Bay Area Albertsons DC Slated to Close
AUGUST 10, 2004 -- BOISE, Idaho - Albertsons' only Bay Area distribution center, a 439,703-square-foot facility in San Leandro, Calif., will shut down as the grocer seeks to consolidate operations.
"Albertsons is continuously looking for ways to improve our efficiency to ensure that we remain competitive in an increasingly competitive marketplace," Quyen Ha, spokeswoman for the company's San Leandro-based Northern California division, told Progressive Grocer. "Our distribution network in Northern California offers a tremendous opportunity for streamlining and cost reduction. After careful consideration, the company has decided to consolidate our three Northern California distribution centers into two.
"We will expand our Roseville DC and move work between the three centers until all operations have been reallocated between the Roseville and Vacaville facilities," Ha continued. "We will then close the San Leandro DC. We expect this transition to begin in the fall of 2004 and be completed in late 2005."
Albertsons said it plans to start expanding the warehouse from its current 440,000 square feet to 560,000 square feet in the autumn.
The 870,000-square-foot Vacaville center is the area's biggest. While the Roseville location is a full-line warehouse, containing dry goods, produce, deli foods, and meat, the Vacaville center holds only dry goods.
An estimated 400 people work at the San Leandro facility, while a total of 700 work at the Roseville and Vacaville centers.
Neil Stern, a partner in the Chicago retail strategy firm McMillan-Doolittle, said he sees Albertsons' strategy as a way to cut costs in a market where it remains solidly in second place, behind Safeway. This is a sensible move, according to Stern, given the present competitive milieu.
When asked to speculate on whether the industry is likely to experience further distribution center closures and/or consolidations, Stern told Progressive Grocer: "I think all companies, retailers and wholesalers, will continue to take a hard look at all of their cost issues, including distribution.
"Wal-Mart has significantly raised the bar from both a front-of-the-house and back-of-the-house standpoint. Their EDLP strategy is well understood, but it is really the lead they have in logistics, buying, and distribution that makes it possible -- labor plays a role, but not as large as everyone thinks. Retailers will have to drive more efficiency out of their operations to be successful in the future," said Stern.
-- Bridget Goldschmidt
Friday, August 27, 2004
Thursday, August 26, 2004
Touro University California has a new teacher preparation program
August 26, 2004
By Audrey Wong
VALLEJO -- Touro University California has a new teacher preparation program in which students can earn credentials for elementary or secondary schools.
The California Commission of Teacher Credentialing granted accreditation to Touro's College of Education Aug. 19. Classes will begin Sept. 13.
The college is for people who don't have any credentials but have bachelor's degrees. Individuals who are teaching on an emergency credential at local schools could use the college, which is located on Mare Island, said Steve Goldstone, dean of the College of Education.
The college offers multi-subject credentials for elementary schools. Students who want to work at high schools can work on single-subject credentials in a variety of disciplines such as math, history and English.
Unlike other schools, Touro will group its students together in "cohorts" so they stay together throughout their coursework and provide support for each other, Goldstone said.
Instead of classes that meet once or twice a week, students attend instructional blocks where they study a subject intensely for two weeks.
"Almost from the first day (students) are in a classroom," Goldstone said.
Students will start by observing how teachers work then progress to taking over an entire classroom as student teachers, he said.
Touro has campuses throughout the nation. The Vallejo college has 650 students and teaches mostly health care professions for those seeking graduate degrees.
Reach Audrey Wong at awong@dailyrepublic.net
By Audrey Wong
VALLEJO -- Touro University California has a new teacher preparation program in which students can earn credentials for elementary or secondary schools.
The California Commission of Teacher Credentialing granted accreditation to Touro's College of Education Aug. 19. Classes will begin Sept. 13.
The college is for people who don't have any credentials but have bachelor's degrees. Individuals who are teaching on an emergency credential at local schools could use the college, which is located on Mare Island, said Steve Goldstone, dean of the College of Education.
The college offers multi-subject credentials for elementary schools. Students who want to work at high schools can work on single-subject credentials in a variety of disciplines such as math, history and English.
Unlike other schools, Touro will group its students together in "cohorts" so they stay together throughout their coursework and provide support for each other, Goldstone said.
Instead of classes that meet once or twice a week, students attend instructional blocks where they study a subject intensely for two weeks.
"Almost from the first day (students) are in a classroom," Goldstone said.
Students will start by observing how teachers work then progress to taking over an entire classroom as student teachers, he said.
Touro has campuses throughout the nation. The Vallejo college has 650 students and teaches mostly health care professions for those seeking graduate degrees.
Reach Audrey Wong at awong@dailyrepublic.net
Wednesday, August 25, 2004
PG&E seeks business rate cuts to spur economic growth
Sacramento Business Journal - June 15, 2004
http://sacramento.bizjournals.com/sacramento/stories/2004/06/14/daily16.html
LATEST NEWS
June 15, 2004
PG&E seeks business rate cuts to spur economic growth
Pacific Gas and Electric Co. wants to help California lure and retain large commercial and industrial enterprises.
PG&E said it has asked the California Public Utilities Commission to OK enhancements to the utility's Economic Development Incentive Rate, which aims to attract and keep in state big businesses that have an opportunity to move outside California.
Participating customers inside PG&E's mammoth service area would receive a 25 percent cut on electricity bills in the first year. The reduction then would decline by 5 percentage points annually.
PG&E said its Experimental Economic Development Rate, in existence since 1990, is "much narrower in scope." It provides smaller incentives and is available only to lure certain kinds of large businesses to certain state-designated areas.
"The incentive will help all PG&E-served communities compete more effectively for business and help California restore its business climate," said Beverly Alexander, PG&E vice president of customer satisfaction.
Allan Zaremberg, president of the California Chamber of Commerce, said PG&E "is helping to keep California's economy on the road to recovery."
The PUC will review PG&E's proposal, and the utility said the new rate could be available within six months or a year.
© 2004 American City Business Journals Inc.
Web reprint information
All contents of this site © American City Business Journals Inc. All rights reserved.
http://sacramento.bizjournals.com/sacramento/stories/2004/06/14/daily16.html
LATEST NEWS
June 15, 2004
PG&E seeks business rate cuts to spur economic growth
Pacific Gas and Electric Co. wants to help California lure and retain large commercial and industrial enterprises.
PG&E said it has asked the California Public Utilities Commission to OK enhancements to the utility's Economic Development Incentive Rate, which aims to attract and keep in state big businesses that have an opportunity to move outside California.
Participating customers inside PG&E's mammoth service area would receive a 25 percent cut on electricity bills in the first year. The reduction then would decline by 5 percentage points annually.
PG&E said its Experimental Economic Development Rate, in existence since 1990, is "much narrower in scope." It provides smaller incentives and is available only to lure certain kinds of large businesses to certain state-designated areas.
"The incentive will help all PG&E-served communities compete more effectively for business and help California restore its business climate," said Beverly Alexander, PG&E vice president of customer satisfaction.
Allan Zaremberg, president of the California Chamber of Commerce, said PG&E "is helping to keep California's economy on the road to recovery."
The PUC will review PG&E's proposal, and the utility said the new rate could be available within six months or a year.
© 2004 American City Business Journals Inc.
Web reprint information
All contents of this site © American City Business Journals Inc. All rights reserved.
Tuesday, August 24, 2004
Westfield Corp. unveiled an elaborate plan to build space for three big box stores, a restaurant and more shops at its mall in Fairfield.
August 18, 2004
Westfield submits plans to expand mall
By Matthew Bunk
FAIRFIELD -- Solano County's largest mall could get bigger.
After months of expansion talk, mall owner Westfield Corp. unveiled an elaborate plan to build space for three big box stores, a restaurant and more shops at its mall in Fairfield.
A two-story addition would replace the parking lot and some shop space between Sears and Macy's, according to project drawings submitted to the city. The new stores would be connected to the main mall building.
Westfield Shoppingtown Solano, the only regional mall in the county, would have 10 percent more leasable area if the company sticks to the plan. It would grow to 1.14 million square feet of store space from 1.04 million square feet.
Westfield said it doesn't know yet what stores would fill the space. But the company is one of a growing number of mall operators trying to lure more one-stop discount stores that appeal to adult shoppers.
Having lost loyalty among shoppers who see malls as a teen hangout, more malls are now recruiting retailers like Home Depot and Bed, Bath and Beyond rather than traditional department stores. Westfield executives have indicated that they are taking similar steps as department store revenue has gone down in recent years.
The company first announced the expansion at a meeting with business leaders in July and recently made it official by submitting the first set of project drawings to the city. The review process could take a year or more, and Westfield doesn't expect to start construction until next summer.
Although plans call for the removal of 26,000 square feet of store space, it's not clear what, if any, existing stores might be affected by the project.
"If they are (affected), they'll be included in the expansion plan," Westfield spokeswoman Catharine Dickey said.
To make up for lost parking, Westfield is proposing to build a two-level parking deck between J.C. Penneys and Travis Boulevard. It could be connected to the main mall building by a walking bridge, according to plans.
If all goes quickly, it could be ready for shoppers by fall of 2006, Dickey said.
The three box stores would range in size up to 40,000 square feet, the restaurant would be 7,000 square feet and shops would fill 80,000 square-feet of added retail space.
Fairfield officials started talking to Westfield about expansion after the company bought the property from Trizec-Hahn in 1998, said Sean Quinn, city planning and development director. But Westfield wanted to fix up the existing mall building before expanding, Quinn said.
"Now they've done those things and are moving ahead," he said.
Quinn said the next steps will include an environmental review, but he said Westfield's time frame for completion seems possible.
"It's a reasonable time frame, but it will be determined by issues that will come up in the process," he said.
Reach Matthew Bunk at 425-4646 Ext. 267 or mbunk@dailyrepublic.net.
Westfield submits plans to expand mall
By Matthew Bunk
FAIRFIELD -- Solano County's largest mall could get bigger.
After months of expansion talk, mall owner Westfield Corp. unveiled an elaborate plan to build space for three big box stores, a restaurant and more shops at its mall in Fairfield.
A two-story addition would replace the parking lot and some shop space between Sears and Macy's, according to project drawings submitted to the city. The new stores would be connected to the main mall building.
Westfield Shoppingtown Solano, the only regional mall in the county, would have 10 percent more leasable area if the company sticks to the plan. It would grow to 1.14 million square feet of store space from 1.04 million square feet.
Westfield said it doesn't know yet what stores would fill the space. But the company is one of a growing number of mall operators trying to lure more one-stop discount stores that appeal to adult shoppers.
Having lost loyalty among shoppers who see malls as a teen hangout, more malls are now recruiting retailers like Home Depot and Bed, Bath and Beyond rather than traditional department stores. Westfield executives have indicated that they are taking similar steps as department store revenue has gone down in recent years.
The company first announced the expansion at a meeting with business leaders in July and recently made it official by submitting the first set of project drawings to the city. The review process could take a year or more, and Westfield doesn't expect to start construction until next summer.
Although plans call for the removal of 26,000 square feet of store space, it's not clear what, if any, existing stores might be affected by the project.
"If they are (affected), they'll be included in the expansion plan," Westfield spokeswoman Catharine Dickey said.
To make up for lost parking, Westfield is proposing to build a two-level parking deck between J.C. Penneys and Travis Boulevard. It could be connected to the main mall building by a walking bridge, according to plans.
If all goes quickly, it could be ready for shoppers by fall of 2006, Dickey said.
The three box stores would range in size up to 40,000 square feet, the restaurant would be 7,000 square feet and shops would fill 80,000 square-feet of added retail space.
Fairfield officials started talking to Westfield about expansion after the company bought the property from Trizec-Hahn in 1998, said Sean Quinn, city planning and development director. But Westfield wanted to fix up the existing mall building before expanding, Quinn said.
"Now they've done those things and are moving ahead," he said.
Quinn said the next steps will include an environmental review, but he said Westfield's time frame for completion seems possible.
"It's a reasonable time frame, but it will be determined by issues that will come up in the process," he said.
Reach Matthew Bunk at 425-4646 Ext. 267 or mbunk@dailyrepublic.net.
Friday, August 13, 2004
UC Davis News & Information ::
UC Davis News & Information ::: "UC Davis Rises in NSF Rankings
August 9, 2004
New figures from the National Science Foundation show that UC Davis continues to grow as a major research university. Total research and development expenditures for fiscal year 2002-03 show UC Davis now ranking 14th in the nation with $456,653,000, overtaking the Massachusetts Institute of Technology.
In specific subject areas, UC Davis ranked first in expenditures on agricultural research ($25,683,000); seventh in spending on biology research ($45,283,000); and 13th in life sciences, which includes medicine, biology and agricultural sciences ($336,796,000).
UC Davis spent $280,009,000 in 2002-03 from non-federal sources, which could include the state of California, other institutions, campus funds, private gifts and business sources, ranking third in the nation.
The report, Academic Research and Development Expenditures: Fiscal Year 2002 was prepared by the National Science Foundation Division of Science Resources Statistics and is available on the Web.
Additional information:
NSF Division of Science Resources Statistics
Media contact(s):
� Andy Fell, UC Davis News Service, (530) 752-4533, ahfell@ucdavis.edu"
August 9, 2004
New figures from the National Science Foundation show that UC Davis continues to grow as a major research university. Total research and development expenditures for fiscal year 2002-03 show UC Davis now ranking 14th in the nation with $456,653,000, overtaking the Massachusetts Institute of Technology.
In specific subject areas, UC Davis ranked first in expenditures on agricultural research ($25,683,000); seventh in spending on biology research ($45,283,000); and 13th in life sciences, which includes medicine, biology and agricultural sciences ($336,796,000).
UC Davis spent $280,009,000 in 2002-03 from non-federal sources, which could include the state of California, other institutions, campus funds, private gifts and business sources, ranking third in the nation.
The report, Academic Research and Development Expenditures: Fiscal Year 2002 was prepared by the National Science Foundation Division of Science Resources Statistics and is available on the Web.
Additional information:
NSF Division of Science Resources Statistics
Media contact(s):
� Andy Fell, UC Davis News Service, (530) 752-4533, ahfell@ucdavis.edu"
Tuesday, August 10, 2004
Genentech gets OK to make cancer drug in bulk in Vacaville
LATEST NEWS
10:04 AM PDT Tuesday, August 10, 2004
Genentech Inc. said Tuesday that the Food and Drug Administration approved the supplemental biologics license application for the manufacturing of Avastin (bevacizumab) bulk drug substance at the company's Vacaville plant.
The South San Francisco-based biotech giant said that Avastin was approved by the FDA in February to be used in combination with intravenous 5-Fluorouracil-based chemotherapy as a first-line treatment for metastatic colorectal cancer and is the first FDA-approved therapy designed to inhibit angiogenesis, the process by which new blood vessels develop, which is necessary to support tumor growth and metastasis.
"The FDA approval for Avastin bulk drug production at our Vacaville facility is an important step in ensuring that there is sufficient supply available for patients who need Avastin," said David Ebersman, senior vice president of product operations.
Avastin bulk drug substance will continue to be manufactured at the company's South San Francisco factory.
The current Vacaville site has a manufacturing capacity of 144,000 liters and was originally licensed by the FDA in April 2000. The facility is licensed to produce bulk drug substance for Avastin, Herceptin (Trastuzumab), Rituxan (Rituximab) and Xolair (Omalizumab).
© 2004 American City Business Journals Inc.
10:04 AM PDT Tuesday, August 10, 2004
Genentech Inc. said Tuesday that the Food and Drug Administration approved the supplemental biologics license application for the manufacturing of Avastin (bevacizumab) bulk drug substance at the company's Vacaville plant.
The South San Francisco-based biotech giant said that Avastin was approved by the FDA in February to be used in combination with intravenous 5-Fluorouracil-based chemotherapy as a first-line treatment for metastatic colorectal cancer and is the first FDA-approved therapy designed to inhibit angiogenesis, the process by which new blood vessels develop, which is necessary to support tumor growth and metastasis.
"The FDA approval for Avastin bulk drug production at our Vacaville facility is an important step in ensuring that there is sufficient supply available for patients who need Avastin," said David Ebersman, senior vice president of product operations.
Avastin bulk drug substance will continue to be manufactured at the company's South San Francisco factory.
The current Vacaville site has a manufacturing capacity of 144,000 liters and was originally licensed by the FDA in April 2000. The facility is licensed to produce bulk drug substance for Avastin, Herceptin (Trastuzumab), Rituxan (Rituximab) and Xolair (Omalizumab).
© 2004 American City Business Journals Inc.
Vacaville a top-100 place to live
Article Published: Tuesday, August 10, 2004
Vacaville a top-100 place to live
By Patricia Valenzuela/Staff Writer
Vacaville business leaders and City Council members are still riding high from a March designation naming Vacaville a top 100 city to live in nationally.
Relocate-America.com, based in Wisconsin, has, since 1998, ranked the top 100 cities to live in for consumers and realtors.
Gary Tatum, president of the Chamber of Commerce, has written e-mails to chamber members and has raised the subject at meetings. Tatum said the designation is a "good marketing tool" to woo business owners to Vacaville.
Mike Palombo, Vacaville's economic development manager, said the designation could be mentioned during presentations to potential business owners.
"What makes (Vacaville) attractive to businesses, is it's a good place to live," Palombo said.
The designation was given after Relocate-America.com staff researched nominated cities. Anyone can nominate a city by briefly providing a small description of the community. Relocate-America.com staff compare cities using criteria from four categories: education, crime, employment and housing.
