Category: Central Valley

August 22,2014More Development News In Downtown Visalia

(corrections added)

Locals who have a continuing thirst for Valley-brewed craft beer will get another chance soon as Fresno’s Sequoia Brewery plans to open a restaurant on Main Street in Visalia as soon as the holidays. The news is confirmed by both the brewery’s founder and a local development group who owns the property.

Developer Harvey May who heads up local investment group owns the former Mar Building at the corner of Main and Locust, 124 West Main.”We think it will bring in the kind of business that will keep Downtown exciting ”noting the church in the building now has had plans to relocate. That will make room for several months of remodeling work that will start once all permits are received.The group who also owns the building next door as well  – relocated popular Tachibana there some two months ago.

Brewery owners Scott and Michele Kendall say they are ”excited” about opening in Downtown Visalia adding “the whole vibe is so much better than I thought it would be.” Scott, who launched the company in 2003 in Fresno’s Tower District, bought out Butterfield Brewery and changed the name,later adding a North Fresno location as well. “The Tower location is still where all the beer is made.”

“It’s sort of natural to be coming to Visalia with the Sequoia name attached.We always had Visalia in mind.”

Roll Out The Barrel

The craft beer movement is on a roll.”Craft beer production was up 9.6 percent in 2013, while overall beer production fell 1.4 percent,” according the finance news source – CNBC. Unlike the big boys, craft beer makers are small and above all independent – offering traditional beers with a local touch.

“Our own experience in Fresno is that business has been growing steadily at 10% to 15% every year” says Kendall, prompting the couple to open the Visalia location this year as well as a Santa Barbara tap room, on Helena St, near the Fess Parker, after the first of next year. Included in the plan is a large 1600ft outdoor patio.

The Visalia eatery will offer their award winning ales and lagers, a wide variety of food from pizza,pasta to burgers and a full bar, open for lunch and dinner and breakfast on Sunday. Look for acoustic music but not the loud stuff jokes Kendall.”We don’t want to turn it into a club.”

Besides offering their beer in their restaurants they have a different partnership that sells beer at retail and grocery locations. In 2010 Kevin Cox,former Butterfield  brew master, and the Kendalls went to downtown Fresno to bottle and retail selected Sequoia beers, which is named Tioga-Sequoia. It is a separate company.

Kendall says about the expansion to the Central Coast that he is not worried about locking horns with other craft brewers like Paso Robles ‘805’ brand owner Firestone. “We have a good competitive relationship but it is always friendly.” Kendall says the Coast market  tends of cater to a younger user who happily, like their parents, is excited about craft beers too.

Surplus City Bought

The Visalia development group called 120 W Main includes Visalia realtor Matt Graham, farmer and developer Fred Lagomarsino, farmer and industry owner Tommy Elliott and developer May. The group, just last week, completed the purchase of the former Surplus City property on east Main in Downtown,a larger 9500sf building. Surplus City closed their doors after many years in early 2014 and its owner put the property up for sale. A major remodel is planned.

“We hope to lease it out to two retail users” explains May.”We already have a letter of intent from a well known retailer for half the space.”

The group purchased the Mars pharmacy building at 124 W Main a few years ago and did a major remodel. Now they will getting the kind of user they were waiting for. ”We want to help rejuvenate these older properties.“ May adds the Surplus City building is well placed close to the corner of Bridge and Main where the 10-plex movie theater is as well as the newer constructed Crawdaddy’s.

Downtown retail vacancy is extremely low says chair of the Downtown Visalia merchants group, Don Sharp.

“Besides the Surplus City space,I cant think of any other Main St space available on the ground floor” says Sharp. Property owner Sam Sciacca has said with the former Links space he bought is now spoken for – with a salon and wine-bar moving in and 4 apartments in the works upstairs.

Speaking of upper levels on Main property owner George Ouzounian  says he will install an elevator by the first of the year at his building on the corner on Main and Willis to help lease second story office space in the building.

Some years back May with  another investment group rejuvenated the old Togni building Downtown – now fully leased including a second story apartment.

