Faraday Future Says Its First Car Will Go Into Production Next Summer In Hanford

-June 17,2021-

LA-based Faraday Future(FF) announced Tuesday June 15 that production would start by July 2022 at their leased assembly plant in Hanford in Central California.
 
Screen Shot 2021-06-16 at 11.18.01 AMThe production start-up date had been announced earlier to be at the end of this year, but the latest release postponed it another 6 months. Delays in the launching of manufacturing of this high-end electric car have been the order of the day in the past, although local officials in Hanford remain believers.
 
This reporter had written that the company had yet to pull major permits at the old Pirelli Tire facility but news that an architect is on board now offers hope the remodel work will continue.
 
Irvine-based architecture firm Ware Malcomb has been hired to finalize the  1.1 millions building’s design and engineering for an automobile plant in Hanford, says a news release this week.The firm will finalize architectural planning, interior design, and civil engineering for the Hanford manufacturing facility.
 
Faraday says  the Hanford plant will produce 10,000 vehicles per year when it’s up and running.
 
Faraday Future, which announced a $3.4 billion SPAC merger in January with Property Solutions Acquisition Corp (PSAC), said last March a $100 million debt financing would allow it to begin production on the FF91 electric vehicle in Hanford. The merger is expected to be final next month.
 
“FF has already completed significant investment at our Hanford manufacturing facility, and with the additional funding from our merger with PSAC, we anticipate that the plant will be up and running in the near future,” said Dr. Carsten Breitfeld, Global CEO of FF.
 
 “Since its inception, FF has always been committed to offering state of the art technologies including software, internet, and artificial intelligence. This is what sets us apart from the competition, and what we will be focusing our efforts on once production is underway.”
 
Faraday says it is currently preparing to merge with Property Solutions Acquisition Corp. “The previously announced merger, expected to close in July 2021, will result in the combined company listing on the Nasdaq Stock Market under the new ticker symbol “FFIE” after the closing. The I in “FFIE” represents Intelligent and Internet, and E represents Ecosystem and Electric. FF’s flagship electric vehicle (“EV”) – FF 91 – is planned to be launched within 12 months of the closing of the merger.”
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Auto sales down in first quarter

-June 11,2021-

California new light vehicle registrations declined 2.9 percent during the first three months of this year versus the same period in 2020. However California New Car Dealers expect new registrations to rise 10% in 2021

Lean inventories due to the microchip shortage coupled with strong demand have limited sales says the Sacramento association. During the first three months of 2021, car sales declined 16% but truck sales were up 5.4% Toyota RAV4 was the top selling vehicle while the Ford F-series was the top in its category. In the first quarter used car sales were all down by 6.7%.
Turning to hybrid and electric car sales, dealers say their combined markets is now 20.6% led by hybrid sales that now account for near a 10% market share – up from 7% in 2020. All electric sales were also higher in 2021( see charts).

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Retail growth could top 7% this year

-June 10,2021-

WASHINGTON – The National Retail Federation today issued its revised annual forecast for 2021, anticipating that retail sales will now grow between 10.5 percent and 13.5 percent to more than $4.44 trillion this year as the economy accelerates its pace of recovery.

Screen Shot 2021-06-10 at 7.08.37 AMThe economy and consumer spending have proven to be much more resilient than initially forecasted,” NRF President and CEO Matthew Shay said. “The combination of vaccine distribution, fiscal stimulus and private-sector ingenuity have put millions of Americans back to work. While there are downside risks related to worker shortages, an overheating economy, tax increases and over-regulation, overall households are healthier, and consumers are demonstrating their ability and willingness to spend. The pandemic was a reminder how essential small, mid-size and large retailers are to the everyday lives of Americans in communities nationwide.”

The revised forecast surpasses NRF’s initial projection of at least 6.5 percent growth, made in February of this year. The initial forecast was made when there was still great uncertainty about consumer spending, vaccine distribution, virus infection rates and additional fiscal stimulus, prior to passage of the American Rescue Plan Act.

NRF now forecasts that 2021 retail sales are estimated to total between $4.44 trillion to $4.56 trillion. Non-store and online sales, which are included in the total figure, are expected to grow between 18 percent and 23 percent to a range of $1.09 trillion to $1.13 trillion as consumers continue to utilize ecommerce. The numbers exclude automobile dealers, gasoline stations and restaurants.

The updated figure compares with $4.02 trillion in total retail sales in 2020. Of that, $920 billion was from purchases made through non-store and online channels.