Cities which meet the requirements are then ranked depending on the number of nominations and inquiries from the Web site, however, only the top 10 are publicly ranked. The remaining 90 cities are placed in an alphabetical list on the Web site.
City Manager David Van Kirk said the designation is due to residents, city staff, and the Council working together to ensure Vacaville is a special place to live.
Vacaville is also a safe place to live, they noted. Vacaville is ranked first among comparable Northern California cities for the lowest crime rate, the Web site said. When compared to comparable cities statewide, Vacaville drops slightly to fourth place.
Mayor Len Augustine said the four categories used to determine the top 100 cities, education, crime, employment and housing, are also four of the top priorities for the city.
"We have to continue to work on those things. It's a living document and we can't let our guard down. It's tough to stay in the top 100, but we have to make sure we live up to all of those things," he said.
The top 10 cities, as ranked by the Web site, are Venice, Fla., Paragould, Ark., Edmond, Okla., Bonita Springs, Fla., Asheville, N.C., Colorado Springs, Colo., Bartelsville, Okla., Carlsbad, N.M., Huntington Woods, Mich., and Madison, Wisc.
Patricia Valenzuela can be reached at vacaville@thereporter.com.
Vacaville a top-100 place to live
By Patricia Valenzuela/Staff Writer
Vacaville business leaders and City Council members are still riding high from a March designation naming Vacaville a top 100 city to live in nationally.
Relocate-America.com, based in Wisconsin, has, since 1998, ranked the top 100 cities to live in for consumers and realtors.
Gary Tatum, president of the Chamber of Commerce, has written e-mails to chamber members and has raised the subject at meetings. Tatum said the designation is a "good marketing tool" to woo business owners to Vacaville.
Mike Palombo, Vacaville's economic development manager, said the designation could be mentioned during presentations to potential business owners.
"What makes (Vacaville) attractive to businesses, is it's a good place to live," Palombo said.
The designation was given after Relocate-America.com staff researched nominated cities. Anyone can nominate a city by briefly providing a small description of the community. Relocate-America.com staff compare cities using criteria from four categories: education, crime, employment and housing.
Cities which meet the requirements are then ranked depending on the number of nominations and inquiries from the Web site, however, only the top 10 are publicly ranked. The remaining 90 cities are placed in an alphabetical list on the Web site.
City Manager David Van Kirk said the designation is due to residents, city staff, and the Council working together to ensure Vacaville is a special place to live.
Vacaville is also a safe place to live, they noted. Vacaville is ranked first among comparable Northern California cities for the lowest crime rate, the Web site said. When compared to comparable cities statewide, Vacaville drops slightly to fourth place.
Mayor Len Augustine said the four categories used to determine the top 100 cities, education, crime, employment and housing, are also four of the top priorities for the city.
"We have to continue to work on those things. It's a living document and we can't let our guard down. It's tough to stay in the top 100, but we have to make sure we live up to all of those things," he said.
The top 10 cities, as ranked by the Web site, are Venice, Fla., Paragould, Ark., Edmond, Okla., Bonita Springs, Fla., Asheville, N.C., Colorado Springs, Colo., Bartelsville, Okla., Carlsbad, N.M., Huntington Woods, Mich., and Madison, Wisc.
Patricia Valenzuela can be reached at vacaville@thereporter.com.
Survey gives SCC high graduation marks
August 10, 2004
Survey gives SCC high marks
By Audrey Wong
ROCKVILLE -- Solano Community College ranked second among 20 Bay Area community colleges in a survey measuring graduation rates conducted by an educational research and consulting firm.
SCC came in second to Napa Valley College, according to the rankings published by FirstDegree, an East Bay firm.
The firm studied the number of associate of arts degrees given, full-time equivalent student population and other factors from the 2002-03 school year.
Napa Valley College reported a graduation rate of 34 percent, surpassing SCC, which had a 31.1 percent graduation rate.
Colleges in the South Bay and the Peninsula didn't fare as well. Los Medanos, Foothill and Canada community colleges were at the bottom of the rankings, each posting a graduation rate below 10 percent. The Bay Area average graduation rate was 15.9 percent for the 2002-03 school year, according to FirstDegree.
SCC officials didn't know about the survey, said James Bracy, SCC vice president of students services. Educational firms often send out questionnaires to community colleges and this must have been one of them, Bracy said.
"It shows you there is good quality teaching and learning taking place," Bracy said.
FirstDegree promotes the value of associate degrees. The firm noticed students attending colleges in more rural areas did better than those who go to colleges in bigger cities, said Gene Judson, company president.
For information log onto www.firstdegree.biz
Audrey Wong can be reached at 427-6951 or awong@dailyrepublic.net.
Survey gives SCC high marks
By Audrey Wong
ROCKVILLE -- Solano Community College ranked second among 20 Bay Area community colleges in a survey measuring graduation rates conducted by an educational research and consulting firm.
SCC came in second to Napa Valley College, according to the rankings published by FirstDegree, an East Bay firm.
The firm studied the number of associate of arts degrees given, full-time equivalent student population and other factors from the 2002-03 school year.
Napa Valley College reported a graduation rate of 34 percent, surpassing SCC, which had a 31.1 percent graduation rate.
Colleges in the South Bay and the Peninsula didn't fare as well. Los Medanos, Foothill and Canada community colleges were at the bottom of the rankings, each posting a graduation rate below 10 percent. The Bay Area average graduation rate was 15.9 percent for the 2002-03 school year, according to FirstDegree.
SCC officials didn't know about the survey, said James Bracy, SCC vice president of students services. Educational firms often send out questionnaires to community colleges and this must have been one of them, Bracy said.
"It shows you there is good quality teaching and learning taking place," Bracy said.
FirstDegree promotes the value of associate degrees. The firm noticed students attending colleges in more rural areas did better than those who go to colleges in bigger cities, said Gene Judson, company president.
For information log onto www.firstdegree.biz
Audrey Wong can be reached at 427-6951 or awong@dailyrepublic.net.
Sunday, August 08, 2004
Westfield submits plans to expand mall
Wednesday, August 18, 2004
Solano County's largest mall plans to get bigger
August 18, 2004
Westfield submits plans to expand mall By Matthew Bunk
FAIRFIELD -- Solano County's largest mall could get bigger.
After months of expansion talk, mall owner Westfield Corp. unveiled an elaborate plan to build space for three big box stores, a restaurant and more shops at its mall in Fairfield.
A two-story addition would replace the parking lot and some shop space between Sears and Macy's, according to project drawings submitted to the city. The new stores would be connected to the main mall building.
Westfield Shoppingtown Solano, the only regional mall in the county, would have 10 percent more leasable area if the company sticks to the plan. It would grow to 1.14 million square feet of store space from 1.04 million square feet.
Westfield said it doesn't know yet what stores would fill the space. But the company is one of a growing number of mall operators trying to lure more one-stop discount stores that appeal to adult shoppers.
Having lost loyalty among shoppers who see malls as a teen hangout, more malls are now recruiting retailers like Home Depot and Bed, Bath and Beyond rather than traditional department stores. Westfield executives have indicated that they are taking similar steps as department store revenue has gone down in recent years.
The company first announced the expansion at a meeting with business leaders in July and recently made it official by submitting the first set of project drawings to the city. The review process could take a year or more, and Westfield doesn't expect to start construction until next summer.
Although plans call for the removal of 26,000 square feet of store space, it's not clear what, if any, existing stores might be affected by the project.
"If they are (affected), they'll be included in the expansion plan," Westfield spokeswoman Catharine Dickey said.
To make up for lost parking, Westfield is proposing to build a two-level parking deck between J.C. Penneys and Travis Boulevard. It could be connected to the main mall building by a walking bridge, according to plans.
If all goes quickly, it could be ready for shoppers by fall of 2006, Dickey said.
The three box stores would range in size up to 40,000 square feet, the restaurant would be 7,000 square feet and shops would fill 80,000 square-feet of added retail space.
Fairfield officials started talking to Westfield about expansion after the company bought the property from Trizec-Hahn in 1998, said Sean Quinn, city planning and development director. But Westfield wanted to fix up the existing mall building before expanding, Quinn said.
"Now they've done those things and are moving ahead," he said.
Quinn said the next steps will include an environmental review, but he said Westfield's time frame for completion seems possible.
"It's a reasonable time frame, but it will be determined by issues that will come up in the process," he said.
Reach Matthew Bunk at 425-4646 Ext. 267 or mbunk@dailyrepublic.net.
Solano County's largest mall plans to get bigger
August 18, 2004
Westfield submits plans to expand mall By Matthew Bunk
FAIRFIELD -- Solano County's largest mall could get bigger.
After months of expansion talk, mall owner Westfield Corp. unveiled an elaborate plan to build space for three big box stores, a restaurant and more shops at its mall in Fairfield.
A two-story addition would replace the parking lot and some shop space between Sears and Macy's, according to project drawings submitted to the city. The new stores would be connected to the main mall building.
Westfield Shoppingtown Solano, the only regional mall in the county, would have 10 percent more leasable area if the company sticks to the plan. It would grow to 1.14 million square feet of store space from 1.04 million square feet.
Westfield said it doesn't know yet what stores would fill the space. But the company is one of a growing number of mall operators trying to lure more one-stop discount stores that appeal to adult shoppers.
Having lost loyalty among shoppers who see malls as a teen hangout, more malls are now recruiting retailers like Home Depot and Bed, Bath and Beyond rather than traditional department stores. Westfield executives have indicated that they are taking similar steps as department store revenue has gone down in recent years.
The company first announced the expansion at a meeting with business leaders in July and recently made it official by submitting the first set of project drawings to the city. The review process could take a year or more, and Westfield doesn't expect to start construction until next summer.
Although plans call for the removal of 26,000 square feet of store space, it's not clear what, if any, existing stores might be affected by the project.
"If they are (affected), they'll be included in the expansion plan," Westfield spokeswoman Catharine Dickey said.
To make up for lost parking, Westfield is proposing to build a two-level parking deck between J.C. Penneys and Travis Boulevard. It could be connected to the main mall building by a walking bridge, according to plans.
If all goes quickly, it could be ready for shoppers by fall of 2006, Dickey said.
The three box stores would range in size up to 40,000 square feet, the restaurant would be 7,000 square feet and shops would fill 80,000 square-feet of added retail space.
Fairfield officials started talking to Westfield about expansion after the company bought the property from Trizec-Hahn in 1998, said Sean Quinn, city planning and development director. But Westfield wanted to fix up the existing mall building before expanding, Quinn said.
"Now they've done those things and are moving ahead," he said.
Quinn said the next steps will include an environmental review, but he said Westfield's time frame for completion seems possible.
"It's a reasonable time frame, but it will be determined by issues that will come up in the process," he said.
Reach Matthew Bunk at 425-4646 Ext. 267 or mbunk@dailyrepublic.net.
Friday, August 06, 2004
Bio-Rad Q2 Results
4:38 PM PDT Thursday
Bio-Rad Q2 results released
Bio-Rad Laboratories Inc. of Hercules (with operations in Benicia, CA) reported a second-quarter profit Thursday of 79 cents per share, down from 86 cents a share a year ago, on revenue of $260.5 million.
The maker of life sciences research products and diagnostics said net sales from continuing operations were up 8.9 percent compared with $239.3 million in the same quarter a year ago. On a currency-neutral basis, revenues grew 4.2 percent year-over-year. Bio-Rad attributed the increase to growth in the company's main business segments as well as currency effects.
One analyst who follows the firm had predicted revenue of $264 million and earnings of 80 cents a share, according to Thomson First Call.
For the quarter, income from continuing operations was $20.3 million compared with $21.9 million in the second quarter of last year.
Income from continuing operations for the six-month period was $42.9 million, or $1.67 per share, an 11.8 percent decrease compared with $48.6 million, or $1.92 per share, in the same quarter last year. Bio-Rad said the shortfall was largely due to anticipated spending on infrastructure improvements.
© 2004 American City Business Journals Inc.
Bio-Rad Q2 results released
Bio-Rad Laboratories Inc. of Hercules (with operations in Benicia, CA) reported a second-quarter profit Thursday of 79 cents per share, down from 86 cents a share a year ago, on revenue of $260.5 million.
The maker of life sciences research products and diagnostics said net sales from continuing operations were up 8.9 percent compared with $239.3 million in the same quarter a year ago. On a currency-neutral basis, revenues grew 4.2 percent year-over-year. Bio-Rad attributed the increase to growth in the company's main business segments as well as currency effects.
One analyst who follows the firm had predicted revenue of $264 million and earnings of 80 cents a share, according to Thomson First Call.
For the quarter, income from continuing operations was $20.3 million compared with $21.9 million in the second quarter of last year.
Income from continuing operations for the six-month period was $42.9 million, or $1.67 per share, an 11.8 percent decrease compared with $48.6 million, or $1.92 per share, in the same quarter last year. Bio-Rad said the shortfall was largely due to anticipated spending on infrastructure improvements.
© 2004 American City Business Journals Inc.
Wednesday, August 04, 2004
IRL IndyCar Series will Bring Open-Wheel Racing to the Sonoma Valley Aug. 28, 2005
Sports
Infineon Raceway to host Indy Racing Series
By Daily Republic wire services
SONOMA -- The Indy Racing League will break from its all-oval roots next year with its first road-course events since the open-wheel series started in 1996.
On Tuesday, the IRL released a 16-race schedule for 2005. Added were races on the road courses at the Infineon Raceway, on Aug. 28, and Watkins Glen, N.Y., on Sept. 25.
The IRL IndyCar Series will bring international open-wheel racing to the Sonoma Valley for the first time in 35 years.
"Even with all our facility improvements and the terrific range of events we host, there has remained one glaring hole on the Infineon Raceway schedule," Steve Page, president and general manager of Infineon Raceway, said Wednesday. "This track will be an incredible venue for the IRL series, and we look forward to offering Northern California fans the widest variety of motor racing available anywhere."
Page added that discussions have already begun with several companies who have expressed interest in sponsorship of the event, which will take place the late-summer weekend of Aug. 26-28. Additional support series will be announced later.
The addition of the road courses to the IRL schedule follows the move of several teams - including Team Penske, Chip Ganassi Racing and Andretti Green Racing - in recent years from road-course dominant CART, now known as the Champ Car World Series.
"The addition of road courses will bring even more variety and challenges to IndyCar series drivers and teams," said Brian Barnhart, the IRL's senior vice president. "We are working closely with the teams and manufacturers to bring the same excitement of our oval events to road racing."
The IRL will use a modified version of the road course that will feature The Chute, which is used in the NASCAR Nextel Cup Series, as well as modified sections at Turn 9 and Turn 11.
Infineon will finish a minor run-off and barrier enhancements to suit the IRL. The IRL main event will be contested over a 10-turn, 1.77-mile road course. That will be the debut for the new version of the raceway.
"Infineon Raceway's debut on the IRL coincides with the IRL's 10th anniversary, and we are excited to return Indy-style racing to the Northern California region as it meets one of the IRL's primary goals to bring the series to new markets and fans," said Ken Ungar, the IRL's senior vice president of business affairs. "Choosing Infineon Raceway was easy, as we discovered that fans in the region get our sport, follow our sport and support the series on television."
The last major open-wheel race at Infineon Raceway took place in 1970, when Dan Gurney won the USAC IndyCar 150. IRL race teams get their first official run at the road course during a test session later this year.
Fans can reserve tickets for the IRL 2005 event by calling Infineon Raceway at
800-870-RACE.
Infineon Raceway to host Indy Racing Series
By Daily Republic wire services
SONOMA -- The Indy Racing League will break from its all-oval roots next year with its first road-course events since the open-wheel series started in 1996.
On Tuesday, the IRL released a 16-race schedule for 2005. Added were races on the road courses at the Infineon Raceway, on Aug. 28, and Watkins Glen, N.Y., on Sept. 25.
The IRL IndyCar Series will bring international open-wheel racing to the Sonoma Valley for the first time in 35 years.
"Even with all our facility improvements and the terrific range of events we host, there has remained one glaring hole on the Infineon Raceway schedule," Steve Page, president and general manager of Infineon Raceway, said Wednesday. "This track will be an incredible venue for the IRL series, and we look forward to offering Northern California fans the widest variety of motor racing available anywhere."
Page added that discussions have already begun with several companies who have expressed interest in sponsorship of the event, which will take place the late-summer weekend of Aug. 26-28. Additional support series will be announced later.
The addition of the road courses to the IRL schedule follows the move of several teams - including Team Penske, Chip Ganassi Racing and Andretti Green Racing - in recent years from road-course dominant CART, now known as the Champ Car World Series.
"The addition of road courses will bring even more variety and challenges to IndyCar series drivers and teams," said Brian Barnhart, the IRL's senior vice president. "We are working closely with the teams and manufacturers to bring the same excitement of our oval events to road racing."
The IRL will use a modified version of the road course that will feature The Chute, which is used in the NASCAR Nextel Cup Series, as well as modified sections at Turn 9 and Turn 11.
Infineon will finish a minor run-off and barrier enhancements to suit the IRL. The IRL main event will be contested over a 10-turn, 1.77-mile road course. That will be the debut for the new version of the raceway.
"Infineon Raceway's debut on the IRL coincides with the IRL's 10th anniversary, and we are excited to return Indy-style racing to the Northern California region as it meets one of the IRL's primary goals to bring the series to new markets and fans," said Ken Ungar, the IRL's senior vice president of business affairs. "Choosing Infineon Raceway was easy, as we discovered that fans in the region get our sport, follow our sport and support the series on television."
