A new report from the Columbia University Water Center, in conjunction with Veolia Water and Growing Blue, reveals that businesses and cities in America’s most iconic regions are now under greater risk of water scarcity. Utilizing a new research metric called the Normalized Deficit Cumulated (NDC) index in the America’s Water Risk: Water Stress and Climate Variability study, Columbia identifies top ten U.S. areas facing the highest climate-related risk of water shortages, including Washington, D.C and New York City. (PRNewsFoto/Growing Blue)

Posted by Heidi Schwartz

A new report from the Columbia University Water Center, in conjunction with Veolia Water and Growing Blue, reveals that businesses and cities in some of America’s most iconic regions are now under even greater risk of water scarcity.

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Pacific Corporate Park in Dulles, VA is now known as Raytheon’s “Dulles Hub.” (Photo: Foxcorp.com)

Posted by Heidi Schwartz

Raytheon Company has announced that two of its four businesses will have new headquarters locations. The decisions stem from the company consolidation announced March 25, 2013, intended to streamline operations, increase productivity and achieve stronger alignment with its customers’ priorities.

Raytheon’s newly formed Intelligence, Information and Services (IIS) business will establish its headquarters at the company’s existing Dulles, VA, hub operations in Sterling, VA. IIS provides a full range of ISR, navigation, weather, cybersecurity, training, logistics, mission support and engineering solutions for the intelligence community, government and commercial customers.

Raytheon’s Space and Airborne Systems (SAS) business headquarters will transition from El Segundo, CA, to McKinney, Texas, where the company already has a major business presence. Raytheon will maintain business operations in California, as well as in other states. SAS builds radars and other sensors for aircraft, spacecraft and ships; provides communications and electronic warfare solutions; and performs research in areas ranging from linguistics to quantum computing.

The headquarters of Raytheon’s Integrated Defense Systems and Missile Systems businesses remain in Tewksbury, MA, and Tucson, AZ, respectively.

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MidAmerican Solar and Silicon Valley based SunPower are building the 579-megawatt Antelope Valley Solar Projects, the world’s largest solar power development under construction, co-located in Los Angeles and Kern Counties. Approximately 650 jobs are being created during the construction and more than $500 million is expected in regional economic development benefits. (PRNewsFoto/SunPower Corp.)

Posted by Heidi Schwartz

MidAmerican Solar and SunPower Corp. have marked the start of major construction at the Antelope Valley Solar Projects— two projects co-located in Kern and Los Angeles counties in California. The 579-megawatt development will employ approximately 650 workers during a three-year construction period; generate more than $500 million in regional economic impact, the majority of which will be generated during construction; and serve California’s growing electricity demand with clean, renewable solar power.

The Antelope Valley Solar Projects make up the world’s largest solar power development under construction. When complete, the projects will provide enough energy to power approximately 400,000 average California homes.

“The Antelope Valley Solar Projects are already creating needed jobs and economic opportunity in local communities, while at the same time, providing direct, long-term  environmental benefits,” said Paul Caudill, president of MidAmerican Solar. “We look forward to continuing our involvement in the Rosamond, Lancaster and Palmdale communities and, as we move forward, in the surrounding areas. The MidAmerican Solar team is committed to working hand-in-hand with the development’s neighbors and stakeholders. We also look forward to providing a reliable source of renewable energy to our customer Southern California Edison.”

“The start of construction on the Antelope Valley Solar Projects underscores that solar is a reliable, cost-competitive energy source,” said Howard Wenger, SunPower president, regions. “SunPower is proud to partner with MidAmerican Solar and Southern California Edison on this historic project, which is bringing critically needed jobs and economic opportunity to California today and will generate abundant clean, renewable power to the state over the long term.”

The Antelope Valley Solar Projects are owned by MidAmerican Solar. SunPower designed and developed the projects and is the engineering, procurement and construction contractor. SunPower also will provide operations and maintenance services for the plants via a multiyear services agreement.

The Antelope Valley Solar Projects will provide renewable energy to Southern California Edison under two long-term power purchase contracts.

“Southern California Edison appreciates the opportunity to work with MidAmerican Solar and SunPower to meet California’s renewable energy goals and recognizes the start of construction as an important step on that path,” said Steven Eisenberg, Southern California Edison’s vice president of energy contracts.

Electricity generated by the projects will displace approximately 775,000 metric tons of carbon dioxide per year—the equivalent of taking approximately 3 million cars off the road over the next 20 years.

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The move is recognized as a significant milestone in increasing the domestic control over important national security resources, since domestic manufacturing will ensure availability of these critical materials regardless of shifting global alliances. It will also provide 100% traceability and quality control to prevent contamination in the supply chain that would adversely affect the performance of the lithium ion cells.

