Sacramento Companies & Economy [Archive]

sugit

Apr 19, 2007, 5:44 PM

I thought we could start a thread on companies and employment stuff happening in Sac now that we have our own section.

I'm thinking most of the stuff we post on here will be companies moving into the downtown and midtown areas, existing companies expanding office space and jobs, ect....but obviously if Microsoft decided to move its HQ to Roseville, that would make for some good talk here :cool:

____________

Our march to "Green Acres"!!

Ethanol maker moves HQ to Sacramento (http://www.bizjournals.com/sacramento/stories/2007/01/08/daily44.html?from_rss=1)
Sacramento Business Journal - January 11, 2007
by Celia Lamb - Staff writer

Publicly-traded Pacific Ethanol Inc. has moved its corporate headquarters from Fresno to 400 Capitol Mall in downtown Sacramento.

The company (Nasdaq: PEIX) uses corn to make ethanol, a gasoline additive. The company opened its first plant in October. Located in Madera, the facility can produce 40 million gallons of ethanol annually.

The company plans to finish construction on its second plant in Boardman, Ore., in the fourth quarter.

The headquarters will occupy 7,000 square feet for the company's senior management, human resources and investor relations divisions.

Pacific Ethanol was founded in 2003 by former California Secretary of State Bill Jones and Neil Koehler, the co-founder of an ethanol production company he sold in 1997. Koehler also started Kinergy Marketing, an ethanol sales and distribution firm bought by Pacific Ethanol in May 2004.

Pacific Ethanol also has a 42 percent interest in Front Range Energy LLC, which owns an ethanol plant in Windsor, Colo.

Pacific Ethanol company turned a financial corner this year. In the nine months ended Sept. 30 Pacific Ethanol earned $3 million, an improvement from a $4.8 million loss in the first three quarters of 2005. But dividends on preferred stock meant an $83 million loss, or a loss of $2.49 per share, for common shareholders in the first three quarters of 2006.

The company's sales totaled $146 million in the nine months ended Sept. 30, up from $52 million in the first three quarters of 2005.

The Sacramento Area Commerce and Trade Organization, which markets the Sacramento region to companies considering relocating, helped the company with its site location.

"It's a huge win," said SACTO's strategic marketing director Tracey Schaal. "(Corporate headquarters offices) are hard to secure. Most headquarters don't move."

When a company establishes its home base in the region it brings more prestige and more purchasing power to the area, Schaal added. Companies also tend to be more active in community activities in the area they're based.

SACTO is focused on attracting clean energy companies to the region.

"We feel we have a great opportunity in the Sacramento region to become a clean energy hub, both nationally and internationally," Schaal said.

Pacific Ethanol moved into the new office Tuesday. Schaal said the company is hiring employees from all over the country and will probably have a staff of about 30 people at the Sacramento office.

sugit

Apr 19, 2007, 5:45 PM

Accounting firm expanding in high-end Capitol Mall offices
(http://sacramento.bizjournals.com/sacramento/stories/2007/04/16/story4.html)Sacramento Business Journal - April 13, 2007
by Mark Anderson

Perry-Smith LLP is taking over the entire 12th floor of the Wells Fargo Center at 400 Capitol Mall.

The largest locally based accounting firm moved into the Class A office building in 1995, just a couple of years after the building opened.

Perry-Smith is renewing its lease for the 16,500 square feet it occupies, and adding the rest of the space on the floor -- for a total of 20,000 square feet.

The firm's lease was coming due next year, and the other tenant on the floor was leaving. The timing seemed right to expand, said Robert Perry-Smith, founder and managing partner. The company has 105 employees in its Sacramento office, as well as a dozen each in offices in San Francisco and Roseville.

Two new Class A office buildings are under construction on Capitol Mall, and there is some jockeying for tenants in the well-heeled downtown market

Perry-Smith said he likes the location he has for his firm's headquarters. "It has a very professional mix of tenants and good parking," he said.

Class A office lease rates have been trending upward as vacancies for high-end space stay low. The Wells Fargo Center tends to stay 98 percent to 99 percent full, said John Frisch, broker with Cornish & Carey Commercial. Frisch, along with Tom Bacon, represented Perry-Smith in the negotiations.

The Wells Fargo Center is "the definition of Class A office space in Sacramento," Frisch said. Completed in 1992, the 30-story, 500,000-square-foot tower is the tallest and biggest office building in Sacramento.

The expansion this year would be the fourth for Perry-Smith since it moved to the 12th floor. Before that, the company had its offices across from Cal Expo in the "Flashcubes" building on Exposition Boulevard.

innov8

Apr 19, 2007, 6:10 PM

Good thread sugit.

I'm surprised the article did not mention that the firm I work for will also
be expanding and moving into bigger office space on Capitol Mall... will
be expanding from 1,500sf to 2,500sf.

ltsmotorsport

Apr 19, 2007, 6:17 PM

So 555 is where you guys settled down (finally ;))?

sugit

Apr 20, 2007, 5:05 PM

From an article in today journal regarding parking problems in midtown....

It's not a big company, but I hate seeing these type of jobs move outside of the city.
___________________________________

"I wanted to stay in midtown so bad, but it's impossible to find parking." said Debbie Hammond, president of Merlot Marketing Inc. She is planning to move to Natomas because her business has outgrown its 4,000-sqaure-foot space at 2220K Street. Merlot has 10 parking spaces for 15 employees.

"It's a huge inconvience to not have the right accomidations for your team." she said, adding that the intern just got four parking tickets in the past 30 days.

TowerDistrict

Apr 20, 2007, 5:18 PM

maybe they should hire designers that already live in the area....

*cough *cough

TowerDistrict

Apr 20, 2007, 5:39 PM

though i was just joking around above, it is very hard to find a job in my field. and a lot of smaller businesses like that seem to be moving out of the city not only for parking hassles, but to be closer to where their owners/employers live.

There was a quote in the Biz Journal months ago, where a commercial realestate broker explained how after doing tons of research on the best fit for a client's business to relocate, 99% of the time the company will move to wherever the owner lives.

I don't think that's healthy for a business or the people that work there. In the case of Merlot, I would bet that the majority of their clients and vendors are still in the downtown area, and they'll end up spending much more (in time and money) compensating for the distance, than they ever did on parking tickets.

neuhickman79

Apr 20, 2007, 7:01 PM

Remember, they're not moving out of the CITY! They're moving to Natomas. It's not downtown...but, it's still in the city.

urban_encounter

Apr 23, 2007, 2:52 PM

Fueling an empire
Pacific Ethanol, which recently moved its headquarters
to Sacramento, seeks to grow
By Dale Kasler - Bee Staff Writer
Published 12:00 am PDT Monday, April 23, 2007
Story appeared in BUSINESS section, Page D1

Pacific Ethanol Inc. has just one production plant in operation, in Madera. But it has enough facilities under construction or on the drawing board to create an ethanol empire stretching from Idaho to the Imperial Valley. Its plan is to increase its production capacity tenfold by 2010.

Why the rush? Sacramento's newest publicly traded corporation, having just relocated its headquarters from Fresno, needs to expand quickly before the market gets too crowded. Pacific Ethanol wants to keep "the pole position, if you will, in the West," said President and Chief Executive Neil Koehler.

The auto-racing reference is appropriate. Lots of people are moving furiously to build ethanol plants in California and the West. There are projects under construction or on the drawing boards up and down the Central Valley, including a just-hatched plan to build the state's largest ethanol plant at the former Sacramento Army Depot.

Ethanol is hot these days, praised by politicians and environmentalists as a tool to reduce global warming and America's dependence on foreign oil. But even as demand grows for the gasoline additive, some experts are warning of a glut.

"There has been a tendency to over-invest," said Jim Jordan, a transportation fuel consultant in Houston. "The numbers speak for themselves. We're going to have too much capacity if somebody doesn't do something."

Already market forces have taken a little of the fun out of the ethanol party. When Brazil flooded the U.S. market with cheap ethanol last year, the price went from around $3.60 a gallon to its current level of about $2.40, said analyst Eitan Bernstein of Friedman, Billings, Ramsey & Co. in Virginia.

At the same time, corn prices have soared, raising the cost of production. That's put a squeeze on profit margins, even as farmers scramble to expand the corn crop.

Still, many ethanol partisans say the business is strong. Because it's a substitute for gasoline, the price of ethanol will remain relatively high as long as gas is expensive, they say.

"Short term, there's going to be periods of oversupply and there's going to be periods of shortages ... but over the long run, there are pretty strong underlying fundamentals," said Matt Schmitt, managing partner of a Mission Viejo company called Calgren Renewable Fuels. Calgren has begun construction on a $100 million plant in Tulare County.

And the market has cooled off the building boom somewhat.

"We've seen some pullback already on construction," Koehler said. "We have seen the capital markets clam up to a certain extent."

He called the slowdown a healthy development that will stabilize the industry.

Jordan, who runs a consulting firm called Jim Jordan & Associates, said the industry may be nearing a shakeout that eliminates some of the smaller producers, especially the farmer-owned plants that dot the Corn Belt. An established, cost-efficient operator like Pacific Ethanol should survive, he said.

That there is even talk of a glut shows how far the ethanol industry has come. A few years ago, it was still something of a business on the fringe, restricted mainly to the Midwest and kept alive to a degree by generous federal tax subsidies.

Back then, entrepreneurs trying to build plants on the West Coast were given little respect. The oil industry looked down on ethanol. And California officials spent years fighting the U.S. government over ethanol mandates, arguing that ethanol was unnecessary for clean air and, because of its chemical properties, could harm the air quality in summer.

Today the climate is different. Former oilman President Bush praised ethanol in his last two State of the Union speeches and signed a law widening its use. California has had its own change of heart.

In his executive order mandating low-carbon fuels, Gov. Arnold Schwarzenegger suggested using more ethanol. The California Air Resources Board, which sets fuel standards, is considering changes that would allow refiners to nearly double the amount of ethanol they blend into gasoline. The reason: Advancements in automotive and refinery technology have reduced fears that ethanol would worsen the air, Air Resources Board spokesman Jerry Martin said.

Investors have hopped on the bandwagon as well. Bill Gates invested $84 million in Pacific Ethanol in late 2005. Vinod Khosla, a prominent Silicon Valley venture capitalist, has started his own renewable fuels business, Cilion Inc., which plans to build ethanol plants near Bakersfield and elsewhere. Among Cilion's investors: Richard Branson, the man behind Virgin Airways and Virgin Records.

Yet ethanol continues to receive criticism from some quarters. A study released this week by Stanford University scientist Mark Jacobson said widespread use of E85 -- a little-used fuel blend that is 85 percent ethanol -- could create more ozone than gasoline does. Ozone is a major ingredient in smog.

All this attention can make stock prices fluctuate. Pacific Ethanol shares briefly soared above $40 last May before slumping to the low teens. The stock currently trades roughly between $15 and $20; it gained 5 cents Friday to close at $15.19 on the Nasdaq market.

