T-Mobile inks lease of K-mart building in Kingsburg

-March 11,2021-

After some 3 years of negotiations, phone giant T- Mobile has inked a lease of the former K-Mart building in Kingsburg according to real estate sources. The property is owned by grocery chain owner Mike Alamsi who was unavailable for comment.

SF-based Swinerton Builders has received a permit to begin demolition in the interior of the sparawling K-mart building that will house the new T-Mobile call center. The same big builder will be doing the tenant improvements that will follow. The vacant 105,000sf building is at 333 Sierra St, Kingsburg.

A demo permit was issued January 26 for the major project that is expected to bring hundreds of new jobs to the area in early 2022 says Kingsburg Economic Development Coordinator Jolene Polyack. The center is expected to employ around 1000 when in full operation.

Biz news around Visalia

-February 24,2021-

Furniture store takes former Best Buy spot

Startup Savon Furniture has leased the former Best Buy building at 4236 S Mooney Blvd Visalia. The Packwood Creek shopping center 30,000sf building had been empty for over 2 years.The furniture store joins competitors clustered along S. Mooney Blvd.

South Mooney now has 4 large furniture stores with MorFurniture ,Bob’s Discount Furniture, Ashley Home Stores and now Savon.

Crumbl Cookies on Mooney

Crumbl Cookies will open at 3839 S Nooney next to the tire store in a new building owned by Johnny George.The franchise cookie store is hoping to open by June. At Crumbl, warm milk chocolate chip and chilled sugar cookies are always on the menu, along with 120+ specialty flavors that rotate weekly. Cookies are baked in an open kitchen. The company first opened in Logan Utah.Since then, the franchise has expanded to over 75 locations in 11 states.

There are stores in Bakersfield and Fresno.

Dutch Bros plan 4th location in Visalia

Fast growing Dutch Bros coffee is now planning a 4th location in Visalia according to a recent site plan filing with. the city. This week the company submitted tentative plans for a double drive-thru in north Visalia near Riggin at 3150 N Demaree, part of the Shannon family development. They are also working on a new site at SWQ Visalia Parkway & S Mooney Blvd.The Oregon company is about ready to open a site on Akers and their single-lane drive thru is open on Mooney across from COS.

Sherwin William’s remodeling space next Dunkin Donuts

Sherwin Williams paint store will be moving next to Dunkin Donuts on Walnut and Mooney once their remodel of a 5000sf space is complete. The city issued permits for tenant improvements.The store should be open by late summer. The popular paint chain will relocate from Tulare Ave near Mooney where the retailer has been for years. Turns out Visalia United School District has purchased their existing building. Sherwin Williams has second location in Visalia on East Main.

Taco Bell on Akers breaks ground

A new Taco Bell restaurant is breaking ground on Akers south of198 in a new commercial development across from the Lifestyle Center. Taco Bell joins Dutch Bros and several other food related stores clustered nearby.”It’s really a big food court for the area” says developer Harvey May.

Doc Burnstein’s Ice Cream Lab a no-show Downtown

Central Coast ice cream parlor Doc Burnstein’s is not coming to Downtown Visalia after all, say real estate sources.Last year the company was working on a location next to Sequoia Brewing on Main Street, but negotiations fell through.

Sierra Bank grows loans

Sierra Bancorp, the parent of Bank of the Sierra based in Porterville, announced slightly lower net income but a big increase in loan volume in the 4th quarter. Sierra Bancorp said their net loan growth was $694.5 million – a jump of 40% based mostly on residential real estate loans.Deposits were up by 21%.

UPS sales climb 21%

United Parcel Service Inc., with a big complex in Visalia, announced a 21% increase in fourth-quarter sales to $24.9 billion, a record for the company. Sales were spurred by online shopping during the holidays. The company’s operating profit grew 26% in the quarter ended Dec. 31,2020.

Biz News Banks &more

Downtown Tulare loses another bank

**former Citizens Business Bank location in Downtown Tulare is for sale**

Downtown Tulare now has two former bank buildings on the sales block now that WestAmerica Bank has relocated its branch to 1917 Hillman, near Prosperity. Their old location at 140 E Tulare Ave is for lease. WestAmerica moved last November. Citizens Business Bank’s former Downtown location at 256 N K St is also on the market. The bank left Downtown a few years ago relocating to Prosperity Ave.

