Los Angeles Works - Mayors Office of Economic and Business Policy

"Apartment demand drives commercial building rebound"- LA Times

Los Angeles Works — Sun, 22 Apr 2012 12:00:AM PST

Apartment demand drives commercial building rebound

After a long lull during the recession, construction cranes start to return to the Southern California skyline.

The 8500 project at La Cienega Boulevard and Burton Way is one sign of a resurgence in commercial real estate development in the Los Angeles area. Demand for apartments is driving much of the rebound. (Mark Bolster, Los Angeles Times / April 19, 2012)

By Roger Vincent, Los Angeles Times

April 22, 2012

After an extended lull brought on by the economic downturn, commercial real estate developers are building again.

Some of the activity involves the revival of projects that stopped during the recession, but many others are new from the ground up and mark the return of construction cranes to the Southern California skyline along with the injection of billions of dollars into the local economy.

An intense demand for apartments is the biggest driver of development, as the improving economy supports the formation of new households. But offices, warehouses and stores are also being built, according to real estate brokerage Marcus & Millichap.

"We haven't had any meaningful construction of any type since 2005 or 2006," said Hessam Nadji, managing director of research at the brokerage. "A new cycle is beginning."

He expects 6,600 apartments and 2.4 million square feet of commercial space to be delivered this year in Los Angeles County. More is on the way.

"We're finally coming out of our bunkers," Los Angeles developer Wayne Ratkovich said of his fellow builders. "People are tired of being down in the dumps and are starting to look for opportunities."

Ratkovich is renovating aviation mogul Howard Hughes' former offices in Playa Vista, a development called the Hercules Campus that he expects to cost as much as $90 million. His tenants, including YouTube, are also spending substantial sums to build out their spaces, he said.

One of the region's most high-profile developers, Rick Caruso, estimated that he has about $750 million worth of development in the pipeline including what he called a "huge" project the size of his popular Grove shopping center in the Fairfax district of Los Angeles.

He declined to elaborate or say where in Southern California he intends to build the new project. One development he expects to finish in September is a $60-million luxury apartment complex on Burton Way at La Cienega Boulevard. The eight-story complex, called 8500, will house 88 apartments over a Trader Joe's grocery store.

At his Americana at Brand shopping and residential complex in Glendale, Caruso is building a new Nordstrom store and adding four apartments to the development's roster of 100 condominiums and 238 apartments, almost fully occupied.

The developer said he also expects to start work shortly on his long-stalled Miramar Hotel project in Santa Barbara.

"It's time to break ground," he said. "We just paid off the loan and will start development."

The dilapidated Miramar has been closed for more than a decade. Caruso's plans call for razing it and building a $170-million hotel with 186 rooms.

Caruso said he would also like his company, Caruso Affiliated, to grow through acquisitions, but that commercial real estate prices have rebounded so much since the recession that it's hard to realize a substantial financial return from such investments.

"People are falling over themselves and making crazy deals," he said. "It's as if 2008 never existed."

Investors have driven up the prices of top-quality buildings in great locations, but land prices are still fairly depressed, Caruso said. Lenders are also game to finance new projects for developers they trust.

"The opportunity and upside on development is better than it's ever been, especially [compared] to acquisitions," he said.

Industrial buildings such as warehouse distribution centers are rising again in the Inland Empire to handle the traffic of merchandise through the ports of L.A. and Long Beach. In Long Beach, a $490-million courthouse is being built in a public-private partnership. It's set to open next year.

Numerous older, small industrial buildings on L.A.'s Westside have been converted to offices for creative types. One of the largest office projects coming on line this year is the Red Building, a $165-million, 400,000-square-foot complex in the Pacific Design Center in West Hollywood designed by architect Cesar Pelli.

The darling of Southern California development right now, though, is the apartment building.

Several factors are driving demand, said developer Ziv Cohen, chief operating officer of Resmark Apartment Living, a division of L.A.-based Resmark Cos. People reaching their 20s and 30s, known as Generation Y, tend to marry later than previous generations, he said. They are also more mobile in their careers, which tend to be in urban areas. As the economy recovers, they are leaving their parents' homes or jettisoning roommates and setting up households of their own.

Some older renters deliberately downsized from houses, while others became renters by necessity when they couldn't keep up the mortgage payments on their homes or were priced out of the market, Cohen said.

Resmark has invested in or is committed to investing in more than $300 million worth of apartments in the West including the Avenue, a 180-unit complex that opened in January in Hollywood. His company will also build 160 units as part of the Village at Santa Monica being constructed on Ocean Avenue.

Developers are being spurred to build by "historically low building costs," including rock-bottom interest rates, Cohen said.

The trend of declining homeownership will eventually reverse, he predicted.

"We believe the window of opportunity on apartment development will be open over the next 24 months," he said.

Marcus & Millichap's Nadji agreed that the apartment development boom has a ways to go.

"The supply that has been added so far is going to fall short of demand," he said. "Rental demand is going to continue to increase as jobs come back, and people remain wary of buying homes or are unable to qualify to buy a home."

"California home values' year-over-year climb is first since 2010"- LA Times

Los Angeles Works — Fri, 20 Apr 2012 12:00:AM PST

California home values' year-over-year climb is first since 2010

The median home price in California rises to $251,000 in March, up 0.8% from a year earlier. Number of sales jumps 2.9%.

By Alejandro Lazo, Los Angeles Times

April 20, 2012

California's median home price posted its first year-over-year gain since the fall of 2010 as sales picked up with the end of the traditionally sluggish winter season.

The Golden State's median home price in March rose 0.8% from the same month last year to hit $251,000. It was the first year-over-year increase since September 2010; that October, home values sank after the expiration of popular tax credits aimed at boosting the market. Last month's median price rose 5% from February, San Diego real estate firm DataQuick reported Thursday.

The year-over-year increase was small, but if prices hold, it could mark the first step toward a recovery.

"While the changes we're seeing are incremental, they're incremental in a positive direction," DataQuick President John Walsh said.

The bottom of the market was hit during the depths of the financial crisis in April 2009, when the state's median home price was $221,000.

The median is the point at which half the homes in the state sold for more and half for less. The median can be influenced by the types of homes selling. The high number of foreclosed homes and other so-called distressed properties remain a sizable weight on the market, and such sales have helped pull down the median price for months.

The number of sales increased 2.9% from March 2010 to hit 37,481. That was up 26.5% from February, a normal surge as winter gives way to spring and more people begin moving.

Sales of distressed homes — foreclosures and short sales — made up more than half of the market. Of all previously owned homes sold last month, 1 in 3 was a foreclosure and close to 1 in 5 was a short sale, in which a home is sold for less than the debt on the property.

In Southern California, the median home price of $280,000 was flat, down just 0.2% from March 2011, and a 5.8% increase from February. The number of sales increased 2.8% year-over-year to 19,953 homes in the six-county region, DataQuick reported. Sales improved the most in Orange, Ventura and San Diego counties.

Bay Area home sales notched their best March in five years as prices appeared to level off. Sales rose 9.1% from March 2011, totaling 7,694 across the nine-county region, and up 34.9% from the prior month. The region's median price was $358,000, down 0.6% from the same month a year earlier and up 10.2% from February.

The median price improved year-over-year in Napa, Contra Costa, Santa Clara and Sonoma counties. In San Francisco County, it was unchanged.

Nationally in March, buyers picked up 2.6% fewer existing homes — pushing the seasonally adjusted annual rate down to 4.48 million from February's 4.6 million, according to the National Assn. of Realtors.

In the West, sales were down 7.4% from February and down 0.9% from March 2011. Last month's median price of $198,300 was 1.6% higher than that of a year earlier.

"Retail sales soar, giving lift to stocks"- LA Times

Los Angeles Works — Mon, 16 Apr 2012 12:00:AM PST

Retail sales soar, giving lift to stocks

Shoppers at the Forever 21 store in Redondo Beach. Retail sales last month rose briskly, according to a Census Bureau report Monday, far exceeding analysts expectations. (Lawrence K. Ho / Los Angeles Times / April 16, 2012)

By Don Lee

April 16, 2012, 7:43 a.m.

WASHINGTON -- Forget high gas prices and stagnant incomes. American consumers are spending like the good times are back.

Retail sales in March far exceeded analysts' forecasts, growing at a strong 0.8% pace after similarly robust gains in the prior two months, the Census Bureau reported Monday.

"Consumers shot the lights out in the first quarter," said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi in New York, in a note to clients.

Stocks rose in early trading on the news, but there were some caveats.

Once again, the unseasonably warm winter weather appears to have played a role in the better-than-expected numbers. Spending at home and garden centers last month surged 3% from February, and their sales were up a whopping 14.1% from March 2011. Sales of cars, clothes, electronics and home furnishings also grew robustly over the month.

It remains to be seen how much the burst of spending in the winter will affect retail sales this spring. Weather also probably boosted employment earlier this year, and there was a significant correction in March when job growth slowed sharply.

Sales in the second quarter "will not have the benefit of mild winter weather and accelerating auto sales growth," said analysts at TD Bank. "Plus, we can't ignore the reality of stagnant real income growth."

"Hundreds flock to Venice town hall on Silicon Beach tech scene"- LA Times

Los Angeles Works — Sun, 15 Apr 2012 12:00:AM PST

Hundreds flock to Venice town hall on Silicon Beach tech scene

By Andrea Chang

5:44 PM PDT, April 15, 2012

Silicon Beach is spreading to Venice.

The quirky beach-side community drew hundreds of attendees to a packed town hall meeting dubbed The Emergence of Silicon Beach on Thursday to discuss the burgeoning Westside tech scene and how to attract firms and talent to the area.

Executives from Google, local start-ups Viddy and Mogreet, and accelerator Amplify were on hand for a panel moderated by Los Angeles City Councilman Bill Rosendahl, who repeatedly told audience members that they were witnessing a “Venicessance.” Nearly two dozen tech companies set up booths to tout their products and ideas to about 400 attendees.

Panelist James Citron, chief executive and co-founder of mobile marketing firm Mogreet, said Southern California has come a long way and is finally attracting investment capital and interest.

“Ten years ago, it was very hard,” he said. “You had to fly up to San Francisco and do the Sand Hill Road dance, for those of you who know the venture capital world. Now they’re coming down here looking for great companies, so that’s a big fundamental change.”

Thomas Williams, senior site and engineering director for Google’s Los Angeles office -- which recently relocated to the Frank Gehry-designed Binoculars Building in Venice -- said he wanted to bring more tech events, mixers and partnerships to Venice to help it become “more of a tech hub.”

“I’m very open now that we have a campus to being able to use it to help build relationships,” he said. “Regardless of whether we benefit directly, getting academics and getting technology companies can only be a good thing.”

As Silicon Beach grows, Amplify co-founder Jeff Solomon said, the area will be home to “real businesses that are generating real money that employ real people that aren’t necessarily going to sell for $1 billion to Facebook.”

“It’s enjoyable to run your own business, to do something you’re passionate about,” he said. “I like the idea of getting those people.”

"Los Angeles Port Traffic Ramps Up"- LA Business Journal

Los Angeles Works — Fri, 13 Apr 2012 12:00:AM PST

Los Angeles Port Traffic Ramps Up

By James Rufus Koren Friday, April 13, 2012

Traffic at the Port of Los Angeles surged in March as factories in China resumed production after an early lunar New Year slowed activity in February.

The number of cargo containers moving through the port jumped 8.3 percent over March of last year. Imports drove that growth, showing a 9.3 percent bump over last March.

Factories in Asia typically shut down for at least a week to celebrate the lunar New Year, resulting in a production and shipping lull that drove down February figures this year. Importers made up for that lost time in March, bringing in nearly 325,000 shipping containers compared to fewer than 300,000 last March.

But March exports were down 2.4 percent to 188,155 containers, compared with last March. The decline ended a 21-month streak of export growth, though port officials say they aren’t concerned.

“Month after month, our exports have been up. This was just a 2 percent decrease – not too significant,” said port spokeswoman Rachel Campbell. “We remain focused on the big picture, which shows an overall increase in exports.”

"New Enterprize Zone Approved"- LA Business Journal

Los Angeles Works — Fri, 13 Apr 2012 12:00:AM PST

New Enterprize Zone Approved

By Howard Fine Friday, April 13, 2012

The state gave final approval Thursday for a new enterprise zone for business tax credits in Los Angeles County.

The Harbor Gateway Communities Enterprise Zone, which will take effect on May 1, includes the city of Huntington Park, the portion of the city of Los Angeles extending down to the harbor area and parts of unincorporated Los Angeles County.

Businesses locating within the zone will be eligible for tax credits of up to $35,000 over five years for each employee they hire and for part of a $20 million pool of tax credits for machinery purchases.

The zone was first proposed in late 2010, just before the state enterprise zone program came under threat.

Last year, Gov. Jerry Brown proposed eliminating enterprise zones and diverting more than $1 billion in unused tax credits back to the state’s general fund. He cited studies that claimed many companies receiving the tax credits were not hiring additional employees or were otherwise gaming the system.

Business interests and local government officials fought back, saying enterprise zones were one of the few tools left for state and local governments to foster job creation.

The enterprise zone program survived, but is under renewed budgetary threat this year.

"Exports help California reverse long-term manufacturing decline"- LA Times

Los Angeles Works — Thu, 12 Apr 2012 12:00:AM PST

Exports help California reverse long-term manufacturing decline

California exports, shipped overseas on ships like this one arriving at the Port of Los Angeles, have helped reverse a long-term decline in manufacturing jobs. (Port of Los Angeles / April 3, 2012)

By Ronald D. White

3:22 PM PDT, April 12, 2012

Consistently strong demand for California exports has helped the state reverse a long-term decline in manufacturing jobs, according to a report released by Beacon Economics.

The report said California has had an unbroken string of year-over-year export increases from November 2009 through February of this year.

The value of goods shipped abroad by California businesses in February reached $12.85 billion, up 9.2% from the $11.76 billion in exports reported in February 2011, according to the Beacon Economics analysis of U.S. Commerce Department trade statistics.

California’s exports of manufactured goods grew 9.1% to $8.22 billion, while non-manufactured exports, which are mostly raw materials and agricultural products, were up 3.6% to $1.61 billion.

The totals were affected by the fact that February had 29 days this year instead of the usual 28.

“With 2012 a leap year, we got the Sadie Hawkins Day bump this February,” said Jock O’Connell, Beacon Economics’ international trade advisor. “Discounting for that one extra day, California’s export trade this February was up by a solid 5.5% over last February.”

Jordan Levine, Beacon Economics' director of economic research, said the continuing strength in the state's exports has helped California add 9,900 manufacturing jobs since February 2010, when the statewide total had fallen to 1.24 million jobs.

The modest job gain comes after a decade of steady declines in California manufacturing jobs, which dropped 32.61% between 2000 and 2010. In 2000, the state had 1.84 million such jobs.

"Today's figures indicate that the [manufacturing] sector will continue to be aided by foreign demand for California-made goods," Levine said.

Beacon Economics expects to see California's exporters post relatively modest year-over-year growth figures in the next several months.

The state's busiest cargo container port, Los Angeles, released its own trade figures for the month of March. The port got a strong boost in import traffic in March to 324,758 containers, up 9.3% from a year earlier. Exports fell to 188,155 containers, down 2.4% from March 2011.

The port handled 1.9 million containers in the first three months of this year, up 3.23% from the same period in 2011.

"L.A. aims to speed development with streamlined permit process"- Daily News

Los Angeles Works — Mon, 09 Apr 2012 12:00:AM PST

L.A. aims to speed development with streamlined permit process

By Dakota Smith, Staff Writer

Posted: 04/09/2012 10:11:50 PM PDT

Updated: 04/09/2012 10:13:21 PM PDT

As part of an effort to make Los Angeles more business friendly, Mayor Antonio Villaraigosa on Monday signed new laws designed to help developers and small businesses, such as restaurants and mom-and-pop shops, by streamlining the permitting process.

The ordinances, which took four years of work and were approved by the City Council last week, are intended to ease the process of acquiring entitlements, zoning permits and other approvals necessary to build or open a business in L.A.

And they're aimed at addressing one of the business community's top gripes against City Hall - that it takes too long to get a project approved.

"Time is money, which is why we know that cutting red tape is absolutely essential to giving the development community confidence that it's smart to reinvest in the city," Villaraigosa said.

Planning Department Deputy Director Allen Bell said the ordinances will affect everyone from homeowners seeking permission to build an addition to their house to business owners looking to expand their operations.

Under previous laws, an entrepreneur seeking to open a wine bar in a historical building, and asking for a parking variance, could face three different hearings with three different appeal options.

The new laws are intended to reduce the number of hearings and appeals, to make it easier for the entrepreneur to get his or her permits and open for business.

The changes are part of an effort to update the city's zoning code, which hasn't been adjusted since 1946, making it confusing for developers, neighborhood groups and planners.

"I've read it for 10 years and still can't figure it out," Bell said.

The ordinance also extends project entitlements from two to three years. Previously, after two years, developers would have to apply for a yearlong extension.

Additionally, the legislation is retroactively applicable to projects approved between July 2005 and December 2010, a step intended to help developments felled by the economic downturn.

"This a shot in the arm for the development community," said Percival Vaz, chief executive officer at AMCAL, an Agoura Hills-based developer of market rate and affordable housing.

Timelines and clear approval deadlines are critical when trying to get funding for an affordable housing project, Vaz said. And the time savings can save large developers hundreds of thousands of dollars on a project.

"That's a big deal, especially in affordable housing, where every dollar you're struggling to get to make them feasible in the first place," Vaz added.

Bell believes that neighborhood groups will benefit from parts of the ordinance, such as the appeals section, which provides clear direction on how neighborhood groups should file appeals to projects.

But Jack Allen, a member of the Palisades Community Council, expressed dismay at the mayor's stamp of approval, particularly on extending project entitlements for an extra year.

"It's still the same bad ordinance," Allen said.

Developers can sell entitled land for a higher price than unentitled land, and the extension of the official entitlement period just encourages that trend, Allen said.

Neighborhoods will be left with more vacant lots, he fears.

The ordinance is one of numerous Planning Department overhauls either planned or recently completed by the city.

"Major chain stores post a healthy 4.3% sales gain in March"- LA Times

Los Angeles Works — Fri, 06 Apr 2012 12:00:AM PST

Major chain stores post a healthy 4.3% sales gain in March

The increase beats analysts' expectations of a more modest 3.5% rise in a sign of a recovering economy and job market.

Shoppers along Colorado Boulevard in Pasadena this week said they were in the mood to refresh their wardrobes with some bright colors, floral patterns and other spring fashions beckoning from store windows. (Anne Cusack, Los Angeles Times / April 6, 2012)

By Shan Li, Los Angeles Times

April 6, 2012

Shoppers hit the malls in March and provided a boost for the nation's retailers, a sign of a recovering consumer economy and job market — despite the pinch of rising gasoline prices.

Major chain stores posted a healthy 4.3% sales increase in March compared with the same month a year earlier, beating analysts' expectations of a more modest 3.5% rise, according to Thomson Reuters' tally of 20 retailers.

"We are seeing more consistent performance of U.S. jobs and more stabilization of wages," said Laura Gurski, global head of the retail practice at consulting firm A.T. Kearney. "The average American consumer right now feels better about where they are and are spending a bit more money."

Strong retail sales are just one sign of an economy on the mend. Stock market indexes are coming off their best first quarter since 1998. The number of people applying for jobless benefits dropped last week to the lowest level since April 2008, the Labor Department said Thursday, a promising sign ahead of national unemployment numbers for March to be released Friday.

Along Colorado Boulevard in Pasadena on Wednesday, shoppers said they were in the mood to refresh their wardrobes with some bright colors, floral patterns and other spring fashions beckoning from store windows.

"I've been shopping for the past few days and looking for heels to wear to church for Easter," said Patrice Harris, 36, a high school teacher who had just spent $100 on a pair of teal leather sandals. "I've held back the last few years, but I'm working hard and it's time for some new things."

Shoppers who would normally wait longer for spring items are flocking to stores because of the unseasonably warm weather in much of the country, analysts said. An earlier Easter this year — April 8 versus April 24 last year — has also given retailers an extra shot in the arm for March.

"There has been a pull forward of early spring spending that might normally take place in April," said Ken Perkins, a retail expert at Retail Metrics Inc. "That means April will be weak. But beyond that, there are good signs going forward."

Top performers were a mixture of high-end and moderately priced chains. Teen action-sports chain Zumiez Inc. led the way with a 14.1% bump. Off-price retailers Ross Stores Inc. and TJX Cos. both reported a strong 10% increase. Gap Inc., which has been struggling in the last year, beat expectations with a robust 8% jump.

Results are based on sales at stores open at least a year, known as same-store sales and considered an important measure of a retailer's health because it excludes the effect of stores' openings and closings.

All told, about 59% of retailers beat expectations, according to Thomson Reuters.

Industry watchers say the gap between low-income and more prosperous shoppers continues to shape the retail industry. Wealthier consumers, buoyed by the stock market rally, have flocked back to luxury chains and high-end department stores, while people living paycheck to paycheck continue to be squeezed by soaring gas prices.

"Middle- and upper-income shoppers feel better about spending," Perkins said. "But moderate consumers have not been feeling the benefit of the slow recovery. Their wage gains have been minimal, if at all."

Nordstrom Inc. saw sales jump 8.6%, while Macy's Inc., which has soared after implementing a localization initiative, reported a 7.3% rise.

Retailers are showing their mixed success with investors as well. As of Thursday, Macy's shares have jumped 66% year over year and Nordstrom shares have risen 23%.

In contrast, at moderately priced J.C. Penney Co., shares are down 27% year over year, and the retailer said Thursday that it would cut about 900 jobs, including 600 at headquarters. After a poor holiday season, the company rolled out a new pricing strategy this year and said it would no longer report monthly same-store sales.

Discount giant Wal-Mart Stores Inc., which also does not report monthly figures, has seen its core customers trade down to dollar stores. After nine straight quarters of sales declines, the retailer began a turnaround last year by reemphasizing rock-bottom prices.

"Some retailers like Wal-Mart have said that gas prices had an impact" on their shoppers, said Judith Russell, editor of the Robin Report, a retail industry publication. "Unless you're a luxury store or an up-and-coming brand, retailers find they still have to be promotional and offer sales."

Analysts predict that healthy levels of consumer spending will continue into the summer, but some worry that high gas prices may burn away extra cash that people might otherwise have for shopping.

"Gas is one thing to keep an eye on during the back-to-school season," Gurski said. "If we feel an impact of gas, it will be closer to July or August."

But Perkins predicted that high gas prices wouldn't deter shoppers from updating their spring wardrobes.

"It's not the same shock as last year," Perkins said. "If prices stay around four bucks, consumers will be able to say 'All right, I've been here before, I've already worked it into my budget.'"

Although she's graduating in May and worried about finding work, Lisette Mendez, 24, of El Monte was hunting for girlie fashions on Colorado Boulevard this week.

"More wedges, pink pants, dresses, more of everything," said Mendez, ticking off a mental shopping list. "I'm afraid that there aren't that many jobs out there, but I'm due for a pair of new shorts."

"Service industry growing, adds jobs"- Daily News

Los Angeles Works — Wed, 04 Apr 2012 12:00:AM PST

Service industry growing, adds jobs

By Christopher S. Rugaber, Associated Press

Posted: 04/04/2012 07:06:06 PM PDT

WASHINGTON - U.S. service companies expanded at a healthy pace last month and stepped up hiring, more evidence that the economy is growing and adding jobs.

The Institute for Supply Management said Wednesday that its index of non-manufacturing activity dropped to 56 in March. That's down from February's 57.3, which was a 12-month high. Any reading above 50 indicates expansion.

Economists said the slight decline wasn't troubling because the reading was still at a healthy level that points to growth. And a measure of employment rose to near a six-year high reached in January.

The trade group of purchasing managers surveys roughly 90 percent of U.S. companies in all sectors outside of manufacturing. That includes retail, construction, financial services, health care and hotels.

Separately, payroll processor ADP said the economy added 209,000 private-sector jobs in March. The job gains in January and February were also revised up. The ADP survey does not include government jobs.

The two reports were encouraging ahead of Friday's government report on March job growth. Many economists expect that will show the fourth straight month of strong hiring.

"The (ISM) survey still suggests that domestic demand is contributing more to the recovery," said Paul Dales, an economist at Capital Economics, in a note to clients. "This survey is still consistent with some decent rates of economic growth."

The stock market, however, suffered its worst loss in a month. Traders focused on a weak bond auction in Spain.

"DWP Establishes Solar Power Buy-Back Program for Building Owners"- LA Business Journal

Los Angeles Works — Wed, 04 Apr 2012 12:00:AM PST

DWP Establishes Solar Power Buy-Back Program for Building Owners

By Howard Fine Wednesday, April 4, 2012

In a boost to the local solar power industry, commercial property owners in Los Angeles will soon be able to sell solar power generated from their buildings back to the Los Angeles Department of Water & Power.

The program, approved by the City Council on Tuesday, could launch in an initial test phase later this year. It will allow owners of commercial properties and apartment buildings that install solar panels to sell the excess solar power onto the DWP grid. The precise sale rates would be worked out on a case-by-case basis through contract negotiations between the building owners and the DWP.

This resale program is expected to make solar power more attractive for commercial property owners and for solar panel installers.

Under the long-term lease option currently gaining popularity for financing solar panel installations, the solar panel installer fronts the cost for placing the panels on building roofs. The property owner then pays back that cost over the course of the lease, typically 10 to 20 years.

This resale program provides an additional revenue stream for property owners to help pay back the solar power installers.

“This is a smart, cost-effective method for businesses to create economic opportunity while weaning ourselves off the coal-fired plants that generate most of the city’s power,” said Brad Cox, senior managing director of Trammell Crow Co., a commercial property developer and management company.

"U.S. auto sales burn rubber"- LA Times

Los Angeles Works — Tue, 03 Apr 2012 12:00:AM PST

U.S. auto sales burn rubber

Carmakers post their best March in years, helped by growing consumer confidence and demand for more fuel-efficient vehicles amid high gasoline prices.

By Jerry Hirsch, Los Angeles Times

6:00 PM PDT, April 3, 2012

Automakers posted the best monthly sales in almost five years, selling about 1.4 million vehicles in March as more confident consumers surged into showrooms looking to replace older vehicles and find more fuel-efficient ones.

The sales total was 12.7% ahead of the same month last year and amounted to an annual sales pace of 14.4 million vehicles, after seasonal adjustments, according to industry research firm Autodata Corp. The March total was the best since the industry sold 1.47 million vehicles in August 2007.

The results showed that a market that started to strengthen in September was continuing to pick up steam from an improving employment outlook and easier credit, industry executives said Tuesday.

It was buyers such as David Pool, a freelance advertising copy writer in Albuquerque, who were fueling the auto industry's expansion. Pool recently purchased a Toyota Prius v station wagon to replace a 2005 Toyota.

"The recession resulted in us holding on to our first Prius longer than we would have in the past with our other cars. We felt overdue," Pool said. "Our confidence in the economy is rising, probably along with everyone else's."

With the average age of the vehicles on the road approaching 11 years, this scenario is being repeated at dealerships across the country, said Lacey Plache, chief economist at auto information company Edmunds.com.

"We are seeing record numbers of very worn-out trade-ins," said David Conant, chief executive of Conant Auto Retail Group, which owns Acura, Ford, Honda, Hyundai, Infiniti, Lincoln and Toyota dealerships in Southern California. "This past Friday, we took 110 cars to the auction house."

Conant said the group of cars delivered to the auction averaged 227,000 miles and were too far gone for his group of dealers to sell.

The surge of buyers prompted auto analyst Jesse Toprak of auto information company TrueCar.com to raise his annual sales forecast to 14.5 million vehicles, which would make 2012 the best year since 2007, when Americans purchased 16.3 million vehicles.

Many automakers said March was their best month in years and some said it was their best ever.

Volkswagen sold 36,588 vehicles in March, a 34.6% increase over the same month a year earlier and VW's best March since 1973. Nissan North America's U.S. sales rose 12.5% to 136,317 vehicles, a record for any month in the company's history.

Kia Motors America's sale of 57,505 vehicles last month, a 30.2% gain, was its largest monthly total ever.

Hyundai Motor America, which sold a monthly record of 69,728 vehicles, a 12.7% jump, has an even bigger problem — a car shortage.

The company is "pretty much tapped out" of its two bestsellers, Elantra and Sonata sedans, from a factory in Montgomery, Ala., that already is running at full capacity, said John Krafcik, chief executive of Hyundai's U.S. sales arm.

It also will be hard to get more production of the Hyundai sport utility vehicles made in Georgia at a factory owned by Kia, its sister company. The inventory of Elantras is down to the single-day level, and Hyundai has just a 25-day supply of the Sonata.

Krafcik said he's negotiating with company officials in South Korea to get a bigger share of cars out of Hyundai's global factories to help meet U.S. demand. He expects robust sales to continue this year, helped by a better employment picture and easier credit.

"The industry feels really strong," Krafcik said. "There is a sense of increasing consumer confidence, and the number of automotive purchases that are in some fashion using home equity is starting to rise again."

Hyundai's sales are also benefiting from higher gas prices. The automaker said the average fuel economy of the vehicles it sold last month was 28.2 miles per gallon, which Hyundai said is the best in the industry.

Other automakers are seeing the same trend.

General Motors Co.said the percentage of vehicles it sold last month with four-cylinder engines reached 42%, its highest ever. GM also noted that more than 100,000 of its 231,052 vehicles sold last month achieved fuel economy of at least 30 mpg on the highway. Overall, GM's March sales rose 11.8%.

Helped by rising gas prices, sales of Toyota's Prius line of hybrid cars jumped more than 54% to almost 29,000 vehicles.Toyota Motor Corp.'s sales in March rose 15.4% to 203,282 vehicles.

Chrysler Group said its U.S. sales rose 34% last month to 163,381 vehicles compared with the same month last year.Ford Motor Co. logged its best March since 2007. Sales rose 5% to 222,884, Autodata said.

The only major automaker missing from the parade was AmericanHonda Motor Co.Its sales fell 5% to 126,999 from a year earlier. It was hurt by sagging demand for its flagship cars, the Accord and the Civic.

Growing auto sales are starting to push automakers to expand their U.S. operations.

Volkswagen Group of America announced plans last month to add 800 jobs at its factory in Chattanooga, Tenn., to increase production of its hot-selling Passat sedan.

Nissan said it would hire 1,000 workers at its plant near Nashville next year so that it could add a second shift to produce its new Infiniti JX35 SUV and a new Pathfinder SUV.

Toyota has said it will put $400 million into a factory in Princeton, Ind., where it will add 400 jobs next year to build more SUVs.

Total employees at U.S. auto plants could reach 650,000 this year, a 10% gain from 2011, according to the Center for Automotive Research in Ann Arbor, Mich.

"Manufactured goods leading recovery? Orders improve in February"- LA Times

Los Angeles Works — Tue, 03 Apr 2012 12:00:AM PST

Manufactured goods leading recovery? Orders improve in February

By Tiffany Hsu

9:27 AM PDT, April 3, 2012

The government had its own reassuring economic news in tandem with strong sales data from automakers such as Ford, GM and Chrysler: U.S. factories saw more orders in February after demand dropped the month before.

Orders for manufactured goods rose 1.3% in February after sliding 1.1% in January, resulting in the third increase in four months, according to the Commerce Department.

Durable goods, which are meant to last at least three years, remain some of the main muscle behind the delicate recovery and have seen new orders rise during four of the past five months. In February, they jumped 2.4% to $212.5 billion after diving 3.5% in January.

On Tuesday, Chrysler said its U.S. sales were up 34% in March; Ford landed its best March sales in five years while General Motors said its sales were up 12%.

But even removing the 3.9% boost in demand for all transportation items, orders were up 0.9% after dipping 0.5%.

And a gauge of future business performance – capital goods orders without counting volatile aircraft and military equipment – jumped 1.7% after plunging 3.4% in January.

Total orders reached $468.4 billion, rising $6 billion over the month.

The new numbers mirror the optimism shown in a report released Monday from the Institute for Supply Management, whose factory index rose to 53.4 from 52.4, representing continued growth in manufacturing.

Overall hope in the economy seems to be tentatively mounting. On Tuesday, Gallup said its economic confidence index was at -20 last month, up from -22 in February and the highest point since the pollster began tracking the measure in early 2008.

The index, which averages Americans’ ratings of current economic conditions and their perceptions of whether the economy is improving or deteriorating, has increased for seven straight months since tumbling to -52 during the U.S. debt crisis in August.

Recent mood-boosters include the stabilizing job market and strong manufacturing reports, though gas prices continue to approach $4 a gallon nationwide. The government will release unemployment numbers Friday.

"L.A. Mayor’s Office Recognizes Citi Community Development’s Bridges to Business Success Program with ‘Corporate Innovator of the Year’ Award"- Yahoo Finance

Los Angeles Works — Thu, 29 Mar 2012 12:00:AM PST

L.A. Mayor’s Office Recognizes Citi Community Development’s Bridges to Business Success Program with ‘Corporate Innovator of the Year’ Award

Recognition Comes in Same Week that Officials Break Ground on First Foreclosed Property Set for Rehabilitation by Program Participants

Thu, Mar 29, 2012 3:02 PM EDT

This week, Citi Community Development received the Corporate Innovator of the Year Award from Los Angeles Mayor Antonio Villaraigosa’s Office of Economic and Business Policy in recognition of its leadership in bringing together a network of stakeholders to implement the Bridges to Business Success program that is certifying, training and empowering minority-owned small businesses in the real estate services field to grow and create jobs. Underscoring the program’s swift progress since its January launch, today federal and local officials hosted the groundbreaking of the first construction project set to be undertaken through the program.

Bridges to Business Success is a collaboration of Citi Community Development, the City of Los Angeles, the Los Angeles Housing Department, the University of Southern California Minority Business Development Agency, and the Southern California Minority Business Development Council. The program makes use of federal Neighborhood Stabilization Program (NSP) funds received by the City of Los Angeles to create jobs and revitalize neighborhoods. In the program, minority-owned, real estate-focused small businesses undertake an eight-week business training course at the University of Southern California and receive assistance in developing a strategic procurement plan.

“We are excited to participate in the Bridges to Business Success Program and welcome the opportunity to further the City’s outreach to local minority business owners,” said Matt Karatz, City of LA Deputy Mayor for Economic and Business Policy. “This collaboration with our housing and economic development partners speaks to our commitment to revitalizing communities and creating jobs in Los Angeles.”

"Citi Community Development is proud to be recognized for our innovative work to empower Southern California business owners by giving them the resources they need to grow and succeed," said Bob Annibale, Citi’s Global Director of Community Development. "We thank the Mayor’s office for this recognition. Our local Community Development team, led by Gustavo Bidart and Victor Ramirez, will continue to work with all of our partners to expand opportunities for the small businesses that are so critical to driving economic growth."

Today’s groundbreaking at 14651 Novice Street, a foreclosed property in Panorama City acquired by the City using NSP funds, is the first bricks-and-mortar project associated with Bridges to Business Success. Businesses that successfully complete the certification and training program will have the opportunity to bid on contracts related to the rehabilitation of the property.

“We are proud to support this innovative program and to provide minority-owned businesses with the knowledge and skills to expand their business, create jobs, and strengthen their communities,” said Rebecca Macieira-Kaufmann, President of Citibank California. “Through this unique public-private collaboration, Bridges to Business Success is already helping business owners and communities in Southern California.”

Key to the success of Bridges to Business Success is the availability of 25 affordable housing construction contracts with the Los Angeles Housing Department, on which participating minority-owned businesses can bid after completing the training. These contracting opportunities are associated with the rehabilitation of foreclosed properties, like 14651 Novice Street, acquired by Restore Neighborhoods Los Angeles, Inc.

Praise for the expected impact of Bridges to Business Success is widespread at all levels of government.

“Bridges to Business Success is an innovative approach to utilizing HUD’s Neighborhood Stabilization Program funding,” said Ophelia Basgal, Regional Administrator of the U.S. Department of Housing and Urban Development. “Not only is this program providing opportunities for small business development and job creation but it will also address the stabilization of neighborhoods hardest hit by foreclosures by rehabilitating vacant homes like this one here in Panorama City and those throughout the Los Angeles metro area.”

“The foreclosure crisis doesn’t just hurt the families who lose their homes, it damages entire communities by adding blight to our neighborhoods,” said LA Councilmember Richard Alarcón. “This program not only reduces blight – it goes even further by creating jobs and supporting minority-owned small businesses in Los Angeles. I am very proud to continue my support of the Building Bridges to Success program.”

Most of the Bridges to Business Success Program participants will receive certification by the Southern California Minority Business Development Council thanks to support from Citi, greatly expanding access to contracting opportunities and new capital needed to grow. It is estimated that the program will create 200 new jobs by the end of 2012.

“USC knows the importance of providing jobs for our community and the vital role that minority businesses play in creating self-sufficiency and job creation,” said Theda S. Douglas, Associate Vice President of Government Partnerships and Programs for USC. “We are proud of our role in creating stronger neighborhoods by empowering and enhancing an entrepreneurial spirit.”

"New Alaska Airlines terminal dedicated at LAX"- LA Times

Los Angeles Works — Wed, 28 Mar 2012 12:00:AM PST

New Alaska Airlines terminal dedicated at LAX

The $238-million remodel of Terminal 6 aims to improve the airport experience for the flying public, with improvements to bag check, ticketing, security screening and waiting areas.

By Dan Weikel, Los Angeles Times

March 28, 2012

Trying to reverse its low grades from the flying public, Los Angeles International Airport marked a milestone in its modernization program Tuesday by dedicating a $238-million renovation of one of its aging passenger terminals.

The remodel of Terminal 6, the new home of Alaska Airlines, includes a variety of improvements to bag check, ticketing, security screening, waiting areas at gates and more.

"The whole thing is designed with the customer in mind," said Bill Ayer, Alaska's chief executive, who attended the terminal's grand opening. "Basically, we have blown up the old idea of the ticket counter, which acted like a barrier for passengers."

In the upgraded, spacious lobby, travelers encounter two large oval islands with arrays of computer terminals for quick online ticketing. For passengers desiring the traditional approach, there are still some conventional counters staffed with agents. Bags can be easily checked at curbside.

On the way to the gates, an expanded security checkpoint provides for faster access to the boarding areas, where ample seating is equipped with electrical outlets for computer users. A posh lounge serving food and beverages is free to first-class passengers; those flying coach can pay $40 to enter.

The improvements also have eliminated the need for Alaska's international passengers to go through customs and immigration at the Tom Bradley International Terminal before taking a shuttle to Terminal 3, Alaska's old facility, to make their connections. Alaska, which offers the most international flights at LAX, handled about 1.2 million passengers at the airport last year.

Passengers can now walk through a tunnel to quickly reach the federal inspection station in nearby Terminal 7, and Alaska no longer has to tow its Mexico and Canada flights from the Bradley back to its facility.

"It's nice — a whole lot better than Terminal 3. The layout makes it easier. They put some thought into this," said Michael Loust of San Clemente, who was headed to Mexico for a fishing trip.

The airline contributed about $16 million to the project, which came in under its $271-million budget. An additional $20 million came from the federal Transportation Security Administration. The rest of the financing came from bonds issued by Los Angeles World Airports, which manages LAX and the city's two smaller airports.

"This project was on time and under budget," said Mayor Antonio Villaraigosa, who toured the terminal with airport officials and City Council colleagues Bill Rosendahl and Tom LaBonge. "We are creating jobs and enhancing the passenger experience from a convenience and safety standpoint."

The upgrade of Terminal 6 is part of a $4.1-billion package of airport improvements that includes the expansion of the Bradley terminal, new taxiways and a rebuilt central utility plant.

Alaska's new location joins other LAX terminals that have been improved since 2000, including the American Airlines facility and the interior of the Virgin America terminal. A $180-million renovation of the Delta Air Lines facility is underway, and remodels of Terminals 7 and 8 are planned.

"Construction to begin on Marriott Hotel complex in downtown L.A."- LA Times

Los Angeles Works — Wed, 28 Mar 2012 12:00:AM PST

Construction to begin on Marriott Hotel complex in downtown L.A.

The $172-million, 23-story tower on Olympic Boulevard will house a 174-room Courtyard by Marriott and a 218-room Residence Inn by Marriott under one roof when it opens in summer 2014.

By Roger Vincent, Los Angeles Times

12:01 AM PDT, March 28, 2012

With tourism on the rise in downtown Los Angeles, construction is set to begin on a $172-million Marriott hotel complex that has even bigger aspirations than when it was announced almost a year ago.

Downtown's thriving hotel market can be seen in the long-anticipated development near the L.A. Live entertainment complex and Staples Center, which has grown by a floor and 15 additional rooms from the original plan.

Now set to be 23 stories, the tower on Olympic Boulevard will house a 174-room Courtyard by Marriott and a 218-room Residence Inn by Marriott under one roof when it opens in summer 2014.

"We're continuing to see a strengthening of the downtown hotel market," said hospitality consultant Bruce Baltin of PKF Consulting. "Tourism — from both convention activity and leisure travel — is definitely up."

He credits L.A. Live and its hotels with stimulating business at the nearby Los Angeles Convention Center and said other visitors are attracted by the redevelopment of downtown over the last decade that has brought in more residents, restaurants and stores.

"When people come for a concert or a game, they tend to stay overnight," Baltin said.

The new hotel will be built by a consortium led by Williams/Dame & Associates, a Portland, Ore., developer that helped build the condominium towers Evo, Luma and Elleven near Staples Center in the South Park district of downtown.

Bethesda, Md.-based Marriott International Inc. already operates a JW Marriott and a Ritz-Carlton in a skyscraper across Olympic on the campus of L.A. Live, as well as a Marriott Hotel about seven blocks north on Figueroa Street.

This will be the first dual Residence Inn and Courtyard by Marriott on the West Coast, but it's not unusual to have multiple Marriott brands so close to one another, company officials have said. The hotels have different room prices and serve varying audiences. The Courtyard is a no-frills-style Marriott while Residence Inn, intended for extended stays, has larger units and kitchens.

The hotel will have meeting rooms, a restaurant and a 3,000-square-foot electronic sign on the exterior.

Williams/Dame will develop the hotel at the northwest corner of Olympic and Francisco Street with American Life Inc., a Seattle investment firm. The project will be financed through the federal EB-5 program, which provides green cards to immigrant investors who put up a minimum investment of $500,000 for development in targeted areas.

The immigrants would be considered limited partners and thus co-owners of the project. If the project produces enough jobs to meet standards for the program, as expected, they would qualify for green cards granting residency.

The hotel is expected to create about 800 construction jobs and about 200 permanent jobs after it is completed.

Marriott executives including Chairman Bill Marriott are set to join local public officials and dignitaries Wednesday for a ceremony marking the forthcoming groundbreaking. Preparation of the site, now a parking lot, is set to begin next month with construction to follow shortly after upon receipt of construction permits.

With the closure of the Wilshire Grand Hotel last year, the downtown hotel market is "essentially maxed out" at an average occupancy of about 76%, said Baltin, the hospitality consultant. Room rates are expected to rise but remain cheaper than they are in other popular local destinations such as Santa Monica and Beverly Hills.

Downtown is at a disadvantage compared with other U.S. cities competing for convention business because it still has far fewer hotel rooms near its convention center than others do, according to a report released last month by L.A. Inc., the Los Angeles Visitors and Convention Bureau.

"The average city has 7,300 hotel rooms available within a half-mile of its convention center," City Councilwoman Jan Perry said. "Los Angeles has less than 1,700. These two Marriott properties will add nearly 400 rooms and boost our city's competitive edge when it comes to attracting more convention business."

"U.S. economy grew 3% in final quarter of 2011"- LA Times

Los Angeles Works — Wed, 28 Mar 2012 12:00:AM PST

U.S. economy grew 3% in final quarter of 2011

Associated Press

March 28, 2012

The U.S. economy grew at a solid pace in the final three months of 2011 but that growth likely slowed in the first three months of this year as businesses cut back on restocking their shelves.

The economy grew at an annual rate of 3 percent in the October-December quarter, the fastest pace since the spring of 2010, the Commerce Department reported Thursday. The government's third and final look at fourth quarter growth was unchanged from the previous estimate. Slower growth in exports than previously estimated was offset by stronger growth in business investment.

Economists believe that growth slowed to around 1.5 percent in the current quarter. For the year, economists at JPMorgan believe the economy will grow 2.2 percent, slightly better than last year's 1.7 percent expansion.

Growth at that level would be far below what economists believe is the pace needed to make sustained gains in employment. The unemployment rate has dropped to 8.3 percent from 9 percent in September. But Federal Reserve Chairman Ben Bernanke cautioned in a speech Monday that the U.S. job market remains weak despite strong hiring in the past three months. He said for the hiring gains to be sustained, the economy needed to grow at stronger rates.

For the fourth quarter, consumer spending, which accounts for 70 percent of economic activity, expanded at an annual rate of 2.1 percent, led by strong gains in car sales. Business investment rose at a 5.2 percent annual rate, pushed higher by companies rushing to make equipment purchases before special investment tax breaks expired at the end of the year. That was nearly double the estimate the government made a month ago.

But this new-found strength was offset by a reduction in the estimate of export growth. U.S. exports grew at an annual rate of 2.7 percent in the fourth quarter, down from an estimate of 4.3 percent a month ago.

Bernanke's comments on Monday cheered investors because they were seen as a strong signal that the Fed was not close to making any changes in its plans to keep interest rates low for years.

At its January meeting, the Fed said it expected to keep its benchmark for short-term rates near zero until the end of 2014. It reaffirmed that commitment at its March meeting, but investors had grown concerned that the recent better-than-expected economic data might trigger the Fed to start raising rates earlier than planned.

Bernanke said in his speech on Monday that while the increased hiring was encouraging, it was too early to tell whether it would last.

In an interview with ABC News on Tuesday, Bernanke said, "The recent news has been good, but I think we need to be cautious and make sure it is sustainable."

Economists are worried that consumer spending will not be sustained without better gains in incomes.

"Manufacturers see increase in new orders"- LA Times

Los Angeles Works — Wed, 28 Mar 2012 12:00:AM PST

Manufacturers see increase in new orders

By Don Lee

7:15 AM PDT, March 28, 2012

Reporting from Washington

New orders for computers, machinery and other capital goods rose last month, a sign that manufacturing and business investment will continue to add fuel to the recovery.

The government said Wednesday that orders for all long-lasting or durable goods rose 2.2% in February from the prior month. The increase, however, was slightly below analysts’ expectations and didn’t offset the 3.6% decline in January.

While far from spectacular, the rebound in demand still offered some encouraging signs: New orders for motor vehicles were up 1.6%, and they jumped 6.6% for computers and related products. Orders for appliances and electrical equipment remained soft, reflecting the still-depressed housing market.

The manufacturing sector has been a star in this economic recovery. And though there have been some signs that activity may be dimming a bit, Wednesday’s report from the Census Bureau, along with surveys of regional manufacturers, point to a pick-up in industrial output in the coming months.

"USC Enrolls in Massive Development"- LA Business Journal

Los Angeles Works — Mon, 26 Mar 2012 12:00:AM PST

USC Enrolls in Massive Development

$900 million project to add beds, classes, retail.

By Jacquelyn Ryan

On a recent weekday afternoon, a dozen students and shoppers quietly milled about an aging shopping center on the outskirts of the USC campus.

Dotted with vacant storefronts, their options were limited to armed forces recruitment centers, an independent movie theater, a grocery, some small shops and a few national retailers, including a Starbucks.

But if the university has its way, this shopping center, named University Village, will soon be forgotten. In its place will be a hybrid commercial-academic development, on a scale never before seen in Los Angeles.

Think the Grove, with student residences and classrooms thrown in – and a lot bigger.

The Village at USC will span 35 acres and include some 5,200 beds, a half-million square feet of classrooms, 350,000 square feet of shops, a multiplex theater, and a hotel and conference center.

“What we are offering here is an opportunity to really transform the area by giving the neighborhood what it needs, what it deserves and what it wants,” said Thomas Sayles, senior vice president of university relations.

Spurring the $900 million development are significant changes to the housing arrangements of USC’s 37,000 students. For decades, most students lived far enough off campus that they drove to their classes. But over the last 10 years, nearly 90 percent of students have moved on campus or nearby, where private developers have built student housing.

The Village at USC would not only provide even more housing close to campus, but allow the university to grab a larger share of the dollars that students spend. USC is funding the project itself through a variety of sources, including donations, bonds and university funds, though it may hire an outside developer to oversee construction and carry out the plans.

USC already owns the property, including University Village, so the project would be a redevelopment.

Hybrid academic-commercial developments have been completed on the East Coast already. The University of Pennsylvania finished a $150 million redevelopment of several blocks near its Philadelphia campus with shops, student residences, a hotel and school. Johns Hopkins University also is moving forward on a project near its medical campus in Baltimore, which would feature a hotel and shops.

“A lot of colleges are looking at what they can do to help their future and help the campus and surrounding area,” said Con Howe, managing director of CityView, which financed a mixed-use student housing development named West 27th Place near USC last year.

Phased development

USC still needs entitlements for the project and is scheduled to go before the city’s Planning Commission in May. Final approval from the City Council could come as early as this summer.

If approved, the university plans to begin construction early next year, with the project built in three phases, each about two years in length. The buildings would typically be four or five stories but some could reach 15.

The fully funded first phase would require the demolition of 200,000-square-foot University Village to make way for half of the apartment-style student residences, a 2,000-seat multiplex and all of the retail, possibly including space for two grocery stores. (With the demolition, there would be a net gain of 150,000 square feet of retail.)

Phase two would demolish three existing student dorms to the west of University Village and replace them with classrooms and other academic space, as well as a 150-room hotel and conference center that will include a swimming pool and restaurant.

The final phase would complete the residential construction.

With all the demolition, there will be a net gain of some 4,000 student beds in the area, but the university has little doubt it can fill them. Nearby, private developers have been building smaller mixed-use student housing projects along the border of the campus.

City View and West L.A. developer Symphony Development built West 27th Place last year and leased up all of its 161 units within a month, then snagged the popular East Coast chain Five Guys Burgers & Fries as one of its ground-floor tenants.

In 2008, downtown L.A.’s Urban Partners built the 421-unit University Gateway student housing project at Jefferson Boulevard and Figueroa Street that now has a Fresh & Easy among its ground-floor tenants. It is nearly fully leased.

“The demand is there and probably growing,” said Howe. “I do think the effort to encourage new construction has really helped lessen pressure in the neighborhoods and that’s frankly to everyone’s advantage.”

The university has surveyed students, faculty and neighborhood residents about the kinds of retailers they’d like to see. There has been a strong preference to get a Trader Joe’s grocery market, as well as multiple requests for low-priced but quality sit-down restaurants, such as a California Pizza Kitchen. Other demands have been for bookstores and moderately priced clothing stores like H&M.

“It is beneficial to students and faculty and to the community, it’s clearly a win-win,” Sayles said.

Steps ahead

But far from everyone is pleased with the proposal.

Existing University Village tenants haven’t been promised a spot in the new development, and many fear that the lease rates, which have yet to be set, may be more than they can afford.

“Everybody’s worried,” said John Urteaga, whose L.A. Bicycles sales and service shop has been at the retail complex for 11 years.

Already, lease rates are rising in the area as tenants start to leave University Village before demolition begins. Urteaga, who did not disclose his monthly square-foot lease rates, said a location he is considering nearby is asking at least 50 percent more than his current rate.

Other shops, including the Magic Machine copy store, which has been there 23 years, may just decide to close. Owner Jerry Zokai, who declined to be directly quoted, said relocating twice – once to move out and again to move back in– may not be worth the trouble.

However, the few national retailers that are there, including Starbucks and Radio Shack, have indicated they plan to reopen in their locations, according to Kristina Raspe, the university’s vice president of real estate development and asset management.

Meanwhile, Paulina Gonzalez, executive director of Strategic Actions for a Just Economy, said her community group is concerned that the project will displace residents by raising the price of housing rentals, despite university assurances otherwise.

The university projects that the new housing it builds will free up almost 900 units in the community, which should lower demand and drive down rental rates. Two-bedroom units in the area rented for an average of about $1,081 a month in the first quarter of 2009, according to an economic study done for the project by USC.

But Gonzalez said local residents on average earn about $35,000 a year and affordable rents would only be about 30 percent of that salary, or around $875 a month. She doubts rents would come down that much, because she believes the massive development will make the area much more attractive.

Instead, her group is asking the university to consider adding affordable housing to the project.

“We are going to continue to be there every step of the way and we are talking to the mayor and City Council offices,” she said.

The university does not want to alter its plans, but it is creating a $2 million fund for local landlords who want to convert homes that have been used by students back to single-family residences. The details are being negotiated with the city in a development agreement, which would also include a local hiring preference for the 4,000 permanent and 8,000 temporary jobs USC said the project would create.

“USC for many years has really been a strong community partner,” Sayles said. “We have over 400 partnerships with neighborhood groups and we invest $30 million a year in this neighborhood and these aren’t relationships we developed for this project. This is good for the neighborhood."

"Conference in L.A. reflects city's rise as ad industry hub"- LA Times

Los Angeles Works — Sun, 25 Mar 2012 12:00:AM PST

Conference in L.A. reflects city's rise as ad industry hub

The American Assn. of Advertising Agencies is holding its annual confab in Los Angeles for the first time in the advertising trade association's 95-year history. The event's title is Transformation LA 2012, and one of its themes is the intersection of Madison Avenue with Hollywood and Silicon Valley.

By Meg James and Dawn C. Chmielewski, Los Angeles Times

8:46 PM PDT, March 25, 2012

Los Angeles is casting itself in a leading role in advertising.

For the first time in its 95-year history, the American Assn. of Advertising Agencies is holding its annual conference in Los Angeles. The event's title, Transformation LA 2012, acknowledges the city's rising profile as a major advertising hub.

Although the region's ad community has produced award-winning television spots for years, advertisers increasingly are focusing on integrating their messages into digital media, video games and music videos.

A theme of this year's three-day gathering, which kicks off Monday at the Beverly Hilton, is the intersection of Madison Avenue with Hollywood and Silicon Valley.

"Los Angeles has always had a strong advertising agency contingency," said Nancy Hill, chief executive of the advertising trade association known as the 4A's. "But what we are starting to see is the convergence of the entertainment industry with the gaming industry and the technology industry."

Advertisers no longer rely primarily on radio and TV spots to act as a megaphone to reach the widest audience. Instead, they are tailoring messages to tantalize a more select group. Borrowing a page from video game makers that have long incorporated products into their stories, marketers are weaving their brands into entertainment.

That puts L.A. at the epicenter of the forces dramatically reshaping advertising.

"Los Angeles has a chance to replace New York as the world capital of advertising," said Eric Johnson, president of Ignited, an El Segundo ad agency. "Innovation is happening here at an incredible pace."

Last fall, Google Inc. allocated $100 million to launch original channels on YouTube, attracting entertainment industry professionals and sparking a new boom in digital production.

And major advertisers want in on the action. The Internet and mobile devices represent an opportunity to reach affluent and young consumers — spurring more spending. Last year, online advertising topped $32 billion, a 23% increase over 2010, according to research firm EMarketer.

Nearly half of all cellphone owners have a smartphone, according to Nielsen. Companies can engage consumers using their phones to get traffic reports, make restaurant reservations, buy movie tickets and play Angry Birds and other games.

This year, U.S. mobile ad spending is projected to grow 80% to $2.61 billion, EMarketer said.

The topic of convergence will be on full display at this week's L.A. convention of 4A's, which has supported agencies with research, education and lobbying efforts since its founding in New York in 1917.

Lee Clow, one of the creators of the celebrated "1984" Super Bowl ad that launched Apple Inc.'s Macintosh computer, is scheduled to reminisce about that pivotal marriage of technology and advertising.

Anthony E. Zuiker, creator of one of television's biggest franchises, "CSI: Crime Scene Investigation," is expected to highlight his new digital ventures.

"There is no rule book anymore," said Susan Franceschini, executive director of ThinkLA, a media and marketing trade organization with 6,000 members. "We are seeing a broader collaboration that often involves technology companies, incubators, entertainment companies and clients who are coming together and changing the definition of marketing."

"Tourism spending in U.S. surged 8.1% last year to $1.2 trillion"- LA Times

Los Angeles Works — Thu, 22 Mar 2012 12:00:AM PST

Tourism spending in U.S. surged 8.1% last year to $1.2 trillion

Although American travelers account for the vast majority of tourism spending, more foreign visitors are coming to the U.S. and spending more.

By Jim Puzzanghera, Los Angeles Times

March 22, 2012

Reporting from Washington

A record number of foreign visitors helped boost overall tourism spending in the U.S. last year 8.1% to $1.2 trillion, the Commerce Department said.

Last year's 62.3 million foreign visitors marked an increase of 4% from the previous year. Foreign tourists spent a record $153 billion here, much of it in the last three months of the year, according to new Commerce data Wednesday.

American travelers account for the vast majority of tourism spending in the country. But Commerce Secretary John Bryson touted the increase in foreign visitors, which he said makes travel and tourism the nation's top service export.

"Every year, tens of millions of tourists from all over the world visit America, and the more visitors we have, the more Americans we get back to work," Bryson said.

His agency estimated that travel spending supported 7.6 million U.S. jobs last year. In January, President Obama announced new steps to increase tourism in the U.S.

Canada and Mexico sent the most visitors to the U.S. last year. Visits from Canadians were up 5% to an all-time high of 21 million, the Commerce Department said. International visits from Mexico were flat last year at 13.4 million, but tourists traveling to the U.S. from overseas increased 6% to nearly 27.9 million.

Inflation was a big driver in greater tourism spending, at least for the kinds of items and amenities visitors use most, such as airlines, accommodations, food and drink. Taking into account those higher prices, spending on tourism increased 3.5% last year, the Commerce Department said.

Real spending on travel and tourism increased at a 4.6% annualized rate for the fourth quarter, up significantly from a 2.6% annualized rate for the year-earlier quarter.

"Nationwide push to boost exports is launching in Los Angeles"- LA Times

Los Angeles Works — Wed, 21 Mar 2012 12:00:AM PST

Nationwide push to boost exports is launching in Los Angeles

The Global Cities Initiative's primary message is that the nation's economic growth will come from metropolitan areas that best assist business in selling to overseas customers.

By Ronald D. White, Los Angeles Times

March 21, 2012

A nationwide push to boost exports — and the U.S. jobs that come with them — is launching in Los Angeles.

The project, led by the Brookings Institution and JPMorgan Chase & Co., is called the Global Cities Initiative, and its primary message is that the nation's economic growth will come from metropolitan areas that best assist business in selling to overseas customers.

"The whole idea is to get businesses to start to think globally," said former Chicago Mayor Richard M. Daley, chair of the initiative and a senior advisor to JPMorgan Chase. "We don't realize the potential that America has for this, and the more we do, the better off the country will be."

To achieve that, the project's experts will visit several cities, bringing studies about the export potential of various regions, sharing best export practices with local leaders and business owners, and building an international network of trade contacts.

"We will be helping every city and metro area understand their starting point on global engagement: what they trade, who they trade with, what is growing," said Brookings Vice President Bruce J. Katz, co-director of the think tank's Metropolitan Policy Program. "We will do this for each city and metro area, tailored to them."

The Global Cities Initiative, funded with $10 million from JPMorgan Chase, is also looking to help consolidate work on building export growth. Other efforts have included the Obama administration's national export initiative.

Locally, both ports have reached out to local merchants with advice and support on attracting foreign buyers. The ports of Los Angeles and Long Beach, the nation's largest cargo complex, set a record for exports in 2011. In addition, Southern California ranks first among the nation's 100 top metropolitan areas in export sales.

But more can be done here and around the U.S., the initiative's backers say.

"The U.S. economy looked inward for its growth for the past 25 years," Katz said. "Going forward, we are going to have to look outside our borders and recognize that 95% of the world's consumers live outside the U.S."

International trade has been one of Southern California's most important providers of employment, with firms tied to the sector employing nearly 640,000 workers.

Still, the members of the Global Cities Initiative contend that there are too few companies like Torrance-based Luminit, a technology company that has dramatically increased the share of business it does overseas.

Luminit's sales to foreign buyers have jumped to 50%, up from 15% to 20% of sales a few years ago, said Peter Zinsli, who handles sales and marketing planning for the company.

Luminit develops holographic, electro-optical and other sophisticated technologies. Its products have been used in items as varied as mobile phones and biomedical equipment, including a technology that helps machines "see" flaws in glass.

"We felt from the outset that it was important to develop international interest and customers," Zinsli said.

Helping companies replicate what Luminit and others are already doing, Katz said, "is going to be the gift that keeps on giving. This is how we are going to power growth, and not just more jobs but better-paying jobs. This is what every city and metropolitan area in America is going to have to do."

Los Angeles Mayor Antonio Villaraigosa, who will speak a kickoff event for the five-year initiative Wednesday at USC, said it was important for local leaders to grab the bull by the horns.

"We are not waiting for Washington to create jobs," Villaraigosa said in a statement.

"This is why Los Angeles partnered with Brookings and is the first region to implement an export plan of this magnitude," the mayor said. "The export plan and the Los Angeles Regional Export Council will help local companies reach into international markets so we can create new jobs."

"U.S. home resales have best winter in 5 years"- LA Times

Los Angeles Works — Wed, 21 Mar 2012 12:00:AM PST

U.S. home resales have best winter in 5 years

Associated Press

March 21, 2012

U.S. home sales are gradually coming back. A mild winter and a stronger job market helped boost sales ahead of the crucial spring buying season.

The last two months made up the best winter for sales of previously occupied homes in five years, when the housing crisis began. And the sales pace in January was the highest since May 2010, the last month that buyers could qualify for a federal home-buying tax credit.

February sales slipped only slightly from January to a seasonally adjusted 4.59 million, the National Assn. of Realtors said Wednesday. That's 13% higher than the sales pace last July and just below the revised 4.63 million in January.

Ian Shepherdson, chief U.S. economist at High Frequency Economics, said the lower February numbers "should not detract from the key point, which is that sales are trending upward."

The pace remains far below the 6 million that economists equate with healthy markets. And the number of first-time buyers, who are crucial to a housing recovery, continues to lag behind normal levels, while foreclosures remain high.

Still, Chris Jones, an economist at TD Economics, said that the "economic environment is ripe for home sales to keep gaining pace."

The median sale price of homes rose for the first time in four months in February, to $156,600. And the supply of homes on the market increased more than 4% in February to 2.43 million, which could signal that more homeowners became confident in the housing market.

There have been other signs of improvement in the depressed housing market.

Home builders have grown more confident in the last six months after seeing more people express interest in buying. In February, they requested the most permits to build homes since October 2008.

Mortgage rates are near record lows. And the supply of homes fell in January to its lowest level in seven years.

But sales among first-time buyers, who are crucial to a housing recovery, fell slightly last month to 32% of all purchases. That's down from 33% in January. In healthy markets, first-time buyers make up at least 40%.

Homes at risk of foreclosure made up 34% of sales, down only slightly from 35% in January. In more stable markets, foreclosures make up less than 10% of sales.

"Developer buys prominent Hollywood parking lot for new project"- LA Times

Los Angeles Works — Sun, 18 Mar 2012 12:00:AM PST

Developer buys prominent Hollywood parking lot for new project

By Roger Vincent

9:00 AM PDT, March 18, 2012

The parking lot behind Hollywood landmark restaurant Musso & Frank Grill was purchased by a Los Angeles developer who intends to build a mixed-use complex on the site.

Champion Real Estate Co. bought the paved 1.1-acre site behind the Hollywood Boulevard restaurant and between Cherokee and Las Palmas avenues from Common Fund. The price was not disclosed, but Hollywood real estate experts familiar with the property valued it at nearly $10 million.

Last year, Champion paid $20 million for a 2.76-acre property at the northeast corner of Highland and Selma avenues, which it also intends to develop.

“We really love Hollywood,” President Robert Champion said “The city has designated Hollywood to be an urban location and we think, long term, a mixed-use project there will be a home run.”

Champion will continue to operate the parking lot behind the Musso & Frank Grill while launching the planning and approval process for what the president hopes will be a $50-million development. He envisions a retail and residential complex, perhaps with a hotel. The parking spaces there now would be replaced in a garage that would be part of the new development.

Champion hopes to start construction later this year on an $80-million apartment complex including a restaurant at Highland and Selma. It would have nearly 250 units, some of which would be housing for students at Musicians Institute, a vocational school that rents a building on the site.

"Southland housing market gains momentum"- LA Times

Los Angeles Works — Thu, 15 Mar 2012 12:00:AM PST

Southland housing market gains momentum

Strong demand from investors lifts home sales in February to the highest level for that month in five years. Because many of those deals were for less than $200,000, median prices fell.

By Alejandro Lazo, Los Angeles Times

March 15, 2012

A Southland home sales recovery gained steam in February as a record number of deep-pocketed investors snapped up distressed properties at bargain-basement prices. With so many purchases of low-end homes, median prices remained in a slump.

The influx of cash from speculators helped push February sales to their highest level for that month in five years, real estate firm DataQuick reported Wednesday. The increase was fueled by purchases of properties costing less than $200,000. Sales of homes costing more than $800,000 sank.

The activity on the low end helped push the region's median price down 3.7% from February 2011. At $264,750, the median — the point at which half the homes in the region sold for more and half for less — is now just 7.2% above the market's 2009 bottom, reached during the worst of the financial crisis.

In related news, the foreclosure picture improved throughout California last month, according to Irvine data tracker RealtyTrac.

In Los Angeles and Orange counties, all forms of foreclosure filings fell 18% in February from a year earlier. Filings include notices of default, notices of foreclosure sales and repossessions. Foreclosure filings dropped 11% in the Inland Empire and 9% in San Diego County over the same time period. Nationwide, February filings declined 8% from a year earlier.

Longtime Los Angeles real estate agent Leo Nordine said Southern California's housing market has probably hit bottom, but he added, "prices are going to be flat as a pancake this year."

Investors seeking to refurbish foreclosed properties and either resell them to first-time buyers or rent them out were flooding the real estate market at an unprecedented level, Nordine said.

"I've never seen it like this before," Nordine said. "There are so many investors buying right now it's insane. The top 1% is buying up all the real estate."

Big-money investors, including Wall Street hedge funds and private equity firms, are positioning themselves to snap up foreclosed homes and convert them into rental units. Billionaire investor Warren Buffett, for instance, said in a recent cable news interview that he would buy foreclosed homes if he could find the right way to manage those properties.

"Single-family homes are cheap now," Buffett told CNBC. "If I had a way of buying a couple hundred thousand single-family homes and had a way of managing [them] ... I would load up on them."

Wall Street types are aiming to do exactly that. A spokesman for New York buyout firm GTIS Partners said it plans to spend $1 billion through 2016 purchasing single-family properties and converting them to rentals. Oaktree Capital Management of Los Angeles recently announced it had started a fund that would buy $450 million worth of single-family homes.

Also in Southern California, G8 Capital of Ladera Ranch has bought several portfolios of distressed properties that it plans to rent out. The real estate investment firm McKinley Capital Partners of Oakland has purchased hundreds of homes in the San Francisco Bay Area.

Mia Melle, president of RentToday.us, a company that manages rental homes for investors throughout Southern California, said many of her clients were now private equity funds.

"Those guys are hot and heavy on the market buying houses — as many as they can possibly get their hands on," Melle said. "That's the main thing we are dealing with."

The Obama administration is looking to capitalize on this interest by selling to investors pools of foreclosed homes owned by mortgage titans Fannie Mae and Freddie Mac as well as the Federal Housing Administration. The administration hopes to use investors to convert some of the nearly 250,000 foreclosed homes owned by government-controlled entities into rentals. Fannie recently listed for sale about 2,490 homes in some of the nation's hardest-hit markets, including about 484 in Los Angeles and the Inland Empire.

But investors flush with cash are already busy buying foreclosures and other distressed homes. A record 29.7% of previously owned properties sold last month were bought by absentee purchasers, who paid a median $192,750. The Inland Empire was the epicenter of this activity, with absentee buyers accounting for 37.2% of sales.

In total, 15,573 houses and condominiums were bought throughout the Southland in February. That was a 7.2% increase from January and an 8.4% jump from February 2011.

Excluding sales of new homes, foreclosed properties accounted for about 1 in 3 sales. Short sales — in which a bank allows a home to be sold for less than what's owed on the mortgage — made up about 1 in 5 sales.

Many observers expect the long-suffering housing market to finally hit bottom in 2012, particularly if the jobs picture brightens. But foreclosures, tight mortgage credit and high regional unemployment remain significant impediments to a housing recovery.

Unemployment is still a harsh reality for many in Southern California. The jobless rate was 11.8% in Los Angeles County in January, a drop from 12% in December. In Orange County, The rate rose to 8% from 7.8%. In the Inland Empire, it rose to 12.4% from 12.2%.

"Retail sales rise 1.1% in February; biggest gain since September"- LA Times

Los Angeles Works — Tue, 13 Mar 2012 12:00:AM PST

Retail sales rise 1.1% in February; biggest gain since September

Associated Press

3:47 PM PDT, March 13, 2012

Americans stepped up spending on retail goods in February, evidence that a stronger job market is boosting the economy.

Consumers bought more autos, clothes and appliances. They also paid higher prices for gasoline.

Retail sales increased 1.1% last month, the Commerce Department said Tuesday. It was the biggest gain since September. The government also revised up the previous two months.

Some economists noted that the February increase and the revisions could lead to faster economic growth. It could also put pressure on the Federal Reserve and Chairman Ben S. Bernanke to rethink the plan to hold interest rates at record lows until at least late 2014. The Fed held a one-day policy meeting Tuesday.

"We believe that the consumer is in better shape than recent downbeat commentary from Fed Chairman Bernanke," John Ryding and Conrad DeQuadros, analysts with RDQ Economics, wrote in a note to clients.

A separate Commerce Department report showed that companies restocked at a faster pace in January, a sign that businesses expect stronger job growth to fuel more sales. Business stockpiles rose 0.7% in January, while sales increased 0.4%.

One factor driving the retail sales increase was a 3.3% rise in gasoline sales last month. It was the biggest increase in nearly a year and reflected a surge in gas prices.

Still, retail sales increased a solid 0.8% after excluding gas station sales.

Auto sales rose 1.6%. Department stores increased 1.5%, the largest gain since November 2010. And sales at appliance and electronics stores climbed 1%.

The February gain pushed total sales to a record $407.8 billion. That's 20.1% higher than the recession low hit in March 2009.

The increase comes after the best three months of hiring in two years. The economy has gained 734,000 jobs since December, which has lowered the unemployment rate to 8.3%.

"Construction jobs increase in California, 34 other states"- LA Times

Los Angeles Works — Tue, 13 Mar 2012 12:00:AM PST

Construction jobs increase in California, 34 other states

By Nancy Rivera Brooks

1:04 PM PDT, March 13, 2012

Construction employment grew in 35 states in January from December, with California adding the most jobs -- 8,900, or a 1.6% increase.

Thirteen states posted decreases in construction jobs and two states had no change, according to an analysis of Labor Department data by the Associated General Contractors of America.

"There is accumulating evidence that construction has passed its low point in a majority of states, although shrinking public construction will hold down the improvement in many locations," Ken Simonson, chief economist for the trade group, said in a statement.

Compared with a year earlier, 28 states added construction jobs in January, 20 states lost jobs and two were unchanged. That was the best showing for state construction employment since 2007, the trade group said.

"Moreover, the gains this January partly reflect very mild weather this winter and exceptionally cold and snowy conditions a year before," Simonson said.

Construction was among the sectors hit hardest by the recession and the bursting of the housing bubble.

Most of the recent construction employment improvements have come from the private sector, and the contractors group has been busy lobbying Congress to approve some delayed infrastructure measures, including a surface transportation bill that would help fund highway and other transportation projects. The organization's statement said it also wants lawmakers "to set long-term tax rates that impact many of the association's members."

"Even as the private sector continues to build steam, we want to make sure federal actions and inactions don’t hold the construction industry back," said Stephen E. Sandherr, the association’s chief executive. "Setting infrastructure investments levels and establishing some kind of tax certainty would complement the growing private-sector demand for construction and help put even more people back to work."

"Program Means Less Red Tape for Restaurant Permits"- LA Downtown News

Los Angeles Works — Fri, 09 Mar 2012 12:00:AM PST

Program Means Less Red Tape for Restaurant Permits

by Ryan Vaillancourt | Posted: Friday, March 9, 2012 5:00 pm

DOWNTOWN LOS ANGELES - Mario Del Pero, who is best known in Downtown for the two outposts of the gourmet sandwich outfit Mendocino Farms, has opened nine eateries in Los Angeles. So it came as little surprise to him when, in his latest trip through the notoriously disjointed city permitting process, he ran into a bureaucratic brick wall.

Del Pero had opened Casa, a Bunker Hill Mexican restaurant, in 2008, and last year he initiated a plan to replace it with Blue Cow, a sandwich-focused establishment. When city inspectors first reviewed the Blue Cow plans, they told Del Pero that the space was not actually permitted for a restaurant. Even though Casa had operated with city approvals for about three years, and the space held a restaurant long before that, officials told the entrepreneur that he would have to start from scratch.

It was a major blow. Acquiring approvals to build a new restaurant is far more time intensive, not to mention expensive, than getting sign-offs for a tenant improvement in an existing eatery.

This is the point where many restaurateurs would turn to a high-priced private consultant, or expediter, to shepherd their application through the labyrinth of city departments. But for Del Pero, who opened Blue Cow in the old Casa space in January, salvation came in the form of one of the very bureaucrats that he had long been accustomed to seeing as little more than a roadblock in a suit.

Del Pero is one of approximately 300 people in the past two years to participate in a new city initiative to quicken the permitting process for bars and restaurants. The program hinges on one key change — each project is assigned a case manager who stays involved at every step and helps facilitate meetings and inspections with officials who have to sign off on the work.

“Had my case manager not been there, this would have been a tragedy,” Del Pero said. “Blue Cow never would have opened.”

Lobbied by Downtown business advocacy group the Central City Association, and with leadership from then-First Deputy Mayor (and current 2013 mayoral candidate) Austin Beutner, the Department of Building and Safety formed a new case management unit in January 2010. The Restaurant and Hospitality Express program was implemented on a trial basis for six months, and after working with a few dozen establishments, including several in Downtown, it was publicly rolled out six months later.

When the program was announced, officials said it routinely took restaurateurs 12 to 18 months to open a business (many people in the industry have cited longer time frames). The primary goal of Restaurant and Hospitality Express was to cut that in half, to six to nine months.

Now, more than two years after the experiment started, restaurateurs and land-use experts say some change has occurred. While it has not been a silver bullet for the permitting process, Building and Safety records indicate the time frame is averaging less than 12 months.

“It is working to some extent,” said Elizabeth Peterson Gower, whose land-use firm the Elizabeth Peterson Group has walked several businesses through the program. “For the first time, you’re talking to someone at Building and Safety that actually understands what’s going on, they understand the problems between the different public agencies.”

Carol Schatz, president and CEO of the CCA, acknowledges that some operators have complained that the program has been ineffective. However, she said, most believe the effort has been a marked improvement to a process that has long resisted change.

“I think this is the first real example of a significant improvement in processing time we can point to in the last several years,” Schatz said.

A Cultural Thing

Before the implementation of Restaurant and Hospitality Express, those in the food business complained of a system that made it difficult and frustrating to open, especially for first-time operators. To many it was counterintuitive, because city-spurred delays hinder job creation and the generation of new sales tax revenues.

Not only is the entitlement and permitting process inherently complex — it requires sign-offs from up to 12 different departments, located in separate buildings, and not connected via a single online tracking system — but veterans of the industry say different agencies often gave conflicting advice. For example, while one inspector would demand a ventilation system installation, another might say that equipment would amount to a code violation.

The other enemy of efficiency was a seemingly cultural reality: city officials didn’t communicate with their county brethren in the Health Department, a key arbiter of restaurant approvals.

“Before I got involved in creating this program, I had never talked with the Health Department or the Bureau of Sanitation,” said Larry Galstian, who manages the Restaurant and Hospitality Express unit at Building and Safety. “Before I didn’t even know who was working at the Health Department.”

Galstian said that since its inception the program has seen 105 businesses open. Another 84 are under construction, 48 are in plan-check and 76 are in the design and planning stage.

Eddie Navarette, an expediter who has helped eateries such as Downtown’s Lazy Ox and Bäco Mercat get their permits, said the program “has definitely helped.” The primary beneficiaries, he said, are those new to the process.

“For someone like myself who is already familiar with these interpretations, it doesn’t really provide that much help,” Navarette said. “But it can be very helpful to, say, a New York architect who’s maybe not familiar with the local policies here.”

While some say the program has worked, the process is not perfect. Even with the case manager, Del Pero said that getting OKs for Blue Cow was confusing and difficult. Lest people expect the case manager to function as a sort of ever-present teammate, Del Pero said the official is more like a referee, explaining the rules along the way.

The special Building and Safety unit, with its three dedicated case managers, is also understaffed, said Peterson. Galstian said the unit is managing the caseload now, but any increase in demand could prove a strain.

“We see a success in this program and it will get crazier, and then we may need to hire more case managers,” Galstian said.

After years of permit horror stories, however, some restaurateurs remain skeptical, even with evidence that the new program has apparently made strides.

Brian Traynam, owner of The Escondite, a burger joint that recently opened in the old 410 Boyd space in the Toy District, said his business went through the permitting process without a hitch. He attributed the quick turnaround to the fact that, like Del Pero, he was only renovating an existing restaurant.

Now, Traynam said, he is trying to get a permit that will allow live, unamplified music. He submitted the application in November and is still navigating the approval system. With or without the streamlining program, the process is always going to be challenging.

“There’s a reason the city has all these restrictions in place — it’s to protect the city — but it just takes time and perseverance to get through it,” Traynam said. “All you can do is stay the course.”

"House passes small-business bill with broad bipartisan support"- LA Times

Los Angeles Works — Fri, 09 Mar 2012 12:00:AM PST

House passes small-business bill with broad bipartisan support

A modest package of proposals aimed at expanding small business' access to capital is approved on a 390-23 vote. But the Senate is in no rush to approve the measure.

By Lisa Mascaro, Los Angeles Times

March 9, 2012

Reporting from Washington

A modest package of proposals aimed at expanding small business' access to capital cleared the House with broad bipartisan support, a rare accomplishment in this politically divided Congress that puts the legislation on track for passage.

President Obama has repeatedly called on Congress to send him such measures that he could sign into law.

"What it demonstrates is that we are able to set aside our differences when we want to and come together for producing results that people want to see," said Rep. Eric Cantor (R-Va.), the House majority leader.

The bill, he said, provides a "real shot in the arm to entrepreneurs, small-business men and women, removes red tape, allows small businesses an easier time to go about starting up, as well as retaining and creating jobs."

The economy's ability to create jobs has been a top issue for voters this election year, and passage of the so-called Jumpstart Our Business Startups, or JOBS, Act would give both Republicans and Democrats a legislative victory.

Yet nothing is easy in partisan Washington, even though the package was approved on a 390-23 vote with bipartisan support from 232 Republicans and 158 Democrats. All of those voting no were Democrats.

The Senate, where Democrats have the majority, is in no rush to approve the measure. The GOP-led House has passed several initiatives — particularly those aimed at reducing or eliminating various federal regulations — that have stalled in the Senate.

Democrats in the Senate want to beef up the protections for investors in the jobs package. But any changes to the legislation would require the chambers to compromise.

"Our bill will have some more consumer protections, investor protections, but it'll be similar," said Sen. Charles E. Schumer of New York, the No. 3 Democrat in the Senate. The chamber is expected to begin consideration of its version of the jobs package next week.

The House version was a compilation of bills that would exempt smaller businesses from certain capital formation rules required by the Securities and Exchange Commission, including one that would exempt from regulation securities offerings that do not exceed $50 million. Another would loosen restrictions on soliciting capital across state lines.

Several of the bills already had been approved last year by broad majorities in the House, leaving Democrats to criticize Republicans as simply recycling old ideas that have been shown to have bipartisan support.

Other provisions would exempt from certain reporting requirements securities that are "crowd-funded" from small group investment pools and would define an "emerging growth company" as one that does not exceed $1 billion in annual gross revenue.

The U.S. Chamber of Commerce welcomed passage of the bill as one that provides "important reforms and lessens regulatory burdens that will remove obstacles that have prevented business formation in the numbers we have come to expect."

"US adds 227,000 jobs in Feb.; jobless rate 8.3 pct"- Associated Press

Los Angeles Works — Fri, 09 Mar 2012 12:00:AM PST

US adds 227,000 jobs in Feb.; jobless rate 8.3 pct

By CHRISTOPHER S. RUGABER
AP Economics Writer

WASHINGTON (AP) -- The United States added 227,000 jobs in February, again surprising economists with the breadth and brawn of the economic recovery. The country has put together the strongest three months of pure job growth since the Great Recession.

The unemployment rate stayed at 8.3 percent. It was the first time in six months that the rate did not fall, but that was only because a half-million Americans, perhaps finally seeing hope in the economy, started looking for work.

The Labor Department also said Friday that December and January, already two of the best months for jobs since the recession, were even stronger than first estimated. It added 61,000 jobs to its total for those two months combined.

Economists were expecting February job growth of 210,000.

"Overall, another very strong payroll report and there's every chance that March will bring more of the same," said Paul Ashworth, chief U.S. economist with Capital Economics, an economic consulting company.

Since the beginning of December, the country has added 734,000 jobs. The only better three-month stretch since the recession was March through May 2010, when the government was hiring tens of thousands of temporary works for the census.

Stocks rose steadily through the morning. The Dow Jones industrial average climbed 48 points to 12,956. Last week, it closed above 13,000 for the first time since May 2008, four months before the financial crisis.

The improving jobs picture figures to improve the re-election chances for President Barack Obama and to complicate the political strategy for the Republicans competing for the right to replace him.

Obama was traveling Friday to a manufacturing plant run by Rolls-Royce, the maker of aircraft engines, in Virginia, which is expected to be closely contested in November. He planned to propose steps to help manufacturers create products and jobs.

Hiring in February was broad-based and improved in both high-paying and low-paying industries. Manufacturing, mining and the professional services industry, which includes accounting work, all added jobs.

And government - federal, state and local - cut only 6,000 jobs in February and a revised 1,000 in January. Last year, they cut an average of 22,000 jobs a month, taking some of the economic punch out of job creation in the private sector.

In all, 142.1 million Americans reported that they had a job in February, the highest since January 2009, during the depths of the recession. Manufacturing payrolls are the highest since April 2009.

And over the past three months, the number of employed people has risen by 1.45 million, the biggest three-month gain since March 2000.

The government uses a survey of payrolls to determine how many jobs were added or lost each month. That is the survey that produced the 277,000 number. But the payroll survey tends to undercount small businesses and does not count the self-employed.

It uses a separate survey of American households to calculate the unemployment rate. That survey picks up hiring by companies of all sizes, including small businesses, companies just getting off the ground, farm workers and the self-employed.

The household survey found that 428,000 more Americans reported having jobs in February. When the economy is improving, many economists say, the household survey does the better job of picking up the shift because it detects small business hiring.

In the household survey, only people who are out of work and actively looking for a job are counted as unemployed. And one reason why the unemployment rate had fallen steadily over the previous five months, from 9.1 percent last August to 8.3 percent in January, was that so many people who were out of work gave up looking for a job.

But over the past two months, that trend appears to have reversed. In February, 476,000 people re-entered the labor force. Since the start of the year, that figure is almost 1 million - the strongest two months since January and February 2003.

A catchall measure of the unemployed and the so-called underemployed - people who are working part-time but would rather by working full-time - fell to 14.9 percent, the lowest the three years.

That figure includes three groups: the part-time workers who want full-time work, people who are unemployed and looking for work, and people who are unemployed and have stopped looking.

Other economic indicators have improved markedly in recent weeks. Consumer confidence in February was the highest in a year, and unemployment claims, the best measure of the pace of layoffs, have averaged 355,000 a week, near a four-year low.

Service companies, which employ most Americans, are expanding faster, according to a private survey this week. The industries of mining, educational services, transportation and warehousing are particularly strong.

Some companies have to hire because they can't squeeze any more work from their employees. Worker productivity rose last year at its slowest pace in a generation, suggesting companies will have to hire to meet growing demand.

Wages are still rising only modestly. Average hourly pay increased by 3 cents in February to $23.31. In the past year, it has gone up only 1.9 percent, trailing the rate of inflation.

The factors restraining the U.S. economy seem to be easing, or at least less damaging than they used to be. Greece has struck a deal to get an international bailout and avoid a default later this month that could have rattled the world financial system.

And while the price of gas has crept up almost every day for a month, and is the highest on record for this time of year, that has less of a bite when the economy is growing and people feel more confident.

"California unemployment falls to 10.9%"- LA Times

Los Angeles Works — Fri, 09 Mar 2012 12:00:AM PST

California unemployment falls to 10.9%

The January figure marks California's fifth straight monthly drop in the jobless rate. However, the state lost 5,200 jobs that month, a different survey indicates.

By Marc Lifsher, Los Angeles Times

7:43 PM PST, March 9, 2012

Reporting from Sacramento

California's job market is slowly climbing its way out of the ditch.

The percentage of unemployed workers fell in January to 10.9% from a revised 11.2% in December, according to the California Employment Development Department. That's the first time it has been under 11% in three years, and it marks the fifth straight monthly drop in the jobless rate.

"The trend clearly is positive," said Sung Won Sohn, an economist with the Smith School of Business at Cal State Channel Islands.

Still, there was some mixed news in the January jobs report. Although a survey of households indicated that the monthly unemployment rate fell, a separate, less volatile survey of employers showed that California suffered a net loss of 5,200 jobs in January.

The EDD and the U.S. Department of Labor use both surveys to calculate different components of the monthly jobs reports. Experts note that the two surveys usually complement each other, but occasionally they show seemingly contradictory results.

Federal jobless figures were also released Friday, covering the month of February. They showed the nation gaining 227,000 jobs last month, in addition to the previously reported 284,000 jobs added nationwide in January.

California officials say the state's data are a month behind the federal government's because of delays related to a federal requirement that the state perform an annual recalculation of previous years' data. The February data for California will be released March 23.

The new state report showed that trade, transportation and utilities posted the biggest California job gains in January, with 14,400 net new positions. The worst performer was information, including television and motion picture production, with 22,900 jobs lost in the year's first month.

Chapman University economist Esmael Adibi said he was disheartened by the state's small January job loss "when the nation is doing so well." The EDD's latest report, he suggested, "could be an aberration" and probably could be revised upward in the upcoming February report, particularly if there is continued strengthening in the construction and manufacturing industries.

For example, an estimate that the state created 12,000 jobs in December was revised upward to 38,500, according to Friday's report.

In all, California added 126,100 net jobs over the last 12 months and 322,400 since the beginning of the economic recovery in September 2009, the EDD said. California, however, has a way to go to make up for the estimated 1.3 million jobs that disappeared during the Great Recession of 2007-09.

Though improving, unemployment rates for January remained stubbornly high throughout much of Southern California. The seasonally adjusted rate was 11.8% in Los Angeles County, down from 12% in December. In Orange County, the unadjusted rate climbed to 8% in January from 7.8% in December. In the same period, the unadjusted rate rose to 12.4% from 12.2% in the Inland Empire and to 9.7% from 9.4% in Ventura County.

The state's short-term job loss in January, combined with revisions to 2010 and 2011 data, creates "confusion" in trying to reconcile California data and the more robust national numbers, said Stephen Levy, chief economist and director of the Center for Continuing Study of the California Economy in Palo Alto.

"The strong national growth in both January and February and the strength in high-tech areas supports the finding that the state economy is continuing to recover, with the largest gains in technology and foreign trade and in the urban, coastal areas of the state," Levy said. "Construction and government continue to be lagging sectors that constrain the pace of recovery."

But even in construction, things may be looking up. "There's a lot more listings, at least in my trade," said Erik Hernandez, a construction manager from Lynwood, who posted his resume online. "So far, I've gotten two calls back, but I expect a lot more."

"South Park to Get 32-Story Tower"- LA Downtown News

Los Angeles Works — Thu, 08 Mar 2012 12:00:AM PST

South Park to Get 32-Story Tower

by Ryan Vaillancourt, Staff Writer | Posted: Thursday, March 8, 2012 1:22 pm

DOWNTOWN LOS ANGELES - Onni Group, a Vancouver-based developer that last year bought two Downtown properties, is quietly finalizing plans to build a 32-story apartment tower at Ninth and Olive streets.

The proposed $100 million development at 888 S. Olive St. would rise on a plot entitled in 2009 by LaeRoc Funds. Onni bought the site along with the adjacent Coast Savings Building from LaeRoc last year for $16.5 million.

The so-far-unnamed 283-unit tower is currently in the plan check phase of the permitting process and is on pace to break ground by August, said Chris Evans, Onni’s executive vice president. He said financing is in place to start construction, but declined to specify how the firm will fund the project.

Onni last year opened a five-person office in the Coast Savings Building, which will remain an office complex. The company also has offices in Chicago and Phoenix.

The bulk of Onni’s business is in Canada, where between greater Vancouver and Toronto the company has nearly 4,000 condominiums currently under construction, Evans said. It also owns and manages about 4,000 rental units between Canada, Phoenix and Chicago.

Most of Onni’s under construction developments are high-rises in urban areas. The company builds both apartment and condominium projects, but plans rentals for the Olive Street site. It also owns and manages about 4.5 million square feet of commercial space, including office, retail and industrial properties.

The firm has been eyeing the Downtown Los Angeles market since about 2004, Evans said. The company finally made its move last year when it also bought a 70,000-square-foot mid-rise office building at 1212 S. Flower St. That site includes an adjacent parking lot that Onni plans to develop with a residential building in the future.

“From looking at the Downtown market outside-in, we saw the market change significantly in 2008 and it basically stopped,” Evans said. “Obviously if that market would have lived another three or four years, Downtown would look significantly different than it does today, but we believe in that transformation and that it’s going to continue to happen.”

The proposed building, which is a slight variation on LaeRoc’s project, includes about 11,000 square feet of ground floor retail and a 663-space garage.

Cranes Hovering?

If all goes as planned, Onni’s project would open in 2015. It would also mark the first start on a Downtown high-rise since 2007, when Meruelo Maddux Properties (this week renamed Evoq) broke ground on the 35-story tower known today as the Watermarke.

Onni is not the only player looking to bring the cranes back to Downtown. Related Cos., developer of the proposed Grand Avenue project, continues to look for financing and hopes to break ground by October on a 19-story apartment tower, said Bill Witte, president of Related California.

Developer Sonny Astani said he plans to break ground this year on the 240-unit phase one of Angelena, an apartment complex at Eighth Street and Grand Avenue. A pair of seven-story rental buildings has been announced for 1340 S. Figueroa St.; construction is underway on a 210-unit housing complex at 1111 Wilshire Blvd. in City West; and work began this year on One Santa Fe, which will deliver more than 400 apartments to the Arts District. Chinatown Gateway will bring 280 apartments to that neighborhood in 2013.

“What this activity shows you is that the market fear that occurred in 2009 and 2010 has dissipated and the growth prospects for Downtown are very healthy,” said broker Mark Tarczynski, senior vice president at real estate services firm Colliers.

The return of high-rise development would mark the latest churn in a real estate cycle that hit doomsday in 2008 and saw seeds of recovery in 2010 as institutional investors increasingly looked to purchase multi-family housing projects. Now, the rental market in Downtown appears strong: Dallas-based MPF Research found that occupancy in Downtown apartments (including buildings in City West and other neighborhoods on the outskirts of the Central City) stands at 96.8%.

“There was a trend over 2010 of decreasing vacancy and increasing rents in Downtown and we’ve seen concessions disappearing and overall higher demand for apartment units,” said Tracey Seslen, a senior research associate with USC’s Casden Real Estate Forecast.

Prices are going up too. According to Colliers, Downtown rents jumped about 8% in 2011 over the previous year. There is some more supply in the pipeline: ST Residential’s 271-unit Apex (formerly Concerto) is due to open as apartments this year. So are the 88-unit Chester Williams Building and the 43-apartment Winston building.

Despite the current and planned activity, Tarczynski said the projects that are currently under construction — Colliers estimates that the market will add about 300 units per year for the next three years — represent a modest supply that won’t satisfy rising demand.

Still, even if demand appears to be mounting, Onni’s proposal is not an obvious slam-dunk. Related’s Witte said that, for most developers, high-rise construction is generally too costly compared to rental returns.

“The only way that makes sense, potentially, is if you’re really designing condos and the exit is that you convert to condos and sell them,” said Witte. “There are developers who are playing the cycles and will build condos now, rent them and look to sell them as condos when the market improves.”

The Related project is different because it includes a 20% affordable housing component, which gives the developer access to less expensive bond financing.

Onni’s Evans declined to comment on the company’s financing model, but he said the firm will leave a future door open to a condo conversion.

“Today we’re certainly looking from a rental point of view to make the project make sense and we’ll see what happens in the future,” Evans said.

"Retail Center Hopes to Boost Local Economy"- Annenberg TV News

Los Angeles Works — Tue, 06 Mar 2012 12:00:AM PST

Retail Center Hopes to Boost Local Economy

800 new permanent jobs are hoped to be a result of the recently completed Midtown Crossing project.

By Carly Santiago and Danica Ruberti

Monday, March 5, 2012 | 12:05 p.m. PST

Just a year ago, the corner of Pico and San Vicente was a dirt pit, but government officials expect the developing Midtown Crossing retail center to revitalize the local economy by serving thousands of residents in a five mile radius.

The Los Angeles Community Redevelopment Agency celebrated its highly anticipated project on Monday with a champagne "christening" honoring Mayor Antonio Villaraigosa and City Council President Herb Wesson for their support.

The 330,000-square-foot project, developed by CIM Group, aims to create 800 new jobs for residents in the neighborhood and generate $2.3 million in annual sales tax revenue.

According to a press release from 2007, "Midtown Crossing is in the center of Los Angeles and is designed to serve the area's large and diverse population as well as attract additional retail to the area, which has been overlooked for decades," said Philip Friedl, vice president investment & development, CIM Group.

However, the Midtown Crossing development process was met with some challenges. In 2008, Villaraigosa's appointees at the Community Redevelopment Agency recommended that the City Council increase the size of the project's subsidy from $5 million to $14.3 million. Councilman Herb Wesson also had to gain approval of a sign district that would display "supergraphics" only permitted by city law in special cases.

As a result, the project was split into two phases. Phase one installed chain stores like Starbucks, Panda Express, AT&T Wireless, Foot Locker, Cold Stone Creamery, and a Metro Bus transfer station, while Phase Two added a Lowes Home Improvement Center and other retailers.

"Back to a Fairly Healthy Downtown Development Market"- LA Downtown News

Los Angeles Works — Fri, 02 Mar 2012 12:00:AM PST

Back to a Fairly Healthy Downtown Development Market

Posted: Friday, March 2, 2012 3:31 pm

DOWNTOWN LOS ANGELES - This is an interesting time in the Downtown Los Angeles development and real estate market. For years the community, like the nation, suffered in the wake of the housing bubble and the ensuing recession. Although there were some positives, particularly in the form of the restaurant and nightlife sector, the local residential and office realms slowed to a crawl.

Now we are witnessing a strong return, and the area is much improved over a few years ago. Although some weak points remain, in particular the office market, the overall community is fairly healthy.

There have been signs of an impending turnaround for about a year-and-a-half, but only in the past few months has it become clear that the Central City is again a viable place for certain kinds of large investment and construction. Right now, people are starting projects and making big money bets on the future of Downtown.

This does not mean that the investment atmosphere is similar to what existed in, say, 2006, before the downturn. With hindsight, while that time in Downtown was exciting, it was also often foolish. People without experience or clear financing plans were acquiring land and announcing projects. Although some worthy developments were stalled or killed by the economy, there were also many efforts that did not deserve to go forward.

Now there is renewed confidence in Downtown, and it is more tempered and more reasonable than a few years ago. That’s a good thing. It’s better to have fewer projects that will actually make it to market than to have a surfeit of never-to-materialize developments.

The clearest indicator of the turnaround came in our recent Downtown Development issue, which gave the latest information on 70 projects. While not all of them will reach the finish line, many developments that have started recently, or opened in the past few months, will serve as catalysts for additional housing, restaurants, bars, service businesses and other types of construction.

For example, Eli Broad’s $100 million Bunker Hill art museum, the 300,000-square foot Chinatown Gateway, and One Santa Fe, which will create more than 400 apartments across from the Southern California Institute of Architecture in the Arts District, will all propel additional activity. No matter what happens with the proposed Farmers Field, these economic engines mean more people and more money will come to those areas.

Then there are the projects that function as parts of a larger whole. In recent months, several developments were announced for Broadway: The coming Ace Hotel in the United Artists Theatre, Downtown’s first Ross Dress for Less and the Sparkle Factory, a jewelry manufacturing headquarters in a long-vacant building, will all dovetail with previous restaurant, retail and housing projects on the street.

Downtown is also seeing more retailers willing to take a stake in the community. National chain stores, which proceed very cautiously when considering emerging markets, are now following the independent shops that have been here for years. There is the aforementioned Ross, and Target continues to be on track to open its first Downtown location this fall. As Downtown News reports this week, Wal-Mart is also coming to the community for the first time.

Then there are projects that follow the area’s long role as a hub for employment. The aged Hall of Justice is being transformed and is expected to open in 2014. In January, plans for a new Federal Courthouse at First Street and Broadway were revived — the project finally has money and support in Washington, D.C.

Downtown still has some problem spots. The Brockman Building on Seventh Street continues to sit empty, even as Bottega Louie thrives on its ground floor. Apex, the South Park apartment complex built and then lost in the recession by Sonny Astani, also sits completed but without residents (though the new owner has said it will come online this spring).

There is also the still soft office market. Vacancy rates in the Class A skyscrapers on Bunker Hill and in the Financial District are far too high to justify new construction. It’s impossible to tell when that will change.

It would be foolish to expect everything to be perfect. What is clear, however, is that projects are opening and the once frozen lending markets are thawing. The Downtown real estate scene has exhibited a very strong recovery, and if the players are wiser, more experienced and more cautious than before, then that’s to the community’s advantage.

"Costco-anchored Village at Westfield Topanga gets City Council OK"- Daily News

Los Angeles Works — Thu, 01 Mar 2012 12:00:AM PST

Costco-anchored Village at Westfield Topanga gets City Council OK

By Dakota Smith, Staff Writer

Updated: 03/01/2012 11:16:21 AM PST

The Los Angeles Council approved the Village at Westfield Topanga project on Feb. 29, 2012. The development is seen here in a rendering.

The City Council on Wednesday approved the Village at Westfield Topanga - a new Costco, retail and entertainment development that will combine with the company's existing Woodland Hills malls to make one of Southern California's largest shopping complexes.

The unanimous vote concluded a seven-year effort by the Westfield Group to develop the lot at Topanga Canyon and Victory boulevards, a process marked by sometimes testy relations between the developer and city leaders.

"I know there was a lot of discussions, there were a lot of issues," said City Councilman Dennis Zine at Wednesday's hearing. "But at the end of the day, this will bring a tremendous amount of opportunity ... a lot of jobs and the sales tax that will come to the city of Los Angeles."

A rendering of the now-approved Westfield Village, where Costco will be the anchor tenant.

The development will include a Costco store and 50 shops and restaurants, which will rise between the developer's Topanga and Promenade malls.

A hotel, office tower and 50 more shops are proposed in the Village's second phase.

Originally, Westfield planned to build 150 condos and apartments as part of the project, but the residential component was dropped after the real estate market crashed in 2008.

Westfield replaced the condos with a Costco, to the disappointment of some Valley residents who argued the discount warehouse store would not be appropriate for Warner Center.

Zine had previously echoed locals' concerns about elements of the Costco. But following community complaints, Westfield went back to the drawing board and designed what company executives described as "one of the nicest-looking Costcos anybody has ever seen."

On Wednesday, Zine praised the developer for working with his office, stating the city decided to support the Costco "after imposing many conditions."

The councilman was joined by dozens of construction workers and representatives from Valley business groups who packed City Hall chambers in support of the $450 million project.

Larry Green, vice president of real estate development for Westfield, said he was enthused by the response from local and national retailers, who are already inquiring about leases at the Village.

Only a handful of homeowners from the area spoke in opposition to the project, arguing that a residential component is needed, rather than another big-box store.

"This isn't a jewel," said Woodland Hills resident Shirley Blessing at the hearing. "What we don't need is a warehouse."

Under the city's agreement with Westfield, the developer must start building the Costco store by the end of 2012 and begin the build-out of the 50 retail stores by spring 2014.

There is no required city timeline for the second phase of the development, said Jessica Tarman Nassour, a spokeswoman for Zine.

The is what the site of the now-approved Westfield Village along Victory Boulevard looks like today. The planned development is a 1-million-square-foot, two-phased, mixed-use project. (Dean Musgrove/Daily News Staff Photographer)

"The fluctuating market for hotels and office space - which is the major part of Phase 2 - may not be strong enough to make that portion financially feasible," Nassour said.

Still, the developer agreement requires Westfield to fulfill a host of community benefits as part of Phase 1, including adding bike racks, shuttle service and the creation of a 7,000-square-foot senior center from a now-vacant Sizzler.

The new Costco will mark the seventh Los Angeles outpost for the Issaquah, W.A..-based chain. A Costco spokesman didn't reply to a query about the fate of the Canoga Park Costco, which was rumored to be moving from that location.

Councilman Mitch Englander said he was excited to see the tired-looking 30-acre lot transformed.

"This will forever change the face and the gateway to Woodland Hills," Englander said.

"Retail sales climb robust 4.7% in February"- LA Times

Los Angeles Works — Thu, 01 Mar 2012 12:00:AM PST

Retail sales climb robust 4.7% in February

By Shan Li

8:21 AM PST, March 1, 2012

Drawn by unseasonably warm weather across much of the country, shoppers hit the malls in February with their wallets open and handed retailers a robust start to the spring shopping season.

Major chain stores posted a healthy 4.7% sales increase in February compared with the same month a year earlier, beating analysts' expectations of a more modest 3.4% rise. Discounters, teen retailers and apparel sellers all posted healthy sales increases, according to Thomson Reuters' tally of 18 retailers.

"February was obviously very encouraging," said Sherif Mityas, a partner in the retail practice at consulting firm A.T. Kearney Inc. "The retailers got some great tail winds coming out of January with really great weather, they put new merchandise on the shelf, and consumer confidence is up because jobs are up. When you put all those together it makes for a good month."

Top performers were a mixture of high- and low-end stores. Teen retailer the Buckle led the way with a 14.8% bump and action-sports chain Zumiez Inc. posted a 14.2% increase. Buoyed by a comeback of wealthy shoppers, luxury retailer Nordstrom Inc. reported a strong 10.2% increase. Off-price chains TJX Cos. and Ross both reported increases of 9%.

Other retailers did not fare as well. Teen clothier Wet Seal said sales fell 5.8%, while struggling Kohl's Corp. reported a 0.8% drop.

All told, about 80% of retailers beat expectations, Thomson Reuters said.

Results are based on sales at stores open at least a year, which are considered an important measure of a retailer's health because it excludes the effect of store openings and closings.

"Fourth-quarter economic growth revised up"- Reuters

Los Angeles Works — Wed, 29 Feb 2012 12:00:AM PST

Fourth-quarter economic growth revised up

9:15am EST

By Lucia Mutikani

WASHINGTON (Reuters) - The economy grew a bit faster than initially thought in the fourth quarter on slightly firmer consumer and business spending, calming fears of a sharp slowdown in growth in early 2012.

Gross domestic product expanded at a 3 percent annual rate, the quickest pace since the second quarter of 2010, the Commerce Department said on Wednesday in its second estimate.

That was a step up from the 2.8 percent pace it reported in January. Economists polled by Reuters had expected fourth-quarter GDP would be unrevised at a 2.8 percent pace. The economy grew at a 1.8 percent pace in the third quarter.

"This shows a steady improvement despite all the volatility in stock prices we had last year and shows that we are nowhere near lapsing back to recession," said Tim Ghriskey, chief investment officer at Solaris Group in New York.

U.S. stock index futures added to gains on the data, while prices for Treasury debt trimmed gains. The dollar pared losses against the yen.

A sustained GDP growth pace of at least 3 percent would likely be needed to make noticeable headway in absorbing the unemployed and those who have given up the search for work.

While a build-up in business inventories still accounted for much of rise in output in the last quarter, revisions to GDP unveiled an improved tone for the first-quarter growth outlook.

Consumer spending, which accounts for about 70 percent of U.S. economic activity, was raised to a 2.1 percent rate from 2 percent.

Business investment in capital goods was lifted to a 2.8 percent pace from 1.7 percent, but still weak compared to the recent trend. Outlays on home building were firmer than previously estimated, while investment on nonresidential structures was modestly weak.

So far data ranging from employment to manufacturing have shown underlying strength in the economy, reducing the need for the Federal Reserve to ease monetary policy further by launching a third round of asset purchases or quantitative easing.

Fed Chairman Ben Bernanke is scheduled to testify on monetary policy before lawmakers on Wednesday at 10 a.m.

But surging gasoline prices, which have risen 12.6 percent or 42 cents since the start of the year and averaged $3.78 a gallon in the week through Monday, are clouding the outlook.

High gasoline prices helped to almost snuff out growth early last year. However, economists believe the impact on households this time could be mitigated somewhat by weak costs for natural gas and a strengthening labor market.

While the rebuilding of inventories added a hefty 1.88 percentage points to GDP in the last quarter, the increase was revised down to $54.3 billion from $56.0 billion.

This suggests scope for more stock accumulation this quarter, but not at the same magnitude as the final three months of last year.

Excluding inventories, the economy grew at a 1.1 percent rate, rather than 0.8 percent. That was still a sharp step-down from the prior period's 3.2 percent pace.

The report also showed exports were not as strong as previously thought, but imports are also not growing strongly, leaving a smaller trade gap that was less of a drag on growth.

It also showed still moderate inflation pressures, though a

price index for personal spending rose at a 1.2 percent rate instead of 0.7 percent.

A core measure that strips out food and energy costs rose at a 1.3 percent rate instead of 1.1 percent. The Fed would prefer to see this measure nearer its 2 percent inflation target.

(Reporting by Lucia Mutikani; Editing by Neil Stempleman)

"New media take old Hughes space"- LA Times

Los Angeles Works — Fri, 24 Feb 2012 12:00:AM PST

New media take old Hughes space

YouTube will set up a lab in Playa Vista to nurture video stars. A marketing agency also agrees to a lease.

By Roger Vincent and Alex Pham, Los Angeles Times

February 24, 2012

Move over, Spruce Goose. Here comes YouTube.

Internet video site YouTube and marketing agency Earthbound Media Group have agreed to be the first tenants at the Hercules Campus, an office park being created by Los Angeles developer Wayne Ratkovich from buildings in Playa Vista that were once the hub of aerospace giant Hughes Aircraft Co.

YouTube will take over a 41,000-square-foot warehouse and office. Earthbound Media will move its headquarters from Orange County to a 15,000-square-foot building where technicians assembled the cockpit for the legendary Hughes H-4 Hercules seaplane, commonly known as the Spruce Goose.

The former Hughes campus is already home to Raleigh Studios, which operates soundstages in the former hangar where the Spruce Goose was built. Paramount is filming parts of the next"Star Trek" movie there, Ratkovich said.

"The legacy of Howard Hughes really does influence people," Ratkovich said. "People love to rub shoulders with him."

YouTube and Earthbound plan to move in this year, Ratkovich said. Earthbound agreed to a 10-year lease, and YouTube is committed for 11 years. Ratkovich did not reveal financial terms of the deals but said he has been asking for nearly $3 per square foot per month.

"It truly is inspiring to be surrounded by a property with such great historical innovative significance," said Blaine Behringer, managing partner of Earthbound Media.

Purchased byGoogle Inc.in 2006 for $1.65 billion in stock, YouTube is trying to turn itself into a broadcaster of premium, original content.

YouTube said it would make the Playa Vista location an extension of its Next Lab facility in New York. The Lab, as it will be called, will focus on boosting the careers of YouTube's most popular content creators, offering them the chance to collaborate with industry experts and one another while using equipment provided by YouTube.

Once just a clearinghouse for amateur videos, YouTube in recent years began cultivating semiprofessional videographers, seeking to harness their grass-roots star power and helping them grow their audiences. Through its Partner Program, the San Bruno, Calif., company has invited more than 30,000 budding filmmakers to share in the revenue it collects from displaying ads alongside their videos.

Because videos produced by YouTube "partners" are generally higher quality and less likely to contain objectionable content, they also command higher advertising rates — seen as key to helping YouTube to reach its goal of becoming profitable. Mountain View, Calif.-based Google has not said whether the video giant is in the black.

Playa Vista is among the Westside locations now attracting businesses in creative fields such as electronic media, entertainment, technology and advertising, said real estate broker Jeff Pion of CBRE Group Inc.

"I think people want to be in an environment that stimulates creativity," Pion said.

Ratkovich, who expects to spend about $80 million buying, restoring and improving the old Hughes property, has renovated some of the region's best-known historic buildings, including the Oviatt and Fine Arts buildings and the Wiltern theater in Los Angeles and the Alex Theatre in Glendale.

He's still a bit surprised at the enthusiasm some show for time-worn properties like the once-neglected Hughes campus.

"It is just amazing," he said, "how companies prefer these industrial buildings to squeaky-clean, brand-new structures."

"Wheels of BYD Start Rolling" - China Daily

Los Angeles Works — Fri, 24 Feb 2012 12:00:AM PST

Wheels of BYD start rolling

Updated: 2012-02-24 08:38

By Wang Chao (China Daily)

BYD Co Ltd, the Chinese electric carmaker backed by United States billionaire Warren Buffett, has started weaving its green dream in the US. After setting up its North America headquarters in Los Angeles last year, it has unveiled plans to roll out its green products in the US market.

The company announced recently that it will focus on fleet sales of its electric car model e6 in the US market over the next 18 months. Last year, the company delivered around 300 e6 in China, mostly to taxi companies.

BYD, which stands for Build Your Dreams, made its debut in the US in 2000 as a supplier of batteries for major cell phone makers such as Motorola and Apple.

Since BYD has only one office in the US designated for "green products", Los Angeles is serving as a research and development center for electric vehicles, solar panels, energy storage products and LED lighting systems.

Micheal Austin, vice-president of BYD America, says Los Angeles is an optimal place for BYD to develop electric vehicles and other green products. "California has plenty of renewable resources, and the state is already rewarding people buying electric cars by granting them incentives and helping them to set up charging facilities. It is a very green state that leads the country."

In 2011, California offered consumers about 20 different state incentives to ignite purchases of green vehicles. One example was a rebate of up to $2,500 for a plug-in hybrid or a zero-emissions vehicle that was approved or certified by the California Air Resources Board.

Though BYD is known as an automaker, the company has much bigger dreams. "BYD is far beyond a car manufacturer, but a zero-emissions solution provider in the US," Austin says.

Its solution is a zero-emissions ecosystem, which Austin describes as getting power from solar panels, storing it in batteries that are used to charge electric vehicles to jolt the electric transportation market.

Over the past few months, BYD has been in talks with a major US company to collaborate in such a system, with investment estimated at $50 million.

The ecosystem, to be established in California, will operate with the same principle as the Laurel Mountain wind farm, where 1.3 million batteries and electronic components use wind to power the grid.

"That will be the largest implementation in the US," Austin says, adding that the details of the project will be disclosed in March.

According to BYD's vision, burning coal is much more harmful to the environment than combustion vehicles, so swapping electric vehicles for fuel-powered cars won't be enough to solve the emission problems.

"I believe this ecosystem is more promising in the US market because it is easier for American people to understand," Austin says.

These new initiatives are also helping BYD to diversify its product line and to ease the pressure from selling electric vehicles in a highly competitive market with strong competitors such as Chevrolet Volt, Nissan Leaf and Tesla Roadster.

Eileen W. Tutt, executive director of the California Electric Transportation Coalition, says entering the local EV market is very hard because it is expensive to produce EVs, which is the reason for the high sticker prices.

"GM (General Motors) has a large fleet of products to balance the high cost of the Chevy Volt, but it is not easy for BYD to do that. And there is almost no chance that BYD is going to get the same subsidy from the government as it does in China."

In Shenzhen, where BYD is based, electric car buyers are provided subsidies of up to 120,000 yuan ($19,063, 14,428 euros) per vehicle by the government, which reduces the sticker price by 32 percent.

But Jeff Schuster, senior vice-president of global forecasting at the consulting firm LMC Automotive (formerly JD Power automotive forecasting), says operating without incentives in the US might be a good thing for BYD in the long run.

"In the short term, the US government should offer incentives to encourage people to buy EVs; but in the long term, EV companies have to be financially viable to survive."

Although BYD has been in the US for more than 10 years, its e6 is less popular than the Volt, Leaf and CODA. These cars are mostly commuter cars that can reportedly eat up 150 miles per charge.

"Maybe it is right to keep a low-profile if BYD only wants to do fleet-sales. But if it aims to enter the individual market, they still have much more to do," Tutt says.

Austin says this is because the e6 is positioned differently than its competitors.

"BYD's focus is on long range EVs that target the mass market," he says, "E6 can last 220 miles per charge, so it is not a commute car like others."

Considering all of the e6s on the roads, combined they have racked up 6 million miles, making BYD the top EV manufacturer, Austin says. "I don't think Volt or Leaf comes anywhere near that."

"For many Americans, they can charge EVs in their garage. But if cars can only be charged at home at night, it is just a commute car confined within 40 miles. BYD is designed for the long-range transportation that needs to be supported by public charging infrastructures."

But Tutt says the ability to drive longer distances could backfire for BYD given the current availability of charging stations in the US.

"From the market perspective, longer range is a huge advantage, and there is certainly a market for EVs with a range more than 200 miles; but even in California where the number of charging stations is ahead of other states, locations of charging stations are not that easy to find."

He admits that e6 is more dependent on public charging stations. Currently there are 1,541 electric charging outlets available in the state, 26 percent of the total number in the country, according to figures from the US Department of Energy.

And a longer range would result in a higher cost of the vehicle. "Once an electric car is priced over $50,000, it is hard to sell," she says.

The price of e6 hasn't been announced in the US because "it would depend on the volume of the order", as Austin says. The same model in China is priced at 369,800 yuan (about $58,000).

As a company with multiple product lines, BYD is encountering challenges never met by Volt or Leaf.

"The biggest challenge for BYD is finding local partners in the US," Austin says. "We are the only company that does battery, solar and EV. Nissan Leaf gets the battery from NEC, Toyota doesn't build batteries, either, and Ford buys their batteries from a Korean company."

Austin says when they seek partners, they want them to sell solar, LED lighting as well as the zero-emission vision.

"We don't want a batch of GM dealers, but we want them to educate the customers, like the Apple stores, on what the technology can bring to them. It is about how you live, not just how you drive."

As promising as it sounds, Schuster from LMC says the prospect of e6 is not only a matter of technology, but also a customer behavior issue.

"The public is still concerned about the battery life, known as the 'battery anxiety'. And the premium price has to be brought down before the market really takes off," he says.

He cites the forecast from LMC that EV penetration in the US can reach 1 percent by 2020, or 10 percent if hybrids are part of the same category.

"Certainly we need to publicize more to raise people's awareness, but the soaring oil price and the reduced price of EVs are really the two pushing hands," Schuster says.

"Fortunately, there is a large group of young people who learned about EVs, and are willing to buy environment-friendly cars."