A former state worker, Koehler helped build the state's first plant in 1984, a small Rancho Cucamonga facility that made ethanol out of beer and soda manufacturing byproducts.

But the industry didn't take hold in California until the late 1990s, when the state told refiners to substitute ethanol for MTBE, a clean-air additive that was found to be polluting the groundwater. The first large-scale plant in California opened in late 2005 near Visalia; it's owned by a private firm from Los Angeles.

Pacific Ethanol, whose chairman is former California Secretary of State Bill Jones, began as a marketing firm and opened its first production plant, in Madera, last fall. It relocated its headquarters from Fresno to downtown Sacramento in January, partly to be close to the Capitol.

The company more than doubled its revenue last year to $226.4 million and shrank its losses to just $142,000, compared with $9.9 million in 2005.

Many investment analysts believe it will turn its first profit this year, and the company keeps growing. It has purchased a minority stake in a Colorado plant and has facilities under construction in Oregon, Idaho, Stockton and the Imperial Valley.

urban_encounter

Apr 23, 2007, 2:55 PM

Capital is 'hot' business city
By Jon Ortiz - Bee Staff Writer
Published 12:00 am PDT Monday, April 23, 2007
Story appeared in BUSINESS section, Page D1

Sacramento ranks 15th on Inc. magazine's "Hottest Places
To Do Business" list of top 20 large cities.
The River City is California's only representative on the
list, sandwiched between No. 14, Nashville, Tenn., and
16th-place Austin, Texas. Las Vegas finished first.

The magazine's May issue is on sale today.

Inc. defined "large cities" as those with an employment
base of 450,000 or more, and its researchers focused
on job growth data to measure a region's economic strength.

When matched against 393 U.S. cities of all sizes,
Sacramento dropped to 108 in the nation, just ahead
of Brownsville, Texas, and just behind Shreveport, La.
First place overall went to St. George, Utah, population 50,000.
The Riverside-San Bernardino area ranked highest on
the overall list among California cities, placing 26th.

Other California cities of note: San Diego (164), Fresno, (223),
Oakland (230), Los Angeles (283), San Francisco (317)
and San Jose (356).

The lists are online at www.inc.com/bestcities.

sugit

Apr 24, 2007, 3:55 AM

Fueling an empire
Pacific Ethanol, which recently moved its headquarters
to Sacramento, seeks to grow

I could help by laugh when I saw this in the comments:

simsite at 3:56 PM PST Monday, April 23, 2007 wrote:
Three words for you:

Pacific Ethanol Arena.

3 out of 3 people found this comment helpful

:rock:

foxmtbr

Apr 24, 2007, 5:43 AM

^ What a (s)excellent idea!

Schmoe

Apr 25, 2007, 12:21 AM

Sacramento ranks 15th on Inc. magazine's "Hottest Places
To Do Business" list of top 20 large cities.
The River City is California's only representative on the
list, sandwiched between No. 14, Nashville, Tenn., and
16th-place Austin, Texas. Las Vegas finished first.

This is interesting to me because Inc. magazine is for entrepreneurs and small businesses. I never thought of Sac as a place where it's great to start a business.

enigma99a

Apr 25, 2007, 10:41 AM

I could help by laugh when I saw this in the comments:

simsite at 3:56 PM PST Monday, April 23, 2007 wrote:
Three words for you:

Pacific Ethanol Arena.

3 out of 3 people found this comment helpful

:rock:

heh. Maybe someday it will happen when they make it big.

sugit

Apr 27, 2007, 4:56 PM

Public affairs firm gets room to grow
KP Public Affairs, Sacramento's largest lobbying firm, is growing and has leased the entire eighth floor of Esquire Tower at 1201 K St., about 18,400 square feet.

The company now occupies most of 1115 11th St., about 14,800 square feet. It will move into the new space this fall.

Formerly known as Kahl/Pownall Advocates, the 11-year-old company changed its name in 2005 after the firm's original partners, Fred Pownall and Mike Kahl, retired.

KP Public Affairs employs more than 30 people, including 15 lobbyists and eight public relations professionals. The firm added five lobbyists and three PR employees in the past four years, part of the reason for the move, officials said.

KP Public Affairs was one of the first firms in Sacramento to blend lobbying and public affairs services, said Michael Burns, a partner in the firm. The company reported lobbying income of $10.2 million during the last two-year legislative session, or $5.5 million in 2006, according to data reported to the California Secretary of State.

Lobbying represents about 75 percent of the company's overall revenue, though about 10 percent of that lobbying revenue, for activities such as consulting, does not have to be reported to the state.

Clients include the California Restaurant Association, downtown railyard developer Thomas Enterprises and the California Chamber of Commerce.

arod74

May 9, 2007, 11:11 PM

Another Sacramento business fixture possibly being uprooted. Jeez, the local corporate pool keeps getting smaller and smaller. Sure hope some cavalry is on the way....

Crystal Cream & Butter Co. sold to Massachusetts firm
By Jon Ortiz - Bee Staff Writer
Last Updated 12:52 pm PDT Wednesday, May 9, 2007

Crystal Cream & Butter Co., which has produced and marketed diary products in Sacramento and Northern California for more than a century, has been sold.

HP Hood LLP purchased the 106-year-old Crystal for an undisclosed sum. Hood is a national dairy company with sales of about $2.3 billion. The privately held company is controlled by the family of its chief executive, John Kaneb.

Crystal, with an estimated $180 million in yearly sales, also is privately owned.

Crystal officials referred calls to Hood's corporate headquarters in Chelsea, Mass., where Hood spokeswoman Lynne Bohan confirmed the sale but declined to discuss details.

The fate of Crystal's 500 workers is unknown.

Last year, the company put its former manufacturing site at 10th and D streets in Sacramento up for sale. Crystal moved most of its operations to Power Inn Road about a decade ago.

sugit

May 9, 2007, 11:24 PM

Crystal is a well known product in CA, so I have to think Crystal HQ would stay in Sac, even in the parent company HQ is in Massachusetts.

On a postive front, Pacific Ethenol and Digital Music Group both had a postive earnings reports today.

As we have talked about in the past, it's very unlikely that a F500 company is going to relocate to Sacramento, so it's all on these up and coming companies.

innov8

May 11, 2007, 8:53 PM

Hotel rates, occupancy on the rise
Sacramento Business Journal

Friday, May 11, 2007 by Mark Anderson

Sacramento hotels continue to push hotel room and occupancy rates higher, according to research by PKF Consulting in San Francisco.

March 2007 saw hotels in the Sacramento market getting higher rates than they had the year earlier or during the first two months of the year.

The average daily room rate in Sacramento's larger hotels in March was $107.13, up 2 percent from the previous March. Occupancy was up 1.6 percent, from 76.8 percent in March 2006 to 78.1 percent this March.

For the full first quarter, rate was up 4.7 percent, from $101.81 in the 2006 period to $106.64 for the first three months of the year. Occupancy in the first quarter was 70.3 percent, down just slightly from 71.4 percent the year earlier period.

greenmidtown

May 11, 2007, 10:59 PM

not that I believe it but here it is:
http://www.forbes.com/2007/05/03/market-housing-overpriced-forbeslife-cx_mw_0504overpriced.html

"The usual suspects littered our list: Miami came in second, followed in order by: Sacramento, Calif.; San Francisco; Washington, D.C.; Honolulu; New York; Los Angeles; and Boston. San Jose, Calif., rounded out the top 10."

Pistola916

May 11, 2007, 11:56 PM

Sacramento, Calif. One day we're going to get the Calif. remove when Sacramento get's mention in national publications and media.

sugit

May 14, 2007, 7:15 AM

Firm pulling up stakes after eight years of projects, one public spat
By Bob Shallit - Bee Columnist
Published 12:00 am PDT Monday, May 14, 2007

Portland, Ore.-based Walsh Construction is closing its Sacramento office after an eight-year run that included high-profile projects and one very public dispute with a local developer.

The recently settled spat with developer Paul Petrovich had nothing to do with the decision to close, says Mark Friedman, who has worked closely with the Walsh folks.

"It was a resource allocation issue," says Friedman, a member of the Loftworks development partnership. "Their business is booming in Portland and Seattle and it wasn't as successful here."

Walsh executives could not be reached for comment.

Friedman says he was told the company will finish its existing projects, then shut the office.

The local shop took on high-profile projects, including jobs at UC Davis and renovation of downtown's Ping Yuen apartments. It also built the stunning mixed-use complex at 16th and J and renovated the MARRS complex at 20th and J. It's currently working on a Sutter housing complex at 27th and N.

But the past year has been tough on Walsh. There was the conflict with Petrovich, which resulted in the developer posting signs blasting the contractor.

The company, which operated locally as Walsh & Forster, also took a hit when a housing project it was slated to build was canceled due to cost overruns. *(Must be the East End Gateway projects that Loftworks canceled)*

Friedman says he's sad to see the company leave.

"We had a great working relationship," he says. "They were capable and honorable."

neuhickman79

May 15, 2007, 6:50 AM

YIKES!

City facing $4.5 million budget shortfall
By Terri Hardy - Bee Staff Writer

Last Updated 7:47 pm PDT Monday, May 14, 2007

Sacramento's real estate slump has led to a projected $4.5 million shortfall in the city's 2007-08 budget.

Property transfer taxes and supplemental taxes are down from 2005 levels, and so are sales and utility-user taxes, budget officials said Monday.

To deal with the expected funding gap, budget officials are suggesting using $4.5 million of Sacramento's $30 million reserve.

Tuesday, the City Council will take its first look at the city's proposed $965 million budget for 2007-08. Hearings will be held over the next few weeks and a final version is expected to be approved on June 12. The fiscal year begins July 1.

Declining tax revenues have darkened the city's five-year financial forecast. According to the city's budget report, the cost of providing services will continue to outpace revenues.

For a complete story, see Tuesday's Bee.

brandon12

May 15, 2007, 12:30 PM

neuhickman79

May 15, 2007, 5:58 PM

^This is inexcusable on the part of city government. They should have had the foresight to realize the housing boom wouldn't last forever. This predicament seems very similar to the jam the state government got itself into after the dot.com bust. While times are good, they foolishly approve new entitlements that are obligations into perpetuity, even though they know the tax revenue stream can't be expected to last forever.
Here's what I predict will happen next: Either A) they will increase my taxes, or B) they will cut services. But they will definitely not cut the fat from their bloated beauracracy.

2 comments:
1) They had the foresight to create a reserve which covers the deficit and thensome.
2) It seems they may want to cut the bureaucracy by not filling vacant positions.

I think the city is doing a good job. I really hope they don't have to cut services. Unfortunately, I think taxes should be raised...if only just a quarter of a percent...maybe even less. Many big cities have very high taxes over 10%. I remember buying a pack of cigarettes in Chicago once for $10.00 because of taxes. We talk a lot about civic pride here. But, the 'we're all in this together ' mentality goes out the window when it comes to taxes. I'll pay more for a better city that has the money to do what it needs to do.