The materials produced at this plant are used in anode (negative electrode) and cathode (positive electrode) fabrication. The particular chemistry of these materials ensures that satellite batteries can last for more than 10 years with more than 60,000 charge-discharge cycles, and it has never before been manufactured in the United States. Quallion has also built US Government funded facilities at its Sylmar, CA headquarters for the production of cathode materials and manufacturing of lithium ion cells for satellites.

Combined, these production facilities provide a vertically integrated manufacturing process for the domestic production of satellite batteries. This project expands Quallion’s satellite battery capabilities and can support further business and job growth in other market segments. Combined these projects will create over 50 jobs at a wide range of skill levels.

“The Quallion facility epitomizes the best attributes of public/private partnerships that establish domestic production sources that not only sustain our national defense capabilities but also create state-of-the-art manufacturing facilities that are economically and technologically competitive in the world marketplace,” said Mark Buffler, Program Director, Defense Production Act.

“The Title III funded project has been critical in assisting Quallion’s business expansion from manufacturing lithium ion cells exclusively for high-technology medical applications to becoming a premier designer and supplier of lithium ion cells for aerospace and other military applications.,” said Jeff Goldberg, CEO of Quallion LLC.  “Quallion is proud to support the men and women of the US military with cutting edge technology to help ensure our country’s security.”

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The Kings lost 25 more games than they won this season, the third-worst record in the NBA’s Western Conference. They were so far behind the eighth-seed L.A. Lakers, they need the Hubble Telescope to see the injury-plagued Lakers lacing up their sneakers for the playoffs.

But in the upside down world of big-money sports–where a losing franchise is viewed by ultra-rich moguls as a bargain bauble with a potentially huge return on investment–the Kings are the hottest property in the NBA.

Two high-tech zillionaires–the CEOs of Microsoft and Qualcomm–are locked in a bidding war to buy a majority share of the Kings from the Maloof family, which took control of the franchise in 1999.

The Maloofs also own the Kings’ current home, Sleep Train Arena (which in previous incarnations also was known as Power Balance Pavilion and ARCO Arena). As part of the deal that secured the Kings, the Maloofs acquired the WNBA’s Sacramento franchise, the Monarchs, but the women’s team folded in 2009 when a new owner could not be found.

Microsoft CEO Steve Ballmer and Christopher Hansen, a hedge fund manager, are heading a group that wants to move the Kings to basketball-hungry Seattle, which has been pining for an NBA franchise since the SuperSonics moved to Oklahoma City in 2008 and subsequently became the Thunder. The Washington-based group reportedly reached a tentative agreement in January to purchase a 65-percent stake in the Kings, and it has an approval from the city government to build a new arena in Seattle for the franchise, which would revive the Sonics name.

The rival bidders–led by Qualcomm CEO Paul Jacobs and Mark Mastrov, founder of the 24-Hour Fitness chain–made a similar offer and secured approval to build a new arena in Sacramento. Kevin Johnson, a former NBA star with the Phoenix Suns, currently is the mayor of Sacramento and a strong backer of the effort to keep the Kings in the city.

NBA team owners will begin a two-day meeting in New York tomorrow which will include a review of the bids for the Kings. NBA Commissioner David Stern said this week he does not expect a final decision to be reached at the owners’ meeting, an announcement that was greeted by disappointment in Seattle, which thought it had the edge in the bid for the Kings.

The Jacobs-Mastrov team may have a trump card in the form of Vivek Ranadive, a software entrepreneur from India.

Ranadive has attached himself to the Qualcomm CEO’s bid even though he currently is vice chairman of the Golden State Warriors, the NBA franchise in San Francisco. According to a report in The New York Times, Ranadive will give up his stake in the Warriors and become the “face” of the new Sacramento ownership if their bid succeeds. He has pledged to spearhead an aggressive effort to market the NBA in India.

Opening up a potential new market of more than 1.2 billion people could prove irresistible to the NBA owners. For more than a decade, the NBA has been steadfastly pursuing its dream of making basketball a global sport on a par with soccer. Several of the league’s biggest stars are now foreign-born players; interest in basketball has been growing throughout Europe, in China and even in Russia, where people in Moscow are familiar with the Brooklyn Nets’ new owner, Russian billionaire Mikhail Prokhorov.

Ranadive has pioneered special “Bollywood night” promotions during his stint with the Warriors. He is credited with helping the franchise sell a record number of season-ticket plans this year, in part due to a growing fan base of Indian émigrés. Ranadive told the Times that even if the bid to take over the Kings and keep them in Sacramento fails, he will continue to pursue his goal of making basketball “the No. 2 sport in India,” behind cricket.

Stern’s announcement that the NBA owners will take their time evaluating the two bids for the Kings appears to have erased any complacency the Seattle team may have had regarding their chances to win the franchise. According to press reports, the Ballmer-Hansen team has sweetened their offer by another $25 million to try to seal the deal.

Unlike college hoops, there’s no “possession arrow” in the NBA to determine who gets the ball when opposing players grab it at the same time. In this case, whoever jumps higher and faster will get the prize.