Read the full article at China Daily.com

"On Location: Bill introduced to extend state film tax credit"- LA Times

Los Angeles Works — Thu, 23 Feb 2012 12:00:AM PST

On Location: Bill introduced to extend state film tax credit

"Chinese leader Xi, Biden promote trade in LA"- Daily News

Los Angeles Works — Fri, 17 Feb 2012 12:00:AM PST

Chinese leader Xi, Biden promote trade in LA

By Noaki Schwartz and Christina Hoag, Associated Press Writers

Posted: 02/17/2012 09:22:25 PM PST

Updated: 02/17/2012 09:32:45 PM PST

Vice President Joe Biden, center, Chinese Vice President Xi Jinping, left, and Los Angeles Mayor Antonio Villaraigosa, right, clap at the conclusion of a dance performance during a visit to International Studies Learning Center Friday, Feb. 17, 2012 in South Gate, Calif. Chinese Vice President Xi Jinping began the last day of his U.S. visit Friday by urging closer ties and arguing that Americans benefit from their trade relationship with China. (AP Photo/Los Angeles Times, Jay L. Clendenin, Pool)

LOS ANGELES - Chinese Vice President Xi Jinping began the last day of his U.S. visit Friday by urging closer ties and arguing that Americans benefit from their trade relationship with China.

"A prosperous and stable China will not be a threat to any country," Xi said. "It will only be a positive force for world peace and development."

Xi, who is expected to become president of the world's most populous nation next year, started his fourth day in the United States at a downtown Los Angeles trade conference hosted by the Chinese Ministry of Commerce. His American counterpart, Vice President Joe Biden, joined him later.

California Gov. Jerry Brown and Los Angeles Mayor Antonio Villaraigosa both lauded the U.S.-China relationship.

"We've got a great future together," said Brown, who announced plans to open a new trade and investment office in China. China is a major trade partner with Los Angeles, which has greatly benefited from its Pacific Rim position and has courted Chinese businesses and their potential jobs.

A day earlier, Xi toured the Port of Los Angeles, the nation's busiest port complex. Nearly 60 percent of the imports moving through the port come from China.

U.S. Commerce Secretary John Bryson also encouraged more Chinese investment, commenting that "America is truly open for business." However, he called for balancing the economic and trade relationship, which has been a lightning rod for critics of China.

Trade between the two countries increased exponentially last year but the U.S. trade deficit also grew by 30 percent, Bryson said.

"We have to work harder to achieve balanced trade growth," he said.

Any view that the U.S. is the loser in its trade relationship with China "does not square with facts," Xi said through a translator.

Chinese imports have helped Americans improve their standard of living and created more than 3 million new jobs in the U.S. from 2001 to 2010, Xi said.

U.S.-China trade is expected to top $500 billion soon, and the countries have moved from "mutual estrangement to a close exchange with increasingly intertwined interests," he said.

Outside the hotel hosting the trade forum, picketers protested Chinese policies in Tibet and its treatment of Falun Gong followers. Two protesters were cited for standing in the roadway but no one was arrested, Los Angeles Police spokesman Cleon Joseph said.

After the trade forum, Xi and Biden visited a suburban school in South Gate that specializes in Asian studies to promote more American students studying in China.

The vice presidents watched a traditional Chinese "dragon dance" performed by middle- and high-school students at the International Studies Learning Center, a public school that is part of the Asia Society's network of schools across the country.

"You are an impressive group of students," Biden said. "Thank you for making America look so good."

Biden told the students that the U.S.-China relationship is the single most important relationship the country has in the 21st century. He said he and President Barack Obama believe that the most significant factor in improving U.S.-China ties is increasing educational opportunity for American students in China.

Under the 100,000 Strong Initiative, the White House aims to have at least that many American students studying in China.

Xi, who spoke with a class of high school students learning Chinese, lauded their Mandarin skills, saying it was important to learn the culture as well as the language to avoid misunderstandings.

Later, Xi and Biden both addressed a luncheon at the trade forum, saying how they had developed a close, personal friendship through visits. "I can say with confidence my visit has been a full success," Xi said.

The officials then met with governors of seven Chinese provinces and five U.S. states and one U.S. territory - the Northern Mariana Islands - to further promote commerce.

"We have a significant opportunity to increase trade with China but we have some impediments on both sides," Biden said. "We are working through them. We are convinced they can be overcome."

Biden said he appreciated Xi's candor. "He is very, very direct. When we disagree, there's a clear statement of disagreement," Biden said. "I was impressed by how much he wants to know about how our system works."

Xi attended the Los Angeles Lakers' game against the Phoenix Suns on Friday night.

Xi's U.S. tour comes at a politically challenging time in U.S.-China relations, with the White House sending stern messages on currency exchange, intellectual property protection and trade policies, and Republican presidential candidates claiming Obama isn't doing enough to keep America's economy competitive with China's.

The Asian power sells four times as many goods to the U.S. as the United States sends in return to China. However, China became the top market for U.S. agricultural goods last year, purchasing $20 billion in U.S. agricultural exports, according to the U.S. Department of Agriculture.

"L.A., Long Beach ports complex posts best January since recession"- LA Times

Los Angeles Works — Thu, 16 Feb 2012 12:00:AM PST

L.A., Long Beach ports complex posts best January since recession

The strong month is attributed to a weak dollar, stronger Asian economies and steadier U.S. consumer spending.

By Ronald D. White, Los Angeles Times

February 16, 2012

The nation's busiest seaport complex had its best January since the recession because of a weak dollar, stronger Asian economies and a steadier U.S. consumer.

The cargo traffic numbers also showed the increasing importance of exports at the ports of Los Angeles and Long Beach, which rank first and second in the U.S. for container cargo, respectively. As recently as 2008, imports outpaced exports by more than 3 to 1. But in January, the ratio had shrunk to a little more than 2 to 1.

Although the U.S. trade deficit hasn't declined, the two ports have done well in luring more customers that ship goods overseas, economist Paul Bingham said. The weak U.S. dollar relative to other currencies was also making domestic goods more affordable to foreign buyers.

"The biggest underlying story is the growth in exports," said Bingham, economics practice leader for CDM Smith Inc. in Virginia. "The demand is coming from the faster recoveries from the recession that we are seeing in the major Asian and the emerging Asian economies."

Cargo numbers are a bellwether of the Southern California economy, said John Husing of the Redlands firm Economics & Politics Inc. About 640,000 people work in trade-related jobs from Ventura County to San Diego County, Husing said. That's up from a low of fewer than 600,000 during the recession but still far short of the 709,000 workers in 2007.

Combined, the two ports moved 1.16 million containers in January, up from 1.14 million a year earlier. It was the best showing since the ports handled 1.17 million containers in January 2008.

For Los Angeles, it was the best January ever as the port handled 698,715 cargo containers, an increase of more than 38,000 from a year earlier. Imports through the port were up 5.25% to 356,395 containers. But the bigger percentage increase came in exports, which rose nearly 6% to 168,427 containers.

Los Angeles' January traffic broke a record set during the height of a global economic boom, in 2007, when the port moved 691,602 containers.

"This past month took us a little bit by surprise," said Katherine McDermott, the Los Angeles port's deputy executive director for business development, "but it's a very nice surprise. We have been forecasting conservatively for a 2% to 3% increase in cargo volumes in 2012."

Traffic was down in January compared with a year earlier at the neighboring Port of Long Beach, with imports declining 5.49% to 229,125 containers and exports falling 8.2% to 117,083 containers. Overall, Long Beach moved 456,424 containers, including empty ones, down 3.9% from a year earlier.

Still, Long Beach's import numbers were good enough in January to give the two ports a 0.76% improvement, to 585,520 imported containers in January, compared with January 2011, which had been a very strong month, Husing said.

"That's important. The export news is good, but the bigger driver of employment at the ports are the imports," he said, "so that increase is very good news."

"California economic reports forecast modest growth"- LA Times

Los Angeles Works — Wed, 15 Feb 2012 12:00:AM PST

California economic reports forecast modest growth

The L.A. County Economic Development Corp. sees California adding nearly half a million jobs over the next two years. Meanwhile, S&P raises the state's outlook.

By Marc Lifsher, Los Angeles Times

12:01 AM PST, February 15, 2012

Reporting from Sacramento

Things are looking up for California's beleaguered economy as the recovery from the recession hits a period of slow, modest growth this year and next, according to two economic reports.

Over the next two years, the state is poised to add nearly half a million jobs and drive the current 11.1% unemployment rate down to nearly 10%, the Los Angeles County Economic Development Corp. said in an annual forecast scheduled to be released Wednesday.

And on Tuesday, financial rating company Standard & Poor's upgraded its outlook on California's ability to repay its debts to "positive" from "stable."

"We think the state is poised for credit improvement — and potentially a higher rating," S&P said.

An upgrade in the state's credit rating would be "a powerful vote of confidence," Gov. Jerry Brown said.

California's improved financial condition, however, is based partly on continued budget cutting, which has fallen heavily on government jobs and services. The state lost 85,500 local, state and federal government jobs since the start of the recession in December 2007.

For Los Angeles County, the recovery is expected to come at "a painfully slow pace," taking years to make up about 300,000 private-sector and government jobs lost since the start of the recession, according to the forecast.

Governments in the county are expected to shed 3,200 jobs this year, according to the economic development company, a nonprofit that does economic research and promotes local business growth.

In the private sector, the construction industry is expected to drop 3,300 jobs this year. But the losses in government and construction jobs should be offset by bigger gains in other industries, giving the county a net of 15,600 new jobs this year, the report said.

The biggest gains in the county should be in health services, with 5,400 net new jobs; education, with 4,800; information, including television and film production, with 4,100; and leisure and hospitality, with 3,900.

International trade through the ports of Los Angeles and Long Beach and Los Angeles International Airport jumped late last year and is ready to expand along with the national economy. But that projection would hold true only if there were no international political or economic crisis in Europe, the Middle East or elsewhere, the report said.

Barring an international meltdown, the job picture for Los Angeles County should brighten next year with the creation of about 22,700 jobs. The county created more than 10 times that many jobs in 2006, the year before the recession started.

"Los Angeles County seems to be moving, but it's improving at a slower pace than the state as a whole and the rest of the nation as a whole," said the principal author of the report and chief economist at the development company, Robert Kleinhenz.

This year, the country's economy should grow 1.1% and the state's 1.5%, while Los Angeles County's growth is forecast to be only 0.6%, he said.

Orange County, the first in Southern California to return to economic growth, in 2010, will lead the transition from recovery to a slow, steady expansion, fostered by its universities, high-tech industries and tourist attractions, the report said.

Residential real estate in Orange County, particularly for lower-priced condominiums, could begin to turn around, "with prices bottoming out and a small upswing in sales and new home construction," the report said.

The distressed Inland Empire of San Bernardino and Riverside counties showed its first signs of weak growth in the last four months of 2011 but still is hampered by a large number of foreclosures, falling home values and joblessness projected to remain at above 12% this year.

Home construction could take years to revive in the Inland Empire. But in the meantime, an uptick in imports fueled by a boost in retail sales could bring more jobs to the burgeoning warehouses, logistics operations and distribution centers there.

"For the Inland Empire, patience will continue to be the watchword, as the region is not expected to see the pre-recession glory days for at least two to three years," the report said.

Ventura County, with its mix of high-value agricultural crops and high-tech industries, should lag behind the rest of the state in getting back on its feet. Residential real estate will be a drag for at least the next few years, the report said.

"We're moving at such a slow pace that, at times, it looks like we're not gaining any ground," Kleinhenz said. "But if we look back at the end of the year, we'll see that the economy has improved."

"Retail sales rebound as consumers step up spending"- LA Times

Los Angeles Works — Tue, 14 Feb 2012 12:00:AM PST

Retail sales rebound as consumers step up spending

Associated Press

6:17 AM PST, February 14, 2012

WASHINGTON — Americans rebounded from a weak holiday season and stepped up spending on retail goods in January, an encouraging sign for the strengthening economy.

Retail sales rose at a seasonally adjusted 0.4 percent last month, the Commerce Department said Tuesday. Consumers spent more on electronics, home and garden supplies, sporting goods, at department and general merchandise stores and at restaurants and bars.

Consumers spent less on cars in January, the report showed, even though automakers have previously reported higher sales in January. That suggests dealers offered discounts in order to boost sales. Low interest rates, better loan availability and new car models have helped drive sales higher in the last three months.

The January retail sales figures were an improvement from December, which were downwardly revised to show a flat reading. And excluding autos, building materials and gasoline station sales, core retail spending jumped 0.7 percent.

The "retail sales data are better than they look, but they don't suggest that consumption growth is about to set the economic recovery alight," Paul Dales, an economist at Capital Economics, wrote in a note to clients.

The government's retail sales report is its first look each month at consumer spending, which represents 70 percent of economic activity. The positive data suggest that hiring gains have encouraged more people to spend, which should lead to stronger growth.

Economists had expressed concerns that consumers might pull back on spending this year because their wages hadn't kept pace with inflation. And many consumers relied on savings to make up the difference.

The report suggests consumers are managing to increase spending at the same pace they did late last year, despite only small gains in pay.

"The good news is that the strong January gain establishes that the consumer trend is not folding," said Pierre Ellis, an economist at Decision Economics.

Retail sales have risen about 21 percent since hitting a recession low. And they're nearly 6 percent above their pre-recession high.

Sales at gasoline stations rose 1.4 percent last month, the most in 10 months. Gas prices have risen steadily in recent months. The average price for a gallon of gas was $3.51 on Monday, up 12 cents from a month earlier.

Earlier this month, big chain retailers reported a solid increase in January sales. The gains weren't evenly spread. Lower-priced stores such as Target and Costco reported big gains.Macy's and other stores that sell mid-priced goods didn't do as well.

The government's monthly report is a broader gauge of retail sales. It covers purchases at all retailers, including auto dealerships, restaurants and bars, grocery stores and gasoline stations.

Consumers are taking on more debt after cutting back in the aftermath of the recession. Consumer borrowing, which includes credit cards, auto loans, and student loans, posted the biggest monthly gains in a decade in November and December.

The increases suggest consumers are more confident about the economy. But they could also mean that some are increasingly reliant on credit as wages have failed to keep up with inflation in the past year.

Hiring has picked up in recent months, which could support more spending. Employers added 243,000 net jobs last month, the fifth straight month of solid hiring.

The economy, meanwhile, expanded at an annual rate of 2.8 percent in the final three months of last year. Growth may slow a bit from that pace in the current quarter. Many economists forecast modest growth of 2 percent to 2.5 percent this year.

Metro Issues Request for Next Generation of Super-Clean Buses for Los Angeles in Pilot Program Initiated by Mayor Villaraigosa

Los Angeles Works — Sat, 11 Feb 2012 12:00:AM PST

Mayor and Metro See Healthier, More Prosperous Future for LA through Clean Transportation Technology

LOS ANGELES -- Today, the Los Angeles County Metropolitan Transportation Authority (Metro) released a request for proposals (RFP) for up to 30 Super Low Emission Buses (SLEBs) and/or Zero Emission Buses (ZEBs) as part of a pilot program to evaluate burgeoning technologies for LA’s future bus fleet. The program concept originated in the Office of Mayor Antonio Villaraigosa, who serves as Chair of the Metro Board of Directors and who views continuous technological innovation in our transit system as vital to the public health and economy of the City and County. The Mayor championed the program alongside County Supervisors and fellow board members Don Knabe and Michael Antonovich.

“We aren’t waiting for the State to tell us that LA should be looking into the next generation of buses,” said Mayor Antonio Villaraigosa. “With this Zero Emission Bus pilot program we are beginning to lay the foundation for not only a healthier and more sustainable environment, but also tomorrow’s cleantech economy and the jobs it will create in Los Angeles.”

Click here to see all of Metro's current solicitations, including this pilot program.

"First-time unemployment claims sink to early-recession levels"- LA Times

Los Angeles Works — Fri, 10 Feb 2012 12:00:AM PST

First-time unemployment claims sink to early-recession levels

The decline in initial jobless claims reflects the slowdown in layoffs at companies as the economy has improved and employers have shown more willingness to keep their workers.

By Don Lee, Los Angeles Times

February 10, 2012

Reporting from Washington

In another sign that the job market is gaining momentum, the number of workers filing for unemployment benefits fell further last week — down to levels last seen in the early months of the recession.

The Labor Department said Thursday that first-time jobless claims dropped by 15,000 to 358,000 last week, although week-to-week changes can be volatile.

The average for the last four weeks, a more reliable measure, dropped to 366,000 — the lowest four-week average since April 2008.

Initial jobless claims averaged 418,000 in the same four-week period last year. The decline reflects the slowdown in layoffs at companies as the economy has improved and employers have shown a greater willingness to hold on to their existing workers.

Earlier this week, the Labor Department reported an increase in job openings. And last Friday, in the single most important monthly gauge of the economy, the government said employers across a broad spectrum of industries added a net total of 243,000 jobs in January, the most in nine months.

All these data indicate that the labor market is healing, but most analysts remain cautious. Unemployment claims fell last winter as well, and job growth spiked in the early months last year only to fizzle by summer as shocks from the global economy and domestic politics undercut confidence.

The continuing drop in jobless claims — considered a signal of future economic trends — shows that the problem with today's job market isn't layoffs but rather the modest and unsteady hiring at companies. Business confidence appears to be rising, and if the economy continues to perk up, employers are likely to step up their hiring.

The economy has a long way to go to make up for the jobs lost in the recession, and the latest data showed nearly 13 million people were officially unemployed in January. As of Jan. 21, the government said Thursday, about 7.7 million people were receiving state and federal unemployment benefits, down from 9.4 million a year earlier.

"Major chain stores post 4.2% sales increase in January"- LA Times

Los Angeles Works — Fri, 03 Feb 2012 12:00:AM PST

Major chain stores post 4.2% sales increase in January

Retailers benefited from shoppers redeeming holiday gift cards and checking out winter sales. Analysts had expected a modest 2% gain.

By Shan Li, Los Angeles Times

February 3, 2012

Shoppers turned out at the nation's malls in January to redeem holiday gift cards and check out winter sales, spending carefully but sufficiently to help retailers clear their shelves before the spring buying season.

In a solid showing for a typically slow month, major chain stores posted a 4.2% sales increase in January compared with the same month last year, according to Thomson Reuters. The results handily beat analysts' expectations of a modest, 2% rise.

January is considered by many retail experts to be the least important month of the year as stores unload their winter and holiday items. The months ahead, when retailers roll out spring and summer apparel and accessories, will provide a better gauge of how retailers will fare this year, they said.

"There were no real surprises in January. I have seen a consistency of performance by a number of retailers month after month delivering" strong sales, said Michael Brown, a partner in the retail practice at consulting firm A.T. Kearney. "This report shows some good tail winds for 2012."

At the South Bay Galleria in Redondo Beach on Wednesday, shopper Sheryl Whitfield said that after restricting herself to a tight budget during the holiday season, she was happy to be splurging a little for her birthday.

"I didn't go overboard for Christmas, but I am going crazy this past week," said the Westchester elementary school teacher, showing off a pair of black peep-toe booties she bought for $148. "I've been shopping all week, but you only turn 50 once. And I'm going to try not to shop for the rest of the year."

Industry watchers said sales were helped by gift-card redemption and heavy promotions by merchants, who were pushed by a relatively mild winter in many parts of the country to heavily slash prices on cold-weather apparel.

Top performers were a mixture of high- and low-end stores. Action-sports chain Zumiez Inc. led the way with a 10.8% bump. Buoyed by a comeback of wealthy shoppers, luxury retailer Saks Inc. reported a 10.5% increase, while Nordstrom Inc. posted a 5% gain. Costco Wholesale Corp. said sales rose 8%. Limited Brands Inc., parent company of Limited and Victoria's Secret stores, had a 9% increase.

Other retailers did not fare so well. Teen clothier Wet Seal Inc. said sales fell 13%, while struggling apparel giant Gap Inc. reported a 4% drop. All told, about 60% of retailers beat expectations and 40% missed estimates, according to Thomson Reuters' tally of 20 major chain stores, including department stores, discounters and apparel sellers.

Results were based on sales at stores open at least a year, known as same-store sales and considered an important measure of a retailer's health because it excludes the effect of store openings and closings.

Retail analysts caution that most shoppers still aren't spending freely because they continue to worry about their jobs and the economy. Although the industry did modestly well during the holidays, some say that shoppers will cut back their spending in the months after Christmas.

"The savings rate is going up and disposable income is flat to down," said Robin Lewis, a retail consultant and chief executive of the Robin Report, a retail industry publication.

He said consumers dug into their savings to buy gifts during the holidays but will probably not do so again this year.

Other industry watchers were more optimistic, pointing out that consumer confidence should be bolstered by recent signs that the job market and manufacturing were picking up slightly.

"Consumers are still going to go out and shop. They will just be very smart and look for value," said Brown, the analyst.

At the South Bay Galleria, Marvin Thomas, 42, was hunting for bargains and had snapped up a pair of black leather loafers reduced to $20 from $70. After four years of abstaining from buying clothes, Thomas said he had squirreled away money over the last year to spruce up his wardrobe.

"I believe the economy is still jacked up," the Gardena barber said. "But there are great deals out there, and I just really need some slacks, shirts and shoes."

Last month, department store chain J.C. Penney Co. announced it would stop reporting sales on a monthly basis, a move that follows similar decisions by other retailers such as Wal-Mart Stores Inc., Abercrombie & Fitch Co. and American Eagle Outfitters Inc.

Retail executives say reporting on a monthly basis puts too much focus on short-term results, but analysts and economists say that not reporting monthly sales makes it harder to get an accurate gauge on the overall industry.

For February, the International Council of Shopping Centers is predicting a 3% to 3.5% sales increase.

"Fewer seek unemployment aid as U.S. economy improves"- LA Times

Los Angeles Works — Thu, 02 Feb 2012 12:00:AM PST

Fewer seek unemployment aid as U.S. economy improves

Associated Press

8:12 AM PST, February 2, 2012

The number of people seeking unemployment benefits fell last week to a level that signaled a steadily improving job market. The figures came one day before the government is expected to report that January marked another solid month for hiring.

Unemployment applications fell 12,000 to a seasonally adjusted 367,000, the Labor Department said Thursday. The four-week average, a less volatile measure, dropped for the third straight week to 375,750.

That's the second-lowest level for the four-week average since June 2008. When applications stay consistently below 375,000, it usually signals that hiring is strong enough to lower the unemployment rate.

Separately, retailers issued mixed sales reports for January. Slow growth is leaving many Americans cautious about how they spend their money.

Economists expect the January employment report to show that employers added 155,000 jobs last month and that unemployment remained at 8.5 percent. In December, employers added 200,000 jobs.

The job market “still appears to be slowly moving in the right direction,” said Jim Baird, chief investment strategist at Plante Moran Financial Advisors.

In a separate report, the government said workers were more productive in the final three months of last year. The growth in productivity, though, slowed from the previous quarter. Weaker productivity growth can help boost hiring if economic growth picks up.

Applications for unemployment benefits have steadily declined since fall as economic growth has picked up and employers have cut fewer jobs. The four-week average has fallen 7 percent since last October and 13 percent in the past year.

The nation will gain about 160,000 jobs a month this year, according to a survey of economists by the Associated Press. That's up from an average of about 135,000 last year.

Still, the job market has a long way to go before it fully recovers from the damage of the Great Recession, which wiped out 8.7 million jobs. More than 13 million people remain unemployed. Millions more have given up looking for work; they're no longer counted as unemployed.

That's weighing on consumer confidence and holding back spending. January retail sales frequently benefit from rising sales of winter clothes and shoes, which stores usually discount. But unusually warm weather has held back on those sales.

Costco and Target reported sales that were above Wall Street analysts' expectations, while Macy's and Dillard's posted disappointing figures.

The average rate on a 30-year mortgage fell to a record low this week, Freddie Mac said, the ninth time that's happened this year. But the cheaper rates haven't done much to lift the depressed housing market.

Nearly 7.7 million Americans received unemployment benefits in the week ending Jan. 14, the latest period for which figures are available. That's unchanged from the previous week.

The economy's growth rate rose in the final three months of last year, to a 2.8 percent annual rate. That was faster than the 1.8 percent pace in the July-September quarter.

But a key reason for the growth was that companies restocked their supplies at a robust pace. Restocking is likely to slow in the first three months of this year, which would lead to weaker growth.

Until consumer spending picks up, businesses may be forced to cut back on hiring. But consumers have been weighed down by wages that haven't kept pace with inflation. More jobs and higher pay would invigorate consumer spending.

Most economists expected the combination of weaker inventory growth and tepid consumer spending to lead to slower growth in the current January-March quarter. Many are predicting 2 percent annualized growth this quarter.

"Obama Administration expands foreclosure relief program"- LA Times

Los Angeles Works — Fri, 27 Jan 2012 12:00:AM PST

Obama Administration expands foreclosure relief program

By Alejandro Lazo

12:16 PM PST, January 27, 2012

Struggling homeowners are set to get more help from the federal government as the Obama Administration extends its key foreclosure prevention plan for a year.

The administration will also add the number of people eligible for the program to include investors and will increase incentives for large banks to modify more troubled mortgages.

Originally set to expire in December 2012, the administration’s Home Affordable Modification Program will be extended for another year, government officials said Friday. The expansion is part of a renewed push by the Obama Administration to right the housing market as it enters its fifth year of malaise.

“We are still coming back from the worst financial recession since the Great Depression, in which the abuses in the housing sector were the most prominent and have left the deepest legacy,” National Economic Council Director Gene Sperling told reporters in a conference call. “It requires an all-out, all-of-the-above strategy.”

Officials would not say how many new borrowers the administration hoped to reach through the program expansion. The initiative was unveiled in 2009, with the goal of helping as many as 4 million borrowers receive modifications; it has helped only about 900,000 receive new mortgages to date.

The administration said it would expand the program by including a secondary evaluation for borrowers who might have hefty second mortgages or medical bills weighing down finances. It would also expand the program to include so-called income properties, where the people living in the homes are paying rent.

The plan would also triple the incentives for mortgage servicers participating in the program to do principal write-downs. It will also extend those incentives to loans owned or insured by mortgage giants Fannie Mae and Freddie Mac, which have been reticent to reduce mortgage principal given that they have received enormous bailouts from the American taxpayer.

"Record 26.9M people visited L.A. last year"- Daily News

Los Angeles Works — Wed, 25 Jan 2012 12:00:AM PST

Record 26.9M people visited L.A. last year

By Gregory J. Wilcox, Staff Writer

Posted: 01/25/2012 06:43:19 PM PST

Updated: 01/25/2012 06:50:42 PM PST

Visitors enjoy an afternoon at Universal Studios and CityWalk in Universal City, Calif., on June 26, 2009. (Andy Holzman/Staff Photographer)

L.A. was the place to be in 2011 as a record 26.9 million people visited the metro area, a tourism trade association said Wednesday.

The number of visitors to Los Angeles last year increased 4 percent from 2010. They opened their wallets, too, spending an estimated $15.2 billion - 8 percent more than the previous year, said LA Inc., the Los Angeles Convention and Visitors Bureau.

"It's just fabulous and very encouraging," said Mark Liberman, the bureau's president and CEO. "We have an economy that has improved and we have added new product. We are a city that has something for really everyone."

The economic impact of tourist spending spread out through the city. The record number of tourists drove increased occupancy at hotels and improved business for restaurants, attractions and cultural institutions, the bureau said.

Tourism is the biggest industry in the region job-wise, employing about 364,000 people, and accounting for one in 10 of Los Angeles' jobs, Liberman said.

The biggest draw, naturally, is L.A.'s weather. The city basks in sunshine more than 320 days a year, according to the bureau.

And in 2011 tourists found new attractions to visit. They included Cirque du Soleil's new show, "IRIS: A Journey Through the World of Cinema" at the Kodak Theatre in Hollywood and the Natural History Museum's Dinosaur Hall, which now rivals the world's largest dinosaur exhibits.

"I think things will only get better. We're sensing that 2012 will be another record year and we are adding new product," Liberman said.

That includes Universal Studios Hollywood's "Transformers The Ride-3D" this May and the arrival of NASA's space shuttle Endeavor at the California Science Center this year.

Universal is excited about its prospects.

"As a leading worldwide tourist destination, Universal Studios Hollywood enjoyed significant growth in international visitation in 2011," Larry Kurzweil, Universal

Visitors enjoy an afternoon at Universal Studios and CityWalk in Universal City, Calif., on June 26, 2009. (Andy Holzman/Staff Photographer)

Studios Hollywood chief, said in a statement.

The Transformers attraction is the park's most technologically-advanced thrill ride ever built, he said.

"We're prepared to see our tourism numbers increase dramatically," Kurzweil noted.

Los Angeles also benefits by being a gateway to Asia. China is now the number three source of foreign visitors, behind number one Australia and the United Kingdom.

Los Angeles International Airport now has six nonstop daily flights to China, twice as many in 2010.

"We think that probably within five years China will be the number one overseas market for Los Angeles, which is great news because the Chinese have a tendency to spend more and stay longer. It's great for the economy and jobs," Liberman said.

Los Angeles Mayor Antonio Villaraigosa noted that in 2006 L.A. became the first American city to open a tourism office in Beijing. Since then visitors from China to Los Angeles have increased 150 percent.

"We are committed to increasing tourism to L.A. because it means more jobs for Angelenos," the mayor said in a statement.

Last year, the bureau said:

There were 5.9 million international visitors, up 7 percent from 2010. And they spent $5.5 billion, up 12 percent from the prior year.

Visitors from Japan increased 5.5 percent despite the powerful earthquake and tsunami in March.

Visitors from Canada increased 13 percent to 675,000, a record.

Domestic travelers increased 2 percent and their spending increased 5 percent to $9.7 billion.

"City of L.A. To Expand Business Assistance Centers"- LA Business Journal

Los Angeles Works — Mon, 23 Jan 2012 12:00:AM PST

City of L.A. To Expand Business Assistance Centers

By Howard Fine

Monday, January 23, 2012

Los Angeles Mayor Antonio Villaraigosa announced on Monday an expanded offering of services at six business assistance centers throughout the city.

The centers now have full-time staff that will help businesses navigate through the city permit system, comply with regulations and access city contract opportunities. The centers will also offer more one-on-one consulting for businesses and more entrepreneurial training and workshops.

“We are re-opening the BusinessSource centers to give entrepreneurs the tools they need to create jobs and grow their businesses,” Villaraigosa said at a ceremony marking the upgraded service offerings at the East Los Angeles center in Boyle Heights.

The business assistance centers first opened in 2000. Besides the East Los Angeles center, there are two in the San Fernando Valley, one in the harbor area, another in South Los Angeles and one serving the Central City area and the Westside.

In 2010, as the city’s small businesses were suffering from the effects of the recession and a credit squeeze, the Mayor’s Office of Small Business and the Community Development Department started looking at ways to improve the service offerings.

The revamp also looked at improving small business access to city contracts in the context of a new local preference ordinance that gives on edge to bids from companies in Los Angeles County.

"California jobless rate falls for fifth straight month"- LA Times

Los Angeles Works — Fri, 20 Jan 2012 12:00:AM PST

California jobless rate falls for fifth straight month

By Marc Lifsher

January 20, 2012, 8:44 a.m.

California's unemployment rate fell to 11.1% in December from 11.3% in November, marking five straight months of declines.

Last month, the state gained about 10,700 new payroll jobs, the California Employment Development Department said Friday.

At the same time, an earlier tally of 6,600 new jobs created in November was revised upward dramatically to 24,700. In all, the Golden State created 240,300 new jobs in 2012.

The new numbers suggest that California's economy is gaining traction as it steadily replaces more of the 1.3 million jobs lost in the 2007-2009 recession.

The state unemployment rate was 12.5% at the end of 2010.

"The instinct I'm having is the recovery is finally starting to be real," said economist John Husing, a specialist in the Los Angeles area ports and the hard-hit Inland Empire of Riverside and San Bernardino counties.

California's unemployment rate, though improving, still remains one of the highest in the country and is considerably higher than the national rate of 8.5% for December.

"The recovery has legs," said Howard Roth, chief economist at the California Department of Finance. "It's steady, and I think it's going to stick."

"Unemployment claims at 352,000, fewest since 2008"- LA Times

Los Angeles Works — Thu, 19 Jan 2012 12:00:AM PST

Unemployment claims at 352,000, fewest since 2008

Associated Press

6:26 AM PST, January 19, 2012

The number of people seeking unemployment benefits plummeted last week to 352,000, the fewest since April 2008. The decline added to evidence that the job market is strengthening.

Weekly applications fell 50,000, the biggest drop in the seasonally adjusted figure in more than six years, the Labor Department said Thursday. The four-week average, which smooths out fluctuations, dropped to 379,000. That's the second-lowest such figure in more than three years.

A department spokesman cautioned that volatility at this time of year is common. Applications had jumped two weeks ago, largely because companies laid off thousands of temporary workers hired for the holidays.

When weekly applications fall consistently below 375,000, it usually signals that hiring is strong enough to push down the unemployment rate.

Hiring improved in the second half of 2011. In December, employers added 200,000 jobs. That marked the sixth straight month in which the economy added at least 100,000 jobs. And the unemployment rate fell to 8.5 percent, a three-year low.

For all of 2011, the economy added 1.6 million jobs. That was up sharply from 940,000 in 2010. Economists say they expect roughly 1.9 million more jobs to be added this year, according to a survey by The Associated Press.

Still, the job market has a long way to go before it fully recovers from the damage of the Great Recession, which wiped out 8.7 million jobs. More than 13 million people remain unemployed. Millions more have given up looking for work and so are no longer counted as unemployed.

The manufacturing sector remains a bright spot. Factory output jumped 0.9 percent in December, the Federal Reserve said this week. That was the sharpest monthly gain in a year. Manufacturing gained 225,000 jobs last year, the most since 1997.

The pickup in hiring reflects stronger economic growth. The economy likely grew at an annual rate of about 3 percent in the final three months of last year, economists estimate.

That would be a sharp improvement over the 1.8 percent annual growth rate in the July-September quarter. Rising consumer spending is thought to be fueling much of the gain in the current quarter.

Even so, economists worry that growth could slow in the first half of 2012. Europe is almost certain to fall into recession because of its financial troubles.

And wages failed to keep pace with inflation last year. Without more jobs and higher pay, consumers might have to cut back on spending. That would weigh down growth next year. Consumer spending accounts for about 70 percent of the economy.

"Report finds optimism about commercial real estate"- LA Times

Los Angeles Works — Thu, 19 Jan 2012 12:00:AM PST

Report finds optimism about commercial real estate

As markets for office and industrial space improve, California commercial real estate developers and their bankers are growing hopeful, the Allen Matkins UCLA Anderson Forecast finds.

By Roger Vincent, Los Angeles Times

6:01 AM PST, January 19, 2012

California commercial real estate developers and their bankers are growing optimistic about their industry's prospects, a report said.

Although the national economy has given mixed signals in the last six months, California's markets for office and industrial space have made progress, albeit uneven, according to the semiannual Allen Matkins UCLA Anderson Forecast.

"The progress, such as it is, has been driven by the steady employment gains in coastal California," the report said.

Businesses filling offices include professional, technical and scientific services firms along with healthcare companies. Industrial and warehouse space is being taken by manufacturers and export-related businesses.

The forecast is based on polls of developers and their financiers about their sentiments for the coming three years. Their responses varied by region, with markets where the tech industry is strong showing the most promise. San Francisco and Silicon Valley, tech hotbeds, ought to be the first areas where nonresidential construction is renewed, the report said.

In Southern California, some office landlords are finally beginning to see tangible evidence of a recovery taking hold, the report said, as rents and occupancy stabilize in their buildings.

"Clearly, Southern California office space markets have not recovered and the fundamentals do not by themselves support another building spree, but the free-fall of 2008 and 2009 is over and office markets are, little by little, getting better," the report said.

Developer optimism combined with stronger job growth in San Diego and coastal areas of Los Angeles County such as Santa Monica suggest nonresidential construction will return to San Diego and parts of Los Angeles before the balance of Los Angeles County and Orange County.

Bay Area industrial property developers were most optimistic about Silicon Valley as the location for future construction. Orange County got the most support in Southern California, where three-fourths of those surveyed said they were in the process of putting together new industrial projects.

"Port of L.A. sets U.S. record for shipping export containers"- LA Times

Los Angeles Works — Wed, 18 Jan 2012 12:00:AM PST

Port of L.A. sets U.S. record for shipping export containers

The nation's busiest seaport processed 2.11 million outgoing cargo shipments in 2011, becoming the first U.S. harbor to break the 2 million mark.

By Ronald D. White, Los Angeles Times

January 18, 2012

The Port of Los Angeles set a new standard for exports in 2011, becoming the first harbor in the nation to ship more than 2 million containers carrying U.S. goods to customers overseas, according to year-end statistics released by port officials.

The nation's busiest seaport moved 176,531 export containers in December, enough to kick up its 2011 total to 2.11 million containers. That broke the port's former record of 1.84 million export containers set in 2010.

No other U.S. harbor has moved more export containers in one year. The closest competitors are second-ranked Long Beach, which moved 1.69 million export containers in 2008 and third-ranked New York-New Jersey, which moved 1.62 million export containers that same year.

The surge in exports through the nation's busiest trade gateway helped propel Los Angeles above its 2010 cargo totals. In 2011, Los Angeles handled 7.94 million cargo containers, compared with 7.83 million in 2010. Together, Los Angeles and Long Beach moved about 14 million containers in 2011, down slightly from the 14.1 million recorded in 2010.

"We're fortunate to have stronger year-over-year results in 2011," Los Angeles Mayor Antonio Villaraigosa said Tuesday in a statement, "but we are not resting on our laurels as the nation's premier trade gateway. That's why we are investing $1.5 billion in capital improvements over the next five years."

Geraldine Knatz, executive director for the Port of Los Angeles, said the exports total was "an example of how our port is prepared to handle a shift in global trade patterns."

The Port of Los Angeles has been encouraging U.S. businesses to export more of their products through its TradeConnect program, which tries to line them up with potential overseas customers. Its cargo numbers were also helped in 2011 by the move of California United Terminals from the Port of Long Beach to the Port of Los Angeles.

The export record might be difficult to match in 2012, with most maritime trade prognosticators expecting relatively modest growth in world trade over the coming year.

London-based Drewry Shipping Consultants is among the most optimistic, predicting a 6.5% gain in global cargo container traffic in 2012. Paris-based AXS Marine expects trade between the Far East and the U.S. to grow 4.6% this year, with Far East to Europe trade growing just 1.5% because of the European debt crisis.

Others are expecting moderate growth in U.S. imports from Asia in 2012.

"Forecasts indicate that retailers will be stocking up this spring in anticipation of a moderate recovery as the year progresses," said Jonathan Gold, vice president for supply chain and customs policy for the National Retail Federation.

Ben Hackett, founder of Hackett Associates, which tracks imports through the nation's busiest ports for the National Retail Federation, said that "indicators suggest that we are not heading for another recession, but rather for a sustained level of low growth."

"Factory production jumps 0.9% in December from November"- LA Times

Los Angeles Works — Wed, 18 Jan 2012 12:00:AM PST

Factory production jumps 0.9% in December from November

Associated Press

2:16 PM PST, January 18, 2012

Washington

U.S. factories are roaring back from the depths of the recession, cranking out more machinery, vehicles and energy.

Factory production has surged 15% above its lows of 21/2 years ago and is helping drive the economy's recovery.

A jump in manufacturing output last month coincided with other data suggesting that the economy began 2012 with renewed vigor. Wholesale prices are tame. Demand for U.S. Treasury debt should help keep borrowing costs low. Even home builders are more optimistic.

Signs "that manufacturing in the U.S. is gaining global market share appears to be growing, and this could be an important dynamic supporting growth in 2012," said John Ryding of RDQ Economics.

Manufacturing rose 0.9% in December from November, the Federal Reserve said Wednesday. It was the biggest gain since December 2010.

Overall output at the nation's factories, mines and utilities grew 0.4%. Warm weather damped demand for energy produced by utilities.

Over the last year factory output has risen 3.7%. Factories benefited in particular in the second half of 2011 from several trends: People bought more cars. Businesses spent more on industrial machinery and computers before a tax incentive expired. And companies restocked their supplies after cutting them last summer.

Last year's growth has also fueled more hiring. Factories added 23,000 jobs in December, the most since July. That helped reduce the unemployment rate to 8.5%, the lowest level in nearly three years.

Another report, from the Labor Department, found that the producer price index declined 0.1% in December. The index measures price changes before they reach consumers.

In contrast, "core" wholesale prices, which exclude food and energy costs, rose 0.3% in December. But economists downplayed the increase, citing temporary factors that had pushed auto prices down in October and November.

Overall, wholesale prices are trending lower. They rose 4.8% in December compared with the same month a year earlier, reflecting in part higher oil and other commodity prices. Even so, that was the slowest year-over-year increase since January.

"Value of construction projects rises"- Daily News

Los Angeles Works — Fri, 13 Jan 2012 12:00:AM PST

Value of construction projects rises

By Gregory J. Wilcox, Staff Writer

Posted: 01/13/2012 07:40:46 PM PST

Updated: 01/13/2012 07:43:04 PM PST

Led by a surge in apartment building, the value of construction projects in Los Angeles is on track for its third consecutive yearly increase, the city said Friday.

From July through December - the first half of the 2011-12 fiscal year - permits have been filed for projects valued at $1.51 billion, up 6 percent from $1.42 billion a year earlier, said the city's Building and Safety Department.

Bud Ovrom, the department's general manager, said construction activity is on track to post a full-year valuation total of $3.5 billion to $3.6 billion.

In the last full fiscal year, project values totaled $3.3 billion.

Even with the recent surge in building, the value of current projects would still be well under the record of $5.3 billion set in the 2005-06 fiscal year when the housing and construction sectors were booming. The valuation total sank to $2.5 billion in the 2008-09 fiscal year.

"Three consecutive years of ... growth is good if you are a glass half-full person. If you are a glass half-empty person you see us still under where we were at the height of the boom," Ovrom said.

Robert Kleinhenz, chief economist at the Kyser Center for Economic Research in Los Angeles, said the past six months brought some good news to the city's building sector.

"Coming out of 2008, there was only one direction we should be heading and that was up as the economy stabilized and improved. We're getting improvement in that segment of the economy so it's encouraging," he said. "It's definitely welcome news."

And he agrees with Ovrom's perspective that the value of construction projects is approaching a respectable level.

"Four billion dollars is close to healthy new construction," Ovrom said.

Residential construction is driving the increase.

During the past six months, builders pulled permits for housing projects valued at $909.4 million, up 21 percent from $750.2 million a year earlier.

Ovrom said that residential rental apartment construction soared 44 percent to 3,599 new housing starts in the past six months.

Holly Schroeder, CEO of the Los Angeles/Ventura Chapter of the Building Industry Association of Southern California, said the first half of the city's fiscal year is encouraging.

"We're seeing more signs of good things. The apartment sector is definitely leading because the institutional investor money is still trending toward rental construction," she said.

"It's obviously great to see the increase but we're coming off such really dismal numbers for the past few years I don't think we're out of the woods yet."

Challenges remain, too.

"It's still really difficult to get mortgage financing to buy a home but it's not impossible. You've got to work for it," Schroeder said.

"And it's difficult for builders to get construction (loans) and that's really hurting the industry at this point."

"Automakers plan to hire thousands of workers this year"- LA Times

Los Angeles Works — Thu, 12 Jan 2012 12:00:AM PST

Automakers plan to hire thousands of workers this year

The hiring binge comes as sales continue to rebound and firms increase the output of U.S. factories to avoid currency troubles overseas.

By Jerry Hirsch, Los Angeles Times

10:10 PM PST, January 12, 2012

The U.S. auto industry plans to add thousands of jobs this year as sales continue to rebound and automakers look to produce more cars in the United States to sidestep currency woes overseas.

The growth in domestic manufacturing is coming as U.S. auto sales are recovering from historic lows during the recession.

"The yen, the euro, all the currencies that affect the manufacturers' balance sheets, except for the dollar, are in flux. So the only way to hedge is to build where you sell," said Rebecca Lindland, an analyst with IHS Automotive.

On Thursday, German automakers joined the U.S. hiring binge.

The commercial truck division of Mercedes-Benz and the factory that builds BMW sport utility vehicles said they would add a total of about 1,500 jobs at plants in the Carolinas this year.

They joined domestic automakers Ford Motor Co. and Chrysler Group, both of which said in the last two weeks that they would add close to 6,000 factory workers altogether at plants in Michigan, Kentucky and Illinois.

Electric car makers Tesla Motors Inc. and Coda Automotive Inc. also plan to ramp up employment in California as they bring vehicles to the market this year.

And Japanese automakers also are adding workers as they shift more production to the U.S. in a bid to avoid profit erosion caused by the soaring value of the yen.

They all are bracing for more sales this year. Automakers sold 12.8 million vehicles last year, a 10.3% increase from 2010 and the most since 2008. They expect sales to reach about 13.8million this year.

The growth is pushing the need for more workers. Total payrolls at U.S. auto plants could reach 650,000 employees this year, a 10% gain, according to the Center for Automotive Research in Ann Arbor, Mich.

Some jobs will be at a lower wage — about $15 to $16 an hour — than the base wage of about $28 to $29 earned by current workers because of recent labor agreements. Each company with a labor contract will determine how many of the hires are recalled workers and how many are new hires.

As recently as a decade ago, the industry employed about 1 million workers. It then fell into a steady decline that included layoffs of 200,000 workers during the recession. At the low, about 550,000 workers were employed in auto manufacturing.

Hiring started to climb back slowly over the last two years. Now, the research center forecasts employment will top 750,000 in 2015.

One factor is that overseas automakers plan to add factories in the U.S., Lindland said.

Audi executives said they will build a U.S. factory, possibly at the Volkswagen complex in Chattanooga, Tenn.

Nissan also is adding about 1,000 workers in Tennessee as it gears up for production of the Leaf electric vehicle and its batteries, as well as new Pathfinder and Infiniti SUVs.

South Korean automotive siblings Hyundai and Kia also are said to be considering a major expansion in the South.

Automotive employment growth represents a small but important segment of the U.S. economy, said Beth Ann Bovino, senior economist at Standard & Poor's.

"Putting money in people's pockets is good," Bovino said. The comparatively high blue-collar wages offered in the auto factories allow "people to spend on high-ticket items" and generate more economic activity, she said.

But the small size of the auto manufacturing sector — and even manufacturing overall — dampens the effect, she said.

"Manufacturing has shrunk so much. It used to be above 30% of total employment in the mid-1960s, and it has dropped to about 8%," she said.

Service jobs, by comparison, make up about 70% of nonfarm payroll employment.

Still, the strong auto industry is bolstering manufacturing and signaling that consumers are doing some buying and that businesses are moving to replace equipment.

Daimler Trucks North America, part of Mercedes-Benz, said it will hire 1,100 workers this year as it adds a second shift and ramps up production at its Freightliner truck factory in Cleveland, N.C. Daimler said it will fill most of its positions by recalling workers who were laid off in 2009.

Daimler said is has a six-month back-order list for the Freightliner Cascadia model used by long-haul truckers. Daimler will hire 100 employees at its nearby components and logistics plant in Gastonia, N.C., to support the expansion.

BMW said it will hire 300 workers this year at its Spartanburg, S.C., factory, where it builds sport utility vehicles, and will invest $900 million in the plant by 2014.

The automaker is expanding production at the factory to meet global demand for its X series of SUVs, said Frank-Peter Arndt, BMW's production chief. It exports the vehicles to 130 markets around the world.

The hiring plans by the German automakers follow similar announcements by domestic manufacturers.

Ford said at the North American International Auto Show in Detroit this week that it would add about 5,500 jobs this year, largely at factories in Wayne, Mich.; Louisville, Ky., and Chicago.

The move fulfills almost half of the commitment Ford made to the United Auto Workers union in last year's contract agreement to add 12,000 jobs at U.S. plants by 2015.

Also, Chrysler said it will add 1,250 jobs at factories in Detroit where it builds the Jeep Grand Cherokee and will launch a new version of the SRT Viper sports car.

"Retail sales inched up 0.1% in December, ending a record year"- LA Times

Los Angeles Works — Thu, 12 Jan 2012 12:00:AM PST

Retail sales inched up 0.1% in December, ending a record year

Retail sales totaled a record $4.7 trillion for all of 2011, a gain of nearly 8% over 2010 — the largest percentage increase since 1999.

Associated Press

1:51 PM PST, January 12, 2012

America's retailers enjoyed a record 2011 and the first months ever in which sales topped $400 billion. But the final month of the year was a dud.

Sales eked out a 0.1% increase in December to a seasonally adjusted $400.6 billion.

It was the second straight month that sales topped $400 billion. The government revised November sales to show a 0.4% gain, twice the original estimate.

December's increase, though, was the weakest in seven months. Excluding volatile auto purchases, overall sales fell 0.2%. It was the first such drop since May 2010.

But analysts said they still expect consumers to help the economy strengthen further, especially because businesses have stepped up hiring. More jobs mean more people with money to spend.

"Although consumer spending is not particularly robust, households do continue to spend and provide moderate support for the overall economy," said Steven Wood, chief economist at Insight Economics.

For all of 2011, sales totaled a record $4.7 trillion. That was a gain of nearly 8% over 2010 — the largest percentage increase since 1999.

Steady sales gains have fueled a 20% surge from the low during the Great Recession. Monthly sales are even 6% above their pre-recession high. The figures confirm evidence that the economy was strengthening as 2011 ended.

Part of the reason for December's weak showing was lower gasoline prices, which reduced sales at gas stations. Excluding gas stations, overall retail sales would have risen 0.3% in December.

Another factor was heavy discounting during the holiday shopping season. Many retailers said they had to cut prices in December to attract shoppers.

The sluggish retail-sales data followed a report this week that consumers raised their borrowing in November by the most in a decade. Many consumers might have charged more spending to their credit cards because their pay has stagnated. The savings rate has also declined.

"Commercial shoots on streets of L.A. reach record level"- LA Times

Los Angeles Works — Tue, 10 Jan 2012 12:00:AM PST

Commercial shoots on streets of L.A. reach record level

January 10, 2012 | 2:48pm

On a sunny Monday afternoon near the Port of Los Angeles, a man straddling a mechanic’s red toolbox is wheeling down a street, struggling to maintain his balance as he turns a corner.

A camera crew is filming the action as part of a shoot for oil change chain Jiffy Lube, one of at least a dozen commercials shot this week across Los Angeles County. Others include spots in downtown L.A. for Yoplait Yogurt and Jeep Cherokee, as well as North Hollywood for JC Penney.

Commercial shoots are surging in L.A., fueled by several factors, including an economic recovery, ads for the Super Bowl, the summer Olympics and political campaigns, and even a tax break offered by the city.

Location shoots for commercials in the L.A. area rose 8% in the fourth quarter compared with a year earlier and climbed to the highest level on record last year -- generating 7,079 production days, according to FilmL.A. Inc, which handles film permits for the city and county of Los Angeles.

While they don’t get as much attention as movies and television shows, commercials have become an increasingly important contributor to L.A.’s entertainment economy. In fact, since 2009, commercials have accounted for more location filming than feature films, which have been harder hit by runaway production.

Although movies and TV shows employ larger crews, commercials still pack an economic punch: filming a 30-second spot for broadcast TV can employ 40 crew members and carry a budget of $100,000 to $400,000.

Commercial production is up nationwide in part because the overall economy is improving, industry analysts say. The recession caused a sharp falloff in advertising spending in 2008 and 2009, but big brands including auto companies such as Chrysler to consumer electronic firms such as Apple have been setting aside more advertising dollars to market their products as consumer spending grows.

“There are several things coming into play but one of them definitely is the rebounding economy,’’ said Matt Miller, president of the Assn. of Independent Commercial Producers, a trade group with 178 members in Southern California. “Overall, it’s been a pretty good year throughout the industry.”

Sponsors of the 2012 Olympic Games in London already have begun stockpiling commercials as part of their marketing campaigns, generating more business for local producers in the fourth quarter, who also benefited from Super Bowl ads, Miller said. The National Football League recently signed record-setting television rights deals with Fox, NBC and CBS, which are eager to capitalize on huge ratings for the games.

Another factor behind the commercial production upswing is the proliferation of digital media, which has created more demand for ads that can be run across multiple platforms -- on websites such as Hulu, iPads and smartphones.

“A lot of brands are trying any way they can to capture potential customers,’’ said Jerry Solomon, managing partner for Epoch Films, which has produced commercials for AT&T, Audi and Apple. “It’s not just TV anymore.”

Production companies that shoot commercials in Los Angeles also got a boost last year after the City Council reduced the taxes they pay for doing business in the city. L.A. raised the threshold at which producers pay business taxes, lowering their tax burden by as much as $3,400 annually.

Despite the city’s tax break, producers say they face growing pressure to consider shooting spots in other locales that offer more favorable tax credits because California’s film tax credit excludes commercials. L.A.’s share of overall commercial production worldwide was 51% in 2010, down from 54% in 2007, reflecting growing competition from states such as New York and Illinois, according to the Assn. of Independent Commercial Producers. During the same period, New York’s market share has grown to 15% from 12%.

And while local producers may be busier, they’re not necessarily making more money since they face more pressure to cut budgets and turn around projects more quickly.

“We use to get two days to shoot one 30-second spot. Now, we’re shooting one 30-second spot in a day,’’ said Rick Fishbein, special projects producer for Santa Monica-based Green Dot Films. “We’re working harder to reach the same bottom line that we had a decade ago.”

"U.S. economy adds 200,000 new jobs in December"- LA Times

Los Angeles Works — Fri, 06 Jan 2012 12:00:AM PST

U.S. economy adds 200,000 new jobs in December

By Don Lee

6:08 AM PST, January 6, 2012

Washington

The U.S. unemployment rate dropped further in December as employers added a healthy batch of new jobs, closing out a tumultuous year with some hopeful signs for the long wobbly economy and sluggish labor market.

The Labor Department said Friday that the jobless rate edged down to 8.5% in December from a revised 8.7% in November. The unemployment rate has fallen steadily since August, when the rate was 9.1%, based on the revisions.

Last month, the economy produced 200,000 new net jobs. That’s an acceleration from 100,000 jobs added in November and an average growth of 137,000 jobs a month for all of 2011. While a good chunk of last month’s new hires were seasonally related, in warehousing and retail, manufacturing and healthcare employers also reported solid job gains.

The latest jobs report adds to the body of evidence that the economy perked up in the fourth quarter, thanks to strong manufacturing and business investments, as well as resilient consumer spending.

But it remains to be seen whether the recent momentum can be sustained. Many analysts see only modest job and economic growth this year, concerned about American consumers’ debts and ability to spend vigorously, and headwinds facing the economy such as a recession in Europe and the U.S. budget crunch.

Last year job growth accelerated early in the year but fizzled in spring when nasty domestic politics and events overseas – the Arab spring, Europe’s debt woes and Japan’s double whammy of quake and tsunami – took the wind out of the economic sails.

For all of last year, the economy created about 1.6 million net new jobs, up from 940,000 added to payrolls in 2010. Still, total U.S. payrolls are down about 6.1 million from December 2007 at the start of the great recession. And last month, more than 13 million people were counted as jobless, and another 8.1 million part-time workers said they could not get full-time jobs.

"Port of LA Shows You Can Be Pro-Jobs and Pro-Environment"- Huffington Post

Los Angeles Works — Fri, 06 Jan 2012 12:00:AM PST

Port of LA Shows You Can Be Pro-Jobs and Pro-Environment

Posted: 1/6/12 10:04 AM ET

I recently returned from a trade mission to China, Japan, and South Korea. Of the many conversations I had with business leaders and government officials, one thing was clear: Los Angeles is the premier destination for goods entering the United States from the Pacific Rim.

But the clock is ticking.

We know the folks down in Panama are working hard to widen their canal, and when the widening is done, shippers will have more choice about the destination for their cargo.

We in Los Angeles are making sure that they continue to choose Los Angeles. Our port is a vital economic engine for the region -- additional cargo means additional jobs. So make no mistake: we need to grow our port, especially now.

Since I entered the Mayor's Office in 2005, I have been convinced that the only way to grow the port and create jobs was to go green. January 1, 2012 marked a major milestone of the Clean Truck Program. The program is an integral part of the 2006 Clean Air Action Plan, a sweeping plan aimed at significantly reducing the health risks posed by air pollution from port-related ships, trains, trucks, terminal equipment, and harbor craft.

The trucks at the Port now meet the strictest clean air and safety standards of any major port in the world.

By progressively banning older model trucks, we have slashed the harmful pollutants that cause smog and asthma. Originally, we aimed to cut the port's harmful emissions by half between 2005 and 2010.

We are pleased to report that the plan and the program have exceeded our expectations by reducing sulfur oxide emissions by 76%, diesel particulate matter by 69%, and nitrogen oxides by 50%. Emissions from trucks alone have been reduced by over 80%.

The operation of 9,800 Clean Trucks reduces more than 40 tons of diesel particulate matter -- that's like eliminating the pollution from 300,000 cars per year.

We have truly made a difference and cleaned up the air in this region.

We did this because while the local communities benefited from the Port's economic activity, they also suffered from its pollution.

Cleaning up the air was the right thing to do, but it was also the economically savvy thing to do, too. We've shown that you can add infrastructure and reduce emissions at the same time.

We've put shovels in the ground at the port because we passed six major Environmental Impact Reports since I became mayor. We never could have accomplished this without the Clean Air Action Plan. We've worked together with industry and private partners to ensure that we are growing the Port in an environmentally and economically sustainable manner, and we have laid out a roadmap for sustainable growth.

Over the next five years, we will invest $1.5 billion to provide superior shipping and logistics infrastructure to attract first-class business tenants to the Port.

Ensuring our growth is sustainable is a part of everything we do. We are investing over $100 million in Alternative Maritime Power (AMP), which will allow container and cruise ships to plug into the grid rather than burning dirty diesel generating fuel when berthed at the Port.

We are deepening the port's main channel, guaranteeing 53-foot-deep access, and we are making sure that when goods reach Los Angeles, they will get to market quickly and efficiently.

In most cases we're still going to be the fastest way between point A and point B. We still have the best harbor, the most state-of-the-art facilities, the best rail connectivity, and the most warehouse space near the Port of any of our competitors.

By growing sustainably, we're keeping the Port of LA the number one trade gateway, and truly America's port.

"Retail sales solid in final holiday stretch, up 3.4% in December"- LA Times

Los Angeles Works — Thu, 05 Jan 2012 12:00:AM PST

Retail sales solid in final holiday stretch, up 3.4% in December

By Andrea Chang

7:48 AM PST, January 5, 2012

Wrapping up a good but not outstanding holiday season, the nation’s retailers reported a 3.4% year-over-year December sales increase, roughly in line with expectations.

Nearly two-thirds of retailers beat expectations, according to the tally of 22 major chains by Thomson Reuters released Thursday.

Among the month’s best performers were teen retail chain Zumiez Inc., which reported a sales bump of 10%, off-price retailer Ross Stores Inc., where sales rose 9%, and upscale department store Nordstrom Inc., up 8.7%. TJX Co., operator of TJ Maxx and Marshalls, also did well, with sales increasing 8%.

The last two months of the year are the most important time for retailers, with some making as much as 40% of their annual revenue during that time.

For the combined November-December period in 2011, retailers posted a 3.4% year-over-year increase, said Ken Perkins, president of research firm Retail Metrics Inc. That was down from the 4% year-over-year growth the industry reported after the 2010 holiday season, he said.

“Generally speaking, holiday 2011 has to be considered a modest success given the soft economic backdrop coupled with the highly promotional environment retailers are operating under,” Perkins said. “Consumers were the beneficiaries of great deals while retailers generated solid top line increases, albeit at the expense of margin.”

December’s weakest results came from San Francisco apparel giant Gap Inc., which reported a sales decline of 4%, missing expectations for a 1.3% drop. Teen chain Wet Seal Inc. saw sales decrease 3.7%.

Results are based on sales at stores open at least a year, known as same-store sales and considered an important measure of a retailer’s health because it excludes the effect of store openings and closings.

Retailers now are settling into the usual post-holidays lull, with many lowering prices even further to clear inventory and prepare for the next spike in consumer spending, typically before Easter.

“I’m pretty much buckling down the next couple of months, just getting over Christmas,” said Sandy Cunningham, 44, a healthcare consultant who was at Los Cerritos Center on Wednesday looking for a duffel bag for an upcoming family trip. “Like I just saw a shirt I really, really liked at Nordstrom but I didn’t buy it. I was smart.”

"Commercials Boosted L.A.'s Film Industry Last Year"- LA Business Journal

Los Angeles Works — Tue, 03 Jan 2012 12:00:AM PST

Commercials Boosted L.A.'s Film Industry Last Year

By Jonathan Polakoff Tuesday, January 3, 2012

On-location filming in Los Angeles dropped 2.6 percent in the fourth quarter, but still managed a 4.4 percent increase for the year, FilmL.A. Inc. announced Tuesday.

The annual increase was partially driven by commercial production, which rose 4.4 percent last year to a record 7,079 permitted production days, according to the Los Angeles nonprofit, which handles and tracks permitting in the city and unincorporated county neighborhoods.

Other categories of filming did not do as well.

Television, long considered the mainstay of local on-location shooting, dropped 10.6 percent in the fourth quarter and 2.7 percent for the year. The decline was partially attributed to 10 one-hour TV dramas that shot in other states, most notably New York, which offers generous production subsidies.

Features plummeted 26.4 percent in the fourth quarter but posted an increase of 5.7 percent for the year. FilmL.A. credited the modest annual growth to the extension of the state’s $100 million in production incentives.

Smaller projects, such as student films, grew 12.6 percent for the year.

Despite the overall growth in production days last year, FilmL.A. President Paul Audley stressed that more should be done to promote local filming.

“We must fight to keep and attract more feature films and high value television series to keep our vendor companies and crews working and our region’s economy afloat,” he said, in the report.

"AUTO INDUSTRY: Sales forecast bodes well for recovery and for the broader economy"- Daily News

Los Angeles Works — Tue, 03 Jan 2012 12:00:AM PST

AUTO INDUSTRY: Sales forecast bodes well for recovery and for the broader economy

By Tom Krisher, Associated Press

Posted: 01/03/2012 12:00:00 AM PST

DETROIT - After hitting a 30-year low in 2009, U.S. auto sales are poised for a second straight year of growth in 2012 - the result of easier credit, low interest rates and pent-up demand for cars and trucks created by the Great Recession.

The sales forecast bodes well for the industry's continued recovery and for the broader American economy.

Just two years ago, Detroit automakers were in peril. Car sales plunged as unemployment soared, and loans became harder to get. Chrysler and General Motors filed for bankruptcy protection. Ford avoided bankruptcy only by borrowing billions.

Now credit is more available, interest rates are low and Americans need to replace old cars and trucks they kept during and after the downturn. Millions of drivers in their teens and 20s are expected to buy vehicles, too. That could mean more jobs, more factory shifts and overall growth.

Vince Powell, a retiree from Winfield, Pa., recently traded in his wife's 7-year-old Chrysler 300 luxury sedan for a 2011 model. The old car had 145,000 miles on it, but it was the deal he got that most attracted him: a low interest rate (2.7 percent per year), a six-year loan term and a big discount off the $31,900 sticker price.

"I'm getting a $300 per month payment," he said just before closing the sale at Beaver Motors in Beaver Springs, Pa., near Harrisburg. "I've never had a new car for 300 bucks a month."

In their effort to survive, all three automakers downsized and positioned themselves to turn profits - even if sales remained depressed. Now that sales are rising, the outlook has brightened considerably.

Automakers report U.S. sales for 2011 on Wednesday.

When final figures are calculated, sales of new cars and trucks are expected to reach 12.7 million, up from 11.5 million in 2010 and 10.4 million in 2009, the worst year since 1982.

In 2012, they could climb as high as 13.8 million, close to what experts consider a healthy market - around 14 million.

December sales could reach an annual rate of 13.4 million, which would make it the second-strongest month of the year. Only November was better. Auto website Edmunds.com forecasts a 37 percent rise in sales at Chrysler Group LLC in December, thanks to new and revamped products such as the Jeep Grand Cherokee SUV and the Chrysler 200 midsize sedan.

Carmakers have announced plans to crank up factories and add thousands of jobs. Last January, Ford said it would hire 7,000 workers over the next two years. During the summer, GM said it would add 2,500 at the Detroit factory that makes the Chevrolet Volt electric car. Volkswagen hired 2,000 for a new plant in Tennessee, and Honda added 1,000 in Indiana. The industry will add 167,000 jobs by 2015, a 28 percent increase over current levels, predicts The Center for Automotive Research in Ann Arbor, Mich.

During the summer, the auto industry was adding jobs at a faster pace than airplane manufacturers, shipbuilders, health care providers and the federal government. It kept adding jobs even when the national unemployment rate rose above 9percent, Standard & Poor's downgraded U.S. debt for the first time and the stock market tumbled.

Government estimates show Americans spent roughly $40 billion more on new cars and trucks in 2011 than in 2009.

Based on annualized figures from the first quarter of 2011, new-car spending totaled $206 billion, or 1.3 percent of the gross domestic product, Commerce Department data shows.

That compares with $166 billion in 2009, about 1.2 percent of the country's economy.

"Spending by visitors to U.S. on record pace"- LA Times

Los Angeles Works — Wed, 28 Dec 2011 12:00:AM PST

Spending by visitors to U.S. on record pace

The U.S. Office of Travel and Tourism Industries predicts that international tourism spending will surpass $152 billion for 2011, up from the record of $141 billion in 2008.

By Hugo Martín, Los Angeles Times

December 28, 2011

International tourists continue to spend record amounts in the U.S. and are on pace to top the previous annual high mark in tourist expenditures set in 2008, according to new data from the U.S. Office of Travel and Tourism Industries.

A monthly report by the federal agency, which is part of the Commerce Department, said international visitors spent $13.1 billion on travel to the U.S. and tourism-related activities while here in October, a 13% increase over the same month last year.

About $10 billion of that total came from spending on hotels, food, souvenirs and other expenses after visitors arrived in the U.S.

Foreign visitors spent $127 billion in the U.S. in the first 10 months of 2011. Meanwhile, the total spent by Americans traveling abroad reached $91.9 billion in the first 10 months, an 8% increase over the same period in 2010, the agency reported. The result is a balance-of-trade surplus of $35 billion for the U.S.

The agency, which released the report Tuesday, predicted that international tourism spending will surpass $152 billion for 2011, up from the previous record of $141 billion in 2008.

Four countries are expected to account for two-thirds of the projected growth in international visitation to the U.S. over the next five years. About 31% of the growth will come from Canada, 13% from Mexico, 10% from China and 7% from Brazil, the agency said.

The U.S. Travel Assn., the nation's largest travel trade group, recently pushed the federal government to adopt changes to make it easier for international tourists to visit the U.S. The group recommended speeding up the process for getting tourist visas and expanding the program that waives the visa requirement for more countries.

"Research shows that U.S. visa system reform would bring additional international business and leisure travelers to the U.S., creating additional jobs and economic output for our struggling economy," the trade group said in a statement this month.

"Long Beach, L.A. ports tout completion of clean truck program, cleaner air"- Daily News

Los Angeles Works — Tue, 27 Dec 2011 12:00:AM PST

Long Beach, L.A. ports tout completion of clean truck program, cleaner air

Wire Services

Posted: 12/27/2011 07:01:49 PM PST

Updated: 12/27/2011 07:03:46 PM PST

The ports of Los Angeles and Long Beach on Jan. 1 will officially complete an effort to ban all trucks with engine models older than 2007, characterized by local officials as the strictest clean air standard of any major port in the world.

By the new year, a final group of 1,400 older trucks will be replaced with newer models, according to officials at the ports.

The Clean Truck Program was enacted in 2008 to clean the notoriously smoggy air around the two ports, which together handle close to 40 percent of the nation's shipping imports.

The program is part of the larger 2006 San Pedro Bay Clean Air Action Plan, which includes requiring ships to use plug-in electricity when docked at the ports, rather than idling their engines.

The path to completion of the Clean Truck Program was not altogether smooth. A federal appeals court in September threw out a part of the Clean Truck Program that banned independent big-rig drivers, instead requiring them to work for a company. The trucking industry said the requirement would have regulated motor carriers' rates and routes, rather than competition.

"The Port of Los Angeles, along with our industry partners, has made the business of moving cargo cleaner," Port Executive Director Geraldine Knatz said. "The results speak for themselves, and we couldn't be more proud of reaching this milestone."

By the start of the new year, all 11,772 drayage trucks -- the ones that move cargo from ships to locations where long-haul truckers can pick up container cargo -- will meet the new standards.

The transition to younger engine models has reduced truck emissions at the ports by 89 percent since 2008, officials said.

"The Clean Truck Program has shown that you can be green and grow the Port of Los Angeles at the same time," Los Angeles Mayor Antonio Villaraigosa said.

Martin Schlageter, a campaign director with the Coalition for Clean Air, applauded the achievement but said the completion announcement is mostly a formality.

"The goals of the Clean Truck Program have already largely been achieved. We're certainly energized by it and think it's a great achievement of the ports," Schlageter said. "But it's one step in the process. We have a long way to go to get to clean air in our region."

Schlageter said the ports should be trying to work toward newer 2010 truck standards, in addition to increasing the number of trucks at the port that run on alternative fuels. About 7 percent of the cargo moves at the ports are currently made by trucks that run on liquefied or compressed natural gas.

Schlageter said a new terminal at the Port of Long Beach is a good opportunity to try requiring all trucks to run on cleaner fuels that release less sulfur oxide and nitrogen oxide -- the main components of smog -- into the air. "But they haven't yet proposed that," he said.

Port officials said they are also testing the ability of a commercially available zero-emission truck to see if it can handle daily operations at the ports.

"Warner Center blueprint calls for 'cosmopolitan' design"- Daily News

Los Angeles Works — Sun, 25 Dec 2011 12:00:AM PST

Warner Center blueprint calls for 'cosmopolitan' design

By Dakota Smith, Staff Writer

Posted: 12/25/2011 10:09:42 PM PST

Updated: 12/26/2011 12:05:18 PM PST

Warner Center in shadow. (Dean Musgrove/Daily News Staff Photographer)

Warner Center -- a collection of office buildings, indoor malls and low-rise apartment buildings -- is showing its age.

The smoked glass office parks retain a Reagan-era look. Ditto the sprawling parking lots. And the super-blocks along Topanga Canyon Boulevard, created in the '90s to speed up traffic, discourage pedestrian life.

But the city is looking to modernize the Woodland Hills center. A new blueprint released this month seeks "a cosmopolitan, 21st century" look for Warner Center, said Ken Bernstein, principal planner at the city's Planning Department.

Six years in the making, the Warner Center Specific Plan provides guidelines for development through 2035 for the area roughly bounded by Vanowen Street, the Ventura (101) Freeway, De Soto Avenue and Topanga Canyon Boulevard.

The plan would allow 40-story skyscrapers. Small retail shops - where locals could walk to buy basics - would be encouraged, in an area now dominated by national chains and big malls. The long superblocks and six-lane thoroughfares would be "cut up" by adding paseos and crosswalks to create a more intimate feel for pedestrians.

Most dramatically, the plan re-envisions Warner Center as eight districts, including a downtown, a business district, and a residential district, part of an effort to carve out distinct neighborhoods.

Overall, the new plan moves away from the car-oriented regional center that's long defined the San Fernando Valley,according to Michael Woo, a Los Angeles City Planning Commission member and dean of the College of Environmental Design at Cal Poly Pomona.

"There aren't many of these large planning (initiatives) happening in L.A.," Woo said. "It's always good to challenge longstanding assumptions about development."

Warner Center has been eyed as a downtown-like center since the 1970s. But following a commercial boom in the 1980s, residents worried about overdevelopment, prompting the city to slow growth.

The development restrictions resulted in the little-bit-of-everything look seen today: Pratt Whitney's headquarters, a pair of Westfield malls, numerous restaurants, a park.

"Historically, it's always been a suburban model for Warner Center," said Michael Klein, co-chairman of the advisory committee that consulted on the plan.

"We ended up with a regional center that was supposed to be for jobs, but now has some housing and some manufacturing. But there was never the densification because of the suburban approach."

"There's no place to go," gripes Dennis T. DiBiase, who also served on the same committee. "You can walk, but there's no destination."

By encouraging density at Warner Center, the surrounding neighborhoods can stay undeveloped, say backers of the city's plan.

"It's organic," said DiBiase. "The (eight) districts reinforce what's there today and let it grow further."

At the new "Northeast Village District" served by the Canoga and DeSoto Orange Line Stations, planners envision a transit village of multi-family buildings and shops.

High-rise residential towers are eyed in the urban "Uptown District" near Owensmouth Avenue and Vanowen Street. And a new "River District" would connect the Los Angeles River to Warner Center through the establishment of pedestrian paths, bicycle paths, and new streets.

So far the plan, which is expected to come before the City Council this summer, has faced little local opposition. Hundreds of meetings have been held to gather input on the report, which will have its first public hearing on Jan. 9.

Gerald Fecht, president of the Museum of the San Fernando Valley, can list many of the incarnations of the Warner Center site, from farmland for cattle in the 1800s to the site of movie shoots like "National Velvet" in the 1940s.

Told of the planned districts, Fecht briefly wondered whether an agricultural district - a tie to the San Fernando Valley's farming past - could be added. Not realistic, he concluded.

"But I am a big believer of mixed-use," Fecht said. "I think we have to learn to live like Europeans, where you find small shops and residential areas above."

DiBiase's aspirations for Warner Center aren't so dissimilar.

"We want to create a place where you can walk down the street to get a quart of milk," he said.

"Job growth lifts hopes of increase in recovery"- Daily News

Los Angeles Works — Fri, 23 Dec 2011 12:00:AM PST

Job growth lifts hopes of increase in recovery

By Martin Crutsinger, Associated Press

Posted: 12/23/2011 07:36:57 PM PST

Updated: 12/23/2011 07:37:06 PM PST

WASHINGTON -- Consumer spending and incomes barely rose last month.

Business investment has slowed. New-home sales remain dismal.

Despite all that, some economists say a brightening job market is lifting their hopes for 2012. More aggressive hiring, the thinking goes, would fuel enough spending to boost the economy.

Economists point to a big drop reported this week in applications for unemployment benefits, the third straight decline. Applications are now at their lowest level since April 2008. The trend is signaling that layoffs have all but stalled and that employers may be ready to step up hiring.

Unemployment, after hovering around 9 percent for more than two years, dropped in November to 8.6 percent. Employers have added at least 100,000 jobs each month from July through November. It's the best such streak since 2006.

Ian Shepherdson, chief U.S. economist at High Frequency Economics, said he expects the economy to grow at a 2.5 percent annual rate in the current October-December quarter.

That would be the best performance in a year.

More jobs would mean more income. More pay tends to raise consumer spending, which makes up about 70 percent of the economy. Companies then have reason to increase hiring to meet stronger demand.

"We are hopeful that the plunge in jobless claims signals exactly that," Shepherdson said in a research note Friday.

Chris G. Christopher Jr., senior economist at IHS Global Insight, noted that many households are still struggling with slight or no pay increases.

"But gasoline prices have been falling, and that is giving them more money to spend on other items," he said.

The government said Friday that consumer spending rose just 0.1 percent in November, matching the increase in October. Incomes also rose a scant 0.1 percent.

Modest as they were, economists said the figures at least signaled that incomes and spending aren't stalling.

Healthier economic data in recent weeks have helped make the prospect of another U.S. recession seem more remote - as long as Europe's debt crisis doesn't trigger a catastrophe that infects the global economy.

Some economists trimmed their forecasts for growth based on the weaker-than-expected consumer spending data for November. But they said they still expected the economy to expand at a solid annual rate of 3 percent in the current October-December quarter. It would be the best showing since the spring of 2010.

"Wilshire Grand Hotel bids farewell"- LA Times

Los Angeles Works — Thu, 22 Dec 2011 12:00:AM PST

Wilshire Grand Hotel bids farewell

The nearly 60-year-old building in downtown L.A. is being closed to make way for a new 45-story hotel and 65-story office tower set to open in 2015.

By Hugo Martín, Los Angeles Times

5:39 PM PST, December 22, 2011

In its nearly 60-year history in downtown Los Angeles, the Wilshire Grand Hotel has been host to such notable guests as Pope John Paul II and Presidents Eisenhower and Kennedy.

And, with the aging hotel closing to make way for a $1.1-billion tower complex, the final guest to check out will be a longtime fan with little notoriety.

"I cherish the memories I have had here," said Richard Macias, a Los Angeles attorney who has been staying at the hotel for business since the 1960s. Because of his longtime patronage, the hotel is letting him check out late Friday, making him the hotel's last guest.

The 16-story hotel, built in 1952 with a $25-million price tag, will be replaced by a 45-story hotel with 540 rooms and several floors of condominiums. Next door, the complex will feature a 65-story office tower with about 1.1 million square feet of office space, with shops and a public plaza on the ground floor.

Korean Airlines, a subsidiary of the South Korean conglomerate Hanjin Group, owns the 896-room hotel and plans to complete the project by 2015 with its development partner, Thomas Properties Group.

As a final send-off, the hotel held a party for its current and former employees Thursday with live music, free drinks and a buffet of pasta and tacos. In the Pacific Ballroom, dozens of workers hugged and posed for photos while a supervisor passed out the final checks.

"I will miss my co-workers and my bosses the most," Maria Jimenez, a housekeeper with 30 years, said as she entered the party.

The hotel offered laid-off workers severance packages or the right to return to their old position once the new hotel opens.

The hotel at Figueroa Street and Wilshire Boulevard is closing at a time when the hotel industry is beginning to rebound from a steep decline in rates and demand, which were weighed down by the economic downturn in 2009 and 2010.

During the first 10 months of 2011, occupancy rates in the Los Angeles area have jumped 5% compared with the same period in 2010, according to statistics from PKF Consulting, a San Francisco-based consultant to the hospitality industry.

Room rates in Los Angeles have increased to nearly $155 per night, a 6% jump from the same period last year, according to PKF.

For the hotel industry, the increase in rates and demand has resulted in an 11% increase in revenue per available room, according to PKF data.

"There really is no good time to close," said Bruce Baltin, a senior vice president at PKF Consulting. "They may be missing out on some strong occupancy numbers."

And once the new hotel opens in 2015, Baltin estimates it will take the new Wilshire Grand two or three years to climb back to its position as one of the city's most popular hotels.

The hotel owners had previously considered simply renovating the hotel while continuing to book guests, but they found that the 1950s design was so inefficient that it made more sense to replace the aging facility with a modern hotel with more efficient air-conditioning and heating systems, said Marc Loge, a hotel spokesman.

"There was no alternative to do this piecemeal," he said.

The hotel, though not the biggest or oldest in Los Angeles, remains a landmark in the city's history. Then-actor Ronald Reagan was the master of ceremonies in 1952 at the hotel's opening ceremony, which was attended by actresses Celeste Holm and Mary Pickford.

At the opening, it was named the Hotel Statler and was run by Hotel Statler Co. Later, it was renamed the Statler Hilton when it was taken over by Hilton Hotels, and then the Omni before taking on its current name in 1999. Korean Airlines bought the hotel in 1989.

Soon after it opened, the hotel was host to the 1952 Emmy Awards, where Sid Caesar and Imogene Coca took home the top acting awards.

In 1993, television sets and radios were removed from hotel rooms occupied by the jurors in the civil rights trial of officers charged in the beating of motorist Rodney King Jr.

The hotel drew more headlines in 2000 when it became the headquarters hotel for the Democratic National Convention and an animal-rights activist in a pink pig costume dumped four tons of manure on the hotel driveway to protest the treatment of animals.

Macias, who booked a room for Thursday night when he heard the hotel was closing, said he made arrangements to be the last guest before the hotel closes.

When it is gone, he said, he will most miss the workers he has befriended over the years and the escalator that carries guests from 7th Street to the lobby. He recalls his many visits to the hotel fondly but said he will have no problem checking in to the replacement hotel when it opens.

"I would love to stay in the new one when it's built," he said.

"LAX expects holiday rush but crowds likely to be same size as last year's"- Daily News

Los Angeles Works — Wed, 21 Dec 2011 12:00:AM PST

LAX expects holiday rush but crowds likely to be same size as last year's

By City News Service

Posted: 12/21/2011 07:23:09 PM PST

Updated: 12/21/2011 07:24:52 PM PST

Airport officials said Wednesday travel at Los Angeles International Airport over the holidays will remain flat compared with last year.

About 2.9 million passengers are expected to pass through the airport during the 18-day period from Dec. 17 through Jan. 3, the same volume as passed through last year.

Friday and the two days before New Year's Eve are expected to be the busiest travel days.

Airport traffic officers will try to prevent drivers from parking or waiting at terminal curbsides for arriving passengers. They plan to distribute leaflets showing alternate parking options, including eight structures in the central terminal area, a cellphone waiting lot at 96th Street and Vicksburg Ave, and Economy Parking Lot C on 96th Street and Sepulveda Boulevard.

Officials encouraged passengers to arrive at ticketing lobbies at least two hours before their scheduled flights during peak travel hours.

Information about parking, ground transportation and security can be heard on LAX AiRadio AM (530) or online at www.lawa.org/lax.

"California may see record spending by visitors in 2011"- LA Times

Los Angeles Works — Tue, 20 Dec 2011 12:00:AM PST

California may see record spending by visitors in 2011

Domestic and international visitors to California are expected to have spent $104.4 billion by year's end, a 10% increase over last year, according to a consulting firm's forecast.

By Hugo Martín, Los Angeles Times

December 20, 2011

Thanks to a jump in tourism, visitor spending in the Golden State may hit a record this year, with continued growth in 2012.

By the end of the year, domestic and international visitors to California will have spent $104.4 billion, a 10% increase over last year, according to a forecast released Monday by Tourism Economics, a consulting firm in Pennsylvania. The forecast was commissioned by Visit California, the state's tourism board.

Travelers to California spent $95.1 billion in 2010, but the state this year is expected to exceed the $100-billion mark for the first time, thanks to continued growth in domestic travel and a surge in international travel to the state.

The forecast is the latest sign that the tourism industry has rebounded from the recession, said Dan Mishell, director of research for the tourism board. "We are also outpacing the country as a whole."

Mishell said California has bounced back faster than other states because it offers more choices for activities and attractions. California also draws many international visitors who want to experience the state's unique "attitude and lifestyle," he added.

Overall visitation numbers to California are expected to be up 4% in 2011 compared with last year. That includes 6.9% growth in international visitors, including strong growth from Mexico and Canada, and a 9% increase in overseas visitors, particularly from such countries as China, France and Australia, according to the report.

Overseas visitors are valued in the tourism industry because they typically stay longer and spend more money than domestic visitors.

The economic forecast predicts visitor spending will continue to grow, reaching $110 billion in 2012 and $115 billion in 2013. Still, the report warned that the economic future of the travel and tourism industry remains cloudy.

"The low level of confidence, the loss of wealth due to the stock market declines and the high degree of uncertainty suggest that the near-term outlook for consumer spending in the U.S. remains subdued," the report said.

The report also suggested that California has been able to take advantage of its geographic location to draw high-spending visitors from Asia, especially China and South Korea.

The state's travel-related employment in 2011 is expected to reach 890,000 jobs, or about 4% of total employment, the report said.

"California's jobless rate falls for fourth month in a row"- LA Times

Los Angeles Works — Sat, 17 Dec 2011 12:00:AM PST

California's jobless rate falls for fourth month in a row

The state unemployment rate declines to 11.3% in November, a sign that the labor market is slowly recovering.

By Marc Lifsher, Los Angeles Times

December 17, 2011

Reporting from Sacramento

California's unemployment rate dropped in November to 11.3%, the fourth straight month of decline and a sign that the state's labor market continues its slow recovery.

November's jobless rate fell sharply from the 11.7% rate posted in October, according to data released Friday by the Employment Development Department, even though California employers added a modest 6,600 workers to their payrolls last month.

Analysts said a sharp upward revision in the number of payroll jobs added in October helped. So did a rise in the number of people who reentered the labor force as owners of small businesses or as independent contractors; those workers are reflected in a separate, federal government survey of households.

California employers have added 211,400 workers to their staffs this year. Analysts said that's a respectable figure, but the state has a long way to go to make up the 1.3 million jobs that vanished during the economic downturn.

California's jobless rate is still well above the national rate of 8.6%, and more than 2 million Golden State workers remain unemployed.

"We still have tons of people not able to find work," said Kevin Klowden, director of the California Center at the Milken Institute, a Santa Monica think tank. Unemployment will likely continue to come down next year, but "the issue is how quickly it will happen."

Others found more reason for cheer after analyzing data from the state's household survey.

It showed that California's labor force increased by 116,000 workers in November compared with October. That's a sign that unemployed workers who might have given up looking for jobs returned to the job hunt or found jobs.

"Companies are still hesitant to add to their payroll employment by hiring people full time or part time," said Esmael Adibi, an economist at Chapman University in Orange. But more people are launching small businesses and earning a living as self-employed contractors and consultants, he explained.

"Overall, it's not a bad report, not when you're looking at the civilian employment," Adibi said.

The unemployment rate has dropped sharply throughout the region over the last year. Los Angeles County's rate of 11.9% last month dropped from 13% in November 2010; Riverside-San Bernardino counties' rate fell to 12.5% from 14.5%; Orange County's rate declined to 8.1% from 9.4%; and Ventura County's rate fell to 9.5% from 10.9%.

Job growth in Los Angeles County has been slow, however, with only 10,400 new jobs created since November 2010. Jobs in education and health services grew the most with 9,800 jobs added in the year, while information jobs rose by 6,600. Motion picture and sound recording accounted for 2,700 of those information slots.

California's recovery continues to be "a tale of two economies — by geography and by industry," said Stephen Levy, director and chief economist for the Center for the Continuing Study of the California Economy.

The most significant job growth is on the urban coast and in technology, trade and tourism, he said, led by the San Jose and San Diego metropolitan areas and the city of San Francisco.

"These areas are seeing a flurry of start-ups, IPOs coming to market, expanding exports and a rising level of optimism about the future," Levy said.

Additionally, faint signs of job expansions are emerging in such hard-hit areas as Sacramento, the East Bay of the San Francisco Bay Area, the Inland Empire and some Central Valley counties, Levy said.

Levy's guarded optimism is shared by Donald Whatley of Torrance, a furniture manufacturing production manager laid off in the spring. Whatley, 54, said he feels that the job climate is getting better, even though he's yet to be rehired.

"Just getting in the door is my problem," he said. "But I've seen the number of calls [from potential employers] turn around lately and, hopefully, something will turn up."

But the recent, more upbeat economic indicators could decline early next year if a divided Congress doesn't renew federal unemployment insurance benefits, the Obama administration and advocates for the unemployed have warned.

The Department of Labor predicts that 230,000 out-of-work Californians would lose their benefits of a maximum of $450 a week by the end of January and 600,000 by the close of March if Congress takes no action. Unemployment insurance payments are a major stimulus for California's recovering economy, experts say.

Bonnie Ornitz, an out-of-work computer systems administrator from Granada Hills, worried that she could be forced to sell her house and move to another state with a lower cost of living if her unemployment benefits are cut off.

"I'll be living entirely out of savings," Ornitz said, and "my medical [insurance] payments will be going sky high."

"Jobless rate dips in state, L.A. County"- Daily News

Los Angeles Works — Sat, 17 Dec 2011 12:00:AM PST

Jobless rate dips in state, L.A. County

By Gregory J. Wilcox, Daily News Staff Writer

Posted: 12/17/2011 01:00:00 AM PST

Unemployment fell in both Los Angeles County and across California in November even though job growth remained weak, the state said Friday.

Economists said it was a good report and suggested momentum is building.

Last month the state's jobless rate fell to 11.3 percent, down from 12.5 percent a year ago, the state Employment Development Department said. It was the lowest rate since May 2009. It was 11.7 percent in October.

The county's rate fell to 11.9 percent, from 13 percent a year earlier. It was 12.2 percent in October.

Steven Levy, director and senior economist at the Center for the Continuing Study of the California Economy, said there is some good news in the numbers.

"I think the data clarifies that the recession was caused by high exposure to construction and the state's key economic base - tech, trade, tourism and exports - walked through the recession," he said.

"The base wasn't harmed like it was in the 1990s when we lost permanent aerospace jobs."

The state added 6,600 jobs over the month and 211,400 since the first of the year. Levy noted that California has added about a quarter million jobs in the past 12 months, the most since 2006.

He also said the state's current job growth rate of 1.7 percent is outpacing the nation's rate of 1.2 percent.

"But we have a long way to go to catch up with the huge losses in construction," Levy said.

From October through November nine categories added jobs at the state level -- mining and logging; trade, transportation and utilities; information; financial activities; educational and health services; leisure and hospitality; other services; and government.

The trade sector posted the largest gain -- 18,000 jobs.

But three categories -- construction, manufacturing and professional and business services -- lost 28,000 jobs over the month.

At the county level 10,400 jobs were added between October and November as nine sectors expanded. The most, 14,000, came in trade, transportation and utilities.

Five sectors lost jobs over the month, with the most, 4,400, in professional and business services.

Another encouraging sign is that the state's labor force increased in November and the jobless rate still came down.

"The size of the labor force also increased by 52,000 in November, indicating that the state's workers are developing a renewed confidence in the job market," Beacon Economics wrote in its monthly report.

It also noted that most sectors are now growing, albeit it at a slow pace.

Beacon noted that the Inland Empire, one of the areas hardest hit by the recession, now appears on the road to recovery.

"This means the unemployment rate is genuinely improving as a result of real improvements in the economy -- something that bodes well for future conditions," Beacon said.

The unemployed could face another hit come Jan. 1 if jobless benefits aren't extended.

President Barack Obama wants to leave in place the current maximum of 99 weeks of benefits for the long-term unemployed. A payroll tax cut bill approved by the House reduces that total by 20 weeks, which the administration says would cut off 3.3 million individuals nationwide. Democrats are hoping to soften if not reverse what's in the House version.

Nationally, the unemployment rate dropped to 8.6 percent in November.

EDD estimates that about 16.1 million Californians had jobs in November, an increase of 116,000 from October, and up 246,000 from the employment total in November of last year.

The Associated Press contributed to this report.

"Port of Los Angeles sets record for exports"- LA Times

Los Angeles Works — Fri, 16 Dec 2011 12:00:AM PST

Port of Los Angeles sets record for exports‎

More U.S. goods than ever are shipped to foreign destinations, helped by a weak dollar and a strengthening manufacturing sector.

By Ronald D. White, Los Angeles Times

6:29 PM PST, December 15, 2011

A rising tide of exports has been flowing through the nation's busiest seaport complex this year, helped by a weak dollar and a strengthening U.S. manufacturing sector.

In November, more U.S. goods than ever before moved out of the Port of Los Angeles to foreign destinations, with 195,878 outbound cargo containers, up 15% from the same month last year.

For the 11-month period ended Nov. 30, the port sent 1.9 million containers to foreign shores, surpassing its annual record of 1.8 million boxes, set in 2010.

Goods moving through the port for sale in Asia and other world markets included manufactured items such as integrated circuits and micro assemblies, agricultural goods, raw materials and discretionary consumer items such as California wines.

A weak U.S. dollar made these goods more affordable, but the tepid domestic economy also has forced Americans to find new income through foreign markets.

"It has been a robust year for exports," said Jock O'Connell, an international trade expert with Beacon Economics. "On an inflation-adjusted basis, this may, for example, turn out to be the best year ever for California exports."

Traditionally, imports have been the dominant news at the ports of Los Angeles and Long Beach, which rank first and second, respectively, in the nation in the number of cargo containers handled.

The neighboring ports move more than 40% of the nation's Asian imports. But the big story this year has been the growth in foreign markets for goods through the Los Angeles Customs District and California as a whole.

"Finished goods are also part of the rising export picture, and that is really good news for the California and U.S. economies," said John Husing, an economist who concentrates on international trade and its effect on the Inland Empire.

Exports also have been strong at other U.S. ports. And although U.S. export volume is expected to increase by nearly 7% this year, some experts project that the growth rate could be much slower next year.

In California, exports this year include $5.26 billion in electronics such as integrated circuits and micro assemblies; $5.2 billion in "electrical apparatus for line telephony," including mobile phone components; $2.54 billion in semiconductor devices; and $2.39 billion in industrial machinery, including computers, O'Connell said.

Locally, the surge of exports has been seen through the entire Los Angeles Customs District, which includes both ports and air freight moving through Los Angeles International and Ontario airports, said Ferdinando Guerra, an economist specializing in international trade for the Los Angeles County Economic Development Corp.

"All of the top 10 export categories for the Los Angeles Customs District are up, with the exception of aircraft and aircraft parts," Guerra said. Part of the surge has been growth in new foreign markets, and some old ones.

Guerra said that Australia rose to the No. 4 spot in terms of exports from the Los Angeles Customs District, moving ahead of Taiwan. India's burgeoning middle class made it the fastest-growing foreign market for locally exported goods. The $2.6 billion in sales of goods to India through October was enough to put it in the top 10 among foreign markets for the L.A. Customs District for the first time, Guerra said.

Indonesia. Malaysia and Vietnam also showed a growing appetite for goods shipped through the Los Angeles Customs District.

One of those benefiting is Los Angeles entrepreneur Alvin Lin, 42, vice president, chief sales officer and board member for CA88 Wine Inc. of downtown Los Angeles.

Lin's company is so named to denote that his wines come from California, and they also use the number 88, which is considered a sign of good luck in China, which is his main export market.

In just two years, Lin's business has exploded. In 2010, Lin said CA88 shipped a total of seven 20-foot-long cargo containers, or about 12,600 bottles, for sale in China. Starting in January, Lin said his business, which has about 15 employees, will be shipping four 20-foot containers of wine every month.

"We're selling to night entertainment locations, hotels, pubs, specialty stores. California wines are now considered among the best in the world in China, and the depreciation of the dollar has been a great incentive to buy them," Lin said.

Imports also increased in November at the Port of Los Angeles, up 6.2% to 354,313 containers. Overall, including empties, the L.A. port's business grew 4% to 694,109 containers in November. Through 11 months, 7.3 million containers have moved through the port, an increase of nearly 1% from 2010.

At Long Beach, which lost a terminal operator to Los Angeles a year ago, preliminary numbers for November showed a decline in imports of 15.6% and a decline in exports of 22%.

Combined, the two ports have handled 3.2 million export containers through the first 11 months of this year and are on pace to top the record set last year of 4.4 million export containers.

"Keyes Automotive Group opens European dealership in Van Nuys"- Daily News

Los Angeles Works — Thu, 15 Dec 2011 12:00:AM PST

Keyes Automotive Group opens European dealership in Van Nuys

By Gregory J. Wilcox, Staff Writer

Posted: 12/15/2011 01:00:00 AM PST

Keyes European has opened up its new $35 million dealership on Van Nuys Boulevard's Auto Row. The new building includes a three-story open atrium with showrooms on two floors. A top-level parking area is covered with solar panels. (John McCoy/Daily News Staff Photographer)

That new car dealership smell is wafting down Van Nuys Boulevard's venerable Auto Row.

Keyes Automotive Group has quietly opened its $35million Keyes European dealership, a 252,000-square-foot mega facility that spans the eastern intersection of Van Nuys Boulevard and Clark Street near the south section of the row.

The store sells Mercedes-Benz and the brand's AMG performance models, the latter with six-figure price tags.

"We're very excited to have it. It's the crown jewel of our group and certainly it's a presence on Van Nuys Boulevard," Howard Tenenbaum, vice president of the dealership group, said of the sparkling, modernistic facility.

Keyes is not the only company to make a million-dollar-plus bet on the row, a concentration of nearly 20 auto lots along a one-mile stretch from Erwin Street to Magnolia Boulevard.

Earlier this year Roseville-based California Superstores opened a Fiat studio on the row and bought the former Big Valley Dodge facility at 5711 Van Nuys Blvd. It's been re-branded the Chrysler Jeep Dodge Ram dealership.

The company invested about $4million in the Fiat facility and is spending about $10 million to renovate the Chrysler operation, said general manager Dave Maxwell.

The investments come as municipal leaders try to woo car dealers to open shop in Los Angeles because they produce so much sales tax revenue - $29 million in 2010. Mayor Antonio Villaraigosa and some City Council members have proposed exempting auto dealers from the business tax.

Not surprisingly, then, the money flowing into Auto Row is welcome news in a tough economic time.

City Councilman Paul Krekorian, who represents the area, said Auto Row is a critical component of the city's economic base.

"It's terrific news on a number of levels," he said. "First of all it's an infusion of capital investment ... that's creating jobs. Also, these dealerships are making a significant investment in the future. They are putting their own money down and betting on the solid future of the San Fernando Valley."

He also noted that Keyes worked closely with the community on the project, and that effort seems to be paying dividends.

"It's called Auto Row for a reason. I think it's fabulous," said Lydia Mather, past president of the Van Nuys Neighborhood Council and member of the South Valley Area Planning Commission.

"I think the Keyes building is absolutely wonderful. They are a real good neighbor. I've worked hard to foster revitalization of this area and I think what they are doing is great."

The green complex features a showroom with a soaring skylight and solar power system with panels suspended above the parking deck to provide shade for cars.

Recycled materials, some from previous structures on the site, were used for many of the building systems to reduce the demand for new raw materials. More than 90percent of the construction debris has been either repurposed or recycled to significantly reduce the project's impact on local landfills, the company said.

It took about 18 months to build.

Some finishing touches are still being completed and a grand opening will be held sometime early next year, Tenenbaum said.

The former Mercedes dealership at 5746 Van Nuys Blvd. will be converted into a Hyundai store. This project will be part of a five year multimillion-dollar investment in Auto Row that Keyes is making and also includes the group's Toyota and Chevrolet facilities.

At Keyes European's new $35 million dealership on Van Nuys Boulevard's Auto Row, a top-level parking area is covered with solar panels. (John McCoy/Daily News Staff Photographer)

Keyes announced its development plan in June 2010 and said the facility is expected to increase sales by more than 20 percent in the first year and potentially increase the dealership's workforce.

Currently, the dealership employs 145 people and up to 50 more could be hired, Tenenbaum said.

Keyes made the investment despite the deep recession that decimated the nation's dealership ranks when sales tanked in 2009. Sales that year plunged to 10.4 million units from 13.2 million in 2008, according to market tracker Truecar.com.

Still, Keyes European generated more than $7million dollars in state and local tax revenue in 2009, the company said.

Normal sales levels for the nation's dealers is in the range of 16 million to 17 million units. The forecast for this year is 12.75 million units, then expected to move up to 13.8 million in 2012.

Tenenbaum said the company moved forward in the soft economy because it has a strong business model and big footprint.

It's one of the biggest dealership chains in the U.S. with operations in Los Angeles, Santa Clarita, Phoenix and Las Vegas. The group sells Audi, Chevy, Cadillac, GMC, Honda, Hyundai, Lexus, Mercedes-Benz, Nissan and Toyota vehicles and has more than 1,100 employees.

"We felt confident that we did the right thing and business would get better. And business is pretty good right now," Tenenbaum said.

"Van Nuys Boulevard is a great place to sell cars. That's the best use of this boulevard. This is as good as any auto mall in the country."

Jesse Toprak, Truecar.com's vice president of industry trends, said the row also creates critical mass for the Valley's economy.

"The whole Van Nuys Auto Row is the epicenter of car buying in the Valley. It's strategically located and is able to attract buyers from beyond the hills," he said.

California Superstores' Maxwell, who grew up in the Valley and is a veteran of the dealership business, said work on his facility should be completed in about five months. The project includes a 12,000-square-foot showroom and 5,000-square- foot service area.

The company has 11 franchises at this point and a simple business philosophy.

"Our business plan is velocity. We're very much into moving inventory. Price becomes secondary. We're looking to generate revenue," Maxwell said.

He's also looking forward to bringing back some of the old traditions, like periodic car shows at the dealership so the locals can show off some of that Detroit muscle.

"I'm a local guy. I understand the neighborhood. I used to cruise Van Nuys Boulevard when I was a kid. We're going to try to bring some of that classic retro back," he said.

"Southland home sales rise 4.2% in November from a year earlier"- LA Times

Los Angeles Works — Wed, 14 Dec 2011 12:00:AM PST

Southland home sales rise 4.2% in November from a year earlier

Low prices for starter homes spur some bargain hunting among home shoppers in Southern California in November. Home sales rose 0.3% from October and 4.2% from November 2010.

By Alejandro Lazo, Los Angeles Times

December 14, 2011

Low prices for starter homes spurred some bargain hunting among home shoppers in Southern California last month, sending sales slightly higher.

November sales rose 0.3% from October and 4.2% from November 2010 with 16,884 homes bought across the region, according to real estate research firm DataQuick of San Diego. Sales of newly built homes suffered, declining 15.2% from a year earlier and falling to the lowest level on record for a November.

"Lower prices and amazingly low mortgage rates tempted those with the confidence to buy and the ability to qualify for a loan, or to pay cash," DataQuick President John Walsh said. "But these sales levels remain subpar, with new-home sales stuck at record lows."

The median home price for the region was $275,000 in November, up 1.9% from October but down 4.2% from November 2010, DataQuick reported Tuesday. The median is the price at which half the homes sold for more and half for less. It is heavily influenced by changes in the type of homes selling.

Sales of homes priced above $500,000 declined almost 16%, which DataQuick said stemmed partly from the difficulty that borrowers have had getting large mortgages.

Nearly 1 in 3 previously owned homes sold last month was a foreclosure and 1 in 5 was a "short sale," in which the property was sold for less than the outstanding debt on the home. Short sales and foreclosures accounted for 51.3% of the market last month, down from 52.3% in October and 53.4% in November 2010.

"Port of L.A. Signs Major Tenant for New Terminal"- LA Business Journal

Los Angeles Works — Tue, 13 Dec 2011 12:00:AM PST

Port of L.A. Signs Major Tenant for New Terminal

By James Rufus Koren

Tuesday, December 13, 2011

Shipping terminal operator California United Terminals plans to occupy a massive new terminal at the Port of Los Angeles, Mayor Antonio Villaraigosa’s office announced Tuesday.

Hyundai Merchant Marine Co. Ltd., a Seoul company that owns the terminal operator, signed a memorandum of understanding that also commits it to help build Pier 500, a 200-acre terminal planned for the southeastern edge of the port.

The announcement was made after Hyundai officials met with Villaraigosa and other members of an Asian trade delegation on an 11-day visit from Los Angeles.

The MOU solidifies the company’s relationship with the Port of Los Angeles. Once one of the biggest tenants at the neighboring Port of Long Beach, the company relocated a year ago because it feared construction at the Port of Long Beach would hamper its operations.

California United now subleases space at Pier 400, a terminal that juts out from Terminal Island into Los Angeles Harbor. Pier 500 would be a man-made peninsula, built atop rock and fill material along the south side of Pier 400.

But even with the MOU and a promise from Villaraigosa to pour $1.2 billion into port infrastructure over the next five years, Pier 500 is likely more than a decade away from completion.

Port of Los Angeles spokesman Phillip Sanfield said Pier 500 still must go through environmental review and even after all permits are obtained construction could take nearly a decade .

"Survey predicts upturn in hiring"- Daily News

Los Angeles Works — Mon, 12 Dec 2011 12:00:AM PST

Survey predicts upturn in hiring

By Gregory J. Wilcox, Daily News Staff Writer

Posted: 12/12/2011 10:01:10 PM PST

Updated: 12/12/2011 10:02:47 PM PST

In the strongest jobs forecast in nearly four years, more than twice as many Los Angeles area companies plan to add staff in the first quarter of 2012 than will eliminate positions, according to a survey released today.

Over the next three months 18 percent of businesses will hire staff while 8 percent plan cuts, a net employment outlook of 10 percent, according to the quarterly Manpower Employment Outlook.

That's the most robust survey result since the middle of 2008, said Janelle Etchepare, Manpower's regional director for the Los Angeles area.

It is based on a survey of 140 firms and yielded a much better result than the survey for the first quarter of this year. In that one, 13 percent of businesses planned to add staff and the same number planned cuts - signaling no growth in the job outlook.

"It's exciting to see that," Etchepare said of the 10 percentage point gain from this year's first quarter. "Across the nation we've had nine straight quarters of employment increases but not these kinds of numbers," Etchepare said.

The numbers show a big improvement from the current quarter, too. In the October through December period, 15percent of businesses surveyed planned to add staff while 13 percent planned cuts, a net employment outlook of 2 percent, according to Manpower, a job search firm.

"I think there is a slow but steady improvement in employer confidence," Etchepare said.

The metro Los Angeles outlook outpaced both the state's and nation's of 3 percent and 5percent, respectively.

For the coming quarter, job prospects here appear best in manufacturing of nondurable goods, transportation and utilities, wholesale and retail trade, financial services, professional and business services, leisure and hospitality and government sectors.

Employers in information and education and health services plan to reduce staffing levels. Hiring levels in construction, manufacturing of durable goods and other kinds of service jobs should be unchanged.

Locally, 68 percent of employers plan to maintain current staffing levels and 6percent don't know what they will do over the next three months.

However, the latter number does concern Etchepare a bit.

"I think we still have to be a little cautious because there are a lot of employers that are not sure (about their plans)," she said.

Kimberly Ritter-Martinez, associate economist at the Kyser Center for Economic Research at the Los Angeles County Economic Development Corp., said that the Manpower report shows the same trend as other job market trackers.

"I think this is indicative of just continuing improvement, albeit at a slow pace. It is an encouraging sign," Ritter-Martinez said. "It seems that more and more of (the forecasts) are starting to give more positive outlooks."

The county's job picture has been improving but the unemployment rate remained high at 12.4 percent in October, the most current number available. But a year earlier it was 12.9 percent, said the state's Employment Development Department.

November's rate will be released later this month.

In October, 11 of the county's 12 major sectors added jobs or remained unchanged. And between September and October the county's nonfarm employment increased by 31,600 jobs to reach 3.81 million.

The biggest boost came from the government sector, which added 13,800 jobs over the month, the EDD said.

Manpower's Etchepare expects the optimism to carry over into the second quarter, too.

She believes that interviews will ramp up at the beginning of January with hiring getting under way later in the month.

Some employers also are more willing now to hire workers who will need some training.

"I think given the environment we are in there is a big skills mismatch. The people out there looking for work don't have the skill set employers are looking for," she said.

"Council OKs plan to revive riverfront"- Daily News

Los Angeles Works — Thu, 08 Dec 2011 12:00:AM PST

Council OKs plan to revive riverfront

By Rick Orlov, Daily News Staff Writer

Posted: 12/07/2011 09:56:07 PM PST

Updated: 12/07/2011 09:58:40 PM PST

Looking to drive economic investment and revive the Los Angeles River as a free-flowing waterway, the Los Angeles City Council on Wednesday approved a new overlay plan for development along the riverfront.

"This is the final step for us at the city to offer a map to developers on what the river can offer," said Councilman Ed Reyes, who heads the council's Ad Hoc River Committee.

"It has taken us eight years to get to this point and we can use this as a way to convince the Obama administration to provide the funds to the Army Corps of Engineers to complete its study."

That study is needed to complete the dreams of many river lovers to begin removing some of the flood control channel concrete that inhibits a free flow of the waterway.

Reyes said the study would identify areas where the concrete could be removed to increase public access to the river, while not creating any flooding problems.

The overlay zone adopted by the council sets out general proposals for future development along the river.

Reyes said the committee heard from all communities that abut the river and tried to accommodate their wishes.

"There were areas, primarily in the San Fernando Valley, that are heavily residential and they didn't want to see any change, where people would be trying to get to the river," Reyes said.

"But there are commercial areas where we are going to them to say, 'You can do more here than have a back of a building facing the river,' " Reyes said. "We want them to look at other possibilities of having parkways and bike paths."

Councilman Dennis Zine, who represents the West Valley area, said the city proposal is modeled after similar projects in Reno and San Antonio.

"Eventually what we would like is to make it a living river with bike paths, walkways and restaurants," Zine said. "We want businesses facing in to appreciate the river."

Work has already begun on a bike path along the river, Zine said.

"We had a groundbreaking on it, at Wilbur just south of Vanowen, for the start of a bike path and walkway that we hope, one day, will run the length of the river."

"L.A.'s Cleantech Incubator Adds Two Tenants"- LA Business Journal

Los Angeles Works — Thu, 08 Dec 2011 12:00:AM PST

L.A.'s Cleantech Incubator Adds Two Tenants

By Howard Fine

Wednesday, December 7, 2011

A solar company and an electric generator firm are the two newest additions to the recently launched Cleantech Incubator in Downtown Los Angeles.

Eliosolar, which makes solar power systems and shades for buildings, and ClearWater Holdings, which makes electric motors and generators that power buildings and run power plants, join two other companies already in the incubator at 411 S. Hewitt St. near the Los Angeles River.

“Eliosolar and ClearWater Holdings are extremely innovative in their respective fields and further diversify our portfolio of clean, smart energy companies,” said Fred Walti, executive director of the Los Angeles Cleantech Incubator.

The incubator started this summer with $1 million from the Los Angeles Community Redevelopment Agency and additional money from the Los Angeles Department of Water & Power. It is the only part of Mayor Antonio Villaraigosa’s plan for a clean tech corridor along a three-mile stretch of the L.A. River in downtown that has so far materialized.

The first two companies to set up shop in the incubator are in the electric vehicle charging sector. 350 Green installs electric vehicle charging stations while Gridtest Systems makes portable equipment to test the effectiveness and safety of electric vehicle charging systems.

"Work starting on job training center in Pacoima"- Daily News

Los Angeles Works — Wed, 07 Dec 2011 12:00:AM PST

Work starting on job training center in Pacoima

By Gregory J. Wilcox, Daily News Staff Writer

Posted: 12/06/2011 10:50:52 PM PST

Updated: 12/06/2011 10:51:17 PM PST

PACOIMA -- After a 12-year slog through the municipal bureaucracy, the site of a former county Fire Department mule barn is being transformed into a "beacon of hope" for wayward youths.

Construction is under way on the $1.2 million CIS Job Training & Opportunity Center in Pacoima and the facility should open next summer, officials said Tuesday.

The center, operated by the nonprofit Communities in Schools, will be another tool to fight gangs, crime, school-dropout rates and poverty.

Officials brimming with optimism held their first groundbreaking a dozen years ago. The second came on Monday and William "Blinky" Rodriguez, executive director and CEO of CIS' San Fernando Valley and Greater Los Angeles operations, is excited again.

"Here it is 12 years later and we've got shovels in the ground. I've got to tell you I'm ecstatic. I think this facility will be a beacon of hope in the Northeast Valley," he said.

The 5,000-square-foot facility is on a half-acre parcel at 12605 Osborne St. The land is on Los Angeles County Fire Department property and is being leased to CIS, a McLean, Va.-based group focused on reducing dropout rates.

Permitting and planning took so long because the land is owned by a county agency but located in the city of Los Angeles, officials said.

The center also will have a youth leadership institute and offer programs in life skills, job training, anger management, child rearing skills and counseling. It will also have classrooms and a computer lab.

There will be eight case managers on staff.

It will also get a new name before it opens and feature a mural painted by students under the supervision of a professional artist, said Robert "Bobby" Arias, CIS president.

The group has been working in the community, focusing primarily on gang activity.

"We've impacted a lot of kids. These were kids people were running from, not to," Arias said.

Clients will be referred to the center from a variety of sources, including The San Fernando Coalition on Gangs, the county Probation Department, school districts, the city's Housing Development Agency, individuals, community centers and churches.

Councilman Richard Alarcón, who represents the area, said the facility will be important to those referred by the Probation Department because it will help them learn the life skills they need to be successful.

"In doing so it helps them avoid falling into the same traps that got them in trouble in the first place," he said.

Crime in the Northeast Valley is down slightly this year but it is still high. Through Dec. 3 there were 6,488 arrests in the Foothill Division, down 1 percent from 6,572 a year ago, according to the Los Angeles Police Department. There were 629 violent crimes, down 17 percent from a year earlier.

The center could help push down these numbers even more, Arias said.

"We've had our tentacles throughout the community. We've made it clear that this is a community resource," he said.

Construction of the center should proceed quickly once the concrete pad is ready because it is a prefabricated building. In fact the building is already on site in crates, said Albert Giacomazzi, president and CEO of AMG & Associates Inc., the Santa Clarita-based construction company building the facility.

AMG has built several other similar projects around the city for nonprofit groups and they typically have the intended impact, he said.

"L.A. council committee asks for report on new offices to bolster trade"- Daily Breeze

Los Angeles Works — Wed, 07 Dec 2011 12:00:AM PST

L.A. council committee asks for report on new offices to bolster trade

By Art Marroquin Staff Writer

Posted: 12/06/2011 06:28:13 PM PST

A Los Angeles City Council committee on Tuesday requested a report on whether to open overseas investment and development offices as a way to bolster trade with other countries.

Los Angeles International Airport and the Port of Los Angeles will work with LA Inc., the city's convention and visitors bureau, on a report that will be presented next month to the Trade, Commerce and Tourism Committee, comprised of three city councilmen.

"Clearly the value of international trade to the economy of Los Angeles is significant and the city should make every effort to build on the strength of our location, infrastructure and talented workforce," council President Eric Garcetti wrote last month in a motion asking city and port officials to consider opening a series of "resource centers" aimed at promoting trade and tourism abroad.

The goal is to help Los Angeles double its exports by 2015, which was one of the goals of President Barack Obama's National Export Initiative, said Tracy Gray, an adviser to Los Angeles Mayor Antonio Villaraigosa.

The request comes as Villaraigosa, airport and port executives and local business leaders are touring Asia to bolster local jobs.

In a separate move, the trade committee asked for a report to determine whether LAX's sister airport in Ontario would be able to house a massive refrigeration unit to store flowers and produce imported from other countries.

For now, Miami handles most of the cold storage products distributed to the rest of the country, but Los Angeles has recently attempted to snag some of the market with help from local freight companies, said Mark Adams, government affairs manager for Los Angeles World Airports, the city agency that operates LAX, Ontario and Van Nuys airports.

The perishable items usually arrive at LAX in wide-body freighters and inside the belly of large passenger planes, but those types of aircraft do not currently fly into LA/Ontario International Airport, Adams told the council committee.

"The capacity we have at this time is at LAX," Adams said. "Having more capacity would be a good thing."

Los Angeles City Councilman Bill Rosendahl said he wanted airport officials to study the matter further because he wants to "work with Ontario to make it a more robust location."

Additionally, the council committee on Tuesday asked airport officials to determine how the city could be responsive to the needs of Van Nuys Airport and the surrounding community.

LAWA officials will examine whether Van Nuys should have a managing board that would be separate from the seven-member Board of Airport Commissioners.

LAWA also will study whether management should be changed or if a private contractor should oversee operations at Van Nuys Airport, which is one of the busiest general aviation airports in the country.

Los Angeles City Councilman Tom LaBonge said he supported idea of creating a subcommittee to oversee Van Nuys Airport.

"Forever 21 expands in China with support from L.A. mayor"- LA Times

Los Angeles Works — Tue, 06 Dec 2011 12:00:AM PST

Forever 21 expands in China with support from L.A. mayor

December 6, 2011

Los Angeles-based fashion retailer Forever 21 signed an agreement Tuesday to open a flagship store in Beijing, part of a greater plan by the company to expand into the world’s largest emerging consumer market.

In a ceremony attended by Los Angeles Mayor Antonio Villaraigosa, the clothing maker committed to a 24,000-square-foot retail space in a multi-story mall located in the Chinese capital's central shopping district, Wangfujing.

Additional stores are set to open in Shanghai and Hong Kong. The brand briefly operated a store in Changshu, a city 70 miles from downtown Shanghai, but it closed two years ago because of poor sales.

Famous for churning out staggering numbers of new styles in record time, Forever 21 follows other mid-market fashion brands from abroad -- such as H&M, Zara, Uniqlo and the Gap -- into the Chinese market.

"The action and money is here," said Sung Won Sohn, the company's vice chairman. "China is the only locomotive left in the world."

China's retail sales grew 17.2% in October from a year ago, to $262.6 billion.

