Valley Update / Ski Resorts Shut Down / Walmart Fresno / Tulare Supes

With No Snow – Central California Ski Resorts Throw In Towel

It’s April 2013 and its been a duster for the past three months.So it should come as no surprise that Central Sierra ski resorts have closed for the season.

At China Peak management announced that “unfortunately we are closed for the 2012/13 season, unless we receive a significant snowfall (2-3 feet) in April, where we would possibly reopen. The lack of snow in the first quarter of 2013 is historic, and unfortunately we ran out of snow much earlier than is almost always the case; we are generally open until the end of April, which is our plan for 2013/14!” In Yosemite Badger Pass closed as of March 31.

Still open for skiing is Bear Valley,Alpine Meadows,Squaw Valley,Northstar and Mammoth to name some of the more popular.

If skiing ends early – let the hiking and tourist busses begin.

That’s what is happening in Sequoia /Kings Canyon where the early snowmelt and warm weather has prompted the return of tour buses early this year.

Already the road to Moro Rock and popular Crescent Meadow is open. I personally hiked up the cross country ski road to Panoramic Point a few weeks ago taking a picnic lunch to enjoy the Great Western Divide view at the top. The road to Cedar Grove at the end of Kings Canyon will open April 26.

little snow in Giant Forest in Sequoia in early April

Over in the high country of Yosemite there is still good cross country skiing around Tuolumne Meadow after an early April snow storm  brought in 8 inches (see pic).  Still, it is likely Tioga Pass will open early this year for cross-Sierra traffic,perhaps before Memorial Day. Earliest opening was April 8 in the 1977 drought year.

Fresno Walmart Will Swap Corners

Walmart has filed plans with the city to  relocate the existing Walmart Store No. 1815 from 3680 W. Shaw Avenue to the project site (4080 W. Shaw Avenue). (The two sites are located on opposite sides of N. Brawley Avenue). The interior building  square feet of the new location would be approximately 193,361, with 111,724 sf assigned to general merchandise sales, 38,231 sf assigned to grocery sales, and the remaining 43,406 sf allocated to various other uses. The outdoor garden center would total 5,795 sf.

 TULARE SUPERVISORS IN WASHINGTON, D.C. THIS WEEK

The Tulare County Board of Supervisors and senior staff began a series of meetings with Federal officials in Washington, D.C early this week.

Tuesday*s meetings will include the following topics: Lake Success,
potential federal budget impacts to Tulare County, marijuana cultivation
on public lands, Secure Rural Schools, and the Payment in Lieu of Taxes
(PILT) program. All full list of topics and requests are listed below.

Chairman of the Board of Supervisors Pete Vander Poel said past visits
to Washington, D.C. have proven to be beneficial and have helped obtain
federal funding for Tulare County.

*It*s important that Tulare County provides its representatives in
Congress with local input,* Chairman Vander Poel said. *This annual
visit helps Federal officials understand Tulare County*s issues, as
well as prepare them to advocate for our priority requests.*

During this week*s visit to Washington, D.C., the Board of
Supervisors is scheduled to meet with the offices of Congressmen Devin
Nunes, Kevin McCarthy and David Valadao. In addition, meetings with
staff of the House Appropriations Subcommittee on Energy & Water, the
Senate Committee of the Budget, House Appropriations Subcommittee on
Interior & Environment, the Office of National Drug Control Policy, the
Department of the Interior, the Department of Justice, and the United
States Forest Service have been scheduled.

The Board of Supervisors has scheduled its visit at the same time as
the Tulare County Association of Governments* annual One Voice visit.

CHSRA Staff Favor Rail Route West Of Hanford

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Staff of the California High Speed Rail Authority are recommending the board approve a west side alignment through Kings County with a”potential” station just west of Hanford. A report was released today. The board will hear the staff recommendation and testimony from interested parties at their April 4 meeting in Fresno. Kings County and its municipalities have stayed silent on the key choice that would route the 200 mph bullet train either to the east of Hanford or to the west of the city, each impacting farm properties in the way. Staff says the west alignment is $800 million less than the eastside route and has fewer impacts.

