-July 27,2020-

More retailers declaring bankruptcy 

Ascena Retail Group has filed for Chapter 11 bankruptcy protection. Ascena said it plans to permanently close a “significant” number of Justice stores, along with certain Ann Taylor, Loft, Lane Bryant and Lou & Grey stores during its restructuring. It added that it will be permanently closing all of its stores, across brands, in Canada, Puerto Rico and Mexico.

Men’s Warehouse owner Tailored Brands said Tuesday it is eliminating roughly 20% of its corporate workforce by the end of its fiscal second quarter. It also said it has selected up to 500 of its stores that it could potentially close “over time.” It did not disclose a list of those exact locations.

The announcements come after earlier this month, Tailored Brands skipped a $6.1 million payment to bondholders, triggering a 30-day grace period.

Jobless claims up in California 

California workers filed 292,700 initial claims for unemployment benefits during the week that ended on July 18, up 8,000 from the 284,900 who filed jobless claims during the week ending on July 11.

Gold Prices Hit Record as Dollar Drops

WSJ says gold” zoomed to a record for the first time in nine years as a weakening dollar injected new momentum into a rally driven by uncertainty about the world economy.” The U.S. Dollar Index is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies,often referred to as a basket of U.S. trade partners’ currencies. The Index goes up when the U.S. dollar gains “strength” (value) when compared to other currencies.The good news for US producers, our exports are cheaper to overseas consumers.

Freight train carloads down 16%

The slump in freight transportation carloads continues through  for most goods in the mid July.Here are the latest numbers.

Port shipments down

The Port of Los Angeles moved 691,475 Twenty-Foot Equivalent Units (TEUs) in June, a 9.6% decrease compared to last year’s record-setting June. Six months into 2020, overall cargo volumes have decreased 17.1% compared to 2019.

-July 26,2020-

Big I-5 development plans 2.4 million square feet of commercial space

A draft EIR has been submitted to Kings County for Jackson Ranch, located on the west side of I-5 at Utica Ave. LA-based developers are looking to build a highway commercial center with a major warehouse and logistics component.The site, 7 miles south Kettleman City, is 415 acres with 268 acres of that staying in ag use.

The project’s Specific Plan says they want to create a” fully amenitized rest stop and commercial hub along I-5 that would serve travelers, encourage new employment across a variety of industries and attract a range of complementary commercial uses.”

The developer expects to tap water from the new and fully operational Kettleman City Surface Water Treatment Plant within the County’s right-of-way along 25th Avenue connected by pipeline.

Built in two phases, work is expected to start in early 2021 says Larry Bross, partner in the group.The complex could be a major employer and tax revenue source for the county he says.

Phase One will accommodate up to 161,125 square feet and Phase 2 will accommodate up to 2.2 million square feet of mostly warehousing. Phase One uses include a 10-acre truck stop, a restaurant, service station, and short term resting place for large transport vehicles. The remaining acreage has been divided into smaller parcels to easily accommodate fast food and sit down restaurants, motels, service stations, and an open area for community events. Plans for a small park are included.

Traffic volume of 13.5M vehicles a year pass the site says the application.

The project is the latest large scale development in this lightly populated part of the county blessed with a major highway and plenty of available land. Nearby the Quay Valley project, proposed in 2012, has languished despite promises of building a large, green residential community complete with hyper speed transportation. No  permit activity on this proposed development has been seen in several years.

The  Jackson Ranch project does not look to build homes but hopes to pair a major truck stop with logistics warehouses to serve the Bay Area and LA Basin. Nearby Kettleman City has neither a major truck stop or much warehousing.

The big project requires the completion of the EIR and a general plan amendment.

The County welcomes input and comments regarding the DEIR, which is available for a 45-day public review period beginning June 30, 2020, and ending August 14, 2020.

NAS Lemoore to get $187mil for construction in latest budget

NAS Lemoore is on tap to receive $187 million in next year’s defense budget. The figures were released recently showing that the largest budget item would go to construct a two-module aircraft maintenance hangar addition to existing Hangar 6 in support of F-35C Joint Strike Fighter Fleet operational squadrons.The cost will be $128 million.

More chickens for Kings County

Kings County Planning Commission recently approved a request by Pitman Family Farms to expand an existing poultry farm by 480,000 chickens, the construction of 440,000 square feet of new poultry barns and two additional single-family residences for caretaker purposes. The project is located at 19258 14th Avenue, Hanford.