Financial institutions are relocating to the city’s big box retail part of town following —Chicago Title who moved to this part of town as well – on Hillman. Chicago Title was formerly in Downtown Downtown Tulare still has Wells Fargo,B of A, Bank of theWest and Bank the Sierra. It is not just financial companies that have exited the historical part of the city . A few months ago Walgreen’s closed at 49 W Tulare Ave and the 15,000sf store is for lease.

Heading to Downtown Visalia

Tri Counties Bank will relocate their Visalia branch to the former Rabobank/Mechanics Bank location at 618 W Main St.,now vacant. Their current site is at the corner of Noble and Pinkham.The move is expected this summer. A public notice said Tri Counties Bank applied to the Federal Deposit Insurance Corporation to open a new branch in Visalia.

Established in 1975 and with assets of more than $7 billion, Tri Counties Bank is a wholly-owned subsidiary of TriCo Bancshares (NASDAQ:TCBK) headquartered in Chico, California. It is the 18th largest bank in the state of California and the 183rd largest bank in the nation.

Porterville to get new Valley Strong Credit Union

Fast growing Valley Strong Credit Union, based in Bakersfield used to be called Kern Schools Credit Union until they started expanding south Valley wide. They are opening two branches in Visalia, one on south Mooney and one in north Visalia on Dinuba Blvd, now open next to Target.

In late October the credit union opened in a Tulare on Prosperity. Now Valley Strong has selected a site in Porterville proposing construction of a 1,498sf building at 745 N Newcomb St near the SWC of Henderson Ave and Newcomb St according to the city.

No more Goshen jokes

OK, Goshen does not have a lot of famous landmarks beside the detention basin known as” Goshen Ocean.” The Highway 99 town still is considered “disadvantaged” based on a large percent of low income population. But Goshen enjoys some distinct advantages lately.

They include being the new gateway to the booming Visalia Industrial Park and new highway interchange with opportunity on all four corners.That has drawn a host of development projects including several large new home subdivisions -both subsidized and market level.Then there is the new 16-acre TA truck stop with 3 fast food restaurants slated including a Burger King and a contracted Comfort Suites Hotel according to developer Luis Mota. A Starbucks is already open and the town’s first grocery store in the works. This month a building permit valued at $600,000 was issued by the county to begin construction of the Burger King.

Then there is a Tesla supercharging station.Add to that the fact that Goshen and the Visalia Industrial Park continue to grow toward each other with large parcels in the county that have good potential to attract more warehousing and the industry. Several large parcels are for sale now.

All this activity has not gone unnoticed in Visalia. Mayor Steve Nelsen says Goshen may someday be ripe to annex “but not yet.”

“It has gotten our attention.”

Visalia Guitar Center to stay open

Visalia’s Packwood Creek retailer Guitar Center looks to stay open now that its parent company has emerged from Chapter 11 bankruptcy. Guitar Center emerged from bankruptcy Dec. 31 after recently winning approval in federal bankruptcy court for its reorganization plan, the company said in a press release.

Visalia employees have been told it will stay open.

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Visalia’s Hometown Buffet on the sales block

-February 6,2021-

Comfort food favorite Hometown Buffet is on the sales block for $2 million according to the real estate company marketing the property. The big Mooney Blvd restaurant is closed and investors have been invited to tour the 2.2 acre property. Agent Shane Anderson of Commercial Retail Associates says he would not be surprised if the 10,000sf building with large parking lot is converted to some other use besides dining.

That would not be surprising in that big restaurants and particularly all-you-can-eat buffet restaurants have had a tough time during the past year because food is served inline with little social distancing. Indoor buffet eateries are typically crowded and serving ladles/spoons are shared with people visiting serving trays of food multiple times. The” shared germ” perception has impacted salad bars, Indian and Chinese buffets as well.

Hometown Buffet in Clovis closed a few years ago as did the location in San Luis Obispo.

Hometown Buffet is operated by Texas-based Ovation Brands who has gone through several bankruptcies. The company runs Tahoe Joe’s steakhouse with a location in Visalia.

Due to the COVID-19 pandemic, all of the Ovation buffet style restaurants closed in March 2020 “temporally”. Five locations reopened as “AYCE Marketplaces” in summer 2020. As of January 15, 2021, ALL Old Country, Hometown, and Ryan’s Buffet locations are permanently closed, and nearly all have been auctioned off by Auction Nation.

Visalia city revenues higher than expected

– Sales Tax revenue up 3%

– Property tax monies climb 5%

Who is Visalia’s top taxpayer?

