Category: Central Valley

November 12,2014

Holiday Inn Express Proposed For Visalia

A Bakersfield developer is proposing to build a Holiday Inn Express at 5625 Cypress just off Akers in Visalia. The applicant, is Alfred Chang,president of Shangrila International, a real estate developer. He is listed as the property owner in a preliminary application filed with the city this week.
The project is a 60,000sf, 5-story hotel on just under 2 acres near the Adventure Park. Visalia has just under 1000 hotel rooms.

Pet Food Company Adding Huge New Warehouse

Perfection Pet Foods is expanding again seeking a permit to build a 143,225sf warehouse  in Visalia next to their manufacturing plant at 1111 N Miller Park Ct. The company filed a site plan review this week with the city. Just last week we reported the company was opening a new vitamin mixing plant in a vacant 70,000sf facility at Doe and Shirk, the third manufacturing plant in the industrial  park associated with owner Western Milling.

LoBue Adding Solar Panels

Lindsay-based LoBue Bros Citrus is adding just under a half megawatt of solar panels valued in their permit at $806,556. Coldwell Solar Inc who has done about 5 solar projects for ag businesses in Tulare County is doing the work at 201 S Sweetbriar.

November 11,2014

Courses Could Be Offered In 2016 – Seeks “Community Provided Facilities”

Marymount California University is a liberal arts institution offering associate, bachelor’s and master’s degrees and serving students in three California communities: Palos Verdes and San Pedro in Los Angeles County and Lucerne in Lake County.

Not to be confused with another Catholic university – Loyola Marymount, Marymount California is a 4-year and graduate level college – an independent, Catholic, coeducational, and residential university.

Now the college, on a new mission to establish multi-site campuses in the state, is looking at a location in the San Joaquin Valley, in Visalia, a city of 125,000 that currently has but one college – evangelical-based Fresno Pacific – offering upper level classes.

“After a community meeting held in Visalia October 23 we are ready to take the next step toward establishing a 4-year higher educational program in Visalia” says Marymount board member Bonifacio (Bonny) Garcia, J.D., who works as the City Attorney for the City of Delano.

Garcia was urged to consider Visalia after talking to friend, long time educator Dr Bob Aguilar of Visalia. Dr Aguilar set up the community meeting October 23 at the Visalia Holiday Inn inviting about 40 community leaders to attend to hear Mr Garcia as well as president of the college Michael S. Brophy, Ph.D.

“We felt we got an excellent reception” says Dr Aguilar who explains the college is exploring the possibility of a campus here if the right formula can be found.

This week college president Dr Michael Brophy said the college was ready to move forward on a collaborative study.

Priority One

Visalia has hungered for a four-year college for decades. Visalia City Council member Greg Collins who attended the community meeting stood up and recounted that “for 23 annual city council strategy sessions held early each year to set priorities – bringing in a four-year college has been number one on the list every year.”

“I agree this would be just wonderful for Visalia” says Council member Warren Gubler who  attended the meeting. “It could start out small and go from there” he figures.

Attending the meeting as well were Visalia City Manager Mike Olmos, Jim Vidak Tulare County Dept of Education head,members of both the Hispanic Chamber and Visalia Chamber as well as COS and VUSD leaders. Ernie Hernandez who works with United Way was in attendance.
“There will be more next time” says Aguilar who said he was asked how he got all those community leaders in one room.

“With the need here for a four-year education opportunities I would say both for Marymount and for the community – Visalia is in the sweet spot” reflects Marymount board member Garcia. “This looks like a win-win.”

Multi-Site Campuses

The college’ main campus is located along the coastline of Rancho Palos Verdes, California on 26 acres.The institution is accredited by the Accrediting Commission for Senior Colleges and Universities of the Western Association of Schools and Colleges.

In 1968, the Religious of the Sacred Heart of Mary established the Marymount California University.In 1975, they transferred responsibility for the University to a lay board of trustees. In summer 2011, Marymount California University opened the Waterfront Campus in San Pedro, Los Angeles.