August 18,2014
Residents and medical providers asked to report bites or illnesses

VISALIA, CA – The Aedes aegypti mosquito has been detected within the
city of Exeter in Tulare County by the Delta Vector Control District.
Aedes aegypti is an efficient carrier of diseases such as dengue, yellow
fever, and chikungunya virus and is not native to California. No
illnesses associated with this mosquito have been reported at this time.

The same type of mosquito was also recently found in Madera, Fresno and
Kern Counties. Aedes aegypti is a small, dark mosquito with white
markings and banded legs. It may be active around dusk and dawn but
bites most often during the day and often bites indoors.

“The public’s help is needed to eradicate this mosquito population
before it can become established in our community,” says Michael
Alburn, Manager of the Delta Vector Control District. “Residents who
experience mosquito bites during the day are asked to contact the
District.”

To assist in the effort to eradicate this mosquito population and to
reduce the risk of being bitten by mosquitoes, Tulare County residents
are strongly urged to:

●       Report mosquito bites that occur during the day (anonymously if
you like) by calling the Delta Vector Control District toll-free at
1-877-732-8606 or online at www.DeltaVCD.com. If you are in another area
of residency and would report to Tulare or Delano Mosquito Abatement
Districts, Delta Vector will re-direct you to the appropriate district
●       When spending time outside, apply insect repellents that contain
DEET, picaridin, oil of lemon eucalyptus or IR 3535 according to label
instructions
●       Wear long sleeved shirts and pants when outside in the early
morning and evening
●       Make sure that doors and windows have tight-fitting screens to
keep out mosquitoes. Repair or replace screens that have holes

●       Eliminate standing water and containers that can hold water from
around the home. This mosquito lays its eggs in water holding containers
even if the containers are very small

August 14,2014
Two key boards approved acquisition and construction along the Central Valley segments of the high speed rail project this week adding to the momentum the project got from two recent lawsuit wins.

Monday the federal Surface Transportation Board formally approved the Fresno to Bakersfield leg of the route that authorizes construction in Kings County – where a hotbed of opposition has been trying to halt the effort.

Then on August 13, the State Public Works Board approved acquisition of 158 parcels of land needed to build the Fresno to Madera leg as well as some parcels on the second leg from Fresno south. The parcels range from E Mountain View Ave in Fresno County south into Kings County as far as Hwy 198.

In addition the board approved acquiring by condemnation five parcels in Fresno and Madera counties after unsuccessful negotiations with property owners.

SACRAMENTO, Calif. –  The California High-Speed Rail Authority (Authority) Board of Directors announced today that ARCADIS U.S. Inc. (ARCADIS) was awarded the Project and Construction Management (PCM) contract for Construction Package 2-3 (CP 2-3). ARCADIS was selected after months of interviews and reviews of qualifications during a competitive bidding process among five world renowned firms. The purpose of the PCM contract is to provide design and construction oversight for CP 2-3. This oversight minimizes construction risks and ensures Californians delivery of a high-speed rail system meets the mandates of Proposition 1A.

“Awarding the Project and Construction Management contract is another significant step forward for this program,” said Authority CEO Jeff Morales. “Partnering with ARCADIS will help provide California with a high-speed rail system worthy of our state. Their experience, expertise, and employment opportunities will be a tremendous asset to the high-speed rail program and the Central Valley.”

As an additional layer of project oversight, ARCADIS will work with the Authority and the Design Build (DB) contractor (to be selected) to identify, manage and mitigate project risks and make sure technical and contract requirements, including costs, are met for CP 2-3. Specific PCM duties include oversight of inspection and testing of the high-speed train infrastructure, technical and environmental compliance including hazmat oversight, utility relocation, construction safety and public outreach. Under the agreed upon contract, ARCADIS could receive up to $71.86 million based on actual work performed over a period of approximately five years.

ARCADIS, and their parent company, ARCADIS NV, are respected industry leaders in construction management, design and consulting. Some of their past projects include the Germany Ebensfeld-Erfurt High-Speed Rail, Los Angeles Metropolitan Transit Authority’s Metro Regional Connector Transit Corridor, the Port of Long Beach’s Middle Harbor Phase 1 construction, U.S. Army Corps of Engineers Hurricane Katrina Levee Reconstruction and the Chicago Transit Authority’s Wilson Transfer Station Reconstruction. ARCADIS U.S. Inc. is headquartered in Highlands Ranch, Colorado, but will open an office in the Central Valley.