-February 6,2021-

Despite the COVID-19 pandemic’s effect on the economy and tough times for many municipalities, the City of Visalia collected $3 million more to run the city than they had budgeted according to the latest financial report shared with the city council this month.

The report covers fiscal year 2019 /20 that ended June 30, 2020 – more than 4 months into the pandemic.

“It certainly was a pleasant surprise” says Mayor Steve Nelsen “after there had been plenty of doom and gloom.”

Total revenues were $3 million higher than the final budgeted amount largely based on an unexpected increase in sales tax revenues – $1.9 million more than budgeted. The report says” the economy continues to have growth partially aided by Federal stimulus money put into consumers’ pockets due to the COVID-19 pandemic.”

Also impressive”property tax increased $2.3 million more than budgeted as valuation increased more than anticipated.”

Other budget funds were down including the city bed tax or Transient Occupancy Tax – $0.2 million less than budgeted 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.

Business licenses did increase $67,000 more than budgeted but subventions and grants was $2.3 million less than budgeted due to the City not yet receiving the funding from Prop 1B for the East side park basin project. However, the funds will be reimbursed when the project is completed. Also up was interest received from investments- $1.2 million more than budgeted due to higher interest earnings rates.

Here is a summary of revenues showing an overall increase of 2% over the prior year reduced in part by an 11.5% decline in hotel bed tax receipts.( see chart)

In their 20/21 budget, city staff expected COVID-19 would take a heavy toll on the local economy, affecting Visalia’s sales tax take. In their projection done June 1,2020, staff expected a 9% decrease in sales tax in 20/21 – down to only $30 million and just 30.3 million in the 21/22 fiscal year that will begin this July.

$4.5 million surprise

But as you can see the numbers for the 19/20 fiscal year was $34.2 million. In their earlier- more gloomy estimate – the city had expected the year’s sales tax to come in at only $29.7 million due to COVID. But it came in $4.5 million more!

Property tax revenue also beat expectation. They had figured $25.8 million for 19/20. But we now know that it came in at $26.3 million. Despite the pandemic, property values have been climbing across the state led by home valuations.It has been estimated that California’s median home prices increased over 8% last year. Tulare County’s median home price increased 17% between December 2019 and December 2020 says the California Association of Realtors.

Between sales tax and property tax revenue – the

“big two” add up to about 80% of the city’s general fund

Moving forward

Nelsen expects the trend to continue. Car and truck sales are doing well and now internet companies who do business in California like Amazon contribute sales tax to the city where the purchases are made.

As a result Mayor Nelsen expects the city to move forward on a number of capital projects including infrastructure at the industrial park, the police and city council chambers project, a homeless shelter and expansion at the airport to make it more of a business hub.

Largest taxpayer

Also part of the financial report – is the list of the city’s largest taxpayers and comparison of their rank back in 2011. Leading the pack is California Dairies Inc with their big plant in the industrial park valued at $162 million – up from $147 million in 2011.

Number two is Perfection Pet Foods valued at $57 million, a company that was not around in 2011. Number three is Caldwell Mooney Partners who own the Sequoia Mall, the shopping center anchored by Dicks Sporting Goods ,the center at Mooney and Walnut anchored by Kohl’s with the total valued at $53.4 million. Number four is Graphic Packing INT at $53 million.The company is traded on the NYSE at GPK. They make paper cups and plastic lids for the food service industry. The company has done well in pandemic as take-out food and beverage has thrived. Number five taxpayer is California Water Service. Visalia Mall is just behind them.

Amazon opening “fulfillment center” in Shafter

-January 28,2021-

E-commerce giant Amazon looks to add more distribution centers in the south valley. Last month the Bakersfield newspaper said a former Kmart on Wilson Road in Bakersfield is slated to become an Amazon distribution center – their second warehouse development in Kern County. Already open is the new 1000-job Bakersfield airport fulfillment center.

Also, a new 1.3 million square foot Amazon warehouse in Visalia is under construction next to UPS and is expected to open in August. Fresno has one too.

Now Shafter will get a new 1 million sq ft Amazon “fulfillment center” according to Joe Vargas, president of Wonderful Real Estate. Wonderful, owned by Stewart Resnick, has a large industrial park anchored by Target in Shafter that includes this one million sf building that has been for lease.

Vargas says Amazon is already underway with tenant improvements.Vargas says he hopes Amazon could be in operation by June. The development could be a big job generator for Shafter and the region. “We don’t know how many jobs will be created but the parking lot has room for 1500 cars.”

Amazon seldom announces these new projects.