Just last year Marymount College announced that it was changing its name to Marymount California University (MCU) to “reflect the gradual transformation of the 45-year-old institution of higher education to a future multi-site institution with undergraduate and graduate programs” according to a press release.

Potential For Classes In 2016 – Study In Works

As of this week the college is ready to make their plans public. University President Brophy offered the following perspective in an email sent to this reporter November 11.

“ Based on our experience in establishing an extension campus in Northern California (Lake County) MCU would like to lead a study of the Visalia region’s need for a four-year and graduate degree programs. This study will include working in partnership with your excellent community colleges, College of the Sequoias and Porterville Community College. The study will provide regional leadership with the information it would need to commit to hosting a four-year university like MCU in community provided facilities as early as 2016-2017.”

“Resourcing this study would be important, so our proposal would include the estimated financial investment the region would need to make to support a thorough and thoughtful study.”

“Secondly, Marymount California University will be preparing a proposal to deliver a Professional Leadership Graduate Certificate Program for regional educational, not-for-profit and business leaders. This is envisioned as an 18–month program that provides working professionals with the opportunity to study leadership through four graduate courses that will be delivered in a hybrid fashion by MCU professors, mentors and local professional and business owner which they would pursue action research projects that would enhance the region’s educational, not-for- profit and business programs and initiatives. The goal would be to provide Visalia area leaders with access to best practices in leadership and mentors who have made a difference in their community” concludes the email.

With some 63 percent of the county population being Latino,it is not surprising that the Catholic religion is by far the largest denomination in the county with over 100,000 active participants according to multiple data sources.

“I expect we will get students from all over the region “ says Bob Aguilar.

Garcia notes Visalia’s location helps make it an attractive candidate for a location for Marymount given the “cultural mindset” that works to keep offspring closer to home in the Hispanic culture. “Unlike almost any community of its size Visalia has few 4-year options. We have kids ready to transfer from COS but if they want to attend Fresno Pacific they must wait till they are 21” he adds.

“There is just a huge under served population here.”

Just how student classes could be accommodated near term is the key issue with the college apparently ready to offer the instruction but counting on community, government or non-profit help to provide facilities.That could happen if there is some surplus space,not being used. This is the model used in founding the Lake County campus says Garcia.

Marymount California University is a Catholic institution that welcomes students of all faiths and backgrounds into a quality, values-based education.Their website says “ We foster a student-centered approach to learning that promotes the development of the whole person. In the spirit of our founders, the Religious of the Sacred Heart of Mary, we challenge our students to pursue lives of leadership and service.”

A profile of the college says their student body,about 2000 strong, is 56 percent female and 44 percent male  with 44 percent of students identify themselves as Catholic. Students originate from 23 states and 26 countries and 96 percent are full-time students seeking associate’s, bachelor’s and graduate degrees. Marymount’s student to full-time faculty ratio is 17:1  with 114 faculty members and 115 staff members. The average class size is 17 students.

Dr. Aguilar and Dr. Juan Lopez will continue to update community leaders of the college status as ongoing planning steps develop. A second community meeting is likely next month.

November 10,2014

Judge Denies Injunction In Dispute Of Beer Distributor vs Visalia Restaurant – Both Use The Name “Sequoia”

Tulare County Superior Court Judge Melinda Reed denied beer distributor Sequoia Beverage’s motion for a preliminary injunction against Sequoia Brewing Company Bar and Grill from using the name Sequoia. The Fresno eatery seeks to open a new location on Main Street in Visalia soon.

The judged said November 10 in a tentative ruling that she would deny the Visalia beer distributor’s claim adding that no great harm would be expected to their distribution business that sells mainly Anheuser-Busch products.