Sohn, who is also an oft-cited economist at Cal State Channel Islands, acknowledged the company's investment comes at a time when China could see a considerable economic slowdown. Exports are declining, and the property market has been stung by government restrictions.

"There's growing potential for a real estate bust," said Sohn, whose dark suit and white shirt contrasted with the brand's lively casual wear, known for wild prints and revealing cuts.

But Sohn remained bullish on Chinese consumers, explaining that affordable brands such as Forever 21 tend to do well during recessions.

However, Sohn said, like most foreign retailers, Forever 21 clothing will be priced slightly higher in China than in the U.S. This comes despite lower Chinese household incomes and the fact that 60% of the brand's clothing is manufactured in the country.

But some things will remain the same. Sohn said the family-owned company had no plans to scrap printing Bible verses on its yellow shopping bags just for China, a country where religious worship remains muted and generally under the purview of the government.

"We have them in Birmingham, England, too, where there's a huge Muslim community," Sohn said of the biblical references. "I don't think that will change."

Speaking on stage at the event, Villaraigosa said Forever 21's Korean-immigrant roots embodied the story of L.A.

"Forever 21 is an L.A. fashion company we are very proud of," he said.

The mayor is on an 11-day Asian trade mission that is also scheduled to take him to Japan and South Korea.

On Monday, he met with the head of China's sovereign wealth fund, Lou Jiwei, who expressed interest in investing in L.A.'s public infrastructure -- possibly through the Metropolitan Transit Authority, Villaraigosa said.

The mayor didn't elaborate. He was in a hurry to remove specks of glittery confetti that had rained on attendees at the end of the ceremony –- lest he look too festive in his meetings that afternoon with Chinese Vice Premier Wang Qishan and Vice President Xi Jinping, a man pegged to become the next president of China.

"Mayor, business leaders embark on Asian trade trip"- Daily News

Los Angeles Works — Fri, 02 Dec 2011 12:00:AM PST

Mayor, business leaders embark on Asian trade trip

By Rick Orlov, Staff Writer

Mayor Antonio Villaraigosa leaves Saturday with a delegation of local business and political leaders for his second major trip to Asia, with stops planned in China, South Korea and Japan in a bid to bring more business to Los Angeles.

About two dozen people are accompanying the mayor, including former U.S. Trade Secretary Mickey Kantor, Capital Group Cos. Chairman David Fisher and Ambassador Jose Villarreal, commissioner general of the U.S. Pavilion at the Shanghai World Expo.

The estimated cost of $295,000 for the mayor and city employees is being paid by Los Angeles World Airports and the Port of Los Angeles. The business people are paying their own way.

"Los Angeles is the gateway to the Pacific Rim and the launching pad for Asian investment in the United States," Villaraigosa said. "As we rebuild our local economy, we must acknowledge our role in the global economy and leverage our assets to create jobs here in Los Angeles."

Villaraigosa took a similar trip to Asia in 2006 during his first term as mayor. Out of that venture, he signed agreements for more than $300 million in foreign investments and expanded the tourism business in Beijing.

He also heard about the need for Los Angeles to deepen the Port of Los Angeles to accommodate larger ships as well as continue with the improvements at LAX.

This latest trip is designed to follow up on the opening of the North American headquarters of BYD, one of the leading Chinese manufacturers of batteries and electric cars.

Bob Stern, president of the Center for Governmental Studies, said the trip will be valuable if it brings business back to the city.

"I know a lot of people question the value of these trips and call them junkets, but the fact is these countries and companies want to see the mayor there," Stern said, adding he also believed it is appropriate for the city to pay the costs.

"The only real question I would have is the timing with these demonstrations going on," Stern said. "But there is always going to be something coming up that could affect the timing."

Also on the trip is Dr. Lucy Jones of the U.S. Geological Survey in Pasadena, who will visit Tokyo and the earthquake-ravaged Sendai region to meet with local government officials, emergency responders and university researchers to discuss findings from the March earthquake and tsunami.

Asia is home to eight of L.A.'s top 10 trading partners and accounts for more than $250 billion in two-way trade and hundreds of thousands of jobs, aides to Villaraigosa said.

Nancy Sidhu, chief economist at the Los Angeles County Economic Development Corp., said trips such as this are important in terms of cementing relations with Asian companies and government officials.

"If this is an area where you seek to improve relations, it's important to go there," Sidhu said. "It's been a long time since the mayor went there and you need to go back to bring the business to Los Angeles.

"It takes time to see these deals come about and you need to put a face to the city by meeting with officials there."

China has become a key player for the city, with its increase in tourism and investments in the region.

In addition to BYD, China Telecom has opened an Internet data center in Los Angeles, allowing local and Chinese businesses to have improved communications.

Japan is the largest source of jobs and wages from foreign businesses in Los Angeles, with more than 16,000 workers who are paid $792 million a year.

Korean-owned businesses employ more than 1,500 people and pay more than $85 million a year in wages.

The mayor also will bring American investors to China, announcing that the Forever 21 retail stores will open three stores there.

Villaraigosa will also discuss plans for the Port of Los Angeles, including a deepening of the channel to accommodate larger ships and expanding the China Shipping terminal to 142 acres from its current 72 acres.

Modernization of Los Angeles International Airport is also under way, including new gates to accommodate the widebody Airbus A380.

The mayor is scheduled to meet with tourism companies to encourage them to include Los Angeles as a destination.

The delegation is scheduled to visit with officials and companies in seven cities, including three in China, three in Japan and one in South Korea.

"Unemployment rate falls to lowest since March 2009"- Daily News

Los Angeles Works — Fri, 02 Dec 2011 12:00:AM PST

Unemployment rate falls to lowest since March 2009

By Christopher S. Rugaber, AP Economics Writer

Posted: 12/02/2011 07:50:26 AM PST

Updated: 12/02/2011 08:45:34 AM PST

In this Nov. 14, 2011 file photo, job seekers line up to speak to recruiters during a career expo in Las Colinas, Texas. The unemployment rate fell last month to its lowest level in more than two and a half years, as employers stepped up hiring in response to the slowly improving economy. (AP Photo/LM Otero, File)

WASHINGTON - Small businesses and startups that were skittish about the economy this summer started hiring in bigger numbers this fall, helping drive the unemployment rate down to 8.6 percent in November, the lowest in two and a half years.

The country added 120,000 jobs last month, the Labor Department said Friday. The economy has generated 100,000 or more jobs five months in a row - the first time that has happened since April 2006, long before the Great Recession set in.

"Something good is stirring in the U.S. economy," Ian Shepherdson, an economist at High Frequency Economics, said in a note to clients.

The unemployment report, one of the most closely watched economic indicators, showed that September and October were stronger months than first estimated. For four months in a row, the government has revised job growth figures higher.

Unemployment was 9 percent in October and has been stuck near or above that level for two and a half years. The last time unemployment was this low was March 2009, two months after President Barack Obama took office.

The government uses a survey of mostly large companies and government agencies to determine how many jobs were added or lost each month. It uses a separate survey of households to determine the unemployment rate.

The household survey picks up hiring by companies of all sizes, including small businesses and startups. It has shown an average of 321,000 jobs created per month since July, compared with an average of 13,000 the first seven months of the year.

"We might finally be seeing new business creation expand again, which is critical to the sustainability of the recovery," said Diane Swonk, chief economist at Mesirow Financial, a financial services company.

When the economy is improving or slipping into recession, many economists say, the household survey does the better job of picking up the shift because it is more likely to detect small business hiring.

The unemployment report was the latest encouraging indicator for the economy. Other reports this week have shown that factories are producing more, construction is growing, and people are buying more cars.

And Americans spent a record $52.4 billion over the Thanksgiving weekend, according to the National Retail Federation, a trade group. A separate report from MasterCard found spending was up almost 9 percent from last year.

The accelerating debt crisis in Europe has loomed over the economy for months. An economic collapse there would hammer sales of American exports. And if the crisis causes banks to stop lending money, the world economy would suffer.

But there are signs that Europe is moving toward a solution. Earlier this week, six central banks around the world made it easier for commercial banks to borrow American dollars to do business, calming financial markets and buying time for politicians to work something out.

The leaders of Germany and France appear to be pushing for stronger rules to make sure European governments are responsible with their budgets, an approach designed to save the euro currency from collapse.

European leaders meet next Friday for a crucial summit on the matter.

In the United States, about 13.3 million people are counted as unemployed. Private employers added 140,000 jobs in November, while governments shed 20,000. Governments at all level have cut almost a half-million jobs this year.

More than half the jobs added last month were by retailers, restaurants and bars.

In this Dec. 1, 2011 photo, job seekers attend a career fair in Overland Park, Kan. The unemployment rate fell last month to its lowest level in more than two and a half years, as employers stepped up hiring in response to the slowly improving economy. (AP Photo/Charlie Riedel)

Professional and business services also rose. Those tend to be higher-paying jobs - engineers, accountants and high-tech workers.

Still, more than 300,000 people stopped their job searches last month, so they were no longer officially counted as unemployed. That accounts for some of the drop in the unemployment rate.

Even with the recent gains, the economy isn't close to replacing the jobs lost in the recession. Employers began shedding workers in February 2008 and cut nearly 8.7 million jobs for the next 25 months. The economy has regained about 2.5 million.

It had appeared that Obama would face voters next fall with the highest unemployment of any sitting president seeking re-election since World War II. That was the 7.8 percent faced by Gerald Ford when he ran and lost in 1976.

But the 8.6 percent figure makes it more likely that unemployment will fall below that level by next November. That would take stronger and consistent job growth. It takes about 125,000 new jobs a month just to keep up with population growth.

Ronald Reagan faced 7.2 percent unemployment in 1984 and trounced Walter Mondale. Unemployment was 7.8 percent when Obama took office in January 2009.

The economy grew at a 2 percent annual rate in July, August and September. Paul Ashworth, an economist at Capital Economics, estimates growth will speed up to 2.5 percent in the last three months of the year, but slow to 1.5 percent in 2012.

One factor that will figure in is whether Congress extends the Social Security tax cut, which is set to expire Dec. 31. It will give most American households $1,000 to $2,000 extra this year.

Both Democrats and Republicans have expressed interest in extending the tax cut - Obama wants to expand it - but they have disagreed over how to pay for it. The Senate on Thursday defeated plans from both parties on how to do it.

Republicans had proposed paying for the cut by freezing the pay of federal workers through 2015. Obama has already recommended freezing it through 2013. Democrats wanted to raise taxes on people making $1 million or more a year.

"Green technology investments lead third-quarter venture funding"- LA Times

Los Angeles Works — Thu, 01 Dec 2011 12:00:AM PST

Green technology investments lead third-quarter venture funding

Venture capitalists view clean technology as a safe bet, analysts say. So even as investors scale back funding in other sectors, they continue to shower green companies with money.

By Angel Jennings, Los Angeles Times

December 1, 2011

Getting investors excited about long-lasting batteries was a challenge for Leyden Energy in the early days. Raising funds was even harder.

Then came the iPhone.

The popularity of Apple's mobile device and other smartphones sent engineers into a frenzy to create batteries that could outlast the power hogs. The Fremont, Calif., lithium-ion battery company was already working on a solution, and as a result it recently raised $20 million in venture funding.

Energy storage companies such as Leyden Energy led clean technology investment during the third quarter by raking in $421 million in venture capital, a 1,932% increase from the same period last year, according to an Ernst & Young report.

In the race for investment dollars, the green sector is winning. Venture capitalists, reassured by federal legislation and state regulations, view clean technology as a safe bet, analysts said. Even as investors scale back funding in many other sectors, they continue to shower green companies with money. The National Venture Capital Assn. reported in October that third-quarter venture funding declined to its lowest point in eight years, to $1.7 billion from $3.5 billion a year earlier.

"Some of the trepidation about the overall state of the economy is starting to subside a little bit," said John Gartner, a research director for Pike Research. "And it is time to get back into the market, and clean tech is an area that still has a lot of upside."

In total, firms in the green sector raised nearly $1.2 billion in funding in the third quarter, a 73% increase from a year earlier, Ernst & Young reported.

The driving force behind growth in clean tech investing is an increase in demand stimulated by government regulation, analysts said. Investors said programs including the Department of Energy's government-backed loan program for renewable energy projects signaled the federal commitment to clean tech.

On the local level, states are mandating renewable portfolio standards, in which utilities are required to obtain a portion of their energy from renewable energy sources.

Gov. Jerry Brown said he wants California to produce 12 gigawatts — enough to power about 3 million homes — of electricity from local clean power sources, such as rooftop solar panels, small wind turbines and fuel cells, by 2020.

Companies such as SolarReserve are reaping the benefits of these mandates. The Santa Monica company raised $15 million in the third quarter. In addition, it raised $27 million in October and secured a $737-million loan guarantee from the Department of Energy last December.

SolarReserve, founded in 2007, needs the funds to complete a solar power plant and work on additional projects. The company plans to use billboard-sized mirrors to gather energy from the sun and use molten salt to store energy for later use.

Kevin Smith, the company's chief executive, said that SolarReserve has not experienced problems raising capital in the wake of the Solyndra scandal. Solyndra, a solar energy company, received a $535-million government-backed loan and later filed for bankruptcy.

Before breaking ground on its plant, SolarReserve had secured a 25-year deal with NV Energy in Nevada to generate power mostly for Las Vegas casinos.

Judith Albert, executive director of Environmental Entrepreneurs, said clean tech investors were not shaken by the Solyndra controversy.

Venture capitalists "are used to working in an environment of uncertainty, and they don't expect all of the investments that they make to work," she said. "And particularly in this case, when you are doing something as revolutionary as changing the way we deliver energy. There are going to be a few stumbles."

As for Leyden Energy, the company recently started selling its batteries for consumer electronics through Canada-based Dr. Battery.

A typical lithium-ion battery can be charged 350 to 400 times before its performance starts to weaken. Batteries produced by Leyden Energy can be recharged more than 800 times until performance begins to deteriorate.

Aakar Patel, chief executive of Leyden Energy, said its partnership with Dr. Battery has exceeded the company's "wildest expectations." Though no cellphone manufacturers currently use batteries created by Leyden Energy, Patel said, major electronic companies are testing its products for use in later models.

"Consumers are using batteries more and more," he said. "So batteries finally have to get better."

"November retail sales gain solid 3.1%"- LA Times

Los Angeles Works — Thu, 01 Dec 2011 12:00:AM PST

November retail sales gain solid 3.1%

"Auto sales accelerate sharply in November"- LA Times

Los Angeles Works — Thu, 01 Dec 2011 12:00:AM PST

Auto sales accelerate sharply in November

A rush of shoppers helped the auto industry post an annual U.S. sales rate of 13.6 million vehicles in November, the strongest since August 2009, when the 'cash for clunkers' program was in effect.

By Jerry Hirsch, Los Angeles Times

6:23 PM PST, December 1, 2011

Add automobiles to the watches, video games, cashmere sweaters and the rest on the list of goods selling briskly in the days following Thanksgiving. It seems car buyers caught Black Friday fever this year.

Galpin Ford, the nation's largest Ford dealership, sold 140 new vehicles on the Friday after Thanksgiving, a single-day sales record for the San Fernando Valley franchise.

"It was surprising for all of us," said Beau Boeckmann, Galpin's vice president. "I don't think we expected that November would be the biggest car month since 'cash for clunkers' two years ago. Our November sales will be 50% above last year."

A rush of shoppers helped the auto industry post an annual U.S. sales rate of 13.6 million vehicles in November, the best this year and the strongest since August 2009, when the federal cash-for-clunkers economic stimulus program was in effect.

The industry posted sales of 1 million in November, up 13.9% from a year earlier, according to automaker statistics released Thursday and compiled by Autodata Corp.

"The Thanksgiving holiday weekend, including Black Friday, proved to be a very strong selling period," said Dave Zuchowski, Hyundai Motor America's executive vice president of national sales. He said the weekend helped the South Korean automaker set a November sales record of 49,610 vehicles, a 21.8% gain from a year earlier.

During the last week of November 2008, auto dealers sold about 260,000 vehicles. That held steady during the recession but then started growing, reaching more than 340,000 this year, according to estimates from auto information company TrueCar Inc.

"It is a factor of the deal mentality out there," said Jessica Caldwell, an analyst with auto information company Edmunds.com. "With Black Friday, everyone just assumes there is a deal for everything, whether it is a sweater or jewelry or a car."

Automakers expressed surprise at the strength of the Thanksgiving weekend.

"We were planning for a strong close for the month and expecting to see good traffic, and it ran ahead of our expectations," said Jonathan Browning, chief executive of Volkswagen Group of America.

Browning said shoppers are enjoying low interest rates, strong resale value of their trade-ins and good lease deals.

"Certainly we saw a kick at the end of the month," said Don Johnson, General Motors Co.'s vice president of U.S. sales operations.

Thanksgiving weekend has emerged as a popular car-shopping weekend only in recent years, said Jesse Toprak, a TrueCar analyst.

"Automakers are realizing that Black Friday is a great day to sell a car. A lot of people are off, and they aren't doing the traditional visit to the mall and are instead shopping online, so they have time to look for a car," he said.

Moreover, the timing of the holiday weekend comes at the end of the month and almost at the end of the year, times when dealers are trying to reach sales goals and manufacturers are offering specials, Toprak said.

Dealers such as Galpin contributed to a 13.3% gain in Ford Motor Co.'s November U.S. auto sales. The automaker sold 166,441 vehicles last month.

November sales for GM rose 7% from a year earlier to 180,402 vehicles, Autodata reported. Chrysler Group sales rose 44.5% to 107,172 vehicles. Volkswagen, including its Audi division, saw sales rise 28.7% to 38,283 vehicles.

Toyota Motor Corp. sales rose 6.7% to 137,960 vehicles last month, its first year-over-year monthly sales increase since April. Nissan North America sales increased 19.4% to 85,182 vehicles. But Honda Motor Co. sales fell 6.4% to 83,925 vehicles.

Although the sales numbers were good in November, the gains can't all be attributed to people getting into the holiday spirit, said Caldwell, the Edmunds analyst.

A portion of the sales increase came from buyers who deferred purchases earlier this year after the Japan earthquake disrupted global production and caused spot inventory shortages, especially for Toyota and Honda, the top Japanese brands, Caldwell said.

The shortages caused a price jump in the U.S. market that is now starting to ease.

Toyota executives expect an easier 2012. Its North American factories are back to operating at full speed, including the resumption of overtime production, and the automaker starts December with 30,000 more vehicles in inventory than it had at the beginning of November.

"We're in an excellent position to take advantage of a rebounding marketplace," said Bob Carter, Toyota's group vice president and general manager.

"ADP says companies added 206,000 workers in November"- LA Times

Los Angeles Works — Wed, 30 Nov 2011 12:00:AM PST

ADP says companies added 206,000 workers in November

Bloomberg News

6:24 AM PST, November 30, 2011

Companies added more workers than anticipated in November, easing concern the job market is stagnating in the third year of the U.S. recovery, according to a private report based on payrolls.

The 206,000 increase was the biggest this year and followed a revised 130,000 gain the prior month, Roseland, New Jersey- based ADP Employer Services said today. The median forecast of economists surveyed by Bloomberg News called for an advance of 130,000.

A pickup in hiring will make it easier to sustain the recent gain in consumer spending, which accounts for about 70 percent of the economy. Overall payrolls rose by 122,000, still not enough to cut the jobless rate from 9 percent, economists in a Bloomberg survey projected ahead of a Labor Department report due in two days.

"Companies are going to ramp up a bit," Russell Price, senior economist at Ameriprise Financial Inc. in Detroit, said before the report. "We just have to let the economy build on its own momentum. Then we'll be at a stage where demand creates employment which creates more spending."

Last month's initial ADP figures showed a 110,000 gain, while the Labor Department's data two days later showed an increase of 104,000 in private payrolls for October.

Stock-index futures extended gains after the Federal Reserve and five central banks lowered interest rates on dollar swaps and China cut banks' reserve requirements. The contract on the Standard & Poor's 500 Index expiring next month climbed 3 percent to 1,232.6 at 8:33 a.m. in New York.

The projections for November ranged from 95,000 to 200,000, based on the estimates of 44 economists surveyed by Bloomberg.

Goods-producing industries, which include manufacturers and construction companies, had an increase of 28,000 workers, today's figures showed. Employment in construction rose by 16,000, the most since November 2006, while factories added 7,000 jobs.

Service providers took on 178,000 workers.

Companies employing more than 499 workers added 12,000 jobs. Medium-sized businesses, with 50 to 499 employees, took on 84,000 workers and small companies increased payrolls by 110,000, ADP said.

Another report today showed employers announced fewer job cuts this month, according to figures from Chicago-based Challenger, Gray & Christmas Inc. Job-cut announcements dropped 13 percent in November from the same month in 2010.

Economic growth in the U.S. and other advanced economies "has been proceeding too slowly to provide jobs for millions of unemployed people," Federal Reserve Vice Chairman Janet Yellen said in a speech at a San Francisco Fed conference yesterday. She called for "urgent" international action to combat a "dearth" of global demand.

Yellen said the central bank has leeway to spur the U.S. recovery and reduce unemployment by buying more assets or clarifying its plan to sustain record-low borrowing costs.

Fed officials have differed this month over whether additional stimulus may be needed to reduce unemployment more quickly. Policy makers next meet Dec. 13 in Washington.

Macy's Inc., betting consumer spending will be sustained during the November-December holiday shopping season, was among companies that added staff. The second-biggest U.S. department- store chain said it was stepping up hiring of mostly part-time employees by 4 percent for the period.

Earnings growth is allowing some businesses to hire. Williams-Sonoma Inc., a retailer of high-end home goods, raised its annual profit forecast and will "continue to look for a few key jobs" in online sales, Chief Executive Officer Laura Alber said in a Nov. 17 conference call with analysts.

Companies remaining cautious include DirecTV, the largest U.S. satellite-TV provider, which this month said it will cut back on spending in 2012 to prepare for any slowdown in the economy.

The Labor Department's report, to be released on Dec. 2, may show private payrolls rose by 146,000 in November, according to the Bloomberg survey median. Overall hiring, which includes government jobs, may have climbed after rising 80,000.

The ADP report is based on data from about 337,000 businesses with more than 21 million workers on payrolls. Macroeconomic Advisers LLC in St. Louis produces the data with ADP.

"Sales of new homes edge up in October"- LA Times

Los Angeles Works — Tue, 29 Nov 2011 12:00:AM PST

Sales of new homes edge up in October

U.S. says new-home sales rose to an annual rate of 307,000 in October, seasonally adjusted, up from 303,000 the previous month. The median sale price, hurt by weak demand, fell to $212,300.

By Jeffry Bartash

November 29, 2011

Sales of new single-family homes were barely changed in October and there was little evidence of any improvement in the slumping U.S. housing market.

The U.S. government said new-home sales edged up to an annual rate of 307,000 in October, seasonally adjusted. Sales for September were revised down to 303,000 from an original reading of 313,000.

Economists polled by MarketWatch had forecast new-home sales to rise to 320,000 in October. In a healthy market, sales are typically two to three times that level.

Weak demand for new homes has kept prices low and forced builders to delay projects. The median sale price declined $1,000, to $212,300, in October and the supply of homes on the market fell slightly to 6.3 months — the lowest level in 11/2 years.

Many prospective buyers have turned to previously owned homes in search of better deals while the nation's high 9% unemployment rate has limited the pool of potential customers despite ultra-low interest rates.

"The report shows we continue to bounce along the bottom," said Mitchell Hochberg, principal of Madden Real Estate Ventures in New York. He said the housing industry won't recover "until there's strong economic growth and job creation."

New-home sales are 8.9% higher compared with a year earlier, however. In 2010 the housing market posted its worst year of sales since the government began keeping records in the early 1960s.

Half the new homes sold were purchased in the South, but sales in that region fell 9.5% to an annual rate of 153,000 compared with a month earlier.

Sales in the West rose almost 15% to a rate of 77,000, while sales in the Midwest rose 22% to an annual rate of 55,000.

Sales in the Northeast were unchanged at a rate of 22,000.

Data for new-home sales often fluctuate sharply from month to month, and economists look at a longer time frame to gauge market trends. New-home sales averaged an annual rate of 301,000 during the three-month period of August to October, slightly more than in the same period last year.

New-home sales are counted when contracts are signed.

"New cold warehouse near LAX could help region import perishables"- LA Times

Los Angeles Works — Tue, 29 Nov 2011 12:00:AM PST

New cold warehouse near LAX could help region import perishables

Southern California dominates maritime freight, but Los Angeles' main airport handles far less fruit, vegetable and flower imports than Miami's.

By Ronald D. White, Los Angeles Times

November 29, 2011

Those Argentine blueberries and Colombian roses at your local market probably took a lengthy detour on their way to Southern California.

Chances are, they entered the U.S. through Miami International Airport and arrived in California after a cross-country truck trip that took three days. Now, a new refrigerated warehouse just east of Los Angeles International Airport may help the region grab a bigger — and fresher — slice of the business of transporting items with a limited shelf life.

"There is ample room for Los Angeles to grow in moving perishables," said David A. Herbst, executive vice president of Mercury Air Group Inc., which unveiled the 16,000-square-foot warehouse Monday. The facility "can handle 100 tons a day and bring in $90 million annually in revenues."

Southern California dominates maritime freight, with the ports of Los Angeles and Long Beach handling 40% of the nation's Asian imports. The neighboring ports make up the largest cargo container complex in the U.S., and the international trade industry employs more than 500,000 people in the Southland.

But Miami International, by virtue of being the shortest major air route between the U.S. and South America, is king of perishable products.

Miami International handled 73% of the more than 181,000 tons of fruit and vegetables imported to the U.S. by air last year, according to Los Angeles World Airports, the city department that operates LAX. In flower imports, which are predominantly roses, the Miami airfield was even more dominant, receiving 89% of all U.S. imports last year.

By contrast, LAX came in third in fruit and vegetables, behind Miami and New York's John F. Kennedy International Airport, with a 5.02% share. LAX was second in flower imports, with a 4.91% share.

The region is so far behind that the opening of the new facility increased the area's refrigerated warehouse space for air freight by 35.5%, said Victor J. Adducie, general manager for Apollo Freight, a subsidiary of Mercury Air Group.

That is perhaps why the ribbon-cutting ceremony for Apollo Freight's new refrigerated warehouse was considered important enough to attract a member of Congress — Rep. Janice Hahn (D-San Pedro). Standing in for the traditional ribbon was an ice sculpture, which was smashed using sledgehammers wielded by Hahn and Libby Williams, managing director of Los Angeles Mayor Antonio Villaraigosa's office of economic and business policy.

"This is a first for me: I'm here to open a freezer," Hahn joked, later adding, "This is about jobs and trade and commerce. This is going to help us capture a greater share of the market for perishable items."

The new refrigerated facility is what the region needs if LAX is to improve its meager share of air freight in perishables, said Jock O'Connell, international trade advisor for Beacon Economics.

"A number of airports are trying to take some of this business away from Miami," O'Connell said. "New Orleans has been making a grab. So have Atlanta and Phoenix. This is something that Los Angeles has got to do if it wants to attract this kind of business."

Overall, LAX ranked third in total air freight value last year, at $77.4 billion, behind JFK ($159.6 billion) and Chicago O'Hare International Airport ($110.8 billion), O'Connell said.

The new refrigeration facility was built inside an existing 37,000-square-foot warehouse over three months at a cost of about $900,000. It opened for business in October.

On Monday, Apollo Freight Chief Operating Officer Ivo Skorin took visitors on a chilly tour of the facility, which was holding watermelons, dates, blueberries, cauliflower, tomatoes and several crates of roses.

The area outside the freezers, leading from the loading docks, is kept at a crisp 47 degrees, Skorin said.

"You have to maintain the cold chain throughout," he said. "It's important for the health of the produce."

The flight to LAX from South America is longer than the flight to Miami, but it eliminates the long truck drive across the country. And time is important when dealing with a fast-aging product. "Our objective," Adducie said, "is to get it in here and move it out as fast as possible."

"Hollywood hotel project back on track with new operator"- LA Times

Los Angeles Works — Mon, 28 Nov 2011 12:00:AM PST

Hollywood hotel project back on track with new operator

The nine-story hotel at Selma and Cahuenga was to be known as the Selma but now will be run by Hampshire Hotels & Resorts under its Dream Hotel brand. It is scheduled to open in fall 2013.

By Roger Vincent, Los Angeles Times

November 28, 2011

Long-standing plans to build a $45-million hotel in Hollywood have been revived, the developers said, with new financing and a new operator.

The nine-story hotel at Selma Avenue and Cahuenga Boulevard, formerly to be known as the Selma, was approved by city officials in 2008, but funding for real estate development grew hard to come by as lenders tightened their purse strings in the economic downturn.

"We fought hard to find conventional financing," developer Richard Heyman said. "But conventional doesn't exist anymore, so we turned to finding alternative sources of capital."

The solution, he said, was the federal EB-5 program, which provides green cards to immigrant investors who put up a minimum investment of $500,000 for development in targeted areas. The project, expected to create more than 900 jobs, received federal approval last month to participate in EB-5 financing.

Construction on the 148-room hotel will begin in the spring, and it will open in fall 2013, according to Heyman and his partner Grant King. It will be operated by Hampshire Hotels & Resorts under the New York company's hip Dream Hotel brand.

The design by Los Angeles firm Killefer Flammang Architects includes a rooftop swimming pool, restaurant and lounge to be built atop an existing parking garage.

Heyman's company, Five Chairs, developed Milk Studios in Hollywood and transformed the former Frederick's of Hollywood building on Hollywood Boulevard into the Kress nightclub.

Other Dream hotels are in New York, Miami Beach, Bangkok and Cochin, India. They are intended to be full-service but relaxed luxury hotels, Heyman said.

"In a holding pattern for decades, LAX development gains traction"- LA Times

Los Angeles Works — Mon, 28 Nov 2011 12:00:AM PST

In a holding pattern for decades, LAX development gains traction

Plans to develop parks, educational centers, shopping areas and offices on the northern end of LAX are being resurrected, this time with support from the airport's neighbors.

By Dan Weikel, Los Angeles Times

November 28, 2011

Like other improvements at Los Angeles International Airport, plans to develop 358 acres on its northern boundary have proceeded at a glacial pace. That is, until now.

Sparked by new pressures from the community, City Hall and the federal government, airport officials have resurrected a dormant proposal for the scrubby strip of property that runs along Westchester Parkway, from Pershing Drive in Playa del Rey to Sepulveda Boulevard in Westchester.

Their plan calls for putting playing fields, parks, educational centers, shopping areas and low-rise office buildings on land that was once a residential neighborhood. The houses there were razed decades ago to create a noise buffer for the airport's north runways.

But first, officials with Los Angeles World Airports, the operator of LAX, want to hear what nearby residents think because some of them battled earlier modernization plans, complaining that they had not been adequately consulted.

"Community involvement is critical," said Lisa Trifiletti, the airport's Northside project manager. "We need to bring all the stakeholders together to take a fresh look at this and develop a unified vision."

Airport officials held their first community meeting at Orville Wright Middle School in Westchester earlier this month to let residents get a glimpse of the proposal. The latest concept envisions roughly 2 million square feet of development, less than half of what was called for in a plan approved in 1984.

Airport officials say they want to create a variety of land uses that satisfy the needs of the surrounding community and LAX. The western end would be set aside for open space and recreation while land on the east side closer to Sepulveda would be used for shopping, restaurants, hotels, and offices. Planners want to reserve space in the middle parcels for education, research, civic groups and nonprofits.

Already, Otis College of Art and Design, the YMCA, Westchester High School, the American Youth Soccer Organization and the Westchester Youth Foundation have signaled an interest in some of the property, Trifiletti said.

Residents and community activists who have challenged past expansion plans for LAX praised the Northside proposal and the airport's cooperative approach. They said it contrasts with earlier efforts of mayors Richard Riordan and James Hahn to press ambitious master plans for the airport that would have affected surrounding neighborhoods.

"Working with Lisa Trifiletti is a breath of fresh air. I believe she wants to do the right thing," said Craig Eggers, co-chairman of the airport relations committee of the Neighborhood Council of Westchester/Playa. "If LAWA and all the entities involved are really acting in good faith and discussing this with the community, it is because they want to make it happen. Wow. Isn't this nice?"

Eggers said the lack of transparency and concern for the community helped trigger strong opposition to earlier LAX master plans — a fight that delayed airport improvements for years. A 2006 court settlement finally cleared the way for certain projects but shelved others.

"If this comes to fruition, it will create a more interesting community, increase property values and abate some of the noise," said Harry Stephens, whose family has lived on West 91st Street immediately north of LAX since 1976. "They have been talking about this since I first moved in."

Using millions of dollars in noise abatement grants from the Federal Aviation Administration, LAX bought the Northside property in the late 1970s and early 1980s and tore down dozens of homes. Foundations and old lampposts can still be seen on the empty land.

Since the purchase, little has been done to the property except for the restoration of three holes at the adjacent Westchester Golf Course and the construction of Los Angeles City Fire Station No. 5 and a child care center for employees of Los Angeles World Airports.

Officials said the Northside redevelopment has been delayed by revisions to the plans made over the years, changes in airport priorities after the Sept. 11 attacks, and the FAA's unwillingness to approve the project without more details on the layout and type of buildings.

Work accelerated in 2009 when the FAA conducted a national review of how noise grants were being spent by airports and asked LAX officials to submit a reuse plan by 2010. Pressure to do something has come from the community and City Councilman Bill Rosendahl, whose district includes LAX.

Airport officials want to finish the project's environmental impact analysis by the end of 2012 and seek approvals from the FAA, the airport commission and the City Council in 2013.

"L.A. on course to host record number of visitors"- LA Times

Los Angeles Works — Wed, 23 Nov 2011 12:00:AM PST

L.A. on course to host record number of visitors

The NBA All-Star weekend and the Electronic Entertainment Expo were among the events that helped boost convention room bookings by 51% this year. The city also saw a 16% increase in overseas visitors, officials say.

By Hugo Martín, Los Angeles Times

November 23, 2011

A surge in international visitors and huge crowds attending the NBA All-Star weekend and other downtown events have put Los Angeles on track to host a record number of visitors in 2011.

"We are forecasting to have more visitors come to Los Angeles than any other year we've ever had," said Mark Liberman, president of the Los Angeles Convention and Visitors Bureau, known as LA Inc. "That is great news."

With a 51% jump in convention room bookings this year and a 16% increase in overseas visitors, the bureau estimates that the city will host more than last year's 25.8 million overnight visitors and surpass the 2007 record of 25.9 million. Officials said it was too soon to say exactly what the record will be this year.

Downtown Los Angeles hosted 20 conventions and conferences so far this year, up from 17 events last year. And most of those gatherings drew bigger crowds than previous years.

One of the largest events held at the Los Angeles Convention Center this year was the Electronic Entertainment Expo, an electronic games and gadgetry event that drew 65,000 attendees, compared with about 41,000 attendees when the event was held in Los Angeles in 2010.

Another major event this year was Microsoft's Worldwide Partnership Conference, a four-day gathering in July of the company's staffers and business partners. The conference attracted about 11,000 attendees who booked 53,567 room nights, according to the visitors bureau.

Meanwhile, Los Angeles benefited from being the West Coast's largest international gateway city. Nearly 2 million overseas passengers — particularly visitors from Australia, China, South Korea and the United Kingdom — flew into Los Angeles International Airport in the first eight months of the year, a 16% increase over the same period last year.

The biggest increase in overseas visitors has come from Australia and China, a trend that Liberman attributes to burgeoning economies in those countries. To accommodate Chinese visitors, LAX now offers six daily nonstop flights to China, compared with only three daily flights last year.

"That is a significant increase," Liberman said.

The visitors bureau estimates that tourist spending on hotels, restaurants, taxis, merchandise sales and other expenses has pumped $239 million into the local economy so far this year, compared with $159 million in 2010.

Downtown Los Angeles hotel and restaurant managers say large conventions have boosted business throughout the year. During the Microsoft conference, Bottle Rock, a wine bar and restaurant about two blocks from the convention center, brought in extra staff to serve a party of 150 attendees.

"When the big events come, we staff up," said Corwyn Anthony, general manager of the restaurant.

During the Microsoft conference and an October gathering of designers and developers for Adobe Systems, the Yard House restaurant at L.A. Live brought in extra help to serve groups of 20 to 100 people.

"It was crazy, but in a good way," said Jennifer Weerheim, vice president of marketing for Yard House Restaurants. "We are extra mindful when we know a convention is coming to town."

The Ritz-Carlton and J.W. Marriott hotel complex that opened last year across the street from the convention center has been booked solid on a regular basis in 2011, said hotel spokeswoman Brigid Finley.

"This has been a great year, and 2012 looks like it will be even better," she said. "We are definitely feeling the impact from the conventions."

The bigger conventions pushed the city's hotel occupancy rate to 73%, a nearly 6% increase over last year, according to the visitors bureau. Convention crowds have also helped boost occupancy rates in hotels near LAX, the Westside and the San Fernando Valley.

Los Angeles tourism officials attribute the bigger crowds to an improving economy and the development of L.A. Live, the $2.5-billion entertainment center adjacent to the convention center and Staples Center.

"We have so much to offer," Liberman said. "We have music venues, hotels, restaurants and great weather. L.A. has something for everyone."

For years, Liberman and other local tourism officials have been trying to convince convention organizers across the country that downtown Los Angeles has been transformed from blocks of office buildings and empty warehouses to a walkable entertainment and dining district.

Los Angeles officials tried to make that point last August when the city hosted a gathering of the American Society of Assn. Executives, a group that represents the managers of the largest trade associations, clubs and voluntary organizations in the U.S. and nearly 50 other countries.

Los Angeles officials hope the association managers who attended the meeting will bring more events to Los Angeles.

The largest gathering of the year was the four-day NBA All-Star Game weekend, which drew an estimated 110,000 attendees at Staples Center and the adjacent convention center. The event was last held in Los Angeles in 2004, when the event drew about 100,000 basketball fans.

But the biggest worry among Los Angeles tourism officials these days is an NBA contract dispute that has already led to the cancellation of 33 preseason and regular season home games at Staple Center. Merchants and other tourism officials say they fear that a prolonged dispute will continue to cut into the profits of restaurants and shops that serve fans attending Lakers and Clipper games at the arena.

"I don't know what is going to happen with the season," Liberman said. "But it could obvious impact business throughout downtown."

"Passenger Traffic Up at LAX"- LA Business Journal

Los Angeles Works — Wed, 23 Nov 2011 12:00:AM PST

Passenger Traffic Up at LAX

By Deborah Crowe Wednesday, November 23, 2011

Passenger traffic at Los Angeles International Airport rose slightly last month from a year earlier, as a still struggling economy continued to be a drag on both passenger and air cargo activity, according to figures released Wednesday.

Los Angeles World Airports, the agency that operates the facility, said domestic and international traffic combined were up less than 3 percent in October, with a total 5.1 million passengers flying through LAX.

Roughly 3.7 million domestic passengers traveled through the airport, compared with 1.4 million international travelers, LAWA said.

Air cargo traffic continued to decline, down 10 percent in October. Most of the loss continued to be in freight cargo, with mail cargo down 4.8 percent.

The agency, which did not announce figures on calendar year-to-date basis, said passenger traffic since its fiscal year began in July was off 5 percent from the same period a year earlier. Air cargo activity is down 6.5 percent.

"Port planning to offer incentives to shippers who reduce emissions"- Daily Breeze

Los Angeles Works — Tue, 22 Nov 2011 12:00:AM PST

Port planning to offer incentives to shippers who reduce emissions

By Art Marroquin Staff Writer

Updated: 11/22/2011 05:20:32 PM PST

By early next year, the Port of Los Angeles may offer incentives to shippers who voluntarily agree to significant reductions in cargo vessel emissions.

The developing plan, announced Wednesday, is aimed at making Los Angeles the first North American seaport to join the Environmental Ship Index Program, a global initiative enacted earlier this year by the International Association of Ports and Harbors.

For now, only nine European ports have agreed to implement the program, but officials at Los Angeles Harbor are planning to urge their West Coast counterparts to follow their lead.

"As participation grows, the benefits increase for carriers and communities," said Geraldine Knatz, executive director of the Port of Los Angeles who also serves as president of the International Association of Ports and Harbors.

The program calls for assigning scores to shipping companies who report the types of engines, technology and fuel used on each cargo vessel. Using that information, each ship is given a score based on how well it performs compared to current emission standards and regulations.

While additional greenhouse gas emissions will eventually enter the equation, the program's primary focus is aimed at reducing smog-forming nitrogen oxides, along with sulfur oxides emitted from ship exhaust fumes.

If approved early next year by the Los Angeles Board of Harbor Commissioners, the port would likely offer a series of financial incentives, such as reduced docking fees, to participating shippers.

Early estimates show the program could cost up to $500,000 for the first year, said Chris Patton, assistant director of environmental management at the Port of Los Angeles.

"Are we really getting our bang for our buck?" Harbor Commissioner Sung Won Sohn asked Patton during a meeting held last week.

"This is an intriguing concept," Sohn said. "But I guess I am concerned that we may end up spending money without really changing the behavior of the shipping lines."

Patton said the incentives are not expected to significantly reduce the high cost of low-sulfur fuel, but noted that shipping companies would likely participate so they can publicly claim they have "green" ships.

Rather than offering financial incentives, Harbor Commissioner Robin Kramer suggested that the port distribute a "green seal of approval" to shippers who exceed emission standards.

Harbor Commissioner David Arian said he favors the program because there is no singular, worldwide agency that can currently regulate shipping emissions.

"I think it's a program we have to do," Arian said. "Even though the end result might not be what we want, we have to play what's on the field right now."

The move comes as the Port of Los Angeles celebrates its fifth anniversary of adopting the Clean Air Action Plan, which aims to reduce the risk of cancer from port-related pollution by 85 percent over the next decade.

So far, harmful air emissions from local port-related sources have been cut by 76 percent, officials said.

The ports of Los Angeles and Long Beach enacted the joint environmental plan in November 2006 with an initial goal to combat diesel truck emissions, leading both to the eventual adoption of the Clean Trucks Program.

An updated version of the Clean Air Action Plan adopted last year is now aimed at urging shippers to use cleaner-burning cargo vessels, increase the use of electrical equipment and implement other environmentally friendly features.

"The Port of Los Angeles continues to be a world leader in combating pollution," Los Angeles Mayor Antonio Villaraigosa said in a statement.

"We've had five years of extraordinary success with the Clean Air Action Plan," Villaraigosa said. "And now, we're looking at the next generation of strategies for running the cleanest possible port and improving air quality in Los Angeles and throughout Southern California."

art.marroquin@dailybreeze.com

"Tax Relief Drives Dealership War"- LA Business Journal

Los Angeles Works — Mon, 21 Nov 2011 12:00:AM PST

Tax Relief Drives Dealership War

Beverly Hills, L.A. fight for luxury car brands.

By Jacquelyn Ryan

Monday, November 21, 2011

There’s an auto dealership war raging between Los Angeles and Beverly Hills, but it’s not about Chevys or Hondas. Think dealerships where cars sell for six figures and a 400-horsepower engine comes standard.

The first shot was fired when Beverly Hills BMW moved out of its namesake city and down Wilshire Boulevard to a sleek showroom and service center just east of L.A.’s Miracle Mile in July. Then, this month, Beverly Hills Porsche announced it would move to the Westwood area of Los Angeles.

Both dealerships were lured by a three-year exemption from a levy many businesses loathe: the gross receipts tax.

“L.A. was welcoming us with open arms and the free business tax for three years,” said Seth Waskow, the BMW dealership’s general manager, who said the offer was too good to turn down.

And when Porsche moved, Los Angeles Mayor Antonio Villaraigosa rolled out his most aggressive move yet: a proposal to eliminate the city’s gross receipts taxes for dealerships that sell new cars.

But now, Beverly Hills is firing back.

It’s planning on developing its own incentives early next year and has worked diligently to secure a brand-new Audi dealership and retain its Lexus dealership, which could have moved out also.

Auto dealership wars are nothing new. They have been waged across Los Angeles County for decades as cities offer tax holidays and other incentives to lure dealerships and their sales tax receipts. Glendale’s and Calabasas’ lack of a gross receipts tax has helped attract such dealerships as Acura and Toyota.

Beverly Hills and Los Angeles are taking the fight to the next level. They are competing for dealerships selling luxury cars with price tags topping $100,000 and that generate upwards of $1 million in sales tax annually.

They and other cities have more incentive than ever to engage in the competition, as the recession and state takeaways leave even wealthy municipalities struggling to balance their budgets.

“This is just the beginning of what I call local tax wars,” said Larry Kosmont, chief executive of downtown L.A. economic development advisory firm Kosmont Cos. “All these cities are so tax starved that we are going to see much more competitive strategies to induce businesses (to move) to one’s community.”

Looking outside

So what does it take to lure a dealership? Consider Beverly Hills BMW.

The dealership, owned by BMW of North America LLC, had been in Beverly Hills for several years, and during that term had grown to five scattered properties for sales, servicing and storage. Waskow said that the dealership would have liked to stay, but it was having difficulty getting approved for an expansion and renovation required by the manufacturer.

“We had to look outside the city of Beverly Hills when it looked like it wasn’t going to happen there for us,” he said. “(Los Angeles) helped facilitate our needs through the various city departments.”

So, BMW built a 350,000-square-foot dealership in two buildings across the street from each other near Highland Avenue. The white-panel and glass-clad buildings allow the dealership to consolidate and significantly expand its showroom and service bays. It will keep its old name, even though it’s no longer in Beverly Hills.

The loss of BMW, and its $1.45 million in sales taxes and nearly $200,000 in gross receipts taxes, was a blow to Beverly Hills. But when Porsche earlier this month announced it would be moving, City Hall was blindsided, said Mayor Barry Brucker.

“Had I heard about it, we would have met with the proprietors to solve their problem,” Brucker said. “We would have offered a luxury service center in our entertainment business district right where Mercedes’ service center is, and opened a healthy dialogue.”

Beverly Hills Porsche alone generated $100 million in sales last year, and paid $1 million in sales taxes and about $125,000 in gross receipts taxes to Beverly Hills.

The dealership did not return calls for comment, but at this month’s press conference a representative said a desire to be closer to the Porsche service center on Santa Monica Boulevard near Westwood Boulevard was a key factor.

The losses have prompted Beverly Hills to begin a more aggressive campaign to keep its remaining eight dealerships, including Bentley Beverly Hills, Maserati Beverly Hills and Mercedes-Benz of Beverly Hills.

“Car dealerships are very important assets that not only are compatible with Beverly Hills and its cachet but from a fiscal tax revenue basis, they are important,” said Brucker. “We have some really wonderful properties still available for high-end luxury auto dealers and that’s one of the areas of focus for us.”

This year the city was able to secure Fletcher Jones Audi, owned by Fletcher Jones Management Group Inc. of Las Vegas. The dealership will open next year in space vacated by Beverly Hills BMW.

Meanwhile, Jim Falk Lexus, also on Wilshire in Beverly Hills, has been in talks with the city for more than two years to complete a $20 million expansion. This month, it took a step closer to getting the green light when the Beverly Hills Planning Commission approved the plan.

The dealership wants a 170,000-square-foot building with a nearly 30,000-square-foot showroom and 70 service bays. The plan, which must be approved by the City Council, will allow the dealership to consolidate its three Beverly Hills properties.

Lost taxes

Los Angeles may have gained two of Beverly Hills’ dealerships – and it recently secured the headquarters of two new electric-car manufacturers, Coda Automotive Inc. and BYD Co. Ltd. – but it has seen significant departures as well. In the last 25 years, the city has lost 98 dealerships, leaving it with only 52 today. Among the losses was Bob Smith BMW, which moved to Calabasas from Canoga Park in 2004.

The city has estimated it has lost $57 million in taxes in the process, a figure that caught the attention of L.A. jobs czar Matthew Karatz, who was appointed in July to replace Austin Beutner as director of the city’s Office of Economic and Business Policy. He said one of his first meetings was with Beverly Hills Porsche and that since then city officials have continued to talk to other dealers about how to attract more dealerships.

“What we have heard loud and clear is that the gross receipts tax that we impose on them, which we do on all other industries, is a major impediment,” Karatz said, noting few other cities charge the tax.

Attracting just four or five luxury dealerships would generate enough sales taxes by themselves to make up for the loss of the $3.6 million in gross receipts tax generated by all city dealerships last year, he said.

The city gross receipts tax is $1.27 per every $1,000 of revenue, which amounts to a little more than one-tenth of 1 percent tax on sales. In comparison, the city’s share of state sales tax is much larger, amounting to 1 percent of sales. So last year, the city’s 52 dealerships generated less than $4 million in gross receipts taxes but $29 million in sales tax revenue.

Certainly, the decision to cut gross receipts taxes would leave the city with at least a temporary budgetary hole, but Kosmont said that it shouldn’t be difficult to fill if the plan is successful in attracting high-end dealerships.

“That’s not a far-fetched strategy,” he said. “For a city the size of L.A., it could happen in a short amount of time and the loss of the business taxes is not significant enough to believe that you couldn’t make it up on the sales tax side.”

Beverly Hills now is considering eliminating its own gross receipts tax on dealerships, which is virtually the same as L.A.’s at $1.25 per $1,000 of revenue. The dealerships generated almost $2.7 million in gross receipts taxes last year and more than $27 million in sales taxes.

Brucker said a plan to eliminate the gross receipts tax should be on the City Council agenda in January.

Charles Gill, executive director of the Greater L.A. New Car Dealers Association, said that cities with gross receipts taxes for dealerships should take L.A.’s cue and eliminate them.

“It’s hamstrung dealers for over 40 years and made it difficult to compete with surrounding areas,” Gill said

However, not everyone agrees that cities should be cutting taxes in order to retain or attract dealerships.

Robert Stern, president of the Center for Governmental Studies in Los Angeles, said dealership wars often move dealerships a few miles down the road and fail to benefit the overall local economy by promoting more sales.

“If you look at the region, it doesn’t make any sense, but the cities need as much tax revenue as they can generate,” Stern said. “All it does is basically reduce taxes. So the overall winner clearly is businesses.”

And not everyone likes the idea of giving one industry a break from taxes while continuing to impose them on other industries.

“The problem with any targeted tax cuts is the city is trying to pick winners and losers,” said Kris Vosburgh, executive director of the Howard Jarvis Taxpayers Association. “The best thing to do with the local economy is to reduce the business tax burden on all.”

"L.A. Auto Show revving up driver interest"- Daily News

Los Angeles Works — Sun, 20 Nov 2011 12:00:AM PST

L.A. Auto Show revving up driver interest

By C.J. Lin, Daily News Staff Writer

Posted: 11/20/2011 01:00:00 AM PST

Updated: 11/20/2011 08:54:02 AM PST

Scion offered a bigger, more muscular sports car with its new FR-S, as seen Saturday, Nov. 19, 2011 at the L.A. Auto Show. (Steven Rosenberg/Los Angeles Daily News)

The city that loves cars flocked to the L.A. Auto Show on Saturday, where thousands of potential buyers and gawkers were reflected in highly-polished paint jobs and sparkling rims as they checked out the newest incarnations of their favorite four-wheelers.

Reflecting consumer concerns about fuel efficiency, nearly 20 of the more than 50 new vehicle debuts at the show were 40-mpg-plus cars, including the world debut of the Chevrolet Spark and luxury vehicles such as the Audi R8 GT Spyder, Porsche 911 and Bentley Continental GTC.

Still, another handful were completely electric, such as the futuristic BMW i3 concept car and the DOK-ING XD, a tiny three-seater reminiscent of a sleeker Smart Car, and not much bigger.

One of the most anticipated debuts at this year's L.A. Auto Show is Ford's new Escape, which was featured Saturday, Nov. 19, 2011 at the Convention Center. (Steven Rosenberg/Los Angeles Daily News)

"It's so cute," said Norm Goodkin, of Calabasas. "I'd love to drive it just for one weekend, show friends and bring it back. Hopefully, I'll still be alive."

Goodkin, 68, had come to the show specifically to look for electric cars that could replace his Toyota Prius. He was impressed by the show of new technology, but was a bit disappointed by the selection.

"We think we're a little early, maybe a year, two years early," Goodkin said. "It looks like the technology isn't quite there yet. The range is small, the cars are small."

The number of cars displayed that run on some form of electricity has increased more than 25 percent since last year's show, and cars that can get more than 40 miles a gallon have doubled, according to show organizers.

More than 1,000 cars from manufacturers around the world were parked on the floor for consumers to see up close.

For Greg Johnson, fuel efficiency was likely the last thing on his mind.

The Westminster resident had come to the show to check out high performance sports cars, including a $1.5 million Aston Martin. But his dream car was the more affordable Hyundai Genesis coupe built for the racetrack.

"This car is too cool," said Johnson, laughing with glee after he rattled off a list of car specs and ensconced himself in the driver's seat.

Still, many more came just to fuel their love of cars and get a firsthand look at models they've only read about on blogs and magazines.

Alejandro Valdivia, 37, not one to let baby-sitting get in the way of his yearly trip to the Auto Show, brought along three neighborhood kids that he was looking after for the day.

"I brought them so they can experience this because I love coming," Valdivia said. "I look forward to coming every year. I just love cars so much."

The show continues through Nov. 27, and is open Thanksgiving Day.

Chrysler emphasized its muscle-car pedigree with a retro-looking Dodge Challenger on Saturday, Nov. 19, 2011 at the L.A. Auto Show at the Convention Center. (Steven Rosenberg/Los Angeles Daily News)

"Electric car makers Coda, BYD plug into LA"- 89.3 KPCC

Los Angeles Works — Sat, 19 Nov 2011 12:00:AM PST

Electric car makers Coda, BYD plug into LA

Shereen Marisol Meraji | Molly Peterson

Molly Peterson/KPCC

CODA Automotive, now based in west LA, will be at the Auto Show with a much-larger, similarly-slick display that resembles what the company's installed in the Century City mall to reach out to the public.

In the last few months, two electric car makers set down roots for their U.S. headquarters here in Los Angeles. China-based BYD opened up shop here in October, and Coda Automotive just moved from Santa Monica to West L.A. with a politician-studded grand opening. Mayor Villaraigosa called the move a victory for green business, saying Los Angeles will be the green car capital of the world.

One of those EV makers will put its battery-powered jalopies on display at the L.A. Auto Show when it opens Friday, and one won't. KPCC's business reporter Shereen Marisol Meraji and environment reporter Molly Peterson take a look at marketing strategies for both green businesses.

Chances are, you've shared a stretch of congested freeway in Los Angeles with an ice-blue BYD F3DM. L.A. housing inspectors, including Lucito Bacierto, drive them around to check on Section 8 units across the city.

"It's so funny, nobody knows what a BYD means. It's like, what’s a BYD? It's Build Your Dreams," said Bacierto. "It's a new vehicle made in China."

The Build Your Dreams F3DM (DM stands for dual mode) is, in fact, a pretty non-descript compact car. It actually looks like a dated Toyota Corolla with zero-frills and lots of ashtrays. And, like Bacierto said, it's made in China. BYD is a Chinese technology firm that makes batteries, solar panels, LED lights and electric cars.

Bacierto showed off its capabilities, turning the key in the ignition: "I have 100 percent battery life, almost half a tank of gasoline. This gasoline has almost been here since three weeks ago," he said, pointing to the gauge.

Bacierto said his BYD hybrid plug-in can roll all-electric from the L.A. Housing Authority in Koreatown to San Pedro before it switches over to its gas engine – about 30 miles. He fills up the 8-gallon tank once a month.

The L.A. Housing Authority has been using 10 BYD cars as a part of a pilot program for nearly a year, and it just announced an extension.

Bacierto likes his BYD fine for work but he wouldn't buy a plug-in hybrid himself. He said the price point is still way too high for the average consumer.

"Aw, man, I'll be broke!" he says. And Bacierto really loves his Toyota Tacoma.

"Good, good good, looks good. What are you going to do with the logo?"

BYD America's vice president of strategy Sandy Itkoff oversees construction workers at its brand new North American headquarters on Auto Row in downtown L.A.

"We will have a car here, a bus here, we will have all our products here," she says. But she adds, "this is not a consumer showroom location. This is for dealers and for people who are purchasing on a different level."

She's talking about purchasing cars for fleets. That's where BYD wants to make inroads in North America. So don't look for a BYD at the L.A. Auto Show. It won't be there.

Micheal Austin, the vice president of BYD America, says it's focusing on fleets and not consumers for a couple of reasons. One, because the housing inspector we met earlier, Bacierto, is like most Americans: curious about electric cars, but not convinced.

"We would love to see the adoption faster," Austin said. "We believe it probably will be first in rental cars and car-sharing models, and maybe even on universities where students want to share cars but don't want to own one. Electric vehicles are perfect for that kind of application."

Austin says the second reason is infrastructure – there aren't enough public charging stations. And the third is the cost of what American consumers want. What they want, says Austin, are long-range EVs, "not just a niche commuter vehicle, a vehicle that can go down the interstates. Americans love to do our long-range travel, we want to be able to do that with electric vehicles. That’s BYD's vision, a mass market vehicle."

The BYD's e6 might be that vehicle. The long-range, all-electric crossover goes 180 miles on a single charge. It's on sale now in Zhenzhen, China after taxi fleets had used it for more than a year.

But the e6 costs nearly $60,000 – still $40,000 after Chinese government rebates. Definitely not priced for the Chinese or American mass market.

But BYD's Micheal Austin isn’t worried. His company sells more than than just EVs.

"You start with renewable power and store it, you distribute to electric vehicles or to your home LED lighting systems, then you have a truly zero emissions ecosystem. It’s hard, just selling only electric vehicles."

Tell that to homegrown electric car manufacturer, Coda. This summer they put out a video asking the question, "What are we dependent on?" And they included real peoples' answers: "Gas and oil to power my car. TV. Power, energy, my car, prepackaged foods, manufactured foods..."

Putting the video out on the 4th of July, Coda called it “End Dependence Day.” The video is part of a strategy that rests on the belief that people are ready to change to the charge.

That video and all of Coda's message came direct to Century City consumers a couple months back, parked just around the corner from Louis Vuitton in the Westfield Mall. Aqua blue and yellow graphics in the window lured people in to a pint-sized retail space. Name-tagged "guru" sales associates were friendly but not aggressive.

Sophie Nenner came from Paris, where she owned an electric bike shop. She explained the fast battery charging to a visitor. "Those are two chargers, and they're going to charge the battery in six hours when it's drained. So let’s say you're doing 25 miles a day, it’s going to charge in one hour only."

The emphasis is on opening a discussion, said Alex Mitchell, Coda's vice president for retail sales. He said the store exists because people need a place to poke around, where they can learn about a Coda before they write a check for one.

"That decision process isn't in a 30-minute increment," he said. "It's usually made over the course of time. And I think that’s why we, with this Experience Center, have designed it to be a place that encourages repeat visits."

Foot traffic was good, Mitchell says. Kind of like the L.A. Auto Show, where Coda has a spot again this year. The decor looks the same: raw wood; raw battery trains; fancy, graphically-savvy map of where you can drive. But what reels in mall-goers might not sell a Coda in a crowded and fossil fuel-dominated convention hall.

A dozen people crowded into Coda's Century City spot one Wednesday last month. They listened to the Coalition for Clean Air’s Martin Schlageter explain how combustion engines make air pollution.

"Smog is chemicals in the air," Schlageter said. "It combines volatile organic compounds, or VOCs, with NOX, oxides of nitrogen, and that's basically what happens when you combust fossil fuels. Cars are the number one source of the VOCs and the number two source of the NOX in the Los Angeles region."

In order to sell cars, Coda is selling the clean car concept as creatively as it can. Sales and marketing chief Thomas Hausch said as a start-up, Coda doesn't have money to burn on national TV ad buys. "It really is a challenge just to get the brand across, and we're quite confident that we can achieve it for the number of customers that we’re targeting," he said.

The fans of plug-in cars are salesmen themselves, said Hausch, but they're already on board; reservations to buy new Codas filled up well before production started this week. But Coda needs more than just the super fans.

In another bid to open up its market, it just lowered its sticker price to $39,000, which puts the drive-home price under $30,000 for buyers cashing in federal and state rebates.

"Even if you know that the total cost of ownership after five years might be as affordable as a regular internal combustion car that size, the customer still has to up front pay a significant amount of money to own the vehicle, and only over the years with the huge savings in gasoline and oil changes do you get the money back," said Hausch.

Unlike BYD, Hausch is confident the wider L.A. market is ready for Coda's logic. And he says L.A.'s infrastructure is ready for electric cars now. "There are fast chargers, available, there are parking spots available. If you go to our Westfield Mall, if you park in the first level there are six chargers there."

Of course, Coda put the chargers there. In the bowels of the Century City mall, gurus like Sophie Nenner offer test drives – hundreds so far.

KPCC's Molly Peterson went out for one too. Her Volvo’s only got 207,000 miles on it, so she's not really in the market. But that's OK with Coda. Right now, even word of mouth counts as a sort of sale.

"California employers add 25,700 workers in October"- LA Times

Los Angeles Works — Fri, 18 Nov 2011 12:00:AM PST

California employers add 25,700 workers in October

The state's unemployment rate edges down to 11.7% from 11.9% in September in the third straight month of job growth.

By Marc Lifsher, Los Angeles Times

8:20 PM PST, November 18, 2011

Reporting from Sacramento

California employers added more than 25,000 workers to their payrolls in October, the third straight month of job growth, easing fears that the state's economy might tip back into recession.

Payrolls increased by 25,700 in October, according to figures released Friday by the Employment Development Department. That's on top of 39,200 jobs added in September and 21,100 in August.

The October unemployment rate fell to 11.7%. That's a modest decline from September's 11.9% jobless rate and well above the national rate of 9%. Still, it's a marked improvement from California's post-recession peak of 12.5% a year ago.

The state posted broad growth across seven of 11 industry sectors, led by professional and business services, which added 17,300 positions last month. That was followed by education and health services with 7,400 new positions and financial activities with 4,000. Even the beleaguered construction trades added 2,100 jobs in October.

Lenny Truong, 23, recently snagged a warehouse job at an Ontario health food and vitamins company after just two weeks of job hunting.

"It's a really good company, union with benefits," the Claremont resident said. "I actually think that [the job market] is getting a little better."

Since October 2010, California has added 239,000 jobs. Regions including the Silicon Valley, San Francisco Bay Area, San Diego, Orange and Los Angeles counties and even the hard-hit Inland Empire all added workers.

"When you look at all of the indicators that presage a recession, we don't find any that tell us we're going into a second recession," said Jerry Nickelsburg, an economist with the UCLA Anderson Forecast.

But all bets could be off if the current turmoil in the Eurozone throws the continent into recession, economists said.

"Europe is the biggest risk, though it's not on our radar screen yet," said Scott Anderson, a senior economist who tracks California for Wells Fargo Bank.

California seems headed for a gradual recovery, barring a European meltdown or an implosion in a fractured Congress that's unable to agree on ways to cut government spending, experts said.

But the Golden State is threatened by its own revenue shortfalls that could trigger severe cuts in spending on schools and other government services next year, Chapman University economist Esmael Adibi said.

Still, there's no longer cause to fret about the economic effects of the Japanese earthquake and tsunami and the shutdown of the Libyan oil industry, he said.

"We're moving definitely in the right direction," Adibi said.

The Silicon Valley posted the state's strongest jobs expansion over the last 12 months at 3.2%, followed by San Diego at 2%, San Francisco 1.8%, Orange County 1.5% and the Inland Empire 1.4%. Los Angeles County posted the weakest job growth at 0.5%.

In Los Angeles County, the unemployment rate fell to 12.2% in October from 12.4% in September. The county has added 19,000 jobs since October 2010, with the biggest gain, 8,100 jobs, coming in information, which includes motion picture production and distribution. Private education added 6,600 jobs over the same period, followed by tourism, 6,200; administrative services, 6,100; and healthcare, 5,100.

Los Angeles should see an uptick with the onset of the holiday shopping season, said Kimberly Ritter, an associate economist with the Los Angeles County Economic Development Corp. She predicted that local retail sales could increase up to 3%.

"It's one very small step at a time," Ritter said.

Momentum finally is sweeping inland to Riverside and San Bernardino counties, regional economist John Husing said.

"In August, growth occurred in the Inland Empire for the first time since the recession started," he said. "We're the last area in the state to actually turn positive."

But California has a long way to go to make up for the estimated 1.3 million jobs that disappeared in the recession of 2007-09, the deepest economic downturn since the Great Depression of the 1930s.

"For the moment, the state's economy is moving toward slowly recovering the jobs lost in the recession and ever so slowly reducing the number of unemployed residents, which still totals over 2 million," said Stephen Levy, director of the Center for Continuing Study of the California Economy in Palo Alto.

"Housing starts in the U.S. rose 5.1% in October"- LA Times

Los Angeles Works — Fri, 18 Nov 2011 12:00:AM PST

Housing starts in the U.S. rose 5.1% in October

The West, with a 16.5% drop, was the only region without an increase in construction of single-family homes. One analyst says the overall gain is a sign that numbers will be good the rest of the year.

By Alejandro Lazo, Los Angeles Times

November 18, 2011

Construction of single-family homes picked up nationally last month but not in the West.

Single-family homes were started in October at an annual rate of 434,000, a 5.1% increase over the previous month, the Commerce Department said Thursday.

The report follows news of improved builder sentiment released the day before, with an index measuring builder confidence reaching its highest level since May 2010. Economists called the jump in new single-family-home starts a positive sign, as the nation's beleaguered real estate market was at least showing life.

"This was a good report," Patrick Newport, U.S. economist with IHS Global Insight, wrote in a note to clients Thursday. "It has supporting evidence that the single-family market is finally getting off the mat and that the multifamily segment is continuing to make small strides, and that we should expect good housing starts numbers the rest of this year."

The West was the only region that didn't see an increase, falling 16.5%. Single-family housing starts were up 17.2% in the Northeast, 9.7% in the Midwest and 1.6% in the South.

Overall housing starts — including the volatile apartment building sector — fell 0.3% in October from September, to a seasonally adjusted annual rate of 628,000. The decline was attributed to a drop in apartment building construction.

Permits issued, another measure of housing activity considered less volatile than starts, also showed improvement last month. New permits in October were at a seasonally adjusted annual rate of 653,000, 10.9% above September and 17.7% above October 2010.

"L.A. Auto Show to debut more than 40 vehicles"- LA Times

Los Angeles Works — Tue, 15 Nov 2011 12:00:AM PST

L.A. Auto Show to debut more than 40 vehicles

By Angel Jennings

2:58 PM PST, November 15, 2011

More than 40 vehicles will be unveiled at the 2011 L.A. Auto Show, many of them for the first time in the United States.

Ford is leading the pack by introducing four new vehicles at the show, which opens to the press on Wednesday and Thursday. The Dearborn, Mich., automaker will release the next generation of its Escape SUV, Focus sedan, and a five-door Fiesta concept car.

Among the eco-friendly and fuel-efficient vehicles that the public has grown to expect at the L.A. event is a surprising three-wheeled hot rod from Morgan Motor Co.

The L.A. Auto Show will open to the public on Friday at the Los Angeles Convention Center and will run until Nov. 27. Here's a list of cars that will be unveiled.

North American debut

Audi S6
Audi S7
Audi S8
Audi R8 GT Spyder
Bentley Continental GTC
BMW i3 Concept
BMW i8 Concept
Dodge Charger SRT8 Super Bee
DOK-ING XD
Fiat Abarth 500
Ford Fiesta ST
Ford Focus ST
Honda Insight
Jaguar C-X16 Concept
Jeep Liberty Arctic
Jeep Wrangler Arctic
KIA GT concept
Land Rover DC100 concept
Land Rover DC100 Sport concept
Lotus Exige R-GT
Mastretta MXT
Mazda CX-5
Mercedes-Benz C63 AMG Coupe Black Series
Mercedes-Benz SLS AMG Roadster
Morgan 3Wheeler
Volkswagen Beetle R
Volvo Concept You

World debut

Cadillac XTS
Chevrolet Spark
Chevrolet Camaro ZL1 Convertible
Ford Escape
Ford Flex
Honda CR-V
Honda Fit EV
Hyundai Azera
Infiniti JX Crossover
Infiniti IPL G Convertible
Lincoln MKS
Lincoln MKT
Mercedes-Benz ML63 AMG
Subaru BRZ Concept – STI
Volkswagen CC
Volvo C70 Inscription

"LAX expected to be busiest U.S. airport over Thanksgiving weekend"- LA Times

Los Angeles Works — Mon, 14 Nov 2011 12:00:AM PST

LAX expected to be busiest U.S. airport over Thanksgiving weekend

Orbitz, one of the nation's busiest travel websites, determines the annual ranking by calculating ticket sales on the site for the nation's top 50 airports for Nov. 23 to Nov. 27. O'Hare in Chicago is expected to fall to No. 2.

By Hugo Martín, Los Angeles Times

November 14, 2011

Los Angeles International Airport is about to claim a title that may spell trouble for holiday airline passengers this month.

LAX is expected be the nation's busiest airport for the Thanksgiving holiday weekend, according to ticket sales on Orbitz, one of the nation's busiest travel websites. The website determines the annual ranking by calculating ticket sales for the nation's top 50 airports for the weekend, which this year is Nov. 23 to 27.

Officials at LAX said they have yet to tally all ticket sales for the airport for the long weekend. Still, they said LAX typically ranks among the nation's three busiest airports during the holidays.

From Nov. 19 to Nov. 28 of last year, 1.53 million passengers flew in and out of LAX, and airport officials predict the airport will surpass that total this year.

Based on the Orbitz ranking, LAX takes over at the top spot, replacing Chicago's O'Hare International Airport, which is expected to fall to second place, ahead of Orlando International, San Francisco International and Boston's Logan International airports. Orbitz declined to say how many tickets it sold for each airport.

But there is some good news for Southern Californians looking for an airport with more elbow room: The Orbitz ranking found that John Wayne Airport in Orange County, about 40 miles southeast of LAX, will be one of the nation's three least busy major airports for the holiday.

The other major commercial airports in the region, Bob Hope Airport in Burbank and Ontario International Airport, did not make Orbitz's list. But passengers should find those airports easier to maneuver than LAX.

Last year, Bob Hope Airport served nearly 4.6 million passengers, down 22% from the pre-recession peak of 2007, while Ontario served 93,717 passengers last year, down 36% from 2007, according to airport statistics.

American Airlines offers VIP check in

Another way to avoid crowds at LAX is to take advantage of a new check-in service that lets VIP passengers on American Airlines zip into the terminal through a special entrance leading to a "premium" security line.

But the new service is not available to the average passenger.

The new Flagship Check-in is offered by American Airlines only for its most valued passengers. That includes first-class passengers on long-haul flights and members of the airline's Concierge Key and Five Star Service programs, which are available to high-spending passengers who travel often and fly in the airlines' premium seats. The new check-in gate is in the east end of Terminal 4.

Passengers using this service still go through the same security process as everyone else, but they have a faster and more exclusive line to get there. Other airlines at LAX offer similar services for VIP passengers, but American officials say the Flagship program is different because it offers one-on-one service for each flier.

"Flagship Check-In provides the exclusivity and seamless service that our high-end customers value," said Virasb Vahidi, American's chief commercial officer.

The new service, which began this month, would be ideal for Hollywood celebrities who want to race into the terminal and avoid paparazzi who case the airport, according to an American Airlines spokesman.

LAX is the first airport where American has launched the service, but the airline plans to expand it to other airports next year.

Also next year, the Transportation Security Administration plans to expand to American Airlines at LAX a pilot program that lets those passengers who pre-qualify to speed through security lines without removing their shoes or coats by submitting background information in advance.

Hotel lets guests walk for discount

A hotel in Westwood is rewarding guests who defy the stereotype that Angelenos don't walk.

Hotel Palomar last month began rewarding guests who walk at least 10,000 steps a day with a 50% discount on their next hotel stay. To record the achievement, the hotel hands out free pedometers and walking maps to guests who sign up for the Walk This Way package.

The package, which will be offered until June 30, also includes a $20 credit for food and drinks at the hotel. The deal is also available at the Hotel Palomar San Diego.

For the average person, 10,000 steps is about five miles of walking. It's a target that first gained popularity in Japan in the 1960s as a daily goal to remain healthy and active.

The Hotel Palomar Los Angeles suggests that guests who wish to walk 10,000 steps circle nearby Holmby Park or the UCLA campus.

But if the weather turns gloomy or guests fear venturing into L.A.'s crowded streets, hotel staff members said they would allow guests to carry out the 10,000-step challenge on a treadmill in the hotel's gym.

"Merchants join in bid to give Westwood Village a brighter future"- LA Times

Los Angeles Works — Sun, 13 Nov 2011 12:00:AM PST

Merchants join in bid to give Westwood Village a brighter future

A new business improvement district is cleaning up the neighborhood, which has struggled economically for years. UCLA is a contributor. 'You feel a good energy,' says one longtime store owner.

By Martha Groves, Los Angeles Times

November 13, 2011

After years of watching Westwood Village deteriorate into a zone of overgrown trees and empty storefronts, retailers here said they saw a glimmer of hope recently as cleaning crews began power-scrubbing the district's grimy sidewalks.

A new business improvement district — Westwood's first in nearly a decade — has begun having trash picked up, freshly trimmed branches decked with lights and thousands of inky chewing-gum splotches scrubbed off the walkways.

The district has also employed a cadre of polo-shirted "public safety ambassadors" — some of whom patrol the village on Segways — to provide directions to visitors and roust the neighborhood's entrenched ranks of homeless people. The next step will be nudging merchants to move their "50% off" signs and clothing racks indoors.

"You feel a good energy," said Wendy Shane, co-owner of Shanes Jewelry on Broxton Avenue. "We have been on this street for 40 years, and I don't think Broxton has ever looked so good."

Shane and other Westwood Village boosters say they also look forward to the planned opening next July of a Target store that promises to lure many of UCLA's 70,000 students and employees.

Until recently, good news had been in short supply.

Since its heyday in the 1970s and '80s, Westwood Village has struggled economically. Limited parking, the rise of Internet commerce and a widely publicized fatal gang shooting in 1988 quieted much of the area's commercial buzz.

Today, Westwood Boulevard, the main drag, has a 30% vacancy rate, according to a report by a UCLA think tank, while the rate in the village overall is 22%, far higher than in Beverly Hills' Golden Triangle, Westfield Century City shopping center or Santa Monica's Third Street Promenade.

A previous effort to create a business improvement district ended disastrously. That failed district collected $2.5 million in assessments for fiscal years 2000 through 2002 but ended up in the red, unable to account for hundreds of thousands of dollars. It was discontinued in October 2002. A 2004 city audit blamed the city clerk's office for failing to supervise the organization and suggested that funds had been spent improperly.

Despite some lingering bitterness over that debacle, village property owners agreed to create the new business improvement district and provide it with an annual $1.3-million budget.

"We're here to make sure Westwood Village is clean and safe, so people are comfortable coming here," said Andrew Thomas, executive director of the new Westwood Village Improvement Assn.

Westwood Village opened in 1929 as a carefully planned Mediterranean-themed adjunct to the new southern branch of the University of California. Since then, UCLA has grown and developed its own commercial offerings, which compete directly with Westwood Village businesses.

Though this has inspired some resentment among Westwood business owners, the university says it strives to be a good neighbor. Jack Powazek, UCLA's administrative vice chancellor, said he worked closely with other stakeholders to get the improvement district going and serves on the board. Although exempt under state law, UCLA is contributing $38,000 a year.

Also, UCLA's cityLAB, a think tank within the Department of Architecture and Urban Design, has gotten involved in an effort to revive Westwood. Architects presented two ideas for the village at a recent symposium at the Hammer Museum in Westwood.

The plans envision residential towers mixing with commercial and cultural entities in a pedestrian-oriented neighborhood well served by public transit — including, eventually, a subway. (For more information, visit the cityLAB website)

"We know Westwood and UCLA are tied together," Powazek said. "We're putting some money where our mouth is during very difficult financial times."

"L.A. gets auto-show circuit in gear"- LA Times

Los Angeles Works — Sat, 12 Nov 2011 12:00:AM PST

L.A. gets auto-show circuit in gear

The Los Angeles Auto Show is the first of its kind each model year. It's where carmakers hope to grab the attention of California's eco-conscious drivers as well as those who care more about speed and styling.

By Jerry Hirsch, Los Angeles Times

November 12, 2011

The Los Angeles Auto Show is the first major North American auto show of the new model year. It is known for automakers introducing hybrid, fuel-efficient and electric vehicles that grab the attention of California's eco-conscious drivers. It's also the place for big, splashy debuts of sports cars, the kind of vehicles that people fantasize driving on Pacific Coast Highway.

This year's show, which opens to the public Friday, will have plenty of both.

Audi plans the American debut of its S line of sports coupes. Porsche is bringing the new 911, and Infiniti plans the global debut of the sporty JX crossover. Honda plans global debuts of its Fit electric vehicle and the next-generation CR-V small crossover. Chevrolet is unveiling its tiny Spark city car and a new high-powered Camaro convertible. More conservative drivers will want to look at Hyundai's new six-cylinder Azera sedan.

Here are details about the show:

When: Nov. 18 to 27, including Thanksgiving Day

Where:Los Angeles Convention Center, 1201 S. Figueroa St., 90015

Admission: Adults: $12. Children 12 and under are free when accompanied by an adult.

Parking: $12 in Convention Center garages.

Five cars to check out at the Los Angeles Auto Show:

Infiniti JX: Infiniti's move to compete with successful luxury crossovers such as the Acura MDX and Audi Q7. This will have what Infiniti says will be the world's-first backup collision intervention system — it will detect objects behind the SUV and automatically apply the brakes if the driver ignores the warning bells and visual alerts.

Chevrolet Spark: The Spark is a five-door, four-passenger hatchback that Chevrolet sells everywhere but the U.S. Now the automaker believes American consumers will buy the minicar, which rivals the Fiat 500 and Smart Fortwo. A gas sipper, it will be powered by a 1.2-liter four-cylinder engine that delivers 83 horsepower. The Spark will come standard with a five-speed manual transmission and optional automatic.

BMW M5: This is BMW's monster sedan, with so much power that the automaker talks about zero to 124 mph (13 seconds) instead of the standard zero to 60 measure (a little more than four seconds.) It has a 560-horsepower V-8 and a head-up display that projects important information onto the windshield directly in the driver's field of vision. Don't ask about fuel economy.

Hyundai Azera: Hyundai is debuting the second generation of its biggest front-wheel-drive sedan. The full-size Azera gets updated styling cues from its smaller Elantra and Sonata siblings as well as a 293-horsepower, six-cylinder engine rated at 23 miles per gallon in combined driving. Features such as nine airbags and leather seats come standard.

Volkswagen Beetle R: The German automaker is calling this model "a Beetle with more juice." It makes cute aggressive with 20-inch alloy wheels and engine-cooling vents on each side of the hood. VW talks about this car as a "concept" for now, but it introduces an R version of the Golf for sale in the U.S. in January, and the Beetle R also could find its way into showrooms.

"Electric carmaker CODA opens global HQ in LA"- CBS News

Los Angeles Works — Thu, 10 Nov 2011 12:00:AM PST

Electric carmaker CODA opens global HQ in LA

LOS ANGELES — Electric carmaker CODA Automotive Inc. opened its global headquarters in Los Angeles on Thursday, strengthening California's bid to become the hub of clean-energy business the state hopes will create thousands of new jobs.

CODA, a startup company that began in Santa Monica, officially unveiled a 100,000-square-foot engineering, research and sales center that has more than 200 employees.

"It is a milestone. We started with a few people in a Santa Monica hangar just about four years ago," CODA spokeswoman Larkin Hill said.

"Dynamic innovation is a key building block of California's 21st century economy," Gov. Jerry Brown said at the ceremony. "Car companies like CODA are investing in California because our laws encourage electric cars and recognize the paramount importance of reducing oil dependency."

"We see it as a catalyst that will usher in new jobs, more investment, and a stronger clean-tech industry to Los Angeles," Mayor Antonio Villaraigosa said.

CODA is working on a five-passenger sedan with a range of up to 150 miles per charge. It will be manufactured in China and final assembly will take place at a plant in Benicia, Calif. The car will sell for $44,900, or $32,400 after federal and state credits for electric vehicles.

The company plans to begin sales in California this year and said it expects to sell 10,000 to 14,000 vehicles in its first 12 months.

CODA is one of several small California startups, such as Tesla Motors Inc. and Fisker Automotive, that are developing all-electric and hybrid cars as governments offer tax breaks and subsidies to promote alternative energy.

CODA chose California for its global headquarters partly because the city offered about $1.4 million in financial incentives and because of the pro-clean energy environment, which includes a $2,500 state rebate for buyers of electric vehicles, Beanum said.

"We believe California is the epicenter for the electrification movement," he said. "It's the highest concentration of what are often called early adopters. We believe that California's political leadership ... (is) dedicated to creating the infrastructure, regulatory environment and policies needed to support mass adoption."

Los Angeles, saddled with financial problems and job losses, has had some success in using financial incentives and its movie star image to lure clean-energy businesses.

Chinese electric carmaker BYD Co. opened its North American headquarters in Los Angeles three weeks ago, although it won't begin selling to consumers until next year.

CODA's other competitors include Nissan Motor Co.'s Leaf and General Motors Co.'s Chevrolet Volt.

Success might lead to more assembly plants, said Forrest Beanum, CODA's vice president of government relations and external affairs.

"This is potentially thousands and thousands of jobs," Beanum said.

CODA's strategy is interesting in that it concentrates the company's expertise on the car's powertrain and battery and puts it in a body that can be inexpensively made in China, but whether the car will sell is unclear, said Aaron Bragman, an auto analyst for IHS Global Insight in Troy, Mich.

"The product itself has been viewed with some skepticism," he said. "It seems to do what they say it will in terms of its range or performance but it looks like a 15-year-old Japanese sedan," Bragman said.

The market for electric vehicles is uncertain because the cars currently are pricey and in short supply, he said.

In addition, CODA and other small producers also lack the name recognition, national distribution systems and car manufacturing experience of larger competitors such as GM, he said.

"Are consumers going to spend what comes down to a very large amount of money with a company that is basically unknown?" Bragman asked. "They simply don't have the reach, the deep pockets, the experience or the legacy of the established automakers."

"Mayor backs tax cut to lure car dealers"- Daily News

Los Angeles Works — Wed, 09 Nov 2011 12:00:AM PST

Mayor backs tax cut to lure car dealers

By Gregory J. Wilcox

greg.wilcox@dailynews.com

818-713-3743

Staff Writer

Bert Boeckmann, president and owner of Galpin Motors, is looking forward to the tax savings that could result from Mayor Antonio Villaraigosa's request that the L.A. City Council exempt all of the city's auto dealers from the business tax. Boeckmann was photographed Tuesday, Nov. 8, 2011 at his Ford dealership in North Hills. (David Crane/Daily News Staff Photographer)

In an attempt to lure new vehicle dealers to Los Angeles, Mayor Antonio Villaraigosa on

Tuesday called for exempting them from the city's business tax.

The move could cost the city $3.6 million - the amount received from dealers in gross receipts tax last year - but officials maintain it could be offset by new sales tax revenue

generated by luring new dealers.

Last year, the city took in $29 million in sales tax revenue from its existing dealers.

"For too long, L.A.'s business tax has driven auto dealers outside the city limits," the mayor said. "But there are smart reforms we can make right now."

Los Angeles has lost 100 new vehicle dealers over the past 25 years, many who moved to cities that did not have a business tax, according to the Greater Los Angeles New Car Dealers Association.

Villaraigosa spoke at Beverly Hills Porsche, which is planning to relocate to Los Angeles - only the second new car dealer to move to the city in the last quarter century.

The mayor said he would support an ordinance granting the tax relief that will be jointly introduced next Tuesday by City Councilman Mitchell Englander and Council President Eric Garcetti.

The two council members signed their tax relief plan on the windshield of a black 2012 Porsche 911.

Englander is confident that the dealer tax relief plan will be passed and in place by year's end.

"I haven't taken the council's temperature but it's a no-brainer. I don't see this one getting hung up on politics," he said.

The mayor's Office of Economic and Business Policy helped persuade Beverly Hills Porsche to come to Los Angeles by pulling department directors together and speeding the permitting process. The business is already eligible for temporary business tax relief for new firms moving into the city.

"L.A.'s business tax is a big reason why many dealers have chosen to leave Los Angeles. When you can go to a nearby city like Glendale with no business tax, it doesn't make sense to stay in Los Angeles. It's time to change this," the mayor said.

The dealership will be moving to the 10950 block of Santa Monica Boulevard in Westwood. And while it is moving out of the 90210 ZIP code, the name will remain the same.

The new showroom will be built near where the dealership already has service and parts facilities.

"I say: Give Beverly Hills the name - we will happily take the sales tax," Villaraigosa said.

City officials said Beverly Hills Porsche did $100 million in sales last year, an amount which would have brought in approximately $1 million in sales tax to the city's general fund.

Dealership owner Geoffrey Emery could not be reached for comment.

But Beverly Hills city officials didn't spend much time spinning their wheels over the sports car retailer's move.

Beverly Hills spokeswoman Therese Kosterman said in an email that many car dealerships thrive in the city. And Audi Beverly Hills is set to open in January.

"While we are always disappointed when a business leaves the city, we are delighted that other businesses compatible with the Beverly Hills entertainment brand, such as Playboy, MGM and Google, have chosen to locate here just within the past year," she wrote.

The city tax puts dealers in Los Angeles at an unfair advantage when competing for sales with businesses in municipalities that do not have a tax.

It is especially important when it comes to fleet sales.

Since July 2010 the city has spent $60 million on its vehicle fleet, Englander pointed out.

"And not one of those purchases was in the city of L.A. because of the business tax they had to add to the cost of each car," he said.

As a result the city lost out on $650,000 in sales tax revenue, he said.

Bert Boeckmann, president of Galpin Motors, said it's about time the city gave the auto retailing sector a tax break.

"The dealers in L.A. have been working for years to get some reduction on the tax," said Boeckmann, who is on the dealer association board of directors.

Boeckmann said he will pay more than $500,000 in gross receipts tax this year and some of that is added to the price of a car.

Eliminating it could boost sales.

"I think it's something that will be a benefit to the city. It's the sales tax that's the critical part of it. That's where the (city's) dollars are," he said.

"Aircraft maintenance management firm expands to Van Nuys"- Daily News

Los Angeles Works — Tue, 08 Nov 2011 12:00:AM PST

Aircraft maintenance management firm expands to Van Nuys

By Gregory J. Wilcox, Daily News Staff Writer

Posted: 11/08/2011 01:00:00 AM PST

Convinced that the region's business aviation sector is about to take off, a Chicago-based aircraft maintenance management company is expanding to Van Nuys Airport.

Chicago-based Jet Support Services Inc. is looking for an executive to run its new Western operation, which will be based at the busy general aviation airport.

"California is a big market," said Louis C. Seno, JSSI's chairman and CEO.

There are more than 2,000 business aircraft in the state with more than 100 located at Van Nuys, he said.

Clients pay JSSI a fee to take care of aircraft maintenance. The company receives an hourly rate every time the plane flies and then arranges for regular and unscheduled maintenance at facilities around the globe.

"We handle the whole maintenance experience and we take the risk," Seno said.

Currently the company has 60 clients in the state, he said.

The new California office will be based at the Pentastar Aviation facility at Van Nuys Airport.

"It's a very strategic location for us. The 5 and 405 (corridor) is a Mecca of corporate aviation and that's what is encouraging for us," Seno said.

The company has seen some encouraging signs.

JSSI has about 1,500 planes under maintenance contract and the number of hours they flew increased between 8 percent and 10 percent from 2009 to 2010.

"We believe that the state will go through a renaissance and more people will be flying and needing that type of service," company spokesman Lewis Goldberg said of business flying.

The company will be adding jobs in Van Nuys but it is too soon to say how many, he said.

Hiring a maintenance management company helps the owners of private jets manage their money.

"Having our aircraft on a JSSI hourly cost maintenance program helps us stay competitive, ... makes it easy to plan for maintenance events, and we don't have to be concerned about unscheduled maintenance surprises or unanticipated expenses," Keith Plumb, president and chief operating officer for Executive AirShare, recently told the website Corporate Jet Investor.

William W. Roberts, director of the San Fernando Valley Economic Research Center at California State University, Northridge, said any new business coming into the region is encouraging.

"If they are seeing an increase in business jet travel and are coming in, that's a good sign. It implies that people are traveling more and they expect gains from it, which means the economy must be moving forward," Roberts said.

"Rail Hub Project Seeks Fast Track"- LA Business Journal

Los Angeles Works — Mon, 07 Nov 2011 12:00:AM PST

Rail Hub Project Seeks Fast Track

Deadline nears for mixed-use One Santa Fe.

By Jacquelyn Ryan

Monday, November 7, 2011

A long-stalled, sleek $150 million mixed-use project is gearing up again and could help revitalize downtown L.A.’s up-and-coming Arts District, which is now speckled with old train cars and swaths of dusty unused land near the Los Angeles River.

But this time, the developers are up against a January deadline to close on private financing and begin construction on the project, known as One Santa Fe, or it may lose its largest tenant and crucial public loan.

One Santa Fe has long been touted by developers and officials as a much needed project to breathe life into an area east of Alameda Street that’s only a quarter-mile from Los Angeles City Hall yet seems out of the way. It was used for the first half of the last century as a rail-freight distribution hub.

The project would be the latest in attempts to revitalize the area, and across the street, the Southern California Institute of Architecture is eager to have some neighbors.

“We think the development would be a great addition and offsets our needs for student housing,” said Jerry Neuman, chairman of the Sci-Arc board of trustees. “We are on a dead-end leg and transportation all goes past us.”

The four-acre project, at 214 S. Santa Fe Ave., would bring apartments as well as office and retail space to the area, with the potential to become the site of a subway stop for an extended Metro Red Line.

The development team, composed of Beverly Hills’ McGregor Co., Polis Builders Ltd. and Goldman Sach’s Urban Investment Group, has been trying for six years to get the project off the ground, but the poor economy has thus far stalled it.

No member of the development team returned calls for comment.

But the developers have picked a good time and place for the project, if they can get it going, according to Transwestern senior research analyst Arty Maharajh.

“The One Santa Fe development … would help to spur on migration to the area and redevelopment of the industrial buildings,” Maharajh said.

Mixed-Use Project

One Santa Fe is situated on a three-block-long parking lot owned by the Metropolitan Transportation Authority at the Santa Fe Yards depot, next to the Los Angeles River. It’s in the heart of the Arts District, an industrial area that has slowly been renovated into artists’ lofts as industrial buildings have been renovated into housing and retail and office space.

The project would provide 438 apartments, 20 percent of which must be affordable units aimed at low- and moderate-income renters. The units will range from studios to two-bedroom, two-bathroom townhomes.

Pricing for the units hasn’t been revealed, but the developers have spoken with Sci-Arc about cooperating for student housing.

It will include 79,000 square feet of office and retail space, about 15,000 square feet of which would be used by a grocery. There would be public outdoor space of nearly 50,000 square feet.

It has been designed by Michael Maltzan Architecture in Los Angeles, which designed the modern pinwheel-shaped New Carver Apartments south of downtown as well as the Playa Vista Park project. According to the company’s website, the Santa Fe project will have an outdoor terrace that provides views of downtown and the river about 30 feet above street level. The bottom floor will include retail, an art gallery, a multi-use theater and a garden.

The project site is also one of three locations being evaluated by MTA as the site for a subway stop if the Red Line is extended; the land is owned by MTA.

Earlier this year, One Santa Fe renegotiated its ground lease for 81 years on the property. It now pays roughly $525,000 annually to the MTA, and has spent well over $1 million in rent since it first signed a lease in 2008.

Despite having all the entitlements and ground lease in place, the developers face another hurdle: financing.

The project is broken into two components: commercial and residential.

The residential component is the largest and estimated to cost $91.5 million. It is being funded by U.S. Department of Housing and Urban Development tax-exempt bonds, and loans from the Los Angeles Community Redevelopment Agency and the city’s Housing Department.

The commercial component has estimated costs of $57.2 million, and the developer has secured all but $26 million in funding from a loan from the city of Los Angeles and New Market Tax Credits, a federal program created to revitalize blighted areas.

To come up with the balance, the developers are negotiating with Canyon Capital Advisors LLC for an undisclosed amount. The deal, however, isn’t expected to close until next month.

Last month, Mayor Antonio Villaraigosa signed off on a $14.6 million city loan to help finance the commercial portion, on the condition that at least 50 percent of it had to be preleased.

At least for now, that shouldn’t be a problem for the developers.

MTA has agreed to sublease 35,000 square feet, or about 45 percent of the project’s commercial space. The sublease agreement allows MTA’s monthly office space rent of $2.24 per square foot to be deducted from the ground-lease rate it pays MTA.

The catch, however, is that construction on the project must begin by January.

Without all the required financing, the development team may not be able to get construction started by January, and could lose its sublease with the MTA, and the deal could unravel.

If that happens, it would be the second time that the project hit the brakes. It was scheduled for a ground-breaking in 2009 as well, but the collapse of the credit market halted the financing.

If it can pull together a deal, the project has picked a good time to get started. The city has cut the business gross receipts tax, and downtown is seeing creative and entertainment companies moving to the area. That and the buzz around loft-style living downtown should give the project good demand, according to Transwestern’s Maharajh.

“There are already existing loft-style residential units as well as many more planned for the immediate area,” he said. “The fringe areas of downtown will finally see real traction.”

"Trammell Crow buys Los Angeles River development site"- LA Times

Los Angeles Works — Fri, 04 Nov 2011 12:00:AM PST

Trammell Crow buys Los Angeles River development site

"Google to open campus in Los Angeles"- LA Times

Los Angeles Works — Thu, 03 Nov 2011 12:00:AM PST

Google to open campus in Los Angeles

The 100,000-square-foot facility near Venice Beach will be used unify the Internet giant's growing operations in the city, much like the company's Googleplex headquarters in Silicon Valley.

By David Sarno, Los Angeles Times

November 3, 2011

Google Inc. is about to add some muscle to its Southern California operations.

On Thursday afternoon the company is hosting an opening event for its new 100,000-square-foot campus, located just a few blocks from Venice Beach.

Speakers at the event will include Los Angeles Mayor Antonio Villaraigosa, who plans to hail the new Google campus a sign of the progress of the city's technology industry, which advocates have begun to call "Silicon Beach."

Google first opened an office in L.A. in 2003 when it acquired Santa Monica-based Applied Semantics, and at that time had only a dozen employees in the area. Over time, the size of Google's workforce here has grown to more than 500, with engineers and advertising sales teams spilling into several separate buildings on the Westside. But as its L.A. operation grew, Google decided it wanted to reproduce the unified feel of its main campus, the Googleplex in Mountain View, Calif.

"We want to feel like everyone is in one location," said Susan Wojcicki, Google's senior vice president of advertising, in an interview with The Times. "It's really important for us to have all different parts of the company able to work together."

Although employees in the L.A. office will work in a variety of Google's businesses, including its search engine, ad sales, and its Google+ social network, the company is also hoping the more concentrated presence will help it develop its ties with the entertainment and media industries.

Film and television companies, the company says, are increasingly willing to experiment with newer kinds of digital advertising. When a consumer enters the movie "Anonymous" as a search term in Google's search engine, for instance, a newer type of ad pops up with an embedded video trailer.

Wojcicki said the new campus — three adjacent buildings including Frank Gehry-designed Binoculars Building — would also help Google attract candidates from area colleges and universities. Wojcicki sits on the board of visitors at UCLA Anderson School of Management, where she received her MBA in 1998 — the year Google was founded.

Although Google hired 100 employees in 2011, Wojcicki did not specify the company's 2012 hiring plan for the region, saying "we're working out those numbers right now."

The company's focus on Web search is evoked by the iconic binocular sculpture at the site, created by Claes Oldenburg and Coosje van Bruggen.

"New Regional Export Council to Aid L.A. Businesses"- LA Business Journal

Los Angeles Works — Tue, 01 Nov 2011 12:00:AM PST

New Regional Export Council to Aid L.A. Businesses

By James Rufus Koren

Tuesday, November 1, 2011

Aiming to give businesses an easier way to start exporting their goods to the world, Mayor Antonio Villaraigosa’s office on Monday announced the creation of the Los Angeles Regional Export Council.

The council is a collaboration of the mayor’s office, the Port of Los Angeles, Los Angeles World Airports, universities and business groups.

The council’s goal will be to streamline export support programs in the region run by individual agencies, including separate export training programs run by the port, LAWA and the California Centers for International Trade Development.

“Each has their own programs that provide basic export training and resources, and the council will streamline those into an Export 101 program,” said Villaraigosa spokesman Teddy Davis.

He said the council will also coordinate forums and business development programs run by the Los Angeles Area Chamber of Commerce and the USC and UCLA centers for international business education and research.

Villaraigosa announced the creation of the council Monday at CR&A Custom Banner in Los Angeles, a company that has exported to Latin America and the Middle East.

“We in Los Angeles are not waiting for Washington to create jobs,” Villaraigosa said in a press release. “We are launching the Los Angeles Regional Export Council to help local businesses find the export assistance they need to grow their businesses and create new jobs.”

The council will focus on boosting exports in 12 industries, including aerospace, computers, pharmaceuticals, energy and apparel.

"Manufacturing growth slowed slightly in October"- LA Times

Los Angeles Works — Tue, 01 Nov 2011 12:00:AM PST

Manufacturing growth slowed slightly in October

Associated Press

7:50 AM PDT, November 1, 2011

Manufacturing growth slowed in October from the previous month, a troubling sign that U.S. factories are struggling in the weak economy.

The Institute for Supply Management says its manufacturing index dropped to 50.8, down from 51.6 in September. Any reading above 50 indicates expansion.

Measures of production and exports fell and a gauge of employment dipped. On a positive note, survey respondents say raw materials prices fell sharply.

Factories were among the first businesses to start growing after the recession officially ended in June 2009. The manufacturing sector has grown for 27 straight months, according to the index.

However, factory activity slowed this spring. Consumers cut back on purchases in the face of higher prices for gas and food. And the March earthquake in Japan disrupted supply chains, which slowed U.S. auto production.

The index hit a two-year low of 50.6 in August, contributing to fears that the economy was at risk of slipping into recession. A gain in September was among data that helped calm those worries. Last week, the government said that the economy expanded at an annual pace of 2.5 percent in the July-September quarter, the best quarterly growth in a year.

Companies are buying more industrial machinery and heavy equipment, a positive sign for factory growth. Business spending on equipment and software was a key driver of growth in the third quarter.

Consumers are spending more, too. A key reason for the strong growth over the summer was that consumers stepped up their spending at a 2.4 percent at an annual rate -- nearly triple the growth from spring.

Much of that spending was on big-ticket items, such as appliances and electronic goods.

Auto sales are also rising. Sales picked up in September as the disruptions faded. Economists expect a modest increase in October.

Still, the economy isn't growing fast enough to lower the unemployment rate, which has been near 9 percent for more than two years. Growth needs to nearly double the 2.5 percent pace from this summer to have a significant impact.

Economists doubt consumers can keep spending like they did this summer without earning more. For that to happen, employers need to step up hiring.

In recent months, job growth has stagnated. Employers have added an average of only 72,000 jobs per month in the past five months. That's far below the 100,000 per month needed to keep up with population growth. And it's down from an average of 180,000 in the first four months of this year.

Employers added only 103,000 jobs in September. The unemployment rate stayed at 9.1 percent for a third straight month.

The government releases the October employment report Friday. Economists forecast that employers added 100,000 jobs last month and unemployment remained stuck at 9.1 percent.

The ISM is a trade group of purchasing managers based in Tempe, Arizona. It compiles its manufacturing index by surveying about 300 purchasing managers across the country.

"L.A.’s Work in Creating Jobs Pays Dividends"- LA Business Journal

Los Angeles Works — Mon, 31 Oct 2011 12:00:AM PST

L.A.’s Work in Creating Jobs Pays Dividends

OP-ED

By ANTONIO VILLARAIGOSA

Monday, October 31, 2011

For too long, L.A. businesses have been stolen from us by other cities and states. The result has been a calamitous decline in both jobs and tax revenues in our city, causing huge strains on our budget and endangering our ability to provide basic city services. For example, since 1986, an astonishing 100 auto dealers have left Los Angeles, costing the city up to $57 million in revenue each year.

We are fighting back, and starting to see real results. Two years ago, after the historic economic downturn, which hit California and Los Angeles particularly hard, we redoubled our efforts to recruit job-creating companies to Los Angeles. I built a team focused 24 hours a day, 7 days a week on growing our economy and creating jobs. Working with business and civic leaders across the city, we implemented a five-point plan to bring good jobs and world-class employers to Los Angeles:

(1) Reforming our business tax.

(2) Reducing bureaucratic red tape.

(3) Making sure local tax dollars fuel local jobs.

(4) Securing our future as a global trade hub by modernizing Los Angeles International Airport and the Port of Los Angeles.

(5) Accelerating infrastructure jobs by building a 21st century transportation network.

A healthy environment for job creation is the best medicine for strengthening our city. By creating local jobs, we will build a more robust and diverse revenue base to support the services Angelenos deserve.

Two weeks ago, I signed a Local Preference Ordinance that will spur local job creation by leveling the playing field for local businesses competing for city contracts. We hope this new tool, along with the Business Tax Holiday we implemented last year, will make Los Angeles an easier place to create jobs.

We’re leveraging assets like advertising space at LAX to win business. We are making strategic use of federal grants to bring world-class firms to Los Angeles.

Using federal community development block grants, which are designed to help lift communities out of poverty and create jobs, we persuaded two quintessentially L.A. companies to move to downtown.

BYD, China’s premier global, high-tech green company focused on developing electric vehicle technologies and efficient alternative energy sources, has chosen downtown to locate its North American headquarters. The new facility, along the Figueroa Corridor, will bring an estimated 150 green-collar engineering and management jobs to Los Angeles and hundreds of indirect jobs. In 2010, BYD was ranked the eighth most innovative company in the world.

Gensler, one of the world’s foremost architectural and design firms, has moved its regional headquarters, employing more than 300 people. In gross tax receipts alone, the city will realize a minimum 250 percent return on its investment. That’s not including tax revenues from meals, hotel rooms, gym memberships, and housing and more.

‘The place to be’

These are the types of companies we need – trailblazing leaders in their fields that not only create jobs and generate revenue but help define Los Angeles as “the place to be.”

Of course, in Los Angeles nothing significant happens without controversy, and we’ve heard some complaints that the city should not be spending public money offering incentives to companies like BYD and Gensler. In this case, it’s the critics who are failing to see the bottom line.

First and foremost, we did not use money from the general fund to attract these important new companies, and no city services were affected. On the contrary, we leveraged federal dollars exactly as they were intended to be used.

Some say we should be using federal grants only to take care of our downtown homeless population. Again, this criticism misses the mark. In fact, we use the vast majority of these federal grant dollars to house the homeless and lift Angelenos out of poverty. We’ve reserved a modest 14 percent of these funds for job creation and economic development. In fact, some would argue that isn’t enough.

We’ve even heard some say the city shouldn’t be in the business of working to attract business from neighboring cities. Ah, if things were only so simple. We know, California in general – and the city of Los Angeles in particular – have been major targets of deliberate business-poaching efforts by other governments all around the country. As Texas Gov. Rick Perry likes to say, “If California doesn’t want your business, Texas does.”

Fundamentally, we are going to have to change our mentality in Los Angeles. We are still sadly paying the price for many of the anti-business policies of our recent past. I’m committed to using every tool at our disposal.

I am proud that we are doing more than any other administration in recent memory to create jobs and strengthen our economy. If we lose this fight for business, there will be devastating long-term consequences for all of us who depend on our Police and Fire departments, and who rely on city government for basic public services.

You can imagine what the critics would have to say then.

Antonio Villaraigosa is mayor of Los Angeles.

"L.A., business groups form partnership to give export advice"- LA Times

Los Angeles Works — Mon, 31 Oct 2011 12:00:AM PST

L.A., business groups form partnership to give export advice

October 31, 2011

Businesses in Los Angeles seeking to expand sales overseas will soon have a new resource: a partnership between the city, business groups, UCLA and USC that aims to simplify access to export advice.

The Los Angeles Regional Export Council, announced Monday by Mayor Antonio Villaraigosa, will start by launching a website to help businesses find the specific services they need.

One of those highlighted by the mayor, the MBA Export Champions supported by a $320,000 federal grant, will link companies with students at the UCLA Anderson School of Management and USC Marshall School of Business to devise approaches to foreign markets.

“We’re forming the L.A. Regional Export Council to better coordinate the export services that are already available,” Villaraigosa said. “The goal of the council is to help companies find the export assistance they need to grow their business and create new jobs.”

The mayor credited the Brookings Institution, a Washington think tank, with inspiring the idea for the council. It will include the mayor’s office, the port, the airports, the Los Angeles Area Chamber of Commerce, the Centers for International Trade Development, the USC Center for International Business Education and Research and the UCLA Center for International Business Education and Research.

Villaraigosa made the announcement at a news conference at CR&A Custom, in a downtown industrial building that the firm has crisply renovated. Carmen Rad, the president, started the printing business in her home in 1993. It now has $3.4 million in annual sales and has 36 employees.

“We’re very serious about creating jobs,” Villaraigosa told the assembled business leaders, educators and media before introducing Rad and other speakers. “So serious they gave me a much longer speech than I am accustomed to, and I’m not reading it anymore.”

Rad’s company, which prints large-scale banners and advertising, exports to Puerto Rico, where Rad is from, and the Middle East, where her partner is from. She said they know how to navigate in those familiar areas, but would look to the new council for help exporting to other countries.

“We have a keen interest to enter new markets,” Rad said. “However, entering a new foreign market is a huge endeavor for a small company such as mine, and we need some support and a better understanding of how to enter foreign markets.”

"Sales of new homes top expectations"- LA Times

Los Angeles Works — Thu, 27 Oct 2011 12:00:AM PST

Sales of new homes top expectations

By Jeffry Bartash

October 27, 2011

Sales of new U.S. homes rose by 5.7% in September — the first increase in four months — as builders cut prices to the lowest level in nearly a year.

The Commerce Department said new single-family home sales climbed to an annual pace of 313,000 in September from August's slightly revised level of 296,000. The numbers are seasonally adjusted.

Economists polled by MarketWatch had forecast new home sales to rise to 300,000.

Buyers were attracted by lower mortgage rates and falling home prices. The median selling price of new homes, for instance, fell more than 10% year-over-year to $204,400 — a 3.1% decline compared with the previous month — marking the lowest level since last October.

The median price has fallen three straight months after hitting a nine-month high of $240,200 in June.

Yet total sales of new homes are still 0.9% lower compared with one year ago, and the number of properties on the market — 163,000 — remained at a record low.

"Sales remain extremely subdued by historical standards," said economist Andrew Grantham of CIBC World Markets. Sales would have to at least double to restore the housing sector to good health, analysts say.

What's more, slack demand has prompted builders to scale back even more. Only 76,000 new homes were under construction in September, the lowest level ever recorded.

As a result, the supply of new homes available fell to 6.2 months at the current sales pace from 6.6 months in August. That's the lowest level in almost a year and a half.

Another economic report found that companies ordered more heavy machinery, computers and other long-lasting manufactured goods in September, more good news for the slumping economy.

An increase in demand for those types of durable goods suggests businesses are sticking with investment plans despite slow growth and dismal consumer confidence.

Overall demand for durable goods fell 0.8%, the Commerce Department said Wednesday. But that was largely because of a huge decline in volatile commercial aircraft orders and also because orders for autos and auto parts fell.

Excluding transportation, orders rose 1.7%. And demand for core capital goods, which are a measure of business investment plans, rose 2.4%. That's the second straight monthly increase and the biggest gain in six months.

"Business tax reform urged"- Daily News

Los Angeles Works — Wed, 26 Oct 2011 12:00:AM PST

Business tax reform urged

By Gregory J. Wilcox, Daily News Staff Writer

Posted: 10/26/2011 01:00:00 AM PDT

Mayor Antonio Villaraigosa speaks during the United Chambers of Commerce of the San Fernando Valley's seventh annual Mayors' Luncheon on Tuesday, Oct. 25, 2011 at the Warner Center Marriott in Woodland Hills. (Dean Musgrove/Staff Photographer) (Dean Musgrove)

Hoping to sharpen the city's competitive edge, Mayor Antonio Villaraigosa called Tuesday for giving a three-year tax break to all companies opening or relocating to Los Angeles and phasing out business taxes for existing firms.

Speaking during the annual United Chambers of Commerce Mayor's Luncheon, Villaraigosa said he would ask the City Council to make permanent the business-tax "holiday" set to expire in 2012. It gives businesses a reprieve from paying taxes on gross receipts during their first three years in Los Angeles.

"There should be no expiration date on this common-sense, job-creating policy," the mayor told a crowd of about 400 business owners and civic leaders gathered at the Warner Center Marriott.

Councilmen Mitch Englander, Eric Garcetti and Tom LaBonge recently said they wanted to extend the tax holiday to 2015, but Villaraigosa said that is not long enough to give a substantial boost to the city's economy.

Stuart Waldman, president of the Valley Industry and Commerce Association, said Villaraigosa is on the right track in his effort to expand the city's economic base.

"He has seen that the business tax holiday works and helps his business team entice new folks into coming to Los Angeles," Waldman said. "When a business makes a decision to move, it's all about the bottom line."

Englander said the tax holiday, while good for new businesses, gives them an unfair advantage over existing companies. For that reason, he supports a gradual phaseout of the city's gross-receipts tax.

"There is no question we have to attract new businesses but we need to help the businesses that are here stay here and keep their doors open and people on the payroll," he said.

Among companies enticed to Los Angeles by the tax holiday was BlackLine Systems, a financial software company that relocated from Calabasas to Woodland Hills. The company estimates it will save $350,000 over three years, thanks to the tax holiday and the benefits of being in a state enterprise zone.

"I think the three-year holiday is great. It will definitely be a factor for anyone considering a new location," said Mario Spanicciati, BlackLine's executive vice president of operations.

City officials estimate that eliminating the gross-receipts tax would strip about $440 million a year from the general fund, which pays for 40 percent of the Police Department's and 90 percent of the Fire Department's budgets.

Villaraigosa said his office is already looking for other revenue sources to offset any expected shortfall.

Lloyd Greif, president of the city's Business Tax Advisory Committee, said the mayor's proposal mirrors the panel's recommendations.

"The business tax holiday should continue after it expires next year to convince companies the city is serious about (business) tax reform," Greif said.

At its highest rate, which impacts many businesses, the tax is $5.07 for every $1,000 of revenue - 10 times higher than that charged by any of the 87 other cities in Los Angeles County, Greif said.

The revenue will be replaced by companies moving into the city and creating jobs, generating other kinds of tax revenue and fees, he said.

"Villaraigosa urges 3-year break on business tax for firms moving to L.A"- LA Times

Los Angeles Works — Tue, 25 Oct 2011 12:00:AM PST

Villaraigosa urges 3-year break on business tax for firms moving to L.A.

October 25, 2011 | 6:14 pm

In another bid to buff the city’s appeal for businesses looking for a new home, Mayor Antonio Villaraigosa proposed making permanent a program that gives companies moving into Los Angeles a three-year break on paying the business tax on their gross receipts.

Villaraigosa has been pressing an agenda intended to perk up the economy and create jobs. He predicted the City Council would sign on. “I think there’s a lot of support for it,” he said. “Everybody on the council has said they want to reduce or eliminate the gross receipts tax.”

The council just adopted a program to give local businesses a competitive edge when bidding on city contracts. The idea, which came out of the mayor’s office, is to help level the playing field for Los Angeles companies, which face higher costs of doing business.

Council President Eric Garcetti introduced a motion earlier this month with two councilmen to extend the new business tax break until 2015, but said he supports making it permanent. “Hopefully, it will give us so much momentum that we’ll have to do it for everybody,” he said.

The mayor’s decision comes more than a month after an advisory committee appointed last year by the council and the mayor made the same recommendation. The mayor, Garcetti and other council members routinely bemoan the city’s business tax as a disincentive for companies to move to L.A. “It’s a job-killer. It chases businesses away,” Garcetti said. “And if L.A. is going to work again, we’ve got to not just reduce but eliminate it.”

The mayor touted his latest business-friendly proposal in a speech to the United Chamber of Commerce Annual Mayor’s Luncheon in Woodland Hills.

Between 1980 and 2010, the city’s population grew by 28%, but the number of jobs declined by 10%, according to the city’s Business Tax Advisory Committee.

Villaraigosa said the current tax holiday, which has been in place since 2010 but is scheduled to expire in 2012, has been a success. “It’s bringing in revenue,” he said.

The mayor in his speeches on the economy regularly ticks off a list of companies he says have moved operations to the city partly because they do not have to pay the business tax. Among them are: electric vehicle companies BYD and Coda; high-tech firms Google, Blackline Software and Telscape Communications; mega-retailers Costco and Target; the Gensler architecture firm; Beverly Hills BMW; Farmer's Insurance; Lucky Brand jeans and Tom’s Shoes.

L.A.’s business tax ranges from $1.01 to $5.07 per $1,000 of gross receipts. On the high end, it is much steeper than that charged by the surrounding cities.

“We are the most uncompetitive city,” Villaraigosa said. “I’m not doing one of those things where I’m saying, ‘No taxes,’ I’m just saying, 'That’s a dumb tax.' ”

"Villaraigosa to lead December trade mission to Asia"- LA Times

Los Angeles Works — Tue, 25 Oct 2011 12:00:AM PST

Villaraigosa to lead December trade mission to Asia

In his third trade mission, the mayor hopes to encourage Chinese, Japanese and South Korean business leaders to invest in Los Angeles.

By John Hoeffel, Los Angeles Times

October 25, 2011

Los Angeles Mayor Antonio Villaraigosa plans to return to Asia on an 11-day trade mission in December with a contingent of city officials and business leaders.

The delegation, which will include port, airports and tourism officials, will travel to Japan, South Korea and China, the city's three largest trading partners. The mayor and his cohorts plan to hold dozens of meetings and events with government and business leaders, seeking to encourage firms to set up shop in L.A., invest in local companies and do more business in the city.

Villaraigosa has led two other trade missions, to Asia in 2006 and to Israel in 2008.

"We have had success in expanding investment across our city by Asian business leaders," Villaraigosa said, "and will use this trip for crucial personal meetings, which we have found are a key tool and best practice in working with our friends in Asia."

The group will travel to Beijing, Chongqing and Shanghai in China; Tokyo and Sendai in Japan; and Seoul, South Korea. OnGreen, an environmental firm, will showcase up to 20 Los Angeles businesses involved in clean technologies; clothing retailer Forever 21 will open three stores in China; and architecture firm Gensler, which designed Asia's tallest skyscraper, will try to expand its business.

On his last trip to Japan, Villaraigosa met with the owners of Famima!!, an upscale convenience store chain. Since then, the mayor's office said, the company has opened six stores in the city.

Villaraigosa's administration also takes credit for persuading Chinese firm BYD, which plans to sell electric vehicles, to put its North American headquarters downtown; it had its grand opening Monday. "We have attracted China's leading green company to our city," Villaraigosa said. "We see BYD's Los Angeles opening as a catalyst that will usher in good jobs, global investment and a more sustainable future."

The mayor plans to travel to Sendai to meet with officials, emergency responders and researchers to learn about how the area responded to the March 11 earthquake and tsunami. The Los Angeles delegation will include earthquake expert Lucy Jones, a seismologist for the U.S. Geological Survey.

Others on the trip include Mickey Kantor, a lawyer who is a former secretary of Commerce; David Fisher, chairman emeritus of the investment management firm Capital Group International; and Ambassador Jose Villarreal, commissioner general of the U.S. Pavilion at the Shanghai World Expo.

The estimated $295,000 cost to the city will be paid by the port and airport, the mayor's office said. Business leaders and others will cover their own costs.