Gallo finalizes acquisition of wine brands

Wineries includes Wild Horse on Central Coast

-January 11,2021-

E & J. Gallo Winery announced in January that it has completed the acquisition of more than 30 wine brands from Constellation Brands, Inc. The closing of the agreement between Gallo and Constellation was approved by the Federal Trade Commission on December 23, 2020.

The acquisition includes well known wine brands such as Arbor Mist, Black Box, Clos du Bois, Estancia, Franciscan, Hogue, Manischewitz, Mark West, Ravenswood, Taylor, Vendange, and Wild Horse that will join the Gallo portfolio. With this acquisition, Gallo will expand its operational footprint with the addition of five wineries located in California, Washington, and New York, along with Constellation’s Polyphenolics business. Gallo will also acquire the Nobilo New Zealand Sauvignon Blanc brand in a separate transaction with Constellation.

“The closing of this transaction represents our company’s long-term commitment to the wine industry,” said Chief Executive Officer, Ernest J. Gallo. He added, “We are pleased to welcome the new employees joining the Gallo family.”

First announced by Gallo and Constellation in April 2019 the completed deal was smaller than originally announced.

The included wineries are Mission Bell (Madera), Turner Road Vintners (Lodi), Clos du Bois(Geyserville) and Wild Horse (Templeton) in California, Hogue Cellars in Washington, and Canandaigua in New York.

Brands are typically lower cost labels-under $11 a bottle.

News reports say “According to research by wine sector consultant Jon Moramarco, Gallo brands now represent almost 30% of all bottles of wine produced in California, by far the country’s largest producer. Last year, Gallo’s share was at 24.4%. Meanwhile, Constellation drops from 12% to 6.5% of the state’s wine wine production.”

What are you drinking?

-January 11,2021-

Denver -based Ibotta, an American mobile technology company, has collected some interesting data on just what you are drinking during the pandemic. Here’s what is popular and not so much.

Beer: – Down 2% overall, with the following data for each subcategory

•Flavored Malt Beverage: +37.4%

•Non-Alcoholic Beer: +15.9%

•Craft Import Beer: -17%

Spirits and Hard Liquor: Up 33% overall, with the following data for each subcategory

•Liqueur: +75%

•Brandy: +43%

•Tequila: +40%

•Whiskey: +39%

•Vodka: +26%

•Gin: +14%

•Rum: +14%

Wine: Overall a 12% increase for all types combined, with the following subcategories

•Flavored: +73%

•Fortified: +51%

•Red: +12%

•Rice Wine: +37%

•Rose: +24%

•Sparkling: +5%

•White: +9%

A recent study by the Rand Corporation found that during the COVID-19 crisis, US adults sharply increased their consumption of alcohol, drinking on more days per month, and to greater excess. Heavy drinking among women has soared. Flavored wine promotions appear to be targeting women.

Where are you drinking? No place like home

Not at your neighborhood bar so much. Woodlake California resident Manuel Jimenez asks on his Facebook page why does his Tulare County hometown no longer have a bar, noting there were five in town some decades back.

Here are the details.”Back in the 60s cruising and drinking was common. An afternoon of cruising was followed by a pit stop at one of the many bars in town. They included La Copa Grande, Smith’s, The Oasis, The Gomez Cafè, the El Rancho and El Pinto bars. La Copa Grande later renamed The Silver Dollar Saloon was located where Little Ceasar’s sits. Smith’s, later renamed The Loading Shoot was located just north of Super Taco. It saw demolition recently. The Oasis was located between the Western Auto store and small liquor store ( where the welcome to Woodlake sign is) The Gomez Cafè was located on the west side o Pomegranate street just south of Lakeview street. The El Rancho bar was located on the northeast corner of Pomegranate street and Naranjo bld. The Pinto bar was located Naranjo bld just north of Boas gun shop and minnows farm. It was unique. It had a life size statue of a black an white pinto horse on its roof.”

Now the small foothill community does have 2 marijuana dispensaries however. People are “getting loaded” at home says one commentator on Jimenez’s Facebook site.

Eye opening moving costs

-January 1,2020-

from Idaho newspaper

BOISE — For people moving from California to the Treasure Valley, the high prices might be surprising.

No, not the cost of housing. Compared to what they receive for their California houses — where the median sales price exceeds $700,000 — Ada County’s record November median sales price of $425,000 still seems like a bargain.

It’s the high cost of renting a truck from U-Haul or another company, if you chose to move yourself, that would lighten your wallet. A family driving a rental truck from Los Angeles to Boise pays more four times as much as someone moving from Boise to Los Angeles, for instance.

