Businesses pinched as commercial rents soar in Southland
By Roger Vincent, Times Staff Writer
March 10, 2007

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Sizzling demand for offices, warehouses and retail space is hitting Southern California and other major urban centers. That is resulting in smaller cubicles and longer commutes for workers, higher prices for consumers and closure of businesses unable to meet landlords' demands for higher rent.

Office rents have climbed more than 25% on average in the last three years in much of Los Angeles County. In some of Orange County's thriving office parks, rents have risen by more than 50% in that period, with the Irvine Spectrum posting the region's biggest average jump, at nearly 57%, according to a recent report from real estate brokerage Cushman & Wakefield.

Rents on hot retail strips such as Melrose Avenue, Rodeo Drive and Robertson Boulevard have more than doubled in the last two years.

Vacancies have plunged to well below 10% in many areas, making it harder for businesses to find space. Only 3% of the region's industrial space — used for warehouses and factories — is available, a level that is considered drastically low.

Shoe store operator Young Moon shuttered the Santa Monica branch of his O' My Sole chain in December when his rent went up and said he planned to boost prices as much as 6% at his seven other Southern California stores this year to help meet higher rent charges.

"Rents are too high," he said.

While the residential real estate market has flattened, a strong global economy is boosting demand worldwide for space for offices, warehouses, retailers and other businesses. In Southern California the market is particularly tight, in part because of a lack of available land and regulations that have made it difficult for developers to construct office or industrial buildings.

Surging international trade through the region's ports is pushing up demand for warehouses to hold and distribute goods.

In the Inland Empire, where relatively more raw land is available for construction, hundreds of thousands of square feet of warehouse and distribution buildings are being built every year — and nearly all of them are leased or sold.

"There is no historical precedent for this," said broker Jim Center of commercial real estate firm Grubb & Ellis.

Faced with a rent increase of about 60% to keep his offices near Ontario Airport, Carlos Lacambra was prompted to search for new digs to house the 160 workers at his branch of A-Check America, a business that does background checks and drug tests for employers.

After a long search, he moved the office in January into a rented building in east Riverside that he expects to eventually buy.

The move came at a cost in personnel, however. As he had feared, almost a third of his employees quit because the additional 20-mile commute from Ontario to Riverside was too far for them. He paid bonuses to some workers to stay on longer while he hired replacement employees in Riverside.

"We lost some very good people we wanted to keep," Lacambra said. The move "was a calculated risk we had to take."

Higher rents also are the result of economic redevelopment that is transforming some neighborhoods into more upscale shopping and entertainment venues. The waves of change that swept through Santa Monica and Old Pasadena years ago are now being felt in other older districts such as Hollywood, Culver City, Alhambra and downtown Los Angeles.

Shopkeepers in many of these changing retail districts are feeling pinched.

Even though the family-style Italian fare at Jay Handal's San Gennaro Cafe made it one of the most popular restaurants in Culver City, Handal shut down the eatery a few months ago when his landlord nearly tripled the rent as his lease expired.

"I couldn't afford it," he said.

Moving into San Gennaro's space will be a more upscale, all-organic restaurant run by celebrity caterer Akasha Richmond.

"There is going to be an attrition factor," said Handal, who also operates a restaurant in Brentwood. "Small business today is being squeezed out of the market. You're not going to have many family-friendly community restaurants — only big guys with deep pockets."

In Hollywood, storefront food joints as well as longtime shopkeepers who sell knickknacks to tourists are giving way to high-end bars and boutiques. An outlet of Hamburger Hamlet, a Hollywood Boulevard mainstay, closed last month and will be replaced by trendy Swedish apparel retailer H&M.

Neighborhood activists will rally next week in Larchmont Village to try to prevent the loss of a popular restaurant and other local businesses threatened by rising rents.

In Culver City, the city spent more than $60 million over the last decade on public improvements largely intended to attract new restaurants and businesses, said Kellee Fritzal, economic development administrator.

The plan appears to have worked. Demand among merchants is high enough that average store rents have jumped from $1.85 per square foot per month to $4.50 in the last three years.

Rents across the region are going higher for other reasons too. Because property values have been rising with increased sales, property taxes have more than doubled on many buildings in recent years. Most leases allow landlords to pass those higher costs along to tenants.

Rents also are rising because investors with deep pockets have scooped up vast collections of buildings with the expectation that businesses will continue to expand and values will continue to rise. Just last month, for example, Los Angeles developer Maguire Properties Inc. announced it would pay almost $2.9 billion for 24 office buildings in Orange County and downtown Los Angeles. Maguire and other buyers are expected to raise rents to recoup some of their investments.

Maguire executive Bill Flaherty predicted that landlords in downtown L.A. office buildings would soon boost rents by double digits, following a pattern set in the last two years as available office space dwindled in Orange and San Diego counties.

"When rents increase, they increase in a spike," Flaherty said. "Absolutely, rents are going to go up."

Rents here are still lower than in such dense urban centers as New York, San Francisco, London and Tokyo. But that is no consolation for businesses such as Blue Shield of California. Facing a rent increase, the health insurer decided to leave its prominent tower along the San Diego Freeway in Westchester for less expensive offices nearby on Sepulveda Boulevard by June. The move will save 30% in real estate costs over the next seven years, Blue Shield spokeswoman Elise Anderson said.

"We are a not-for-profit industry, and with rising healthcare costs, every penny matters, even our real estate overhead," she said.

For landlords in the months ahead, the trick will be to figure out how high they can raise rents before tenants shun their buildings. Brokers said some landlords might have to lower their asking prices in a few months if they don't find enough tenants willing to pay the new rates.

"The market will take care of itself," said broker Rafael Padilla at Par Commercial. And some tenants are never going to be happy, he added. "I have yet to meet a tenant who is not complaining about what they are paying."

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Good Bye Mom & Pop joints....

U-Haul Names Los Angeles as Top 2006 Destination

PHOENIX, March 14, 2007 (PRIME NEWSWIRE) (PRIMEZONE) -- U-Haul, celebrating more than 60 years of serving the do-it-yourself household moving industry, today released results of the 2006 U-Haul National Migration Trend Report titled "Top 50 U.S. Destination Cities Report." According to moving data reflective of nationwide statistics for calendar year 2006, Los Angeles takes the No. 1 spot, while Houston remained in number two position for the second year in a row. Atlanta, Ga. ranked No. 3, while Chicago, Ill. dropped to fourth, down from last year's top rank. Sacramento, Calif. followed in fifth place, down three spots from last year's ranking. Orlando, Phoenix, Dallas, Baltimore and Tampa rounded out the top 10.

U-Haul President John "J.T." Taylor said, "Over the past 60 years U-Haul has built a long and proud history of relocating Americans. Now more than ever, consumers are relying on U-Haul to provide affordable services. We are proud to be able to offer an economical way for families to move."

The ranking reflects destinations for movers traveling more than 50 miles, and considers every city in the country, regardless of size. However, the data is not stated as a percentage of population and is not reflective of overall growth.

The 2006 Top 50 U.S. Destination Cities Report was compiled from over 1.62 million

U-Haul transactions occurring between Jan.1 and Dec. 31, 2006.

Since 1945, U-Haul has been the undisputed choice for the do-it-yourself mover, with a network of more than 15,400 locations in all 50 United States and 10 Canadian provinces.

U-Haul has the largest truck rental fleet in the world, with more than 93,000 trucks, 80,675 trailers and 33,500 towing devices. U-Haul also has been a leader in the storage industry since 1974, with more than 380,000 rooms and more than 33.5 million square feet of storage space at more than 1,050 owned and managed facilities throughout North America. U-Haul is the consumer's number one choice as the largest installer of permanent trailer hitches in the automotive aftermarket industry, and is the largest distributor of propane across North America.

Note to editors: The annual mileage of North American U-Haul trucks would move a family to the moon and back more than seven times per day, every day of the year.


U-Haul Top 50 U.S. Destination Cities*
January - December 2006

1. LOS ANGELES, Calif. 26. WASHINGTON, D.C.
2. HOUSTON, Texas 27. ANAHEIM, Calif.
3. ATLANTA, Ga. 28. KANSAS CITY, Mo.
4. CHICAGO, Ill. 29. SAN ANTONIO, Texas
5. SACRAMENTO, Calif. 30. NASHVILLE, Tenn.
6. ORLANDO, Fla. 31. COLUMBUS, Ohio
7. PHOENIX, Ariz. 32. FORT LAUDERDALE, Fla.
8. DALLAS, Texas 33. INDIANAPOLIS, Ind.
9. BALTIMORE, Md. 34. NEW ORLEANS, La.
10. TAMPA, Fla. 35. BOSTON, Mass.
11. DENVER, Colo. 36. SAN FRANCISCO, Calif.
12. JACKSONVILLE, Fla. 37. PITTSBURGH, Pa.
13. DETROIT, Mich. 38. RALEIGH, N.C.
14. PHILADELPHIA, Pa. 39. BROOKLYN, N.Y.
15. LAS VEGAS, Nev. 40. OKLAHOMA CITY, Okla.
16. SEATTLE, Wash. 41. MANHATTAN, N.Y.
17. MIAMI, Fla. 42. CINCINNATI, Ohio
18. SAN DIEGO, Calif. 43. FAYETTEVILLE, Ark.
19. PORTLAND, Ore. 44. TUCSON, Ariz.
20. SAN JOSE, Calif. 45. RIVERSIDE, Calif.
21. FALLS CHURCH, Va. 46. FREDERICKSBURG, Va.
22. FORT WORTH, Texas 47. VAN NUYS, Calif.
23. AUSTIN, Texas 48. MEMPHIS, Tenn.
24. CHARLOTTE, N.C. 49. NORFOLK, Va.
25. RICHMOND, Va. 50. SAINT LOUIS, Mo.


* Data compiled from over 1.62 million transactions from January -
December, 2006.

L.A. plan could raise stakes for condo projects
The council tentatively approves a proposal to double and triple payouts to tenants evicted for conversions.
By Steve Hymon and Francisco Vara-Orta, Times Staff Writers
April 5, 2007

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After hearing from a nearly packed chamber of feisty tenants and anxious landlords, the Los Angeles City Council on Wednesday voted to dramatically raise the relocation fees that condominium developers must pay before kicking out residents of rent-controlled apartments.

The move, which doubled some and nearly tripled other current fees, marked a significant escalation in the condo conversion wars that have swept the city over the last five years — particularly on the pricey Westside — as a dwindling stock of affordable housing has been rapidly outpaced by a growing middle-class population.

Even after more than three hours of debate, several council members acknowledged that the city still needs a broader housing policy and must build more units.

"I can name a lot of people who in all honestly, even with relocation fees, will not be able to move and live in the same community that they have for years," Councilwoman Wendy Greuel said. "And that's what gets to our heartstrings."

Putting a human face on the debate were dozens of tenants who spent the day at City Hall. Among them was Esther Escamilla, who lives with her husband and two children west of downtown in a $466-a-month apartment slated for conversion. Her husband makes only about $600 a month buying used cars and selling the parts.

"Our whole life is rooted here," said Escamilla, 42. "My kids are used to going to the schools in the area. My husband and I love living here…. We can barely make ends meet as it is. They told us there is nothing we can do."

The public testimony reached an apex when Hollywood resident Kerby Norris — soon to be forced from her apartment — tearfully pleaded "Help me!" to the council as she clutched the hand of her 9-year-old, Matthew.

The council voted 9 to 5 for the new fees, which range from $6,810 to $17,080. They all agreed the fees should be raised, but were divided because the new law would allow developers to adjust relocation fee amounts based on variables such as age, length of tenancy and income. Voting against were Greuel, Eric Garcetti, Janice Hahn, Tom LaBonge and Bill Rosendahl.

Landlords and developers had lobbied for that provision, fearing they might have to pay a high set fee to tenants who could afford to accept less.

About 61% of L.A. residents are renters, and there are about 600,000 rent-controlled units in the city. About 12,000 apartments have been converted to condos or demolished since 2001, with the Westside and the area around Studio City hardest hit. Tenant complaints reached such a pitch last year that the council agreed to look at policies that might slow the pace without discouraging development.

Los Angeles has had a law on the books since 1981 that allows the council to deny a condo conversion permit based on several conditions. After city lawyers told the council last year they weren't enforcing the law because of concerns over its legality, the council ordered them to begin using it.

In deciding to set fees based partly on a tenant's income, the council majority ignored protests from the city's planning chief, housing chief and members of the Planning Commission, all of whom supported a simpler, fixed structure.

Planning Director Gail Goldberg, for example, said that when she ran the planning agency in San Diego, officials decided to get rid of the so-called means-based approach because it was difficult to administer and mediate tenant-landlord disputes.

Because the fee hikes did not pass with at least 10 votes, a second vote will be required next week. The measure is expected to again pass.

The current relocation fees are $3,450 for most tenants and $8,550 for those who are 62 or over, disabled or have minor dependent children. If the law is approved next week and Mayor Antonio Villaraigosa signs it, the new fees would take effect in late May. A Villaraigosa spokesman said that the mayor won't decide whether to sign the law until the second council vote.

The fee hikes approved Wednesday are:

‧ $6,810 to tenants who have lived in their apartments less than five years (or $14,850 for those older, disabled or with minor children).

‧ $9,040 to tenants who have lived in their apartments more than five years (or $17,080 for those older, disabled or with minor children).

‧ From $9,040 to $17,080 to tenants whose income is 80% or below the area's median income — $55,450 for a family of four, regardless of the length of tenancy.

Under the new plan, building owners will be required to hire relocation assistance providers to ensure tenants get the proper amount. Developers would pay a fee to cover the cost of disputes the city ends up mediating.

Councilman Herb Wesson said the new fees were a good compromise because tenants and building owners each got some of what they wanted.

"Generally, when that happens it's a sign that you're close to doing the right thing," he said.

Also Wednesday, council members delayed voting on a law that would give them the power to slow condo conversions by denying developers a permit to demolish buildings.

Last summer Councilman Bill Rosendahl asked for a moratorium on conversions in his 11th District, which includes the hot real estate markets of Brentwood, West Los Angeles, Venice, Playa del Rey and Pacific Palisades. Rosendahl's motion has yet to be scheduled for a hearing in the housing committee.

Among developers, response to the fee increases has been mixed. Some building owners have complained loudly that rent control keeps them from making any money, and the higher fees are so burdensome they won't be able to convert to condos. Others, however, said the new assessment system would prevent developers from having to give large amounts of money to short-term tenants.

Kate Bartolo, a vice president in the development firm the Kor Group, said the new system is very fair and will serve more of the city's neediest residents.

"We're trying to give more money to people who stayed [in rent-controlled apartments] longer because they are the ones who are going to have the biggest sticker shock when trying to find a new apartment," she said.

Goldberg, the city's planning chief, said the solution probably involves providing incentives to developers to build apartments for the middle class.

Larry Gross, executive director of the Coalition for Economic Survival, believes the new fees are a plus for low-income tenants, but the city should do more to preserve existing affordable housing until more is created.

"Otherwise, we're just spinning our wheels," he said.

Also attending was Kathryn Mendelson, 61, who has lived for 27 years in a Silver Lake apartment near Glendale Boulevard and Waverly Drive.

The building was sold last year, and Mendelson is being evicted from her $624-a-month unit. She is mildly hopeful that the higher relocation fees will help her buy a home.

"Silver Lake is a hot spot, and the owners know that they can get a lot of money for it," she said.

"Developers are going to have to stop gouging tenants," she said, "and tenants have to understand that the landlords are under a lot of pressure to not only make ends meet, but get a profit to meet market price demands."

Relocation fees

To help tenants move from rent-controlled units, landlords would pay them:

‧ From $6,810 to $14,650 if they lived there less than five years.
‧ From $9,040 to $17,080 if they lived there more than five years.
‧ From $9,040 to $17,080 if their income is 80% or less of $55,450 for a family of four.

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Developer says housing policy is a fixer-upper
The challenge to L.A.'s affordable-unit demand may trigger more fights.
By Amanda Covarrubias, Times Staff Writer
April 7, 2007

Los Angeles' push to have developers set aside portions of new residential projects for below-market-rate housing is facing a showdown at City Hall this month, with the outcome likely to shape the city's future housing policy.

In recent years, Los Angeles has gradually increased the percentage of units that developers must set aside for moderate-income residents.

Now, a developer is pushing back after the city ordered it to reserve 25% of the 438 units planned at a Warner Center apartment complex — the largest set-aside the city has ever required.

The resolution of the issue could have major implications not only for city policy, but, ultimately, also for the availability of housing for middle-class workers.

The average monthly rent in the city has nearly doubled in the last 12 years and now stands at about $1,700. About 13,000 below-market housing units were built in L.A. over the last six years.

But during that same period, about 11,000 below-market apartments were either torn down or converted into condos, according to a study by the Southern California Assn. of Non-Profit Housing.

The idea behind the city's "inclusionary housing" rules, officials say, is to allow people who work in an area but might not be able to afford market rents — such as teachers, shopping mall employees and police officers — to live near their jobs.

When a development opens, the first renters for the below-market units must work nearby and meet the economic qualifications.

Last year the City Council approved an ordinance requiring new housing developments in the fast-growing Warner Center area of the west San Fernando Valley to set aside 25% of the units.

Councilman Dennis Zine, who represents the area, said the goal was to prevent Warner Center from turning into "another Century City," where many people who work in the office towers, schools and shops cannot afford to live nearby.

"We've got to maintain the livelihoods for working people so they don't have to move to Lancaster and Palmdale and spend $2 to $3 a gallon on gas to drive the freeways every day," he said. "It's a quality-of-life issue. I want hard-working people to be able to afford a residence in Los Angeles."

Average rents in Warner Center range from about $1,800 to $2,200 a month. Under the city's rules, units set aside for inclusionary housing in the district would rent for $1,463 for a one-bedroom unit and $1,674 for a two-bedroom.

But Simms Commercial Development is demanding that the city reduce the 25% requirement, arguing that it is onerous and that officials have never proved that such set-asides reduce traffic. Additionally, Simms wants L.A. to drop a $1-million fee for the project that the city would use to lessen the impact of traffic the development is expected to generate.

The developer said setting aside such a large portion of the complex for below-market housing sets a bad precedent.

"If they do 25% in Warner Center, then they can do 25% … in other areas of the city," said Ben Reznick, an attorney for Simms. "Economically, it's more bearable if you do 10% of a project. Then it can still be done."

Housing advocates and some council members worry that if Simms prevails, it will prompt other developers to challenge their workplace housing requirements.

"It's going to send the wrong message and make it harder for those who look at the bigger picture and who are trying to provide affordable housing in this city," said Councilman Ed Reyes, who represents parts of the Eastside.

Two years ago, Reyes proposed a citywide inclusionary housing policy that would have required developers to set aside some below-market units in most new apartment and condo complexes. But the idea stalled amid opposition from developers and others.

So today officials consider inclusionary housing set-asides primarily on a development-by-development basis (there are a few places where specific percentages are required, including parts of downtown and coastal areas). In some cases, the city encourages builders to reserve more units for below-market rents by allowing them greater density for their projects, said Jane Blumenfeld, principal city planner.

Some projects have as little as 5% of units set aside. But most new larger downtown L.A. housing projects must include 20% affordable housing.

Two highly publicized projects — the Hollywood & Vine mixed-use development and the Grand Avenue Project designed by Frank Gehry — have a 20% set-aside.

Affordable housing has become an issue in many parts of L.A. in recent years. Workers in some of the city's more affluent areas, such as the Westside and West Valley, complain that they cannot afford to live near their workplaces, forcing them into punishing commutes.

Wrestling with the ongoing affordable-housing problem, the City Council earlier this week approved sweeping new rules designed to aid renters who lose their apartments when the owners convert them to condos.

The reduced-rate housing in Warner Center would be available to people earning 120% or less of the county's median family income, which is roughly $58,000 for a single person and $83,000 for a family of four.

But in its appeal to the City Council, Simms questions whether the set-asides would actually reduce traffic. The developer noted that under the rules, any units that are unoccupied after four months can be rented to anyone who meets the income requirements, regardless of where they work.

Councilman Jack Weiss, who sits on the planning and land use committee, said the developer might have a point.

"I'm a strong supporter of additional affordable housing in Los Angeles," said Weiss, who represents parts of the West Valley and Westside. "But it would hurt the cause if the city did something contrary to the law and later it was overturned by a court."

Some housing advocates believe a lot is riding on the outcome of the Warner Center fight.

If Simms prevails, "one would have to question all the talk about needing to produce affordable housing in the city as hollow words," said Larry Gross, executive director of the Coalition for Economic Survival, an advocate for low-income housing.

Reznick, the attorney for Simms, said the debate is about whether the city is trying to boost its affordable housing numbers on the backs of developers.

He said other builders support the appeal but are "afraid to speak up" for fear that their projects will be jeopardized.

If the City Council approves Simms' request, Zine said, he will push for a moratorium on new development in Warner Center until a new specific plan for the office, apartment and shopping district is completed.