TowerDistrict

May 15, 2007, 6:50 PM

sounds to me like the definition and consequence of unsustainable growth - sprawling development and all the costs associated with over-extending the city's infrastructure. this city would be entirely self sufficient if it would quit stretching itself for the quick buck. like brandon said, the lack of foresight is just ridiculous.

innov8

May 15, 2007, 7:38 PM

Agreed TowerDistrict.

The City failed to stabilize and balance future revenues and spending to avoid
falling into red ink. I would have a hard time voting for a tax that is not earmarked
first to be used a certain way... other wise it’s like handing over more money to
our city leaders so they can continue to do more of the same that they are doing today.

sugit

May 15, 2007, 8:18 PM

Another local company bought up.

Sacramento's HIT gobbled up by software giant
By Clint Swett - Bee Staff Writer

Longtime Sacramento software company Hansen Information Technologies is being acquired by software giant Infor Global Solutions for $100 million, the companies announced Tuesday.

The sale means the end of Hansen family ownership of HIT, which develops programs to help government entities handle building permits, manage sewer and water systems and track property taxes. Its customers include Caltrans as well as Las Vegas, Tulsa, New York City and Los Angeles.

Last year HIT sold a 58 percent stake to San Francisco-based equity fund Gate Capital for more than $50 million. The new deal calls for Infor, also owned by Golden Gate, to pay $100 million for HIT, including a 42 percent take still held by chief executive officer Chuck Hansen.

Hansen said his company's operations will continue in Rancho Cordova and he expects little impact on the firm's 350 employees worldwide, including 180 in the local office.

He said the company, founded in 1983 by his father, Bob Hansen, is a good fit for Infor, which is one of the world's leading providers of enterprise resource planning software, an umbrella term that includes programs to control, manufacturing, inventory, scheduling, billing and other chores for large companies.

The acquistion of HIT gives Infor -- ranked No. 3 in enterprise resource planning behind SAP and Oracle -- a strong presence in the government market, Hansen said.

He said that HIT was chasing deals valued at up to $100 million, more than twice the company's annual revenue. "We wanted to have a big partner to go after deals like that," Hansen said.

arod74

May 15, 2007, 8:28 PM

:previous: Seems like all that ever gets posted is news about another local company getting bought out. When will a local boy make good and crack the fortune 500. Maybe in our lifetime?

sugit

May 15, 2007, 8:43 PM

Seems like this has been the norm with Sac tech companies for quite some time. The only local tech company I can remember that had a real good shot at becoming a big time player was Level One..before Intel bought them.

http://money.cnn.com/1999/03/04/news/intel/

I can't think of another Sacramento company that was bought for more money...2.2 Billion

I've heard Digital Music Group say they want to grow the company as big as they can, but they still have a long way to go and have some obstacles in my mind.

innov8

May 16, 2007, 3:10 PM

Big biodiesel plans at port
By Jim Downing - Bee Staff Writer
Wednesday, May 16, 2007

The governing commission of the Port of Sacramento will consider a proposal to begin lease negotiations and permitting procedures to build a bio-diesel plant on port property.

Primafuel Inc. of Long Beach wants to build a 60 million-gallon-per-year biodiesel plant on a 14-acre site at the port, according to a staff report.

The refinery would convert vegetable oil, most of it imported from other states and countries, into a fuel that produces lower net emissions of common air pollutants and climate-warming carbon dioxide than conventional diesel.

The Primafuel facility, located along Industrial Boulevard across the street from the Farmers Rice Cooperative silos, would generate roughly $1.1 million annually in lease payments and shipping fees for the port, the staff report said.

If constructed, the plant would be nearly 10 times the size of the largest existing biodiesel plant in California. Major facilities are also in development in Bakersfield and at the Port of Stockton.

http://www.sacbee.com/103/story/181383.html

neuhickman79

May 16, 2007, 5:43 PM

ltsmotorsport

May 16, 2007, 8:21 PM

Great to hear this. The port is also a perfect location for something like this.

snufalufugus

May 17, 2007, 5:00 AM

I just read this article on the bee's website before seeing it here. This biodiesel plant is hopefully the beginning of a alternative energy plants and companies. I hope this is the first of many more proposals.

Let's face it, 10-15 years from now big oil will throw insane amounts of money to snap up these alternative energy companies and just bury the technology so they can continue to spoon feed us expensive fossil fuels.

neuhickman79

May 17, 2007, 5:59 AM

Let's face it, 10-15 years from now big oil will throw insane amounts of money to snap up these alternative energy companies and just bury the technology so they can continue to spoon feed us expensive fossil fuels.
No way that's going to happen. Big oil is in it's last days. What are they going to do when the oil runs out? Put chocolate syrup in our cars and tell us it's oil? Not going to happen! Alternative energy is the wave of the future. It has to be or we're all dead!

neuhickman79

May 17, 2007, 7:02 PM

Here's more good news for the alternative energy industry in Sacramento.

Sacramento Briefing: Biotech rice OK'd for Kansas planting

Last Updated 5:26 am PDT Thursday, May 17, 2007
Story appeared in BUSINESS section, Page D3

Sacramento-based Ventria Biosciences has received federal approval to plant as much as 3,200 acres of its biotech rice in Kansas, according to a final environmental assessment published Wednesday in the Federal Register.

Ventria has genetically engineered a strain of rice that produces two proteins found in human breast milk. The proteins can speed recovery from diarrheal illnesses. Growing the proteins in rice is much cheaper than making them in other ways.

Over the past three years, the company's plans to plant its rice have drawn protests from anti-biotech groups and some rice farmers -- first in California, then Missouri. Those groups worried that Ventria's rice would mix with commercial and weedy rice varieties. Some also argued that designing food crops to produce pharmaceuticals is a bad idea.

But Ventria has for several years grown its rice in test plots in North Carolina and over the past year has been welcomed by economic development groups in Kansas. No commercial rice is grown within 300 miles of the proposed Kansas planting sites.

The U.S. Department of Agriculture received 20,034 written comments opposed to the Kansas plantings, and 29 in favor of them. The agency ruled that planting the rice would have no significant impact on human health or the environment.

In an April 30 interview, Ventria CEO Scott Deeter said farmers in Kansas would be ready to plant the company's rice within days of receiving the USDA go-ahead.

-- Jim Downing

AID Networks wins Big Bang

AID Networks, a company that wants to apply software technologies to medical devices, has won the $15,000 first prize in the Big Bang business plan competition sponsored by the University of California, Davis, Graduate School of Management.

The company aims to make its first product a patient monitoring device.

Second prize of $5,000 went to Simple Robot, which is designing robots to assist in basic household tasks. Its first product is scheduled to be an automatic swimming pool cleaner.

Now in its seventh year, Big Bang is a business plan competition designed to promote entrepreneurship in the Sacramento region. The awards were announced at a ceremony on the Davis campus Wednesday evening.

-- Clint Swett

and another one....

Port OKs biofuel plant
Refinery will convert vegetable oil to burn in diesel engines
By Jim Downing - Bee Staff Writer

Last Updated 12:28 am PDT Thursday, May 17, 2007
Story appeared in BUSINESS section, Page D4

http://media.sacbee.com/smedia/2007/05/16/21/417-PRIMAFUEL_1_.embedded.prod_affiliate.4.jpg
The proposed Port of Sacramento plant, in rendering above, would make 60 million gallons of biofuel a year.

The biofuel revolution has reached Sacramento.

The Port of Sacramento's governing board on Wednesday unanimously approved a proposal from Long Beach startup Primafuel Inc. to build a biodiesel plant that would make 60 million gallons a year of the alternative fuel.

Planned for 14 acres of port land along Industrial Boulevard in West Sacramento, the $60 million to $90 million facility would have nearly 10 times the production capacity of the largest existing biodiesel plant in California.

The plan must pass through state and local environmental reviews, which have frequently delayed biofuel projects elsewhere in the state. Permitting is expected to take at least six months, followed by up to 18 months for construction. The plant is expected to employ 70 workers.

West Sacramento Mayor Christopher Cabaldon, who also sits on the port's five-member board, called the refinery an ideal green-industry anchor for the port and his city.

"One of our key issues is to use the port to achieve net reductions both in air pollution and greenhouse gases," Cabaldon said in an interview before the meeting.

A biodiesel plant, he said, meets those emissions objectives in two ways: by generating little pollution of its own and by producing a clean-burning fuel.

As designed, the refinery would emit less smog-forming pollution than a typical gas station, said Paul Hensleigh, deputy air pollution control officer at the Yolo-Solano Air Quality Management District. The facility would convert vegetable oil, most of it imported from other states and countries, into an alternative diesel fuel that produces lower net emissions of most air pollutants as well as climate-warming carbon dioxide than does conventional diesel.

"Its own direct (pollution) output is extremely low. And its net impact is extremely high," Hensleigh said.

Cabaldon said he does not anticipate significant local opposition.

"This is the kind of project that folks from the community and around the port have been suggesting that we move to," he said.

The Primafuel project represents the first new industrial client at the small port since it completed a major restructuring late last year, which included an alliance with the Port of Oakland.

Port Manager Mike Luken said his office received unsolicited proposals from six different biodiesel startup companies beginning last fall. After a formal review, port staff selected Primafuel Inc., which was founded in 2005 by a small group of renewable-energy veterans.

Primafuel Executive Vice President Rahul Iyer said financing for the Port of Sacramento project is in place.

Iyer said the West Sacramento site was attractive because of the port's access to rail, truck and sea transport, as well as its proximity to agricultural land, a large potential customer base in Sacramento and Northern California's booming green technology sector.

Nationwide biodiesel production in 2006 was 250 million gallons. By contrast, Americans burn about 60 billion gallons of petroleum diesel and 140 billion gallons of gasoline each year.

Biodiesel production capacity is growing rapidly in the United States and abroad. But there is substantial uncertainty about the future global availability of plant oils to feed the new refineries.

Iyer said Primafuel plans to work with Sacramento-area farmers to integrate oilseed crop production into their operations. The company hopes to initially draw about 5 percent of the refinery's feedstock from local farmers. Because California's soil and climate support many high-value crops, the state's farmers raise little of the relatively low-value crops used to produce vegetable oils.

While biodiesel will burn in any diesel engine, it's not available for retail sale -- unless diluted with four parts petroleum diesel -- because the federal government has yet to approve standards for it.

In the Sacramento region, a network of co-ops distributes biodiesel to consumers. Some fuel wholesalers also supply biodiesel blends to bus, truck and heavy equipment fleets.

Diesel cars have long been banned from California showrooms for their polluting emissions, but they are set to make a comeback. At least six automakers plan to release California-ready diesel models, some as soon as the 2008 model year.

http://media.sacbee.com/smedia/2007/05/16/21/392-Untitled-1-289.embedded.prod_affiliate.4.gif

Deno

May 18, 2007, 11:29 PM

What is the city, county and state doing to help keep businesses from moving out of state. I work for a company here that has moved 70 jobs to Arizona and is looking to move others, possibly hundreds of jobs to Arizona from the Sacramento and Bay area. The reason given to us is the high cost of doing business in California. They said this could happen within the next 3 to 5 years. I have family that live in New Mexico and everytime I visit I read of new businesses moving there from California.

sugit

May 24, 2007, 6:07 PM

Unify buys software firm
Sacramento Business Journal - 10:44 AM PDT Thursday, May 24, 2007

Unify Corp. has purchased Active Data Corp., the company announced Thursday.