Kings jobless rate 14.6%

The unemployment rate in Kings County was 14.6 percent in June 2020, down from a revised 15.6 percent in May 2020, and above the year-ago estimate of 7.9 percent. This compares with an unadjusted unemployment rate of 15.1 percent for California and 11.2 percent for the nation during the same period.

The largest increase month over month was in the leisure and hospitality industry that gained 600 jobs.

-July 22,2020-

Several Central California counties saw a dramatic spike in COVID cases as of 7/21 according to state figures. One of the most dramatic was in Kern County where new cases rose to over a thousand after hovering in the mid-100s for weeks. Fresno County also saw an increase to over 500 – double what is was the day before and an all time high.Kings County cases doubled from 48 to 96. In Tulare County we see a similar pattern and all time high of 500 new cases of 7/21. The surge in Tulare County has overwhelmed hospital ERs .Porterville’s  Sierra View hospital reported a 9 hour wait in their ER and Kaweah Delta said that the U.S. Department of Defense is sending a team of 20 military healthcare workers to help the Visalia hospital care for COVID-19 patients.

here are the latest charts

-July 19,2020-

Hotel occupancy climbs in June

Hotels in San Luis Obispo saw improved but still disappointing room sales in June.The City of San Luis Obispo reported  hotel occupancy in the first week of June at just 40.7%. But by the end of the month occupancy had climbed to 66.8% after climbing each week of the month. Paso Robles appears hardest hit with occupancy  at just 35% the first week of June,  climbing to 52% by  the of the month.Morro Bay hotel room sales climbed during the month the as well to near 67% by the last week, just before the holiday. Room rates in Morro Bay climbed from early in the month. Slow hotel sales in SLO are hurting the the city with TOT revenue down 73.6% in May/

SLO airport passengers tip toe back to the friendly skies

San Luis Obispo airport passenger count has improved slightly in May after a low in April . But the number of fliers is still down 85% from a year earlier.The new airport  saw nearly 48,000 passengers in May 2019 and just 7000 this May. What is up this year is freight coming and going  from SLO – up 6.3% in May from a year earlier.

At LAX it’s not much better but the trends are the same. Passenger traffic in May was down 92.4% but air cargo was up 5.4%.

United Airlines announced this week it is preparing to furlough up to 36,000 employees — as much as 45% of its front-line U.S.-based workers — as the coronavirus pandemic ravages the airline industry.

Residence Inn planned for Maddona Rd

The big mixed development on the west side Hwy 101 – San Luis Ranch – is proposing  to build a 200 room, 4-story co-branded Residence Inn as well as Springhill Suites together.The 50 ft building will be on Madonna Rd between Dalidio and Oceaniar on 3.41 acres of vacant land.

Cheese price hits all time high 

Dairy markets report that at least some milk commodities continue to see record high prices encouraging dairy farmers to make more milk and maybe not sell the ranch after all. Block cheddar prices fell as the virus took hold but by May turned around and has not looked back.

 

Lumber rally builds

Lumber prices have increased to 78.30 USD/1000 board feet or 19.25% since the beginning of 2020, according to traders.

During the pandemic, lumber has ben short on supply.

While new home construction is still down more people stuck at home are deciding to fix the place up  or put in a new deck .The remodel and repair part of the lumber market accounts for 40% says an industry source.

Garlic demand on the rise

From ag reports

The boom in home cooking has boosted the demand for garlic, and volume increases show suppliers are up to the challenge.

Import volume in the U.S. for the first half of 2020 is up nearly double from two years ago, and reports from California say growers there plan to pack and ship as much as they can as the season gets under way.

Used car demand is up

Edmunds says  the COVID-19 pandemic could be driving more consumers out of the new market and into used vehicles. IN June there was a shift in shopping behavior not usual for the used vehicle market and could point to more typical new car shoppers entering the fray:

“More consumers are looking for value in their next car purchase due to the economic challenges of the coronavirus pandemic, so the more favorable loan conditions we’re seeing are likely a direct result of more consumers with good credit shifting into the used market,” said Jessica Caldwell, Edmunds’ executive director of insights. “Thanks to a shortage of new vehicle inventory, more automakers and dealers have leaned into promoting attractive certified pre-owned programs, which might be driving more typical new car shoppers into the used market.”