ARCADIS meets the Authority’s aggressive 30 percent goal for Small Business (SB) participation, with a commitment of 30.5 percent. In addition, the company surpasses the Authority’s 10 percent Disadvantaged Business Enterprise (DBE) and 3 percent Disadvantaged Veteran Business Enterprise (DVBE) goals; reaching a 15.6 percent and a 4.8 percent commitment, respectively.

Work on CP 2-3 will extend in excess of 60-miles through the Central Valley beginning at East American

Avenue in Fresno and continuing south to approximately one mile north of the Tulare-Kern County line. The route will bring thousands of jobs to the Central Valley, an area with one of the highest unemployment rates in California and the nation, provide environmental benefits, relieve roadway congestion and spur economic development.

Rail Authority In No Hurry To Sell Bonds

August 7,2014
California’s Third District Court of Appeal reversed a Superior Court ruling last week that has, to date, halted the sale of Prop 1A state bonds to finance the bullet train. The court decision was a blow to litigants from Kings County who vehemently oppose the project.

Now Kings County staff attorney Colleen Carlson says a decision was made Tuesday by the Board Of Supervisors to appeal portions of the ruling to the California Supreme Court.

The appeal court ruled July 31 on two cases brought by both residents and the county itself that include use of Prop 1A funds as well as the validation issue ruling in favor of the rail Authority in both cases.

Opponents had argued the state was required to show where all of the money to pay for the $68 million project would come from before it begins construction but the three member panel unanimously rejected that line of argument.

“Contrary to the trial court’s determination, the High-Speed Passenger Train Finance Committee properly found that issuance of bonds for the project was necessary or desirable.” In addition the court found that “further challenges
by real parties in interest to these of bond proceeds are premature.”

Translation – the sale of the bonds can move forward.

No Hurry

With court approval to begin the sale of $8.2 million in bond money at hand the state Department of Finance who will oversee their sale says nevertheless, there is no hurry to begin the borrowing process ”until we need it” says the state agency representative HD Palmer.

“The rail Authority has sufficient funds through the 2014/15 fiscal year (about a year from now) to carry out all land acquisition and construction projects planned in the Central Valley.” The state funds will also provide the required match to federal monies.The Authority will be using a combination of federal funds and state Cap and Trade funds ($250 million annually) approved by the legislature earlier this year.

Voters approved the bonds for the state’s largest public works project in 2008 but the sale of the bonds has been put in limbo until the recent appeal court ruling – now itself being appealed to the state’s highest court.

CHSRA says they have enough federal monies as well as state Cap and Trade funding to move forward on construction of the first leg of the project from Fresno north (just underway last month) as well as right of way purchases and design work for the second and third segments south of Fresno, into Kings and Tulare County.

The California Supreme Court ordered the Third District Court of Appeal to undertake an expedited review of two trial court rulings  that question the financing plan for California’s High-Speed Rail project. A petition filed by Governor Brown in late January asked the Supreme Court to overturn the two lower court rulings. But instead the Supreme Court asked the Court of Appeal to make a decision asking it  “expedite its consideration of this matter” with claims by the state that further delay puts at risk pledged federal monies.Now that court has ruled.

Arguing For Flexibility

While opponents made the argument that the original plan passed by voters has changed, the appeal court seemed to favor a flexible approach, citing another case.

“In fact,the Supreme Court has allowed substantial deviation between the preliminary plans submitted to the voters and the eventual final project, admonishing: “[T]he authority to issue bonds is not so bound up with the preliminary plans as to sources of supply upon which the estimate is based that the proceeds of a valid issue of bonds can not be used to carry out a modified plan if the change is deemed advantageous.”

More Of A Win?

Despite the setback Kings County Counsel Carlson said after “reading the 49 page decision we are looking at it as more of a win than at first.” Carlson says the Authority can’t spend Prop 1 money on construction until all their ducks are in a row” even though the appeal court said challenges to plans to spend money are not yet timely and the rail board can finalize their specif plan and not have to redo it.

Kings County has several other complaints pending including an appeal to the California Supreme Court of a trial court ruling that allowed the rail authority to begin seismic testing along the right of way.