“…The distributor contends it will be greatly injured because the use of the restaurant’s name “will denigrate the substantial goodwill that has been generated by the considerable investments” the distributor has made in advertising and marketing for several years. However, other than submitting information of its’ gross sales and advertising costs, the distributor has presented no specific facts through declaration of third persons, or otherwise, showing its substantial goodwill will be denigrated if the restaurant continues to use its present name. Indeed, it is unclear how the restaurant would unlawfully benefit from the wholesale distributor’s advertising of its products given the different nature of the market each company serves.”

Meanwhile the judge notes that the restaurant would likely suffer harm if it could not use the name in Visalia they have used in Fresno for over a decade.
“On the other hand, the restaurant has shown it is likely to be harmed if unable to use its existing name that has good will in Fresno County. The restaurant reasonably believes its name will be of value in a Visalia restaurant and hopes to capitalize on the success of its Fresno restaurants. In short, this is not an entirely new use that can be easily addressed by a change of name.”

Further Judge Reed reasoned the public would not likely be “confused” over both firms using the name Sequoia given that they trade in different markets.
Indeed there is probably a dozen companies around Visalia that use the name Sequoia to sell cigars, ride the bus,get health care, buy printing,go the mall, get a house built, eat a sandwich or drink cider with little public confusion. Sure,they both sell beer but the beer drinkers are likely not bewildered.

“As to public confusion, the names of both businesses share the words “Sequoia” and “Company” but “Sequoia” is the only significant word which is exactly the same in both names and its use is common in Tulare County based upon the county’s location to Sequoia National Park, Sequoia National Park, and Sequoia National Monument. Moreover, as previously noted, the manner of usage appears to be completely dissimilar given the different markets and customers each business serves. In that regard, unlike the distributor, the restaurant’s name identifies it as a “Bar and Grill.”

The ruling concludes finally, the distributor has not submitted any evidence that the restaurant’s name “contributes to an aura of deception” or that the restaurant has committed any acts “calculated to enhance the appearance of similarity, or unfair or fraudulent business practices” which tend to cause public confusion.”

“ Accordingly, the distributor’s motion for preliminary injunction is denied.”

Earlimart Subdivision Could Add 190 Homes

County Planning Commission will hear a plan November 12 to build 190 homes in a multi-phase subdivision on 45 acres at the southeast corner of Road 128 and Washington Street in Earlimart.

November 5,2014 –

The City of Hanford city council is expected to approve an expenditure this week to comply with a State Water Board requirement that they must immediately chlorinate all their drinking water.

The council is  being asked to approve  a contract for almost $800,000 to Tellstar Instruments after a series of tests showed Total Coliform was higher than allowed.A staff report says the city began having Total Coliform failures in June of this year. At the time, there were many new projects connecting to the City water system.

“ We believe that the contamination was caused by poor workmanship and care in connecting to the water system” concludes the staff report.

City staff worked to flush the system and could not clear the contamination. Subsequently, the State Water Resources Control Board required the city to implement their emergency temporary chlorination program in an attempt to remove the contaminants from the system. “Staff have been unsuccessful, without the use of chlorination, to provide water that meets the Total Coliform Rule.”

The city has now received notice from the State Water Resources Control Board that they have violated the Total Coliform Rule for their domestic water system for three months straight and are “now required to provide continuous chlorination.”

Funds to pay for the system come form city reserves. No word on how or if the city will seek damages for the extra costs.

October 30 2o14:

Marymount California University is a liberal arts institution offering associate, bachelor’s and master’s degrees and serving students in three California communities: Palos Verdes and San Pedro in Los Angeles County and Lucerne in Lake County.

Now the private college, on a new mission to establish multi-site campuses in the state is looking at a location in the San Joaquin Valley, in Visalia, a city of 125,000 where only Fresno Pacific offers limited upper level classes.

The county has some 63% Hispanic population with few local higher education opportunities.

Marymount is a 4 year and graduate level college – an independent, Catholic, coeducational, and residential university. The college’ main campus is located along the coastline of Rancho Palos Verdes, California on 26 acres.The institution is accredited by the Accrediting Commission for Senior Colleges and Universities of the Western Association of Schools and Colleges.

