California Business Minute™

NOTE: The California Business Minute was launched in July 07.  Postings for Developments began in 
September 2007. 

Jan 2012

FORD TO OPEN R&D CENTER IN SILICON VALLEY

The Ford Motor Company announced that it will ope its first ever
dedicated R&D center on the west coast in the Silicon Valley.
Ford's vision is to build a moible computer on wheels.  The goal
is to for the new facility to crea an innovation network connecting
ford's Advance Design Studio in Irvine.

CATEPILLAR ANNOUNCES MAJOR DEVELOPMENT

Catepillar Logisitics Inc, a wholly owned subsidiary of Catepillar
announced it is purchasing 46 acres of land with the Tejon Ranch
Commerce Center located at the junction of I-5 and Hiway 99 to
construct a 400,000 sq.ft. parts distribution facility.

FACEBOOK ANNOUNCES RELOCATION OF HQ
Acquisition of Building and Land in Menlo Park

After several months, Facebook officials finally announced the
relocation of their corporate headquarters from Palo Alto to a former
Sun MicroSystems facility in Menlo Park.  The acquisition also
includes 21 acres for future development.  Facebook follows a recent
announcement by Apple to also stay in the Silicon Valley.

         APPLE BUYS 98 ACRES IN CUPERTINO
           Steve Jobs:  “Stay in Area That We Like Best”

Apple has acquired 98 acres in Cupertino off of Interstate 280 that has
been vacated by Hewlett Packard.  In his remarks, Steve Jobs said he
had looked at cheaper land in other places when considering where to
locate Apple's second campus. "But after looking at a lot of things, we
found something in Cupertino that was a possibility," Jobs said. "It was
more expensive, a lot more expensive than we could get elsewhere,
but it was something where we could stay in the area that we like the
best," said Jobs. Quoted in the San Jose Mercury News, Cupertino’s
Mayor Kris Wang said, "We’re very proud to have Apple's headquarters
in our city. It's not just a company. It's the company."

 
     A BRIDGE TO SOMEWHERE
    Port of Long Beach Starts $1Billion Project

The Port of Long Beach has begun a nearly $1 billion project to replace the aging Gerald
Desmond Bridge to the Port.  Nearly 50 of all imports to the U.S. come across the bridge.
The new span will be higher to accommodate the newest, most efficient cargo ships and
wider to handle the cars and trucks that travel the bridge each day. $500 million will come
from state highway transportation funds while federal sources are expected to contribute
about $300 million. The Port of Long Beach has pledged $114 million, and Los Angeles
County Metro is providing $28 million. The five-year construction project is expected to
generate 4,000 jobs a year and more than $2 billion in economic activity, according to the
Los Angeles County Economic Development Corporation.

For the Week of 02-21-10

Deep and open pockets…The San Francisco Museum of Modern Art (SFMOMA)
launched an international call last week to architects to submit their plans for the
design of a $480 million expansion project, one that would triple the building’s current
gallery and public space.

As the LA Times' critic Christopher Knight puts it: "'Great Recession'? What 'Great
Recession'?" He's commenting on the news that the San Francisco Museum of Modern
Art has announced that it has raised $250 million in just six months, largely to
help expand their space to make way for the massive Donald Fisher Collection, which
you'll remember they were able to hold on to after the Gap founder's sudden,
unexpected passing last year. Kenneth Baker at the San Francisco Chronicle reports
that there haven't been any designs yet for the new extension, but now that the
money has poured in, the museum is planning to add roughly an additional 100,000
square feet to its current facility, making it one of the largest modern art museums
in the country, larger than the MoMA in New York. The big story of all of this,
however, is this: The $250 million raised thus far comes from what museum director
Neal Benezra called "core members of the board" and is intended to challenge other
affluent friends of the museum to pitch in. The museum will not divulge individual
contributions, but its board includes luminaries of business and philanthropy such
as Charles Schwab, Mimi L. Haas, Helen Hilton Raiser, Paul Sack and Roselyne Swig.
To which Christopher Knight responds, "Those pockets are not merely deep, they are
also open. Good for them."

San Luis Obispo continues to see a variety of
development rojects in its community.  The
issue of quality over quantity of development
projects to retain the charming size and scale
of the community is primary to its goals.

An example of this type of project is the current
planning of the Garden Street Terraces being
developed by WestPac Investments. The project
includes a hotel, residences and retail space
including the addition of a 14,300-square-foot
neighborhood market. Under revised proposal,
Garden Street Terraces has increased in total
square footage. The amount of development visible
above ground will be less than what had been
originally proposed. Two levels of underground
parking are now proposed instead of one.
One would feature metered public parking and
a ‘travelator’ for grocery carts down to public
parking; the other would be for the hotel and
residences. The project calls for replacing all
62 public metered parking spaces that would
be lost at ground level. City officials have illustrated
Westpac’s sensitivity to the design, specifically
to historic preservation.