The last major open-wheel race at Infineon Raceway took place in 1970, when Dan Gurney won the USAC IndyCar 150. IRL race teams get their first official run at the road course during a test session later this year.
Fans can reserve tickets for the IRL 2005 event by calling Infineon Raceway at
800-870-RACE.
Median Home Price in Solano County Far Behind a Statewide Increases
Home prices still sky high
By Matthew Bunk
FAIRFIELD -- California home prices soared to new highs and sales reached near-record levels in June, as the state outpaced robust Solano County in both categories.
The median home price in the county rose 17.1 percent compared to a year ago, a significant rate of growth that nonetheless settled far behind a statewide increase of 25.3 percent, the California Association of Realtors said in its monthly report.
According to the report, the median price of a home in California was $469,170 in June, compared to $374,540 a year ago. Local statistics showed increases in 97.9 percent of cities and communities across the state.
In Solano County, the median price was $350,000, up from $299,000 a year ago.
But higher prices in the most expensive U.S. residential real estate market didn't scare away buyers, as statewide sales of single-family homes went up 10.8 percent. The total number of statewide home sales in June rose to 633,670 from 572,130 in June 2003.
It came close but didn't beat the monthly home sales record of 645,720 set in August 2003.
Fluctuating interest rates that rose briefly from historical lows and then went back down slightly may have scared potential home buyers into action, one expert said.
"The real estate market in June experienced the confluence of what is traditionally the peak selling season and consumers' responses to a changing interest rate climate," association President Ann Pettijohn said in a statement. "As mortgage rates began to increase, consumers' expectations of even higher rates in the future pushed many off the fence and into the market."
Rising prices make it difficult for low- to medium-income families to qualify for a home loan, but lower rates have been an incentive for those who can afford to buy to do so.
Thirty-year fixed mortgage rates averaged 6.29 percent in June, up from 5.23 percent a year ago, according to Freddie Mac. But rates dropped a bit since then, and on Friday the Freddie Mac Web site posted an average of 6.08 percent.
Uncertainties in the economy, terror concerns and the upcoming presidential election have tied lenders up in knots as they try to adjust their rates to fit consumer confidence. Just like the rates have gone up and down, home buyer sentiment has "bounced all over the place," depending more than ever on worldwide events, Prudential California broker Penny Robben said.
"People are concerned about what's going on across the world right now," Robben said. "I'm not sure how much effect terrorism has on people buying and selling homes, but it's a tenuous time for some people because it goes back to the economy in general."
Robben, however, doesn't see any signs of drastic change in a blistering statewide residential market. Home prices in many regions have increased 40-50 percent since 2001 - in some high-demand places it's gone up much more than that - but Robben said that's not necessarily cause for alarm.
"I'm sure some consumers out there have all kinds of it's-too-good-to-be-true kind of feelings, like the ceiling could be about to come down," she said. "But we're very optimistic. We don't have any real fears at this point."
Eight communities saw home values go up more than 50 percent in the past 12 months. Top-gainer Colton, a Los Angeles community, experienced an average price hike of 78.6 percent, according to association statistics.
Price growth was more moderate in Solano County cities, with Dixon leading the way at 24.2 percent. Vallejo was next at 19.5 percent; Suisun City was 15.7 percent; Vacaville and Fairfield tied at 15.3 percent; Benicia was 11 percent; and Rio Vista was 7.8 percent.
In Fairfield, the average rose to $346,000 from $300,000 a year ago.
Vacaville's average hit $362,000 from $314,000.
Benicia had the highest average, $449,750, and Rio Vista had the lowest, $304,000.
Reach Matthew Bunk at 425-4646 Ext. 267 or mbunk@dailyrepublic.net.
By Matthew Bunk
FAIRFIELD -- California home prices soared to new highs and sales reached near-record levels in June, as the state outpaced robust Solano County in both categories.
The median home price in the county rose 17.1 percent compared to a year ago, a significant rate of growth that nonetheless settled far behind a statewide increase of 25.3 percent, the California Association of Realtors said in its monthly report.
According to the report, the median price of a home in California was $469,170 in June, compared to $374,540 a year ago. Local statistics showed increases in 97.9 percent of cities and communities across the state.
In Solano County, the median price was $350,000, up from $299,000 a year ago.
But higher prices in the most expensive U.S. residential real estate market didn't scare away buyers, as statewide sales of single-family homes went up 10.8 percent. The total number of statewide home sales in June rose to 633,670 from 572,130 in June 2003.
It came close but didn't beat the monthly home sales record of 645,720 set in August 2003.
Fluctuating interest rates that rose briefly from historical lows and then went back down slightly may have scared potential home buyers into action, one expert said.
"The real estate market in June experienced the confluence of what is traditionally the peak selling season and consumers' responses to a changing interest rate climate," association President Ann Pettijohn said in a statement. "As mortgage rates began to increase, consumers' expectations of even higher rates in the future pushed many off the fence and into the market."
Rising prices make it difficult for low- to medium-income families to qualify for a home loan, but lower rates have been an incentive for those who can afford to buy to do so.
Thirty-year fixed mortgage rates averaged 6.29 percent in June, up from 5.23 percent a year ago, according to Freddie Mac. But rates dropped a bit since then, and on Friday the Freddie Mac Web site posted an average of 6.08 percent.
Uncertainties in the economy, terror concerns and the upcoming presidential election have tied lenders up in knots as they try to adjust their rates to fit consumer confidence. Just like the rates have gone up and down, home buyer sentiment has "bounced all over the place," depending more than ever on worldwide events, Prudential California broker Penny Robben said.
"People are concerned about what's going on across the world right now," Robben said. "I'm not sure how much effect terrorism has on people buying and selling homes, but it's a tenuous time for some people because it goes back to the economy in general."
Robben, however, doesn't see any signs of drastic change in a blistering statewide residential market. Home prices in many regions have increased 40-50 percent since 2001 - in some high-demand places it's gone up much more than that - but Robben said that's not necessarily cause for alarm.
"I'm sure some consumers out there have all kinds of it's-too-good-to-be-true kind of feelings, like the ceiling could be about to come down," she said. "But we're very optimistic. We don't have any real fears at this point."
Eight communities saw home values go up more than 50 percent in the past 12 months. Top-gainer Colton, a Los Angeles community, experienced an average price hike of 78.6 percent, according to association statistics.
Price growth was more moderate in Solano County cities, with Dixon leading the way at 24.2 percent. Vallejo was next at 19.5 percent; Suisun City was 15.7 percent; Vacaville and Fairfield tied at 15.3 percent; Benicia was 11 percent; and Rio Vista was 7.8 percent.
In Fairfield, the average rose to $346,000 from $300,000 a year ago.
Vacaville's average hit $362,000 from $314,000.
Benicia had the highest average, $449,750, and Rio Vista had the lowest, $304,000.
Reach Matthew Bunk at 425-4646 Ext. 267 or mbunk@dailyrepublic.net.
Mills Corporation Unveiles Plans for Huge Retail & Entertainment Complex
Mills to present Vallejo fairground plans
By Warren Lutz
FAIRFIELD -- The public will get a glance at what a retail developer has planned for the Solano County Fairgrounds when the Board of Supervisors meets today.
Mills Corporation unveiled its ideas for turning the 150-acre property off Interestate 80 in Vallejo into a huge retail and entertainment complex.
Current plans call for eliminating the horse-racing track and golf course and building a sports complex, an arena and exhibit halls. Mills predicts the project could produce 2,500 permanent jobs and pour $525 million into the local economy.
Mills Corporation must submit a final plan by Oct. 15. The Solano County Fair Association and the Board of Supervisors have until Dec. 15 to approve or vote down the plans.
Mills Corporation was selected as the master developer of the fairgrounds last September. Last month, the company submitted four different ideas for the site. Construction could start in 2006 or 2007.
County supervisors are not expected to take any action on the plans.
Mills Corporation owns, leases, manages and markets 25 retail and entertainment complexes, including the Great Mall of the Bay Area in Milpitas, which it bought last year.
Solano County owns the 152-acre fairgrounds fronting Interstate 80 and the fair association operates the annual fair.
The Virginia-based large mall developer is planning community meetings to introduce its plan to the public, Solano County Fair Manager Joe Barkett said. Anyone who wishes to see the plans can contact the Solano County Fair Association at 551-2000.
Reach Warren Lutz at 427-6955 or at wlutz@dailyrepublic.net
At a glance:
Who: Solano County Board of Supervisors
What: Receive Mills Corporation's preliminary plans for redeveloping fairgrounds
When: 9 a.m. Tuesday
Where: Board of Supervisors chambers, 580 Texas St., Fairfield
Info: 421-6100
By Warren Lutz
FAIRFIELD -- The public will get a glance at what a retail developer has planned for the Solano County Fairgrounds when the Board of Supervisors meets today.
Mills Corporation unveiled its ideas for turning the 150-acre property off Interestate 80 in Vallejo into a huge retail and entertainment complex.
Current plans call for eliminating the horse-racing track and golf course and building a sports complex, an arena and exhibit halls. Mills predicts the project could produce 2,500 permanent jobs and pour $525 million into the local economy.
Mills Corporation must submit a final plan by Oct. 15. The Solano County Fair Association and the Board of Supervisors have until Dec. 15 to approve or vote down the plans.
Mills Corporation was selected as the master developer of the fairgrounds last September. Last month, the company submitted four different ideas for the site. Construction could start in 2006 or 2007.
County supervisors are not expected to take any action on the plans.
Mills Corporation owns, leases, manages and markets 25 retail and entertainment complexes, including the Great Mall of the Bay Area in Milpitas, which it bought last year.
Solano County owns the 152-acre fairgrounds fronting Interstate 80 and the fair association operates the annual fair.
The Virginia-based large mall developer is planning community meetings to introduce its plan to the public, Solano County Fair Manager Joe Barkett said. Anyone who wishes to see the plans can contact the Solano County Fair Association at 551-2000.
Reach Warren Lutz at 427-6955 or at wlutz@dailyrepublic.net
At a glance:
Who: Solano County Board of Supervisors
What: Receive Mills Corporation's preliminary plans for redeveloping fairgrounds
When: 9 a.m. Tuesday
Where: Board of Supervisors chambers, 580 Texas St., Fairfield
Info: 421-6100
Valero Corp. Earnings Jump Five-Fold
Business
Valero Corp. earnings jump five-fold
By Matthew Bunk
BENICIA -- Valero Energy Corp. made almost five times more money this quarter than it did a year ago, mostly because demand for gas and prices at the pump went up, company officials said.
San Antonio-based Valero reported a net income of $632.7 million, or $4.56 a share, compared to $128.4 million, or $1.08 a share, a year ago. The company said its Benicia refinery was one the top earners during the past three months.
Wall Street analysts had anticipated Valero would report higher earnings than last year, but the company beat the street's average estimate by 26 cents. Share prices rose $1.58, or 2.15 percent, to $75.12 Thursday on the New York Stock Exchange.
Revenue rose 56 percent to $13.81 billion from $8.84 million during the same period last year.
The company expects to outperform analysts' projections for the second half of the year because it doesn't see an end to the rising demand for gas or the limited inventory being produced at U.S. refineries, said Bill Greehey, Valero chief executive officer and chairman of the board. The company is the largest independent refiner in the U.S.
Continued strong margins should lead to third-quarter earnings of "well over" $3 a share, officials said. For 2004 the company expects to "substantially" exceed estimates of $9.38 a share by analysts surveyed by Thomson First Call.
"With respect to refined product fundamentals, gasoline demand year-to-date is up about 2 percent over last year despite higher pump prices this summer," Greehey said. "Looking toward the second half of the year, we expect gasoline margins to remain at high levels, particularly due to the fact that gasoline inventories are at relatively low levels as we enter the peak demand period of the summer."
Valero's refining business earned three times more than it did a year ago, $1.1 billion compared to $279 million. It was the first time the company's 15 refineries surpassed $1 billion in profit, in large part because of four sites, Greehey said.
"We were particularly pleased with the financial contribution of our Corpus Christi, Texas City, Quebec and Benicia refineries, which contributed over half of the total operating income," he said.
Reach Matthew Bunk at 425-4646 Ext. 267 or mbunk@dailyrepublic.net.
Valero Corp. earnings jump five-fold
By Matthew Bunk
BENICIA -- Valero Energy Corp. made almost five times more money this quarter than it did a year ago, mostly because demand for gas and prices at the pump went up, company officials said.
San Antonio-based Valero reported a net income of $632.7 million, or $4.56 a share, compared to $128.4 million, or $1.08 a share, a year ago. The company said its Benicia refinery was one the top earners during the past three months.
Wall Street analysts had anticipated Valero would report higher earnings than last year, but the company beat the street's average estimate by 26 cents. Share prices rose $1.58, or 2.15 percent, to $75.12 Thursday on the New York Stock Exchange.
Revenue rose 56 percent to $13.81 billion from $8.84 million during the same period last year.
The company expects to outperform analysts' projections for the second half of the year because it doesn't see an end to the rising demand for gas or the limited inventory being produced at U.S. refineries, said Bill Greehey, Valero chief executive officer and chairman of the board. The company is the largest independent refiner in the U.S.
Continued strong margins should lead to third-quarter earnings of "well over" $3 a share, officials said. For 2004 the company expects to "substantially" exceed estimates of $9.38 a share by analysts surveyed by Thomson First Call.
"With respect to refined product fundamentals, gasoline demand year-to-date is up about 2 percent over last year despite higher pump prices this summer," Greehey said. "Looking toward the second half of the year, we expect gasoline margins to remain at high levels, particularly due to the fact that gasoline inventories are at relatively low levels as we enter the peak demand period of the summer."
Valero's refining business earned three times more than it did a year ago, $1.1 billion compared to $279 million. It was the first time the company's 15 refineries surpassed $1 billion in profit, in large part because of four sites, Greehey said.
"We were particularly pleased with the financial contribution of our Corpus Christi, Texas City, Quebec and Benicia refineries, which contributed over half of the total operating income," he said.
Reach Matthew Bunk at 425-4646 Ext. 267 or mbunk@dailyrepublic.net.
Second-Quarter Profits for Ball Corp. Rose 23 percent
Business
Ball shows profit increase
By Matthew Bunk
FAIRFIELD -- Second-quarter profits for Ball Corp. rose 23 percent on growth in all three of its business divisions, company officials said Thursday.
The Colorado-based company also reported sales increases across all segments.
Ball makes plastic and metal packaging and has an aerospace and technologies division that manufactures imaging and communications equipment. It operates a metal packaging plant in Fairfield.
Ball's quarterly income jumped to $90.7 million, or $1.60 a share, from $74.3 million, or $1.30 a share, a year ago. It beat analysts estimates by 17 cents, according to Thomson First Call.
Sales rose 9 percent to $1.47 billion. North American packaging sales were up 4 percent to $945.4 million and international sales rose 10 percent to $353.5 million.
Revenue from the aerospace division jumped 35 percent to $170.3 million from new contracts secured earlier this year.
Ball stock rose $1.41, or 2 percent, to $72.41 Thursday on the New York Stock Exchange.
Six fewer accounting days in the second half of the year will make it difficult to compare to the first six months, Ball President, CEO and Chairman R. David Hoover said. But Ball is up to the challenge, he said.
"Still, barring the unforeseen, we currently believe that it is possible our second half results could exceed our first half results," Hoover said.
On Wednesday, Ball increased its dividend payout 33 percent and announced a 2-for-1 stock split. The split, the company's fourth since it was founded in 1972, will take effect Aug. 23. The 10-cent dividend will be paid Sept. 15.
Ball's board also authorized a buyback of 12 million shares of its common stock this year.
"We have generated significant free cash flow, which has enabled us to make strategic acquisitions, pay down debt, buy back our shares and increase the dividend we pay to our shareholders," Hoover said. "Splitting the stock is an acknowledgment of that performance."
Ball employs 12,600 people worldwide.
Reach Matthew Bunk at 425-4646 Ext. 267 or mbunk@dailyrepublic.net.
Ball shows profit increase
By Matthew Bunk
FAIRFIELD -- Second-quarter profits for Ball Corp. rose 23 percent on growth in all three of its business divisions, company officials said Thursday.
The Colorado-based company also reported sales increases across all segments.
Ball makes plastic and metal packaging and has an aerospace and technologies division that manufactures imaging and communications equipment. It operates a metal packaging plant in Fairfield.
Ball's quarterly income jumped to $90.7 million, or $1.60 a share, from $74.3 million, or $1.30 a share, a year ago. It beat analysts estimates by 17 cents, according to Thomson First Call.
Sales rose 9 percent to $1.47 billion. North American packaging sales were up 4 percent to $945.4 million and international sales rose 10 percent to $353.5 million.
Revenue from the aerospace division jumped 35 percent to $170.3 million from new contracts secured earlier this year.
Ball stock rose $1.41, or 2 percent, to $72.41 Thursday on the New York Stock Exchange.
Six fewer accounting days in the second half of the year will make it difficult to compare to the first six months, Ball President, CEO and Chairman R. David Hoover said. But Ball is up to the challenge, he said.
"Still, barring the unforeseen, we currently believe that it is possible our second half results could exceed our first half results," Hoover said.
On Wednesday, Ball increased its dividend payout 33 percent and announced a 2-for-1 stock split. The split, the company's fourth since it was founded in 1972, will take effect Aug. 23. The 10-cent dividend will be paid Sept. 15.
Ball's board also authorized a buyback of 12 million shares of its common stock this year.