The terms of the cash deal were not disclosed, though the four-quarter payment schedule includes a two-year earn out agreement.

Sacramento-based Unify, a database software management company, said the purchase of Active Data Corp. would complement its application modernization strategy. Unify (OTCBB: UNFY) bought Gupta Technologies as part of that strategy last November.

Baltimore-based Active Data provides application migration software.

Deno

May 25, 2007, 11:26 PM

Just wondering why they decided to spend all the surplus from last year rather than putting some in reserve or giving some back to the tax payers.

sugit

Jul 11, 2007, 11:54 PM

Say bye-bye to Digital Music Group. At least it sounds like there may still be some jobs left here. It was still a small company, but I had high hopes for it in Sacramento.

______________________________________________________________

Digital Music agrees to merge with The Orchard
Sacramento Business Journal - 2:17 PM PDT Wednesday, July 11, 2007
by Melanie Turner

Digital Music Group Inc. has merged with The Orchard Enterprises Inc., a leading global distributor and marketer of music based in New York.

The combined business will retain Sacramento-based Digital Music's Nasdaq: DMGI listing and change its name to The Orchard. Current Orchard president and chief executive Greg Scholl will lead the combined company.

Under terms of the deal, Digital Music will issue about 9.1 million common shares and 4.5 million shares of convertible preferred stock to The Orchard's shareholders. Each share of preferred stock will be convertible into one share of common stock, with a liquidation preference of $5.57. After five years, the company can redeem all the preferred stock for $25 million.

Shareholders of The Orchard will own approximately 60 percent of the voting shares outstanding upon closing of the merger, which is expected in the fourth quarter of 2007.

No money is changing hands in the deal, said Digital Music chief executive Mitch Koulouris, who is leaving the company to pursue other interests.

"This is a good time for me to take the opportunity to hand off the baton and have a new management team take this to an entirely different level," said Koulouris, who plans to take his first vacation from work in four years.

He has no definite plans for what he'll do next, but he said he's had several job offers.

Digital Music's chief financial officer Karen Davis will serve as Digital Music's interim chief executive officer until the closing of the merger.

The combined company will control a large catalog of entertainment assets, with more than 1 million music recordings available for sale and thousands of hours of TV, film and video programming.

Digital Music Group digitizes and distributes independently owned music, television, film and video catalogs for online music, mobile and video stores. Retailers include Apple Inc.'s iTunes Music Store, Google Inc.'s Google Video, RealNetworks, Wal-Mart Stores Inc.'s Wal-Mart Music and Yahoo Inc.'s Yahoo Music.

Koulouris said the deal has been in the works for some time and "came to a boiling point" over the past six weeks.

"It really creates the biggest digital media distribution and services company in the world," he said. "It's a good day for shareholders of DMGI."

Shares of Digital Music climbed 9.8 percent to $4.38 per share Wednesday.

A former Tower Records employee who once created a magazine for software developers, Koulouris wrote a business plan for the company in 2003 and raised money in 2004, including $1 million from Stockton billionaire Alex Spanos, a big-time developer who owns the San Diego Chargers, was one of his first stops.

Koulouris said he set out to create the biggest company of its kind. The company remained smaller than rival The Orchard. Still, Koulouris said, "I'm quite proud of the accomplishment."

The company purchases digital rights to more than 300,000 music tracks and more than 4,000 hours of video such as "Hopalong Cassidy" and "Mr. Bill." Koulouris said Digital Music's video catalog is bigger than any other.

"I believe that's a big growth area for the company," he said.

Digital Music acquired about 53,000 music tracks last September after paying $3.2 million and 420,000 shares of stock to San Francisco-based Digital Rights Agency LLP, which has the rights to several high-profile entertainers including Chamillionaire, Death Cab for Cutie and Ludacris. Digital Music employs about 40 people.

The Orchard employs about 75, has more than 1 million tracks, distributes to more than 100 online outlets, and has operations in 25 countries.

"DMGI and The Orchard create a powerful combination in the rapidly growing digital music industry," said Scholl, in a news release. "There are substantial opportunities for combined revenue synergies and cost reductions. DMGI adds exciting new artists and record labels to The Orchard's already extensive music catalogue, and provides the combined company an immediate and significant leadership position in the digital distribution of independently owned TV, film and video content."

For 2006, The Orchard had revenue of $14.9 million and gross profit of $4.2 million, according to its preliminary unaudited financial statements. DMGI reported pro forma revenue of $10.2 million and gross profit of $2.4 million for 2006.

For first-quarter 2007, The Orchard had revenue of $5.6 million and gross profit of $1.4 million. DMGI reported revenue of $3.4 million and gross profit of $0.8 million. Both companies operated at a net loss as they invested in people and processes to position for continued rapid growth.

Koulouris said that while details are still being worked out, it's "safe to say" the combined business will have its headquarters in New York. Scholl said a New York headquarters is intended, but all terms of the deal are contingent on Digital Music shareholder approval. Officials are still determining whether some processing, such as video, would occur in Sacramento.

"There's a lot of overlap in music so it doesn't make sense to have two processing centers in music," he said.

snufalufugus

Jul 12, 2007, 4:24 PM

Woohoo!! A Sacramento company actually buying someone else.

------------------------------------------------------------------------

Folsom's VIP turns big deal
Staff and sales take big leap with purchase of MyITgroup.
By Dale Kasler - Bee Staff Writer
Published 12:00 am PDT Thursday, July 12, 2007

A quiet but fast-growing Folsom tech consultant has made a major acquisition, elevating it to the upper tiers of Sacramento's technology industry.

Visionary Integration Professionals said Wednesday it has bought Houston-based MyITgroup for an undisclosed price.

MyITgroup's operations include a branch in tech hot spot Bangalore, India. The Houston company consults on issues related to business software made by German firm SAP.

The purchase doubles VIP's employment to 800 workers and increases annual sales to more than $150 million from its current $90 million, said Chief Executive Jonna Ward.

She said the takeover will probably add a few jobs to the Folsom headquarters.

"We're integrating their back-office operations into ours," she said.

VIP employs about 80 workers in the Sacramento area. They include headquarters workers and those working at clients' sites, particularly at state government offices around the region.

The deal represents the fifth takeover by VIP in two years. Its most recent acquisition was a Virginia-based firm last October.

The acquisition came the same day that another Sacramento tech firm, Digital Music Group Inc., became the latest in the region to be taken over, a contrast noted by Barbara Hayes, director of the Sacramento Area Commerce and Trade Organization.

She said it's exciting to see a Sacramento company buying something rather than being sold.

"This acquisition, which takes them to $150 million and 800 employees worldwide, is huge for a company that started here 11 years ago and that nobody's paid much attention to," Hayes said.

"They have been under the radar" but now are among the major tech companies in Sacramento, Hayes said.

Although Ward doesn't expect to move any functions to Bangalore, she said the India site is part of the attractiveness of MyITgroup.

More and more clients are interested in "blended solutions" that include tech consultants in the United States and overseas, she said.

"We're hearing loud and clear from many clients about blended solutions," she said.

--------------------------------------------------------------------------------

BrianSac

Jul 20, 2007, 12:10 AM

This development should help solidify or grow Austin's film and entertainment economy. The project broke ground last month.

$1.5B Mixed-Use Entertainment Development Planned in Austin
April 16, 2007
By Tonie Auer, Southwest Correspondent

In Austin, a city known for its music and film industry, a $1.5 billion mixed-use development with a definite entertainment flair featuring residential, retail and commercial spaces was announced today. The first phase of the 681-acre Villa Muse project is slated for a late 2008 opening.

The development, led by founder and CEO Jay Aaron Podolnick, a producer/engineer who founded Texas' first 24-track recording facility in 1972, will be anchored by a $125-million, 200-acre Villa Muse Studios, developed for the film, television, advertising, music and videogame industries.

Located just off of the State Highway 130 corridor, 15 minutes east of downtown Austin, Villa Muse (pictured) will be an innovative 681-acre development anchored by the 200-acre Villa Muse Studios, which is a professional campus for the creative industries offering high-end production and post-production facilities including soundstages, recording studios, an amphitheater, areas for backlots and the largest outdoor water tank for film production in the nation.

Will Sacramento ever see anything like this? More importanly, where would they put it and will Sacramento Nimbys ever let them build something this?

ltsmotorsport

Jul 20, 2007, 1:02 AM

Well, if Metro Air Park every realizes its full potential, then yes.

wburg

Jul 20, 2007, 5:03 PM

BrianSac

Jul 20, 2007, 5:18 PM

wburg

Jul 20, 2007, 6:05 PM

I just dont understand why the "culture" is not bigger.

Unfortunely, the "culture" is hindered by Nimbys as well. Nimbys oppose music venues (clubs/bars) just about anywhere. The clubs in midtown are always subject to extreme scrutiny. Serna's idea (remember him) of making broadway a haven for music venues and theatres was a good idea. But of course, you have Land Park obstructionists opposing everything under the sun.

Serna was no friend of the local music scene. He had no problem with police pressure on local music venues when the music wasn't of the sort he wanted to see promoted (that is to say, music that appealed to people under 40.)

And I'm really getting sick to death of the whole "NIMBY" thing. It seems like folks here assume there is a secret cabal of "NIMBYs" that oppose everything and secretly control the world like the Bavarian Illuminati. That's just silly, not to mention untrue.

I mean, if anyone here opposes things like homeless shelters or SRO housing, they're a "NIMBY" too. Someone who opposes freeway expansion is a "NIMBY" to people living in the suburbs who commute to work downtown. Oppose the Tsakopoulis sprawl zones? You're a NIMBY too. Think Placer County's plan for more suburban tract homes along the South Placer line in farmland areas is horrible? You might as well say "I Oppose Placement Of This In The Rear Portion Of My Plot Of Land" if you can't bear to speak the N-word when speaking of yourself.

After all, everyone has a backyard, and everyone has different ideas of what doesn't belong in it...and, sometimes they're right!

TowerDistrict

Jul 20, 2007, 6:16 PM

After all, everyone has a backyard, and everyone has different ideas of what doesn't belong in it...and, sometimes they're right!

yes, and when they're wrong.. they're a NIMBY.

innov8

Jul 20, 2007, 6:51 PM

And I'm really getting sick to death of the whole "NIMBY" thing. It seems like folks here assume there is a secret cabal of "NIMBYs" that oppose everything and secretly control the world like the Bavarian Illuminati. That's just silly, not to mention untrue.

I mean, if anyone here opposes things like homeless shelters or SRO housing, they're a "NIMBY" too. Someone who opposes freeway expansion is a "NIMBY" to people living in the suburbs who commute to work downtown. Oppose the Tsakopoulis sprawl zones? You're a NIMBY too. Think Placer County's plan for more suburban tract homes along the South Placer line in farmland areas is horrible? You might as well say "I Oppose Placement Of This In The Rear Portion Of My Plot Of Land" if you can't bear to speak the N-word when speaking of yourself.