 Oil analyst: Gasoline sales turn lower

Oil analyst Tom Kloza tweeted this week that rising COVID cases nationwide has slowed gas sales. “US gasoline sales at the pump have dramatically tailed off since July 4. Demand destruction percentages in states with COVID case rises has doubled (Texas, California, and others). Meanwhile, refiners are raising runs.”

-July 8,2020-

Despite strong opposition from the Navy, the Lemoore City Council voted to approve a 362 home subdivision on the east side of West Hills College a their meeting July 7. The vote was 3 to 1 with Mayor Eddie Neal voting no.

The project had appeared dead based on inaction at a recant council meeting when they decided not to vote on a second reading approval for the proposed EIR for the big Lennar project.

Urging the the city not move forward were officials from NAS Lemoore concerned the housing development would encroach on the flight path for the air base.The noise issue was a driven home at that meeting,June 16, with the buzz of navy jets during much of the meeting.

In the meantime City Manager Nate Olson and others have been urging the council to reconsider their position and let the project move forward.

A letter from the West Hills College president Kristin Clark urged the city to follow their own general plan that includes housing in this area. “My hope is that the Council will stick with its 2030 General Plan which specifically designates residential housing around the College. Additional rooftops bring additional revenue to the City, and developing west of the 41 establishes a more noticeable footprint from both the 41 and 198, giving more prominence to the City of Lemoore.”

Earlier City manager Olson said the city may face another issue if the project does not move ahead. “ If we don’t follow our own general plan we may be liable for costs and damages” from a developer who has worked on this for years based on the Lemoore General Plan.

Earlier in the evening the council voted 3-1 to place a one percent sales and use tax on the November ballot.

From disastrous to darling, restoration adds luxury to city’s hotel inventory

Visalia, Calif. (June 29, 2020) – Visit Visalia announces the grand opening of The Darling Hotel, a glamourous restoration project in historic downtown Visalia. The boutique hotel, once the annex to the Tulare County Courthouse (c. 1876), has been completely reimagined into a one-of-a-kind property. It officially opens for visitors July 1, 2020.

The hotel will provide a brand-new lifestyle hotel experience in Visalia for travelers visiting Sequoia & Kings Canyon National Parks and other area attractions. The 32 guest rooms, with distinctive style and unique character, take inspiration from the art deco period of the 1930’s and include two 600-square foot executive suites offering the property’s best views. Each guest room features 12-foot ceilings and ample natural lighting.

The rooftop lounge and restaurant, Elderwood, offers 360-degree views of downtown Visalia and the majestic Sierra Nevada mountains, home to Sequoia & Kings Canyon National Parks. The restaurant will offer local, seasonal ingredients that highlight the Central Valley’s agricultural roots.

The Darling is wrapped in the decadence and grandeur of the 1930’s, yet with modern sensibility and warm hospitality. Located in Visalia’s historic downtown, just a block from vibrant Main Street, guests will enjoy boutique shopping, a variety of restaurants, and arts and entertainment.

The project was spearheaded by Visalia-based Courthouse Square Ventures, who purchased the building in 2018, and is led by Visalia native Matt Ainley. The group dedicated themselves, along with local engineers, construction and crafts workers, and hospitality specialists, to salvage where possible the original details of the building and give it new life as a boutique hotel. Naxon Group will manage the property.

Visit Visalia is excited to have this new property, with a story to tell, available to our visitors. As the most robust city just outside Sequoia & Kings Canyon National Parks, visitors will find a variety of lodgingoptions in Visalia open and available.

Visit Visalia is offering a free $50 gas card to travelers who book a 2-night stay on our website at any of our participating hotels with our “Let us fuel your wanderlust” promotion. To qualify, hotel must be booked via VisitVisalia.com/stay. A two-night stay is required, and travel must take place by December 31, 2020. Offer valid while supplies last. For details, rules and regulations, go to visitvisalia.com/Free-Gas-Card.

 

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-June 25,2020-

Real Clear Politics (RCP) Betting Odds changed horses big time in the month of June.Democrat Joe Biden who had been as much as 10 points behind earlier in the year switched places with incumbent President Donald Trump jumping into the lead as of the first of the month and not looking back since. 