"Electric Car Company Opens Downtown Headquarters"- LA Downtown News

Los Angeles Works — Mon, 24 Oct 2011 12:00:AM PST

Electric Car Company Opens Downtown Headquarters

by Jon Regardie, Executive Editor | Posted: Monday, October 24, 2011 4:01 pm

DOWNTOWN LOS ANGELES - A faded car dealership moved into the automotive and green technology future today, as business and political leaders from two continents came together in Downtown Los Angeles.

At a morning ceremony at 1800 S. Figueroa St., officials from Shenzen, China-based BYD, along with the mayor of Shenzen Province and other government leaders, teamed with their Los Angeles counterparts to cut the ribbon on the North American headquarters for the company that manufactures electric vehicles, solar power systems, rechargeable batteries and LED lighting. The move will ultimately create approximately 150 management and engineering jobs in Downtown, though there are far fewer now.

Chuanfu Wang, the chairman of BYD, said that the Downtown location will be the base of the company's North American fleet sales for electric cars and buses. The facility will also house BYD's research and development arms that will create versions of their cars for the U.S. market.

"It will also be our solar and LED business headquarters with a focus on marketing, sales, technical support, local product design, training and after-sales support," Wang said in an English translation of his remarks.

Perhaps more importantly, the Figueroa Street headquarters will be a beachhead for one of China's largest companies, with more than 200,000 employees worldwide, and possibly for a wave of Chinese businesses looking for a presence in North America.

"It's the bell cow," said Austin Beutner, who during his time as a top deputy to Mayor Antonio Villaraigosa oversaw the deal for the city. Beutner is currently running for mayor.

"They are a market leader," Beutner continued. "I've personally gotten many phone calls from Chairman Wang and his colleagues to introduce me to other CEOs in Shenzen who'd like to talk about Los Angeles and the opportunity."

Corridor Comeback

BYD, which stands for Build Your Dreams, was founded in 1995 with 20 employees. Wang has overseen tremendous growth for the company, which has offices in countries including Denmark, India, Hungary, the Netherlands and South Korea. During his address, Villaraigosa noted that Wang has been described as a combination of Thomas Edison and former General Electric head Jack Welch. The label came from Business Week magazine.

While the company may be unfamiliar to many Angelenos, it is no stranger to financiers. It is 50% owned by interests in the United States. Investor Warren Buffett owns 10% of the company through a subsidiary of his Berkshire Hathaway.

Charlie Munger, vice-chairman of Berkshire Hathaway, said at the event that BYD is "helping China become not just a quick learner from the West, but an inventor that could lead the West in some fields."

The deal is the latest step in the evolution of the Figueroa Corridor, which has long housed a concentration of auto dealerships, but is now seeing growth at its southern end related to USC, and development on the north tied to L.A. Live. The BYD headquarters a few blocks south of the Convention Center is owned by prominent area landlord the Shammas Group.

In the 1920s, said Darryl Holter, CEO of the Shammas Group, the property was home to the White Motor Company. Before BYD came in, the building was vacant and did not meet earthquake standards for commercial structures. Holter called the fact that the site will again house a business anchored in auto sales "pretty significant."

"They provide the largest selling electric sedan in China," Holter said, referencing the more than 1 million cars customers have purchased. "Although they're not ready to try to enter the American market with their small vehicles, which is a very hard market to intervene in, they may be able to do that in the next few years."

Councilwoman Jan Perry, whose Ninth District includes Downtown, touted the potential benefits for the area.

"BYD has finally brought the cutting edge technology to Auto Row here on the Figueroa Corridor," said Perry, who is also running for mayor. "This was a unique public-private partnership, and I think it bodes well for us in the future."

Doing the Deal

BYD's automotive products include the e6, a five-seat electric car that can travel more than 185 miles on a charge. It also manufactures the S6DM, an SUV.

Other company products include iron-phosphate batteries that do not contain hazardous or toxic residue, and solar energy systems and LED lighting packages for commercial and residential users.

At the Downtown event, the company announced a partnership with Hertz to create electric buses for their shuttles at LAX. It will also manufacture electric cars for Hertz's Los Angeles rental fleet.

While the opening of the BYD headquarters was widely celebrated, it was no simple feat. Beutner noted that at his first meeting with company officials, they said they were not interested in locating in the city of Los Angeles. One deterrent, which Villaraigosa also mentioned, was a 12-inch stack of documents detailing city regulations and other matters.

Beutner helped persuade Wang not to reject the city out of hand. He hosted a dinner at his house for the chairman and other BYD officials, inviting a batch of prominent Los Angeles civic leaders with which to mingle. During a follow-up meeting with the company, he brought together 12 city department heads. He gave them explicit instructions in responding to questions or requests. They boiled down to never saying "no."

"I said you can say, ‘Yes, we will,' or you can say, ‘Yes, we'll look,'" Beutner recalled. "‘Yes, we'll look' doesn't imply we can or can't. It just means we're going to make an effort to try to understand and see what we can do."

Incentives the city provided to close the deal included some things others can receive, such as a 15% tariff reduction for BYD cars shipped through the Port of Los Angeles - all zero emission vehicles can get that benefit. Other offerings were tailored specifically to the company, such as a guaranty that those who buy electric cars will receive a battery charger in their home within a week. The city also promised to showcase a BYD car at LAX.

Additionally, improvements to the sidewalks and a repaving of the street took place.

The deal was publicly announced in April 2010.

"L.A. abuzz over electric-car maker BYD"- Daily News

Los Angeles Works — Mon, 24 Oct 2011 12:00:AM PST

L.A. abuzz over electric-car maker BYD

By Rick Orlov, Daily News Staff Writer

Posted: 10/24/2011 01:00:00 AM PDT

The Housing Authority City of Los Angeles is using these hybrid vehicles in its fleet. The vehicles, made by BYD Auto, are imported from China. (John McCoy/Daily News Staff Photographer)

When Mayor Antonio Villaraigosa and officials from Chinese electric-car company BYD America meet today to open its North American headquarters, it will mark the end of a lengthy courting period and the start of what both sides hope is a long marriage.

The effort began with former First Deputy Mayor Austin Beutner who convinced the Chinese manufacturer to come to Los Angeles.

But the details to be worked out over the past year have involved talks on everything from possible locations for a factory to drawing on L.A.'s star power and the Academy Awards.

BYD officials were initially reluctant to come to Los Angeles, bringing out a 12-inch thick book of regulations it would have to meet.

Villaraigosa instructed his staff to work with the company to deal with the regulations and develop attractions to lure the company.

Among these are displays of BYD's vehicle in posters at LAX, adopting a 15 percent reduction on tariffs for zero emission vehicles coming into the Port of Los Angeles and a promise from the Department of Water and Power to install battery chargers within a week for those who purchase BYD cars.

"We see BYD's Los Angeles opening as a catalyst that will usher in good jobs, global investment and a more sustainable future," Villaraigosa said.

The company is expected to spend up to $100 million on construction, creating 1,600 construction-related jobs, according to the Los Angeles County Economic Development Corp.

Also, Hertz will begin using BYD's all-electric shuttle buses and LAX plans to add its electric vehicles to its fleet.

Another incentive is a promise from the Mayor's Office to persuade celebrities to drive a BYD vehicle to the Academy Awards. Villaraigosa aides said that is a work in progress.

"I think we will make that happen," Beutner said. "The mayor hosts an Oscar party every year, and I think you'll see one of their cars there."

Beutner said the company also hopes to have some of its models on display at the annual auto show at the Los Angeles Convention Center next year.

Beutner made the initial contact with the firm and had to overcome the image of the city as a difficult place to do business.

"What I hope is that this company will establish a beachhead in Los Angeles and others will follow," Beutner said.

The new BYD downtown location is expected to bring in 150 jobs of engineers, research and development and management personnel.

The company is also still scouting out locations for a new assembly plant in the region.

Officials from Lancaster have been actively pursuing the plant, but Villaraigosa's aides said they are pitching locations in the San Fernando Valley and South Los Angeles.

BYD America Vice President Mike Austin said the company is still looking at a number of sites, but that is only part of the company's overall plans.

"We have numerous green products we will market and promote through our headquarters," Austin said. "As these markets grow, we will certainly see a need to manufacture all or a portion of them in the U.S."

Among the products Austin cited were solar panels, solar-shaded parking, inverters, home and commercial energy storage solutions, LED lighting systems and other related devices.

On the vehicle front, Austin said the firm is looking at consumer vehicles as well as all-electric buses.

"We have strong aspirations to back-end assembly many of these products in the U.S., as quickly as these markets can be developed to support that manufacturing," Austin said.

Winning BYD was a major coup for the city. The company is the world's second largest manufacturer of mobile batteries and produces more than half of the mobile phone batteries in the world.

It is the fourth largest automobile manufacturer in China and it employs 150,000 people worldwide. Its largest American investor is Warren Buffet.

"Hollywood Looks To Add Big Star"- LA Business Journal

Los Angeles Works — Mon, 24 Oct 2011 12:00:AM PST

Hollywood Looks To Add Big Star

Revived project near W Hotel hailed as local lift.

By Jacquelyn Ryan

Monday, October 24, 2011

A massive apartment and retail complex in the heart of Hollywood appears ready to rise from the dead.

Construction is to begin within a few months on Blvd6200, a proposed 1 million-square-foot mixed-used project that spans the north and south sides of Hollywood Boulevard a block east of Vine Street, after three years on death watch.

“I’ve worked on this project for about six years and I couldn’t be more excited about starting it,” said Frank Stephan, senior managing director for Clarett West Development in Los Angeles. “We’re pretty focused on starting before the end of the year.”

Blvd6200 would be the first of several high-profile projects in Hollywood to begin construction after being sidelined during the recession. An environmental review estimates that it will bring in more than 2,000 residents to live, work and shop in the neighborhood. That’s exciting for Kerry Morrison, Hollywood Business Improvement District manager.

“The key to a successfully revitalized (Hollywood) is people,” said Morrison. “We need more people living here.”

Blvd6200 was conceived by Clarett in 2005. But shortly after Clarett got its plans approved by the City Council in 2007, the real estate market began to slow and the project was put on hold.

In May, DLJ Real Estate Capital Partners, a real estate private-equity fund spun off of Credit Suisse AG last year that manages $4 billion, bought the project for an undisclosed price and kept Clarett on as the developer.

More apartments

Blvd6200 will be a mixed-use six-story development with 1,035 apartments and 175,000 square feet of ground-floor retail space. It will take up 7.3 acres of land on both the north and south side of Hollywood Boulevard.

The developer is leasing the land from the Nederlander family, which owns the nearby Pantages Theatre. The land is now mostly used as parking for the Pantages.

Clarett is first developing the smaller portion of the project, on the north side of Hollywood. That will feature 535 residential units and 75,000 square feet of retail.

The ground floor will include retail and an interior courtyard open to the public. The apartments will be built in four five-story towers above the retail. Amenities, such as a swimming pool, will be on the second floor and accessible to residents only.

The second development would be a larger but similar project, with more retail, on the south side of the boulevard.

Clarett has not yet set a construction date for the second part of the development, but anticipates that it won’t begin until after completion of the first phase.

“We are staggering it,” said Stephan. “We wouldn’t want to deliver 1,000 units to the market all at once.”

Both sides of the project are entitled for some of Hollywood’s last approved supergraphics, those large advertisements on the sides of buildings. It received entitlements for seven supergraphics, for a total of 10,847 square feet between the two sides, with its approved application. The City Council has since banned supergraphics from Hollywood real estate.

Clarett has already received demolition and foundation permits, and has filed for final construction permits. The company hopes to bring in cranes by year’s end and complete the project’s first phase within 30 months.

Demands and benefits

Steve Algermissen, an executive vice president in Colliers International downtown L.A. office, said the project’s success will depend on the rental rates at the time. The uncertain economy and real estate market leave some question as to what kind of rents apartment buildings will be able to command two years from now.

“The perception is if it gets built, it gets leased,” Algermissen said. “It’s an accurate perception now, but we’ll see how things shake out.”

Stephan said it was too early to discuss specifics of the apartments or pricing. But there seems to be enough demand in the area to command competitive rates. Similar projects, such as the 270-unit Jefferson at Hollywood and the 375-unit apartment complex at 1600 Vine, are nearly entirely leased. Monthly rates for apartments in those projects run from roughly $1,500 to more than $3,000.

An environmental review for the Blvd6200 estimated that it would bring in 2,345 residents to Hollywood.

“We need daytime customers in the form of people working here and nighttime customers in the form of people living here,” Morrison said.

She also said the project is going to provide benefits to the Hollywood Business Improvement District even in the two years before those new residents show up.

“Seeing construction equipment come back is going to be a psychological boost to everyone,” she said.

Morrison said the construction of the W Hotel, which opened last year, provided such a sense of success to everyone in her organization that she made the picture of the construction cranes her computer wallpaper.

“It was a symbol of everything we had been working for, for so long,” she said.

Other construction projects in Hollywood waiting to get under way could also be boosted by the construction of Blvd6200. Some of the more notable among them include Millennium Partners and Argent Ventures’ proposed 1 million-square-foot mixed-use project that would include apartments, retail, office and a hotel near the Capitol Records Tower, and Champion Real Estate Co.’s proposed residential-retail project on nearly 3 acres of land at Highland and Selma avenues near Hollywood & Highland.

Delmar Nehrenberg, an L.A. real estate attorney at Allen Matkins Leck Gamble Mallory & Natsis LLP who represents construction companies in the area, said that those developers and others see some of their projects riding on the success of Blvd6200.

“They are watching this and are hoping it goes forward,” Nehrenberg said, “because it will give everyone momentum to get things rolling.”

"Solar energy jobs growing in U.S. and California, study says"- LA Times

Los Angeles Works — Mon, 17 Oct 2011 12:00:AM PST

Solar energy jobs growing in U.S. and California, study says

October 17, 2011

One in every four solar energy jobs in the United States is held by a Californian, and growth in the clean-tech industry is burgeoning nationwide, a new study said.

In August, California had an estimated 25,575 of the 100,237 solar-related jobs nationwide, according to the National Solar Jobs Census 2011, scheduled for release Monday by the Solar Foundation, a research and education organization in Washington.

The total for California was four times greater than the runner-up, Colorado, with 6,186 solar jobs as of last summer.

California ranked first in the nation for generating electricity from both photovoltaic solar panels and concentrated solar power systems that use mirrors to focus the sun's energy to create steam to run turbines, the study said.

"This report shows that the solar industry is not only creating green jobs across California but that the industry is forecast to continue growing at a much faster pace than the overall U.S. economy," said MIchelle Kinman, a clean-energy advocate for Environment California. "California industry and policymakers have a tremendous opportunity to build on this solid foundation and make solar a centerpiece of the state's energy policy."

Nationally, employment in all parts of the solar industry -- including manufacturing, installation, residential, commercial and large-scale power generation -- grew 6.8% in the 12 months prior to August, the study said. Overall U.S. job growth was less than 1% for the same period, it said.

Growth is expected to accelerate by 24%, creating 24,000 jobs over the next year, based on a survey of solar employers.

The industry's momentum is expected to continue despite bad publicity it received from a political scandal surrounding the bankruptcy of Northern California solar panel manufacturer Solyndra. The Fremont-based company recently closed after getting a $535-million federal loan guarantee.

"We have to look beyond the failure of one company and see the tremendous success that's occurring here," said Arno Harris, the chief executive of Recurrent Energy, a San Francisco solar developer.

Solar, added David Hochschild, vice president of another Fremont solar panel maker, Solaria Corp, "is on the cusp of playing a large role in mainstream markets."

Here's the census' list of the top 10 states by the number of solar industry jobs:

1. California 25,575

2. Colorado 6,186

3. Arizona 4,786

4. Pennsylvania 4,703

5. New York 4,279

6. Florida 4,224

7. Texas 3,346

8. Oregon 3,346

9. New Jersey 2,871

10. Massachusetts 2,395

"Terminal Would Give Port Big Boost"- LA Business Journal

Los Angeles Works — Mon, 17 Oct 2011 12:00:AM PST

Terminal Would Give Port Big Boost

New L.A. port facility would handle massive oil tankers.

By James Rufus Koren

Monday, October 17, 2011

The Port of Los Angeles can easily accommodate giant cargo ships carrying thousands of shipping containers, but it can’t handle the kinds of massive tankers that typically transport oil around the world.

That’s a problem for Southern California, which has long consumed oil mostly from in state and Alaska, but soon will see the Middle East, Africa and South America become bigger suppliers.

The solution, according to Plains All American Pipeline LP, is to build a $500 million oil terminal that could handle those large tankers. The publicly traded Houston company is set to begin construction next summer on what would be only the second such terminal in Southern California and the first one built in more than three decades.

The project has been in the works for eight years and was slowed by the recession, but Plains All American Vice President David Wright said the terminal is moving forward now that a greater demand for oil has local refiners looking for new supplies.

“The recession set everybody back, but the basic interest is the same,” Wright said. “Demand for oil and gas is increasing in the L.A. region.”

Plains All American earlier this month received construction permits from the South Coast Air Quality Management District, and the company is expected to complete lease negotiations with the port for the terminal site by early next year.

The terminal won’t be up and running for nearly three years, but the fact that it’s near construction represents a milestone for the port, which has wanted to develop a major oil terminal for more than a decade as California and Alaska oil production slowly falls.

Kathryn McDermott, deputy executive director of the port, noted that the L.A. oil supply has even become an issue outside of the region.

“The state of California has been looking at the two ports’ ability to handle crude into the future, understanding we would have a greater need for crude facilities,” she said. “They’ve been concerned that we will be able to meet the demand for the import of crude oil.”

Deep water

At the twin ports of Los Angeles and Long Beach, only one terminal – Long Beach’s Terminal 121 – can accommodate the large tankers that commonly import Middle Eastern oil.

The Long Beach port imported 29 million metric tons of petroleum products, mostly crude oil, last year, while Los Angeles imported about 11 million metric tons of mostly distilled products, such as gasoline, ferried in smaller ships.

Plains All American estimates that the new terminal would handle 128 million barrels of oil after it is in operation a few years. Eventually, that amount could nearly double.

That’s important because California’s oil needs are met by wells in the state and Alaska, both of which are dwindling sources. No overland oil pipelines serve the state; as a result, oil by sea is becoming a much bigger source.

The kinds of big tankers that would call at the Plains All American terminal need channels between 75 and 80 feet deep; Berth 408 at Pier 400 where Plains All American plans to build is 81 feet deep and could handle the tankers. It would be the deepest port oil terminal in the state.

Pier 400 opened 11 years ago and was built on reclaimed land less than a mile from the entrance to Los Angeles Harbor. The port has always planned to have an oil terminal at the now-vacant site because of its deep water and near-ocean location.

“That’s the least distance you have to get into the harbor. It minimizes the amount of vessel traffic,” Wright said.

Plains All American – which operates terminals, pipelines, and oil and gas storage facilities nationwide – plans to build a terminal capable of docking and unloading a single Very Large Crude Carrier, a ship that carries about 2 million barrels of crude. That’s enough to supply the L.A. Basin with gasoline and other petroleum products for about two days.

Much of the oil offloaded from oil tankers will go into pipelines Plains All American plans to extend to local oil refineries and oil storage sites. The company also will build storage tanks to hold 500,000 gallons of fuel at Berth 408. Plains All American would not take ownership of the oil, which refiners would purchase from producers. Refiners would pay Plains All American for carrying the oil through its pipelines.

John Edwards, an analyst with Morgan Keegan & Co. in Houston who follows the company, said the refiner contracts would likely include both a charge per barrel as well as a reservation fee allowing access to Plains All American’s terminal pipeline.

“Typically these are huge capital investments,” said Edwards,

who added that the project is not dependent on the price of oil, but rather on Southern California demand. “Whether oil is $10 or $100, you’re likely going to have to have a terminal there to offset the declining domestic production.”

Plains All American did not disclose how it plans to pay for the construction cost, but said it generally funds projects with 55 percent equity and 45 percent long-term debt.

Edwards noted that the company typically sets aside between $500 million and $600 million for capital projects each year.

According to the California Energy Commission, there will undoubtedly be demand for the terminal’s oil. The commission in a recent report said the state imported 376 million barrels of oil last year, but will need to import as much as 436 million barrels per year by 2020.

“In 1982, 61 percent of the crude we used came from in the state. Now that’s down to 38 percent,” said commission spokesman Rob Schlichting. “That means the other 62 percent has to come in by sea. So, yeah, there’s a growing need.”

The terminal will have another key benefit to the region: oil security. If the Long Beach terminal were damaged or became inaccessible – as it did briefly in 2001 when two small planes crashed in the harbor and blocked the entrance to the Long Beach port – the region could face a shortage of gasoline in days.

“If anything happens to the one large berth, you have an incredibly major problem,” Wright said.

Local demand

Wright agreed that a big factor behind Plains All American’s decision to build the terminal is that California oil production has been in steady decline since peaking in 1985.

Plains All American operates oil pipelines leading from fields in the San Joaquin Valley into the L.A. Basin, but the company estimates local demand for its crude supplies imported through the port terminal could hit 190,000 barrels per day in a few years. That adds up to about 70 million barrels of oil annually – more than the company could supply from California fields but a fraction of the estimated 250 million barrels that could eventually flow through the terminal.

Also down are imports of Alaskan crude, which are handled by smaller tankers specifically designed for that state, Wright noted.

Unlike many other proposed port projects, there has been limited opposition to the proposed oil terminal. It mostly comes from environmental and community groups that want the tankers to turn off their engines while offloading oil and plug into shore-side electrical power, cutting diesel emissions.

The environmental impact report approved in 2008 calls for 80 percent of ships to plug into shoreside power but that would not occur until the terminal’s 16th year of operation. Environmental and community groups wanted more ships to use shoreside power and to use it more quickly.

However, opposition has never reached the intensity of a fight last decade to keep a liquefied natural gas terminal out of the port. Residents and environmental groups oppose LNG mostly on safety grounds, saying an accident or a terrorist attack at such a facility could unleash an explosion rivaling that of a small nuclear weapon. Even an existing butane tank farm in San Pedro has recently drawn more concern from residents who fear there may be safety issues.

Still, Plains All American will not be able to move forward until it can reach delivery deals with the oil companies that run Los Angeles County’s six major refineries, most of which are clustered around the ports and the South Bay.

BP PLC, ConocoPhillips Co., Chevron Corp. and other companies all operate refineries in the area. Wright said Plains All American has “several customers we’re working with” but he did not disclose which ones.

Wright said talks started several years ago but were halted by both the recession and by uncertainty over the impact of state regulations, specifically Assembly Bill 32, the landmark law that requires California to roll back greenhouse gas emissions. Since then, talks have resumed.

Tupper Hull, a spokesman for the Western States Petroleum Association, which represents the refiners, said there is agreement that a terminal is needed even as California begins to rely more on wind, solar and other forms of energy.

“We have spoken often and loudly that it is vital to the state’s long-term interests to ensure petroleum infrastructure is adequate to meet future energy demands,” Hull said. “Petroleum, by any credible estimations, is going to be a major source of energy.”

"L.A. seeks to give local companies a competitive advantage"- LA Times

Los Angeles Works — Sat, 15 Oct 2011 12:00:AM PST

L.A. seeks to give local companies a competitive advantage

Lawmakers unanimously approve an ordinance that will give local firms an edge when seeking city contracts. It is intended to strengthen businesses, boost tax revenue and create jobs.

By John Hoeffel, Los Angeles Times

October 15, 2011

In a bid to crank up the city's economy, Los Angeles lawmakers unanimously approved an ordinance Friday that will give local companies an edge when seeking city contracts.

The program — spearheaded by Mayor Antonio Villaraigosa's office — is intended to keep the city's money close to home to strengthen businesses, boost tax revenue and create jobs.

"We're purchasing pencils and stationery from companies that are outside the state of California. That is ludicrous and that needs to change," said Councilman Paul Krekorian, who introduced the measure almost a year ago with Councilman Bernard C. Parks.

Under the approved ordinance, which the mayor plans to sign next week, companies with at least 50 full-time employees, or half their total employees or their headquarters in Los Angeles County, would get preferential treatment on contracts worth more than $150,000.

Villaraigosa said in a statement after the vote that the program "helps level the playing field, making it possible for local businesses to compete more effectively for city government contracts." The cost of doing business in Los Angeles is about 10% higher than in other cities.

About 85% of the money Los Angeles spends on contracts goes to businesses outside the city, according to an analysis by the mayor's office covering the 2008-09 fiscal year.

The city does not know how much it spends each year on contracts. Los Angeles spent more than $2.4 billion last fiscal year, the mayor's office said, but that doesn't include almost 20 departments that have not provided data. Of that amount, less than a third would be covered by the new ordinance because it excludes several big-budget agencies, including the port, the airports and the city's utility.

The council also voted Friday to instruct city staff to look into drafting a charter amendment that would limit the new ordinance's benefits solely to businesses in the city of Los Angeles. The city attorney's office has advised the council that the charter currently precludes preferential treatment only for businesses in the city.

"What it comes down to," said Councilman Dennis Zine, "is you've got to take care of your family before you take care of your neighbors." Zine noted that the city bought 3,500 lunches for police and firefighters at Michael Jackson's memorial from Jensen's Finest Foods in San Bernardino County. City Controller Wendy Greuel criticized that decision, concluding it would have been cheaper to buy them locally.

Limiting the contracting preference to city firms is supported by the mayor and many council members. But Councilman Tom LaBonge cautioned against it, noting that helping businesses in nearby cities, such as Pasadena and Glendale, could have desirable effects in Los Angeles. "If we go too parochial, we miss opportunities to be the regional leader that we are," he said.

The ordinance will cost the city money when it chooses local companies that have not submitted the lowest bid. But Charles Swenson, a business professor at USC, studied the proposal and predicted the city would make up any added costs through new jobs and tax revenues.

Under the law, businesses will get an advantage for being located in the county. In competition for city contracts, the amount submitted by a local company would be reduced by 8% when bids are ranked, although the company would still be paid the full amount proposed. For example, a local company's bid of $1 million would be ranked as though it were $920,000.

The ordinance is based on one in Philadelphia, but other cities, including San Jose and Pasadena, have adopted similar preferential programs.

Although the L.A. ordinance does not apply to some major departments, such as Water and Power, it encourages those agencies to adopt it. The mayor's office said he intends to press all city departments to join the effort. Noting the mayor's support and the 12-0 vote by the council, Krekorian said: "I would say they should consider themselves encouraged."

"L.A. Launches Cleantech Incubator in the Arts District"- Blogdowntown

Los Angeles Works — Tue, 11 Oct 2011 12:00:AM PST

L.A. Launches Cleantech Incubator in the Arts District

By Eric Richardson
Published: Tuesday, October 11, 2011, at 02:36PM

Rendering of the L.A. Cleantech Incubator's future home in the La Kretz Innovation Campus.

DOWNTOWN LOS ANGELES — In his 2009 State of the City speech, Mayor Antonio Villaraigosa proclaimed that efforts along a five-mile stretch of the L.A. River to be dubbed the "Cleantech Corridor" would "transform our industrial core into ground zero for green jobs."

Two-and-a-half years later, the corridor is finally getting its first major anchor. On Tuesday evening, Villaraigosa and other city officials will gather in the Arts District to formally launch the Los Angeles Cleantech Incubator, a non-profit aimed at helping small cleantech businesses develop their products and get them into the commercial market.

"The incubator is the business-equivalent of a baseball farm system relative to the green economy here in Los Angeles," explains Fred Watti, the Executive Director hired to get the organization up and running.

Watti, who has a long background in startup companies as a founder and then as a management consultant, is excited by the challenges the cleantech sector poses.

"I see it as a huge business opportunity, aside from all the good things it is going to do for the environment," he says.

Before industries like solar power and electric vehicles can really become solid businesses, though, they need dramatic reductions in cost when compared to traditional models.

They also need space, both offices and labs.

"An internet company demonstrates its ability in the marketplace by getting up and out and getting a response," Watti explains. "A cleantech company has to demonstrate its technology and ability in a real, live commercial environment for it to sell."

That is what the incubator, located next to the Barker Block and Urth Caffe, hopes to provide. Currently in temporary space converted from a bus repair depot, the organization will be a large part of the soon-to-be-developed La Kretz Innovation Campus, which will occupy an entire block at 5th and Hewitt. LADWP and the Community Redevelopment Agency have both put funding into the site and incubator.

The facility will be a "game-changer" for both L.A.'s cleantech sector and for the Arts District, Watti says.

"Very few people know that LA is probably the biggest clean market in the country," he says. "We're so geographically spread out that we don't have a center, and it's tough for us to work together and for us to collaborate and to build on that."

"That's our vision: to build that missing center for the cleantech sector."

For the Arts District, the city believes the incubator investment will create 1600 new jobs over the next five years. That's a lot for a facility that will house just 25 companies.

"It's going to be a magnet," Watti explains. "When you have companies like that, what do they do? They attract other companies."

Watti, who has been involved in advising the city on cleantech issues for the last three years, believes the time and momentum is right.

""There are a lot of people in city government that really care about this," he says.

"Mayor Villaraigosa unveils website to help Los Angeles businesses"- LA Times

Los Angeles Works — Thu, 06 Oct 2011 12:00:AM PST

Mayor Villaraigosa unveils website to help Los Angeles businesses

October 6, 2011 | 1:58 pm

Los Angeles Mayor Antonio Villaraigosa, borrowing a conference room from an expanding multinational biotech firm as a backdrop, unveiled a new city website Thursday designed to make it easier for businesses to find places in L.A. to locate their headquarters, open a manufacturing plant or launch a retail operation.

Villaraigosa, who as president of the U.S. Conference of Mayors has been pressing Congress to act on legislation to create jobs, stressed what he has done to create jobs in Los Angeles.

Noting that dwindling revenues have forced the city to cut about a quarter of its workforce, the major told an invited audience of about 130 business and community leaders: “We have had to face many budget crises, so one of the things we are focused on is how to expand the pie.”

Villaraigosa hosted the event at Grifols in El Sereno, which develops blood and plasma therapies. The Barcelona, Spain-based company has invested $135 million in its operations in Los Angeles, employs about 700 and is now hiring about 70 entry-level manufacturing technicians.

The mayor, who grew up nearby in City Terrace, also pointed out that he was familiar with the area. “During the fall after a rain, the grasses on these hills used to grow very tall,” he said, “so we would cut the cardboard boxes and we would either try to surf on them down the hill or sled, you know, bobsled them, that was our form of recreation so I know this neighborhood very, very well.”

Flanked by two large screens, the mayor announced the new website, LocateLA.org. It allows businesses to search for available sites and buildings in Los Angeles by multiple criteria, including neighborhood demographics, and provides detailed information on the properties.

“That was great. That was awesome. You like that?” the mayor said, coaxing applause from the audience after a staff member demonstrated how intuitive it is to navigate the site. “As you can see, this is a powerful job-creating tool, and it is one of a number of initiatives on the part of our office.”

The mayor then listed some of the city’s job-creation accomplishments during his tenure.

He cited the suspension of the gross receipts tax for businesses that move to Los Angeles and named a few companies that have decided to relocate, including the international architecture firm Gensler, which is moving from Santa Monica to downtown. He noted that the tax, which he would like to eliminate, is higher in Los Angeles than in many neighboring cities. “That’s really hurt us,” he said.

The mayor also said he was pushing the City Council to adopt a plan to give local companies preference when bidding on city contracts and working to expand the city’s enterprise zones. He highlighted major construction initiatives, including plans to modernize the port and Los Angeles International Airport. “There aren’t a whole lot of airports in as bad a shape as LAX has been,” he said.

He also singled out transportation projects being built with money from Measure R, the half-cent sales tax that voters passed in 2008, including the $1.7-billion Crenshaw/LAX Line rail project.

And he touted efforts at City Hall to clear away red tape, including work being done by the Office of Small Business and a new streamlined approval process for developers.

"Mayor Villaraigosa Tackles Job Creation in L.A."- Neon Tommy

Los Angeles Works — Thu, 06 Oct 2011 12:00:AM PST

Mayor Villaraigosa Tackles Job Creation in L.A.

Judy L. Wang | October 6, 2011

Mayor Antonio Villaraigosa held a town hall meeting Thursday to present his plans to stimulate job creation in Los Angeles.

The meeting was hosted at Grifols Biological, a global health care company that has partnered with Villaraigosa to expand its East L.A. facilities to create 300 new jobs.

The room was packed with businessmen and women, apartment landlords, small family business owners and law enforcement officers.

Villaraigosa addressed the urgency of job creation.

“I’d ask people, ‘Where are you from?’ And they would say ‘Temecula,’ ‘San Bernardino,’ ‘Riverside.’ That’s a really great thing,” he said, “but we need to get more people from L.A. because the taxpayers of L.A have to benefit from these efforts.”

Behind Nevada, California has the second-highest unemployment rate in the nation. The unemployment rate has risen in L.A. County from 12.3 to 12.5 percent.

Millions of Californians face chronic unemployment as 16.3 percent have incomes below the poverty line.

Villaraigosa outlined his plan in five major steps that included extending a three-year tax exemption on new businesses; the modernization of L.A. International Airport (LAX); and Measure R, a half-penny sales tax that would help double the size of the rail systems and repair roads and highways. The LAX modernization could cost up to $4.1 billion but could create 39,000 jobs. As for Measure R, the mayor said he sees the need to close the time gap.

"People would ask me, 'Where's that subway you promised?' and I have to explain to people that this was a half-penny sales tax, not a 10 cent sales tax," the mayor said. "But those questions got us to thinking, if we could accelerate the 30 years of spending into a 10-year period of time. We could bond against and try to get a loan to bridge the difference. It could create 166,000 jobs, double the size of the rail system, save 10 million gallons of gas and increase transit boarding by 77 million."

The mayor unveiled a new website, LocateLA.org. The website is designed to provide businesses wishing to expand, re-locate, or start-up with information about their desired areas. Business owners can search communities, businesses, buildings or sites to find statistics relevant to their business ventures.

After the conference there were mixed reactions to the mayor’s proposals. Arnie Corlin, board member for the trade group Apartment Association of Greater Los Angeles, was unsure of Villaraigosa's pitch.

“I haven’t decided yet," Corlin said. "I think it is important that we make the government bureaucracy easier for creating jobs. For individuals like myself who have a challenge going through the city process, I found it very onerous.”

Bill Hoston, president and CEO of Transportation Foundation of Los Angeles, left the meeting appreciative that the mayor was willing to facilitate the conversation.

“I like the idea that the mayor has a team of people that will help you," Hoston said. "It’s business-friendly and we’re not a business-friendly state. The economy is very bad right now and California is probably in the worst state it has ever been in. The mayor is trying to bring all this together, which is good.”

"On Location: Film production rises 15% in third quarter"- LA Times

Los Angeles Works — Wed, 05 Oct 2011 12:00:AM PST

On Location: Film production rises 15% in third quarter

Amid a spate of gloomy reports about the state of the national economy, Hollywood offered some bright news this week: Local production activity rebounded sharply in the third quarter.

Overall shoots for on-location filming in Los Angeles and unincorporated areas of L.A. County jumped 15% in the three-month period ending Sept. 30, compared with the same time a year ago, according to FilmL.A. Inc., the nonprofit group that processes film permits.

The figures -– which reflect filming on streets and non-certified sound stages -– mark a turnaround from the second quarter, when production activity was virtually flat.

Fueling the increase was a surge in feature-film shoots, which generated 2,079 production days, up a whopping 50% from the third quarter of 2010.

FilmL.A. officials attributed the swell in part to California's film tax credit, which allocated another $100 million in July to about 30 new projects. The program, which took effect in 2009, gives filmmakers a tax credit of up to 25% toward qualified production expenses. They can then apply the credit toward any sales or business use tax liability they have with the state.

Typically, L.A. enjoys a spurt in production activity after a new round of tax credits is allocated.

Several high-profile feature films currently shooting in the city are taking advantage of the incentives, including the Warner Bros. drama “Gangster Squad,” about an anti-Mafia unit of the LAPD during the 1940s and 1950s; "Argo," an Iranian caper starring and directed by Ben Affleck; and the Judd Apatow comedy "This is Forty."

Despite the surge, there are continuing signs that L.A. continues to lose business to other states that offer more generous tax breaks, such as Louisiana, Georgia and especially New York, which is enjoying a record year for TV production.

On-location filming for TV dramas, for example, was down 20% in the third quarter, reflecting the stiff competition from New York and other cities. A recent study by FilmL.A. found that although 87 pilots were produced in L.A. last season, up from 76 the prior season, the region’s share of pilot production has fallen to 51%, down from 82% six years ago.

At the same time, New York more than doubled its share, to roughly 10% of all pilots, according to the study.

Notwithstanding the falloff in dramas, overall TV production still climbed 6% in the third quarter, reflecting a 30% jump in reality-TV programs.

Meanwhile, the quarter saw a slew of commercial shoots from companies such as AT&T, Wal-Mart and Honda, with production jumping 17% over last year and following an 8% drop in the second quarter.

"Villaraigosa urges city local hiring preference"- OurWeekly

Los Angeles Works — Wed, 05 Oct 2011 12:00:AM PST

Villaraigosa urges city local hiring preference

Oct 5, 2011

LOS ANGELES, Calif.—Mayor Antonio Villaraigosa today urged the City Council to swiftly pass an ordinance that would give a boost to local businesses that bid on city projects.

Speaking to a gathering of several hundred Los Angeles Chamber of Commerce members at the “Access City Hall” conference, the mayor said the ordinance would give an 8 percent advantage to local businesses.

"I think, well according to USC, it will create about 10,000 jobs, but importantly, recycle dollars back into local businesses,” Villaraigosa told the conference attendees. “Virtually every big city in the country has that but here.”

The city spent about $2 billion on construction during the 2010-11 fiscal year, with less than 15 percent going to local businesses, according to the mayor’s ofice. The city is expected to spend about $2.7 billion on construction during the current fiscal year.

The ordinance could help department general managers meet a goal set by the mayor for at least 25 percent of contracts going to local businesses, according to the mayor.

The ordinance, introduced by Councilmen Paul Krekorian and Bernard Parks, would consider the bids from local businesses at 8 percent below their submitted value for contracts where selection is based primarily on the lowest bid. It would also give an 8 percent point boost on contracts that are scored on a variety of other factors.

“This is a perfect opportunity to leverage the city’s own purchasing power as a local economic stimulus program to put people back to work,” Krekorian said.

The ordinance could increase the total cost to the city of contracts.

Officials are betting the ordinance would be a net positive, bringing in more revenue in the long term through sales, property and other taxes from employees at local businesses that benefit from the measure.

“It’s more than just a bet,” Krekorian said, noting the ordinance is based on an economic analysis by professors at the University of Southern California.

“It will have an immediate impact as soon as the money is spent,” he said. “It’s not a question of trying to just attract local businesses here.

It’s also that the money that we’re spending will be spent here.”

To qualify, businesses would have to be registered for at least six months and employ at least 50 full-time employees, half of which would have to work 60 percent of the time in the city.

The council is expected to vote on the ordinance within the next two weeks.

By Richie Duchon | City News Service

"U.S. auto sales rise 10% in September"- LA Times

Los Angeles Works — Tue, 04 Oct 2011 12:00:AM PST

U.S. auto sales rise 10% in September

Consumers are heading to dealerships, attracted by low interest rates and the need to replace aging cars.

Jose Ortega unhooks a new Jeep from his delivery truck at the Hollywood Chrysler Jeep sales lot in Hollywood, Fla. Chrysler Group reported that its U.S. sales of 127,334 units last month was a 27% increase compared with September 2010 sales. (Joe Raedle, Getty Images / October 4, 2011)

By Jerry Hirsch, Los Angeles Times

October 4, 2011

Despite shaky consumer confidence, high unemployment and a rocky stock market, the auto industry somehow keeps rolling along.

Automakers sold almost 1.1 million vehicles in September, up 10% from the same month a year earlier and a 2% increase from August. That translates to an annual sales rate of more than 13 million, the best since April.

It was one of the few bright spots in an otherwise dismal month for the nation's economy.

"That's the kind of stronger number we would definitely like to see," said Scott Hoyt, senior director of consumer economics at Moody's Analytics. "Consumer spending has been flat since late spring, and a jump of a million units in auto sales suggests some growth, and that would be positive for keeping the economy out of recession."

Consumers are heading to dealerships to replace aging cars. The industry estimates that the average age of vehicles on the road is approaching 11 years as people have delayed purchases because of the recession and more recently an uncertain economy.

"We have pent-up demand. Consumers want to replace the cars. If we get just a little better job growth a number like this could be sustainable," Hoyt said.

Low interest rates also are bolstering the market.

"The lower cost of funds to manufacturers and the institutions makes it less expensive to offer those types of promotions," said Don Johnson, General Motors Co.'s vice president of U.S. sales operations.

Toyota Motor Corp., for example, isn't charging interest on loans for purchases of seven of its 2011 vehicles, including the popular Camry, Sienna minivan and RAV4 sport utility vehicle.

"Most consumers like to minimize their monthly payment," said Bob Carter, Toyota division group vice president and general manager. Zero-percent or low-interest rates "are the most successful way to get an attractive payment."

Despite the rosy sales picture in September, not every economist agrees that the auto sector will represent a pillar of economic support in the coming months.

"I am skeptical that [auto sales] would stay that high through the holiday season given how bad the job market is and given declining household incomes and really weak consumer confidence and consumer expectations," said Ken Goldstein, senior economist with the Conference Board.

Domestic automakers had a strong month. Chrysler Group led the pack with U.S. sales up 27% from a year earlier. GM sales rose 20% and Ford Motor Co. increased 9%.

South Korean automakers Hyundai Motor America and Kia Motors America also did well, with sales rising 12% and 18%, respectively.

However, Toyota and Honda Motor Co. continued to struggle. Sales were hobbled by car shortages resulting from the March earthquake and tsunami in Japan, which disrupted factory production overseas and in North America.

Toyota's sales dropped 18%. Honda sales fell 8%.

Both automakers said they have resumed full production and expect to rebound in October.

"In September, production in both North America and Japan returned to normal levels for the first time since the March 11 earthquake and tsunami," Carter said. "Our plants are now working overtime and dealer deliveries will continue to increase through the remainder of 2011."

Of the major Japanese auto companies, Nissan North America bucked the trend. Its sales rose 25% in September.

"Manufacturing expanded slightly in September"- Daily News

Los Angeles Works — Mon, 03 Oct 2011 12:00:AM PST

Manufacturing expanded slightly in September

By Christopher S. Rugaber, AP Economics Writer

Posted: 10/03/2011 11:44:16 AM PDT

Updated: 10/03/2011 11:49:42 AM PDT

In this Aug. 30, 2011 file photo, Chad Ipox grinds and polishes a stainless steel tank top at JV Northwest, in Canby, Ore. JV Northwest manufactures stainless steel vessels. Manufacturing grew at a faster pace in September than the previous month, though the pace of growth was modest. (AP Photo/Rick Bowmer)

WASHINGTON - Manufacturing grew at a faster pace in September than in August, though the pace of growth remains weak.

The Institute for Supply Management said Monday that its manufacturing index rose to 51.6, up from 50.6 in August. A reading above 50 indicates expansion. The increase follows two months of declines.

Measures of production and exports grew, while a gauge of new orders was unchanged. Factories also added workers, the report said. The ISM is a trade group of purchasing executives.

The manufacturing sector has been a key driver of the economy's growth since the recession officially ended in June 2009. The index topped 60 for four straight months earlier this year. It rose above 50 a month after the recession ended and has topped that level ever since.

But manufacturing accounts for only about 11 percent of the economy and can do only so much to support the recovery. And manufacturing has slowed in the past several months as consumer spending has weakened in response to high unemployment and stagnant wages. High gas and food prices are also forcing shoppers to cut back in other areas.

Respondents to the survey expressed "concern over the sluggish economy, political and policy uncertainty in Washington, and forecasts of ongoing high unemployment," said Bradley Holcomb, chair of the ISM's survey committee.

The report follows other indicators that show the economy is sputtering though still growing. Companies ordered more machinery, computers and other equipment in August, a government report last week showed.

Twelve of the 18 manufacturing industries tracked by the ISM reported growth in September. They include food and beverages; clothing; autos and other transportation equipment; and chemicals. Furniture, paper products, and electrical equipment were among those that contracted.

"Short rail line serving L.A. and Long Beach ports gets greener"- LA Times

Los Angeles Works — Thu, 29 Sep 2011 12:00:AM PST

Short rail line serving L.A. and Long Beach ports gets greener

Pacific Harbor Line, known as one of the least polluting U.S. railroads, will reduce pollution further by equipping part of its train fleet with advanced engines and special exhaust filters.

New technology for one of the shortest and cleanest rail lines in the U.S. will make it even greener. New engines and exhaust filters are expected to reduce pollution on the Pacific Harbor Line, which serves the twin ports of Los Angeles and Long Beach. (Katie Falkenberg, For The Times / September 29, 2011)

By Ronald D. White, Los Angeles Times

September 29, 2011

Pacific Harbor Line Inc. is one of the shortest railroads in the nation, operating only 18 route miles entirely inside the neighboring ports of Los Angeles and Long Beach.

But the tiny railway is out to smoke its bigger competition when it comes to environmental friendliness.

Already lauded as one of the least polluting U.S. railroads, Pacific Harbor Line on Wednesday unveiled its latest effort at clean living: a glossy, black 2,000-horsepower locomotive that appeared to have undergone few changes except for a new bulge on its roof and a sound, at idle, that one executive said was more like a "giant sewing machine" than a train engine.

The railroad is in the process of upgrading 16 of its 23 locomotives with advanced engines and special exhaust systems that will sharply reduce some key components of air pollution. Pacific Harbor Line said the upgrades would result in an 85% reduction in particulate matter — dust, smoke and other particles that contribute to serious health problems, such as respiratory disease and heart attacks — and a 38% reduction in smog-forming nitrogen oxide compared with the rail line's fleet six years ago.

"We have taken the greenest fleet in America and improved it," said Pacific Harbor Line Managing Director Andrew C. Fox, the executive who hears sewing machines instead of roaring engines.

The effort will elevate the trains one notch in the Environmental Protection Agency's four-tier system of emissions standards for diesel engines; the only cleaner engines would be labeled "Tier 4," and few of those are in operation.

The anticipated reduction in air pollution is a big deal, even to some of the seaports' toughest critics.

"If you look at the big private railroads, who are out proposing newer and bigger rail yards, they have not stepped up to the plate like this one has in cleaning up their fleets," said David Pettit, senior attorney at the Natural Resources Defense Council.

"It's going to help clean up the air at the twin ports. They are the largest sources of deadly particulate matter in the region, and anything that makes that situation better is a win for public health," Pettit said.

The ports of Los Angeles and Long Beach together are the sixth-busiest harbor in the world, handling more than 40% of the nation's Asian imports. Pacific Harbor Line doesn't handle all of that traffic, but it still plays a crucial role in the movement of cargo. It's the hauler for the nine so-called on-dock rail facilities inside the ports.

Pacific Harbor Line's job is to break down trains as they arrive and send their cargo containers to the nine terminals at the ports, where containers are transferred to ships. The railway also assembles trains that haul freight to much of the nation, connecting to the Union Pacific and BNSF transcontinental rail line.

Over the course of a typical year, Pacific Harbor Line will handle 1 million rail carloads, hauling an assortment of goods, including automobiles, borax, cotton, grain, heavy equipment, cargo containers, lumber, manufactured goods, petrochemicals and scrap.

One of 22 short-line railroads operating in California, it "handles the first mile and the last mile" of transport, said Mike Stolzman, the company's president.

Its role in California is unique. In the mid-1990s, there were still three separate railroads trying to get cargo in and out of the ports in a timely fashion, a situation that led to frequent disputes over timing and rights of way. In the late '90s, the ports and the railroads decided a neutral third body would work inside the ports.

They chose Anacostia & Pacific Co., one of many private companies that run the regional and short line railroads that connect communities to main rail lines. Pacific Harbor Line began running in 1998.

With one of the youngest fleets in the nation, Pacific Harbor Line had already been dubbed "the greenest railroad in America" by Railway Age magazine. But the company was approached by the ports, Fox said, and asked whether it could do even more to reduce emissions.

The company worked with the South Coast Air Quality Management District and received one of the agency's Carl Moyer grants to pay for the bulk of the retrofit costs.

Pacific Harbor Line chose the engine offered by Progress Rail Services, a division of Caterpillar. The engine would be paired with that new bulge on the roof of the locomotive, a state-of-the-art filter manufactured by a Swiss company called Hug Engineering.

"We're partners with the ports, so we said we would be happy to see what more we could do," Fox said. "The grant gave us $11 million, which will pay for 85% of the costs. We could not have done this without the partnership with the AQMD."

Gary Eelman, vice president of locomotive sales and leasing for Progress Rail Services, said that the locomotives were a first for the U.S. Although such new engines have been paired with the sophisticated filters in Europe, Eelman said, it had never been done in the U.S.

Pacific Harbor Line expects to receive all of the upgraded locomotives by the end of the year, well ahead of an anticipated boost in business once the Port of Los Angeles' $274-million renovation of its TraPac cargo terminal is complete in about three years.

The renovation will add a 10th on-dock rail facility at the ports, and Pacific Harbor Line will handle that cargo too.

"DWP begins shift away from ocean cooling at power plants"- Daily News

Los Angeles Works — Thu, 29 Sep 2011 12:00:AM PST

DWP begins shift away from ocean cooling at power plants

Daily News Wire Services

Posted: 09/29/2011 02:48:07 PM PDT

Updated: 09/29/2011 02:48:48 PM PDT

LOS ANGELES -- The Department of Water and Power broke ground today on a coastal power project in Long Beach that marks the beginning of an ambitious effort to completely eliminate the use of ocean water to cool its coastal power plants by 2029.

The project will replace two of six power generators at the 1960s-era Haynes Generating Station with six 100-megawatt natural gas combustion turbines. Instead of cooling steam turbines with ocean water, the department will use a process known as "dry cooling," which uses giant radiators similar to the way a car engine is cooled.

The LADWP says the new turbines will allow the city to fire up the local power plant in minutes to meet peak demand on hot days or when power generated outside the region is threatened by wildfires or is down for maintenance. The steam turbines require about 36 hours to reach their maximum power capacity.

"That speed in ramping up and down will help us meet another very important objective -- integrating more renewable energy into our electric grid," LADWP General Manager Ron Nichols said.

"When the wind is blowing strong and delivering power to L.A., we need speed and flexibility to adjust to that power source," he said. "These new generating plants are part of an intricate balancing act to maintain a steady flow of power to our customers."

The entire Haynes Repowering Project is estimated to cost $782 million. The first new units are scheduled to be online by 2013. The $2.2 billion effort to replace all coastal power generators that require ocean water cooling is planned to be complete by 2029.

Haynes, which usually operates on extreme heat days, is capable of powering about half the city. It can generate about 1,600 megawatts of power.

"This project serves a number of environmental benefits -- improving habitat for ocean life, supporting the increase of wind and solar power, and cleaning the air by reducing emissions," Mayor Antonio Villaraigosa said.

"On Location: Feature films fuel 16% jump in L.A. location shoots"- LA Times

Los Angeles Works — Tue, 27 Sep 2011 12:00:AM PST

On Location: Feature films fuel 16% jump in L.A. location shoots

"Fewer people applied for unemployment benefits"- LA Times

Los Angeles Works — Thu, 22 Sep 2011 12:00:AM PST

Fewer people applied for unemployment benefits

Associated Press

7:27 AM PDT, September 22, 2011

The number of Americans applying for unemployment benefits fell last week, though the decline isn't enough to signal improvement in the job market.

Weekly applications dropped by 9,000 to a seasonally adjusted 423,000, the Labor Department said Thursday.

The four-week average, a less volatile figure, rose slightly for the fifth straight week to 421,000.

Applications typically need to fall below 375,000 to signal sustainable job growth. They haven't been that low since February.

"September is shaping up to be another difficult month for the job market," said Ryan Sweet, an economist at Moody's Analytics.

Higher unemployment benefit applications may suggest more employers are laying off workers amid growing worries that the economy has weakened.

Pacific Biosciences of California Inc. said Wednesday that it will cut 130 employees, or 28 percent of its work force. Last week, Bank of America Corp. said it is cutting 30,000 jobs.

Still, economists say the main problem is that there are few jobs for the 14 million people who are unemployed.

The economy will probably see some job growth in September after none in August, Sweet said. But the net gains will mostly come from roughly 45,000 Verizon workers who are back on the job after an August strike.

"Outside of that, it seems that hiring has been kept to a minimum," Sweet said.

Many businesses pulled back on hiring this spring after seeing demand for their products drop. Consumers have had less money to spend on discretionary goods because they are paying higher prices for gas and food, while seeing meager pay raises. That has taken a toll on the economy because consumer spending fuels 70 percent of growth.

In the first half of the year, the economy expanded at an annual rate of just 0.7 percent. In August, employers added no net jobs, and consumers didn't increase their spending on retail goods.

The unemployment rate has been above 9 percent in all but two months since the recession officially ended more than two years ago. Last month it was 9.1 percent.

Most economists expect the economy will grow no more than 2 percent for the year. That's barely enough to keep up with population growth, and far below the 5 percent rate that most economists say is needed to bring down the unemployment rate.

The number of people receiving unemployment benefits fell for the third time in four weeks, to 3.73 million. But that doesn't include more than 3 million people receiving extended benefits under emergency programs set up by Congress during the recession.

All told, about 6.9 million people received unemployment aid in the week ending Sept. 3, the latest data available. That's down about 250,000 from the previous week.

In another report, a private research group said the U.S. economy will likely expand this fall at a weak pace and avoid slipping back into another recession.

The Conference Board says its index of leading economic indicators rose 0.3 percent in August, the fourth straight increase

The Federal Reserve's efforts to keep interest rates low appear to have helped the financial sector. Four of the 10 measures that the Conference Board uses to compile its index showed improvement. Two were related to the financial sector.

Still, factory orders, unemployment benefit applications and hours worked were among six measures that weakened in August.

"Valley home sales on the rise"- Daily News

Los Angeles Works — Wed, 21 Sep 2011 12:00:AM PST

Valley home sales on the rise

By Gregory J. Wilcox, Staff Writer

Posted: 09/21/2011 01:00:00 AM PDT

Home sales in the San Fernando Valley inched up in August for the first time in more than a year, while foreclosure activity also spiked, a research center said Tuesday.

Sales of houses and condominiums increased 2 percent last month to 1,350 properties from 1,318 a year earlier, said the San Fernando Valley Economic Research Center at CSUN. It was the first year-over-year increase in 13 months.

And sales popped up 11.5 percent from 1,211 in July.

"I did like the sales figures. And usually August doesn't jump by that much (from July)," said Bill Roberts, the center's director.

The median resale house price fell 9percent last month to $365,000 from $400,000 a year earlier and down $5,000 from July.

"Right now we are kind of bumping along the bottom," Roberts said. "A third of the market is still foreclosures and that will probably persist into the spring."

Sales counts in the coming months should give more clarity to the market's direction because numbers in the first half of last year were artificially inflated by federal and state tax credits. But consumers are lacking in confidence and cash.

"We're exactly where we were in terms of purchasing power as of March 2009, which is where we were in 2002," Roberts said.

Both the number of foreclosure starts and lost properties increased in August from their year-ago and July levels.

The number of mortgage holders becoming seriously behind in their payments increased 12.5 percent to 1,383 from 1,229 a year ago and nearly doubled from 681 in July.

"It raises a concern, but it's just one month and it's hard to make a prediction based on one month. It could be banks just clearing stuff out," Roberts said.

Foreclosures increased 13.5 percent to 471 properties from 415 a year earlier and increased 14 percent from July. Foreclosures have increased from their year-ago level four of the last five months.

The housing market paralysis won't ease until the economy becomes strong enough to start creating jobs, said Leslie Appleton-Young, chief economist at the California Association of Realtors,

"Clearly there is a tremendous amount of uncertainty and apprehension that will impact the housing market in the year ahead," Appleton-Young said.

"LAX Terminal to Get Major Upgrade"- NBC Los Angeles

Los Angeles Works — Tue, 20 Sep 2011 12:00:AM PST

LAX Terminal to Get Major Upgrade

By Scott Weber

| Tuesday, Sep 20, 2011 | Updated 6:20 AM PDT

Los Angeles International Airport's Terminal 5 is about to get a $229 million facelift, it was announced Monday.

The Los Angeles City Council's recent approval of new lease terms with Delta for its terminal allows the multi-million dollar upgrade to go forward at no cost to taxpayers.

"The City Council's action allows LAWA and our partners to continue forward on modernizing Terminal 5 and enhancing customer service for the nearly 6.6 million domestic and international travelers who pass through the terminal each year,'' said LAWA Executive Director Gina Marie Lindsey.

The lease, which expires in 2025, calls for Delta to cover $11.8 million in renovations to "proprietary'' areas such as boarding gates and club lounges. The Transportation Security Administration covered $25 million for a new "in-line'' checked baggage screening system. And LAWA put up the remaining $192 million for the rest of the construction.

The LAWA-paid improvements come mainly from passenger fees and LAX parking revenue, according to airport officials, who also said they anticipate the lease and improvements will generate about $283 million in revenue for the airport authority through 2025.

A number of renovations at Terminal 5 are already complete, including improvements to federal screening areas and new escalators and elevators. Officials claim the infrastructure will be safer through the use of infra-red sensors and more energy efficient through the use of a "sleep mode'' for some parts of the terminal.

Delta will soon begin renovating ticketing and baggage claim areas, boarding gates and 13 passenger bridges connecting gates to planes, officials said. The entire renovation is scheduled to be complete by 2015.

"Paramount Pictures plans $700-million upgrade to Hollywood lot"- LA Times

Los Angeles Works — Tue, 20 Sep 2011 12:00:AM PST

Paramount Pictures plans $700-million upgrade to Hollywood lot

Paramount envisions improvements that include new sound stages and offices, an expansion that would create nearly 7,300 jobs during construction.

A rendering shows the proposed future Bronson Gate at Paramount Pictures. About 1.4 million square feet of development would take place over the next two decades at Paramount’s Melrose Avenue headquarters and some adjacent properties owned by the company, if city officials approve. (Paramount Pictures Corp. / September 21, 2011)

By Roger Vincent, Los Angeles Times

6:05 PM PDT, September 20, 2011

Paramount Pictures Corp. unveiled plans Tuesday for $700 million in improvements including new sound stages and offices for its storied Hollywood lot.

About 1.4 million square feet of development would take place over the next two decades at Paramount's Melrose Avenue headquarters and some adjacent properties owned by the company, if city officials approve.

"We have run out of options for creating more production space," said Frederick Huntsberry, Paramount's chief operating officer.

The internal expansion would create nearly 7,300 jobs during construction and accommodate 5,500 permanent workers at the studio, he said.

The studio is awash in Hollywood history — think Gloria Swanson as Norma Desmond desperately trying to enter its famous gate in "Sunset Boulevard" — but faces challenges to compete with more modern studios and to continue to expand its services to television and film producers in the decades ahead.

The lot is a congested warren of stages, offices, trailers and support facilities such as woodworking mills that date to the early 20^t^h century. The layout is byzantine in part because Paramount bought the former rival RKO studio lot from Desilu Productions to create the lot known today.

In spite of its awkwardly cramped quarters, Paramount operates around the clock with as many as 5,000 people a day, most of them working for independent producers who rent facilities on the lot to make shows such as "Glee," "Community" and "NCIS: Los Angeles."

Part of the challenge for architects Rios Clemente Hale Studios and Levin & Associates Architects will be to expand Paramount's capacity without taking away its raffish charm as a homey old-Hollywood campus. Much of it is unchanged from the days of Clara Bow and Gary Cooper.

Decades ago, when other studios were flush with cash and went on modernization sprees, "Paramount had bad management and bad films," said architect Ann Gray, in charge of design and development at the studio in the late 1980s and early 1990s.

Paramount's financial troubles left the old studio mostly unchanged for four decades until it expanded during the tenure of then-President Frank Mancuso and Gray, who now primarily consults for developers and publishes a magazine for Los Angeles architects. For its size, the 56-acre lot "has really been underutilized from the very beginning," she said.

The current chief executive of Viacom Inc.-owned Paramount, Brad Grey, said the proposed growth plan is intended to protect the company's legacy and ensure that the studio remains viable for future generations in the entertainment industry.

"This is a wonderful way to reinvest in what brought us to the party," Grey said.

There are hurdles to cross before development can begin.

The studio will shortly file a master plan application with the city and begin work on the environmental review process. It also will reach out to neighbors and business owners in the area to explain the development it is calling the Hollywood Project. The process, including multiple public hearings, could take about two years.

Paramount Studios is in Eric Garcetti's district. The city councilman said he is "very excited to see the confidence Paramount has in Los Angeles and Hollywood. I believe we are in Hollywood's second golden age right now."

Other studios have been upgrading and expanding their facilities. NBCUniversal is seeking approval for a $3-billion overhaul of Universal City that would add nearly 3,000 residences to the famed studio property in the San Fernando Valley. Its plans also call for the construction of additional studios and offices for producing movies and television shows, as well as a hotel, shops and tourist attractions.

Studios vie to attract talent, said commercial real estate broker Carl Muhlstein, who has worked on large studio sales and leases. "They want to offer the right mix of services and facilities — not necessarily modern ones — to be competitive."

Paramount's makeover would mingle the old with the new, architect Robert Hale said. Much of the construction would take place inside the studio on the perimeter along Melrose and on surface parking lots. One of the lots with a vast mural of the sky behind it has been occasionally flooded for filming scenes on water, but advances in computer technology have eliminated the need for large fake lakes.

Paramount hopes to modernize systems such as air conditioning and power while expanding facilities to make television shows and movies. There is also high demand for offices from producers and other creative types who find offices on the lot convenient and prestigious, Huntsberry said.

The goal is also to keep Paramount a cocoon of sorts.

"Frank Mancuso said creative people are very insecure," architect Gray recalled. "He said, 'We want an environment where they feel secure enough to be as creative as they can be.'"

"Rocketdyne set to build engines to power rocket"- Daily News

Los Angeles Works — Thu, 15 Sep 2011 12:00:AM PST

Rocketdyne set to build engines to power rocket

By Gregory J. Wilcox, Staff Writer

Posted: 09/15/2011 01:00:00 AM PDT

The Pratt & Whitney Rocketdyne next-generation J-2X engine undergoes a combined chill test and 1.9-second ignition test on July 14, 2011 at NASA's John C. Stennis Space Center. (Photo courtesy Pratt & Whitney Rocketdyne)

When and if astronauts finally blast off for deep space, their monster rocket would be powered by liquid-hydrogen engines designed by Pratt & Whitney Rocketdyne in Canoga Park.

According to plans unveiled Wednesday by NASA, five Rocketdyne RS-25D/E engines producing more than 2 million pounds of thrust would launch the 34-story rocket, while the company's J-2X engine would propel the second stage of the spacecraft.

"It was a long time coming, but we are really glad," Rocketdyne Vice President John Vilja said. "There is a lot open to question, but this is a great first step."

Vilja said that is too early to estimate what kind of an economic impact Rocketdyne could receive from the Space Launch System, which depends on congressional approval and funding. The company also manufactured engines for the space shuttle, and had a round of layoffs after that program ended this summer.

"It depends on the launch rate more than anything else," he said. "It would be nice to recall some of those people we've laid off, but we'll just have to see how much funding comes from NASA."

The RS-25D/E engine is similar to those that launched the shuttle. It is being re-engineered to be only a single-use engine, which Vilja said will significantly reduce the production cost.

The company also is designing the new heavy-lift J-2X engine, which has had three successful tests at NASA's Stennis Space Center in Mississippi.

According to NASA, the giant rocket will be powered by liquid hydrogen and liquid oxygen fuel.

NASA's timetable calls for the first unmanned test flight in 2017, a manned mission in 2021 and then voyages to an asteroid and Mars.

Vilja thinks testing could start sooner since the engine technology is close to ready.

"We'd like to work with NASA to see what we could do to bring that forward ... to get more bang for the buck," he said.

John Blank, deputy chief economist at the Kyser Center for Economic Research in Los Angeles, said NASA's decision could boost the region's economy.

"This is great news. We certainly need to have something turn around and this has to be part of that story. It's a shred of optimism," he said.

And the region is already participating in the privatization of space, he noted.

"However this evolves, we're part of both now. It's the perfect spot to be in," he said.

But blasting into space's next frontier comes with a $35 billion price tag and, given the current political landscape, is sure to generate sharp debate.

Blank said that price should not be an issue despite the nation's financial challenges.

"Thirty-five billion over the years is peanuts, frankly. It not going to change that (economic) dynamic one way or the other," he said.

In its announcement NASA said that the decision to go with the same fuel system for the core and the upper stage was based on an analysis demonstrating that the use of common components can reduce costs and increase flexibility.

That is going to be a hard sell to some.

Rep. Dana Rohrabacher, the only Californian on the congressional subcommittee on Space and Aeronautics, is dead set against the new NASA launch system.

"This program is just fundamentally wrong," said Rohrabacher, R-Huntington Beach.

"What we're doing is investing, from my perspective, in old technology," he said. "This might as well be a Saturn rocket that we used in the 1960s."

He would like to see a system that uses space-based fueling platforms for NASA's next-generation effort.

"There are more viable and more creative ways of approaching the creation of a space transport system," Rohrabacher said.

"Home sales higher in Los Angeles, Orange counties"- Daily News

Los Angeles Works — Wed, 14 Sep 2011 12:00:AM PST

Home sales higher in Los Angeles, Orange counties

Daily News Wire Services

Posted: 09/14/2011 02:39:05 PM PDT

Updated: 09/14/2011 02:50:10 PM PDT

LOS ANGELES - Home sales in Los Angeles and Orange counties rose last month while median prices slipped, according to data released today by a real estate tracking firm.

A total 6,595 new and existing homes and condominiums were sold in Los Angeles County in August, compared to 6,193 in July -- a 6 percent increase, according to La Jolla-based DataQuick.

The median home price was $315,000, about 2 percent lower than in July.

Compared to a year ago, home sales in Los Angeles County were up 6.7 percent, and prices were down roughly 5 percent, DataQuick reported.

In Orange County, 2,780 new and existing homes were sold in August, compared to 2,465 in July -- a 12 percent jump, figures showed. The OC's median home price was $420,000, compared to $437,000 in July.

Year-over-year, homes sales in Orange County were 9.5 percent higher, while prices were down 4.5 percent.

A total 19,654 new and existing homes and condos were sold throughout Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura counties - - 8.6 percent more than in July and 6 percent above the year-ago level, according to DataQuick.

"Scratch beneath the surface, and there's not a lot to cheer about this month," said DataQuick President John Walsh.

"Home sales were up from a year earlier but remained far below average. Many would-be buyers can't find financing, and others who want to make a move now are stuck because they owe more than their homes are worth," he said. "Financial markets are increasingly choppy, the political outlook is incredibly murky and consumer confidence remains poor. Needless to say, it's not an environment ripe for stabilizing the housing market."

Figures showed that median homes prices in Southern California have declined for the last two months and have been down year-over-year for the last six months.

"Interest high in DWP's new solar program"- Daily News

Los Angeles Works — Wed, 07 Sep 2011 12:00:AM PST

Interest high in DWP's new solar program

By Rick Orlov, Staff Writer

Posted: 09/07/2011 01:00:00 AM PDT

Despite a smaller rebate, the Los Angeles DWP's revised solar incentive program has drawn a strong response from customers since it relaunched last week.

But delays in approving requests for higher electricity and water rates are threatening what DWP can spend on other programs, utility leaders warned Tuesday.

Department of Water and Power customers filed 112 applications since Thursday for the relaunched solar incentive, including 92 for residential systems.

The DWP's solar incentive program was suspended last April because the utility was unable to keep up with demand. The DWP retooled the program and cut the rebates by 30 to 40 percent, prompting installers to warn the reduced financial incentive would make solar too expensive and stymie customer demand.

DWP General Manager Ron Nichols said the relaunch appears to have gone smoothly.

"While an assessment of our overall program is premature, at this early stage, I am very pleased with the customer response," Nichols said.

The revised program requires the DWP to monitor demand and cut off new rebate requests when they reach $40 million for the current fiscal year. The agency is making available a total of $60 million in rebates to customers who are approved for the program.

The solar incentive relaunch comes as DWP officials warn they may have to cut spending this year because the utility has not gotten approval for separate water and power rate increases. The mayor and City Council have refused to consider rate hikes until the voter-approved ratepayer advocate is in place and can review the proposal.

Nichols told the DWP Commission on Tuesday that the delay is putting a financial strain on the agency and may force delays in infrastructure and maintenance projects.

"At this point, it does not look like we will be getting higher rates on Nov. 1," Nichols said. "I have asked our managers to make a number of cuts based on a zero rate increase."

Commissioner Richard Moss complained about the lack of political will on the issue.

"I think this is a crisis for the DWP that is being manufactured through politics," Moss said.

"It is unfortunate that we are not even considering a rate increase in the face of the cuts we will have to make."

"Hollywood lobbies to extend tax credit for California filming"- LA Times

Los Angeles Works — Sun, 04 Sep 2011 12:00:AM PST

Hollywood lobbies to extend tax credit for California filming

Hollywood moguls and unions ask California Legislature to extend a $500-million tax credit for film and television show productions in the state.

By Nicholas Riccardi and Richard Verrier, Los Angeles Times

7:25 PM PDT, September 4, 2011

Hollywood wants a $500-million blockbuster out of Sacramento.

In the final days of the legislative session, the industry is seeking a five-year extension of a tax credit for producing films and television shows in California. It has assembled a powerful coalition of moguls and unions, who argue that failing to re-up the program risks losing film jobs to states offering even more generous rebates.

That is something, advocates argue, that the state with the second-highest jobless rate in the nation cannot afford. "This is a proven program that creates jobs and stimulates the economy," said Vans Stevenson, senior vice president of government affairs for the Motion Picture Assn. of America. "Our companies are all based in California, and we want to see the industry grow here."

But California is also the state with the largest budget deficit, and opponents balk at reserving $500 million for industry incentives at a time when lawmakers are slashing social services, laying off teachers and raising tuition at public universities.

"It's a little unusual to me that a Democratic-controlled Legislature would give $500 million to corporations when they've so viciously cut poor people and sick people over the last four years," said Dave Low of the California School Employees Assn., one of the few unions to oppose the measure.

The debate comes as many states — spurred by the economic downturn — have begun to question the efficacy of using public money to lure film production. At least five states have ended or suspended their programs in the last two years.

Still, nearly 40 states continue to have some sort of film incentive, and there is little doubt that many have poached productions from California. "Battle: Los Angeles," for example, was filmed mainly in Louisiana, which has an aggressive program to lure Hollywood shoots. The HBO series "Mildred Pierce" was set in Glendale but filmed in New York. Producers had to import palm trees.

The proposal to extend California's film credit sailed through the Assembly. But in the Senate, the extension was limited to $100 million over a single year, contingent on the state hitting revenue targets through 2011. Should they drop, up to $4 billion in cuts would land on colleges and kindergarten-through-12th-grade education in January.

"I don't think it would be the right signal to extend the tax credit under those circumstances," said Senate President Pro Tem Darrell Steinberg (D-Sacramento).

But a single-year-extension, the bill's backers say, is not enough. "It's important for us to … signal to the industry that California is committed to [its] future," said Assemblyman Felipe Fuentes (D-Sylmar), author of the bill.

The initial tax credit passed as part of the 2009 budget deal between the Democratic Legislature and an avid film industry supporter, Gov. Arnold Schwarzenegger. The $500-million program gives a rebate of up to 25% of qualified production expenses. It can be used to offset any sales or business-use taxes that production companies have with the state but cannot be used to pay actors' salaries.

"The people this benefits aren't living in Brentwood or Beverly Hills," said Thom Davis of Local 80 of the International Alliance of Theatrical Stage Employees, noting that large film shoots employ up to 300 cast and crew members, such as grips and camera operators. "They live in Reseda, Burbank and North Hollywood. Every time one of my members isn't working, they are collecting unemployment benefits. And that doesn't benefit business or the California economy."

Although the initial program ran through 2014, more than $400 million in rebates — which are allocated on a first-come, first-served basis — have been distributed. The last ones are expected to go out next summer. Fuentes said that if he can't persuade the Senate to grant an extension of more than one year, he may opt to try again when the Legislature reconvenes in January. For the program to continue in 2012, a two-thirds vote of the Legislature would be needed to implement it on an expedited basis.

In arguing for a full extension, advocates cite a study by the Los Angeles County Economic Development Corp. that found the program so far had pumped $3.8 billion into California's economy and created 20,000 jobs.

Skeptics noted that the study was sponsored by the MPAA and that some examinations of other states' programs have found they don't create enough jobs to recoup their cost.

Jean Ross of the California Budget Project, which advocates for greater spending on social services, said that the annual $100-million cost of the credit is about the same amount the Legislature has hiked community college fees. "In essence," she said, "we have taxed community college students to give a tax break to Hollywood."

"U.S. mayors call for action on jobs front"- Daily News

Los Angeles Works — Fri, 02 Sep 2011 12:00:AM PST

U.S. mayors call for action on jobs front

By Rick Orlov, Staff Writer

Posted: 09/02/2011 10:30:41 PM PDT

Updated: 09/02/2011 10:32:26 PM PDT

On the same day that new data showed zero employment growth in August, Mayor Antonio Villaraigosa led a chorus of mayors in calling for more federal spending to spur job creation.

Villaraigosa, in his role as president of the U.S. Conference of Mayors, released a broad, bipartisan proposal to try to end the stalemate in Washington over funding. He was joined by Philadelphia Mayor Michael Nutter and Mesa, Ariz., Mayor Scott Smith in calling on Congress to accept their "common sense jobs agenda" to put America back to work.

"These are programs that have received bipartisan support in the past," Villaraigosa said. "It's time to break the gridlock in the Beltway. I think the American people are tired of the political posturing and want to see an end to the polarization and lack of progress."

Nutter said what he hears from his constituents is the need for jobs.

"People don't ask me about the debt ceiling," Nutter said. "They want to know how they can get a job."

Smith said he hoped Congress could appreciate what local officials face on a daily basis.

"If we don't pick up the garbage on Wednesday, we hear about it," Smith said. "What's troubling to me is two events. They took the debt ceiling debate to the last minute and they allowed the (Federal Aviation Administration) to close down. You would think and hope Congress would understand the impact of their actions."

The proposal from the mayors includes an extension of unemployment benefits for the 7.3 million people who are out of work, a continued cut in payroll taxes and a tax credit to employers who hire returning veterans.

Also, they renewed their call for Congress to reauthorize the federal transportation bill, increase the number of energy efficient building retrofits and transfer foreclosed houses into rental properties.

"The quickest way to create jobs is by funding programs that are project-ready," Villaraigosa said.

Smith said the projects have both long-term and short-term benefits.

"Every $1 invested in our infrastructure brings back $6," Smith said. "And that doesn't include the investments in ports and airports. That's how we build an economy."

Villaraigosa said the local officials hope President Obama will include some of their proposals in his speech to the nation next week.

"Villaraigosa lobbies Washington with jobs plan"- LA Times

Los Angeles Works — Wed, 31 Aug 2011 12:00:AM PST

Villaraigosa lobbies Washington with jobs plan

The Los Angeles mayor wants to give local workers an advantage in winning some of the 166,000 jobs expected from transportation projects.

By Richard Simon, Los Angeles Times

August 31, 2011

Reporting from Washington

In an effort to bring down the stubbornly high unemployment rate, Mayor Antonio Villaraigosa is lobbying Washington officials to give local workers an advantage in winning some of the more than 166,000 jobs expected from transportation projects planned for the region.

Federal rules prohibit local hiring preferences on federally funded transportation projects, under the premise that all U.S. taxpayers help to pay for the work and should have an equal shot at getting the jobs. The rule also stems from concern that making local hiring a factor in awarding contracts will increase the cost of projects.

But with Washington jittery about unemployment heading into an election year, the mayor has received a positive signal from the administration. Hovering at 12%, California's unemployment rate is the second highest in the nation, behind Nevada's.

A U.S. Department of Transportation spokesman said the department was working with Congress to develop rules that "could encourage local hiring on large projects as long as quality demands and schedule constraints are met."

Richard Katz, a mayoral appointee to the Metropolitan Transportation Authority board, traveled to Washington recently pitching Villaraigosa's jobs initiative. "The president is going to be judged on lowering unemployment in the country," he said.

"Unless we put people to work in California," he added, "you can't significantly lower the national unemployment rate."

Villaraigosa contends that local officials should be able to require local hiring or purchasing programs or at least make them a consideration in awarding contracts where local taxpayers are picking up a larger share of the tab.

"If the MTA is paying for 70% of a project with non-federal funds, then we should have the option of hiring 70% of the workforce locally, and buying 70% of the goods or services needed locally as well," he said in a letter to the transit board seeking its support for the initiative.

The mayor has gained support in Washington in his bid to secure federal aid to accelerate a dozen Los Angeles-area transit projects. Those projects are projected to create 166,000 jobs, but Katz said the mayor was seeking to boost local hiring for other projects as well.

Although that effort has won the support of business groups and labor unions, Villaraigosa could have his work cut out for him to overcome opposition to his new initiative.

"We think the best way to get publicly funded construction done is to have a free and open competition for the work," said Brian Turmail of the Associated General Contractors of America, a construction industry trade group.

"It's those sorts of preferences that drive up the cost of these public projects so much that often times you can't get the project done, or it limits the amount of it that can be done," added Rep. John Campbell (R-Irvine).

The mayor suggested that local hiring preferences could encourage communities to pick up a larger share of the costs of projects as Washington looks to trim the federal budget deficit.

The effort comes two years after a Villaraigosa-backed plan to get a rail car manufacturing plant built in Los Angeles fell apart when an Italian manufacturer failed to come to terms with the MTA on a contract.

"It really galvanized the issue for us," Katz said. "We were spending hundreds of millions and couldn't do anything about local jobs. … So the rail cars will be built in Sacramento. Or Canada. Or Japan. … But I can't say to them, 'We'll give you higher points in your bid to get this contract if you build that factory in Los Angeles.' "

The mayor is seeking federal legislation to give local authorities latitude to draft their own rules, whether it be awarding a contract to a bidder who pledges to hire the most local workers, even if their bid is higher, or requiring that companies employ a certain number of local workers and buy a percentage of their materials locally.

Los Angeles and other cities have moved to keep more city business at home. The Los Angeles City Council is expected to take up an ordinance soon that would give preference to local firms in bidding on city contracts, and Houston is considering a similar initiative dubbed Hire Houston First.

The agency overseeing the building of the Exposition Boulevard rail line extension from Culver City to Santa Monica is requiring that 30% of the work hours go to local residents.

"Villaraigosa unveils sleeker building permit process"- Daily News

Los Angeles Works — Tue, 30 Aug 2011 12:00:AM PST

Villaraigosa unveils sleeker building permit process

By Gregory J. Wilcox, Staff Writer

Posted: 08/30/2011 09:29:25 PM PDT

Updated: 08/30/2011 09:31:34 PM PDT

Farmers Insurance chief operating officer and president Jeff Dailey, left, and CEO Robert Woudstra, tour the new Farmers offices in Woodland Hills with L.A. Mayor Antonio Villaraigosa on Tuesday, Aug. 30, 2011. The mayor was on hand for the grand opening of the facility which the company is moving to from Simi Valley. (David Crane/Daily News Staff Photographer)

The $450 million expansion of Westfield Topanga mall could be the first major test of Los Angeles' newly streamlined permitting system - a program that officials hope will stimulate economic development and job growth.

During a press conference Tuesday at Farmers Insurance in Woodland Hills, Mayor Antonio Villaraigosa unveiled details of the Strategic Development Plan, which includes staffing a single office with representatives of five separate permitting agencies.

"Their job is to make it easier for business to operate in our city," Villaraigosa said. "The red tape was really difficult to navigate."

The new Case Management Office has about 15 employees, all current city workers with the Planning, Building and Safety, Engineering, Transportation, and Water and Power departments.

Their central location on Figueroa Street will make it easier for developers to get their business taken care of in a single day, said Matthew Karatz, the deputy mayor for economics and business policy. In the past, it could take months for business owners to set up meetings with individual agencies at disparate locations.

"It's cost-effective, and it just makes sense," said Karatz, a former developer.

The streamlined permitting process should get a major workout next year, with the 1 million-square-foot Westfield Village at Topanga project that is now in the initial planning stages.

"It will probably be the first big one. It will be a great test for it because it's a complicated project," said Robert "Bud" Ovrom, general manager of the Building and Safety Department.

Larry D. Green, one of Westfield's top U.S. development executives, liked what he heard about the new process.

"It will be very helpful to have everyone in the same room trying to solve issues," Green said.

The Case Management Office opened in July and helped expedite permits for a four-level parking garage that persuaded Farmers Insurance to relocate about 1,300 workers from Simi Valley to a Warner Center high-rise.

During Tuesday's grand opening Tuesday of the Woodland Hills office, Farmers CEO Robert Woudstra said the swift action by the city was crucial to a smooth relocation.

"They had to respond quickly and they did a great job," Woudstra said of the city. "They've got to move fast to take advantage of the opportunities at hand."

City officials said the introduction of the streamlined permitting program is unrelated to plans by Anschutz Entertainment Group to build Farmers Field, a $1.2 billion downtown stadium that supporters hope will attract a professional football team.

However, both the mayor and Woudstra - whose company paid $700 million for the naming rights - said the project will be a boon to the Los Angeles economy.

"This is going to create thousands of jobs and millions of dollars in revenue," Woudstra said.

"Mayor to announce streamlined permit process in L.A."- Daily News

Los Angeles Works — Mon, 29 Aug 2011 12:00:AM PST

Mayor to announce streamlined permit process in L.A.

By Gregory J. Wilcox, Staff Writer

Posted: 08/29/2011 09:32:29 PM PDT

Updated: 08/29/2011 09:33:40 PM PDT

In an effort to make Los Angeles more business friendly, Mayor Antonio R. Villaraigosa today will announce sweeping changes designed to streamline the permitting process for local developers.

During an appearance at Farmers Insurance in Warner Center, Villaraigosa will unveil details of the Development Services Collaborative and the Development Strategic Plan - programs created under a $600,000 consulting contract.

"I think it's the most meaningful, tangible development reform this city has done since the 1980s," said Robert "Bud" Ovrom, who heads the Building and Safety Department. "This is a plan, this isn't a proposal. Everybody is in place."

The collaborative includes the city's Land Development Committee, Case Management Office and the Construction Liaison Network.

Although it sounds like additional layers of bureaucracy, it's actually designed to reduce the amount of time it takes to get projects approved and put people to work, said Deputy Mayor Sarah Sheahan.

"There is one (phone) number to call to take you from conception to implementation to help complete projects on budget and on time," she said. "We need the business community now more than ever."

Businesses can complete most permitting tasks at the Case Management Office downtown, which will be staffed by employees from the Building and Safety, Transportation and Planning departments.

Permits that can't be handled there - like trees or fire hydrants - will be expedited by the liaison network, Ovrom said.

Villaraigosa's announcement coincides with an open house at Farmers, which just transferred about 1,300 employees from Simi Valley into Warner Center.

Quick approval of a four-level parking structure to handle the influx of new workers was needed to seal the deal, so the permitting process for developer Trammell Crow Co. was a test of the case management team, Sheahan said.

A process that normally would take months was completed in three weeks.

"They did a phenomenal job in working with us. We had a hard time keeping up with them," said Brad Cox, Trammell Crow's managing director.

Word of the new permitting system is spreading rapidly through the business community.

"I think it's hugely positive. I think the mayor's made great strides toward development reform," said Stuart Waldman, president of the Valley Industry and Commerce Association.

The reforms could help stimulate job growth.

"A few people get employed during the entitlement process, but a lot of people get employed after the entitlement process, and those are good, well-paying jobs that really help the economy," Waldman said.

"Energy-efficient homes seem to sell faster, fetch higher prices"- LA Times

Los Angeles Works — Sun, 28 Aug 2011 12:00:AM PST

Energy-efficient homes seem to sell faster, fetch higher prices

Some research projects in California, Oregon and Washington offer hints that energy efficiency and sustainability certifications for homes may result in easier sales and higher prices.

By Kenneth R. Harney

August 28, 2011

Home energy efficiency and sustainability have been major policy priorities for the Obama administration, but lurking in the background are two consistent questions: Beyond the documentable savings on utility bills, do such steps add to the resale value of a home? And do they make it easier or faster to sell your property?

Housing groups and housing officials say that definitive statistical data covering multiple regions of the country are scarce. But some localized research projects in Oregon, Washington and California offer promising hints.

In a study covering existing and new houses sold from May 2010 through April of this year, the Earth Advantage Institute, a nonprofit group based in Portland, Ore., found that newly constructed homes with third-party certifications for sustainability and energy efficiency sold for 8% more on average than noncertified homes in the six-county Portland metropolitan area. Existing houses with certifications sold for 30% more.

The raw sales data in the study were provided by the Portland Regional Multiple Listing Service. "Certified" houses were defined as those carrying Energy Star or LEED for Homes designations or Earth Advantage home certifications. (LEED stands for Leadership in Energy and Environmental Design.) The latest study was the fourth in an annual series conducted by Earth Advantage, each of which has shown clear price premiums for certified houses.

But officials caution that using average sales prices pulled from MLS data without trying to measure "comparable" homes against one another directly may not be conclusive. For instance, newly constructed certified houses may be more expensive to start, and existing certified homes may be larger and more likely to be in higher-cost neighborhoods where homeowner adoption rates for energy-efficiency measures are higher.

Nonetheless, said Dakota Gale, Earth Advantage's manager of sustainable finance, looking back at four years of studies, "we can still see a consistent trend that third-party certification continues to result in a higher sales price, even during the past year when home sales were down."

A study conducted two years ago by the institute in Seattle and Portland identified what may be another plus: Homes marketed with energy-efficiency certifications appear to sell faster on average than those without. The study tried to come up with rough comparability in appraisal terms between certified and noncertified properties, and it found that in Portland, certified homes spent 18 days less time on the market after listing than noncertified counterparts. In both Portland and Seattle, researchers documented price premiums — 9.6% in Seattle, 4.2% in Portland — in a statistical analysis with a 95% confidence level.

A recent study on houses in San Diego and Sacramento published by the National Bureau of Economic Research took a different tack: When you install photovoltaic solar panels on your roof, how much do you get back in market resale terms, beyond monthly energy savings?

Researchers examined a sample of home sales in the $500,000 range in both metropolitan areas between 2003 and 2010 and found that, on average, solar panel installations cost owners $35,967. But with federal and state subsidies, the net average cost came down to $20,892. This net expenditure, in turn, yielded an increase in appraised value by $20,194 — a 97% rate of recovery on the investment.

Though less than 100%, the rate is much higher than most home improvements in the most recent "Cost vs. Value" study conducted by Remodeling magazine — well above major kitchen and bathroom renovations.

Kevin Morrow, senior program manager for green building at the National Assn. of Home Builders, says that although many newly constructed homes come with energy and sustainability certifications, banks don't necessarily recognize their value when it comes to providing mortgage money.

For example, bank underwriters often do not include reduced monthly utility costs in the household income/household expense ratios that affect the maximum mortgage amounts available to buyers.

"The case needs to be made" to lenders, he said, "that, hey, these houses will cost less to operate, so they should be worth more."

Morrow added that appraisers are part of the issue as well if they don't have the training to recognize and credit extra value to houses that have money-saving solar installations, geothermal heating and cooling, Energy Star appliances, water conservation features and other green improvements.

The Appraisal Institute, the largest group representing that industry, says it has sponsored "green" appraisal courses for 2,300 appraisers during the last two years. It says it strongly supports efforts to better incorporate energy and environmental factors into mortgage underwriting and home valuations, including a possible congressional mandate requiring it.

"Summer box-office hits help Hollywood stop hemorrhaging"- LA Times

Los Angeles Works — Sat, 27 Aug 2011 12:00:AM PST

Summer box-office hits help Hollywood stop hemorrhaging

Big-budget films — including the 'Harry Potter' finale, the third 'Transformers,' the fourth 'Pirates of the Caribbean' and the 'Hangover' follow-up — have helped boost box-office receipts in the U.S. and Canada 3.5% from last summer. Domestic box-office sales had fallen 20% in the January to April stretch.

By Amy Kaufman and Ben Fritz, Los Angeles Times

August 27, 2011

Thanks to the swan song of a boy wizard and encores by alien robots and pirates, Hollywood dug itself out of a big hole this summer. But it still has a ways to go to reach the surface.

With the year's most popular moviegoing season coming to an end, total box-office receipts in the U.S. and Canada are on track to finish up 3.5% from last summer, according to Hollywood.com. Attendance — the number of tickets sold — will climb a little more than 1% for the season, the first rise since 2007.

That's welcome news for the film industry after domestic box-office sales sunk 20% from January to April, compared with the same period a year earlier. Following a string of flops that included "Mars Needs Moms," "Sucker Punch" and "Take Me Home Tonight," studio executives said they were counting on the high-profile movies of summer to stop the hemorrhaging.

By and large, their hopes were realized as most of their big-budget offerings of the last few months —particularly the final "Harry Potter" film, the third "Transformers," another "Pirates of the Caribbean" sequel and the second "Hangover" comedy — struck gold.

"Everyone was struggling and wondering what was going to happen — at one point, ticket sales were down [nearly] 30%, which in our world is panic time," said Nikki Rocco, domestic distribution president for Universal Pictures. "But fortunately, there were lots of great hits from most studios that were able to turn the business around."

However, total box-office revenue is still down 4% for the year and attendance is off by 5%. Industry experts say it's unlikely that the business will cross into positive territory by late December. That would continue a troubling long-term trend of fewer people going to the movies amid a growing array of entertainment choices and an economic downturn.

Despite critics' lamentations about the continued lack of original content at the multiplex, audiences this summer were still most eager to see sequels, superhero films and adaptations. Six of the top 10 movies were sequels and three others were based on comic books.

The two most popular films by far were the eighth "Harry Potter," which has conjured up more than $366 million domestically since its release in July, followed closely by "Transformers: Dark of the Moon," which has taken in $348.5 million.

That said, the summer produced several costly flops, most notably "Green Lantern," "Cowboys & Aliens" and "Conan the Barbarian."

Summer 2011's growth wasn't driven solely by the top performing pictures. The top five summer films of 2010 generated $1.65 billion; this year's top five have so far taken in just under $1.4 billion. Eight films have taken in, or soon will gross, between $150 million and $250 million this summer, compared with just three last summer.

One of the biggest surprises was how well R-rated comedies performed. Along with the "Hangover" sequel, a number of relatively low-budget raunchy comedies resonated with audiences, including "Horrible Bosses," "Bad Teacher" and the sleeper hit "Bridesmaids," which has brought in about $168 million.

"It's good to have a good laugh in harder times," said Jeff Goldstein, executive vice president of distribution for Warner Bros., which released "Horrible Bosses."

Not all films going for laughs did well, however. By August, there were no long lines for such bawdy films as "The Change-Up" and "30 Minutes or Less." Both movies failed to attract large numbers of young men, typically the key demographic for lewd comedies.

"There was strong success with R-rated comedies early in the summer, but eventually it seemed that an exhaustion factor set in," said Kevin Goetz, president of film research company Screen Engine.

A completely different group of moviegoers — older females — are propelling the summer's other surprise hit, "The Help," to unlikely box-office heights. The film, an adaptation of Kathryn Stockett's bestselling novel about civil rights in 1960s Mississippi, is expected to dominate ticket sales again this weekend and will soon surpass the $100-million mark.

A more adult audience also embraced Woody Allen's "Midnight in Paris," making it the director's biggest hit ever — not adjusting for inflation — with $50.6 million in ticket sales so far.

Even as the nation's box office struggled to reach even ground, international receipts continued to boom, driven by key developing markets such as Russia, China and Brazil. The top five movies, in particular, all grossed far more overseas than stateside.

"Harry Potter and the Deathly Hallows — Part 2" generated more than $900 million abroad, and "Transformers: Dark of the Moon" took in $750 million.

Foreign moviegoers remained more enamored of 3-D than those in the U.S., most of whom opted against paying a premium to see images pop out of the screen on movies such as "Pirates," "Green Lantern" and "Potter."

One notable exception was "Transformers," for which Paramount Pictures and director Michael Bay launched a full-scale publicity assault to tout the benefits of 3-D.

Meanwhile, the upcoming Thanksgiving and Christmas holiday season — the second-most lucrative time at the box office after summer — is poised to also exceed 2010's performance.

Though last year saw a string of expensive disappointments, among them "Gulliver's Travels" and "How Do You Know," this November and December bring a number of highly anticipated sequels, including the fourth "Twilight" film and the third "Alvin and the Chipmunks" cartoon.

However, it may still be a longshot for Hollywood to turn 2011 into a growth year.

"Movie attendance is dropping not precipitously, but slightly year after year — and 2011 will likely continue that trend," Goetz said. "Going to a movie in a theater is still a fun activity for many people, but exhibition as we know it is not a growth business."

"Villaraigosa celebrates major installation project in LA"- Asian Journal

Los Angeles Works — Sat, 27 Aug 2011 12:00:AM PST

Villaraigosa celebrates major installation project in LA

Saturday, 27 August 2011 09:44 Cynthia De Castro | AJPress Los Angeles

LOS ANGELES - Mayor Antonio Villaraigosa, Los Angeles Department of Water and Power General Manager Ron Nichols, Dr. Walter Jayasinghe and city officials celebrated August 26 the completion of a major solar panel installation project in central Los Angeles. The Walter J Towers project will use 1,135 photovoltaic panels, elevated above the building’s surface parking lot, to reduce the building’s annual energy costs by 30%.

“The Walter J Towers project represents how investing in solar is good for the environment, and good for a business’ bottom line,” Mayor Villaraigosa said. “We are providing incentives for more innovative and forward-thinking companies to invest in LA’s most abundant natural resource and in the process build a local 21st century green workforce.”

The project qualifies for a rebate of more than $475,000 through the LADWP’s Solar Incentive Program (SIP). The DWP is re-launching this program to continue making solar installation more affordable and provide customers with a financial incentive.

“This is a great example of using local renewable energy to reduce energy costs. The collaboration between LADWP, ReGreen Corporation and Mr.Jayasinghe on this solar project will reduce energy costs for the Walter J. Towers and support the LADWP’s efforts to reduce our reliance on fossil fuels.” said LADWP General Manager Ronald O. Nichols. “With the September 1 re-launch of our popular solar incentive rebate program, we look forward to working with many other City businesses and residents interested in achieving similar benefits through solar power.”

Also to encourage solar usage by more customers, LADWP has increased the budget for incentive payments to $60 million in the current fiscal year and anticipates requesting additional money in each of the next two fiscal years.

This is another step in Los Angeles’ efforts to become an environmentaly-friendly, green city. In January, Mayor Villaraigosa announced that the Los Angeles Department of Water and Power had quadrupled its use of energy from renewable sources. This increase to 20% renewable power in six years is the most dramatic improvement among major utilities in the State of California.

Los Angeles also recycles more than any other big city in the country, and has the largest LED Street Light Retrofit Program in the world that will replace 140,000 streets lights to LED in 5 years.

The City also has a first-in-the nation, ARRA-funded workforce development retrofit program that targets workers from low-income communities and trains them with the skills they need to obtain good-paying, green jobs.

"Mayor pushes biz, Silicon Valley on incentives"- Variety

Los Angeles Works — Thu, 25 Aug 2011 12:00:AM PST

Mayor pushes biz, Silicon Valley on incentives

Villaraigosa asks bizzers for ideas on improving city's lensing climate

By Dave McNary

Mayor Antonio Villaraigosa and Jon Turteltaub

Los Angeles Mayor Antonio Villaraigosa believes Hollywood needs to link arms with Silicon Valley to lobby for state tax incentives to encourage job creation -- and he's vowing to try to play matchmaker between the state's key hubs of media-centric industry.

"We're seeing more collaboration between the digital arts and Hollywood so there needs to be some kind of grand bargain," Villaraigosa said Wednesday during a brainstorming sesh held with producers, studio execs and location managers. The confab drew about 50 participants including producers Jon Turteltaub, Albert Berger, Andy Frazier, Chris Ranta, Natalya Petrosova and Jeff Valdez, California film commissioner Amy Lemisch and FilmL.A. chief Paul Audley.

The 90-minute session, aimed at provoking suggestions to improve the showbiz climate at the ground level, included ideas such as Turteltaub's notion to make on-location filming sites more tourist-friendly by offering specific info about the productions rather than trying to keep those details under the radar.

Turteltaub emphasized that in his experience, it's usually cheaper for productions to stay in L.A. -- until out-of-state tax incentives are factored in.

"If it's simply about the (budget) math, the state has to come up with the answer," he said during the sesh hosted at the offices of Variety and LA 411. "The question is, what can the film industry do to make that happen? We want to stay. ...There have got to be things we can do to incentivize the state to incentivize us to stay."

Villaraigosa didn't offer specifics as to how to form such a Hollywood-Silicon Valley alliance other than saying that the two sectors should be working together since they're both creating jobs in a shaky economy.

"One of the things I've been saying is that we need to package this going into the future," he added. "We really have to exploit the power of job creation."

Villaraigosa's comments stemmed from discussion about pending legislation for a five-year extension of California's 3-year-old Film & Television Tax Credit Program, which has allocated $400 million in credits so far. The bill, currently awaiting approval by the Senate Appropriations Committee, faces extinction until next year's legislative sessions if it's not moved out of the panel by the end of today.

Villaraigosa and Lemisch were candid about the fact that California's $100 million-a-year program is dwarfed by other states' offerings, particularly New York. Turteltaub spoke from experience of having unsuccessfully applied for a credit to keep his upcoming USA Network drama series "Common Law" in L.A. The show was too low on the state's waiting list to qualify, so it set up shop in New Orleans. On the other hand, location scout Patrick Mignano noted that California incentives tipped the scales to allow Warner Bros.' upcoming feature "Gangster Squad" to lense in the city in which it is set.

The mayor, who served as speaker of the Assembly between 1998 and 2000, touted the potential partnership with Silicon Valley as a way of helping overcome the hurdles that showbiz traditionally faces in getting Sacramento to back production incentive bills.

"The Northern California Democrats never saw the value of this," he noted, adding that he'd lobby Sen. Darrell Steinberg, chair of the appropriations panel, to push ahead on the bill. Steinberg's home district is in Sacramento.

Audley noted that Villaraigosa's made it a priority to improve the filming environment through such efforts as making most municipal facilities, including the Mayor's City Hall office, available for filming without charge along with a free parking program. He also noted that the Los Angeles Dept. of Water and Power has also installed power utility nodes for use by film productions (instead of generators) at the Los Angeles Zoo, the Dept. of Water and Power John Ferraro Building and City Hall.

Lemisch, who administers the credits program, cited a study said the first three years of the tax credit program have generated $2.8 billion in economic activity, more than half of which has been in below-the-line expenditures. She noted that producers aren't able to use the credits until after post-production is completed.

"So the economic impact comes first," she added. "The program's able to target productions that are at risk to leave California."

Line producer Alex Moon told the confab that he'd like to see permit and fire marshal fees reduced or eliminated -- noting that there are no such fees in locations such as Rhode Island. "As a line producer, a quick fix would be to waive those kind of fees," he added.

David Phelps, speaking for the Assn. of Independent Commercial Producers, suggested that Los Angeles City Council members who are former state legislators -- such as Paul Koretz and Richard Alarcon -- should be enlisted to push for extension of the credits. Valdez, co-chairman of Maya Entertainment, raised the idea of enlisting the state's giant CalPERS pension fund to put some of its financial muscle behind showbiz job-creation initiatives.

"Carmakers' rebound is driving jobs in U.S."- LA Times

Los Angeles Works — Thu, 25 Aug 2011 12:00:AM PST

Carmakers' rebound is driving jobs in U.S.

The industry that once needed bailing out could be the one to stave off recession.

By Jerry Hirsch, Los Angeles Times

August 25, 2011

Taxpayers bailed out much of the U.S. auto industry. Now the carmakers might be what saves the nation's economy from falling back into recession.

After a massive restructuring and several high-profile bankruptcies, a leaner, more aggressive auto industry is making a comeback, hiring workers and ramping up manufacturing plants. From a trough two years ago, Ford Motor Co., General Motors Co., Chrysler Group and other auto companies have added almost 90,000 manufacturing jobs, a 14% increase, according to federal employment data.

Job growth in Michigan, which was devastated by the downturn, is even more robust. That's why Michigan's jobless rate stood at 10.9% in July, well below the 12% rate of California.

And it's not just the Big Three American manufacturers that are thriving. Nissan, VW and other foreign-based firms are expanding in the United States, putting billions of dollars into building and refurbishing plants. Start-ups Tesla Motors in Palo Alto, Fisker Automotive in Anaheim and Coda Automotive in L.A. are hiring and spending hundreds of millions of dollars designing and launching electric and hybrid vehicles.

Dealers are having a banner year, making more money per sale than they have in years and hiring back some workers shed during the recession.

"I have been adding dozens of employees for sales and sales support," said Mike Bowsher, who owns Chevrolet and Buick dealerships in Atlanta; Nashville, Tenn.; and Orlando, Fla. "The economy is crazy, but our retail business is still growing and getting better."

The Commerce Department said Wednesday that orders for autos and auto parts jumped 11.5% in July, the most in eight years. That followed an earlier government report on industrial production that showed the auto industry was the strongest segment of the manufacturing economy last month.

This kind of expansion is important to the economy. Including factories, suppliers and dealers, the U.S. auto industry employs about 1.7 million workers and supports an additional 6.3 million private-sector jobs, according to the Center for Automotive Research in Ann Arbor, Mich. The center said those positions represent more than $500 billion in annual compensation and more than $70 billion in personal tax revenue.

"Autos are certainly picking up. As we get into next year, this all depends on the state of the consumer," said Gary Schlossberg, senior economist Wells Capital Management.

Auto sales peaked at about 17 million in 2000 and held near that level until 2007 before crashing to just 10.4 million two years later. They were heading back into the 13-million range — helped by a wave of new models, low interest rates and improving consumer confidence — only to be upended by the Japanese earthquake in March.

Shutdowns at Japanese-owned factories in Japan and the United States created inventory shortages that led to sharply higher car prices, lower demand and hundreds of thousands of lost sales for dealers. But with those disruptions now in the rearview mirror, the industry is looking for sales to improve over the rest of the year.

The health of the U.S. economy is so dependent on autos that economists such as UCLA's David Shulman are watching car sales to assess whether the nation's recovery will accelerate or stall.

"If you see a 13-million-unit sales rate in the fourth quarter, that would help a lot," said Shulman, senior economist at the UCLA Anderson Forecast. "It would be very hard to see how the U.S. would go into recession with cars selling at that rate."

With their U.S. plants almost back to full production, Toyota Motor Corp. and Honda Motor Co. will be rebuilding their dealer inventories nationwide. They're also launching incentives and in some cases lowering prices of new models to recapture lost sales. Toyota said this week that it was slashing the price of the Camry, America's top-selling sedan, by hundreds or even thousands of dollars for some versions.

To compete, other manufacturers are expected to boost their incentives and discounts, which should help draw buyers back into showrooms.

Other factors are assisting as well.

The average age of passenger cars and light trucks in America has grown to almost 11 years as people delayed purchases during the downturn. Low-mileage used cars are in short supply.

And with the Federal Reserve signaling that it plans to keep interest rates low for several years, automakers are offering low-cost financing deals, making it easier for consumers to make a new-car payment.

This should all help to boost sales.

"The vehicles will be there. There will be a better incentive environment. Financing isn't going to cost any more. Everything is in place; it is just a question of whether consumers will be too scared to act," said Robert Schulz, an auto industry analyst with Standard & Poor's.

Lacey Plache, economist at Edmunds.com, believes U.S. light vehicle sales will reach 12.9 million this year, and that means she expects the sales pace to pick up dramatically in the coming months.

"The demand for autos is still showing strength, and buying conditions will only improve through the fall as supply grows and prices come under pressure to fall," Plache said.

Although most analysts are predicting growth, some said the auto industry and the overall economy still face significant hurdles.

Big gyrations in the stock market make consumers nervous, said Shulman, the UCLA economist. Volatility tends to have an outsized effect on high-end customers, and that could undermine the luxury car market, which typically has strong sales toward the end of the year.

A weak U.S. labor market also makes shoppers wary of big-ticket items.

But no matter how the next few months go, Shulman said, the automobile industry is healthy enough so that for once, "it won't be what puts the economy into a recession."

"Reel China: U.S. film producers are engaging the Chinese"- LA Times

Los Angeles Works — Wed, 24 Aug 2011 12:00:AM PST

Reel China: U.S. film producers are engaging the Chinese

It's not about détente, it's about making money. The partnerships give the American firms better access to the country's growing movie market.

By Ben Fritz and John Horn, Los Angeles Times

7:00 AM PDT, August 24, 2011

China bought $91.9-billion worth of U.S. goods last year, including boatloads of medical devices, precious metals and electrical equipment. But when it comes to America's most celebrated cultural export — Hollywood movies — crossing China's borders has proved more difficult than climbing the Great Wall.

After years of frustration with the Chinese government's severe limits on how many imported movies can play in its theaters, several prominent American film producers are cutting ambitious deals with Chinese firms that provide alternative routes into the country's exploding movie market.

"There's no reason we should have Chinese films and American films anymore. There should be global films," Ryan Kavanaugh, the chief executive of Relativity Media, said when unveiling his independent studio's joint venture in Beijing this month.

Film finance and production firm Legendary Pictures detailed plans for its own China joint venture called Legendary East on Sunday, and other independent U.S. studios like Nu Image are actively seeking coproduction deals in the country.

Such moves give the firms, which don't have the clout of major studios like Warner Bros. and Paramount Pictures, better access to the lucrative Chinese market. The deals also offer filmmakers access to a potentially huge source of capital: Chinese investors, who face significant restrictions on sending their money overseas. However, partnerships in China also mean U.S. producers must work closely with the country's Communist government and its censors.

"There is a big difference between announcing a quick deal and forming a company in China with a solid business strategy and strong Chinese partners," said Skip Paul, of Centerview Partners who advised on the formation of Legendary East. "The key to success is tapping into deep relationships to help navigate the politics and culture."

The U.S. push into China comes at a critical time for Hollywood: With income from some longtime cash cows, including DVD sales, collapsing, China is one of the globe's biggest untapped revenue sources.

China's box-office receipts surged 64% last year to a record $1.5 billion, and they will likely bring in about $2 billion in ticket sales this year. By the end of the decade, industry experts predict China will grow from the world's No. 5 movie market to No. 1.

"I am more bullish on China than any other country in the world," said Rich Gelfond, chief executive of Imax, whose digital screens are in 48 theaters in mainland China, Hong Kong and Taiwan, with plans to add 129 more in the coming months.

The latest "Transformers" sequel has sold more than $159 million worth of tickets in China this summer, with "Kung Fu Panda 2's" Chinese gross at $92 million — more than the animated family film generated in France, Germany, Spain and Britain combined.

Even with those outsized performances, American movie companies are hardly sharing in the bounty thanks to China's rules on how box office receipts are shared — or not.

Foreign studios say they face an opaque approval process for getting their films into China. Last year, the Chinese government allowed only 54 foreign films into the country, and U.S. studios were able to share a percentage of box office revenue on just 21, according to research firm Artisan Gateway. Those coveted revenue-sharing slots are typically secured by the six major Hollywood studios for their big-budget releases; this year, the spots have gone to films such as "Thor" and "Fast Five."

The revenue-sharing calculus is complex, but it leaves an American film's backers with no more than 17.5% of all Chinese ticket sales, compared with the typical 50% in U.S. theaters. The huge Chinese gross for "Transformers 3" brought Paramount Pictures less than $30 million.

Thirty-two foreign films that played in China last year were imported under a different exhibition model in which their financiers received a one-time fee of just a few hundred thousand dollars and no cut of ticket sales — even though two such movies brought in more than $20 million at the box office. Some producers believe that as many as 50 foreign films may be allowed into China this year under the flat-fee program.

U.S. studio lobbyists and officials at the World Trade Organization have been pushing the Chinese government to relax its import restrictions but have so far been unsuccessful.

By partnering with Chinese-based companies in co-production and exhibition deals, American filmmakers like Legendary and Relativity are not subject to the import restrictions. Such agreements not only guarantee movies a release in Chinese, but they also can dramatically improve the percentage of box-office receipts the U.S. producers can collect — to about 40%.

Relativity, which made the thriller "Limitless" and the upcoming "Immortals," is working with two Chinese investment firms and state-owned Huaxia Film Distribution Co., the country's second largest distributor. Their new venture, called SkyLand, will produce Chinese movies and also invest in some of Relativity's upcoming English-language pictures.

"Our ideal is to make as many of our movies co-productions as possible … and for them all to get a release in China," said Kavanaugh.

SkyLand's backers include SAIF Partners, an Asian private equity firm with $3.5 billion under management, and IDG China Media, the Chinese arm of Boston-based technology and publishing giant International Data Group.

Legendary East, which will produce English-language movies in China and export them globally, is partnered with Asian entertainment conglomerate Huayi Brothers Media Corp. It also on Sunday announced plans to list shares on the Hong Kong Stock Exchange with an initial enterprise value of $441 million. Even companies that don't have expansive Chinese business partnerships are finding new ways to reach the market. When Nu Image Films' "The Expendables" went to China last year, the company collected a flat fee in the six figures, even though the Sylvester Stallone action flick grossed more than $32 million there.

For the "Expendables" sequel, which starts shooting next month, Nu Image hopes to partner with a Chinese distribution company and shoot some scenes in the country. Executives at the independent studio believe a co-production deal could net them some $8 million, or more than 15 times what they collected for the first "Expendables" under the flat-fee system.

"The demand for product in China is going to grow exponentially," said Trevor Short, Nu Image's chief financial officer. "And the net income can be enormous because the [distribution and marketing] costs are so low."

But in order to qualify for a co-production, American scripts must be approved in advance by the government, which can be unpredictable in what it censors and what it doesn't. "No one really knows where the boundaries are," Short said.

Sony Pictures made a similar co-production deal on last year's remake of "The Karate Kid," which it made with China Film Group. The movie was a hit in most of the world but it flopped in China.

Still, no major Hollywood studio has formed a long-term partnership to co-produce films with Chinese companies. However, they have found some ways to release a few movies in the country outside of the 20-import quota.

To boost the rollout of high-tech projectors in the country's theaters, China in 2007 began allowing several pictures per year into the country on a revenue-share basis if they played only in digital theaters. Since 2008's "Journey to the Center of the Earth" kicked off the program, digital projection has become so common that movies like "Toy Story 3" and "Shrek Forever After" received nationwide releases in China by utilizing the exception.

"Show me another country where you can release a movie 100% in 3-D digital," said Jeff Blake, the vice chairman of Sony Pictures. The studio's animated film "The Smurfs," which in China is playing solely in high-tech digital theaters, has grossed $26.1 million since opening Aug. 10.

One other way for U.S. filmmakers to earn money in China is by making Mandarin-language productions in the country, which yielded Fox International's hit "Hot Summer Days" and Disney's flop "High School Musical: China."

Ultimately, American film companies don't want to have to find ways around the quota — they want to eliminate it. And though such a development isn't likely in the near-term, some believe it's inevitable.

"I'm optimistic," Imax's Gelfond said. "So much is being invested in the infrastructure in Chinese exhibition. And I think the government is going to want to support the infrastructure."

"Banner days for L.A. film shoots"- LA Times

Los Angeles Works — Tue, 23 Aug 2011 12:00:AM PST

Banner days for L.A. film shoots

A marketing campaign aims to remind often film-weary L.A. residents how important their signature industry is at a time when the region has struggled to keep productions from leaving the state.

By Richard Verrier, Los Angeles Times

6:15 PM PDT, August 23, 2011

About 300 protesters marched down 56th Street past a theater in Highland Park, hoisting placards with slogans like "Stop targeting aliens" and "We're not thugs" and chanting, "We're united."

No, this wasn't an immigration rights rally. The demonstrators were extras who gathered on a hot Monday morning to film a scene for an upcoming episode of "The Mentalist, " the CBS crime drama that is shooting its fourth season in Los Angeles.

Producers had cordoned off three blocks of the Highland Park community , where the extras milled with another 100 crew members and the show's stars, Simon Baker, Amanda Righetti and Tim Kang, whose characters were investigating a murder amid the protest.

"This was a big one for us," said location manager David Marmolejo, who spent a week getting the permits and approvals to film the protest march sequence. "Your average Joe doesn't realize how many people work on a show like this. There are lots of people who are contributing to our local economy."

To reinforce the point, "The Mentalist" is among the first of several local TV shows that have emblazoned their production trucks with 8-foot-long yellow and black banners reading: "FilmWorks. Keep jobs in Los Angeles."

The banners are part of a two-year, approximately $150,000 marketing campaign launched in December by FilmL.A. Inc., the nonprofit group that handles film permits for the city and incorporated areas of the county. The goal is to remind often film-weary L.A. residents how important their signature industry is at a time when the region has struggled to keep productions from leaving the state.

"The Mentalist" is one of about 45 one-hour dramas and nearly 60 sitcoms that regularly film in Los Angeles, which remains the largest production hub in the world despite growing competition from cities such as Vancouver, Canada; Detroit; and New Orleans.

FilmL.A. has been plastering thousands of FilmWorks logos on bumpers, billboards, bus stops, kiosks and, more recently, film equipment trucks. The campaign also will feature a 90-second public service announcement starring Tia Carrere that will run in Mann theaters next month.

Warner Bros., which produces "The Mentalist," has featured the FilmWorks slogan on half a dozen production trucks and has included the logos on "Hart of Dixie," the new medical drama from CW. ABC Studios also has agreed to feature the stickers on half a dozen production trucks, said Todd Lindgren, spokesman for FilmL.A.

"It's just to remind the public of the cultural and economic value of this industry to the region," Lindgren said.

On-location production in Los Angeles was up 17% last week compared with the same period a year earlier, thanks to a surge in feature film activity, including shoots for Sony Pictures Entertainment's "The Girl With the Dragon Tattoo" and the romantic comedy "Think Like a Man." Feature film production activity rose 117%, while commercial production increased 8% and TV activity dropped 3%, according to FilmL.A. data.

"The Mentalist," about a psychic who helps police solve crimes, is set in Sacramento but films heavily throughout L.A., from downtown to the beaches to the San Fernando Valley. Next week the crew will shoot a desert scene in Palmdale.

"We're all over the place," Marmolejo said. "Hopefully, people will understand that we're keeping people working and putting food on the table."

"Terminal Revival Brings Life to LAX"- LA Business Journal

Los Angeles Works — Mon, 22 Aug 2011 12:00:AM PST

Terminal Revival Brings Life to LAX

Airlines’ fight for Bradley space lifts airport.

By HEEJIN PARK

Monday, August 22, 2011

After years of decline, Los Angeles International Airport is once again ascendant.

And at least part of the credit can be given to the massive renovation of the Tom Bradley International Terminal – even though it’s not complete.

LAX is on its way to a projected 8 percent or 9 percent rise in passenger traffic this year, which would far outpace the national average, and comes as new carriers have arrived at the airport and existing ones added flights.

Foreign tourists taking advantage of the cheap dollar is one reason traffic is up, but analysts say there is more at play: specifically, carriers jockeying for space to keep other airlines from grabbing more gates at the renovated terminal.

“The carriers play a game to discourage new entry by a competitor,” said Bob Mann, president of aviation consulting firm R.W. Mann & Co. in Port Washington, N.Y.

In early March, Turkish Airlines announced it was launching service to LAX, its first flights to the West Coast, while Spain’s Iberia Airlines returned to Los Angeles after a 14-year absence. Meanwhile, existing international carriers such as Singapore Airlines and domestic carriers including American Airlines have been adding service.