After all, everyone has a backyard, and everyone has different ideas of what doesn't belong in it...and, sometimes they're right!

:haha: Ha, Ha, Ha!!! The Hindrance to Development (what you now have as your
profile by your Avatar) is tired of the "NIMBY" thing here.

I sure wish we could have the likeness of a Mayor Daily of Chicago get
elected to this town so that the NIMBY’s could be marginalized. That way all
the plans for the city that have been studied to death would be kicked into
high gear to make them reality.

urban_encounter

Jul 28, 2007, 7:42 PM

I sure wish we could have the likeness of a Mayor Daily of Chicago get
elected to this town so that the NIMBY’s could be marginalized. That way all
the plans for the city that have been studied to death would be kicked into
high gear to make them reality.

:yes:

:cheers:

Web

Jul 28, 2007, 8:00 PM

Sr or Jr???

both crooks in many ways.....and if you don;t like what they want you are out.

I cannot see where tearing everything down is a good thing....and one day your property may get the same treatment because some Moe Mohanna wants your land.......

travis bickle

Jul 30, 2007, 10:49 PM

Austin isn't building their music and film industry from scratch: this development would be intended as a home for the one they already have. Sacramento has a thriving music scene, with a growing number of clubs, but in terms of recording studios and film soundstages we're not really there yet.

Keep in mind that Austin has had a major music festival, SXSW, running for the past 20 years, and an already legendary nightclub scene before that. Music scenes are based on bands, not on buildings, so the music, and the audience, has to come before purpose-built structures can be supported. In terms of film, we're still too close to the Bay Area and Los Angeles to support large studios, although we do have an active independent/guerrilla film scene.

Normally, music venues are relatively low-margin businesses that cannot afford to utilize new buildings: they need lower rents to be profitable, which means (drum roll) adaptive reuse of older buildings. Break out your Jane Jacobs, folks, it's right in there: cultural uses are better supported where rents are low and the buildings aren't quite as well-maintained.

Without organic support for a music scene (in the form of reduced barriers for music venues, civic tolerance of the musical community, and low rents so musicians can afford to live there) you don't get enough local talent to build a music scene. Spending millions on an "entertainment district" is a meaningless exercise in failure if the scene isn't there to support it. Look at the example of America Live!, locally, or the artificially attempted gentrification of Del Paso Boulevard in the mid-nineties.

At this point, we need better support of the music/arts scene we already have, which is actually pretty good in its own right--but it doesn't have the muscle or the numbers to support this sort of project. FIRST the culture, THEN the buildings.

Music, like any type of community where people struggle for years in impoverished anonymity before a tiny percentage break through to fame, is much like water in that it follows the path of least resistance. That least resistance is what our friend wburg outlines above. It is a completely organic process that you can't "build" or "plan" to accomplish. As I've said repeatedly, building/development competes for funding with everything else in the private sector and, given the high degree of risk, requires a substantial return to attract capital. You just can't get the required return on new buildings that a burgeoning music community provides. You can only get the required return through an established and profitable music scene of the kind Austin (by far the best city in Texas w/San Antonio a distant second) offers. This is why Austin can find a cool billion and a half of private funding for this type of project and why Sacramento is nowhere close to that.

Midtown may already be approaching a pricing threshold that prohibits its further development as an underground music scene location. This type of music scene is what provides the critical mass necessary to produce a thriving music community. That community is what then produces the regional "creme de la creme" that can populate the venues of the now more expensive midtown or elsewhere in Sacramento.

That's not to say there's no future for Sacramento's music community. In fact, I would argue that it has never looked better. The best of those bands playing right now in garages and warehouses will actually be able to make a living once they get to a level where large numbers of people are willing to pay decent money to see them. And they wont have to leave Sacramento to do it.

But where will those bands be nurtured? I always look to university communities first. Certainly that's a large part of the Austin success. Davis has a large on or near campus community, but it's pretty pricey and thus inhibits the economic requirements (read: Cheap) for this type of growth. Sac State has lower community costs (particularly to the south), but suffers from a more commuter student atmosphere.

Were I a betting man (and I am...), I'd put money on the neighborhoods/industrial sections along and to the east of 65th street to next blossom into a music/arts incubator for the Sacramento Valley and to provide the next generation of bands for Sacramento's increasingly renown mid-town club district and for what we hope will be a nationally recognized arts/clubs district along the J, K, L streets corridor and railyards.

econgrad

Jul 31, 2007, 8:44 AM

travis bickle

Jul 31, 2007, 1:57 PM

:previous:

I like what both of you have said above about the music scene. I do it, have done it, and some of the truth that many do not like to talk about is: Music in Midtown/Sacramento area would be thriving if there wasn't a biased monopoly of a certain very very small group of people, and a certain lousy music newspaper, booking for the few venues. The monopoly is slowly falling apart, but still exists. Many really good bands get frustrated and move out. When we play a venue in SF, in front of 200 or so people, with a $5 cover charge, we get around $500.00 when we do the same in DT or MT Sac, we get about $50 to $150. Also lack of all ages venues seriously suck ass. Talent here is abundant! Opportunity not so great, but should and could have been if good people were running the scene...
(BTW: I am not frustrated with our success here, we won the sammies a some years back and play many shows, but I see the bias, and it makes me sick. No, I will not say what band I am in because this town is too small, and I will keep my opinions anonymous.)

Sorry to hear about the strangle-hold one small group of people still holds over the local music scene. That's pretty common in small towns but I had hoped Sacramento had grown out of it. I would imagine the problem is lack of adequate venues but you would know better than I. You're right to keep a low profile. There are always far more bands than places to play and no one holds a grudge more vindictively or eternally than music promoters. It could be worse, in the 80s/early 90s bands often had to pay the club for gigs. It wasn't just a small town phenom... this even happened in LA. Promoting clubs is much more expensive now with skyrocketing liability and other costs. Makes it tough for bands to book themselves. I can remember bands renting out large storage units in the middle of warehouse districts, then going out to clubs to promote the gig and starting at 3:00am. Does that still happen? Then they'd develop a following and guarantee an owner a minimum. Seemed to be more small clubs a decade or so ago willing to make that kind of arrangement.

Bands like yours are the very essence of a thriving music scene. Every band thinks the gigs are better out of town (although it's hard to argue with five bills vs. a buck fifty.) The eternal struggle with club owners/promoters makes for great stories when you get older and is just a small part of a great life as a struggling musician. Savor every moment of it.

wburg

Jul 31, 2007, 4:36 PM

I don't know if it's one person's stranglehold as much as several competing power blocs in the central city, each of which is willing to sink other competition if they think it will bring a few more people to their club. All are confronted with a city government that views a lively music scene as a bad thing if that music isn't ragtime jazz or something else equally inoffensive. The city's entertainment permit system is set up with larger promoters in mind: a coffee shop that wants to feature bands that will draw 50 people max can't afford bonded security guards and a huge insurance policy.

The silly, silly truth is that Sacramento actually does have a very lively and active music community, but it's difficult for most people to find out about it because most of the venues are semi-legal if not completely underground, which means promotion is limited: too much promotion puts you on the city's radar for inspection and shutdown. This is nothing new: with certain ebbs and flows, Sacramento has been a hotbed of great underground shows for two decades. But unless you know someone or travel in the right circles you don't find out about most of them, because they're usually in basements or warehouses or coffee shops that don't have "entertainment permits."

I think I too have already railed about the lack of all-ages venues: they tend to be the underground kind mentioned above, since they generally aren't bars, but the "under the radar" rule still applies.

econgrad

Aug 1, 2007, 5:17 AM

^
Everything you say above is right. I was trying to say there is more to the situation as well. Even during the "Cattle Club" days, there has been a hinderence of support for most of the bands, and just a small few (including mine at the time) got the good shows, most never got a chance. Many really really good bands left this town because of this high school type cliche mentallity in the music scene here. I have seen it for awhile now. There are great improvements, new and younger people on the scene now taking over bookings and promotions and pushing better bands....but alas, there still is a very strong monopoly controlling most of the good venues and exposure, as well as no one pays the bands anything. Yes, we have evolved from the days of buying $2 tickets from the cattle club and the Boardwalk, and selling them for $3 to our friends, but it has evolved into making only $50 to $150 dollars at venues in Mid-Town and the suburbs. Musicians can make a living off of just being a musician in other cities like Austin, NYC, Chicago, SF, etc... It is possible to do that here, once the monopoly is broken. Because of the "monopoly" (sorry to use that term, it is the best one I can think of without getting to involved with who and what I am talking about) promoting bands that still need a lot of work, the crowds at live music venues have been really really bad. How many times have you been to Old I's or another place and seen maybe 10 people watching a band..thats not creating a thriving music scene.
If I had the money, I would open up a live venue, all ages. maybe in West Sac as close to the river as possible, because I believe the talent is here, and I would book the bands that are the best musically, not because you know them and think they are cool or part of your circle... I have seen music genres also discriminated against like: Hip Hop and Jazz, not the rag time stuff at the Jazz festival, but the good Jazz (think Miles Davis, Duke Elington types). Instead, indie rock that no one really cares about except in some small circles, is booked constantly....Therefore, not great music, no great crowds, venues do not make money, no new venues, no great music scene.

wburg

Aug 1, 2007, 7:30 AM

You really don't need a lot of money to start a venue or to promote bands, just a lot of spare time, the ability to bullshit people, and absolutely no shame.

Which bands are "the best musically" is a highly relative question: just because you think a band is good doesn't mean it will draw. Obviously, the indie rock promoters you don't care for think their bands are great. What styles of music, specifically, do you consider under-represented in the Sacramento music scene?

I guess I just know too many independent promoters to go along with the idea of a musical monopoly. There are a couple of big dogs in the scene, but that's true in any city, and the big dogs tend to get the biggest venues and the best-known acts.

As to hip hop, I would imagine the tendency for shootings to happen at hip hop venues has just a little bit to do with why hip hop venues get a lot of heat. Old Sacramento's dreadful night-time rep was in part due to Bay Area gang members trying to escape gang crackdowns decided Old Sac's hip hop clubs would be a good place to party. I know not everyone in the scene is a gangbanger, but enough are that it creates a danger zone at every club. That becomes a double-edged sword: venues like hip-hop shows because the scene is all about showing off wealth and dropping $500 buying your friends Courvoisier or whatever (unlike, say, gutterpunks who bitch about having to pay a $5 cover and then try to sneak in beer so they don't have to buy it at the bar) but they also have to spend big bucks on security and get the bad press of shootings. And those shootings have been the end of several venues.

econgrad

Aug 2, 2007, 1:16 AM

You really don't need a lot of money to start a venue or to promote bands, just a lot of spare time, the ability to bullshit people, and absolutely no shame. I agree mostly, but building a venue from scratch, with a liquor license, and permits for live music, and all ages, is almost impossible...