"We're asking developers to have a little compassion and not build, build, build," he said.

Safest Cities in the Nation

The FBI says the safest place in the country is Irvine, down in Orange County. The FBI measured violent crime rates in cities with more than 100, 000 residents.
For the third year in a row Irvine came out on top. Compared to 2005, violent crimes there dropped by 17%.
Four other California cities made the top 10 list; Sunnyvale came in fifth, Thousand Oaks is seventh, Simi Valley is ninth, and finally is Santa Clara at number 10.

Safest Cities in the Nation

The FBI says the safest place in the country is Irvine, down in Orange County. The FBI measured violent crime rates in cities with more than 100, 000 residents.
For the third year in a row Irvine came out on top. Compared to 2005, violent crimes there dropped by 17%.
Four other California cities made the top 10 list; Sunnyvale came in fifth, Thousand Oaks is seventh, Simi Valley is ninth, and finally is Santa Clara at number 10.

Good to know that we have some of the safest cities in our metro.

so whats the worst?

Probably Compton...

nope, Compton is not the worst. its usually Gary Indiana, East St. Louis, somewhere in Miami or in New jersey.

no no, i mean in greater los angeles

Then I'am almost sure it's Compton.

oh in that case, i guess it would be. although its not THAT Bad, ive been there during the evening for work and it wasnt horrible, still wouldnt want to live there, but i think its exaggerated a bit.

I agree I worked there for 2 1/2 years and it's not that bad... Of course it's not a place I would live either.

World's most expensive cities
Moscow wins again, with London as runner up. New York drops five places to No. 15, while San Francisco plunges 20 places to No. 54, according to Mercer's 2007 survey.
By Jeanne Sahadi, CNNMoney.com senior writer
June 18 2007: 5:01 PM EDT

NEW YORK (CNNMoney.com) -- If your boss wants to transfer you to Moscow this year, he'd better offer you a fair sum to do so - or even a downright handsome one depending on where you live now. That's because Moscow has just been designated the world's most expensive city for the second year in a row by Mercer Human Resource Consulting.

Using the cost of living in New York as a base, Mercer determined Moscow is 34.4 percent more expensive after taking into account the cost of housing, transportation, food, clothing, household goods and entertainment.

World's most expensive cities 2007
1. Moscow
2. London
3. Seoul
4. Tokyo
5. Hong Kong
6. Copenhagen
7. Geneva
8. Osaka
9. Zurich
10. Oslo
11. Milan
12. St. Petersburg (Russia)
13. Paris
14. Singapore
15. New York City
16. Dublin
17. Tel Aviv
18. Rome
19. Vienna
20. Beijing
Source:Mercer

"The appreciation of the ruble against the U.S. dollar, combined with ever-increasing accommodation charges, has driven up costs for expatriates in Moscow," Mercer research manager Nathalie Constantin-Metral said in a statement.

A luxury two-bedroom in Moscow now rents for $4,000 a month; a CD costs $24.83, and an international newspaper, $6.30, according to Mercer. By comparison, a fast food meal with a burger is a steal at $4.80.

London takes the No. 2 spot, up from No. 5 a year ago, thanks to higher rents and a stronger British pound relative to the dollar. Mercer estimates London is 26 percent more expensive than Gotham these days.

Following closely on London's heels are Seoul and Tokyo -- Nos. 3 and 4, respectively -- both of which are 22 percent more expensive than New York, while No. 5 Hong Kong is 19 percent more costly.

On the opposite end of the spectrum, Asuncion in Paraguay is ranked as the world's least expensive city for the fifth year running. Mercer estimates that to live in Asuncion costs half as much as it does to live in New York.

Among North American cities, New York and Los Angeles are the most expensive and are the only two to rank in the top 50 of the world's most expensive cities. But both have fallen in their rankings since last year's survey -- New York came in 15th, down from 10th place, while Los Angeles fell to 42nd from 29th place a year ago. San Francisco came in a distant third at No. 54, down 20 places from a year earlier.

Toronto, meanwhile, ranks as Canada's most expensive city but fell 35 places to take 82nd place worldwide.

In Latin America, Sao Paulo and Rio de Janeiro are still the most expensive cities, coming in at Nos. 62 and 64 worldwide. In Australasia, Sydney is the priciest place to live and ranks No. 21 worldwide. In the Middle East, Tel Aviv takes the cake, coming in at No. 17 globally, while in Africa, Accra in Ghana will cost you the most. It ranks No. 76 worldwide.

Irvine among the fastest-growing cities in the nation
Four Southland cities make the list, according to the latest census numbers.
By Anna Gorman, Times Staff Writer
June 28, 2007

Seven California communities made this year's ranking of the 25 fastest-growing big cities in the country, according to statistics released today by the U.S. Census Bureau.

Lancaster ranked 10th in the country, with a population of nearly 141,000 — up 5% over the previous year.

"We're really the last area in L.A. County that has space to grow," said Steve Malicott, president and chief executive of the Antelope Valley Chambers of Commerce. "We have room and a lot of it."

Other cities on the list included Bakersfield, Visalia, Irvine, Fontana, Elk Grove and Palmdale.

The statistics are based on residential construction in cities with populations of 100,000 or more from July 1, 2005, to July 1, 2006, said Greg Harper, a Census Bureau demographer.

Lancaster city officials said affordable homes and a business-friendly environment have fueled the rapid growth.

"When you look at us overall, we pretty much have it going on," said Mayor Henry Hearns, who also is a pastor at a church east of Palmdale. "The word has gotten out. People who want to move out to California think that this is a good place to raise a family."

Lancaster has numerous sports fields. And it is well placed for recreation, with the beach, mountains, ski resorts and desert all within a two-hour drive.

City officials are holding town hall meetings and inviting residents to give their input on the area's future.

Among the goals are to continue reducing crime and to attract more high-paying jobs, so that tens of thousands of residents will not have to commute from the Antelope Valley to jobs elsewhere in Los Angeles County.

"If we can keep those people here and off the highways, their quality of life will be better," Malicott said.

Though several of the fastest-growing cities were in Southern California, a few were in the Central Valley and one was in the northern part of the state.

Elk Grove, a community near Sacramento that ranked first last year, was 24th.

"The lower the better," Mayor James Cooper joked.

The city has a population of more than 129,000, up more than 3% over the previous year. Cooper said it has been difficult keeping up with new residents moving into the city. In a unique effort, the streets, parks and schools of one new community are being built before the homes.

"Developers didn't like it, but the public did," Cooper said.

He said the area is very popular with families. More than 15,000 children participate in youth sports, he said. In fact, he said, residents have complained that there are too few city parks with sports fields.

The rapid growth in Bakersfield, with a population of more than 308,000, also has created challenges, City Manager Alan Tandy said. About 3,600 homes were constructed last year, he said, straining the city's roads and schools.

Tandy said the city received a large federal grant earmarked for transportation projects two years ago and was developing a loop freeway system around the city to alleviate congestion. The schools and the city had to charge the residents additional fees to help cover costs.

Nevertheless, Tandy said, the city welcomes newcomers and has opened a sports arena and an outdoor amphitheater, as well as approving new restaurants, to make the area more livable.

"There has been a lingering reputation that we have had since the 1950s," he said. "It's no longer accurate…. We have actually become a very desirable community."

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Fastest-growing U.S. cities

Seven California cities ranked among the fastest-growing in the U.S., according to the latest census numbers.

Population estimates for cities with more than 100,000 people.
Population Percent increase
Rank City 7/1/06 since 7/1/05
1 North Las Vegas, Nev. 197,567 11.9%
2 McKinney, Texas 107,530 11.1
3 Port St. Lucie, Fla. 143,868 9.9
4 Cape Coral, Fla. 151,389 8.1
5 Gilbert, Ariz. 191,517 7.8
6 Grand Prairie, Texas 153,812 6.6
7 Peoria, Ariz. 142,024 5.8
8 Cary, N.C. 112,414 5.1
9 Denton, Texas 109,561 5.1
10 Lancaster 140,804 5.0
11 Fort Worth 653,320 4.8
12 Joliet, Ill. 142,702 4.8
13 Miami 404,048 4.5
14 Bakersfield 308,392 4.3
15 Raleigh, N.C. 356,321 3.9
16 Chandler, Ariz. 240,595 3.8
17 Baton Rouge, La. 229,553 3.8
18 Henderson, Nev. 240,614 3.7
19 Visalia, Calif. 113,487 3.7
20 Irvine 193,956 3.5
21 Fontana 170,099 3.4
22 Orlando, Fla. 220,186 3.3
23 Laredo, Texas 215,484 3.1
24 Elk Grove, Calif. 129,184 3.1
25 Palmdale 138,790 3.1
Source: U.S. Census Bureau

Listing of $125 Million
Could Set U.S. Record

By Ben Casselman
From The Wall Street Journal Online

A Los Angeles mansion modeled on Versailles and other French palaces has just gone on the market for $125 million, tying it for second place among available U.S. properties.

Suzanne Saperstein, the recently divorced wife of Texas millionaire David I. Saperstein, owns the 45,000-square-foot estate, known as Fleur de Lys. Records indicate the couple bought the roughly five-acre lot near Beverly Hills in the 1990s and spent five years building the home. It has Italian marble walls, French limestone floors, gold-embossed leather wall coverings and gold-leaf crowned moldings, according to the property listing. Rooms include a ballroom with ceiling frescoes, a library with a first-edition book collection, two kitchens and a screening room with seating for 50. A pool house has a full kitchen, a massage room and a gym. Also on the property: a three-bedroom manager's house, staff quarters for 10, a nine-car garage and a 3/4-mile jogging track.

Suzanne Saperstein is asking $125 million for her 45,000-square-foot Los Angeles estate. The asking price ties it for second place among currently listed U.S. properties.

Ms. Saperstein, 46 years old, recently finalized her divorce from Mr. Saperstein, who founded Metro Networks, the nation's largest provider of traffic reports until its sale to Westwood One in 1999 for $900 million in stock.

The listing's price tag is lower than Saudi Prince Bandar bin Sultan's ranch in Aspen, Colo., listed for $135 million, but matches Donald Trump's $125 million listing for a Palm Beach mansion. The price easily exceeds California's previous record for a listing price, $75 million, currently held by two Los Angeles-area properties. A deal for Ms. Saperstein's home could break the record for a U.S. single-family house, believed to be financier Ronald Perelman's 2005 sale of his Palm Beach estate for about $70 million.

Joyce Rey, head of Coldwell Banker's Previews division, and Robert Kass of Windermere Real Estate have the listing.

ON THE MARKET: THE BEVERLY HOUSE, FORMER MANSION OF NEWSPAPER TYCOON WILLIAM RANDOLPH HEARST AND ACT
$165,000,000
Beverly Hills listing most expensive in nation
By Annette Haddad, Times Staff Writer
July 10, 2007

The rich are getting richer, and their properties are getting pricier.

The 1920s-era Beverly Hills mansion of William Randolph Hearst and Marion Davies was put on the market Monday for $165 million, making it the nation's most expensive residential listing.

The pink stucco, H-shaped estate, dubbed Beverly House by the late newspaper magnate, is spread across 6.5 acres north of Sunset Boulevard. It has just about everything a billionaire could want — including three swimming pools, 29 bedrooms, a state-of-the-art movie theater and even a disco.

The compound boasts six separate residences — four houses, an apartment and a cottage for the security staff.

"This is the kind of home that comes on the market once in a generation," said Jeff Hyland, a Beverly Hills real estate broker and author of "The Estates of Beverly Hills."

The seller, attorney-investor Leonard M. Ross, bought the property in 1976 and is now seeking "a lifestyle change," said his real estate broker, Stephen Shapiro.

The asking price surpasses the $155 million being sought by developers of an estate in Montana's Big Sky country, and the $135-million price of an Aspen, Colo., compound being sold by Prince Bandar bin Sultan of Saudi Arabia.

In the last two years, six U.S. residences have come on the market with nine-digit price tags, according to Rick Goodwin, publisher of Ultimate Homes magazine, an annual compendium of the world's hottest properties.

Yet, so far, no U.S. home sale has broken the $100-million mark. (None of the six noted by Goodwin has sold.) The record remains the $94 million paid by former telecom mogul Gary Winnick for a Bel-Air estate in 2001.

"It's only a matter of time" before the record falls, Goodwin predicted.

With its breathtaking asking price, the latest Beverly Hills listing adds more luster to the region's Platinum Triangle, the neighborhoods of Beverly Hills, Bel-Air and Holmby Hills, where the pace of multimillion-dollar sales has outshone the rest of Southern California's slumping housing market.

From January to May, the number of homes in the Platinum Triangle that sold for at least $10 million more than doubled compared with the year-earlier period. In contrast, Los Angeles County overall saw a 19% decline in sales for the same period.

New homeowners in the Platinum Triangle include actor Tom Cruise and his actress wife, Katie Holmes, Amazon.com Chief Executive Jeff Bezos and soccer star David Beckham and his wife, Spice Girl Victoria Beckham.

Experts say the high-end trend reflects the growing ranks of the wealthy, who so far have been immune from the troubles besetting the lower rungs of the housing market.

"There are many more people with much more money, and they are all chasing the elusive 'great estate' that is hard to find," said Shapiro, co-owner of Westside Estate Agency. "And they are especially hard to find in an area like this that's completely built out."

Built in 1927 for banker Milton Getz, the estate was designed by Gordon Kaufmann. Kaufmann was also the architect of the nearby Greystone mansion, considered by many to be the finest home in Beverly Hills.

Hearst bought the Getz property in 1947, paying about $120,000. He promptly moved in his paramour, Davies, as well as life-size paintings of the actress and statues from the gardens of his landmark Hearst Castle in San Simeon.

The power couple were renowned for their frequent parties attended by the toast of Hollywood, politicians and media bigwigs.

But Hearst's time at the compound was short-lived. He died there in 1951 at the age of 88.

Davies married movie extra Horace Brown 10 weeks after Hearst's death and continued to play host to the glitterati.

John F. Kennedy and his bride, Jacqueline, spent part of their honeymoon at the estate in 1953, and later returned when the mansion was used as the West Coast headquarters for Kennedy's presidential campaign.

Davies died in 1961 and Brown subdivided and sold the property in 1966.

Ross, the current owner, bought it in 1976 and restored the structures, gardens, fountains and bought back some of the subdivided acreage.

The estate was used in the film "The Godfather," including for a scene in which a movie producer awakens to find a severed horse's head in his bed.

The house was on the market 20 years ago with an asking price of $25 million, one of the highest listings of the time, but was taken off the market without being sold.

Until Monday, the highest-priced local listing was the $125 million sought for the Beverly Hills estate known as Fleur de Lys, which came on the market in April and is located a mile from the former Hearst mansion.

"It's nice to see L.A. get into the high-end luxury game this way," Goodwin said. "L.A. has not only just become the game but is the leading player."

Still, Goodwin said he was holding off any celebration until there was a "sold" sign in sight. It's not unusual for multimillion-dollar properties to take years to find the right buyer.

"It's all fun and interesting, but the real excitement will be the day when something sells for $100 million or more," he said.

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(INFOBOX BELOW)

Homes with prices through the roof

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The priciest home listings in the United States:

$165 million: Beverly House, the Beverly Hills estate built in 1927 and once owned by newspaper magnate William Randolph Hearst



$155 million: 32,000-square-foot lodge dubbed the Pinnacle under construction on 160 acres in Big Sky, Mont.

$135 million: Aspen, Colo., vacation home of Saudi Prince Bandar bin Sultan, former ambassador to the U.S.

$125 million: Palatial estate known as Fleur de Lys in Holmby Hills

$125 million: Six-acre oceanfront estate in Palm Beach, Fla., owned by Donald Trump

$100 million: 210-acre Nevada property with its own

private trout-filled lake and views of Lake Tahoe

60 million Californians by mid-century
Riverside will become the second most populous county behind Los Angeles and Latinos the dominant ethnic group, study says.
By Maria L. La Ganga and Sara Lin, Times Staff Writers
July 10, 2007

Over the next half-century, California's population will explode by nearly 75%, and Riverside will surpass its bigger neighbors to become the second most populous county after Los Angeles, according to state Department of Finance projections released Monday.

California will near the 60-million mark in 2050, the study found, raising questions about how the state will look and function and where all the people and their cars will go. Dueling visions pit the iconic California building block of ranch house, big yard and two-car garage against more dense, high-rise development.

But whether sprawl or skyscrapers win the day, the Golden State will probably be a far different and more complex place than it is today, as people live longer and Latinos become the dominant ethnic group, eclipsing all others combined.

Some critics forecast disaster if gridlock and environmental impacts are not averted. Others see a possible economic boon, particularly for retailers and service industries with an eye on the state as a burgeoning market.

"It's opportunity with baggage," said Jack Kyser, chief economist for the Los Angeles County Economic Development Corp., in "a country masquerading as a state."

Other demographers argue that the huge population increase the state predicts will occur only if officials complete major improvements to roads and other public infrastructure. Without that investment, they say, some Californians would flee the state.

If the finance department's calculations hold, California's population will rise from 34.1 million in 2000 to 59.5 million at the mid-century point, about the same number of people as Italy has today.

And its projected growth rate in those 50 years will outstrip the national rate — nearly 75% compared with less than 50% projected by the federal government. That could translate to increased political clout in Washington, D.C.

Southern California's population is projected to grow at a rate of more than 60%, according to the new state figures, reaching 31.6 million by mid-century. That's an increase of 12.1 million over just seven counties.

L.A. County alone will top 13 million by 2050, an increase of almost 3.5 million residents. And Riverside County — long among the fastest-growing in the state — will triple in population to 4.7 million by mid-century.

Riverside County will add 3.1 million people, according to the new state figures, eclipsing Orange and San Diego to become the second most populous in the state. With less expensive housing than the coast, Riverside County has grown by more than 472,000 residents since 2000, according to state estimates.

But many residents face agonizingly long commutes to work in other areas. And Monday, the state's growth projections raised some concerns in the Inland Empire.

Registered nurse Fifi Bo moved from Los Angeles to Corona nine years ago so she could buy a house and avoid urban congestion. But she'd consider moving even farther east now that Riverside County is grappling with its own crowding problems.

"But where am I going? People used to move to Victorville, but [housing prices in] Victorville already got high," the 36-year-old said as she fretted about traffic and smog and public services stretched thin. "We don't know where to go. Maybe Arizona."

John Husing, an economist who studies the Inland Empire, is betting that even in land-rich Riverside County, more vertical development is on the horizon. Part of the reason: a multi-species habitat conservation plan that went into effect in 2005, preserving 550,000 acres of green space that otherwise would have vanished.

"The difficult thing will be for anybody who likes where they live in Riverside County because it's rural," Husing said. "In 2050, you might still find rural out by Blythe, but other than that, forget rural."

Husing predicts that growth will be most dramatic beyond the city of Riverside as the patches of empty space around communities such as Palm Springs, Perris and Hemet begin to fill in with housing tracts. The Coachella Valley, for example, will become fully developed and seem like less of a distinct area outside of Riverside, he said. "It'll be desert urban, but it'll be urban. Think of Phoenix," he said.

Expect a lot of the new development in Riverside County to go up along the 215 Freeway between Perris and Murrieta, according to Riverside County Planning Director Ron Goldman. Thousands of homes have popped up in that area in the last decade, and Goldman said applications for that area indicate condominiums are next. The department is so busy that he's hiring 10 people who'll start in the next month.

"We have over 5,000 active development applications in processing right now," he said.

No matter how much local governments build in the way of public works and how many new jobs are attracted to the region — minimizing the need for long commutes — Husing figures that growth will still overwhelm the area's roads.

County's property tax rolls hit $1-trillion mark
By Susannah Rosenblatt, Times Staff Writer
July 10, 2007

Steady single-family home sales last year amid the Los Angeles area's limited mid-priced housing supply helped push the county's property tax assessment rolls over the $1-trillion mark for the first time, officials said in a report to be released today.

The county's 2006 assessed value grew by 9.3%, or $88 billion, over the previous year, despite widespread anxiety over a real estate slowdown.

The increase — above the county's average annual growth of about 7% in the last three decades — "kind of reinforces that property values in Los Angeles County are really not going down, and are at least stable at this point in time," Assessor Rick Auerbach said.

The bulging county coffers mean more money for city, county and school programs, Auerbach said.

However, a sluggish overall real estate market dampened growth of the county's assessed value, compared with the previous year's increase of 11%, Auerbach said.

"It's the year-to-year [changes] in the long term you always have to keep your eye on," said David E. Janssen, the county's chief executive.

Swelling property tax revenue enables the county to be more competitive in hiring nurses, sheriff's deputies and other hard-to-fill posts, add jail beds and expand anti-gang efforts, Janssen said.

"It does fund modest increases in a number of high-priority areas," he said. He expects the downward trend in property tax assessment growth to continue, projecting a 5% increase next year.

Auerbach noted that, under 1978's Proposition 13, a home in California is reassessed only when purchased by a new owner or new construction on the property takes place. Last year, each property that changed hands in the county led to an average increase of $356,000 in assessed value, more than in 2005.