In addition the county was among those who have now filed a lawsuit  under CEQA alleging the EIR done on the second leg of the rail route through Kings County is inadequate.

“To date the Authority has not provided a clear and stable funding plan that would indicate that a true high-speed rail project can be completed and that all mitigation measures can be funded. Shrouded in the lack of transparency, lack of funding, and lack of accountability, we believe that the Authority will be unable to complete any functional rail project, let alone a high-speed one.” says a news release from the Kings County group.

Also another Prop1A suit is pending in front of the the Sacramento Superior Court.

July 4,2014
With the exception of the old Surplus City site Downtown Visalia can hang out its ‘No Vacancy’ sign out this week says Downtown trade group president Don Sharp. Sharp will be celebrating Downtown Visalians 51st anniversary this week at their annual luncheon.

The event was  on July 22, 2014 at the Visalia Marriott .Troy Korsgaden, a fellow member of Downtown Visalians was a featured speaker. Sharp says they honored  Downtown business owner Joaquin Cantu with the President’s Award for tackling a robber and holding him until the police came back in April.

Surplus City Purchase

While there have been vacancies the opportunities don’t last and new investment continues to pour in. Downtown did lose the Surplus City store this past winter but a group of local investors has now purchased the building and plan a major renovation says local contractor Basil Perch. ”They don’t want to talk about it much until the deal closes August 13th.” The 10,000 sf space will be for lease and could accommodate either retail or office.

Downtown Visalia is clearly successful for a number of reasons including long time stewardship by the Visalia City Council (that includes Don Sharp) to keep the district as the center of the town. It all adds up from its fame as the best cluster of restaurants in the county to its growing number of lively retailers – the county’s financial hub and the presence of Kaweah Delta hospital and Family Healthcare Network and others adding thousands of healthcare employees who work in the district.

Engineers Too

Besides these tenants and the banks ,insurance firms and  stockbrokers there is assemblage of talented engineering firms some with good size staffs who have Downtown addresses. Sharp points to Provost and Pritchard,Quad Knopf who recently renovated a Downtown building and has a staff of over 60; Four Creeks Inc.,Teter A&E, Keller & Wegley, TPG Consulting,Omni-Means,Forester Weber and Justin Moreno.

Wine Bar & Residential

One empty store front that will be filled now is the former Links clothing store that new owners Sam and Marlene Sciacca say will be filled this December by a wine bar pending a Conditional Use Permit approval along with a salon. Sciacca,who is also developing residential  units on the upper floors of the historic Main St building says Blend Wine Room of Kingsburg will be opening along with a 4 partner salon next door. As for the 6 residential units in the works Sciacca says 3 have signed leases and demand is strong for the rest that overlook Main.”I can tell you 2 units have been leased by nurses at Kaweah Delta and the third to a school teacher who all want to be able to walk to work.” He adds that “by the end of the year we should have construction complete and all the units spoken for.”

This would be a big boost to those who see more live-work units in Downtown.

Boutique Boom

Downtown has been seeing more retail operators coming in from other  shopping centers attracted by the strong walk-in traffic and the parking district says Sciacca who also own Chelsea St Boutique on Main.
A few examples – Envie is opening at 125 N Encina across from Tommy’s with a mens and women’s clothing store; Also Bling who opened at Willis and Main,Lulu’s Boutique who opened on Church St, and the expansion by Tazzaria downstairs where the new Sports Bar is located.

Also on the hush hush, the corner of Locust and Main could soon get a new eatery sources say.

Not that Downtown always wins. D&E Motorsports recently decided  not to move into the former Caskey building on east Main after construction costs and red tape seemed to be too much. Instead they chose to open at Hwy 99 and Betty Drive in the past few days in the former Visalia RV space.

“We just could not make it happen with the city”says owner Jeff Merrill.”We needed to relocate and we worked with the city for 6 to 7 months and could not get a final answer to issues.We went in for meeting after meeting and finally gave up.”  Merrill was going to buy and renovate the old warehouse building.The city disputes this saying Mr Merrill simply did not want to pay to sprinkler the old Caskey building but still hopes to work with him.

August 4,2014
Local officials are worried enough about saving 700 jobs at the Visalia Cigna call center that they traveled to Washington last week to urge lawmakers support special legislation.