According to Los Angeles World Airports, the city agency that manages the airport, 26 flights have been added through July, while no flights were lost.

This year’s growth is even more impressive as it comes in spite of L.A.’s still sluggish economy and disruptions to travel caused by the catastrophic earthquake and tsunami that hit Japan in March.

Indeed, in the first half of the year, passenger volume rose 5.4 percent from last year to 29.9 million, according to LAWA. The rate of increase is exactly twice the national average.

With such a sharp rise in air travel, L.A. Inc., the Los Angeles Convention and Visitors Bureau, expects an increase in tourists of more than 10 percent from last year.

“We’re forecasting that Los Angeles will welcome more visitors in 2011 than it has in more than a decade,” said Mark Liberman, chief executive of L.A. Inc., in a statement.

Global growth

With the launch of four weekly nonstop flights between Los Angeles and Istanbul, Turkish Airlines made LAX its first West Coast destination and only its fourth in the United States. By next March, the airline expects to offer daily service.

The launch was a big deal for the airline, which celebrated the announcement on Hollywood’s Paramount Studios lot in early March. Hundreds of guests turned out to sample Turkish food and watch performances by Turkish musicians. The gala event was attended by basketball superstar Kobe Bryant, who signed on this year for a two-year endorsement gig.

Fatma Yuceler, Turkish Airlines’ general manager for the western United States, said the airline made the decision to launch the service because Los Angeles “is a very desirable destination.”

Yuceler also noted the city has the country’s second largest Turkish population, and further cited the Tom Bradley terminal project as an influencing factor.

“As an airport partner, increased capacity of LAX is certainly favorable for Turkish Airlines,” she said.

Also in March, Iberia began offering Los Angeles-to-Madrid flights, marking a return to the city for the airline after more than a decade away. Iberia, which had served LAX between 1984 and 1997, now offers four weekly flights and is the only airline to fly nonstop between the West Coast and Spain.

Also, last month, Singapore Airlines began offering flights out of Los Angeles on its supersize Airbus A380 jet, making LAX the first point in North America for the airline’s A380 service.

Korean Air, meanwhile, is planning to launch A380 service from Los Angeles beginning in October.

“We will gradually expand the A380 service to major destinations in Europe and North America, such as Paris and Los Angeles, by the end of this year,” said Paul Kim, a sales representative for Korean Air in Los Angeles.

Big improvements

The rise in foreign carriers comes as airport officials are spending at least $4 billion on a modernization project for the international terminal, which opened in 1984, as well as other improvements at the airport. The 12 old gates at the international terminal will be replaced by 18 new ones.

Over the past decade, LAX has lost ground to more modern facilities in San Francisco and other major airports. For instance, growth in international travel left the Bradley terminal unable to handle all the passengers and many had to be bused from distant gates to the immigration processing area.

Still, local residents stymied various modernization and expansion plans, and it wasn’t until Antonio Villaraigosa was elected mayor that compromises were reached to allow the project to move forward.

Among the improvements, the airport will add 1 million square feet of space and gates at the international terminal that can handle new oversized aircraft such as the A380. The so-called Bradley West project is expected to be completed December 2012 and will represent the first gates built since the 1980s. Several domestic terminals also are being upgraded.

Michael Boyd, an aviation analyst with Evergreen, Co.-based Boyd Group International Inc., noted that airlines want to be in Los Angeles International Airport, particularly when the renovation work is completed.

Even domestic airlines are looking to cash in on the increasing demand for international travel, Boyd said. American Airlines, for instance, launched daily service between Los Angeles and Shanghai in April, becoming the first carrier to offer nonstop service between the cities.

“They’re adding it because they know they can make money,” he said, noting that strong international travel numbers could push 2011’s passenger count to 8 percent or 9 percent higher than last year.

Tourism dollars

The growing amount of international flights is providing a boost for L.A.’s stagnant economy by increasing the number of business travelers and tourists, who spend considerable amounts of money while away from home.

According to a study by the Los Angeles Economic Development Corp., each daily roundtrip transoceanic route to LAX generates $623 million on average in economic output annually, and sustains 3,120 direct and indirect jobs in Southern California with cumulative wages of $156 million.

Last year, more than 25 million people visited Los Angeles, with tourist spending generating $13.1 billion for the city, a 10.4 percent increase in spending from the previous year, according to the city. More than one-third of the total spending came from 5.5 million international tourists.

It’s not just international travel, though, that is making a difference. American Airlines’ regional carrier, American Eagle, recently added new nonstop service from Los Angeles to nine cities, including Salt Lake City and Tucson, Ariz. Delta Airlines, meanwhile, launched flights between LAX and Memphis, Tenn.

According to LAWA’s data, domestic traffic grew 5.9 percent in the first half of the year to 21.8 million passengers.

“It’s really demand for L.A. service is what it comes down to,” said Mann, the aviation consultant.

"Port of LA, Department of Commerce Launch Program to Export LA Apparel Brand to China"- California Apparel News

Los Angeles Works — Mon, 22 Aug 2011 12:00:AM PST

Port of LA, Department of Commerce Launch Program to Export LA Apparel Brand to China

by Alison A. Nieder, Executive Editor

August 22, 2011

LAS VEGAS—Several years ago, Moshe Tsabag tried to take his clothing label to China, but had little success.

Now the Los Angeles fashion executive is gearing up to try again, this time with a different brand and the assistance of several government agencies.

Tsabag will be part of a pilot program initiated by the Port of Los Angeles and several export assistance agencies to provide Tsabag with “concierge service” to begin exporting his juniors label, Velvet Heart, to China, said Wendy Bruget, with the California Centers for International Trade Development, a Sacramento agency that assists California companies do business abroad

Three years ago, Tsabag launched Velvet Heart and has expanded the brand to include distribution in Australia, Japan, Canada and Europe. But China would be new territory for the veteran fashion executive who has a history of starting juniors labels such as Yes and Hot Kiss.

Government assistance will be the new ingredient in his export endeavor. “We’re going to work with the Port of L.A. and the [California Fashion Association] to help penetrate an export market—only this time, it’s China,” said Francisco J. Sanchez, under secretary for international trade with the U.S. Department of Commerce. “There’s no guarantee that this is going to be easy, but that’s no reason not to try.”

Opportunities closer to home

Sanchez was in Las Vegas speaking on a panel at Sourcing at MAGIC on Aug. 21.“This makes sense, as part of President Obama’s export initiative,” he said. The president wants to double U.S. exports by 2014.

“The more businesses export, the more they produce,” Sanchez said. “The [apparel] industry remains a critical force in our economy,” he said.

This season, Sourcing at MAGIC put the focus on the Americas, with more than 75 companies from North, South and Central America among the exhibitors.

“We have a tremendous opportunity for apparel companies in the Western Hemisphere to do business together,” Sanchez said.“We have to look for ways to integrate the supply chain. This is really the future.”

As an example, Sanchez pointed to Embraer, a Brazilian airplane maker that sells its planes to the United States. According to Sanchez, 70 percent of each airplane contains U.S.-made components.

“I’m looking forward to the DOC [Department of Commerce] to work closely to integrate the supply chain working in the Western Hemisphere,” he said.

"Two manufacturers to remain in Pacoima"- Daily News

Los Angeles Works — Sat, 20 Aug 2011 12:00:AM PST

Two manufacturers to remain in Pacoima

Gregory J. Wilcox, Columnist

Posted: 08/20/2011 09:27:55 PM PDT

Updated: 08/20/2011 09:35:27 PM PDT

Two Valley manufacturers will continue to call Pacoima Industrial Park home.

Both have have inked leases with Newport Beach-based Hager Pacific Properties.

The two deals total $5.7 million and involve 175,000 square feet of space at the East Valley industrial complex in the 12820 block of Pierce Street.

"The greater Los Angeles market continues to slowly build leasing momentum as the manufacturing of exports and the delivery of imports contribute to the region's low vacancy rates," Rob Neal, a principal with Hager, said in a statement.

In one deal, pet food maker Natural Balance signed a three-year lease valued at approximately $1.2 million to expand its headquarters from 50,000 to 65,000 square feet, Hager said.

"We were able to keep getting more space. It works great," said Joey Herrick, president of the pet food company that employs about 200 employees.

John DeGrinis and Patrick DuRoss with Colliers International represented Natural Balance in the transaction.

It's the second lease in Pacoima by the company this year. In April, the company leased a 120,00-square-foot building in the 12200 block of Montague Street, doubling the size of its distribution center.

That lease is a three-year deal valued at $1.7million, according to Colliers. DeGrinis, DuRoss and Jeff Abraham represented Natural Balance in that transaction.

"We have been working with Natural Balance for many years," DuRoss said in a statement. "Their business has been experiencing significant growth, and current market conditions led them to consider their multiple facility options."

In the other Pacoima Industrial Park deal, Cosmetic Enterprises signed a $4.5 million, six-year renewal for its 110,000-square-foot facility.

The 25-year-old company formulates, manufactures and packages cosmetics and pharmaceuticals.

Officials were not available for comment.

The park consists of two one-story buildings and 11 tenant units ranging from 10,000 to 110,000 square feet.

Housing affordability dips

Housing affordability dropped in Los Angeles County during the fourth quarter, according to the Angeles-Ventura Chapter of the Building Industry Association of Southern California.

The quarterly Housing Opportunity Index, compiled by the BIA's sister organization, the National Association of Home Builders, found that 41.6 percent of the homes sold in L.A. County between April and June could be afforded by families earning the median income for the county. That's down slightly from 43.1 percent in the first quarter of the year but is still the fifth most-affordable quarter this century, the association said.

"L.A. launches housing rehab project"- Daily News

Los Angeles Works — Thu, 18 Aug 2011 12:00:AM PST

L.A. launches housing rehab project

By Rick Orlov, Staff Writer

Posted: 08/18/2011 09:36:24 PM PDT

Updated: 08/18/2011 09:38:02 PM PDT

Los Angeles officials on Thursday showcased the first of what could be more than 1,100 foreclosed homes that will be rehabbed and sold to the public.

The city Housing Department has already purchased 196 homes -- including properties in Pacoima, Arleta, Sylmar, Canoga Park and Panorama City -- through a federal program aimed at stabilizing neighborhoods devastated during the foreclosure crisis.

The city will renovate the properties, then put them on the market. Proceeds from the sale of the home will be used to buy other blighted properties.

The program also offers some financing.

"We are putting these funds to work to create jobs and transform city blocks lined with empty houses," said Mayor Antonio Villaraigosa, who toured properties in South Los Angeles, the first to be put up for sale.

"We are rebuilding neighborhoods like South L.A., where a house is far more than bricks and mortar. It's a lifeline and a piece of the American dream."

The federal government has made $143million available to Los Angeles through the Neighborhood Stabilization Program. Officials said the homes targeted are in areas hardest hit by foreclosures.

The federal Housing and Urban Development Department oversees the program and gives the city the right to purchase the homes first. Most of the homes had been taken over by Fannie Mae, Freddie Mac, Chase and Bank of America.

"We are looking for the worst of the worst, the ones that are all boarded up,"said Douglas Guthrie, general manager of the city Housing Department. "Many had illegal build-outs or had more than one family living in the homes."

Councilman Bernard Parks said his district has been able to use the money to renovate a senior citizen facility as well.

Councilman Richard Alarcón, who was among the first to call for such a program, said he was pleased to see it moving forward -- but would like to see more attention to his own northeast San Fernando Valley district.

"We have hundreds of properties that could be improved in my district and they have done 19," Alarcón said. "That's disappointing. I do recognize that South Los Angeles had a higher number."

For more information, call 213-270-1720 or go to restoreneighborhoodsla.org.

"Terminal operators at ports of L.A. and Long Beach agree to cut diesel emissions"- LA Times

Los Angeles Works — Tue, 16 Aug 2011 12:00:AM PST

Terminal operators at ports of L.A. and Long Beach agree to cut diesel emissions

Seven terminal operators at the ports will undertake cleanup projects under a settlement reached with California Atty. Gen. Kamala D. Harris.

By Ronald D. White, Los Angeles Times

August 16, 2011

Terminal operators at the ports of Los Angeles and Long Beach that were alleged to be in violation of diesel emission standards will be undertaking cleanup projects estimated to cost $1 million apiece under a settlement reached with California's attorney general.

The seven companies will also have to pay other costs, and let the public know — through advertisements in newspapers, at bus stops and online — of the dangers of diesel exhaust.

The terminal operators move imports and exports through the neighboring ports of Los Angeles and Long Beach, which together make up the world's sixth busiest harbor. San Pedro Harbor is Southern California's single biggest source of air pollution.

"This settlement will speed the requirements for port terminals to reduce diesel emissions," Atty. Gen. Kamala D. Harris said. "This is vitally important because expanding port traffic leads nearby residents to be exposed to polluted air, and increased risk of cancer and other diseases."

Harris said in a statement that the projects the operators will undertake include pilot projects to test solar electric panels that withstand the saltwater environment, and a crane-mounted system to capture exhaust from the smokestacks of idling vessels.

The agreement also requires that the terminals make combined payments totaling $756,000 to the Port of Los Angeles for grants to allow small trucking firms to buy low-emission trucks; $324,000 to the Port of Long Beach for projects for clean-running trucks and locomotives; and $540,000 in civil penalties.

The settlement requires the terminal operators to keep giving the advertised warnings until diesel emissions no longer pose a significant risk to the community.

Named in Harris' statement were APM Terminals Pacific; Eagle Marine Services; International Transportation Service Inc.; SSA Terminal (Long Beach); SSA Terminals, Pacific Maritime Services; Trapac Inc.; West Basin Container Terminal; and Yusen Terminals Inc.

A lawyer representing the seven companies said her clients had no comment on the settlement announcement.

"DWP solar incentives to resume"- Daily News

Los Angeles Works — Tue, 16 Aug 2011 12:00:AM PST

DWP solar incentives to resume

By Rick Orlov, Staff Writer

Posted: 08/16/2011 10:20:25 PM PDT

Updated: 08/16/2011 11:01:06 PM PDT

The Department of Water and Power will once again offer financial incentives for Los Angeles homeowners to generate solar power starting Sept. 1, officials decided Tuesday.

The City Council voted 13-0 to resume the Solar Incentive Plan, which had been halted in April when demand exceeded the program's budget.

Now, $60 million will be made available for the program for at least each of the next two years.

The council vote came after DWP General Manager Ron Nichols promised to provide updates on the program's balance between residential and commercial customers, as well as reach out to low-income families to install the solar devices.

"As we re-launch the Solar Incentive Program, it is extremely important that we leverage the incentives to achieve the most solar power and encourage as much customer participation as possible," Nichols said.

"We also want to grow solar at a steady and sustainable pace while being prudent about the cost to all customers who pay for the program through their rates."

Since the program was put on hold, the DWP has held a number of community workshops to develop new guidelines, including how it can reach out to lower-income families.

The new program will make $60million available a year, but will be put on hold when it hits the $40million mark, to ensure that pending applications don't push it over the total budget. The money is available through long-term bond financing.

The DWP is facing a state goal of generating 280 megawatts of new solar energy and is required to spend $313 million through the end of 2016 for solar incentives.

"We are committed to spending the $313 million," Nichols said.

Launched in 2006, the incentive program now helps generate 35 megawatts of solar energy, and officials estimate another 25 megawatts will be added this year.

Persons interested in the program can go to the DWP website, www.ladwp.com/solar.

"Automakers rebound in July to lift factory output"- Daily Breeze

Los Angeles Works — Tue, 16 Aug 2011 12:00:AM PST

Automakers rebound in July to lift factory output

By The Associated Press

Posted: 08/16/2011 09:37:46 AM PDT

Updated: 08/16/2011 09:39:51 AM PDT

In this July 27, 2011 photo, assembly worker Julaynne Trusel works a on a 2012 Chevrolet Volt at the General Motors Hamtramck Assembly plant in Hamtramck, Mich. A busy month for U.S. automakers lifted overall factory output in July by the most since the Japan crisis. A stronger manufacturing sector is the latest evidence that the economy may not be as weak as some had feared. (AP Photo/Paul Sancya) (Paul Sancya)

WASHINGTON - U.S. automakers rebounded in July to boost factory production by the most since the Japan crisis. But builders broke ground on fewer single-family houses, leaving home construction at depressed levels.

The mixed data suggest the economy remains fragile but is not on the cusp of another recession.

Overall industrial production, which includes output by utilities, mines and factories, rose 0.9 percent last month, the Federal Reserve said Tuesday. That's the largest gain of the year.

Factory output, the largest component of industrial production, rose 0.6 percent. It was the biggest increase since the March 11 earthquake in Japan disrupted supply chains and slowed production at some U.S. auto plants.

The auto industry accounted for nearly all of the factory production gains. Motor vehicles and parts jumped 5.2 percent. Excluding that category, factory output grew only 0.2 percent.

Also driving industrial production higher was an unseasonably hot summer, which led more people to leave their air conditioners running. Utilities jumped 2.8 percent, the most since December. Mining output also increased.

The Commerce Department said in a separate report that builders began work on a seasonally adjusted 604,000 homes last month, a 1.5 percent decrease from June. That's half the 1.2 million homes per year that economists say must be built to sustain a healthy housing market.

Single-family homes, which represent 70 percent of home construction, fell 5 percent. Apartment building rose more than 6 percent.

Stocks traded lower after three days of gains. The Dow Jones industrial average fell more than 60 points in morning trading. Investors seemed to focus on Germany's economy, which stalled in the second quarter and could slow growth in Europe as it struggles to contain its debt crisis.

The stronger industrial production report confirmed other data that show the U.S. economy strengthened at the start of the July-September quarter after growing at a feeble annual rate of just 0.8 percent in the first half of the year.

Employers added more than twice the number of jobs in July than in each of the previous two months. The number of people applying for unemployment benefits this month fell below 400,000 for the first time since early April. And consumers spent more on retail goods in July than in any month since March.

Manufacturing had been one of the strongest sectors of the U.S. economy in the two years since the recession officially ended. It has weakened in in recent months, rising strongly only once since February.

Economists blamed the decline in part on temporary factors. The crisis in Japan caused a parts shortage for some U.S. automakers and other manufacturers. High fuel prices left consumers with less money to spend on discretionary goods, such as appliances and furniture.

"The increase in manufacturing production suggests the economy is finally emerging from distortions posed by the Japanese production shutdowns, which wreaked havoc on the global manufacturing supply chain," said Joseph LaVorgna, chief U.S. economist with Deutsche Bank Securities.

But housing is likely to keep dragging on the economy.

The number of homes under construction in July was the fewest in 40 years. Just 413,000 homes are under construction, after accounting for seasonal factors. A decade ago, roughly 1.6 million homes were built.

Building permits, a gauge of future construction, declined 3.2 percent in July. Jill Brown, vice president of economics at Credit Suisse, said that decline suggests "very little forward momentum."

After previous recessions, housing accounted for 15 percent to 20 percent of overall economic growth. This time around, between 2009 and 2010, housing contributed just 4 percent to the economy.

Though new homes represent just 20 percent of the overall housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and about $90,000 in taxes, according to the National Association of Home Builders.

New-home sales fell in June to a seasonally adjusted pace of 312,000 homes per year. That's less than half the 700,000 per year that economists consider to be healthy.

One reason for the slow pace is that previously occupied homes are a better deal than new homes. The median price of a new home is more than 30 percent higher than the median price for a re-sale. That's more than twice the markup in healthy housing market.

Despite historically low mortgage rates, few Americans are prepared to buy a home as the economy fizzles and job growth is stagnant.

"The now-extended period of ultra-low interest rates is not squeezing any new demand out of the rock," said Pierre Ellis, an analyst at Decision Economics.

"Coda Signs Car Development Deal with Chinese Firm"- LA Business Journal

Los Angeles Works — Tue, 16 Aug 2011 12:00:AM PST

Coda Signs Car Development Deal with Chinese Firm

By Deborah Crowe Tuesday, August 16, 2011

Coda Holdings, a developer of electric cars and advanced battery systems, on Tuesday said it signed a letter of intent to develop electric vehicles with Chinese vehicle manufacturer Great Wall Motor Co.

The parent of Coda Automotive Inc., which in June announced it was moving its headquarters from Santa Monica to Los Angeles, said the partnership is expected to combine Great Wall’s manufacturing prowess with Coda's proprietary lithium-iron phosphate battery system. Coda’s own compact electric sedan for the U.S. market, with an estimated list price with $44,900, or $34,000 with expected government incentives, is expected to go on sale later this year.

Great Wall is the leading Chinese vehicle importer to the European Union and also exports to some 120 countries around the globe, according to Coda.

"Our collaboration will enable us to provide our respective customers with a broad selection of high-performing and affordable electric vehicles globally,” said Coda Chief Executive Phil Murtaugh in a statement.

Great Wall, which had announced plans to introduce an all-electric vehicle, said the venture should give it greater access to the U.S. market.

"This partnership will allow us to combine Coda’s high performance EV propulsion system and understanding of the United States market with Great Wall's extensive vehicle platforms, experience in the China market and leading manufacturing capability," said Great Wall Chairman Wei Jianjun in a statement.

Financial terms of the deal were not disclosed.

"L.A. City Council May Reconsider Solar Incentives Cuts"- LA Business Journal

Los Angeles Works — Fri, 12 Aug 2011 12:00:AM PST

L.A. City Council May Reconsider Solar Incentives Cuts

By Howard Fine Friday, August 12, 2011

Responding to complaints from solar roof installation companies, the Los Angeles City Council on Friday voted to intervene on a controversial proposal by the Los Angeles Department of Water & Power to scale back solar incentives given to homeowners.

The 12 – 1 vote is seen as an indicator that the council next week will likely send the program back to the DWP for a redo.

The DWP earlier this year was forced to halt the solar incentive program because it was running out of money. A flood of applications had come in from homeowners seeking to take advantage of rebates that covered roughly half the cost of installing solar panels.

Last month, the DWP board voted to allocate another $60 million to the program but also to reduce the incentives by at least 30 percent in an attempt to allow more homeowners to use them.

However, solar roof installers, led by Orange-based Verengo Solar, oppose the new incentive structure, saying the rebates are now too small to convince homeowners to spend money to have solar panels installed. The installers also say the new incentive levels are lower than the rebates offered by other power companies.

The council is expected to decide before it breaks for summer recess next Friday week whether to order the DWP to rework the program.

"Retail sales rose 0.5 percent in July"- Associated Press

Los Angeles Works — Fri, 12 Aug 2011 12:00:AM PST

Retail sales rose 0.5 percent in July

By MARTIN CRUTSINGER
AP Economics Writer

Aug 12, 2:23 PM EDT

WASHINGTON (AP) -- Consumers spent more on autos, furniture, clothing and gas in July, pushing up retail sales by the largest amount in four months. The gain signaled that Americans are a little more confident in the economy and could helped dispel fears that the country is headed for another recession.

Retail sales rose 0.5 percent last month, the Commerce Department said Friday. It was the best showing since March. The government also revised sales higher in the previous two months.

Even after excluding sales at gas stations, which were influenced by an increase in gas prices, sales rose 0.3 percent last month.

The better-than-expected retail sales report is the second strong signal on the economy in as many days. Stocks rose in early trading. The Dow Jones industrial average gained 120 points.

On Thursday, the Dow closed up 423 points for the day after the government said the number of people applying for unemployment benefits dropped below 400,000 for the first time since early April.

"Don't write off the American consumer or economy just yet," said Sal Guatieri, senior economist at BMO Capital Markets. "The solid July retail sales report should help allay recession fears."

A batch of poor data and a gloomy outlook from the Federal Reserve this week have made investors more nervous that the economy could fall back into a recession. Stock markets have tumbled in recent weeks. The Dow has lost more than 1,400 points, or more than 11 percent, since July 22.

But data for July suggest the economy may be in better shape than some had feared. Layoffs are down, retail sales are up and gas prices are falling. Employers added 117,000 net jobs last month. That's not enough to significantly lower the unemployment rate, but it was a notable improvement after two dismal months of hiring.

"The fact that retail sales held up over the last few months even though the labor market was foundering is a positive economic development," said Joseph LaVorgna, chief U.S. economist at Deutsche Bank. "However, the true test will be to see if consumer activity held up in the face of recent financial market gyrations and slumping economic confidence. So the August data will be of much greater significance."

In a separate report, the Commerce Department said that businesses added to their stockpiles for an 18th straight month in June. But the 0.3 percent rise in business inventories was the smallest gain in 13 months. Total business sales rose 0.4 percent after a 0.1 percent drop in May. The rebound in sales should help to bolster shaky business sentiment and spur further inventory restocking in coming months.

The retail sales report is the government's first read on consumer spending for the July-September quarter. Consumer spending is always closely watched because it accounts for 70 percent of economic growth. But in June, consumers cut spending for the first time in 20 months, a troubling sign.

Retail sales, which don't include spending on services, have been slowing since February.

For July, auto sales rose 0.4 percent after a 0.7 percent gain in June. Demand for cars has been low this year, and many dealers have also had a hard time stocking popular models because of supply chain disruptions stemming from the Japan crisis.

Gasoline sales rose 1.6 percent. The increase was largely because of the rise in gas prices that have since been reversed.

Purchases of furniture rose 0.5 percent, electronics store sales increased 1.4 percent, and sales at specialty clothing stores climbed 0.5 percent.

Sales at department stores fell 0.8 percent in July. Economists had expected them to show a rise following reports from big retailers that they had a decent start to the back-to-school shopping season.

Sales at a broader category of general merchandise stores, which includes department stores and big retailers such as Wal-Mart, were flat in July following a 0.5 percent rise in June.

Many retailers had reported last week that back-to-school promotions had helped boost their sales in July. Target, Macy's and luxury chain Saks all reported gains that beat Wall Street expectations. But retailers are worried that consumers may be thrifty when shopping this summer, sticking with basic necessities and holding out for sales. That's a popular strategy in tighter economies, but one that hurts stores' profits.

High unemployment and a spike in gas prices have forced many consumers to be more cautious about spending. Their hesitation was a major reason the economy grew a meager 0.8 percent in the first six months of the year, the weakest growth since the recession officially ended.

Many economists, including Federal Reserve Chairman Ben Bernanke, had thought the economic slowdown was mostly because of temporary factors, such as high gas prices and the parts shortage out of Japan.

But this week the Fed acknowledged that the economy's problems are deeper. Its statement suggested growth could be dismal for at least two more years.

As a result, the Fed took the unprecedented step of pledging to keep a key interest rate it controls at a record low near zero at least through mid-2013.

Private economists have been busy marking down their own forecasts. Analysts at JPMorgan Chase said they expect the just 1.5 percent growth in the July-September quarter, a full percentage point lower than their previous forecast.

"Mayor talks gross-receipts tax cuts"- Daily News

Los Angeles Works — Wed, 10 Aug 2011 12:00:AM PST

Mayor talks gross-receipts tax cuts

By Rick Orlov, Staff Writer

Posted: 08/10/2011 08:26:41 PM PDT

Updated: 08/10/2011 08:28:45 PM PDT

Hoping to free up money that local companies could use to add jobs, Mayor Antonio Villaraigosa plans to meet with local business leaders to discuss phased-in cuts in Los Angeles' gross-receipts tax.

Villaraigosa is scheduling a series of roundtable meetings - he held the first one last month in Chatsworth - to discuss ways the city can create a more business-friendly environment.

"Los Angeles has been hit hard by the historic economic turmoil which continues to produce double-digit unemployment numbers in more than 75 metro economies across the country," Villaraigosa said in a statement. "Experts predict a `lost decade' for many cities unable to recover."

Villaraigosa said he hopes the discussions, targeted to specific industries, will help develop a business tax system that can help the economy rebound.

On a separate track, Councilman Richard Alarcón is using the Jobs and Business Development Committee he chairs to debate recommendations from the Business Tax Advisory Committee to eliminate the gross-receipts tax altogether.

"Given the potential impact of the elimination of a gross-receipts tax on the local economy as well as the city's budget, it is critical that the City Council consider this proposal in a comprehensive and expeditious manner," Alarcón said.

Because of the potential loss of revenue to the city, he has urged that a pilot program be undertaken first.

A report by Charges Swenson, a USC accounting professor, said the city could make dramatic cuts in the business tax without losing significant revenue because of the new income that would be generated by the addition of jobs.

Alarcón said he is reluctant to eliminate the tax - which generates $410 million to $430 million annually for the city's $6.7 billion budget - without more detailed study.

For his part, Villaraigosa has pushed through a number of proposals designed to help businesses, including a three-year business tax holiday, streamlining the city's permitting process and granting preference to local companies in city contracts.

The roundtable meetings will include an invitation-only session on Aug. 22 at Mission Foods in Panorama City. Others will be held in South Los Angeles, Playa Vista and Hollywood.

"Each meeting will focus on different reforms to spark growth," spokeswoman Sarah Sheahan said.

"New Air Carriers Boost LAX Traffic"- LA Business Journal

Los Angeles Works — Mon, 08 Aug 2011 12:00:AM PST

New Air Carriers Boost LAX Traffic

By James Rufus Koren

Monday, August 8, 2011

Passenger traffic at LAX was up by more than 5 percent in the first half of the year, despite a drop in travel to and from Japan following the March earthquake and tsunami, according to figures released late Monday.

Those losses were offset by gains from Turkish Airlines and Iberia – both new carriers at Los Angeles International Airport – and by the addition of new flights by existing carriers, according to Los Angeles World Airports, the city agency that operates the facility.

Between January and June, 29.9 million passengers flew through LAX, up 5.4 percent from the 28.3 million who went through the airport in the first half of 2010. Domestic passengers increased by 5.9 percent, while the airport saw 4 percent more international passengers.

"Feedback is mostly positive at Westfield Village public hearing"- Daily News

Los Angeles Works — Thu, 04 Aug 2011 12:00:AM PST

Feedback is mostly positive at Westfield Village public hearing

By Gregory J. Wilcox, Staff Writer

Posted: 08/03/2011 09:32:39 PM PDT

Updated: 08/03/2011 09:34:11 PM PDT

Public hearings on the proposed Village at Westfield Topanga began Wednesday, Aug. 3, 2011. The development is seen here in a rendering.

Westfield LLC's plan for a 1million-square-foot project in Warner Center received a generally warm reception Wednesday during its first public hearing, with most criticism directed only at a proposed Costco store and its gas station.

About 300 people, many wearing red "I Support Westfield" stickers, packed a ballroom at the Warner Center Marriott for the hearing before city planning officials.

The proposed $450 million Westfield Village at Topanga project includes a 275-room hotel, 278,985 square feet of retail, 285,000 square feet of offices, plus a grocery store, movie theater, community building and 15 acres of open space and walkways.

"I'm excited about the possibilities for the Village," said Larry D. Green, Westfield's senior vice president of U.S. development and head of its Western region operations. "The investments we are making are really staggering."

Green said building the Village would create 3,000 construction jobs and 4,000 permanent positions. Upon completion, it would generate an estimated $640 million annually to the local economy and some $9.4 million in city tax revenue.

"These are important jobs that are needed in the community today. This will give us resources to pay for teachers, police and firemen," Green said.

Economic Benefits Touted

Stuart Waldman, president of the Valley Industry and Commerce Association, which has 363 members who employ about 100,000 people in the area, said the Village is crucial for the Valley's future.

"We have to support the Village at Westfield Topanga. It represents our vision for the West San Fernando Valley," Waldman said. "The economic benefits to the city are enormous. This is a big investment Westfield has chosen to make. The Village no doubt will be an important asset."

Nearly 80 people spoke during the three-hour hearing, and few of them criticized the "village" portion of the project that would contain shops, restaurants and a theater complex.

But many zeroed in on the 165,759-square-foot Costco and its gas station at Victory Boulevard and Owensmouth Avenue, which will anchor the project.

Canoga Park resident Theresa Conway said the area doesn't need a Costco and presented the two planning department officers at the hearing with a petition against the store signed by 300 people.

"We are not against the Village but against the Costco. I support the Village," she said.

`Best Damn Costco'

The Woodland Hills Warner Center Neighborhood Council also had a problem with the Costco and its gas station, saying they need to be relocated. The group submitted a nine-page list of recommendations to planning officials.

"The council cannot support the project as proposed," said Karen Koe, chair of the neighborhood council.

John Frank, Costco's vice president of development, said the company looks forward to opening a store in the West Valley.

"We have been part of the Valley community for many years. We want to continue that into the future," he said

Rose Goldwater, a community activist and volunteer, welcomes a Costco in Warner Center, saying the "not-in-my-backyard" attitude was prevalent when the area was developed in the late 1960s.

"We're going to have the best damn Costco in the country," Goldwater said.

The Westfield project, first proposed in 2007, is 45 percent smaller than the original plan.

Hearing officer Frank Quon said written comments can be submitted until 5 p.m. next Wednesday and a hearing before the full planning commission will likely be held in October.

"Private sector added 114,000 jobs in July"- LA Times

Los Angeles Works — Wed, 03 Aug 2011 12:00:AM PST

Private sector added 114,000 jobs in July

6:28 AM PDT, August 3, 2011

U.S private employers added more jobs than expected in July, though less than in June, but planned layoffs rose to a 16-month high, according to separate surveys on Wednesday.

The data comes ahead of the U.S. government's key jobs report on Friday, which is forecast to show the pace of job creation accelerated last month. The economy is expected to have gained 85,000 jobs, not enough to push the unemployment rate below its current 9.2 percent.

U.S. private employers added 114,000 jobs in July, topping economists' expectations, a report by a payrolls processor ADP showed on Wednesday.

Economists surveyed by Reuters had forecast the ADP National Employment Report would show a gain of 100,000 jobs. June's private payrolls were revised down to an increase of 145,000 from the previously reported 157,000. The report is jointly developed with Macroeconomic Advisers LLC.

A separate report on Wednesday showed the number of planned layoffs at U.S. firms rose to a 16-month high in July as sectors which had been seeing fairly few layoffs unexpectedly bled jobs.

Employers announced 66,414 planned job cuts last month, up 60.3 percent from 41,432 in June, according to a report from consultants Challenger, Gray & Christmas, Inc.

July's job cuts also were up from the same time a year ago, rising 59.4 percent from the 41,676 job cuts announced in July 2010, and recording the largest monthly total since March, 2010.

"What may be most worrisome about the July surge is that the heaviest layoffs occurred in industries that, until now, have enjoyed relatively low job-cut levels," John A. Challenger, chief executive officer of Challenger, Gray & Christmas, said in a statement.

Layoffs in the pharmaceutical and retail sectors overtook nonprofit and government job cuts last month, accounting for 20.32 percent and 16.93 percent of announcements respectively.

Job cuts at Merck & Co., Borders, Cisco Systems, Lockheed Martin and Boston Scientific accounted for 57 percent of the July total, according to Challenger, making July the first month in seven in which the government sector did not shed the most jobs.

"A casual observer certainly might conclude that the wheels just fell off the recovery wagon," said Challenger.

For the first seven months of the year, government and nonprofit profit job cuts still account for the largest share of planned layoffs.

For 2011 so far, employers have announced 312,220 cuts, down 8 percent from the first 7 months of 2010.

In a third report on Wednesday, applications for U.S. home mortgages rose last week as interest rates fell, an industry group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, rose 7.1 percent in the week ended July 29.

The MBA's seasonally adjusted index of refinancing applications rose 7.8 percent, while the gauge of loan requests for home purchases rose 5.1 percent.

"Factors such as negative equity and a weak job market continue to constrain borrowers," Michael Fratantoni, MBA's Vice President of Research and Economics, said in a statement.

While purchase activity increased last week, it remained low by historical standards, he said.

Even though 30-year mortgage rates are back below 4.5 percent, the refinance index stands at still almost 30 percent below last year's level, Fratantoni pointed out.

Fixed 30-year mortgage rates averaged 4.45 percent in the week ending July 29, down 12 basis points from the week before.

The refinance share of mortgage activity increased to 70.1 percent of total applications from 69.6 percent the week before.

"Los Angeles DWP to relaunch Solar Incentive Program Sept. 1"- LA Times

Los Angeles Works — Wed, 03 Aug 2011 12:00:AM PST

Los Angeles DWP to relaunch Solar Incentive Program Sept. 1

August 3, 2011 | 12:23 pm

L.A.'s Board of Water and Power Commissioners approved a plan Tuesday to relaunch its Solar Incentive Program, and the Department of Water and Power will resume accepting applications for the program Sept. 1 at 10 a.m. The program was placed on hold April 9 because demand for solar incentives exceeded available funds by a factor of three to one.

"As we relaunch the Solar Incentive Program in September, it is extremely important that we leverage the incentives to achieve the most solar power and encourage as much participation as possible," DWP General Manager Ronald O. Nichols said in a statement. "We also want to grow solar at a steady and sustainable pace while being prudent about the cost to all customers who pay for this program through their rates."

The DWP has increased the budget for the Solar Incentive Program to $60 million for the current fiscal year. It anticipates adding $60 million to the program annually in 2012 and 2013 as well. The $60 million in rebates over the next three years will be funded with revenue collected from ratepayers' electric bills.

For an average four-kilowatt, $32,000 solar power installation, the program previously covered up to 45% of the costs for residential buildings. Through April of this year, the Solar Incentive Program reimbursement rate was $3.25 per watt, or $13,000 for a four-kilowatt system. Starting Sept. 1, the rebate amount will be $2.00 to $2.20 per watt, with the highest rebate amount going to the most efficient systems. A four-kilowatt system with optimum orientation and no shading would be reimbursed $8,800, a less-efficient system, $8,000.

In a statement, DWP senior assistant general manager Aram Benyamin said, "Now that significant tax incentives are being offered by the federal government, we have an opportunity to reduce our incentive levels to be more in line with market pricing, which should give more customers the opportunity to build solar and increase the amount of solar [photovoltaic projects] that can be built through this program."

Homeowners who install solar power between now and the end of 2016 can receive a federal tax credit equal to 30% of the system's cost.

Many of the area's top solar providers, including Sungevity, SolarCity, Verengo and SunRun, oppose LADWP's revamped Solar Incentive Program. They say the reduced incentives would require homeowners who install photovoltaic systems to pay more for electricity than they would without solar panels; the payback period would also increase to as much as 14 years -- far longer than other areas in the state. [Updated 8-3-11, 1:10 p.m.: The original version of this post did not include feedback from solar installers.]

According to Nichols, "In the next few months, we will come back with more leasing options and other proposals for lower-income households."

-- Susan Carpenter

"Working On Jobs"- LA Business Journal

Los Angeles Works — Mon, 01 Aug 2011 12:00:AM PST

Working On Jobs

New L.A. ‘czar’ all about business

By Howard Fine

Monday, August 1, 2011

Matt Karatz grew up in France and was the only American kid at school. So he quickly learned what it meant to be the odd person out. When he saw another kid in that position, he felt compassion and reached out.

His father – former KB Home Chief Executive Bruce Karatz – believes that’s how Matt Karatz developed “an uncanny ability to bring together people of disparate interests for a common good.”

Matt Karatz will need to draw on this skill now as Los Angeles Mayor Antonio Villaraigosa’s new jobs czar: Villaraigosa last month tapped him to replace Austin Beutner as deputy mayor of the office of economic and business policy.

Beutner, a former private investment executive, left the administration three months ago to consider launching a campaign to replace Villaraigosa as mayor in 2013.

After working in broadcast journalism and real estate – including stints at Westwood-based KB Home and Caruso Affiliated Holdings in Los Angeles – Karatz, 39, is suddenly one of the most powerful people at City Hall and one that the local business community looks to. He will help craft and implement more business-friendly policies.

He also supervises the city’s development and housing agencies, Los Angeles World Airports, the Port of Los Angeles and the Department of Water and Power. One of his tasks is to make these inertia-prone and turf-conscious bureaucracies more responsive to business and development.

For Karatz, it’s a chance to emerge from the shadow of his father, who last year was convicted on charges of backdating stock options while at KB Home. Bruce Karatz received a sentence of five years probation, including eight months of house arrest in which he must wear an electronic monitor. He was also sentenced to 2,000 hours of community service, and has been fulfilling that by working with former gang members at downtown L.A.’s Homeboy Industries.

For the last year, Matt Karatz had been managing director of the mayor’s office of economic and business policy, part of a team of volunteers recruited by Beutner to assist in his business development activities.

In that role, Karatz helped bring new companies to the city, including architectural firm Gensler, which moved to downtown from Santa Monica, and apparel company Lucky Brand Jeans, which moved from Vernon to downtown’s Arts District. He also helped Irving, Texas-based Mission Foods open a manufacturing plant in Panorama City.

The conference room for the economic development office on the 13th floor of City Hall features a board with the legend, “Getting to Yes,” and decorated with letters from businesses and other constituents grateful for the department’s help and can-do attitude.

Business praise

Karatz has won plaudits from local business leaders who have worked with him over the past year.

“Matt gets it,” said Carol Schatz, chief executive of the Central City Association, which represents business interests, primarily downtown. “He understands the barriers that developers and businesses face and what’s necessary to spur business investment in the city. Most important, he has shown he can implement things, not just talk.”

But Karatz faces a challenge in convincing a skeptical business community that lasting change can be made after years of promises and false starts.

Business interests got their hopes up early last year when Villaraigosa named Beutner his jobs czar. Accomplishments of the office include opening a one-stop permitting office last month at the Department of Building and Safety.

But some business leaders have privately expressed disappointment that Beutner’s attention was forced elsewhere when Villaraigosa called on him to run the DWP. Then, just after he returned to focus full time on his jobs czar duties, Beutner resigned to launch his exploratory campaign for mayor.

Beutner said that while he was focused on the DWP, he delegated some of the economic development work to his volunteer corps, including Karatz.

He also said it would be naïve to assume that Los Angeles could become business-friendly in a year.

“We showed that things could be changed and laid the foundation for change,” he said. “There’s much more left to do, but that first step is often the hardest.”

Karatz said he’d be continuing on that path.

“So much more needs to be done to move the needle so that businesses can regain the confidence to hire and reinvest in our city,” he said during a recent visit to the Business Journal offices.

However, Karatz and the Villaraigosa administration must tread carefully. If they go too far in their efforts to smooth the road for business and development interests, they risk a backlash from homeowner and environmental groups concerned about congestion and overdevelopment.

Getting there

Karatz lived in France as a boy because his father was running KB Home there; at one point, it was that country’s biggest homebuilder.

He initially decided against following in his father’s footsteps and, after graduating from Pitzer College in Claremont, moved to New York to embark on a journalism career.

He landed a job as a broadcast intern at ABC News. Then, two years later in 1996, he got his big break. It was Mother’s Day and a ValuJet plane had just crashed in the Everglades in Florida. With his regular crew unavailable, Karatz’s boss, investigative correspondent Brian Ross, asked him to fly down to Florida and interview the manager of ValuJet’s maintenance facility.

“I left my mother at the lunch table and went straight to the airport,” he recalled. “I didn’t even have time to get any of my things.”

The interview was the lead story on both the “ABC Nightly News” and “Nightline,” and Karatz’s broadcast career took off. He was promoted to an investigative reporting position on the “20/20” news magazine show, where he received an Emmy Award for a story on campaign finance reform. He also worked on an award-winning expose of CIA activities in Iraq. During that investigation, sources blindfolded Karatz and his news team to take them to secret locations.

“I really enjoyed it. At the time, I was unattached and traveling the world and getting such incredible assignments,” he said.

Joining father’s firm

As he neared 30, Karatz realized that he didn’t want investigative journalism to be a long-term career.

“This was all about uncovering the bad in people and, at bottom, I’m a glass-half-full person. So I decided to transition out of the business,” he said.

Karatz returned to Los Angeles and decided to join his father’s company. “This was something I did completely on my own; my father never persuaded me to do it,” he said.

In fact, Bruce Karatz took a hands-off approach. His son was assigned to KB Home’s land division, where he helped negotiate land deals. Matt Karatz eventually rose to senior director of land acquisition for KB Home’s north L.A. division, covering north Los Angeles County, and Ventura and Kern counties.

Bruce Karatz said that his being chairman probably hindered his son’s ability to advance in the company.

“In retrospect, going to work at KB Home slowed down his growth,” he said. “Being the son of the chairman one might think that it’s helpful. In his case, it was hurtful. His abilities were far greater than the responsibilities that he was given. I never directed anyone in our human resources department on what to do with Matt.”

At about this time, the younger Karatz got married. He met his wife, Lindsey, at a dinner party in New York. She now oversees marketing and public relations for her sister’s L.A.-based women’s apparel company. They live in the Benedict Canyon area with their 4-year-old son, Levi.

In 2006, Bruce Karatz resigned as chairman and chief executive amid mounting investigations of the company’s handling of stock options. Matt Karatz left a few months later and took a job working for shopping mall magnate and potential mayoral candidate Rick Caruso. His first responsibility at Caruso Affiliated was selling condominiums that were part of the Americana at Brand project in Glendale.

Unfortunately, Karatz’s timing was off. Within months, the real estate market crashed.

Caruso described Karatz as personable and a “good thinker,” who is able to bring people along with him as he puts forward solutions.

“People like Matt and they want to follow Matt and do what he asks them to do,” Caruso said. “That’s a really strong and important quality, especially at City Hall.”

Period of trial

As the recession dragged on, Karatz’s prospects at Caruso dimmed. In the meantime, his expertise was needed on the home front as his father prepared for trial. So he left Caruso and took over management of Avondale Investments LLC, the Karatz family property portfolio.

Matt Karatz described the next year as a tough time.

“Watching my father go through this was very difficult for me and very, very unfortunate,” he said. “But he never let it show. He was able to gather the troops and think positively. He was responsible for keeping all of us heading in the right direction when we could each have gone off the deep end.”

That applied even on what he called the two worst days in his life: the reading of the guilty verdict in April 2010 and sentencing day seven months later.

As an investigative journalist, he had reveled in exposing secrets the subjects of his stories would rather not become public. Now, the harsh media glare shone on the dealing of his father, whose reputation suffered.

“The publicity was the most challenging part of this whole affair,” he said. “I learned how to grow a thick skin.”

Of that period, Bruce Karatz said one of the most difficult things for him was the concern that his children, wife, family and friends continually expressed for him.

“I had to keep telling them that I was fine, that whatever happened I was going to make it through OK and so would they,” the elder Karatz said.

Call to serve

In the midst of the trial, Matt Karatz received a call from Beutner, who just weeks earlier had joined the Villaraigosa administration as first deputy mayor. Beutner was looking for volunteers (they got a symbolic salary of $1 a year) to help bring focus to City Hall’s efforts to attract and retain businesses, create jobs and grow the economy.

“At first, I said, ‘No, thank you,’” Karatz said. “But then, the more I thought about it and talked it over with my wife and family, the more the offer appealed to me as a way to give back to the community.”

But Karatz had one condition: He had to stay with the family investment business at least through the verdict. Once that happened, in April of last year, Karatz joined Beutner’s team at City Hall, working out of a Spartan office on the 13th floor.

He said the biggest surprise he encountered was that despite good intentions, City Hall just couldn’t make it easier for developers and other businesses to succeed in Los Angeles.

An example of what he calls all the missed opportunities was the failure of the “12-to-2” permit reform program. The number of agencies responsible for approving projects was supposed to be reduced by that ratio. Turf battles and bureaucratic inertia stalled the program for two years and Beutner finally pulled the plug on it last summer in favor of top-to-bottom reform.

Business reaction

Karatz said his top tasks will be to implement further permit reform and garner support for Villaraigosa’s latest initiative to scrap the city’s costly and much despised gross receipts business tax.

Some see him as an untested commodity, and wonder about his youth and the level of support he’ll have at City Hall.

One local business leader, speaking privately, said that while Karatz shows promise, he has had little experience leading large organizations. “He’s no Austin Beutner,” that person said.

Caruso, who has been critical of City Hall, said that despite his respect for Karatz, the environment might prove to be very difficult.

“He’ll do a good job over there in a very tough situation,” Caruso said. “But he’s part of an administration that’s not had great success in bringing in new business – and now it’s a lame duck administration, too. People get stuck in their ways after so many years in an administration. So the real question is whether Matt can get the backing of the mayor to get meaningful change and the resources to carry it out.”

"Gap weaves fabric of L.A. into 1969 jeans campaign"- LA Times

Los Angeles Works — Mon, 01 Aug 2011 12:00:AM PST

Gap weaves fabric of L.A. into 1969 jeans campaign

The apparel giant, which last year opened a creative design office in a gritty section of downtown Los Angeles near the fashion district, is making its L.A. vibe a central part of a global marketing effort.

By Andrea Chang, Los Angeles Times

August 1, 2011

Gap, the clean-cut San Francisco clothing brand, is embracing its edgier side in Los Angeles.

To bring its 1969 Premium Jeans line closer to the heart of the designer denim industry, the apparel giant last year opened a creative design office in a gritty section of downtown L.A. near the fashion district. Now Gap is putting its L.A. vibe at the core of a global marketing campaign that launches Monday, complete with food trucks and a dog.

"This is the center of creativity," said Seth Farbman, Gap's newly hired global chief marketing officer, during a recent interview at the design studio, where a staggering number of jeans were stacked on shelves, tucked into cubbyholes and hanging from clothing racks.

"What's interesting is that Gap has embraced it and is committed to getting at the heart of denim," Farbman said. "And I think that may be the antithesis of what people think of our brand."

Last year's move to L.A. was intended to boost the authenticity of the 1969 brand, launched in 2009, and to better position it against the region's high-end labels such as True Religion, J Brand and 7 for All Mankind.

Until now, the 5,400-square-foot design office on West Pico Boulevard has kept a low profile. The non-descript building, once home to a cigar factory, bears no mention of Gap and the intercom buzzer by the door doesn't work — a far cry from the company's heavily branded, buttoned-up headquarters that stretches a city block in San Francisco.

But Gap is letting its guard down in the new 1969: L.A. and Beyond campaign, which gives shoppers an inside look at the loft space. The marketing effort features vignettes filmed inside the studio and around L.A., fold-out print spreads in magazines including Vogue and Glamour, and advertisements in the windows of Gap stores nationwide.

The studio's team of denim designers and merchants figure prominently in the videos and ad spreads, with many sharing their backgrounds in apparel and what fashion means to them; office "mascot" Louie, a caramel-colored pit bull mix, also makes several appearances. The vignettes will be posted on Gap's Facebook page and on outlets such as Hulu and Pandora.

In true Angeleno style, the company has also procured several food trucks dubbed "Pico de Gap" that will hit the streets of Los Angeles, San Francisco, New York and Chicago starting next week for two months. The trucks will sell tacos with Gap coupons in the wrapper for $1.69; the tacos are free for shoppers who made a same-day purchase of 1969 denim at a Gap store and show a receipt.

By showing shoppers what happens behind the scenes, Gap executives want to give the company a more approachable feel that matches its goal of "democratizing fashion," Farbman said. On a larger scale, the hope is that the marketing effort breathes new life into Gap's advertising machine and sales, which have been lackluster recently even as competitors have posted solid results.

In its first quarter, Gap Inc., which is also parent to the Banana Republic and Old Navy chains, reported that profit fell 23% to $233 million and sales at stores open at least a year, known as comparable-store sales, declined 3%. The company's stock is down 13% year-to-date and its comparable-store sales rose a slight 1% in June; at Gap brand, comparable-store sales in North America fell 1%.

The 1969: L.A. and Beyond campaign will tout Gap's newest jeans styles, which hit stores this month and include new fabrics, colors and washes. Denim prices range from $59.50 to $89.95, a fraction of the price of high-end players, whose jeans can retail for $300 or more a pair.

Although Gap has lost its coolness factor in recent years and has had a number of product misses, its jeans line has been a strong performer, said Christine Chen, a retail analyst at Needham & Co.

"Denim is one of the product areas where they've had a lot of success, so it makes sense to lead with that and hope there's a halo effect on the rest of the product," she said. Still, "advertising gets people into the store, but product is what converts them into buyers."

"L.A., O.C. tax rolls up for first time in 3 years"- LA Times

Los Angeles Works — Thu, 28 Jul 2011 12:00:AM PST

L.A., O.C. tax rolls up for first time in 3 years

The uptick in values gives reason for optimism that the real estate market 'is growing stronger and continues to recover,' the L.A. County assessor says.

By Garrett Therolf and Kate Mather, Los Angeles Times

July 28, 2011

For the first time in three years, the assessed value of all property in Los Angeles and Orange counties has increased, according to assessors.

The uptick in values gives reason for optimism that "the real estate market in Los Angeles County and California is growing stronger and continues to recover," said Los Angeles County Assessor John R. Noguez.

"I think I'm probably the breath of fresh air that hope is finally resurfacing…" Noguez said. "When I shared this information with Gov. [Jerry] Brown, he was very happy."

In Los Angeles County, property rolls gained $16.2 billion in value in the last fiscal year to $1.1 trillion — driven largely by sales and changes in ownership of residential property, as well as new construction. In Orange County, the rise was $3.6 billion, raising the county's total taxable value to $420 billion.

The increase in assessments using the formula established when voters approved Proposition 13 in 1978 was tempered, however, by the fact that the true sales value of properties declined over the same period.

In Los Angeles County, the median home price was $318,000 in June, down from $335,000 a year earlier, according to DataQuick of San Diego.

Government leaders said they continue to worry about high joblessness and the resulting effect on sales and income tax revenue, but the increase in assessed property value removes a significant headwind that has worked against them in recent years.

"While it's a small increase in assessed value, the assessor's report is good news and signals there may be better days ahead," said Ryan Alsop, a spokesman for Los Angeles County Chief Executive William T Fujioka.

"Continuing to maintain service levels, avoid layoffs and produce a balanced budget, long term, will only be possible to the extent recent economic indicators showing signs of improvement are sustained," Alsop said.

Supervisor Zev Yaroslavsky said, "What we have here is the deepest and most prolonged recession in my memory. Overall, everybody is being cautious. We don't know where we'll be in a year."

Like the county overall, the region's largest cities also saw gains. In Los Angeles, the assessed value increased 1.5% to $432 billion. In Long Beach, the value rose 1.4% to $44.6 billion. But Noguez noted that not all cities saw gains.

"I live in Huntington Park, where the market is still struggling," he said. "It's one of those places that has not stabilized yet, where the foreclosure crisis is not over."

Yet economists agreed that the news was good overall and said that the positive effect would reach the private sector as well.

John J. Blank, deputy chief economist for the Los Angeles Economic Development Corp., said "the banks [that] have liens on all these properties are going to have a little more margin of safety so the loan-loss reserves can finally gain some clarity."

"This is good news and potentially very good news," Blank said. "There's never been a strong recovery without housing coming back."

"LAX passenger traffic rises in June"- Daily Breeze

Los Angeles Works — Tue, 26 Jul 2011 12:00:AM PST

LAX passenger traffic rises in June

By Art Marroquin Staff Writer

Posted: 07/26/2011 06:53:05 PM PDT

In the midst of the summer travel season, airline passenger traffic continued to increase last month at Los Angeles International Airport, according to figures released Tuesday.

More than 5.6 million travelers passed through LAX in June, a 6 percent increase from the same period last year, airport officials said.

More than 4.1 million of those airline passengers boarded domestic flights last month, a 6.5 percent jump from June 2010.

Additionally, nearly 1.5 million travelers boarded international flights last month, an increase of 4.8 percent from a year earlier.

Year-over-year figures show that more than 29.8 million airline passengers have traveled through LAX during the first half of 2011, a 5.4 percent increase from the same period last year.

Despite the gains in passenger traffic, airport officials reported a 1.4 percent decrease in the amount of freight and mail passing through LAX in June.

Overall, LAX has reported a decline of nearly 2.3 percent in air cargo during the first half of 2011 compared with the same period last year.

"Los Angeles area economy 'moving in the right direction'"- Daily Breeze

Los Angeles Works — Thu, 21 Jul 2011 12:00:AM PST

Los Angeles area economy 'moving in the right direction'

By Kristopher Hanson and Karen Robes Meeks, Staff Writers

Posted: 07/20/2011 08:33:12 PM PDT

Updated: 07/21/2011 07:56:58 AM PDT

Although high unemployment rates and a tumultuous housing market threaten to slow its progress, economic recovery throughout the Southland appears imminent in many of the area's major industries, a top economist said Wednesday.

Technology, tourism, international trade and retail garnered high marks from the Kyser Center for Economic Research at the Los Angeles County Economic Development Corp., which released its mid-year economic forecast Wednesday.

Much of this positivity is driven by growing consumer confidence, said Chief Economist Nancy D. Sidhu, who was one of four authors of the forecast.

Take tourism, for example, which earned an "A-" rating by the LAEDC. One would think that in times of recession, business and personal travel would fall to the wayside.

The numbers at the Long Beach Area Convention and Visitors Bureau tell a different story.

Both occupancy and average rates are on the rise, with its RevPar, or revenue per available room, up 11.8 percent over last year, said CVB President and CEO Steve Goodling.

"As long as the economy continues to improve, we expect 2011 and 2012 to be good years," Goodling said. "For room-night production, we've doubled our short-term bookings since last year, which allowed us to be up 9.7 percent over last year. Also, room-night sales for 2013 is strong, and we're pacing ahead of last year. We foresee a fruitful next few years."

Sidhu said companies and consumers are slowly beginning to relax their pocketbooks.

"People who never lost their jobs but were afraid that they might, they're essentially like the gophers poking their heads out of the ground and checking the wind and deciding that it's OK to come out," Sidhu said.

What about the high unemployment?

"The people who are traveling now in growing numbers aren't the unemployed, and as high as the unemployment rate is, remember that it's higher here than elsewhere, and unemployment in the rest of the country is coming down," she said.

San Pedro Bay growth

Despite the dismal job outlook, communities around San Pedro Bay are expected to see better-than-average employment opportunities with continued growth through the ports, more tourism and increased manufacturing.

While two-way trade is forecast to slow in the second half of the year and through 2012 after a record-breaking 2010, strong export growth, buoyed by rising Asian economies, should alleviate losses in government-sector work, the forecast says.

Those government-sector losses include jobs at area school districts, which have issued pink slips in recent months to more than 1,400 teachers, counselors and librarians, among others.

The continued boom at the ports of Long Beach and Los Angeles should spur further employment locally in trucking, rail, shipping, logistics and high-tech manufacturing tied to global trade, Sidhu said.

Long Beach is home to an estimated 400 manufacturers, from mega-corporation Boeing to small family-owned aerospace parts builders, and is positioned to benefit from Asia's rise, the report says.

China, the area's largest trading partner, is expected to enjoy gross domestic product growth of 9.6 percent in 2011 and 9.5 percent in 2012.

Other leading Asian economies, minus Japan, are forecast for similar growth.

Trade through the Los Angeles Customs District, which includes the twin ports and Los Angeles International Airport, is forecast to handle $370 billion in trade this year, up from $347 billion in 2010 and $283 billion in 2009.

"Activity at the ports of Los Angeles and Long Beach returned to form in 2010, providing a boost to the region's many logistics and trade-related firms," Sidhu wrote in the report.

In the first five months of 2011, trade at the Port of Los Angeles increased by 15.9 percent for imports and 32.9 percent for exports from the same period in the previous year. At the Port of Long Beach, imports increased by 16.8 percent and exports rose by 9.2 percent.

If the prediction holds, 2011 will be the best year for global trade in terms of total value for the Los Angeles region.

"The cities around San Pedro Bay like Long Beach, Lakewood, San Pedro, Wilmington ... these areas are heavily dependent on port trade and manufacturing," Sidhu said. "While there hasn't been much great news going on in manufacturing in terms of employment, the area is still producing a lot of high-tech products and parts that can't easily be outsourced.

"We're talking aerospace, computer parts, petroleum products. Products that require a high level of education and skill. That's what will remain in the long run."

Gateway Cities suffered

Still, the so-called Gateway Cities that follow the Long Beach (710) Freeway out of the ports and into East Los Angeles have suffered severely since the global crash of 2008.

Employment in these cities, which include Paramount, Compton, Lynwood, South Gate, Long Beach, Carson, Downey and others, have lost an estimated 67,500 jobs since 2007, the report noted.

Joblessness in many of these communities has hovered above 15 percent for more than two years. Compton, for example, has an estimated 20 percent unemployment rate as of May, while South Gate's is 15.1 percent.

Long Beach has a 13 percent jobless rate, down from the modern record of 14.7 percent in July of 2009.

"We'll see moderate job growth, the best prospects being trade, tourism, high-tech industry and entertainment," Sidhu said. "But unemployment is expected to remain above 12 percent in Los Angeles County going into 2012 and will probably not reach below 10 percent until 2014."

Sidhu said recovery from the recession, the deepest and longest since the Great Depression, will take years.

"Because the recession was so deep and the upturn is just beginning, 2011 doesn't feel especially good despite improvements in most industries," Sidhu said. "However, the state's economy is moving in the right direction."

Read the full report at www.laedc.org.

"AEG touts tax benefit of downtown L.A. stadium"- Daily News

Los Angeles Works — Wed, 20 Jul 2011 12:00:AM PST

AEG touts tax benefit of downtown L.A. stadium

By Rick Orlov, Staff Writer

Posted: 07/20/2011 09:00:14 PM PDT

A proposed $1 billion athletic stadium and Convention Center expansion would generate $41 million annually in tax revenue and millions more for the tourism industry, according to two reports released Wednesday by the project's developer.

The studies commissioned by Anschutz Entertainment Group claim the project would lure an additional 14 major conventions to Los Angeles every year, generating $187 million more for hotels.

It also would generate $22 million in tax revenue for the city and about $19 million for state, county, Los Angeles Unified and the Metropolitan Transportation Authority.

"These independent studies further indicate the tremendous economic impact that the modernized Convention Center and Farmers Field project will have on revenues for the city, county and state," AEG spokesman Michael Roth said.

AEG's proposal calls for relocating the West Hall of the Convention Center and using the site for a 74,000-seat football stadium - with naming rights sold to Farmers Insurance.

The economic reports were prepared by Metropolitan Research and Economics and PKF Consulting.

David Carter, a professor of sports business and marketing at the University of Southern California, said such reports need to be reviewed with a critical eye.

"Studies like this are one part science and one part art," Carter said. "Detractors will have their own studies where they take down the projections.

"The truth is probably somewhere in between. The people doing these studies need to make assumptions, which are not necessarily wrong."

The reports were released as city officials began to lay down their demands for inclusion in a memorandum of understanding that is in the works.

Chief Legislative Analyst Gerry Miller, a leader on the city's negotiating team with AEG, said the studies will have no impact talks with the developer.

"We are pushing to have our MOU out by next Monday, and we will be conducting our own economic studies in connection with the development," Miller said.

The City Council's Ad Hoc Committee on the Downtown Stadium and Events Center has two meetings planned next week to examine the issue. The City Council is scheduled to devote its July 29 meeting to the proposal.

Fueling the sense of urgency is a July 31 deadline set by AEG to have the city's commitment to proceed. However, officials caution the MOU is only the first step, and that many other issues will have to be resolved over the coming months.

Councilwoman Jan Perry, who chairs the ad hoc committee, said an environmental impact report will address some concerns, but she also wants details on transportation, infrastructure and job training.

Critics have also expressed concern about the repayment of nearly $300 million in bonds, which AEG wants the city to issue in order to fund the relocation of the West Hall. The developer has said it will repay the debt, vowing that taxpayers won't get stuck with the bill.

"A lot of this will be dealt with in the MOU, which is an outline of what we want from AEG and what they expect from the city," Perry said. "Many of the other issues, like traffic mitigations and the impacts on the infrastructure, will be dealt with in the environmental review."

Council President Eric Garcetti sent a letter to Miller and City Administrative Officer Miguel Santana outlining his priorities for the MOU and any subsequent agreement.

"Before any proposal is approved, Angelenos deserve to know: If they build it, what will come in terms of economic benefits," Garcetti said.

"We must ensure that taxpayers are protected 100 percent, both in terms of the city's budget and in terms of Angelenos' quality of life."

Also on Wednesday, the Associated Press reported that the stadium and event center project is needed by AEG as a boost to its efforts to sell condominiums at the Ritz-Carlton.

The hotel includes 224 condominiums - completed in 2010 at the depths of the economic crisis. The AP said that as of this week, grant deeds had been issued for only 32 of the units, two of which are owned by AEG and AEG President Tim Leiweke.

AEG spokesman Michael Roth said a 33rd condominium was sold this week and that part of the problem with the sales was the timing.

"It was a very hard time to be selling these," Roth said. "I think everyone understands the market conditions."

The AP said there were also disputes over $7.4 million in unpaid bills to contractors.

"We are working that out," Roth said. "In a project this size, more than $1 billion, the amounts we are talking about are expected and you would have in any project."

Construction of the hotel, included as a promise to the city as part of the LA Live package, presented difficulties from the start for AEG in trying to find a partner. There were several different deals announced and abandoned before AEG took it on itself.

"On Location: Carmageddon, schmarmageddon — local filming activity surged last week in the L.A. area"- LA Times

Los Angeles Works — Tue, 19 Jul 2011 12:00:AM PST

On Location: Carmageddon, schmarmageddon — local filming activity surged last week in the L.A. area

July 19, 2011 | 3:16 pm

Even with the logistical concerns surrounding last weekend's closure of the 405 Freeway, overall local production around the Los Angeles area increased 14% last week compared with the same period a year ago, according to the latest numbers from FilmL.A. Inc.

The agency had issued an alert weeks earlier that permits near the construction would be treated case -by case. With the hoopla surrounding "Carmageddon," most production activity during that weekend was clustered in the San Fernando Valley and downtown L.A.

Feature film production continued to be strong, climbing 23% for the week ending July 17. There were 146 production days last week compared with 119 days for the same week last year. (One production day is defined as a single crew's permission to film at a single location in a 24-hour period.)

According to FilmL.A.'s statistics, feature film production in L.A. was up 8% for all of 2010 compared to 2009. Midway through this month, feature film production numbers are slightly ahead of 2010's pace.

Two feature films, the romantic comedy "He Loves Me," starring Deborah Ann Woll and Antonio Banderas, and "The Details," with Elizabeth Banks, Tobey Maguire, Laura Linney and Ray Liotta, began filming in the Los Angeles area last week.

This week, "Struck by Lightning," a comedy starring "Mad Men's" Christina Hendricks, is scheduled to shoot in the Winnetka area, and the movie "White Frog" is slated to film in Calabasas.

The number of production days for television shoots was also up, 272 days last week compared to 239 a year ago, a 14% increase. Production days for commercials increased 5% to 117 production days.

Speaking of Carmageddon, there was some talk of the empty stretch of the 405 being used for a shoot or film promotion. But officials from both FilmL.A. and Metro, the agency overseeing the I-405 Sepulveda Pass Improvements Project, said that for a variety of reasons, no shoots were done in conjunction with last weekend's closure.

"Teamwork Is Getting LAX Off the Ground"- LA Business Journal

Los Angeles Works — Mon, 18 Jul 2011 12:00:AM PST

Teamwork Is Getting LAX Off the Ground

OP-ED

By GARY L. TOEBBEN

Monday, July 18, 2011

The new Tom Bradley International Terminal was a source of pride for Los Angeles as we welcomed the world to the 1984 Olympics. That was 27 years ago – enough time for 1 billion passengers to fly in and out of Los Angeles International Airport. Time also extracted a major toll on LAX’s facilities, so did delays caused by lawsuits and a lack of commitment by elected officials. Some observers were convinced that the politics of Los Angeles would doom the airport to third-world status forever.

But thanks to a constant drumbeat by the business community, the leadership of Mayor Antonio Villaraigosa, the commitment of the Los Angeles World Airport board of commissioners, and the professional knowledge and persistence of LAWA Executive Director Gina Marie Lindsey, LAX is undergoing $4 billion worth of improvements, and is poised to regain its reputation for service and efficiency in aviation.

Villaraigosa’s leadership was key. He initiated a settlement of a lawsuit by neighbors that had been holding up progress for years. He appointed outstanding citizens to the airport board of commissioners and personally selected Lindsey as the candidate for her job. Then, he did something else that is hard for mayors to do, he allowed the talented team of people he had selected to go to work without interruption.

In Los Angeles, it is easy for politics to trump economics, but that has not been the case with the improvements under way. The economics were clear. LAX needed new gates to handle the next generation of airplanes that are taller and have a wider wingspan. The airport needed a new baggage-handling system to meet the new security requirements since 9/11. It also needed better restaurants and stores to accommodate travelers who were spending more time in the airport due to the need to arrive earlier. And as was obvious to all, the entire airport, from restrooms to elevators and hallways, needed a huge dose of tender, loving care.

Some of these improvements will be immediately obvious to passengers, but many others will not. As with any organization, it is often what is happening behind the scenes that makes everything work smoothly.

The $4 billion in improvements will not complete the job, but it is a great start. Furthermore, this progress should inspire confidence in the airport board and Lindsey as they tackle other challenging goals like bringing rail service to the airport and creating a north runway configuration that is safe and efficient for the next generation of aircraft that will be flying passengers around the world.

LAX should be the heartbeat of the Southern California economy. It should symbolize the dynamics of our economy and be a beacon for visitors from around the world. Join the Los Angeles Area Chamber of Commerce in saying thank you to the mayor, the airport board, and Lindsey and her staff for tackling these important improvements that our community had been unable to address for too long.

Gary L. Toebben is president and chief executive of the Los Angeles Area Chamber of Commerce.

"Los Angeles Board of Airport Commissioners Approve $40-Million for Baggage Screening System at Terminals 7 and 8 at Lax"- eTravel Blackboard

Los Angeles Works — Fri, 15 Jul 2011 12:00:AM PST

Los Angeles Board of Airport Commissioners Approve $40-Million for Baggage Screening System at Terminals 7 and 8 at Lax

Friday, 15 July 2011

Los Angeles Board of Airport Commissioners recently approved a $40-million Reimbursement Agreement with United Airlines, Inc., for design and construction costs associated with an inline Checked Baggage Inspection System (CBIS) Project in Terminals 7 and 8 at Los Angeles International Airport (LAX).

The project will improve and automate security screening of checked baggage and will make traveling through Terminals 7 and 8 safer, faster and more convenient.

The agreement allows for transfer of Transportation Security Administration (TSA) funds through Los Angeles World Airports (LAWA) to United for approved costs associated with the design and construction of the system. This action follows a 2003 Memorandum of Agreement, in which TSA committed to reimburse LAWA up to 75 percent of costs related to inline CBIS projects at LAX and LA/Ontario International Airport.

“This is a big step forward in the modernization of the airport because we are providing much needed upgrades to the level of service and convenience for our domestic travelers,” said LAWA Executive Director Gina Marie Lindsey.

"Two Valley malls to go solar, generate hours of electricity"- Daily News

Los Angeles Works — Thu, 14 Jul 2011 12:00:AM PST

Two Valley malls to go solar, generate hours of electricity

By Gregory J. Wilcox, Staff Writer

Posted: 07/14/2011 09:38:39 PM PDT

Updated: 07/14/2011 10:16:57 PM PDT

The Westfield Group is spending $6.6 million to install solar panels at its malls in Sherman Oaks and Canoga Park - the company's largest renewable energy investment in the U.S., officials said Thursday.

The installation is well under way at Westfield Fashion Square and will begin next week at Westfield Topanga, said Larry D. Green, Westfield's senior vice president for U.S. development.

"We are adding more than 4 acres of solar panels to the rooftops of Topanga and Fashion Square," he said. "Conservation and sustainability are among our company's priorities."

The mall at Topanga Canyon and Victory boulevards will get 3,000 solar panels that will generate an estimated 1million kilowatt hours of electricity. The system at Fashion Square consists of 2,900 panels that will produce 1.4 million kilowatt hours of power.

When completed this fall, the systems will supply power to the malls' common areas, generating enough electricity to supply the equivalent of 200 homes per year.

Green said similar systems will be installed at Westfield Century City and at Westfield Village at Topanga, which is still in the planning stages.

Councilman Dennis Zine, a proponent of solar energy, lauded Westfield for its effort.

"This is a company that's helping the environment and investing in the region," Zine said. "There will be less power (being used) because of sustainable energy here and in Sherman Oaks."

Westfield is buying the system from from Martifer Solar of Los Angeles.

Zeb Wallace, the company's utility project developer, said the solar systems will create 37 construction jobs and about half that many permanent positions.

"The returns for this kind of investment are many and long-lasting," he said.

"Supercharge the Export Potential of Our Major Cities"- The Atlantic

Los Angeles Works — Wed, 13 Jul 2011 12:00:AM PST

Supercharge the Export Potential of Our Major Cities

By Bruce Katz and James S. Rubin

What's the single best idea to jumpstart job creation today?

With domestic demand crippled, the U.S. needs to reorient our economy to take advantage of rising global demand. Together, Brazil, India and China (the BICs) accounted for about a fifth of the global GDP in 2009, surpassing the United States for the first time. By 2016, the BIC share will grow to more than 27 percent.

U.S. goods and services can meet the demand coming from these and other rising economies. But we have work to do to restructure our economy. In 2010, exports made up only 13 percent of the GDP of the U.S., compared to 46 percent in Germany, 30 percent in China and Canada, and higher levels in India, the UK, and the EU.

As Brookings' Export Nation report showed last year, cities and metropolitan areas will lead the internationalization of the U.S. economy.

Our nation's top 100 metros -- home to two-thirds of our population and producing three-quarters of our GDP -- dominate our trade in goods and services. Given their edge in sectors like chemicals, computers and consulting, they are also on the front lines of commerce with China, Brazil and India.

The nation's four largest exporting metros, New York, Los Angeles, Chicago and Houston, are supersized performers, exporting more than $50 billion apiece in 2008. Other major metros (Dallas, San Francisco, Detroit) are also global players, exporting more than $26 billion apiece that year. In ten smaller and medium sized metros (Wichita, Portland, and Youngstown), exports contribute more than 15 percent of gross metropolitan product.

Jobs and exports go hand in hand. The Export Nation report found that 5,800 jobs are associated with every $1 billion in exports for the average metro.

To grow exports, the Obama administration has expanded state export promotion programs, empowered the Export-Import Bank, and boosted credit and technical assistance for globally-minded small businesses.

But more must be done to ensure those resources reach businesses in metro areas and effectively connect them to global customers.

The best way to create jobs is for cities to concentrate on overseas buyers.

The federal government should set a strong national platform for exports, starting with the immediate ratification of free trade agreements with Korea, Panama and Colombia.

Metropolitan areas, for their part, should radically shift their economic development strategies towards exports, building on their distinctive advantages in the global economy. Practical steps could include business-to-business mentoring on how to operate in foreign markets, one-stop centers that rationalize the dizzying array of finance, legal, and promotion resources for firms, focused exchanges with direct trading partners in rising nations (Bangalore and Silicon Valley being the new iconic example), customized skills training to boost the supply of manufacturing workers and targeted infrastructure investments to ease the movement of freight and foreign business travel.

America's metros still make the goods and provide the services the rest of the world wants. To date, they have rarely leveraged this potential, instead subsidizing unnecessary business relocations and stadia building. Growing metropolitan exports is a way to create jobs in the near term and retool our economy for the long haul.

"Solar panel rebate program may relaunch in L.A."- LA Times

Los Angeles Works — Tue, 12 Jul 2011 12:00:AM PST

Solar panel rebate program may relaunch in L.A.

July 12, 2011 | 8:47 pm

The Los Angeles Department of Water and Power, the nation's largest municipal utility, will hold public workshops this week in an effort to relaunch its troubled solar panel incentive program.

In April, the city shut down the program after it was overwhelmed with applications and ran out of money. The DWP had budgeted $30 million for the program, which offers rebates to businesses and residents to install rooftop solar panels to generate electricity. But about $112 million in rebate requests poured in from homeowners keen to cut their power bills and help the environment.

Now the utility proposes to restart the program in late August or September, but with stingier rebates. Officials are also debating whether to compensate homeowners and businesses for generating more electricity than they consume -- a program known as a feed-in tariff.

Feed-in tariffs have successfully spurred development of solar energy in Germany, Spain and other European countries. In California, a limited feed-in tariff is used by state-regulated investor-owned utilities, such as Southern California Edison, but not by city-controlled utilities, such as the DWP.

Under the DWP's new plan, the $30-million annual budget would use future revenue to cover the immediate costs of the rebates for some 1,500 applications. To stretch the funds through 2016, the 2007 rate of $3.24 for every watt installed was cut to $2.20 in 2011. It is expected to be cut further, but the new rate has not been released.

The Los Angeles Business Council has been a strong advocate of rooftop solar, as have the Sierra Club's L.A. Beyond Coal campaign and Open Mar Vista. They say the solar program would not only provide clean energy but would also stimulate the economy through green jobs in construction, marketing, finance and maintenance. “For every megawatt that you create, it creates about 18 jobs, 11 direct and seven indirect,” said Mary Leslie, council president.

Leslie said the plan would create $500 million in local investment, and 900 high-paying jobs each year for the next five years, all with a minimal impact on ratepayers. It also allows consumers and businesses to take advantage of federal tax rebates.

“One of the reasons solar incentive is so popular in Los Angeles is because it essentially pays your electric bill,” said Evan Gillespie, a Sierra Club official.

More than 40% of the DWP's electricity is imported from coal-fired power plants outside the state -- a major source of pollution, as well as planet-warming greenhouse gases.

The three-hour workshops will be held Thursday and Friday, twice each day, from 9 a.m. to noon and 2 to 5 p.m., at the LADWP headquarters building in downtown Los Angeles. Free parking is available in the Music Center’s underground structure. Attendees must RSVP here.

"Mayor Villaraigosa opens new office to streamline development permitting"- 89.3 KPCC

Los Angeles Works — Tue, 12 Jul 2011 12:00:AM PST

Mayor Villaraigosa opens new office to streamline development permitting

July 12, 2011 | KPCC wire services

Los Angeles Mayor Antonio Villaraigosa opened an office today aimed at streamlining the development permitting process. That process is currently handled by at least five different city departments.

The Development Services Case Management Office will include staffers from the planning, building and safety, engineering, transportation and water and power departments. It will assign a case manager to major projects to guide developers through the city permitting process.

Developers have long complained that the process of going to different departments is cumbersome, takes a long time and sometimes results in conflicting recommendations.

The new office is "a concrete example of how we're rethinking and reforming L.A.'s development process," Villaraigosa said. "We're working across departments to improve customer service, shorten review timelines and make it easier to do development in L.A. Today you can see results."

Case managers will help developers comply with entitlement, permitting, public improvement processes and the design of water and power infrastructure. They will also be charged with settling any disputes that arise in the permit application process.

Real estate developer Trammel Crow Co. has been test driving the new system. "The case management approach has transformed our experience of working with the city," Brad Cox, a Trammel Crow managing director, said. "You go to one place, have one point person and get answers quickly. We're moving forward faster thanks to this change."

"The Man With the Plan"- LA Downtown News

Los Angeles Works — Fri, 08 Jul 2011 12:00:AM PST

The Man With the Plan

City Planning Director Michael LoGrande is heading a department with 40% less staff than previous administrations. His motto for the department is “doing more with less.” Photo by Gary Leonard.

City Planning Director Michael LoGrande Talks About Development Reform, an NFL Stadium and Surviving Budget Chops

by Ryan Vaillancourt

Published: Friday, July 8, 2011 4:32 PM PDT

DOWNTOWN LOS ANGELES - Mayor Antonio Villaraigosa’s nomination of Michael LoGrande as Director of City Planning last July raised some eyebrows in local planning circles. For one, LoGrande had worked in the planning department for 15 years, but not as a planner — he was more of a code wizard. Before being tapped to head the department, he was the city’s chief zoning administrator.

He took over the department in a tough time. His budget is 60% of what his predecessors had to spend, yet he is charged with incorporating major policy initiatives including development reform and overhauling the city’s 65-year-old zoning code.

LoGrande, 39, recently sat down with Los Angeles Downtown News to discuss key planning projects on Downtown’s horizon, electronic signs, an NFL stadium and other issues.

Los Angeles Downtown News: You’ve adopted “Doing more with less” as the department’s motto. How much “less” does the department have today?

Michael LoGrande: Staffing-wise, we have about 40% less than we had allocated in previous budgets, and most of that’s due to the early retirement program but also with our general fund being continually reduced by the City Council through the budget process. The good news is this year in our budget the city council and the mayor were very strong advocates to maintain our funding for our six community plans that we’re currently updating. They also allowed us to keep a few vacancies to be able to take on some of these work programs like zoning code reform, like updating our sign ordinance.

Q: When people talk about the Planning Department these days, the word you hear a lot is “decimated.”

A: I would say that’s a little extreme. We got our hair cut a lot shorter than we asked the barber for. But we identified early on what our core functions are and we reorganized the department around those core services. We have six community plans that will be completed in 2012. We have a number of major policy initiatives like changing our parking standards. We have a number of transit oriented development plans going forward, so a lot of what we’re seeking to do is really the bread and butter of planning organizations.

Q: Which non-core services was the department spending too much time on?

A: There are a lot of council-initiated motions that are good policy ideas but they take a lot of work from the department and many times when we bring them forward there aren’t necessarily the votes to accomplish it or the funding to take it on. So we’ve been very clear in communicating what our focus is for the department, so that they’re in line with our work program and they understand the constraints against expanding it. When they expand it, we’re putting a price tag on it, saying, “Yes we can accomplish that but it’s going to take us ‘X’ amount of resources, or it’s going to have to happen after we complete these two work programs.”

Q: What advantages and disadvantages did you bring from your zoning administrator experience?

A: I definitely think there were a lot of advantages to having experience working within the department but also in Los Angeles’ city government system. We have such a complicated development process with our rules and regulations. We have a 1946 zoning code, so knowing how to navigate through that code helps to make sure that we get quality projects at the end of the day and not let the code dictate the outcome in terms of design. Having that knowledge and experience helps make sure that we have good plans that actually push the envelope toward the types of projects we want in Los Angeles and also to make it more difficult for projects that we don’t want to see.

Coming from zoning, it’s about being able to navigate around those rules and regulations, but also understand them and be able to go in and mechanically change them and empower my staff to take on some of those ordinances that we have to bring to city council to actually change the way we do business in Los Angeles. It would have taken me five years otherwise to really get up to speed and understand the complexities of Los Angeles.

Q: As the ZA, did you ever get to a point where you lost faith in the document you were enforcing?

A: No. I don’t think we’ve lost faith in it. I think we’ve definitely come to the point where we’ve overhauled the engine a number of times and it’s time to get a new car. Maybe don’t use that quote because we’re getting away from the car in Los Angeles, right? But it’s time to kind of rethink just a piecemeal approach to updating the zoning code and really completely rewriting it. We’re working on getting support to take on a comprehensive rewrite of the 1946 code and are looking for funding to do that, but are also trying to figure out what it would take to actually take on a multi-year multi-million dollar effort like that. We’d be able to go to a more form-based code as opposed to a code based off exceptions. Currently everything that you want to do, we say: “Here’s what you can do and anything that requires a deviation, here’s the process for it.” So for projects that we want, we basically put in a lot of bureaucratic hurdles to come up with a good design rather than having the kind of projects that make neighborhoods, and having them be built in a by-right fashion.

Q: Development reform is a big topic right now. What gives you confidence that this time it won’t fail?

A: I think the main difference from prior efforts is this is really an implementation plan. It’s more like a strategic plan. It’s a guide for the city that will take us forward for a number of years with different milestones to accomplish. Many efforts before were kind of quick fixes, where the ribbon cutting happened before the hard work was done.

Q: Do you consider it your responsibility to make Los Angeles a more business-friendly city?

A: Yeah, I definitely do. It’s something the mayor has been very strong in advocating for with us, in trying to make sure we not only retain our existing businesses but grow our jobs base. I think we’ve also got a bad stigma. I think we do a good job in city government of providing good customer service. I think we have some of the sharpest talent working in our city, in our department especially. We have a lot of tools at our disposal to be able to help businesses find sites that meet their needs that have very little red tape, but those discussions have to take place. And a lot of that comes from department heads like myself echoing to our staff the importance, whether it’s a cupcake shop or an insurance company moving their headquarters to Los Angeles, that we’re being creative, that we’re utilizing our resources to get things accomplished and get answers to people so they can make business decisions and stay or move into Los Angeles.

Q: People are concerned these days with electronic signs and architectural lighting. Do you see these as important and effective tools of design and planning?

A: I definitely think sign districts need to be looked at in the context of a neighborhood district so you’re not doing them block by block or project by project. When we can start from scratch and look at the architecture and incorporate the signage into the architecture the outcome is a lot better.

But we need to be careful. There is a lot of new technology and that was one of the things we focused on with the Wilshire Grand [replacement] — making sure we understood the [lighting] technology from a planning perspective. Signage has become an integral part of how projects are financed and we have to understand that and accept that. The key is making sure that it’s done tastefully, that it actually adds to the architecture of the building.

Q: What are the key planning issues surrounding the proposed NFL stadium and events center?

A: One thing is to make sure that the stadium is friendly to pedestrians — that the people who live, work and play in Downtown have multiple ways to access the stadium, whether it’s on foot, by bike or by rail. We don’t just want to build the stadium for people who will be coming by car. The other key is the urban design, how it fits within Downtown and making sure that it’s something that’s going to be embraced by local businesses and doesn’t necessarily overshadow the investment we’ve already had in Downtown. Connecting it via streetscapes is going to be important.

Q: Any radical Downtown planning ideas?

A: One of the most exciting things coming to Downtown would be to make sure we have a transit oriented development plan for Downtown that really encourages development and takes advantage of the investment we have in the infrastructure of rail. We’re also currently doing a rewrite of a portion of the zoning code that handles multiple entitlement projects, which are most of your big projects, and actually looking at extending entitlements that have expired during the recent economy. I think that could really position us in Los Angeles when the market turns around to really see some of those projects we’ve all talked about and worked on in the last couple of years.

"DWP set to heat up solar program"- Daily News

Los Angeles Works — Thu, 07 Jul 2011 12:00:AM PST

DWP set to heat up solar program

By Rick Orlov, Staff Writer

Posted: 07/07/2011 01:00:00 AM PDT

After suffering delays because of funding, the Department of Water and Power announced plans Wednesday to begin a new Solar Incentive Program along with a plan to allow customers to sell energy back to the utility.

"During public workshops, we heard overwhelming support for expanding local solar power," Senior Assistant General Manager Aram Benjamin told the board of Water and Power Commissioners. Also, he said there was wide support for the feed-in tariff program, where customers with excess energy sell it back to the DWP.

DWP General Manager Ron Nichols said the utility is looking at providing double the funding for three years to encourage solar energy use.

"The revised Solar Incentive Proposal is designed to incentivize as many customers as possible to go solar while also being prudent about the costs, which is funded by all customers who pay for this program through their rates," Nichols said.

A public hearing on the proposal will be held from 2 p.m. to 5 p.m. on July 14 at DWP headquarters, 111 N. Hope St.

The department put its initial solar incentive proposal on hold last April because of bigger-than-expected demand. The delay was to give the agency more time to review the program guidelines and seek additional funding.

With state legislation being approved this year to promote solar installations, the DWP is able to develop a metering program to reimburse customers who are generating excess energy.

DWP officials said they hope to have a specific proposal to present following the public hearing, which will be subject to review by its board and the City Council.

It will then develop a separate feed-in tariff proposal, allowing residents to collect tax credits by selling excess power to the utility.

"We want Los Angeles to have a successful Feed-In Tariff program that enhances the future for local solar expansion," Nichols said.

Jack Humphreville, a member of the neighborhood council-based advisory committee that reviews DWP issues, said he believes the utility is taking a reasoned approach.

"They are looking to make sure that these programs are sound from an engineering point of view and make sense," Humphreville said.

"Consultants Deliver Development Reform Plan"- LA Downtown News

Los Angeles Works — Thu, 07 Jul 2011 12:00:AM PST

Consultants Deliver Development Reform Plan

New Case Management Office to Open July 12

by Ryan Vaillancourt, Staff Writer

Published: Thursday, July 7, 2011 5:12 PM PDT

DOWNTOWN LOS ANGELES - KH-Woolpert, the consultant team that last year won a $600,000 contract to overhaul the city’s notoriously slow and expensive development process, has submitted its findings to the city.

The Department of Building and Safety and other city officials are reviewing and fine-tuning the plan, department General Manager Bud Ovrom said. But while the plan is not fully cemented, parts of it are already being implemented, Ovrom said.

On Tuesday, July 12, Mayor Antonio Villaraigosa is slated to unveil a cross-departmental case management office at Building and Safety charged with facilitating complex developments that, historically, have been tangled in a web of conflicting codes and guidelines.

The new office, on the 10th floor at 201 N. Figueroa St., is called Development Services Case Management. KH-Woolpert’s plan calls for an array of immediate systemic changes as well as several long-term initiatives, among them a new web-based platform to track cases.

The plan also urges the city to overhaul its 1946 zoning code; the Planning Department has estimated that such an effort would cost about $4 million.

"Obama administration boosts aid for unemployed homeowners"- LA Times

Los Angeles Works — Thu, 07 Jul 2011 12:00:AM PST

Obama administration boosts aid for unemployed homeowners

Unemployed homeowners with government-insured mortgages will be allowed to miss a year of payments while they try to find a job.

By Jim Puzzanghera, Los Angeles Times

5:38 PM PDT, July 7, 2011

Reporting from Washington

An open gate of a foreclosed home offered for sale is shown May 31 in Los Angeles. The Obama administration is taking new steps to try to stem the tide of foreclosures, which continue to drive down real estate prices. (Damian Dovarganes, Associated Press / July 8, 2011)

Still scrambling to stabilize the struggling housing market, the Obama administration will allow some unemployed homeowners to miss a year of mortgage payments without threat of foreclosure while they try to find a new job.

The expanded assistance — triple the current limit of four months for those with government-insured mortgages — could help "tens of thousands" of people keep their homes, Housing and Urban Development Secretary Shaun Donovan said.

"Helping struggling borrowers avoid default is not only good for those borrowers, it is good for the economy," he said.

But hoping to avoid high expectations that have accompanied other administration foreclosure efforts, Donovan cautioned Thursday that the move wasn't a "silver bullet."

The new requirement for so-called forbearance comes on top of several initiatives the White House has launched since 2009 to try to stem the tide of foreclosures, which continue to drive down real estate prices.

President Obama admitted this week that those efforts — such as the much-maligned Home Affordable Modification Program, which offered incentives to banks to lower monthly payments for troubled borrowers — haven't tamed the problem.

"We've had to revamp our housing program several times to try to help people stay in their homes and try to start lifting home values up," Obama said. "That's probably been the area that's been most stubborn to us trying to solve the problem."

Housing advocates and some lawmakers have pushed the administration to increase the amount of time unemployed homeowners would be allowed to skip payments. The White House agreed partly because 60% of people without jobs have been unemployed for more than three months, Donovan said.

Separately, the Federal Reserve told Congress on Thursday that it wanted uniform standards for how mortgage servicers handle modifications, foreclosures and other issues. The Fed, along with HUD and other federal regulators, is working on such standards.

In addition, regulators are working with attorneys general from all 50 states on a broad settlement with major banks of investigations into botched foreclosure paperwork.

The administration's latest plan, unveiled Thursday, affects a small group of homeowners — about 3,500 borrowers a month who default on loans backed by the Federal Housing Administration and a total of about 1 million people eligible for HAMP aid.

But Donovan said he hoped that the new requirements would be adopted voluntarily throughout the broader mortgage industry.

Under the plan, mortgage servicers for FHA-insured loans will be required to allow qualified homeowners to miss up to 12 months of payments as unemployed borrowers look for new jobs.

The administration also is making it easier for unemployed homeowners to qualify for the assistance, removing what it called some "upfront hurdles" involving screening for employment and payment history.

In addition, mortgage servicers participating in the administration's mortgage modification program will be required "whenever possible" to extend the minimum period that eligible unemployed homeowners can miss payments to 12 months.

The missed payments would be added to the mortgage balance and made up by the homeowner, though in some cases those debts could be forgiven by the lender, Donovan said.

But like the other government attempts to aid homeowners, the new effort has limitations. Only about 10% of some 50 million mortgage loans outstanding nationwide are backed by the FHA. And less than a quarter of the approximately 4.6 million homeowners who are behind on their mortgages qualify for the HAMP program.

Bert Ely, an independent banking consultant, said allowing unemployed homeowners to skip payments sounds good in theory but has problems that would make it difficult for the industry to adopt a 12-month standard.

"Unfortunately, a lot of times forbearance just postpones the problem," he said. "So you extend from four months to 12 months and things don't work out. Who eats the loss?"

But the People Improving Communities Through Organizing National Network, a coalition of faith-based community groups, said the administration's announcement Thursday was "yet another step toward breaking the link in America between losing your job and losing your home."

Rep. Barney Frank (D-Mass.) also cheered the move, saying many of his colleagues believed that the previous minimum "was not nearly enough time."

"I think the 12-month extension will help very much," he said.

Last year, the special inspector general for the Troubled Asset Relief Program, which funded the administration's mortgage modification initiative, urged that the minimum period for skipped payments be increased.

Wells Fargo Home Mortgage, one of the nation's largest mortgage servicers, said it already offered homeowners the ability to skip up to 12 months of payments "in some cases." From January 2009 to last April, the company has offered assistance to 173,000 customers who have lost their jobs, spokesman Tom Goyda said.

Because the administration hasn't released details of the changes in its programs, Wells Fargo would not comment specifically on them, he said.

"Auto industry jobs rebound"- Daily Breeze

Los Angeles Works — Wed, 06 Jul 2011 12:00:AM PST

Auto industry jobs rebound

By Dee-Ann Durbin The Associated Press

Posted: 07/06/2011 06:54:34 PM PDT

Updated: 07/06/2011 07:03:58 PM PDT

DETROIT - Volkswagen opened a plant in Tennessee last month with 2,000 workers. Honda is hiring 1,000 in Indiana to meet demand for its best-selling Civic. General Motors is looking for 2,500 in Detroit to build the Chevy Volt.

Two years after the end of the Great Recession, the auto industry is hiring again - and much faster than the rest of the economy. As an employer, it's growing faster than airplane manufacturers, shipbuilders, health care providers and the federal government.

The hiring spree is even more remarkable because memories of the U.S. auto industry's near-death experience are fresh. In 2009, General Motors and Chrysler both got government bailouts and entered bankruptcy, and auto sales hit a 30-year low.

In June of that year, about 623,000 people were employed by the auto industry in the United States, the fewest since the early 1980s. Now the figure is almost 700,000, a 12 percent increase.

Sales are back up, too, and automakers are hiring by the thousands to meet increased demand.

"The buzz is incredible around here about what opportunity we're going to get if we can build a great product," says Ben Edwards, who went to work for Volkswagen in Chattanooga, Tenn., last year and is now a team leader on an assembly line that installs tires and seats.

Edwards was working as a general contractor until the housing market dried up. He says the pay at Volkswagen is fair and the benefits are generous.

Besides hiring 2,000 people itself, Volkswagen figures the plant, where it will make its new Passat, will create 9,000 spin-off jobs in the region, including 500 at auto-supplier plants that are springing up nearby.

Automakers are hiring again because car sales are rising. Americans bought 10.4million cars and trucks in 2009 and 11.6million in 2010. This year, they're on track to buy 13million or more, and auto companies are adding shifts to meet the demand.

"Everybody got so lean and mean during the downturn that they're trying to rebuild staff," says Charles Chesbrough, a senior economist with IHS Automotive.

The auto industry's 12 percent increase in jobs compares with a 0.2 percent gain for the economy as a whole, excluding farming and adjusted for seasonal variation, since June 2009. The Labor Department reports Friday on

jobs gained or lost last month.

In a normal economic recovery, improvement in the housing market leads the way by creating construction jobs. But home prices haven't stopped falling, and the construction industry has shed

8 percent of its workers since June 2009 - 474,000 jobs in all.

The gains in the auto industry have been small by comparison. But they do create positive ripple effects for the economy. The Center for Automotive Research estimates that every new auto manufacturing job leads to nine other jobs.

"LAX hopes to dominate the Western skies once again"- LA Times

Los Angeles Works — Sat, 02 Jul 2011 12:00:AM PST

LAX hopes to dominate the Western skies once again

At least $4 billion is being spent on additions to the Bradley International Terminal, improvements to several domestic terminals and upgraded utilities and taxiways to handle the latest generation of super-sized jumbo jets.

By Dan Weikel, Los Angeles Times

4:24 PM PDT, July 2, 2011

Barring another terrorist attack or recession that disrupts air travel, Los Angeles International Airport — long ranked among the nation's worst aviation hubs — is on a path that could restore its reputation as the West Coast's dominant international gateway.

Modernization projects now underway mark the first major expansion of passenger facilities since the Tom Bradley International Terminal was built for the Summer Olympics 27 years ago.

Since then, LAX has steadily fallen behind the modernization efforts of other big-city airports. Aging terminals and a lack of amenities have undercut passenger satisfaction and the airport's share of overseas travelers, some of whom fly into San Francisco, which opened a stunning international terminal in 2000.

Now airport officials, including those beyond Los Angeles, say LAX's stature is on the rise. At least $4 billion is being spent on additions to the Bradley terminal, improvements to several domestic terminals and upgraded utilities and taxiways to handle the latest generation of super-sized jumbo jets.

"We want to do in three years what other airports have done in seven or eight," said Los Angeles airport chief Gina Marie Lindsey, who was hired four years ago to get languishing modernization efforts moving.

John L. Martin, the veteran airport director hailed for remodeling San Francisco's airport, says that "any competitive advantage we had in terms of facilities on the international side will be going away" with the Bradley West project, now being built. It is to house a grand hall filled with upscale restaurants, posh lounges and luxury boutiques.

The addition's massive steel skeleton is visible and will include new concourses, gates, 1 million additional square feet of floor space and an expanded customs area. It will eliminate the hassle that international travelers encounter when flights stop short of the Bradley terminal and passengers are bused to the immigration processing area.

Other pending projects include a giant passenger processing center and a new concourse west of the Bradley terminal that would add more gates. It would be linked to the main terminal area by a steel-and-glass sky bridge, and an elevated tram would whisk passengers to other remodeled terminals. A new station would link the entire airport to the growing regional rail network.

Lindsey acknowledged that the ambitious modernization schedule will rely on meeting upbeat passenger projections and avoiding another economic downturn, a terrorist attack on the nation or hikes in fuel costs and ticket prices.

"The other projects will depend on how much the airport grows," she said, "and how much we can pay down our debt."

Half a century ago, LAX was conceived as a futuristic, cutting-edge reflection of the jet age, a vision still projected at the airport by the historic Theme Building, which looks like a flying saucer suspended on curved concrete legs.

For decades, the airport that ushered in its first jetliner in 1959 prided itself on operating a no-frills facility that stressed low costs for airlines and the efficient movement of passengers.

In the terminals, travelers could buy little more than the basics: a newspaper, a cup of coffee, cafeteria fare and a preflight libation. The mantra was: "We are an airport, not a shopping mall."

The utilitarian philosophy served the airport well. Attracted by low costs and the emergence of Los Angeles as a huge market for air travel, foreign and domestic carriers steadily added service, fueling the region's economy.

But by the 1990s, the terminals were dated and falling into disrepair. Modernization schemes were proposed by Mayors Richard Riordan and James K. Hahn to greatly expand the airport's footprint and add new terminals.

Both plans met stiff opposition from residents and neighboring cities worried about traffic congestion, noise, pollution and the likelihood that homes and businesses would be demolished to make way for improvements.

As politicians and airport neighbors fought over how best to revitalize LAX, the terminals deteriorated further. Water mains broke, escalators failed, concrete fell from the legs of the Theme Building and passenger areas grew more crowded.

Officials realized too that the old gates could not accommodate the latest wide-bodied aircraft, including the giant Airbus A380 now in service.

Research showed that the worsening conditions contributed to passenger declines even before air travel was slammed by the terrorist attacks of Sept. 11, 2001. LAX lost about 12% of the airline seats on its weekly international departures from 2000 to 2006, while many other U.S. gateways posted gains.

The stakes were particularly high for the local economy. A 2006 study found that a single international flight traveling roundtrip daily from LAX generated $623 million a year in business activity for the region and supported 3,120 jobs.

The threat of a downward spiral sparked a new commitment — and a new approach — to reviving LAX under Mayor Antonio Villaraigosa.

Within months of his election, Villaraigosa settled a major lawsuit and compromised with neighbors so certain airport projects could proceed, as long as some projected passenger growth was pushed to other airports in the region. The deal limited the capacity to 78 million passengers a year, about 11 million fewer than Riordan had sought.

Aviation officials say LAX's development also has been hampered by a high turnover of airport directors. Over a 30-year period, eight leaders came and went, including interim chiefs and one who served twice. San Francisco by contrast, had just two in that time.

Villaraigosa put Lindsey in the top job, where she has remained for four years, longer than the combined tenure of the two directors who preceded her.

Lindsey got the Bradley West project moving, cleared the way for improvements to domestic terminals and helped to bring a more passenger-centric view to LAX planning. "We are looking at the most innovative things at sports venues, shopping malls and convention centers," she said. "We want to create an environment that is soothing, welcoming and alive."

To help finance the current renovations, the airport sold $2 billion in bonds. The debt will be paid with fees charged to airlines, revenue from concessions and charges added to the cost of tickets.

Officials hope passenger volumes will grow so the debt can be paid down and more money can be borrowed to keep improvements coming.

The latest five-year forecasts from a top industry analyst and the Federal Aviation Administration indicate that the number of passengers at LAX will increase from 59.1 million to between 62 million and 68 million by 2014.

But some FAA and LAX forecasts have been unreliable — wildly so — partly because of unforeseen events. LAX had been expected to grow over the last decade, but the number of passengers actually declined by 8.2 million.

Contributing to the downward pressure were the Sept. 11 attacks, the outbreak of a highly contagious illness in Asia, dramatically higher fuel prices in 2008 and the recession.

In 2010, LAX handled 15.9 million international passengers, a 5.5% increase over 2009, but 1.6 million below the peak in 2005. The growth rate was slower than San Francisco's.

In addition to uncertainties about future revenue related to passenger growth, LAX has to balance the pace of improvements with the rising costs it is imposing on airlines, industry analysts say.

If fees become too high, carriers, particularly discount airlines, might be discouraged from operating at LAX or adding flights there.

"At about $11 per enplaned passenger, LAX has had some of the lowest rates for years. Now they are talking about $20 per passenger or more," said Jack Keady, an airline industry consultant based in Playa del Rey. LAX officials had "better pay attention to their costs."

Despite the new modernization efforts, local business leaders remain concerned that LAX still lags behind its competitors, which also are looking to upgrade and compete for lucrative international travelers.

"There has been some progress, but we still have a 1984 airport competing in a 2011 world," said Russell Goldsmith, chief executive of City National Bank and chairman of a business coalition that views the improvement of LAX as vital to boosting local commerce.

Goldsmith says airport officials must move faster to remake domestic terminals, connect LAX to transit lines and further separate the two northern runways, a proposal that might improve the safety and efficiency of flight operations.

But the runway proposal is rekindling the political fires surrounding airport improvements. One watchdog group that helped sink earlier master plans, the Alliance for a Regional Solution to Airport Congestion, contends the proposal is unnecessary and will harm communities to the north of LAX.

The alliance recently made the north runways an issue in the race to represent the 36th Congressional District, which includes LAX. It obtained a pledge not to expand the airport from one of the two primary election winners, Los Angeles City Councilwoman Janice Hahn.

"Express Program Touted for Success in Speeding Restaurants and Hospitality"- Blogdowntown

Los Angeles Works — Thu, 30 Jun 2011 12:00:AM PST

Express Program Touted for Success in Speeding Restaurants and Hospitality

By Eric Richardson
Published: Thursday, June 30, 2011, at 08:00AM

Eric Richardson [Flickr]

Central City Association CEO Carol Schatz answers a question about the Restaurant & Hospitality Express program at its June 2010 launch.

DOWNTOWN LOS ANGELES — The city's year-old effort to cut in half the time it takes to open a restaurant was touted as a success on Wednesday as speakers urged the City Council to use the program as a model for cutting planning times in other sectors.

The Restaurant and Hospitality Express program was launched in June of 2010 after the Central City Association brought the city's Planning and Building and Safety departments together to hear horror stories from business owners who had navigated the 12 to 18 month process it took even experienced operators to open.

"Almost no restaurants were able to open on-time before this program was launched," Ray Chan of Building and Safety told the council's planning committee.

Over the last year, Chan said, 60 restaurants have opened via the new program, and more than one hundred are in the planning or construction process.

Several speakers told the committee that the program's success was also its biggest weakness. The influx of applications has left its few staff members swamped, and speakers asked that more staff be assigned to shepherding businesses through the planning process.

Councilmember Paul Koretz testified that he hoped to see the program expanded as a model for how permitting works throughout the city. "I'm hopeful that we can learn from the success of this program and use it as a prototype and paradigm for a program that helps all small businesses," he told the committee.

"Better Fit"- LA Business Journal

Los Angeles Works — Mon, 27 Jun 2011 12:00:AM PST

Better Fit

Free-trade pact tailor made for L.A. apparel firms?

By HEEJIN PARK

Monday, June 27, 2011

Korean-American Steve Lee and many others in the L.A. apparel industry have long manufactured much of their clothing in China, mostly with Chinese fabrics. But a big alteration may be coming to L.A.’s fashion world.

If a pending U.S. free-trade agreement with South Korea is ratified by both nations, Lee and some similar businesses may move their manufacturing to the United States or South Korea. And Lee, for one, could start using more Korean fabrics in his women’s clothing lines, which could lower costs.

That’s because the U.S.-Korea Free Trade Agreement, which the Obama administration is expected to send to Congress in the coming months, would give duty-free status to a significant percentage of apparel and textiles imported from Korea, which have average tariffs of 17 percent and 11 percent, respectively. The agreement also immediately would eliminate tariffs on most textile and apparel exports to Korea, which average 8.3 percent and 12 percent, respectively.

Lee, president at Esley, which has a showroom in the wholesale quarter of downtown L.A.’s Fashion District and a 10,000-square-foot design office and warehouse nearby, is expecting that the duty-free status for Korean fabrics will lower the price of textiles and make them more competitive with those from China, the No. 1 supplier of imported textiles to the United States. So Lee could lower the cost of making garments with Korean fabrics, which also tend to be higher quality.

“We’ll have the advantage of pricing on the fabric,” said Lee, whose tops, skirts and dresses retail for $40 to $60 at boutiques nationwide under the Esley brand. “So we’ll have the advantage of importing Korean fabric and making it here.”

Although L.A.’s apparel companies could be a big winner, there are other industries in Los Angeles County and the rest of the country that stand to benefit from the trade agreement.

The largest pact since the North American Free Trade Agreement, the free-trade agreement with Korea would eliminate tariffs on 95 percent of all U.S. consumer and industrial goods within three years and all other goods within five to 10 years of its signing. Some of the top products exported through the Los Angeles Customs District, which includes the ports of Los Angeles and Long Beach, and Los Angeles International Airport, stand to benefit. Among them are computers; semiconductor manufacturing equipment; medical equipment; airplane engines and parts; and agricultural goods, especially beef and cotton.

Export boost

Korea is L.A.’s largest trading partner behind China and Japan, with about $24.3 billion in imports and exports last year through the L.A. Customs District. That’s about 7 percent of the total value in imports and exports that came through the district last year.

The free-trade agreement could boost U.S. exports by $10 billion to $12 billion annually, and about $3.3 billion of that is expected to pass through the district, according to the Los Angeles County Economic Development Corp.

“We will definitely be the main beneficiary of the free-trade agreement as far as increased trade flows, and as far as volume and dollar values,” said Ferdinando Guerra, associate economist at the Economic Development Corp. “We are the No. 1 customs district with Korea.”

The greater L.A. area is home to one of the largest ethnic Korean populations outside of Korea, with an estimated 450,000 Korean-Americans, according to L.A.’s Consul General of Korea. As such, the L.A. area stands to benefit from the free-trade agreement as the local Korean business community is expected to increase its trading activity with companies in Korea.

“It would mainly be the existing companies here and community here that would lead those efforts,” Guerra said.

The Korea Trade Investment Promotion Agency, a non-profit governmental agency of Korea that supports U.S. companies wanting to do business there, recently set up a help desk to provide local business owners with information on the proposed agreement in hopes that it will promote trade between local businesses and their Korean counterparts. The agency, on Wilshire Boulevard just west of Koreatown, has also been staging seminars on the trade agreement, providing information on investment and trade opportunities in Korea.

“A lot of people are paying attention to the agreement,” said Hanna Park, an investment liaison and external affairs officer at the trade agency, “not only Korean-Americans, but business owners in Los Angeles who are thinking about doing business in Korea or Asia.”

L.A.’s apparel industry, which employs more than 74,000, has strong ties to Korea. Many clothing companies owned by Korean-Americans and their children are in Los Angeles. Korean-Americans and community leaders have already started talking with members of the Korean government about the use of Korean textiles and manufacturing in anticipation of the agreement, which is part of a package of proposed free-trade pacts, including ones with Panama and Colombia.

A key factor in the agreement for the apparel industry is the elimination of tariffs on fabric imports.

“Korea, to this point, has been very expensive because of duties,” said Brian Weitman, chief executive at Fashion District textile supplier STC-QST and president of the Textile Association of Los Angeles. “I would definitely change my sourcing strategies to start at least considering more products from mills in Korea. They do make great products and if we didn’t have to deal with duties and tariffs, I think it would make them more competitively priced.”

As a result, L.A. manufacturers that choose to import Korean fabrics will likely increase their production here.

Korea is also expected to start building apparel manufacturing facilities there because of the trade agreement. As a result, apparel companies could begin making more garments in Korea with Korean or U.S. fabrics and export the goods duty free to the United States.

However, the expensive labor in Korea could still make it cost prohibitive to manufacture there. There is little apparel manufacturing in Korea because it is far cheaper in such countries as China, Vietnam and Cambodia.

“The free-trade agreement will open the door for more sourcing in Korea,” said Christopher Kim, president of the Korean Apparel Manufacturers Association, a 1,000-member organization headquartered in the Fashion District.

Desirable market

Meanwhile, there are also expectations among some local apparel companies that the duty-free status on U.S. clothing would make American merchandise more competitive in a fashion-conscious Korean market that values brand-name designer goods.

But there is a glitch in the proposed trade pact, according to Ilse Metchek, executive director at the California Fashion Association in downtown Los Angeles.

She said a “yarn-forward provision” means that only garments made from U.S. or Korean yarn are eligible for duty-free status. That means if an L.A. designer makes clothing with Chinese fabric, for example, the tariff waiver doesn’t apply.

But Demetrios Marantis, deputy United States trade representative, defended the yarn-forward requirement.

“The yarn-forward rule reflects a carefully balanced approach to how to maximize U.S. export opportunities while recognizing the sensitivities of our own textile sector,” Marantis said. “These agreements are all about maximizing job growth.”

Under terms of the agreement, apparel manufacturers that want to use fabric that isn’t made in the United States or Korea can submit a request for duty-free status on that basis.

Metchek, who represents textile and apparel companies statewide, is also concerned that the agreement doesn’t adequately address additional barriers that apparel companies face when exporting to Korea. For example, she said it’s often difficult to determine the retail price of clothes because it’s unclear how much Korean ports will charge to import goods.

There is a provision in the agreement designed to streamline the customs process to make it more predictable and cut the red tape, according to a representative from Marantis’ office.

However, it is unclear whether the agreement will make it easier for local apparel companies to export.

Vincent Iacopella, managing director at the Inglewood office of New York logistics company Janel Group who works with the local apparel and fashion accessories industry, has been tracking the proposal for the Korean trade pact. He believes the agreement would benefit the majority of textile and apparel companies that export to Korea. However, that’s a concept, and the real-life application of the pact may present challenges.

“You really don’t know until you are in it,” Iacopella said.

However, he believes the Koreans would apply the terms of the agreement in good faith.

“There’s no reason to believe that the Koreans will put up nontariff barriers after the agreement has been signed,” he said.

Meanwhile, the relationship between L.A.’s apparel industry and Korean manufacturers is strengthening. Kim of Korean Apparel Manufacturers spent last week in Korea meeting with members of local governments and business leaders to look for opportunities for local apparel makers.

Kim’s trip followed an April visit to Los Angeles by Kim Moon-soo, the governor of Gyeonggi Province, one of Korea’s major manufacturing hubs. Moon-soo met with local textile companies and apparel makers, and celebrated the grand opening of the Gyeonggi Textile Center of Los Angeles, which was established in the Fashion District to facilitate business among local textile and apparel companies and their Korean counterparts.

As Korea becomes a larger player in L.A.’s apparel industry, Lee of Esley sees benefits beyond the duty-free status that would be granted by the free-trade agreement.

“There are communication advantages,” Lee, a Korean-American, said. “If I say to a Chinese manufacturer make it rose pink or baby pink, they make it hot pink. But I can discuss it with Korean partners and one word says it all.”

"Keeping the Subway on Track"- LA Business Journal

Los Angeles Works — Mon, 27 Jun 2011 12:00:AM PST

Keeping the Subway on Track

OP-ED: L.A. business interests need to put the brakes on Beverly Hills activists’ efforts to delay the Purple Line.

By CHRISTOPHER HILL

Monday, June 27, 2011

As the evaluation and analysis of the proposed Purple Line (“Subway to the Sea”) extension continues, it is becoming increasingly clear that the Beverly Hills High School board, members of the Beverly Hills City Council and a select number of homeowners are intent on potentially delaying a project that is critical to the long-term economic health and growth of the L.A. regional area. In contrast, the greater business community outside of Century City has ignored or discounted this debate. As the deadline for the final Environmental Impact Report draws closer, it is increasingly imperative that the L.A. business community invest itself in understanding the potential consequences that may unfold in the event the Beverly Hills activists succeed in achieving their agenda.

The issue in question is the location of the Century City subway stop. Currently, two locations are being considered. The first is on Santa Monica Boulevard at the north end of Century City and abuts the Los Angeles Country Club. This is the preferred location for Beverly Hills, as the Metropolitan Transportation Authority would not need to tunnel underneath the Beverly Hills High School. The second location, on Constellation Avenue, is situated in the heart of Century City, but requires tunneling underneath the high school. While final data is still being gathered, common sense and decades of urban planning would suggest that the best location to achieve the greatest benefit is at the center of all the employment Century City offers, not one that loses almost half of the area, providing ridership to a golf course.

So far, most of the businesses outside of Century City do not appear to realize the vested interest they have in the success of the subway expansion. First among them is the downtown community. Imagine the convenience of traveling to Century City midday for a meeting or having friends or clients arrive in the evening to the Staples Center without having to drive.

By linking two of the biggest employment centers in the greater L.A. area, the business community will be able to better compete against other cities for new businesses to grow and expand. Study after study has indicated that mass transit is a critical component in building an environment that attracts and retains business. A successful mass transit system benefits the entire region, not just the immediate neighborhoods it serves.

Furthermore, completing the subway as soon as possible is important; traffic continues to increase and the gridlock on our streets is intolerable. While the subway is not the final solution, the sooner it is built, the more quickly it can impact our region. The full benefit will not be recognized immediately, but rather over the years that follow as people adopt and shift their daily habits to the new opportunities created. The pattern of development that has followed after the completion of the Red Line continues 10 years after it opened, but demonstrates powerfully the ability of a subway line to influence and shape a region’s growth.

It is clear that the core of the Beverly Hills objections are not based on either the best subway design or the best regional answer. The basis for their objections has changed several times as they have sought to find a case that is compelling to the greater community. In the process, they have invested significant funds and retained a small arsenal of consultants and lawyers to achieve their goals.

More legal obstacles

If Metro does choose the Constellation stop location, it is conceivable that the board will take the step of filing various legal objections to delay and challenge the findings. Some of their arguments, such as insinuating Metro is operating on behalf of the interests of developers, as well as the choice of some of the legal counsel they retained, suggest they are prepared to pursue this course of action.

Consider this for a moment: In the event of a legal showdown, hundreds of construction jobs will be lost, countless hours of productivity destroyed, and a major infrastructure project designed to help keep Los Angeles as a competitive job market will be delayed. And for what clear benefit?

