Category: Central Valley

The foothill town of Three Rivers will get a new 12ft by 8ft  gateway monument sign saying ‘Welcome To Three Rivers’ soon with plans to build the sign going to the Tulare County Board of Supervisors this week.

The project is being carried forward by the Three Rivers Foundation. The sign will be just north of the Horse Creek bridge on CalTrans property along Hwy 198 and could be erected as soon as next month.

Tom Sparks of the Foundation says a group of vocational students from Visalia under the direction of David King will both make and erect the new entrance sign. The project has been in the works for 2.5 years say Sparks.”It’s been a bit arduous but the people from CalTrans have been just great.”

The old entrance sign was further down 198 near Lemon Cove. That sign got moved some time ago to the Slick Rock area.But now this sign will be relocated next to the TR Historical Society further up 198.The group is acquiring 2.5 acres that they will expand their museum/visitor complex operation on.

Arguably the gateway entrance to Sequoia National Park the town’s name comes from its location near the junction of the North, Middle, and South Forks of the Kaweah River.

Visalia shopping center owner DBO Development is in advanced discussions with three movie theatre chains to open a multi-screen theatre just east of Mooney at Cameron on the south end of town to anchor the next phase of their Packwood Creek Shopping Center. “We expect to have a commitment from one of the chains by February” says Patrick Orosco of DBO.

Orosco has been marketing the next phase of Packwood Creek – Visalia’s largest retail complex – called The Grove at Packwood Creek, a 25 acre,278,300 sf center on both sides of Cameron Ave with the help of Fresno-based Commercial Retail Associates. On the south side of Cameron, Orosco hope to land big box national tenants facing Costco and on the north side they hope to bring in a large cinema complex. Orosco confirms they are talking to Regal Cinemas who already operates both movie theaters in Visalia.

Orosco says while discussions with movie theater operators are well along none of the other potential retailers or eateries listed in the marketing materials are signed up yet and some are already likely to locate elsewhere if they come to town.

That includes Pollo Loco who recently filed a plan to locate on south Mooney next to BevMo. “This is like a wish list of prospects who might be interested incoming to town.” They include the fast food hamburger chain Five Guys,an East Coast favorite who is expanding in California.

The marketing materials,done in August for the ICSC trade show, also include Burlington Coat Factory who is now expected to locate next to the new Walmart (the former Costco) on South Mooney,not a part of the Packwood Creek center.

Orosco says the key anchor for The Grove will be the megaplex – well suited for the site offering acreage for the hundreds of cars need to park at one time. He maintains that Visalia is losing out to the Tulare’s Galaxy Theatre next to the outlet mall in Tulare because it is far newer than the Sequoia Mall 12plex, a 40,000 sf divided theater inside the mall with no visibility,no other nearby nightspot ( Borders closed in 2011) and very small theater sizes.

Built in 1973 the 353,000 sf Sequoia Mall is anchored by only Sears and Hobby Lobby along with the Regal move complex. The place has seen little new investment in years. A 2012 retail consultant report to the city describes the mall in these unflattering terms.

“While well located at the highest traffic volume intersection in the market and near other strong retailers, the oldest development, the significantly vacant and underutilized Sequoia Mall, is functionally and competitively obsolete. A Hobby Lobby replaced the former Mervyns’ store in 2011. The former Borders store, which offers visibility to Mooney Boulevard, remains vacant as does the former Ross Dress for Less store and other facilities that do not have street frontage.”

Reviews of the movie theater in the back area of the mall posted on a social media website earlier this year describe the experience of going there in vivid terms.

“HORRIBLE! My god the seats were torture. Felt like were in a Middle ages torture chamber, it was all we could do to sit through the movie. In fact since there were only 11 people in the whole theater (now we know why) I got up and stood at the back for about 20 minutes to get some relief from the agony of the chairs. We will NOT be going back to this theater, in the future we will either go to out of town or not see the movie if it means going here. And they have lousy candy selections too!”

Even the candy can’t catch a break.

“I think people agree the Sequoia Mall movie theaters are not a competitive model” sums up Patrick Orosco, the main reason why he  is confident a competitor –  a new state of the art megaplex on the southside of  town is likely to gain traction.

Other than the Sequoia Mall – Downtown Visalia has a 10plex also operated by Regal that works extremely well in the Downtown with its big variety of restaurants within walking distance encouraging residents to make a night of it and boosting overall traffic.