"We have generated significant free cash flow, which has enabled us to make strategic acquisitions, pay down debt, buy back our shares and increase the dividend we pay to our shareholders," Hoover said. "Splitting the stock is an acknowledgment of that performance."
Ball employs 12,600 people worldwide.
Reach Matthew Bunk at 425-4646 Ext. 267 or mbunk@dailyrepublic.net.
Monday, August 02, 2004
Genentech flying high - Trailblazing company's rich drug pipeline continues to flow
Article Published: Sunday, August 01, 2004
An aerial view of the Vacaville Genentech facility. The plant plans a major expansion that will make it the largest biotechnology facility in the world. (Brad Zweerink/The Reporter)
Genentech flying high
Trailblazing company's rich drug pipeline continues to flow
By Tim Simmers
San Mateo County Times
When Jane Lee visited her doctor six years ago for a routine checkup, the former model was stunned to find out she had a small lump in her left breast.
The news took her breath away, and she saw her life flash before her. The doctor didn't give her much hope.
But Lee, 68, started taking a then-new breast cancer drug called Herceptin, developed by biotechnology pioneer Genentech. It saved her life, and she's seen five grandchildren born since the terrifying diagnosis.
"I've been given a wonderful six years because of that drug," said Lee, a Piedmont resident whose cancer went into remission since taking Herceptin. "I've been blessed."
South San Francisco-based Genentech hit a home run with Herceptin, which it now produces at its Vacaville facility. But that's only one of many drugs in the pipeline. The trailblazing company has a strong oncology franchise. Cancer drugs such as Herceptin and the non-Hodgkin's lymphoma treatment Rituxan are breakthrough medicines that have propelled sales and saved patients' lives in recent years.
Founded 28 years ago, Genentech has 12 products on the market, unparalleled among firms in the industry. Its rich pipeline of new and future treatments is flowing, and its stock has tripled since the beginning of last year. The company's product sales hit $2.6 billion last year, with profits of $600 million.
This year, the biotech giant has continued its hot streak, scoring with the approval of its colon-cancer drug Avastin, which works by cutting off the cancer tumor's blood supply. Avastin sales helped push the company over a financial milestone for the second quarter, when it topped $1 billion in quarterly sales for the first time ever.
"The whole driver for Genentech is targeting unmet medical needs," said Thomas Thomas, the company treasurer. "We're trying to continually generate innovative products for patients who have no medicines. It's important for us to maintain their lives with a higher quality."
That's what happened for Grace Vanhoose, a 56-year-old Seattle secretary diagnosed with colon cancer a few years ago. She was lucky to qualify for a clinical trial of Avastin before it was approved in the United States, partly because she was in danger of dying.
"Avastin was the miracle I needed, and it saved my life," said Vanhoose, who has seen two of her children married during her recovery and is waiting for her fourth grandchild to be born soon.
"I met some scientists at Genentech, and I'm in awe of their work, and how much they care," said Vanhoose, her voice cracked as she remembered other cancer patients she knew who didn't get Avastin and died.
The drug treatments are expensive. Avastin costs $4,400 a month for patients, who get two infusions a month. Herceptin costs $21,400 for a 30-week course of treatment, which includes one infusion a week.
Genentech's work on treating sick and dying patients started 28 years ago, when Bay Area scientist Herbert W. Boyer and venture capitalist Robert Swanson were drinking beer in an Irish bar in San Francisco. They raised some venture capital investment and decided to start the world's first biotechnology company in 1976, with a vision to revolutionize medicine.
They didn't know they were giving birth to an industry legend, but they planted the seed for the entire biotechnology industry, which now produces medicines for cancer, AIDS, diabetes and other life-threatening diseases.
Last year, Avastin showed prolonged survival in colon-cancer patients when combined with traditional chemotherapy, and the news stunned investors.
"Wall Street was blindsided," said Adam Walsh, analyst with Jefferies & Co. "That's because some analysts had written off Avastin after an earlier clinical disappointment."
The company's stock shot up from $30 a share in June 2003 on the Avastin news, and rose quickly to $80 per share. It even topped $120 per share when Avastin was approved in February. It has since split and come back to earth some, and is now at about $52 per share.
The industry is notoriously volatile, with stocks going up and down like a yo-yo because it takes about five years and a hundred million dollars to develop a drug and get it on the market. And it could easily fail after all that time and money. But Genentech keeps delivering. And many other biotechnology firms ride its coattails as the company's stock rises. It had a big run into June, climbing to a peak of $68.25 per share, but has slipped over concerns that competitors could grab some of Avastin's market as well as a setback on another cancer drug.
But such ups and downs are part of the business, analysts say.
"It's remarkable," said Walsh. "They've done a great job of feeding drugs into the pipeline."
Management is smart enough to cut the cord on some products that don't appear to be potentially successful, and invest in the good ones, Walsh said.
In 1997, Genentech Chief Executive Art Levinson, a scientist who worked his way up through the research department, established what he called the five-by-five plan. It set the bar high for the company, with goals like getting five new drugs in late-stage trials by 2005, boosting annual revenue and profits by 25 percent each year, and generating $500 million in alliances and collaborations with other companies.
The approval in June 2003 of Xolair, an asthma drug that helps people get off steroids, was part of the fruits of that plan. So was the November approval of Raptiva, for psoriasis, and the February approval of Avastin, a drug analysts project will sell more than $2 billion a year. A fourth drug, Tarceva, for pancreatic cancer, is expected to be approved next year.
Genentech isn't the biggest company in the industry, but it's No. 2. Rival Amgen of Thousand Oaks, which generates 2.5 times the revenue of Genentech, is on top.
But Genentech is an innovator. Its leadership has helped spawn many new local biotechnology firms from Genentech alumni, helping fuel the Bay Area's long run as the nation's biotechnology hub.
Genentech's birth helped foster some 60 public companies in the Bay Area, and 85,000 jobs.
And it's not only the company's drug pipeline that's growing. So is its Peninsula workforce and its local and outlying campuses.
Genentech added 1,402 new jobs last year, and 683 in 2002. This year it expects to add 1,600 new jobs.
The biotechnology powerhouse is expanding its South San Francisco campus along the Bay, where it employs 4,780 people. In April, it opened a five-story, 125,000-square-foot administrative building and is building another administrative building to match.
It broke ground last spring on three new buildings at its existing manufacturing site in Vacaville. Even Gov. Arnold Schwarzenegger came with a shovel, showing support for California business expansion. By the time the three new buildings are completed around 2009, the Vacaville plant will be the world's largest biotechnology manufacturing facility.
Herceptin, Rituxan, which generated $1.5 billion in sales last year, and Xolair are currently made at the Vacaville plant.
Many of the company's key cancer drugs, including Herceptin, Rituxan and Avastin, also are made at the South San Francisco plant.
Genentech drug sales have been strong. Sometimes the company is helped with overseas sales by its majority Swiss owner Roche Holding, or other firms it has marketing partnerships with.
The company is expected to generate sales of $3.5 billion this year and $4.6 billion in 2005, according to Jason Kantor, analyst with WR Hambrecht & Co. in San Francisco.
"This is a company that's growing fast because it sells lots of drugs," Kantor said. "They have innovative, new drugs based on good science that target unmet medical needs."
Key to Genentech's success is high spending on research and development, Kantor noted. The company will pour more than a quarter of its annual revenue into R&D this year. That's up nearly $140 million from last year to $860 million.
Success isn't easy, though.
"The bigger you get, the more pressure there is to sell more drugs," said Kantor.
One strategy that helps is Genentech's focus on finding "targeted therapies."
Six years ago, it launched Herceptin. The breast-cancer drug that is prescribed to only one-fifth of breast-cancer patients. It's for patients whose tumors have a certain genetic mutation. The drug sold $425 million last year and is expected to climb over $450 million this year. That's not a $1 billion blockbuster, but it's the type of solid business that drives the company, said Genentech's Thomas.
"Some patients won't make blockbuster sales," Thomas said. "But we know specific numbers of patients will take our drugs, and it's a great way to target disease types."
Look at Genentech under a microscope, and you might see the smarter, leaner drug company of the future, Kantor said. The company recorded a 29 percent boost in profits in the second quarter, led by its new cancer fighter Avastin.
No doubt, terrific sales and market-leading medicines keep Genentech humming, but there's always plenty of uncertainty in the drug business. Drug development is extremely risky and expensive.
Keeping the new products coming is never easy and there are usually setbacks, as happened with Avastin. But Genentech manages the ups and downs as well as anybody, analysts say.
It has many young patents and former scientist Levinson leading the firm. He keeps the company on the track of developing and marketing drugs. Levinson's latest plan is called Horizon 2010. The theme is that Genentech aims to become the leading oncology company in the United States by then, and the strategy includes bringing five new cancer products on the market by 2010 and achieving earnings per share growth of 20 percent per year.
"We're setting our sites high," Thomas said.
There will always competitors on the rise, peaks and valleys, and lots of unknowns. Some drugs won't sell as well as expected. And Wall Street is fickle.
One stumble and the stock could be pushed down. But Genentech has reached legendary status, and appears to be on a roll.
Whatever happens, there are patients out there who are cheering the company on. Being able to watch eight grandchildren grow up before your eyes after being given six months to live has made breast-cancer survivor Jane Lee a believer - one who is very thankful her life was extended so she could be with her family.
"Every time I drive by that company down by Grand Avenue, I give the thumbs up sign," she said.
An aerial view of the Vacaville Genentech facility. The plant plans a major expansion that will make it the largest biotechnology facility in the world. (Brad Zweerink/The Reporter)
Genentech flying high
Trailblazing company's rich drug pipeline continues to flow
By Tim Simmers
San Mateo County Times
When Jane Lee visited her doctor six years ago for a routine checkup, the former model was stunned to find out she had a small lump in her left breast.
The news took her breath away, and she saw her life flash before her. The doctor didn't give her much hope.
But Lee, 68, started taking a then-new breast cancer drug called Herceptin, developed by biotechnology pioneer Genentech. It saved her life, and she's seen five grandchildren born since the terrifying diagnosis.
"I've been given a wonderful six years because of that drug," said Lee, a Piedmont resident whose cancer went into remission since taking Herceptin. "I've been blessed."
South San Francisco-based Genentech hit a home run with Herceptin, which it now produces at its Vacaville facility. But that's only one of many drugs in the pipeline. The trailblazing company has a strong oncology franchise. Cancer drugs such as Herceptin and the non-Hodgkin's lymphoma treatment Rituxan are breakthrough medicines that have propelled sales and saved patients' lives in recent years.
Founded 28 years ago, Genentech has 12 products on the market, unparalleled among firms in the industry. Its rich pipeline of new and future treatments is flowing, and its stock has tripled since the beginning of last year. The company's product sales hit $2.6 billion last year, with profits of $600 million.
This year, the biotech giant has continued its hot streak, scoring with the approval of its colon-cancer drug Avastin, which works by cutting off the cancer tumor's blood supply. Avastin sales helped push the company over a financial milestone for the second quarter, when it topped $1 billion in quarterly sales for the first time ever.
"The whole driver for Genentech is targeting unmet medical needs," said Thomas Thomas, the company treasurer. "We're trying to continually generate innovative products for patients who have no medicines. It's important for us to maintain their lives with a higher quality."
That's what happened for Grace Vanhoose, a 56-year-old Seattle secretary diagnosed with colon cancer a few years ago. She was lucky to qualify for a clinical trial of Avastin before it was approved in the United States, partly because she was in danger of dying.
"Avastin was the miracle I needed, and it saved my life," said Vanhoose, who has seen two of her children married during her recovery and is waiting for her fourth grandchild to be born soon.
"I met some scientists at Genentech, and I'm in awe of their work, and how much they care," said Vanhoose, her voice cracked as she remembered other cancer patients she knew who didn't get Avastin and died.
The drug treatments are expensive. Avastin costs $4,400 a month for patients, who get two infusions a month. Herceptin costs $21,400 for a 30-week course of treatment, which includes one infusion a week.
Genentech's work on treating sick and dying patients started 28 years ago, when Bay Area scientist Herbert W. Boyer and venture capitalist Robert Swanson were drinking beer in an Irish bar in San Francisco. They raised some venture capital investment and decided to start the world's first biotechnology company in 1976, with a vision to revolutionize medicine.
They didn't know they were giving birth to an industry legend, but they planted the seed for the entire biotechnology industry, which now produces medicines for cancer, AIDS, diabetes and other life-threatening diseases.
Last year, Avastin showed prolonged survival in colon-cancer patients when combined with traditional chemotherapy, and the news stunned investors.
"Wall Street was blindsided," said Adam Walsh, analyst with Jefferies & Co. "That's because some analysts had written off Avastin after an earlier clinical disappointment."
The company's stock shot up from $30 a share in June 2003 on the Avastin news, and rose quickly to $80 per share. It even topped $120 per share when Avastin was approved in February. It has since split and come back to earth some, and is now at about $52 per share.
The industry is notoriously volatile, with stocks going up and down like a yo-yo because it takes about five years and a hundred million dollars to develop a drug and get it on the market. And it could easily fail after all that time and money. But Genentech keeps delivering. And many other biotechnology firms ride its coattails as the company's stock rises. It had a big run into June, climbing to a peak of $68.25 per share, but has slipped over concerns that competitors could grab some of Avastin's market as well as a setback on another cancer drug.
But such ups and downs are part of the business, analysts say.
"It's remarkable," said Walsh. "They've done a great job of feeding drugs into the pipeline."
Management is smart enough to cut the cord on some products that don't appear to be potentially successful, and invest in the good ones, Walsh said.
In 1997, Genentech Chief Executive Art Levinson, a scientist who worked his way up through the research department, established what he called the five-by-five plan. It set the bar high for the company, with goals like getting five new drugs in late-stage trials by 2005, boosting annual revenue and profits by 25 percent each year, and generating $500 million in alliances and collaborations with other companies.
The approval in June 2003 of Xolair, an asthma drug that helps people get off steroids, was part of the fruits of that plan. So was the November approval of Raptiva, for psoriasis, and the February approval of Avastin, a drug analysts project will sell more than $2 billion a year. A fourth drug, Tarceva, for pancreatic cancer, is expected to be approved next year.
Genentech isn't the biggest company in the industry, but it's No. 2. Rival Amgen of Thousand Oaks, which generates 2.5 times the revenue of Genentech, is on top.
But Genentech is an innovator. Its leadership has helped spawn many new local biotechnology firms from Genentech alumni, helping fuel the Bay Area's long run as the nation's biotechnology hub.
Genentech's birth helped foster some 60 public companies in the Bay Area, and 85,000 jobs.
And it's not only the company's drug pipeline that's growing. So is its Peninsula workforce and its local and outlying campuses.
Genentech added 1,402 new jobs last year, and 683 in 2002. This year it expects to add 1,600 new jobs.
The biotechnology powerhouse is expanding its South San Francisco campus along the Bay, where it employs 4,780 people. In April, it opened a five-story, 125,000-square-foot administrative building and is building another administrative building to match.
It broke ground last spring on three new buildings at its existing manufacturing site in Vacaville. Even Gov. Arnold Schwarzenegger came with a shovel, showing support for California business expansion. By the time the three new buildings are completed around 2009, the Vacaville plant will be the world's largest biotechnology manufacturing facility.
Herceptin, Rituxan, which generated $1.5 billion in sales last year, and Xolair are currently made at the Vacaville plant.
Many of the company's key cancer drugs, including Herceptin, Rituxan and Avastin, also are made at the South San Francisco plant.
Genentech drug sales have been strong. Sometimes the company is helped with overseas sales by its majority Swiss owner Roche Holding, or other firms it has marketing partnerships with.
The company is expected to generate sales of $3.5 billion this year and $4.6 billion in 2005, according to Jason Kantor, analyst with WR Hambrecht & Co. in San Francisco.
"This is a company that's growing fast because it sells lots of drugs," Kantor said. "They have innovative, new drugs based on good science that target unmet medical needs."
Key to Genentech's success is high spending on research and development, Kantor noted. The company will pour more than a quarter of its annual revenue into R&D this year. That's up nearly $140 million from last year to $860 million.
Success isn't easy, though.
"The bigger you get, the more pressure there is to sell more drugs," said Kantor.
One strategy that helps is Genentech's focus on finding "targeted therapies."
Six years ago, it launched Herceptin. The breast-cancer drug that is prescribed to only one-fifth of breast-cancer patients. It's for patients whose tumors have a certain genetic mutation. The drug sold $425 million last year and is expected to climb over $450 million this year. That's not a $1 billion blockbuster, but it's the type of solid business that drives the company, said Genentech's Thomas.
"Some patients won't make blockbuster sales," Thomas said. "But we know specific numbers of patients will take our drugs, and it's a great way to target disease types."
Look at Genentech under a microscope, and you might see the smarter, leaner drug company of the future, Kantor said. The company recorded a 29 percent boost in profits in the second quarter, led by its new cancer fighter Avastin.
No doubt, terrific sales and market-leading medicines keep Genentech humming, but there's always plenty of uncertainty in the drug business. Drug development is extremely risky and expensive.
Keeping the new products coming is never easy and there are usually setbacks, as happened with Avastin. But Genentech manages the ups and downs as well as anybody, analysts say.
It has many young patents and former scientist Levinson leading the firm. He keeps the company on the track of developing and marketing drugs. Levinson's latest plan is called Horizon 2010. The theme is that Genentech aims to become the leading oncology company in the United States by then, and the strategy includes bringing five new cancer products on the market by 2010 and achieving earnings per share growth of 20 percent per year.
"We're setting our sites high," Thomas said.