"The economy is really good in Los Angeles County, especially when you compare it to other parts of California," Auerbach said. "This year we're just not feeling that same slowdown."

However, 2006 information "still reflects the last of the boom in real estate," said Jack Kyser, chief economist for the Los Angeles County Economic Development Corp. "It also reflects a red hot" commercial real estate market, he said, even as home sales have come to a "crashing halt" compared with the boom of several years ago.

The cooling of the housing market at the end of last year will probably mean the 2007 property tax rolls "won't look nearly as robust," Kyser said. He cautioned local governments not to rely too much on property tax revenue to fund public programs as real estate growth slows further.

Kyser expects that the lackluster housing market will persist through the start of 2009.

As usual, the city of Los Angeles — by far the largest in the county — had the fattest tax rolls; Long Beach, Torrance, Santa Clarita and Glendale rounded out the top five. Dramatic development in the high desert led to huge jumps in assessments for Lancaster, Palmdale and Santa Clarita.

The county's assessment rolls include 2.3 million parcels and about 300,000 pieces of business equipment, boats and airplanes. The county receives about a third of property tax revenue, cities get a quarter, school districts take 20%, and community redevelopment areas and special districts combined receive 20%.

In spite of the housing market's downturn, the county's economic future looks promising, Auerbach said. In terms of property tax assessments, he said, "We still believe there will be a substantial increase next year."

--

(INFOBOX BELOW)

Breaking a trillion

The assessed value of property in Los Angeles County increased by more than $88 billion last year, though the rate of growth was down slightly from the year before.

Los Angeles County assessed value

(In billions)

2000: $577.4
2007: $1,005.9

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Highest valued cities

(In billions)

1. Los Angeles: $383.8
2. Long Beach: $42.0
3. Torrance: $22.2
4. Santa Clarita: $21.5
5. Glendale: $21.4
6. Santa Monica: $21.2
7. Pasadena: $18.9
8. Beverly Hills: $18.2
9. Burbank: $16.9
10. Carson: $12.7

--

Cities with greatest percent change (2006)

1. Lancaster: 21.1%
2. Paramount: 17.2%
3. Palmdale: 15.7%
4. Santa Clarita: 13.6%
5. Compton: 13.6%
6. Calabasas: 13.1%
7. Westlake Village: 12.8%
8. Hermosa Beach: 11.9%
9. Hawaiian Gardens: 11.6%
10. Hawthorne: 11.5%

Northrop gets $91M Army deal

Northrop Grumman Corp. has received a $91 million contract from the U.S. Army for more than 300 of the company's Lightweight Laser Designator Rangefinder systems, the company said Monday.

The order is part of a previously announced $336 million indefinite-delivery, indefinite-quantity contract for lightweight laser designator rangefinder components.

The systems are designed to target enemy positions during the day, at night and in nearly all battlefield conditions and can recognize targets, calculate grid coordinates and provide the information to other battlefield systems, among other things, according to Northrop.

Work will be done in Apopka, Fla., and is expected to be complete by 2009.

Los Angeles-based Northrop (NYSE: NOC) is a global defense and technology company.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/07/30/daily1.html?surround=lfn

Ducommun earnings, revenue up in 2Q

Ducommun Inc. reported an increase in both revenue and earnings in its second quarter, due primarily to an increase in commercial sales.

Sales in the quarter were $91.1 million, up from $77.5 million in the year-ago period. Net income was $4.6 million, or 44 cents a share, up from $3.2 million, or 31 cents a share, in the year-ago period. The company's mix of business was about 60 percent military, 37 percent commercial and 2 percent space.

For the first six months of the fiscal year, the company reported $179.2 million in sales, up from $149.6 million in the year-ago period. Net income was $8.4 million, or 80 cents a share, in the first six months of 2007, compared to $5.9 million, or 58 cents a share, in the year-ago period.

Los Angeles-based Ducommun Inc. (NYSE: DCO) provides engineering and manufacturing services to the aerospace and defense industry.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/07/30/daily2.html?surround=lfn

OSI Systems gets new credit facility

OSI Systems Inc. has entered a new credit facility with Wachovia for about $90 million to replace its previous $67 million domestic credit facility, the company said Monday.

The new credit facility includes a term loan of about $45 million and about $45 million in a revolving line of credit. OSI also has the ability to increase the overall credit facility to $100 million, the company said. Several of OSI's foreign subsidiaries maintain independent bank lines of credit in addition to the new facility, OSI said.

Hawthorne-based OSI Systems (NASDAQ: OSIS) provides electronic systems and components for applications in industries like homeland security, healthcare, defense and aerospace.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/07/30/daily3.html?surround=lfn

Gkkworks buys Sacramento firm

Gkkworks, an architecture and construction management firm with five California offices, has acquired CCS Group, a Sacramento company that provides capital improvement master planning for community college districts in California.

Financial tems were not disclosed.

The acquisition will allow Irvine-based Gkkworks direct access to community college projects from initial planning of capital improvement through design and completion, according to a news release. A major client base for Gkkworks is the education sector.

CCS Group will retain its name.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/07/30/daily5.html?surround=lfn

Powerwave sales down in 2Q

Powerwave Technologies Inc. reported a decrease in sales and a net loss in its second quarter, due partially to restructuring charges.

The company reported $185.6 million in net sales, down from $219.6 million in the year-ago period. Powerwave reported a net loss of $44.5 million, or 34 cents a share, in the quarter, compared to net income of $12.1 million, or 9 cents a share, in the year-ago period. The current period included $11.2 million in restructuring and impairment charges and $7.7 million of intangible asset amortization.

For the first six months of the fiscal year, Powerwave reported sales of $349.3 million, down from $401.4 million in the year-ago period. Total net loss for the six month period was $91.7 million, or 70 cents a share, compared to net income of $9 million, or 8 cents a share, in the year-ago period.

Santa Ana-based Powerwave Technologies (NASDAQ: PWAV) is a global supplier of end-to-end wireless solutions for wireless communications networks.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/07/30/daily7.html?surround=lfn

ValueClick Stock Battered After Earnings

By ALLEN P. ROBERTS Jr.

Shares of ValueClick lost nearly one quarter of their value Monday after the company lowered its 2007 guidance and announced second-quarter results that fell short of Wall Street expectations.

ValueClick reported net income of $18 million (17 cents per share), a 22 percent increase from the same period a year earlier. Analysts surveyed by Thomson Financial were expecting 18 cents a share.

Revenue for the Westlake Village-based online advertising firm rose 14 percent to $149 million. But that was well short of Wall Street’s forecast of $159 million. The shortfall was due to declines in the promotion-based business, the company said.

“The promotion-based sector suffered a downturn that began in late May and became more pronounced in June, which negatively impacted our quarter,” said Chief Executive Tom Vadnais.

The company also lowered its full-year earnings guidance to between 74 cents to 76 cents per share on revenue of $645 million to $660 million. ValueClick previously said it expected earnings of between 79 cents and 81 cents a share on revenue of $655 million to $665 million.

All of this comes less than two weeks after the company said it is buying comparison shopping Web site company MeziMedia for up to $352 million. It also comes as shares of ValueClick were boosted earlier this year after Google, Microsoft and Yahoo all bought online advertising firms – which led investors to bid up shares of ValueClick thinking it would be the next to be acquired. No deal happened.

Shares in ValueClick plunged 24 percent to $19.76 in afternoon trading Monday on the Nasdaq. Shares are down more than 48 percent since hitting a 52-week high of $36.70 in May.

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Source: http://www.labusinessjournal.com/article.asp?aID=0815088.5432424.1507220.72436702.4073468.998&aID2=115931

Broader Defaults Rock Countrywide

REAL ESTATE: Growth can’t offset meltdown’s spread to prime.

By DANIEL MILLER
Los Angeles Business Journal Staff

It looks like Angelo Mozilo’s trusty crystal ball was a bit cloudy.

Two months ago, the longtime chief of Countrywide Financial Corp. made a bold move for market share amid the downturn in the housing market. The company dove into the pool of laid-off mortgage workers, hired 2,000 employees and announced plans for 100 retail outlets across the country – just six months after it had cut more than 3,000 jobs, mostly in its subprime operation.

Mozilo’s move paid off – to a point.

The Calabasas lending giant’s business is growing. Its overall market share is expected to grow to 17 percent in the fourth quarter from its current 16.3 percent, according to analysts.

The growth in market share helped prop up the company’s revenue, but it still fell 15 percent to $2.55 billion.

The problem? Mozilo didn’t foresee this: higher delinquency rates even among borrowers with good credit.

Countrywide helped trigger a plunge in the Dow and talk of a recession last week when it missed its quarterly numbers. The company reported a 33 percent drop in net income to $485 million largely driven by the higher than expected loan losses.

Wall Street was shocked to hear that the percentage of Countrywide customers with good credit who were delinquent on their loans rose to 4.6 percent for the quarter, up from less than 2 percent a year ago.

The delinquencies were blamed on looser underwriting standards, adjustable rate mortgages resetting at higher rates and falling home prices, which make it harder for struggling borrowers to refinance or sell their homes at a profit.

“The mortgage market continues to deteriorate beyond Countrywide’s expectations,” wrote Goldman Sachs analyst James Fotheringham in a research note last week.

Mozilo, 68, who co-founded Countrywide in 1969 and has helped steer it through booms and busts to become the nation’s No. 1 mortgage lender, wasn’t entirely blind to the issue of underwriting standards.

He moved months ago to shore up Countrywide’s own finances by tightening lending standards amid a rapid rise in delinquencies and defaults among subprime borrowers who have the poorest credit histories. Still he was blindsided, like many experts, by the depth of the housing downturn.

“We are experiencing home price depreciation almost like never before, with the exception of the Great Depression,” said Mozilo during a call with analysts, whose average second quarter revenue forecasts the company missed by a dime.

Earnings forecast

The rising delinquencies prompted Countrywide to lower its 2007 guidance to a range of $2.70 to $3.20 per share, from $3.50 to $4.30 per share.

However, with the housing market entering uncharted waters it’s unclear whether even those new numbers can be trusted.

The last time California and the nation experienced such a downturn in the housing market it accompanied a recession, driven by the reduction in defense spending after the sudden end of the Cold War. But this time the underlying economy is relatively healthy, though now worries are starting to build that the soft housing market could drag down the entire economy.

The National Association of Realtors expects that the median U.S. home price will fall 1.4 percent to $218,800 this year. That would be the first national decline since the Great Depression, according to Bloomberg News.

At this point, given the proliferation of exotic mortgages with adjustable rates even among prime borrowers, no one is sure when that decline will end. Rising delinquencies and default rates would drag down home prices even further by adding even more product to an already saturated home market.

“This has always been the wild card out there that we have been unsure of because we never had so many of these exotic mortgages. There is a lot of uncertainty out there,” said Delores Conway, director of the Casden Forecast at the University of Southern California Lusk Center for Real Estate. “As interest rates have moved up, (homeowners) are having difficulty making payments and they are having difficulty refinancing because the qualification criteria have tightened since last year.”

Moreover, Countrywide is in an especially difficult situation because about 45 percent of its portfolio is in California, which was home to some of the hottest housing markets. Those markets have long since turned south, led by the Inland Empire where foreclosure rates are through the roof.

Last week, DataQuick Information Services, a La Jolla housing data firm, released figures that showed foreclosures in the state had reached a record high, with 17,408 homes in foreclosure, an increase of almost 800 percent from a year ago. The rate also topped the previous record set in 1996 when the state’s previous housing slump reached its nadir.

The uncertainty over the housing market and the rising delinquencies has squelched rumors that had been circulating around Wall Street that Countrywide may be on the block. And for now at least, analysts who cover Countrywide are about evenly split on its stock. Seven analysts rate it a buy, five rate it a sell and six rate it a hold, according to Bloomberg News.

Analyst Paul Miller of Friedman Billings Ramsey & Co. Inc. downgraded the company last week to “under perform” from “market perform” until the current state of the mortgage market becomes clearer.

But with Countrywide having a nearly 20 percent share of the nation’s mortgage market, he noted in his research that “We still view (the company) as the ‘best of breed’ in the space.”

Countrywide did not return calls for comment.

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Source: http://www.labusinessjournal.com/article.asp?aID=5542928.4412655.1505595.6585454.4573284.146&page=2

Local Lenders Have Rollercoaster Day

By ALLEN P. ROBERTS Jr.

Shares in two area lenders hit three-year lows Monday after Wall Street reacted to American Home Mortgage Investment Corp.’s decision to suspend its dividend. The company said some of its lenders want their money back.

Calabasas-based Countrywide Financial Corp. dipped 58 cents, or 1.9 percent Monday to $29.27. This comes less than a week after reporting a 33 percent drop in profit due to growing defaults and waning demand due to a sluggish housing market. Shares in the nation’s largest mortgage lender hit a three-year-low of $28.25 during the trading day. In after-hours trading, the stock sunk to $28.97. Shares in Countrywide are down more than 33 percent since February.

Shares in IndyMac Bancorp also hit a three-year low of $20.36 during the trading day, but rebounded to close at $21.69. Still, that was down $1.40 or 6 percent for the day. However, shares of IndyMac gained it all back in after-hours trading, gaining $1.40 to $23.09. Shares in the Pasadena-based lender are down 53 percent since the beginning of the year.

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Source: http://www.labusinessjournal.com/article.asp?aID=95429237.2103214.1507259.5442489.7216044.962&aID2=115934

Saw this posted on SSP, and I didn't see it here. As China's economic influence grows with each year, I think it will be interesting to see it's going to affect LA, being the main gateway to the Pacific Rim for the US.

L.A.-China Paper Trail
By RICHARD CLOUGH - 6/18/2007
Los Angeles Business Journal Staff

Los Angeles County is no paper tiger when it comes to international trade.


Led by such paper exporters as America Chung Nam Inc. and Allan Co., the county accounts for almost 40 percent of American exports to China, which have swelled in recent months in the face of China’s torrid economy.


As China threatens to supplant Japan as the third-largest U.S. export market, local companies are finding that China’s appetite for everything from old paper to chemicals to semiconductors is on the rise.


“The Chinese standard of living is improving,” said Stephen Young, president of Baldwin Park-based Allan Co. “When the standard of living improves, the use of paper increases two- or three-fold.”


The Journal of Commerce this month released its rankings of the top exporters in the country, with 19 Los Angeles area companies making the list. Young’s company was the second-largest local exporter by bulk in 2006, sending almost 100,000 shipping containers – each about the size of a school bus and each packed with paper – out of the ports of Los Angeles and Long Beach.


The company came in just behind City of Industry-based America Chung Nam, which has for several years been the largest exporter by bulk in the nation. The paper the companies send to China is used to make cardboard and similar packaging, for the most part.


And while paper companies are the face of local exports to China, their product is by no means the only one going to China. Plastics, chemicals, metals and textiles have all been hot commodities, and some of the fastest growing sectors are technology, environmental products and medical equipment.


“China is by far our hottest export market,” said Dan Griswold, director of the Center for Trade Policy Studies at the Cato Institute, a Washington-based libertarian think tank. While imports from China still dwarf exports, U.S. exports to China have been increasing an average of 24 percent each year for the past five years, according to Cato’s figures.


“The obsession is with what the Chinese are selling us, but what a lot of (people) don’t appreciate is the tremendous opportunities for California and U.S. companies to sell into the Chinese market,” Griswold said.


China’s booming economy has been marked by a shift from an export orientation to a more consumerist approach. Last year, the United States exported $55 billion of goods to China – $21 billion of which came from L.A. County. And while Los Angeles’ imports saw a modest increase in 2006 over the previous year, the county’s exports to China grew by a staggering 32 percent.


“It just blows our exports to Canada and Europe out of the water as far as the growth trend,” Griswold said.


And the growth is having spillover effects for some local companies.


Chatsworth Products Inc., a Westlake Village company that designs and manufactures storage and security equipment for the information technology industry, is one of the companies benefiting from growth in a related sector.


Joe Weber, director of international sales for the manufacturer, said as large IT companies like Intel Corp. and Microsoft Corp. grow their business in China and build data centers, companies like Chatsworth Products see their exports to the country rise dramatically.


“As the Chinese market opens up we have more and more U.S.-based multinationals landing there, and we’re following them,” Weber said. “We follow them to be able to service their needs.”


He said the company’s revenue in the Asia Pacific region has increased almost 300 percent in the past couple of years.


China’s economic prosperity has also allowed more local companies to export fully assembled products, which breaks from the traditional model of companies sending raw materials to the country. Torrance-based Pelican Products Inc., which makes durable cases and flashlights, assembles its products in its local facility and ships them from there. The company has been greatly expanding its business in China, opening an office there in March.


Lyndon Faulkner, Pelican chief executive, is eager to point out that his company’s business model of finishing products in America to ship to China “is the opposite of how it usually works.”


Thirty percent of the company’s revenue now comes from international sales.


The Los Angeles and Long Beach ports handle the majority of the exports to Asia – a point which, while a boon to the American economy, is making some forecasters nervous. A report released last month by the Boston Consulting Group predicts that the “explosive” growth of U.S.-China trade will overwhelm West Coast ports within the next few years.


“North American ports and rail systems are beginning to choke, and delays and uncertainties are increasing,” the report said. “The longer Western management teams wait to sort out their China strategies, the greater the risks their companies face.”


As U.S.-China trade expands, more companies are looking to break into the Chinese market – or expand their existing China presence – in nontraditional regions, said Vance Baugham, president of the World Trade Center Association, Los Angeles-Long Beach, a group that assists local companies as they pursue international markets. More companies, he said, are looking to export to second-tier cities like Nanjing and Shenyang, rather than immediately going for Beijing or Hong Kong, and those alternative markets are very willing to accept American products.


“That second tier of cities in China – they seem to be more aggressive in importing U.S. products,” Baugham said. “They represent almost half of all Chinese imports. This is something we’ve noticed in the last year or so.”

Canyon Capital, Angelides Start With $250M

LOS ANGELES-Locally based Canyon Capital Realty Advisors and former California treasurer Phil Angelides have formed a new venture to acquire land throughout the US for mixed-use projects, with an emphasis on smart growth developments. Angelides tells GlobeSt.com that the new venture, called River Canyon, has committed $250 million to get started and is "ready to go" when it finds the right sites.
"The initial commitment is $250 million, but we all feel confident that we will have the capacity and the capital to be as far-reaching as we choose," Angelides tells GlobeSt.com. He says that the new venture will have "a fairly broad mandate," both geographically and in terms of the types of investments it will make.

The venture will be looking at land in regions like the Pacific Northwest, California, the Southwest and the Southeast, focusing on "markets across the US where we see projected job growth and population growth." It will acquire land directly, invest with existing land owners and "possibly make investments in companies that own land," Angelides says.

The former state treasurer, who ran unsuccessfully for California governor last year, says that the new JV will be looking at sites that can accommodate residential and a mix of other uses "in urban regions that are in the path of growth." The residential component will most likely include single-family and multifamily uses, and the mixed-use will likely include retail and office components.
The River Canyon venture will include two Canyon Capital entities, Canyon Capital Realty Advisors and Canyon Capital Advisors, which together have more than $16.5 billion in assets under management. The other partners in the venture are both firms associated with Angelides.

One of the other two is Riverview Capital Investments, owned and headed by Angelides, who formed the firm this year after returning to private life. The other is River West Investments, owned and headed by Brian Vail, who was a partner with Angelides in the company before Angelides exited River West to take state office.

Angelides comments that the emphasis on smart growth will be part of the new venture's intent to "do projects that make sense from an environmental standpoint." The JV will consider both entitled and unentitled property, but will consider an unentitled site "only if it makes sense from a planning perspective," he says.

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Source: http://www.globest.com/news/959_959/losangeles/162691-1.html

Hilton Reports a Solid Second Quarter

By ALLEN P. ROBERTS Jr.

Hilton Hotels Corp. reported solid second quarter numbers boosted by higher demand in most major markets as well as a 16 percent boost in management and franchise fees.

Hilton’s second quarter net income was $165 million (40 cents per share), a 15 percent hike from $144 million (35 cents) in the same period a year earlier. The earnings beat analysts’ expectations of 33 cents per share, according to a poll conducted by Thomson Financial.

Revenue for the Beverly Hills-based hotel owner and operator also climbed 4 percent to $2.1 billion, a little ahead of Wall Street’s forecast of $2.07 billion.

Hilton also withdrew its previous full-year outlook and said it is not issuing new guidance due to its pending $26 billion acquisition, announced in early July, by private equity firm the Blackstone Group.

Shares in Hilton rose 17 cents to $44.70 in afternoon trading Tuesday on the New York Stock Exchange.

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Source: http://www.labusinessjournal.com/article.asp?aID=62505391.4121823.1507376.4645451.8830791.338&aID2=115943

Shares Soar as CBRE Doubles Profit

By ALLEN P. ROBERTS Jr.

Shares in CB Richard Ellis Group Inc. gained more than 5 percent Tuesday after the company reported it had more than doubled profit and increased revenues more than 60 percent during the second quarter.