Orosco says helping to move The Grove project forward is both the improving economy and renewed demand for retail space in Visalia as well as the fact this 25 acre center is already zoned properly within the city.

But Orosco has seen some tough marketing years for this property  during the four years of the recession not only due to the economic climate but because this land has no Mooney frontage. The big draw is Costco east of the big Mooney strip behind Lowes that attracts hoards of shoppers each day.The new theater would be located right across the street from Costco. As a destination retail use itself – like Costco – the new theater is likely to draw more eateries nearby as well as help sustain the half dozen major restaurants like Mimi’s Cafe and Olive Garden in the Packwood center now. For the Oroscos it would bolster the overall rent values at their center.

Would the new megaplex hurt Downtown? Orosco thinks no but others might disagree.

Former city manager Darrel Pyle snagged a job in Coalinga after leaving Tulare in 2010 but now has been hired to run the city in Hanford,a little closer to his Visalia home. So the big news in Hanford is that the city is going to get a Costco. ”We expect them to be open by spring 2014”  figures Plye, noting the EIR on the shopping center at Hwys 198 and 43 will take a year to complete. Pyle says another biggie for Hanford is the proposed route and station site for high speed rail.”I got a call from the head of the California High Speed Rail Authority and he told me the train is going to come,either to the east of Hanford or to the west.” Pyle adds “entrepreneurs are already out there making property acquisitions” and that he suspects the CHSRA will select the eastside alignment. That would put the station about a mile from the new Costco.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

When  it comes to the fiscal health of the City of Visalia the major issue is the local economy mayor Amy Shuklian reported in the State of The City presentation this fall. ”The major issue facing Visalia is the general economic contraction. To put into context the severity of the recession, consider that in the past 30 years, sales tax has not had a major decline until 2008.” But in the past several years ” this decline is dramatic and severe. Economic activity dropped, unemployment went to double digits and businesses retrenched.” Shuklian summed up.

Now comes the latest sale tax revenue number that for the first time in four years – offers what looks very much like a rebound.

City finance chief Eric Frost says based on the most recent quarter  cash receipts for the April/May/June quarter, the city received $4.9 million. That compares to $4.2 million for the same quarter in 2012, $3.8m for the same time period in 2011, $3.75m in 2010 and $4.46m for the quarter in 2009, just as the recession was kicking in.

If the latest quarter is a sign of an upward trend, the city will average $5 million a quarter that would add up to $20 million a year. The interesting part is that our frugal and conservative city has budgeted about $16.4 million for this fiscal year that runs July to June says Frost.

“This latest $4.9 million quarter is the largest on record” adds Frost.

Is Frost celebrating? Not yet, but he is dusting off the party favors.

“I will be able to tell you a lot more after our next report comes at the end of December” says Frost, for the period July through September. ”As you can see we have had some nice increases lately which hit or may exceed our budgeted sales tax. All good news compared to what we have had for the last 4 years.”

Council member Warren Gubler who opposed a plan to raise the sales tax percentage in Visalia this summer, a decision put on hold, says the latest numbers ” sound like at least we are heading in a promising trend.” Gubler, who when we talked, says he just returned from an upbeat Downtown realtor’s conference and saw a record crowd a few days ago at the Christmas parade. ”I think people seem more positive and ready to open their wallets for the Holidays” suggests Gubler.

“Mooney’s on the Move” adds the State of The City report pointing to the big shopping strips new players. And car sales are up as well.

Visalia’s general fund gets money from sales tax and property tax that is also finally heading higher.The median price of a home in town is up about $25,000 since April says real estate website Trulia. However, ”there is long lag-time on property tax revenues” says Frost. In 2010- the  city budgeted $18 million from property taxes and for 2012-13 the budget is anticipating $18.4 million.

One more related issue – the big pharmaceutical distributor VWR, now open in Visalia ,was the Bay Area City of Brisbane’s largest sales tax generator but has indicated to the City of Visalia it would not report sales from here even though this is now their West Coast headquarters. Using our town as their point of sale would give Visalia a big boost. How about it guys – since we were dragged into your union dispute and had to defend in court!

Statewide, sales tax collections are also improving. The State Board of Equalization collected $1.86 billion in general fund sales and use tax revenue in October, surpassing the state’s $1.74 billion budget estimate.