Disappointment  In Tulare County

However, the City of Visalia and Tulare County Council of Governments  have been strong supporters of a rail station on the eastside of Hanford with the city noting in a March 14 letter to the Authority that if the train system is built ”a station is necessary and warranted in the Kings County-Tulare County region,and ridership will be maximized by locating the station on the east side of Hanford.” The letter was signed by Mayor Amy Shuklian.

The Visalia letter points out that of the 1.12 million people that will be living in the two-county area by 2060 some 836,850 are projected to be living in Tulare County. The station should be as close as possible to the population centers to “maximize accessibility.” For Tulare County residents – a west of Hanford station near Armona  would be a 10-mile plus round-trip further than a Hwy 43 and Hwy 198 site.

Visalia leaders plan to protest the staff recommendation April 4.

“If they do not approve a station, I would find it totally unacceptable” says Hanford City Manger Darrel Pyle. Without a stop Kings County would see all the impacts but none of the benefits of the state’s largest public works project. Kings Supervior Richard Valle says he has been told the staff of the CHSRA will back the plan to build the Corcoran Bypass around the town. He says he is hopeful rumors that the Amtrak station in Hanford and Corcoran will be saved will be discussed at the Fresno meeting this week.

The approximately 114 mile long Fresno to Bakersfield Section is an essential part of the statewide HST System. As part of the Central Valley section of the HST System, it would provide
Fresno, Visalia, Tulare, Hanford, and Bakersfield access to a new transportation mode, and would contribute to increased mobility throughout California. This section will connect the south San
Joaquin Valley region to the rest of the statewide HST System via Fresno, Kings, Tulare, and Kern counties.
The report details the benefits of the western route.
Fewer impacts to aquatic resources than the BNSF Alternative and generally incorporates the least impacts to aquatic resources of the individual geographic alternatives.
    Fewer Section 4(f) uses than the BNSF Alternative and fewer than all individual geographic alternatives.
    Fewer effects on residences, commercial and industrial facilities, and community resources than the BNSF Alternative; effects vary by individual geographic alternative.
    Fewer construction impacts such as noise, farmland, air quality, cultural resources, parks, than the BNSF Alternative; effects vary by individual geographic alternative.
    Least constructability issues and lowest cost alternative (together with a similar alignment terminating with the Bakersfield South Alternative).
    Takes only 1 minute longer than the BNSF Alternative between Fresno and Bakersfield, plus adds 1 minute to the Bakersfield to Palmdale segment related to the Bakersfield station.
The estimated cost of the Preferred Alternative is about $800 million less than the BNSF Alternative, and is the lowest cost alternative of all possible alternative combinations (together with a similar alignment terminating with the Bakersfield South Alternative). The Preferred Alternative bypasses the downtown areas of the cities of Corcoran, Wasco, and Shafter and the unincorporated communities of Laton, Grangeville, Armona, and Allensworth, while also reducing the impacts in downtown Fresno and Bakersfield as compared to the BNSF alternative. Lastly, the Preferred Alternative minimizes constructability issues that can lead to delay and cost escalation.
Also today, the Madera County Board of Supervisors voted to withdraw from a lawsuit against the CHSR Authority over plans  for the  Madera to Fresno leg of the of the route,expected to break ground late this summer. Other entities still in the suit including both the Madera and Merced Farm Bureaus  say they are committed to the suit that will be heard by a judge April 19.

Around Visalia: Condemnation / Dialysis / Hookah / More

City Eyes Condemnation for East Visalia Street

The City of Visalia Council is expected to approve a plan to condemn a portion of Gas Co land to extend School St to Burke this week. The location is in the area the city want to build the new Civic Center. The city wants to start  construction of the new Emergency Communication Center this fall nearby.  Negotiations to buy the land have stalled says a report.

Dialysis Center Coming To Ben Maddox

Construction of a new 11,200 sf dialysis center and medical office is coming to 1140 S Ben Maddox.The site would be next to Kaweah Delta’s Prompt Care Clinic near Tulare Ave. The dialysis center is expected  to be a second location for DiVita in town.

Hookah Lounge Planned

Visalia may get a Hookah Lounge at Visalia Marketplace shopping center anchored by KMART. The applicant on the project, Ahmad Jamal proposed his plan at the city site-plan review process this week.Most lounges offer Turkish coffee and hookah pipes burning herbal shisha  containing no tobacco, or nicotine. The lounges are popular gathering spots in urban areas with one describing the experience as follows: “The important thing is not what you put in the pipe, but who is with you while you’re smoking…it’s a complete experience…in a cafe like this one, you find the good people, the old people, the interesting people.”Typically a disposable mouthpiece is provided for each user for hygiene reasons.