Which bands are "the best musically" is a highly relative question: just because you think a band is good doesn't mean it will drawI disagree...The reason the Underground and The Boardwalk are sold out most nights is because they book the better bands. The only time Old I's sells out is during no live bands (during Lipstick). When bands play, only like 2 tims a month is there a large crowd. Same with The Library (ex), Marylins, Distillery, etc... Oh, with exception of when Jackie Greene plays. Obviously, the indie rock promoters you don't care for think their bands are great That is their mistake. What styles of music, specifically, do you consider under-represented in the Sacramento music scene? Jazz, Hip Hop, New Modern music like Screemo, Nu Metal, Emocore, pretty much what is new..

I guess I just know too many independent promoters to go along with the idea of a musical monopoly Yep, there are many out there, and many are really good! They just aren't that big yet... There are a couple of big dogs in the scenepretty much only 1..maybe 2.., but that's true in any city Totally disagree! SF has hundreds of promoters who book acts and pay fair..we have no one that pays fair. , and the big dogs tend to get the biggest venues and the best-known acts. They do not get the biggest acts, they just make the most noise while promoting mostly crap, who no one goes to see.

As to hip hop, I would imagine the tendency for shootings to happen at hip hop venuesThere are no Hip Hop venues... has just a little bit to do with why hip hop venues get a lot of heat. Old Sacramento's dreadful night-time rep was in part due to Bay Area gang members I am not sure...????trying to escape gang crackdowns decided Old Sac's hip hop clubs would be a good place to party. I know not everyone in the scene is a gangbanger, but enough are that it creates a danger zone at every club. That becomes a double-edged sword: venues like hip-hop shows because the scene is all about showing off wealth and dropping $500 buying your friends Courvoisier or whatever (unlike, say, gutterpunks who bitch about having to pay a $5 cover and then try to sneak in beer so they don't have to buy it at the bar) but they also have to spend big bucks on security and get the bad press of shootings. And those shootings have been the end of several venues.

:) Good discussion BTW. Thanks for responding. I agree with you mostly, and I am sure we know the same peeps... :cheers: We just have different points of view on the matters at hand, or maybe your experience in the local music scene is a very different one than mine.

innov8

Aug 3, 2007, 7:18 PM

Entrepreneurs on the rise
By Gary Chazen of The Sacramento Business Journal

August 3, 2007

Many state agencies and various nonprofit organizations employ legions of men and women who keep track of very important things such as who else employs their fellow Californians.

Other agencies and associations, meanwhile, track things such as economic strength, housing costs, crime and transportation needs for each region.

And they compile their information for all to see online.

The problem is that the raw data can be awfully difficult to chop through and see how the place where you live stacks up unless you have somebody who is trained to analyze such numbers or know someone who occasionally overdoses on caffeine and can stay focused long enough to make heads or tails of the information.

Thus, I was armed with a second cup of coffee when I approached a recent report by the California Center for Regional Leadership -- a statewide nonprofit that uses words such as "support, facilitate and promote innovative regional solutions" in its mission statement, making me wish I had tried this with a Red Bull or two. And here's what I've found.

Or, rather, here is what the report's authors have found but took a lot longer than I will to get to the point.

In a nutshell, the big picture is pretty much what you already intuitively know: Sacramento and the Central Valley are the fastest-growing areas in a fast-growing state, creating transportation problems, to be sure, but also resulting in lots of jobs and a surprisingly large increase in ethnic diversity.

The six-county Sacramento area experienced a 25 percent net gain in non-farm sector jobs between 1997 and 2005, the greatest growth in the state. The Bay Area, by contrast, was hit hard by the recession and saw about 1 percent growth during that period.

The Bay Area's loss was obviously Sacramento's gain. The Bay Area population increased only 5 percent between 2000 and 2006, while the Sacramento area's population rose 15.4 percent to 2.25 million -- second only to the San Joaquin Valley's 16.4 percent growth.

Also in that time, the Sacramento area's nonwhite population rose by more than 19 percent, one of only three regions to see such an increase. Considering that most of California is non-white anyway, it merely means that the Sacramento area is catching up to the rest of the state.

But like many dry reports, it has one hidden gem: The number of firms in the Sacramento area without employees has grown by more than 40 percent between 1997 and 2004, the greatest such growth in the state. That means a huge rise in mom-and-pops or perhaps moms-and-no-pops, but definitely no juniors.

It also means the entrepreneurial spirit is taking off here. As the report's authors indicate in discussing similar growth in the Tri-Valley area that includes Danville, Dublin, Livermore, Pleasanton and San Ramon, it also transforms "prevailing assumptions that large companies are responsible for job growth or that new jobs come from relocations or expansions to the region."

The authors further suggest they have uncovered "a major shift in how economies are structured in California." Given that traditional economic development agencies typically try to lure major companies to town, perhaps it's time a greater emphasis be made in making sure all of these entrepreneurs are given a greater means to succeed.

If nothing else, fostering businesses run out of garages would cut down on traffic. After all, we already have enough people who commute downtown just so they can write dry reports.

http://sacramento.bizjournals.com/sacramento/stories/2007/08/06/editorial2.html

wburg

Aug 3, 2007, 7:51 PM

Sacramento has always been a center of ethnic diversity. I'm not sure how it is "catching up" to the rest of the state when we're actually way out ahead of most of the state, and cities like San Francisco are growing whiter and whiter as the non-wealthy are pushed out of the city by high housing prices.

Sometimes it seems like people expect Sacramento to be almost entirely Caucasian, like Portland is, and get surprised when they realize that we have had large ethnic populations since the Gold Rush. I suppose that the "ethnic cleansing" the city did in the fifties and sixties had something to do with that.

I guess, as a freelance writer (albeit one with a day job) I count as an "entrepeneur" then.

Majin

Aug 3, 2007, 8:28 PM

Thats exactly what I was thinking. What "catching up" does Sacramento have to do regarding ethnic diversity? Sacramento has been more diverse than the rest of the state for a long time now.

Cynikal

Aug 3, 2007, 8:34 PM

Actually, a few years back Time mag. noted that Sacramento was the most integrated cities in the US. I've calculated segragation indexes for the region and at the census track and block group level we are fairly integrated with the exception of a few areas which are anchors of chain migration. Now fold in economic integration and it's a very different story.

TowerDistrict

Aug 3, 2007, 8:38 PM

http://www.idcide.com/citydata/ca/index.htm

White:
Sacramento: 48%
San Francisco: 50%
California: 60%

Asian:
Sacramento: 17%
San Francisco: 31%
California: 11%

Black:
Sacramento: 15%
San Francisco: 8%
California: 7%

Mixed/Other:
Sacramento: 18%
San Francisco: 11%
California: 21%

Web

Aug 3, 2007, 10:50 PM

are they comparing metro areas or just city limits??? maybe thats the issue

Majin

Aug 3, 2007, 11:14 PM

are they comparing metro areas or just city limits??? maybe thats the issue

I would imagine the numbers wouldnt look much different.

Cynikal

Aug 3, 2007, 11:23 PM

I would imagine the numbers wouldnt look much different.

Really? Get into the north area, Folsom and Roseville and it's really white. But generally, they look at what the US census calls a Metropoliton Statistical Area (MSA) that looks at the city and surrounding area.

Majin

Aug 3, 2007, 11:28 PM

Really? Get into the north area, Folsom and Roseville and it's really white. But generally, they look at what the US census calls a Metropoliton Statistical Area (MSA) that looks at the city and surrounding area.

I work in Folsom, I am here everyday.

It's still fairly diverse here.

TowerDistrict

Aug 4, 2007, 12:13 AM

I work in Folsom, I am here everyday.

It's still fairly diverse here.

maybe so.. i don't get out to Folsom much at all.

I can tell you that Roseville is looking mighty white though....

:fruit: :fruit: :fruit: :fruit: :fruit:

sugit

Aug 31, 2007, 4:52 PM

"They are leaving Peter to pay Paul," Strain said.

I think this is very true. It's just shuffle of tenants without expanding the base. Its great that these firms are signing onto new buildings and we see new highrises, but in the big picture we are probably looking at a very high vacancy rate for a while, which is going to hurt changes of new buildings.

Unless the market for downtown offices expands, either from significantly growing companies, or more importantly bringing company from the suburbs into the city instead of firms just moving around, its going to be tough for more towers to get built in the near future.

At the same time, higher vacancy might push rates down temporary and tempt new firms to move into the city though.
_____________________________________________________________________

Capitol Mall's top law firms on the move
Older buildings face vacancies once shiny new towers get built

Sacramento's second-largest law firm has focused its sights on new office space at 500 Capitol Mall.

If talks bear fruit, developers George and Angelo G. Tsakopoulos would get McDonough Holland & Allen PC as the first anchor tenant for their 24-story office tower, and the owners of the law firm's current home at 555 Capitol Mall would face a gaping hole in their lease portfolio by early 2009.

Downey Brand LLP already has signed as an anchor tenant in U.S. Bank Tower, under construction at 621 Capitol Mall. Sacramento's largest law firm expects to leave 555 Capitol Mall for its new headquarters across 6th Street in November 2008.

While Downey Brand is working to expand its lease in the new bank tower to five floors, another Top 10 Sacramento law firm is close to a deal for space there. Norm Hile, managing partner at Orrick Herrington & Sutcliffe, said the firm is "very far along with negotiations" for a lease at 621 Capitol, but "it's not definite."

This kind of movement is unprecedented among major law firms on Capitol Mall. Some say it indicates the legal market has matured enough that developers can hang ambitious projects and their financing on the strength of the legal shops.

"We're looking at significant anchor tenants for these two buildings," corporate real estate broker Chris Strain said. "Landlords and lenders have been hesitant to use professional services as anchor tenants in the past because they typically do not have a deep balance sheet. This shows you we have a healthy legal industry in Sacramento that reflects the expansive business environment."

It also reflects the near-term challenges facing downtown landlords as a big block of Class A space moves toward the market.
Big chunk of space

McDonough Holland & Allen's lease is up at 555 Capitol on May 31, 2009. The law firm sent out a request for proposals more than a year ago for 65,000 to 80,000 square feet of offices.

"Our focus is now on 500 Capitol Mall," executive director Gerry Holt said. "But we have not signed a lease yet or even begun formal negotiations."

Until that happens, firm executives have declined further comment.

"If we do sign them, they'll be our first significant tenant, and it would establish a name for the building that's recognizable," said Greg Levi, the leasing agent for 500 Capitol Mall. An 80,000-square-foot lease would fill about 18 percent of the 433,500 or so leasable square feet of offices planned for the tower.

"We don't have things finalized yet," Angelo G. Tsakopoulos said. "We've got some loose ends. But we're in discussions and should have something to report soon."

A stable, longtime law firm founded in Sacramento in 1953, McDonough Holland & Allen has more than 85 local attorneys and dozens of support staffers, making it a plum anchor tenant for any office building. It now leases about 68,000 square feet on the seventh, eighth and ninth floors of 555 Capitol Mall, or about 18 percent of the 376,000-square-foot total in that building.

