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W.A.C.E. Award Winning Publication of the Turlock Chamber of Commerce

TRANSCRIPT

Page 1: Summer 2012 Business News
Page 2: Summer 2012 Business News
Page 3: Summer 2012 Business News
Page 4: Summer 2012 Business News

PAGE 4 BUSINESS NEWS « JUNE 2012

ContentsW.A.C.E. Award Winning Publication of the Turlock Chamber of Commerce

Page 7 Cover Story – Blue Diamond Breaks Ground for Turlock Plant Construction

Page 8 Local Economy on the Mend? – Alliance

Page 10 Sharon Silva Has a Heart – Legacy

Page 11 National Retailers Move to… - Monte Vista Crossings

Page 12 Increased Activity and New Businesses on the Horizon – City of Turlock

Page 12 Entrepreneurs in Turlock Have the Opportunity to Test Market their Ideas – SBDC

Page 13 2012/13 Another Year of Budget Woes

Page 14 Charter Business Helps Turlock Businesses Stay Competitive

Page 14 Get Ready! Here Comes November!

Page 15 Our Legislators – Job Creators!

Page 16 Ambassadors of the Quarter

Page 16 Welcome New Members

Page 17 Mixer, Chamber and Ribbon Cutting Events

Page 18 Leadership Turlock Graduation

Page 20 Turlock Real Estate – The Worst is Behind Us… – PMZ Real Estate

Page 21 Business Forecast - CSU Stanislaus

Page 21 Turlock Convention and Visitors Bureau Promotes Community Events

Page 22 Water and Power – TID

Page 22 Business Leadership Summit 2012

TURLOCK CHAMBER OF COMMERCE

Business News

115 S. Golden State Blvd.

Turlock, CA 95380

209-632-2221

Fax 209-632-5289

Hours: Mon-Fri 10am – 4pm

Sharon Silva

President/CEO

[email protected]

Tasha Van Santen

Director Communications/Development

Ext. 104

[email protected]

Patricia Baron

Operations

Ext. 103

[email protected]

Sharon Berry

Administrative Assistant

Ext. 100

[email protected]

Kassi Fortado

Membership/CVB Assistant

Ext. 101

[email protected]

TURLOCK CONVENTION AND VISITORS BUREAU

Desa Cammack

Director

115 S. Golden State Blvd.

209-632-2221 Ext. 106

[email protected]

W.A.C.E. Award Winning Publication of the Turlock Chamber of Commerce

Page 5: Summer 2012 Business News

Summer is right around the corner andthings are starting to heat up in Turlock.Our economy is moving forward as the

established businesses are starting to see moreactivity and new businesses continue tooccupy some of the empty storefronts aroundtown. In order to keep our economy strong,the Turlock Chamber of Commerceencourages you to “Try Turlock First” in order to keep thebusinesses in the community thriving.

• The Downtown Farmers Market is a popular attraction thatbrings shoppers to downtown Turlock on Friday morningsand will be extending the market to Friday night on a fewoccasions during the summer. The Downtown FarmersMarket offers a chance to purchase fresh produce and itemsfrom local farmers and vendors as well as shop at the manyofferings from our downtown merchants.

• Turlock Chrysler Jeep Dodge will soon open at the site of theprevious Turlock Auto Plaza on Fulkerth and Highway 99.This is a welcome addition to the site that has been vacantsince 2008.

• Renovations of the buildings within Monte Vista Crossingsare moving along and soon Ulta Cosmetics, Old Navy, andOlive Garden will open their doors.

The November elections are right around the corner and theTurlock Chamber of Commerce continues to stay in directcontact with local, state, and federal legislators to make sure thatour members’ business concerns are heard and dealt with onevery level.

Whether it is legislative representation, networking, education, orcreating strategic partnerships, the Turlock Chamber ofCommerce will continue to provide the highest quality programsand services to the business community. If there is anything wecan do to help your business, please let us know.

Paul PorterWinton-Ireland Strom & Green

June is here. We are half way throughthis very important year. InNovember, we will decide much of

what will happen over the next severalyears as voters grapple with issues decidingwho will best represent us in a variety ofoffices, from President of the UnitedStates to Turlock City Council. Ourchoices will profoundly impact ourcommunity, its economic growth and its

quality of life.

Many of the Chamber board members and I spend timeattending conferences and meetings educating ourselves on howto best serve our members and their businesses. A short timeago, I was pointedly asked, "What is the Chamber’s role andpurpose?" The easy answer is that we are the Business Advocatefor our members in the community and in Sacramento andWashington, DC. But that isn’t a complete answer. We alsoneed to be making sure our businesses also keep in touch withour legislators, and we need to inform them of how the votes ofour legislators impact their businesses. It has to be a two waysystem, with our input going to the legislators, and the localcommunity being informed of how the legislators reacted totheir input.

In California over 67.4% of small business owners say they arefacing limited growth opportunities, because of the difficultiesof getting financing. Over 55% say unless they can getfinancing they can't grow their companies, so many have to turnto family or friends for funding to survive. In California thetight credit market is having a profound effect on all sizes ofbusinesses. The regulatory burdens that our businesses face inthis state has caused many to move out. Transportation issueshave affected the way business can move product. Energy costsneed to come down and we need to improve alignment of thestate's workforce needs and education. These are amongCalChambers Job Creators that are being presented to thelegislature. We need to fight against frivolous litigation and topromote private and public partnerships for transportation aswell as other needs.

Hard times bring opportunity. It is the time to pull together andwork to strengthen the economic stability of our communitiesand state. It is time for a call for action. Get out and vote! Votewith a business minded approach! Call and advise your friends,family and colleagues to do the same. This election will shapehow our nation and community face a very challenging future.

Sharon SilvaPresident/CEO

We are moving in the right direction

BUSINESS NEWS « JUNE 2012 PAGE 5

Hard Times Bring Opportunity!

From the President/CEOWelcome

Of The Board - Paul PorterChairmanThings Starting To Heat Up in Turlock!