In addition, NRF now projects full-year GDP growth to approach 7 percent, compared with the 4.4 percent and 5 percent forecasted earlier this year. Pre-pandemic levels of output are expected to return this quarter.

“We are seeing clear signs of a strong and resilient economy,” NRF Chief Economist Jack Kleinhenz said. “Incoming data suggests that U.S. economic activity continues to expand rapidly, and we have seen impressive growth. Most indicators point toward an energetic expansion over the upcoming months and through the remainder of the year.”

CPI up 5.4% year-over-year

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.6 percent in May on a seasonally adjusted basis after rising 0.8 percent in April, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 5.0 percent before seasonal adjustment; this was the largest 12-month increase since a 5.4-percent increase for the period ending August 2008.

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The index for used cars and trucks continued to rise sharply, increasing 7.3 percent in May. This increase accounted for about one-third of the seasonally adjusted all items increase. The food index increased 0.4 percent in May, the same increase as in April. The energy index was unchanged in May, with a decline in the gasoline index again offsetting increases in the electricity and natural gas indexes.

The index for all items less food and energy rose 0.7 percent in May after increasing 0.9 percent in April. Many of the same indexes continued to increase, including used cars and trucks, household furnishings and operations, new vehicles, airline fares, and apparel. The index for medical care fell slightly, one of the few major component indexes to decline in May.

The all items index rose 5.0 percent for the 12 months ending May; it has been trending up every month since January, when the 12-month change was 1.4 percent. The index for all items less food and energy rose 3.8 percent over the last 12-months, the largest 12-month increase since the period ending June 1992. The energy index rose 28.5 percent over the last 12-months, and the food index increased 2.2 percent.

Seefried industrial building

company operational statement

-June 5,2021-
Screen Shot 2021-06-05 at 8.01.57 AMThe proposed Seefried Industrial Properties project is a 1,033,180 square foot warehouse and distribution facility (+/-1,002,980 square feet of warehouse and +/-30,200 square feet of office) constructed on a 81.35 acre parcel located at the southwest corner of N. Plaza Drive and W. Fergusson Ave. in Visalia, CA. The site can accommodate a future 356,160 SF expansion, which is not being contemplated in this site plan review. The design of the site provides 752 auto parking stalls (15 accessible per code) and 304 trailer stalls.

The facility will be constructed to a height of +/-55’ above current grade to accommodate a minimum clear height within the facility of 40’, and parapets around the perimeter to screen mechanical equipment on the roof. The Facility will be fully conditioned with an Early Suppression, Fast Response (ESFR) fire sprinkler system and code required fire alarm system.

Access:

Access will be provided thru driveways off Plaza Dr., Fergusson Ave. and a private access road just south of the Facility. Trucks will utilize Fergusson Ave. primarily, and employees will utilize Plaza Dr. There will be a main point of access to the Facility off Plaza Dr. thru the office area, with code required fire access around the perimeter.

Operations:

This Facility will operate 24 hours, 7 days a week utilizing +/-400 employees in two (2) shifts (8:00 am-5:00 pm- DAY and 6:00 pm-4:00 am- NIGHTS). It is estimated that 280 employees will operate during the day shift, and 120 employees during the night shift.

The product within the Facility will be stored in floor mounted racking similar to the below.
The +/-156 dock high doors are for loading and unloading product to/from trailers. There is one (1) main office area, one (1) inbound office, and one (1) outbound office (each will include break room and restrooms) within the Facility.

Visalia Industrial Park Watch

-June 4,2021-

UPS adding 2.9mw rooftop solar

The new Visalia United Parcel Service package hub at Plaza and Riggin will sport more than 9000 rooftop solar panels according to a city building permit just issued. The arrays should generate about 2.9 megawatts of renewable power to light up the 450,000sf facility.

UPS has pledged to source 25% of its electricity from renewable energy by 2025 in what is just one of a raft of new initiatives designed to make the company cleaner and more sustainable.

The Atlanta, U.S.-headquartered parcel delivery giant is hoping to reduce its absolute greenhouse gas (GHG) emissions for its global ground operations by 12% by 2025. To achieve this, UPS will ensure that one in four new vehicles purchased annually will be “alternative fuel or advanced technology” vehicles.

Titan Brands opening warehouse in Visalia

Internet retailer Titan Brands, based in Memphis Tennessee, has opened a distribution warehouse in Visalia. The company has leased a 132,668 square feet building at the SE corner of Plaza and Riggin in a new multi-building development owned by Diversified Development Group.