Note: There is a poll embedded within this post, please visit the site to participate in this post’s poll.

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The original iPS method demonstrated that ordinary skin cells could be reprogrammed to a stem cell state through the insertion of four genes. However, because the inserted genes are not an innate part of the cell’s DNA and are integrated directly into the genome via a viral vector, concerns have arisen over the potential risks associated with the insertion of foreign DNA into the cell’s genome. The iPS 2.0TM method employs vectors that do not integrate into the genome, thus allowing for the differentiation of cells genetically identical to the original starting material and alleviating safety concerns for use of iPS cells in a clinical setting. (© Cellular Dynamics International)

Cellular Dynamics International (CDI) has announced that the company is opening a facility in Novato, CA, leasing space from the Buck Institute for Research on Aging. This opening of a second CDI facility is in response to the company receiving a $16 million grant award from the California Institute of Regenerative Medicine (CIRM) to create and bank human induced pluripotent stem cells (iPSCs). CDI is a leading commercial producer of human induced pluripotent stem cell (iPSC) lines and tissue cells for drug discovery, safety, stem cell banking and cellular therapeutics.

Tom Novak, Ph.D., vice president of strategic partnerships at CDI, said,  “Our location in the Buck Institute, with its focus on improving human ‘healthspan’ and researching age-related disease, is a great opportunity for us to interact and collaborate with the top academic scientists in the field. We see this as a great opportunity to draw top talent to CDI’s second location.”

CDI signed a lease for up to five-years in the Buck Institute’s partially CIRM-funded stem cell research building.  A portion of the space will be subleased to the Coriell Institute for Medical Research to construct a stem cell bank, an activity for which CDI is a subcontractor.

“The CIRM grants provide CDI with the funding to build, with our partner Coriell, the premier iPSC bank,” said Bob Palay, CDI Chief Executive Officer. “We are excited to be working with the Buck Institute, constructing our stem cell derivation laboratories as well as the stem cell bank within their world class facilities.”

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The nation’s largest state has been painfully taking its fiscal medicine in huge dollops during the past four years, in the form of deep budget cuts and huge tax increases. Last year, a State Budget Crisis Task Force headed by former Fed Chairman Paul Volcker estimated California’s long-term debt at a staggering $370 billion. After swallowing that gloomy news, Californians trudged to the polls in November and approved a referendum increasing their state income taxes by a whopping $6 billion a year.

All of that may be about to change, seismically, for the better. The key to that positive change resides in the same place in California it did in North Dakota—buried more than a mile underground in the middle of a huge shale deposit.

Source: Energy Information Administration based on data from various studies. Updated May 9, 2001.

According to Mike Mills, a physicist and a Manhattan Institute senior fellow, California has “Saudi Arabia-scale” oil resources, primarily in its largely untapped Monterey shale field, which stretches northeast for more than 200 miles from Bakersfield in central California. The U.S. Energy Information Administration estimates that the Monterey shale field alone holds 15.4 billion barrels of oil, rivaling America’s total conventional reserves.

In a recent Op-Ed piece in the Wall Street Journal, Mills cited a University of Wyoming study estimating that California collects about $15 billion in tax revenues for every billion barrels of state oil production. If that’s accurate, Mills said, “then simply by opening up Monterey oil development—no incentives, grants or state funds required—tax receipts could total $250 billion over the coming two decades.”

Thus far, California hasn’t dived head-first into an embrace of fracking. Other states with large shale deposits—including Pennsylvania, Ohio and Louisiana—are moving full speed ahead with large-scale fracking operations. Environmental concerns about the potential for ground-water contamination from fracking have kept California and New York on the sidelines.

But the vast economic growth potential contained in their shale deposits may prove impossible to resist, and a change in attitude about tapping into them appears to be taking shape in California.

According to reports, a battle for mineral rights is now underway in the scenic vineyards of Hames Valley near Bradley, CA.

The federal Bureau of Land Management, which has subsurface mineral rights for much of the Monterey shale field, in December sold about 15 leases for thousands of acres of potential shale development in California. Last year, CA Gov. Jerry Brown fired the two state regulators who had overseen a 70 percent decline in state drilling permits since 2008, a notable turnaround for a state leader who in his first stint as governor in the 1970s pioneered many of California’s landmark environmental protection statutes.

And further advances in drilling technology itself soon may overcome the concerns about fracking, experts say. “Water-free hydrofracking” may be on its way. So perhaps there’s a high probability we may soon be hearing the same rallying cry out West that echoed across California in 1849: “There’s gold in them thar hills!”

SMUD: ENERGY INNOVATORS

With so many states trying to lure businesses to their cities, why have such pioneering companies as Intel, Siemens Mobility, Micron and SynapSense chosen to call Sacramento, California home?