Page 6: Summer 2012 Business News

PAGE 6 BUSINESS NEWS « JUNE 2012

Mike Lynch (Past Chair)Mike Lynch Consulting

Paul Porter (Chair)Winton-Ireland, Strom & Green

Marty Jakosa (Past Chair)Foster Farms

Larry SmithSmith Chevrolet Cadillac

Mike AllenAllen Mortuary

Dean DoerksenCentral Ag Products

Yubert Envia Foster Farms

Steve Gemperle (Treasurer)Gemperle Enterprises

Julio HallackDBA Concrete by Hallack

Chris KiriakouCornerstone Consulting

Lazar PiroPiro Trading International

Susan QuigleyRabobank

Mike Romeo (Chair Elect)Romeo Medical Clinic

Steve TalkingtonLancaster Painting

Andrew WigglesworthMedicAlert Foundation

Bill Bassitt(Ex-officio Member)

Alliance

2012 Chamber Board of Directors

Chamber ChampionsAllen Mortuary • Emanuel Medical Center

F&M Bank • Gemperle EnterprisesJKB Energy • Lancaster Painting

MedicAlert FoundationOak Valley Community Bank

Rabobank • Smith Chevrolet Cadillac, Inc.Turlock Journal

Turlock Scavenger/Turlock RecyclingWinton-Ireland, Strom & Green Insurance Agency

Upcoming Events:Wahl, Willemese & Wilson

LLP Mixer ~ June 19th

Holiday Inn Mixer ~ July 17th

MedicAlert Foundation

August 21st

Ameriprise Financial

September 18th

Sharon Silva President / CEO

Ashour BadalCSU Stanislaus

Dianna BettencourtOak Valley

Community Bank

Steven PadillaKozy Shack

Sharon SilvaCEO/President

IOM, Institute forOrganization Management,

University of ArizonaBachelor ArtsOrganizationalCommunication

Tasha Van SantenDirector Communications/

DevelopmentBachelor Science -

BusinessCSU Stanislaus

Sharon BerryAdministrative

AssistantBachelor Science -

EducationPacific University

Desa CammackDirector Turlock Convention

and Visitors BureauWestern Association ofChamber ExecutivesAcademy Graduate

Patricia BaronOperations

Bachelor ScienceBusiness/Accounting

MPA In ProgressCSU Stanislaus

Kassi FortadoMembership /

CVB AssistantMerced College

2012 TURLOCKCHAMBER

OFCOMMERCE

STAFF

Page 7: Summer 2012 Business News

BUSINESS NEWS « JUNE 2012 PAGE 7

Blue Diamond Growers, a cooperative owned by more thanhalf of California’s almond growers, officially launchedPhase 1 of its new manufacturing plant in Turlock today at

an onsite groundbreaking ceremony. The 88-acre property islocated at N. Washington and Fulkerth Roads.

The first phase of the project is scheduled to be completed inMay 2013. It will provide about 200,000 square feet of buildingspace for manufacturing and delivering new almond productsworldwide. The three-phased project will eventually yield a totalof about 500,000 square feet of building space over the next 15years.

“There’s no doubt that Blue Diamond will bring numerousbenefits to the Turlock community, including jobs,” said MarkJansen, Blue Diamond President and CEO. “The number of jobswill not be known until we have made our investment decisionsabout new technologies. We will announce job openings in fall2012.”

Blue Diamond made its last major investment in 1968 in itsSalida Plant. At that time, California was producing 140 millionpounds of almonds. “Compare that to this year’s crop of about 2billion pounds and you can better understand why we are makinga major investment to expand our business,” explained Jansen.

“We have kept pace with upgrading new technologies in ourplant operations over the last 44 years, but today we arecelebrating the largest single investment in the 102 years of thealmond industry’s existence. In fact, this year we will alsocomplete a state of the art Research and Development complex atour headquarters in Sacramento!”

Jansen added, “In our continuing efforts to deliver the benefits ofalmonds to the world, this project will allow us to expand ourvalue-added product lines. It will seal our promise to be THEglobal almond ingredients and consumer retail market leader sothat we can continue to create the healthiest almond products inthe world!”

Blue Diamond Chairman Clinton Shick of McFarland added,“This celebration is really a continuation of the incremental stepswe’ve taken in past years and those we will take over the next 100years to continue to be the world almond leader. I would like tothank our growers for entrusting their almonds to us to make thisinvestment. It will reap the largest incremental returns to almondgrowers who seek a secure future in the almond business.”

Blue Diamond Breaks Ground for Turlock Plant Construction

From left, Blue Diamond Manager of Plant Operations BruceLish, President and CEO Mark Jansen, Chairman of the BoardClinton Shick and Turlock Plant Manager Ulli Thiersch.

Page 8: Summer 2012 Business News

PAGE 8 BUSINESS NEWS « JUNE 2012

Local Economy On The Mend?Debating the pace and nature of the U..S recovery has become

a favorite pastime for news pundits. In the wake of theGreat Recession, will we slip into another slowdown? What

industries will drive future growth? How will new rules andregulations affect business? When will economic growth translateinto significant payroll job creation? Similar issues are in play forStanislaus County and its communities.

While the Alliance does not produce an economic forecast, we domonitor the opinions of professional economists regarding ourregion’s outlook. “Gradual recovery” seems to be the consensus ofboth the CSU Stanislaus Business Forecast Report and the Universityof the Pacific Business Forecasting Center. The latter source calls forthe Stanislaus County unemployment rate to approach 13% in 2015,down from nearly 17% in 2011.

For eight years, the Alliance has surveyed the local businesscommunity on their expectations for the coming year. The resultsfor 2012 were encouraging. As the accompanying charts depict,over half of respondents expect higher revenues for their business thisyear, a vast improvement from the lows of 2009. Hiring and profitoutlooks show roughly similar gains, although the economy stillranks ahead of regulations as an issue impacting profitability andgrowth.

Like it or not, many economic trends in the Bay Area spill over theAltamont Pass and into the Central Valley. In the past decade, risinghome prices in the coastal region eventually prompted an exodus tothe Valley, spurring on the local housing boom and subsequent bust.