Watch this space for the scoop – coming in the next few days……

Lindsay Merchants Would Lose All Highway Frontage

October 28,2014

CalTrans is proposing to straighten the infamous curve on Hwy 65 northwest of the city of Lindsay making the expressway safer but leaving Lindsay merchants who enjoy state highway exposure now – a mile or more away from the action.

CalTrans will offer the compromise plan this week to the Lindsay city council after many months of negotiations looking to limit the impact on Hwy 65 merchants and city sales taxes. As can be seen from the map the realigned highway would veer north starting to the west of Lindsay’s commercial area (at Lindmore) and head toward Exeter reaching the Spruce Ave alignment.

The highway would pass through farmland, mostly oranges, northwest of Lindsay and south of Spruce.  Virtually all the businesses including the Savemart shopping center on Hwy 65 now would then be accessed by a frontage road to connect to visitors and travelers. A signalized intersection at Hermosa and Hwy 65 would connect the town to the highway (see yellow circles on map). The city’s current highway businesses would still be connected by a frontage road.

‘This may be the best we can do” says city council member Pam Kimball.”At least we have a frontage road.” Council will get a chance  to sound off on the tentative plan when they meet Tuesday October 28. It is likely going to be another year before a formal plan is offered for public review say city planner Bill Zigler.

Earlier alternative designs were opposed by the city because they offered poor access for current highway businesses.

Exeter faces the same prospect when Highway 65 is realigned to Spruce Ave, as part of a later phase of the same project, in coming years as travelers no longer pass through the heart of the community (on Kaweah Ave) but a mile to the east – along its eastern edge. CalTrans says to expect construction in 2019.

Visalia To Get Five Guys Burgers Store

Visalia will get a Five Guys Burgers location with tenant improvements filed with the city in the past week for a location in the Packwood Creek shopping center. The fast growing hamburger chain recently opened their doors in Fresno and will now open a 2116sf restaurant here at 4129 S Mooney – Suite A. The location is in one of two new  buildings at the Packwood center next to the new wing store.
Five Guys is named by founder Jerry Murrell for his five sons who work in the business. The Virginia-based firm has revenues of over $1 billion and over 1000 locations. The east coast eatery only opened in California a few years ago where fans claim its upscale burgers rival IN-N-Out in popularity. The new restaurant is expected to open by the holidays.

Woodlake To Get Rite-Aid Drug Store

Rite-Aid continues to expand in the Central Valley with a plan for new drug store in Woodlake. The city planning commission approved a construction proposal by Rite-Aid to build a 14,578 sf new store at the corner of Antelope and Magnolia. The new development is across street from the city’s main shopping center and within a block from the towns two health clinics. City administrator Ramon Lara says the new drug store will make it easier for locals to access pharmaceuticals and other health and household items in town.

“This kind of started with two new dollar stores in Woodlake that helps slow the leakage of sales tax dollars to larger towns” says city planner Greg Collins. Collins says Rite-Aid had considered building a 10,000 sf store but opted for the larger format model. Lara points out that Rite-Aid is aware the city is planning a major facelift of its Downtown streetscape.

The coming of more health care options to smaller towns is considered a result in part of the rollout of Obamacare that allows more low income people to have health insurance.

Kaweah Delta CEO Lindsay Mann says their is a synergy in the expansion of more community health clinics like Kaweah Delta in Woodlake – often located near new drug stores like in Dinuba,Woodlake and North Visalia where a new KD health clinic was recently announced to be located near a new existing Walgreens location.

Rite-Aid is the nations’ third largest drug store chain with 1433 stores. The company recently announced their latest results showing same store sales for the quarter increased 4.1 percent over the prior year, consisting of a 1.1 percent increase in front-end sales and a 5.6 percent increase in pharmacy sales.

Mr Lara says the new store should open by June of next year.