Sacramento has a prime central location near the San Francisco Bay Area and key distribution channels via an international airport, deep-water channel seaport, and rail and interstate freeway systems. The region boasts one of California’s largest enterprise zones, offering incentives for companies to locate and expand within the greater Sacramento area. But perhaps most enticing is Sacramento’s commitment to becoming a green city; currently boasting the second largest number of buildings in the U.S. that are LEED-certified (Leadership in Energy and Environmental Design).

Since its inception in 1946, the community-owned Sacramento Municipal Utility District—known locally as SMUD—has had as its core values a commitment to innovation, conservation, creativity and service. SMUD leads the nation in its renewable energy policies and energy  efficiency programs. Its wind, hydro, solar and advanced R&D projects have contributed to SMUD’s standing as the first large California utility to receive 20 percent of its energy from renewable sources.

SMUD is a major force in helping Sacramento develop into a leading clean tech/green tech industry center. As the region’s trusted energy partner, it works closely with its customers to increase energy performance and decrease monthly expenses. SMUD’s collaboration with the private sector is evident in the groundbreaking programs it has developed to help Sacramento companies incorporate energy-efficiency measures throughout their organizations, from design and construction phases to retrofit.

One company that can attest to this collaborative spirit at SMUD is Micron, which acquired a local company, Numonyx, in 2010 and then launched its North American headquarters in Folsom, California, part of SMUD’s service territory. Since data centers can require up to 50 times more power than office space, SMUD’s team worked closely with Micron to optimize energy efficiency in its new 44,000 square- foot facility, resulting in a 15 percent energy consumption reduction and a $150,000 incentive. Micron’s investment payback is estimated at less than two years, with approximately $120,000 ongoing annual savings in electricity.

Aerojet, a major space and defense contractor also based in Folsom, has a corporate mandate for sustainability in all areas of its organization. Aerojet partnered with SMUD to install PV panels covering more than 40 acres of its property and generating 6.5 gigawatt hours of electricity a year. The solar panels are mounted on a north-south axis that rotates to track the sun for maximum generation. At the time, this solar installation was the largest single-site industrial project in California and one of the largest in the country.

Another company, Advanced Call Center Technologies, LLC (ACT), recently decided to locate a second local operation in Sacramento. At full build-out, this expansion may bring up to 2,000 direct new jobs to the region. ACT provides support services for companies in the financial services, communications, and technology industries. Sacramento was one of five cities the company considered, conducting a national search for its new location. Ultimately, ACT selected Sacramento because the availability of a qualified workforce and the benefits of locating in an Enterprise Zone.

Currently, SMUD is building the foundation for the “smart grid.”  Using new automation technologies, the smart grid system will detect problems and react to them immediately, increasing reliability. Power outages can be avoided, and customers will be empowered to see and manage their energy use in near-real time. For businesses, the smart grid will offer many programs, some automated, to improve their energy management and costs. It will provide them tools to customize their energy use, saving them unnecessary expense and maximizing electrical productivity.

SMUD is setting aggressive goals for renewable energy production, including 125 megawatts of customer-sited, net-metered solar power by 2016. These decisions are facilitating contract opportunities, attracting new industries and companies to the greater Sacramento area, and encouraging the expansion of existing companies. Through SMUD’s innovative partnerships and programs, companies have access to renewable energy and reliable electricity at competitive rates that are consistently lower than other California investor-owned and municipal utilities—all items that improve your business’s bottom line.

To learn more about economic development, rate savings and business incentive programs available to you, visit smud.org/econdev or call 1-877-768-3674.

BARSTOW: ONWARD AND UPWARD IN 2013

The City of Barstow believes there is much to be optimistic about in 2013. Signs of an economic turnaround can be found when looking at statistical data and when considering the projects that are underway in the community.

From a statistical perspective, one measure that illustrates how a community’s economic health is trending can be seen through tracking the area’s median income levels. In the 2000 census, the Barstow area had a median income level of $35,069. As of the 2010 census, the median income levels for the Barstow area had increased around 37% to $48,042. This data means that the quality of the jobs in the Barstow area is improving and points to a positive trend for the local economy.

In addition to the statistical data, the City has been working on several important economic development projects that have the potential to significantly improve the overall quality of life in Barstow.

Current significant projects that are underway in the community include the following:

Wal-Mart Supercenter Expansion. During the past several months, City staff has been working with representatives from Rothbart Development to coordinate the environmental and permitting approval process for the Super Wal-Mart project that is proposed to be constructed on a 28-acre site located at the southeast corner of East Main Street and Montara Road.

After several months of work, the Draft EIR for the Super Wal-Mart project is now complete and is currently being circulated for review. It is anticipated that the Draft EIR will be brought before the Planning Commission for certification in March 2013. Based on our current project schedule, it is anticipated that the project could break ground toward the end of 2013.