Bust may be an understatement; from a peak of nearly 4,500 homebuilding permits in 2005, Stanislaus barely exceeded 100 housingstarts last year. As the rebounding, technology-driven South Bay jobmarket spreads labor demand into the neighboring East Bay,opportunities for the many thousands of Stanislaus-to-Bay commuterswill expand. An optimist with a longer point of view might evenmake the case that a tightening Bay Area housing market will onceagain underpin demand for Central Valley homes, admittedly on amulti-year lag basis. Recent job data points to a bottoming inconstruction sector employment.

Location near the Bay Area is also a major factor propelling a verypromising job creator for Stanislaus County – logistics. Recent wordthat Amazon will be locating a major fulfillment center in Patterson,with press reports of around 1,000 year-round and perhaps 1,500seasonal jobs to be added, is a tremendous positive as we look into2013. Amazon’s decision builds upon other welcome news in thesector in the past several years, including the opening of W.W.Grainger’s 820,000 square foot regional distribution center in 2010and Affinia’s 390,000 square foot facility in 2011. These wins shouldprovide some momentum for the proposed West Park LogisticsCenter. In that regard, June is a pivotal month, as the StanislausCounty Board of Supervisors will review a status update from theproject’s developer.

Agriculture and the food processing industry are proven stalwarts ofthe local economy. While the domestic manufacturing industry shedjobs at a torrid pace in recent years, the old mantra, “people alwaysneed to eat” was borne out in Stanislaus County. The Business

By Randy Svedbeck,

Page 9: Summer 2012 Business News

BUSINESS NEWS « JUNE 2012 PAGE 9

Journal and others ranked the area as number one in manufacturingjob creation, though primarily because of massive employmentlosses elsewhere in the country. Recent news in the sector has beenmostly positive, aside from developments at Patterson Vegetable.Blue Diamond’s major expansion into Turlock and word that DelMonte will be consolidating some production work from south inthe Valley into Modesto are both encouraging signs.

Despite a backdrop replete with many hopeful signs, manyuncertainties remain. It goes without saying that this area is notimmune to risks in the macro economy – think Europeancontagion, fuel shocks, the federal budget, etc. In an era ofbudgetary shortfalls, spending by local government subject topressures roiling down from the state level. Secure employment injob titles such as police officer and teacher are now a distantmemory. Recent improvements in local sales tax collections are atleast a hopeful harbinger of better times somewhere down the road. Uncertainty regarding tax and regulatory policy remain as cloudshanging over the business community. Consider Assembly Bill32. It was passed way back in 2006 as California’s response to thegreenhouse gas issue, with the goal of reducing emissions to 1990levels by the year 2020. Time goes by, and what seemed like adistant issue is now looming larger on the horizon. Much of localindustry, including the area’s core food processing sector, is in thepath of ratcheting costs under a cap-and-trade program. Statewide,fuel refiners and other industries will also bare much the brunt ofthe program. In all likelihood, such costs will be passed on toconsumers. On the jobs front and in an era of globalization, thesehigher costs will not enhance the competitiveness of ourmanufacturing sector.

All in all, there are encouraging signs that local economy isstarting to mend. From improved business expectations to recentsiting decisions by major employers, positive signs are emerging.Given the economic tribulations of recent years, “gradual recovery”sounds pretty good.

Alliance Business Resource Center Manager

Page 10: Summer 2012 Business News

PAGE 10 BUSINESS NEWS « JUNE 2012

Every fall, Emanuel Medical Center announces a theme forits Legacy Circle annual giving campaign, focusing on thefuture benefits the program will bring.

Not this year.

Instead, Emanuel will focus on the results of the first two years ofa five-year fund drive that is advancing cardiac services inTurlock. Emanuel wants the community to know that thisprogram isn’t just going to save lives in the future. It’s saving livesright now.

Saving lives is what keeps Turlock Chamber of Commerce CEOSharon Silva active in the campaign.

“I’ve been involved with Emanuel’s Legacy Circle campaign for anumber of years,” Silva said. “I thought I was ready to take abreak from volunteering this year, but this campaign – thisservice – is just too critical for Turlock.”

So as this year’s fund drive kicks off in late August, Silva willcontinue to do all she can to help Emanuel reach its $1 millionfundraising goal.

“Legacy Circle has done so much good for Turlock,” she said.“The birthing center and emergency department were LegacyCircle projects and provide real benefits to our community. And

cardiac care is even more critical. If you’re having a heart attack,there’s no time to waste driving to Modesto. We needed a greatprogram here and Emanuel delivered.”

Now Silva wants the community to do its part.

“Even if you’ve never given to the hospital before, now’s the time,”she said. “The donation you make today could save your life or thelife of someone you love, it really could.”

To support Emanuel Medical Center’s cardiac care program, callSharon Silva at 985-2759.

Sharon Silva Has a Heart For Emanuel Medical Center’s Cardiac Care Program

Page 11: Summer 2012 Business News

BUSINESS NEWS « JUNE 2012 PAGE 11

Turlock, CA, June 1, 2012 – Hall Equities Group ispleased to announce three new, national retailers arecoming to Turlock at Monte Vista Crossings, further

boosting the shopping and dining experience for the 35,000residents of this growing Trade Area.

ULTA Beauty Grand Opening July 2012Tenant improvement construction inside a new 10,000 squarefoot retail shell at Monte Vista Crossings is currently underwayfor ULTA Beauty & Cosmetics. ULTA focuses on providingaffordable indulgence to its customers by combining the productbreadth, value and convenience of a beauty superstore with thedistinctive environment and experience of a specialty retailer.

Old Navy Grand Opening –New Store DesignOld Navy is currentlyconstructing its latest store designat Monte Vista Crossings in a15,000 SF building onceoccupied by Borders. Across thecountry, Old Navy stores arebeing redesigned, retooled andrejuvenated. This new store willincorporate this latest, fundesign. Construction will becompleted late-Summer 2012.

Olive Garden Italian RestaurantOpening September 2012Site construction began in Mayfor a new, +/- 7,500 SF OliveGarden Italian Restaurant atMonte Vista Crossings. Thishighly successful familyrestaurant focuses on providingevery guest with a genuine Italiandining experience.