More Visitors

Visalia had a 9 percent increase in TOT (bed tax) in 2012 says the annual report of the Visalia Convention and Visitor Bureau.

Energy Savings

California Energy Commission is expected to approve a $500,000 loan  to the City of Visalia to retrofit lighting controls and for HVAC projects. Based on the loan amount, the simple payback is approximately 6.3 years. The City expects to receive approximately $29,000 in utility rebates /incentives from San Diego Gas and Electric and Southern California Gas. The project  will save approximately $78,837 annually.

 

 

 

Around Tulare: Interchange / Juice Co

Tulare Council Asked To Back $400,000 To Help Juice Co

Tulare City Council is being asked April 2 to apply for $400,000 in CBDG funds to extend sewer to the Tulare airport area to help attract a Kern County juice company to town. Having sewer nearby could help attract other food makers to this part of the city say officials.

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Tulare’s Cartmill Interchange Could Break Ground September 1

Tulare City Engineer Mike Whitlock says right of way acquisition is nearly done  and construction of  the $35 million Cartmill interchange on the north end of town is expected to break ground September 1. “We are days away from Right of Way certification by CalTrans that will move the project to construction.”
“We believe with the help of TCAG and CalTrans we will be approved for $7 million that will fill the shortfall on the project” says Whitlock. The funding would be approved May 1 at the California Transportation Commission meeting with monies from a Hwy 99 surplus fund based on savings on past 99 projects. Construction would be 12 to 18 months. The new interchange is expected to draw major new commercial development  to the area including a new shopping center.

The bridge/crossing infrastructure projects add up to some $60 million already approved and either under construction or poised to be in town.Besides the Cartmill project, the community will soon see the Bardsley rail crossing and Santa Fe pedestrian bridge under construction.

 

 

 

 

‘Best Offer’ Buys Visalia’s Sequoia Mall

Visalia’s other retail center- Sequoia Mall

Visalia’s Sequoia Mall is on the sales block in what looks like a fire sale. A Sacramento real estate firm, Core Commercial, listed the property this month with the price tag as “Best Offer” with offers due May 1.The 1974-built mall has 229,000 sf with 44% of that vacant that includes the Tower Plaza. The mall itself is 60% vacant excluding Sears and Hobby Lobby that are owned separately.The sale includes Tower Plaza. The announcement comes after the mall’s current owners KIMCO and Schottenstein have failed to invest in any remodel effort over the years notes Visalia City Manager Steve Salomon.”We talked to the brokers and said we would meet in April with any prospective buyers to encourage them” adds Salomon.

The sale was announced only days after the city council decided to open up south Mooney Blvd for new development in coming years.”You could make the argument that perhaps the next developer will get this property at a reasonable enough price that something good could happen here” says council member Warren Gubler.

This mall has always played second fiddle to its more prosperous sister retail complex- Visalia Mall down the block.But in recent years  after the closure of Borders -the mall has been a ghost town.
Although the price of the Sequoia mall is not listed – it was sold in 2003 for 27.4 million to Centro Watt and resold in 2007 to the current owners,listed at the time at $30 million. The county tax collector lists the appraised price today at about $16.9 million. Informed sources says the current owner owes more than $20 million but that it  could be sold for half that. Another source says the current sale was likely forced by the mall’s lenders.

A major overhaul of the mall is necessary most agree and any deal requires the active cooperation of Sears and Hobby Lobby in what could be a complicated deal.On the plus side a cheap land price could draw good demand right now but the buyer/developer needs to be a sophisticated player. Sears needs a new store but times are not great for this company. There  are several vacant out parcels in this mall including the vacant Longs Drug Store on Caldwell .One bright spot – a new gym will open in the back of the property soon.

The most obvious choice for an anchor in a remodel – a new Regal 12-plex or Edwards Theater like was done on Blackstone in Fresno. Regal leases this mall’s older movie theater now.