Barstow Casino & Resort Project. The Barstow Casino & Resort Project, which is being pursued as a partnership project between the Los Coyotes Band of Cahuilla & Cupeño Indians and Bar West Gaming, is still a viable initiative that is in the review process. In order for the initiative to move forward, both the Federal Government and the State of California will have to agree to allow the project to be constructed. Currently, the Federal Government’s Department of the Interior is evaluating the proposed Barstow Casino & Resort project and a public hearing on the environmental impact statement was held last July. If the Department of the Interior approves the project as meeting federal guidelines, the next step in the process would be negotiating a contract with the Office of California Governor Jerry Brown. That contract would also have to be approved by the California State Legislature. In an effort to give the Barstow Casino & Resort Project the best chance of gaining State approvals, the City is in the process of determining how to hire a State lobbying firm. If all the approvals are obtained, the overall casino project could be constructed in 2013 or 2014.

Barstow Community Hospital Project.During the past several years, the City has been coordinating with Community Health Systems, Inc., on building a brand new state-of-the-art medical facility in town. This past September, those efforts culminated with the opening of the new Barstow Community Hospital. The ultra-modern three-story, 82,500 square feet facility now features 30 private rooms, a high-tech emergency room, a modern intensive care center, a technologically advanced diagnostic imaging department, and innovative laboratories & surgical rooms. All told, building the updated facility required around 3,283 cubic yards of concrete, over 65 tons of concrete reinforced rebar, 476 tons of structural steel, and over 120,000 square feet of fireproofing material. The overall project constitutes an estimated investment of around $80 million in the Barstow community.

A$100-million water treatment plant and a $400-million hospital will be constructed on the site of Fort Irwin (pictured above during Army training).

Fort Irwin Projects. Fort Irwin and the United States Military have made a concerted effort to involve the local community in a variety of currently planned projects. While there are numerous improvements being coordinated by Fort Irwin, the two most significant initiatives include the construction of a $100–million water treatment plant and a $400–million hospital. These two projects, which will total an investment of over half a billion dollars in the greater Barstow area, are scheduled to break ground within the next year and are both scheduled for completion in 2015.

Barstow Industrial Park. Another significant initiative that the City is coordinating is the revival of the Barstow Industrial Park project. In total, the Barstow Industrial Park spans over 1,174 acres and is located around 3 miles northwest of Interstate 15 and around 5 miles west of the Interstate 15/Interstate 40 interchange. The City has been working with the project developer regarding future plans for the location. Discussions are currently underway regarding infrastructure concerns, utility coordination/installation issues, and the potential of obtaining rail-spur access for the site. The City will be working with the developer during this next year to coordinate and implement the solutions needed to ensure that the Barstow Industrial Park becomes the high desert’s premier logistics, manufacturing, and distribution hub.

Barstow is strategically situated midway between Los Angeles and Las Vegas. Barstow is a major transportation corridor that serves more than 60 million travelers and 19 million vehicles each year.

Barstow is where the Interstates 15 & 40 and Highways 58 & 247 all converge. Barstow is home to the Tanger Outlets and Barstow Outlets which provide shopping options that are usually only found in metropolitan areas. Barstow is where an eclectic mix of railroad, military, high technology, and mining employers have located.

Any individual who would like to learn more about all that Barstow has to offer is encouraged to visit the City’s website at www.barstowca.org or to contact Oliver Chi, Assistant City Manager, via email at ochi@barstowca.org or by telephone at (760) 577-4510.

QUITE SIMPLY, HESPERIA WORKS FOR BUSINESS

Strategically situated in California’s Inland Empire, the City of Hesperia offers easy access to the logistics network that serves the combined ports of Los Angeles and Long Beach (LA/LGB), the nation’s largest international cargo trade area. Hesperia’s high desert locale along I-15 and U.S. Highway 395 provides an affordable and central location outside the South Coast Air Quality Management District for warehousing, manufacturing, and distribution operations that serve Southern California and surrounding states.

Encompassing over 111 square miles, Hesperia’s sphere of influence extends to hundreds of prime industrial/commercially-zoned acres along the desirable north-south frontage of Interstate 15. While large parcels of land suitable for big box development are expensive and becoming scarce in areas such as the Los Angeles Basin and Inland Empire valleys, land in Hesperia is available at considerably lower costs than found elsewhere in southern California. Additionally, Hesperia has 1,032 acres zoned for commercial and industrial development.

With assistance that very few California cities can offer—tax incentives—it’s easy to see why Hesperia was named in the 2012 Kosmont-Rose Institute Cost of Doing Business Survey as one of the least expensive cities in California in which to do business. Substantial local incentives and state tax benefits of the Hesperia Enterprise Zone (EZ) are available and remain in effect until March 31, 2025, with certain benefits extending beyond the life of the zone. Some of these state tax benefits include hiring credits, sales/use credits, business expense deductions, net operating loss and net interest deductions, and employee wage credits.

Just how lucrative are the EZ hiring credits? An employee meeting the criteria for the EZ Hiring Tax Credit may make a business eligible for a hiring credit of up to $37,440 over a five-year period. Based on hiring 15 full-time employees, and a state income tax liability of $31,500, an industrial business could realize a five-year state income tax savings of $157,500. Since the City received designation almost three years ago, it has vouchered what could amount to five-year tax savings of upwards of $20.4 million for Hesperia’s businesses.