Visalia City Manager Mike Olmos,Councilman Bob Link and County Supervisor Steve Worthley and others bent the ears of California Senators Barbara Boxer and Dianne Feinstein to support a waiver of rules under the Affordable Care Act. The waiver is sought for large insurance companies including Cigna who have a sizable expatriate customer base overseas now impacted by Obamacare. The health care law requires certain mandates that their foreign competitors don’t have to comply with.The waiver would affect plans that cover people working outside their home country, including foreign employees working in America or Americans working abroad.

Cigna says they have about one million Americans who work overseas and get their care there that will be subject to rules like free preventive care that foreign-based insurance plans don’t have to offer. That puts US-based insurance firms at a competitive disadvantage, they argue.

Cigna has told government officials that if the rule is not waived they will have to close several offices that serve expats including one in Visalia California and one in Delaware affecting 500 workers and even relocate their corporate office overseas if need be.

“There is no doubt that without the waiver we will not be able to save some 700 jobs in Visalia” says Steve Worthley who adds that he is nevertheless optimistic that the visit to Washington may have paid off.

“A bill passed in the House (this spring) and now is pending in the US Senate” says Worthley that apparently now has the support of California’s two US Senators – both Democrats and strong supporters of Obamacare.

“It looks promising but time is of the essence“ he adds.

Making the job more difficult is a requirement that the legislation be supported by “unanimous consent” Worthley says.”That’s a tall order with this congress.

Congress is on their summer break this month and won’t return until September 5.

While Democrats appear to favor a targeted waiver of rules for overseas workers – they want to tailor the rule and not allow some loophole that would gut the health care law for US residents.

“We need to fix the expat issue, but not by unfixing healthcare reform“ said Congressman Sander Levin, a Democrat from Michigan recently.

The GOP-led House has passed more than 50 bills looking to end Obamacare in some way. Referring to the ongoing tug of war over the new law – another congressman said “let’s call a temporary truce (over the ACA) to protect those jobs” said John Carney of Delaware whose state also faces losses if the company moves overseas.

Cigna In Visalia

Cigna is one of Visalia’s largest private employers with employment thought to be between 600 to 700. The insurance powerhouse once had as many as 1400 employees here when it added 300 jobs in 2001 and built their headquarters on Akers.The company has had some presence in Visalia since around 1991. Some still work in that Akers building but the 150,000sf office has been sold and is being divided up since Cigna requires only about 50,000 sf.

The current call center operation takes calls for overseas clients that include expatriate members.

Ironically, Cigna reported financials recently that indicated it is doing well under the ACA with a surge of new young customers.Cigna reported second-quarter 2014 net operating earnings of $1.96 per share, beating the Zacks Consensus Estimate of $1.85. Earnings were also up 10.1% year over year. Cigna’s better-than-expected earnings came from premium growth across all its business segments. It is in 5 state public exchanges and now says they will enter 3 more states.

July 11 2014

First Construction Demo Set For Monday For HS Rail

California High Speed Rail Authority spokesperson Elizabeth Jonasson says the contractor on the 29 mile Fresno to Madera route will carry out the first construction related demolition of a building on Monday. The vacant building is former bar,Hollywood Inn, at Golden State and Pine in Fresno. The demo will take place at 8AM and expected to take only a few minutes. More work on the route is expected later in the week.

High Speed Rail Contractor Plans Hanford Office

Tutor Perini, a joint venture contractor who held a subcontractor meeting in Hanford last week told the assembled crowd they plan to open a modular office complex of about 20,000 square feet and will employ about 100 persons at the center once the work on this leg of the bullet train between Fresno and Kern County begins.”Hanford is about half way” says principal Ron Tutor, confirming the news. “We were pleased we had a large turnout of a couple of hundred people in Hanford” says Tutor. “ We won’t know if we have a contract to build this second section of the route (CP2-3) until perhaps November.” LA-based Tutor Perini does have a contract to build the first leg from Fresno to Madera – CP1.