Tough Time For Some Central Valley Hospitals

Smaller independent hospitals are having a tough time making the cash flow. From Kingsburg to Porterville, Corcoran to Tulare, these home town health care centers have been bleeding red ink.

In Kingsburg the Board of Directors is considering tearing down the 35 bed district  hospital that has been shuttered for several years.

ER Shut Down

In Corcoran last month they laid off 19 workers as the CEO Jonathan Brenn noted a “recent severe decline in cash collections resulting from fewer patients than normal.” Late this month their ER shut down and surgical services were suspended by state order. The hospital that gets most of its revenue from government health payments has 32 beds. Its staff of 80 is now down to 50. The hospital has a seen a decline of surgical prison business as fewer inmates are housed in state prisons.

In Porterville the 167 bed Sierra View hospital abruptly fired their CEO in January after a decline in profitability.

Tulare’s Problems

But nowhere has the financial pain more in the public eye than at  Tulare Regional Medical Center where the board recently brought back fired CEO Shawn Bolouki to do a “turnaround”  of the financially strapped district.

The need is clear after March 11 when Fitch agency announced that Tulare bond ratings had been downgraded from to ‘B+’ from ‘BB+’ and its Rating Outlook  revised to Negative from Stable.

Fitch cited “CONTINUED FINANCIAL WEAKENING – a multi-notch downgrade that is driven by a rapid decline in Tulare’s overall financial profile in fiscal year ended June 30, 2012 (unaudited interim financials), with continued deterioration through the six-month interim period ended Dec. 31, 2012.

LARGE OPERATING LOSSES: Impacted by challenged patient utilization and increased bad debt, profitability took a sharp turn as the district posted large operating losses of $7.3 million in fiscal 2012 and $3.8 million through the interim period, respectively.

WEAK BALANCE SHEET: Unrestricted cash and investments declined sharply to $10.5 million at Dec. 31, 2012 from $24.5 million at fiscal year-end (FYE) 2010 due to increased capital investments and negative operating cash flow. Additionally, debt load increased in December 2011 due to a $6 million loan to finance certain equipment. Expected further demand on liquidity for the construction project presents significant concerns.

CONSTRUCTION PROJECT DELAYED: The completion of the new bed tower that was initially scheduled for October 2012 has been delayed due to structural problems related to the concrete used on certain floors. Tulare is currently developing a recovery schedule and evaluating the amount of additional funding necessary to complete the project.

RECENT MANAGEMENT TURNOVER  – that it called “considerable”. All in all a tough assessment of the Tulare hospital district.

Looking For A Partner?

This bombshell announcement got Bolouki out in the community attending several public meetings announcing that Tulare might need a stronger financial partner going forward.

“Our best partner will be another not for profit or academic hospital” he said. “The days of stand-alone hospitals are over.” he told a chamber meeting according to reports in Tulare Voice newspaper.

Who would that partner be?

The largest Tulare County player might be Kaweah Delta Healthcare District who is financially strong.

But Kaweah’s  CEO Lindsay Mann says they have not been contacted by anyone from Tulare and says the idea never came up.

In Kings County, nonprofit Adventists Healthcare might be a logical partner having expanded in recent years in both Fresno and Tulare counties including buying up several hospitals.But “we have not been approached by Tulare” says Christine Pickering of Adventist Health.

Now A Recall

This week the Tulare board of directors had a new problem.Three of its members have been noticed for recall confirms the Tulare County clerk on March 26. One of the recall notices needs to be refiled to add a signature says the clerk but looks like an election to recall a majority of the board including the healthcare district’s chair Sherri Ball – will take place.

Seismic Issue

Putting the pressure on Tulare and Visalia are state seismic requirements that push these districts to make big capital expenditures.

Kaweah Delta who already has built a new tower and plans several more at $150 million a pop says it will try to make the case to the state that its existing Mineral King wing “should be preserved beyond 2030 because the seismic risks in Visalia are very low and the structure,being remodeled now, is sound” says Mann. “We will work through legislation if need be” adds Mann, in a move to postpone the need to add another tower in the short term. Otherwise, Kaweah could need to build a new tower in as little as 7 years says a letter to the Visalia council sent last month.The board and council agreed on a expansion master-plan at a recent meeting.

In Tulare their half built $85 million tower is on hold because of concrete quality issues.