The latest issue of the National Geographic Magazine (December) features a cover story on climbing Sequoia National Park’s Big Trees to study and measure them. One recent study led by researcher Steve Sillett reports that a new measure finds the 3200 year old President Tree is ranked number 2 largest sequoia behind the Sherman Tree. Both these trees are within walking distance to each other in Giant Forest. The new measurement moves the Grant Tree in Kings Canyon to number 3.

The article’s author David Quammen sums up the piece.” A tree-climbing scientist and his team have learned surprising new facts about giant sequoias by measuring them inch by inch.”

Quammen  points to the  longevity of these trees noting that man has made his mark, at first in a negative way. “Another factor that can end the lives of big trees, of course, is logging. Many giant sequoias fell to the ax during the late 19th and early 20th centuries. But the wood of the old giants was so brittle that trunks often shattered when they hit the ground, and what remained had little value as lumber. It went into shingles, fence posts, grape stakes, and other scrappy products. Given the difficulties of dealing with logs 20 feet thick, broken or unbroken, the trees were hardly worth cutting. Sequoia National Park was established in 1890, and automobile tourism soon showed that giant sequoias were worth more alive.”

The photos in the article are done by Michael Nichols.

Costa Mesa restaurant chain El Pollo Loco has filed preliminary plans with the City of Visalia to open a location on Mooney Blvd.The popular fast food chain that offers grilled marinated chicken and other Mexican foods filed a plan to locate a store just north of the new BevMo in front of the new WalMart on South Mooney.
El Pollo Loco would buy the vacant lot on Mooney from Cal Trans who bought the land to widen Mooney some years ago.
Juan Francisco Ochoa started the restaurant in Guasave, Sinaloa, Mexico, in 1975. By 1979, the chain had expanded throughout northern Mexico. In 1980, its first U.S. restaurant opened in Los Angeles, California, at 503 Alvarado Street, near Sixth Street. In 1983, the American restaurants in the chain were acquired by Denny’s, with an agreement that the Ochoa family would continue to operate the restaurants in Mexico. American Securities Capital Partners acquired El Pollo Loco in 1999 and sold it to current owner Trimaran Capital Partners in 2005.
In the U.S., the El Pollo Loco chain operates in Nevada, Arizona, Utah, Texas, California, and Illinois.

Will the West Coast base for the Navy’s version of the Joint Strike fighter planes be located in Lemoore or alternately in El Centro near San Diego? San Diego is, after all, the home base for the Pacific fleet.

There is one local guy who knows – but he is not saying. That’s NAS Lemoore base commander Capt Eric Venema who advises he got a peek at the draft environmental impact statement the other day that is being circulated through command channels that offers the Navy’s preferred location.

Drum roll please. Like I said he’s not saying.

“The draft document should be out in January”says Venema,followed by a 45 day comment period. A final Record of Decision is not expected until December 2013. The environmental study started in January 2011.

The plan calls for a one to one replacement of the jets used currently on aircraft carriers with the latest jets that use stealth technology.

The new planes being made by Lockheed Martin would replace an aging fleet of carrier-based F-18 Hornets which the Navy eventually plans to phase out.  The US military expects to buy 2,443 aircraft to provide the bulk of its tactical airpower for the Air Force, Marines and Navy in coming decades with the Navy last in line. The Navy’s version is called the F-35C.

Asked by phone if he thinks the Navy will pick Lemoore over El Centro, former Kings County supervisor Tony Oliveira quipped “I couldn’t hear you, I had a jet in my ear” since the Oliveira homestead is close to the base flight path just west of Lemoore.

“I do understand they have made the choice to come to Lemoore.We better hopes so.This is a $1 billion decision.”

A 2008 economic assessment study found the base contributed $161 million in labor income annually to the local economy and counting the spinoffs – has a total economic impact of just under $1 billion every year. The total population associated with the local base that straddles Kings and Fresno Counties is around 44,000 says the study.

Oliveira says if the Navy selects El Centro that would be “pretty much the end of the base” since the squadrons who fly the upgraded planes are the same people with new hardware. Most of the Kings County’s personnel and support services would transfer to southern California. El Centro boosters are eager as well.

The Navy established the Kings County base in 1961, the newest West Coast base.NAS Lemoore now hosts the Navy’s entire west coast fighter/attack capability.