CBRE reported second quarter net income $141 million (59 cents per share), a 120 percent jump from $64 million (27 cents) for the same period a year earlier. According to a poll by Thomson Financial, analysts were expecting 42 cents per share.

Revenue for the El Segundo-based real estate firm increased 65 percent to $1.5 billion. The company credited the strong earnings to a 56 percent boost in revenue from operations in the Western Hemisphere, which was in large part due to the $1.9-billion acquisition of Dallas-based Trammell Crow late last year.

Revenue from operations in Europe and Asia were also up 72 percent and 40 percent, respectively.

Shares in CBRE were up $1.84, or 5.2 percent, to $37.24 in afternoon trading Tuesday on the New York Stock Exchange.

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Source: http://www.labusinessjournal.com/article.asp?aID=820963303.3703014.1507428.6377951.970507.292&aID2=115947

IndyMac Up on Surprising Earnings

By ALLEN P. ROBERTS Jr.

Despite reporting that its profit had been cut in half, shares in IndyMac Bancorp Inc. surged more than 15 percent Tuesday after the lender reported better-than-expected second quarter earnings.

IndyMac reported second-quarter net income of $45 million (60 cents per share), a 57 percent drop from $105 million ($1.49) from the same period a year earlier. But the results beat Wall Street’s expectations of 54 cents per share, according to Thomson Financial.

IndyMac also reported that total mortgage production fell 12 percent to $23 billion for the second quarter, reflecting the slumping demand for home loans.

Declining performance also led to a large jump in repurchase demand from Wall Street. Investors who buy mortgages originated by IndyMac can demand they be repurchased if the loans default shortly after they are made. IndyMac, which sells the bulk of its loans to investors, faced repurchase requests of $221 million during the second quarter, up from $71 million from the same period last year but down from $527 million in the first quarter of 2007.

IndyMac said earlier this year that it plans to scale back its subprime lending, but expects to capture some business lost by subprime lenders that have closed their doors. The lender also announced earlier this month that it had cut 400 jobs in an effort to cut costs.

While shares in IndyMac had a rollercoaster day yesterday, they bounced back Tuesday, gaining $3.31, or 15 percent, to $25 and continued to rise in afternoon trading on the New York Stock Exchange.

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Source: http://www.labusinessjournal.com/article.asp?aID=41566627.3378543.1507454.2554001.306901.177&aID2=115949

Northrop to buy back 6.5M shares, open National Work Force Center in W. Va.

Northrop Grumman Corp. entered an accelerated share repurchase agreement with JPMorgan Chase Bank, NA, London branch, the company said Tuesday.

Northrop separately announced that it planned to establish a National Work Force Center in West Virginia as part of an initiative to provide technology centers within the United States as an alternative to off-shoring.

Under the $500 million share repurchase agreement, Northrop repurchased 6,483,402 shares of its stock from JPMorgan Chase for $77.12 per share. JPMorgan Chase will buy the same number of shares in the open market and the companies will work out a price adjustment based on the volume weighted average price of the shares JPMorgan buys, according to a release.

After the share repurchase deal, Northrop expects to have less than $100 million remaining in its existing $1 billion share repurchase authorization that was announced in December 2006. Including the share repurchase announced today, Northrop has repurchased 14.5 million shares of its common stock for $1.1 billion in 2007, and has bought back about 67.6 million shares for $4.1 billion since it began repurchasing programs in August 2003.

Northrop's National Work Force Center plan is subject to final assessments and negotiations, the company said, and the assessments are currently being conducted within the I-79 high technology corridor through Wheeling, West Virginia. Northrop said it plans to hire about 50 new full-time employees for information technology jobs in West Virginia to support the company's projects across the country. Northrop said it will expand into other functional areas and disciplines in the future.

Los Angeles-based Northrop (NYSE: NOC) is a global defense and technology company.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/07/30/daily9.html?surround=lfn

Jacobs awarded three contracts

Jacobs Engineering Group Inc. announced three contracts Tuesday, one from the Indian Oil Corp. Limited, one from Slavneft-Yanos for a refinery upgrade in Russia, and one from British Energy Generation.

Indian Oil Corp. Limited
Jacobs received a contract from Indian Oil Corporation Limited for project management and engineering, procurement and construction management services for a 2.2 million tons per annum diesel hydro treatment project that will be located at the company's refinery in the state of Gujarat, India.

The project has a total investment cost of about $200 million and is scheduled to be complete in three years. Terms of the deal were not disclosed. Jacobs will provide project management and provide residual process design, detailed engineering, procurement, construction management, and startup and commissioning support. The work will be managed and executed by Jacob's office in Mumbai, India.

Russian refinery upgrade project
Jacob's subsidiary Jacobs Consultancy UK Ltd. has recieved a contract from Slavneft-Yanos to provide consulting support for a development program at a refinery in Yaroslavl, Russia.

Terms of the deal were not disclosed. The company plans to upgrade the 300,000 barrels per stream day refinery by converting the residue into "high-value products that meet European specifications", Jacobs said.

British Energy Generation
Jacobs has recieved a 5-year contract from British Energy Generation to help it deliver its asset improvement program. The contract is also extendable by two years.

BE owns and operates eight nuclear and one coal-fired power station in the U.K., it generates about oen-fifth of the nation's power needs.

Jacobs will act as a strategic partner to British Energy Projects Division as part of the deal, and will take responsiblity for asset improvement at five sites. The company will take on major projects and plant replacemetn work through BE's asset improvement program. Terms of the deal were not disclosed.

Pasadena-based Jacobs (NYSE: JEC) provides technical, professional and construction services globally.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/07/30/daily11.html?surround=lfn

Lionsgate signs deal with Kathy Smith

Lionsgate has signed a multi-year partnership deal for the North American distribution rights to Kathy Smith's line of fitness DVDs, the company said Tuesday.

Terms of the deal were not disclosed. The studio is scheduled to release two new Kathy Smith titles later this year. Smith has sold more than 16 million fitness DVDs and each of her more than 35 titles has reached platinum or gold status, according to a Lionsgate release.

Santa Monica-based Lionsgate (NYSE: LGF) is an independent filmed entertainment studio.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/07/30/daily13.html?surround=lfn

National Technical Systems wins Army testing contract

National Technical Systems Inc. has received a contract from the U.S. Army to test insensitive munitions, the company said Tuesday.

Insensitive munitions are "munitions that will not detonate under any conditions other than their intended mission to destroy a target," National Technical Systems said in a release. Terms of the deal were not disclosed.

Calabasas-based National Technical Systems (NASDAQ: NTSC) offers integrated testing, certification, quality registration, systems evaluation and IT staffing services to the aerospace, defense, information technology and high technology markets.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/07/30/daily14.html?surround=lfn

Gateway goes east

Computer maker Gateway is looking for a foothold in Eastern Europe. The company says it is partnering with Tesco to sell Gateway computers in the Czech Republic, Hungary and Slovakia.

Terms of the deal were not disclosed.

Gateway will also provide service and support to its customers in Eastern Europe through its existing European call center, the company said in a release.

Irvine-based Gateway (NYSE: GTW) is the third largest PC company in the United States.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/07/30/daily16.html?surround=lfn

'Shrek' boosts DreamWorks earnings

DreamWorks Animation SKG Inc. reported an increase in both revenue and earnings in its second quarter, due mostly to the performance of "Shrek the Third", the company said Tuesday.

The company reported revenue of $222.5 million, up from $74.9 million in the year-ago period. Net income was $61.8 million, or 60 cents a share, up from $13.7 million, or 13 cents a share, in the year-ago period.

"Shrek the Third" contributed about $109.1 million in revenue in the quarter, primarily from box-office receipts in the quarter. The movie had the biggest domestic opening for an animated film in the history of the movie industry, according to a DreamWorks release. "Over the Hedge" contributed about $26.9 million in revenue, driven by its release in the home video market and on pay television, while "Flushed Away" contributed $12.4 million.

Glendale-based DreamWorks (NYSE: DWA) develops and produces computer generated animated feature films.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/07/30/daily17.html?surround=lfn

Cornerstone Buys 174,000-SF Complex for $58M

By Bob Howard

WEST COVINA, CA-Cornerstone Real Estate Advisors of Hartford has acquired a 174,065-sf office complex called the Lakes from Los Angeles-based Ten West Associates LLC for $58 million, according to Madison Partners. Bob Safai, principal at L.A.-based Madison, reports that Cornerstone bought the property on behalf of a Los Angeles pension fund client.
The Lakes complex consists of twin L-shaped, multi-tenant, class A buildings at 1000 and 1050 Lakes Dr. Safai says that Cornerstone was one of nine bidders on the property, which closed at a 5.5% cap rate.

The complex was 98% occupied at closing. The tenant roster includes Wells Fargo Bank, one of the largest tenants at the complex, which recently renewed its lease.

The Lakes complex sits on a site of nearly 6.2 acres of extensively landscaped land, which includes two man-made lakes surrounded by a lawn and fountains. The twin four-story buildings were built in 1990.
According to Safai, the San Gabriel Valley has been gaining momentum as a hot market for investment properties and the Lakes complex is the top office asset in that market. With its location close to major transportation routes, West Covina gives residents access to regional, national and international markets. Safai notes that vacancy rate in the San Gabriel Valley office submarket stands at approximately 7%.

Safai says that part of the popularity of the San Gabriel Valley submarket is that it offers "the amenities of a big-city location without the traffic congestion and high cost." The Lakes occupies a landmark location along the Interstate-10 Freeway, 20 minutes from Ontario International Airport and 30 minutes from the Burbank-Glendale-Pasadena Airport.

The Lakes office complex is also located close to the Lakes Entertainment Center, which is home to a host of restaurants. The office property is also adjacent to the 1.26-million-sf Westfield Mall and Edwards Theatre.

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Source: http://www.globest.com/news/960_960/losangeles/162726-1.html

Maguire Shares Dip on 5th Straight Loss

By ALLEN P. ROBERTS Jr.

Shares in Maguire Properties Inc. dropped nearly 10 percent Wednesday after the company reported its fifth-straight quarterly loss.

Maguire reported a second-quarter net loss $24 million (minus 52 cents per share), greater than the loss of $15 million (minus 31 cents) the company reported in the same period a year earlier.

Revenues for the Los Angeles-based real estate investment trust were up 39 percent to $145 million.

Maguire also said in its filing that proceeds from the sale of properties during the quarter were $195 million, mainly coming from the sale of properties the company acquired in a $2.9 billion deal in April.

Shares in Maguire were down $2.64, or 9.2 percent, to $25.97 in afternoon trading Wednesday on the New York Stock Exchange.

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Source: http://www.labusinessjournal.com/article.asp?aID=61159828.3036441.1507766.8267807.1865092.757&aID2=115973

Ducommun wins $2.1M contract

Ducommun Inc.'s Ducommun Technologies Inc. subsidiary has won an Advanced Technology Development contract sponsored by the U.S. Army Space and Missile Defense Command in Huntsville, Alabama, the company said Wednesday.

The initial contract is worth $2.1 million, but if all options are exercised the contract will be worth more than $42 million, Ducommun said.

Ducommun said in a release that the program includes real-time tracking and classification of battlefield targets; long-range detection of low-frequency sources like launcher vehicles, missile launches and naturally occurring phenomenon; acoustic instrumentation of airborne surveillance; and development of advanced acoustic signal processing techniques. The program is led by a team including Miltec Research and Technology, The University of Michigan and Mississippi State University, Ducommun said.

Los Angeles-based Ducommun (NYSE: DCO) provides engineering and manufacturing services to the aerospace and defense industry.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/07/30/daily18.html?surround=lfn

True Religion partners with Selective Fragrances

True Religion Apparel Inc. has signed a licensing agreement with Selective Fragrances dba New Wave Fragrances and will release True Religion brand fragrances for women and men in fall 2008, the company said Wednesday.

Terms of the deal were not disclosed. The True Religion brand fragrances will be available in True Religion branded stores, national department stores and more than 1,000 specialty stores. The company also plans to offer the fragrance in Europe, Japan, Korea, Canada, Mexico, Australia and South America, as well as duty-free stores in the U.S. and Caribbean, True Religion said in a release.

Vernon-based True Religion Apparel (NASDAQ: TRLG) designs, manufactures and markets True Religion Apparel products, including its True Religion Brand Jeans.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/07/30/daily19.html?surround=lfn

Allergan earnings up in 2Q

Allergan Inc.'s earnings in the second quarter were up substantially on increased sales, the company said Wednesday.

Allergan earned $137.8 million, or 45 cents a share, in the second quarter, up from $74.2 million, or 24 cents a share, in the year-ago period. Revenue was $988.1 million, up 23 percent from $801.7 million in the year-ago period.

Pharmaceutical sales were up 16.2 percent in the period, while core medical device sales were up 53.6 percent, Allergan said in a release.

For the first six months of the fiscal year, the company reported $1.9 billion in revenue and net income of $181.6 million, or 60 cents a share.

The company also declared a 5 cent per share second quarter dividend payable Sept. 7.

Irvine-based Allergan (NYSE: AGN) discovers, develops and commercializes products in the ophthalmology, neurosciences, medical dermatology, medical aesthetics, obesity intervention and other specialty markets.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/07/30/daily20.html?surround=lfn

Tetra Tech wins share of $50B GSA IT contract

Tetra Tech Inc.'s Advanced Management Technology Inc. subsidiary is one of 29 contractors chosen for the General Services Administration Alliant Government-wide Acquisition contract, the company said Wednesday.

The ten-year, multiple-award information technology contract has a $50 billion contract ceiling. It includes infrastructure, applications and management services in support of information technology requirements at federal agencies, Tetra Tech said in a release.

The Alliant contract has a five-year base period and one five-year option.

Pasadena-based Tetra Tech (NASDAQ: TTEK) provides consulting, engineering and technical services.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/07/30/daily21.html?surround=lfn

Health Net earnings up 23% in 2Q

Health Net Inc. reported $92 million, or 80 cents a share, in earnings in its second quarter, up from $77 million, or 65 cents a share, in the year-ago period.

Revenue was $3.5 billion in the quarter, up 6.1 percent from $3.3 billion in the year-ago period. Health plan services premium revenues were up 8.2 percent in the quarter, and membership in the company's small group and individual segment increased by 4.1 percent. Total health plan enrollment grew by 13,000 to 3.7 million members in the quarter.

The company also repurchased 360,300 shares of its common stock in the quarter at an average price of $53.07.

Los Angeles-based Health Net (NYSE: HNT) is a managed health care company.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/07/30/daily22.html?surround=lfn

J2 licenses patents to Hostopia

J2 Global Communications Inc. has entered a license agreement with Hostopia.com Inc. for a non-exclusive, worldwide license to j2 Global's digital fax patent portfolio, the company said Wednesday.

The deal has a 10-year term and includes an upfront payment plus quarterly royalty payments, j2 Global said in a release. Other terms of the deal were not disclosed.

Ft. Lauderdale, Fla.-based Hostopia.com Inc. provides web services to small and medium sized businesses.

Los Angeles-based j2 Global Communications Inc. (NASDAQ: JCOM) provides outsourced messaging and communications services.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/07/30/daily23.html?surround=lfn

Hilton makes development deal in Mexico

Hilton Hotels Corp. will work with Tenedora Augusta, S.A.P.I. de C.V. to develop Hampton Inn and Hampton Inn & Suites hotels in Mexico, the company said Wednesday.

Tenedora Augusta will operate the hotels under Hampton Inn franchise agreements, Hilton said in a release. Targeted cities include Tijuana, Queretaro, Guadalajara, Cancun and Monterrey, Hilton said in a release. Hilton already has 8 Hampton hotels in Mexico. Tenedora Augusta will receive "certain preferred development rights in return for meeting certain goals and timetables," the company said in a release. Terms of the deal were not disclosed.

Tenedora Augusta is Mexico's leading focused-service hotel developer with 1,720 rooms in 8 hotels.

Beverly Hills-based Hilton (NYSE: HLT) has more than 2,800 hotels and 480,000 rooms in 76 countries and territories.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/07/30/daily24.html?surround=lfn

THQ sales down in 1Q

Despite success with shipments of Disney/Pixar's "Ratatouille" video games and strong catalog sales, THQ Inc. reported a decrease in net sales and a net loss for its first quarter.

In its first fiscal 2008 quarter, the company reported sales of $104.5 million, down from $138.8 million in the year-ago period. Net loss was $9.3 million, or 14 cents a share, compared to a net loss of $12.1 million, or 19 cents a share, in the year-ago period. The current quarter's results included stock-based compensation expense of 5 cents a share and a tax benefit of 10 cents a share.

Agoura Hills-based THQ (NASDAQ: THQI) is a developer and publisher of interactive entertainment software.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/07/30/daily25.html?surround=lfn

Sport Chalet sales up in 1Q

Sport Chalet Inc. reported an increase in sales but a net loss for its first fiscal quarter of 2008 due to a more challenging sales environment, the company said Wednesday.

The company reported sales of $91.6 million, up 8.5 percent from $84.4 million in the year-ago period. Net loss for the quarter was $664,000, or 5 cents a share, compared to a net income of $530,000, or 4 cents a share, in the year-ago period.

Sport Chalet said that its expansion program is also continuing as scheduled with five new stores expected to open in the fiscal year.

Los Angeles-based Sport Chalet (NASDAQ: SPCHA) operates specialty sporting goods stores in California, Nevada and Arizona.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/07/30/daily26.html?surround=lfn

Big 5 sales up, earnings down in 2Q

Big 5 Sporting Goods Corp. reported an increase in net sales and a decrease in net income in its fiscal second quarter, the company said Wednesday.

The company reported net sales of $217.8 million, up 2.9 percent from $211.8 million in the year-ago period. Net income was $5.9 million, or 26 cents a share, down from $7.4 million, or 33 cents a share, in the year-ago period. Same store sales were down 0.2 percent in the quarter.

For the first six months of the fiscal year, Big 5 reported $434.9 million in net sales, up 3.8 percent from $419 million in the year-ago period. Same-store sales were up 0.3 percent. Net income was $13.5 million, or 59 cents a share, in the six month period, up from $13.4 million, or 59 cents a share, in the year-ago period.

El Segundo-based Big 5 Sporting Goods (NASDAQ: BGFV) operates 348 stores in 10 states under the "Big 5 Sporting Goods" name.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/07/30/daily27.html?surround=lfn

Disney profit up in 3Q, buys Club Penguin

Walt Disney Co. reported increased revenue and profit in its fiscal third quarter, due to strong results from its media networks, parks and resorts and consumer products segments, the company said Wednesday.

Separately, the company announced that it purchased Club Penguin, an online virtual world for kids.

Burbank-based Disney (NYSE: DIS) reported $9.05 billion in revenue, up 7 percent from $8.47 billion in the year-ago period. Net income was $1.2 billion, or 58 cents a share, up from $1.1 billion, or 51 cents a share, in the year-ago period.

For the first nine months of the fiscal year, Disney reported $26.6 billion in revenue, up from $25.1 billion in the year-ago period. Net income for the nine-month period was $3.8 billion, or $1.80 a share, up from $2.5 billion, or $1.25 a share, in the year-ago period. The current nine month period includes gains of Disney's sales of E! Entertainment and US Weekly that total $1.1 billion before taxes.

Terms of Disney's deal to buy Club Penguin were not disclosed.

Club Penguin launched in October 2005 and has grown to more than 700,000 current paid subscribers. It has more than 12 million activated users, Disney said in a release, and is aimed at children ages 6 to 14. The site features animated penguin avatars that converse with other users, participate in group activities and create a virtual home with currency earned inside the game, according to a release.

The site will be called Disney's Club Penguin and will retain its url, www.clubpenguin.com. Disney said it has no plans for immediate changes to Club Penguin. It will continue to be based in Kelowna, British Columbia, Canada, and its three founders will join Disney and remain the senior management team of the unit. Lane Merrifield, the CEO of Club Penguin, will become an executive vice president of the Walt Disney Internet Group.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/07/30/daily28.html?surround=lfn

Jamison Expands With $39M Office Buy

By Bob Howard

LOS ANGELES-Dr. David Lee’s Jamison Properties has added to its ever-growing portfolio of office buildings with the $39.2-million acquisition of the 4929 Wilshire Blvd. building. A team from Coldwell Banker Commercial Westmac reports that locally based Jamison acquired the 168,680-sf office tower from Copperfield Investment & Development Co. in an off-market transaction, with the Westmac team representing all parties.
Built in 1973, the 10-story office tower in the mid-Wilshire district was about 98% occupied at the time of the sale. According to T.C. Macker of Westmac, the building was in escrow for 11 months, with the seller extending escrow by 180 days to accomplish a 1031 exchange.

In addition to Macker, the Coldwell Banker Commercial Westmac team included David Thind and Patrick Sheekey. Thind notes that the deal closed at a 5.3% cap rate.