Delaware North Wins Kings Canyon Nat’l Park Concession

New York-based Delaware North Parks and Resorts has won a 10 year concession contract to operate overnight accommodations in Kings Canyon National Parks beginning this fall NPS announced March 6.

The hospitality company already provides service in next door park Sequoia National Park as well as Yosemite, Yellowstone and Grand Canyon.

Delaware North will take over from Kings Canyon Park Services who will continue to operate the lodging and food concession this sumer at Cedar Grove and Grant Grove.The company is based in Carmel and is  known on as Asilomar Management.They own the Montecito Sequoia Lodge in Sequoia National Forest between Kings Canyon and Sequoia. The company secured the Kings Canyon contract in 2001.

Key to the new contract will be requirements that Delaware North  will upgrade older facilities at Grant Grove and spend an estimated $5.4 million doing so.

Concession facilities in Kings Canyon include lodging, retail, and food services at Grant Grove and Cedar Grove. Grant Grove includes the 36-room John Muir Lodge, which was constructed in the late-1990s, plus 33 rustic cabins and 17 tent cabins. A gift shop, restaurant, and market are in the Grant Grove area.

According to the website National Park Traveler revenues for the park are as follows.

“Cedar Grove has a 21-room lodge that includes a small market plus a small food service operation. Lodging revenues for 2010 were $1.9 million at Grant Grove and $366,000 at Cedar Grove. Food and beverage revenues for the same year were $1.1 million and $180,000, respectively. The winning bidder will be required to pay the existing concessionaire $1.1 million for ownership interest that will convert to leasehold interest under the new contract.
The $1.1 million obligation is most likely for the existing concessionaire’s remaining ownership interest in John Muir Lodge, which opened in 1999. Buildings are typically depreciated over a 40-year period.
Merchandise, supplies, and equipment will entail an expenditure similar to that for possessory interest.

Overall, the National Park Service estimates an initial investment for the winning applicant will be approximately $3 million. The prospectus requires an annual payment of 2.6 percent of revenues be assigned to a repair and maintenance reserve and an annual franchise fee of 4 percent of revenues.

The major construction project (called the “concession facilities improvement program”) included in the prospectus is the demolition and replacement of the Grant Grove restaurant and check-in area.
Park Service officials are estimating this will cost approximately $5.4 million and be completed by October 2016. The new concessionaire will be required to develop a temporary food service operation until the new restaurant is functioning. The current gift shop will require remodeling, too, as it is currently connected to the building to be demolished.”

Delaware North made a similar investment in Sequoia when it built the $14 million Wuksachi Lodge after it gained contract there.

Meanwhile at Montecito Sequoia  the Asilomar based  owner has built four new upscale cabins that sleep five each completed in January.

Visalia News : Airline Cancels Las Vegas Flights / City Mgr To Retire

Visalia News : Airline Cancels Las Vegas Route
Great Lakes Airlines has canceled  its Visalia to Las Vegas flights as of March 31 says airport manager Mario Cifuentes. The flight cancellation coincides with plans by the federal government to halt Essential Air Service flights from Ely Nevada that helped provide a plane to use for Visalia flights.
Cifuentes says he is hopeful the airline will offer Visalia an additional roundtrip flight to LAX soon – a route that has much more importance to Visalia he says. He expects some word in coming weeks. Great Lakes has a AM and noon hour flight to LAX currently.
 Visalia City Manager To Retire in Fall
City Manager Steve Salomon has announced his intent to retire from the City of Visalia in the Fall. While he gave no definitive date, he had previously informed the City Council that he would give six month notice if he planned to leave.
“Steve has helped shape this city into truly the best in the Central Valley,” said Visalia Mayor Amy Shuklian. “Through both good and challenging times, Steve always maintained a calm approach to deal with issues. His ability to forge relationships with community stakeholders is unprecedented. It will be difficult to imagine the City of Visalia without Steve Salomon as City Manager.”
In announcing his plans to retire, Mr. Salomon said, “I have had the pleasure and honor of working for the City Councils and the community since 1996, over 16 years. Much has been accomplished and the community’s quality has been enhanced.” Mr. Salomon also acknowledged the hundreds of City employees with whom he has worked. “Visalia, without a doubt, has the finest municipal organization in the State.”
He also thanked the City Council members he has worked with during his tenure. “Visalia has been blessed for decades with elected officials who serve only with the desire to make this place stronger and better. It shows in all facets of the community.”
During his tenure as Visalia’s City Manager, his accomplishments are highlighted with the expansion of services to meet the needs of Visalia citizens. They include: The passage of Measure T, the first sales tax augmentation in the State to fund on-going public safety operations; the opening of two new police substations in north and south Visalia; the addition of two new parking structures to keep up with the demands of a vital, thriving downtown; the opening of Visalia’s sixth fire station on Lovers Lane; the expansion of the Kaweah Delta Medical Center facilities, and; the opening and expansion of the Visalia Transit Center and the Transit Maintenance Facility.