"The $64,000 question," Strain said, is what happens to 555 Capitol Mall with so much vacant space? That would be almost 40 percent of the leasable offices at 555 Capitol.

The ownership group at 555 Capitol was unable to come to terms with McDonough Holland & Allen to extend the lease, said Claudette Russell, vice president of building operations.

"The negotiations broke down due to a difference of opinion (on) the rental rate," she wrote in an e-mail. "Plaza Five Fifty Five is asking $3.50 per square foot for the space that McDonough Holland & Allen will vacate."

Efforts to reach the building's owners were unsuccessful.
Another vacancy looms

Another high-rise on Capitol Mall could lose a solid law-firm tenant, too.

Orrick Herrington & Sutcliffe's lease at 400 Capitol Mall is up at the end of 2008. The firm is far into negotiations for space up the street in the U.S. Bank Tower.

"We are obviously spending time looking at our options," managing partner Hile said. "The folks at 621 (Capitol) have a very attractive proposal, but there's no final signed anything."

The Sacramento office of San Francisco-based Orrick Herrington has 29 lawyers, making it No. 8 on the Business Journal's list of top law firms in the region. The firm occupies the top floor -- the 30th -- of the Wells Fargo Building and about half the 29th floor.

Orrick Herrington needs more space and is still talking to the building owners about taking the rest of the 29th floor, Hile said. "But we are very far along with negotiations at 621 Capitol Mall," he added. "It's a beautiful and attractive space, much in our thoughts."

Downey Brand has exercised its option to take more space in the new bank tower, but the paperwork isn't finished yet, said Tom McCarthy, operations director for the firm.

The expanded lease would give the firm just over 100,000 square feet, up from 85,000 square feet in the initial deal signed two years ago; the higher figure would amount to almost 30 percent of the office space in the tower, which would have about 350,000 square feet to lease. It's enough room for about 160 offices, McCarthy said. The firm has about 105 in Sacramento now but wants room to grow.

While the number of new law firms coming to Sacramento continues to grow, the net number of lawyers in the area is not changing much as new high-rise office buildings come on line.

There are a total of 8,792 lawyers in the four-county area, according to the State Bar. That's up slightly more than 1 percent from 8,680 in 2006.

"They are leaving Peter to pay Paul," Strain said. "At the end of the day, we'll see vacancy rates on Capitol Mall of up to 20 percent, two or three years out."

TowerDistrict

Aug 31, 2007, 5:06 PM

That's a bit ironic. I remember when 500 CM was first a go, Tsakopoulos had stated that his building was for the long term - anticipating that they would experience a bit of vacancy for a few years. But the trend here seems to be key tenants in older buildings jumping ship for the new towers, 621 and 500.

sugit

Aug 31, 2007, 5:21 PM

I think what Tsakopoulos (or his broker CBRE) saw was a lot of large law firms leases expiring in the late 2008- 2009 time frame and there hasn't been a new A Class Building on CM in 15 years (outside of 621) and saw a big opportunity to grab clients b/c of it..

He is smart enough, and fortunate enough to have the bankroll to get project going very quickly to take advantage of it.

sugit

Aug 31, 2007, 5:31 PM

Doh!

ltsmotorsport

Aug 31, 2007, 10:59 PM

Now if he'd only add about 10 or so more floors to the tower before it gets outta the ground. ;)

ozone

Sep 2, 2007, 5:38 PM

:previous: That would be nice but not very likely since it would have to go through the approval process all over again.

ltsmotorsport

Sep 2, 2007, 9:23 PM

Yeah, I was just pie-in-the-sky dreaming.

innov8

Oct 16, 2007, 6:45 PM

CalPERS accounted for $469M in Sacramento-area economy
By Mark Anderson of The Sacramento Business Journal

Monday, October 15, 2007

Investments by the California Public Employees' Retirement System into the four-county Sacramento region boosted the area economy by $469 million last year.

The research, conducted for CalPERS, found the pension fund created more than 4,000 jobs in the region and generated state and local tax revenue of more than $28 million. It also generated more than $150 million in employee compensation.

Most of the impact is through the fund's real estate, private equity and construction projects.

CalPERS had a similar effect on the southern Central Valley -- an area that includes Fresno, Tulare, Kern, Merced, San Joaquin and Stanislaus counties -- by boosting the region's economy by $114 million last year. The research found the pension fund created more than 900 jobs in the region and generated state and local tax revenue of $7 million in 2006. It also generated more than $27 million in employee compensation.

The Applied Research Center of California State University Sacramento compiled the report. It isolated $8.3 billion of the $26 billion the fund invested in California where it could track direct investment, indirect investment and ripple effects.

CalPERS also reported on Monday it had a $4 billion effect on the Los Angeles region (creating 36,000 jobs), a $2.6 billion effect on the San Francisco Bay Area (creating 21,000 jobs), a $968 million effect on the San Diego area (creating 8,800 jobs), a $620 million effect on the Inland Empire (creating 5,600 jobs); and a $147 million effect on the Central Coast (creating 1,200 jobs).

The public pension fund is the largest in the nation, with assets of $250 billion. It provides health and medical benefits to 1.5 million state and local workers and their families.

TowerDistrict

Oct 16, 2007, 7:05 PM

I know of $100 million that CalPERS didn't account for..... :irked:

innov8

Jan 4, 2008, 5:33 PM

Labor

State budget cuts likely to whack local job market; labor fights loom
By Kathy Robertson Staff WriterSacramento Business Journal

Friday, January 4, 2008

The Greater Sacramento work force, bolstered by 6,600 new jobs over the past year, faces a big hit from a looming $14.7 billion state budget deficit.

Government jobs grew more than any other sector in 2007 -- up 6,000 -- but Gov. Arnold Schwarzenegger is expected to include across-the-board cuts of 10 percent in his budget proposal next week.

That would hit hard in the Sacramento region, where government work accounts for about one in four jobs. Some of the slack would likely be picked up by jobs in health care, private education and professional and business services, all expected to continue with strong growth into 2008.

Health care reform -- and its effects on labor costs -- will be closely watched by business leaders. Landmark legislation backed by the governor and approved by the Assembly last month requires employers to provide health insurance to employees or pay a fee of up to 6.5 percent of payroll to subsidize the program.

The Senate could vote on the bill this month, but financing will likely be decided by California voters in November.

In other developments:

Almost 1.4 million low-wage workers who earn the state minimum wage got a 50-cent raise Jan. 1 to $8 an hour.
New rules to help employers comply with the state's mandatory sexual harassment prevention training law took effect Aug. 17, almost three years after the legislation was approved and following a fight over whether and how computerized "e-learning" would be allowed. The rules require two hours of training, outline trainer qualifications and allow "e-learning," so long as it's interactive.
Labor negotiations between Sutter Health and the California Nurses Association face an uncertain future after two strikes at 11 Sutter hospitals (none in Greater Sacramento) in 2007. Unable to reach agreement after 31 sessions, the two sides declared impasse in October and asked a mediator to intervene.
While those negotiations continue, another aggressive health care union will kick off contract talks affecting more than 150,000 health care workers in six states. Service Employees International Union will head to the bargaining table this year over new contracts with Sutter, Catholic Healthcare West, Kaiser Permanente and more than 100 nursing homes.

"When we first started a coordinated campaign in the 1990s, we had 12 hospitals," said John Borsos, who heads the hospital division for SEIU-United Healthcare Workers West. "By 2004, it was close to 90. Now ... it's up to 250 facilities."

Top 3 events 2007
Going down
1. Construction jobs in Greater Sacramento decline by 10.1 percent -- 7,200 jobs -- as the stalled housing market and subprime mortgage debacle hits home. Financial jobs declined by 3,100, off 4.7 percent. Net annual job growth for the region was less than 1 percent as of November.

2. Immigration reform stalls and employers who depend on immigrant labor nervously await federal enforcement of employee identification rules.

3. Unions protest outside contracts for food-service jobs at UC Davis and the California Nurses Association leads two costly two-day strikes at 11 Bay Area hospitals affiliated with Sacramento-based Sutter Health.

wburg

May 16, 2008, 1:10 AM

Good news on the employment front as well as the public transit front...

http://www.sacbee.com/749/story/942122.html
Siemens to add 200 jobs by 2010
By Dale Kasler - dkasler@sacbee.com

Last Updated 5:06 pm PDT Thursday, May 15, 2008

Print | E-Mail | Comments (8) |

Siemens' light-rail assembly plant in Sacramento expects to add 200 jobs in the next two years, the company said Thursday.

The expansion will bring employment to 700 workers, said Oliver Hauck, president and chief executive of Siemens Transportation Systems Inc. The hiring flies in the face of an economic downturn that has ballooned the region's unemployment rate to 6.5 percent.

Most of the hiring will be connected to the just-announced order to produce 77 light rail cars for Salt Lake City's transit agency. The $277 million contract, formally announced Thursday, is the largest in the plant's 24-year history.

Besides the Salt Lake contract, the plant needs more workers to complete ongoing orders for the transit agencies in Portland, Denver and Edmonton, he said. In addition, Siemens is consolidating more of the assembly process in Sacramento. Construction of the axles and other parts is being relocated to Sacramento from a Siemens plant in Austria.

All told, the Sacramento plant will expand its production capacity from about 72 trains a year to 120, Hauck said.

George Nolen, president and CEO of Siemens Corp., the New York parent of the transportation company, said the expansion is a testament to "the very high quality work force" available in greater Sacramento.

"California can absolutely compete with every state," Nolen said in an interview.

TowerDistrict

May 16, 2008, 2:19 AM

hey, maybe we can order our streetcars from them this time around?!

JVissle

May 17, 2008, 12:23 PM

maybe so.. i don't get out to Folsom much at all.

I can tell you that Roseville is looking mighty white though....

:fruit: :fruit: :fruit: :fruit: :fruit:

:haha: LMFAO!:haha:

otnemarcaS

May 30, 2008, 5:20 PM

Capital area's 8th most livable

Published 12:00 am PDT Thursday, May 29, 2008
Story appeared in BUSINESS section, Page D1

The Sacramento region rates as the eighth-best place to live in the United States, according to the July issue of Kiplinger's Personal Finance magazine.

The magazine's survey gives much weight to the size and growth prospects of a city's "creative class" – people who work in technology, the arts, education, business and a range of professional fields.

The story appears online at www.kiplinger.com/money/bestcities . The magazine goes on sale June 10.

Kiplinger's cited the Sacramento area's Hewlett-Packard and Intel campuses and pointed to the growing number of clean-energy firms.

"Basically, it's counting by occupations – looking for people who are 'paid to think,' " said Kevin Stolarick, research director at the Martin Prosperity Institute, which helped Kiplinger's develop a list of about 15 leading "creative class" cities around the country.

To pare that to a final list of 10, the magazine also looked at each region's cost of living, as well as recreation, arts and dining scenes.

Houston topped the ratings, followed by Raleigh, N.C.