Metro needs to conduct a full and thorough analysis of both locations and the legitimate concerns of the school board should be heard and taken into consideration. However, those concerns threaten to overshadow the bigger macro-economic issues that Los Angeles faces. Just as it is important for the members of the Beverly Hills community to take time to object, the greater business community of Los Angeles needs to make it clear that issues of mass transit are important to them and that regional planning should not be driven by the whims of a few localized politicians.

Christopher Hill is a real estate investor and consultant in Beverly Hills.

"LAWA Wins 15th Consecutive Diamond Award"- San Gabriel Valley Business Journal

Los Angeles Works — Fri, 24 Jun 2011 12:00:AM PST

LAWA Wins 15th Consecutive Diamond Award

June 24, 2011

Los Angeles World Airports (LAWA) recently announced that it has won its 15^th prestigious Rideshare Diamond Award in 13 years for having one of the best employee transportation programs in Southern California.

The award, in the Best Overall Rideshare Program category, was presented by the Los Angeles County Metropolitan Authority, the Ventura County Transportation Commission and the Orange County Transportation Authority.

The award acknowledges LAWA’s continuing commitment to reducing the number of single-occupancy trips associated with its operations, and development of many internal programs designed to reduce single-occupancy trips to, from and within its three airports: LAWA is the proprietary department of the City of Los Angeles that owns and operates Los Angeles International (LAX), LA/Ontario International (ONT) and Van Nuys (VNY) airports.

Highlights of LAWA’s multifaceted Rideshare Program involve subsidized vanpools, carpools, public-transit incentives and bicycling, as well as marketing and advocacy activities to recruit and retain the program’s participants.

“All LAWA employee commuter options help lessen the number of single-passenger vehicles on our roads, which contributes to improved air quality and reduced traffic congestion,” said LAWA Rideshare Manager Devon Deming. “These options help employees save significant money, especially given today’s high gasoline prices.”

Overall, approximately 25 percent of LAWA’s employees participate in its Rideshare Program, while the national average for employees commuting via alternative transportation is only about 10 percent.

LAWA has continuously been recognized for its Rideshare Program accomplishments. It has been honored with a Gold Medal in the U.S. Environmental Protection Agency’s “Best Workplace for Commuters Race to Excellence” and received a nation award from the Association for Commuter Transportation for “Outstanding Service in the Public Sector.” LAX is the only airport in the country to have received either of these awards.

"Port of Los Angeles Executive to Head International Trade Group"- LA Business Journal

Los Angeles Works — Wed, 22 Jun 2011 12:00:AM PST

Port of Los Angeles Executive to Head International Trade Group

By Deborah Crowe Wednesday, June 22, 2011

Geraldine Knatz, executive director of the Port of Los Angeles, has been elected president of the International Association of Ports and Harbors, the port announced Wednesday.

Knatz was unanimously chosen at the association’s biennial World Ports Conference last month in Busan, Korea. Her term runs until May 2013.

“Dr. Knatz is a dynamic leader with the skill, drive and experience to guide this organization and its members as they collaborate on key trade and environmental policy issues,” said IAPH Secretary General Susumu Naruse in a statement. “We look forward to the role she will play in promoting an organization that facilitates dialogue and collaboration between the ports and harbors that drive our world economy.”

The association’s priorities include working with member ports in 52 countries to adopt a menu of best practices for reducing greenhouse gases and curbing pollution from vessels and port-related operations. Other projects include developing international guidelines for fueling ships with liquefied natural gas.

"Airport commissioners approve $5B budget"- Daily Breeze

Los Angeles Works — Mon, 20 Jun 2011 12:00:AM PST

Airport commissioners approve $5B budget

By Art Marroquin Staff Writer

Posted: 06/20/2011 05:53:12 PM PDT

The Board of Airport Commissioners on Monday approved a $5 billion budget for Los Angeles World Airports for the fiscal year that begins July 1.

About half of LAWA's spending plan is set aside in reserve funds, but the airport agency's operating budget is expected to increase nearly 4 percent to $681.4 million to pay for day-to-day expenses at Los Angeles International Airport and its sister airports in Ontario, Van Nuys and Palmdale.

Most of the airport agency's operating budget will pay for salaries and benefits of more than 3,500 employees, with the rest going toward public safety, maintenance and environmental assessments.

The airport agency is also projecting an overall 3.8 percent increase in revenue to nearly $864.2 million over the next year as passenger traffic continues to increase at LAX.

The rising revenue is driven primarily by anticipated increased spending at eateries, shops and ground transportation throughout LAX, along with hikes in debt service recovered through landing fees and building rents, according to a LAWA report.

"Revenues are up and concessions are expected to march upwards while we try to manage our expenses," said Michael Collins, communications director of the office of the executive director for LAWA.

"The one area that's sort of out of the control of the department is the significant increase in salary adjustments, which is determined at the city level," Collins said. "But we're an organization that is managing the deck we've been handed as demand in passenger traffic grows."

Another $1.8 billion will be set aside for LAWA's capital budget to pay for a series of airfield and terminal improvements, along with equipment and vehicles.

On its own, LAX's operating costs during the 2011-12 fiscal year are expected to increase 5.1 percent to $596.9 million, while revenue is projected at nearly $774.9 million.

Elsewhere, LA/Ontario International Airport will run on a $65.5 million budget over the next year, a 2.8 percent cut from last year. Van Nuys Airport will be allocated $15.2 million, an 8 percent cut in operations.

Even though it does not offer any commercial flights, Palmdale Regional Airport will see a 12 percent spending increase in operating expenses to $4.8 million. The increase comes after the airport commission recently agreed to allow an outside company to handle maintenance at Palmdale airport rather than LAWA staffers.

"Time for a football stadium deal"- LA Times

Los Angeles Works — Sun, 19 Jun 2011 12:00:AM PST

Time for a football stadium deal

With jobs, tax revenue and the revitalization of a public asset on the line, the Los Angeles City Council should quit dawdling and allow the project to move forward.

June 19, 2011

Ever since the Los Angeles Raiders took their ball and went home to Oakland in the mid-1990s, Los Angeles has waged an intermittent and sometimes half-hearted campaign to lure the National Football League back to the city, by far the nation's largest without a football team. That effort has been marked by exuberance and disappointment, misdirection and considerable public indifference. As the City Council takes the measure of a new proposal to construct a football stadium downtown, it should recall that history in full — realizing that the city's future does not depend on whether the NFL plays here, but also appreciating that it should not let the most promising football deal it has ever received slip through its fingers because it was too slow or too political to reason effectively.

While safeguarding the city's interests, the council should, over the next few weeks, do what it often finds difficult: act decisively, in this case to approve a memorandum of understanding with AEG, the Denver-based sports and entertainment group, and allow the stadium to move forward.

What's in it for L.A.?

Although some residents have long been eager for football to return, the quest for a local team has failed to engage many others who care little about the sport and have plenty of options to entertain themselves. The conventional draw for a team — the desire for the prestige it would confer — has been notably absent here. But if Los Angeles doesn't need the prestige of a team, it does have other reasons to want this deal. AEG and its chief executive, Tim Leiweke, have revitalized the south end of downtown with their phenomenally successful Staples Center and adjoining LA Live. Once a collection of dilapidated buildings and parking lots, the area now is a hub of sports, entertainment, restaurants and hotels, as vibrant late at night as it is during the day. The stadium would build on that with an arena large enough to hold events as diverse as Pac 12 football, the Final Four, soccer and major concerts.

That means jobs — not just temporary construction jobs but also permanent positions at the stadium as well as at the stores, restaurants and hotels that this project is expected to attract. And with those jobs would come tax revenue for the city, county and schools, benefits that even the least passionate sports fan can appreciate.

There is an additional aspect of this project that makes it more attractive than other recent football proposals. It promises not only a team and the development that accompanies it, but the rescue of a stranded civic facility, the beleaguered Los Angeles Convention Center. As envisioned by AEG and Leiweke, the new stadium would sit on the land now occupied by the center's West Hall. That hall is aging and unworkable, disconnected from the newer, larger South Hall. For it to be functional and appealing, the city estimates that it needs $80 million worth of improvements. Instead, AEG proposes that the new stadium replace the West Hall and link up to the South Hall, creating a vast, contiguous convention space — enough to attract the very large conventions that are today out of Los Angeles' reach.

Then there is the tax revenue the project is expected to generate. Today, the city barely breaks even on the operations of the convention center and is saddled with more than $45 million of annual debt service on the South Hall. If the stadium is built, one consulting firm hired by AEG predicts that it would spur development of 3,064 new hotel rooms, which would nearly double the tax revenue currently generated by existing hotel rooms downtown. That analysis suggests an additional $26 million to $33 million in bed taxes for the city; it also estimates that the increase in convention business from major conventions alone would produce an additional $228 million in annual spending — with the state and local governments getting their share of that in taxes. If those estimates hold, then, the city would not only get a new convention center but would be able to pay off its existing one.

That by itself is reason to support this proposal.

What should the council look out for?

The proposed stadium turns on a paradox: If AEG manages only to run it as a football stadium — with 10 to 12 games a year, mostly on Sundays — the effect on traffic and parking downtown would barely be felt. But if AEG maximizes its potential by holding more events, and thus delivering more in jobs and taxes, then its negative effects would escalate as well. In other words, the more successful the facility is, the more it may inconvenience residents. The council should recognize that conundrum and insist on the rigorous analysis that will flesh out the implications of the project.

Where it gets even more complicated is in AEG's plans for boxing or wrestling or the Final Four. Those events and others like them take place at all hours and would put real stress on the area's already groaning road network. Recognizing that, AEG has grand dreams of bolstering the public transportation options around LA Live and of hosting the first Super Bowl in history at which most fans arrive on foot, either from nearby hotels or from train stations or shuttles. It's the council's duty to see that those plans are not just selling tools but real proposals cemented in the ultimate deal, with AEG bearing its share of the responsibility for planning and funding them.

AEG is also seeking protection from the California Environmental Quality Act, which allows those affected by projects — including, in some cases, competitors — to file lawsuits blocking them. AEG is hardly the only entity to protest some of CEQA's more permissive litigation rules, and a wholesale review of the act is not only in order but in fact underway in Sacramento. If those negotiations result in constructive CEQA reform that helps AEG, so much the better. That said, AEG does not deserve its own environmental law. It should, as it has promised, complete an environmental impact report for the project, and neither the city nor state should exempt it from the rules that apply to others.

Finally and most important, the city needs to be a vigilant guardian of the public purse. The estimates for this project appear to pencil out favorably for the city, but officials need to recall that the convention center once looked like a good investment too. As part of this deal, the city would get new taxes generated by the nearby hotels, stores and restaurants. But it would give up much of the property and sales taxes generated by the new stadium itself (the county and state would keep their share) and allow that money to pay off the bonds used to finance construction. City officials need to see that the government coffers are protected in return.

Initially, AEG proposed taking over the city land beneath the West Hall for $1 a year, on the theory that it was also taking on the responsibility of renovating that hall for the city's benefit. As negotiations have progressed, the two sides now are talking about AEG paying fair-market value for the land. That's appropriate.

The state of play

Earlier this month, Leiweke told Los Angeles Times reporter Sam Farmer that he was losing patience with the City Council, and indicated he was getting ready to walk away. "I'm OK if we get to July 31 and we don't get a deal done," he said. "We move on." Leiweke's apparent imposition of an ultimatum was unseemly — he's already seen by many to wield outsize influence at City Hall — but his impatience is understandable. Los Angeles is an infamously difficult place to pull off a large project.

The council doesn't do anything fast. And, in this case, it's dealing with a project of considerable complexity and uncertainty. It should protect the environment, look for ways to make sure that traffic and parking problems are anticipated, and make AEG pay its share of a project that will reap significant returns. And it should do so quickly.

The construction of a football stadium — or the failure to build it — will not alter the essence of Los Angeles. What AEG has built downtown is no more an expression of Los Angeles than the company's nearly identical KC Live is of Kansas City. These are centers of commerce and entertainment, not culture. Indeed, they come at some cost to culture, as a new stadium will draw business from both the Los Angeles Coliseum and Pasadena's Rose Bowl, authentic monuments to the region's history.

But that history also includes a healthy appreciation for the new, an embrace of commerce and even glitz. A new stadium may create traffic snarls, but so do Dodger Stadium and the Los Angeles Times Festival of Books. Residents complain but grudgingly accept that the area's most appealing attractions come with caveats. And in return, this deal promises jobs, tax revenue and the revitalization of a city asset.

The recent images of the mayor and council members rushing to have their pictures taken with Leiweke did not inspire confidence that the city would strike a hard bargain. Since then, however, the negotiations have sweetened and clarified the benefits. Now, it's incumbent on the city's leadership to quit dawdling, focus on their obligation to the public, and cut the deal.

"Greg Wilcox: A new emphasis on saving small businesses"- Daily News

Los Angeles Works — Sun, 19 Jun 2011 12:00:AM PST

Greg Wilcox: A new emphasis on saving small businesses

By Gregory J. Wilcox, Staff Writer

Posted: 06/19/2011 01:00:00 AM PDT

A year ago, economic development officials started taking the pulse of the city's small businesses.

It was weak then and remains so today.

That's the consensus of an outreach program undertaken by the Valley Economic Alliance, which conducted 1,500 phone interviews and more than 400 one-on-one sessions with small-business owners since last July.

"We're getting almost a universal message that their business is off by one-third, so there is a cash-flow issue," said Ron L. Wood, the alliance's president and CEO. "Part of that problem is access to capital."

The alliance's work is part of a city-wide program coordinated by the Los Angeles County Economic Development Corp. and funded by a $1.1 million grant from the city's Workforce Investment Board.

The program is focused on companies that are facing layoffs, going out of business or moving out of the city.

"We're (identifying) the needs of small businesses, especially those that might be struggling, to make sure they are aware of all of the loans out there to assist them," Wood said.

For example, the nonprofit Valley Economic Development Center has a number of loan programs tailored to small businesses.

"We want to get banks to redo existing loans without putting in any new money but extending the term," Wood said.

It sound simple in theory, so how's it going?

"Not good," Wood said. "The banks are being overly cautious."

Wood said it is critical for the alliance to connect with the Valley's small-business base.

That's especially the case with last week's news that Medtronic Diabetes in Northridge is eliminating 464 jobs, including about 300 in customer service.

Getting a single new company to bring that many jobs here is probably unlikely, give the high costs and red tape that come with doing business, Wood said.

"We have a much better chance of (creating jobs) by working with small businesses," Wood said.

This outreach effort will carry over into the next fiscal year, thanks to a $628,000 grant from the city, said Carrie Rogers, the LAEDC's vice president of business assistance and development.

Rogers said the outreach program helped 48 businesses and retained 3,200 jobs over the past year. The LAEDC and partners like the alliance are still working with 127 small businesses to save an additional 5,200 jobs, she said.

"It's a very good return on the investment," Rogers said of the work with small businesses. "It's not as sexy as attracting a big company, but it's where the nuts and bolts are."

"Development Reform Plan Nears Completion"- LA Downtown News

Los Angeles Works — Fri, 17 Jun 2011 12:00:AM PST

Development Reform Plan Nears Completion

Bud Ovrom, general manager of the city Department of Building and Safety, is touting a $600,000 plan that aims to make it easier for developers in Los Angeles to get projects off the ground. Photo by Gary Leonard.

Latest Effort Calls for Mix of Immediate and Long-Term Fixes

by Ryan Vaillancourt

Published: Friday, June 17, 2011 4:59 PM PDT

DOWNTOWN LOS ANGELES - Matt Karetz, Mayor Antonio Villaraigosa’s point person overseeing the city’s latest attempt to overhaul Los Angeles’ Byzantine development process, heard over and over in the last six months that the $600,000 plan needed a catchy name.

The nearly completed effort, however, never earned such a moniker. After six months of study, “development reform” was the heading for a nearly two-hour presentation for an audience of some 80 local land use professionals last Thursday.

“Some folks have argued: ‘Find a better name,’” Karetz said. “But we decided, let’s spend less time on a flashy name and more on the substance.”

Past efforts like “12 to 2,” after all, had snappy titles. They all failed to actually reduce the number of departments developers must deal with when trying to launch a project. Now the question local developers and land use lawyers are asking is: What makes this effort different?

The plan, compiled over the past six months by the firms KH Consulting and Woolpert at the behest of former First Deputy Mayor (and current 2013 mayoral candidate) Austin Beutner, is different because it’s not a study, officials say. Rather, they regard the effort, which was financed in part by $100,000 from the private sector, as a strategic plan with items they can take action on and implement right away.

Looking under the hood of the City Hall bureaucracy since January, the consulting firms found numerous problems, some of which have been well known for more than a decade. The zoning code, for example, hasn’t been comprehensively overhauled since 1946. The new plan calls for the city to take such an effort.

Past attempts at development reform, however, lacked the collective political will, and occasionally the financial resources, to work their way out of slideshows and three-ring binders and into practice. This time, in addition to the study, local organizations are taking an active role from the get-go.

“This is a new effort and we think this effort is going to be successful,” said Carol Schatz, president and CEO of the Central City Association, one of the loudest critics of the city’s development process and a co-sponsor of the presentation on June 16. “It’s much more practical. There are immediate steps.”

Institutional Change

The KH-Woolpert contract expires July 1. The meeting with industry leaders, one day after a presentation to the City Council’s Planning and Land Use Management Committee, amounted to a final attempt to gather feedback before finalizing the plan.

While the report is not complete, some of its recommendations are already being implemented. The Department of Building and Safety, the primary entity overseeing the study, has created a new cross-departmental case management office at the department’s 201 N. Figueroa St. headquarters. Due to be fully set up in the first week of July, the office has senior plan checkers from the departments of Planning, Building and Safety, Transportation, Water and Power and the Bureau of Engineering, said Bud Ovrom, general manager of Building and Safety.

The office was created to handle complex projects that run into roadblocks when staffers working the counters at various departments disagree with another department’s ruling or code interpretation. Those snafus often send applicants back and forth between departments on a maddening quest to get documents approved.

The case management office will handle those cases, and in instances when a conflict can’t be resolved, it will go up a newly established hierarchy to the general managers themselves.

“This is real, tangible action happening today,” Ovrom said.

The case management changes, Ovrom said, are essentially institutionalizing an existing but informal process. Currently, a developer facing an entitlement or permit roadblock has to arrange a meeting with several department heads at once. Under the new system, when an application meets a cross-department conflict, it will go up the new case management chain.

Many of the tenets of the strategic plan are forward looking — overhauling the zoning code is a major component, but according to Planning Department Director Michael LoGrande, such an effort would cost around $15 million. The KH-Woolpert plan also lays out a concept for improving the city’s technology for handling plans and permits, but that would carry another hefty price tag that’s not in the city’s budget.

At least not yet.

“We’re going to press to get that money out of the City Council,” Schatz said of the zoning code overhaul proposal. “They’ve got to do it.”

It will be a year at least before anyone can tell whether the plan results in meaningful change. After decades of false starts on development reform, some prefer to hold off before trusting that change will occur.

“Everything sounds good,” said Hamid Behdad, co-president of the Central City Development Group. “But we’ll have to wait and see what happens.”

"U.S. launches new drive to attract business investment"- Reuters

Los Angeles Works — Wed, 15 Jun 2011 12:00:AM PST

U.S. launches new drive to attract business investment

Wed, Jun 15 2011

By Doug Palmer

WASHINGTON (Reuters) - With the unemployment rate stubbornly above 9 percent, Commerce Secretary Gary Locke on Wednesday unveiled an initiative to encourage both U.S. and foreign companies to create more jobs in the United States.

Building on previous U.S. government efforts to attract foreign investment, the SelectUSA initiative will help U.S. states deal with federal regulations that may discourage an overseas company from investing in the United States or encourage a U.S. firm to look abroad, senior Commerce Department officials said.

"In recent years, we have been losing ground to our foreign competitors in attracting and retaining business investment and have seen U.S. jobs move overseas," Locke said.

"By refocusing government resources, SelectUSA can make government work better to strengthen the economy and create new jobs for American workers. Simply put, business investment in the U.S. means jobs for the American people and that is the Obama administration's number one goal."

Foreign companies poured about $130 billion into the United States in 2009 through mergers and acquisitions or the building of facilities. That represented about 12 percent of total global foreign direct investment, down from an average of 23.4 percent in the late 1990s, the Commerce Department said.

The United States still is the biggest recipient of business investment but other countries have worked to improve their competitive positions and ramped up their marketing and outreach efforts to help attract job-creating business investment, the department said.

President Barack Obama took note of the changed global landscape in an executive order on Wednesday establishing the SelectUSA initiative.

"In an era of global capital mobility, the United States faces increasing competition for retaining and attracting industries of the future and the jobs they create," Obama said. "My administration is committed to enhancing the efforts of the United States to win the growing global competition for business investment."

WELCOMED BY BUSINESS GROUPS

Business groups welcomed the initiative, which they said could give U.S. employment a much-needed boost.

John Engler, president of the Business Roundtable of top U.S. corporate executives, said SelectUSA "has the potential to cut through the red tape, break through U.S. investment barriers and clear the path for job creation."

For example, both major corporations and smaller companies can face costly delays in winning government approval of sites they have selected to build new facilities. SelectUSA will act as "single point of entry" at the federal level "to get things done and make sure there are no unreasonable barriers in the way," a senior Commerce Department official told reporters.

"We think there's a unique role the federal government can play. Just speeding up the process and making sure that we're not a barrier, that the federal government is not a barrier to job creation and economic growth," the official said.

The interagency group also will promote the United States as the best market for business operations and launch a new website, www.SelectUSA.gov, to provide comprehensive information on federal programs and services available to companies that operate in the United States.

"The U.S. subsidiaries of global companies employ more than 5 million Americans and if ever there was a time to aggressively market the U.S. as a place to do business, the time is now," said Nancy McLernon, president and CEO of the Organization for International Investment.

"In the race to 'win the future' it's the country that successfully attracts the world's investment that will ultimately win," she said.

"Equipois' robotic limbs give factory workers and others a hand"- LA Times

Los Angeles Works — Tue, 14 Jun 2011 12:00:AM PST

Equipois' robotic limbs give factory workers and others a hand

The small but fast-growing Playa Vista company makes products — based on technology first made famous in Hollywood — designed to alleviate strain and improve efficiency.

By Salvador Rodriguez, Los Angeles Times

7:01 PM PDT, June 14, 2011

At the Ford Motor Co. truck plant in Louisville, Ky., massive, 800-pound robotic arms used for bolting together parts are being replaced by slender, futuristic-looking limbs that can be controlled by a finger.

The new arms — just a quarter of the size, weight and price of the machines they are replacing — have already helped reduce injuries and may allow Ford to speed up assembly.

"Now that there's this lightweight, cheaper arm, we're able to put them on a lot more tools and help more operators," said Allison Stephens, a Ford ergonomics specialist.

The automaker has bought 10 arms and is looking at buying more. That is good news for Equipois Inc., the small Playa Vista company that developed the robotic limb based on a technology first made famous in Hollywood.

The zeroG exoskeletal arm, resembling a limb that might have fallen off the Terminator, shares its roots with the Steadicam, which has revolutionized the way action movies are shot.

Equipois sees the same technology helping sculptors, surgeons and dentists work longer without getting tired. A new version of the mechanical arm, the x-Ar, attaches to a chair and holds up your human arm to alleviate strain. With the x-Ar, a sculptor would be able to chisel away indefinitely; without it the arm would need to rest after about 10 minutes, founder Eric Golden said.

The company, founded four years ago, has some high-profile financial backers including Patrick Soon-Shiong, a billionaire investor and entrepreneur, who said he is excited about the technology's prospects, from its use in medicine and perhaps even in warfare.

Equipois will have "worldwide applications, whether in the workplace or whether actually transforming health or even in military operations," Soon-Shiong said.

The company was founded by Golden, an attorney before he got a job working in the mergers and acquisitions unit for Panavision Inc., the Woodland Hills-based maker of movie cameras and equipment.

With fresh eyes to the movie industry, Golden, 43, was impressed not by what he saw on the silver screen but by the industry's technologies and their potential outside of the studio.

"People in entertainment, on film sets and TV sets in particular, are called upon to solve creative problems very quickly, and they do so with a real ingenuity and resourcefulness," he said. "Because I was new, I kept thinking of what else this sort of technology could be used for."

He found his answer when he ran into Garrett Brown, the inventor of the Steadicam.

Brown, 69, had been approached by Honda Motor Co. to see if the Steadicam's technology could be used to improve its factory work.

"That fit my model perfectly, and we both realized right away that this had some real potential," Golden said.

In 2008, Equipois rolled out its first product: the zeroG, which helps factory workers operate heavy tools.

"It turns out it does more than just stabilize," said Brown, the Steadicam inventor. "It's an elegant and effortless way to hold an object, whether it's a tool or a camera."

Equipois' zeroGs cost $5,000 or $10,000, depending on how much weight they can hold. The company has sold about 500 arms, mostly of the $10,000 model, to a list of clients that include Boeing Co., General Electric Co., Ford and Lockheed Martin Corp., as well as the Air Force and the Navy. The military uses the arms for maintaining aircraft.

After surpassing the $1-million revenue mark in 2010, Equipois is expected to bring in $4 million to $5 million in 2011, Golden said. The company expects to turn a profit in late 2012.

Equipois has raised about $10 million from investors, employs about 30 people and is less than a month from shipping its second product line.

The x-Ar, which costs $3,500, is like the zeroG, but rather than making heavy tools feel lighter, the x-Ar gives humans more strength and endurance.

"We are very lucky to have this mission that involves helping people," Golden said. "It also is nice to have a very cool technology to do it with."

In the future, Equipois hopes to offer full body exoskeleton suits to assist the elderly and disabled, and that average people can afford and use. It is already working with big companies in the defense sector to provide arms for exoskeleton suits.

Military expert Peter W. Singer, author of "Wired for War," a book about robotic warfare, said the exoskeleton business is in its early stages but already has many looking to make the breakout device.

"What tends to play out with humans is we first focus on replacement and then we get to enhancement," Singer said. "The same technology that might help a sicker person lift weight that they couldn't might also be looked at by someone else as a technology that will help them lift 400 pounds without breaking a sweat."

Though evil Hollywood robots aren't the inspiration for Equipois' products, they do hold similarities.

"Those things can be a little overwhelming, but it's the same idea," he said. "It's using machines to make people stronger, safer and have more stamina."

"MPAA chief urges China's film market to widen its door"- LA Times

Los Angeles Works — Tue, 14 Jun 2011 12:00:AM PST

MPAA chief urges China's film market to widen its door

At the Shanghai International Film Festival, Motion Picture Assn. of America CEO Christopher J. Dodd suggested Hollywood expertise could help the Asian nation's industry reach its full potential.

By Richard Verrier, Los Angeles Times

June 14, 2011

In a bid to open doors in China, Hollywood's new chief lobbyist simultaneously prodded and praised the country's creative community during his keynote speech at the Shanghai International Film Festival.

At Monday's event, Motion Picture Assn. of America Chief Executive Christopher J. Dodd urged the Chinese film community to broaden its engagement with the world and suggested Hollywood expertise could help it reach its full potential.

"China's movie market is a success story in the making," Dodd said. "All the ingredients are there for China's film industry to become a major player on the world stage, just as China has always been a major player on the world cultural stage."

The former U.S. senator also highlighted the important relationship between the American film industry and Chinese filmmakers and Chinese audiences. "One of my top priorities as a representative of the American film industry is to build upon that relationship, to help it deepen and blossom, so that it can form the foundation for a world-class film and cultural sector," Dodd said.

In the last decade, the number of films produced in China has grown from dozens each year to hundreds — 526 in 2010 alone. The number of cinema screens has increased to 6,200 and is expected to more than double by 2015 to over 16,000. And box-office revenue, which passed $1.5 billion last year, is forecast to more than triple by 2015 to $5 billion.

But China's restrictions on foreign films has frustrated Hollywood. The country allows only about 20 non-Chinese films into the country each year under a revenue-sharing agreement in which studios collect less than 20% of box-office revenue, compared with more than twice that in the United States and other international markets.

Dodd and other MPAA officials have been assisting U.S. trade officials in an effort to craft a compromise that would end a long-running trade dispute with China. Under one scenario being discussed, China would expand the annual revenue-sharing quota to as many as 40 foreign films.

Although talks are underway between U.S. trade officials and their counterparts in China, it's not certain when, or even if, a deal will be reached.

Although Dodd is not directly involved in the negotiations, during his trip to China he will meet with senior government and industry leaders as well as executives from the country's leading film studios and entertainment companies.

"LA gains $4m for weatherization effort"- BrighterEnergy.org

Los Angeles Works — Mon, 13 Jun 2011 12:00:AM PST

LA gains $4m for weatherization effort

June 13, 2011

The Los Angeles Department of Water and Power is to receive nearly $4 million in extra federal stimulus funds for its energy efficiency weatherization initiative for low income customers.

The additional grant award increases the federal funds for this program to a total of $8.5 million.

The LADWP Weatherization Assistance Program is a USDOE grant-funded effort that provides home energy efficiency services for qualifying LADWP low income customers who live in single-family homes in specified areas of the City of Los Angeles.

Weatherization assistance incorporates a wide variety of measures that encompass the entire building, its heating and cooling systems, its electrical system, and electrical appliances. The program continues through March 2012, or until funds run out.

“With these grant funds, LADWP is able to continue with a new and an important energy efficiency program in our local communities, serving some of our neediest customers,” said Ron Nichols, general manager of the Department of Water and Power.

LADWP is using the federal grant to support a new program to help low-income, high use customers save energy and to build a green jobs pipeline in the City of Los Angeles. The program trains new employees in weatherization services and gets them ready for the new green economy.

LADWP Senior Assistant General Manager Lorraine Paskett said, “We are pleased to continue work on the Los Angeles home weatherization program – a new initiative that takes a more comprehensive approach for our customers while expanding our green jobs.”

Eligible customers may receive a home assessment and related weatherization services free of charge. The program is designed to increase energy efficiency in the home, help reduce customer utility bills and stimulate new jobs in Los Angeles, while providing additional home energy and water conservation information.

To determine eligibility based in part on geographic home location and to obtain additional information, interested low income customers can call the LADWP Weatherization Program line at (888) 822-8497 or send an email to WAP@ladwp.com.

The Los Angeles Department of Water and Power, the nation’s largest municipal utility, provides reliable, low-cost water and power services to Los Angeles residents and businesses in an environmentally responsible manner. LADWP serves about 1.4 million electric customers and 680,000 water customers in Los Angeles.

"E3: Video Game Confab Generates $25 Million in Revenue to Los Angeles"- The Hollywood Reporter

Los Angeles Works — Fri, 10 Jun 2011 12:00:AM PST

E3: Video Game Confab Generates $25 Million in Revenue to Los Angeles

1:52 AM 6/10/2011 by John Gaudiosi

An estimated 46,800 attendees were at this year's event along with celebrities including Kobe Bryant, Ice-T, Jimmy Buffett and Hulk Hogan.

The Electronic Entertainment Association estimates that the 46,800 attendees to this year’s E3 video game convention generated more than $25 million in revenue to the city.

More than 200 exhibitors used the annual convention to showcase the biggest games of the next year, including Activision’s Call of Duty: Modern Warfare 3, Bethesda Softworks’ Elder Scrolls V: Skyrim and Warner Bros. Interactive Entertainment’s Batman: Arkham City. Sony and Microsoft used E3 press conferences to debut new game systems PlayStation Vita and Wii U.

There were also celebrities in attendance. Kobe Bryant took the stage to play NBA 2K12during Sony’s press conference, and Jane’s Addiction closed out that event with a concert. Ice-T, who provides voice work for Epic Games’ Gears of War 3, played the game on stage during Microsoft’s press conference. Jimmy Buffett was at THQ’s booth to promote Margaritaville Online. Hulk Hogan walked the convention center halls to drum up awareness for Majesco’s Hulk Hogan Main Event Wrestling Kinect for Xbox 360 game. Rampage Jackson attended Microsoft’s Forza 4party at L.A. Live, where Travis Barker and Beastie Boys DJ Mix Master Mike performed. And Snoop Dogg visited Yoostar Entertainment’s booth to check out Yoostar on MTV, a new game that allows players to insert themselves into MTV TV shows.

The video game industry will return to L.A. the same time next year, June 5-7, 2012.

"California marks 18th month of export growth"- Sacramento Bee

Los Angeles Works — Fri, 10 Jun 2011 12:00:AM PST

California marks 18th month of export growth

mglover@sacbee.com

Published Friday, Jun. 10, 2011

An uneven economic recovery at home and signs of slowing business growth abroad failed to slow California export trade this spring.

The value of California exports in April totaled $12.88 billion, up 14.4 percent from $11.26 billion in April last year, according to an analysis of Thursday's U.S. Commerce Department trade figures by Beacon Economics, a consultant with offices in the Bay Area and Los Angeles.

News also was good on a national basis, as a narrowing of the trade deficit boosted slumping economic markets.

For California, April marked the 18th consecutive month of year-over-year growth.

"On an inflation-adjusted basis, California's export trade in April nearly equaled the pre-recession high for that month achieved back in 2007," said Jock O'Connell, Beacon's international trade adviser.

Year-over-year, California's April exports were up across the board. Manufactured exports rose 10.7 percent, non-manufactured exports (chiefly raw materials and agricultural products) rose 21.3 percent and re-exports grew 22.4 percent.

Christopher Thornberg, Beacon's founding partner, viewed the April export numbers as a positive sign. "Exports are likely to play an important role in the economic boost we expect to see in the second half of this year," he said.

Still, O'Connell noted that some of California's top trading partners are showing signs of slowing. "The economic growth rates of several of our principal trading partners have been decelerating – in some cases, like China and India, from speeds that were plainly unsustainable over the long term," he said. "That's apt to shrink but certainly not stifle their appetite for imported goods."

O'Connell also predicted that California exporters should continue to enjoy the benefits of a dollar trading at some of the lowest levels in decades. A weaker dollar makes U.S. goods and services cheaper overseas.

California imports in April totaled $26.98 billion, up about 4 percent from $25.92 billion in April last year. Some goods entering California go to other states, so exports are considered a more accurate measure.

Nationally, the U.S. trade deficit narrowed 6.7 percent, to about $43.6 billion, from March to April.

The Commerce Department pointed to record high U.S. exports of goods and services that totaled $175.6 billion in April, up 1.3 percent from March. Officials cited robust numbers of computers, heavy machinery and telecommunications equipment.

U.S. imports – affected by Japan's disasters – totaled $219.2 billion, down 0.4 percent from March.

"Residential and retail project next to Pantages Theatre has new developer"- LA Times

Los Angeles Works — Fri, 10 Jun 2011 12:00:AM PST

Residential and retail project next to Pantages Theatre has new developer

DLJ Real Estate Capital Partners has bought the Blvd 6200 development in Hollywood from the Clarett Group. The project calls for 1 million square feet of stores and apartments a block from Hollywood Boulevard and Vine Street.

By Tiffany Hsu, Los Angeles Times

June 10, 2011

A massive residential and retail development planned next to the Pantages Theatre in Hollywood has changed hands.

DLJ Real Estate Capital Partners completed its purchase of Blvd 6200, a combination of stores and apartments taking up more than 1 million square feet a block from Hollywood Boulevard and Vine Street.

The project, which sold for an undisclosed price, has been in the works since 2005.

Frank Stephan, head of West Coast operations for the previous developer, the Clarett Group, will continue to oversee the endeavor through Clarett West Development, which was newly formed with DLJ to manage the project.

The proposed complex would sit on a 7.3-acre site leased by DLJ under a 99-year contract with the Nederlander family, which owns the Pantages and Greek theaters. Planners expect more than 1,000 apartments and 160,000 square feet of retail space to eventually rise on parking lots that blanket the area now.

"Hollywood has seen sustained rent growth and strong demand for high-quality apartments, particularly new units," said Jay Glaubach, a vice president in DLJ's Los Angeles office. DLJ, based in New York, manages more than $4 billion in real estate private equity funds.

The first phase, which developers hope to complete in about three years, will consist of 535 apartments — 50 of them for moderate-income families — as well as roughly half of the retail space and more than 1,300 underground parking spots. It will cost more than $200 million, Stephan said.

The area has been a hotbed for development recently.

Within blocks and months of each other, the W Hollywood Hotel & Residences and local entertainment impresario Sam Nazarian's Redbury hotel opened.

Developers Millennium Partners and Argent Ventures are seeking approval to build a 1-million-square-foot, mixed-use complex next to the famous cylindrical Capitol Records Tower office building in Hollywood. The project would include apartments, a hotel, offices, restaurants and stores.

And a $57-million, eight-story office building is about to take shape at 1601 Vine St., long the home of the 20-stool Molly's Hamburgers lunch counter.

"L.A. in contract talks to keep E3 convention in city"- LA Times

Los Angeles Works — Thu, 09 Jun 2011 12:00:AM PST

L.A. in contract talks to keep E3 convention in city

Organizers of the weeklong video games conference — the largest annual convention L.A. hosts — are keeping their options open beyond next year, when the show's current contract with the city-owned convention center ends.

By Alex Pham and Hugo Martín, Los Angeles Times

June 9, 2011

The largest annual convention in Los Angeles — a video games conference that wraps up Thursday — may be in play.

Los Angeles city officials are in negotiations with organizers of the Electronic Entertainment Expo, or E3, to ensure that the vast displays of new games, consoles and other electronic wizardry as well as costumed goblins, elves and booth babes return after next year, when the show's contract with the city-owned convention center ends.

The weeklong convention, which is expected to attract 45,600 attendees and fill an estimated 25,000 hotel rooms this week, is among the most lucrative shows for downtown merchants and hoteliers.

E3 exhibitors and attendees last year spent an estimated $25 million on restaurants, taxis, hotels, and the hiring of hundreds of temporary workers to staff their booths, among other things, according to the Entertainment Software Assn., the group that puts together E3.

While association executives say the discussions with the city are "very positive," the group says it is keeping its options open.

"There have been other places we've looked at," said Rich Taylor, association senior vice president of industry affairs.

The association would prefer to keep E3 in Los Angeles, Taylor said, but concerns about AEG Inc.'s proposed construction of the Farmers Field football stadium on what is now the convention center's West Hall has thrown a wild card into the mix.

"We don't want our attendees to have to rappel across a construction quarry to get to a booth," Taylor said.

AEG, whose executives are also involved in the negotiations, in recent weeks agreed to modify its plans by keeping the West Hall open while it builds a replacement hall above Pico Boulevard and connects it to the South Hall, according to people involved in the negotiations.

AEG officials have said the change means delaying AEG's projections for opening the stadium by a full year, from 2015 to 2016.

The concession, however, is contingent upon AEG and the city agreeing to proceed with construction for the $1-billion football field.

AEG Chief Executive Tim Leiweke last week gave officials an ultimatum, saying AEG would abandon the project if it can't reach an agreement with the city by July 31.

"We've committed to developing a schedule that would protect existing large convention center events, like E3, from interruptions brought on by the construction of the new Pico Hall," said AEG spokeswoman Francesca Leiweke. It declined to provide further details on its negotiations, saying the talks are confidential.

E3, which has been staged in Los Angeles for 15 of the 17 years of its existence, has become an annual spectacle for the city.

Attendance peaked at nearly 70,000 in 2005, but complaints from showgoers about its unwieldy size led organizers to whittle down the show in 2007 and 2008 to just 5,000 attendees.

But the format failed to generate much in the way of headlines, and they brought back the circus atmosphere in 2009, but capped attendance at 45,000 to minimize the noise and chaos.

In previous contracts, the association paid $1 to rent the convention center from the city, which has made money from parking fees and concession sales. Its current contract requires the association to pay substantially more.

"There are other locations that would obviously love to have a show of this size in their backyards," Taylor said, "but thus far we feel we have a strong, mutually productive relationship with Los Angeles."

Michael McDowell, Los Angeles Convention and Visitors Bureau spokesman, said the bureau is working hard to retain E3 because the convention returns to the same city annually, unlike some conventions that rotate around the country.

"There is no question: This is a big one," he said of the show.

McDowell confirmed that the bureau has promised convention organizers that construction of a proposed downtown stadium won't disrupt the show. He described the negotiations as positive. "They should go very smoothly," he added.

E3 is not only important because of the number of attendees it attracts and the money they spend, but also because of the attention the city gets from the international media outlets that cover the event, said Rachel Wimberly, editor in chief of Trade Show News Network, an online news source of the trade show industry.

"E3 is a very prestigious gathering," she said. "Would other cities kill to have the show? Absolutely."

Last spring, San Diego city officials also feared the loss of a lucrative convention when organizers of Comic-Con International, the world's largest gathering of comic book and pop culture fans, announced they were considering leaving San Diego after its contract expires in 2012.

The announcement sparked a bidding war, with the cities of San Diego, Los Angeles and Anaheim submitting proposals that included special hotel rates, discounts on exhibition space and other allowances to land the convention. The proposals were not released to the public.

Each summer, Comic-Con draws about 125,000 attendees, who spend an estimated $60 million on hotels, meals, transportation and other expenses. After months of deliberation, convention organizers decided to stay in San Diego and a few months later San Diego officials announced plans to expand the city's convention center, with fees from hotel guests paying for the construction costs.

Despite failing to woo Comic-Con away from San Diego, L.A. has had several other smaller victories recently.

Last summer, the L.A. Convention Center signed an agreement to host Microsoft's Worldwide Partner Conference, a gathering of the firm's staffers and business partners set for July.

"Planning panel hikes NFL Stadium focus"- Daily News

Los Angeles Works — Thu, 09 Jun 2011 12:00:AM PST

Planning panel hikes NFL Stadium focus

By Dakota Smith, Staff Writer

Posted: 06/09/2011 06:59:01 PM PDT

Updated: 06/09/2011 10:07:15 PM PDT

Paul Patsis, president of market management for Farmers Insurance, center, poses with Los Angeles Kings cheerleaders, Tuesday, Feb. 1, 2011, during a ceremony naming a new NFL stadium in Los Angeles. A proposed NFL stadium in downtown Los Angeles would be called Farmers Field under a 30-year naming-rights deal between developer AEG and Farmers Insurance Exchange. (AP Photo/Nick Ut)

The Los Angeles City Planning Commission on Thursday joined a list of city agencies devoting time and resources to evaluate developer AEG's proposed Farmers Field NFL stadium.

While the NFL has not formally committed to returning to Los Angeles, the Planning Commission set up a subcommittee to look exclusively at the ambitious downtown project, which envisions a 70,000-seat stadium and new convention center hall.

Commissioner Sean Burton, who will oversee the internal four-member group, said the sheer size and complexity of the project requires the city to give it special attention. The commission will be tasked with looking at how the various stages and elements of the project will be approved.

A development that would dramatically transform downtown, AEG proposes a Gensler-designed 70,000 seat event stadium and "Pico Hall," a new convention center hall to replace the 40-year old West Hall.

By early next year, the developer will submit an environmental impact report for Farmers Field, and the Planning Commission will be the first city agency to approve or reject AEG's proposal.

At Thursday's hearing, community advocate Noel Weiss questioned the subcommittee and the resources extended by the commission.

"This takes precedence over critical policy issues the city isn't dealing with," said Weiss, who requested that Planning Commission subcommittees be created to study issues like affordable housing and density issues.

The Planning Commission is among numerous city agencies studying the project. Earlier this year, the city created an Ad Hoc Committee on Downtown Stadium and Convention Renovation. The Planning Department has two staff members working on the football stadium, according to Alan Bell, chief zoning administrator.

"They are doing a significant amount of work" on the stadium, said Bell, splitting their time between the stadium, and other major projects.

The Los Angeles Department of Transportation is working with an AEG consultant on a traffic study for the EIR report, while the City Attorney's office is also devoting resources to the project.

Since April, the Office of the Chief Legislative Analyst has been working on a memorandum of understanding - a document that illustrates the city's willingness to negotiate with AEG-over Farmers Field.

While the city is publicly committed to discussing a new stadium, last week AEG President and CEO Tim Lieweke suggested in an interview with the LA Times that the stadium deal could fall apart unless the city signs a memorandum of understanding by August.

A source says the comments made by Lieweke, who is apparently not satisfied with the pace of the progress, "were intended to move the city along."

Eva Kandarpa Behrend, spokeswoman for City Councilwoman Jan Perry whose district is in the project area, said she expects the memorandum to be presented to the Ad Hoc Committee by July.

"Officials weighing privatization at LAX, which could save taxpayers millions"- Daily News

Los Angeles Works — Wed, 08 Jun 2011 12:00:AM PST

Officials weighing privatization at LAX, which could save taxpayers millions

By Art Marroquin, Staff Writer

Posted: 06/08/2011 09:33:02 PM PDT

Updated: 06/08/2011 10:52:03 PM PDT

A jetliner lands at LAX behind the Theme Building. ((File photo/Daily News))

Taxpayers could save nearly $39million a year if LAX used private rather than federal security screeners, according to a new report.

The report by Florida Rep. John Mica, who chairs the House Transportation Committee, comes as Los Angeles officials review security protocols at Los Angeles International Airport. Among the issues being discussed is whether to substitute some of the Transportation Security Administration employees at LAX with private screeners who would work under federal supervision.

"We continue to review the merits of using a privatized workforce and will make our decision soon," said LAX spokesman Michael Molina.

Late last year, LAX officials were preparing to apply for a program that would have allowed TSA-approved contractors to screen passengers and baggage at several undisclosed locations.

That plan was placed on hold in December, when Mayor Antonio Villaraigosa assembled a blue-ribbon panel of aviation and homeland security experts to determine whether LAX is prone to a terrorist attack.

The group is expected soon to provide an exhaustive list of recommendations on how to improve security, safety and emergency management at LAX, the nation's third-busiest airport.

"It's nice to see that the airport is exploring its options that include security privatization as a pilot program, but that's on hold until the mayor's blue-ribbon commission releases its report," said City Councilman Bill Rosendahl, whose district includes LAX.

Rosendahl had asked airport officials last November to study whether security should be handled by private contractors after the TSA introduced more aggressive screening procedures, including full-body scanners and intensive pat-downs.

Rosendahl said he believes that replacing TSA agents with private contractors would improve security and efficiency at LAX.

"In my opinion, the jury is still out on whether it would cost more or less," Rosendahl said. "But if airport personnel and the blue-ribbon commission feel private security could do a more efficient job than the TSA, then I'm all for it."

According to Mica's report, private security screeners at San Francisco International Airport processed 65percent more travelers than TSA officers working at LAX. San Francisco is the largest of 16 airports nationwide that have opted out of using TSA workers.

In addition, taxpayers could save more than $1billion over the next five years if the country's 35 largest airports used private rather than TSA screeners, the report said.

Mica cited high turnover among the TSA's staff, leading to increased costs to recruit and train replacements.

The Mayor's Office declined to say whether Villaraigosa supports privatizing at least part of the security force at LAX.

However, Villaraigosa said in a written statement that he took the report "seriously" and was reviewing the recommendations made by Mica.

In response to Mica's study, TSA spokesman Nico Melendez said that private screening contracts actually cost more on average and that it was "critical" for the agency to operate a nationwide security network.

"High-Tech Firm Equipois Moves to 'Silicon Beach'"- Marina Del Rey Patch

Los Angeles Works — Wed, 08 Jun 2011 12:00:AM PST

High-Tech Firm Equipois Moves to 'Silicon Beach'

The company, which manufactures exoskeletal arms for use in factories, hospitals and the military, holds a grand opening Wednesday at its new facility on the Del Rey/Playa Vista border.

By Paul Chavez l June 8, 2011

Los Angeles Mayor Antonio Villaraigosa and City Councilman Bill Rosendahl joined high-tech manufacturer Equipois at a grand opening ceremony Wednesday at the company's new facility on the border of Playa Vista and Del Rey and tested its groundbreaking zero-gravity exoskeletal arms.

The company was founded in 2006 and uses the Steadicam camera stabilization technology developed for Hollywood to manufacture exoskeletal arms designed to improve safety and productivity in factories, hospitals, in the military and among the disabled. Equipois' zeroG mechanical arm allows workers to operate heavy tools or objects as if they were weightless and with full range of motion, allowing greater productivity while reducing the risk of injury.

The company was named the most innovative firm in North America in 2010 by the International "Stevie" Awards, received the Los Angeles Business Journal's 2010 Patrick Soon-Shiong Innovation Award and the 2011 BritWeek Business Innovation Award.

Equipois outgrew its Hollywood plant and recently moved into a new 12,000-square-foot facility on the Del Rey/Playa Vista border, becoming the latest company to set up shop in West Los Angeles' burgeoning "Silicon Beach." The company is located within the boundaries of the Del Rey Neighborhood Council, but identifies itself as being in Playa Vista.

"It's close to where we live on the Westside, and the vibrance of the creative community is amazing here," said Eric Golden, president and chief executive officer of Equipois. He said the company plans on expanding from 18 to 32 workers this year.

Equipois joins several other high-tech companies that have secured a spot in Silicon Beach. Search-engine giant Google Inc. in January announced plans to lease 100,000 square feet of office space at the Binoculars Building in Venice; Mexican filmmaker and Oscar nominee Guillermo del Toro in December opened the 25,000 square feet animation and visual effects workshop Mirada in Marina del Rey and longtime Venice-based visual effects house Digital Domain recently acquired a new facility in Playa del Rey.

Golden told an audience of roughly 150 people that his company was wooed by several cities as it considered where to move.

"I won't name any names because at least with one of them, what happens in that city stays in that city," Golden jokingly said in obvious reference to Las Vegas. "The choice to stay here was a clear one and I think it's a clear one for anyone starting what should be a high-growth business. The talent pool here is unmatched."

Villaraigosa thanked Golden for keeping Equipois in Los Angeles and for tapping the local workforce.

"A lot is said about the fact that L.A. doesn't have many Fortune 500 companies and, well, that's true," Villaraigosa said. "But the fact is that small business is the motor force of the U.S. economy and this is the small-business capital of the United States. Businesses like this, that are innovative, that are technology driven, are the future."

Rosendahl slipped into one of the exoskeletal arms and later gushed about its potential myriad of uses.

"You walk in here and you see the applications from a health perspective of this technology," Rosendahl said. "You are on the cutting edge. You are on the beginning of something that is so exciting, that the entire world will benefit from this. This is not just a little job, this is a big deal. Its impact will be phenomenal."

Missy Brost, senior manager of ergonomic technology for Boeing Co., said her firm was Equipois' first customer and it has bought more than 30 exoskeletal arms that have been deployed at seven sites, including one in Long Beach.

"It does make us more productive and it makes our employees happier and safer," Brost said.

Other Equipois customers include Ford Motor Co., Toyota Motor Corp., General Electric Co., John Deere, Caterpillar Inc., Lockheed Martin Corp. and the U.S. government.

Soon-Shiong—a billionaire who is a surgeon, biotech entrepreneur, adviser to startups and part owner of the Los Angeles Lakers—also attended the grand opening and praised Equipois for adapting technology from the entertainment industry.

"One thing we have as a nation is innovation, and I don't think anyone can beat us in innovation," Soon-Shiong said.

Garrett Brown, a cinematographer who invented the Steadicam in 1972, said he developed several new patents for Equipois for its exoskeletal arms. The Steadicam altered filmmaking by allowing camera operators to record and walk with the camera without shaking it.

"I'm thrilled about it," Brown said. "When you invent something you have a form of tunnel vision and you see it for the task you're looking for. Every now and then you have the good fortune to see it does something else."

The Steadicam has provided filmmakers with an "elegant" way to hold the camera, Brown said.

"By elegant, I mean effortless and precise and, wow, that's it for tools," he said. "That's what tools need: effortless and precise. And that gives them two things, endurance in the workplace and increased productivity. When you're holding an object that weighs a lot, your fine motor skills go out the window."

"On Location: Plenty of entries but few winners in California film tax credit lottery"- LA Times

Los Angeles Works — Mon, 06 Jun 2011 12:00:AM PST

On Location: Plenty of entries but few winners in California film tax credit lottery

June 6, 2011 | 5:13 pm

Filmmakers apparently can't get enough of California's film tax credits.

The state's annual lottery to determine who gets a piece of $100 million in tax breaks drew 176 applicants -- more than double the number who applied for the money last year. The state began accepting applications June 1 for the program, which allows filmmakers to receive a tax credit equivalent to 20% to 25% of qualified production expenses.

Because of limited funds, however, the vast majority already have walked away empty-handed. The
California Film Commission, which administers the program, said 27 projects qualified for the funding, down from 32 last year. The money is doled out by lottery, except for TV series that received credits last year and automatically get priority for funding.

The approved projects for the fiscal year that begins July 1 were mostly independent features and recurring TV series such as "Rizzoli & Isles," which was approved for a $6.8-million credit; and "Justified," which got a $4.7-million credit, according to the California Film Commission.

Also in line to receive film tax credits are two series that relocated to California from elsewhere: the ABC crime drama "Body of Proof," which filmed its first season in Rhode Island earlier this year and received a $6.9-million tax credit for the coming fiscal year; and "Torchwood," the BBC America sci-fi series that moved to L.A. from Wales this year. The show received an $8-million credit.

Why the surge in applications? Perhaps more filmmakers are giving California a second look as states such as New Mexico and Michigan plan big cuts in their programs. Amy Lemisch, executive director of the California Film Commission, thinks not. She posits another theory:

"More people are familiar with the program and understand how it works and felt it was an efficient program," Lemisch said. "They said 'let's go for it.'"

-- Richard Verrier

"L.A. Mayor Villaraigosa To The Small Business Community: Los Angeles Is Dedicated To Your Needs"- California Newswire

Los Angeles Works — Thu, 02 Jun 2011 12:00:AM PST

L.A. Mayor Villaraigosa To The Small Business Community: Los Angeles Is Dedicated To Your Needs

Edited by Valerie Gotten
published Thu, 02 Jun 2011 – 00:46:16 +0000 UTC

LOS ANGELES, Calif. /California Newswire/ — Los Angeles Mayor Villaraigosa issued a statement today urging small business owners to take advantage of the unprecedented City resources available to grow and start new enterprises. “As National Small Business Month comes to a close, Los Angeles remains committed to the specific needs of the more than 300,000 small businesses that employ nearly 2 million Angelenos. Los Angeles has long been the destination for entrepreneurs from around the globe to build their dreams from the ground up. However, we cannot rely on the City’s trademark entrepreneurial spirit alone to preserve LA as the place where the world creates and innovates.

That is why my office created the City’s first-ever small business team to fight for the interests of entrepreneurs and small firms throughout Los Angeles. For the first time, my office required City Departments to meet specific contract goals for local small businesses as well as women-, minority-, and veteran-owned businesses.

To foster transparency and accountability for this new system, General Managers are required to post contracting results, the first of which are currently available online. This isn’t just the right thing to do – this is the smart, business-savvy thing to do. A larger pool of qualified bidders will generate healthy competition and savings for the City while empowering our local small business community.

If you are a small business owner, I encourage you to go visit www.losangelesworks.org to find out more about these initiatives and other City resources that are at your disposal to help your company grow and thrive. After all, customer service is the core responsibility of our small business team, and you are our most important customer.”

Below are the recent initiatives and first-time milestones achieved by the Mayor’s Office and aimed at serving the specific needs of small businesses:

-Signed a Strategic Alliance Memorandum with the Small Business Administration (SBA) to strengthen and expand small business development in the local area.

-Partnered with the University of Southern California (USC) to create the MBDA Business Center (MBC), which was awarded $1.8M from the U.S. Department of Commerce’s Minority Business Development Agency (MBDA) to boost job creation and foster economic growth.

-Hosted the State’s largest Small Business Advocate’s Advisory Group meeting, enabling more than 100 small business leaders to discuss programs, policies and capital projects impacting small business.

-Posted the first reports on the City’s procurement efforts. These reports track the number and amount of contracts awarded by department and the participation by minority- and women-owned companies.

ABOUT THE EDITOR: Valerie Gotten (aka Valerie G) is an abstract painter, former movie stand-in, and volunteers for "green events" to help raise awareness about global warming, and help preserve California's wilderness and natural beauty.

"On Location: Film industry frets over planned state park closures"- LA Times

Los Angeles Works — Tue, 31 May 2011 12:00:AM PST

On Location: Film industry frets over planned state park closures

May 31, 2011 | 2:07 pm

More than a dozen California state parks that have been a rich source of filming for such classic Hollywood movies as “High Noon,” George Lucas’ "Star Wars" sequel “Return of the Jedi” and Steven Spielberg’s “Back to the Future III” are in danger of going dark.

They are among 70 state parks, historic sites and recreation areas — or 25% of the 278 parks statewide — that Gov. Jerry Brown has proposed closing in response to the state’s budget crisis. The planned closings, which are part of the $33 million in park cuts approved by the Legislature this year, are likely to be the subject of intense upcoming budget negotiations in Sacramento. Brown’s administration says the cuts, which would begin this fall at the earliest, are necessary to balance the state’s budget.

The prospect of losing so many state parks is cause for concern among location managers and film promoters, who fear that such drastic cuts could give producers one more reason to take their business out of California. The timing is bad for the state, which has been working to keep more productions from leaving.

California may not have the most generous film tax credit, but what it does have, apart from experienced crews and sunny weather, is an abundance of parks with diverse landscapes that have long served as ready-made locations for producers of films, TV shows and commercials, film industry officials say.

“This is going to be very problematic for location managers," said Veronique Vowell, chairwoman of the government affairs committee for the Location Managers Guild of America. “The parks are hugely important to us. They are relatively low-cost, ready-made back lots that can represent all different places around the country. You’ve got deserts to alpine forests and beaches.”

Vowell said that once parks close, it is not clear whether filmmakers will still have access to the locations, how they would secure permits to shoot, and how well maintained the sites would be.
Parks remain hugely popular for filming. In 2009, nearly 500 permits were issued for nearly 1,000 days of shooting in state parks for such productions as “Iron Man 2” and “I Love You, Man.”

For that reason, the Location Managers Guild last year lobbied in support of an unsuccessful ballot initiative that would have required Californians to pay an extra $18 as part of their annual vehicle registration fee in exchange for eliminating day-pass fees at state parks.

A spokesperson for Gov. Brown’s office was unavailable for comment.

The parks slated for closure include the Salton Sea State Recreation Area; Palomar Mountain State Park in San Diego; Fort Tejon State Historic Park in Kern County; Grizzly Creek Redwoods, seen in George Lucas’ "Star Wars" sequel “Return of the Jedi”; and Railtown 1897 State Historic Park, which hosted the classic movies “High Noon” and “Back to the Future III.”

The busiest parks for filming in L.A. County, such as Malibu Creek and Leo Carrillo, aren’t on the closure list, but the cuts would phase out half a dozen less-used parks in the region that have long histories of filming, including McGrath State Beach in Oxnard; the Santa Susana Pass State Historic Park near Simi Valley, famously depicted in Alfred Hitchcock’s classic “North by Northwest”; and Saddleback Butte State Park east of Lancaster, which was featured in “There Will Be Blood,” starring Academy Award-winning actor Daniel Day-Lewis.

“These are historic film locations that are in jeopardy and should never be considered for closure," said author Harry Medved, who conducts film history tours, including an upcoming one of Malibu Creek State Park. “The parks are vital to the film industry.”

Photo: "The Lost World: Jurassic Park" was partially filmed in Del Norte Coast Redwoods State Park, which is among 70 parks slated to close. Credit: Murray Close/Universal Studios.

-- Richard Verrier

"Calif. Assembly votes to extend tax credits for in-state TV and film production until 2019"- Washington Post

Los Angeles Works — Tue, 31 May 2011 12:00:AM PST

Calif. Assembly votes to extend tax credits for in-state TV and film production until 2019

By Associated Press, Published: May 31

SACRAMENTO, Calif. — The state Assembly voted Tuesday to extend incentives for California’s entertainment industry for five more years, approving up to $500 million in additional tax credits to help keep movie-making jobs in the state.

The California Film and Television Tax Credit Program enacted in 2009 has already helped keep some $2.2 billion in film and television production and 25,000 crew jobs in California, said Assemblyman Felipe Fuentes, a Sylmar Democrat, arguing for the extension.

The Assembly voted 72-1 to extend the program from 2014 to July 2019. The bill goes next to the state Senate.

Supporters said other states and nations have been stepping up their incentives to lure away film and television work.

California lost production jobs for years until the credit took effect, said Assemblyman Anthony Portantino, D-La Canada Flintridge, and it was carefully crafted for economic benefit to the state.

“You had to create the job here to get the credit,” he said.

Democrats and Republicans both backed AB 1069 as a way to preserve California jobs, though some GOP lawmakers said other industries needed the help as much as Hollywood.

Only Assemblyman Chris Norby voted against the bill, saying the tax credits tilted the level playing field of business competition.

“This is about picking and choosing economic winners and losers,” Norby said. “If you want to support Hollywood, go see a movie. I haven’t seen one in a long time.”

Los Angeles area legislators had pushed for a production tax credit for years without success until then-Gov. Arnold Schwarzenegger got behind the idea in 2008. His backing was pegged to a decision by the producers of the ABC Studios television series “Ugly Betty” to move production from Los Angeles to New York, costing about two-thirds of the 150 crew members their jobs on the $3 million-per-episode show.

New York had offered the producers a 35 percent tax credit.

California’s credit, against income or sales taxes or both, is not quite that rich. It covers up to 25 percent of production budgets spent in the state and applies to films with production budgets of up to $75 million, TV movies, miniseries and certain series. It sets aside at least $10 million of credits for independent films from the $100 million available each year.

The California credit took effect in 2009, when the recession and tax credits elsewhere helped cut on-location filming days on the streets of Los Angeles by 19 percent from the previous year, according to FilmLA, a nonprofit that tracks city film permits. The decline would have been even larger without the tax credit, which helped keep 10 feature films in town, the group said.

Producers taking advantage of the state perk helped increase movie and TV commercial production in Los Angeles by 15 percent in 2010, the first full calendar year the tax credit was in effect. The group reported that permits showed 43,646 production days in 2010, up from 37,979 in 2009.

"Getting LAX Off the Ground"- LA Business Journal

Los Angeles Works — Mon, 30 May 2011 12:00:AM PST

Getting LAX Off the Ground

OP-ED: Much needed renovations to the airport could provide a lift to L.A.’s tourism and trade industries. By RUSSELL GOLDSMITH Monday, May 30, 2011

This summer, millions of travelers will board flights to and from Los Angeles. Many of them will come here hoping to enjoy our city’s unique creative energy and lifestyle – its world-famous beaches, amusement parks, recreational activities, shops and cultural attractions.

These travelers could contribute significantly to our local economy. But first, they will step into an airport that hasn’t been fully renovated since Ronald Reagan was president and our city was preparing for the 1984 Olympics. And it shows.

From London and Shanghai to Dubai and Denver, the world’s leading cities are making the investments necessary to compete for the critical economic benefits that accompany international trade and tourism.

Ours is a 21st century city that must have a 21st century airport – one that is capable of accommodating more travelers and larger, more fuel-efficient aircraft, safely, productively and in style. A decade ago, only two other airports in the world received more visitors than Los Angeles International Airport, but now our airport ranks sixth. With unemployment in Los Angeles hovering around 12 percent, we can’t afford to lose more ground.

Also at risk is L.A.’s vital share of international trade. Each year, LAX handles some $80 billion of high-value products and merchandise – from custom handbags to iPads. But today many planes have the fuel capacity to fly past LAX and distribute their cargo through other U.S. cities.

LAX is critical to the economy and quality of life in Los Angeles and this region of 15 million people. The airport is responsible – directly or indirectly – for one of every 20 jobs here.

The good news is that for the first time since 1984 some significant progress is being made – thanks to the strong leadership of Mayor Antonio Villaraigosa and his airport’s executive director, Gina Marie Lindsey. Most notable are the new international terminal now being built and the new concessionaires on the way. But despite the improvements, much more needs to be done at LAX.

The Los Angeles Coalition for the Economy and Jobs, a group of regional leaders from the business, labor, academic and non-profit sectors, believes there are three top priorities that must be addressed urgently:

• A much better customer experience

Domestic and international visitors using LAX contribute nearly $9 billion to the L.A. economy; $4 billion alone from international visitors. Roughly 60 million people walk through LAX’s terminals each year, and we need to provide customers with a world-class arrival-and-departure experience - curbside to aircraft in every terminal. LAX’s terminals provide a dismal first impression of Los Angeles and for some, the entire United States, with outdated restrooms, inferior restaurants and shops, confusing walkways, inadequate and outdated lounges, and no signage in multiple languages. Los Angeles is one of the world’s top economic and cultural communities, and LAX should showcase its unique brands, attractions, theaters, businesses, restaurants, museums and landmarks, and how to get to them.

• Necessary improvements to increase safety and productivity, specifically moving the north runway

The growing consumer and business demand to travel and trade goods around the nation and the world requires a 21st century airport to accommodate 21st century aircraft safely and efficiently. Local businesses and our region’s huge logistics industry need a fully modern LAX to interact rapidly and competitively with the global marketplace. On the north airfield, there needs to be greater separation between the two runways, and a center line taxiway needs to be built in between for optimal safety reasons and to increase productivity of the airport. As we saw with the April accident in New York, the A-380 and 747-8 require more space.

• Improving public transit connections, especially extending the Green Line

Extending the Green Line to LAX will allow travelers and employees of the airport to connect much more quickly and easily to the Metropolitan Transportation Authority’s growing transportation network and other destinations throughout the region. Public rail to LAX has been in discussion for more than 20 years and getting it done is overdue. The mayor’s 30/10 proposal would provide the funds to expedite this extension ($330 million is already committed to the estimated $600 million price tag). Eventually, a traveler should be able to land at LAX, hop on a rail line and travel rapidly to downtown Los Angeles, the Westside, the San Fernando Valley and even on to Disneyland and Long Beach, without getting on the freeway.

Only with a truly world-class airport will Los Angeles maintain its rightful place as a truly world-class region that commands respect, attracts abundant trade and tourism, and fully meets the needs of citizens and businesses in Southern California.

The ability of Los Angeles to lead and to thrive in the 21st century global economy requires that these three additional priorities be embraced and executed promptly.

Russell Goldsmith, chairman and chief executive of City National Bank, is also chairman of the Los Angeles Coalition for the Economy and Jobs, a non-profit that helps develop and advance policies that produce long-term economic and job growth.

"Small-Business Loans Make a Big Comeback in L.A."- LA Business Journal

Los Angeles Works — Mon, 30 May 2011 12:00:AM PST

Small-Business Loans Make a Big Comeback in L.A.

BANKING & FINANCE: Wilshire and Center Financial are among top SBA lenders in U.S. By Richard Clough Monday, May 30, 2011

Several local banks are taking advantage of a rising demand for small-business loans to increase their national profiles.

According to data recently released by the U.S. Small Business Administration, nine L.A. banks ranked among the 100 largest SBA lenders nationwide in the first six months of the fiscal year, which began in October. That number is up from six the previous year.

In particular, Wilshire Bancorp Inc. and Center Financial Corp., a pair of community bank holding companies in Koreatown, both ranked among the top 25 SBA lenders in the country, ahead of such banking giants as Citigroup Inc. and Bank of America Corp. Wilshire ranked No. 21 with 168 loans, while Center Financial came in at No. 23 with 153 loans; neither cracked the top 25 last year.

By dollar value, both Center Financial at $145 million and Wilshire at $138 million ranked in the top 10 nationally.

Jason Kim, Center Financial’s chief credit officer, attributed the rise in lending to an increase in demand from potential borrowers.

“There appears to be more activity compared to a year ago with property purchase requests and business purchase requests,” he said.

City National Corp. also made a significant jump in the national rankings. The downtown L.A. institution was the 41st largest SBA lender in the country, originating 85 loans, after failing to rank in the top 100 in the same period last year.

Nationwide, SBA lending is up 47 percent this year to more than 29,000 loans, according to the data. In the L.A. district, the number of SBA loans made to local companies jumped 14 percent to 1,379, while the total dollar amount of the loans surged 65 percent to nearly $1 billion.

The role of community banks in SBA lending was expected to rise with the passage of recent legislation intended to free up capital for small-business lending. Among the measures, Congress established a $30 billion fund to encourage community banks to resume lending, and extended an earlier move to raise the SBA loan guarantee to 90 percent.

Patrick Rodriguez, a spokesman for the SBA’s L.A. office, said the legislation, combined with an improving economic landscape, has “provided tools to small-business owners through tax breaks and incentives, and also provided additional capital to small businesses through our loan programs.”

Not every local bank upped its SBA lending, however. Excel National Bank in Beverly Hills, which originated 197 such loans in the first half of last year, has made just 19 this year.

The bank said last week that it has raised $10 million “to expand its presence in the greater Los Angeles area as well as diversify its loan products, especially among the commercial and industrial markets.”

Bank executives did not return requests for comment.

Inland Merger

Credit Union of Southern California, a Whittier institution with $599 million in assets, announced plans last week to merge with a smaller credit union in Pomona.

CU SoCal, as it is known, will have $642 million in assets and eight branches after absorbing Inland Empire Credit Union, the institutions said. The transaction requires approval from state and federal regulators.

The credit union industry was upended by the financial crisis, with a number of local institutions being seized by regulators, but CU SoCal said the merger was not driven by financial concerns.

“While both credit unions are financially sound and doing well today, we know that together we can create a new organization that will be strategically positioned to grow and bring our members even more value and greater convenience over the long term,” said CU SoCal Chief Executive Dave Gunderson, who will hold the same position in the merged institution, in a statement.

The combined entity will retain the Credit Union of Southern California name.

C-Suite News

Trinity Capital LLC, a boutique investment bank in Brentwood, has hired Sharon Hatchell as senior vice president. … City National announced two hires in its capital finance unit: Martin Chin has joined as senior vice president and Brent Phillips was hired as vice president. … Union Bank, a subsidiary of San Francisco’s UnionBanCal Corp., has hired Joe Soto as community lending sales manager for the L.A. region.

Staff reporter Richard Clough can be reached at rclough@labusinessjournal.com or at (323) 549-5225, ext. 251.

"LAX reports significant passenger traffic rise in April"- Daily Breeze

Los Angeles Works — Thu, 26 May 2011 12:00:AM PST

LAX reports significant passenger traffic rise in April

By Art Marroquin Staff Writer
Posted: 05/26/2011 06:16:40 PM PDT
Updated: 05/26/2011 06:24:35 PM PDT

As the summer travel season gears up, Los Angeles International Airport reported significant gains in passenger traffic last month, according to figures released Thursday.

More than 5 million travelers passed through LAX in April, a 7.2 percent increase from the same period last year, airport officials said.

Nearly 3.7 million of those airline passengers boarded domestic flights last month, a 7 percent jump from April 2010. Additionally, more than 1.3 million travelers boarded international flights last month, a 7.6 percent hike from a year earlier.

Year-over-year figures show that more than 18.7 million airline passengers have traveled through LAX during the first four months of 2011, a 3.8 percent increase from the same period last year.

Despite the gains in passenger traffic, airport officials reported a 6 percent decline in the amount of freight and mail passing through LAX in April. Overall, LAX has reported a relatively flat 1 percent decrease in air cargo during the first four months of 2011 compared to the same period last year.

"Online Advertising Company WebVisible Moves to Los Angeles"- LA Business Journal

Los Angeles Works — Thu, 26 May 2011 12:00:AM PST

Online Advertising Company WebVisible Moves to Los Angeles

By Deborah Crowe Thursday, May 26, 2011

WebVisible Inc., which sells subscription-based software that helps small- and medium-sized businesses place online advertising, announced it had completed the relocation of its headquarters from Irvine to the Electronics Arts Campus in Playa Vista.

The venture-backed company has 96 employees in the United States, nearly all of them based here, plus 21 more employees in Mumbai, India. In February 2010, it closed a $20 million C series financing round led by Focus Ventures, Adams Street Partners, Redpoint Ventures and Sutter Hill Ventures, according industry tracker Xconomy Inc.

"This campus environment (at EA) sets the right tone for us -- open, collaborative and creative," Chief Executive Ron Burr said in a statement. "We've been re-energized as a company and we're excited about where we're going. We work hard together and we play hard together.”

WebVisible said it has provided local online marketing software and services since 2001, and was among first to pioneer the use of keyword search to link advertisers with potential customers. It said it has served more than 100,000 customers from 4,000 industries in 14 countries over the years, and plans to release products this summer to enable local businesses to take control of their reputation online and promote themselves on social networks such as Twitter and Yelp

"Wilshire Grand to Close Dec. 31"- LA Downtown News

Los Angeles Works — Wed, 25 May 2011 12:00:AM PST

Wilshire Grand to Close Dec. 31

The Wilshire Grand opened Aug. 6, 1952. Its last day in business will be Dec. 31, 2011. Photo by Gary Leonard.

Razing of Property for $1.1 Billion Project to Begin Next Year

Published: Wednesday, May 25, 2011 5:17 PM PDT

DOWNTOWN LOS ANGELES – Anyone hoping to stay in the Wilshire Grand hotel had better make reservations in the next few months. S. Chris Park, vice president and general manager of the Financial District facility, today announced that the hotel will shutter on Dec. 31.

The hotel on the northwest corner of Seventh and Figueroa streets is slated to be razed to make way for a $1.1 billion, two-tower hotel, condominium and office project. Earlier this year, hotel owner Korean Air and its development partner, Downtown-based Thomas Properties Group, secured the approvals for the new project.

Officials expect to begin tearing down the 59-year-old structure early next year. The first element to rise will be a 45-story tower holding 650 hotel rooms, with some condominiums on the upper floors. It is slated to open in 2015. A second 65-floor edifice, an office tower, will follow when the office market improves.

According to a statement from the Wilshire Grand, the existing hotel received its building permit on May 22, 1950, and groundbreaking on the $15 million project took place in July of that year. The facility opened on Aug. 6, 1952 as the Hotel Statler. In later years it was the Statler Hilton and an Omni Los Angeles.

"L.A. rises to No. 2 destination in U.S. for overseas visitors"- LA Times

Los Angeles Works — Wed, 25 May 2011 12:00:AM PST

L.A. rises to No. 2 destination in U.S. for overseas visitors

L.A. had a 33% increase in the coveted bigger-spending travelers last year compared with 2009, putting it ahead of Miami and behind New York.

By Hugo Martín, Los Angeles Times

May 25, 2011

Los Angeles has overtaken Miami as the U.S. city with the second-highest number of overseas visitors, behind only New York.

The latest statistics from the U.S. Office of Travel and Tourism Industries show Los Angeles had a 33% increase in overseas visitors in 2010 compared with 2009. The number of such visitors to Miami increased 17% in the same period.

Overseas visitors are highly coveted in the tourism industry because they tend to stay longer and spend more. The average overseas visitor to California spends about $1,166 per trip, compared with a visitor from Mexico who spends $909 per visit, according to the California Travel & Tourism Commission.

Los Angeles hosted 3.3 million overseas visitors last year, compared with New York's 8.5 million and Miami's 3.1 million, the federal agency said in a report released Monday. Orlando, Fla., had 2.7 million, and San Francisco came in fifth, with 2.6 million.

As a state, California ranked third with 5.6 million overseas visitors in 2010, behind New York with 8.6 million and Florida with 5.8 million, according to the federal agency.

In a separate report, the travel and tourism industries office said international travel to the U.S. was on the rebound and predicted it would grow 49% by 2016, with the greatest rate of growth coming from China.

In 2016, the agency expects about 2.7 million Chinese tourists to visit the U.S., a 232% increase over the 802,000 Chinese visitors last year. Other countries that will generate huge increases in visitors to the U.S. include Brazil, Australia and South Korea, according to the federal agency.

Still, the largest share of visitors to the U.S. will come from Canada and Mexico, with a combined 14.7 million visitors by 2016.

"On Location: Film activity in L.A. rose 6% last week"- LA Times

Los Angeles Works — Tue, 24 May 2011 12:00:AM PST

On Location: Film activity in L.A. rose 6% last week

May 24, 2011 | 8:53 pm

A surge in TV activity produced a 6% rise in overall on-location shoots in the Los Angeles area last week.

Such TV programs as "Entourage," "The Closer" and "Sons of Anarchy" generated 300 production days -- or two-thirds of overall production activity -- up a whopping 41% over a year ago, according to the latest data from FilmL.A. Inc., the nonprofit group that handles film permits in the city and many unincorporated areas of the county. It marked the fourth consecutive week of growth in the TV category.

Commercial shoots, on the other hand, had an abysmal week, generating only 86 production days, a 38% decline from the same period a year ago. Commercial production has been mostly down this quarter.

After two weeks of gains, on-location shoots for features dropped 5%, accounting for 113 production days.

This week "American Idol" is filming downtown, the HBO vampire series "True Blood" plants its stake in northeast L.A. County and Wal-Mart will be in Pasadena for a commercial spot. Over in Placerita Canyon, Seth Rogen and crew will filming the Paramount Pictures movie "My Mother's Curse."

-- Richard Verrier

"On Location: ABC's 'Body of Proof' TV drama moving to L.A. from Rhode Island"- LA Times

Los Angeles Works — Mon, 23 May 2011 12:00:AM PST

On Location: ABC's 'Body of Proof' TV drama moving to L.A. from Rhode Island

May 23, 2011 | 11:57am

In a coup for local film production, ABC is moving its high-rated TV drama "Body of Proof" to Los Angeles from Rhode Island.

The new crime drama starring Dana Delany and Jeri Ryan filmed its first season in Providence, R.I., but uncertainty surrounding the small state's film tax credit program put California in play. Gov. Lincoln Chafee has recommended dismantling the state film tax credit program to balance the state's budget.

ABC received approval for a $7-million tax credit for "Body of Proof" in March, said Amy Lemisch, director of the California Film Commission. The production has a crew of about 200 people.

"They have indicated they are moving the show and will start filming in Los Angeles in mid- to late July," Lemisch said. "It's a huge deal for us and another example of how our tax credit program is increasing production."

ABC representatives were not immediately available for comment.

The move marks the highest-profile TV series to date to relocate to L.A. since California enacted a film tax credit program in 2009 aimed at curbing runaway production.

The law was adopted partly in response to the outcry in Hollywood over ABC's decision to move the sitcom "Ugly Betty" from L.A. to New York in 2008 to take advantage of that state's tax credits. The show has since been canceled.

Since 2009, the state tax credit program has approved 125 projects accounting for $2.2 billion in production spending and $760 million in wages, state officials say.

The program, which excludes movies costing more than $75 million, has mostly benefited lower-budget films and new cable shows but has attracted relatively few TV series to California from another state or country.

Other TV shows that have relocated include "Torchwood," the BBC America sci-fi series that moved to L.A. from Wales earlier this year, after receiving approval for a California production tax credit. Comedy Central's "Important Things With Demetri Martin" came to L.A. from New York after receiving approval for a California tax credit in 2009.

Network TV series like "Body of Proof" can qualify for California's film tax program only if they are moving to California from another location.

"Body of Proof" finished as TV’s most-watched new show for the 2010-11 season and on average qualified as ABC’s most-watched series during Tuesday’s 10 o'clock hour, according to the network.

In 2009, ABC moved production of "All My Children" to L.A. from New York to take advantage of lower production costs. ABC recently announced it was canceling the long-running soap.

-- Richard Verrier

Photo: ?????Dana Delany stars in the ABC TV series "Body of Proof." Credit: John Clifford / ABC

"California's unemployment rate dips to 11.9% as state adds 8,900 jobs"- LA Times

Los Angeles Works — Fri, 20 May 2011 12:00:AM PST

California's unemployment rate dips to 11.9% as state adds 8,900 jobs

May 20, 2011 | 7:45 am

California’s unemployment rate ticked down to 11.9% in April after the state added 8,900 jobs, a relatively small number in a state still suffering from the Great Recession.

The job gains are disappointing in light of U.S. employment figures, released earlier this month, that showed that the nation gained 244,000 jobs in April. California should have about a tenth of those gains if it is keeping track with the national recovery. The state needs to add about 12,500 jobs a month just to keep up with new entrants to the labor force.

The unemployment rate in April 2010 was 12.4% and the state has added 144,200 jobs since then.

California still has the second-highest unemployment rate in the nation, after Nevada, at 12.5%, according to figures released Friday from the Bureau of Labor Statistics.

Observers say the state's recovery is still unfolding in fits and starts.

“Its kind of a mixed bag. A lot of our regular customers have slowed down a little bit,” said Mara Klug, a regional vice president at staffing firm Adecco. As consumer confidence waned following the disaster in Japan, some companies slowed hiring, she said.

The state gained jobs in manufacturing, trade, transportation and utilities, education and health services, and leisure and hospitality. It lost jobs in construction and financial activities.

The unemployment rate in Los Angeles fell to 12.1% in April, from 12.3% the month before.

The job market is still tough for people like Venah Ervin of Inglewood, even though he has a degree in chemistry and a wealth of experience. He’s nearly at the end of his savings, and finds he has to be choosy about interviews because gas prices are so high. At the end of his rope, he’s thinking about getting training as a security guard and abandoning his search for a job as a lab tech.
“I want a permanent job,” he said. “But it’s really rough out there.”

-- Alana Semuels

"BYD EV Pilot Program Proving Successful for the Housing Authority of the City of Los Angeles (HACLA)"- Electric Vehicle News

Los Angeles Works — Fri, 20 May 2011 12:00:AM PST

BYD Announces EV Fleet Results at Anniversary of Green-Taxi Project

Today marks the one year anniversary of the world’s largest all-electric vehicle Taxi fleet, manufactured by BYD. In conjunction with this anniversary, BYD announced results of several of its electric vehicle pilots – the F3DM, e6 and eBUS-12 which are in fleet testing across the world. Fifty of BYD’s e6, five-seat crossover vehicles, each with a range of over 160 miles (up to 300 Km) and a top speed of 88 mph (140km/h), have been in service at Shenzhen-based Pengcheng Electric Taxi Company since April 29, 2010.

The Shenzhen e6 Taxi fleet has now accumulated ~1,730,000 all-electric miles (or 2.77 million kilometers). The distance traveled for single fleet vehicles has reached ~63,000 miles each (>100,000 km). “This fleet of 50 e6 taxis has survived the very harsh operating conditions of hot Shenzhen summers and a very cold winter this year, and drivers and passengers alike have been extremely satisfied with their ride experience,” according to Stella Li, Senior Vice President. 250 more eTaxis are being delivered to the International University in Shenzhen before August this year. According to collected data, the per-car-fuel-savings is over $1167 per-Taxi-per-month (driving an average of 400Km per day). BYD’s all-electric Taxis are expected to help Shenzhen avoid about 133 lbs (or 60.4Kg) of carbon-dioxide pollution per day per Taxi. This is an equivalent of 2,425,060 lbs (or 1.1M kg) of carbon-dioxide pollution saved by this fleet in the first year.

The most important finding in the e6 fleet testing was that there has been no noticeable energy drop – both driving range and battery performance has been stable in rapid-charging conditions over the 1.73M miles tested – a breakthrough in EV rapid-charging. BYD has been challenged by the media about its claims of long-range electric vehicles and superior battery longevity in rapid-charging regimes since launching its first dual-mode, electric and plug-in-hybrid electric vehicles in December 2008. With the results of the e6 fleet, which was continuously rapid charged in 20- 30 minutes, BYD now has a proven track record for its Iron-Phosphate battery technology. The data is there to show vehicle charging efficiencies, consumption efficiencies, and EV ranges over time-- all with rapid-charging regimes.

BYD also reported on its F3DM fleet which BYD launched in its first US tests at the Housing Authority of Los Angeles (HACLA). The F3DM can travel over 40 miles all-electric but can be engaged to act as a Hybrid-Electric (HEV) to extend its range up to 300 miles. The HACLA fleet has now accumulated ~10,430 miles all-electric and 14,430 total miles (4,000 fuel-driven miles when extended range was necessary). The fleet is achieving an equivalent of 88 mpg and BYD estimates the per-car-savings---even netting out EV charging and electricity costs-- is ~70%. BYD’s dual-mode cars are expected to save HACLA about 37 lbs of carbon-dioxide per-day-per-auto when driven to the EV range.

In China, BYD launched an all-electric bus fleet with the eBUS-12 (click for video link) in Shenzhen and Changsha, China in January 2011. These fleets have already accumulated 28,802 all-electric miles (46,380 Km) while undergoing a 3-hour-charge of the 324 Kwh FE battery. An example of the per-eBUS-savings for Shenzhen’s Bus Line 202 (driving only 200Km per day) is about $2833 monthly per eBUS. 300 more buses will be delivered to Shenzhen in August of this year. BYD’s all-electric eBUSes save about 708 lbs (or 322Kg) in carbon-dioxide emissions per eBUS per day.

In total, BYD EVs have accumulated over 1.769 million all-electric miles and have seen no diminished range or capacity due to rapid-charging. BYD vehicles are estimated to have already saved $360,000 in fuel costs and over 2.776 million lbs of carbon-dioxide. BYD launched consumer sales of the F3DM in September 2010 and anticipates very good demand for the BYD e6 and all electric vehicles in China, fueled in part by government incentives for the purchase of electric vehicles. “Consumers that purchase pure electric vehicles will also enjoy the special privilege of "license-plate-lottery-free, no traffic restrictions and tax-free exemptions (paid by the government)."

"On Location: Film commissioners and producers team up for conference"- LA Times

Los Angeles Works — Tue, 17 May 2011 12:00:AM PST

On Location: Film commissioners and producers team up for conference

May 17, 2011 | 1:26 pm

Each year, hundreds of film commissioners worldwide -- from Serbia to South Africa and Michigan to Morocco -- descend on Santa Monica, pitching their locales with an assortment of tax breaks and other incentives designed to entice filmmakers.

This year, however, the International Assn. of Film Commissioners will for the first time join with the Producers Guild of America in holding one major event at Walt Disney Studios in Burbank in recognition of the increasingly global nature of the movie business.

Seeking to broaden the scope of its third annual “Produced By Conference,” the Producers Guild invited film commissioners to co-host the June 3-5 gathering so that its 4,500-plus members could glean information about the growing number of film tax credits available around the world.

Filmmakers are ever more reliant on tax credits to get their movies made, especially at a time when financing is harder to secure and studios are making fewer overall deals with producers and cutting back on the number of movies they release.

“The difference between getting your film made or putting a script back on the shelf is often the tax incentive and rebate money,” said PGA member and producer Gale Anne Hurd, who is co-chair of the conference. “Producers are constantly in need of up-to-date information on where the credits are stable, which ones are disappearing or are being reduced.”

The alliance between the groups may seem unusual, given how many producers have bemoaned the flight of production from California. After all, the Producers Guild was among the groups that supported California's move in 2009 to enact film tax credits that would curb runaway production. But organizers say the partnership between producers and film commissioners is mutually beneficial and a sign of the times.

“We wish it were easier to make films in Los Angeles and we're very concerned about the extent to which production has left L.A.,'' said film producer Marshall Herskovitz, another co-chair of the conference. “Nevertheless, we have to deal with the world as it is. Films are made all over the U.S. and the world right now, so there's no reason for us not to provide those opportunities to our members.”

More than 200 exhibitor booths representing film commissioners will be at the conference, from countries, states and territories that boast about $2 billion in available tax credits and other financial incentives, organizers say.

For their part, many of the film commissioners are looking to expand their outreach to producers, for example, by getting involved in co-financing movies. “It allows us to talk directly with the people we’d be making partnerships with,” said Martin Cuff, interim chief executive of the film commissioners group, of the conference. “Film commissions are no longer just passive recipients of production work.”

The conference will include a program called “On the Ground With,” billed as a series of “candid conversations” between producers and film commissioners to highlight their experiences while shooting in a specific location.

In addition, the Producers Guild also organized a competition, selecting 10 filmmakers from the U.S., Canada, Spain, South Korea and Australia to participate in one-on-one meetings with studio executives, financiers and film commissioners at the conference.

Herskovitz, who hatched the idea for the competition, hopes it will result in actual movies being made.

“We’re hoping to build this into a real film market," he said.

-- Richard Verrier

"Trade at L.A., Long Beach ports in April up 6.3%"- LA Times

Los Angeles Works — Sat, 14 May 2011 12:00:AM PST

Trade at L.A., Long Beach ports in April up 6.3%

The nation's largest seaport complex handled more cargo containers for the 15th straight month, but trade-related jobs haven't grown as fast.

A Long Beach port crane operator loads containers aboard a container ship. In April, the number of import containers moving through the port rose 12% to 270,107, compared with the same month last year. Exports jumped 10.4% to 143,683 containers. (Allen J. Schaben, Los Angeles Times)

By Ronald D. White, Los Angeles Times

May 14, 2011

International trade at the ports of Los Angeles and Long Beach improved by more than 6% in April, compared with the same month a year ago, but the pace of growth slowed.

April was the 15th straight month of growth at the nation's largest seaport complex. Trade-related jobs improved as well, but at a much slower pace.

The twin ports handle more than 40% of the nation's imports from Asia, making them an important barometer for the U.S. economy and an important driver of jobs in wholesale trade, transportation and warehousing.

Although seaport trade has increased almost 8% so far in 2011, trade jobs are up just 0.7% in Southern California and 2.8% statewide.

"Employers are still being very cautious. As trade volumes have picked up they are getting more out of the people they already have, and they are hiring temporary workers who do not show up in the full-time employment figures," said John Husing, founder and head of Redlands-based Economics and Politics Inc., which tracks international trade and provided the trade jobs numbers.

In Los Angeles, Orange, San Bernardino, Riverside and Ventura counties, the most recent trade-related employment statistics, from March, showed a growth of 4,100 jobs to 564,833, a gain of about 0.7%, compared with the same month in 2010, Husing said.

Statewide, there were 1,062,800 people in international trade jobs in March, up 29,400, or 2.8%, compared with the same month last year, he said.

Experts who track international trade through the nation's biggest seaports expect trade nationwide to level off until summer, when it is expected to show another spurt as goods are shipped for the end-of-the-year holiday season.

"After nearly a year and a half of volume increases, it's not surprising to see some leveling off," said Jonathan Gold, vice president for supply chain and customs policy for the National Retail Federation, a group that tracks trade volumes at all major U.S. seaports. "But overall consumer demand for retail goods remains strong."

In April, the Port of Los Angeles handled 312,360 cargo containers carrying imports, up 3.4% from the same month a year earlier. Export containers through the port climbed 5.8% to 167,448.

Through the first four months of the year, traffic at the nation's busiest port increased 8.5% to 2.4 million containers.

At the neighboring Port of Long Beach, which ranks second only to Los Angeles in container trade nationwide, the number of import containers rose 12% to 270,107 in April. Exports through Long Beach jumped 10.4% to 143,683 containers.

Combined, 1.1 million containers moved through the ports in April, up 6.3% from the same month a year earlier. Traffic at the two ports through the first four months of 2011 has increased 7.9%, to 4.3 million containers.

"Big building project planned around Capitol Records Tower"- LA Times

Los Angeles Works — Sat, 14 May 2011 12:00:AM PST

Big building project planned around Capitol Records Tower

Owners of the tower are seeking approval for Millennium Hollywood, a 1-million-square-foot project including two skyscrapers that would be mostly residential but would also have a hotel, offices, restaurants and stores.

By Roger Vincent, Los Angeles Times

May 14, 2011

After going mostly on hiatus during the economic downturn, Hollywood is poised to debut a major development project around the famed Capitol Records Tower near Hollywood and Vine.

The owners of the Capitol Records building on Vine Street are seeking approval to build 1 million square feet of structures, including two skyscrapers, surrounding the famous cylindrical office tower resembling a stack of record discs. The mixed-use complex could be valued at as much as $1 billion.

The Millennium Hollywood project, proposed by developers Millennium Partners and Argent Ventures, would be primarily residential, but also have a hotel, offices, restaurants and stores. It would be built on the Capitol Records parking lot and another parking lot across Vine Street.

The New York developers bought the 13-story Capitol Records Tower in 2006 and the parking lot across Vine Street next to the Avalon theater in 2007. They shelved plans to develop the properties when the economy collapsed but are restarting the approval process, which they expect to last 18 months or more.

Millennium Hollywood's appearance and uses would be influenced by the review process, the developers said, but they hope to build a large-scale complex that would change the dynamic of the neighborhood.

"Hollywood is right on the edge of being restored to the glamour, identity and charm it had in the 1930s and '40s," said Philip Aarons, founding partner of Millennium. "It needs the power of a project that can make people think about it differently."

Millennium Hollywood would be the largest real estate development in the neighborhood's renaissance kicked off with the completion of the $615-million Hollywood and Highland entertainment, shopping and hotel complex in 2001.

Millions more were spent in the area on apartments, condominiums, theaters, nightclubs and restaurants before the recession brought most construction to a standstill. The long-planned $600-million W Hotel complex at the southeast corner of Hollywood Boulevard and Vine finally opened in early 2010. It included condominiums, apartments, restaurants and a Trader Joe's grocery store.

"Hollywood is one of the ascendant markets today," real estate broker Christopher Bonbright said. Most office buildings are leased and the apartment market is "quite strong and gentrifying," he said. Major national retailers and casual dining chains are looking for spaces to occupy in Hollywood.

Millennium Hollywood would take about three years to build if the city approves it, Aarons said. Buildings on the 4.5-acre site would be situated to preserve views of Capitol Records Tower, which music giant EMI Group rents for the offices of its Capitol Records label.

The historic tower, completed in 1956, also houses the famous Capitol Studios, where generations of artists including Capitol label co-founder Johnny Mercer, Nat King Cole, Frank Sinatra and the Beach Boys recorded music.

Millennium Hollywood would not endanger the studio, Aarons said. "We bought the Capitol building and made it a historical monument. We want to preserve its use as an entertainment headquarters."

Concern for the studio was raised by a nearby planned project for the southwest corner of Yucca Street and Argyle Avenue. In 2008 the city approved a 16-story residential tower for the site and EMI executives expressed fears that the construction of its underground garage might disturb or damage Capitol's underground echo chambers, designed by guitarist Les Paul.

That project didn't get built, and the Yucca and Argyle property — a former grocery store that for many years was the home of radio station KFWB — is back on the market, said Bonbright, of Ramsey-Shilling Commercial Real Estate.

Another developer, Clarett Group, plans to build a 1,000-unit apartment and retail complex called Blvd 6200 nearby on Hollywood Boulevard between Argyle and El Centro avenues, close to the Pantages Theatre. Meanwhile, work is expected to begin soon on a $57-million, eight-story office building at 1601 Vine Street, a site long occupied by Molly's Hamburgers, a walk-up lunch counter with 20 stools.

Much of Millennium Hollywood's mass would be concentrated in two towers housing residences and a hotel. In preliminary plans, the tallest tower is 48 stories, which would put it among the highest buildings in Los Angeles.

Millennium Hollywood would include public space such as an open walkway that could stretch from the grounds of the Little Country Church of Hollywood on Argyle west to Ivar Avenue.

"We want significant public spaces," architect Gary Handel said.

His preliminary designs call for a hotel with as many as 250 rooms and 300 to 600 residences, with the mix of condos and apartments to be determined by demand. There would be up to 150,000 square feet of offices and 100,000 square feet of retail space to include a sports club and restaurants.

Millennium Partners has built large-scale projects in New York, San Francisco, Boston and other cities. Its San Francisco properties include the Four Seasons Hotel & Residences and the 60-story Millennium Tower.

"L.A., Long Beach ports bet on bigger cranes"- LA Times

Los Angeles Works — Sat, 14 May 2011 12:00:AM PST

L.A., Long Beach ports bet on bigger cranes

The seaports gamble that giant $11-million cranes will help keep ever-expanding cargo vessels docking at their terminals.

Hal Burkey, Long Beach Container Terminal maintenance and repair manager, watches a crane operator load containers onto the Orient Overseas Container Line Tianjin of Hong Kong. (Allen J. Schaben, Los Angeles Times / May 5, 2011)

By Ronald D. White, Los Angeles Times

May 14, 2011

Ricky Ponce spends his days moving controls that look like toy joysticks, but his job is one of the most dangerous games around: lifting multi-ton cargo containers and lowering them onto trucks as gently as setting grocery bags on a kitchen counter.

Ponce works in a tiny, trolley-mounted cabin, hanging about 140 feet off the ground, running one of the Port of Long Beach's new breed of supersized ship-to-shore cranes. Called super post-Panamax cranes, after the huge ships they are designed to unload, the machines soar 15 stories above the wharves and can reach to the far side of the bulging vessels, which are nearly twice as wide as the Panama Canal.

Ocean shipping lines keep ordering bigger and bigger ships as they try to grab business from one another. At the ports of Los Angeles and Long Beach, the nation's biggest shipping complex, that means buying bigger and bigger cranes.

"We'll run them 16 hours a day on two shifts, five cranes to a ship," said Charles W. Doucette, general manager for terminal operations at the Long Beach Container Terminal. More than half of the cranes at the twin ports are these towering machines.

Cranes are among the most basic of a seaport's heavy machinery. But they also represent an expensive gamble, costing as much as $11 million apiece, that requires cargo terminal operators to predict the state of the international shipping industry 10 to 20 years into the future, and what kind of crane they will need to load and unload ships that haven't been built yet.

The Long Beach Container Terminal's three biggest cranes can reach across a ship wide enough to carry a row of 22 cargo containers, or about 210 feet. When the cranes were built in 2005, they looked like overkill; ships that wide weren't even on the drawing boards. Now, 22-container-wide ships are common.

The stakes in terms of jobs are enormous, not just at the ports but also for the trucking companies and railroads that serve them, and the warehouse and distribution centers that handle the goods. Guessing wrong — by betting on cranes with a reach that is too short — would cause enormous loading and unloading delays. Ships would have to be undocked, turned around by tugboats and redocked to service the other side of the vessel, Doucette said.

That would make it far more likely a shipping line would avoid seaports that don't have enough giant cranes, taking those international trade jobs elsewhere.

"This is an industry that is constantly moving toward bigger and better and faster. So, we just moved ahead with where we thought the industry was headed," Doucette said. "It was a good guess. In 10 years, even the smaller ships are going to be 22 containers wide."

For the guy working the crane, "it can be stressful," said Ponce, 52. "You have to come to work concentrating only on what you are about to do. You can't have anything else on your mind or else you're going to make a mistake."

Now, the ocean freight industry is making another leap forward. An expanded Panama Canal, set to open in 2014, is said to be capable of handling even larger ships. That could allow some vessels that normally stop in Los Angeles and Long Beach to go directly to Gulf Coast and East Coast ports.

Ports around the U.S. will be scrambling to dredge channels deep enough to accommodate the new giants when they arrive and to acquire cranes big enough to service them. Cranes like the ones at the Long Beach Container Terminal weigh several thousand tons and are delivered on the decks of supertankers.

Los Angeles and Long Beach officials said they are ready for ships they don't expect to see calling at the ports for several years.

In coming years, the Long Beach Container Terminal will move into a new facility at the Port of Long Beach's billion-dollar Middle Harbor project. And soon after that, it will be time to place bets "on the next big gamble on the crane sizes of the future," Doucette said.

"Who knows how wide those ships will be? Will they be 23 containers across? Will they be 27 across?" he said. "Whatever it is, we'll order the specifications based on that, and hope for the best."

"Hiring Sees A Surge"- Daily News

Los Angeles Works — Fri, 13 May 2011 12:00:AM PST

Hiring Sees A Surge

By The Associated Press

Posted: 05/13/2011 12:00:00 AM PDT

The best hiring market in five years should limit the damage from inflation and position the economy to thrive in the second half of the year.

Higher food and gas prices are threatening to slow growth this spring. But economists say the drag from inflation will likely be only temporary. Commodity prices are easing. Gas prices could follow in the weeks ahead.

"We are going to see the economy picking up steam," said Joel Naroff of Naroff Economic Advisors, who is among many economists who think gas prices will taper off. "Lower energy prices will give consumers more confidence to spend, and higher consumer spending will give businesses more confidence to hire and invest."

Surging prices for necessities, like gas and food, were the main reason why sales at U.S. retailers rose 0.5 percent in April. It was the 10th straight monthly gain. But excluding sales at gas stations, the increase was a slighter 0.2 percent, the Commerce Department said. And grocery store sales rose at triple the rate from March.

Economists have expressed concerns that those higher prices could leave consumers with less money to spend on discretionary goods and services, like cars and clothing, furniture and vacations. Those are the kinds of spending that help power the economy and embolden employers to hire.

But businesses felt confident enough in April to add 268,000 net jobs. It was the biggest monthly hiring gain in five years. Over the past three months, companies have added an average of 250,000 jobs a month - the best hiring stretch since a year before the recession began.

And the number of people seeking unemployment benefits dropped last week after a temporary spike in April, the Labor Department said Thursday.

Businesses will keep adding roughly 200,000 jobs a month for the rest of the year, economists predict. That should slowly reduce the 9 percent unemployment rate and put more money in consumers' pockets, on top of a cut in workers' Social Security tax that took effect in January.

Companies did pay more in April for raw materials and factory goods. That was mainly because energy prices jumped for the seventh straight month.

The Labor Department said its producer price index, which measures prices before they reach consumers, has risen 6.8 percent in the past 12 months. It's the sharpest increase in nearly three years. But putting aside volatile food and energy prices, "core" wholesale prices have risen only 2.1 percent.

There have been signs of relief. Commodity prices have dropped in recent days, hinting that inflationary pressures could cool in the coming months.

Oil prices ticked up slightly Thursday to near $99 a barrel. But that's still down from nearly $114 a barrel last week. Corn prices fell sharply Wednesday and were little changed on Thursday.

Paul Dales, an economist at Capital Economics, said the wholesale price index could peak this spring at 8 percent over 12 months.

"Forecast: Economy Rosier for L.A. County"- LA Business Journal

Los Angeles Works — Thu, 12 May 2011 12:00:AM PST

Forecast: Economy Rosier for L.A. County

By Howard Fine Thursday, May 12, 2011

L.A. County’s economic recovery will pick up steam over the next 18 months as the county sees a gain of 41,000 payroll jobs this year and another 63,000 jobs next year, according to a forecast released Thursday morning from California State University Long Beach.

With the exception of government, every major employment sector will see improvement this year and next, according to forecast authors Joseph Magaddino and Lisa Grobar. The most robust growth will be in entertainment, business and professional services, healthcare and education services. Entertainment-related employment is expected to grow 5 percent this year, following a whopping 12 percent growth last year.

Other areas like wholesale and retail trade will see slower growth, while manufacturing employment is expected to be flat over the next two years.

The improving jobs situation is expected to lead to a rebound in taxable retail sales, with a growth rate of 6.6 percent this year. That’s good news for local government coffers, which have endured three years of tumbling revenues.

"Calif. exports in March up for 17th straight month"- Sacramento Bee

Los Angeles Works — Wed, 11 May 2011 12:00:AM PST

Calif. exports in March up for 17th straight month

The Associated Press

Published Wednesday, May. 11, 2011

SACRAMENTO, Calif. -- California's exports grew for the 17th consecutive month in March, with nearly $14 billion worth of shipments leaving the state.

A report released Wednesday by Beacon Economics says the increase of 12.8 percent from March 2010 likely would have been even larger if not for the earthquake and tsunami that devastated parts of Japan.

The trade numbers for March were even higher than inflation-adjusted exports during the dot-com boom, Beacon says. The gradual economic recovery, the lowest value for the U.S. dollar in almost 40 years and stabilizing oil prices are helping drive the trend.

Barring an unexpected global disruption, Beacon expects trade to keep growing through the summer.

"To lure more tourism, city to charge tourists more to stay here"- Daily News

Los Angeles Works — Tue, 10 May 2011 12:00:AM PST

To lure more tourism, city to charge tourists more to stay here

By Rick Orlov, Staff Writer

Posted: 05/10/2011 07:01:44 PM PDT

Updated: 05/10/2011 07:03:20 PM PDT

Concerned that it's being outspent by other destinations, Los Angeles plans to boost its marketing efforts to lure more tourism-related business to local landmarks and hotels.

How will the city pay for it? By charging tourists more to stay here.

The City Council voted 12-0 Tuesday to add an assessment that will increase the hotel bed tax from its current 14 percent to 15.5 percent. The charge will apply to guests at the 157 hotels in Los Angeles with more than 50 beds.

"We have been losing out to the other cities and this is an investment in our No. 1 industry - tourism," said Councilwoman Janice Hahn. "This will not only help fill hotels, it will put more people at work."

Hahn estimated the assessment will generate $30 million a year to supplement the $18 million now being spent on advertising.

"We have a great story to tell, but we are being outspent by other cities," Hahn said. "We are spending $18 million a year. Cities like San Diego and San Francisco are far outspending us. Las Vegas spends $94 million a year in advertising."

Mark Lieberman, president of L.A. Inc., the nonprofit that promotes local tourism and convention business, said it is designed to highlight all areas of the city.

"We have so much here to attract visitors, that we are very fortunate," Lieberman said. "We want to provide information to the world about the different neighborhoods in the city and what it can offer."

According to L.A. Inc., Boston has the nation's highest bed tax at 17.45. Hotel guests pay 17 percent in Anaheim, 16.89 percent in Chicago, 16.6 percent in Seattle and 16.52 percent in New York City.

In California, San Francisco's tax is 15.5 percent and San Diego's, 12.5 percent.

Council President Eric Garcetti said the tourism industry is one of the cornerstones of the local economy.

"Trade, tourism and technology are the key parts of our economy," Garcetti said. "Even in the midst of the recession, the one bright spot has been tourism.

"With the improvements made at L.A. Live, we are getting more conventions, moving from 30th in the country to 15th," Garcetti said. "But we have been caught with a lack of resources that this will fix. We are in a competitive world and this will help us get our message out."

Lieberman said he has been working with advertising agencies to come up with an overall proposal for the city.

"On location: Barbra Streisand and Seth Rogen bring some comic relief to L.A. production scene"- LA Times

Los Angeles Works — Tue, 10 May 2011 12:00:AM PST

On location: Barbra Streisand and Seth Rogen bring some comic relief to L.A. production scene

May 10, 2011 | 10:34 am

Credit Barbra Streisand and comedian Seth Rogen for helping spur a long-overdue boost in local film activity.

On-location shooting of feature films in Los Angeles -- which occurs on streets and noncertified soundstages -- rose nearly 50% last week over the same period a year ago, accounting for 97 production days, according to the latest permit data from FilmLA Inc.

The increase marked the first time in six weeks that on-location feature film production has actually increased in Los Angeles, which faces stiff competition from other cities vying for the business.

One reason for the upswing was the filming of "My Mother's Curse," a new comedy starring Streisand and Rogen about an inventor and his mother. The Paramount Pictures movie, which began shooting in the second week of April and received a state film tax credit, has been filming in various locations downtown and in Woodland Hills.

Also contributing to the increased activity is a new feature film, "Nobody Walks," starring "The Office's" John Krasinski. The picture has been filming at a private residence and other locations in the Sherman Oaks area.

Feature films generated 880 production days in the first quarter of 2011, down 5% from the same period a year ago. That included 10 feature films that benefited from the state film tax credit program, which provides a 20% to 25% tax credit on qualified production expenses.

On-location shoots for television also rose last week, climbing 7% over the same week a year ago, while commericial production activity dropped 34%, a third consecutive week of declines. Production across all three categories rose 2%, according to the FilmLA data.

"Major music industry conference returns to Los Angeles"- LA Times

Los Angeles Works — Mon, 09 May 2011 12:00:AM PST

Major music industry conference returns to Los Angeles

The NARM convention, which starts Monday, shows how the industry has shifted its focus on music as a physical commodity to a set of intellectual properties that can be deployed in myriad ways.

By Alex Pham, Los Angeles Times

May 9, 2011

The last time the music industry honchos had their major convention in Los Angeles, Mariah Carey had not yet released her first album and Tower Records still reigned supreme on Sunset Boulevard.

This week, when the National Assn. of Recording Merchandisers hits Los Angeles after 20 years of holding the event elsewhere, the conference will reflect a radically different landscape. U.S. sales of music in the form of vinyl records, CDs and such plunged 50%, from $7.2 billion in 1990 to $3.6 billion in 2010, according to the Recording Industry Assn. of America.

At the same time, digital music sales have gone from zero to $3.2 billion, helping Apple Inc.'s iTunes snatch the title of the country's No. 1 music retailer from Wal-Mart Stores Inc. in 2008.

"Music commerce has evolved," said Jim Donio, president of the recording merchandisers group, or NARM. "We have also."

Gone are words such as "inventory" and "rack jobbing," which referred to the placement of records and CDs on retail shelves. Instead, the hot topics this year are meta tags, mobile applications and cloud, all of which allude to how the industry has shifted its focus on music as a physical commodity to a set of intellectual property rights that can be deployed in myriad ways.

"For the first time in 16 years, you can look forward to a world that's very exciting," said Roger McNamee, a managing partner of Silicon Valley venture firm Elevation Partners, who is slated to give NARM's keynote speech Wednesday. "And everything that is exciting about it is going to be favorable to those who create content."

Musicians and labels can now get paid each time their songs are streamed by an Internet music service, downloaded on iTunes, played as background music in television shows, used as tracks in a video game or loaded in a mobile phone as an incentive to buy the device.

As a result, NARM's conference — which runs Monday through Thursday in Century City — will feature dozens of small music start-ups that wouldn't have made it past the velvet rope of yore, as well as companies that would not have been associated with the music business in the past.

"This year in particular, there are about 100 new companies coming," said Bill Wilson, NARM's director for digital strategy. "Nimbit, Brightcove, Indaba, Rdio, RootMusic, Slacker, Spotify and T-Mobile are some of the new companies you'll see."

One company, Microgen, is a prime example of how the music industry has changed. The British firm, which builds complex computer accounting systems for investment firms, last year established a U.S. office to serve the music industry.

"As people come up with fantastically new ways to monetize music, the business gets more and more complex," said Tom Crawford, a senior vice president of Microgen. "The products are looking like financial instruments. They have multiple cash-flow streams, complex revenue recognition points such as subscriptions, downloads, pay-as-you-go, each with a variety of pricing structures. All of that is looking like the products of an investment bank."

Sound daunting? Don't worry; NARM has lined up an agenda to school its 1,000 expected attendees on this brave new world, with sessions titled Digital Think Tank and Music Business Crash Course.

The conference didn't always involve this much work, Donio said. In fact, the event used to toggle in the 1980s between Los Angeles and Miami, where industry honchos would bring along their families and treat the affair as a vacation. As more music start-ups crop up on the West Coast, the decision to hold the conference in Los Angeles again was based on economics, Donio said.

"This is the place where content and commerce meet," he said.

Some things haven't changed. The event continues to serve as a coming-out platform for promising new artists. In 1990, an unknown Mariah Carey sang a duet with Michael Bolton, electrifying the audience. The following year, Carey won two Grammy Awards for her self-titled debut album. Other singers who have made their debuts at NARM include Taylor Swift and Josh Groban.

This year, Donio expected 15 to 20 performances by brand-new artists. And as with the music start-ups that have signed up for the event, "You never know who's going to be the break-out success."

"AT&T investing heavily in L.A. network"- Daily News

Los Angeles Works — Sat, 07 May 2011 12:00:AM PST

AT&T investing heavily in L.A. network

TECHNOLOGY: Company responds to 4,000 percent increase in cellphone use.

By Dana Bartholomew, Staff Writer

Posted: 05/07/2011 12:55:01 PM PDT

Updated: 05/07/2011 12:57:33 PM PDT

It looks like a parking garage. Packs in cars like a parking garage. But it doubles as a hot-rod cellphone tower.

AT&T's disguised cell site in Woodland Hills is part of the phone giant's $450 million investment in regional wireless and landline services that started in 2008.

The Warner Center site boasts a dozen hidden antennas and is one of 22 wireless "towers" now scattered throughout Woodland Hills, officials said.

This year, the company has upgraded its network software and aims to build at least 40 more cell sites around Los Angeles County to increase capacity, reliability and speed.

"There's been a tremendous surge and strain on the whole network, with a 4,000 percent increase in wireless traffic in the last four years," said Adriana Martinez, an AT&T spokeswoman for Southern California, as she stood atop the garage at Victory Boulevard and Canoga Avenue, joined by other AT&T officials and San Fernando Valley business leaders.

"Here at AT&T, nationally we're investing $19 billion to improve our wireless infrastructure."

Flash back two decades, when a cell tower resembled a 12-point rack of antlers perched atop a cyborg and included a roomful of wall-to-wall amplifiers.

Its highest cellphone capacity, according to regional managers: 35 to 48 calls on a busy day.

By comparison, the new site boasts transformer and circuit boxes the size of two double-wide refrigerators, plus electrical boxes and back-up batteries that translate wireless signals into land-based ones.

Tucked under an open-air aluminum roof, the cell site will soon handle an average 3,000 calls a day, plus a tsunami of video, Internet and other data. It will help accommodate the demand for wireless service that is expected to grow 10-fold over the next few years.

"This is state-of-the-art," said Virgil Chewning, an AT&T manager of network operations for a Los Angeles district stretching deep into the Mojave Desert.

"You remember the old days - one antenna with hundreds of sticks. Really ugly. Instead of omni sticks, now we can put that all in one housing."

To enhance service to its Los Angeles network, the company has installed faster software. With new Ethernet cables, customers can expect download speeds of up to

6 megabytes per second, AT&T officials said, comparable to that experienced in Asia and Europe.

Next year, the company plans to replace that equipment with so-called long-term evolution software for speeds of up to 100 megabytes per second - tantamount to widening the 405 Freeway by more than 90 lanes.

Claims for better speeds and service might counter recent criticism about the performance of AT&T Wireless.

In January, Consumer Reports rated the company dead last in every category of cellphone service and customer support, based on a reader survey conducted last fall. In Los Angeles, AT&T also rated last by a long shot.

However, AT&T, which provides voice and data service in more than 200 countries, cites the magazine Business Traveler for naming it "the best mobile coverage in the world" for the fourth straight year.

While San Fernando Valley residents have fought cell towers in their neighborhoods, business leaders celebrated the enhanced AT&T cell technology.

"Right now, I've got AT&T, and it's just fantastic," said Stuart Waldman, president of the Valley Industry and Commerce Association, whipping out his AT&T smartphone he'd just used on a trip to Washington. "Everyone's got a cellphone. Children have them. Seniors have them.

"I think AT&T has really made an effort to improve its infrastructure and address any concerns that people might have."

Ron Wood, president and CEO of the Valley Economic Alliance, agreed, saying the more cell sites by AT&T, the fewer dead calls.

"They will eliminate that," Wood said. "That's the whole idea."

There are now "several thousand" AT&T cell sites in Los Angeles, company officials said. That doesn't include thousands of cell sites owned by competitors such as Sprint or Verizon.

In March, AT&T announced it would buy the nation's fourth-largest carrier, T-Mobile, for $39 billion. Regulators are expected to spend a year or more scrutinizing the deal before deciding whether to block it or allow it to proceed with substantial conditions.

Company officials said they're committed to providing the best service for Los Angeles residents.

"We're investing in our Woodland Hills network to help AT&T customers take advantage of the numerous capabilities of their smartphones and tablets," said Andy Shibley, AT&T vice president and general manager for the greater L.A. region, in a statement.

"This year, we're committed to providing the best-in- class voice service for our customers, and we're backing that up with the right network enhancements."

"Chinatown Housing Project Breaks Ground"- LA Downtown News

Los Angeles Works — Fri, 06 May 2011 12:00:AM PST

Chinatown Housing Project Breaks Ground

A San Diego developer has broken ground on a 60-unit affordable housing complex, with a mechanical stack parking facility. Rendering by Togawa Smith Martin Residential.

Affordable Housing Complex Includes High-Tech Parking Elevator

by Ryan Vaillancourt, Staff Writer

Published: Friday, May 6, 2011 4:22 PM PDT

DOWNTOWN LOS ANGELES – It’s not every day that a housing development’s most prominent feature is its parking facility, but for a new Chinatown project, the garage really is noteworthy.

Affirmed Housing Group last month broke ground on Lotus Garden, a 60-unit, $24 million affordable housing complex at 715 Yale St. The firm’s first foray in the Los Angeles market, the eight-story project is supported in part by a $4.2 million loan from the Community Redevelopment Agency.