Ideally situated on Highway 99at Monte Vista Avenue, Monte

Vista Crossings is already the Central Valley’s largest open airshopping center with more than 1,000,000 square feet of anchor,shop and restaurant space on 160 acres. The center provides adynamic shopping experience for customers frequenting retailgiants like Target, Home Depot, Kohl’s, Safeway, Lowes HomeImprovement, Bed Bath & Beyond, TJ Maxx, Ross, Pet Extreme,Starbucks, McDonalds and In-N-Out Burger.

Hall Equities Group also developed a 78-room Holiday InnExpress & Suites and an 81-room Fairfield Inn & Suites onsite.So far, all but 30 acres have been developed by Hall EquitiesGroup. The developer is working with a number of name brandretailers on the remaining acreage in this super power center.

National Retailers Move to . . .

By Brandon Farrell,

Hall Equities Group Director of Leasing

Turlock’s Monte Vista Crossings

Page 12: Summer 2012 Business News

PAGE 12 BUSINESS NEWS « JUNE 2012

Staff has seen an increase in inquiries, approvals andconstruction in the last year. Several new businesses aremaking their home in Turlock while some existing

businesses are expanding. Largest among the new businesses isBlue Diamond. The huge international corporation haspurchased 88 acres in the Turlock Regional Industrial Park andis under construction with Phase 1 to total 221,000 square feet.Phases 2 and 3 will add 187,000 and 44,000 respectively for atotal of approximately 452,000 square feet.

Also under construction in the Turlock Regional Industrial Parkand soon to be completed is a 37,000 square foot facility forAlpha Poultry, an ag related company. Certified Laboratories, aspecialist in food and ag testing is consolidating and relocatingto Turlock. The New York based company is making extensiveimprovements to an 11,200 square foot building located onLiberty Square Parkway. Another project recently completed isa 99,000 square foot addition to the US Cold Storage facilityon Fransil Road.

On the retail side, several projects on Geer Road are in variousstages of development. A new discount grocer has beenapproved for the Mervyn’s building, a clothing store is lookingto locate at the former Long’s Drug site and an auto parts storehas made application to construct a new almost 7,000 square

foot store on Geer Road. Currently in construction or withbuilding plans under review for projects in the Monte VistaCrossings area are an 8,000 square foot Olive GardenRestaurant, Old Navy clothing store, Ulta Cosmetics store, alsothere are several companies looking to potentially locate withinexisting approved shopping centers near Countryside Drive. In addition, the vacant Turlock Auto Plaza site at Fulkerth andAuto Mall Drive has been purchased and new owners anticipatea summer opening offering Chrysler, Dodge, Jeep and Ram autolines.

Groundbreaking took place on the first phase of the Avena Bellaproject, a 141 unit much needed low-income apartment projectfor designed families. The project is located on LinwoodAvenue, the first 80 units will be completed by next summer.The Turlock Redevelopment Agency contributed $4 million tothe project.

INCREASED ACTIVITY AND NEW BUSINESSES on the HorizonBy Heidi McNally-Dial, City of Turlock Economic Development/RDA

“Several new businesses aremaking their home in Turlockwhile some existing businesses are expanding.”

Turlock has a unique opportunity for budding entrepreneursto test their ideas at a very low cost; a Certified Farmer’sMarket every Friday from 8 a.m. to 1 p.m. In addition to

farm fresh produce, the Turlock Farmer’s Market allows a certainnumber of small entrepreneurs to display their wares, and put theirproducts to a market test.

I’ve had the good fortune to work with several of them here at theAlliance Small Business Development Center of Turlock. Barbecuesandwiches, cupcakes, organic lemonade and candy apples are justof few of the entrepreneurial product ideas I’ve consulted with forthe SBDC that have used the Farmers Market in Turlock as aproving ground as it were, for their business model, gatheringcustomer data, product pricing information, and an overview ofprojected success, or not. This is a wise choice before investing asubstantial amount in a brick & mortar storefront or mobilefacility. The Turlock Farmer’s Market is a great test market forentrepreneurial ideas, with a minimal investment, and minimalpressure on the new business person, having only to produce anddisplay once a week.

The Alliance SBDC invites you to come see us with your conceptfor a business or product and we’ll help develop market and testmarket the idea, with one option being a vendor at the TurlockCertified Farmer’s Market. SBDC consultant services are availableat no charge and include business planning, risk management,marketing and financing. Call 567-4910 for an appointment, orregister online at www.alliancesbdc.com.

Entrepreneurs In Turlock Have TheOpportunity To Test Market Their IdeasBy Al Seaton, Alliance Small Business Development CenterTurlock Entrepreneur Center

Page 13: Summer 2012 Business News

BUSINESS NEWS « JUNE 2012 PAGE 13

The second quarter of 2012 had little in the way ofcontroversy among Council members with the exceptionof one item, the 2012/13 budget. Another year of budget

woes faces the Council with a potential $4.4 million deficit.The prior budget contained City employee concessions thathelped the City through a tough time. Those concessions aredue to expire in October and with the loss of the

Redevelopment Agency funding the deficit is a little over 20% ofthe entire budget for general and non-general fund uses. MajorCouncil items and votes are as follows;

MEETING COUNCIL AGENDA ITEM

2012/13 ANOTHER YEAR OF BUDGET WOES

Am

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Bill

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Mar

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John

Laz

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By Chris Kiriakou

Following is a brief summary of each of the 2012 business related items.• Housing Element – Modification of the General Plan Housing Element to provide for affordable and decent housing within a

community. The modified Housing Element provides for Extremely Low, Very Low and Low income households by requiring thatAffordable Housing projects of 10, units or greater have 10% for Extremely Low income households, by identifying potential farm workerhousing sites suitable for development, assisting non-profits in the development of those sites, and to meet the requirements for an SB2Emergency Shelter zoning.

• Customer Service Report – As part of the City’s strategic Plan to improve customer service the City hired a firm to interview customers ofthe Development Services Department. Although generally a good finding the report still provided some opportunities for improvement.

