña flew into LGB After graduating from Damien Memorial intendent of operations position was opening “I think I’ve forgotten most of the mem- from a meeting in Seattle. Berg, along with High School in Honolulu, Peña attended up at LGB. After several years, he received a orable stories from working here,” Peña said the chief of security, met him on the tarmac Leeward Community College for a few promotion to manager of facilities and build- with a chuckle. “The Virgin Orbit 747 that and called him over to their car. When Peña years. In May 1969, while still attending ing services. And finally, in December 2016, is out here now, that is really unique and I stuck his head into the passenger window, college, Peña began working part time with Peña was promoted to the last position he’d think it was fun to help them get on the field he said Berg grabbed his neck tie, rolled the Canadian Pacific Air Lines. This is when hold – manager of airport operations and fa- and make a home for them,” he said, refer- window up and proceeded to have the chief his real fascination with the industry set in cilities. For the last year and a half, he over- ring to the Boeing 747 to be used as a flying of security drive briskly up the tarmac – a and he never looked back. saw all facility maintenance and all launchpad for Virgin Orbit’s satellite rocket. silly revenge prank that still put a smile on Around 1980, Peña began working for operations at the airport – from safety and “To continue the aerospace legacy that Peña’s face more than three decades later. Alaska Airlines in Burbank as a supervisor security to engineering to custodial staff. Long Beach has with Virgin Orbit . . . we Falling into retirement head on, the cou- at both Burbank and Ontario airports. At the Looking back at nearly 30 years at LGB, are going into space from Long Beach. It’s ple’s week-long trip to Honolulu from Long time, the airline was just making its way Peña explained that the best part was the just quite a thing to see for me.” into Southern California, he explained, people. “Everyone says ‘the people,’ but it’s One of the most memorable and interest- Beach is the first of many trips they plan to looking for underserved airports away from very true,” he said. “I met a lot of nice col- ing missions he was tasked with during his take. While Honolulu is one possibility for Los Angeles International Airport. This ex- leagues and the passengers are always very time at LGB was hosting Air Force One the couple to retire to, Peña said they are pansion ultimately led the airline to begin nice here. And being part of the team on the shortly after President Barack Obama was going to use their newfound freedom to operating at LGB, where Peña was assigned development side and seeing improvements elected, Peña recalled. He said it was a travel the world. Tokyo, South and Central as station manager in the summer of 1982. to the facilities to make the customer expe- challenging but exciting undertaking to America and Europe are at the top of the list, From ticketing to baggage to catering, as rience a lot better was great.” work through all the logistics and extra Peña noted. He added that he has always station manager for Alaska, Peña oversaw it During his time at LGB, Peña saw the measures necessary to accommodate a wanted to take Kimberly and their two sons, all at LGB. Much of the work was done by airport grow and evolve. He noted that presidential visit. But, through relation- Scott, 22, and Spencer, 29, to the Philip- his own team; however, certain operations when he first started there was a single ter- ships with airport tenants and other entities, pines, where his parents immigrated from. were conducted by vendors. Peña noted that minal building, which stood where TSA all the required space and equipment came “I’m a lifelong aviation nut, so even ramp baggage handling was done by and passenger screening are now. Years together, and the experience was a success. though I’m retiring, that doesn’t mean that Airserv, which still operates at the airport later, he was on site for the groundbreaking Peña developed several good working re- I’ll be a stranger to airports,” Peña said. today under President Kevin McAchren. of the new terminal that allowed the airport lationships that turned into lifelong friend- “Besides the travel portion, I’ve always ad- “I was a station manager here in Long to support more airlines. During his tenure ships. One such friendship was with Randy mired the volunteers that come out here Beach from 1982 to about 1995,” Peña at the airport, he witnessed many changes. Berg, who was hired as manager of airport and help the travelers. That is something I said. “We had to close the station here in He saw the construction of the parking operations and facilities when Alaska first might be interested in doing. So, you may Long Beach in the mid-1990s and I trans- structures. He was there for improvements transferred Peña to LGB. In 1984, a blimp still see me around.” I 1_June_19_2018_issue_lBBJ 6/16/18 6:48 pm page 44