The project helps fill a niche by creating affordable, family-friendly housing. Lotus Garden will serve families earning 30%-60% of Los Angeles County’s median income, with rents ranging from $370 for a studio to $1,236 for a three-bedroom. The building’s water heating system will come from solar-powered, high-efficiency boilers.

The project design, by L.A.-based Togawa Smith Martin Residential, features a rooftop recreation area, a communal barbecue station and group gardening plots. A resident manager will offer “life enrichment classes” and after-school homework assistance for resident children.

While all those elements add to a small residential base in Chinatown, it’s the high-technology parking — known as the “car matrix” — that really makes Lotus Garden stand out. Cars will be housed in a nearly three-level, semi-automated garage that moves vehicles vertically and horizontally to allow for a space-saving stacking effect. Drivers will access their auto from the ground level. The garage will hold 64 vehicles.

“We’ve been interested in trying it out for a number of years,” said Jim Silverwood, president and CEO of the San Diego-based Affirmed Housing. “This is our first opportunity where we saw a real opportunity with a hillside site. We’re able to reduce a whole level of parking because of the efficiency of the car matrix design.”

Lotus Garden is expected to open in the fall of 2012.

"April Job Data Is Strong, but Some Doubt Trend Can Last"- NY Times

Los Angeles Works — Fri, 06 May 2011 12:00:AM PST

April Job Data Is Strong, but Some Doubt Trend Can Last

By CHRISTINE HAUSER

The United States economy added far more jobs than expected in April, but with more than 13 million people still out of work, analysts cautioned that it was too early to say whether the momentum could be sustained for a full recovery in the labor market.

The Labor Department said Friday that 244,000 jobs were added last month after a gain of a revised 221,000 in March. The unemployment rate rose to 9 percent in April from 8.8 percent in March.

“There are yellow warning flags that are popping up,” Joshua Shapiro, the chief United States economist for MFR Inc. “It remains to be seen whether this nascent recovery we are seeing is going to peter out or not.”

As has been the case for several months, all of the increase came from private employers, which added another 268,000 jobs last month, after a revised gain of 231,000 in March, the report said. Results of the previous two months were revised to show another 46,000 jobs were added.

Governments, struggling to balance budgets as they dealt with shrinking revenues and growing deficits, cut 24,000 jobs last month. Most of the drop came at the local level, where 14,000 jobs were lost in April after a decline of 15,000 in March.

April’s numbers exceeded the forecasts of analysts, who had expected a gain of 185,000 jobs over all, with the change in private payrolls of 200,000. The rise in the unemployment rate that came even as employers were adding jobs was an indication that more people were entering the work force as hopes for hiring increased.

While better than expected, Friday’s employment numbers showed that the national economy still had a long way to go to fully recover. Though down from its peak of 10.1 percent in late 2009, April’s unemployment rate reflects only those Americans who are still actively looking for work.

As such, economists said the April jobs report was part of a larger picture of the economy that remained mixed. The rise in the unemployment rate reflects the survey of households, which indicated a 190,000 decline in employment in April. And recent data on initial jobless claims and other employment indicators have been weak.

“Millions of people are unemployed and many have left the labor market and given up,” Mr. Shapiro said. “Against that we are maybe creating 244,000 jobs. That is all well and good but it just shows you how much further we have to go to make a dent into what has happened in the labor market.”

“It gets the basic debate out there about the economy,” he added. “Is all we have seen the product of government stimulus, and are all the problems coming back or not?”

Austan Goolsbee, chairman of President Obama’s Council of Economic Advisers, noted that the economy had added 2.1 million private sector jobs in the last 14 months, including more than 800,000 this year. The last three months of private jobs gains have been the strongest in five years, he said, despite the “headwinds” from higher energy prices and the Japan disaster.

President Obama, speaking in Indianapolis, said the report showed that the economy “can take a hit and still keep on going.”

Mr. Goolsbee added a note of caution. “While the solid pace of employment growth in recent months is encouraging, faster growth is needed to replace the jobs lost in the downturn,” he said.

The latest snapshot covered a period when several indicators pointed to signs of weakness. The American economy grew at a tepid 1.8 percent in the first quarter, according to the government’s estimate for the first quarter. Personal consumption has slowed and construction remains weak, though winter weather was cited as a reason.

Turmoil in the Middle East and North Africa has sent crude oil prices higher, pushing up the cost of gasoline, which in turn has taken a larger share of the money consumers have to spend. Supply disruptions in the aftermath of the earthquake and tsunami in Japan have rippled through American industries, especially the automobile sector where plants have reduced production and idled workers.

John Canally, economist for LPL Financial, said that there was a marked difference between the April report of last year, when the economy was hurt by uncertainty over the oil spill in the Gulf of Mexico and the European debt crisis.

“I think it is a sign that the economic recovery can continue. It is stronger than it was a year ago when we hit a wall,” Mr. Canally said. “This spring it looks like we went right through the wall, despite higher oil prices, and despite the Japan slowdown.”

There were bright spots. Temporary jobs declined as permanent were added, while those in leisure and hospitality were up, meaning that people were spending, said Nigel Gault, the chief United States economist for IHS Global Insight. But Mr. Canally said that the decline in temporary help jobs could be interpreted as a negative because it was a leading indicator that could signal companies were taking the first step toward permanent employment.

“This is by no means a booming report,” said Mr. Canally. “But you’re chipping away at it.”

He and other economists said there were other offsetting factors, like falling government employment numbers, poor construction figures, no expansion in average weekly hours, and a small rise in average hourly earnings.

“This is simply not good enough to support consumption on a secular basis and while we keep waiting for income gains to following payroll growth, such gains have yet to materialize in any significant manner,” said Dan Greenhaus, the chief economic strategist for Miller Tabak & Company, in a research note.

About 13.7 million people were out of work in April, and 5.8 million had have been jobless for six months or longer. In March, the number of people who were unemployed was 13.5 million, with 6.1 million considered the long-term unemployed. In April, about 64.2 percent of adults were either in the work force or looking for a job, the fourth consecutive month it has been at that level, which is the lowest labor participation rate in a quarter-century.

The Labor Department’s report on Friday showed that most of the increases in nonfarm jobs came in retail trade, while jobs in services , health care and leisure and hospitality also grew. An additional 29,000 manufacturing jobs were added in April, compared with 17,000 in March. Analysts had forecast a rise of 20,000 manufacturing jobs in April.

The average workweek was 34.3 hours in April, the same as in March, while average hourly earnings rose by 3 cents to $22.95, compared with a revised $22.92 in March.

The outlook for the near-term job growth remains murky.

The housing downturn, high oil and commodity prices, government austerity measures and limited consumer spending will prevent gross domestic product growth from being more robust, and unemployment is likely to remain above 8 percent through 2012, according to Gad Levanon, associate director of macroeconomic research at the Conference Board.

“Longer-term prospects are more promising, however,” Mr. Levanon said in a statement. “In the last six months, employment outside of construction, finance and state and local government has already been growing faster than nearly any other six-month period in the last decade. Once constraints in these hard-hit sectors loosen, overall job recovery is likely to pick up pace.”

"Tourism in L.A. projected to climb in 2011"- LA Times

Los Angeles Works — Fri, 06 May 2011 12:00:AM PST

Tourism in L.A. projected to climb in 2011

May 6, 2011 | 3:12 pm

The tourism industry in Los Angeles continues to rebound from the recession, with a projected 2% increase in visitors expected in 2011, according to the Los Angeles Convention and Visitors Bureau.

Bureau president Mark Liberman predicted Friday that Los Angeles will host 26.3 million overnight visitors this year, compared to 25.7 million in 2010.

The number of visitors to Los Angeles dropped to 23.8 million in 2009 from the 2007 peak of 25.9 million.

"We're forecasting that Los Angeles will welcome more visitors in 2011 than it has in more than a decade," he said.

Liberman said tourism remains the region's largest industry, generating nearly $14 billion in direct spending and supporting 450,000 jobs.

International visitors represent about 20% of the city's tourists but generate 35% of tourist spending. In 2010, the number of international visitors jumped by 18%, led by tourists from Australia, Britain and Japan. Liberman said he expects international visitor numbers to continue to climb this year.

Hotel occupancy rates, which were at about 64% in 2009, should climb to more than 70%, the bureau said.

-- Hugo Martin

Photo: Tourists ride an open-top tour bus through Los Angeles. Credit: Los Angeles Times.

"California legislative lawyers say redevelopment plan illegal"- Sacramento Bee

Los Angeles Works — Wed, 04 May 2011 12:00:AM PST

California legislative lawyers say redevelopment plan illegal

kyamamura@sacbee.com

Published Wednesday, May. 04, 2011

The Legislature's lawyers believe Gov. Jerry Brown's plan to eliminate redevelopment agencies is unconstitutional because the state cannot reimburse itself with local property taxes.

In a recent memo to Republican Assemblywoman Diane Harkey, the Legislative Counsel Bureau questioned whether Brown could legally take $1.7 billion in redevelopment money to help balance the remaining $15.4 billion state deficit.

The opinion casts more doubt on a controversial aspect of Brown's budget that remains stalled in the Legislature. Under heavy lobbying from the cities and developers who use redevelopment, nearly all Republican lawmakers oppose Brown's plan.

The proposal calls for the elimination of redevelopment agencies, which use property tax revenues to finance projects in blighted areas. The Democratic governor wants to use that money instead for deficit reduction in the first year and greater payments to schools and local government services in later years.

Brown's plan calls for local governments to send $1.7 billion to the state in 2011-12 as reimbursement for trial court and health care services. The state is responsible for financing those activities, though they are delivered by local governments.

The Legislative Counsel's memo said the state cannot force local governments to send that money to the state.

The redevelopment bill does establish trust funds in each county that serve as a local collector of the redevelopment tax revenues before sending them to the state, but legislative lawyers said that mechanism is "not sufficient" to comply with the constitution.

Department of Finance spokesman H.D. Palmer disputed that interpretation, saying the counsel's office was "finding intent that cannot be found in the constitution."

"The administration's opinion remains unchanged," Palmer said. "We think this proposal is crafted in such a way we think it will withstand any legal challenge."

The opinion was made available Tuesday by the California League of Cities, which has vigorously opposed Brown's redevelopment plan.

The league's executive director, Chris McKenzie, said his group was pleased with the opinion and was anticipating another legal review on whether the governor's plan violates Proposition 22, a local government measure approved by voters in 2010.

"On Location: Business is cruising for Picture Car Warehouse"- LA Times

Los Angeles Works — Tue, 03 May 2011 12:00:AM PST

On Location: Business is cruising for Picture Car Warehouse

It looks just like any other car lot in the Valley, with its own showroom, parts department and body shop.

But this former Cadillac dealership in Northridge isn’t open to the public. Picture Car Warehouse is a kind of one-stop car shop for Hollywood filmmakers where the vehicles themselves are the stars.

There’s the iconic yellow Volkswagen bus from “Little Miss Sunshine,” the gold Pontiac that actor Dwayne Johnson powered in the thriller “Faster” and the classic 1966 Plymouth driven by Jerry O’Connell in the current CBS series “The Defenders,” today valued at $175,000.

Picture Car leases hundreds of police cars, fire trucks and school buses, period autos and custom built-vehicles to producers of commercials, TV shows such as “Mad Men” and “Castle,” and movies, including the upcoming “X-Men: First Class” and “Men in Black III.”

Despite the slowdown in production that has squeezed many local service companies as work has migrated out of state, the company has emerged as one of the leading players in the so-called picture car business. Hollywood has long been the center of cutting-edge designs for cars used in films and TV, including the George Barris-designed Batmobile depicted in the 1960s TV sitcom “Batman” and the modified DeLorean in “Back to the Future.”

“We opened up in 2003 and we’ve gone crazy ever since," said Picture Car founder Ted Moser, a veteran transportation coordinator for such movies as “The Town” and “2 Fast 2 Furious.”

Moser started with just 25 cars and two employees. Today his company has about 750 vehicles and more than 40 employees, who include painters, mechanics, body shop experts, graphic designers and stunt drivers.

Picture Car moved to Northridge last year after outgrowing its former location at L.A. Center Studios in downtown Los Angeles. Sales climbed to $4.5 million in 2010, up from $3 million the previous year, Moser said. Cinema Vehicle Services in North Hollywood remains the largest player.

Moser’s foray into the film business began two decades ago when he was running an auto repair shop in Parker, Colo., and he was hired to repair some cars for a TV pilot.

“My vision was to build a place where transportation coordinators could find everything they need in one spot,” Moser said.

On Monday, a trailer had just hauled off a 1968 Chevy Cheyenne pickup truck for a scene in the locally filmed HBO series “True Blood.” A shiny LAPD car parked near the showroom had just returned from a Sprint commercial shoot in downtown L.A. and earlier appeared in an episode of the TV series “Entourage.” And a yellow school bus just featured in the Comedy Central show “Tosh.0” was parked nearby.

Although feature film work has slowed in Los Angeles, Picture Car has managed to follow the business to other states. The company recently shipped two dozen Plymouths, Ford Galaxies and other cars from the '60s and early ‘70s cars to New York where “Men in Black III” is being filmed. An additional 50 cars, many fitted with futuristic solar panels, were sent to Louisiana this year for the upcoming sci-fi film “Looper,” starring Bruce Willis.

Steady work also comes from still shoots and commercials. Advance Auto Parts enlisted Picture Car for a TV spot showing sky-diving store employees replacing a battery on a car as it is literally falling out of the sky. Three Honda Civics were especially designed for the aerial shot, which was filmed in Yuma, Ariz.

Picture Car supplied various vehicles for AMC’s “Mad Men,” including the Cadillac driven by Jon Hamm’s character and a 1963 John Deere tractor called for in one episode that was difficult to find. Moser helped locate the tractor somewhere in Ohio. “He gets what it takes to make things happen,” said Duke Foster, transportation coordinator for last season’s “Mad Men.”

The company rents out its vehicles for $350 a day but also specializes in making custom-built cars to match the specific design and type of action called for in a script. In the Ben Affleck crime caper “The Town,” for example, Moser and his crew had to install a 350-horse power engine into a Dodge Caravan that served as a getaway car.

Moser and his team often need to disable computer systems, anti-lock brakes and air bags so cars can perform the way directors want.

“A director will say, ‘I want that car to spin the tires, go two blocks, hit the brakes, slide the rear end down the corner and then hit that pole,’ ” Moser said. “We have to make the cars do stuff manufacturers don’t want them to do.”

Photo: A worker at Picture Car Warehouse in Northridge works on restoring a Cadillac Brougham for use in the Bridgestone commercial. Credit: Picture Car Warehouse.

-- Richard Verrier

"Help Plan the Future of Bunker Hill"- LA Downtown News

Los Angeles Works — Tue, 03 May 2011 12:00:AM PST

Help Plan the Future of Bunker Hill

With Project Area Expiring, Community Needs Zoning Plan

Published: Tuesday, May 3, 2011 10:58 AM PDT

DOWNTOWN LOS ANGELES – There’s good news and bad news related to the city of Los Angeles’ Bunker Hill Redevelopment Plan: The bad is that it expires on Jan. 1, 2012. The good news is that tonight anyone in Downtown Los Angeles has the option to weigh in on the future of the area.

The City Planning Commission will hold a public hearing and open house on what are formally known as Specific Plan and Zone Change ordinances on Tuesday, May 3, at the Ronald Deaton auditorium in the LAPD headquarters building at 100 W. First St. The open house starts at 5 p.m. and the hearing follows an hour later.

According to a meeting notice sent out by the Planning Department, ordinances to be considered include one affecting the transfer of floor area rights in the area. These allow landowners whose properties are not as tall as code allows to sell the rights of the “un-built” space to other developers, allowing them to erect taller structures.

Also being considered will be an ordinance that takes into account both the implementation of designs standards for future development in the area, and parking requirements that would give developers greater flexibility.

The area affected is bounded roughly by First Street on the north, Fourth and Fifth streets on the south, Hill Street on the east and the 110 (Harbor) Freeway on the west.

Case files and draft ordinances are available at cityplanning.lacity.org or by calling Nick Maricich at (213) 978-1240 or emailing nicholas.maricich@lacity.org.

"State Senate committee approves bill calling for Ontario airport transfer"- Daily Breeze

Los Angeles Works — Tue, 03 May 2011 12:00:AM PST

By Art Marroquin Staff Writer
Posted: 05/03/2011 07:41:30 PM PDT
Updated: 05/03/2011 07:42:54 PM PDT

A state Senate committee on Monday approved a bill that calls for transferring control of LA/Ontario International Airport from the city of Los Angeles to a regional authority based in the Inland Empire.

The Senate Transportation and Housing Committee's approval of SB 466 marks a victory for the city of Ontario, which is trying to wrest back control of the midsize airport from Los Angeles World Airports.

The full Senate will now consider SB 466, which was introduced in February by state Senate Republican Leader Bob Dutton of Rancho Cucamonga.

The city of Los Angeles assumed management of Ontario airport in 1967, then purchased the San Bernardino County facility in 1985.

Ontario airport has lost more than 30 percent of its passenger traffic since 2007. Dutton has said that transferring control of the facility back to Ontario would allow the city to attract airlines and passengers by slashing costs and increasing marketing. Dutton also has said that Ontario airport is often neglected in favor of Los Angeles International Airport, which is also operated by LAWA.

Gina Marie Lindsey, executive director of LAWA, warned in March that any transfer of the Inland Empire airport to the city of Ontario would "take years" to complete. Instead, LAWA is examining whether an outside company should take over management of Ontario airport.

"U.S. auto sales jump 17.9% in April"- LA Times

Los Angeles Works — Tue, 03 May 2011 12:00:AM PST

U.S. auto sales jump 17.9% in April

Several automakers set records, but industry executives warn that supply disruptions stemming from Japan's natural disasters may stunt sales in the months ahead.

By Jerry Hirsch, Los Angeles Times

4:42 PM PDT, May 3, 2011

April was another robust month for U.S. auto sales, but continuing production problems from Japan's natural disasters could crimp sales in the coming months, industry executives warned.

Several automakers set monthly sales records for April, and South Korea's Kia Motors America had its best month ever, with sales up 56.7% from a year ago to more than 47,000 vehicles.

In all, automakers sold almost 1.2 million vehicles in April, up 17.9% from a year earlier, and are on pace to sell more than 13 million autos for the year, a clear sign that the industry's recovery from historic lows was gaining traction.

But the positive signs Tuesday were tempered by fear that ongoing supply disruptions caused by the March 11 earthquake, tsunami and nuclear energy disaster in Japan could cause spot shortages and drive retail car prices higher at a time when motorists are confronting near record gasoline expenses.

Toyota Motor Corp.'s factories in North America are running at just 30% capacity. Its Japanese factories are closed this week and will be operating at a 50% rate when they resume production next week.

The slow production rates are almost certain to result in a U.S. sales decline for the automaker in coming months as it runs short on models such as the Prius hybrid, Corolla compact sedan and most of its upscale Lexus vehicles, executives said.

Toyota is offering to extend expiring leases for some customers until it has a steadier supply of vehicles so that it doesn't lose sales to rival automakers.

Toyota's sales were flat for April, rising just 1.3% to 159,540 vehicles compared with the same month a year earlier. It was the smallest gain of the major automakers.

The company has suspended taking new orders from rental car companies and other fleet customers to preserve vehicles for the retail market.

"As inventories rapidly deteriorate, April could be the last month that we'll see strong sales numbers until late summer or early fall," said Jessica Caldwell, an analyst at auto information company Edmunds.com.

Caldwell noted that May and June are traditionally the biggest months for auto sales, and that the inventory shortage was developing at one of the worst seasonal periods for the industry.

"Could you pick a worse time for an inventory issue? Probably not," Caldwell said.

The biggest crunch is expected to come with fuel-efficient vehicles that have seen higher demand as gasoline prices have risen.

"While our current dealer supply of vehicles remains adequate, we know that production constraints may start to affect sales into the summer months," said John Mendel, executive vice president of sales for American Honda Motor Co.

Honda said earlier this week that part shortages and production disruptions resulting from the March earthquake and tsunami will force it to delay the launch of its next-generation CR-V small SUV. It also said that production of the 2012 Honda Civic will be at "significantly reduced levels at least through the summer months."

The automaker said it will export to the U.S. a "very limited number of Japan-built vehicles for the remainder of the year," and models such as the Honda Fit, CR-Z, Insight and Civic Hybrid, and the Acura TSX, TSX Wagon and RL will be in short supply.

Consumers are confronting higher prices, primarily because of a reduction in incentives, which are at their lowest level since 2005, according to Edmunds.com. The average industry incentive has declined $250 from March, or 11%, to $2,118 per new vehicle. The average has fallen $515, or nearly 20%, from a year earlier.

Toyota said it is replacing zero percent financing specials for many of its models with a 1.9% interest rate.

Retail prices for the industry rose about 1.4% from March to April, said George Pipas, sales analyst at Ford Motor Co. The average transaction price on Ford's vehicles increased more than 4% since March despite rising sales of small cars, which have lower price tags than the big trucks and SUVs that were once the automaker's primary profit drivers.

Normally, the late spring and summer months are a time when auto prices begin to decline, as manufacturers start to clear out inventory and prepare for the new model year.

General Motors Co. sold 232,538 vehicles in April, a 26.6% gain from the same month a year earlier, according to Autodata Corp. GM pushed its market share to just past 20% and regained its position as the biggest auto seller after coming in second to Ford in March.

Ford's April sales totaled 189,284, up 16.3% compared with the same month a year earlier. Sales at Chrysler Group jumped 22.5% to 117,225.

Honda posted sales of 124,799, a 9.8% increase. Nissan North America Inc. sales rose 12.2% to 71,526 vehicles.

Hyundai Motor America posted sales of 61,754 vehicles, up 40.3% from a year earlier and its best April ever.

April was an especially hot month for small and fuel-efficient vehicles.

"Rising fuel prices have led many to rethink their vehicle choice," said Don Johnson, GM's U.S. sales chief.

The automaker's compact Chevrolet Cruze sedan and small SUVs such as the Chevrolet Equinox and GMC Terrain all set sales records in April.

"Latest LAX proposal would move runway 260 feet north"- Daily Breeze

Los Angeles Works — Mon, 02 May 2011 12:00:AM PST

By Art Marroquin and Kristin S. Agostoni Staff Writers
Posted: 05/02/2011 03:21:43 PM PDT
Updated: 05/02/2011 07:35:23 PM PDT

Westchester and Playa del Rey residents are not pleased with Los Angeles International Airport's latest proposal to shift the northernmost runway 260 feet toward their communities, saying it could wipe out local businesses and homes.

Calling the idea a "compromise," airport officials believe the northern runways need to be separated to make room for a centerline taxiway as a way to accommodate larger planes while also reducing the risk of collisions between arriving and departing aircraft.

"We're trying very hard to find something that would meet the community's interests and the airport's needs," Gina Marie Lindsey, executive director of LAX, told the Board of Airport Commissioners on Monday.

The concept is among four separate alternatives that will be examined and detailed in an environmental impact report set for release in January, Lindsey said.

Several Westchester and Playa del Rey residents told the airport commission that they opposed the runway shift, fearing it could exacerbate noise from overhead jetliners while also increasing traffic in airport-area neighborhoods.

Additionally, moving the runway north could affect sewer lines running through the area, said Denny Schneider, president of the Alliance for a Regional Solution to Airport Congestion.

"The bottom line is, you can choose a low-risk plan or a very high-risk plan," Schneider said. "There are so many problems with going north."

Moving the runway 260 feet to the north would significantly improve safety for Boeing 777 and most Boeing 747 jetliners, which will account for 11 percent of LAX's flights by the early 2020s, Lindsey said. By then, nearly 2 percent of the flights coming into LAX will involve supersized aircraft, such as the Airbus A380.

"This thing has been going on for a long time and I think this is the first time the discussion has focused on function and really trying to figure out what we're trying to do while taking into account the concerns of the community," said Michael Lawson, president of the airport commission.

A second alternative recommended Monday calls for no changes to the runways, but making a series of safety improvements to the north airfield's maze of taxiways.

Along with those two options, airport officials will also take another look at moving the inner runway about 340 feet south to make room for a centerline taxiway, which would require the demolition of Terminals 1, 2 and 3.

The Los Angeles City Council signed off on that option, but it was placed on hold after the county, ARSAC and the cities of Inglewood and El Segundo filed suit. A settlement was reached in December 2005 that allows the city to further study that plan.

The fourth option calls for making absolutely no changes to the north airfield, despite warnings by the Federal Aviation Administration.

For now, airplanes maneuvering on the airport's north airfield must use paths that crisscross the middle of two parallel runways, which are separated by 700 feet. The current layout also requires a change in operations when handling supersized jetliners, such as the Airbus A380.

Separating the runways and adding a centerline taxiway would create a buffer zone that allows pilots to slow down and wait for clearance before heading to the terminals, according to the FAA.

"Los Angeles World Airports is responsible for deciding how to renovate the north LAX airfield," said FAA spokesman Ian Gregor.

"It is not the FAA's role to tell the airport which specific project to undertake," Gregor said. "The FAA for years has called for LAWA to reconfigure the north airfield to improve airfield safety, and our position on this issue has not changed."

Since Oct. 1, LAX has reported 13 "near misses" between jetliners maneuvering on the ground, up from 12 such incidents a year earlier, Gregor said. Four of those runway incursions were reported on the north airfield, while nine incidents happened on the south airfield.

Like residents in Westchester and Playa del Rey, those in El Segundo initially voiced similar concerns about noise and traffic several years ago, when airport officials announced a $333 million plan to build a centerline taxiway on the south airfield. The project resulted in moving the airport's southernmost runway closer to town.

However, El Segundo Mayor Eric Busch said Monday that the south airfield improvements were needed, despite his community's initial resistance. He indicated that Westchester and Playa del Rey should accept that safety improvements are now needed on the north side of LAX.

"We believe that equity demands this, safety demands this," Busch told the airport commission.

The contentious debate over how to improve safety on LAX's north airfield has drawn out over the last several years.

Five previous reports released in 2007 by aviation consulting groups suggested that the northernmost runways should be shifted 340 feet to the north.

Those reports were disputed by community activists, prompting the airport commission in May 2008 to pay $1.4 million to NASA Ames Research Center for a sixth safety study.

The report by NASA and an academic panel released last year found that separating the two parallel runways would make the north airfield safer, but the risk of ground collisions was so low that any shift would be inconsequential.

However, the researchers later conceded that "a serious case" could be made for moving the northernmost runway farther north based on improving capacity at LAX.

Los Angeles City Councilman Bill Rosendahl, whose district includes LAX, said he opposed any movement of the northern runways, but supported safety improvements to the taxiways.

"The 260 north idea is yet another version of the same plan that NASA and the professors deemed unnecessary for safety purposes," Rosendahl said. The taxiway improvement option "will make an already safe runway even safer without having to further impact Westchester and Playa del Rey."

"LAWA announces state-of-the-art airport noise monitoring system"- Daily Breeze

Los Angeles Works — Thu, 28 Apr 2011 12:00:AM PST

LAWA announces state-of-the-art airport noise monitoring system

From news services
Posted: 04/28/2011 08:19:37 PM PDT
Updated: 04/28/2011 08:20:10 PM PDT

Los Angeles World Airports said Thursday it is has acquired a state-of-the-art noise monitoring system in its continuing effort to reduce noise effects from planes and helicopters at Los Angeles International Airport, as well as Ontario and Van Nuys airports.

LAWA, the city agency that manages the airports, said the system improves its "capabilities to monitor and track both airport noise and operations."

LAWA provides phone numbers and a website (http://www331.webtrak.lochard.com/webtrak/lax4) for residents to submit complaints. Complaints received online are fed directly into the new noise monitoring system. Staff members then follow up to investigate whether or not pilots deviated from noise abatement rules or flight paths, LAWA said.

"Will DWP’s New General Manager Fit the Bill?"- LA Business Journal

Los Angeles Works — Mon, 25 Apr 2011 12:00:AM PST

Will DWP’s New General Manager Fit the Bill?

OP-ED By GARY TOEBBEN, MARY LESLIE and STUART WALDMAN Monday, April 25, 2011

The announcement by the Los Angeles Department of Water and Power’s new general manager, Ron Nichols, that he is reducing DWP’s budget by nearly a half-billion dollars is a refreshing, welcome piece of news. We should applaud Nichols for his courage, innovation and tenacity in beginning to address the challenges that have plagued DWP for years.

As we know all too well, DWP has at times been an insular organization, with public and elected officials calling into question whether the best interests of its customers are being served. This was especially apparent last year when the agency attempted to impose a significant rate hike on customers without clearly articulating the need or providing a transparent process.

The transformation that Nichols is spearheading should be viewed with optimism. We are encouraged that he has spent the first weeks of his tenure focused on tightening the agency’s belt and introducing cost-saving changes within the DWP. In just three months, he has tackled some very tough issues, shaken up the system, and appears to be charting a course for the DWP that will be more transparent and responsive to customers.

Fundamental issues

As Nichols continues this transformation, we encourage him to address the fundamental and long-term issues that threaten the viability of the DWP – maintaining the reliability of its aging infrastructure; providing continued access to power at reasonable rates; and ensuring the agency is positioned to meet a significant number of government mandates, including a recent one signed by Gov. Jerry Brown that calls for 33 percent renewable energy by 2020. Nichols’ challenge, of course, will be to deliver confidence in the organization’s ability to meet the needs and demands of DWP customers, and to do so in a transparent manner.

Additionally, we hope he’ll be afforded the ability to make further organizational changes as deemed necessary for the betterment of the department.

His no-nonsense and direct approach these first 100 days on the job gives us a sense of hope that he is exactly what this agency needs to best serve DWP’s customers and the city of Los Angeles. Now the hard work truly begins as he moves to balance mandates and utility rates.

Gary Toebben is president and chief executive of the Los Angeles Area Chamber of Commerce. Mary Leslie is president and chief executive of the Los Angeles Business Council. Stuart Waldman is president and chief executive of the Valley Industry and Commerce Association.

"American Apparel to get cash infusion from Canadian investors"- LA Times

Los Angeles Works — Sat, 23 Apr 2011 12:00:AM PST

American Apparel to get cash infusion from Canadian investors

A group of Canadian investors has agreed to inject up to $45 million to help American Apparel and CEO Dov Charney stave off a potential bankruptcy filing.

By Walter Hamilton, Los Angeles Times

April 23, 2011

American Apparel Inc. is getting a desperately needed financial lifeline.

A group of Canadian investors has agreed to inject up to $45 million to help the trendy Los Angeles clothier — and its iconoclastic chief executive, Dov Charney — stave off a potential bankruptcy filing.

The retailer has been buffeted by declining sales and a sagging stock price — not to mention a public-relations firestorm stemming from sexual-harassment lawsuits filed by former employees against Charney.

After an $86-million loss last year and projections of another operating loss this year, the company has repeatedly warned investors about its ability to continue as a going concern.

"I don't think the company necessarily needed to be saved," Charney said. "There were a lot of options open to us. But this is a great investment."

Still, some experts had questioned American Apparel's future given the financial woes and the furor surrounding Charney's relations with some female employees.

Larry Perkins, head of West Coast operations for Conway Mackenzie, a restructuring firm, likened the recapitalization to a last-second pass allowing a football team to avoid defeat.

"They got a Hail Mary," Perkins said. "If you were to ask me three days ago if this would happen I'd have said no. This is a unique deal. Clearly you have an investor group that believes in the brand and in Dov, and they have chosen to go long on both of those."

The investors agreed to pump in $15 million in equity at 90 cents a share, a 27% discount to its $1.24 closing price Thursday. The stock market was closed Friday in observance of Good Friday.

The investors also are getting warrants to buy an additional $30 million worth of shares over the next six months, also at 90 cents a share.

Charney agreed to contribute $700,000 of his own money. However, unlike other existing investors, whose ownership stakes will be diluted by the issuance of shares to the new investors, Charney said his prior ownership stake can be restored if the stock price rises in coming years.

The investment group is headed by Michael Serruya, a prominent Canadian financier.

"Our investment in American Apparel is as much a vote of confidence in Dov as it is to American Apparel," Serruya said.

"The CRA, Now and in the Future"- LA Downtown News

Los Angeles Works — Fri, 22 Apr 2011 12:00:AM PST

The CRA, Now and in the Future

Published: Friday, April 22, 2011 4:09 PM PDT

OPINION: DOWNTOWN LOS ANGELES - Gov. Jerry Brown has it in for community redevelopment agencies, and if he gets his way, they will cease to exist throughout the state, possibly as soon as July 1. Although his proposal to axe these municipal vehicles charged with turning around blighted communities, and instead direct their revenues to counties and schools, continues to be contested by entities across California, many believe Brown will ultimately prevail.

Some are trying to work out a deal to preserve CRAs and have them voluntarily give up a portion of their funds. Still, one must consider what life and urban turnarounds would look like in a post-CRA world. After all, a need for low-income housing and a way to address blight won’t go away just because Brown claims the cash.

It is a significant issue in Downtown, a community that has benefited tremendously from the Los Angeles Community Redevelopment Agency, but that still has many pockets of blight, most notably in and around Skid Row. Los Angeles Downtown News recently reported on the situation, which is already prompting local leaders to take steps to ensure that certain anticipated projects don’t just die on the vine.

The situation both raises a question and presents an opportunity for what some will deem necessary change: On the former front, local leaders are struggling to come up with a mechanism that allows for the support of the kinds of projects that have long relied on CRA dollars, such as the aforementioned low-income housing. In a well-considered ongoing policy, CRA cash was frequently used as the seed money that allowed developers to leverage other funds to create projects that could be very difficult to piece together without this civic help. Not all such investments were perfect, but indeed they did save our city.

The question is, what should happen now? Where should public policy focus in a Downtown that has seen tremendous change? What should an agency’s duties and powers be? Many in the Downtown business community have complained in recent years about a CRA board that has morphed into two areas beyond its purview: They say the board shouldn’t be a sort of second Planning Department and shouldn’t be a social welfare agency.

If the CRAs go away as part of Brown’s plan to resuscitate California’s finances, there will be successor agencies in each municipality to close up shop as soon as possible. In Los Angeles there would be another entity, however, that would continue to do the CRA’s work. It would likely have tremendous pull, at least for a while. The City Council in March approved the transfer of some current assets and $930 million in obligated future revenue away from the CRA. Nearly $575 million of that would be set aside for 90 Downtown projects (though not all of the projects will come to fruition; additionally, Brown could challenge the transfer in court). A new public entity would manage the money.

The problem is that there is, as of now, no revenue stream beyond that future $930 million. Councilwoman Jan Perry has suggested a partial solution of creating a Downtown-specific economic development corporation funded by money the city gets through some of the CRA lease transfers. We think that’s a good first step, but it won’t begin to match what has been previously provided.

The end of the CRA also offers the chance to realize that certain communities no longer need the assistance they once required, that in some areas the agency has finished its job. Much of Downtown no longer faces the blight it did when the project areas were established. This could free up funds to go to other neighborhoods, whether they are in Downtown, the San Fernando Valley, South Los Angeles or anywhere else.

If this is indeed the end of the CRA, then Downtown, and the rest of the city, will survive, but certain important projects will need help. While many people will continue to protest, Brown’s course of action may prove unalterable. Los Angeles needs to prepare for a future of redevelopment, and not just mimic the present.

"Runway Needs $20M to Rebuild"- Daily News

Los Angeles Works — Fri, 22 Apr 2011 12:00:AM PST

Runway Needs $20M to Rebuild

By Dana Bartholomew, Staff Writer

Posted: 04/22/2011 07:26:31 PM PDT

Updated: 04/22/2011 07:28:57 PM PDT

Van Nuys Airport needs to rebuild its storied runway at an estimated cost of $20 million, although there's no ready cash for the job, Los Angeles airport officials say.

The 8,000-foot One-Six-Right strip is in dire need of an overhaul, according to a recent pavement survey, which could result in a temporary closure of the runway that serves small business jets. No date for the repair has been set.

If sufficient funds aren't found from Uncle Sam or airport revenue, the cost of the runway repair could fall on major business tenants in the form of fees tucked into newly renegotiated leases, said Gina Marie Lindsey, executive director for Los Angeles World Airports.

"As leases cycle, we want to include in these leases the ability to put in an airport deficit recovery fee, if we need to," Lindsey said during an interview this week. "Everybody who uses that airport is going to have to pay for it in one way or another."

The Van Nuys Airport Association, which represents businesses at Van Nuys Airport, is negotiating with LAWA over lease issues, including deficit recovery fees.

The fees could compel individual tenants to help the airport break even should it ever be in the red.

Critics, however, said there should be a limit on such fees, or banks may be loathe to finance large company projects.

"Tenants have no oversight on how the money is spent, so it's tantamount to an open-ended checkbook," said VNAA President Curt Castagna, president and CEO of Aerolease-Aeroplpex Group, one of the airport's fixed-base operators. "It's not established. There are no controls. It's an unfair assessment."

Lindsey and Van Nuys Airport Manager Jess Romo met on Thursday with Daily News editors and reporters after a story revealed the general-aviation airport was in steep operational decline.

Critics have taken the city airport agency to task for negotiating leases that have stymied new investment and an alleged failure to support airport businesses and jobs.

Van Nuys Airport was once the nation's busiest general aviation facility, worth $1.3 billion to the San Fernando Valley economy.

But the Sept. 11, 2001 terrorist attacks reduced flights into Los Angeles International Airport, which then cut its subsidies to Van Nuys. Airport operations have since falled about 10 percent a year as propeller plane operations and flight schools declined.

The recent recession dealt another blow to airport companies whose business plunged by up to 45 percent.

Van Nuys Airport, now expected to be self-sustaining like surrounding general aviation fields, earns most of its revenue from land leases and fuel fees. About $4 million in the red a few years ago, its managers saved $2 million by shifting 40 workers to LAX and other payrolls.

As a result, Romo said, Van Nuys Airport expects to clear $1 million during the next fiscal year, excluding depreciation.

"Kudos to LAWA for bringing VNY operations under budget," Castagna said.

Lindsey said she aims to replace the airport's patchwork of leases with a fixed-rate offer, based on property size. The five fixed-base operators, which lease hanger space to smaller tenants, have until April 30 to respond.

Negotiations are also taking place to build a 30-acre Propeller Park, which has been held up by a lack of private financing.

"We are attempting to make some order out of chaos, by establishing consistent rates across the airport," Lindsey said. "We are doing the best we can to include the tenants to come to a consensus.

"We want to work with these businesses, so that they can stay viable."

In other airport news, Lindsey said part of Palmdale International Airport, which is also owned by LAWA, could be transformed into a solar energy farm. The airport has had commercial airline service in the past, but is currently unused.

She said feelers have been put out to see if private companies are interested in leasing 17,500 acres at the High Desert airport for solar arrays.

"Towers of Trouble"- LA Downtown News

Los Angeles Works — Fri, 22 Apr 2011 12:00:AM PST

Towers of Trouble

MPG Office Trust, the Owner of Seven Downtown High-Rises, Fights for Its Future

by Ryan Vaillancourt

Published: Friday, April 22, 2011 4:09 PM PDT

DOWNTOWN LOS ANGELES - MPG Office Trust, the commercial real estate giant that once dominated the Downtown office building scene, is staring at a mountain of debt that it can’t afford to pay and is at risk of defaulting on several of its most prominent buildings.

The firm that owns more of the Downtown skyline than any other company — it has a hand in seven Class A office towers — defaulted on the $470 million loan for Two Cal Plaza in March. It has filed notices of imminent default on three other trophy buildings: Wells Fargo, Gas Company and US Bank towers. The company hopes to keep all four buildings by restructuring its loans.

The situation has some wondering if the company that played a key role in shaping the Downtown Los Angeles skyline is built for the future.

“It’s the end of the era for [MPG],” said Steve Marcussen, executive director of commercial real estate firm Cushman and Wakefield, who believes that lenders on MPG’s core properties will have little incentive to renegotiate their loans to keep MPG in its assets.

MPG officials see it differently. By continuing a strategy to raise money by selling non-core assets and working with lenders to extend debt maturities or write down portions of what they owe, the firm expects to hold on to its core Downtown towers, said Jonathan Abrams, MPG senior vice president and general counsel.

It won’t be easy. As the struggling office giant is that, as it strives to reduce a $3.7 billion debt burden (as of December 2010), with $604 million in loans coming due this year and in 2012, the office market may not yet have hit bottom.

Vacancy in Downtown office towers crept up to 18% in the first quarter and is poised to increase further this year as large tenants continue to downsize, according to a report by Cushman and Wakefield. Tenants with expiring leases are armed with the leverage of a sluggish marketplace and are angling for the best deals possible. That means rent concessions and allowances to improve their spaces at the expense of landlords.

Although notices of imminent default have been filed for the Wells Fargo, Gas Company and US Bank towers, the buildings are not in default. The company took the step as a legal prerequisite to having formal discussions with its lenders on the properties, Abrams said. The move transfers the loan to the properties’ special servicers, entities that administer the complex commercial mortgage backed securities (or CMBS) debt used to finance the towers.

“We’ve never given any indication that we would have any problem continuing to own these assets, unless we actually stop paying on the mortgages,” said Abrams, who called the notices of imminent default a “non-event.”

“We want to be out ahead of our loan maturities and other issues that require discussions with lenders and so, with CMBS loans, we don’t have any way to do that other than to put them in special servicing,” he said.

Rocky Road

The seeds of MPG Office Trust were sown in the 1980s as Maguire Thomas Partners, helmed by Robert F. Maguire and Jim Thomas. The pair built four of Downtown’s most prominent structures — Wells Fargo Center, KPMG Tower, Gas Company Tower and the 73-story US Bank Tower, which was known as Library Tower when it opened in 1990. Thomas split off in 1996 to form Thomas Properties Group, and Maguire changed his company’s name to Maguire Properties, but that moniker wouldn’t stick either.

The firm’s current struggles are just the latest chapter of a rocky four-year period. Maguire was ousted in 2008 as the firm struggled to recover from a 2007 purchase of 24 buildings and development sites in Los Angeles and Orange County from Blackstone LP for $2.88 billion, at the height of the commercial real estate market.

Since then, values have plummeted and the firm has sought to shed non-core assets, selling or defaulting on properties mostly out of Downtown. MPG did, however, stop making payments in 2009 on the $200 million loan for 550 S. Hope St., which it acquired as part of the Blackstone portfolio. The building is for sale. So is One Cal Plaza, of which MPG is a minority owner. The majority owner, the Australia-based Charter Hall Group, has been looking to sell the tower since 2009.

Nelson Rising, a longtime player in Downtown’s development and civic realms, replaced Maguire in 2008. He steered MPG away from properties in Orange County, Glendale and Burbank and focused on keeping its Downtown assets. The firm dropped Maguire from the company’s name in 2010, changing to MPG Office Trust. Citing differences with fellow management, however, Rising stepped down from his chief executive post in November.

“I believe the board of directors and I do not share a common vision for the strategic direction of the company and a capital structure necessary to achieve it,” Rising said in his resignation letter.

Rising was replaced by David Weinstein, who had sat on the company’s board of directors since 2008. Four months after the change, MPG defaulted on the $470 million loan on Two Cal Plaza, a Bunker Hill trophy tower. Now the company is looking to renegotiate that loan too.

Marcussen isn’t optimistic that the special servicers will agree to write down the debt on the MPG properties, which he believes are worth far less than their respective debt.

“If a lender is going to take a $100 million haircut, why would they leave Maguire in place?” Marcussen said, using the name that many in the local real estate community still employ when discussing MPG. “The only times we’ve seen this happen in the past is when the borrower has significant equity to contribute, but it’s expected that Maguire doesn’t have more money to put in.”

MPG’s Abrams said that while the firm could look to negotiate write-downs or other concessions, it will also try to extend some of its maturities, a proposition he says could be in the best interest of the lenders.

“If money isn’t put into certain assets, then things could go worse,” Abrams said. “The lender could foreclose, which takes money and time and they may have to sell in a distressed market. Wouldn’t a lender rather do some small concessions and ultimately have collateral with potentially a lot more value when the loan matures?”

Ultimately, Two Cal Plaza and the Wells Fargo, Gas Company and US Bank towers all have different economic profiles, and MPG’s strategy will vary for each one, Abrams said. But the firm says that by moving the properties to special servicing, they are not folding — they are digging in their heels. Still, as MPG looks to renegotiate its debt, company officials admit they are uncertain how the special servicers will play their hand.

“There are numerous tools available to special servicers once they have been transferred,” Abrams said. “We don’t know what their approach will be until we get into constructive dialogues. While we have ideas, we don’t know what’s achievable.”

Contact Ryan Vaillancourt at ryan@downtownnews.com.

"DWP offers rebates for installing electric car plugs"- Daily News

Los Angeles Works — Thu, 21 Apr 2011 12:00:AM PST

DWP offers rebates for installing electric car plugs

GREEN: Utility's incentive aims to curb gas usage.

By Staff and Wire Services

Posted: 04/21/2011 09:59:46 PM PDT

Updated: 04/21/2011 10:01:42 PM PDT

Tired of paying $4 and up for a gallon of gasoline?

Well, the Department of Water and Power has a deal for you if you're willing to buy an electric car.

Starting May 1, the DWP will offer rebates of up to $2,000 for the cost of installing an electric charger for buyers of electric vehicles.

"Charge Up L.A." will provide rebates to the first 1,000 DWP customers who apply for the break and agree to install a rapid charger for qualifying electric vehicles. The goal is to eventually provide rebates to as many as 5,000 customers, said Ron Nichols, the DWP's general manager.

Nichols, Mayor Antonio Villaraigosa and environmentalists praised the pilot program as a way to build the green economy locally as well as to clean the environment.

Villaraigosa said the city hoped to help customers go from applying for a permit to plugging in their electric vehicles, or EVs, within seven days.

"We are the car capital of America," Villaraigosa said at a downtown news conference. "I want us to be known as the green car capital of America."

The rebates were announced on the eve of Earth Day.

With the charger rebates and the high price of gasoline, electric vehicles may be cheaper than internal combustion cars. Compared to gasoline-burning vehicles, the "fuel" cost of an EV is equal to about $1 per gallon, Villaraigosa said.

Nichols said the pilot program will allow the department to better assess patterns of using the chargers - officials believe it will be mostly done at nights and on weekends - when the department can offer reduced electrical rates for the devices.

"Most of our wind power is developed at night, and this will give us an opportunity to take advantage of it and store it in these cars," Nichols said.

Nichols said because of the times that people will be using the chargers, it will not place an additional load on the power system. Rates for the chargers will be much less than the normal charges and should not be affected by any conservation program, Nichols said.

The DWP has set up a website, lawp.com/ev, which contains more information on the program. If it proves successful, Nichols said the city is prepared to broaden the program for additional vehicles.

He suggested those interested in buying an EV should contact the DWP ahead of time to process any paperwork needed to get the chargers installed.

"The Inn Crowd Wants More"- LA Downtown News

Los Angeles Works — Wed, 20 Apr 2011 12:00:AM PST

The Inn Crowd Wants More

Portland-based Homer Williams is leading the charge on a $120 million project at Olympic Boulevard and Francisco Street. The 377-room development will include both Courtyard by Marriott and Residence Inn rooms. Photo by Gary Leonard.

Marriott’s $120 Million Hotel Seen as a First Step for South Park Proponents

by Jon Regardie, Executive Editor

Published: Wednesday, April 20, 2011 10:15 AM PDT

DOWNTOWN LOS ANGELES - There was plenty of celebration today when a team of city leaders, business officials and union representatives came together on a South Park lot to announce a $120 million hotel project. If a group of local players have their way, however, it will be just the first in a string of expensive new developments around L.A. Live.

This afternoon, Homer Williams, who a little less than a decade ago ignited a South Park housing craze, announced that his firm, Williams/Dame & Associates, in partnership with investment entity American Life, Inc., is embarking on a 22-story tower on the northeast corner of Olympic Boulevard and Francisco Street. The companies are in escrow to buy the land from Anschutz Entertainment Group, the developer of Staples Center and L.A. Live.

The deal calls for the creation of two Marriott brands in a single edifice. Construction is slated to start next March for the project that would create 180 Courtyard by Marriott rooms and a separate 197-room Residence Inn. The 300,000-square-foot development would open in March 2014.

Perhaps the only thing that eclipsed the announcement of the 377-room project was the hope that it precedes a wave of development tied to AEG President and CEO Tim Leiweke’s vision to build a $1 billion football stadium and events center where the West Hall of the Convention Center now stands. At the event in the shadow of the 1,001-room Ritz-Carlton/J.W. Marriott hotel, Leiweke repeated his desire to ultimately see five new hotels erected in the area.

“This is the first,” he stated. “I think you’re going to see two more hotels announced by the end of this year.”

The project, and the promise of more, was embraced by a cadre of local players, perhaps none more enthusiastic than Robbie Hunter, the head of the Los Angeles/Orange Counties Building Trades Council, which represents 140,000 construction workers. Hunter noted that the recession has pushed the unemployment rate in his field to nearly 40%.

The sentiment was echoed by Councilwoman Jan Perry, whose Ninth District includes the area around L.A. Live.

“Successful development brings more investment and more jobs,” she said.

Quick Deal

The $120 million project (the price includes the acquisition of the land from AEG) marks a return to Downtown Los Angeles for Williams. In the early 2000s, he and his partners acquired about a half-dozen South Park properties. The Elleven tower, which opened in 2006 with 176 condominiums, was the first new residential high-rise in the area in decades. Williams followed it up with the Luma and Evo buildings, creating another 236 and 311 condos, respectively.

The new project will be funded with American Life equity provided through the EB-5 Investor Green Card Program. It allows individuals who invest $500,000, and whose projects lead to the creation of at least 10 direct or indirect U.S. jobs, to get Green Cards.

Jo Hwang, marketing director for Seattle-based American Life, said more than 200 investors (including some American investors) will be involved in the Downtown project.

“U.S. companies get money pumped into the economy of the local community,” Hwang said, referring to the EB-5 program managed by American Life. “We create jobs, U.S. jobs, and foreign investors have a pathway to a Green Card through their investment. It’s a win-win for everyone.”

Williams said the Marriott deal came together in the past six to eight months, after he teamed up with American Life and heard about Leiweke’s plan for a football stadium. The tower, which will rise regardless of whether the stadium moves forward, officials said, occurred after Williams reached out to AEG to see if any property was available.

Although the hotel won’t break ground for about a year, Williams is already looking toward the future.

“We’d like to do two, three, maybe four projects down here,” he said. “That’s our goal. We like the neighborhood. We believe in it.”

While Williams’ past projects eased the way for other building in the area, not all of his South Park dreams came to fruition. A twin 34-story tower development known as Figueroa South faltered once the recession hit. The land where that project was slated to rise was eventually taken over by SwedBank. Parking lot giant L&R is now in escrow to acquire the land.

Williams is not the only one already looking to expand his footprint in Downtown. Tony Capuano, executive vice president of development for Marriott, Inc., said the firm is bullish on the area. In fact, with the new project, the hotelier will have five holdings in Downtown: In addition to the two properties in the Convention Center hotel (Marriott owns Ritz-Carlton), there is a Marriott at 333 S. Figueroa St.

“I think there’s room for a number of our other products Downtown,” Capuano said. “With the opportunity for the football stadium and the modernization of the Convention Center, we think there is lots and lots of runway ahead of us in terms of demand growth. We’ve got 18 lodging brands and we are aggressively and actively looking for opportunities to grow with some of those other brands in Downtown.”

"Filling the Void in Los Angeles"- LA Business Journal

Los Angeles Works — Mon, 18 Apr 2011 12:00:AM PST

OP-ED: Business community will need to back non-profits as they provide the services lost to government cuts.

By DAVID HAMLIN

Monday, April 18, 2011

In these hard times, it isn’t easy to imagine that things could get worse. Just wait.

The ravages of the economy are about to spawn massive federal and state budget cuts, which will be concentrated in social, health and welfare services. When those cuts hit home, the impact on our non-profit sector will be far worse than the suffering the sector is already enduring.

In response, L.A.’s business community must once and for all recognize the vital role non-profits play in our economy and our non-profit sector must take bold steps.

The mean economy hit non-profits hard long before it moved legislators to take drastic action. Now, as funds for everything from day care to health care, from work force development to arts programs are slashed, the damage will be significantly wider and deeper. Most programs that received government funds will disappear or shrink, and when they do, more and more people seeking aid and comfort will turn to non-profits – demand will explode as resources shrink.

To meet this fiscal and social catastrophe, the business community has to acknowledge a stark reality: Non-profits keep businesses in business.

Employees arrive at work on time and stay until closing because their children or their aging parents (or both) are safe and secure in non-profit after-school and day care programs. Employees without health care coverage use a network of clinics and emergency rooms; without those non-profit resources, absenteeism would sky-rocket. Employers seeking well-rounded, productive employees find them because of arts and literacy programs, training centers, counseling facilities, even networking opportunities through chambers of commerce, and civic and social clubs – all non-profits.

Once the business community acknowledges its vital dependence on non-profits, it must act. At the most ambitious, business leaders can apply their skill and knowledge to critical issues, as the L.A. Business Leaders Task Force on Homelessness has done. That group, which I’m involved with, developed a plan to eliminate chronic homelessness and save an enormous amount of money in the process. Business leaders can adopt this model and work with non-profit experts to explore new practical and economic ways to develop streamlined responses to the crises the drastic cuts will create. Fresh approaches to health care, elder care, day care and after-school programs and other key services can guide us through hard times.

Making a difference

Out of pure self-interest, business and corporate leaders must also take a close look at creating alliances with non-profits, work place contribution systems, expanded volunteer campaigns, loaned expertise, direct or in-kind contributions – all these will make a difference.

At the same time, the non-profit sector has some serious work to do. Business as usual won’t serve our community as it must be served.

In particular, it is long past time for non-profits to seriously examine the value of having a dozen or more organizations addressing the same issue. Whether the goal is job training or mental health counseling, there is almost certainly an economy of scale to be gained from consolidation. For too long, individuals and groups have started non-profits when like-minded organizations already exist. As economic pressures approach dangerous levels, smart non-profits must give serious thought to models that generate a greater return on investment and consolidate precious resources to maximum advantage. In hard times, there is no other option.

There is another major step the non-profit community must take. In vital areas – fundraising, marketing, advocacy, education and management – non-profit staff, board members and volunteers must be as skillful as possible, far more so when the stakes are as high as the economy has made them. Yet, the non-profit sector in our community relies on a capacity-building network that isn’t up to the task.

A recent study, commissioned by the Weingart Foundation in Los Angeles, found that our system for improving skills and leadership capacity in non-profits is haphazard, inadequate to the need, largely uncoordinated and fundamentally ineffective. That must be fixed. The responsibility for fixing it lies squarely with the non-profit community.

L.A.’s non-profit leaders know what is needed, they build effective programs and know how to reach out to the philanthropic community for support. Those assets should be focused immediately on the construction of a coordinated, cohesive capacity-building network that produces ever-more skillful, creative, effective and fully prepared non-profit leadership. In hard times, nothing less will do.

When the business and non-profit sectors take big, smart strides, we’ll all be stronger. If they fail to act, too many may never see an end to hard times.

"City to consider negotiating position on downtown stadium"- Daily News

Los Angeles Works — Fri, 15 Apr 2011 12:00:AM PST

City to consider negotiating position on downtown stadium

Daily News Wire Services

Posted: 04/15/2011 05:05:38 PM PDT

Updated: 04/15/2011 05:10:13 PM PDT

LOS ANGELES - City leaders will begin to publicly lay out their negotiating position Monday on a proposed football stadium in downtown Los Angeles.

The ad Hoc Committee on the Proposed Downtown Stadium and Events Center - - council members Jan Perry, Bill Rosendahl, Ed Reyes, Tom LaBonge and Tony Cardenas -- will meet for the first time at 8 a.m. Monday.

The committee was formed after Anschutz Entertainment Group put forward a plan in January to build a $1 billion, 64,000-seat football stadium downtown on the site of the Los Angeles Convention Center's West Hall. The plan calls for tearing down that section of the LACC and rebuilding a $350 million expanded exhibition space that would be financed by a city bond and paid back using future tax revenue from the new convention space.

"I don't want the city to take any risks whatsoever on this project," said Councilman Bill Rosendahl. "AEG has put a lot into downtown. It's in their best interest to take all the potential risks."

Rosendahl said he was upset at the early morning timing of Monday's meeting, saying it would preclude the working public from having input.

"My big issue is I want an open, transparent process that we can feel comfortable nothing is slipped by in the middle of the night," he said. "An 8 a.m. meeting symbolically tells me that we're not doing it right from the very beginning."

Perry, however, said all of the committee's meetings wouldn't necessarily be held at that hour.

"The first meeting is at 8 a.m. That doesn't mean the schedule will ultimately be at 8 a.m.," she said.

Chief Legislative Analyst Gerry Miller has been meeting with AEG to discuss the plan. He submitted a report to the committee this week recommending 12 negotiating positions for the city to take in moving forward with AEG.

They include:

-- a commitment from the developer that no public money will be used to build the stadium;

-- a requirement for "substantial private funding" to support any bonds issued to construct the new convention hall;

-- that the city receive at least half of any new tax revenue generated from the project; and

-- that AEG fully guarantee the debt service on the bonds used to construct the new hall.

Miller is also recommending that the city maintain the ownership of the land the stadium would be built on and not to sign a lease for longer than 55 years.

The city is interviewing financial consultants with expertise in stadium development and team leases to advise the city on the economics of the stadium deal. But initial estimates place the annual debt service on the bonds to pay for the convention hall at $25 million, Miller said in the report.

Miller said he hopes to have a contract with AEG for the stadium committee to review within 90 days, but said the environmental impact report necessary for the project to go forward might not be ready to review for another year.

"A year's a good enough time. There's a chance to really work it through," Rosendahl said. "But we're not cheerleaders in this. We're players on this team."

"City, LAWA must pay more attention to the neglected Van Nuys Airport"- Daily News

Los Angeles Works — Wed, 13 Apr 2011 12:00:AM PST

Daily News Editorial: City, LAWA must pay more attention to the neglected Van Nuys Airport

Posted: 04/13/2011 12:00:00 AM PDT

WITH its rich history and regional importance, Van Nuys Airport is a Valley economic engine that should not be allowed to stall.

Yet, that is exactly what's happened to this general aviation airport.

Half as many planes take off and land at the airport compared to the high point in 1999. And airport companies say their business is down 30 to 45 percent. That has had a ripple effect in the local economy, with lost jobs and investment.

Just a few years ago, the San Fernando Valley was able to brag that it was home to the nation's busiest general aviation airport. Today, the airport has lost that title to Deer Valley Airport outside Phoenix, and local businesses worry the downward trend at Van Nuys Airport will continue.

What happened?

The recession certainly hurt the airport, which has increasingly catered to corporate jets and wealthy individuals who have their own aircraft. Critics also point to high rents, little support for propeller pilots, troubled lease negotiations that deter new investment and lack of hands-on management from Los Angeles World Airports.

Indeed, airport businesses and users argue they get little support from LAWA, and that hinders any efforts to revive flagging airport operations.

That's a shame.

There is more at stake than the prestige of having the nation's busiest general aviation airport. Van Nuys Airport has been a major driver in the Valley's economy. Before the recession the airport contributed an estimated $1.3 billion to the local economy and generated some 12,300 jobs. The loss of business at Van Nuys Airport translates into economic stagnation in the surrounding community.

Given Mayor Antonio Villaraigosa's emphasis on preserving tax-subsidized redevelopment zones and enterprise zones, you'd think his administration would make growing the city-owned Van Nuys Airport a priority. But LAWA leaders haven't given this regional airport the attention and support it deserves. This can not be allowed to continue.

LAWA and city leaders must step up management at the airport. To be sure, there are different demands from different interest groups and competing visions for the future of the Van Nuys Airport. It will take real leadership and attention to balance those demands, but it must be done.

Van Nuys Airport is too important to the Valley and to the greater Los Angeles economy to continue its slow descent.

"On Location: Film Scouts Tour Unlikely Corners of L.A. County"- LA Times

Los Angeles Works — Tue, 12 Apr 2011 12:00:AM PST

On Location: Film Scouts Tour Unlikely Corners of L.A. County

It might have been mistaken for a star tours bus –- only this wasn’t in Hollywood.

On a recent Sunday afternoon, more than two dozen location managers from such shows as the Fox hit "House" and the CW drama "90210" piled onto a double-decker bus and paid a visit to the city of Cerritos in southeastern Los Angeles County.

Their mission: to meet with city officials and tour possible sites for filming, from the large performing arts center to a shuttered department store.

Cerritos, perhaps best known for the Cerritos Auto Square, has been featured over the years in a few TV shows like the NBC series "Undercovers" and such movies as "Wayne’s World," but it is not exactly on the radar of most location scouts.

To remedy that, the Location Managers Guild of America has launched a program aimed at highlighting some of the lesser-known cities within the 30-mile radius where studios and producers do most of their filming as a way to spur more local production.

"There are over 90 cities within the zone like Lakewood, Bellflower and Cerritos that are not recognized by the filming community and have so much to offer and have amazing locations," said Kris Bunting, a former key assistant location manager for the Showtime series "Dexter," who grew up in the area. "We want to put them on the map."

Bunting said he conceived the program as way to help keep production from leaving Los Angeles for Canada and other states like Michigan, Louisiana and New Mexico. While on-location filming rebounded in 2010, thanks in part to California’s 2009 film tax credit program, feature production remained less than half what it was in 1996.

And Bunting and his colleagues figure more filming would occur locally if producers gave a second look to some underutilized cities of L.A. County. "I grew up in the city of Lakewood, and I was able to watch the aerospace industry move right out of Long Beach, and now I’m watching the same thing happen in Los Angeles with the movie industry," Bunting said, who spent four seasons working on "Dexter," which mainly films in Long Beach.

A friend of Bunting who works in Bellflower asked him why so few TV shows and movies are shot in smaller cities in South Los Angeles, which prompted him to reach out to Cerritos. As it turned out, city officials had been thinking about boosting its small film business and were eager to host a tour of some of its facilities.

"We definitely are trying to encourage more film production and more use of our facilities because it’s a source of revenue for our city," said Annie Hylton, theater and marketing manager for the city, which generated $64,000 from film permits and rental fees in the last year.

The guild hopes to conduct two city tours a year and is working with the California Film Commission to identify locations to target. It also will promote the cities and their locations on its website.

Cities like Cerritos may be off the beaten path, but what they lack in name recognition they make up for in other advantages, including low permit fees, low-cost parking and film-friendly communities that haven't yet become jaded by hosting one too many crews.

Having "fresh" and diverse locations that haven’t been overused also helps. In a three-hour tour, 25 location managers toured the Cerritos Center for the Performing Arts with its three-story atrium, a former Nordstrom department store (which one location manager called a "diamond in the rough"), an island play area called Heritage Park that is patterned after a New England colonial village and the city’s library. They also met with a representative of the ABC Unified School District about promoting filming in the local schools.

It’s too early to say what effect the program will have, but at least one TV show, ABC’s crime drama "Castle," has been scouting in the area since the April 3 tour.

Like many of his peers, Bunting admits he has a vested interest in seeing more production stay close to home.

"I’m a native of Los Angeles and I want to continue working here," he said. "I have no business working in snow or rain."

"Grand Ave. Developer Has New 2012 Deadline"- LA Downtown News

Los Angeles Works — Mon, 11 Apr 2011 12:00:AM PST

Grand Ave. Developer Has New 2012 Deadline

With phase one of the Grand Avenue project (pictured) on hold, the developer has a new 2012 deadline to break ground on a smaller tower on a neighboring parcel.Rendering courtesy Related Companies.

Officials Set Groundbreaking Date for 20-Story Apartment Tower

by Ryan Vaillancourt, Staff Writer

Published: Monday, April 11, 2011 3:25 PM PDT

DOWNTOWN LOS ANGELES - Grand Avenue project developer Related Companies has been working on plans for a scaled down, 20-story apartment tower for months. Now, the firm in control of the long-stalled $3 billion Bunker Hill mega-project has a deadline for breaking ground on that building: October 2012.

The Grand Avenue Authority today set the deadline for Related to begin construction on the apartment tower, which would rise on what is now a parking lot south of Gen. Thaddeus Kosciusko Way. Preliminary plans for the edifice call for about 260 units, 20% of which would be affordable, and up to 15,000 square feet of retail space, Related California President Bill Witte said. Known as parcel M, the site is environmentally cleared for two towers of up to 35 stories.

Despite the deadline, Related does not yet have financing. While the developer is working with a team on preliminary designs, it has yet to select an architect, Witte said.

“This is very preliminary,” Witte said. “It’s not financed yet but we are going to move forward on it. I think it’s not unrealistic.”

If related cannot meet the deadline, the firm could seek an extension from the authority, which has granted several such extensions on the larger first phase of the project.

Also today, the authority gave an OK to a plan already approved by the CRA and City Council to expand the garage beneath philanthropist Eli Broad’s coming museum so that the facility occupies the entire surface lot known as parcel L, between Grand Avenue and Hope Street. The facility will hold 370 spaces, up from the previously approved 284.

The board also became the final body to green-light a public plaza to be built south of the museum, on a platform above Gen. Kosciusko Way.

The $100 million Diller, Scofidio +Renfro-designed museum will rise on top of the three-level garage, but will occupy only a portion of the garage footprint. The remainder is set aside for a future residential development, likely to be condos, Witte said.

The apartment tower plan is now formally known as phase IIB, and the condo tower, which has a groundbreaking deadline of 2016, is considered phase IIC.

The $1 billion, Frank Gehry-designed phase one calls for two luxury residential towers with a boutique hotel and 250,000 square feet of retail. Related has missed multiple deadlines to break ground on the largest piece of the three-phase project, and instead has secured repeat extensions from the authority. Most recently, the JPA approved a two-year extension for phase one through February 2013.

Contact Ryan Vaillancourt at ryan@downtownnews.com

"Los Angeles announces DWP budget cuts"- LA Times

Los Angeles Works — Wed, 06 Apr 2011 12:00:AM PST

Los Angeles announces DWP budget cuts

City officials in Los Angeles announce more than $400 million in budget cuts to the Department of Water and Power. They say the cuts won't affect service and don't involve rate hikes — at least yet.

By Patrick J. McDonnell, Los Angeles Times

April 6, 2011

Los Angeles officials on Tuesday unveiled more than $400 million in cuts for the Department of Water and Power but vowed no service reductions and said the giant utility was not now seeking a rate increase.

"This will enable us to maintain our customer-service quality as it is today," said Ron Nichols, general manager of the DWP, which provides water and power service to more than 4 million city residents and businesses.

The cuts include elimination of funding for the popular holiday lights extravaganza at Griffith Park.

The DWP, like all city entities, is under severe budget pressure. The utility, which generates revenue from the sale of water and power, faces rising fuel expenses, the costs of legal mandates to reduce greenhouse-gas emissions and other pollution, labor costs for more than 9,000 employees and the price tag of replacing aging infrastructure and updating technology.

The DWP's $4-billion annual budget is separate, however, from the city's general revenue fund, which pays for police, fire and other basic services. The general fund faces an estimated $350-million shortfall in the coming fiscal year. Officials are contemplating additional furloughs, layoffs, service cuts and other potential remedies.

The DWP's budget cuts — including a hiring freeze, reductions in nonessential travel and training, and the elimination of take-home vehicles for executives — will focus on the administrative side and not result in slashed services for customers, officials said.

"We're keeping the level of people we need in the customer-service side of things," said Nichols, who took the helm of the nation's largest municipally owned utility in January. "We're making certain we're keeping our people in the field."

The department remains committed to renewable energy sources and its goal to become "the largest clean utility in the country," said Mayor Antonio Villaraigosa, who appeared with Nichols at a City Hall news conference.

The utility is not seeking a rate increase at this point, said Nichols, but he would not rule out such an action later this year.

Among the items eliminated, officials said, was funding for the Holiday Light Festival, the annual light show in Griffith Park between Thanksgiving and New Year's. The DWP has funded the event for 14 of the last 15 years. Also to be cut are two smaller holiday light festivals, in Leimert Park and on the 1st Street Bridge. These cuts will save the DWP $1 million annually, said Joseph Ramallo, a DWP spokesman.

Other DWP savings, Nichols said, are projected in improved collections, reductions in the purchase of trucks, computers and furniture, and abolishing corporate travel credit cards. Additional economies are anticipated from canceling plans to buy property and refinancing existing bonds. No layoffs were announced, but staff levels are expected to be reduced by 500 during the next three years through attrition, Ramallo said.

The reductions will start immediately, Nichols said, and should result in total savings of $460 million in the next three years.

DWP executives have informed union officials about the cuts, Nichols said, which do not affect existing contract terms for unionized workers. Villaraigosa, who has pushed cuts in retiree benefits for other city employees, said pension reform for DWP workers was not part of Tuesday's budget-cutting package.

Brian D'Arcy, head of Local 18 of the International Brotherhood of Electrical Workers, which represents most DWP employees, said in a statement that any proposal "needs to ensure that we maintain reliable delivery of water and power, customer service, needed repairs to infrastructure, and our transition to renewable sources of power."

patrick.mcdonnell@latimes.com

"Tax rule that would've hurt small business is repealed"- LA Times

Los Angeles Works — Wed, 06 Apr 2011 12:00:AM PST

Tax rule that would've hurt small business is repealed

All businesses would have had to file tax forms for every person or company with whom they did more than $600 worth of business in a year. Small businesses protested, saying they would be buried in paperwork, so Congress is reversing course.

By Sharon Bernstein, Los Angeles Times

April 6, 2011

Congress has repealed a tax provision that small businesses said would have buried them in paperwork and forced them to pay for hours of extra accounting services.

The provision, passed last year as a way to raise money to pay for healthcare reform, would have forced all businesses to file special tax forms to report anyone with whom they did more than $600 worth of business in a given year.

The repeal was welcomed by small-business owners and advocates across the nation, who had fought hard to push Congress and the White House to withdraw support from a measure that President Obama had initially favored.

"This would have been an administrative nightmare for small business," said Scott Hauge, a small-business advocate who runs an insurance brokerage in San Francisco. Had it gone into effect as planned next year, Hauge's firm would have had to process 700 of the forms, up from 25 that he has to file currently, he said.

Hauge said he had never seen an issue galvanize the small-business community as quickly or as powerfully as this.

When the provision was initially passed, the Obama administration said the additional paperwork would help the IRS track down people and companies who were not paying all of the taxes that they owe, and would raise $17 billion over 10 years to help pay for the massive healthcare overhaul.

But small-business owners reacted immediately, saying that the measure was unwieldy and unfair. It would have required businesses to send a tax form known as a 1099 to vendors, retailers, utility companies and any other entity they'd contracted with. They also would have had to file a copy of the form with the IRS.

By contrast, the law had previously only required that such forms be filed for freelance workers and others who had been hired as independent contractors.

Because of the outcry, the administration reversed course and agreed to support a repeal. Obama spokesman Jay Carney suggested that the president would sign the bill when it reaches his desk.

"We are open to working with Republicans and Democrats to improve the health reform law, and we are pleased Congress has acted to correct a flaw that placed an unnecessary bookkeeping burden on small businesses," Carney said in a news release Tuesday. "Small businesses are the engine of our economy, and eliminating the 1099 reporting requirement is the right thing to do."

Joseph Czyzyk, the chairman of the Los Angeles Area Chamber of Commerce, said he hopes the repeal means that Congress and the administration will curb its focus on the business community in its efforts to look for tax cheats.

"They're looking in every mouse-hole to see where people may be cheating on taxes, as if that's the way to increase revenue in this country," Czyzyk said. "The Chamber is very glad both the House and the Senate saw eye to eye and did the right sensible thing."

The measure to repeal the tax provision was authored sponsored by Rep. Dan Lungren (R-Gold River). The Senate passed it Tuesday on a bipartisan vote of 87 to 12 after backers said they had found another way to pay for the lost tax revenue.

"ONT draws global interest"- Inland Valley Daily Bulletin

Los Angeles Works — Sun, 03 Apr 2011 12:00:AM PST

ONT draws global interest

Proposals arrive on running airport

Liset Marquez, Staff Writer

Created: 04/03/2011 07:01:37 AM PDT

ONTARIO - So much for worries that no one would want to run L.A./Ontario International Airport.

A search for new management at the troubled airport attracted global interest.

Companies in Germany, India, Korea and Australia submitted proposals to Los Angeles World Airports, the agency which operates ONT but which requested proposals to take over the job.

And two heavyweight firms are among the interested parties: Goldman, Sachs & Co. and the Carlyle Group.

Goldman, Sachs, a global investment banking and securities firm, has assets of $911 billion and more than 35,000 employees worldwide. The company received $5.5 billion in federal bailout funds in 2008.

The Carlyle Group, the second-largest private equity firm in the world, once had former President George H.W. Bush as an adviser.

A presentation to LAWA's Board of Airport Commissioners on the 10 proposals is expected in May. The airport commissioners are expected to make recommendations on the proposals.

LAWA officials have indicated the purpose of the expressions of interest was to inform them as to how best to proceed with operations at ONT.

Gina Marie Lindsey, LAWA's executive director, has referred to the Expressions of Interest responses as encouraging and said they indicate "ONT is a key asset for the city of Los Angeles."

While representatives of the Goldman, Sachs subsidiary said they felt they did not meet the requests outlined in the EOI, they decided to submit a letter offering their opinion after they were "encouraged" to by LAWA representatives and their consulting team.

They admit in their packet that they do not have any airport operating expertise but are shareholders of several airports.

In their proposal, they affirm LAWA's belief that ONT's current situation is a result of the economy.

The firm acknowledges that other factors such as "micro operating issues" have affected ONT's performance and says: "We believe the management opportunity at ONT is one where we, partnered with the right operators, could succeed in improving airport services, minimizing airport services, minimizing costs and improving existing facilities."

The Goldman Sachs subsidiary goes on to state the importance of re-establishing growth "as soon as possible." A further decline in airline carriers could make it unsustainable for all carriers, the proposal states.

Another firm that has shown interest in ONT is the Washington, D.C.-based Carlyle Group, which invests primarily in the aerospace, defense and automotive sectors.

"As an active investor in the public infrastructure sector, Carlyle Infrastructure is enthusiastic about the Airport, and we are eager to conduct further due diligence on this opportunity," Carlyle officials wrote in a letter to LAWA's chief operation officer, Marla Bleavins.

The firm indicates in its packet that it would form a consortium to invest, manage and operate ONT.

While the firm would not handle the day-to-day operations, Carlyle representatives say they would bring in third party advisers for assistance on legal, environmental and tax issues.

"Carlyle has strong relationships within the aviation industry, and we intend to have an operating partner prior to responding to a request for qualifications," the report states.

Ontario officials have asked LAWA to turn over management of the airport to the city.

Ontario Councilman Alan Wapner said city officials are still reviewing the proposals and declined to comment.

While the airport continues to lose passengers, the decline is not as sharp as previous years. In February, the airport reported 690,000 passengers, a less than 1 percent drop from February 2010 when there were 691,000 passengers going through ONT.

"Room to Market"- LA Downtown News

Los Angeles Works — Fri, 01 Apr 2011 12:00:AM PST

Room to Market

New Hotel Marketing District Means Higher Room Rates, but Double the Publicity for the City

by Richard Guzmán

Published: Friday, April 1, 2011 4:31 PM PDT

DOWNTOWN LOS ANGELES - Over the past decade, business improvement districts have become a powerful tool for neighborhoods to provide services beyond those that government delivers. In Downtown and other areas, landowners have voluntarily taxed themselves to raise money that is frequently spent on safety, cleanliness and marketing campaigns.

Now, there is a new twist to the BID movement: Large hotels all across the city are banding together, geographic boundaries be damned.

The City Council on Tuesday, March 29, approved the formation of the Los Angeles Tourism Marketing District. It aims to raise about $11.5 million annually to sell the city.

The new funds more than double the approximate $10 million the city already spends annually on the effort through a small portion of the hotel tax (also known as the Transient Occupancy Tax). It would put Los Angeles on par with competitors in the effort to court business and leisure travelers.

There’s one catch: The agreement, which affects hotels with 50 or more rooms, including more than 20 in Downtown Los Angeles, will levy a 1.5% surcharge on room rates in a weak economy. It’s a calculated gamble officials are willing to take.

“We need to create a sustainable revenue source for marketing Los Angeles so that we can bring more visitors, increase the occupancy at hotels, bring more people to restaurants and other venues so they can spend money in the city,” said Marc Liberman, president and CEO of L.A. Inc., the city’s convention and visitors bureau.

L.A. Inc. will administer the funds collected through the district and run the marketing effort. The scope of that campaign has yet to be determined, but it may include more advertisements in print and online, more ads in trade publications, and additional domestic and international promotions, Liberman said.

“Today there is minimal funding to do this, and we need to effectively compete with other cities that have implemented tourism marketing districts,” he said.

More than 50 cities in California have similar districts and some of them are outspending Los Angeles in marketing, said Liberman. San Diego spends about $26 million annually on promtions, and San Francisco shells out about $23 million a year.

Hotel Driven

The initiative was driven by hotel officials, including several Downtown executives, who two years ago approached 15th District Councilwoman Janice Hahn, the chair of the council’s Trade, Commerce and Tourism Committee. She agreed to help shepherd the marketing district through City Hall.

Hotels owners who would be impacted approved the BID by a 70% vote last year.

The new charge is not technically part of the TOT, since increasing the bed tax would require a public vote. Rather, it is an additional charge hotel guests will see on their bills.

Unlike the bed tax, which mostly goes to the city’s general fund, the new charge is strictly allocated for marketing.

“I like that this idea came from the hotels themselves,” Hahn said. “Other cities have these funding sources in place already and they felt L.A. could really benefit.”

Downtown hotels affected by the agreement include well-known names like the Westin Bonaventure Hotel & Suites, Hilton Checkers, the Millennium Biltmore Hotel, the Omni Los Angeles Hotel and the new J.W. Marriott/Ritz-Carlton.

The changes come as Downtown hotels have seen their business improving. According to Bruce Baltin, senior vice president of PKF Consulting, which tracks the hotel industry, major Downtown hotels ended 2010 with a 64.3% occupancy rate, up from 60.4% the previous year. Average daily rates rose from $133.81 in 2009 to $142.51 in 2010.

Baltin said that the tourism industry is very competitive, and hotels must market themselves and the city in good times and bad.

“Even though L.A. is a strong destination, it’s still very much competing with cities like San Francisco and Las Vegas and destinations all over the world,” he said. “It takes sizeable marketing dollars to do that.”

The approval by more than two-thirds of the impacted hotels indicates that most of them support the measure even if it means higher prices for their customers.

Kathy Faulk, the new general manager at the Omni at California Plaza, said she doesn’t expect the charge will discourage people from staying in hotels. She noted that other cities with similar districts have not seen a negative customer reaction.

“I don’t expect a backlash at all,” she said.

Mike Czarcinski, the managing director of the Westin Bonaventure Hotel, who was part of the planning team for the marketing district, agreed that the new charge will not discourage guests in the near future. Instead, he thinks it will pay off in the long term.

“I don’t believe it’ll put off any guests,” he said. “If this was something that was not in other cities then it may put us at a competitive disadvantage, but all of our major competitors have this.”

Contact Richard Guzmán at richard@downtownnnews.com.

"CEQA: That '70s Law"- LA Times

Los Angeles Works — Wed, 30 Mar 2011 12:00:AM PST

CEQA: That '70s Law

The California Environmental Quality Act was well intentioned, but it has become a job killer.

By Bill Allen and Maura O'Connor

March 30, 2011

t goes without saying: California desperately needs jobs. With unemployment hovering above 12% — second highest in the nation — too many Californians are living with the physical and psychological stress of being unemployed and living without any hope of a way out.

So why then do some of our elected officials still act as though we don't have a serious jobs crisis? Why are they refusing to examine certain politically untouchable, "third rail" laws, even though the original intent of some of these laws has been twisted and abused? One of the worst examples of this "don't dare broach the subject" form of policymaking is the misuse of the California Environmental Quality Act, or CEQA.

Enacted in the 1970s, the goal of CEQA was — and continues to be — a noble one: to make sure that the public is provided with a good-faith assessment of the reasonably foreseeable environmental impact of a proposed project. This information would be considered by the permitting agency before it approved or disapproved the project. However, CEQA has expanded from a thoughtful review for environmental purposes to an unruly set of laws and regulations that add complexity, cost, delay and, most problematic, unpredictability, and too frequently have been exploited for non-environmental purposes. All of this hinders job creation and tax revenue generation.

It is not uncommon for businesses, such as retailers, to organize and fund groups to oppose developments by their competitors under the guise of CEQA. It's also become fairly common for groups with union ties to oppose projects on CEQA grounds in order to extract labor-friendly promises.

Finally, a cottage industry of CEQA lawyers and groups has emerged that oppose far too many developments, threatening or bringing litigation in hopes of simply exacting a financial settlement or "go away" money from the developer of a given project. This is using CEQA to manipulate the law for purposes that have absolutely nothing to do with protecting the environment. The purpose of CEQA was never to help businesses block competitors, help unions squeeze businesses for concessions or help CEQA lawyers enrich themselves.

Abuses of CEQA have proved to be extremely damaging to our economy as well as to our efforts to create what we need most: jobs. The "CEQA gone wild" state of affairs in California has deterred businesses from developing or expanding in the state. Just as important, nonenvironmental CEQA challenges significantly slow previously approved public infrastructure projects. All of this costs Californians jobs.

Just like treating cancer, our most adept lawmakers should perform careful surgery on the law to remove the malignant parts of CEQA that enable the worst abuses of this important and well-intentioned statute. A careful, reasonable approach should make two changes.

The first would be to improve transparency. Every person or group supporting or opposing a proposed project should have to disclose to the permitting agency its identity and that of its members, as well as who is paying its costs to support or oppose the project. This would allow the agency to evaluate whether opposition to a project actually helps protect the environment or attempts to use CEQA for non-environmental purposes.

Second, the state attorney general, as the "people's attorney," should be responsible for CEQA challenges, with the exclusive right to file suit once a project has been certified by its lead agency. This would eliminate the uncontrolled prerogative of any person or group to litigate a permitting agency's decision to approve a project. This would cull those parties who are intent on exacting nuisance settlements from developers, while still protecting a project opponent's right to comment during the very lengthy public review process and to petition the attorney general to file a suit once a project has been approved.

With these changes, the fundamental purpose of the law — to ensure the informed consideration of the environmental impacts of any project by the permitting agency — would remain strong. But the abuses of CEQA — its use for non-environmental purposes — would be greatly reduced. That surgery, swiftly done, might be the right cure for California's jobs crisis.

Bill Allen is chief executive of the Los Angeles County Economic Development Corp.; Maura O'Connor is the organization's chairwoman.

"Making a film about being film friendly"- LA Times

Los Angeles Works — Tue, 29 Mar 2011 12:00:AM PST

Making a film about being film friendly

It looked like any other film shoot in Los Angeles. About 70 cast and crew members converged on a neighborhood in Studio City last week.

Only this wasn't just any ordinary film production. The actors, crew members and vendors were there as volunteers, donating their services to produce a short public service announcement touting the economic benefits of filming in L.A.

The segment will be one of several spots that will be shown at Mann Theatres this summer as part of a campaign, dubbed Film Works, recently launched by FilmL.A. Inc. to promote L.A.'s signature industry, which has been increasingly leaving California.

"The goal is to highlight the economic importance of the industry that plays a vital role in our region and to remind people that when a film shoots in your neighborhood or on your street there are long-term benefits to L.A.,'' said Todd Lindgren, spokesman for the FilmL.A., the nonprofit organization than handles film permits in the region.

FilmL.A. co-produced the spot with the help of Shoot Movies in California, another nonprofit group that has been fighting so-called runaway production. "It's important to send a message to the community of L.A. that there is a problem and the problem is that work is not only leaving the city, but the state,'' said Ed Gutentag, the group's founder.

The 90-second segment features a monologue from actress and singer Tia Carrere ("Wayne's World," "Rising Sun" and "True Lies"). As she steps out of her trailer and walks toward the set, Carrere talks about the role of craft services workers, hairdressers, prop makers and others, pointing out how their work filters down to prop houses, catering companies, equipment suppliers and scores of other vendors.

"When a movie company like this shoots here in California, it puts close to $15 million back in the economy,'' she says. "We need more movies to be shot in California to help California."

That message will be coming soon to a theater near you.

-- Richard Verrier

Photo: Jennifer Eagle, in red dress, and other actors volunteered to shoot a public service announcement in Studio City highlighting the importance of the local film industry. Credit: Anne Cusack / Los Angeles Times

"Downtown’s Quarterback"- LA Business Journal

Los Angeles Works — Tue, 29 Mar 2011 12:00:AM PST

Special Report: BUSINESS PERSON OF THE YEAR

Photo by Ringo Chiu

Leiweke at his L.A. Live office downtown.

By Alfred Lee

Monday, March 28, 2011

When Tim Leiweke was 10, he built a baseball field in his backyard. He carved the baselines with a rake and fashioned home plate out of an actual dinner plate. Then, he acted out each segment of his newly created sports world, not only swinging the bat, but sweeping leaves as groundskeeper and announcing play-by-play in the voices of Jack Buck and Harry Caray, the broadcasters for his hometown St. Louis Cardinals.

“Everyone was pooped from playing outside, and Tim would still be out there doing groundskeeper work,” recalled his younger brother, Tod Leiweke. “If I were gonna put my finger on it, it was because of his love of not just a game, but an event. He was as intense a kid as he is today.”

Today, Tim Leiweke has built an event empire at Anschutz Entertainment Group, which he has guided as chief executive in much the same way he created all the facets of his baseball world as a youth. AEG, after all, is the largest owner of sports teams, the second largest concert promoter and among the largest venue operators in the world.

More importantly for Los Angeles, his belief that large events cannot only make money for his company, but jump-start a new economic and civic ecosystem, has driven AEG’s development of Staples Center and the $2.5 billion L.A. Live complex. The projects have been credited for an economic renaissance downtown.

“I can think of no one in the history of Los Angeles, certainly not in my lifetime, who’s done more for the city, development-wise,” said businessman and philanthropist Eli Broad, a friend of Leiweke’s.

For those reasons, the Business Journal has chosen Leiweke as its Business Person of the Year. He joined the newspaper’s Business Hall of Fame at a luncheon March 22.

Leiweke, 53, is the public face of AEG, which is owned by reclusive billionaire owner Philip Anschutz. In addition to his roles as developer and dealmaker, Leiweke, who was brought out to Los Angeles by Anschutz in 1996, oversees the company’s 50 divisions and 24,000 worldwide employees.

The company’s vast holdings include ownership of the Los Angeles Kings, the Los Angeles Galaxy and a 30 percent stake in the Los Angeles Lakers. It built and owns the Home Depot Center in Carson, where the Galaxy soccer team plays.

But it’s Leiweke’s activities downtown that have drawn the most attention.

Last year, the 54-story Ritz-Carlton and JW Marriott hotel tower, downtown’s first new skyscraper in years, opened across from the Los Angeles Convention Center. It essentially marked the completion of the L.A. Live entertainment complex, which began construction in 2005 and has become arguably the most transformative development in the modern history of downtown.

The tower also features condominiums under the Ritz-Carlton banner. But months before the first condo closed escrow in February, Leiweke began pushing to build a football stadium adjacent to L.A. Live and bring the National Football League back to Los Angeles. It could be his toughest project yet.

“I do think we have a chance to be a place that people come to, whether it be for business, for sports, for entertainment or for fun, and to do a better job at hosting them than any other city in the world,” he said.

“We can build an economic backbone from that philosophy that will get us out of the hole we dug here and begin to solve a lot of our problems.”

In person

Like all great salesmen, Leiweke doesn’t come off as one in person. Aside from the occasional one-liner (“A visionary in L.A. is knowing what route to take downtown when the 10 and 405 are packed”), he doesn’t speak glibly nor does he often flash a toothy smile. There is something decidedly unslick about the way he squeezes his broad frame (his father was a semipro football player) and a slight paunch into tailored suits. He can appear to hunch forward slightly, and his walk is more of a friendly amble than a politician’s glide.

When he sat down with the Business Journal, it had been just days since Staples Center hosted the NBA All-Star Weekend. The previous Thursday, he explained, he had taken 16 appointments from 7 a.m. to midnight. They included the unveiling of a statue of Lakers legend Jerry West outside Staples, a presentation on his NFL stadium plans to a blue-ribbon commission created by Mayor Antonio Villaraigosa and last-minute meetings with National Basketball Association officials about the upcoming weekend.

His cell phone rang at least a half-dozen times during the interview, which started almost an hour late because of other meetings. An AEG publicist also sat in on the interview, and at one point interrupted to show Leiweke a phone message.

The weekend before the all-star game, AEG and the Staples Center had played host to the Grammys – a formerly rotating event Leiweke has managed to keep at Staples since 2004.

“It’s been the longest 30 days of my business career for sure,” he said. “I’m sure from an energy standpoint, not too many people want to do 16 meetings in a day.”

He has no choice but to delegate 100 percent of some duties, such as digging into the company’s books, which he leaves to the chief financial officer. With others, such as the company’s sales and marketing arm, he’s known to get into the weeds and directly make deals.

His management style is driven by a far-flung empire that includes venues in Shanghai, China; London; and Germany, requiring him to spend much of his life on the road, away from his Brentwood home, where he lives with his wife, Bernadette.

His hobbies include golf, although he jokes that “if you saw the way I played, that’d be depressing.” In previous interviews with the Business Journal, he said he enjoys skiing and vacationing at a family cabin in the Colorado Rockies in his free time.

Leiweke’s admirers remark on his seemingly endless reserve of enthusiasm, which along with his ability as a salesman is one of his most commented-on traits. The two aren’t unrelated – many have said that his fervor for a project can be contagious.

“I call him a visionary, a force of nature,” said Villaraigosa, a good friend of Leiweke. “If he believes in something, he’s dogged in pursuit of making it a reality.”

Leiweke calls “passion” both his greatest strength and weakness. He has at times been cast as arrogant and condescending. At a recent press conference, he appeared taken aback by pointed questions over his NFL stadium plan.

“Will everyone just take a deep breath and have a little faith that we’re not going to lie to people? We’re going to do the right thing. Calm down,” the Los Angeles Times quoted him saying.

The remarks fueled criticism, which he admitted bothered him.

“Sometimes people take our passion for arrogance,” Leiweke said. “I think if you go look at football and the way we communicated our vision in the last month … suddenly they think we’re trying to steamroll people. People probably look at our passion and tend to get overwhelmed by it sometimes.”

Indeed, Leiweke has raised eyebrows by how he has pursued the NFL stadium in direct competition to a plan put forward by longtime Anschutz partner Ed Roski Jr. in the City of Industry.

Perhaps it’s his presence in the public eye that also makes Leiweke a private man, who tends to shield his family from his professional life. He admits disliking when his daughter, Francesca, reads criticisms of him in the press. The daughter, a recent Stanford graduate, works for AEG, currently on the NFL project. She is occasionally seen attending games at Staples.

It’s worth noting Leiweke did not allow the Business Journal to interview or photograph him at home, did not provide any personal or family photos for publication and did not respond to follow-up requests to interview his spouse.

L.A. Live

The $375 million Staples Center and $2.5 billion L.A. Live are perhaps the greatest proof of Leiweke’s ability to sell his company’s business interests as part of a grander, more inspiring vision – in this case, a yearning for community and civic pride.

It’s something Leiweke does well when he pitches an idea, said those who’ve seen him in action.

“He could sell you your own house and make you pay more for it, and you’d walk out of there with a big smile on your face,” said Kathryn Schloessman, president of the Los Angeles Sports and Entertainment Commission, which works to attract major sports and entertainment events to the city. “I’ve seen him speak a thousand times, and he never does anything with notes. He speaks for an hour, and it’s mind-blowing how he has it all in his head.”

During the planning stages of L.A. Live, Broad recalled flying out to New York with Leiweke to make a pitch to a roomful of investment bankers. At the time, Broad was looking for investors for the Grand Avenue Project, the billion dollar development around Disney Hall that he has spearheaded, and Leiweke for L.A. Live. Each of them talked for about 15 minutes.

“He tells it as it is – it’s a very believable style to help people understand,” Broad said. “He talked about a larger vision of Southern California as the headquarters of the Pacific Rim – the great cultural scene, the great sports activities, etc. – and how the Los Angeles area has been missing a vibrant center for this region, and how between what’s happening at L.A. Live and Grand Avenue, it was finally coming together.”

Nothing was decided in that one meeting, but at least one investor ended up opening his pocketbook for L.A. Live, Broad said. Also in the audience was Stephen M. Ross, the chairman of Related Cos., the company that eventually signed on as the main developer of the Grand Avenue Project.

“I’ve been accused of being a good salesman, and I guess I am,” Leiweke said. “But I think at the end of the day, that’s not about being relentless or a steamroller. It’s that I’m passionate about our company, our vision and with this project that I think is right for the city.”

When he first pitched L.A. Live, Leiweke spoke of it as the city’s answer to Times Square. Whether that’s been achieved can be debated. But photos of public gatherings at L.A. Live adorning the walls of AEG’s lobby argue it may be on its way – people coming together to watch the Obama inauguration or celebrate a Lakers championship.

“In the last 10 years I would say that Tim and AEG have been the most important catalysts of our (downtown) renaissance,” said Carol Schatz, president of the Central City Association, which promotes area business interests. “Downtown is now completely different and has become an entertainment destination.”

Some critics have accused AEG of overstating the economic impacts of its projects. Leiweke gets worked up about those comments, saying it’s hard to underestimate the impact of Staples Center.

“Because of that building, we built our whole company,” he said. “Anybody that tells me at the end of the day that these types of projects don’t create economic growth, I get frustrated. It’s the catalyst for $3 billion worth of economic growth.”

Leiweke grew up in St. Louis, the fourth of six siblings – Tracey, Terry, Trish, Tim, Tod and Therese. Their father, a semipro defensive lineman, instilled a love of sports from an early age. All four brothers would go on to work in sports in one capacity or another: Tod, most notably, is the chief executive of the National Hockey League’s Tampa Bay Lightning and former chief executive of the NFL’s Seattle Seahawks.

When Leiweke was 12, his mother died of cancer. She had been battling the disease for years. His father remarried, but Leiweke’s new stepmother also soon died of cancer. The tragedies had a lasting impact.

“He saw things that most people shouldn’t see by the age of 18,” said Tod Leiweke. “I think it instilled a drive in our family, but specifically Tim, that remains there today – a drive to succeed, to overcome. The guy’s never met adversity he didn’t think he could overcome.”

Tim Leiweke declined to discuss his mother’s death for this article, saying only that it was a “life-changing experience.”

After high school, he worked at a bakery and a deli and went to community college at night, but never graduated from college.

“I’d much rather have gone to college. But do I feel overmatched or overwhelmed when I’m talking to someone with an Ivy League degree? No,” he said. “I don’t look at them any differently, but I don’t think they look at me any differently either.”

At 21, he started a career in sports as the assistant general manager of the St. Louis Steamers, of the now-defunct Major Indoor Soccer League (since 2008, another league has operated under the same name). In 1981, Leiweke and his brother Tracey teamed up to run the MISL’s Kansas City Comets. Tracey was team president and Tim general manager.

In an early sign of the marketing ingenuity to come, Tim Leiweke devised 2-for-1 ticket promotions, laser and light shows, and giveaways of calendars and posters. Soon, the soccer team was outdrawing the NBA’s Kansas City Kings in the same arena by nearly 2 to 1.

In ’88, he went to work as a vice president at NBA expansion team the Minnesota Timberwolves. Three years later, he said, NBA Commissioner David Stern recruited him to be president of the Denver Nuggets, whose sagging attendance Leiweke quickly turned around.

“I have experienced firsthand the opportunity to tell him I thought he absolutely couldn’t possibly do something, but then watch him do it,” Stern said. “All you have to do is tell Tim something’s impossible and he’ll try even harder.”

He also was put in charge of building a new arena, the Pepsi Center, for the Nuggets’ owners, Comsat. He negotiated the land’s purchase from Anschutz, his future boss.

As part of the deal, Anschutz was to get a 50 percent interest in any expansion hockey team Comsat brought to the new arena. But the company did not launch an expansion team. It brought an existing franchise from Quebec, and squeezed out Anschutz.

The dispute went to court. Leiweke testified on Anschutz’s behalf and resigned from the Nuggets at a tearful press conference in 1995 – not the last time he has had a public display of emotion. (Schatz recalled him tearing up recently at a Central City Association fundraising event when asking donors to come forward to help out Skid Row’s Midnight Mission.)

A year later, Anschutz came calling. He had bought the Los Angeles Kings with partner Ed Roski Jr. out of bankruptcy, and wanted Leiweke to come out to run the team. Leiweke has been with Anschutz since.

The two still talk almost every day. Leiweke said the ideas they discuss are about 25 percent his, 75 percent Anschutz’s.

Anschutz hasn’t given a media interview since 1974 and did not respond to a request for comment through a spokesperson. But Broad, who knows both men well, said he believes much of AEG’s vision comes from Leiweke.

“My guess is it’s mostly his vision, but that it’s a shared vision,” he said. “Obviously Phil has to give the green light, but it probably originates with Tim here. He’s on the ground here and knows all the players.”

Taking chances

To be known as a visionary you have to take risks, and some of Leiweke’s bold strokes over the years have been perceived as failures.

Among his most controversial business moves was the recruitment of David Beckham, who signed a five-year, $32.5 million deal with the Galaxy in 2007. Beckham has missed more than half of the last two seasons, and many people view his stint with the Galaxy as a flop. Leiweke doesn’t.

“If you look at Major League Soccer in this country today, we are much more relevant today than we were five years ago because of David Beckham,” he said. “I think he helped us raise our profile as a league and as a sport in this country.”

In Kansas City, Mo., AEG has taken hits for failing to attract a team as promised to its Sprint Center, which opened in 2007. “I assure you, there is going to be an anchor tenant,” Leiweke was quoted in 2004 saying in the Kansas City Star. But today, it still doesn’t have one.

In 2008, David Cordish, a developer of Kansas City’s downtown Power & Light District – think of a mini-L.A. Live – blasted the nearby arena in an e-mail to the city’s mayor.

“The words ‘gross negligence’ and ‘pitiful’ come to mind,” Cordish wrote. “The arena is a disaster because it has virtually no events and no professional basketball or ice hockey team.”

Leiweke disputes the characterization, saying the Sprint Center is one of the most successful music venues in the country.

“That arena is more than paying for itself,” he said. “We’re sending the city millions more than they ever thought in their best circumstances they’d ever be able to get.”

In an e-mail to the Business Journal, Cordish backtracked, writing: “Tim Leiweke is one of the giants in the industry. The Sprint Center has had a mammoth and incredible effect on the Power & Light District and the city of Kansas City.”

AEG’s entertainment arm, AEG Live, came under fire after the death of Michael Jackson, who had been preparing for an AEG tour, in 2009. AEG Live was sued by Jackson’s family for pushing him through a grueling rehearsal schedule and not properly supervising him. The lawsuit is pending.

“We treated Michael with nothing but respect from day one,” said Leiweke. “We were very aggressive at trying to give him an opportunity to do what he wanted to do with his career, and took a huge risk doing it.”

Then there are $1.2 million in donations that AEG in the last five years contributed to politicians and their causes in California, according to state records. They are donations that haven’t gone unnoticed by critics of the powerful developer. On this note, Leiweke is defensive.

“I have always been politically active because I think it’s not only our right but our responsibility to have a voice,” he said. “I don’t hear anyone complaining about the fact I was the co-chairman of the telephone tax initiative to keep those taxes in place for the city. I didn’t hear anyone bitching at me when I was out there with Chief Bratton and Sheriff Baca trying to raise additional taxes to keep our police force and sheriff’s force intact.”

Last year, Villaraigosa was ensnared in a minor scandal over failing to report free tickets to sports and entertainment events as gifts. Many of them were from AEG. Leiweke disagrees with the ticketing restrictions, and said he would change the law.

“The mayor’s always your city’s greatest cheerleader, and you want him out there front and center,” he said. “Although I’m glad we have definition today on what’s acceptable and what’s not, I think it’s wrong.”

Biggest success?

Leiweke’s next dream is a lot bigger than that makeshift baseball field in his backyard. He wants to build a football stadium in downtown Los Angeles to bring back an NFL team to the city, assuming Anschutz will eventually ante up the money.

“It’s been a dream of his for quite some time, but his boss has been leery about getting into the business,” said recording artist Garth Brooks, who’s worked closely with Leiweke on tours and considers him a good friend. “But this is the time, and he’s doing what he does best and he’s very passionate about this.”

Like L.A. Live and Staples before it, Leiweke is touting the stadium as something that will spur growth and a sense of community downtown. It is to have a retractable roof in order to hold conventions and other events. He’s already had conversations with the Grammys about the possibility of holding the awards ceremony there, and has publicly mentioned the possibility of bringing the Olympics to town.

“People will see it’s exactly what we represent,” he said. “Which is that this is a project that will have zero risk to the city’s general fund, and economically be one of the chief catalysts to drive our economy for the next generation. I’m really proud of that.”

The stadium could go down as his biggest success or his biggest failure. Indeed, the entire notion of an NFL stadium downtown has its share of skeptics, who are concerned about environmental impact as well as potential public costs.

One week last month, Leiweke made presentations to Paul Krekorian and Bill Rosendahl, the two Los Angeles City Council members who have been most critical of the stadium.

“He does his homework,” Rosendahl said. “He knew where I was coming from. He tried to anticipate questions. He came right out and said, ‘It’s not gonna cost the city a dime.’ And I said, ‘I’m talking indirect and direct costs,’ and we went back and forth.”

Krekorian declined to comment through a spokesman.

Leiweke said he came away convinced that at least one of the council members he met with would “reach the right conclusion if given fair and reasonable answers.”

That same week, Leiweke also said he met with a state senator representing the City of Industry, where a rival NFL stadium plan by Roski is in the works. Leiweke declined to name the senator, but a spokesman for Sen. Robert Huff, R-Diamond Bar, acknowledged a meeting.

“Did I turn him?” Leiweke said. “No, I’m not gonna turn him, and I get that. But I wanted him to hear directly from me.”

The competing projects have made a new rival of Leiweke’s old ally Roski and caused some bad blood. In December, John Semcken, vice president of Roski’s Majestic Realty Co., called Leiweke “a bad guy” and his downtown project “a pipe dream in Los Angeles that is confusing to people” in a newspaper interview. Roski was reported to have ordered Semcken to personally apologize.

In recent months, Leiweke has made a trip to Sacramento to drum up support for the project, and thrown his weight behind a proposed downtown streetcar project that he said would benefit both the area and stadium. And, on Feb. 1, the company announced its most promising sign of progress yet – a $700 million naming rights deal with L.A.-based Farmers Insurance.

“I’m glad AEG has an impact on making Los Angeles a better place to live,” Leiweke said. “I don’t want to go play golf seven days a week. I like being a part of everyone’s lives here. I like changing the city. And hopefully when it’s all said and done, we’ll leave a positive mark.”

The Resume

Tim Leiweke has held a series of executive positions throughout his career, mostly in the sports world.

Anschutz Entertainment Group

Los Angeles

Chief Executive, 1999-present

Los Angeles Kings

Los Angeles

President, 1996-1999

U.S. Skiing

Park City, Utah

President, 1995-1996

Denver Nuggets

Denver

President, 1991-1995

Minnesota Timberwolves

Minneapolis

Vice President, 1988-1990

Kansas City Comets

Kansas City, Mo.

President, 1986-1988

Leiweke & Co.

Kansas City, Mo.

Vice President, 1984-1986

Kansas City Comets

Kansas City, Mo.

General Manager, 1981-1984

Baltimore Blast

Baltimore

General Manager, 1980-1981

St. Louis Steamers

St. Louis

Assistant General Manager, 1979-1980

Robert J. Spindle & Co.

St. Louis

Salesman, 1977-1979

"Viewpoints: Compromise offered on redevelopment agency proposal"- Sacramento Bee

Los Angeles Works — Tue, 29 Mar 2011 12:00:AM PST

Viewpoints: Compromise offered on redevelopment agency proposal

Special to The Bee

Published Tuesday, Mar. 29, 2011

After months of contentious debate over the governor's proposal to abolish redevelopment agencies in California, groups representing local governments and redevelopment agencies have offered an alternative proposal that strikes a reasonable compromise for all involved.

This proposal provides the state of California and schools with about $2.7 billion over the next 10 years to help reduce the budget deficit. It also retains redevelopment in California while instituting tough reforms that increase accountability and ensure redevelopment is being used responsibly to maximize job creation, revitalize run-down communities, clean up contaminated properties, finance infrastructure improvements and build affordable housing.

Already, a bipartisan coalition of legislators has come together in support of this alternative package. There are two elements to the package: revenues and reform.

Revenues: Under the plan, in the 2011-12 budget year, redevelopment agencies could voluntarily contribute an equivalent of 20 percent of their net tax-increment funds to local schools instead. These funds may be used from any redevelopment funding source, including low- to moderate-income housing funds.

In addition, agencies could contribute up to 10 percent of non-housing funds that year and each year thereafter for 10 years. In exchange for these voluntary contributions, redevelopment agencies would be granted extensions of their projects' life spans.

After conducting a survey of local redevelopment agencies throughout the state, we estimate this plan would raise $700 million to $1 billion for the first budget year, and an additional $1.7 billion for the following nine years. In all, the plan could mean approximately $2.7 billion over the 10-year life of the proposal, more than what the governor estimates would be available for deficit reduction from the elimination of redevelopment agencies.

And the revenues are far more reliable, because the alternative avoids the costly and contentious litigation that is sure to follow if the governor's plan is adopted. Because our plan calls for voluntary contributions, it doesn't violate the state Constitution or the will of the voters who supported Proposition 22 in November.

Reform: Redevelopment has been a powerful tool to revitalize downtrodden communities and create jobs and economic activity that otherwise would not have occurred. In fact, redevelopment investments and construction activities are responsible for supporting more than 300,000 jobs each year.

While the vast majority of local agencies act responsibly, reforms are needed to increase the accountability and efficiency of all agencies. Toward that end, the California Redevelopment Association has also offered a package of important accountability reforms, including:

• Enhanced reporting: It requires the state controller to update and toughen audit guidelines for redevelopment agencies and requires agencies to file with the state an annual report on their finances and activities. The availability of consistent, transparent audits will lead to more accountability and will help expose any abuses.

• Focus even more on job creation: The reform proposal refines the statutory authority of redevelopment agencies to provide direct assistance to businesses to build new or expand existing manufacturing and industrial facilities to grow jobs. Agencies would also be authorized to assist local businesses with financing for new technologies, machinery and equipment that also expand manufacturing and industrial job-creation.

• Focus on infill development and energy efficiency: The reform would expand redevelopment tools to facilitate intensified infill development of urban areas, including assisting with the creation of commercial facilities, jobs and higher-density residential housing in the urban core, close to public transit. Agencies would also be authorized to provide financial and other assistance to remodel commercial and residential buildings to be more energy efficient to reduce pollution and greenhouse gases.

• Promote more affordable housing: Redevelopment agencies are the second-largest funder of affordable housing in California, behind only the federal government. In fact, since 1993, agencies have helped create nearly 100,000 units of affordable housing.

Our package contains 14 reforms to ensure agencies are spending housing funds responsibly. These include limitations on the use of funds for administration and other significant changes to make agencies spend housing funds more efficiently on the actual production of affordable housing units.

They say politics is the art of compromise, and this package is a reasonable solution to deliver on that promise.

The two-pronged package is constitutional, avoids messy litigation against the state and represents a win-win for our state, local governments and taxpayers. It provides the state with revenues to help bridge the daunting budget gap, while also retaining redevelopment as an important local government tool to create jobs and grow the California economy.

John Shirey is executive director of the California Redevelopment Association.

"Billion-dollar Wilshire Grand project could light up downtown Los Angeles with ads"- LA Times

Los Angeles Works — Sat, 26 Mar 2011 12:00:AM PST

Billion-dollar Wilshire Grand project could light up downtown Los Angeles with ads

City Council expected to approve a sign district for two skyscrapers with lighting from top to bottom, reigniting the debate about outdoor advertising.

By David Zahniser, Los Angeles Times

12:05 AM PDT, March 26, 2011

A pair of new Los Angeles skyscrapers could dramatically alter the lights of downtown, reigniting the city's long-running fight over outdoor advertising.

If developers of the proposed billion-dollar Wilshire Grand project have their way, such colorful images as stars, butterflies and waterfalls would fade in and out along the upper floors of both their planned 45-story hotel and their 65-floor office tower, thanks to thousands of tiny lights embedded in the buildings' surface.

Both skyscrapers would see their lowest 10 floors emblazoned with an array of commercial images, from flashing digital signs to streaming "news ribbons."

Supporters say the plan, modeled after similar technology on the Chanel building in Tokyo and the Cira Centre in Philadelphia, would bring energy and vibrancy to a stretch of downtown — the Figueroa Corridor — that already is being remade by the L.A. Live complex a few blocks to the south.

Opponents say the plan would reopen the way for turning high-rise towers into massive versions of the electronic billboards that have generated protests in many parts of the city.

The debate and lobbying at City Hall are scheduled to come to a key City Council vote Tuesday on allowing the lighted signage. On Friday, the council unanimously agreed to subsidize construction by waiving up to $79 million in hotel bed taxes.

Korean Air, which owns the project and is backed by business groups, unions and high-profile politicians, has the clear upper hand.

But allowing such a vast array of graphics has unsettled some officials, including Planning Commission President Bill Roschen, who has made a living designing buildings with billboards attached to them.

"It is on such a radically different scale than anything we've seen in the city," he said. The vote is not just about a specific signage proposal, he said. "It's about a city skyline." The city shouldn't allow light emitting diodes, or LEDs, on dozens of stories of any skyscraper until it has a plan for regulating such technology citywide, he added.

The debate also involves differing visions of how downtown Los Angeles will evolve. Nearby Grand Avenue, with its museums and concert halls, is being remade as L.A.'s cultural center. Figueroa Street has been steadily moving in the direction of the Las Vegas strip.

Once the council casts a series of votes on whether to create a new sign district around the Wilshire Grand, Korean Air has promised to spend $400,000 to study ways to extend the district south on Figueroa to L.A. Live, which already is emblazoned with spotlights and enormous animated digital signs.

That effort threatens to rekindle the long-running City Hall war over outdoor signs.

For years, as huge billboards proliferated across the city, many neighborhood leaders viewed local politicians as too willing to bend to the wishes of the outdoor advertising industry, which has spent hundreds of thousands of dollars to elect favored candidates.

Then, in 2009, newly elected City Atty. Carmen Trutanich began cracking down on illegal signs. Last year, he began tossing some building owners in jail, alleging that they had covered buildings with unpermitted supergraphics.

Since then, the billboard wars have been quiescent. The fight over Figueroa appears to be the first stirring of a new round.

The proposal put forward by Korean Air and its subsidiary company, Hanjin International Corp., would be visually dramatic. The lower floors of the hotel, planned to open in 2015, and the office tower that is scheduled to be finished two years later, would include an array of animated images, including digital signs that change as frequently as every eight seconds.

The upper 10% of each skyscraper would display digital signs that rotate the names of the project's owner and major tenants. Covering multiple stories of the buildings between the 10th floor and the top would be graphics created with LEDs. The lights would be allowed on 18% of the upper-floor exteriors, according to the company's representatives.

Those lights, spaced six inches apart, would be allowed only between windows, not directly over them. They also could not be used to form words or any kind of advertising logo, such as a Nike swoosh or a Coca-Cola bottle.

Ayahlushim Getachew, senior vice president for Thomas Properties Group, Korean Air's partner on the project, said that type of lighting would be perfect for Figueroa Street, home not only to L.A. Live but also Staples Center, the Convention Center and possibly a new football stadium. Combined with various forms of digital advertising on the lower floors, the technology would lure pedestrians and make Figueroa Street a more vibrant tourist destination, she said.

"When you build new buildings today, this is technology that you have to embrace, because this is what's happening all over the world," she said.

Among the most aggressive advocates for the plan is Councilwoman Jan Perry, a 2013 mayoral candidate.

After the Planning Commission refused to allow architectural lighting on the project's upper floors, Perry persuaded her colleagues to reverse that decision. She also persuaded council members to triple the amount of digital advertising allowed by the commission on a portion of the project that extends as high as 150 feet above the street.

Perry, who represents part of downtown, said she addressed the complaints of neighboring property owners by obtaining a reduction in the brightness of some signs. She argued that the public would have nothing to fear from the electronic display on the building's upper stories.

Having the lights "be shiny, blinding, hideous and ugly would negate the whole purpose of putting them there," she added.

At night, signs on the lower floors of the Wilshire Grand complex would be limited to between 600 and 800 candelas per square meter, a measurement of brightness used by the Planning Department. By contrast, oversized signs at L.A. Live exceed 2,100 candelas, according to a city analysis.

On the upper floors, the colorful images would be capped in nighttime hours at 120 candelas, city officials said. By comparison, the crown of the nearby Library Tower is 66 candelas.

Those restrictions do not reassure Dennis Hathaway, president of the Coalition to Ban Billboard Blight, who said he worries that the upper floor lighting scheme would eventually be transformed into hard-sell advertising. He also complained that public hearings on the project included no video simulation to show how the architectural lighting would work on dozens of upper floors.

"It's obvious that some of those council people think it's just some lighting outlining the building. I don't think they have a clue," Hathaway said.

Getachew argued that although a switch to advertising might one day be contemplated, such a request would need to be vetted by the Planning Commission and council.

"One day we might not be the owners of the site anymore. And if that's so, that's what somebody else might want to do," she said.

david.zahniser@latimes.com

"Enterprise Zones Lure Companies to San Fernando Valley"- Daily News

Los Angeles Works — Sat, 26 Mar 2011 12:00:AM PST

Enterprise Zones Lure Companies to San Fernando Valley

By Dana Bartholomew, Staff Writer

Posted: 03/26/2011 04:12:11 PM PDT

Updated: 03/26/2011 07:39:27 PM PDT

Early this year, Los Angeles lured a major financial software company to move from Calabasas into a newly expanded enterprise zone originally designed to combat blight.

The red-carpet treatment -- subsidized by publicly funded tax breaks -- persuaded BlackLine Systems to relocate 50 employees and hire 40 more at a new headquarters in Warner Center, a swank business district of glassy high rises and upscale condominiums.

"It's not only a land-use decision, but a political compromise between the (City) Council Office and the Mayor's Office," said Cliff Weiss, a regional enterprise zone director for the Los Angeles Community Development Department, which administers the state projects.

"Clearly, there was an interest in maintaining the economic health of the Warner Center, the industrial base of Canoga Park ... Van Nuys Boulevard and Van Nuys Airport."

While the city's two existing and one pending enterprise zones aim to encourage business development and retention in areas that are underserved by business and have underlying poor demographics -- meaning high unemployment, high percentage of low-to-immediate income homes, Weiss said the criteria for their expansions are very different.

The 8,000-acre zone expansion last May included industrial sections of Chatsworth, Northridge, Van Nuys and Sylmar, plus a heavily gerrymandered corridor from industrial Canoga Park into the largely white-collar Warner Center.

In addition, the zone included a section of relatively affluent Ventura Boulevard.

The zone would not only benefit commercial property owners with high vacancies, analysts say, but encircle the Westfield Topanga and Promenade malls -- and its proposed $500 million mixed-use retail development.

Another zone expansion in November included the Corporate Pointe at West Hills, which includes such offices as Quest Diagnostics and Bank of America but is beset by high vacancy rates, including the Boeing Co. office that reportedly vacated Thursday.

"We were told by the mayor's and the council offices that there were plans to develop that area and we wanted to assist that," Weiss said.

The expanded zones not only discourage local companies from accepting low-ball incentives from other states, advocates say, but support hiring professional workers hard hit in a down economy.