Hesperia also has a Recycling Market Development Zone (RMDZ) in its armory of business benefits. As one of 35 California RMDZs, Hesperia’s program combines economic development with recycling to provide financially attractive incentives for businesses, expansion of existing facilities, job creation, and reduction of the waste stream headed to landfills. The RMDZ provides free market research, technical assistance and below-market rate loans to qualified manufacturing firms.

Just over 200 acres of rail-accessible land are in the Zones; some 80+ acres are city-owned. Served by BNSF, the G Avenue Industrial Rail Track was completed on April 19, 2012 and consists of nearly one mile of new railroad track and a parallel runaround track. Looking to stimulate development and effect the relocation and expansion of new industries into the 1,300-acre ‘I’ Avenue Industrial area, business attraction efforts for rail users are a priority. In addition, a future Team Transload facility would foster entrepreneurship by making rail accessible to businesses throughout the region that would then be able to ship and receive goods with the use of this convenient rail service.

Quite simply, Hesperia works for business. This pro-development, customer service-oriented City is serious about bringing your business to Hesperia! To find out how Hesperia can work for your business, more about operating in one of the most innovative Enterprise Zones in the country, available rail properties, or to request information about how a Recycling Market Development Zone can benefit your manufacturing business, contact Steven Lantsberger at (760) 947-1906, by e-mail at econdev@cityofhesperia.us; or visit www.cityofhesperia.us/econdev.

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Mercedes-Benz Research & Development North America, Inc. Opens Expanded TechCenter. (PRNewsFoto/Mercedes-Benz Research & Development North America, Inc.)

Mercedes-Benz Research & Development North America, Inc. (MBRDNA) held the official grand opening of its modernized and expanded Long Beach, CA TechCenter. The expansion will enable the facility to support Daimler’s strong growth in the U.S. market while playing a key role in supporting the Mercedes-Benz zero-emissions alternative drivetrain program.

This marks the second expansion of the facility which began operation back in 1997.  The recent expansion provides the TechCenter with nearly 7,500 square feet of additional space allowing it to keep up with the growing demand for Mercedes-Benz vehicles which are achieving their highest volumes ever in the U.S. market.

Virtually every area of the expanded facility has been updated, including the workshop to provide increased flexibility and efficiencies in all testing. The highly versatile and experienced staff along with state-of-the-art testing equipment ensures that the TechCenter can provide unsurpassed testing quality for Daimler AG.

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Competition for market share of inbound shipping remains fierce among U.S. ports, especially as the east coast gears up for an expanded Panama Canal and trade flows continue to shift among developed and emerging countries, according to Jones Lang LaSalle’s fourth annual seaport report. As reported in the firm’s earlier studies, commercial real estate surrounding major U.S. seaports continues to outperform the broader industrial market.

The report, which analyzes the health of major domestic container seaports and their surrounding real estate, also reveals that exports are creating inland development opportunities and are driving new connections between domestic maritime ports, inland destinations and their surrounding distribution real estate markets.

According to the Jones Lang LaSalle report, investment is pouring into ports: At least $13 billion of public investment is earmarked for port development in the next decade. Limited options are available for large space users: only 20 blocks of space are available for users requiring 250,000 square feet within five miles of a major U.S. port.

“Developers, investment interests and supply chain executives remain optimistic about our nation’s seaports,” said John Carver, head of JLL’s Ports, Airports and Global Infrastructure (PAGI) group, “Influenced by an evolving maritime logistics industry, global and trade transformations such as the extension of the Panama Canal and growth of U.S. exports, they see a bright long-term future. Capital is being poured into seaport infrastructure from both the public and private sectors.”

CHICAGO EXEC ANCHORS WHEELING

The Village of Wheeling’s manufacturing base is anchored around its general aviation airport, Chicago Executive Airport, the third busiest in Chicagoland. The Village recently approved the third new corporate hangar project in as many years and is reviewing opportunities to create expanded land availability in response to increased demand.

Few communities can boast of a similar connection to the national and international world of business and commerce. Chicago Executive Airport serves as a hub for business and industry and as a logical magnet drawing businesses to the area.

Chicago Executive Airport has seen significant improvements recently, and many of those improvements are ongoing. For instance, in 2012 the airport completed a 780-foot extension of Taxiway Echo and Atlantic Aviation built a new hangar to service the needs of a new client, a client who recognizes the potential of Chicago Executive Airport.

That new hangar includes 26,000-square feet of hangar area and 7,800-square feet of office space. An attractive building, it is consistent with the style of Atlantic’s other facilities.