• Redevelopment Successor Agency – As part of the ongoing battle over dwindling property tax revenues the Governor and the legislatureapproved legislation to dissolve Redevelopment Agencies (RDAs). A RDA is a vehicle to fund improvements to blighted areas in acommunity and is funded through the increase in property taxes resulting from the redevelopment (the tax increment). Because RDArevenues are not handled through the normal state property tax allocation methods other agencies that rely on property taxes were notgetting their share of the revenues. The State Supreme Court ruled in favor of the State. By implementing a Successor Agency the Citycan continue the existing redevelopment projects within the City but no more.

• Building Codes – Board of Appeals – Approve an update to the Building Codes including an Appeals Board in Chapter 8-1, Article 3.• Successor Agency – A continuation of the transition from Turlock RDA to a Successor Redevelopment Agency. (see #3 above) Also

establish rules and regulation for the Successor Agency. The Agency will administer the existing RDA projects.• Rehab of Golden State and W. Main – Awarded a $985,484 contract to rehab the two major streets with more than half coming from the

Federal Regional Surface Transportation Program.• Towing Fee Schedule – Increase Towing Fee to reflect higher costs of towing. Fees had not been adjusted since February 2009.• Measure T - Currently the Stanislaus County library is supported by a 1/8th cent tax which expires at the end of this year. This Measure

would extend it for five more years.• Reduced the Arts Commission membership from 25 to 7 with 2 alternates to improve action.• Assembly Constitutional Amendment 23 would reduce the required 2/3rds affirmative vote to 55% for local transportation related taxes.• The $70,000 Community Development Block Grants provide funding to six local non-profits that provide social services to those in

need.• Approved an Ordinance that extends recycling to business refuse collection. Blue can rental at $7.65/mo.• Approved the 2012/13 approximately $30M City budget containing a $4M deficit with the short fall coming out of City reserves. The

future deficit is somewhat driven by the employee concessions due to expire in October but health care and pension cost are also drivers.Staff hopes to resolve at least part of the deficit over the coming months. Bublak was opposed to the large deficit.

The City’s support of additional taxes is one way to help balance the budget. However, that has to be weighed against the impact on thelocal businesses that support the City, especially at a time when the future business climate is so uncertain. The budget issue will be achallenge for the Council including renegotiation of City’s labor contracts. If the recent San Diego, San Jose, and the Wisconsin recallelections are any indicator of public sentiment regarding public employee union pay and benefits the Council and City Manager may be ableto solve this one.

1 1/10/12 Housing Element Y Y Y Y Y2 1/10/12 Customer Service Report Y Y Y Y Y3 1/10/12 Redevelopment Successor Agency Y Y Y Y Y4 1/24/12 Building Code Standards – Board of Appeals Y Y Y Y Y5 2/14/12 Approval of City of Turlock as Successor Agency Y Y Y Y Y6 2/14/12 Award a Contract for the Rehabilitation of

Golden State Blvd. and W. Main St. Y Y Y Y Y2/14/12 Appointment of Rob Jackson as Police Chief Y Y Y Y Y

7 2/24/12 Towing Fee Schedule Y Y Y Y Y8 3/13/12 Vote to Support Measure T – 1/8th cent Library Tax Y Y Y Y Y9 4/24/12 Reduce Arts Commission Membership to 7 members Y Y Y Y Y10 4/24/12 Support ACA23 – Change vote to 55% for certain tax Y Y Y Y Y11 5/18/12 Approve $70,000 grant funding for 6 Non-Profits Y Y Y Y Y12 5/22/12 Approve ordinance providing recycling to businesses Y Y Y Y Y13 5/22/12 Adopt General Fund and Non-General Fund Budgets N Y Y Y Y

Page 14: Summer 2012 Business News

PAGE 14 BUSINESS NEWS « JUNE 2012

Communities looking for an edge in drawing businessesto their area, as well as retaining the ones already there,realize that having broadband technology services

available in their community is an important factor forachieving that success.

In Turlock, Charter Business, a division of CharterCommunications, provides those key services to areabusinesses. Charter Business Internet delivers blazing-fastspeeds that fuel business productivity and reduce costs. Turlockbusinesses can select plans that offer download speeds rangingfrom 20Mbps to 100Mbps and upload speeds up to 5Mbps.With increased speeds, businesses can more efficiently run

billing systems and credit card processing. Employees also gainfaster access to data and more applications with hosted, cloud-based services. Data networking, business telephone, video andmusic entertainment services are also available over Charter’sstate-of-the-art, fiber-based network.

Charter Business gives Turlock businesses an edge in reachinglocal or global markets, and offers its customers moreconvenience and cost savings. These are business services thatmake a difference in today’s competitive business world. Charter Business is dedicated to providing solutions that meetthe unique needs of Turlock’s business community, helping tokeep Turlock a great place to live and work.

The June election is over. There were no great surprises.Voter turnout was miserable. Few of the major issuesfacing our community, our state and our country were

addressed or resolved.

November will be a different story.

Many more will vote. We willchoose a President, congressionalrepresentatives, state legislators,and city council representatives.There will be several importantand consequential state initiativemeasures on the ballot, as well.

As we get ready to engage in thispivotal election, we shouldremember an important point.Political consultants andcampaigns tend to “dumb down”the discussion to an exchange ofsound bites that often have littlerelation to reality. It is in theinterest of campaigns to simplifycomplex issues to slogans andphrases. Unfortunately, there is no umpire that the public canrely on to inform us, to cut through the rhetoric; no one toisolate where a candidate really stands on issues or what he orshe will actually do if elected. We have to sort that outourselves.

Beware that what is said in a campaign does not have to beaccurate or truthful. This is especially true for super politicalaction committees, or super PACs. Following a Supreme Courtdecision, super PACs can now receive unlimited contributionswithout any timely disclosure of who is providing the money.