There will always competitors on the rise, peaks and valleys, and lots of unknowns. Some drugs won't sell as well as expected. And Wall Street is fickle.
One stumble and the stock could be pushed down. But Genentech has reached legendary status, and appears to be on a roll.
Whatever happens, there are patients out there who are cheering the company on. Being able to watch eight grandchildren grow up before your eyes after being given six months to live has made breast-cancer survivor Jane Lee a believer - one who is very thankful her life was extended so she could be with her family.
"Every time I drive by that company down by Grand Avenue, I give the thumbs up sign," she said.
Thursday, July 29, 2004
Solano remains most affordable of nine Bay Area counties
Article Published: Saturday, July 24, 2004
Record sales prices
Solano remains most affordable of nine Bay Area counties
By Barbara Smith/Business Writer
Real estate sales sizzled in Solano County in May and June, as they did in all Bay Area counties.
The median price paid for a home in the Bay Area for June hit a record $516,000-plus, according to DataQuick Information Services. Buyers also committed to an average monthly mortgage payment of $2,450.
But Solano County remains the most affordable in the nine-county area, where the median price for a home peaked at $358,000 in June - an 18.5 percent increase from the $302,000 median in June of last year.
Early July indicators show sales are cooling off somewhat, said Elizabeth Fry, Vacaville broker and owner of Showcase Properties. But that's because the real estate market tends to be cyclical, she said.
"The market took off after the first of the year, we had an upsurge, and around the first of June it seemed to continue on, but it's leveled off," said Fry, a 23-veteran in the industry.
But the demand in the upper-end market remains strong, and that's encouraging, Fry said.
"The public has become aware of this area as being a really nice place to live," Fry said. "We have a lot of people calling from Napa who want to move into this area because it's gone up a notch in prestige. Before, they used to snub their noses."
DataQuick reported in early spring that $1 million home sales in California jumped to record levels, with sales in nearby Ross in Marin County reporting virtually all home sales in the $1 million category.
DataQuick is a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. It monitors real estate activity nationwide through county recorders' records.
In Solano County, high end housing that hasn't been available in the past is now, and the clients are demanding those luxury homes, Fry said.
"If it's over a million, it's a tighter market, but they're still selling. There are a pool of buyers that can afford up to $1 million," Fry said. "I have several homes listed right now over a million dollars, and we've sold three of them within the last three months."
While sales of lower-priced homes are leveling off, that's not unusual following the buying frenzy of early spring.
"Anytime you get a rapid increase in prices, it decreases the affordability level and it hits a certain point where people tend to back off and kind of wait and see," Fry said.
When people watching the market see the prices skyrocketing, they sometimes put their houses on the market for higher prices.
"There's a lot of overpriced listings offered, but the ones that are priced at the current market value are selling quickly, that's the key," she said.
And it's hard to find a reduced-price home in today's market, unless the seller is motivated.
"When it reaches a price point people are not just jumping into, when they're hesitant, then the sellers are forced to adjust their prices to the level they will sell," Fry said. "They'll push it up and at some point the demand will level off. If they're not motivated, they'll just keep them higher."
Dianne Mahanes, director of communications for Bay Area Real Estate Information Services, attributed June's real estate market to great interest rates. People wanted a good deal, she said.
"When it started to look like interest rates were going up, people thought, 'I really need to buy,' " she said. "Now, we have a lower inventory than we had last year at this time, but homes aren't staying on the market very long."
Fry said she does not anticipate the market dying out.
"I think it's going to continue at this level because of the demand here we have in Vacaville, and all over Solano County."
Barbara Smith can be reached at business@thereporter.com.
Record sales prices
Solano remains most affordable of nine Bay Area counties
By Barbara Smith/Business Writer
Real estate sales sizzled in Solano County in May and June, as they did in all Bay Area counties.
The median price paid for a home in the Bay Area for June hit a record $516,000-plus, according to DataQuick Information Services. Buyers also committed to an average monthly mortgage payment of $2,450.
But Solano County remains the most affordable in the nine-county area, where the median price for a home peaked at $358,000 in June - an 18.5 percent increase from the $302,000 median in June of last year.
Early July indicators show sales are cooling off somewhat, said Elizabeth Fry, Vacaville broker and owner of Showcase Properties. But that's because the real estate market tends to be cyclical, she said.
"The market took off after the first of the year, we had an upsurge, and around the first of June it seemed to continue on, but it's leveled off," said Fry, a 23-veteran in the industry.
But the demand in the upper-end market remains strong, and that's encouraging, Fry said.
"The public has become aware of this area as being a really nice place to live," Fry said. "We have a lot of people calling from Napa who want to move into this area because it's gone up a notch in prestige. Before, they used to snub their noses."
DataQuick reported in early spring that $1 million home sales in California jumped to record levels, with sales in nearby Ross in Marin County reporting virtually all home sales in the $1 million category.
DataQuick is a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. It monitors real estate activity nationwide through county recorders' records.
In Solano County, high end housing that hasn't been available in the past is now, and the clients are demanding those luxury homes, Fry said.
"If it's over a million, it's a tighter market, but they're still selling. There are a pool of buyers that can afford up to $1 million," Fry said. "I have several homes listed right now over a million dollars, and we've sold three of them within the last three months."
While sales of lower-priced homes are leveling off, that's not unusual following the buying frenzy of early spring.
"Anytime you get a rapid increase in prices, it decreases the affordability level and it hits a certain point where people tend to back off and kind of wait and see," Fry said.
When people watching the market see the prices skyrocketing, they sometimes put their houses on the market for higher prices.
"There's a lot of overpriced listings offered, but the ones that are priced at the current market value are selling quickly, that's the key," she said.
And it's hard to find a reduced-price home in today's market, unless the seller is motivated.
"When it reaches a price point people are not just jumping into, when they're hesitant, then the sellers are forced to adjust their prices to the level they will sell," Fry said. "They'll push it up and at some point the demand will level off. If they're not motivated, they'll just keep them higher."
Dianne Mahanes, director of communications for Bay Area Real Estate Information Services, attributed June's real estate market to great interest rates. People wanted a good deal, she said.
"When it started to look like interest rates were going up, people thought, 'I really need to buy,' " she said. "Now, we have a lower inventory than we had last year at this time, but homes aren't staying on the market very long."
Fry said she does not anticipate the market dying out.
"I think it's going to continue at this level because of the demand here we have in Vacaville, and all over Solano County."
Barbara Smith can be reached at business@thereporter.com.
North Village Boosting the Housing Inventory
Article Published: Wednesday, July 28, 2004
Boosting the housing inventory
North Village finally moves ahead to provide much-needed homes
It has been a long, slow journey for a cast of would-be developers who would make something out of the dry grasslands in north Vacaville on a plot known as North Village.
A couple of commercial buildings sprang up across a parkway from Genentech's huge manufacturing plant a few years ago, raising hope that the city's last major housing tract would get under way.
Snagged in a web of environmental restrictions and a poor economy, the project started and stopped. The project was approved by the Vacaville City Council in 2001.
Now that the U.S. Army Corps of Engineers has granted final environmental approval to the North Village project and grading on the site will begin. It's an important project for several reasons.
First, it will add more than 2,000 homes to a community that desperately needs new inventory. Housing prices are rising 10 percent to 20 percent a year, because of high demand and almost nonexistent supply.
Second, there is a commercial component to North Village that will help add some space for new businesses that want to cater to the Browns Valley and North Village residents.
And third, the project will comprise a new Solano Community College campus, the first institution of higher learning to make Vacaville its home. The project will provide essential infrastructure the campus needs to get under way. Although state funding for the campus is not guaranteed, the initial planning is happening. The start of the North Village project could spur movement on the campus.
Seeno Construction Co. originally was given permission to build about 2,500 homes. Instead, the developer will build around 2,200 to 2,300 homes. Seeno withdrew plans for 300 homes during negotiations with the Army Corps of Engineers to provide additional acreage for habitat.
Clearing the final environmental hurdles is a welcomed breakthrough.
Boosting the housing inventory
North Village finally moves ahead to provide much-needed homes
It has been a long, slow journey for a cast of would-be developers who would make something out of the dry grasslands in north Vacaville on a plot known as North Village.
A couple of commercial buildings sprang up across a parkway from Genentech's huge manufacturing plant a few years ago, raising hope that the city's last major housing tract would get under way.
Snagged in a web of environmental restrictions and a poor economy, the project started and stopped. The project was approved by the Vacaville City Council in 2001.
Now that the U.S. Army Corps of Engineers has granted final environmental approval to the North Village project and grading on the site will begin. It's an important project for several reasons.
First, it will add more than 2,000 homes to a community that desperately needs new inventory. Housing prices are rising 10 percent to 20 percent a year, because of high demand and almost nonexistent supply.
Second, there is a commercial component to North Village that will help add some space for new businesses that want to cater to the Browns Valley and North Village residents.
And third, the project will comprise a new Solano Community College campus, the first institution of higher learning to make Vacaville its home. The project will provide essential infrastructure the campus needs to get under way. Although state funding for the campus is not guaranteed, the initial planning is happening. The start of the North Village project could spur movement on the campus.
Seeno Construction Co. originally was given permission to build about 2,500 homes. Instead, the developer will build around 2,200 to 2,300 homes. Seeno withdrew plans for 300 homes during negotiations with the Army Corps of Engineers to provide additional acreage for habitat.
Clearing the final environmental hurdles is a welcomed breakthrough.
More New Homes will come to Dixon Sooner
July 29, 2004
Dixon council eases growth restrictions
By Yasmin Assemi
DIXON -- More new homes will come to Dixon sooner now that the City Council has relaxed the city's strict growth controls for certain developers.
Measure B, an ordinance passed by voters in 1986, limits the city's growth to 3 percent a year over a five-year average. With changes endorsed by the council Tuesday, Southwest Homebuilder's Group and Brookfield Homes can build more houses some years, balanced by fewer in others, to achieve the same growth goal by 2014.
In exchange for building in Dixon's Southwest Specific Plan area, the homebuilder's group will pay $2,754 per house "that may be used by the city in its sole discretion," according to one agreement the council backed Tuesday. The developers will also help pay for a road to be built crossing the railroad tracks.
A second agreement deals with an offer to the school district from Brookfield Homes.
In April, Brookfield Homes proposed giving the school district 40 acres of land east of Highway 113 and north of Parkway Boulevard and paying for part of the infrastructure costs for the new Dixon High School in exchange for permission to build a residential neighborhood with 400 homes and 120 senior units.
The offer would save the school district $4 million in infrastructure costs. If the development is approved, Brookfield Homes will begin construction in 2008.
Reach Yasmin Assemi at 427-6953 or yassemi@dailyrepublic.net.
Dixon council eases growth restrictions
By Yasmin Assemi
DIXON -- More new homes will come to Dixon sooner now that the City Council has relaxed the city's strict growth controls for certain developers.
Measure B, an ordinance passed by voters in 1986, limits the city's growth to 3 percent a year over a five-year average. With changes endorsed by the council Tuesday, Southwest Homebuilder's Group and Brookfield Homes can build more houses some years, balanced by fewer in others, to achieve the same growth goal by 2014.
In exchange for building in Dixon's Southwest Specific Plan area, the homebuilder's group will pay $2,754 per house "that may be used by the city in its sole discretion," according to one agreement the council backed Tuesday. The developers will also help pay for a road to be built crossing the railroad tracks.
A second agreement deals with an offer to the school district from Brookfield Homes.
In April, Brookfield Homes proposed giving the school district 40 acres of land east of Highway 113 and north of Parkway Boulevard and paying for part of the infrastructure costs for the new Dixon High School in exchange for permission to build a residential neighborhood with 400 homes and 120 senior units.
The offer would save the school district $4 million in infrastructure costs. If the development is approved, Brookfield Homes will begin construction in 2008.
Reach Yasmin Assemi at 427-6953 or yassemi@dailyrepublic.net.
Tuesday, July 27, 2004
Office Developer Eyes Green Valley Location
Developer eyes Green Valley location
By Matthew Bunk
FAIRFIELD -- Doyle Wiseman jumped into the Green Valley development fray with plans to build a three-story office building on 2.3 acres near the Green Valley Corporate Park.
Wiseman, owner of development and brokerage firm The Wiseman Company, LLC, said space in the 50,000-square-foot building will be designed to accommodate small- to mid-sized service and professional businesses, including a top-flight restaurant that he envisions as the main attraction on the ground floor.
"A white-tablecloth restaurant is something that would benefit our other tenants," Wiseman said. He said several restaurants have shown interest but none have signed a lease yet.
In fact, no tenants have been secured as the project is only in the design stage, Wiseman said. But the idea of a fashionable restaurant complements what he has planned for the rest of the building.
Even though the details could change quite a bit before construction begins, the concept will remain building a home for prestige businesses, Wiseman said.
Stone floors, a steel frame and an open atrium will be a few of the features Wiseman Broker Kirk Hull said will set the building apart from others in Fairfield.
"We're looking for a different type of businesses," Hull said. "This area has a higher-end development than across the way."
Construction will begin in early spring, with completion expected by the end of 2006.
Given its location along the intersection of Business Center Drive and Green Valley Road, and because a pond planned nearby will add visual appeal, Wiseman swears he's found the sweet spot of Green Valley.
Even though vacancies in office buildings nearby could result in fierce competition for tenants, Wiseman executives said they're offering a completely different product.
Wiseman, who built One Harbor Center in Suisun City and professional buildings in downtown Napa and Woodland, expects its next building to include many of the features of previous projects. Design details have not yet been worked out, Wiseman said.
Once finished with design elements, Wiseman said he'll try to broker deals that would place a bank and two other service-related businesses on the pedestrian level. Professional office users could lease space on the upper floors.
TWM, the architect firm that designed One Harbor Center, will work with Wiseman on its Green Valley building.
Reach Matthew Bunk at 425-4646 Ext. 267 or mbunk@dailyrepublic.net.
By Matthew Bunk
FAIRFIELD -- Doyle Wiseman jumped into the Green Valley development fray with plans to build a three-story office building on 2.3 acres near the Green Valley Corporate Park.
Wiseman, owner of development and brokerage firm The Wiseman Company, LLC, said space in the 50,000-square-foot building will be designed to accommodate small- to mid-sized service and professional businesses, including a top-flight restaurant that he envisions as the main attraction on the ground floor.
"A white-tablecloth restaurant is something that would benefit our other tenants," Wiseman said. He said several restaurants have shown interest but none have signed a lease yet.
In fact, no tenants have been secured as the project is only in the design stage, Wiseman said. But the idea of a fashionable restaurant complements what he has planned for the rest of the building.
Even though the details could change quite a bit before construction begins, the concept will remain building a home for prestige businesses, Wiseman said.
Stone floors, a steel frame and an open atrium will be a few of the features Wiseman Broker Kirk Hull said will set the building apart from others in Fairfield.
"We're looking for a different type of businesses," Hull said. "This area has a higher-end development than across the way."
Construction will begin in early spring, with completion expected by the end of 2006.
Given its location along the intersection of Business Center Drive and Green Valley Road, and because a pond planned nearby will add visual appeal, Wiseman swears he's found the sweet spot of Green Valley.
Even though vacancies in office buildings nearby could result in fierce competition for tenants, Wiseman executives said they're offering a completely different product.
Wiseman, who built One Harbor Center in Suisun City and professional buildings in downtown Napa and Woodland, expects its next building to include many of the features of previous projects. Design details have not yet been worked out, Wiseman said.
Once finished with design elements, Wiseman said he'll try to broker deals that would place a bank and two other service-related businesses on the pedestrian level. Professional office users could lease space on the upper floors.
TWM, the architect firm that designed One Harbor Center, will work with Wiseman on its Green Valley building.
Reach Matthew Bunk at 425-4646 Ext. 267 or mbunk@dailyrepublic.net.
Jelly Belly Expands Sugar-Free Line
Jelly Belly expands sugar-free line
By Matthew Bunk
FAIRFIELD -- Sugar-free Jelly Belly candies now have fewer calories, but a decision to tag them "low-carb" had more to do with marketing than change, a company product manager said.
Fairfield-based candy maker Jelly Belly recently began distributing six new sugar-free candies and changed the recipes for its two existing sugar-free products. On Wednesday, the company added a feature to its Web site that describes the sugar-free candy line and gives nutritional information for each variety.
Jelly Belly made the switch as a result of growing consumer demand for sugar-free and low-carb products, Jelly Belly Senior Product Manger Rob Swaigen said.
"It's a hot market," Swaigen said. "We've definitely seen an increase in sugar-free sales, which certainly was why we decided to expand the line."
The company's Web site touts the sugar-free candies as effective for "weight control, diabetes management or carb-control dietary plans." A sugar substitute lowers calories and "net-effective carbs," while retaining Jelly Belly's trademark flavor, it said.
While the new recipes lowers calories significantly from previous sugar-free formulas, the carbs aren't any lower, Swaigen said.
"The old sugar-free recipe was also low-carb, we just didn't tag it as such at the time," Swaigen said. "Since then the low-carb diets have become much more popular."
The company's sugar-free jelly beans have 37 grams of carbs per 35-piece serving, but Jelly Belly also uses a measurement called net-effective carbs that doesn't consider the effects of sugar alcohols and dietary fibers. Using the net-effective measurement, Jelly Belly says its beans have only 4 grams of carbs.
"That hasn't changed from the previous (sugar-free) recipe," Swaigen said.
The big change was fewer calories, which resulted from using a different sugar substitute, he said. The new sugar-free candies average 40 percent fewer calories than their full-sugar counterparts, according to the Web site.