Privately held Jamison Properties owns more than 100 buildings comprising a portfolio of more than 22 million sf, with a market capitalization of more than $3 billion. Although most of the company's holdings are office buildings, its portfolio also includes medical buildings, shopping centers and residential developments.
For example, Jamison's medical building acquisitions late last year included a 100% leased 150,000-sf property in Long Beach that it acquired for $30 million, with the building occupied by three tenants including Long Beach Memorial Hospital and HealthCare Partners. That followed the company's earlier acquisition of a portfolio of medical offices totaling 198,000 sf in Orange County.

Although Jamison was known initially for acquiring office buildings in the Mid-Wilshire district where it got its start, the company has since expanded throughout Los Angeles County and into other regions of Southern California. One of its deals this year, for example, was the $29-million acquisition of two office buildings totaling 143,339 sf in Whittier.

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Source: http://www.globest.com/news/961_961/losangeles/162774-1.html

CSC wins $43M U.S. Navy IT contract

Los Angeles Business from bizjournals
September 4, 2007

Computer Sciences Corp. has won an information technology services contract where it will provide systems engineering and management and administration support to the U.S. Navy Space and Naval Warfare System Center Charleston in Pensacola, Fla., the company said Tuesday.

The contract, with a one-year base period and four one-year options, is estimated to be worth $43 million if all options are exercised, according to a release.

CSC will configure, install, administer and support data system connectivity and ensure systems availability for the center's information systems division, according to a release. The company will also "integrate application, database and network support servers in both unclassified and classified environments".

El Segundo-based CSC (NYSE: CSC) is a global IT services company.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/09/03/daily8.html?surround=lfn

Northrop Grumman wins $462M Army job

By Erin Killian, Washington Business Journal
Los Angeles Business from bizjournals
September 4, 2007

Northrop Grumman Corp. has won a contract worth up to $462 million to upgrade part of the U.S. Army's aircraft fleet.

The government contractor's mission system's division is aiming to extend technology in the RC-12 Guardrail's fleet past 2020.

Under the contract, the Reston, Va.-based division already secured two task orders worth $25 million to update intelligence sensors.

"We are working in close partnership with the army to enhance Guardrail's capabilities using technology that also supports future airborne ISR and battle command systems," said Dan Allen, general manager of Northrop Grumman Mission Systems' intelligence systems division.

The overall contract is for five years with one five-year option.

Northrop Grumman's Guardrail modernization team includes Owego, N.Y.-based Lockheed Martin Systems Integration, Fairfax, Va.-based Zeta Associates and Salt Lake City-based L-3 Communications Systems West.

Los Angeles-based Northrop Grumman (NYSE:NOC) is a global defense and technology company.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/09/03/daily7.html?surround=lfn

KB Home to unveil Florida's first Martha Stewart community

Los Angeles Business from bizjournals
September 4, 2007

KB Home has teamed with Martha Stewart to design homes in a community planned for Ormond Beach, Florida.

KB Home on Sept. 15 is set to open Deer Creek, Florida's first community with the Martha Stewart name on it and the fifth such community nationwide. KB Home has announced a total of nine Martha Stewart communities, according to a news release.

Deer Creek's Martha Stewart project consists of 42 one- and two-story homes priced from $300,000 and ranging from three to six bedrooms. The subdivision, at Airport Road and Leeway Trail in Volusia County, is part of the master-planned community of Hunter's Ridge.

Los Angeles-based KB Home (NYSE: KBH), whose Orlando division is developing the community, also plans to unveil two model homes inspired by Stewart's own east coast homes with interiors by decorators from Martha Stewart Living Omnimedia Inc. (NYSE:MSO), the release says.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/09/03/daily2.html?surround=lfn

Grauman's Chinese Theatre in Hollywood is sold

Developer CIM Group, which owns Hollywood & Highland, says it has no plans to change the Hollywood landmark.

By Roger Vincent, Los Angeles Times Staff Writer
September 3, 2007

Grauman's Chinese Theatre, a Hollywood landmark that attracts millions of tourists each year to its outdoor courtyard where generations of movie stars left their hand and footprints, has been purchased by Hollywood's largest commercial landlord.

CIM Group of Los Angeles says it has no plans to change the 80-year-old theater, and the purchase continues its string of acquisitions in the heart of Hollywood.

The developer already owns nearly all the property on the north side of a two-block stretch of Hollywood Boulevard between Highland and Sycamore avenues. That includes the Hollywood & Highland Center, Renaissance Hollywood Hotel, Mann Chinese 6 Theatre multiplex and the Galaxy building.

"It's important to us that key properties like Grauman's don't fall into the wrong hands," said Shaul Kuba, a principal at CIM Group. The purchase price was not disclosed.

Mann Theatres has a long-term lease on the legendary venue for movie premieres and will continue to operate it as a film house. It was sold to CIM by the Damon Runyon Cancer Research Center of New York and Barlow Respiratory Hospital of Los Angeles.

"We have been very interested in purchasing the property since we acquired Hollywood & Highland" in 2004, said John Given, another principal at CIM. "Our ownership cements the relationship between the theater and Hollywood & Highland Center."

Built in 1927 by impresario Sid Grauman, the 1,162-seat theater is perhaps the epicenter of Hollywood and one of Southern California's top tourist attractions. Millions of visitors every year step into the footprints of famous movie stars preserved in concrete in its forecourt. Tour buses start and end their journeys out front.

The theater itself is one of the most recognizable buildings in the world. Its signature pagoda-inspired entrance features two immense coral red columns topped by wrought iron masks that hold aloft the bronze roof.

Between the columns is a 30-foot dragon carved from stone. Guarding the theater entrance are two giant stone Heaven Dogs, original artifacts brought from China by Grauman.

Previously, Grauman built the Million Dollar Theatre in downtown Los Angeles and the lavish Egyptian Theatre a few blocks from the Chinese Theatre.

Actress Norma Talmadge turned the first shovel of dirt at the groundbreaking, and opening night was a riot of glamour as mobs of fans turned out to see celebrities attend the premiere of Cecil B. DeMille's "The King of Kings."

CIM does not own the parking lot west of Grauman's, where Madame Tussauds plans to build a branch of its popular London wax museum. It also does not own an underground city parking lot or subway station below Hollywood and Highland. CIM and the city share ownership of Kodak Theater, home to the annual Academy Awards.

Landlord CIM, with all its properties, "assumes a huge responsibility in Hollywood," said preservationist Robert Nudelman of Hollywood Heritage Inc. "They need to go several steps further because their impact on the district is tremendous. They need to maintain things at a higher level than most do."

CIM was "the absolute logical buyer," said Hollywood real estate broker Christopher Bonbright of Ramsey-Shilling Co., who was not involved in the sale. "It doesn't surprise me they were the successful bidder."

CIM had an incentive to outbid its competitors for the theater because of its importance to the Hollywood & Highland complex and its other nearby properties, Bonbright said. "It's a strategic imperative for them."

The company controls more than a dozen office, retail and residential properties in Hollywood, including the TV Guide building and the former Seven Seas nightclub building across from Grauman's.

It is bringing sought-after clothing stores H&M and Zara to Hollywood Boulevard. CIM also has signed British retailer Tesco to occupy part of the former Hollywood Galaxy shopping center as part of its strategy to bring in businesses that serve local residents.

At Sunset Boulevard and Vine Street, CIM is converting an office high-rise into an apartment building scheduled for completion at the end of 2008.

Unlike the original developer of Hollywood & Highland, CIM "has made a point to reach out to the community," said Anastasia Mann, president of the Hollywood Hills West Neighborhood Council. "They're very proactive."

CIM's main dispute with neighborhood residents, she said, is one that includes several other local landlords: their desire to sell large-scale advertising high on their buildings.

"No one wants to stop people from being creative, but projects need to be examined for their impact on the community," Mann said.

Nudelman of Hollywood Heritage said CIM needed to be a better neighbor. "They're trashing out the neighborhood with billboards," he said. There are so many signs on Hollywood & Highland, "it's a cluttered mess."

The rapid pace of change in Hollywood in recent years has included billions of dollars' worth of residential and commercial development, unnerving some residents who worry that the historic character of the neighborhood may be lost. Traffic congestion and parking woes have added to the angst.

CIM, founded by Israeli immigrants Kuba and Avi Shemesh with Richard Ressler, specializes in developing and investing in urban centers. It is largely financed by pools of money raised by institutional investors including the California Public Employees' Retirement System.

CIM Group's projects outside of Hollywood include a recently completed residential and retail complex in downtown Los Angeles housing a Ralphs supermarket. It has residential and retail projects in downtown Anaheim, Sacramento and San Jose.

The firm also played a role in developing the Third Street Promenade in Santa Monica, Old Pasadena and Brea Town Center.

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Source: http://www.latimes.com/business/printedition/la-fi-hollywood3sep03,0,2817377.story?coll=la-headlines-pe-business

Preserving L.A. County manufacturing base
BY GREGORY J. WILCOX, Columnist


WE'RE No. 1 again, top of the nation's manufacturing heap. Chicago still can't shoulder the load.

Last year, Los Angeles County had 911,000 workers making stuff versus 390,200 in Chicago.

And the county's 1.5 percent vacancy rate is the nation's lowest. In the San Fernando Valley, the vacancy rate finished the year at 1.8 percent.

Part of this glass is half-empty, though.

There were 9,400 fewer folks making stuff here in 2006 than the year before. Worse, the places where they make stuff are disappearing, too.

And that's not too good for the economy.

That's a problem, says Jack Kyser, vice president and chief economist for the Los Angeles County Economic Development Corp., who last week released his annual state-of-manufacturing report.

"Manufacturing in Southern California could be called the forgotten industry, as most people think it has all gone away, or that (it) is not worth saving," Kyser lamented in his report.

Land zoned for industrial use is a hot commodity.

However, Dan Blake, director of the San Fernando Valley Economic Research Center at California State University, Northridge, said industrial land is worth more if marketed for other uses.

"Most of the industrial activity is single story and the land is valued less per square foot than it is for office and residential," he said.

A lot less, actually.

Blake estimates residential developers will pay about $200 a square foot for land, while industrial fetches between $50 and $75 a square foot.

The air above those single-story operations is valuable as developable space, too.

"There has been a rush by developers in Southern California to buy (industrial land) and do residential projects. Industrial land has also been lost to retail development and to construction of schools or other public facilities," Kyser laments.

Kyser's report makes a case for a preservation effort in the industrial sector.

Given the challenges facing Los Angeles schools, manufacturing can offer a career path to a middle-class lifestyle. Smaller firms offer on-the-job training and work with community colleges. Salaries are above those in other sectors, and workers often have health benefits.

Manufacturing tends to have a higher multiplier effect - one job here supports others in different areas.

"A lot of people are scrambling to find good workers," Kyser said.

He'd like to see an effort to revitalize some older industrial areas to prevent further erosion of the industrial base.

Another problem is that companies are trying to make more stuff with fewer workers (increased productivity) and have sent work overseas where labor is less expensive.

Blake also said the nature of Los Angeles manufacturing personality is also changing, from front-line workers who make things to more technical design and engineering.

"The jobs are changing to higher-skilled tech jobs. There are still a lot of those other jobs left, just not as many."

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Source: http://www.dailynews.com/gregwilcox/ci_5565582

Andell Holdings buys Chicago Fire from AEG

Los Angeles Business from bizjournals
September 6, 2007

Andell Holdings has closed on its deal to buy Major League Soccer's Chicago Fire from Anschutz Entertainment Group, the Chicago Fire said Thursday.

Terms of the deal were not disclosed. The Chicago Fire was founded in 1997 as a Major League Soccer expansion team.

Los Angeles-based AEG is still the owner of the Los Angeles Galaxy and the Houston Dynamo in the MLS, according to a release. AEG is a wholly owned subsidiary of the Anschutz Co.

Los Angeles-based Andell Holdings is a private investment firm.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/09/03/daily24.html?surround=lfn

Countrywide to cut 900 more jobs

Los Angeles Business from bizjournals
September 6, 2007

Countrywide Financial Corp. will cut 900 more jobs, primarily from its mortgage production division, according to news reports.

The layoffs are due to a tough housing market and economic conditions, the Associated Press reported.

The move follows job cuts August 20 that affected the company's loan originators. Countrywide also recently took a $2 billion investment from Bank of America and drew down its $11.5 billion credit line to increase liquidity.

Calabasas-based Countrywide (NYSE: CFC) is the nation's biggest mortgage lender in terms of loan volume.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/09/03/daily23.html?surround=lfn

Health Net launches foundation, donates $1.35M to AHA

Los Angeles Business from bizjournals
September 6, 2007

Health Net Inc. has launched the Health Net Foundation with a three-year, $1.35 million grant to the American Heart Association, the company said Wednesday.

The donation will support the American Heart Association's Start! movement in Los Angeles, Orange, San Bernardino and Riverside counties in California and in San Antonio, Texas, according to a release. The program is intended to help Americans of all ages improve heart health by walking.

Health Net Foundation is a nonprofit corporation that will make charitable contributions to organizations that promote wellness and preventative care, combat childhood obesity and support health-related programs for military families, according to a release. It was created in 2007 as a philanthropic arm of Los Angeles-based Health Net (NYSE: HNT).

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/09/03/daily22.html?surround=lfn

Lasco cuts production in Ga.

Los Angeles Business from bizjournals
September 6, 2007

Lasco Bathware is temporarily suspending manufacturing and temporarily cutting about 100 production jobs at its Cordele, Ga., facility in response to lower demand.

The Anaheim-based acrylic and gelcoat bath fixtures company said it will continue to use the Cordele facility as a product distribution center, with about 50 employees in warehouse, administration and shipping positions.

"With nine production facilities across the country, we are constantly shifting production capacity to meet demand and ensure that we're operating as efficiently as possible," said Stuart Leigh, president of Lasco Bathware. "With these adjustments, it's important to stress that our existing customers will not be affected and will continue to receive the quality and level of customer service they have come to rely on."

As regional business conditions improve, the company said it will investigate the possibility of bringing back manufacturing at the Cordele plant and possibly rehiring employees.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/09/03/daily20.html?surround=lfn

Northrop Grumman receives $17.5M contract

Los Angeles Business from bizjournals
September 6, 2007

Northrop Grumman Corp. has received a $17.5 million contract from the U.S. Army to provide more than 500 hand-held laser target locators to assist soldiers in locating and identifying enemy targets, the company said Thursday.

The company will conduct the work on its Mark VII product at its Apopka, Fla., unit. The first deliveries are scheduled for April 2008, with final deliveries due in August 2009.

The Mark VII is a hand-held device that can locate an enemy day or night. It can be used for surveillance or target enemy positions for air or artillery engagement.

Los Angeles-based Northrop Grumman (NYSE: NOC) is a global defense and technology company.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/09/03/daily16.html?surround=lfn

Warner shows to appear on ABC broadband player

Sep 6, 2007

LOS ANGELES (Reuters) - The Walt Disney Co's ABC television network and Warner Bros announced an experimental deal on Thursday for four Warner-produced ABC shows to appear on ABC's Web-based broadband media player.

ABC already makes several shows from its own production arm, ABC Studios, available for free to viewers on the ad- supported broadband player.

Since its launch in September 2006, the player has streamed all or part of 134 million episodes, ABC data shows. ABC was the first broadcast network to offer its prime time shows for free on the ad-supported player.

The network will sell ads and keep the revenue for the Warner hits, "Men in Trees" and "Notes from the Underbelly" and new shows "Big Shots" and "Pushing Daisies," which all appear on ABC.

Jana Winograde, ABC Entertainment's executive vice president of business affairs, said consumer demand drove the network to seek an agreement with Warner Bros.

"They have come to expect it with serialized shows ... that if they miss their favorite show that they can find it on abc.com," Winograde said.

In the second year of the agreement, Warner holds the rights to stream the previous year's shows to an unlimited number of Web outlets and may sell digital downloads and DVD box sets of those shows.

The episodes will carry ABC branding and will promote the network.

As with the ABC-produced shows, the Warner episodes will appear on abc.com the day after their broadcast premieres and will be available for online viewing for up to four weeks.

Warner Bros is a unit of Time Warner Inc.

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Source: http://www.reuters.com/article/technology-media-telco-SP/idUSN0638149320070906

Northrop subsidiary wins Navy submarine contract

Los Angeles Business from bizjournals
September 11, 2007

Northrop Grumman Corp.'s AMSEC LLC subsidiary has won a contract from the U.S. Navy for submarine work in San Diego, the company said Tuesday.

AMSEC is the prime contractor for the work, according to a release. It is one of multiple winners of an indefinite-delivery indefinite-quantity contract with a potential maximum value of $15 million collectively, according to a release.

The contract includes repair, maintenance and alteration to U.S. Navy submaries visiting or home-ported in San Diego and purchasing long-lead time material for the activities, according to a release. Work is expected to be complete by August 2012 and will be performed in San Diego.

Los Angeles-based Northrop Grumman (NYSE: NOC) is a global defense and technology company. Its AMSEC LLC is a subsidiary of Northrop's Newport News sector.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/09/10/daily15.html?surround=lfn

IMT Capital opens Austin office

Los Angeles Business from bizjournals
September 11, 2007

IMT Capital LLC is opening a regional office in Austin.

The Los Angeles-based private equity firm focuses on multifamily residential properties and multifamily development. The Austin office will focus on acquiring multifamily properties in major metropolitan areas in Texas including Austin, Dallas and Houston.

The Austin office will be headed by Michael Hooks, who previously was vice president at Capmark Capital.

"IMT believes that the long-term demographic growth and economic development in the Texas market will continue. We have a long and successful history of investments in the region and look forward to the continuation of that tradition," says Hooks.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/09/10/daily13.html?surround=lfn

Jacobs wins two new contracts

Los Angeles Business from bizjournals
September 11, 2007

Jacobs Engineering Group Inc. has received new contracts from Vopak Dupeg Terminal Hamburg GmbH and the BORDET Institute, the company said Tuesday.

Vopak Dupeg Terminal Hamburg GmbH
Jacobs has received a contract from Vopak Dupeg Terminal Hamburg GmbH to provide engineering, procurement and construction management services for the relocation of tank terminal facilities in Hamburg, Germany.

Terms of the deal were not disclosed. Jacobs will work on the project from its Cologne, Germany, office supported by a team on site in Hamburg. Vopak is integrating two current Hamburg terminals into one to make space for increasing container activity in the Port of Hamburg, according to a release. One terminal will be closed, and the other will serve all major refinery and chemical owners in the northern region of Germany.

BORDET Institute
Jacobs received a contract from the BORDET Institute to provide owner-engineer support for a new hospital in Brussels, Belgium.

Terms of the deal were not disclosed.

Jacobs has already completed a conceptual study for the project, according to a release, and under the new contract will provide services including programming and advice for technical and functional project definition, support of contractor selection, change management assistance, and will ensure hospital functions remain stable during construction. Jacobs will manage the project from its healthcare center of excellence in Paris, France, the company said in a release.

Pasadena-based Jacobs (NYSE: JEC) provides technical, professional and construction services globally.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/09/10/daily10.html?surround=lfn

CBRE Wins 7M-SF ING Clarion Assignment

By Bob Howard
September 11, 2007

LOS ANGELES-New York City-based ING Clarion Partners has named CB Richard Ellis to manage a national portfolio of 26 class A office buildings in CBD and suburban markets in seven states, making it the locally based company's largest third-party office property management assignment. Eight of the properties are located in the Washington/Baltimore region, with the others in Atlanta, San Francisco, Boston, Denver, Los Angeles, Connecticut and South Florida.
Drew Genova, Washington, DC-based senior managing director of strategic accounts for CBRE, tells GlobeSt.com that the individual buildings range from approximately 100,000 sf to 500,000 sf and that the occupancy of the portfolio is in the high 90% range. Genova and Tony Long, Dallas-based president of Americas asset services with CB Richard Ellis, created the account model that won the assignment for CBRE.

Genova and Long and will continue as senior advisers to ING on the management of the properties, which ING formerly managed in-house. As Genova explains to GlobeSt.com, the model for managing the new account calls for John Greenwood of CBRE's Wayne, PA office to manage the account’s day-to-day activities under the title of alliance director.

"We really looked at this, in large part, in the same way as we look at the corporate side of our business," Genova says. Whereas properties under third-party managers traditionally have been run by a local office in contact with the local representative for the building ownership, Genova says, "In this instance, given that it's a national assignment crossing multiple markets, we felt that it was much better to assign a person that the client can communicate with regardless of where a property is located."
Genova explains that one result of this structure will be "to have us look like ING in delivering day-to-day services so that we maintain the ING brand's image in the market." Greenwood, as point person on the account, will have true account oversight on the ING portfolio.

"This will mean his full involvement with the client and with each of the individuals at CBRE who will be responsible for delivering the day-to-day services," Genova adds. Greenwood, in addition to the CBRE asset services organization, will be supported by more than 50 ING Clarion employees who will join CBRE as part of the agreement.

Winning the ING Clarion account, "speaks to our platform and our depth," Genova comments. He says that ING focuses intently on providing high-quality management for its properties and that CBRE's model is designed "to operate the properties at the same level high level of quality" as ING did in managing the properties itself.