When a committee called something like “Americans for Fairnessand Truth” starts running ads for or against a candidate ormeasure, take the time to find out who is actually financing thecommittee. You should not be surprised to learn that the peoplesupplying the money are usually a few individuals who have awell-defined special interest in the election outcome. Why superPACs instead of direct contributions to candidates? Both state

and federal law limitcontributions from individuals tocandidates to a few thousanddollars, but any individual cancontribute as much as they wantto the super PACs. And they do;they contribute millions ofdollars. These super PACs can beleft or right in orientation. Whatthey have in common however isthat they don’t want you to knowwhich way they lean, or who gavethem the money. Make sure youdon’t let them fool you.

A good rule of thumb is todisregard any message from acommittee that refuses to disclosewho is supplying the funding.

While the law may not require such disclosure, it doesn’t prohibitit. So make a call, and ask who is specifically supplying themoney. If they won’t tell you, then cross that group off the listand disregard any of their recommendations or messages.

Elections that occur in times of economic and social uncertaintytake on a harder edge. Don’t let the special interests do yourthinking for you. Common sense should be the toughest test anycandidate or measure must meet to win our votes. Trust your owninformed conclusions rather than political consultants or acandidate and his speechwriter’s sound bites.

GET READY! HERE COMES NOVEMBER!

HELPS TURLOCK BUSINESSES STAYCOMPETITIVE

“Beware that what is said in acampaign does not have to be

accurate or truthful.”

By John R, Miller, Charter Communications

By Mike Lynch

Page 15: Summer 2012 Business News

BUSINESS NEWS « JUNE 2012 PAGE 15

Recently, our Turlock Chamber of Commerce CEO Sharon Silvasent me a copy of CalChamber’s listing of 2012 “Job Creator” and“Job Killer” bills currently being considered in the legislature.

CalChamber reviews the activities of the California legislature toidentify and determine the impact on business of their actions. As I wasreviewing the list I noted something that could be a glimmer of hope forour sputtering Central Valley economy. Let me share some of thehighlights from that list;

AB 890(Olsen; R-Modesto) Reduces Regulator Burdens

AB 1095 (B. Berryhill; R-Ceres) Reduces Regulatory Burden

AB 2091 (B. Berryhill; R-Ceres) Increases Regulatory Certainty

AB 2577 (Galgiani; D-Livingston) Alleviates Unnecessary Delays

SB 971 (Cannella; R-Ceres) Reduces Energy Costs

No local legislator sponsored a job killer bill. Most of the job killer billscame from elected representatives of large urban centers.

Stanislaus County’s April unemployment rate was 16.4% as reported bythe Bureau of Labor Statistics. With such a high number it’s gratifyingto see that we have elected representatives that have their eye on the ball,that being job creation. Let’s encourage them to push these billsthrough the legislature.

By Chris Kiriakou

Our LegislatorsJob Creators!

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Ambassadors

New MembersA & A PortablesAntoine Varni - DDSBackyard Sports AcademyBlue Diamond Growers, Inc.Brite Electric, Inc.Cal Coating Asphalt, Inc.California Women for AgicultureCar Audio WarehouseClear Channel Media & EntertainmentFusion StudiosGraffiti Classic Custom ShopHealth Plan of San JoaquinHome DepotIndependent Electric Supply

Joseph O. Calderon - Century 21 M & M La Mo CaféLopez Complete Yard CareMayfair Manor CorporationMichael Warda, Professional Law Corp.Scott Davis Auto Sales, Inc.Stafford's Landscape ServicesSunrise Bakery and CaféTanglez Salon & BoutiqueTelcion Communications GroupThe Colston CompanyTurlock Concert AssociationTurlock Direct

Jerry Powell was honorably dischargedfrom the Marine Corps in 1992.Since that time he has been involved

in all aspects of commercial real estateincluding: construction, propertydevelopment and property management.

Working for Buchanan Enterprises, aTurlock-based developer and generalcontractor with a proven track record,Jerry has served as Vice President for the

last 10 years, providing him with the opportunity to work withpartners, consultants, financial institutions, tenants, brokers andmunicipalities in every aspect of a development project. Thisexposure to all aspects of the industry has given him a uniqueperspective, as well as, vast experience in the commercial real estateand development business.

Currently, he is selling and leasing commercial and residential realestate for PMZ and other development projects throughoutNorthern California, including the Ten Pin Fun Center located inTurlock.

He earned his Bachelors of Science in Business Administrationwith a concentration in Finance from California State University,Stanislaus. Currently, he sits on the board for the Turlock SalvationArmy and has been actively involved in the construction anddevelopment of the Turlock Corps Center for the last 16 years.

Jerry is active on several committees at the Turlock Chamber ofCommerce, as well as, participating with the City of TurlockDevelopment Collaborative Advisory Committee.

He enjoys traveling, golf, skiing, weight training and raising his 17year old daughter Mallori.

JERRY POWELL

Joy Biddle has been withCreative Alternatives since1989. She began her tenure

working with the clients in theResidential Care Program as a ChildCare Worker. With hard work,loyalty and determination shequickly moved up the ranks toHouse Manager. In 2000 shebecame Program Director of theMerced County Residential Care

Program and expanded it from three to eight facilities. InApril 2009 the Board of Directors selected Joy as the AssistantExecutive Director, and in 2011 took the reigns as ExecutiveDirector. Joy is a graduate of California State University,Stanislaus and is currently working on her Masters in PublicAdministration. She is determined to continue building astrong foundation for the children placed with CreativeAlternatives and takes great pride in the agencies success.

"I am blessed by all the youth at CreativeAlternatives and strive to make theirexperience with us a positive, nurturing,and loving one.  It is my goal to make thisthe best placement the youth have everexperienced.”

JOY BIDDLE

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Mixers

JESSICA’S HOUSE

WINTON-IRELAND STROM & GREEN

Chamber EventGOLF TOURNAMENT

Ribbon Cuttings

ALPHAPOULTRY

WALMART

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From all indications, it appears that our local real estatemarket is stabilizing and the worst is behind us. That isnot to say that there are not still areas of concern, but

overall there are signs of improvement.

In the past twelve months the foreclosure filings have continuedto drop with April 2012 Notice of Trustee Sales dropping to 29from last year’s level of 67 – a decline of 56.7%. The inventoryof bank owned properties (REO’s) has dropped from 259 to 146(-43.6%) over the same time period. The much talked about“foreclosure tsunami” has yet to materialize and from allindications, the foreclosure waters are still relatively calm. Theseforeclosure declines would be even better news if they were beingdriven by a strong market recovery rather than unprecedentedgovernment intervention into the foreclosure process.