The switch also makes the sugar-free varieties easier on the stomach, Swaigen said.
"It's much better in terms of taste and for those sensitive to sugar-free products," he said. "A certain percentage of people have stomach problems with sugar-free products."
Jelly Belly now produces sugar-free varieties of its jelly beans, jelly bean sours, fruit slices, spice drops, gummi bears, fruit drops, cola bottles and inchworms. Until recently, only its jelly beans and gummi bears were available sugar-free.
Low-carb diets might be a fad, but not sugar-free foods, Swaigen added.
"I don't know where low-carb is going," he said. "But people have always responded to sugar-free."
Reach Matthew Bunk at 425-4646 Ext. 267 or mbunk@dailyrepublic.net.
By Matthew Bunk
FAIRFIELD -- Sugar-free Jelly Belly candies now have fewer calories, but a decision to tag them "low-carb" had more to do with marketing than change, a company product manager said.
Fairfield-based candy maker Jelly Belly recently began distributing six new sugar-free candies and changed the recipes for its two existing sugar-free products. On Wednesday, the company added a feature to its Web site that describes the sugar-free candy line and gives nutritional information for each variety.
Jelly Belly made the switch as a result of growing consumer demand for sugar-free and low-carb products, Jelly Belly Senior Product Manger Rob Swaigen said.
"It's a hot market," Swaigen said. "We've definitely seen an increase in sugar-free sales, which certainly was why we decided to expand the line."
The company's Web site touts the sugar-free candies as effective for "weight control, diabetes management or carb-control dietary plans." A sugar substitute lowers calories and "net-effective carbs," while retaining Jelly Belly's trademark flavor, it said.
While the new recipes lowers calories significantly from previous sugar-free formulas, the carbs aren't any lower, Swaigen said.
"The old sugar-free recipe was also low-carb, we just didn't tag it as such at the time," Swaigen said. "Since then the low-carb diets have become much more popular."
The company's sugar-free jelly beans have 37 grams of carbs per 35-piece serving, but Jelly Belly also uses a measurement called net-effective carbs that doesn't consider the effects of sugar alcohols and dietary fibers. Using the net-effective measurement, Jelly Belly says its beans have only 4 grams of carbs.
"That hasn't changed from the previous (sugar-free) recipe," Swaigen said.
The big change was fewer calories, which resulted from using a different sugar substitute, he said. The new sugar-free candies average 40 percent fewer calories than their full-sugar counterparts, according to the Web site.
The switch also makes the sugar-free varieties easier on the stomach, Swaigen said.
"It's much better in terms of taste and for those sensitive to sugar-free products," he said. "A certain percentage of people have stomach problems with sugar-free products."
Jelly Belly now produces sugar-free varieties of its jelly beans, jelly bean sours, fruit slices, spice drops, gummi bears, fruit drops, cola bottles and inchworms. Until recently, only its jelly beans and gummi bears were available sugar-free.
Low-carb diets might be a fad, but not sugar-free foods, Swaigen added.
"I don't know where low-carb is going," he said. "But people have always responded to sugar-free."
Reach Matthew Bunk at 425-4646 Ext. 267 or mbunk@dailyrepublic.net.
Solano County Job Growth Lags Far Behind Last Year's Figures
Local job growth lags far behind last year's figures
By Matthew Bunk
FAIRFIELD -- Despite monthly employment gains, nearly every industry sector in urban areas of Solano and Napa counties still have far fewer jobs than last year, according to figures released Friday by the state Employment Development Department.
Cities in the two-county region - researchers call it the Vallejo, Fairfield, Napa Metropolitan Statistical Area - gained 400 non-farm jobs in June for a total of 184,200. But it remained 1,400 fewer than the 185,600 jobs in June 2003.
Farm jobs, which gained monthly because the industry gets busier this time of year, also stalled at 8,300 jobs, 500 behind last year's June total of 8,800.
But even though the figures suggested the jobs market was weaker than last year, it continued a steady climb that began early this year. The area added 800 in farming and 400 in other industries for a combined June gain of 1,200 jobs.
Cynthia Solorio, an EDD labor market analyst for Solano and Napa counties, said jobs growth in the region has been "very, very tentative."
"Communities are reacting differently coming back from the recession we had," Solorio said. "It doesn't look like this area has come very far yet . . . but you also have to look at the chunks of jobs that are coming back."
Although jobs are indeed coming back, the rate of job growth has tapered off by 66 percent since the economy added 3,500 jobs in April. The slowdown mimics the national economy, which gained 112,000 jobs in June and discouraged analysts who expected twice that.
But Solorio is encouraged that it's still going in the right direction. She said there are signs that the regional economy will continue to see modest prolonged growth.
As an example, she pointed to the construction industry, which after six months of record expansion leveled off at 500 jobs better than last year. It started with 15,100 jobs in January, and hit 16,200 in June.
"It's not surprising that (the construction industry) is leveling off," Solorio said. "It's still outpacing the last three years, which, of course, is a healthy sign."
The biggest monthly non-farm gainers were the leisure and hospitality sector and a grouping of trade, transportation and utilities industries, which both added 600 jobs. Both remained slightly above last year's marks.
The only other monthly gainer was financial activities, which added 100 jobs.
Manufacturing took a 400-jobs hit and fell to 500 fewer than last year. Educational and health services lost 300 jobs in June and remains 200 below last year. Local governments shed 100 jobs last month.
Reach Matthew Bunk at 425-4646 Ext. 267 or mbunk@dailyrepublic.net.
By Matthew Bunk
FAIRFIELD -- Despite monthly employment gains, nearly every industry sector in urban areas of Solano and Napa counties still have far fewer jobs than last year, according to figures released Friday by the state Employment Development Department.
Cities in the two-county region - researchers call it the Vallejo, Fairfield, Napa Metropolitan Statistical Area - gained 400 non-farm jobs in June for a total of 184,200. But it remained 1,400 fewer than the 185,600 jobs in June 2003.
Farm jobs, which gained monthly because the industry gets busier this time of year, also stalled at 8,300 jobs, 500 behind last year's June total of 8,800.
But even though the figures suggested the jobs market was weaker than last year, it continued a steady climb that began early this year. The area added 800 in farming and 400 in other industries for a combined June gain of 1,200 jobs.
Cynthia Solorio, an EDD labor market analyst for Solano and Napa counties, said jobs growth in the region has been "very, very tentative."
"Communities are reacting differently coming back from the recession we had," Solorio said. "It doesn't look like this area has come very far yet . . . but you also have to look at the chunks of jobs that are coming back."
Although jobs are indeed coming back, the rate of job growth has tapered off by 66 percent since the economy added 3,500 jobs in April. The slowdown mimics the national economy, which gained 112,000 jobs in June and discouraged analysts who expected twice that.
But Solorio is encouraged that it's still going in the right direction. She said there are signs that the regional economy will continue to see modest prolonged growth.
As an example, she pointed to the construction industry, which after six months of record expansion leveled off at 500 jobs better than last year. It started with 15,100 jobs in January, and hit 16,200 in June.
"It's not surprising that (the construction industry) is leveling off," Solorio said. "It's still outpacing the last three years, which, of course, is a healthy sign."
The biggest monthly non-farm gainers were the leisure and hospitality sector and a grouping of trade, transportation and utilities industries, which both added 600 jobs. Both remained slightly above last year's marks.
The only other monthly gainer was financial activities, which added 100 jobs.
Manufacturing took a 400-jobs hit and fell to 500 fewer than last year. Educational and health services lost 300 jobs in June and remains 200 below last year. Local governments shed 100 jobs last month.
Reach Matthew Bunk at 425-4646 Ext. 267 or mbunk@dailyrepublic.net.
Solanoe EDC Real Estate Round-up: Business Leaders Mull Housing, Jobs Disparity
Business leaders mull housing, jobs disparity
By Matthew Bunk
FAIRFIELD -- Urban areas of Solano County have more vacant business park space than last year and 200,000 more residents than jobs, but a panel of real estate experts said those disparities - along with rising home prices - could eventually balance a lopsided growth trend.
One expert even suggested that a pool of workers who would rather work close to home than commute could be used as a tool to bring more businesses to Solano County.
"Is it a curse or opportunity?" Colliers International Broker Brooks Pedder asked business leaders during a Solano Economic Development Corporation breakfast Tuesday at the Solano County Office of Education.
"Commuters traveling through Solano have an almost impossible commute and desperately want to stay home," he said. "The result is an overabundance of inexpensive labor."
Because home prices in Solano County have been much less expensive than other Bay Area cities, residential growth outpaced jobs creation. Despite steady gains in recent years, Solano's industry hasn't grown to the point where it can sustain the local workforce.
But that's not all bad, said Fairfield economic developer Karl Dumas. He said Fairfield benefits from its role as a home to those who work around the Bay Area.
"There will continue to be an imbalance of jobs and housing in the neighboring metro areas," Dumas said, "and our area will be looked upon to help solve the housing part of the equation."
Some real estate experts worried, though, that rising home prices in Solano could keep bedroom communities such as Fairfield from competing in a homes market that has thrived on being an alternative.
As far as housing affordability goes: "We lose out to the Sacramento and San Joaquin valleys and all points out of state," Pedder said.
Premier Commercial's Kevin English said generating more housing options, including lower-cost models, would relieve burgeoning demand and send positive signals to outside businesses.
But instead of more outside businesses moving in, Pedder said most of the recent commercial growth has come from native companies expanding within Solano County.
"Expansion of local firms is fueling our recent successes," Pedder said. "We need to do a better job of getting the word out about Solano County."
Business Park vacancy rates rose in every major city in the county with the exception of Vacaville, but the area continues to outperform other Bay Area counties. Solano's combined vacancy of 9.1 percent puts it in better position for recovery than most larger Bay Area cities, many of which struggle with 25-50 percent higher vacancy rates, Pedder said.
Fairfield, which in recent years lost major employers Providian Financial, BP Solar and Fibrebond, has a 7.6 percent vacancy rate, according to Colliers International. That's up from 2 percent vacancy last year.
Vacaville dropped to 18 percent vacancy from 23 percent last year.
Vallejo, still trying to come back from the shutdown of a major military base and the resulting glut of industrial space, is only about half full, said Greg Smith, who works for Colliers International in Vallejo. He said more than three million square feet of industrial space remains vacant, mostly on Mare Island.
Westfield Shoppingtown mall in Fairfield, which has said it lowered tenant vacancy to 2 percent from more than 25 percent since it bought the property from Trizec Hahn Corp. in 1998, teased business leaders by announcing plans to expand without offering details. A Westfield spokeswoman said the company has not yet submitted plans to the city.
Reach Matthew Bunk at 425-4646, Ext. 267 or mbunk@dailyrepublic.net.
By Matthew Bunk
FAIRFIELD -- Urban areas of Solano County have more vacant business park space than last year and 200,000 more residents than jobs, but a panel of real estate experts said those disparities - along with rising home prices - could eventually balance a lopsided growth trend.
One expert even suggested that a pool of workers who would rather work close to home than commute could be used as a tool to bring more businesses to Solano County.
"Is it a curse or opportunity?" Colliers International Broker Brooks Pedder asked business leaders during a Solano Economic Development Corporation breakfast Tuesday at the Solano County Office of Education.
"Commuters traveling through Solano have an almost impossible commute and desperately want to stay home," he said. "The result is an overabundance of inexpensive labor."
Because home prices in Solano County have been much less expensive than other Bay Area cities, residential growth outpaced jobs creation. Despite steady gains in recent years, Solano's industry hasn't grown to the point where it can sustain the local workforce.
But that's not all bad, said Fairfield economic developer Karl Dumas. He said Fairfield benefits from its role as a home to those who work around the Bay Area.
"There will continue to be an imbalance of jobs and housing in the neighboring metro areas," Dumas said, "and our area will be looked upon to help solve the housing part of the equation."
Some real estate experts worried, though, that rising home prices in Solano could keep bedroom communities such as Fairfield from competing in a homes market that has thrived on being an alternative.
As far as housing affordability goes: "We lose out to the Sacramento and San Joaquin valleys and all points out of state," Pedder said.
Premier Commercial's Kevin English said generating more housing options, including lower-cost models, would relieve burgeoning demand and send positive signals to outside businesses.
But instead of more outside businesses moving in, Pedder said most of the recent commercial growth has come from native companies expanding within Solano County.
"Expansion of local firms is fueling our recent successes," Pedder said. "We need to do a better job of getting the word out about Solano County."
Business Park vacancy rates rose in every major city in the county with the exception of Vacaville, but the area continues to outperform other Bay Area counties. Solano's combined vacancy of 9.1 percent puts it in better position for recovery than most larger Bay Area cities, many of which struggle with 25-50 percent higher vacancy rates, Pedder said.
Fairfield, which in recent years lost major employers Providian Financial, BP Solar and Fibrebond, has a 7.6 percent vacancy rate, according to Colliers International. That's up from 2 percent vacancy last year.
Vacaville dropped to 18 percent vacancy from 23 percent last year.
Vallejo, still trying to come back from the shutdown of a major military base and the resulting glut of industrial space, is only about half full, said Greg Smith, who works for Colliers International in Vallejo. He said more than three million square feet of industrial space remains vacant, mostly on Mare Island.
Westfield Shoppingtown mall in Fairfield, which has said it lowered tenant vacancy to 2 percent from more than 25 percent since it bought the property from Trizec Hahn Corp. in 1998, teased business leaders by announcing plans to expand without offering details. A Westfield spokeswoman said the company has not yet submitted plans to the city.
Reach Matthew Bunk at 425-4646, Ext. 267 or mbunk@dailyrepublic.net.
Westfield Corp to Spend Part of a $1.8 Billion Redevelopment Budget to Build Space for New Stores, Restaurants & Entertainment.
July 24, 2004
Malls consider new strategies, trends
By Matthew Bunk
FAIRFIELD -- The mall of the future will more likely hold stores such as Wal-Mart, Home Depot or Target than department stores Sears or Macy's.
And it probably will have more entertainment and dining options, too.
That's because the traditional mall has lost favor with shoppers. People are too busy to spend an afternoon browsing indoors, preferring instead to go someplace they can one-stop shop in a hurry. Plus, some consumers say malls cater too much to the younger crowd.
"It's a hangout for young people," said Vallejo resident Jeanine Cortes, 46, while buying back-to-school clothes for her daughter at Westfield Shoppingtown Solano in Fairfield. "But for some things, like nice clothes, you still have to go (to the mall)."
For now. But declining sales figures in traditional department stores that typically anchor malls, along with sustained revenue growth at discount stores, are inspiring old malls to change their makeup. Having lost loyalty among older shoppers who see malls mostly as a teen hangout, mall operators also are scrambling to add more fine dining and entertainment to their tenant lists.
Westfield Shoppingtown Solano is no exception. The Fairfield mall's parent company, Westfield Corp., wants to spend part of a $1.8 billion redevelopment budget to build space for new stores, restaurants and entertainment.
Work started earlier this year when Shoppingtown Solano put in a double-deck carousel and added to its customer service staff. But that's just the first phase.
The real excitement came on July 13 when Westfield announced plans to add off-mall buildings for new tenants. The expansion might include an upscale restaurant, said Westfield Development Director Cheryl Hines. She didn't elaborate.
But Westfield spokeswoman Catharine Dickey said it's part of the company's Hy-Style campaign intended to redesign malls with elements now popular in outdoor shopping clusters being built in record numbers across the country.
Westfield hasn't officially submitted its expansion plans to the city, and Dickey would only speak about Westfield's corporate growth strategy.
"We've looked at the trends, and we're integrating those into our centers," Dickey said. "There are lots of things that you do to keep your centers vibrant."
Of the 690 shopping centers built last year, only three were large malls and only three more are expected to open this year, according to International Council of Shopping Centers. Thirteen large malls opened in 1999.
But mall owners spent 6 percent more money on construction in 2003 compared to the year before, a sign they're spending more on fixing up existing malls.
"Redevelopment was where the action was," ICSC's top economist Michael Niemira said.
Another reason was that developers concentrated instead on building more lifestyle centers, characterized by outdoor shopping, bookstore and home products anchor stores, as well as rides and amusements. The construction fad resulted from a change in shoppers' attitudes about malls in recent years.
Lifestyle centers became all the rage about four years ago, said David Codding, owner of Montgomery Villages lifestyle center and Coddingtown Mall, both in Santa Rosa. He said the mall has been a steady performer while the lifestyle center has boomed.
"In the last three or four years, Montgomery Villages has really taken off," Codding said.
The popularity of lifestyle centers provoked many mall operators to do something similar. Converting to outdoor shopping might be out of the question for some malls, but even those with no intention of removing their roofs are looking at developing more off-mall retail space.
That's what Westfield wants to do in it's 1-million-square-foot Fairfield mall and other Northern California sites. The whole idea is to integrate trends with traditional mall shopping and department store anchors.
Westfield's Hines also hinted something new may be done with the space currently occupied by Mervyn's. Target Corp. announced earlier this year it wants to sell its Marshall Fields and Mervyn's stores to other retailers. The move isn't surprising because these traditional mall anchors have posted declining sales in five of the past six years.
"It's going to be a challenge - what to do with the space when that department store goes away," Hines said.
However, the changeover doesn't mean Shoppingtown Solano has performed badly. Since Westfield bought Solano Mall - now Shoppingtown Solano - from Trizec Hahn Corp. in 1998, the vacancy rate dropped from 25 percent to 2 percent and General Manager Gavin Farnam said stores have recorded higher revenues since then.