– Jim Downing

otnemarcaS

May 30, 2008, 5:23 PM

:previous:

Oops, saw the above is already posted in the construction thread. Oh well.

innov8

Feb 6, 2009, 11:13 PM

Sacramento's Investment Outlook from Colliers International... it doe's not look much better for the next couple years.

How Did We Get Into This Mess?
Ultimately, there are plenty of people to blame at every level for the financial crisis
we find ourselves in. There is no shortage of culprits here; from those who bought
homes that they could not afford, to the speculators and the flippers; to the lenders who
peddled easy credit and sold the risk down the river; to the Wall Street cronies who hid
that risk in exotic securities packages. And let’s not even begin to talk about the fraudulent
mess that is the debt swap market. But, beyond all of this, we see a bigger lesson
to be learned and that is the proper role of government in a free market society. We are
here because of two distinct governing trends that—acted upon concurrently—were
the recipe for disaster.

Starting with Bill Clinton, and then vastly expanded under George Bush, Washington
got involved with promoting home ownership programs for Americans at any cost.
Certainly a noble concept, but the devil is always in the details and when government
interferes with basic market dynamics there are usually a host of unintended
consequences. When this agenda was combined with the concurrent governing trend
towards less oversight and regulation of the financial markets it was a disaster waiting
to happen.

Ironically, some of the hard lessons learned from the Savings & Loan Crisis in the early
1990s resulted in key regulatory changes that actually will help to shield the commercial
real estate industry during the current recession. Don’t get us wrong. The commercial
real estate industry is facing its most challenging year in decades. But thanks
to oversight and regulation of commercial lending, what could have been a crisis in
commercial foreclosures in 2009 is more likely to just be a surge. And unlike 1991, the market—in general—is not overbuilt... Read more here (http://www.colliersmn.com/prod/ccgrd.nsf/publish/B43B98026BD71A828525754C007E71AE/$File/COLLIERS+SACRAMENTO+INVESTMENT+REPORT+JANUARY+2009.pdf)

econgrad

Feb 8, 2009, 11:19 AM

Thunder Valley Casino management replaced with Station Casinos
Thursday, February 05, 2009 - Doug Elmets
Rocklin & Roseville Today http://www.rocklintoday.com/
articles_020509g.jpg

The United Auburn Indian Community Tribal Council announced today that Station Casinos, the Tribe's longtime business partner who has advised and consulted on operational and development issues since 2003, will assume temporary day-to-day management of casino operations for Thunder Valley Casino.

Station Casinos' role at Thunder Valley will continue to be under the direction of the Tribe’s Business Board and Development Board.

From the customer’s perspective, there will be no noticeable changes and Thunder Valley will continue to be the premier gaming facility in Northern California.

The effects of the current economic downturn and the reassessment of the scope of the Thunder Valley expansion project created the need to engage a seasoned team of managers who have dealt with similar challenges.

Construction of the casino expansion will restart this spring and be completed as scheduled in 2010.

Several managers of Thunder Valley Casino have been terminated or put on administrative leave during the transition.

econgrad

Feb 9, 2009, 1:34 AM

Friday, February 6, 2009
Rancho Cordova improves business base despite recession
City has plans to ease traffic flow between shopping centers
Sacramento Business Journal - by Michael Shaw Staff writer
View Larger

No city has been immune to falling tax revenue and budget shortfalls, but Rancho Cordova might be one of the best equipped to deal with those problems because of its broad tax base and reliance on outsourcing.

While other cities are implementing layoffs and furloughs to balance the books, Rancho Cordova is plugging away at improving its shopping centers, fostering mixed-use neighborhoods and serving the business community. Because it’s a relatively young city that incorporated in 2003, Rancho Cordova has had to contract out for some services, such as those related to planning and growth. That worked out in the city’s favor as it hasn’t needed to lay off workers when planning activity slowed.

City finance director Donna Silva said the city expects revenue for its fiscal year will fall about $3.8 million short of its general fund budget of $44 million, with about $970,000 of that shortfall due to lower sales-tax revenue. The city has been able to adjust to budget shortfalls on the fly, however, under its contracts with Sacramento County and other providers.

“We don’t have all our eggs in one basket,” said Curt Haven, economic development director, noting that the city has a range of jobs from high-end office users to industrial operations.

A few years ago, Rancho Cordova was abuzz over plans to add as many as 30,000 homes in the next few decades and grow into one of the major population centers in the region. With housing a bust right now, officials are adjusting course and focusing on Rancho Cordova’s role as a core center for jobs.

“I think we need to concentrate on what we do best, service the business district, the Class A office market,” Haven said. “That is our bread and butter.”

To that end, the city is launching a shuttle service between the light-rail stations and its office park and business district funded initially through a grant. A request for proposals is out, Haven said, but the city wants to make the shuttle service a more permanent addition. So leaders are talking with business owners about contributing to the program for the time when grant funds are no longer available.

After adopting a special plan for the area last year, Rancho Cordova is working on several projects along the Folsom Boulevard corridor, which cuts through the heart of the city. Next week, Target Corp. plans to start demolishing its 110,000-square-foot store at the Rancho Cordova Town Center to make way for a bigger 144,000-square-foot store, adding a Starbucks, cafe, pharmacy and photo department.

While the city will be happy with the estimated $200,000 in extra sales-tax revenue a larger store will bring, economic development manager Micah Runner said a revamped Target is the start of a long-wished-for reworking of three adjacent shopping complexes north of Folsom Boulevard. As it stands, the shopping centers sit on the same side of the street but are isolated from one another, making driving between them a chore. The city expects to spend about $4 million to build an access road through the projects. Officials are working with 11 property owners on the plan, but some still need to be brought on board, Runner said.

Elsewhere in that complex, Kohl’s selected an empty Mervyn’s store as one of 31 West Coast locations it plans to occupy, with an opening scheduled for October.

On a mostly vacant 12-acre site along Folsom Boulevard west of the shopping district, Los Rios Community College District is working toward relocating and expand its Rancho Cordova presence, part of a $475 million bond measure voters approved last fall. Runner said the city wants a mixed-use community that includes three-story condos or townhomes, senior housing and retail stores to develop around the new campus.

The young city still has some growing up to do.

It has no drugstore, but two are under construction — a Walgreens and a CVS Pharmacy, Runner said.

Developer David Mac Millan has never built in Rancho Cordova, but this week he received approval to develop light industrial buildings on 68 acres in the city near Mather Airport. Mac Millan Partners Inc. had been looking along the Highway 50 corridor for a while so he was pleased to find one of the only available industrial sites. He plans to build two business parks there when he gets tenants.

Since he purchased the acreage from Elliott Homes in 2006, Mac Millan has observed a planning process that hasn’t matured to its fullest, but is making strides.

“They are experiencing the struggles of a relatively new city when it comes to the planning and building process,” he said, adding that the economic development department has been responsive and eager to get his project out before the public. “They have been making an effort to do a better job in managing this process over the last year or so.”

mshaw@bizjournals.com | 916-558-7861

All contents of this site © American City Business Journals Inc. All rights reserved.

daverave

Feb 17, 2009, 7:01 PM

From a David Brooks, NYT article:

"Americans still want to go west. The researchers at Pew asked Americans what metro areas they would like to live in. Seven of the top 10 were in the West: Denver, San Diego, Seattle, San Francisco, Phoenix, Portland and Sacramento. The other three were in the South: Orlando, Tampa and San Antonio. Eastern cities were down the list and Midwestern cities were at the bottom."

http://www.nytimes.com/2009/02/17/opinion/17brooks.html?em

Take that Des Moines!

econgrad

Feb 17, 2009, 11:51 PM

innov8

Sep 23, 2009, 9:37 PM

Wednesday, September 23, 2009

Forecast: Sacramento unemployment will climb until 2011
Sacramento Business Journal

The Sacramento area’s economy will continue to struggle next year, as new-home construction remains slow and the jobless rate reaches 12 percent, according to a report released Wednesday.

The four-county region will continue to shed jobs next year before improving in 2011, according to the Business Forecasting Center at the University of the Pacific. Statewide, the jobless rate will climb to 12.6 percent in the spring before improving in 2011.

“Although the recession is technically ending, we anticipate a sluggish start to the recovery that will make it feel like a recession in California for another year,” said Jeff Michael, director of the forecasting center in Stockton.

Sacramento will appear to be a boom town compared to other regions in the San Joaquin Valley, according to the report. The Stockton-to-Fresno region will endure 17 percent-plus jobless rates next year, including an estimated 19.2 percent in Merced. Bay Area communities will fare better, with San Francisco’s jobless rate at 9.4 percent — the only area below double digits in Northern California.

Other findings:

• New-home construction — often considered the base for economic recovery — will increase to 56,400 homes in 2010, but that remains the second-lowest level in 50 years. New-home construction will exceed 150,000 homes in 2013, when the economy is back on track.

• Personal income will decline 1.5 percent this year, with a 0.8 percent increase in 2010.

• Many industries will lose positions next year, with manufacturing and construction declining about 85,000 and 78,000 positions, respectively. Health care will be the biggest job-creator, adding about 40,000 positions.

The center, based at the UOP’s Eberhart School of Business, produces quarterly economic reports for nine metropolitan regions, from Sacramento to Fresno, and the Bay Area.

http://sacramento.bizjournals.com/sacramento/stories/2009/09/21/daily38.html?surround=lfn

Ghost of Econgrad

May 5, 2010, 9:08 AM

Posted on Wed, May. 05, 2010
Sacramento to require permit, fees before construction
By Ryan Lillisrlillis@sacbee.com

last updated: May 04, 2010 11:01:12 PM

A controversial Sacramento building department program that had allowed work to begin with a verbal approval but no formal permit has been retooled.

The new facilities permit program will speed some renovations of commercial and industrial projects, but now will require a permit and fees to be paid before work starts.

The City Council expressed support for the changes Tuesday and will vote on the new program May 24.

The facilities permit program was suspended last year after the city attorney found it violated city code. Some council members criticized the program after it was determined to have been used to start construction on a Nestlé bottled water plant.

Developers were widely supportive of the program, which was designed to cut through red tape in the permitting process.

In a city staff report, development department officials wrote that the retooled permit program still will speed projects while following city codes.

Most notably, the new program will require a building permit and all fees be paid before work can start on a project. The prior program allowed work to begin on an oral or written "authorization to start work" and before fees were paid.

The new program also will include new fees for using the facilities permit program.

Under the new program, a team of building department personnel will handle plan reviews and inspections for individual projects, a policy that city staff said will help speed the development process.

The staff report indicates that reviews of project plans would be cut from 10 days to five under the proposal.

At his weekly news conference Tuesday, Mayor Kevin Johnson said the city "found the middle ground to move forward (with the facilities permit program), and we certainly have a resolution that everyone feels comfortable with."

"The best of the program is preserved and the areas that could be improved upon have been addressed," he said.

When the program was suspended in October, "it made everyone pause," Johnson said. "When you create an environment that sends a signal that we are not open for business, or that if we are open for business, it's tough to be served and you're not going to be waited on properly, it's tough for us to recover from that negative perception."