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Source: http://www.globest.com/news/989_989/losangeles/163905-1.html

Another Deal in the Works for Countrywide

By ALLEN P. ROBERTS Jr.
September 11, 2007

Countrywide Financial Corp. is working on putting together another billion-dollar bailout plan as the nation's largest lender struggles amid a global credit crunch and rapidly declining housing market.

The New York Post reported that the Calabasas-based lender is working with Goldman Sachs and law firm Wachtell Lipton Rosen & Katz to structure another investment similar to the deal it inked with Bank of America last month.

The paper reported that a group that could include J.P. Morgan and Citigroup as well as several hedge funds has expressed interest in Countrywide and is hammering out a deal that could be announced as soon as the end of the month.

Last month, Bank of America paid $2 billion for a series of non-voting preferred stock in the struggling lender that provide an annual dividend of 7.25 percent and can be converted into common stock at $18 per share.

Countrywide also announced plans late last week to cut its workforce by as much as 20 percent, or 12,000 jobs, in an effort to cut costs – prompting analysts at Merrill Lynch and UBS to cut their profit estimates for the company, sending shares down as much as 5 percent. The stock, which has fallen nearly 60 percent this year, closed at a four-year low of $17.21 Monday and was dropping further Tuesday.

Also adding to the fire, French investment firm Alliance Capital Management, which is owned by giant French insurance company AXA SA, sold about 31 million shares of Countrywide in August and Barclays Global Investors dumped nearly 25 million shares.

Shares in Countrywide were down 5.6 percent, or 96 cents, to $16.25 in afternoon trading Tuesday.

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Source: http://www.labusinessjournal.com/article.asp?aID=82324762.3255016.1525888.8971945.8173087.588&aID2=117367

DaVita Acquires Stake in HomeChoice

By DEBORAH CROWE
Los Angeles Business Journal Staff
September 11, 2007

El Segundo-based dialysis services provider DaVita Inc. said that it has acquired 85 percent of HomeChoice Partners Inc. for approximately $65 million in cash in a bid to diversify its business.

HomeChoice, based in Norfolk, Va., provides infusion therapy services to patients with conditions, ranging from chronic pain to cancer, that can be treated at home or at an ambulatory infusion suite. Infusion therapy involves the administration of medications into the bloodstream, under the skin, or membranes surrounding the spinal cord.

DaVita currently does not provide infusion services, but Vice President LeAnne Zumwalt said the business plays to many of DaVita’s strengths, such as the ability to manage small geographically diverse offices around the country and treating complex and chronic medical conditions in an outpatient setting.

We may eventually expand in this area, but HomeChoice is a good start,” Zumwalt said.

HomeChoice reported approximately $37 million in trailing 12 month revenue and currently serves more than 2000 patients in Virginia, North Carolina, South Carolina and Georgia. The acquisition is expected to be neutral to earnings in the first year, DaVita said in a press release late Monday. The remaining 15 percent ownership interest will be retained by HomeChoice’s senior management.

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Source: http://www.labusinessjournal.com/article.asp?aID=22324729.9236562.1525862.8082973.4673012.989&aID2=117365

Mattress Gallery Sold to Houston Firm

By SARAH FILUS
Los Angeles Business Journal Staff
September 11, 2007

Los Angeles-based Mattress Gallery, which owns and operates 53 mattress stores in Southern California, is set to be purchased by Houston-based Mattress Firm, the number three retailer of mattresses with 450 stores in 21 states.

Upon completion of the purchase of Mattress Gallery, Mattress Firm will enter the California market for the first time and become the number two mattress retailer ahead of Select Comfort.

Financial terms of the acquisition, which is expected to close in 60 days, were not disclosed.

Mattress Gallery stores will be converted into Mattress Firm stores, and will expand product selection.

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Source: http://www.labusinessjournal.com/article.asp?aID=52324696.5218107.1525615.7194.1172937.389&aID2=117346

Kennedy Wilson buys Thousand Oaks office building

Los Angeles Business from bizjournals
September 12, 2007

Kennedy Wilson and two of its sponsored funds have purchased a 354,341 square foot, 3 story office building located on 43 acres in Thousand Oaks, the company said Tuesday.

The sponsored funds involved in the deal include KWI Property Fund I and KW Property Fund II, according to a release.

Built in 1982, the building was extensively renovated in 2007 and designed by Los Angeles architect A.C. Martin. The property is currently at 79 percent occupancy and major tenants are Baxter Healthcare, Verizon and HMS Capital, according to a release.

Beverly Hills-based Kennedy Wilson (OTCBB: KWIC) is a real estate and investment firm with 20 offices throughout the U.S. and Japan.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/09/10/daily22.html?surround=lfn

Ducommun subsidiary gets $28M commercial aircraft deal

Los Angeles Business from bizjournals
September 12, 2007

Ducommun Inc.'s subsidiary Ducommun AeroStructures Inc. has won contracts from Latecoere International Inc. to supply fuselage and door skins for the Embraer ERJ 170/190 family of commercial aircraft, the company said Wednesday.

Under the five year contract, valued at more than $28 million, Ducommun will continue to supply fuselage skins for the Embraer ERJ 170/190 Regional Jet platform, the company said in a release. The company will also provide Latecoere with door skins for the same program under a new three-year contract, according to a release. Ducommun AeroStructures has been providing the fuselage skins to Latecoere since the beginning of the program.

All work on the contract will be done at Ducommun AeroStructures' facilities in Gardena and Orange.

Los Angeles-based Ducommun (NYSE: DCO) provides engineering and manufacturing services to the aerospace and defense industry.

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Source: http://losangeles.bizjournals.com/losangeles/stories/2007/09/10/daily18.html?surround=lfn

CSC wins $20M outsourcing contract from Wilton Re

Los Angeles Business from bizjournals
September 13, 2007

Computer Sciences Corp. has won a $20 million business process outsourcing contract with Wilton Re to support the company's growth strategy, the company said Thursday.

Under the 10-year deal, CSC will transition about 80,000 insurance policies acquired by Wilton Re to CSC's insurance BPO operations and provide full back-office administration services, according to a release. CSC will also provide the scalable foundation for future Wilson Re acquisitions, the company said in a release.

Wilton Re Holdings Limited provides traditional life reinsurance and insurance Run Off Solutions through its wholly owned subsidiaries.

El Segundo-based CSC (NYSE: CSC) is a global information technology services company.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/09/10/daily34.html?surround=lfn)

Maguire refinances KPMG Tower

Los Angeles Business from bizjournals
September 13, 2007

Maguire Properties Inc. has completed a new $400 million 5-year financing for its KPMG Tower property in downtown Los Angeles, the company said Wednesday.

The loan is with Eurohypo AG, New York Branch and is at a variable rate of LIBOR plus 150%, according to a release. Maguire also entered a forward-starting interest rate swap agreement to hedge this loan, essentially fixing the interest rate at 7.06 percent, the company said in a release. Net proceeds of the refinancing were about $130 million after repayment of the existing $210 million mortgage loan and the payment of loan reserves and closing costs, according to a release.

Maguire said it will use about $110 million of the net proceeds to fully repay a $400 million term loan connected with its April 2007 purchase of the southern California Equity Office Properties portfolio.

The company said in a release that it has no borrowings outstanding under its $130 million revolving credit facility, and after the refinancing about 88 percent of its outstanding debt is fixed (or swapped to a fixed rate) at a weighted average interest rate of about 5.6 percent on an interest only basis. The remaining term on the debt is about eight years, according to a release.

Los Angeles-based Maguire Properties (NYSE: MPG) is the largest owner and operator of Class A office properties in the Los Angeles central business district.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/09/10/daily31.html?surround=lfn)

CSC wins $25M contract with Woodside

Los Angeles Business from bizjournals
September 13, 2007

Computer Sciences Corp. has signed a three year $25 million information technology services contract with Woodside, an international oil and gas group based in Australia, the company said Wednesday.

The contract follows a one-year information technology services agreement between the companies. Under the new agreement, CSC will continue to provide a range of IT services including data center hosting, enterprise monitoring, help desk, desktop support, database administration, data recovery, asset management, server support and change management, according to a release.

El Segundo-based CSC (NYSE: CSC) is a global information technology services company.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/09/10/daily30.html?surround=lfn)

Northrop Grumman wins $12M Navy job

By Erin Killian, Washington Business Journal
Los Angeles Business from bizjournals
September 13, 2007

Northrop Grumman Corp. has won a $12 million contract modification to continue engineering support for the Navy.

The government contractor's mission systems division will specifically help develop, install, integrate and maintain combat simulation under the Aegis program.

Most of the work will be performed in Dahlgren, Va. at the Naval Surface Warfare Center, but the contractor will also do work in Arlington; Mount Laurel, N.J.; New Church, Va.; and San Diego.

Los Angeles-based Northrop Grumman (NYSE:NOC) is a global defense and technology company. It has annual sales of nearly $4 billion.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/09/10/daily27.html?surround=lfn)

Ducommun wins $4.8M Missile Defense Agency contract

Los Angeles Business from bizjournals
September 13, 2007

Ducommun Inc.'s Ducommun Technologies Inc. subsidiary has won an indefinite delivery indefinite quantity contract from the Missile Defense Agency worth $4.8 million, the company said Thursday.

Ducommun Technologies' Miltec subsidiary, as a contract prime, will perform work focused on the coordination and integration of various payloads to support missile and space experimentation, according to a release.

Los Angeles-based Ducommun (NYSE: DCO) provides engineering and manufacturing services to the aerospace and defense industry.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/09/10/daily26.html?surround=lfn)

Countrywide Gets Financing; Lending Dips

By ALLEN P. ROBERTS Jr.
September 13, 2007

Countrywide Financial Corp said Thursday that it has lined up $12 billion of secured financing to help it cope with reduced loan demand, a slumping housing market and declining investor confidence.

The announcement boosted shares in the beleaguered stock nearly 10 percent in early trading.

Countrywide said it lined up the financing through new or existing credit facilities but did not elaborate. This round of financing comes less than a month after the company drew $11.5 billion from credit facilities to fund loans because it was unable to sell short-term debt on the secondary market.

The company also said that it had funded $34 billion in mortgages for August, marking the slowest month this year for the Calabasas-based lender and more than 17 percent less than the same period a year earlier. Countrywide’s pipeline of unclosed mortgages also fell 17 percent from July to $52 billion.

Countrywide said that the summer slump in lending was partially due to the company not making home loans that don't meet its own heightened criteria, or making loans that aren't eligible to be backed by Fannie Mae and Freddie.

Countrywide’s pullback from subprime loans also continued. Of the loans issued in August, less than 4 percent were subprime – about the same as July, the company said.

Shares in Countrywide jumped 8 percent, or $1.35, to $17.97 in afternoon trading Thursday on the New York Stock Exchange.

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Source: Los Angeles Business Journal (http://www.labusinessjournal.com/article.asp?aID=67796564.9964611.1526486.9468161.480944.160&aID2=117413)

OKAY OKAY! :lol:

You don't have to read it. This thread is for those who pose an interest in LA's economy and want to know what's going on with it on a daily basis. ;)

hopefully Maguire is positioning himself to finance the new tower. if he is paying off debt, that might be a good thing.

The city should have more office towers.:bash:

just kidding, my bad

The city should have more office towers.:bash:
I would prefer the continued residential infill spots that are anywhere from 4-15 stories tall. Highrise office buildings are nice to photograph but are needed only downtown and/or Century City. Their are so many spots in the urban core that needs infill to continue to densify the city so that small urban parks, expanded mass transit and overall pedestrian friendliness becomes more of an obvious necessity.

I would prefer the continued residential infill spots that are anywhere from 4-15 stories tall. Highrise office buildings are nice to photograph but are needed only downtown and/or Century City. Their are so many spots in the urban core that needs infill to continue to densify the city so that small urban parks, expanded mass transit and overall pedestrian friendliness becomes more of an obvious necessity.

I agree, but The Maguire project is the first office tower in DTLA in 15 years? A city that does so much manufacturing and trading internationally should be awash with such structures. Look at the cities on the banner, cities I've never even heard of. What are they contributing to the world economy that Los Angeles isn't. It just strikes me weird that my hometown is so void of this type of development, considering the production of the area. :)

I might just start a new thread on "myths of LA". If you have a chance read the whole insert @ http://en.wikipedia.org/wiki/Urban_sprawl

Examples of sprawl

Atlanta, Georgia is an example of a large urban area with a low population density. Atlanta covers 9,855 km² with a population of 4,112,198 people for a density of 417/km².[9]This is approximately one-third the density of the New York urbanized area. The urban area of Melbourne, Australia in 2001 had 3,160,171 people over 2080.3 km²[10], giving a population density of 1519.1/km². Helsinki in Finland, which has only 1,232,595 people spread over 2,970.6 km² area, resulting in a population density of just 415.0/km².

According to the National Resources Inventory (NRI), about 8,900 square kilometers (2.2 million acres) of land was developed between 1992 and 2002. Presently, the NRI classifies approximately 100,000 more square kilometers (40,000 sq miles) (an area approximately the size of Kentucky) as developed than the Census Bureau classifies as urban. The difference in the NRI classification is that it includes rural development, which by definition cannot be considered to be "urban" sprawl. Currently, according to the 2000 Census, approximately 2.6 percent of the US land area is urban.[11]Approximately 0.8 percent of the nation's land is in the 37 urbanized areas with more than 1,000,000 population.


The urban Sprawl of Melbourne.Nonetheless, some urban areas have expanded geographically even while losing population. But it was not just US urbanized areas that lost population and sprawled substantially. According to data in "Cities and Automobile Dependence" by Kenworthy and Laube (1999), urbanized area population losses occurred while there was an expansion of sprawl between 1970 and 1990 in Brussels, Belgium; Copenhagen, Denmark; Frankfurt, Germany; Hamburg, Germany; Munich, Germany and Zurich, Switzerland.

At the same time, the urban cores of these and nearly all other major cities in the United States, Western Europe and Japan that did not annex new territory experienced the related phenomena of falling household size and "white flight", sustaining population losses [12]. This trend has slowed somewhat in recent years, as more people have regained an interest in urban living.

The term "Los Angelization" is also sometimes used for urban sprawl, though this may be misleading. Los Angeles was one of the world's first low density urbanized areas, as a result of wide automobile ownership. However, Los Angeles has become more dense over the past half-century, principally due to small lot zoning and a high demand for housing due to population growth. Los Angeles increased its density to 5,801 per square mile in 1990. Land consumption per resident in 1990 was 0.11 acre, which made Los Angeles the most densely populated urbanized area in America. [13]

I keep repeating that most people on this board whether it be SSC or SSP are stuck in a 1950's model of LA, along w/ half of our county supervisors.

Reliance Steel & Aluminum to buy Metalweb

Los Angeles Business from bizjournals
September 18, 2007

Reliance Steel & Aluminum Co. will buy the outstanding capital stock of Metalweb plc, a metals service center based in Birmingham, England, the company said Tuesday.

Terms of the deal, which is expected to close within the next 30 days, were not disclosed. Reliance said in a release that the current management of Metalweb is expected to stay in place, including the company's majority owner and managing director Derek Webb.

Metalweb has three other service centers located in Manchester, London and Oxford, England, according to a release. The company specializes in the processing and distribution of primarily aluminum products for non-structural aerospace components and general engineering parts for high-end industrial applications. The company had net sales of about $53 million in its fiscal year ended May 31, 2007, acording to a release.

Los Angeles-based Reliance Steel & Aluminum Co. (NYSE: RS) is a metals service center with more than 180 locations in 37 states and Belgium, Canada, China and South Korea.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/09/17/daily14.html?surround=lfn)

Jacobs wins GSA construction management contract

Los Angeles Business from bizjournals
September 18, 2007

Jacobs Engineering Group Inc. has won a construction management services contract from the U.S. General Services Administration Mid-Atlantic Region for the Internal Revenue Service Philadelphia Consolidation Project in Pennsylvania, the company said Tuesday.

The project involves the modernization of a 900,000-square-foot U.S. Post Office building and turning it into a Class A office building for the IRS. Jacobs work includes design reviews, cost estimating, construction administration and commissioning, according to a release.

Terms of the deal were not disclosed.

Pasadena-based Jacobs (NYSE: JEC) provides technical, professional and construction management services globally.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/09/17/daily13.html?surround=lfn)

MGM HD to launch on DirecTV

Los Angeles Business from bizjournals
September 18, 2007

Metro-Goldwyn-Mayer Studios Inc. will launch its first channel in the United States this fall on DirecTV, the company said Tuesday.

The channel, MGM HD, will offer a library of classic and contemporary films in high definition. It will also offer original programming, new content, behind the scenes coverage of red carpet events, sneak previews of new films, seasonal promotions and world premieres of newly remastered films from MGM's library, according to a release.

This is MGM's first channel in the U.S., however it currently has television channels available in nearly 120 countries, according to a release. MGM said it expects to announce additional U.S. carriage agreements in the near future.

El Segundo-based DirecTV (NYSE: DTV) is a satellite television service provider.

Los Angeles-based Metro-Goldwyn-Mayer Inc. produces and distributes motion pictures, television programming, hoome video, interactive media, music and licensed merchandise through its subsidiaries.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/09/17/daily11.html?surround=lfn)

PC Mall closes Sarcom deal

Los Angeles Business from bizjournals
September 18, 2007

PC Mall has completed its acquisition of Sarcom Inc.

Through the acquisition, an arm of PC Mall has been merged into Sarcom of Columbus, Ohio. The deal closed for $55 million, which includes $7.5 million in PC Mall stock.

Through the acquisition, Torrance-based PC Mall also is taking on Sarcom's Abreon Group, a high-end consulting and training business in Pittsburgh.

Sarcom employs more than 700 engineers, technicians and project managers. The privately held company reported $248 million in revenue in 2006.

PC Mall (NASDAQ:MALL) sells products from tech manufacturers such as Apple Inc., Hewlett-Packard Co., IBM Corp., Lenovo Group Ltd. and Microsoft Corp. through direct and Internet operations. The company, which employs nearly 1,500, recorded a $3.96 million profit in 2006 on $1 billion in revenue.
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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/09/17/daily10.html?surround=lfn)

Sloan Capital buys Two Rodeo Drive for $275M

Los Angeles Business from bizjournals
September 18, 2007

Sloan Capital has purchased the Two Rodeo Drive shopping center in Beverly Hills for $275 million, according to Monday news reports.

The iconic upscale shopping complex, located at Rodeo Drive and Wilshire Boulevard, includes some of the world's biggest names, including Tiffany & Co. and Versace, as tenants.

The seller was Rodeo Owner Corp., which was identified as a European family trust, according to the Los Angeles Times.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/09/17/daily9.html?surround=lfn)

PC Mall closes Sarcom deal

Los Angeles Business from bizjournals
September 18, 2007

PC Mall has completed its acquisition of Sarcom Inc.

Through the acquisition, an arm of PC Mall has been merged into Sarcom of Columbus, Ohio. The deal closed for $55 million, which includes $7.5 million in PC Mall stock.

Through the acquisition, Torrance-based PC Mall also is taking on Sarcom's Abreon Group, a high-end consulting and training business in Pittsburgh.

Sarcom employs more than 700 engineers, technicians and project managers. The privately held company reported $248 million in revenue in 2006.

PC Mall (NASDAQ:MALL) sells products from tech manufacturers such as Apple Inc., Hewlett-Packard Co., IBM Corp., Lenovo Group Ltd. and Microsoft Corp. through direct and Internet operations. The company, which employs nearly 1,500, recorded a $3.96 million profit in 2006 on $1 billion in revenue.

Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/09/17/daily10.html?surround=lfn)


^^ ^^ ^^ :bash: :bash: :bash: That place sucks butt!!!!

When I first moved to this side of town I got a job at that sucky ass place. MacMall and they cheat everyone on their pay... Good thing that there's being sued for un-paid wages.... btw, I received a check from them 2 weeks ago... but they still suck, never work for them.

Northrop wins $98M deal, completes L.A. dispatch system

Los Angeles Business from bizjournals
September 24, 2007

Northrop Grumman Corp. was awarded a large defense contract on Monday, and also announced the completion of a seven-year project in the city of Los Angeles.

Special Operations Forces
Northrop was awarded a five-year contract worth up to $98 million for the procurement of about 940 Special Operations Forces Laser Acquisition Marker Special Operations Forces Laser Rangefinder Designators, associated data and provisioning items.

The SOFLAM SOFLRD is a laser designator and rangefinder that provides Special Operations Forces personnel the capability to locate and designate critical enemy targets. The device may also be used for remote firing and for mounting accessories such as pointers and night sights.

The contract was awarded by the Naval Surface Warfare Center in Crane, Ind. Work on the contract will be performed in Apopka, Fla.

Los Angeles Emergency Communication System
Northrop has completed the installation of a computer-aided dispatch system for the city of Los Angeles.