A company statement says” Titan Brands, a direct-to-consumerScreen Shot 2021-06-04 at 6.42.08 AM e-commerce company, will be bringing a distribution center to Visalia, CA. Titan Brands — parent company to Titan Attachments, Titan Fitness, Titan Ramps, and Titan Great Outdoors — has seen accelerated growth and, with this, is expanding into additional distribution centers.”

“Titan has begun hiring people to work at the facility, with jobs posted online. The hiring plan includes material handlers, forklift operators, and operations positions, all of which offer competitive and comprehensive benefits packages, initial and ongoing training, and the opportunity for career advancement roles.”

Spokesperson Olivia Jamison says”We expect to employ approximately 20 people, with plans to expand in the future.”

To learn more about Titan Brands or to apply for an open position, visit titanbrands.com.

The new Diversified Development Group(DDG) complex of buildings at Plaza and Riggin is across the street from the big Visalia UPS hub. DDG says the 2 completed tilt-up concrete buildings are fully leased. JDS Industries is in building B. Buildings C and D are not yet constructed but are expected to break ground soon.

Floor Company expanding in Visalia

Floor covering company Nammour Inc is building a new 50,000sf warehouse in the Visalia Industrial Park The firm is a wholesaler of flooring and flooring supplies specializes in carpet, laminate, SPC (Rigid Core Flooring), LVT(Luxury Vinyl Tile), tile and more. The Visalia company has locations in Bakersfield and Fresno as well as Visalia. The firm plans to build their new warehouse on Sunnyview, across the street from their current warehouse. Nammour purchased the land at 8028 W Sunnyview for the project recently.

ServiceMaster acquires 50,000sf

In the Visalia Industrial Park with UPS and Amazon stoking the development fire, existing buildings are being gobbled up including a 50,000 sf tilt-up at 8230 Doe Ave recently purchased by ServiceMaster by Benevento who will be enjoying lots more space now for their business.

Visalia pet food maker expanding in industrial park

-June 1,2021-

If Americans snacked more during the pandemic – so did their pets

Screen Shot 2021-06-03 at 7.27.19 AMPerfection Pet Foods is building a new mixing tower at their Camp Ave plant in the Visalia Industrial Park. The pet food maker, affiliated with Western Milling is demolishing a building to make way for the new tower. Established in 2011, Perfection Pet Foods is a west coast extruded dry pet food and biscuit manufacturer. The company makes food featuring High meat, Meat First, Super Premium diets, Soft-Moist pieces and traditional dry brown dog and cat kibble

The mixing process is a key process in pet food production. The basic process is to weigh the raw materials in different weights according to formula, then pour them in the crusher to decrease size, and later all materials are temporarily stored in the storage silo. Then all materials are ready, feed them in the mixer for mixing.

Western Milling founder Kevin Kruse says the company has had years of struggle -at but today is doing well. ”We have a great team” says Kruse.Western Milling headquarters is just down the block in Goshen.

Warehouse deal told

Besides an expansion at their Camp Drive campus, Perfection Pet Foods is leasing an additional 150,000sf tilt-up building that was just completed on Riggin.The building is owned by YS Industries. A 3PL firm, Redwood Logistics is handling the project.

Pet food and treat sales in the U.S.increased 9.7% in 2020, adding $3.7 billion for a total of $42 billion for the year, according to the American Pet Products Association.

Spending more time at home during the pandemic, owners lavished attention and spending on their family pets.The continued premiumization and humanization of pet food and treat products is one key contributor to this unprecedented growth.

“Premium pet food surged again in 2020 sayas on analyst. “We saw premium food gain a ton of share over the mid-priced and especially economy-positioned products, not the trading down that we might have expected under a pandemic but, again, it’s all about that shift in household ownership.”

It’s also due to an increase in pet population among higher-income households in developed countries, and the willingness of those households to spend increasing amounts on their pets each year.

“Pet ownership surged in North America, Western Europe and Australasia that had long seen sluggish pet population growth, but suddenly outperformed historic averages,” claims researcher Jared Koerten.

Pet ownership among US households earning more than $150,000 per year grew by 8.6% from 2019 to 2020. Over this same period, US households earning more than $100,000 annually represented the most growth in pet ownership, while pet ownership rates of lower-income households declined or went unchanged.

“This is the highest growth we’ve seen on record for the global pet care industry,” said Koerten, senior head of pet care research at Euromonitor International.