Atlantic Aviation

Atlantic Aviation also renewed its commitment to the airport with a $750,000 remodel of its terminal at CEA. Both stylish and functional, the remodel has improved traffic flow, includes a second cafeteria, larger restrooms and a more spacious pilot’s lounge. While aesthetically embracing the new century, the remodel also incorporates the latest in technology, including large-screen television monitors and wireless Internet access for personal and professional use. The monitors are connected to Apple TV providing games, movies, television programs and business presentation capabilities.

Another new hangar is on the planning board, and a third FBO will be coming to Chicago Executive. The new hangar and the new FBO bring additional partners to the airport. Hangar 18 is an 18,000-square-foot hangar that Signature Flight Support is building for “Tin Goose Garage,” a flight support company previously based at DuPage Airport.

The new facility will include 15,000-square feet of hangar space and 3,000-square feet of office complex on the north side of Tower Road. The plans call for a state-of-the-art building that will help to keep Chicago Executive Airport at the forefront of aviation for years to come. The company plans to construct an $8-million facility in the southeast area of the airport. It will include 30,000-square feet of hangar and a 10,000-square-foot terminal.

More development is on the way. In July 2012, Wheeling retained a land planning consultant to evaluate alternate development scenarios over the eastern portion of the airport district to outline aviation and commercial development options. Once complete, the new comprehensive plan will serve as a concise guide for the future growth of the airport district and the Village is actively recruiting aviation developers to assist in implementing new redevelopment projects.

PORT OF STOCKTON NETS $1.6 BILLION IN INVESTMENTS

The Port of Stockton is one of the most vibrant seaports in California, which has attracted more than $1.6 billion in private sector investments and creating more than 2,100 family-wage jobs for our community in just the last five years alone, while the local area is contending with nearly 20 percent unemployment. Additionally, another $1.7 billion in projects are currently under negotiation, which will bring an estimated 1,100 new jobs to Stockton.

Port of Stockton

Following the economic downturn of 2008, the number of ships calling the port has increased 45 percent. Tonnages crossing Stockton’s docks have increased by 63 percent. A decade of infrastructure investment exceeding $130 million has combined to bring these new economic opportunities to the greater Central Valley region.

The Port of Stockton recently became one of the rare West Coast ports that is a net exporter of American products, shipping iron ore from Utah, rice from Northern California, City of Stockton-processed sulfur, and coal from Colorado, putting more people to work on the docks and in the warehouses. It recently doubled the tonnages of chemical fertilizers imported to support the agricultural industry of the entire San Joaquin Valley and now imports more than 95 percent of the chemical fertilizers used in the valley.

The port generates more than $5 million in tax revenue every year with existing projects, which will nearly double in the short term as projects under construction and in negotiations are built. These funds are used to help pay for local government services for our community. The Port of Stockton does not tax its citizens to pay for port activities.

A new containers-on-barge service, called the M-580 Marine Highway, for shipping ocean containers between the ports of Stockton and Oakland is scheduled to start operations this year. This service can remove about 700 trucks from the highways with each barge movement, making a major contribution to improving the air quality, safety and road capacity for our region.

M-580 Project Scope

• Import containers arrive at the Port of Oakland and are trucked along the I-580/I-5 corridor to distribute centers in the Central Valley.
• “Import” containers return to the Port of Oakland empty, causing inefficient logistics. Marine Highway project will assist in “interchange” of empty imports to loaded exports at inland DCs.
• Current transportation inefficiencies create major issues with congestion, pollution and public safety.
• 1600 containers move via truck everyday between the Port of Oakland and the Central Valley.

The service contemplates three round trips per week, handling import and export traffic. The goal is to have nothing but revenue-bearing loads as opposed to empty containers for re-positioning. The approximate cost is estimated to be the same per container, which includes diesel fuel charges. One advantage by using the barge is that containers can be loaded heavier than the 80,000- pound weight limit for trucks traveling between Stockton and Oakland via the highway system. This could translate into a 20 percent savings in ocean freight to the cargo owners.

Please contact the Port of Stockton for more details: (209) 946-0246, or visit the Web site.

HENDRICKS COUNTY, IN: CENTRAL LOCATION, GLOBAL RESOURCES

Given that it’s a substantial distance from any coasts or borders, Hendricks County, Indiana might seem to be a surprising place for a Foreign Trade Zone (FTZ). However, its central location, transportation network, and labor resources have proven to be a tremendous benefit to companies that do business globally. At the same time, the county’s comfortably attractive way of life strengthens manager and employee satisfaction.

Hendricks County is adjacent to the Indianapolis International Airport’s extensive international air cargo resources, including a FedEx hub and dedicated Cargolux service to Europe. The UPS Louisville hub is just two hours south by Interstate highway. The county is home to Avon Yard, the center of CSX Railroad’s extensive Indiana network, with scheduled intermodal service connecting local companies to West Coast ports.

Combining that access to international transportation with the financial benefits of the FTZ has led many companies to give Hendricks County pivotal roles in their global operations. For example, wireless device supplier BrightPoint uses its Hendricks County FTZ facilities to package and program devices and accessories sourced from multiple countries, and then to distribute the ready-for-retail kits worldwide.