As we enter June, there are 188 active listings in Turlock – thiscompares to 552 homes that were available the same week five(5) years ago. Of the 188 active listings, 127 are identified asshorts sales (68%) and 105 of these have accepted offers that areawaiting bank approval. This leaves only 83 homes that aretruly available or 1.2 months supply based on the currentsales rate. With reduced inventories and limited newconstruction, we are seeing multiple offers on mosttransactions which will lead to improving prices.

2011 median price of existing homes was $153,000 whichwas down 4.4% from the previous year. For the month ofMay 2012, median price has risen to $156,600 or 2.4% over

last year’s level. Further improvement in prices is still behampered by the large percentage of “distressed” sales (short salesor bank owned). Year-to-date sales reflect that 67.2% of all saleswere distressed - 34.8% were bank owned and 33.4% were shortsales. This level of distressed sales has declined from the peak of86.7% in 2008.

The affordability of homes has never been better given that priceshave declined to mid-1990’s levels and mortgage interest rates areat historic lows. For example, a $200,000 30-year mortgage attoday’s rate of 3.625% would have a monthly principal andinterest payment of $912.10. At a 6.0% rate, the monthlypayment increases to $1,199.10 or a difference of $287.00 permonth. At these historic low rates, a buyer will realize an interestsavings of $103,320 over the life of the loan.

Opportunities are still available for both first-time home buyersand investors. With the limited inventory, buyers must bepatient, however must be in a position to move quickly when theperfect home becomes available. It is a great time to buy a home!

Turlock Real Estate – The Worst is Behind Us…By Jim Theis PMZ Real Estate Broker

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RICKY RICARDO PROMOTIONS 6/10/2012 - 6/10/2012, 12:00PM - 10:00PM Email: [email protected] Phone: (209)604-4167Stanislaus County Fairgrounds, 900 N Broadway, TurlockKIDS CLUB ACTIVITY 6/13/2012 - 6/13/2012, 3:30PM - 4:30PM FREE class on Planting Pumpkins & Sunflowers!Email: [email protected] Phone: (209) 632-4214742 East Olive Ave, Turlock http://www.greenerynsy.com SHERIFF'S POSSE RODEO 6/15/2012 - 6/16/2012, 5:00PM - 10:00PM Phone: (209) 768-8420 900 N Broadway, TurlockDELTA AUSTRALIAN SHEPHERD FANCIERS - Dog Show 6/16/2012 - 6/17/2012, 8:00AM - 4:00PM Email: [email protected] Phone: (209)204-7914900 N Broadway, Turlock www.delta-asf.org PLANT YOUR OWN FAIRY GARDEN 6/20/2012 - 6/20/2012, 10:00AM - 12:00PM $25 fee per container RSVP by June 13th Wednesday, June 20th 10:00 a.m.Speaker: Teresa of The GreeneryEmail: [email protected] Phone: (209) 632-4214742 East Olive Ave, Turlock http://www.greenerynsy.com TURLOCK HORSEMEN’S CLUB-JR. RODEO 6/23/2012 - 6/23/2012, 8:00AM - 4:00PM Phone: (209) 537-9961 Arena, 900 N Broadway, TurlockPATRIOTIC PARADE & INDEPENDENCE CELEBRATION 7/4/2012 - 7/4/2012, 10:00 AM – 12:00 PM Broadway, TurlockSTARS & STRIPES 4TH OF JULY RED WHITE & BOOM 7/4/2012 - 7/4/2012, 6:00PM - 12:00AM Gates open at 6 p.m. Fireworks show starts at 9:30 p.m.Phone: 209-668-1333 900 N Broadway, TurlockCOOKING WITH YOUR SUMMER BOUNTY 7/7/2012 - 7/7/2012, 10:00AM - 12:00PM Speaker: The Greenery Staff

CVB Promotes . . . TURLOCK COMMUNITY EVENTS

As the nationwide economic recovery began to take hold inthe first quarter 2012, the San Joaquin Valley continued tolag behind.  In cities such as Modesto and Turlock, sales tax

receipts were on the rise and property tax collections displayed astabilizing pattern. However, in other cities such as Stockton,conditions worsened due to ongoing effects of the housing-relatedcrisis. Overall, however,  gradual signs of the recovery feltnationwide began to appear in the Valley.

In particular, since September of 2011, total employment grew ata yearly average of 0.82%. Although miniscule, for the first timesince the 2007-2009 recessionary period, the total employmentyearly average growth rate climbed back into positive territoryfrom declines of -3.7% and -0.2%, in 2009 and 2010 respectively.The northwest region, along with the U.S. economy, beganregistering lower inflation rates since September of 2011. Theyearly inflation rate fell from 3.2 percent in September, 2011 to2.6 percent by January, 2012. Average sales prices of new single-family houses declined at a much lower pace in the fourth quarterof 2011, displaying early signs of stabilization. A foreclosure reliefprogram recently announced at the federal level is expected tokeep excess inventories down in this region and help stabilizehousing prices. Foreclosure starts for the U.S. West continued todecline rapidly and are projected to exhibit a steeper decline oncethe foreclosure relief program begins to take effect in the Valley.However, the end of the foreclosure settlement reached by banksin early 2012 may temporarily interrupt this decline. Reaching itshighest level in a year, consumer confidence began displayingmore active spending patterns beginning from the first quarter of2012, albeit experiencing a slight slowdown in April. 