If Americans snacked more during the pandemic – so did their pets
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Chicken / Seaweed / permits / Amazon

-June 1,2021-

Visalia’s Downtown A&W to become Doc’s Chicken

Teen and Papa burgers are out but chicken will be in when the new owner of the Downtown A&W property reopens the place in the next few months.Nasser Yehya who owns Doc’s Drive-In on Main St has purchased the long time hamburger stand at 301 Willis and plans to put in a drive thru to make it easer for customers.

Screen Shot 2021-06-03 at 7.02.37 AMThe Van Horn family closed the landmark And W in the past few weeks with Craig Van Horn remembering that his dad purchased the place when her was just 8 year old in 1967. The eatery was a gathering spot for Visalia Cruise Night display of classic cars and also featured old fashioned car hop service.But Van Horn says in recent years sales were heading in the wrong direction.

Ironically the deal was made at the last Cruise Night event attended by the buyer.

Meanwhile,Mr Yehya’s Docs eateries are on the grow after his relocation from Acequia a few years ago to Main Street.Now He is working on a plan to establish new Dos’s restaurant in at the former AAA building on Mooney at Burrell.

Switching the menu from the staples at A&W will take a advantage of the popularity of chicken.USDA says per capita consumption of chicken has gone from 28 lbs in 1960 to near 100 lbs as of 2021-a 4X increase.

Seaweed cuts cattle methane burps

A small amount of seaweed in cattle feed could reduce methane emissions from beef cattle as much as 82 percent, according to new findings from researchers at the University of California, Davis. Methane is a potent greenhouse gas.

“We now have sound evidence that seaweed in cattle diet is effective at reducing greenhouse gases and that the efficacy does not diminish over time,” said Ermias Kebreab, professor and Sesnon Endowed Chair of the Department of Animal Science and director of the World Food Center. Kebreab conducted the study along with his Ph.D. graduate student Breanna Roque.

“This could help farmers sustainably produce the beef and dairy products we need to feed the world,” Roque added.

Over the course of five months last summer, Kebreab and Roque added scant amounts of seaweed to the diet of 21 beef cattle and tracked their weight gain and methane emissions. Cattle that consumed doses of about 80 grams (3 ounces) of seaweed gained as much weight as their herd mates while burping out 82 percent less methane into the atmosphere. Kebreab and Roque are building on their earlier work with dairy cattle, which was the world’s first experiment reported that used seaweed in cattle.

Story reported by California Ag Network.

Visalia building permits up 44% in 2021

The value of all permits in Visalia so far in 2021 is up 44% from the same 4 months a year ago.City records show permit values in excess of $88 million last year compared to $127 million so far in 2021. The number of new home permits is up 11%,multi-family units number 106 so far this year vs just 6 units this time last year. New commercial projects number 19 this year compared to 11 this time a year ago. New commercial permits value is $38 million so far this year vs $25 million in 2020.

Amazon posts soaring sales

Few companies have benefited from the pandemic-fueled surge of online shopping as much as Amazon. Its first-quarter results showed the company’s business continues to be buoyed by the pandemic, with sales soaring 44% year over year to $108.5 billion.-WSJ

California & Central Valley tourism recovering slowly

Hotels face tough business and international travel drought

-June 1,2021-
Figures from the state tourism agency show hotel occupancy in March 2021 at around 64%.That is an improvement from all of 2020 when tourist spending in California was just 45% of the amount spent in 2019 ,before the pandemic hit. But the state is likely to take years to recover fully from the devastating impact on business from Covid 19.

Caroline Beteta, president and CEO of Visit California says “The pandemic has been an enormous challenge across the globe, and tragically has taken lives and livelihoods. California – and California’s travel and hospitality industry – are well-positioned for recovery.”

The state tourism agency says visitor spending in California dropped to $65.10 billion in 2020, only 45% of the 2019 amount. The last time tourism spending in California was below $60 billion was 1996.

Now it will take time to recover warn officials but Californians can do their part.

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The agency reports that travel-related spending from Domestic visitors is expected to recover to 76% of 2019 levels in 2021, while International spending will only recover to 32%.

Total travel-related spending in California is not expected to reach pre-coronavirus levels until 2024. Overall, Leisure travel (person trips) could recover to 82% of 2019 volume in 2021, while Business-related travel will only recover to an anemic 44%.

Tourist spending across the state should make a slow recovery with this year predicted at 76% of 2019 numbers, improving to 86% in 2022 and finally showing a little growth at 101% in 2023.