Domestic distribution is just as convenient. With fast connections to Interstates 65, 74, 70, 465 and 69, Hendricks County is less than a day’s drive from New York, Chicago, St. Louis, Dallas, Cincinnati, and Atlanta, providing overnight trucking access to more than half of the nation’s population. County officials have improved those connections with the development of the locally funded Ronald Reagan Parkway, which will ultimately link I-70, I-74, and I-65. The ability to move goods in and out of the county quickly has made it one of the nation’s most popular sites for logistics operations.

With a population of just under 150,000, Hendricks County is at the center of a large labor shed that incorporates the Indianapolis area and several smaller cities. Employers are able to tap into an abundance of highly skilled labor, including workers with expertise in technically demanding fields such as bioscience, medical devices, and motorsports. Hendricks County is home to VULTC, Vincennes University Logistics Training Center offering a certification in logistics and materials handling. Numerous colleges and universities are located within a two-hour radius, including the research facilities of Purdue University, Indiana University, and IUPUI.

That powerful combination of assets explains why the county has remained strong as the rest of the nation has struggled to recover from the recent recession. Over the past half-decade, companies have invested more than half a billion dollars into the local economy, leading to more than 7,800 new jobs, and squarely placing Hendricks County on Money Magazine’s list of the top 20 counties nationwide for job growth. In 2012 alone, companies poured $118 million into the county and created 1,710 jobs.

The county’s public- and private-sector leaders have taken an aggressive, two-pronged approach that focuses on both attracting new businesses and encouraging growth among existing employers. That strategy is powered by highly effective collaboration between business, government, education, and other sectors, allowing faster decision-making and innovative, practical solutions for business needs.

A prime example is the Hendricks College Network, a non-profit linking employers with Indiana’s wealth of educational and workforce development resources. The group leverages its connections with Indiana’s colleges and universities to develop specialized, highly sophisticated training programs for companies, and its success has been instrumental in attracting new local campuses of several universities.

To ensure that growth won’t compromise the way local residents live and play, private-sector leaders have joined forces with government officials and area non-profit organizations to create Hendricks County In Focus. This cooperative undertaking is developing ways to monitor the factors impacting local lifestyles, giving local leaders valuable guidance for decision-making—and making sure that Hendricks County continues to be a successful center for global companies.

TUPELO/LEE FTZ: 15M SQ. FT.

Foreign-trade zones help U.S. companies overcome competitive disadvantages stemming from U.S. trade laws and procedures. Within a Foreign-trade zone, companies are permitted to perform a number of procedures before the merchandise is charged duty. These procedures include sampling or inspecting merchandise (and destroying faulty merchandise without ever paying duty on it), storing and warehousing, re-labeling, repairing, displaying, assembling, These steps allow companies to benefit from interest on capital by delaying duty payment and permitting goods in the zone to be used as capital against loans. FTZs also drastically reduce the number and aggregate costs of entry fees.

As a member of the Greater Mississippi Foreign Trade Zone, Tupelo/Lee County couples these FTZ benefits with a long-standing history of community support for manufacturers.

With eight FTZ sites including over 5,881 acres of land, 2,780 developable acres, 15 million square feet of manufacturing space, 6.1 million square feet of warehouse/distribution space, and over a hundred companies already receiving the benefits of FTZ operation, Tupelo/Lee County provides not only the most beneficial import/export status, but also the leadership and cooperative spirit that have made us one of the foremost manufacturing locations for over a half century. If you have any questions please contact Shane Homan at (800) 523-3463 or shoman@cdfms.org.

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Photo: www.news10.net

Amazon has announced plans to open a new one-million-square-foot, state of the art fulfillment center in Tracy, CA. At the Tracy facility, hundreds of full time Amazon employees will engage with high-end technology while fulfilling customer orders.

“I am honored and pleased that Amazon recognizes our streamlined business development efforts, prime location and resources available to meet the demands of their fulfillment center,” said city of Tracy Mayor Brent H. Ives. “Amazon is a wonderful addition to our economic base and will provide hundreds of jobs for residents of Tracy.”

“This latest development in Tracy not only represents good jobs coming to the region but California’s strong partnership with Amazon,” said Kish Rajan, Director of the Governor’s Office of Business and Economic Development. “This third new distribution center marks a commitment by Amazon of over 1,000 California jobs in the last year alone.”

“We are grateful to be members of the California business community and to employ so many hardworking and skilled Californians,” said Mike Roth, vice president of Amazon’s North American operations. “We are excited to be growing in the state and to be creating hundreds of full-time positions in Tracy.”

“We are jubilant with the announcement that Amazon has chosen Tracy in San Joaquin County for the location of a major investment in a state of the art automated technology fulfillment center,” said Mike Ammann, CEO of San Joaquin Partnership.

Prologis, a leading owner, operator and developer of industrial real estate, is building the site.

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