Valley Jobless Rate Falls Again

Tulare County’s jobless rate was down in September to 11.2 percent from 12.7 percent a year ago following the same trend in major Valley counties. Tulare County’s numbers show some 2600 more people going to work than a year ago with farm jobs at a surprising 800 more than a year ago despite the drought. Some 22,400 were unemployed in September 2104 compared to 25,500 in September 2013. The  trend parallels numbers from Fresno County that show even stronger non farm job growth with 7600 more jobs than September 2013 even though farm jobs fell by 300 from 58,500 to 58,200. That decline is considered small given the the fact that Fresno’s parched westside farm region has been hit hard by drought and a lack of surface water.
Fresno job growth shines with construction jobs up 1100, hospitality – also up 1100 and utilities up 800. Business service employment climbed 1500 – all year over year.
The unemployment rate in the Fresno County fell below double digits at 9.5 percent in September 2014, down from 10.0 percent in August 2014, and below the year-ago estimate of 11.1 percent.

Tulare Schools Go Solar

The California Energy Commission approved a low interest loan to the Tulare City School District this month.The district will receive a $3 million loan to install solar panels at its eight schools. The loan will be paid back in about 18 years and will save about $160,000 annually in utility costs.

Sniffer Dogs Unleashed To Fight Citrus Disease

Dogs with trained noses may soon help California authorities check for the presence of a citrus disease. The California Citrus Research Board says it has contracted for two dogs that can sniff out the plant disease known as HLB. The dogs are being trained in Florida, where HLB has killed citrus trees. Visalia based  MaryLou Polek, the board’s Vice President of Science and Technology says the early trials are promising enough to have dogs working in California airports, mailing houses and in the orange groves in the next few years.

Respite House Getting New Life

Visalia Rotary is sponsoring a Respite House at 669 S Watson for patrons of Kaweah Delta who need a facility as they care for loved ones in the hospital.Christ Lutheran previously sponsored such a house but can longer do it. KD staff report says the district will operate the house.

Local Housing Recovery Signs

Housing market continues to recover in Tulare County with the September median home price climbing 7% year over year with sales some 3.6% higher than a year ago.Across the state the market has cooled but that is considered a good sign that sellers are reigning in their expectations.

Like the rest of the state Tulare County property values are higher in 2014 up 4.8% compared to 6.1% statewide says the Board of Equalization. “ Higher property values are an encouraging sign that California’s economic recovery is finally gaining traction throughout our state” says BOE member George Runner.

Meanwhile foreclosures are way down as well says Core Logic this week with Tulare County’s foreclosure rate at 0.82 percent in August, a decrease of 0.44 percentage points compared to August 2013 when the rate was 1.26 percent. Foreclosure activity in Visalia-Porterville was lower than the national foreclosure rate, which was 1.61 percent for August 2014. Also in Visalia-Porterville, the mortgage delinquency rate decreased with 3.12 percent of mortgage loans that were 90 days or more delinquent compared to 4.32 percent for August 2013.

UP Chugging Along

How’s the economy doing? Check out bellwether Union Pacific RR who does plenty of business in the San Joaquin Valley.This week the company reported an all time quarterly record with net income of $1.4 billion compared to $1.15 billion in the third quarter 2013. Operating income  was up 19%.Helping to drive profit was a 5% lower diesel gas bill. Farm product shipments climbed 19%.

Tomato Crop Upside Surprise

Despite the nasty drought Valley ag producers appear to be managing.The state’s tomato processors had contracted for a record 14 million tons of tomatoes, but early in the season, some growers and others in the business said they had doubts about whether all of the planted acreage would come to fruition, with reduced surface-water supplies, pressure on groundwater and concerns about early fall rains wreaking havoc on harvest.

But it looks like they made the goal.