Falling Corn Prices Buoy Local Dairy/Livestock Industry

A big Midwestern corn crop promises to boost margins for livestock owners including the local dairy industry here. The news this week is that corn futures for delivery this December have now dropped below $4 a bushel compared to $6 to 7 in past years.The price fell Friday to the $3.91 level. High feed costs coupled with low milk prices from 2009 to 2012 pushed many dairy operators to the brink and scores of local dairy farms shut down. But in mid-2014 the cream is rising for milk producers with prices buoyed by strong exports. The latest Tulare County crop report says dairymen got an average of $16 per cwt in 2012 rising to $18.40 in 2013. This year the price has jumped to around $21.”Dairymen are finally making money” says Visalia broker John Grimmius. ”There were three years that we did not.” Grimmius says while there have been survivors of the tough years a number of operators did not survive.”We are seeing smaller dairy facilities sell for about the same as  open ground where people are now talking about planting trees.” Indeed the latest county crop report shows some 4080 acres of nonbearing pistachio trees have been planted in recent years.

Milk Powder Sales – New Record High

U.S. exports of nonfat dry milk and skim milk powder increased 10% in May from April – a new all-time monthly high. In May, exporters sent 60,358 metric tons, or 133 million pounds, of nonfat dry milk and skim milk powder to destinations overseas, a 7.8% jump from May 2013 according to USDA. One of the largest producers is California Dairies in Visalia.

Tulare Council Will Discuss CaliCheese Project

The Tulare City Council will discuss the sale of 59 acres to CaliCheese July 15 asking for an additional $10,000 from the company to cover staff time on extending an exclusive right to negotiate the purchase.

Tulare To Get Forever 21 Store

The community of Tulare will get a Forever 21 clothing store at the outlet mall. Bidding on tenant improvements on a remodel of a 7618sf store  – the former Ralph Lauren Polo space at the mall – has been completed as of July 9 with the store expected to open late this summer. Polo closed their location in Tulare in March.

Hanford Costco To Get Hearing July 24

Hanford City Manager Darrel Pyle says the city Planning Commission will take up the final EIR for the new Costco shopping center at Hyws 43 and 198 on the east side of town on July 24. That will be followed by a City Council hearing in August. Pyle expects construction to start by year end with the popular retailer to open in fall 2015.

Tulare Digester Could Start Construction in September

Colony Energy VP Matt Schmitt says the $25 million anaerobic digester  project near the WWT plant in Tulare could start construction by the end of summer. “We are finalizing the site plan with the City of Tulare  as well as the ground lease.” Schmitt says the biogas project could take about year. “We will be one of the first to inject biogas into the pipeline grid.” The biomethane,used in transportation – will be sought after by companies wanting to lower their greenhouse gas footprint. The biogas will be produced from a mix of green waste, food waste and cow manure.

Gas Pains Relief

Local wholesale price drops have finally brought a little gas price relief in many areas of Southern California, according to the Automobile Club of Southern California. The retail state average is $4.128 a gallon for regular today, 1.2 cents less than last week.
Gas Buddy says statewide the average price has dropped about 2 cents in recent days. Several stations in Tulare are selling gas for $3.75.
Helping to lower the pump price is falling oil futures this week as concern over the Iraq war have eased fears it would affect supply here. Bloomberg says “new U.S. pipelines and a revival in Libyan supply are increasing the likelihood that oil prices will slump through year-end after climbing in the first six months.
Wall Street analysts tracked by Bloomberg predict West Texas Intermediate oil will average $100 a barrel in the fourth quarter, down 5.1 percent from June 30.”
“Wholesale gasoline prices have dropped locally by more than 30 cents a gallon in the last two weeks, indicating a more steady fuel supply,” said Auto Club spokesman Jeffrey Spring this week. “If this trend holds, we can expect to see more drops at the pump.”

Chinese Lead U.S. Home Sales to Foreigners

RealtyTrac reports that international buyers spent $92.2 billion in 2013 on U.S. properties, up from $68.2 billion a year earlier, a 35 percent jump, according to the National Association of Realtors.
The increase in international sales was fueled by a 72 percent increase in activity from Chinese buyers, who purchased $22 billion in U.S. real estate, or 24 percent of total foreign sales.The report — titled “2014 Profile of International Home Buying Activity” — found that Chinese buyers’ favorite state is California, which accounted for 35 percent of sales.