Northrop's Information Technology unit led the project, which was a seven-year integration process combining the Los Angeles Police Department's existing system and the Northrop system, which includes the company's CommandPoint Mobile applications.

The system will allow improved emergency response in the city, including improved communications capability between the command center and field units. Los Angeles is the largest single police department implementation of Northrop Grumman CommandPoint Mobile products in the nation.

Los Angeles' Northrop (NYSE: NOC) is a $30 billion global defense and technology company.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/09/24/daily1.html?surround=lfn)

Zev is at it again. He was a co-author on a ballot initiative back in 1986 that limited development in Los Angeles because his initiative won. Now he's looking to overturn the easing of limits on construction in favor of low income housing units in new developments. The city may have outgrown him, or did it? latimes.com :ohno:

Northrop wins two contracts for carrier work

Los Angeles Business from bizjournals
September 28, 2007

Northrop Grumman Corp. said Friday it has won a pair of contracts from the U.S. Navy for maintenance and modernization work on aircraft carriers in San Diego and Yokosuka, Japan.

One contract has Northrop manage the maintenance of the USS Nimitz, USS Ronald Reagan and other nuclear aircraft carriers at North Island in San Diego. The contract has a one-year base with four one-year options and is worth $120 million.

The second is a $1.8 million contract to begin preparations for the arrival of the USS George Washington in Japan in 2008. Northrop will work with Sumitomo Heavy Industries on the aircraft carrier support in Japan.

Northrop's Newport News sector is the prime contractor for the work. Northrop (NYSE: NOC) is based in Los Angeles and is the nation's largest shipbuilder.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/09/24/daily34.html?surround=lfn)

I am so glad to hear of all this news regarding Northrop! :cheers:

Northrop gets Navy deal worth up to $43M

Los Angeles Business from bizjournals
October 1, 2007

Northrop Grumman Corp. was awarded a contract from the U.S. Navy on Monday with a high-end value of $43 million.

Under the deal, Northrop will provide management and technical support for foreign military sales, a government-to-government program for selling defense equipment, services and training that furthers national security and foreign policy objectives.

The contract's one-year base period is worth $10 million and includes three one-year option periods.

Northrop (NYSE: NOC) is a defense and technology company based in Los Angeles.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/01/daily4.html?surround=lfn)

Jacobs announces two contracts

Los Angeles Business from bizjournals
October 2, 2007

Jacobs Engineering Group Inc. won a pair of overseas contracts Tuesday.

British Nuclear Group Sellafield Ltd.
Jacobs won an 2-year framework contract for environmental services at Sellafield, the United Kingdom's largest nuclear reservation, where spent nuclear fuel is reprocessed and recovered nuclear material is made into new nuclear fuel

Jacobs already supplies other services to the Sellafield site through existing Multi Discipline and Single Discipline Design House framework and Resource Enhancement contracts.

Financial terms of the deal were not disclosed.

Morocco hospital project
Jacobs won a contract from the European Investment Bank to provide owner-engineer support on a large-scale hospital upgrade program in the Kingdom of Morocco that will see the revamp or reconstruction of 17 hospitals in 17 different cities in the country.

Terms of the deal were not disclosed, but the total investment cost of the project is listed at 141 million euros.

Jacobs will provide necessary technical and functional assistance during the conceptual definition phase, managing the work from its Paris office.

Pasadena's Jacobs (NYSE: JEC) provides technical, professional, and construction services. It has 48,000 employees worldwide.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/01/daily14.html?surround=lfn)

Tetra Tech buys consulting firm

Los Angeles Business from bizjournals
October 2, 2007

In what CEO Dan Batrack called a "first significant step in global expansion," Tetra Tech Inc. purchased consulting firm ARD Inc. on Tuesday.

Terms of the deal were not disclosed. ARD is based in Burlington, Vt., and has more than 25 offices and 760 employees worldwide. ARD had annual revenue of about $110 million and net revenue of about $65 million during the last 12 months.

ARD will become part of Tetra Tech's Resource Management segment and will add about two cents a share to its earnings in 2008.

Pasadena-based Tetra Tech (NASDAQ: TTEK) is a provider of consulting, engineering, and technical services.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/01/daily13.html?surround=lfn)

Reliance closes on Metalweb

Los Angeles Business from bizjournals
October 2, 2007

On Tuesday, Reliance Steel & Aluminum Co. completed its purchase of Metalweb plc.

Birmingham, England-based Metalweb will operate as a subsidiary of Reliance, with current management remaining in place.

Terms of the deal, which was first announced in September, were not disclosed.

Metalweb has three other service centers located in Manchester, London and Oxford, England, according to a release. The company specializes in the processing and distribution of primarily aluminum products for non-structural aerospace components and general engineering parts for high-end industrial applications. The company had net sales of about $53 million in its fiscal year ended May 31, 2007, according to a release.

Los Angeles-based Reliance Steel & Aluminum Co. (NYSE: RS) is a metals service center with more than 180 locations in 37 states and Belgium, Canada, China and South Korea.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/01/daily12.html?surround=lfn)

ABC leads ratings first week of new TV season

By Steve Gorman
October 2, 2007

LOS ANGELES (Reuters) - ABC, seeking to reignite a ratings turnaround that faltered last year, finished the first week of the new broadcast season as the No. 1 U.S. network in prime time, Nielsen Media Research said on Tuesday.

Buoyed by such hits as "Grey's Anatomy" and "Dancing with the Stars," ABC ranked as the most watched network overall for the week ended September 30 and tied with NBC for first place among viewers aged 18 to 49, the group most prized by advertisers.

The 18-49 ranking for NBC, which has struggled to shake off its own three-year long ratings slump, comes with an asterisk, though. NBC benefited from a Nielsen rule change that allowed it to add viewers to last Monday's season premiere of "Heroes" from a Saturday replay of the show.

Starting this season, Nielsen agreed that viewers watching a repeat in the same week as the original broadcast could be counted in the ratings tally as long as the replay carries the same advertising content.

NBC enjoyed the added benefit of being able to factor out what otherwise would have been a low-rated hour of TV from its weekly ratings average.

The return of "Grey's Anatomy" ended up as the week's highest-rated single show in the 18-49 demographic. Going head to head with ABC's hit medical drama, the CBS powerhouse cop series "CSI: Crime Scene Investigation" scored the week's biggest total audience with its season premiere.

FEW NEW SHOWS BREAK THROUGH

ABC had the most watched new series so far this season with the debut of its "Grey's Anatomy" spin-off, "Private Practice," but NBC's sci-fi action remake, "Bionic Woman," was No. 1 in the 18-49 race among new shows.

Those two shows, and ABC's male ensemble drama "Big Shots," were the only new programs to crack Nielsen's top 20 by either measure during the first week.

After two years of solid growth, the Walt Disney Co-owned ABC stumbled in the ratings last season, due in part to the loss of its highly watched "Monday Night Football" franchise, which moved to sister sports network ESPN.

General Electric Co-controlled NBC, has languished in the Nielsens since longtime comedy favorites "Friends" and "Frasier" ended their runs in 2004.

All four major networks -- ABC, CBS, NBC and Fox -- posted year-to-year ratings declines for the first week of the 2007-08 season, which broadcast executives attribute to rapidly changing viewing habits.

In particular, industry experts point to the growing use of digital video recorders (DVRs) such as TiVo, which let viewers easily save their favorite shows and watch them at their leisure.

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Source: Reuters (http://www.reuters.com/article/technology-media-telco-SP/idUSN0241516720071002?sp=true)

CSC wins part of $4B contract

Los Angeles Business from bizjournals
October 4, 2007

Computer Sciences Corp. is one of 16 firms that will be able to bid on information technology contracts being offered by the Centers for Medicare and Medicaid Services indefinite-delivery, indefinite-quantity contract worth up to $4 billion.

The contract has a one-year base period and nine one-year options. CSC said in a statement that its portion of the contract, which will be derived from bidding and winning competitive delivery orders, could be worth up to $200 million.

CSC will provide software development and maintenance, and systems integration for any contracts won under the deal.

El Segundo's CSC (NYSE: CSC) is a global information technology company.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/01/daily36.html?surround=lfn)

Northrop wins piece of $50B IT deal

Los Angeles Business from bizjournals
October 4, 2007

Northrop Grumman Corp. is one of 29 winners of a portion of a federal information technology contract worth up to $50 billion.

Northrop's exact stake in the deal was not disclosed.

The award is part of the Alliant indefinite-delivery/indefinite quantity contract aimed at improving service and increasing efficiency through an upgrade of the government's IT infrastructure. The contract has a five-year base period and a five-year option.

Northrop's team will provide computer network support, software engineering and other computer services to civilian agencies and the Department of Defense.

Los Angeles' Northrop (NYSE: NOC) is a $30 billion global defense and technology company.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/01/daily33.html?surround=lfn)

New IT security center could boost Northrop's job base in Maryland

By Scott Dance, Baltimore Business Journal
Los Angeles Business from bizjournals
October 5, 2007

Northrop Grumman Corp. will open a new 34,000-square-foot facility in Anne Arundel County, Maryland, to expand its team devoted to creating secure information technology systems for government and businesses.

The company (NYSE: NOC) will mark the project's completion with an Oct. 8 ceremony and tour at the new office, called the Information Assurance Innovation Center, at 8666 Veterans Highway in Millersville.

Northrop Grumman has more than 11,000 employees in Maryland and Jerry Agee, corporate vice president of the company's mission systems sector, said the expansion could mean that number will grow.

"Northrop Grumman has been expanding its information assurance business, and this new facility positions us for even greater growth in the state of Maryland," Agee said in a statement.

The information assurance team researches and develops information technology and information assurance systems, focusing on confidentiality, security and integrity of data.

Los Angeles-based Northrop is a $30 billion defense contractor with 120,000 employees nationwide.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/01/daily45.html?surround=lfn)

Tetra Tech wins pair of government contracts

Los Angeles Business from bizjournals
October 8, 2007

Tetra Tech Inc. won two contracts Monday, one with the Federal Aviation Administration and one with the U.S. Navy.

U.S. Navy
The $100 million contract awarded by the Navy will have Tetra Tech provide environmental remediation services at U.S. Navy and Marine Corps installations primarily in the southwestern United States.

The contract has a one year base period with four one-year options.

The contract was given to Tetra Tech's EC operating unit.

FAA
The five-year, $52 million deal with the FAA's Office of Security and Hazardous Materials will have Tetra Tech provide information technology services, including standard desktop and helpdesk services, application development and various security services.

The contract was given to Tetra Tech's Advanced Management Technology Inc. unit.

Pasadena's Tetra Tech (NASDAQ: TTEK) is a provider of consulting, engineering, and technical services.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/08/daily3.html?surround=lfn)

CompuMed Wins Corrections Contract

By ALLEN P. ROBERTS Jr.
October 8, 2007

CompuMed Inc. said Monday that it was awarded a contract by the California Department of Corrections to provide remote electrocardiogram services for the state’s correctional facilities.

The Los Angeles [company], one of the largest operators of remote-monitoring technology, will link the correctional facilities with its network of cardiologists to evaluate and monitor patients. CompuMed said its method is more cost-effective than on-site monitoring.

“The quality of care provided by correctional facilities is a burning issue for healthcare providers,” said CompuMed CEO Maurizio Vecchione. “CompuMed is in a position to help correctional facilities provide the highest standard of care when it comes to cardiology services, while at the same time reducing their liability significantly.”

A key advantage of the system includes a feature that automatically sends ECG results to a trained cardiologist for review when the results are abnormal, the company said. The value of the contract was undisclosed.

Shjares in CompuMed were up 10 percent, or 5 cents, to 55 cents in afternoon trading Monday.

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Source: Los Angeles Business Journal (http://www.labusinessjournal.com/article.asp?aID=03972406.99584102.1537250.75741402.2749198.309&aID2=118241)

Northrop gets contract worth more than $40M

Los Angeles Business from bizjournals
October 9, 2007

Northrop Grumman Corp. was awarded a five-year, follow-on contract worth more than $40 million from the U.S. Department of Defense to support logistics data and information technology applications.

Under the contract, Northrop will manage development, operations and maintenance support, and enhancements to the Business Partner Network Support Environment, a Web-enabled logistics application that hosts multiple databases from the Defense Department and federal government.

The suite of databases includes the Central Contractor Registration, which collects, validates, stores and disseminates data from acquisitions by federal agencies.

Northrop Grumman's teammates on this contract include ePlus, Science Applications International Corp., and Recovery Point Systems. Work on the contract will be conducted in Battle Creek, Mich.

Los Angeles' Northrop (NYSE: NOC) is a defense and technology company.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/08/daily16.html?surround=lfn)

CSC discloses contracts worth $1.1B

Los Angeles Business from bizjournals
October 9, 2007

Computer Sciences Corp.'s North American Public Sector unit announced Tuesday it has signed 123 previously unannounced contracts and subcontracts during the second quarter.

The contracts have a total estimated top-end value of approximately $1.1 billion. The timeframes range from one month to seven years.

Defense contracts accounted for 83 awards worth up to $900 million. Civil agencies accounted for the other 40 awards worth up to $200 million.

El Segundo-based CSC (NYSE: CSC) will be performing a wide array of information technology services under the contracts, including analysis, systems integration, consulting, engineering, maintenance and logistics support.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/08/daily11.html?surround=lfn)

Jacobs to support Naval Research Laboratory

Los Angeles Business from bizjournals
October 9, 2007

Jacobs Engineering Group Inc. has been awarded a contract from the Naval Research Laboratory for ocean dynamics and prediction oceanography research.

Financial terms of the five-year deal were not disclosed.

The research efforts from Jacobs are aimed at enhancing the Navy's capabilities for real-time ocean monitoring, nowcasting, and forecasting.

The work will be performed at the Stennis Space Center, Miss.

Pasadena-based Jacobs (NYSE: JEC) provides technical, professional, and construction services.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/08/daily10.html?surround=lfn)

Northrop gets $47M Navy contract

Los Angeles Business from bizjournals
October 10, 2007

Northrop Grumman Corp. has been awarded a follow-on information technology contract worth up to $47 million from the U.S. Navy in support of the Navy's information-sharing system with law enforcement agencies.

The Naval Criminal Investigative Service Law Enforcement Information Exchange system facilitates the sharing of data for local, state and federal law-enforcement agencies. Under the terms, Northrop will launch, operate and maintain the system for both new and existing users of the system.

The contract has one base year and four one-year options, with work taking place out of Northrop's IT sector in Reston, Va. In 2004, Northrop was awarded the first contract to develop the system for agencies in the states of Washington and Virginia. Since then, the system is used by agencies in Florida, Georgia, Hawaii, Texas, and the Washington, D.C. region.

North Carolina and Southern California will be using the system by year's end.

Los Angeles' Northrop (NYSE: NOC) is a global defense and technology company.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/08/daily20.html?surround=lfn)

NBC Plans Studio Relocation

By HOWARD FINE and DANIEL MILLER
Los Angeles Business Journal Staff
October 10, 2007

NBC is set to announce Thursday that it will be relocating its longtime Burbank studios to the NBC/Universal property in Universal City by 2011, sources said late Wednesday.

The L.A. Mayor’s office acknowledged the move but declined to provide any further details until a news conference scheduled for Thursday. Burbank and NBC officials could not be reached for comment.

Burbank has been home to NBC Studios since 1962; the studios achieved national notoriety with frequent references by former “Tonight Show” host Johnny Carson. Since General Electric Co. acquired NBC in 1985, some of the operations once housed at the studios have been transferred to the NBC/Universal property in Universal City.

NBC/Universal last winter announced a $3 billion expansion of its Universal City property, including the construction of 2,900 apartments, lofts and condominiums; additional office space; and an upgrade of its studio and entertainment facilities. The proposal is currently working its way through the city entitlement process.

If General Electric/NBC Universal were to dispose of the Burbank studios it would likely have a variety of takers. The Burbank Media District in which the property is located is a red-hot office submarket.

NBC Studios could opt to lease out the space. As of the third quarter, the vacancy rate for Class A space in Burbank was 3.4 percent, according to Grubb & Ellis Co. That’s down from 4.2 percent a year ago. What’s more, real estate industry experts said that the vacancy rate in the media district is 3 percent.

NBC Studios also could also be sold – and likely for a pretty penny. There have been significant studio sales this year that could serve as benchmarks for the possible sale of the television studio. Private equity firm Carlyle Group paid $150 million for Manhattan Beach Studios in a deal that closed in mid-June. In July the Business Journal reported that local real estate firm Hudson Capital LLC had agreed to pay about $205 million for Sunset Gower Studios.

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Source: Los Angeles Business Journal (http://www.labusinessjournal.com/article.asp?aID=389219.6432354.1538303.33682102.06626102.963&aID2=118322)

Northrop gets $220M NSA contract

Los Angeles Business from bizjournals
October 15, 2007

Northrop Grumman Corp. on Monday was awarded an information technology contract from the National Security Agency to develop an advanced information management and data storage system.

The 51-month contract is a cost-plus-award-fee contract worth up to $220 million.

The data system is part of an effort to modernize the nation's electronic intelligence capabilities. The system will provide uniform access to electronic intelligence data collected across the various agencies within the Defense Department.

Northrop (NYSE: NOC) is a $30 billion defense and technology company based in Los Angeles.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/15/daily8.html?surround=lfn)

Houston law firm to open L.A. office

By Ford Gunter, Houston Business Journal
Los Angeles Business from bizjournals
October 16, 2007

Houston's Lanier Law Firm is expanding to the West Coast.

The 28-attorney firm, which opened an office in Manhattan in 2005, said its third office will be in Los Angeles.

Founder Mark Lanier will head the new office, with Shepard Hoffman serving as of counsel and Julie Drenner joining the firm as an associate.

"We felt the nationwide nature of our practice made it important to establish a permanent California presence," Lanier said.

The Los Angeles office will concentrate on asbestos exposure, commercial litigation, intellectual property, pharmaceutical liability, maritime law and product liability.

Lanier has gathered almost $1 billion in verdicts and settlements, including a $253.5 million decision in favor of the family of an Angleton marathon runner who died after taking the drug Vioxx for less than a year.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/15/daily23.html?surround=lfn)

Jacobs gets deal from USGS

Los Angeles Business from bizjournals
October 16, 2007

Jacobs Engineering Group Inc. was awarded a blanket purchasing agreement from the U.S. Geological Survey worth up to $39 million on Tuesday.

Under terms of the deal, Jacobs will provide scientific and technological services to the Florida Integrated Science Center sites throughout the state of Florida, including six major offices and other field stations. The areas of support will include geology, hydrology, biology, chemistry, and oceanography.

The purchasing agreement has a one base year with four additional one-year options.

Pasadena's Jacobs (NYSE: JEC) provides technical, professional, and construction services globally. The company has 48,000 employees worldwide.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/15/daily18.html?surround=lfn)

Allergan completes Esprit buy

Los Angeles Business from bizjournals
October 17, 2007

On Wednesday, Allergan Inc. closed on its $370 million purchase of Esprit Pharma Holding Company Inc.

East Brunswick, N.J.-based Esprit is a pharmaceutical company with expertise in the genitourinary market and currently markets its SANCTURA product for the treatment of overactive bladder. It recently got approval for SANCTURA XR, a once-daily formulation of the drug, according to a release, and Allergan expects to launch the drug in the first quarter of 2008.

The deal was first announced on September 19.

Allergan expects Esprit to contribute revenue of between $6 million and $12 million in the fourth quarter, and expects the transaction to be dilutive in 2007 in a range of 4 cents to 6 cents a share.

Irvine-based Allergan (NYSE: AGN) discovers, develops and commercializes products in the ophthalmology, neurosciences, medical dermatology, medical aesthetics, obesity intervention and other specialty markets.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/15/daily28.html?surround=lfn)

Wescom, Great American Merge

By ALLEN P. ROBERTS Jr.
October 17, 2007

Wescom Credit Union said Wednesday that San Diego-based Great American Credit Union will merge into it.

The move will nearly double Wescom’s presence in the San Diego region.

As part of the agreement, Wescom of Pasadena said it will maintain and operate all four Great American branches in the San Diego area and will offer employment to all existing Great American employees.

The merger is expected to be completed by Dec. 1 if it is approved by Great American’s members.

Wescom operates more than 50 branches in the Southern California region.

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Source: Los Angeles Business Journal (http://www.labusinessjournal.com/article.asp?aID=34658973.5664005.1541423.1010116.1763163.350&aID2=118562)

Skechers to Build Huge Distribution Center

By ALLEN P. ROBERTS Jr.
October 17, 2007

Skechers USA Inc. said Wednesday that it is planning to build a 1.8-million-square-foot distribution center in Ontario.

The Manhattan Beach-based shoe retailer said the new center, which is estimated to be the largest facility in the country to have a single occupant, is expected to be completed in the first quarter of 2009 and will centralize its North American distribution operations.

The facility has five buildings and is more than a half-mile long and will act as the hub for the company’s goods, which are predominantly made in China and shipped to the ports of Los Angeles and Long Beach.