More integration could put mall operators back in the pole position, according to an ICSC study last year that suggested mall operators should take control of the momentum by melding "the best elements of malls, power centers and 'pure' lifestyle centers."
The ICSC study followed 10 consecutive years of falling department store revenues, which bottomed out in 2002 when they generated less than 4 percent of retail spending. In 1992, department stores raised 6 percent of all retail sales.
Shoppers, though, weren't certain they would spend more money at malls if it had an attached Wal-Mart or Home Depot.
"It would be too different," Fairfield resident Dustin Heimgartner, 20, said while shopping at Wal-Mart. "You go to Wal-Mart and Home Depot for completely different reasons than you would go to a mall. I don't think I'd spend any more money at the mall just because I had to go there to get what I need at Wal-Mart."
Mall shoppers agreed. One woman said a Wal-Mart at a mall would take business away from specialty stores.
"I don't think it's necessary to have a Wal-Mart at a mall," said Miranda Wilbon, 22, of Fairfield while watching the carousel at Shoppingtown Solano. "They're not going to close their other locations just because they open one in a mall, so it seems like just more money for Wal-Mart."
Industry research suggests the opposite might be true.
Seven-year sales growth percentages for mall-based department stores were dwarfed by staggering advancements by Wal-Mart, which grew sales by more than 150 percent, and Home Depot, which saw sales increase by about 40 percent. Comparatively, department stores Macy's and Sears reported sales increases of less than 10 percent during that time.
Maybe the success of a discount giant would spill over to other mall stores, rather than suck up consumers, said Katie Brasher, 18, of St. Louis.
"If I was there already I'd be more likely to do more shopping," Brasher said.
Despite mass spending based on a similar theory, Westfield isn't giving up on its anchors just yet. The company endorsed its long-standing department store partners with words that suggested an eternal, and therefore risky, bond between malls and the stores that made them popular in the 1960s.
"Department stores will always be an important component of the mall," Dickey said.
Reach Matthew Bunk at 425-4646 Ext. 267 or mbunk@dailyrepublic.net.
Malls consider new strategies, trends
By Matthew Bunk
FAIRFIELD -- The mall of the future will more likely hold stores such as Wal-Mart, Home Depot or Target than department stores Sears or Macy's.
And it probably will have more entertainment and dining options, too.
That's because the traditional mall has lost favor with shoppers. People are too busy to spend an afternoon browsing indoors, preferring instead to go someplace they can one-stop shop in a hurry. Plus, some consumers say malls cater too much to the younger crowd.
"It's a hangout for young people," said Vallejo resident Jeanine Cortes, 46, while buying back-to-school clothes for her daughter at Westfield Shoppingtown Solano in Fairfield. "But for some things, like nice clothes, you still have to go (to the mall)."
For now. But declining sales figures in traditional department stores that typically anchor malls, along with sustained revenue growth at discount stores, are inspiring old malls to change their makeup. Having lost loyalty among older shoppers who see malls mostly as a teen hangout, mall operators also are scrambling to add more fine dining and entertainment to their tenant lists.
Westfield Shoppingtown Solano is no exception. The Fairfield mall's parent company, Westfield Corp., wants to spend part of a $1.8 billion redevelopment budget to build space for new stores, restaurants and entertainment.
Work started earlier this year when Shoppingtown Solano put in a double-deck carousel and added to its customer service staff. But that's just the first phase.
The real excitement came on July 13 when Westfield announced plans to add off-mall buildings for new tenants. The expansion might include an upscale restaurant, said Westfield Development Director Cheryl Hines. She didn't elaborate.
But Westfield spokeswoman Catharine Dickey said it's part of the company's Hy-Style campaign intended to redesign malls with elements now popular in outdoor shopping clusters being built in record numbers across the country.
Westfield hasn't officially submitted its expansion plans to the city, and Dickey would only speak about Westfield's corporate growth strategy.
"We've looked at the trends, and we're integrating those into our centers," Dickey said. "There are lots of things that you do to keep your centers vibrant."
Of the 690 shopping centers built last year, only three were large malls and only three more are expected to open this year, according to International Council of Shopping Centers. Thirteen large malls opened in 1999.
But mall owners spent 6 percent more money on construction in 2003 compared to the year before, a sign they're spending more on fixing up existing malls.
"Redevelopment was where the action was," ICSC's top economist Michael Niemira said.
Another reason was that developers concentrated instead on building more lifestyle centers, characterized by outdoor shopping, bookstore and home products anchor stores, as well as rides and amusements. The construction fad resulted from a change in shoppers' attitudes about malls in recent years.
Lifestyle centers became all the rage about four years ago, said David Codding, owner of Montgomery Villages lifestyle center and Coddingtown Mall, both in Santa Rosa. He said the mall has been a steady performer while the lifestyle center has boomed.
"In the last three or four years, Montgomery Villages has really taken off," Codding said.
The popularity of lifestyle centers provoked many mall operators to do something similar. Converting to outdoor shopping might be out of the question for some malls, but even those with no intention of removing their roofs are looking at developing more off-mall retail space.
That's what Westfield wants to do in it's 1-million-square-foot Fairfield mall and other Northern California sites. The whole idea is to integrate trends with traditional mall shopping and department store anchors.
Westfield's Hines also hinted something new may be done with the space currently occupied by Mervyn's. Target Corp. announced earlier this year it wants to sell its Marshall Fields and Mervyn's stores to other retailers. The move isn't surprising because these traditional mall anchors have posted declining sales in five of the past six years.
"It's going to be a challenge - what to do with the space when that department store goes away," Hines said.
However, the changeover doesn't mean Shoppingtown Solano has performed badly. Since Westfield bought Solano Mall - now Shoppingtown Solano - from Trizec Hahn Corp. in 1998, the vacancy rate dropped from 25 percent to 2 percent and General Manager Gavin Farnam said stores have recorded higher revenues since then.
More integration could put mall operators back in the pole position, according to an ICSC study last year that suggested mall operators should take control of the momentum by melding "the best elements of malls, power centers and 'pure' lifestyle centers."
The ICSC study followed 10 consecutive years of falling department store revenues, which bottomed out in 2002 when they generated less than 4 percent of retail spending. In 1992, department stores raised 6 percent of all retail sales.
Shoppers, though, weren't certain they would spend more money at malls if it had an attached Wal-Mart or Home Depot.
"It would be too different," Fairfield resident Dustin Heimgartner, 20, said while shopping at Wal-Mart. "You go to Wal-Mart and Home Depot for completely different reasons than you would go to a mall. I don't think I'd spend any more money at the mall just because I had to go there to get what I need at Wal-Mart."
Mall shoppers agreed. One woman said a Wal-Mart at a mall would take business away from specialty stores.
"I don't think it's necessary to have a Wal-Mart at a mall," said Miranda Wilbon, 22, of Fairfield while watching the carousel at Shoppingtown Solano. "They're not going to close their other locations just because they open one in a mall, so it seems like just more money for Wal-Mart."
Industry research suggests the opposite might be true.
Seven-year sales growth percentages for mall-based department stores were dwarfed by staggering advancements by Wal-Mart, which grew sales by more than 150 percent, and Home Depot, which saw sales increase by about 40 percent. Comparatively, department stores Macy's and Sears reported sales increases of less than 10 percent during that time.
Maybe the success of a discount giant would spill over to other mall stores, rather than suck up consumers, said Katie Brasher, 18, of St. Louis.
"If I was there already I'd be more likely to do more shopping," Brasher said.
Despite mass spending based on a similar theory, Westfield isn't giving up on its anchors just yet. The company endorsed its long-standing department store partners with words that suggested an eternal, and therefore risky, bond between malls and the stores that made them popular in the 1960s.
"Department stores will always be an important component of the mall," Dickey said.
Reach Matthew Bunk at 425-4646 Ext. 267 or mbunk@dailyrepublic.net.
Ledgewood is Growing & Expects to Produce a Company Record 10,000 Cases of Wine This Year
Tuesday, July 27, 2004
Business
A torrent at Ledgewood Creek
By Matthew Bunk
FAIRFIELD -- Alternating between four glasses of chardonnay and a lab sink, winemaker Larry Lagbehn sips and spits until he's sure one has just the right texture. Then he wants someone else's opinion.
"Now tell me what you think," Lagbehn said.
As head of wine making at three-year-old Ledgewood Creek Winery, Lagbehn genuinely wants feedback. But because he can taste slight variations that other wine drinkers only pretend to notice, he often finds himself in sparse company during the final rounds of product testing.
But as harvest approaches and Ledgewood plans for its busiest production season so far, Lagbehn's work to adjust the viscosity of the mainline chardonnay stands out as the least of the winery's challenges.
As an extension of Ledgewood's 16-year-old grape growing operation, the winery on Abernathy Road is still a relatively new venture for owner Dean Frisbie. Its formative years have been marked by a sour state economy, a saturated market and sobering interstate distribution laws.
Plus, Ledgewood hails from the relatively unknown Suisun Valley, which makes it harder to sell wine. The valley's growers have been trying desperately to brand the area as premium wine country like its northern neighbor Napa, a task that by comparison makes Lagbehn's job seem easy.
Even as he tastes wine in his workspace - which looks very much like a small chemist's lab - Lagbehn admits that selling the wine is the toughest aspect of production.
"We've already got good viticulture and good winemaking," he said. "The challenge right now isn't in the winemaking - it's in the marketing."
Ledgewood, though, is growing in spite of the odds. It expects to produce a company record 10,000 cases of wine this year, mostly because it will use distributors for the first time since it shipped its initial batch of 2,200 cases directly to customers in 2001.
The production forecast for this year represents a 42-percent jump from last year's total of 7,000 cases. Those running operations say its the beginning of what they hope will be a much bigger push that could include developing their wine list.
Ledgewood now sells mostly merlot and chardonney, but it also draws from experimental vineyards to make 11 other varietals in limited quantity. Demand will determine which ones could be developed into full-production wines, Ledgewood General Manager Rick Wehman said.
Wehman isn't squeamish about aggressive growth. He'd like to sell something like 30,000 cases a year, the limit of the winery's current output and storage capabilities.
"That's a significant point for us, because this building will allow us to get there," he said. "Then we'll have a much different problem."
Reaching capacity is a problem that doesn't even show up on the radar for the few wineries in Suisun Valley. Other than Ledgewood, there's Wooden Valley Winery owned by Rick Lanza and a few family-operated wineries that produce in limited volume.
Only two miles from Napa County, Wooden Valley makes more wine than anyone in the valley. It's bigger than Ledgewood, the second largest, both in terms of volume and number of varietals.
Both wineries are adding to their product lines, they both growth their own grapes and, let's face it, they compete. But they share a common goal in making a name for Suisun Valley wines, and there will be enough success for everybody if it works. In fact, part of the plan is to help develop more wineries.
"The idea for the valley to survive is to get enough wineries to do things like wine trains and other tourist activities," Wehman said. "They could spend a day here, come in and taste our wines and then go out and tell people they went to the Suisun Valley."
Wehman says Suisun Valley grapes, and its wines by extension, are just as good as those used to make more expensive Napa wines. Gold medals hanging from bottles of Ledgewood merlot add a level of credibility to Wehman's assertion.
Until wine buyers discover what the judges know, however, Ledgewood might have to continue selling 90 percent of its grapes to Napa wineries that profit from underrated Suisun Valley fruit, Wehman said.
"Napa and Sonoma consider the Suisun Valley a bastard child that produces fruit for them," Wehman said. "You'd be surprised how many people have no idea wine is produced here."
Reach Matthew Bunk at 425-4646 Ext. 267 or mbunk@dailyrepublic.net.
Sutter Readies New Fairfield Referral Facility -17,000-square-foot Fairfield Surgery Center
Article Published: Saturday, July 24, 2004
Cutting-edge medicine
Sutter readies new Fairfield referral facility
By Tom Hall/Staff Writer
With Wal-Mart on one side and the Anheuser-Busch plant on the other, the new $30 million Sutter Fairfield Medical Campus off Chadbourne Road sticks out like a sore thumb.
Conveniently enough, doctors at the campus's 17,000-square-foot Fairfield Surgery Center can fix a sore thumb, a faulty digestive system or blood vessel problems. All of the surgery is on an outpatient basis, and the campus, which is a referral facility, does not offer hospital care.
The surgery center sits on the second floor of the building, holding $2.5 million of high-tech equipment, along with five operating rooms of 500 square feet each.
Dr. Robert Takamoto, Sutter Fairfield's medical director, said having that much space to work with is a huge advantage.
"These rooms are so large - you could do open heart surgery in here if you wanted to," Takamoto laughed.
Downstairs from the expansive surgery center is the campus' Diagnostic Imaging Center - a completely digital radiology department.
The 18,000-square-foot center is home to high-tech machines performing magnetic resonance imaging, computed tomography, mammography, bone densitometry, fluoroscopy and run-of-the-mill general radiology. James Grosskopf, the campus' lead administrator, said all of the equipment at Sutter Fairfield - most of which was built by General Electric - is top-of-the-line.
"This CT scanner is three times faster than normal quad scanners," Grosskopf said while showing off the $1 million machine.
The best part of the new imaging center, Grosskopf said, is that it is completely digital - no X-ray film, no physical storage, no searching through filing cabinets for patients' records.
"If you don't have film, you don't have storage costs," Grosskopf said. "We also save on our personnel costs."
X-ray images are shot straight from the scanning machines to a central room in the imaging center to be viewed. The digital archives are stored in Sacramento and can be accessed - with proper security clearance - from any Sutter campus.
"There's no personal files to deal with. It's all in there," Grosskopf said, pointing at a computer.
John S. Ray, chief executive officer of Sutter Regional Medical Foundation, said there is another seven acres on which to expand at the site, though the focus right now is on getting the campus up and running. The first patients are expected to walk through the entrance atrium Sept. 7.
The site was chosen by Sutter because of the needs in that part of the county, said Patricia Porras, the regional operations manager for Health Inventures. Health Inventures will provide management services for the campus.
"There are limitations on access to these kind of services in Fairfield," Porras said.
Ray said the idea of a Sutter campus in Fairfield sprang to life four years ago. Sutter operates facilities across Northern California, including medical offices in Vacaville, Rio Vista and Fairfield; medical centers in Sacramento, Roseville and Vallejo; and a hospital in Davis.
Sutter Fairfield will hold a community open house Sunday from 1 to 5 p.m. Refreshments and tours will be available, as will drawings for free bone-density screenings and lipid blood tests.
Porras said Sutter Fairfield, 80,000 square feet in size, has the potential to serve 3,800 patients per year. With all the surgery outpatient and with no hospital care, Takamoto said, schedules should flow smoothly.
"It's so efficient this way," the doctor said. "Unless a surgeon gets called away, everyone will be operated on right on time."
Tom Hall can be reached at dixon@thereporter.com.
Cutting-edge medicine
Sutter readies new Fairfield referral facility
By Tom Hall/Staff Writer
With Wal-Mart on one side and the Anheuser-Busch plant on the other, the new $30 million Sutter Fairfield Medical Campus off Chadbourne Road sticks out like a sore thumb.
Conveniently enough, doctors at the campus's 17,000-square-foot Fairfield Surgery Center can fix a sore thumb, a faulty digestive system or blood vessel problems. All of the surgery is on an outpatient basis, and the campus, which is a referral facility, does not offer hospital care.
The surgery center sits on the second floor of the building, holding $2.5 million of high-tech equipment, along with five operating rooms of 500 square feet each.
Dr. Robert Takamoto, Sutter Fairfield's medical director, said having that much space to work with is a huge advantage.
"These rooms are so large - you could do open heart surgery in here if you wanted to," Takamoto laughed.
Downstairs from the expansive surgery center is the campus' Diagnostic Imaging Center - a completely digital radiology department.
The 18,000-square-foot center is home to high-tech machines performing magnetic resonance imaging, computed tomography, mammography, bone densitometry, fluoroscopy and run-of-the-mill general radiology. James Grosskopf, the campus' lead administrator, said all of the equipment at Sutter Fairfield - most of which was built by General Electric - is top-of-the-line.
"This CT scanner is three times faster than normal quad scanners," Grosskopf said while showing off the $1 million machine.
The best part of the new imaging center, Grosskopf said, is that it is completely digital - no X-ray film, no physical storage, no searching through filing cabinets for patients' records.
"If you don't have film, you don't have storage costs," Grosskopf said. "We also save on our personnel costs."
X-ray images are shot straight from the scanning machines to a central room in the imaging center to be viewed. The digital archives are stored in Sacramento and can be accessed - with proper security clearance - from any Sutter campus.
"There's no personal files to deal with. It's all in there," Grosskopf said, pointing at a computer.
John S. Ray, chief executive officer of Sutter Regional Medical Foundation, said there is another seven acres on which to expand at the site, though the focus right now is on getting the campus up and running. The first patients are expected to walk through the entrance atrium Sept. 7.
The site was chosen by Sutter because of the needs in that part of the county, said Patricia Porras, the regional operations manager for Health Inventures. Health Inventures will provide management services for the campus.
"There are limitations on access to these kind of services in Fairfield," Porras said.
Ray said the idea of a Sutter campus in Fairfield sprang to life four years ago. Sutter operates facilities across Northern California, including medical offices in Vacaville, Rio Vista and Fairfield; medical centers in Sacramento, Roseville and Vallejo; and a hospital in Davis.
Sutter Fairfield will hold a community open house Sunday from 1 to 5 p.m. Refreshments and tours will be available, as will drawings for free bone-density screenings and lipid blood tests.