“If the Navy doesn’t chose Kings County I would hate to be at the next BRAC congressional hearing.” suggest Oliveira.

El Centro might be closer to San Diego,perhaps a few more days of sunshine, but the Lemoore location has plenty going for it despite the fact the sea is nowhere in site.

Unlike almost every Navy base in coastal areas this base is not threatened by rapid urban growth. Surrounded by thousands of acres of open farmland there is little to impede the jets coming and goings.If the ocean is not next door – it is a short jaunt at 1500mph as is the open desert for training purposes.

To keep urban users away the base with local jurisdictions went through a joint land use study and agreement to keep the flight path clear in the future and minimize concerns that the new jets will be a little noisier.

Even now,Venema says they are looking to cut water use on their land considering installing solar power arrays on some of the land that would both generate green energy, cut water use while minimizing potential bird strikes. The bird issue is a big one with the idea to not offer a habitat conducive to bird prey like rodents.Right now most of the protective land around the base is farmed.But there is a water shortage.

Add all this up and the Navy appears to be making a bet on NAS Lemoore having recently transferred an East Coast squadron here and  in the process of transferring two more, each a 500 person move. Capt. Venema says all these units will be in place by 2014. A new search and rescue helicopter squadron has come to the base for off- coast rescue if need be. Clearly the US Navy is invested here.

The Kings County base is a training site as well as base for the planes ,the pilots and families when they are not at sea as they are right now – on duty in the waters of the Middle East and around the world.

Navy Times Weighs In

There is some optimism that this Central Valley base will be selected as the Navy has spent so much time and money on this location establishing it as their key West Coast base.

Here the Navy Times reports the beginning of the 2 year study in January 2011 offering what they think will happen.
”The likely home for seven active-duty F-35C joint strike fighter squadrons and a training squadron will be Naval Air Station Lemoore, in California’s Central Valley, home of Pacific Fleet’s F/A-18 Hornets and Super Hornets. But the Navy also is weighing basing the squadrons at El Centro Naval Air Facility, a desert airbase two hours east of San Diego that’s the winter home of the Navy’s “Blue Angels” flight demonstration team.
The Navy plans to begin in 2015 the 10-year process of transitioning from its existing 100 F/A-18 Hornets in the Pacific Fleet to 109 F-35Cs. The service also wants to establish the training squadron, known as the fleet replacement squadron, in 2017 and co-locate it with other fleet squadrons.
“In order to maximize efficiency of support facilities, simulation devices and on-site support personnel, the Navy intends to base all of its West Coast F-35C aircraft at one location,” Navy officials said in a Jan. 27 announcement of plans for to complete an environmental impact statement.
The Navy narrowed down its list of potential home bases from 134 military air facilities in the continental U.S. and found that Lemoore and El Centro “best meet Navy F-35C requirements.”
Some Doubts
Before we get too confident – consider the US Navy may or may not be fully committed to the F-35C. A recent article quoted Admiral Jonathan Greenert’s opinion that the high cost of stealth technology, the budget crisis in Washington and the success of unmanned aircraft in a changing military landscape could spell a change in attitude on investing in the planned purchase of 480 F-35Cs.  100 of those planes would be stationed here.
“In his column, Adm. Greenert does not mention the fighter by name, but he does note the limits of stealth technology. And the Navy is buying only one stealth aircraft — the F-35.”

Kaweah Container Inc has purchased the 174,000sf former Alcoa/Reynolds plant on Goshen Ave in the Visalia Industrial Park.The 1970s built facility on 12 acres has been vacant for 6 years.

President of Kaweah Container Robert Reeves says the large facility is being remolded and equipped to make corrugated boxes mostly for the food industry.

Food making and shipping is big business in Tulare County and Kaweah Container has been on roll to capture more of that business.

“Since I came to the company in 2004, Kaweah Container has grown from around 17 employees to 170 ” says Reeves. The firm has facilities in Cutler,where if originated next to the Wileman Bros and Elliott packing facility – one now in Livermore where it makes boxes and Visalia – where they had leased a 77,000 sf office and distribution center. That building also housed the company’s corporate offices. The lease is up early next year.

“Now that we have purchased the Goshen Ave building we have a game plan to expand rapidly ” says Reeves – adding about 75 jobs. The schedule includes opening the new plant in January and being fully operational by mid-year.