Back in 2019 -$6 out of $10 spent at local visitor destinations were attributable to residents of other states and countries.The GDP of the California travel industry was $84.6 billion in
2019, which represents about 2.5 percent of the total GDP of the state. Then in 2020, both international and out-of-state travel dried up. And Californians stayed at home too.

The coronavirus pandemic disrupted California’s travel and hospitality businesses, but the economic power of the industry fueled by Californians themselves can ignite a robust comeback says the agency. Indeed, Californians are hitting the road this month in huge numbers,
While some big travel distinctions like San Francisco saw their total dollars fall dramatically,the tourism based hotels on the Central Coast had wild swings in their numbers by month.

Meanwhile mid-state hotel occupancy as of March 2021 is about 66% in Fresno, 67% in Visalia and 65% in San Luis Obispo – all up from March 2020 when the pandemic set in.

In fiscal year 19/20 through June 30 last year, Visalia’s bed tax revenue fell 11.5%. The city’s Transient Occupancy Tax decreased as COVID-19 had a detrimental effect on the travel and hospitality industry, enhanced by the lockdowns and travel restrictions imposed by the State of California

Occupancy rates fell to 39% in California hotels in March 2020. Now the prediction for non tourist regions like the Central Valley is that room revenue that fell 33% in 2020 should grow 19% this year, increase by 11% in 2022 and another 18% in 2023.

Quick Takes

-May 3,2021-

New county clinic in Visalia

Tulare County HHSA says they will build a new  Infectious Disease Clinic on Dinuba Blvd.The plan is abide a new 4750sf building  at 2611 N Dinuba Blvd in Visalia.

Payday loan biz closes

Southwestern & Pacific Specialty Finance Inc. Store #2963 – Axcess Financial announced in a state WARN notice they are closing stores across the state including in Visalia. The company operates as Check ‘n Go. The state banned these types of high interest loan operations.

Highway 99 through Tulare to be widened

Screen Shot 2021-04-25 at 6.07.44 AMThe state plans to continue the widening of Highway 99 south through  a five mile stretch in the City of Tulare. Besides adding an extra lane in each direction TCAG reports  that in January 2021, the Project Development Team, including the Tulare County Association of Governments and representatives of the City of Tulare, agreed to increase the scope of the project. The existing Paige Avenue overcrossing is now proposed to be removed and replaced with a new bridge, and two additional roundabouts on Paige Avenue would be built at Blackstone Street and Laspina Street.

Caltrans is proposing to widen State Route 99 in the City of Tulare from just south of the Avenue 200 overcrossing to just north of the Prosperity Avenue overcrossing (post miles 25.4 to 30.6). 

In addition, the existing Paige Avenue interchange would be reconstructed to a tight diamond layout with roundabouts at the ramp ends. Two additional roundabouts would be constructed on Paige Avenue at Blackstone Street and Laspina Street. The Paige Avenue overcrossing would be replaced with a wider structure with two lanes in each direction and a pedestrian/bicycle shared path on both sides.

.Funding for the project  would be budgeted in fiscal year 22/23. Right of way acquisition to be completed in Summer 2025 –

Construction to begin in  Spring 2026. Construction to be completed  Spring 2029. Total  cost is expected  to be $217 million.

Also , Caltrans has an upcoming project that would rehab SR-99 from the Kern County border to .7 miles north of Court Avenue in Pixley (SR-99 (Delano)) at a cost of $74.3 million. At the April 1st San Joaquin Valley COG Directors meeting, the directors unanimously voted that all remaining Prop 1B, SR-99 bond savings be applied to the SR-99 (Delano) project. The cost savings is estimated to be $18 million to $25 million depending on the close out costs of a few remaining SR-99 projects that have finished construction. In addition to the SR-99 bond savings funding, Caltrans has requested $2 million for design funding and $2 million for construction support from TCAG.

 At a recent meeting $4 million of  COVID-19 relief funding will be divided the SR-99 (Delano) project, $1,120,700 to the SR- 99/Caldwell Ave Interchange project and $3.1 million of regular STBGP funding to the Riggin Ave. widening project in Visalia.

40MW solar farm on tap near Tulare

Tulare County intends to adopt a Mitigated Negative Declaration (MND) for the Tulare 40 Generation Facility Project located 5 miles east of the City of Tulare and east of Road 152. The project site is addressed as 23599 and 22996, Road 152.The project is being proposed by Coldwell Solar based in Rocklin, CA. The power would connect to the Bliss substation operated by SCE.