“I can’t believe we’re going to get close to 14 million tons,said Tim Borchard, who farms in Yolo County. “If you had asked me that a month ago, I would have said, ‘No way.'” Canneries paid a higher contract price this year—$83 per ton, about $10 per ton more than last year—Fresno County farmer Bob Wilson said that made tomatoes an attractive crop in a tight water year, because growers were able to stagger plantings and harvest at different times from July through September, allowing them to stretch out their irrigation schedule.
More Crops

California’s orange crop is now forecasted 4% higher than last year and tangerines are expected be up 10% despite predictions that many orchards would not survive the drought.
More good news: two big crops in Tulare County – walnuts and prunes did well last year. USDA reports average walnut prices reached nearly $2 per lb ($1.85) rising again from low 2008 levels when they fetched just 64 cents/lb.  Then there is a new wrinkle for prunes as prices jumped last year to $2000 a ton compared to $1330 in 2103.
Bank & Credit Unions Doing Well

Banks and credit unions seem to be doing well too. Educational Employees Credit Union is building a new branch in Tulare at 1398 E Prosperity – next to Chili’s. The credit union has no office in town now. Also Visalia-based Valley Commerce Bank reports higher net income for the latest quarter announced Oct 16,with a 9% increase in loans. Porterville-based Bank of the Sierra reports a 5% increase in net income as they expand operations into the Santa Clarita area.

September 25,2014
Visalia Hotels Do Well In August

Visalia metro region hotels were busier in August with occupancy year over year climbing by 3 percent. Hotels recorded a 77.6% occupancy rate with revenue per room (RevPAR) climbing from $67.23 to $71.08 or 5.7% in August. For the year RevPAR has increased by 7.2%.

Sequoia Park Visitation Up 8 Percent This Year

NPS reports that August saw 180,619 visits to Sequoia National Park in August which is an 11.25% increase over August 2013.Year to date visits are up 8%.  Overnight visits to Wuksachi Lodge on a year to date basis number 47,115 compared to 32,420 in 2013 – a 45% increase.

In neighboring Kings Canyon NP, total visits in August were 84,014 compared 95,281 in August 2103, a 11.89% decrease. Overnight stays in Grant Grove were down 8.8% in August but are up 10.4% for the year. Delaware North is now concessionaire for both Sequoia and Kings Canyon.

Northside Shopping Center Growing

Donahue Schriber Realty Group is building two new retail buildings at Orchard Walk East shopping center. They include a 3022 sf building and a larger 10,162 sf structure at the center that is anchored by Target and TJ Maxx. The larger building has been leased to Dickey’s Barbeque Pit (2,000 sq. ft. tenant space) and Pacific Dental (2,900 sq. ft. tenant space).Both tenants are also in Packwood Creek shopping center. The other building has yet to name a tenant.

Visalia Sees To Annex 135 Acres

The City of Visalia is proposing the annexation of 135 acres of land located on the east side of Dinuba Boulevard between Shannon Parkway and the St. John’s River. LAFCO, at their next meeting,October 1, is expected to approve the annexation. It would allow 93 acres prezoned for low density residential development, 58 acres (265 housing units) are part of a preliminary subdivision map. In a LAFCO analysis the staff report says the City currently has 13,282 acres of residential land with 11,362 acres of which is developed within existing city limits. The proposed annexation would bring Visalia’s residential land supply to 6.2 years (assuming 2.58% historical annual growth and the existing residential density of 11.27 people per acre). Using a Blueprint growth model, the proposed annexation would bring the City’s residential land supply to 7.9 years (using the blueprint goal of 5.3 units per net acre).

“Based on the fact that near-term growth is planned for the site and given that the location is fully surrounded by developed City uses to the west and south and by the St. John’s River and County residential areas to the north and east, Staff recommends that this proposal be approved.”

Exeter Dollar General Breaks Ground

Dollar General is under construction on a new store in Exeter west of Burger King on Visalia Road .

Pena Disposal Expansion Approved

In another rural rural expansion Pena’s Disposal seeks to expand its material recovery facility near Cutler on about 18 acres requiring a zone change.The property is located on the northeast corner of Avenue 408 and Road 120, west of Cutler. County Planning Commission has already approved the project.