"The biggest area that everybody's concentrating on is the underemployed," said Vice President Kenn Phillips of the Valley Economic Alliance.

"Information technology, anything to do with the Internet, banking, real estate, insurance, finance ... those areas really got hit hard, especially in Warner Center, where the vacancy rate went up dramatically.

"The Calabasas company is definitely a victory for the city of Los Angeles."

Others said city economic development officials included the Warner Center area because of pressure from commercial property owners hammered by the recession.

"Those areas were getting blighted," said Armando Jamjian, managing director for Encore Tax Consulting Group.

"Leases were expiring. Large businesses were moving out. It was about to turn into a ghost town.

"By making it an enterprise zone, it gave property owners an edge."

"Gensler Selected to Design Farmers Field"- LA Downtown News

Los Angeles Works — Fri, 25 Mar 2011 12:00:AM PST

Gensler Selected to Design Farmers Field

The rendering that architecture firm Gensler created in December for Farmers Field. Image courtesy of Gensler.

Firm, Which Is Moving Downtown, Also Designed Convention Center Hotel

by Jon Regardie, Executive Editor

Published: Friday, March 25, 2011 3:42 PM PDT

DOWNTOWN LOS ANGELES – The architecture firm Gensler, which has local offices in Santa Monica but is soon moving to Downtown Los Angeles, has been selected to design the $1 billion football stadium and events center in South Park. The decision was announced today by Anschutz Entertainment Group, which hopes to build the stadium.

“It’s a very exciting day for our firm,” Ron Turner, the director of the firm’s Sports/Entertainment division, told Los Angeles Downtown News.

Gensler will now begin to create concept schematic designs for the 64,000-seat stadium with a retractable roof that would rise on the site of the Convention Center’s West Hall. The firm’s design team is being led by Turner and company Principal-In-Charge Andy Cohen.

“Today’s announcement represents a significant milestone and is a further sign that AEG is determined to make Farmers Field a reality while providing the leadership to modernize the Los Angeles Convention Center,” said Mark Romani, president and CEO of Denver-based ICON Venue Group, which is AEG’s “owner’s representative” on the project, in a statement.

Turner said he thinks AEG was won over by a design that has the building not standing out, but fitting as a part of the greater surroundings in South Park.

“It complements the whole campus at L.A. Live and it looks like it fits,” he said. “I know that was always important to [AEG] that the building fits in the campus environment and not be dominant.”

In December, Gensler was one of three firms named as a finalist for the project that is seen as both a home for NFL football and a way for Los Angeles to bolster its convention business. The other finalists were HNTB and HKS Sports & Entertainment Group.

The Gensler renderings unveiled in December depict a stadium with a long, thin oval window placed on its side above the end zone, giving view to the Ritz-Carlton/J.W. Marriott hotel. It showed two levels of luxury suites — Romani previously said there will be more than 200 in the stadium — above the first level of seating. Video screens were in two corners.

Gensler has significant experience with AEG and Los Angeles developments. The firm designed the $1 billion Convention Center hotel and is working on the renovation of the 7+Fig shopping center. Turner also worked on the design of Staples Center while he was with the firm NBBJ.

In February, Gensler announced that it is leaving Santa Monica for a new home in City National Plaza. It will bring 250 jobs to Downtown.

AEG also said that a separate process is underway to select an architect to design the replacement for the West Hall. The new building is slated to be attached to the main Convention Center structure and will be known as the Pico Hall. AEG is asking the city to float $350 million in bonds for the building, which it promises to back.

The stadium itself will be privately financed. AEG and city officials are currently negotiating a deal for the project.

Contact Jon Regardie at regardie@downtownnews.com.

"On Location: State film tax credits are saving grace for 'Amish' TV movie"- LA Times

Los Angeles Works — Tue, 22 Mar 2011 12:00:AM PST

On Location: State film tax credits are saving grace for 'Amish' TV movie

Veteran producer and talent manager Larry Thompson was captivated by the true story of the Amish community in Nickel Mines, Pa., that somehow managed to forgive a gunman who killed five girls in a 2006 schoolhouse shooting.

Thompson believed the story would make for an inspiring TV movie about the power of faith and forgiveness, but he knew the dark subject matter would be a tough sell in Hollywood.

In fact, the Lifetime Movie Network initially passed on the story, though it eventually agreed to broadcast the film. Entitled “Amish Grace,” the TV movie premiered last year on Palm Sunday and was the cable channel’s most-watched original movie in key demographics. It is scheduled to air again April 17.

Getting a faith-based movie produced was hard enough, but getting it made in California required more than divine intervention

Speaking at a hearing in Pasadena City Hall last week about the viability of the state’s film tax program, Thompson said the $2.3-million movie, which his production company financed, wouldn’t have happened at all but for California’s incentives.

“I figured God wanted us to pass this California tax credit just so we could get it done,” Thompson, executive producer of “Amish Grace,” told a crowd at the hearing.

The meeting was hosted by Assemblyman Anthony Portantino (D-La Canada Flintridge), who chairs a state committee that is evaluating California’s film tax incentive program, which offers a 20% to 25% tax credit toward qualified spending on film and TV productions.

Thompson was joined by several other film industry supporters, including representatives from the Screen Actors Guild and the International Alliance of Theatrical Stage Employees, who testified to the effectiveness of the state’s film tax subsidy.

“The tax credit program is our best tool for keeping California competitive," Amy Lemisch, director of the California Film Commission, said at the hearing.

California still faces plenty of competition from other states like Louisiana and New Mexico. (The latter is where the TV shows “In Plain Sight” and “Breaking Bad” are based.) But Lemisch and others argued that the credit is working by keeping production in-state.

Since it took effect in July 2009, California’s film tax credit has allocated $300 million in tax credits to 113 film and TV projects, generating 41,000 jobs and $2.2 billion in spending, including $728 million paid in wages to below-the-line film crews, according to the California Film Commission.

California’s credit is modest compared with what most states offer, but the program aims to lure back low-budget features as well as made-for-TV movies like “Amish Grace” that are increasingly shot elsewhere.

Thompson knows that firsthand. His previous two films were shot in Vancouver and Victoria, Canada, and the last time he shot a movie in California was for the 2000 CBS film “Murder in the Mirror,” starring Jane Seymour.

Initially, he figured he would have to shoot the movie in Michigan or Vancouver, but he concluded that he could do the job for the same money in California when factoring in a tax credit totaling $314,000. Some actors and cast members also were willing to lower their fees so they could stay close to home.

With a cast of about 100 people, “Amish Grace” was shot over just 16 days in December 2009, mainly in the Hidden Valley area of Thousand Oaks, where the crew built a schoolhouse, and a ranch in Moorpark that stood in for the rolling hills of Pennsylvania.

“There’s a value to making a movie in California so you can sleep in your own bed," Thompson said. “I’d like Hollywood to welcome Hollywood home again.”

-- Richard Verrier

"The Omni Vision"- LA Downtown News

Los Angeles Works — Mon, 21 Mar 2011 12:00:AM PST

The Omni Vision

Chaya Donne, director of marketing for the Omni Los Angeles Hotel, in one of the renovated rooms. A $15 million upgrade is set for completion this week. Photo by Gary Leonard.

Bunker Hill Hotel Completes $15 Million Renovation

by Richard Guzmán

Published: Friday, March 18, 2011 4:32 PM PDT

DOWNTOWN LOS ANGELES - Visitors to the Omni Los Angeles Hotel at California Plaza may not see all the recent changes right away.

Upon entering, their attention will likely still focus on the 3,000-pound “Yellow Fin,” a steel sculpture inside a glass atrium by David Stroymeyer. It is one of the few things left untouched during a $15 million renovation set to be completed this week.

Almost everywhere else, things are very different. The hotel at 251 S. Olive St. was basically gutted as 17 floors were refurbished.

The four-month transformation of the 19-year-old structure brought new furnishings, new artwork, 42-inch flat-screen TVs and new carpeting. More importantly, it signals the hotel’s intent to jump into a recovering and more competitive market, one that is seeing an increase in demand and supply.

“I think there’s probably never been a better time to be coming out of renovation. For us the timing was pretty perfect,” said Ed Netzhammer, the Dallas-based regional vice president of Omni Hotel and Resorts. “We could not be happier with the fact that we are going to be completed as the industry bounces back.”

The hotel remained open as crews worked on two floors at a time during the renovation. About $17,000 was spent on each of the 453 guest rooms, which were transformed to reflect an “old Los Angeles glamour” style, hotel officials said.

“Every guest room has been completely gutted and renovated from wallpaper to carpet, to fixtures, furniture and televisions,” said Chaya Donne, director of marketing for the Downtown hotel.

The original California-style rooms, with light carpets and blonde-colored furniture, have been outfitted with richer colors and deep mahogany tones. The custom-made furniture includes new desks, accent tables, beds, headboards and showers.

Bulky armoires that could not hold flat-screen TVs were replaced with entertainment centers that also house the mini-bar. The hallways got new carpeting with overlapping circles and ovals that create a more energetic feel. In a nod to the neighborhood, artwork focusing on Downtown landmarks like City Hall has been placed throughout the building.

The meeting spaces also received new carpeting, while all of the wood in the 8,500-square-foot ballroom was restained to a darker, richer color.

Even the food has been tweaked. A new menu was introduced at the Omni’s signature Noé Restaurant and Bar — the cuisine has shifted from progressive American with a Japanese influence to bistro-style comfort food.

Staying Competitive

The Bunker Hill structure opened in 1992 as the Intercontinental Hotel. It became the Omni Los Angeles Hotel at California Plaza in 2001. This is the second major renovation since the name change at the four-star establishment, Netzhammer said.

“I think it clearly makes us one of the best hotel products in all of L.A. and Downtown,” he said.

Most of the Omni’s customers are made up of business travelers, including attorneys, bankers and corporate clients.

Experts agree that renovations are important in order to stay competitive in Downtown, especially following the 2010 opening of the 1,001-room Ritz-Carlton/JW Marriott at L.A. Live. That has already helped spike convention business in Downtown, which in turn has pushed business higher across the board.

Bruce Baltin, senior vice president of PKF Consulting, which tracks the hotel industry, said that the major Downtown hotels ended 2010 with a 64.3% occupancy rate, up from 60.4% the previous year. That increase comes even with the additional 16.4% in supply generated by the Ritz/JW Marriott, he said.

“Downtown is getting to be a well-regarded destination, and frankly that had not been the case in the last few years,” he said. “Now that the market is coming back in Downtown, it’s critical for hotels to upgrade and become modernized.”

The Omni is not alone in deciding to upgrade. Last year, the Westin Bonaventure launched an extensive, approximately $40 million renovation of the 1,354-room Financial District establishment. In South Park, work continues on the renovation and re-branding of a former Holiday Inn on Figueroa Street into a Luxe Hotel. The work is turning 200 rooms into 180 larger rooms and suites.

Donne said the Omni renovation was originally scheduled to take place a couple of years ago, but it was delayed as plans expanded. That had a benefit — a decrease in costs due to the downturn in the economy allowed Omni to save about $500,000.

Still, the $15 million is money well spent, Donne said.

“We obviously need to keep up with the Joneses and we have a big guy down the street that we’re competing with, the Ritz-Carlton and JW Marriott,” she said.

Netzhammer said that the Omni’s occupancy rate did not waver much even in lean economic times, but rates did fall after the hotel found itself offering discounts to fill rooms. With the renovation and improving market, he expects to return to normal pricing with rates ranging from $189-$389 a night.

“We expect to see fewer discounts and specials than we had when the economy went down, and more regular rates,” he said.

Meanwhile, the “Yellow Fin” in the lobby will remain untouched for the foreseeable future.

Contact Richard Guzmán at richard@downtownnews.com.

"San Fernando Valley businessman Moss nominated for LADWP board"- 89.3 KPCC

Los Angeles Works — Mon, 21 Mar 2011 12:00:AM PST

San Fernando Valley businessman Moss nominated for LADWP board

March 21, 2011 | Molly Peterson | KPCC

The San Fernando Valley businessman nominated for L.A.'s Board of Water and Power Commissioners makes his first appearance before a City Council committee this week.

Richard Moss runs a commercial real estate development company in Encino. When Mayor Antonio Villaraigosa nominated him to join the board that oversees the Department of Water and Power, he pointed to Moss’s day-to-day work with real estate law and financial plans as the right kind of experience. Moss also chairs ValPAC, the political action committee for San Fernando Valley business issues.

Water and Power commissioners in L.A. weigh in on key decisions about energy development, transmission and sources that will affect energy bills. They’ll also look at water rates and water rationing as California and Los Angeles continue to cut back on use, particularly outdoor watering.

Moss will appear before a special meeting of the L.A. City Council’s energy and environment committee Tuesday. Once the City Council confirms him, Moss will join the board’s four other members for meetings at DWP headquarters on Hope Street.

"In Redevelopment Fight, Only the Taxpayers Lose"- Daily News

Los Angeles Works — Sat, 12 Mar 2011 12:00:AM PST

In redevelopment fight, only the taxpayers lose

Posted: 03/12/2011 06:53:49 PM PST

Updated: 03/13/2011 08:46:53 AM PDT

WHEN the dust finally settles in the battle sparked by Gov. Jerry Brown's proposal to disband California's redevelopment agencies - and claim the billions of dollars that goes into them - the only winners will be those who wage the war between state and local governments. Namely, the lawyers and the lobbyists.

It surely won't be the public who wins, no matter how the squabble ends. Indeed, the taxpayers are almost guaranteed to lose in the tussle over the state's 398 redevelopment agencies. At the very least, it will result in the loss of the public money spent since January fighting Brown's redevelopment raid proposal. At the worst, it will throw cities into chaos and cause widespread economic injury as projects already under way fall into limbo.

And we get to pay for it all.

The California Redevelopment Association and California League of Cities, on behalf of their member cities, struck back at the governor's proposal with a well-funded campaign that includes press conferences, an interactive website (protectourlocaleconomy.com), radio ads and massive lobbying of legislators and journalists. If that barrage doesn't work, redevelopment agencies are prepared to hit the state with lawsuits.

It's hard to say exactly how much this has, or will, cost the public. The CRA and League are associations funded by cities like Los Angeles, and lobbying for the redevelopment agencies is one of the things they do for their dues. But it's clear there are other costs, as well.

L.A., which has the state's largest redevelopment agency, CRA/LA, has the most to lose in this fight. Last week, the City Council approved requests by CRA/LA to, among other things, pay a special communications consultant $50,000; pay the California Redevelopment Association $27,220; extend contracts with 19 law firms for unspecific legal needs and pay two law firms $700,000 "for advice and potential litigation related to proposed redevelopment legislation" as well as represent the agency in existing litigation filed by the LAUSD and the Los Angeles Community College District (more lawsuits that siphon off more public money into the pockets of lawyers).

Surely, many other cities across the state are taking similar steps.

The Daily News has supported the concept of ending or retooling the state's redevelopment agencies. The efficacy of redevelopment zones has long been a source of debate. While there's evidence that the agencies have done some economic good in depressed areas of cities, they've also funneled millions of dollars in public money into sweetheart deals for connected developers. As well, the application of the definition of "blight" has been liberally applied, allowing cities more money and more power over public land than they ought to have.

But what's becoming clear is that this fight isn't about ending a program with questionable results, at all. It's a money grab of the $5 billion in annual tax revenue that local redevelopment agencies collect. That's 12 percent of statewide property tax revenue.

Worse, the legislation that the governor has put forward to dismantle the agencies does it by essentially throwing them over a cliff. Nor is it as simple as it seems. The redevelopment projects aren't simply going to disappear, and someone's got to oversee them. As such, the governor's plan must create oversight boards for every single state agency. Where's the sense in that?

To be sure, the opposition by the state's redevelopment agencies is somewhat self-serving. The governor's proposal would dissolve them at the end of June, dumping thousands of people out of their nice city jobs. Still, they've got a strong point that this is not the right way to eliminate a government program decades in the making.

Indeed, if the elimination of an ineffective tool were the objective, rather than that $5 billion, the intelligent approach would be to gradually end redevelopment zones by prohibiting any new ones. Existing projects would slowly come back onto the tax rolls over the year and the redevelopment experiment would slowly fade away. The transition would be slow but orderly, an incremental process with the state getting a larger share of tax money every year. But that's not the proposal on the table, and what is, is hard to swallow.

Meanwhile, the taxpayers will continue to foot the bill until this debate is resolved. That could be soon, if the governor drops his plan, or it could come after months of litigation that only siphons more public money into private pockets.

There's no doubt that it is time for California to reassess redevelopment zones and reconsider their continued existence - but not like this. This proposal has devolved into a messy fight that's likely to cost the public without accomplishing anything meaningful.

Mayor Antonio Villaraigosa's NFL Blue Ribbon Comission

Los Angeles Works — Wed, 09 Mar 2011 12:00:AM PST

Mayor Antonio Villaraigosa's NFL Blue Ribbon Comission

The Blue Ribbon Commission - comprised of volunteers and civic leaders - is chaired by First Deputy Mayor Austin Beutner and Sony Pictures Chairman and CEO Michael Lynton. The Commission was formed to ensure that the City carefully reviews the impact on the Convention Center, job creation and the City's financial position.

The Blue Ribbon Commission has formed four subcommittees: Fiscal Impact, Job Creation, Environmental Impact Review, and Convention and Tourism. The committee will hear from representatives of AEG who will make presentations to inform and educate the committee and the public on their plan. At each meeting, the subcomittee will ask AEG's representatives questions to analyze their presentation. It will also be open for public comment from community and business group leaders.

These are the dates and locations for the events:

March 4th, 2011 1:00pm- 2:30pm
Venue: Galpin Ford Motors
15505 Roscoe Blvd 91343
(OPENED TO THE PUBLIC AND PRESS)

March 7th 2011, 8:00 am-9:30am
Venue: South LA Constituent Services Center
8475S. Vermont Ave 90044
(OPENED TO THE PUBLIC AND PRESS)

Tuesday, March 8, 2011, 8:00 - 10:00 AM
Building and Safety Commission Hearing Room, Room 900
201 N Figueroa StreetLos Angeles, CA 90012
(OPENED TO THE PUBLIC AND PRESS)

March 8th 2011 3:30pm-5:00pm
Westfield Office
1801 Avenue of the Stars
(OPENED TO THE PUBLIC AND PRESS)

To read more about the fiscal impact meeting, Click Here

To read more about the job creation meeting, Click Here

We welcome comments and questions - please contact us at dteventcenter@gmail.com

"Council backs $930M take of CRA funds"- Daily News

Los Angeles Works — Tue, 08 Mar 2011 12:00:AM PST

Council backs $930M take of CRA funds

BUDGET: Money for redevelopment shifted to shield it from the grasp of Gov. Brown.

By Rick Orlov, Staff Writer

Posted: 03/08/2011 08:23:52 PM PST

Updated: 03/08/2011 08:25:47 PM PST

In an effort to thwart Gov. Jerry Brown's plan to eliminate community redevelopment agencies statewide, Los Angeles will take over $930 million in local CRA projects, the City Council decided Tuesday after a lengthy and contentious debate.

Brown has proposed shutting down the more than 400 agencies and using their tax revenue to fund education and help balance the state's $26 billion deficit. The Legislature is expected to vote as early as Thursday to abolish the agencies, although Los Angeles and other cities have vowed to sue to block the action.

The council debated five hours before voting 12-2 to order the drafting of an ordinance that would transfer 33 project areas from CRA/LA - an independent agency under state law - to the city's Community Development Department. Councilmen Paul Krekorian and Greig Smith opposed the action, which came in 33 separate votes.

"I believe the most important thing we can do today is to encumber these assets to protect our investment," said Councilman Herb Wesson, who had hoped to negotiate a compromise with the state.

"What we are attempting to do is protect assets important to us."

CRA General Counsel Kelly Martin said the city also needs to look at challenging the state in court.

"We will try to get it enjoined from being enforced," Martin said. "But if we are not successful, people will be putting down their pencils as of June 30 (the end of the fiscal year).

"Some existing projects will go forward, but most will be shut down."

Some council members were reluctant about the sweeping scope of the action and the hurried pace at which it was adopted.

"I want us to be in the strongest position possible but don't want to approve projects until we can vet them more," Councilman Bill Rosendahl said. "I would like us to invite the governor here to explain to us what he's doing."

Brown spokesman Gil Duran said the governor was disappointed with the efforts to shield CRA money.

"It's a shame that at a time when school districts are laying off teachers or increasing class size, that cities like Los Angeles are trying to keep money behind a wall and not allow it to be used for vital programs," Duran said in a telephone interview.

Krekorian complained about the sudden need to take quick action without giving city officials more time to review the proposals.

"I'm not comfortable voting on something as complicated and involving so much money without further study," Krekorian said.

"If we take action today, can we change it later?" he asked. "I think the discomfort some of us have is we never heard of some of these items. I get we want to get it all nailed down, but I'm not sure that's the best approach."

Other jurisdictions around California are looking at similar steps to circumvent Brown's plan.

If the state legislation is approved, it also will abolish the CRA commission and create a new panel heavily weighted toward county government. The city of Los Angeles would have one appointee to the panel.

State Controller John Chiang released a report on Monday that found problems in 18 redevelopment agencies around the state, including Los Angeles. He questioned the funding of certain projects, delays in making tax payments and questionable reporting practices.

A spokeswoman for Mayor Antonio Villaraigosa said the governor's legislation puts the city at severe financial risk.

The CRA has said that under Brown's budget plan, 70 percent of redevelopment funds spent in the project areas would instead be used by the state for other uses. Officials estimate the loss to Los Angeles of $88 million next year.

Villaraigosa and the mayors of the state's eight other large cities sent a letter to legislative leaders protesting the planned CRA takeaway.

The proposal "will have a disastrous impact on cities, counties and the entire state economy," the letter said. "The legislation is terrible public policy destined to create far more litigation and economic dislocation and far less revenue than estimated," the letter said.

Council members cited a number of projects within their district that had been bolstered by the CRA, from Hollywood and downtown to North Hollywood and the central San Fernando Valley.

Councilman Tony Cardenas said the CRA has helped with a number of projects in his district, including the Panorama Tower, Panorama City infrastructure and a number of housing projects.

"If the state Legislature and the governor take away our city funding and authority to govern redevelopment agencies, job growth will crumble in the city," Cardenas said.

During the hearing, the council heard from supporters of redevelopment on specific programs around the city, as well as critics who said the council was not clear on the action it was taking.

Other critics complained about the CRA providing money to developers, such as billionaire Eli Broad for his proposed downtown art museum.

However, Estella Lopez, director of the Central City East Association, was among the CRA supporters who said the CRA is helping with the economic rebirth of the area east of downtown.

"Without CRA we wouldn't be able to have job attraction and job retention," Lopez said. "The CRA, more than any other agency, has been able to put the homeless in affordable housing."

Russell Brown of the Downtown Historic Preservation Committee, said the CRA had helped revitalize the downtown business district with its adaptive reuse policies.

"The CRA provided design improvement grants and lighting and helped change the area," Brown said.

Laurie Goldman, a member of a citizens advisory commission for CRA projects in the Hollywood area, said the revival of Hollywood would not have been possible without the CRA's investments there.

" Local Business, Environmental, Labor Leaders Sign on to Support CLEAN LA Solar Program"- Business Wire

Los Angeles Works — Thu, 03 Mar 2011 12:00:AM PST

Local Business, Environmental, Labor Leaders Sign on to Support CLEAN LA Solar Program

Diverse consortium of stakeholders endorse letter to city officials backing the nation’s largest rooftop solar proposal

LOS ANGELES--(BUSINESS WIRE)--In the broadest show of support to date, a wide-ranging coalition of area stakeholders is calling on city leaders to back an innovative solar energy program proposed for the region.

Officials from such varied organizations as the Los Angeles Area Chamber of Commerce, the Southwest Regional Council of Carpenters, the American Lung Association in California and the Sierra Club signed a letter endorsing the CLEAN LA proposal spearheaded by the Los Angeles Business Council (LABC).

The CLEAN (Clean Local Energy Accessible Now) LA proposal would allow businesses and residents to install solar panels on their roofs and sell the power generated back to the local utility, creating the largest program of its kind in the United States. Known in policy circles as a feed-in tariff, or FiT, the plan would create $500 million in local investment and create 900 high-paying jobs each year for the next five years, all with a minimal impact on ratepayers.

“Los Angeles ratepayers deserve to profit from the power that solar energy produces,” said LABC President Mary Leslie. “That’s why this unprecedented group of community leaders and industry stakeholders agree that renters and owners must be able to generate solar power and sell it back to the grid in LA.”

The March 1 letter to Mayor Antonio Villaraigosa, members of the City Council, and leaders from the Los Angeles Department of Water & Power requests that the program be funded in the LADWP’s upcoming Integrated Resource Plan.

“Adopting this pioneering program will help Los Angeles distinguish ourselves as a true leader in the growing clean energy field,” said Bill Corcoran, Western Region Director for the Sierra Club’s Beyond Coal campaign. “Harnessing our abundant sunshine will help Los Angeles move away from dirty, dangerous and increasingly expensive coal-fired power.”

During the past two years, LABC has worked with researchers from UCLA to design a model for an efficient and effective solar program. The LABC-led CLEAN LA coalition is calling on the city to back a five-year, 150-megawatt FiT that would start in July, and take advantage of up to $300 million in federal tax credits to businesses and home owners to cover the costs of installing solar panels.

Mayor Villaraigosa first called for a solar FiT program in 2009, and has renewed his commitment on multiple occasions. The City Council is now reviewing the CLEAN LA solar proposal, and is working toward enactment in partnership with the LADWP.

“The city’s workforce can benefit tremendously from the high-paying jobs the CLEAN LA Solar Program can create over the next five years,” said William G. Luddy, Legislative Director of the Southwest Regional Council of Carpenters. “An investment in this program is an investment in the growth of a vigorous renewable energy industry that can energize the economic health of this entire region.”

LABC hopes to eventually expand the CLEAN LA plan to 600 megawatts, with the balance being achieved by 2020, to generate more renewable energy and be most cost-effective over time.

"Big Bump for Wilshire Grand Project"- LA Downtown News

Los Angeles Works — Fri, 25 Feb 2011 12:00:AM PST

Big Bump for Wilshire Grand Project

The proposed lighting plan for the Wilshire Grand project is depicted in this rendering showing an “LA” illuminated on the building. Rendering by Rios Clementi Hale Studios.

Protests Pit Some of Downtown’s Biggest Players in High-Stakes Battle

by Ryan Vaillancourt

Published: Friday, February 25, 2011 5:09 PM PST

DOWNTOWN LOS ANGELES - Facing mounting pressure from Financial District property owners to rethink pieces of the planned $1 billion Wilshire Grand hotel and office tower development, the City Council’s Planning and Land Use Management Committee last week delayed a decision on the mega project.

Brookfield Properties, which owns the 7+Fig shopping center and the high-rise immediately south of the hotel, as well as the office tower north of the Wilshire Grand, is appealing a laundry list of pending entitlements for the hotel project. The firm believes the development would devalue its office high-rises.

Brookfield is targeting the hotel plan’s proposed digital signage and lighting, its parking plan, its proposed use of a helipad and a slew of other proposals already cleared by the city Planning Commission.

“The fact is that signage and lighting of this scope and brightness will have a serious impact on our ability as property owners to lease space in our buildings,” said Bert Dezzutti, senior vice president of Brookfield’s Southern California operations.

Broadway Partners, the owner of the Wedbush building at 1000 Wilshire Blvd., immediately west of the hotel site, is challenging the Wilshire Grand project’s traffic circulation plan. Company officials fear the hotel project will snarl traffic and disproportionately impact their tenants. They want the Department of Transportation to add a third northbound left-turn lane to eastbound Wilshire Boulevard and two additional lanes to Francisco Street before allowing the project to continue

The opposition struck a chord with the PLUM Committee at the Feb. 22 meeting.

“We’ve had a lot of questions raised, we’ve had a lot material submitted to us very recently,” said Second District Councilman Paul Krekorian before the committee delayed the vote.

The challenges threaten to slow the project by building owner Hanjin and its development partner in the deal, Thomas Properties Group. To date, the project has enjoyed significant political support. Ninth District Councilwoman Jan Perry, who urged the committee to approve the project and the signage plan, is a chief backer.

The project also has the support of key labor groups, thanks to a deal that would preserve jobs for current hotel employees. A cadre of union workers, some of them in maid uniforms, helped pack the PLUM hearing.

Perry said that time is of the essence for the project — it has financing in place, but the money is contingent on securing city approvals by March 30, she said. The project is due to go before the City Council on March 9, which would still be possible if the PLUM Committee approves the project on March 1.

Keeping that schedule may, however, hinge on TPG reaching agreement with the hotel’s neighbors.

“[Brookfield] is willing to continue to put in the effort required to solve the significant problems raised by this project, but if they are not solved we are prepared to do whatever is necessary to protect the value of our premier assets,” Dezzutti said.

Bright Lights, Big City

Thomas Properties Group and Hanjin envision a two-tower complex, with a 45-story, 560-room hotel with up to 275,000 square feet of commercial space comprising phase one, and a 65-story office building coming later. They hope to begin razing the existing hotel in December.

The proposal to include what TPG calls architectural lighting on the facades of the two towers, along with an array of digital signage closer to the ground, has been a sticking point throughout the entitlement process.

In December, the Planning Commission axed the architectural lighting proposal, and approved a scaled-back digital signage plan for the lower levels. The developer is appealing that decision, maintaining the lights would be akin to those at L.A. Live.

Dennis Hathaway, who runs the nonprofit Coalition to Ban Billboard Blight, disagrees.

“[The architectural lighting] is unprecedented,” said Hathaway. “There’s no other building in the city anything like this.”

If the project is approved, however, it may not be the only building with such lighting for long. Perry is looking to fold into the Wilshire Grand’s entitlements a new sign district that would apply to similar projects along Figueroa Street. She has proposed amending the project’s entitlements to require the developer to pay $400,000 for the Planning Department to study such a district, which would stretch between Seventh Street and Olympic Boulevard.

With the project due back before PLUM on Tuesday, Thomas Properties Group officials are trying to reach accord with their neighbors. The firm will not, however, back down from its pursuit of architectural lighting and expanded digital signage, said Ayalushim Getachew, TPG senior vice president.

“What you have to remember is we’re building the first new office building in Downtown in over 22 years,” Getachew said. “This system that we’re proposing of architectural lighting, it’s new to the city of L.A., but not new to anywhere else in the world.”

Contact Ryan Vaillancourt at ryan@downtownnews.com.

"Valley's enterprise zone gets big supporters"- Daily News

Los Angeles Works — Sat, 19 Feb 2011 12:00:AM PST

Valley's enterprise zone gets big supporters

By Gregory J. Wilcox, Staff Writer

Posted: 02/19/2011 01:00:00 AM PST

Gilbert V. Gonzales' pitch paid off in a pretty big way.

Gonzales is a senior director in Mayor Antonio Villaraigosa's Office of Economic Development and his territory is the west San Fernando Valley.

He is also a key link in persuading BlackLine Systems, a financial software company, to move from Calabasas to Warner Center.

"I was doing basic `Outreach 101,"' Gonzales recalled. "That's how we got BlackLine."

It's an example of how the city's often-maligned business development effort sometimes yields a positive result.

Early last spring, Gonzales pitched the financial benefits of locating in the Valley's newly expanded enterprise zone to a gathering of business people at the Warner Center Marriott.

Matthew Heyn, a broker for CB Richard Ellis, was in the audience and he had some encouraging news for Gonzales. His client, BlackLine, had outgrown its Calabasas headquarters and might consider a move to Los Angeles.

Heyn arranged a meeting with Gonzales, BlackLine officials and Mark Mullen, the chief operating officer of the Economic Development Office. With information about the tax breaks and other incentives available through the enterprise zone, they were soon able to close the deal.

"They were very helpful to us in navigating the city channels," Heyn said. "It was a very smooth process once they made the initial introduction."

Heyn said the enterprise zones in the Valley and other parts of Los Angeles are an important tool in helping the city compete with neighboring municipalities for business.

"Cities outside Los Angeles have been selling themselves on the fact that don't have a (business) tax for years and this helps counteract that," Heyn said. "I think companies are starting to recognize that."

Gonzales said that the city has been actively pitching the expanded Valley enterprise zone, which officials say has created or retained about 4,000 Valley jobs since its inception last spring.

The office's business development specialists also make five cold calls each week - and the reception is not as chilly as you might think.

"In this business climate ... when the Mayor's Office outreaches, it makes them feel like somebody cares about them," Gonzales said.

"L.A. economy could get boost from film and TV production, forecast says"- LA Times

Los Angeles Works — Wed, 16 Feb 2011 12:00:AM PST

L.A. economy could get boost from film and TV production, forecast says

A Los Angeles County Economic Development Corp. forecast to be released Wednesday says the sector will continue to add jobs this year, as will international trade and tourism, though growth will be slow.

By Alana Semuels, Los Angeles Times

February 16, 2011

Film and television production in Los Angeles could help rouse the area from its economic stupor, although growth will be slow this year and next, according to a forecast scheduled to be released Wednesday by the Los Angeles County Economic Development Corp.

"We're looking at an economy that is poised to start to growing again in 2011," said Nancy Sidhu, chief economist of the LAEDC.

The motion picture and TV production sector added 16,500 jobs in 2010, becoming one of the fastest-growing employment sectors, according to the forecast. It will continue to add jobs this year, as will international trade and tourism, Sidhu said.

L.A. County is projected to add 24,100 total jobs in 2011. But its unemployment rate, which was 13% in December and averaged 12.5% for all of 2010, will creep down only slightly this year to an average of 12.4% in part because of continued cuts in government employment, according to the forecast.

Residential building will remain slow because the county still has an oversupply of apartments and condos. The forecast predicts that the county will issue 8,490 residential building permits in 2011, down by about two-thirds from 2006, when it issued 26,300 permits. That number will rise to 13,055 units in 2012.

The state is in slightly better shape than Los Angeles, Sidhu said.

"California is a little bit ahead, and in 2011, we're looking to see the improvement spread," she said.

Areas with a heavy presence of technology firms are leading the growth, she said, including San Jose and San Diego. Manufacturing employment is also trending up.

The state's unemployment rate will hover around 12.1% this year, Sidhu said, declining to 11.5% by 2012.

California's budget woes will continue to plague job creation in the government sector, according to the forecast, and areas with weak housing markets will also be a drag on growth.

Still, the state's economy seems to have stabilized, Sidhu said.

"A year ago, this was much more in flux," she said. "To me, today, it looks pretty good."

"BlackLine Systems To Hire 40 After Move to Valley"- SF Valley Business Journal

Los Angeles Works — Tue, 15 Feb 2011 12:00:AM PST

Tuesday, February 15, 2011

Financial software provider BlackLine Systems plans to hire 40 new employees as a result of new economic incentives it will receive through its relocation from Calabasas to Woodland Hills.

Through the State Enterprise Zone’s hiring tax credit, BlackLine Systems plans to hire the new employees within the next year, which will be added to the 50 employees the company will already be bringing in the move.

The enterprise zone was expanded last year within the San Fernando Valley and other parts of Los Angeles.

BlackLine Systems will also be able to take advantage of the city of Los Angeles’ recently adopted Business Tax Holiday, which will allow it to become exempt from paying the gross receipts tax for three years. Once the city’s local preference policy is adopted, the company will also qualify to receive an 8-percent preference on all city contracts.

“The City of Los Angeles has been very proactive in terms of educating us on our options, supplying us with the information and research we needed to move our decision along, and answering our questions,” said Mario Spanicciati, executive vice president of operations for BlackLine Systems. “In order to handle our continuing fast growth and maintain BlackLine’s reputation for providing world-class service to our clients, we are very excited to move to a bigger space in the popular Warner Center are of Woodland Hills.”

BlackLine Systems’ revenues increased by more than 50 percent in both 2009 and 2010, and it has more than tripled its staff over the last two years.

Jessica Vernabe

"Downtown L.A. businesses expect big profits on NBA All-Star weekend"- LA Times

Los Angeles Works — Fri, 11 Feb 2011 12:00:AM PST

Downtown L.A. businesses expect big profits on NBA All-Star weekend

With the Staples Center area transformed with the addition of high-end hotels and the L.A. Live complex, one forecast estimates the NBA All-Star weekend will generate more than $85 million in spending.

By Hugo Martín, Los Angeles Times

While merchants in Texas count their profits from Super Bowl XLV, downtown Los Angeles business owners are hoping for a big score from their own high-profile sporting event next weekend.

Downtown businesses expect to reap hefty profits when the NBA All-Star weekend rolls into Staples Center, drawing thousands of big-spending celebrities, professional athletes and die-hard hoops fans for four days of basketball, dinners and parties.

Although Los Angeles hosted the annual basketball celebration seven years ago, economists predict this year's event will generate even more profits. Now, visitors are expected to spend throughout the city but particularly at the trendy clubs, shops and restaurants at the L.A. Live entertainment complex and the 54-story JW Marriott and Ritz-Carlton hotel tower built next to Staples Center over the last three years.

An economic-impact forecast commissioned by the LA Sports and Entertainment Commission, a nonprofit group that promotes sports and entertainment events in the city, estimates the event will generate more than $85 million in spending. That is an increase of at least 7% compared with the spending by visitors and locals during the NBA All-Star weekend in 2004.

"If they are going to spend $85 million, I need to get me some of that," Bell Cab driver Juan Rizo joked as he waited for customers near Staples Center, the home arena for the NBA's Lakers and Clippers and the NHL's L.A. Kings.

Already, restaurant managers, shopkeepers and fans as well as cab drivers are gearing up for the events, Friday through Monday. Staples Center has a capacity of about 19,000 for basketball games, but local boosters expect the event to draw at least 100,000 fans and participants.

The All-Star game itself is set for 5 p.m. Sunday, Feb. 20.

At Rock'n Fish, a seafood restaurant at L.A. Live, general manager Luis Villaneda plans to add extra staff to handle the crowds during the event.

"An event like the NBA All-Star weekend will bring in lots of business," he said. "It will be like a big convention. It's a captive audience."

During the NBA All-Star weekend in 2004, Staples Center was surrounded by uninviting stretches of parking lots, warehouses and tired-looking office buildings. Today, the parking spaces and warehouses have been replaced by swanky clubs and restaurants like the Conga Room, Katsuya and WP24 at L.A. Live.

In 2004, most of the athletes and VIP guests stayed in hotels in Beverly Hills and partied at nightclubs in Hollywood. This year, NBA players and celebrities are expected to stay at the new 1,001-room JW Marriott and Ritz-Carlton hotel tower, within walking distance of the arena.

Organizers of the event also expect fans and athletes to spend most of their time and money at restaurants and clubs around Staples Center.

For example, actor Jamie Foxx will host a concert Thursday night at L.A. Live's Club Nokia, which has a capacity of 2,300 people. NBA star Shaquille O'Neal will host two nights of comedy Friday and Saturday at the 7,000-seat Nokia Theater at L.A. Live.

NBA officials said they chose Los Angeles to host the event again partly because of the new development around Staples Center.

"As a destination city with warm weather and all the new resources, that makes it a very appealing destination," said Ski Austin, NBA's executive vice president of events and attractions.

Since the JW Marriott and Ritz-Carlton hotels opened in the glass tower next to Staples Center last year, the Rivera Restaurant on Flower Street has been booked solid almost every weekend, said Matthew Washton, the restaurant's director of operations. The All-Star events are sure to draw even more patrons to the bar, he said.

Said Washton: "We are ready for anything that comes our way."

Fans are also excited about the event.

Sam Alipio, a youth basketball coach from Palos Verdes Estates, has been to the last seven NBA All-Star weekends and is paying to bring several of his players to the events in Los Angeles.

"I am very much looking forward to making it eight straight NBA All-Star weekends, coming back here to my hometown, Los Angeles," he said.

Economic-impact forecasts for Super Bowl XLV at Cowboys Stadium in Arlington, Texas, ranged from $30 million to more than $600 million. But Planalytics, a Pennsylvania business forecasting firm, estimated that direct spending for the game was $200 million to $250 million and would have been as much as $25 million higher if a severe winter storm hadn't moved into the area days before the game.

When the All-Star weekend was held at Cowboys Stadium last year, a California-based consultant hired by the NBA's Dallas Mavericks estimated that the event would generate $152 million in spending in North Texas.

But critics and Texas economists who studied tax revenue reports after the event said the estimate was greatly exaggerated. A Mavericks spokesman declined to return several calls for comment about the forecast.

Phillip Jones, president of the Dallas Convention and Visitors Bureau, declined to comment on the economic-impact study but called the event last year "very successful."

Cowboys Stadium, the world's largest domed stadium, held 108,000 spectators for the game, making it the basketball game with the highest attendance in history, according to the Guinness Book of World Records.

"Overall, the city was completely full," Jones said. "Thousands of visitors from throughout the country showed up."

Roy Weinstein, president of Micronomics Inc., the Los Angeles consulting firm hired to estimate the economic effect of the All-Star weekend in Los Angeles, said he studied economic-impact forecasts for several previous sporting events and found that the spending projections were sometimes overly optimistic.

For his latest study, Weinstein said, he was careful not to exaggerate the effect of the event in Los Angeles. "In this case," he said, "every effort was made to be conservative."

"Grand Avenue Project to Be Scaled Down"- LA Downtown News

Los Angeles Works — Thu, 10 Feb 2011 12:00:AM PST

Grand Avenue Project to Be Scaled Down

Bill Witte, west coast president of Related Companies, developer of the $3 billion Grand Avenue project known as The Grand. Photo by Gary Leonard.

Developer Looks to Delay Gehry-Designed Towers, Again, and Proceed Instead With Single Apartment Building

by Ryan Vaillancourt, Staff Writer

Published: Wednesday, February 9, 2011 6:11 PM PST

DOWNTOWN LOS ANGELES - Related Companies, the developer of the long delayed, $3 billion Grand Avenue mega project, is working on plans to fast track a scaled down residential tower originally tied to a later phase.

The firm had been facing a Feb. 15 deadline to break ground on the Frank Gehry-designed first phase of the project. On Monday, the Grand Avenue Authority, a joint city county panel overseeing the project, is slated to consider a two-year extension that Related has been seeking since August.

But as Related looks to buy more time for phase one, which would add two luxury residential towers with a boutique hotel and 250,000 square feet of retail, it is actively working on plans for an apartment tower on a different parcel.

“We are working on a proposal for the Grand Avenue Committee and joint powers authority ultimately to consider that we believe would be financeable and feasible in today’s climate,” said Bill Witte, president of Related California.

The tower would rise on what is currently a surface parking lot on lower Grand Avenue, south of Gen. Thaddeus Kosciuszko Way and the planned Broad Art Foundation museum. The site, known as parcel “M,” is owned by the Community Redevelopment Agency. The phase one parcel, immediately east of Disney Hall, is owned by Los Angeles County.

The site was environmentally cleared for two condo towers of up to 35 stories. But Related, which is working with the CRA on schematic designs for the tower, now envisions a shorter apartment tower, likely between 20 and 23 stories, Witte said. Twenty percent of the units would be reserved for affordable housing.

Councilwoman Jan Perry, who sits on the five-member Grand Avenue Authority, said she is in favor of the proposed tower if it proves financially feasible.

While demand in the condo market doesn’t support the cost of new construction, current economics may support a purely rental project, said Witte. He pointed to 717 Olympic and the Watermarke Tower in South Park as examples of recent new rental projects that have worked in Downtown.

There remains no concrete timeline or budget for the new proposal. The new tower, which does not yet have an architect, would still require financing. Related is expected to submit schematic designs for the tower to the CRA this month.

Same Waiting Game

Related’s request for a two-year extension to break ground on phase one — which occupies the county owned parcel “Q” — is just the latest in a long string of delays. The firm was supposed to break ground in 2007, then 2008 and then in Feb. 2009, when the Grand Avenue Authority granted a two-year extension that expires Feb. 15. The firm has openly discussed the need for another two-year extension since last summer.

The delays have come at a price for Related. Witte said the firm has so far sunk more than $100 million into the project, including $56 million to fund the Civic Park — the only aspect of phase one that is under construction (it’s expected to be completed in May 2012). Other costs include fees to Gehry and other designers.

The company has so far accrued about $6 million in penalties with the joint powers authority for not meeting its timeline. The first two-year extension came with a $250,000 per quarter fee for not breaking ground. Under terms of the proposed extension through Feb. 2013, the $250,000 quarterly accrued costs would cease. Instead, Related would pledge $1 million to the authority upon groundbreaking. In total, the firm would be on the hook for $7 million in fees if the extension is approved and phase one breaks ground by February 2013, Witte said.

The proposed extension comes with a key caveat: If the authority can show that another large scale, $500 million mixed use project in the state has secured financing, Related will have only six months to break ground on phase one or lose its development rights.

Meanwhile, the county parcels across from Disney Hall — including the plot immediately east of the phase one site, which is tabbed for phase three — are operating as surface parking lots.

Some critics of The Grand, including Los Angeles County Supervisor Michael Antonovich, have called for scrapping the plan all together. Antonovich has repeatedly viewed Related’s extensions as needlessly tying up valuable county land. Antonovich, however, does not have a vote on the five-member joint powers authority.

His colleague on the board, First District Supervisor Gloria Molina, whose district includes Downtown, is likely to support the extension.

“Why go forward with Related? The answer is simple,” said Gerry Hertzberg, Molina’s policy director and a member of the Grand Avenue Committee, which advises the authority. “They’ve operated in good faith, and the market is very flat for large scale projects…we don’t exactly have other developers knocking on our door.”

Master Plans

Perry said she has not yet decided how to vote on Related’s extension request. She said she first wants to hear from the authority’s legal advisors on Monday about the implications for the city-owned, phase two parcels if phase one gets another extension.

There is, however, clear precedent for changing phase two without affecting phase one. The first major change to phase two came when the authority approved Related’s swapping of land originally tabbed for retail development for Eli Broad’s $100 million contemporary art museum.

The CRA plans to invest $52 million in a parking facility under the museum, as well as a public plaza just south of the museum and wider sidewalks along Grand Avenue. The plaza would sit on a platform above Gen. Thaddeus Kosciuszko Way, making it level with upper Grand Avenue and the museum’s ground floor.

As the CRA boosts its investment in the Grand Avenue improvements, and parcel “M” gets on the fast track, the balance of the joint powers authority is, at least for the moment, leaning toward the city.

Hertzberg said there is no competition between the county and city’s interests on the authority. But Perry said that the difficult market conditions have caused both sides to look more closely at their respective assets.

“My concern extends to the fact that we’re under one umbrella in the authority and I think each one of us, the city and county respectively, would like to exercise control over their own asset in the most advantageous way in terms of getting it developed that didn’t exist there before,” Perry said. “So I think that is the ever present tension on the board.”

"Robert F. Kennedy, Jr. Offers Support for CLEAN LA Solar Program"- Business Wire

Los Angeles Works — Wed, 09 Feb 2011 12:00:AM PST

Robert F. Kennedy, Jr. Offers Support for CLEAN LA Solar Program

Largest-in-the-Nation Rooftop Solar Proposal Moves Closer to Fruition as Business, Labor, Community & Environmental Leaders Lend Support

LOS ANGELES--(BUSINESS WIRE)--Respected environmentalist and clean-energy pioneer Robert F. Kennedy, Jr. today added his voice to the chorus in support of the CLEAN LA solar proposal, which would harness rooftop solar power to create the largest program of its kind in the nation. Kennedy joined dozens of business, labor, community and environmental leaders who have signed on to the plan that was created jointly by the Los Angeles Business Council and UCLA.

“Los Angeles is the home of sunshine and innovation,” said Kennedy, who is president of the Waterkeeper Alliance. “It is time to harness both of those great resources using market-driven solutions to achieve our clean-energy future. The CLEAN LA solar proposal is a hugely important step in making that future a reality.”

Kennedy went on to express his appreciation to local leaders for their work to design a model that can be used in other cities and states. “I applaud the City of Los Angeles for embarking on this ambitious program and expect that it will serve as a model for municipalities across the nation,” he said.

Los Angeles City Councilwoman Jan Perry, Chair of the Energy and Environment Committee, welcomed Kennedy’s support for the proposal, which she has been shepherding through City Hall during the past year. At her direction, utility executives and business leaders have been working together to achieve consensus on the best way to adopt the CLEAN LA solar plan in the City of Los Angeles.

“It says a lot about this proposal that a respected national environmental leader such as Mr. Kennedy is lending his support,” Perry said. “We are proud to have his help in enacting this program for Los Angeles.”

During the past two years, the Los Angeles Business Council (LABC) has worked with researchers from UCLA in designing the model for the CLEAN LA solar plan, which would enable businesses and residents to install rooftop solar panels and sell the energy generated to LADWP. The resulting program would create local clean-energy jobs, provide abundant renewable energy and do so at a cost that is competitive with other sources of energy.

The CLEAN LA solar coalition, led by LABC, is working in partnership with the City on a five-year, 150-MW program, which would generate $500 million in local investment, create approximately 4,000 job-years in the greater Los Angeles area, and have a minimal ratepayer impact of 19 cents per month for the average residential customer. (A job-year is economic investment sufficient to employ one person for one year.)

Essential to the success of the program is the use of federal tax credits, currently in place through 2016, which will provide as much as $300 million to local businesses and homeowners for solar installation. Ideally, this program would be scaled to 600 MW, with the balance being achieved by 2020, to be most cost-effective and achieve savings over time. The CLEAN LA solar proposal, known in policy circles as a feed-in tariff, or FiT, would be by far the largest of its kind in the nation.

LABC President Mary Leslie noted the extraordinary degree of consensus among a variety of constituencies, all of which have embraced the CLEAN LA solar program.

“We are proud to have a wide coalition of business, labor, environmental and community support,” Leslie said. “The CLEAN LA solar program is a smart, cost-effective solution to our need for reliable, renewable energy. It will bring jobs and clean energy to Los Angeles, and it will do so in a way that is fiscally responsible.”

Business leaders have expressed support for the plan, and have indicated their desire to participate.

“The CLEAN LA solar plan offers real incentives for local businesses to green their business operations, achieve significant reductions in operating costs and receive a return on the capital invested in installing solar panels,” said Brad Cox, Senior Managing Director for Trammell Crow Company. “This is certainly the case at The Trammel Crow Company, one of the leading national real estate development and investment firms, where we would implement new investments in installing rooftop solar panels if the LADWP were to adopt the CLEAN LA solar program."

A list of endorsers and a fact sheet about the program are also available.

"Architecture Giant Gensler Moving Downtown"- LA Downtown News

Los Angeles Works — Thu, 03 Feb 2011 12:00:AM PST

Architecture Giant Gensler Moving Downtown

The architecture and design firm Gensler imagines a colorful renovation to its new space in the "Jewel Box" at City National Plaza.

Firm Ditches Santa Monica After 20 Years

by Ryan Vaillancourt, Staff Writer

Published: Thursday, February 3, 2011 4:04 PM PST

DOWNTOWN LOS ANGELES - Gensler, a global giant in the architecture, design and planning industries, has signed a 12-year lease to move into City National Plaza in Downtown after more than 20 years in Santa Monica.

The firm designed the Ritz Carlton/J.W. Marriott hotel at L.A. Live, is handling an overhaul of the 7+Fig shopping center and is among three finalists to design AEG’s proposed NFL stadium in South Park.

Gensler will take the top two floors of the “Jewel Box,” a three-story building between the twin 52-story towers of Thomas Properties Group’s City National Plaza. The Gensler space currently measures 32,000 square feet, but the firm plans to build a mezzanine level that will expand its footprint to about 45,000 square feet.

Gensler Los Angeles currently has 250 employees and the company intends to expand by more than 40% in the next five years. The firm also leased 5,000 square feet in the building’s basement concourse level.

“Our site selection hinged on finding non-traditional space of the right size and in a desirable location that would provide great raw material for our design team,” said Gensler Managing Director Rob Jernigan, who credited the city’s “Business Tax Holiday” program for luring the firm away from Santa Monica.

The program exempts new Los Angeles businesses from gross receipts taxes for three years.

"New SBA programs aim to boost loans to small firms"- LA Times

Los Angeles Works — Mon, 31 Jan 2011 12:00:AM PST

New SBA programs aim to boost loans to small firms

The agency will guarantee up to 85% of the amounts through its Community Advantage and Small Loan Advantage programs, with maximum loans of up to $250,000.

By Cyndia Zwahlen

January 31, 2011

A small-business owner could get up to $250,000 in capital under new loan initiatives being rolled out by the federal government.

The new Community Advantage loan program to be launched this spring is geared to underserved markets, including firms less than 2 years old, small businesses in low- to moderate-income communities and those owned by veterans.

The loans will be made directly to small-business borrowers by nonprofit lenders including the Valley Economic Development Center in Van Nuys. Such groups previously were not allowed to make loans guaranteed by the federal Small Business Administration.

"It's going to be a game changer for many of us who are trying to do lending to minority populations" said Roberto Barragan, president of the valley center, which provides business training and financing through seven offices. Loans under the new program will probably be available starting in June, he said.

Previously, the center and similar groups had to get banks to approve and issue loans to their clients, and those approvals became harder to get as banks tightened credit.

Also this spring, the SBA will launch the Small Loan Advantage program. It will allow loans of up to $250,000 too, but by larger, existing SBA lenders, especially banks. There are fewer restrictions under that program on who the loans can go to compared with Community Advantage.

The SBA, which has had a hard time getting banks to make relatively small loans, hopes to attract more lenders by guaranteeing as much as 85% of the loan amount under both programs. By comparison, the existing SBA Express loan program guarantees 50%.

Banks may not find them particularly profitable, but small loans are just what new businesses and small firms need.

The SBA unveiled the Community Express loan program as a pilot in 1999 to address that need. But most SBA-approved lenders did not participate in the program, which had a high default rate and came to be dominated by a few lenders, including two in California.

One of those California lenders, Innovative Bank of Oakland, was closed by regulators in April and had its assets taken over by Los Angeles-based Center Bank, which has no intention of continuing in the Community Express loan program, said Angie Yang, senior vice president at the bank's holding company, Center Financial Corp.

That has left a number of California small-business development groups without a loan product for their clients that are not quite bankable. The Community Advantage loans are meant to help fill the gap.

Bigger loans might be available to small businesses under the new program because direct lenders, including CDC Small Business Finance of San Diego, probably will be able to lend more to a company than when banks call the shots.

"We are more of a cash-flow lender ourselves, so we will look at a small business that maybe doesn't have an excess of collateral," said Robert Villarreal, senior vice president of CDC. "We feel very comfortable with our underwriting."

The new loan policies could be good news for small-business owners such as Jose Calero, co-owner of LapWorks Inc., a home-based business in Rancho Cucamonga. He wanted a $114,000 Community Express loan from CDC last summer to take advantage of an opportunity to expand his online laptop accessories into retail stores. But CDC was able to give him only $50,000, the maximum allowed by its partner bank, and he couldn't get a traditional bank loan.

"If we are denied the resources and funding to help our businesses grow, then we are shooting ourselves in the foot," said Calero, who had to pass on expanding into retail stores. "It is us, the small office, the home office, that are making a big impact today" on the economy.

"Los Angeles Airport reports +4.5% rise in 2010 passengers "- Moodie Report

Los Angeles Works — Thu, 27 Jan 2011 12:00:AM PST

Los Angeles Airport reports +4.5% rise in 2010 passengers

By Martin Moodie

US. Los Angeles International Airport (LAX) reported this week that total passenger volume for 2010 was up +4.5% in 2010, to 59,069,409.

There was a +4.1% growth in domestic passengers to 43,134,145, while international traffic grew by +5.5% year-on-year to 15,935,264.

“LAX is experiencing increased passenger and cargo volumes due to continued improvement in the global economy, further assisted by added service on existing routes from several domestic and international airlines, as well as by new airlines to new destinations, including Alitalia to Rome and All Nippon Airways to Tokyo Haneda,” said Gina Marie Lindsey, Executive Director of Los Angeles World Airports (LAWA), which owns and operates LAX. “Our statistics show that upward movement in traffic continues to be the norm.”

Los Angeles International Airport is the seventh-busiest airport in the world, offering more than 565 daily flights to 81 destinations in the US and over 1,000 weekly non-stop flights to 66 international destinations on nearly 65 passenger and 20 all-cargo airlines.

LAX is part of a system of three Southern California airports – along with LA/Ontario International and Van Nuys general aviation – that are owned and operated by LAWA, a department of the City of Los Angeles.

"Shenzhen and Los Angeles: The Beginning of an Electric Relationship"- Green Tech Media

Los Angeles Works — Thu, 27 Jan 2011 12:00:AM PST

Shenzhen and Los Angeles: The Beginning of an Electric Relationship

LA drive system supplier Balqon and China battery-maker Winston Global partner up for heavy duty.

Realizing President Obama’s highest hopes for selling “all kinds of stuff” to China, LA-based Balqon Corporation (OTCBB: BLQN) announced a $15.9 million deal to sell 300 of its heavy-duty electric drive systems to Shenzhen, China’s Winston Global Energy. The company expects the sale to allow them to add 150 Los Angeles County jobs in manufacturing and engineering over the next eighteen months. But that’s just part of the deal.

Winston Global Energy President and CEO Winston Chung, the inventor of the lithium-rare earth battery, said he expects to buy 500,000 of the $53,000 Balqon drive systems for use in fleets of 15- to 40-passenger electric buses over the next five years. But that’s just part of the deal.

Balqon President and CEO Balwinder Samra explained that the drive system sale is part of a reciprocal relationship the two companies are developing in which Balqon will send its high quality heavy-duty electric vehicle drive systems to China and Winston Global will send its heavy-duty batteries to the U.S.

“It’s a relationship we have with them where we are exclusive distributors of their batteries in North America,” Samra said. They have a formal three-year agreement. “When you form this sort of partnership,” Samra added, “you create this balance in the relationship. They continue to innovate on the battery side, we continue to innovate on the drive side.”

The reciprocation stands to make both partners major players in the as-yet little-tapped heavy-duty EV market. “We will be selling drive systems to them for the Chinese market but similarly we’re buying batteries from them for the whole North American market.” `The two potentially very big emerging markets, which a recent Pike Research study predicted to keep growing at least through 2015, add up to one humongous chunk of customers.

On the face of it, Winston Energy’s decision to import the 100-horsepower Balqon drive systems seems impractical. The expense of shipping the 38-inch-long, 28-inch-wide, 22-inch-high, 1,500-pound drop-in combination electric motor and drive systems would seem not to be cost-effective. However, Samra said three factors make undertaking the expense a smart investment.

First, Balqon’s drive systems are perhaps the most proven available, having been used in a variety of heavy-duty transport situations. Second, Balqon consciously keeps the price of its product uniquely low. Third, the partnership between the two companies makes the success of each a success for the other. They are literally invested in one another.

The lithium-rare earth battery developed by Chung, which uses yttrium as its ionic element, is heavier than the lithium-ion batteries used in EVs like GM’s Chevrolet Volt and Nissan’s Leaf. Unlike in the cars, where every ounce and square inch is precious, heavy-duty truck, bus and RV applications do not struggle with greater size and weight. For this reason, the range of heavy-duty EVs can be much greater than that of the cars and charge times can be much shorter.

Also, Samra added, yttrium is abundant and therefore inexpensive in China, allowing Winston Energy to make and deliver its batteries cost-effectively. Lithim-rare earth batteries are also less prone to the overheating issues of lithium-ion batteries, allowing them to do heavy-duty work and recharge quickly.

Chung was unwilling to detail his expectation of sales in the North American market but said he expects the partnership’s battery-drive system production capacity to be unable to keep up with market demand.

Samra said Balqon will explore a variety of battery market opportunities. “We have to look at energy storage,” he suggested. “These batteries are more suitable because they are large format batteries with 10,000 amp-hour type cells.” He said he also expects them to find smart grid applications.

"Top 10 Reasons Los Angeles is a Leading Cleantech City"- Clean Techies

Los Angeles Works — Thu, 20 Jan 2011 12:00:AM PST

Top 10 Reasons Los Angeles is a Leading Cleantech City

Los Angeles is known first and foremost for its colossal influence on the entertainment industry but aside from Hollywood, LA is a bustling, massive industrial hub where labor, business and government efforts are working together to make the city’s industries sustainable as well. With access to the ports, a strong, skilled workforce, a robust university presence, and industry groups such as CleanTech Los Angeles, the city is primed for growth in the cleantech sector. Here’s the top 10 ways/reasons Los Angeles is having a large influence on cleantech.

1. Los Angeles is No. 1 with most cleantech companies in California. According to a report released by the Environmental Defense Fund (EDF) in August 2010, Los Angeles County tops the state with 490 businesses and work places that specialize in five sectors of cleantech industry: low-carbon energy, energy efficiency, transportation, green buildings and carbon markets. The data includes both public and private sector employers and shows that the number of cleantech businesses and green work spaces is up by 60% from 2009..

2. Los Angeles is a true solar city. Solar LA is the largest and most ambitious solar plan undertaken by any single city in the world. Initially unveiled by Mayor Villaraigosa and the Los Angeles Department of Water and Power in late 2008, it lays out a far-reaching course of action to create a network of residential, commercial and municipally-owned solar structures to replace more volatile fossil fuels, such as coal during peak energy demand.

3. Los Angeles is funding its own policy goals. Led by Mayor Antonio Villaraigosa, the City of Los Angeles and the State of California have driven innovative policies shaping the green economy in the region. From the green building ordinance, to renewable energy standards, The LA River Revitalization Plan, Solar LA to the Mayor’s Water Plan, the City leadership is finding solutions for both the region’s environmental needs and to drive international and local markets. Since 2008, the city has been investing more than $10 billion to drive the green economy and the cleantech industry. The mayor’s leadership, which has been called, “bold and visionary,” is backed by unified support of city policies and regulatory incentives.

4. Los Angeles is committed to collaboration. CleanTech Los Angeles (CleanTech LA) brings together business, government, and academia to grow the cleantech sector in Los Angeles.
Founded in 2009, CleanTech LA works to promote sustainability and economic growth by connecting LA’s cleantech professionals, telling LA’s cleantech story to the world, and supporting collaborative research, technology commercialization and job creation. With the right mix of organizations, CleanTech Los Angeles shows a serious commitment to growing and leading the cleantech industry in Los Angeles, and a serious potential for success. Its goals are to create jobs, stimulate demand and to facilitate environmental solutions. Member organizations include: Los Angeles Mayor’s Office, The Community Redevelopment Agency of the City of Los Angeles, UCLA, USC, Caltech, Jet Propulsion Laboratory, Central City Association, Los Angeles Area Chamber of Commerce, Los Angeles Business Council and the Los Angeles County Economic Development Corporation.

5. Los Angeles is a magnet for cleantech investment. Investors love Los Angeles. According to Ernst & Young, Southern California is a prime place to invest, second only to the San Francisco Bay Area. In 2009, Sothern California received annual investment of $329.5 million. Some of these investors include, but aren’t limited to: Craton Equity Partners, DJF Frontier, NGEN Partners LLC, and US Renewables Group.

6. Los Angeles at the forefront of research. Los Angeles is crawling with engineering schools and boasts one of the top clusters of research universities in the world. Alone, the city will be receiving nearly $40 million in DOE funds to accelerate scientific breakthroughs needed for “build a 21st century economy.” Caltech, UCLA and USC were among 46 sites selected by the U.S. Department of Energy Office of Science in 2009 to receive investment funds over five years for Energy Frontier Research Centers related to advanced materials and solar energy.

7. Los Angeles is pioneering the green port. PortTechLA is a clean technology incubator located adjacent to to the Port of Los Angeles in San Pedro. It is establishing a new technology-driven economic base for the San Pedro Bay port communities, and helping meet the environmental goals of the Ports’ Clean Air Action Plan. PortTechLA identifies, attracts and mentors companies with advanced technologies to enable sustainable port growth through environmental stewardship, as well as efficient and safe flow of international trade to and from ports.

8. Los Angeles is smart. The Smart Grid Demonstration Project provides $60M of federal matching funds for the development and demonstration of smart grid energy management solutions in LA. This five year project was awarded on a competitive basis and is the largest single award of its type in the country. In late 2009, the Los Angeles Department of Water and Power (LADWP) in conjunction with the consortium of other CleanTech LA partners, including USC, UCLA and JPL, was awarded funding on behalf of the The Smart Grid Demonstration Project, part of the American Recovery and Reinvestment Act (ARRA) and a program of the U.S. Department of Energy (DOE). The grant provides financial support for organizations who
are innovative in their approach to applying and integrating existing and emerging smart grid technologies.

9. Los Angeles has the vision for urban cleantech design. The Southern California Institute of Architecture and The Architect’s Newspaper extended an open invitation for a competition to re-imagine, re-invent and revolutionize LA’s urban fabric into shades of green. Entrants to the Clean Tech Corridor and Green District Competition were asked to move beyond industrial uses to create an integrated economic, residential, clean energy and cultural space through architectural and urban strategies. The competition winners were announced in October 2010. At the awards ceremony, Mayor Antonio Villaraigosa said it’s his aim that the Green Corridor will transform LA’s downtown industrial core “into an incubator for green jobs and technology” and that it will lead to sustainable growth for LA’s economy as well as place LA at the forefront of the cleantech revolution.

10. Los Angeles has staying power. As the leader in fashion, aerospace, entertainment, health services, tourism and (moving toward a leading role in) clean technology, the world looks to Los Angeles to define the trends and the cool factor in manufacturing. As the city’s cleantech influence grows, other cities and states are looking towards Los Angeles (and California at-large) for inspiration, best practices and validation of both technologies and policies. While some trends may come and go, cleantech is a movement that is propelling cities like Los Angeles into lasting leadership roles in the 21st century.

Shawn Lesser is the president and founder of Atlanta-based Sustainable World Capital, which is focused on fund-raising for private equity cleantech/sustainable funds, as well as private cleantech companies and M&A. He is also a founder of the GCCA Global Cleantech Cluster Association

"Green Jobs Showed Strong Growth in California in 2008, Data Show"- LA Times

Los Angeles Works — Wed, 19 Jan 2011 12:00:AM PST

Green jobs showed strong growth in California in 2008, data show

Clean-tech and alternative-energy firms added 5,000 jobs, a survey by Next 10 found. About 174,000 Californians were working in eco-friendly fields by early 2009, with nearly a quarter of the jobs based in L.A.

By Tiffany Hsu, Los Angeles Times

January 19, 2011

Jobs at clean-tech or alternative-energy companies have flourished in California, with nearly a quarter of them based in Los Angeles, a new study has found.

Employers offering jobs in fields such as solar-power generation, electric-vehicle development and environmental consultation added 5,000 jobs in 2008, the latest data available. In all, about 174,000 Californians were working in eco-friendly fields by early 2009, compared with just 111,000 in 1995, said nonprofit research group Next 10.

The study, which culled data from government and private reports, was released late Tuesday.

The so-called green workforce expanded 3% from January 2008 to January 2009 — three times the growth of overall employment around the state. Standouts include the energy-generation sector, which includes renewable-energy efforts such as wind and hydropower.

"There's very few business sectors that can employ people across every region, especially in a state as big as California," said entrepreneur F. Noel Perry, who founded Next 10. "Green is providing a very solid foundation for future growth."

The Bay Area grew the most, with an 8% jump in 2008. The region now represents 28% of green jobs and 26% of companies offering the positions.

San Diego had a 7% boost as the local energy generation industry — primarily solar and wind companies — beefed up hiring 39% in 2008 compared with the year before.

In Orange County, which also did well, workers were hired to support the burgeoning fuel-cell market, anchored by the National Fuel Cell Research Center at UC Irvine. Employment in clean transportation also jumped as newcomers such as hybrid-electric-vehicle maker Fisker Automotive moved in and employers drew from the region's strong existing auto heritage.

But green hiring is down slightly in the Los Angeles area and the Inland Empire, where the effect of the economic downturn on the construction industry trickled into energy-efficiency retrofitting companies.

tiffany.hsu@latimes.com

"AEG Chief Joins Run at NFL Team"- LA Business Journal

Los Angeles Works — Mon, 17 Jan 2011 12:00:AM PST

Philip Anschutz lists conditions for downtown stadium.

Photo by Ringo Chiu

Tim Leiweke, chief executive of AEG, at the sports and entertainment company’s office in downtown Los Angeles.

By Howard Fine

Monday, January 17, 2011

Billionaire Philip Anschutz is now on board with his namesake company’s plan to build a football stadium in downtown Los Angeles – he just wants some conditions met before he plunks down the cash.

That’s according to Anschutz’s top deputy in Los Angeles, Tim Leiweke, president of Anschutz Entertainment Group. In an interview with the Business Journal last week about AEG’s $1 billion stadium proposal, Leiweke said Anschutz, who made his fortune in oil and telecommunications, has been involved in many of the key decisions about the plan, including selection of the three stadium design finalists.

“He’s very enthusiastic about the project,” Leiweke said, adding that the Denver tycoon has discussed the matter with some of his friends who own National Football League teams.

But given his frustrations over previous plans he’s worked on to bring a football team to Los Angeles, Leiweke said his boss won’t sign any checks until four conditions are met:

• Agreements with various corporations for naming rights and other sponsorships that would bring in tens of millions of dollars in annual revenue.

• A commitment from Los Angeles city officials for speedy approvals and $350 million in bonds to replace the West Hall of the city-owned Los Angeles Convention Center that would be torn down to make way for the stadium.

• A commitment from an NFL team to move to Los Angeles.

• A commitment from the NFL itself to approve an L.A. team.

Leiweke said that AEG is trying to meet three of these four conditions by a self-imposed March deadline; the agreement from the league would likely have to wait for the owners to conclude negotiations with players over a new contract.

The corporate sponsorships are perhaps the most crucial element for Anschutz, since they represent the revenue stream that would pay back his huge up-front financial commitment.

Earlier this month, reports surfaced that AEG was close to terms with Farmers Insurance Group for stadium naming rights. Financial terms were not disclosed, though sources told the Los Angeles Times that AEG was seeking a 30-year deal starting at $20 million a year.

Leiweke did not confirm or deny those reports. He would only say that a deal for naming rights and several deals for “founding partner” sponsorships would be announced in the coming weeks.

The AEG proposal is in competition with Majestic Realty Co., which has been trying to bring a football team to a stadium it wants to build in City of Industry.

AEG owns stadiums and sports teams around the world, including the Staples Center, part of the Los Angeles Kings hockey team, Galaxy soccer team and part of the Los Angeles Lakers. Majestic Chief Executive Ed Roski also owns part of the Kings and part of the Lakers.

Marc Ganis, president of Sportscorp Ltd., a Chicago-based sports consulting company, said that getting a commitment for naming rights and sponsorship deals would bolster AEG’s position as it prepares to enter talks with NFL team owners about moving a team to Los Angeles.

“Corporate sponsorships and naming rights are reasonable to get before the facility itself has all the approvals. Those are the kinds of agreements that businesses can make up front,” Ganis said. “Furthermore, these agreements can strengthen AEG’s position in dealings with the NFL.”

Leiweke said he was confident that a preliminary agreement could be reached with the city by March. However, several City Council members have called for studies of AEG’s proposal and its impact on the Convention Center before they will vote to support the company’s plan.

Councilwoman Jan Perry, whose district includes the Convention Center and AEG’s adjacent L.A. Live complex in downtown, said she is open to the plan, but wants to see more details about the company’s proposal before committing her support.

“We want to see some assurances that the taxpayers and the city’s general fund are protected,” she said. “Also, we want to see some figures on how much revenue would be generated over and above what the site is now generating.”

Perry has convened a working group that will start analyzing the plan next month. After that, city officials will use the analysis as a basis for a meeting with AEG. Although she wouldn’t rule out meeting the mid-March deadline, the timetable she laid out would make it difficult to do so.

$1 billion cost?

Leiweke’s comments are significant because Anschutz’s support of the project has been characterized as cool or lukewarm in recent published reports, although the press-shy Anschutz was not quoted himself in any of those reports.

Discussing the matter with the Business Journal last week, Leiweke clarified Anschutz’s involvement and also addressed varying cost estimates of AEG’s stadium project.

Building the stadium itself on the site of the current West Hall of the Convention Center would cost about $1 billion, including a retractable roof that would allow the stadium to serve as convention floor and meeting space. Leiweke said an estimated $150 million “buy-in” for a football team and $350 million in bonds to pay for a replacement building at the Convention Center would bring the total cost to $1.5 billion.

Even if the costs rise beyond that, Leiweke said that the project will be entirely financed by AEG in order to avoid controversy.

“The important thing here is that this is our money, so it shouldn’t matter to anyone else whether it’s $1 billion, $1.2 billion or $1.5 billion. We’re going to pay for the stadium – whatever it costs. Period.”

Leiweke said Majestic’s $800 million proposal still lacks a team despite Roski’s long efforts, and that the NFL owners don’t seem to want a team in the City of Industry.

“I like Ed Roski and respect him, but they’ve been working on this project for a long time and they don’t have a team,” he said. “The reason is simple: Team owners and the NFL don’t believe that the City of Industry is the right location for a football team.”

Majestic Vice President John Semcken would not comment directly on Leiweke’s statement.

NFL Commissioner Roger Goodell has said that the NFL owners won’t get around to deciding whether to bring a football team to Los Angeles until a new collective bargaining agreement with players is in place. The current agreement expires March 4 and Ganis said he expects the negotiations to drag on at least through the spring.

“There is no way a decision about putting a team in L.A. will be made before the collective bargaining agreement is reached,” Ganis said. “Any talk about convincing a team to move to Los Angeles before that is pure fantasy.”

Leiweke said that Anschutz could wait beyond the March deadline for an NFL decision.

No public funds?

The L.A. region has been without an NFL team since the Rams left Anaheim in 1995 for St. Louis; the Raiders left the Los Angeles Memorial Coliseum the previous year and returned to Oakland.

In 1999, Roski and Anschutz took part in a proposal to renovate the Coliseum in Exposition Park as a home for an NFL expansion team. The league picked Houston instead when that city agreed to $200 million in public subsidies. Los Angeles officials had rejected any public funding for Coliseum renovation.

Although several writers and observers have opined that taxpayer money must be involved at least in a fairly substantial way in AEG’s plan, Leiweke last week repeated that no public money would be used to fund the stadium.

He said the $350 million would pay for a new hall at the city-owned Convention Center to replace the West Hall, which would have to be torn down to make way for the stadium. The bonds would be paid off with a surcharge on tickets sold for events at the football stadium; any shortfall in the bond payments would be covered by AEG.

“This keeps getting labeled as public financing for the stadium, but nothing could be further from the truth,” Leiweke said. “If we weren’t stepping in with this proposal, the West Hall would have had to be replaced eventually anyway, and that would have been with taxpayer funds. This way, the city gets a new convention hall and taxpayers don’t pay a dime for it.”

As Majestic was planning its stadium, City of Industry approved $500 million in bonds for infrastructure improvements in the city, some of which will be spent on streets and other construction for the stadium. The bonds would be paid for with revenue from ticket and parking surcharges.

Semcken said that Majestic’s proposal is superior.

“The Majestic proposal is the preferred site and best suited for the NFL and Southern California,” Semcken said in an e-mail.

Leiweke said his biggest concern is the possible emergence of opponents who could delay or derail the project.

“The only thing that keeps me up at night is someone throwing grenades at the project for their own personal agenda,” he said.

If the project were to get sidetracked – or if Majestic manages to secure a football team first – Leiweke said he has plenty of other projects at AEG to keep him busy.

“I’m off to Beijing tomorrow for a stadium project we have there that we just secured naming rights on,” he said.

"Villaraigosa Sets Contract Mandates"- LA Business Journal

Los Angeles Works — Mon, 17 Jan 2011 12:00:AM PST

Agencies required to hire more small businesses in policy shift.

Photo by Ringo Chiu

Mayor Antonio Villaraigosa

By Howard Fine

Monday, January 17, 2011

It’s been a battle to get city of Los Angeles agencies to contract with small businesses and those owned by minorities, women, disabled people and veterans.

As a result, city agencies will now be required to disclose the percentage of their contract dollars that go to those businesses.

Mayor Antonio Villaraigosa issued an executive order last week eliminating its “good faith” system of urging city agencies and their contractors to do more businesses with companies in the four categories listed above. The system didn’t prove effective in boosting the number of contracts to those businesses.

Instead, city agencies and primary contractors will be required to use an online clearinghouse to find small and minority-owned businesses for city contracts.

Villaraigosa also announced new annual goals for city contracts with the businesses in the four categories.

“For the first time ever, my office has made specific recommendations to city departments for contracting goals and has created a system rooted in transparency and accountability,” Villaraigosa said.

The good-faith system was adopted after California voters in 1996 passed Proposition 209, which bans discrimination by public agencies in contracting, hiring, admissions or any other decisions by state and local government bodies.

Under this test, a city agency or prime contractor must show a “good faith effort” to find small and minority-owned businesses by following a list of recommendations. This test came under fire from advocates who said it did not do enough to ensure that city contracts would go to such businesses.

“It didn’t work and was called the ‘good fake effort’ by many,” said Jane Pak, president of the L.A. chapter of the National Association of Women Business Owners.

Pak and other advocates said the new directive for city agencies and prime contractors to use the online clearinghouse should yield better results. The clearinghouse, known as the Los Angeles Business Assistance Virtual Network, will include lists of all businesses seeking city contracts and will also be the primary vehicle for the city to advertise contracts coming up for bid.

The mayor’s executive order also sets goals for city contracting: 25 percent of city contract dollars will go to small businesses each year and 3 percent to service-disabled veteran-owned businesses.

It’s the first city contracting goal for veteran-owned businesses and was welcomed by disabled veteran business owner Maribel Mena, president of Arleta-based American Veteran Inc.

“Los Angeles is home to more veterans than any other city and the new goals and changes will improve access,” she said.

"In South Los Angeles, New Fast-Food Spots Get a ‘No, Thanks’"- NY Times

Los Angeles Works — Sat, 15 Jan 2011 12:00:AM PST

In South Los Angeles, New Fast-Food Spots Get a ‘No, Thanks’

By JENNIFER MEDINA

LOS ANGELES — Driving along Crenshaw Boulevard, it is not difficult to find a place to grab a bite. At some intersections, there is a fast-food joint on each corner.

If the restaurant chains had their way in some parts of town, city officials say, no street would be without its own fast-food outlet.

Los Angeles is making one of the nation’s most radical food policies permanent by effectively banning new fast-food restaurants in South Los Angeles, a huge section of the city that has significantly higher rates of poverty and obesity than other neighborhoods.

A handful of much smaller cities have enacted similar regulations for primarily aesthetic reasons, but Los Angeles, officials say, is the first to do so as part of a public health effort. The regulations, which the City Council passed unanimously last month, are meant to encourage healthier neighborhood dining options. Supporters envision more sit-down restaurants, produce-filled grocery stores and takeout meals that center on salad rather than fries.

“If people don’t have better choices or don’t have the time or knowledge or curiosity, they are going to take what’s there,” said Jan Perry, a city councilwoman who represents part of South Los Angeles and pushed for the regulations. “To say that these restaurants are not part of the problem would be foolish.”

The regulations are not quite an outright ban; existing restaurants can remain open, and exceptions are made for those opening inside a shopping center. Many mom-and-pop businesses or casual restaurants that serve equally unhealthy food can also get permits to open.

The City Council first enacted a one-year moratorium in 2008. Since then, no new stand-alone fast-food establishments have opened in the area. Instead, Ms. Perry said, the area got its first new supermarket in roughly a decade.

Bernard Parks, a city councilman who represents parts of South Los Angeles and also pushed for the change, said he was simply trying to apply land-use laws to limit fast-food restaurants the same way other communities do with bars or liquor stores.

“There are people who are accused of being the food police, of trying to control what goes into people’s mouths,” Mr. Parks said. “But we just don’t think that we need to give fast food more rights around here. We don’t think our community needs to have 10 or 15 or 18 ways to eat a hamburger.”

Daniel Conway, a spokesman for the California Restaurant Association, said the limits set a “troubling precedent” and could “throw up a big stop sign” for any potential owner looking to open any kind of food business in the area.

“They have good intentions, but they have taken a kind of approach that emphasizes sticks over carrots,” Mr. Conway said. “We recognize your intent, but you are singling out the wrong thing right now. We basically have a target on our back.”

The Physicians Committee for Responsible Medicine, an advocacy group in Washington that has long fought against fast-food chains, is pushing for other cities, including Detroit and Philadelphia, to enact similar limits. But so far, there has been relatively little support from community leaders there.

By the council’s estimate, there are nearly 1,000 fast-food restaurants in the 30 or so square miles of South Los Angeles covered by the regulations. Some 30 percent of the 750,000 residents in the area are obese, double the rate in wealthier parts of the city, according to the county’s Department of Health. Residents in the area older than 65 are far more likely to receive diagnoses of diabetes or heart disease, statistics show.

A study released in 2009 by the RAND Corporation, a research group based in Santa Monica, found that the moratorium was unlikely to effectively change the rate of obesity or diabetes in the area. The study argued that rather than focus on calories that come from fast food, policy makers should instead look at junk food snacks from gas stations and convenience stores.

“People get a lot more of their discretionary and unnecessary food from there than from a fast-food restaurant,” said Roland Sturm, a senior economist at RAND and a co-author of the study. “A lot of this is driven by sound bites overlooking what is actually going to have an impact. People talk about this area being a food desert, but it is more like a swamp — you are literally drowning in food, but none of it is really a good option.”

Waiting to find the perfect policy is futile, advocates for such regulations say. They compare the fight against junk food to the early efforts of antismoking initiatives. Later, policy experts can compare the regulations here to, say, New York City’s ban on trans fats.

“There is something inevitable here — you get different things going on in different places and it will just be a matter of time before it starts to have a cumulative effect,” said Kelly D. Brownell, the director of the Rudd Center for Food Policy and Obesity. “To intervene in any one part of the system and expect a significant result is just not possible.”

A trip along Crenshaw illustrates how difficult it might be to change the eating habits of people who have grown up on meals that come with soda and fries. Carl’s Jr., a popular burger chain on the West Coast, was packed in the early afternoon. A group of teenagers had stopped in on their way home from school, eager to gobble up Western Bacon Cheeseburgers — one boy called it his “before-dinner snack.” Cynthia Williams and her two young children sat at another table nearby, picking at their fried chicken stars.

“This is a fun thing for them and easy for me, so how can I not come at least once a week or something like that?” Ms. Williams said. “When you’re out, you are just going to look for the first decent thing around. If there are fewer of them, fine by me, but we’re still going to go to the ones we’ve got now.”

"LA Met Its Renewable Energy Goal"- NBC Los Angeles

Los Angeles Works — Thu, 13 Jan 2011 12:00:AM PST

LA Met Its Renewable Energy Goal

By turning away from coal and harnessing the wind, Los Angeles met its goal of drawing 20 percent of its power from renewable sources by 2010, it was announced Thursday.

Even as city officials celebrated the milestone, however, they acknowledged that continuing the march toward cleaner energy -- which is more expensive than fossil fuels -- will inevitably result in higher rates. They vowed to minimize any increases.

Mayor Antonio Villaraigosa set the "20 percent by 2010" goal when he assumed office, and the Department of Water and Power accomplished it largely by switching to wind power, which now accounts for 47 percent of the utility's renewable energy.

Hydro-electric power accounted for another 30 percent of the renewable energy; geothermal/biofuels, 22 percent; and solar, 1 percent.

"We went from worst to first and quadrupled our renewable energy portfolio in a few short years, while also keeping our rates lower than other major utilities," Villaraigosa said at a City Hall news conference.

The DWP quadrupled the percentage of renewable energy in its portfolio in six years -- from 5 percent in 2004 to 20 percent in 2010 -- and now supplies customers with 4,500 gigawatt hours of cleaner power.

The increase in cleaner power is the equivalent of annually removing 490,000 cars from the road and preventing 2.5 million metric tons of carbon emissions; or removing 750,000 homes from the grid, according to DWP officials.

"This has never been done by another city," said Rhonda Mills, Southern California program director for the Clean Power Campaign.

Last year marked a record low in the DWP's use of coal power, which accounts for 39 percent of its portfolio. The utility intends to eventually do away with using coal altogether.

The DWP's interim general manager, Austin Beutner, acknowledged that will prompt increases in customer rates.

The DWP's carbon emissions are 22 percent below 1990 levels, but that number is expected to drop even further when the city divests itself of the Navajo Generating Station in Arizona in 2014.

"On-location filming in L.A. jumps 37% in December"- LA Times

Los Angeles Works — Tue, 04 Jan 2011 12:00:AM PST

On-location filming in L.A. jumps 37% in December

January 4, 2011 | 6:43 pm

Filming on the streets of Los Angeles rounded out the year on a high note.

Overall production activity for on-location filming in the L.A. area rose 37% in December, compared with the same month a year earlier, according to data from FilmL.A. Inc., the nonprofit film group that coordinates film permits.

The increase is the latest sign of recovery in a sector that has been hit hard by advertising cutbacks, studio belt-tightening and production flight from California.

Such gains were spread across all production categories, reflecting a flurry of new television situation comedies and lower-budget films -- including some that have benefited from the state’s film tax credit program -- as well as continued growth in commercial production.

FilmL.A. will release its fourth-quarter and year-end results next week. The numbers are expected to show a marked improvement over 2009, when production posted its steepest annual drop on record as studios reduced the number of films they released and increasingly opted to take their business to states such as Michigan, Georgia and Louisiana that offer lucrative tax breaks for filmmakers.

Although the migration has continued, California has been able to slow the outflow somewhat with its own film tax credits, which took effect in 2009. The program provides a 20% to 25% tax credit on qualified production expenses that can be used to offset state income or sales tax liabilities.

The state has awarded $300 million in tax credits to more than 100 projects in the first two years of the program, including some that filmed in December.

Among them: Walt Disney’s “The Muppets” movie, which has shot in various locations around Hollywood, and the independently produced “Rampart,” which has filmed heavily throughout Boyle Heights, Echo Park and other L.A. neighborhoods. “Muppets” received approval for a $7.5-million credit, while “Rampart” obtained a $2-million allocation.

On-location filming for commercials, feature films and television in December (from Nov. 29 through Jan. 2) generated 2,658 production days, compared with 1,943 in December 2009. A production day is defined as a crew’s permission to film at a single location during a 24-hour period.

Feature films led the way, accounting for 82% of the growth during the month from the same period in 2009, followed by 47% for television production, which has rebounded following a drop in the third quarter after the cancelation of several long-running TV shows, including the Fox drama “24.”

The turnaround has been fueled by several new half-hour comedies filming locally, including NBC’s “The Paul Reiser Show” and Fox’s “Raising Hope,” along with new cable comedies such as “The Hard Times of RJ Berger” on MTV and Showtime’s “Shameless.”

-- Richard Verrier

"LAX passenger traffic continues to rise"- Daily Breeze

Los Angeles Works — Tue, 04 Jan 2011 12:00:AM PST

LAX passenger traffic continues to rise

By Art Marroquin Staff Writer

Posted: 01/04/2011 07:00:00 PM PST

Airline passenger traffic continued to grow at Los Angeles International Airport in November, according to figures released this week.

Nearly 4.68 million travelers passed through LAX in November, a 5.9 percent increase from the same period last year, airport officials said.

Nearly 3.5 million of those airline passengers boarded domestic flights in November, a 7.3 percent jump from a November 2009, officials said.

Additionally, nearly 1.2 million travelers boarded international flights in November, an increase of nearly 2 percent from a year earlier.

Year-over-year figures show that more than 54 million airline passengers have traveled through LAX during the first 11 months of 2010, a 4.5 percent increase from the same period last year.

- Art Marroquin

"Ports of L.A. and Long Beach are surging back"- LA Times

Los Angeles Works — Thu, 30 Dec 2010 12:00:AM PST

Ports of L.A. and Long Beach are surging back

The twin ports together handled 20.3% more cargo boxes this year than in 2009 as trade began recovering from the global recession.

Containers are piled up on a ship off the Port of Long Beach. Cargo traffic through the ports of Los Angeles and Long Beach grew to about 14.2 million containers for 2010. (Mariah Tauger, Los Angeles Times / August 17, 2010)

By Ronald D. White, Los Angeles Times

December 30, 2010

The resurgent tide of international trade lifted nearly all major U.S. seaports this year, but none is gaining freight and jobs like Los Angeles and Long Beach, the nation's busiest cargo complex.

Challengers competed harder than ever this year for cargo traffic that still trails the 2006-08 boom preceding the great global recession. They were aided in their efforts by retailers that spread their goods through more ports for greater flexibility. But sometimes size really does matter, as well as the local ports' relative proximity to Asia, trade experts said.

"Los Angeles and Long Beach have gotten their mojo back. They've just had their biggest single-year increase in cargo in 25 years," said John Husing, an economist and expert on international trade's effect on Southern California. "At first, customers were desperate to replenish inventories and get products back on store shelves, but then it didn't stop."

Other ports also did well this year, bouncing back from a dismal 2009. New York/New Jersey, ranked third in volume after L.A. and Long Beach, added 12.8% more cargo. Oakland, in fifth place, improved 15.3%.

But none gained as much traffic as Los Angeles and Long Beach, which together handled 20.3% more cargo boxes than in 2009. Cargo traffic through the twin ports grew by 2.4 million containers, for a total of about 14.2 million for 2010, including estimated December cargo movement. Line up the year's tally of 20-foot containers and there would be more than enough to circle the globe twice. Stack them and they would reach higher than a geosynchronous satellite.

Before the global recession, importers with long memories became concerned about their overwhelming reliance on Los Angeles and Long Beach in particular and on the West Coast in general as the dominant gateways for Asian trade.

Between 2002 and 2008, shippers had to contend with a parade of problems. There was a lockout of West Coast dockworkers; ships were delayed because of too few dockworkers and too few rail resources to haul the unanticipated flood of trade; El Niño deluges wiped out miles of railroad track.

National retailers were so troubled that they began regular monitoring of congestion at the nation's top ports.

"The haulers, freight forwarders and supply-chain experts who move that cargo were advising customers to adopt a 'four corners' strategy: Reduce your reliance on Southern California and the West Coast. Send some through Canada, to the East Coast and to the Gulf Coast, for flexibility," said Husing, who runs the Redlands firm Economics and Politics Inc.

That all changed as worldwide economies began slowing down, when U.S. importers, manufacturers, retailers and others cut their inventories of components and finished goods to record low levels, according to the Council of Supply Chain Management Officials.

By 2010, with importers desperate to refill their warehouses, factories and store shelves, the stakes had changed, according to Asaf Ashar, a professor with the University of New Orleans' National Ports and Waterways Institute. Why rely on ports that move a million cargo containers in six months to a year when Los Angeles and Long Beach can move that much in three weeks?

"If you have to replenish your inventory as fast as possible, you will probably go to Los Angeles and Long Beach," Ashar said. "Big ports are always more sensitive to changes in the economy. So coming out of the recession, Los Angeles and Long Beach were the first to benefit."

The ability to move more cargo than anywhere else in the country is an integral part of the marketing strategy of both ports. Long Beach's campaign, for example, features a map of the Pacific Ocean depicting a line for each of the weekly vessel calls to West Coast ports: two to Prince Rupert, Canada; 16 to Vancouver, Canada; eight each to Seattle and Tacoma, Wash.; and 40 to San Pedro/Long Beach.

"If you are looking for frequency and reliability, Southern California offers the major opportunities," said Richard D. Steinke, executive director of the Port of Long Beach. "Customers know they have more options here."

Geraldine Knatz, executive director of the Port of Los Angeles, said she has a team crisscrossing the U.S. every month, touting the advantages of moving goods through the port.

"We have really ramped up our marketing-intensive visits to all of the cargo owners," Knatz said. "It's hard to say that this is what has caused the increases, but we are working hard to sell the advantages that we have."

The payoff has included brand-new cargo services for both ports. Long Beach added Pan Ocean Shipping Co. and TS Lines while Los Angeles added the Container Ship Co. — all of which added new sailings from China.

Los Angeles and Long Beach should flourish as long as China remains integral to the U.S. economy, said Jock O'Connell, international trade advisor to Beacon Economics of San Rafael, Calif.

"Theirs is a story of China in many respects," O'Connell said of the two ports. "As long as China remains the principal source of U.S. imports, then the Los Angeles and Long Beach ports should thrive."

Adrian Fleissig, a professor at the Cal State Fullerton Institute of Environmental and Economic Studies, said that another factor was the growing significance of locally based exports. Fleissig recently co-wrote a report predicting that by 2012, local exports would surpass the record levels set during the global economic boom.

"The share of Los Angeles, Long Beach and Santa Ana exports has risen steadily over the past decade, and now it is rising again after the end of the recession," Fleissig said. "That reflects the strength of those emerging Asian economies and the demand for products that are produced here."

"LAX hiring program helps hundreds of local residents land airport jobs "- Asian Journal

Los Angeles Works — Wed, 29 Dec 2010 12:00:AM PST

LAX hiring program helps hundreds of local residents land airport jobs

LOS ANGELES – The Los Angeles World Airports First Source Hiring Program (FSHP) gives local residents a head start in landing employment at Los Angeles International Airport (LAX). By year’s end, nearly 680 residents were successfully hired for jobs with businesses operating at LAX through the FSHP.

FSHP is administered by the Business and Job Resources Division of Los Angeles World Airports, the city of Los Angeles department that operates LAX. FSHP language is contained in all new LAWA contracts and applies to any contract amendments or extensions to existing contracts and non-exclusive licensing agreements.

The FSHP is designed to provide access to vacant positions for residents from the communities immediately surrounding the airport and those most impacted by airport operations. Those communities are a part of the LAX Master Plan Project Impact Area comprised of neighborhoods within a five mile radius of the airport, including South Los Angeles, El Segundo, Hawthorne, Inglewood, Lennox and parts of unincorporated Los Angeles County.

The positions in these companies range from customer service representatives to retail sales, administrative, ground service personnel, food service personnel, security, shuttle bus drivers and more. “Our program connects job candidates with companies doing business in the terminals and around the vicinity of LAX to help fulfill staffing needs,” said Clarence R. Espinosa, FSHP Coordinator.

The FHSP is currently screening candidates to find qualified applicants for open positions. “We are projecting an upward trend in the employment opportunities in the coming year as a result of the increasing volume of travelers at LAX and the $1.5 billion capital improvement program. There is also a growing demand for bilingual candidates.” he said.

The FSHP staff recruits, pre-screens and pre-qualifies the candidates for the LAX employers and will even provide companies with office space to conduct interviews in our Business and Job Resources Center free of charge in return for considering the candidates registered with the program first when making their selection for job openings. “Our goal is to make it convenient for these businesses to find qualified employees from the local communities,“ said Espinosa.

The FSHP was approved by the Federal Aviation Administration in October 2006 and began operating in December 2006. Participation in the FSHP has grown from one company in December 2006, to 55 companies today. “As we make contact with LAX employers and they learn how this program can save them time and money we continue to add new companies to the list,” said Espinosa.

ServisAir is one of the companies that participated in the FSHP. Geoffrey Okamoto, ServisAir assistant manager said, “It was a well thought out approach to make it convenient for everyone involved to make attempts to hire those in need of employment who meet the qualifications for any given position we have available. It has made me a much more productive manager by utilizing my time in other areas, while at the same time being able to hire additional staff as needed. “

In 2009, an internet-based Applicant Tracking System (ATS) was introduced to LAWA’s FSHP. The ATS automates the job application process via the internet for the job seekers and provides an avenue for LAX employers to find prescreened and qualified individuals for employment consideration. The candidates can view open positions, post their resumes and apply for positions on the LAWA’s Business and Job Resources Center (BJRC) web site at www.lawa.org/bjrc. More than 3,500 people have registered and posted their resume on the ATS.

Job bulletins for LAX and other nearby companies, such as hotels and car rental agencies, are available at the BJRC office located at 6053 W. Century Blvd., Suite 300, and Los Angeles, CA 90045. Computer work stations are also available for job seekers. For more information call (424) 646-7300.

"City Developing Big Plans for Fashion"- California Apparel News

Los Angeles Works — Thu, 23 Dec 2010 12:00:AM PST

City Developing Big Plans for Fashion

by Deborah Belgum, Senior Editor

December 23, 2010

The Los Angeles Fashion District is on the verge of change that could transform it into the next SoHo.

That all depends on what happens with a study project set up by the Community Redevelopment Agency to figure out how the district could take the next step forward.

With $1 million in funds, the CRA last year launched an 18-month study to determine how to spruce up the 115-square-block chunk of downtown Los Angeles that is home to apparel manufacturers, wholesalers, designer showrooms, artist lofts, independent restaurants, small retail shops and the Flower Market. But it is also home to many homeless who live on the streets and to a number of down-at-the-heel hotels for the needy.

“Our hope is that it will set the vision and course for the district for the next decade,” said Kent Smith, executive director of the Los Angeles Fashion District Business Improvement District, which was established in 1996. “For such a long time, we have been this part of downtown that has been so industrial. And people haven’t taken the time or trouble to look at where the district has come from and where it is going.”

In September and October, the CRA organized seven focus groups to hear how to make the district better. The suggestions, published recently at www.fashionyourdistrict.org, were far-ranging and diverse.

Residents who live in the district’s 2,000 apartments and lofts believe more public restrooms need to be provided for the Santee Alley area. They would like to see more restaurants stay open for dinner and more spots to walk their dogs. They complained the neighborhood isn’t a very good place for bicyclists because of traffic congestion and motorists’ bad driving habits.

Owners of some of the Fashion District’s 4,000 small businesses believe the area could use a dose of public artwork to give the neighborhood a sense of identity. They also would like to see businesses stay open after 6 p.m., when many of the apparel stores and Santee Alley vendors close their doors. The district is a ghost town after dark.

More security and better lighting are ways to create a user-friendly environment and encourage customers to wander into the district, which is unfamiliar to many. Other suggestions included limiting food vendors because they hamper traffic and take up valuable parking spots, adding more public transportation to connect the area to the rest of downtown Los Angeles, improving the sewer system so that the district’s streets don’t flood when it rains, planting more trees, giving out fewer jaywalking tickets and rezoning some areas that are now deemed to be industrial zones.

With information collected from the focus groups, the CRA’s next step is to hold two public workshops in late January where anyone can share their ideas for the district.

“This is our first opportunity to engage the community at large and hear directly from them about what they want the district to be in the next generation or two,” said Gaurav Srivastava, the project manager for the studies. He works for Aecom, a multi-faceted company that received the $1 million CRA contract to conduct the Fashion District studies and make recommendations.

Srivastava said the first public workshop will be held from 6 to 8 p.m. on Jan. 27 at the Cooper Design Space, located at 860 S. Los Angeles St., or a nearby building. Final location plans haven’t been shored up yet. Another workshop is scheduled for 10 a.m. to noon on Jan. 29 at the same to-be-determined spot.

Next summer, Aecom will hold more public workshops to talk about the results from the previous workshops.

Private vs. public

For the most part, any changes within the Fashion District have come from private investors who have converted old manufacturing sites—or built new structures—to house more apparel showrooms and residential compounds.

Even the Los Angeles Fashion District, organized to make the area clean and safe, operates on a $4.2 million budget paid for by 950 different property owners and stakeholders in the area. It was the first property-owned BID in the city and takes up 20 percent of downtown Los Angeles.

But now the city is turning its eye to this neighborhood and wondering how it can connect to the vibrant and popular Staples Center entertainment district and lure more people from the upper-crust Financial District near Bunker Hill.

Both those neighborhoods underwent a major transformation with the CRA, which helped acquire property for the Staples Center and for high-rises in the Financial District. The CRA receives its financing from the higher property taxes generated in its redevelopment zones.

Jenny Scanlin, the CRA project director for the Fashion District, said the CRA will have a clearer vision of what can be done in the district once the studies are tabulated and a report is made by the end of 2011 or early 2012.

But already she has some tentative ideas. She envisions developing a park in the Fashion District that would take on the same tenor as New York’s Bryant Park, where New York Fashion Week was held before it moved this year to Lincoln Center. “We could have fashion shows and do night markets,” she said, noting there were several city-owned pieces of property that would make good parks.

“We could bring more residential back into the district when the [real estate] market comes back, more restaurants and nightlife so it has a connection to all the activity that is happening near Staples Center, the Historic Core and the Art Walk.”

Other ideas include developing the retail potential of Los Angeles Street. “We think Los Angeles Street needs to find itself,” Scanlin explained. “We think Los Angeles Street can be repositioned into a boutique street with some really interesting restaurants and street life going on that is complementary to the Fashion District.”

Other suggestions include linking the district to the Red Car trolley proposed by City Councilman Jose Huizar, which will run up and down Broadway in the Fashion District.

The CRA would also like to find another use for the 196-unit Huntington Hotel, a troubled, low-income residential spot built in the early 1900s at Eighth and Main streets.

Preserving fashion

While everyone agrees it is good to have the CRA take a look at the Fashion District with “new eyes,” no one wants to see the district’s unique fashion flavor disappear.

“I want them to maintain the focus of the Fashion District,” said Ilse Metchek, a former dress designer and manufacturer and now president of the California Fashion Association, a Los Angeles–based industry trade group. She envisions seeing small manufacturers, wholesalers and showrooms preserved rather than an infusion of more artist lofts.

Ethan Eller, general manager of The New Mart in the heart of the Fashion District, believes his building, built in 1928, is perfect in its role as a home for showrooms. However, he would like to see more free parking in the district.

And Steve Hirsh, who owns the Cooper Design Space and whose father was a garment manufacturer, pointed out there are a lot of good things going on in the district. Those good things should be preserved. “I said they should use the fashion industry as an anchor going forward,” he said. “We should keep the district creative and in fashion.”

"Spider-Man and Cameron Crowe movies give L.A. production a jolt"- LA Times

Los Angeles Works — Tue, 21 Dec 2010 12:00:AM PST

Spider-Man and Cameron Crowe movies give L.A. production a jolt

December 21, 2010 | 1:26 pm

Angelenos have good reason to be despondent about the flight of filming from California.

After all, the upcoming alien invasion movie “Battle: Los Angeles,” was actually shot in Baton Rouge and Shreveport, La., not Southern California. “Mission Impossible: Ghost Protocol” has been filming in Dubai; Prague, Czech Republic; and Vancouver, Canada.

Marvel Studios selected London over Los Angeles as home base for filming of its comic book hero movie “Captain America: The First Avenger.”

And New Zealand served as the backdrop for Jellystone Park in the Warner Bros. current 3-D movie “Yogi Bear.”

But for all the hand-wringing about film flight -- film industry promoters recently unveiled a $135,000 marketing campaign to market the local movie and TV industry -- at least two major-studio feature films are staying close to home, providing some relief to a sector that has been buffeted by job losses.

Sony Pictures recently began filming its fourth installment of the Spider-Man series locally, and 20th Century Fox’s “We Bought a Zoo,” starring Matt Damon and Scarlett Johansson, is preparing to begin production in Thousand Oaks next month.

For below-the-line crews who’ve been hard hit by the effects of runaway production and studios making fewer feature films, the film projects come at an opportune time.

"It’s tremendous to have these films because you’re talking about hundreds of jobs that will stay in the area," said Ed Duffy, business agent for Teamsters Local 399, which represents location managers, casting agents and studio drivers.

The latest Spider-Man film alone will employ nearly 1,000 crew members, including construction workers building sets for the production, which takes up seven stages on the Sony Pictures lot.

Sony began its 90-day film shoot for the Spider-Man film two weeks ago, mainly on the lot but also on location: including at the Henry Fonda Theater in Hollywood and Immanuel Presbyterian Church in mid-Wilshire.

Scheduled for release in 2012, the Spider-Man film has an entirely new cast (British actor Andrew Garfield, replaces Tobey Maguire) and is being directed by Marc Webb at less than half the budget of the previous Spider-Man film, which cost more than $250 million to make.

While the production will include two weeks in New York (where the story is set), the bulk of filming will occur in Los Angeles on the Sony lot and various locations around town, from South Pasadena to San Pedro to Woodland Hills.

Sony had ample incentive to select L.A. as its primary destination.

“This the fourth Spider-Man production we have shot primarily in Los Angeles and for good reason," Sony Pictures Entertainment spokesman Steve Elzer said. “The crews here are the best in the world but there is a comfort level in producing a project of this size and scope on your own backlot. “

Basing the film on the lot also makes it easier for producers to interact with Sony’s in-house visual effects team, and gives the studios greater control of quality and security, Elzer added.

Nonetheless, Sony had considered other locations and filmmakers met with city and film industry officials this summer seeking assurances that they would be able to film key scenes downtown. “They wanted assurances that a film like that could be made in L.A." said Paul Audley, president of FilmL.A. Inc., the nonprofit film permit group.

In Thousand Oaks, crews have been building a zoo on a private ranch as they prepare to begin a 50-day shoot next month for “We Bought a Zoo.”

Directed by Cameron Crowe, the film is based on the bestselling memoir of the same name about an Englishman who build a wildlife preserve to care for some 200 animals.

-- Richard Verrier

"LAWA officials to seek firms interested in managing Ontario airport"- Daily Breeze

Los Angeles Works — Mon, 20 Dec 2010 12:00:AM PST

LAWA officials to seek firms interested in managing Ontario airport

Los Angeles World Airports will cast a wide net to seek out private companies interested in managing LA/Ontario International Airport, officials said Monday.

While the move is not the start of a competitive bidding process, LAWA officials said it will allow them to respond to calls from the city of Ontario to find an alternative management structure for the beleaguered Inland Empire airport.

LAWA officials also said they are not interested in selling Ontario airport. The city of Los Angeles has managed Ontario airport since 1967 and purchased the facility in 1985.

Ontario airport has lost about one-third of its passenger traffic since 2007, along with several air carriers. As a result, the remaining airlines have slashed service and increased ticket fees as a way to support operations.

"We want to make sure it remains a viable airport," Los Angeles airport commissioner Valeria Velasco said.

- Art Marroquin

"BYD, housing authority plug in to partnership"- Daily News

Los Angeles Works — Fri, 17 Dec 2010 12:00:AM PST

(l-r) Austin Beutner, 1st Deputy Mayor of Los Angeles, and Rudolf Montiel, President and CEO of Housing Authority City of Los Angeles with the Highbred cars that will be used by the Housing Authority who has purchased 10 of the vehicles made by BYD Auto, and imported from China. Los Angeles, CA 12-16-2010. (John McCoy/staff photographer)

The city housing authority has launched a pilot program to use 10 fully electric vehicles from a fast-growing Chinese manufacturer that is locating its new U.S. headquarters in Los Angeles.

Under the test program, the city will pay BYD $400 a month per vehicle for one year. The "iceland blue" electric sedans will replace a fleet of hybrid Toyota Priuses used by the agency's inspectors.

Rudy Montiel, president of the Housing Authority of the City of Los Angeles, said he was "ecstatic" the agency was selected for the trial run.

"Not only will these electric vehicles reduce fuel costs significantly, but they will reduce direct emissions," Montiel said.

The city's General Services Department is installing electrical outlets at HACLA so the cars can be recharged overnight.

BYD - or Build Your Dreams - is a Chinese manufacturer of rechargeable batteries that has expanded in recent years into the electric vehicle industry. It has already announced plans to locate its new U.S. corporate headquarters in a 30,000 square-foot facility at 1800 S. Figueroa St., on the downtown Auto Row. The City Council has approved $2 million in federal grants and $2.4 million in loan guarantees over the next 10 years to help BYD open the facility.

The company is also still looking at locations for a new manufacturing plant, with Lancaster making a pitch to compete against Los Angeles.

BYD is expected to employ up to 500 workers and spend upwards of $100 million in its U.S. operations. It hopes to sell its cars to the public beginning in 2012.

Lancaster Mayor R. Rex Parris said he believes it is a tossup.

"It's between us and the city of Los Angeles," Parris said. "Los Angeles is the 800-pound gorilla."

Parris argued that Lancaster has more single-minded leadership in fast-tracking projects without becoming bogged down in the Los Angeles bureaucracy. He also argues that the growing Lancaster community would be more suitable for the company's facility.

Parris said he is impressed with the Chinese business leaders who have "a vision that extends 100 years."

"We need to have that instead of looking no farther than the next election," he said.

Parris has been trying to have Lancaster become known as the "alternative energy capital of the world," through a partnership with SolarCity, where Lancaster is installing solar panels at six city facilities and encouraging residents "to go solar."

Also this year, BYD reached an agreement with Quallion LLC of Sylmar to work on energy storage capacity projects at the Pine Tree Wind Farm in the Tehachapi Mountains.

A press release from BYD's Beijing headquarters said the company also hopes to reach an agreement with the state on supplying all-electric buses for public transportation projects.

The Associated Press contributed to this story.

"Cargo traffic grows at L.A., Long Beach ports"- LA Times

Los Angeles Works — Thu, 16 Dec 2010 12:00:AM PST

Cargo traffic grows at L.A., Long Beach ports

The surprisingly strong double-digit growth in freight traffic during November is not expected to continue.

By Ronald D. White, Los Angeles Times

December 16, 2010

The ports of Los Angeles and Long Beach, the nation's busiest cargo complex, posted double-digit growth in freight traffic during November, usually a month in which cargo movement is winding down for the year.

It was another unexpectedly good showing, although trade experts don't expect the pace to continue.

"I'm watching with bemusement like everyone else," said Nancy Sidhu, chief economist for the Los Angeles County Economic Development Corp. "We will continue to grow next year as the economy grows, but I don't think we'll keep seeing these double-digit increases."

The transport of cargo through the ports of Los Angeles and Long Beach, which rank first and second in the nation in the number of containers they move, is an important part of the Southern California economy. International trade provides more than 500,000 jobs in the region.

"This is an encouraging sign. It's looking like we're going to end 2010 up about 17% ahead of last year, which is much higher than we thought," said Phillip Sanfield, spokesman for the Port of Los Angeles.

Art Wong, his counterpart at the Port of Long Beach, said: "We are extremely pleased. We thought we might not reach our peak again for three to five years, but it may come a lot sooner than that."

At the Port of Los Angeles, imports climbed almost 12% in November to 333,710 containers, up from 298,777 during the same month a year earlier. Exports rose more than 14% to 170,319, up from 149,148 in November 2009.

At Long Beach, the numbers were even stronger. Imports there climbed more than 20% to 274,480 containers in November, up from 228,347 a year earlier. Exports rose nearly 25% to 142,628 containers compared with the previous November.

Through the first 11 months of 2010, both ports have experienced a strong rebound from 2009, which was the worst year for the ports in five years. Traffic at the Port of Los Angeles, including empties, is up more than 16% to 7.2 million containers, compared with 6.2 million in 2009. At Long Beach, cargo traffic rose to more than 5.7 million containers, up nearly 25% from the January-through-November period.

Together the two ports usually rank fifth or sixth in the world among commercial seaports.

Even the empty containers play a role, Sidhu said, and their movement showed a similarly strong upswing in November. There were 162,941 empties that moved through Los Angeles in November, up more than 23% compared with a year earlier. There were 141,199 empties that moved through Long Beach, up nearly 34%.

Sidhu said that the large number of empties was a continuing sign of inventory replenishment and the need to speed those boxes back to factories in Asia where they could be filled with new goods for sale in the U.S. and other places abroad.

"We import more than we export, and those items have to come back here in containers," said Sidhu, also noting that dockworkers, truckers and railroad workers get paid to move all of the containers, whether or not they contain products.

ron.white@latimes.com

"FilmLA launches campaign to help the public become more receptive to productions"- Daily News

Los Angeles Works — Mon, 13 Dec 2010 12:00:AM PST

FilmLA launches campaign to help the public become more receptive to productions

By Bob Strauss, Staff Writer

Posted: 12/13/2010 07:13:08 PM PST

Updated: 12/14/2010 02:35:39 PM PST

Trucks carrying equipment used for filming a movie parked along Topanga Canyon Boulevard in Chatsworth, Calif., in September 2008. (Andy Holzman/L.A. Daily News)

Having won a tax break for keeping movie and TV production in Los Angeles, industry leaders launched a campaign Monday to win over residents and businesses who have long complained that filming is too disruptive.

FilmLA, the nonprofit clearinghouse for film permits, launched the promotional campaign dubbed Film Works during an early morning event at Los Angeles Center Studios.

Held outdoors - with antique cameras and state-of-the-art cranes setting the stage - the event was attended by City Councilmen Richard Alarcón, Eric Garcetti and Paul Krekorian, county Supervisor Don Knabe, and assorted union officials, film workers and vendors.

"The key messages are twofold," FilmL.A. President Paul Audley told the group.

"One is that the people who work in this industry are your neighbors and they're vital to the economy of the region. And the other message, really, is one about thanking the communities where we work for allowing filming to take place, recognizing that it can be a burden, but that all these people are working as a result of that patience and tolerance."

The Film Works' black-and-yellow logo will start appearing in January on billboards and bus benches donated by local companies.

Mann Theatres will run free public service announcements, made by union waiver talent, promoting filmmaking tolerance. Studios have agreed to outfit their trucks with messages along the lines of "Thanks for letting us in your neighborhood, 300 people are working on this set today."

And a viral campaign to promote understanding and worker outreach has been launched at www.filmworksla.com.

"I introduced the motion to direct FilmL.A. to establish a marketing unit," said Alarcón, who also authored an ordinance approved last week that gives a tax break to more than 500 small- and medium-sized studios.

"This is about selling Los Angeles, (filming) not only externally but internally. A lot of people here don't realize how important that is.

"The budget isn't huge," Alarcón said, noting that many other states have bigger war chests for promoting their tax incentives and filming-friendly environments.

"Most of it is going toward getting people in Los Angeles to appreciate Hollywood like they used to when I was growing up.

"When my dad was doing jobs for people like Charlton Heston and Bud Abbott, it meant food on the table for us. And that's what this industry still means for many people here."

FilmLA has spent $135,000 on the first phase of the campaign. With the in-kind contributions from the stakeholder groups, Audley estimated the initiative's overall value at around $500,000.

Donations and contributions to keep the marketing drive going are, of course, encouraged.

Film Works couldn't have come too soon for many who make their livings in the film entertainment industry - and many more who depend on those workers for business.

"My one company employs 110 people," said Gregg Bilson of Sunland-based prop rental firm Independent Studio Services, which was started by his father in 1977. "We deal with 3,000 different vendors locally and across the United States. So when we slow down, I lay people off and am not buying as much materials.

"What we put into the local economy is astronomical. We need to make this city film-friendly, business-friendly and people-friendly again."

FilmL.A. Chair Pamm Fair noted that production companies not only generate revenue for city and county coffers, but the industry's estimated 300,000 local workers are also local consumers.

"We're a big economic factor," she said, "and we want to stay here and spend our wages here."

Randy Wolff, a driver for Cinema Vehicle Services of North Hollywood, brought a double rig carrier stacked with police cruisers, taxis and '70s muscle cars to the event. Like many there, he believed anything that helps encourage local production is a good thing.

"We're just trying to keep everything in L.A., and not running out of town," Wolff said. "When I started working here back in '05, we were busy, the town was busy; I worked 52 days straight on shows, we were that busy.

"But over the last couple of years, we saw a decline, everything started going out of town. It's heartbreaking. We're forced to go out of town to work, and we'd like to see a lot of work come back here so we can stay at home and be with our families."

"Exports at L.A. and Long Beach ports are at a near-record pace" - Los Angeles Times

Los Angeles Works — Fri, 10 Dec 2010 12:00:AM PST

December 10, 2010|By Ronald D. White, Los Angeles Times

Southern California's twin ports are on track to post total exports for the year that approach the records set before the global recession, just as the region's preeminent air freight hub — Los Angeles International Airport — is on pace to set an all-time high for outgoing cargo.

Those are good signs for the local economy, despite a less robust showing by imports, which account for the bulk of cargo traffic through the ports of Los Angeles and Long Beach. Export-driven sales growth is helping to lead the region's rebound, experts say; overall, international trade provides work for more than 500,000 people in the Southland.

read the whole story at the Los Angeles Times here