“Our major customers come from the dairy, Mexican food and other frozen food business” says Reeves although the company also make boxes for field ag use as well.

The new facility will also be the corporate office for both Kaweah Container and parent company Wileman Bros & Elliott. Reeves says the new building will house around 100 hourly workers and 30 to 40 administrative staff who will relocate from the leased Visalia facility.

Helping to make the purchase possible is the sale of Wilman Bros & Elliott’s CCPI juice plant in Lindsay announced recently says Tommy Elliott.”We wanted to use the capital in what we see as our core business” he says. The firm has its roots in tree fruit and citrus growing in Cutler-Orosi and Visalia.

Tulare County has a major presence in the container and packaging industry including the number one player in the business – International Paper – with a big cup making plant in Visalia employing 320 and International Paper’s Weyerhaueser division employing 150 in Exeter at a corrugated box making plant.

Tulare County EDC manager Mike Washam says they will host a ribbon cutting ceremony for Kaweah Container in December. Washam says when Kaweah bought the building,a temporary tenant – GreenTech Inc, moved its small operation to a vacant building in Sultana.

Since the Goshen Ave plant closed in 2007, Reynolds sold the property to an investment group who sold it this month to Kaweah Container. The property had been on the market for $9.2 million in 2010 but sold for about $5.3 million.

Handling the sale were Doug Burr of Burr Commercial, Arnel Koster of Schuil & Associates and Matt Graham of Hyde Commercial.

Doug Burr says this year industrial property is selling for $20 to $25 per square ft. “The good news is that 90% of the buyers this year have been owner/operators” instead of just investors.

That means active businesses are filling empty buildings.

A Prop 84 grant from the State of California will allow the expansion of the 322 acre Kaweah Oaks Preserve in coming months. According to to a grant notice the Sequoia Riverlands Trust will receive $410,181 to help acquire approximately 22 acres of riparian habitat adding approximately one-half mile of creek frontage along Deep Creek to the Kaweah Oaks Preserve in Tulare County.

The property long sought by preservationists is just to the north of the current preserve line and will enable to boundary to follow Deep Creek along the preserve’s northern edge (see map).The property is owned by the Hesse family and is the triangle piece just north of the current yellow boundary.

The original preserve was purchased in 1983.Crisscrossed with several tributaries of the Kaweah River the oak studded preserve is a popular outing destination just east of Visalia.

A formal ceremony is set for Sacramento November 28.

In 2006, California voters passed Proposition 84, the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act, which authorized the Legislature to appropriate funds to benefit river parkway projects.

The California River Parkways Program, a competitive grant program administered by the secretary for natural resources, awards funds to public agencies and non-profit organizations to develop river parkways in their communities

Exeter’s Monarch Ford car dealership is expected to change hands next month if all approvals go forward.

A legal Bulk Notice of the pending sale was published November 15 saying the sale was anticipated to be complete by December 5.

The notice says the buyer is Michael D. Moore who has formed a corporation called Exeter Motors Inc. Mr Moore is the former owner of Diablo Ford in Pittsburg California in the Bay Area. That dealership just changed hands October 29.

Monarch Ford owner Paul Deathriage confirmed the deal but said ”I’m not in a position right now to talk about the pending sale due to factory restraints but after December 3rd I would be happy to speak with you after the buyer gets approved. I hope you can understand the position I’m in.”

Mr Deathriage’s father Paul Sr. founded Monarch Ford in 1983 with his sons Paul and Mike completing a nearly 30 year stretch as the local Ford dealer located in Downtown Exeter. The D Street dealership is likely the largest sales tax generators for the city and employs around 30.

Monarch advertises that it” is the only Dealer in Central Valley in California to be awarded the 2011 Presidents Award. This award is for outstanding Customer Satisfaction. When all Dealers pay the same price from Ford why not deal with a proven leader in Customer satisfaction. Monarch Ford is a 11 time winner of this award.”

Monarch also has a used-car yard and offers automotive repair services.

After a few tough years, the new car business is on the rebound in 2012 and Ford sales in California are up 14.5% in the latest quarter according to the California New Car Dealers Association. Ford enjoys the top selling full-size pickup in the nation in the Ford F-Series with a one third market share in this category in the Golden State.

Sources say the new owner is considering a name change for the small town dealership.