With job creation and housing market correction, the currentsentiment of the public in general has now been marginally moreupbeat. However, most jobs are not full time or full pay, contributingto frustration with the job market despite increases in job numbersgenerally above 120,000 per month nationwide. Adding to thissentiment is the lingering jobs deficit of 12 million that will require

Phone: (209) 632-4214 742 East Olive Ave, Turlockhttp://www.greenerynsy.com

PRESERVING YOUR SUMMER HARVEST 7/7/2012 - 7/7/2012, 1:00PM - 3:00PM Speaker: Nancy Weaver, Home Economics teacher Informative seminar. Phone: (209) 632-4214 742 East Olive Ave, Turlockhttp://www.greenerynsy.com STANISLAUS COUNTY FAIR 7/13/2012 - 7/22/2012, see website for timesEmail: [email protected]: 209) 668-1333 900 N Broadway, TurlockHONEY TASTING AND BACKYARD BEE BASICS 7/14/2012 - 7/14/2012, 1:00PM - 2:00PM FREE SeminarSaturday, July 14th 1:00 p.m.Speaker: Ed Zawada of Gerard’z HoneybeesEmail: [email protected] Phone: (209) 632-4214742 East Olive Ave, Turlock http://www.greenerynsy.comSUMMER PRUNING FOR FRUIT TREES 7/14/2012 - 7/14/2012, 10:00AM - 12:00PM Speaker: Jay DeGraff of The GreeneryPhone: (209) 632-4214 742 East Olive Ave, Turlockhttp://www.greenerynsy.com RYAN PROMOTIONS – SUMMER AUTO SWAP MEET 8/19/2012 - 8/19/2012, 7:00AM -4:00PM Email: [email protected] Phone: (209) 356-0436/ (209) 777900 N Broadway, Turlock www.ryanspromotions.com DIANA KRALL 8/21/2012 - 8/21/2012, 7:30PM - 9:00PM Diana Krall has experience in her favor. Born in Nanaimo, Canada, to a musical family --her father is a stride-style pianist and serious record collector -- she grew up absorbingmusic that guided her future growth. Phone: (209) 668-1169 1574 E. Canal Drive,Turlockhttp://turlocktheatre.org

more time to eliminate even at the higher pace of job growth.Previously, job growth occurred only in some sectors. Beginning in2012, job growth appears to be across the board, including very smallgains in the construction sector. One exception is the public sector,where jobs continued to decline particularly in education. However,the federal job growth plan is expected to address this shortfall byallocating support funds for teachers.

An anticipated extension of unemployment benefits and cuts topayroll tax should help further job growth stimulation. Profit ratesappear to be higher in 2012 than the previous year. As such, nation-wide there was positive economic growth for ten quarters in a rowand positive job growth twenty-two months in a row. The majorexception occurred in state and local government-related jobs.

Yearly comparisons of incoming numbers reveal the recovery in theValley is slowly taking hold, including financial and constructionsectors. Most notably, the Valley economy began catching its long-term mean, showing slowly strengthening performance. Manyanalysts agree that we are approaching ever closer to a turning pointin the housing market as builders slowly begin to construct newdwellings. 

Continuing unrest in the Middle East and rising energy costs in thelatter part of the first quarter of 2012 are renewing cost-pushworries, but inflation continued to display a falling pattern. Theaverage rate of the U.S. real GDP growth is expected to varybetween 2.6 and 2.8 percent as new jobs are added at a higher pace.

In all, the region’s forecasts in the interval June 2012 to June 2014point to an economy that is slowly gaining strength. Given the slowrecovery underway, further easing of credit by the Federal Reserve isunlikely to occur. Locally, farm related employment exhibited fastjob growth numbers. As the speed of recovery picks up nationwide,the Valley economy is projected to benefit from this expansionmore so during the latter half of 2012 and extending into the firsthalf of 2013.

Business ForecastBy Gokce Soydemir, PhD CSU Stanislaus Endowed Professor of Business Economics

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How many of you think of Turlock Irrigation District’slow rates for electricity as a strategic competitiveadvantage for our ratepayers? To go even further, could

we say that TID provides an economic stimulus for thecommunities we serve?

The news that both Amazon and Blue Diamond have chosento invest in Patterson and Turlock is exciting for all of us. Newjob creation, construction dollars, and the ripple effect of otheropportunities and jobs in the service sector are huge forprojects of this scale. So we must ask ourselves, why did theychoose to locate here? What did we do right? If we can identifythe reasons they came, we are surely more apt to repeat thesuccess story.

Obviously the reasons are many and diverse. Excellent planningby city and county leaders, proximity to Interstate 5, and abooming agricultural economy are just a few. But since I sit onthe Board of Directors of the Turlock Irrigation District, I willfocus on electric rates as an additional reason. Food processorsare large consumers of electricity. Our long history of lowerrates compared to most of our competition was a significantfactor in site selection. Fiscal prudence and wise long termplanning enable us to act as a powerful jobs creator for ourratepayer owners.

With rates being such an important factor in where businesseschoose to locate, I feel it is imperative that we never stoplooking for ways to keep our rates competitive. Clearly TIDhas an excellent track record of low rates. Locally electedleaders have been looking out for your best interest for 125years as of this month. But be warned: Sacramento is doing itsbest to drive up your rates. We have just begun to pay for thecost of complying with green electricity mandates.Constructing new quick starting power plants to back up theever fluctuating and expensive green power sources, and theinfrastructure to convey this new surging and sagging greenenergy will cost TID hundreds of millions if not billions ofdollars. California Public Utilities Commissioner Mike Floriorecently referred to the situation as a looming “rate bomb”.Add on top the soon to be implemented cap and trade tax ongreenhouse gasses and it is easy to see that our rates are facingsignificant upward pressure.

We have no choice but to comply at the local level with lawspassed in Sacramento. Unfortunately the cost of doing so ispassed on in the form of higher rates. Electricity is acommodity, and large consumers like Amazon and BlueDiamond are portable. I am afraid that California will meet itsgreenhouse gas emission mandate not by reducing emissions,but by driving the job producers out of the state. But there isstill time for meaningful reform in these new mandates. Joinwith TID in thanking our elected representatives inSacramento who are carefully considering the cost ofimplementing the laws and regulations they are putting inplace. Reach out to other legislators, and ask them to do thesame. We all want a greener, cleaner state. But at a time whenjobs are so dearly needed, shouldn’t we phase the changes in ata much slower pace? Low electric rates mean more jobs for ourcommunity.

By Michael Frantz, President of the TID Board of Directors

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