A 15-foot truck, which U-Haul International says can accommodate belongings from a one-bedroom home or a two-bedroom apartment, would cost $2,384 for a move from Los Angeles to Boise. The rental includes five days of use of the truck and 1,054 miles.

The same rental for a family traveling in the opposite direction would cost only $561.

A 20-foot truck, with room for possessions from a two-bedroom house or three-bedroom apartment, is renting for $3,576 from the L.A. area to Boise. The same truck from Boise to L.A. would be only $617.

“Leaving California is getting expensive due to high demand and a shortage of available trucks,” Mark Perry, a professor of finance and business economics at the University of Michigan-Flint, tweeted last fall. “Moving to California is getting really cheap due to low demand and a surplus of available trucks.”

Around Kings County

Home sales /slow growth/ COVID fine issued /campus growing

San Joaquin Valley Homes, based in Visalia, was top homebuilder in Kings County in 2020 with 82 homes permitted followed by Lennar with 54 and Woodside Homes with 17.

California Association of Realtors reports that statewide November existing home sales rose 5.0 percent from 484,510 in October and were up 26.3 percent from a year ago, when 402,880 homes were sold on an annualized basis. The year-over-year, double-digit sales gain was the fourth consecutive and the largest yearly gain since May 2009.

“Home-buying interest is at levels that we have not seen for years, setting the stage for a stronger-than-expected comeback that fully recovered all the sales that the market lost in the first half of the year due to the pandemic,” said 2021 C.A.R. President Dave Walsh.

In Kings County there was a decrease in home sales – down 11.5% year over year while the median price rose slightly to $265,00 from $258,00 a year earlier.

The latest number from the closely watched October S&P/Case-Shiller Home Price Index reported a 8.4% YoY increase for Los Angeles and 7.7% increase in SF.

If Kings County did not show the big price appreciation seen across urban areas of the state, Kings continued the trend of low population growth according to a December report from the state Dept of Finance. California grew by just 21,224 from July 2019 to July 2020 while Kings County grew by 1223. Many counties lost population led by LA County with 40,000 fewer residents. Nearby San Luis Obispo lost 1125.

Looking closer, King County actually lost population due to migration elsewhere but births offset that by increasing by 2196. Deaths numbered 928.

As for ‘sloooow’ growth, Kings County remains the poster child for the trend with the state reporting that the population here in 2010 was 152,982 while Kings County population in July 2019 was down by 42- 152,940!

Meanwhile, the Department of Homeland Security and the 2018-2019 American Community Survey indicate a significant decrease in the number of immigrants to California and an increase in people who reported moving out of California during the previous year.

Indeed the state Finance report says net migration to California during the year was a minus 261,084. Births in California in that time numbered 436,682 with deaths put at 280,064.

Better news on the COVID front in the state’s prison system with new cases down to 7700 as of 12/30 compared to 10,700 as of 12/20. Meanwhile, Pleasant Valley Prison case numbers are down to 244 as of 12/28 compared to a scary 1229 as of 12/08/2020.

Hanford’s Central Valley Meat was fined $50,000 by Cal OSHA for not informing employees of possible exposure when coworkers were infected with COVID-19 and for failing to provide face coverings and ensure their proper use. Cal/OSHA opened a complaint-initiated inspection at the facility in Hanford on April 29 and identified violations in the employer’s training procedures and response to COVID-19 hazards. Citations were issued on December 11 with $50,000 in proposed penalties for two violations classified as serious. A new release said “Enforcement of COVID-19 protections at meatpacking and food processing facilities has been a priority of Cal/OSHA given the high rates of positive cases and alarming number of deaths among food processing workers,” said Cal/OSHA Chief Doug Parker. Besides Central Valley Meat, seven other California meat processing facilities were also cited for Covid-19 workplace violations.

The Lemoore campus of West Hills College will get a new 42,429-square-foot, two-story Instructional Center on an undeveloped portion of the existing campus in Hanford. The college has a current student enrollment of 4,600 students and the proposed expansion is anticipated to increase the overall student population by approximately five percent, or approximately 232 students. The building will be used to expand education opportunities in the areas of allied health services, computer science and graphic arts. Construction is expected to begin in January 2023 and end in April 2024. The board of the college will approve the project February 16.

More rain? Central California could get three snow producing storms in a row January 4,6 and 8th suggest forecast models.Keep you finger crossed and Happy New Year!