One betting house, Betfair, as of June 25 now has Biden favored to win 61 to 36. The RCP average is 58.8 to 37.9.

Earlier this year Donald Trump was the “odds-on” favorite on betting sites.

One betting site offers this narrative on the latest numbers.

It’s important to remember how drastically things have changed for Biden in just a few months. He was a +1000 underdog just to win the Democratic nomination in February. Now he’s a -150 favorite to take the Oval Office and proving to be an elusive target for Trump.

Trump can’t really paint a damming guilty-by-association picture for Obama’s former Vice President considering Obama left office with a 59% national approval rating in January 2017. Trump is at 39% approval in the latest Gallup poll.

Biden is also trending up in key swing states. He’s suddenly a -139 favorite in Florida and even with Trump at -118 in North Carolina. He also holds strong leads in polls released today in states he’s already favored in: Michigan (-500), Wisconsin (-167), Arizona (-162) and Pennsylvania (-200). Trump carried all six of those states in 2016 and is losing his grip in some former GOP strongholds.

Boring sounds good

Biden hasn’t generated nearly the same amount of excitement the Obama campaign created in 2008. He hasn’t taken any big risks, especially in regards to public events amid a pandemic. He’s just running a relatively standard, boring campaign at a time when many Americans are simply striving for a return to standard and boring business as usual.

One more surprise today. A Fox News poll shows Biden ahead of Trump inTexas by one point. Here are todays polls from RCP.

 

-June 24,2020-

 Visalia Biofuel company EdenIQ still operating

A fixture in the Visalia Industrial Park, biofuel company EdenIQ has relocated from its large lab and production space at 2505 N Shirk and downsized says VP Dan Michalopoulos. Their new smaller location is at 6910 W Pershing.Their old location is for lease and its equipment has been sold off.The company has been in operation in Visalia since 2008. Pictured in better times in 2012 dedication

The Visalia operation employed 50 but now they are down to 10 he says. Low gasoline and ethanol prices, made worse by the COVID shutdown, have hurt the company sales of patented products and technology aimed at biofuel producers but “we’re still operating” says Michalopoulos. The focus is on the process to make cellulosic ethanol with a low carbon rating.

Low carbon fuels can be rewarded in the marketplace by state and federal credits to promote cleaner biofuels from corn fiber. But with many ethanol plants shuttered earlier this year nationally and in California, their customers were not  buying. EdenIQ closed their Nebraska office in December.

Advanced Food Products adds warehousing in Visalia in new building

The French-owned company, Advanced Food Products(AFP) is relocating its warehouse from 900 Plaza Dr to a larger space in the new DDG industrial park building at Plaza and Riggin – 2025 N Plaza.The 255,000sf building is just being completed now.

Despite COVID worldwide, AFP Food Products are enjoying a surge in consumer demand. Non refrigerated “aseptic” products are “ flying off the shelves” says one company source increasing the need for warehouse space. AFP makes package cheeses, sauces, puddings  as well as Anderson Pea Soup in Visalia. Their plant, the former Real Fresh facility on Noble at Ben Maddox, lacks room for warehousing  The company used to be called Bongrain but changed it to Savencia Fromage & Dairy. 

Calls to management were not returned.

Food items that are aseptically packaged can stay fresh for six months or longer without preservatives. Manufacturers carry out specialized processes to sterilize contents and container separately. They are then combined in a sterile environment to prevent contamination by microorganisms. The demand for aseptic packaging solutions in the food and beverage sector has increased because of the rise in demand for packaged food.

Concerns over COVID-19 may be increasing demand for packaged food with long shelf life to avoid frequent shopping while buying certain categories and packaging types like UHT products in heat-treated aseptic packaging that is sterile.

As for the Visalia Industrial Park, new space is  being filled even in a worldwide pandemic.  Fresno’s Diversified Development Group (DDG)  built a 244,280 square-foot concrete tilt-up building at 2520 N Plaza Dr. and a second 120,000 square-foot building next door at 9105 W Riggin Ave this winter. Both are located at the southeast corner of Riggin and Plaza. The site is across the street from the huge 450,00sf United Parcel Service hub under construction and nearing completion.

On the same piece of dirt, DDG plans two more buildings, 188,4000 square feet and 144,000 square feet, all clustered on 35 acres.