Porras said Sutter Fairfield, 80,000 square feet in size, has the potential to serve 3,800 patients per year. With all the surgery outpatient and with no hospital care, Takamoto said, schedules should flow smoothly.
"It's so efficient this way," the doctor said. "Unless a surgeon gets called away, everyone will be operated on right on time."
Tom Hall can be reached at dixon@thereporter.com.
New Sutter Fairfield Medical Campus Holds Grand Opening For State-of-the-Art Outpatient Surgery & Diagnostic Imaging Centers
Financial file - July 25
Grand opening event today
The new Sutter Fairfield Medical Campus will hold a grand opening and community health faire from 1 to 5 p.m. today at 2700 Low Court, located off Highway 12 at Chadbourne Road.
Attendees will preview its state-of-the-art outpatient surgery and diagnostic imaging centers, a behind-the-scenes look at the new facilities, including the latest in orthopedic and many other surgeries, and diagnostic imaging technology.
Health information tables and local physicians will be on hand to answer questions about diabetes, heart health, women's wellness, lowering risks of cancer, eye care and more. There will be puppet shows, face painting and a bounce house for children.
For more information, call (650) 856-1607.
Grand opening event today
The new Sutter Fairfield Medical Campus will hold a grand opening and community health faire from 1 to 5 p.m. today at 2700 Low Court, located off Highway 12 at Chadbourne Road.
Attendees will preview its state-of-the-art outpatient surgery and diagnostic imaging centers, a behind-the-scenes look at the new facilities, including the latest in orthopedic and many other surgeries, and diagnostic imaging technology.
Health information tables and local physicians will be on hand to answer questions about diabetes, heart health, women's wellness, lowering risks of cancer, eye care and more. There will be puppet shows, face painting and a bounce house for children.
For more information, call (650) 856-1607.
Convert the Historic Cadenasso Winery into a First-Class Fruit and Candy Stand
Article Published: Tuesday, July 27, 2004
It begins with a dream
Winery's new owner could breathe new life in property
Visionaries are rarely appreciated in their time. The focus of their dreams often is lost on we mere mortals.
But perhaps that will change.
With a little help, a lot of hard work, and much patience navigating the straits of planning bureaucracy, Suisun Valley resident and Jelly Belly Co. Chairman Herman Rowland Jr. hopes to convert the historic Cadenasso Winery into a first-class fruit and candy stand that also promotes the area's agriculture. Mr. Rowland and his family hope the project will be something on the order of what the Nut Tree was in its heyday. It is a bold step for the future of Solano County, one that uses one of the county's economic and traditional pillars - agriculture.
"I have nothing but crazy ideas," Mr. Rowland said last week after it was learned he had closed the deal on the winery property earlier in the month. "All of this is just daydreaming and night dreaming."
But the Rowland family has a history of success with dreams and visions. Last year, Jelly Belly Co., with its corporate headquarters about two miles from the winery property, had net sales of more than $130 million.
While no plans are set in stone - and time and bureaucracy might alter blueprint along the way - Mr. Rowland and his family aim to turn the winery site into a farmer's fantasyland and a gateway to the rest of Suisun Valley.
Visitors to the winery property also would receive a map to other produce stands and wineries in Suisun Valley. Mr. Rowland already has spoken to other farmers and vintners who want to make Suisun Valley a trademark name, such as Napa Valley and Jelly Belly. There is talk of naming the stand The Belly Flop Stop, a reference to imperfect Jelly Belly candies.
The 10-acre property on Abernathy Road in Fairfield abuts Interstate 80 and has easy access. Mr. Rowland would like to have a sign visible to passers-by promoting the fresh produce of the day, and offer "incredible service," a "pristine, clean" environment, and the freshest, tastiest product.
A train on wheels with cars in the shapes of vegetables would meander the property on a winding path and passengers would be able to learn about agriculture.
While it was sad to see one of the county's oldest wineries close more than a year ago, it is hoped that once Mr. Rowland's dream comes to fruition the project will help preserve the legacy of the Cadenasso Winery and promote other agriculture-related businesses.
It would be nice to see more specific blueprint for the very visible property, but, for now, plans for the parcel are just a vision, one we hope comes into focus in next few years.
It begins with a dream
Winery's new owner could breathe new life in property
Visionaries are rarely appreciated in their time. The focus of their dreams often is lost on we mere mortals.
But perhaps that will change.
With a little help, a lot of hard work, and much patience navigating the straits of planning bureaucracy, Suisun Valley resident and Jelly Belly Co. Chairman Herman Rowland Jr. hopes to convert the historic Cadenasso Winery into a first-class fruit and candy stand that also promotes the area's agriculture. Mr. Rowland and his family hope the project will be something on the order of what the Nut Tree was in its heyday. It is a bold step for the future of Solano County, one that uses one of the county's economic and traditional pillars - agriculture.
"I have nothing but crazy ideas," Mr. Rowland said last week after it was learned he had closed the deal on the winery property earlier in the month. "All of this is just daydreaming and night dreaming."
But the Rowland family has a history of success with dreams and visions. Last year, Jelly Belly Co., with its corporate headquarters about two miles from the winery property, had net sales of more than $130 million.
While no plans are set in stone - and time and bureaucracy might alter blueprint along the way - Mr. Rowland and his family aim to turn the winery site into a farmer's fantasyland and a gateway to the rest of Suisun Valley.
Visitors to the winery property also would receive a map to other produce stands and wineries in Suisun Valley. Mr. Rowland already has spoken to other farmers and vintners who want to make Suisun Valley a trademark name, such as Napa Valley and Jelly Belly. There is talk of naming the stand The Belly Flop Stop, a reference to imperfect Jelly Belly candies.
The 10-acre property on Abernathy Road in Fairfield abuts Interstate 80 and has easy access. Mr. Rowland would like to have a sign visible to passers-by promoting the fresh produce of the day, and offer "incredible service," a "pristine, clean" environment, and the freshest, tastiest product.
A train on wheels with cars in the shapes of vegetables would meander the property on a winding path and passengers would be able to learn about agriculture.
While it was sad to see one of the county's oldest wineries close more than a year ago, it is hoped that once Mr. Rowland's dream comes to fruition the project will help preserve the legacy of the Cadenasso Winery and promote other agriculture-related businesses.
It would be nice to see more specific blueprint for the very visible property, but, for now, plans for the parcel are just a vision, one we hope comes into focus in next few years.
Monday, July 26, 2004
Campbell plant keeps economy humming in Dixon
Article Published: Sunday, July 25, 2004
M'm! M'm! Good
Campbell plant keeps economy humming in Dixon
By Barbara Smith/Business Writer
Craving hot tomato soup and a grilled cheese sandwich?
Or just a snack of chips and salsa?
It's likely most American kitchens contain a can of Campbell's tomato soup or any of the company's hundreds of products. But few realize the base for that household staple begins in Dixon's prime agriculture fields and runs through an unassuming plant on the outskirts of town.
It's a plant that keeps growers growing and infuses $35 million a year into the local economy, said Tim Gruenwald, director of agriculture operations for Campbell Soup Supply Co.
Formerly Dixon Canning Company, the plant has been in operation since 1975 and employs about 185 during the tomato-harvesting season. About 6,000 tons of tomatoes are processed there daily.
"This is our largest processing company in California," Gruenwald said.
Solano County's recent Crop and Livestock report found that in 2003, processing tomatoes were a $20.2 million crop in the county, making them the No. 3 ag product in the county, behind nursery stock and cattle and calves.
"And processing tomatoes are the 12th-largest cash commodity in California agriculture," Gruenwald said."It's a fairly important crop."
***
In early July, the 88-day tomato processing season began, and the serenity of rural Pedrick Road transformed into a hubbub of noise, steam and the tangy aroma of tomatoes.
It's a 24-hour-a-day, seven-day-a-week operation of slicing and dicing tomatoes trucked in from about 13,000 acres of land in Solano and Yolo counties, Gruenwald said.
"More than one half million tons from those two counties come to this plant," he said. "We're interested in making sure that we get the tomatoes grown as close as possible to the plant."
Dixon growers Roy Gill and Craig Gnos are among the 40 growers in Yolo and 13 growers in Solano counties who have contracts with Campbell.
In fact, one of Gill's fields of tomatoes is located just across the narrow country road from the plant.
"We roll 'em across over here," Gill joked from his field.
This year, Gnos is growing 920 acres of tomatoes for the plant, and Gill 940 acres.
Gill has been growing tomatoes for 29 years, and his father grew them before him, he said.
"Tomatoes have been grown here for probably 40 to 45 years," Gill said. "Campbell's Soup is really important. ... We take good care of them because they're the only plant left in Solano County," he said.
"Most canneries have either closed or migrated south," Gnos added.
Gill said having tomatoes close to the plant controls transportation costs and the quality of the tomato - a highly perishable fruit.
Fifty acres of tomatoes is worth a gross of about $100,000, depending on the actual yield.
Gill scoffed at rumors that the tomato crop is doing badly in California.
"Overall, the tomato crop looks pretty good," he said. "I'm hearing that up and down the state."
But mother nature can change all of that at a whim, he added.
"Five days of 105 degree weather throws us out of whack, and it's everybody's guess," Gill said.
"And five days of 80 degrees puts us back," Gnos added.
The weather can ruin a crop in a matter of days, agreed Patrick Rooney, agriculture manager for Campbell. So growers in late December are given a fine-tuned schedule and start growing as early as January to keep the tomatoes rolling.
The growers are given a variety plan, delivery dates, and tonnage expected per week. Some growers plant seeds while some tomato plants come from greenhouses and are transplanted.
"So the crops are staggered," Rooney explained.
***
As the old song says, "you say tomato and I say tomahto" but at the Dixon Campbell plant there are all sort of names for the red fruit
"Bos3155," "Shasta," "AB2," "Peto849," "Asgrow410" and "Campbell179," - a premier variety of tomato - are the names of the processing varieties of tomatoes, said Craig Leathers, senior agriculture representative for the company.
The varieties are for paste and diced tomatoes - not the tomatoes one would find at the farmer's market.
"The supermarkets' products are completely different varieties," Leathers said. "We call these peelers or paste tomatoes," Leathers said.
Paste is used for Prego spaghetti sauce, Pace picante sauce, tomato juice, V-8, tomato soup and more, Leathers said.
Diced tomatoes also are used for different soups like vegetable beef, and Chunky-label soups. And don't forget the well loved Franco-American SpaghettiOs, he said.
In addition, Campbell makes Pepperidge Farms products and Godiva chocolate, Gruenwald said.
Last year, Campbell debuted its first organic tomato juice.
"This is our first foray into organic for Campbell's, and we have increased four-fold our organic products this year," he said. "We're excited about it."
***
Up to 220 trailers laden with tomatoes trundle into the plant per day under the watchful eye of Mike McEver, plant manager.
"From the time they deliver the tomatoes, they're processed in four to six hours," McEver said. "Everything we run is extremely fresh."
Tomatoes are transported to a conveyer belt that moves up to the top tier of the plant and are washed in a flume. Tomatoes bob up and down under the assault of spraying water until the dirty water is washed away.
After the tomatoes are moved to a secondary flume to be washed yet again, the next step is the conveyer belt, where workers wearing white aprons, white hair nets and latex gloves pick out stems, sticks or whatever bypassed the flumes that's not a tomato.
The next processing step is the "Hot Break System" level, where paste is made.
"Tomato paste is pure tomato with the water taken out," McEver explained. "A raw tomato is about 5 percent solid. We increase the concentration by removing the water five fold."
It takes two hours to make paste, with highly trained personnel monitoring a computerized control panel with gauges and temperatures readings. Heaters bring the tomatoes up to 200 degrees for sterilization, he said.
Next, the paste is transferred into another section of the plant, where it is pumped into wooden bins lined with a layer of plastic and covered with heavy plastic with a thick, metallic coating. Each bin holds about 300 gallons of paste, or 2,900 pounds per bin.
Again, quality and sanitation are critical. Gruenwald said when the empty bins come in, they don't even touch the ground.
The paste is pumped into a vacuum-sealed container holding the processed tomato paste and the final step before shipping is to put a silver seal to plug the filled bin. The plant also processes about 600,000 to 700,000 pounds of diced tomatoes a day.
The ingredient is destined for four major soup plants Campbell has in the U.S. - Sacramento; Paris, Texas; Napoleon, Ohio; and Maxton, N.C.
***
Tomatoes destined for dicing run up a conveyer belt and fall bouncing into a computer controlled container with high speed cameras. The cameras identify the green tomatoes and plastic paddles swat the green tomatoes out.
Next, they're steamed to remove the skins.
"The steam makes the peels soft," McEver explained. "By the time they head down the conveyer belt, we hope we have no more peels."
Along this conveyer belt, a line of employees in the standard net caps, ear plugs, aprons and gloves check the tomatoes for scraps of peel.
"There's always going to be a little that gets by, but not much. We have our standards to meet," McEver said.
Maria Vera, 44, works the conveyer belt checking for stray peels. An employee with Campbell for 15 years, she said she's held other jobs but enjoys coming back to Dixon each year.
"This is the best place to come - right here," she said.
And the hard work isn't a problem, she added. "I like it here. It's easy."
Gruenwald said the plant has a low turnover of employees.
"We try to make a good working environment for them, and we appreciate their talent," Gruenwald said. "It's nice to have talented and experienced people return every year."
Like Lab Manager Teresa Aguilera, 50, who is working her 20th season at Campbell. She said the seasonal job is perfect for her because it allows her to be with her children most of the year.
"I love it here," Aguilera said. "It's nice to come back here and work a couple months out of the year."
The lab is the last stop for the processed tomatoes, which come in small, vacuum sealed silver bags.
"The lab is like a scorekeeper, it tells us how we're doing," McEver said.
Gruenwald said Campbell has been putting tomatoes in a can since 1869.
"They learned early on about quality," he said. "We have a tracking system that allows us to track the tomatoes all the way from the field to the lab."
MeEver said there are occasions where the tomatoes have to be recycled or - a worst case scenario - destroyed. But not often, he said.
"We focus on quality because we want to be proud of what we've got," McEver said.
Barbara Smith can be reached at business@thereporter.com.
AT A GLANCE
Campbell Soup Company
World headquarters: Camden, N.J. 2003 sales: $6.7 billion
Founded: 1869, by Joseph Campbell, an icebox manufacturer
In 1904, the cherubic Campbell Kids were introduced on trolley car advertisements, and the "M'm! M'm! Good" jingle made its way to television in American homes in the 1950s.
Products: Sold in 120 countries around the globe
Operations: Canada, Latin America, Europe, Asia and Australia
This year: Campbell Soup Company celebrates its 50th year of listing on the New York stock exchange, while the Campbell Kids turn 100.
Comfort Suites going up in Cordelia Ranch
July 24, 2004
Comfort Suites going up in Cordelia Ranch
By Matthew Bunk
FAIRFIELD -- A hotel going up on Pittman Road in Green Valley will be one of the first structures at the Cordelia Ranch Commercial Center, a 10-building development plotted to someday include nine other businesses.
The mostly-undeveloped Cordelia Ranch covers the entire block surrounded by Pittman Road and Central Avenue.
The hotel, a Comfort Suites, will hold 67 guest rooms, a meeting room and a breakfast area. It also will have an exercise area and an outdoor pool and spa.
The hotel property will include 11,000 square feet of landscaping, with evergreens, Siberian elms and purple leaf plum trees, and enough parking for 68 cars. The hotel building will be 40,000 square feet.
A gazebo will greet guests at the main hotel entrance, which will be designed with colored and textured concrete on the ground under an overhanging facade. The building's exterior will be stucco and wood trim.
The hotel is expected to be the largest building in Cordelia Ranch. Two retail shops to the west will have a combined 24,000 square feet of operating space. A convenience store, two fast-food establishments, three restaurants and an office will take up smaller spaces along Central Avenue north of the hotel property.
The office building will be 9,500 square feet, and two of the restaurants will be more than 5,000 square feet.
Comfort Suites is part of Choice Hotels International, a chain of eight hotel brands that include Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, MainStay Suites, Econo Lodge and Rodeway Inn. It's a public company traded on the New York Stock Exchange under the symbol CHH.
Do you drive by a construction project each day and you don't know what it is? Call Matthew Bunk at 425-4646 Ext. 267 or e-mail him at mbunk@dailyrepublic.net and let him know what construction project has caught your eye.
Comfort Suites
Address: 315 Pittman Road
Cost: $3.5 million
Owner: Sam Patel
Sunday, July 25, 2004
Solano County decided to lease 45,500 square feet on Executive Court North Providian site
Solano takes Providian site
A sizable vacancy left by Providian Financial when it closed its Fairfield office was filled when Solano County decided to lease 45,500 square feet on Executive Court North.
"This office space was previously occupied by Providian Financial as part of its Fairfield campus, which employed 1,200 people," said Brooks Pedder, a broker for Colliers International, who with his partner, Garrett, represented Garaventa Properties and Solano County.
"The county lease goes a long way toward stabilizing the local office market and economy in the wake of Providian's departure," Pedder said.
A sizable vacancy left by Providian Financial when it closed its Fairfield office was filled when Solano County decided to lease 45,500 square feet on Executive Court North.
"This office space was previously occupied by Providian Financial as part of its Fairfield campus, which employed 1,200 people," said Brooks Pedder, a broker for Colliers International, who with his partner, Garrett, represented Garaventa Properties and Solano County.
"The county lease goes a long way toward stabilizing the local office market and economy in the wake of Providian's departure," Pedder said.
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