Channel Islands Harbor in Ventura County is planning for a $150
million make over of its Fisherman’s Wharf.  In June 2007, the
county granted EMC development a five-year lease with an option to
extend up to 65 years for the revitalization of the 11.4 acre parcel on
the harbor’s east side. The once a bustling destination for locals and
visitors alike, Fisherman’s Wharf has been in decline for several years
with vacant storefronts, dilapidated buildings and crumbling sidewalks.

But, for the  last several months, developer Ed Czuker of EMC
Development, owner of the Fisherman’s Wharf complex and lessee of
the land on which it sits, and his design team have shared preliminary
design concepts with the public. Sixteen meetings have been held
with local residents as well as other organizations and individual stakeholders.

Plans for the complete reconstruction of the gateway property to Channel Islands Harbor,
Fisherman’s Wharf, were unveiled at the regular session of the Ventura County Board of
Supervisors meeting, Tuesday, March 25.

The current plan calls for a 143,000-square-foot pedestrian-oriented village that would
include restaurants, shops, live/work spaces, open air galleries, 800 apartment units,
and subterranean parking. The cost for the development is expected to reach $150 million.
The next steps for the project will be to complete a habitat study, a traffic study, analyze
the view corridors and a  Environment Impact Review (EIR), then go back to the Ventura
County Board of Supervisors for approval, and then go to the California Coastal Commission
for approval, a process that could take up to two years.

In yet another project, linking the Beach with downtown Ventura has been on the minds of
public officials at the city of Ventura for years, but since updating the downtown specific
Plan, the City Council has begin the process in earnest. The concept is to create a land
bridge over the freeway creating an unobstructed corridor between downtown and the beach.
Three initial feasibility options have been identified include creating a 0.6-acre, 2.5-acre and
a 14-acre cap over Highway 101 and in concert with these options are the various ways in
which the new acreage could be used to enhance the city’s “environment, urban fabric and
economy. A team of consultants from Portland, Oregon based Fregonese Associates and
Kimley-Horn Associates to help plan the massive endeavor. The scope of the consultants’
initial efforts, valued at about $228,000, include determining whether the project is physically
possible, how much land could be created and how much it would cost.

The projects first, exploratory phase is scheduled for completion at the end of June. At that
point, the city will bring its findings to the city council and recommend a series of actions that
could be taken next.

For the Week of 05-18-08

NEW OWNER OF NBC STUDIOS PLANS EXPANSION
The new owners of NBC Studios in Burbank unveiled plans for $750 million in
new development improvements to the renowned site where entertainers and
newscasters have broadcast since the 1950s. The new owner is M. David
Paul & Associates, a Santa Monica-based developer and landlord that owns
more than half of the office space in Burbank and now holds title to NBC
Studios as well.

The company acquired the studio in two separate purchases, landing the bulk of it
late last year after NBC announced it would move its operations to a nearby location
in Los Angeles across the street from Universal Studios. Until then, NBC is leasing
its space on the Burbank lot. The network hopes that the first of its new facilities will
be ready by 2012. But NBC expects parts of its operations to remain well into the next
decade.

Meanwhile, under construction is the first of four 14-story office towers to be built. The
complex, to be renamed the Pointe, will be upgraded and operated as an independent
studio with industry tenants making movies and television shows. The most noticeable
change will be the towers and the emphasis on office space. Leading the rush for offices
are entertainment companies that have found they need more and more employees to
bring movies, television shows and other products to market.

The City Council of the city of Los Angeles rejected further review of annexation of the
controversial mega-development, Las Lomas located in north Los Angeles County. 
Neither LA County officials, nor those from Newhall or Santa Clarita were in support of
the project.  The developer in an effort to get the project built attempted to have the city
of Los Angeles examine the opportunity to annex the project into the city given its close
proximity. However, the City Council rejected further review of the project.

The proposed Las Lomas development involved the construction of over 5,500 homes and
nearly 2 million square feet of commercial and office space on 550 acres. The proposed
project is located on the north side of the intersection of Interstate 5 and State Route 14.

For further information on the project see www.santa-clarita.com.  And for updated information
on the status of major developments in the county see Developments.

03-16-08

             Work Begins on $850 Million 'Avalon at 
        South Bay' Infill Development in Carson

LNR Property Corp. and Hopkins Real Estate Group have
started work on the Avalon at South Bay project.

The city of Carson City Council approved a Development
Agreement for the Avalon at South Bay (formerly known
as Carson Marketplace Project) on March 21, 2006.

The Avalon at South Bay is a 168-acre development
project, 157 acres which will be built on a former landfill
site.  The project includes a mixed-use commercial and
residential project consisting of up to two million square
feet of commercial space and 1,550 residential units,
(1,150 for- sale and 400 for rental) and a 300 room hotel.

The project is located north and south of Del Amo Boulevard, west of the I-405
San Diego Freeway, north and east of the Dominquez Channel. A Specific Plan
and Owner Participation Agreement were also approved as part of the project.
The project area consists of 168 acres, 157-acres of which represent a former landfill.