September 22,2014

Despite a multi-year delay and a $40 to $50 million shortfall to complete their first medical tower project, Tulare Regional Medical Center (TRMC) continues to plan on building a second 111,000sf tower next door with 105 more patient rooms. Or are they?

“We’ve been meeting with hospital officials to go over their plan” says Tulare’s Community Development Director, Rob Hunt. Hunt says the hospital – not the city – is the lead agency and that they are working on a supplemental EIR to their 2011 plan and the document, when completed, will go the city Planning Commission.The district is also filing the plan with the Office of Statewide Health Planning and Development (OSHPD) says Hunt.

But hospital manager Dr Benny Benzeevi of HealthCare Conglomerates Associates (HCCA) when asked about this – acted unfamiliar with any such plan in the works suggesting only that the hospital is continuing to work on adding infrastructure.”It could be a technical thing to keep our options open.”  The logic might be with the last version of this expansion plan dating from 2011,to keep it legal requires an update.It is understood that HCCA’s overall task at TRMC is to manage the day to day financial “turnaround” at the hospital rather than long range planning.

Tower’s Troubled History

Tower 1 has had a troubled history after a strong vote of support by Tulare residents who passed a $85 million bond in 2005 to build the 115,000sf phase-one expansion. The tower was slated to open in October 2012 but never did – embroiled in construction issues and a dispute with the contractor. That dispute has only this summer been resolved – resulting in the district paying out an additional $7.9 million to the contractor – Harris Construction. Still the completion of the work is pending as the hospital looks for some way to fund another $40 to $50 million to complete the work. Officials are understandably hesitant in asking voters to shell out more.

That is why some are surprised the district continues to pursue a new expansion,even the option of a new expansion. The assumption has been the district needs to meet new state seismic standards to plan for the future and so must build or wither away.

Dr Benzeevi adds “we continue to want to build Tulare Regional Medical Center into one of the finest medical centers in the nation.”

Supporter Lynn Dredge,Tulare’s former city manager considers the plan to be part of TRMC effort “to get their ducks in a row for the future” but that for now “nothing is in the works.”

“We’re completely focused on completing Tower 1”even though to date – there are no ideas of how to raise the money to do that, he says.

“It will be done“ Dredge suggests.

Tower 2 had been envisioned to add-on to the first tower back in 2011. But few expected the extent of the delay of the original plan and the depth of the hospital’s financial difficulties in the past few years.

Today the hospital has spent virtually all the $85 million to build Tower 1 (a TRMC report says there was just $240,000 left in August) with, as we said, $40 to $50 million in work to be done – about a years worth of work. Earlier this month a donation was secured to finish the exterior of the building that had been shrink wrapped for what seemed like forever.

The 2011 Draft EIR for Tower 2 pegs the construction cost at $25 million. Kluger Architects who did the 2011 draft is still working for the district.

TRMC Comeback

Earlier this month TRMC got some good news as the bond rating agency Fitch said the district was staging a a come back. Fitch said”TRMC posted a loss of $2.3 million (negative 3.3% operating margin) in fiscal 2014, which is significantly improved from a $3.9 million loss (negative 12% operating margin) through the six months ended Dec. 31, 2013. Similarly, operating EBITDA margin improved from a negative 3.8% to a positive 4.2%. Management’s initial goal was to break even in calendar year 2014. Given the $1.6 million operating income generated in the six months ended June 30, 2014, Fitch believes TRMC is on track to meet its targets.”

Of course it is one thing to break even and another to fund a huge new capital project when the last one has not been paid for and it sits idle.

“We are having to take this one step at a time” admits Dredge.“Things have calmed down politically too” adds Dredge with new management in place focusing on day to day profitability.

But there is the question of future demand.

TRMC is already rated a 112-bed hospital with plans to go to 193 beds – but  despite better management – patient demand appears to be sinking. The latest snapshot for August shows the hospital census at just 38,compared to 49 in August 2013.