Dairy News: Fed Order Bill / Heiskell Buys Out LOL Interest

Plan to Help Keep CA Dairies Afloat Gains Traction
WASHINGTON, D.C. – Congressman Costa joined fellow Valley Representative David Valadao in introducing legislation that would allow California dairy producers the option to enter into the Federal Milk Marketing Order. Currently, California operates under its own state-based order that establishes the price milk processors pay based on the dairy products they make, but many dairy producers have expressed concerns that they are paid less for their milk than producers in federal order states. The California Federal Milk Marketing Order Act is similar to the approach Costa advocated for during the Farm Bill negotiations last Congress.
“Far too many dairies in California have been forced to shutter their operations due to high feed prices and low returns on their products,” said Costa. “Having grown up working on a dairy, I know the industry’s unique challenges and am deeply committed to help dairymen and women keep their operations afloat. Our legislation will put control back in dairymen and dairywomen’s hands and give them the option to choose what works best for their business.”
The bipartisan legislation would not require California to enter the Federal Milk Marketing Order. Instead, it would allow producers the option to petition the Secretary of Agriculture for entrance into the Federal Order. Two-thirds of producers would have to vote in support of the change before California could transition to the new order.

Heiskell Buys Out LOL Feed Interest Here
TULARE, CA J.D. Heiskell & Co. announced  March 5 that it has purchased the 50% interest in Golden State Feed & Grain (GSF&G) held by Purina Animal Nutrition, its partner in that joint venture since the inception of the business in August of 2010. Purina is a Land O Lakes company. Heiskell will now hold 100% interest in the feed operations in both Pixley and in Guernsey near Hanford where the Penney Newman facility is located.
Golden State Feed & Grain serves livestock producers and dairy farmers in California with mixed feeds, rolled grains, mineral mixes, commodity blends and a variety of animal health and nutrition products. Heiskell plans to retire the GSF&G brand over the coming months and will transition all employees and products into the current J.D. Heiskell & Company business platform in California. Customers and vendors should notice little change in the business relationship they have had with GSF&G other than the name of the business. Rick Bowen, the current General Manager for the venture, will continue to serve in the same capacity for Heiskell.
“We want to thank the Purina Animal Nutrition team for their support and professionalism as a partner during the life of the business venture,” said Heiskell President and CEO Ryan Pellett. “In addition we are excited about the loyal and committed group of employees that create excellence daily at GSF&G and look forward to having them as members of the Heiskell team going forward.”

New Birth Center Planned for Hanford

HANFORD – Adventist Health announced plans to build a new $40 million Family Birth Center to provide obstetrics and delivery services for Kings County families.

The Adventist Health corporate board in Roseville, Calif., approved funding for the project on Feb. 11, and groundbreaking is expected to occur this year for the 49,000-square-foot center that will be built adjacent to Adventist Medical Center – Hanford. It will replace the current birth center at Central Valley General Hospital on Douty Street in Hanford.

“We’re excited to announce a new birthplace for Kings County families,” said Adventist Health / Central Valley Network president and CEO Wayne Ferch, today. “The Family Birth Center helps us serve our region as a resource for starting healthy and happy families.”

Features of the new facility include:
All private rooms
34 beds for mothers
6 neonatal intensive care beds
New equipment and technology
Two operating rooms
Design focused on the patient’s experience

The new center is also expected to help attract physicians to the region. Currently, about six babies are born every day at Central Valley General Hospital. Project funding will be provided through private gifts and Adventist Health, requiring no public taxes.