For further information go to http://ci.carson.ca.us/content/department/dev_service/marketplace.asp

     After two days of hearings and testimony, the Santa Paula City Council
    and Planning Commisssion voted to send the plans for a 500 acre development 
    before the voters for approval. 

     The project includes over 1500 single family residences, community center,
    amphitheater, parks, open preserve, fire station and space for future schools
    will be placed on the June ballot for voter decision.

    For more details, see Developments.

02-10-08

Ultra Luxory Project Proposed for Century City

Rendering of Proposed Project

Plans for a $400 million, 45 stories, ultra-luxury condominium
development is being proposed by SunCal Cos. The project is
being designed by renowned Paris architect Jean Nouvel.Plans
call for 177 units, with two to six condominiums per floor.
Elevators would serve every condo directly so there would be
no corridors between units. Each residence is designed as a
home in the sky surrounded by abundance of plants and
flowers but with no visual limits to the spectacular views of the
city, mountains and ocean.

The site, 10000 Santa Monica Blvd. is considered one of the
most desirable locations in Los Angeles.  The vacant lot was
the object of a high-profile bidding war in 2006 when Irvine home builder SunCal topped
New York developer Donald Trump with a $110.2 million offer for the 2.4 acre site.

SunCal officials expect to seek formal city approvals immediately in the hope to break
ground by 2009.

In an aggressive partnership between the city of South Lake Tahoe and the Lake Tahoe
Development Company, a major new mixed-use project will begin construction in March.

The Chateau is a $420 million redevelopment project that will feature two luxury
condominium-hotels with 477 rooms, 50,000-square-feet of conference and event
space, a complete destination spa, 1.5-acre park, and a collection of shops and
restaurants. RockResorts® a luxury hotel company owned by Vail Resorts, Inc., will
operate the property and spa when it is completed.

The Chateau, continuing the City of South Lake Tahoe’s redevelopment efforts which
began in 1991, boasts a prime location for year round activities.  The project is within
50 yards of the Heavenly Village and gondola access to the ski resort as well as Harveys,
Harrah’s, Horizon and MontBleu Hotel casinos, and is a short walk to Lakeside Beach
and Marina. A proposed pedestrian overpass across Highway 50 would connect 'The
Chateau' with the gondola at Heavenly Village reinforcing the area’s philosophy for a central
gathering place with convenient pedestrian access and minimal driving. 

The project adds financial benefits for the area as well, including an estimated $1.4 million
in transient occupancy tax, more than 500 additional jobs, approximately $6.3 million for
area school districts and government agencies, $24 million for affordable housing, consistent
shoulder season revenue through meetings and conventions estimated to attract 180,000
visitors, $23 million in room revenue and $56 million in annual discretionary spending. 

The Yuba Highlands Development, a controversial project that
would transform a vast swath of pastoral grasslands adjacent
to Beale Air Force Base into a bedroom and retirement community
of 5100 homes on 2,900 acres has been cancelled by the developer.

Developer Gary Galleli has decided to forego the effort to build the
proposed project even with his investment of  time and money to
build the Yuba Highlands. Galleli no longer wants to build it 
anymore given the current economic conditions. At least not as
proposed on the ballot. After nearly two years of  planning,
including a tenous vote by the Yuba County Board of Supervisors
approving the project’s environmental impact report in July, the
development looked to be moving forward, however citizens'
groups collected more than 3,000 signatures to put the matter
to a vote.

The referendum for the development is on the upcoming election
on February 5.  But it is too late to stop the referendum because
absentee ballets have already been mailed.  So, Galleli is asking
voters to vote no because if it passes it will create millions of
dollars in costs.

Gallelli said that if his measure passes, he would be obligated to build the project as proposed.
That means getting right-of-way permits, building roads and making sewer and water improvements.
In all, he estimated he'd be on the hook for $4 million to $5 million – a lot of money to invest with
the specter of a recession looming.

Gallelli is thinking about a smaller version that would reduce the number of homes to 4,000 and
make more of them condos and multifamily units. His new proposal also drops a controversial
proposal to build a road through the wildlife preserve, which fueled a lawsuit by environmentalists.

Gallelli plans to talk with Yuba residents about ways to improve the project and hopes to have
something built within five to 10 years. In the meantime, he will be e-mailing friends and investors,
telling them thanks for your support, but please do not vote in favor of the development.

The City's Planning Commission has approved the final
design for a 23-story, 500,000-sf LEED-certified office
and retail project called 601 City Center. A joint venture
of San Francisco-based Shorenstein Properties LLC and
MetLife Real Estate Investments is developing the asset
at Oakland City Center.

The Planning Commission voted unanimously to approve the project, which will be
developed on a site of more than 1.4 acres comprising an entire block bounded by
11th Street, 12th Street, Jefferson Street and Martin Luther King Jr. Way in Downtown
Oakland. In addition to its office and retail space, the building will include a two-level,
200-stall underground parking garage. The developers expect to break ground on 601
City Center in the spring and to complete construction in the spring of 2010.