The cost of construction was not released but industry analysts put the cost well above $100 million.

Shares in Skechers were up 1 percent, or 20 cents, to $20.72 in afternoon trading Wednesday on the New York Stock Exchange.

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Source: Los Angeles Businesss Journal (http://www.labusinessjournal.com/article.asp?aID=04071589.6764538.1541410.2193381.7258781.238&aID2=118561)

Salem buys Miami radio station

By South Florida Business Journal
Los Angeles Business from bizjournals
October 19, 2007

Radio One said it has agreed to sell WTPS-AM in Miami to Salem Communications Corp. for about $12.25 million.

Salem began operating the station immediately under a local marketing agreement. Radio One expects the transaction to close during the fourth quarter of 2007.

WTPS was a talk-radio station focusing on African-American and urban listeners. The station's new call letters on 1080 will be WMCU and it will now feature Christian programming.

Camarillo-based Salem Communications (NASDAQ: SALM) is a U.S. radio broadcaster, Internet content provider and magazine book publisher targeting audiences interested in Christian and family-themed content.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/15/daily49.html?surround=lfn)

Northrop, Hittite sign supplier deal

By Mass High Tech
Los Angeles Business from bizjournals
October 19, 2007

Hittite Microwave Corp. has entered into an agreement to license a line of integrated circuit technology from aerospace and defense contractor Northrop Grumman.

Hittite, a Chelmsford, Mass.-based maker of integrated circuits, modules and subsystems for the radio-frequency microwave market, reports it will license the Velocium line of monolithic microwave integrated circuit products and related intellectual property from Northrop's space technology sector.

Hittite officials said the deal expands its high-frequency product line and gives a boost to the company's Hittite's supply chain.

In addition, Hittite plans to use Northrop as a foundry supplier for gallium arsenide wafers used in the licensed products, and will also have preferred access to Northrop's advanced semiconductor process technology for new Hittite products.

Hittite (NASDAQ: HITT) reported a 2006 profit of $42.7 million on revenue of $130 million.

Los Angeles-based Northrop (NYSE: NOC) is a defense and technology company.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/15/daily46.html?surround=lfn)

Delta adding two Hawaii flights from LAX

By Pacific Business News
Los Angeles Business from bizjournals
October 23, 2007

Delta Air Lines will add two new daily flights to Hawaii from Los Angeles starting next year.

The flights to Lihue and Kona begin on June 5, the Atlanta-based airline said in a news release on Tuesday.

The additional flights bring to five the number of nonstop flights Delta (NYSE: DAL) operates from Los Angeles to the islands.

"The addition of flights to Lihue and Kona marks another step in Delta's efforts to establish the world's broadest network of destinations for our customers," said Glen Hauenstein, Delta's executive vice president-network planning and revenue management.

The announcement comes two months after Delta dropped a direct flight between its Cincinnati hub and Honolulu. Delta also offers direct flights to Hawaii from Atlanta and Salt Lake City.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/22/daily13.html?surround=lfn)

Jacobs gets FAA deal worth up to $58M

Los Angeles Business from bizjournals
October 23, 2007

Jacobs Engineering Group Inc. on Tuesday received a contract worth up to $58 million from the Federal Aviation Administration.

Under the deal, Jacobs will provide architect and engineering support services for both updating and maintaining design packages and other facility evaluations at the FAA's Terminal Program Operations facilities.

The indefinite delivery contract has a two-year base period of performance, plus option years. If all options are exercised, the period of performance may extend through September 24, 2012.

Also, Jacobs announced it will release its fourth quarter results before the market opens on November 6.

Pasadena's Jacobs provides technical, professional, and construction services. The company has more than 49,000 employees worldwide.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/22/daily12.html?surround=lfn)

L.A. Port Plans Massive Marine Facility

By RICHARD CLOUGH
Los Angeles Business Journal Staff
October 18, 2007

The Port of Los Angeles is rolling out preliminary plans today to build a massive marine research facility that officials hope will stimulate economic activity and help revitalize the San Pedro community.

Geraldine Knatz, executive director of the port, has been working behind the scenes for nearly two years to generate support for the project, which would be built on a 28-acre patch of land currently serving as a petrol chemical terminal.

The site, adjacent to downtown San Pedro, is a key battleground in the port’s waterfront development efforts and planners expect the high-level research facility to be a catalyst for the area’s economic resurgence.

“We have this vision of a premier research institution that attracts people from around the world,” Knatz said. “We’re talking about bringing a new industry to San Pedro and new jobs. These are good, high-paying jobs that would be a boost to the San Pedro economy.”

Knatz is expected to unveil the concept for the project, called City Dock No. 1, at tonight’s Los Angeles Harbor Commission meeting. Part of the impetus to move forward with the project, she said, came last week when the Annenberg Foundation said it will commit $50,000 in grant money to begin planning the facility.

The proposed research facility would include academic laboratories, government research facilities and real estate for future maritime-related businesses – what planners are calling a “business incubator.” Ideally, Knatz said, the facility would become a global leader in the study of climate change and sea level rise.

It is too early, she said, to estimate the cost or timeline of the project.
The move comes after the port announced in August it was terminating the lease of New Orleans-based liquid bulk operator Westway Terminal Co. Inc., which has occupied the site since 1996, as part of a larger effort to make the San Pedro waterfront more community-friendly. The port bought out the remaining 18 years of Westway’s contract for $17 million.

The terminal is zoned for commercial activities and local business leaders envision an economic rebirth in San Pedro built, in part, around this new research institute.

“This is the kind of thing that over the long term can lead to an economic wealth cycle for the community,” said Herb Zimmer, chairman of the San Pedro Chamber of Commerce committee to promote waterfront economic development. “It breeds ideas and innovations and things that are going to become the basis of the new economy.”

Zimmer, owner of PriorityOne Printing, Copying & Graphics in downtown San Pedro, opened his shop 28 years ago and said he has seen the local economy deteriorate as years of neglect and the decline of the once-thriving fishing industry have eliminated many jobs from the blue-collar community.

“I want to see the ports replace the jobs that we lost during the ’70s,” he said.
The port is currently in the middle of multi-year San Pedro waterfront improvement project, which includes the construction of a cruise ship promenade and the development of new parks and walkways. In all, the redevelopment efforts span 400 acres.

As part of those efforts, the port evicted Westway from its Main Channel terminal, which Knatz said was viewed as a hazardous area by the community.
The port already has a marine research facility known as the Southern California Marine Institute, which is a partnership of eight California State University schools, as well as USC and Occidental College. But with its cramped facilities hidden within Terminal Island, the institute has welcomed the idea of expanding its laboratory space and moving to a more attractive location along the Main Channel, which has almost 500,000 square feet of warehouse space and nearly 5,000 feet of wharf.

Knatz said the institute may relocate to the proposed research facility, but that has not yet been determined.

This project is already almost two years in the making for Knatz. She first had the idea to push for a marine research facility a little before she took over as executive director in January of 2006. The notion stagnated until this summer, when the Westway agreement changed the landscape. At that point, she said, her ideas seemed to become more viable.

Though she said she “wasn’t really out hunting” for financial support, she received word last week that the Annenberg Foundation, a Radnor, Pa.-based philanthropic institution, would give a $50,000 grant to help move the project along.

“It helped spur a recent flurry of activity,” she said.

The port will likely lose future revenue by dedicating an entire terminal to research and related pursuits – a sacrifice the port seems willing to make.
“We recognize that it’s not going to make us the kind of money as if it was a container terminal, and that is not part of this plan,” she said.

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Source: Los Angeles Business Journal (http://www.labusinessjournal.com/industry_article.asp?aID=94782374.1890482.1541579.7540644.1541696.105&cID=b&page=1)

Virgin America starts L.A. service

By Jeff Clabaugh, Washington Business Journal
Los Angeles Business from bizjournals
October 24, 2007

Virgin America, which began flights from Dulles International Airport to San Francisco last month, now has Washington to Los Angeles flights.

The start-up airline Wednesday began twice-daily service from Dulles to Los Angeles International Airport. Virgin America began operations in August, with flights from San Francisco, Los Angeles and New York.

The San Francisco area-based airline, founded and funded in part by British billionaire Richard Branson plans to serve as many as 10 cities within its first year of operation and up to 30 cities within five years.

Virgin America's Dulles to Los Angeles flights starts with coach fares as low as $139 each way and first class fares as low as $499 each way.

Virgin America operates a fleet of new Airbus A320 jets, and has 31 planes on order currently. It says it plans to hire more than 1,000 new employees a year.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/22/daily20.html?surround=lfn)

CSC gets Navy deal worth up to $430M

Los Angeles Business from bizjournals
October 25, 2007

Computer Sciences Corp. has been given a contract worth up to $430 million to provide range support services to the U.S. Naval Air Warfare Center, Aircraft Division, in Patuxent River, Md.

The contract has a one-year base period, two one-year year options and two performance-based award terms

CSC will provide technical support services, such as program management, logistics, training and simulation. CSC will provide on-site management, technical and administrative personnel to conduct analytical studies, engineering and software programming for hardware.

El Segundo's CSC (NYSE: CSC) is an information technology company.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/22/daily33.html?surround=lfn)

United to add daily flight from Baltimore to LAX

By Scott Dance, Baltimore Business Journal
Los Angeles Business from bizjournals
October 26, 2007

United Airlines has added a third daily nonstop flight from Baltimore to Los Angeles for the winter season.

The flight will leave Baltimore/Washington International Thurgood Marshall Airport at 9:15 a.m. each day to arrive at Los Angeles International Airport at 12:07 p.m. The new flight is part of the airline's winter schedule change, BWI spokesman Jonathan Dean said Friday.

The announcement comes three weeks after Southwest Airlines (NYSE: LUV), the airport's dominant carrier, removed its two daily flights between Baltimore and Los Angeles from its schedule.

United ranks third at the airport in passengers carried, with a 6 percent share in August. The airline ranks sixth in daily departures, with 16.

Southwest has 184 daily departures and carried 54 percent of airport passengers in August.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/22/daily43.html?surround=lfn)

OSI gets $14M order

Los Angeles Business from bizjournals
October 29, 2007

OSI Systems Inc.'s optoelectronics and manufacturing division has received a $14 million order from EDO Corp. that will manufacture devices for the Department of Defense.

The phase 3 order is for sub-assemblies for EDO's "CREW 2.1" vehicle-mounted electronic jammer systems eventually delivered to the DoD. The contract follows the previously received phase 1 and 2 contracts from EDO worth $5 million and $22.1 million, respectively.

Hawthorne-based OSI Systems (NASDAQ: OSIS) designs and manufactures electronic systems and components for critical applications in markets including homeland security, healthcare, defense and aerospace.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/29/daily5.html?surround=lfn)

Northrop to Bid for Coast Guard Contract

By ALLEN P. ROBERTS Jr.
October 29, 2007

Northrop Grumman Corp., said Monday that it plans to lead a team that will compete to design a digital communication system for the Coast Guard.

The system, to be called the Nationwide Automatic Identification System, will continually transmit and receive voiceless exchange of vessel data, including identity, position, speed, course and destination, Northrop said in a statement. The potential value of the contract wasn't disclosed.

Northrop said the system will improve vessel and port safety by supplying information for collision avoidance. It will also help to secure coastlines by the detection, identification, and classification of vessels hundreds of miles offshore the Coast Guard's Web site said.

The Northrop team includes Allied Technology Group Inc., CACI International Inc., and Washington Group International Inc.

Shares in the Los Angeles-based defense and government contractor rose 1.1 percent to $82.85 in afternoon trading Monday on the New York Stock Exchange. Shares in Northrop have gained 24 percent so far this year.

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Source: Los Angeles Business Journal (http://www.labusinessjournal.com/article.asp?aID=72849281.7968082.1547507.3472885.6249858.441&aID2=119030)

Asia Major

Even as local garment manufacturing stagnates, the Korean apparel market in L.A. has grown into a thriving, $5 billion industry.

By BOOYEON LEE
Los Angeles Business Journal Staff
October 29, 2007

Sixteen years ago, when Yoon Huk Kim set up shop in a corner of the Los Angeles fashion district downtown and started selling inexpensive women’s knits and skirts, he was one of about 200 Korean wholesalers in the area.

Today, there are about 1,000 Korean wholesalers in the Los Angeles fashion district, most of whose narrow storefronts sell trendy women’s clothing produced in their factories nearby.

Indeed, the Korean-owned portion of the 80-block fashion district is a booming submarket doing about $5 billion in annual sales, according to the Korean Apparel Manufacturers Associations. That little-known section represents about a quarter of the entire Los Angeles fashion industry, which some believe has overtaken New York as the nation’s top fashion manufacturing hub.

What’s more, the Korean apparel industry has been faring better than most other L.A. fashion manufacturers losing work to China, because it has managed to keep more of its jobs here. In fact, new wholesale centers are popping up around the Korean apparel industry to accommodate hundreds of new stores.

The Korean wholesale section has managed to thrive mainly because the stores do business differently than the mainstream fashion district nearby.

At show rooms in the non-Korean fashion district, in and near the 1.8 million-square-foot California Market Center (which is owned by Korean-born developer David Lee), customers tend to put in orders for mostly high-end designer-brand clothing. Then they wait for the apparel to be assembled and delivered.

But the clientele of the Korean manufacturers tend to be owners of independent boutiques and retail chains who are attracted to the cash-and-carry aspect. They buy pre-designed samples that typically are stacked up in the back room. That way, a buyer can walk out with a black plastic bag stuffed with, say, 10 orders of a dress she spotted only a few minutes before.

Moreover, the Korean manufacturers display samples that change styles every two weeks, instead of the 10-week cycle that dominates the mainstream fashion industry – another plus for the buyers of boutiques, who want to be up on the very latest in fashion.

Being latest in fashion has not always been a strong suit for Korean wholesalers. In 1991, when Kim first opened his store to sell to swap mart buyers, his only focus was to keep the prices as low as possible.

“Now, we’re more about staying competitive with the latest designs,” said Kim, whose clientele has expanded to mostly South American buyers who make weekly trips to the downtown garment district.

Of course, that quick fashion turnover causes fierce competition between local Korean business owners. Only days after a popular frock hits one storefront, the same or a very similar design may pop up in multiple windows, all vying to be purchased by the same customers.

Low prices are another attraction. The Korean merchants may sell a dress for $2.50 – provided the buyer takes multiple copies. The mainstream wholesale locations in the fashion district, such as the New Mart and the California Mart, typically sell dresses for several times that amount. Of course, they also tend to sell much higher-priced exclusive apparel as well.

Constant expansion

The generally thriving Korean manufacturing industry is an anomaly because apparel manufacturing employment has seen decline.

As of September, there were 57,900 workers in apparel manufacturing in the county compared to 60,100 a year ago, according to the Los Angeles Economic Development Corp. The number of workers in the wholesale apparel industry in Los Angeles has decreased to 18,800 this year from 19,200 a year ago.

The Korean submarket is not broken out separately, but it’s clear there’s a building boom there. Around the San Pedro Mart, which has a high concentration of Korean entrepreneurs, at least five large-scale construction projects are going up including a 650,000-square foot commercial condominium project at the corner of San Pedro and 14th Place called the Los Angeles Fashion Center or L.A. Face. It will include 196 wholesale showrooms, and about 80 percent of the units have been sold, predominantly to Korean American business owners.

“The area is full and there is constant expansion,” said Bobby Hines, an international trade specialist downtown with the U.S. Department of Commerce who works closely with the Korean apparel industry in Los Angeles.

The Korean section of the fashion district, roughly 24 blocks, is one of the areas of downtown known for foot traffic, where merchandisers dart in and out of stores with clipboards in hand.

Nearly all of the wholesalers in the district have their own manufacturing factories scattered from downtown to Vernon, City of Commerce, and even Orange County. An additional 1,000 just operate factories without accompanying showrooms.

The retail area packed with buildings painted orange, blue and green is anchored by the San Pedro Mart, which was built by Korean manufacturers tired of being harassed by landlords who insisted on collecting what’s called “key money,” or a flat sum paid just to move in. For most wholesalers, this illegal practice amounted to a $100,000 cash payment every time the lease was renewed, said Hailey Huh, executive director of the Korean Apparel Manufacturers Association.

Unfortunately, she said, many Korean landlords who bought sections of San Pedro Mart still hold to the practice of collecting the money under the table.

Most of the wholesale stores have factories nearby, like Finesse Apparel Inc.

The company president Jung Han operates both the factory on Stanford Avenue and the wholesale showroom in San Pedro Mart. Han, who operated about a dozen retailers before entering the manufacturing business 12 years ago, said what he calls the “temperament of the Korean people” jives well with his line of business.

“We generally have fast hands and adapt really quickly to changing situations. Our production line has to be reassembled every time a new design goes out and once it does, within days, 20 other wholesalers are selling the same style,” Han said. “It’s competitive and physically taxing. Being immigrants, we were also more willing to take risks and do the kind of dirty work others may have been afraid to take on.”

One of the district’s most successful retailers is Forever 21, a $1 billion company, which has been in the news because of numerous lawsuits filed against it for alleged copyright violations. (See sidebar.)

Humble beginnings

The Korean section originated near Santee Alley in the late 1970s from a handful of rag jobbers. They bought left-over textiles and fashioned them into simple dresses and sold them to swap marts.

Huh said the area took off mainly because of South Korea’s thriving textile industry and the tight network of Korean-owned sewing factories, manufacturers and retailers. She said that in the mid-1980s, manufacturers would regularly load a plane with textiles in Seoul and fly them to Los Angeles where they were assembled.

At that time, about 2,000 local trim and sewing factories that contracted with perhaps a couple dozen manufacturers were operated by Koreans as were hundreds of retailers.

“What resulted is an ecosystem that allowed for a huge growth spurt in the industry. The entire production line – from textile, trim, sewing to fabric printers – they are all owned by Koreans,” said Huh of the Korean manufacturers association.

By the late 1980s, the number of Korean-owned manufacturers swelled from a couple dozen to a couple hundred, thanks to the arrival of Korean manufacturers from South America, where they had long operated textile mills and wholesale shops. Many brought South American customers with them. As a result, the district today has a Korean-South American vibe to it.

Kim, the owner of Ire Fashion in San Pedro Mart, grew up working in his father’s clothing mill in Sao Paolo, Brazil. He worked as a sewing contractor in New York’s garment district before opening his first manufacturing business on Maple Avenue in 1991.

“That was a very profitable time,” said Kim, whose customers are mostly store owners from Brazil and Venezuela. “But now, most of my customers go straight to China because they know it’s cheaper there.”

China threat

In fact, the Korean manufacturers, like most other manufacturers, are seeing an increasing number of buyers seeking lower prices flying over them and going to China. That has forced the Korean manufacturers to source out some of the work to China in order to bring down their own prices.

Kim, for example, used to produce all the clothes he sells from his factory, but not anymore. About 30 percent of the wholesale goods sold in the Korean apparel district now come from China.

Moreover, stringent labor laws and random sweeps of sewing factories by the state’s Labor Commission have created another challenge for Korean manufacturers. One law gives the right of seamsters in a sewing factory to demand overdue wages not only from the factory owner, but also the manufacturers who put the finishing touches on the garb.

However, the one thing that may help the Korean district is the speedy creation of fashionable items – one of the aspects that helped it grow in the first place.

Jack Kyser, chief economist at the L.A. Economic Development Corp., said he is optimistic about the Korean apparel district. The nature of the industry, which demands quick turnaround and specialized production, may keep more manufacturing from heading off shore, he said.

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Source: Los Angeles Business Journal (http://www.labusinessjournal.com/article.asp?aID=410466.3720362.1547104.7683331.1716664.622&page=1)

Bullish on downtown L.A.'s office market

Vacancy rates are falling and rents are rising, giving cause for continued optimism among landlords.

By Roger Vincent, Los Angeles Times Staff Writer
October 29, 2007

Even as the trendy loft and condo market cools a bit in downtown Los Angeles, the glass-and-steel skyscrapers are filling up and street life is picking up after dark.

Los Angeles architect Peter Devereaux is bringing his 150-employee firm to the heart of the city's financial district. "We felt that now -- and more so going into the future -- that it would be to the advantage of our employees to be located downtown," he said.

"It has all the amenities, like fitness centers, restaurants and entertainment."

There's no better indicator of commercial revival than the City National Plaza office complex, which for years stood as a mostly empty symbol of the challenges faced by downtown. Its profile looked impressive, but there were many vacant offices in the shiny towers. Now the complex is mostly full.

Downtown had languished since the early 1990s, when the region suffered a steep recession. Developers anticipating an office boom had built millions of square feet before the crash, and the city's business district was left with a glut that only now shows signs of abating.

"Imagine every fourth floor was empty," said broker Carl Muhlstein of Cushman & Wakefield. "We had a 25% vacancy factor."

Today the numbers that commercial developers watch are encouraging them. Downtown vacancy rates are dropping and rents are heading upward, new statistics show. Landlords say they are bullish unless a swift downturn in the economy is ahead.

As the office market tightens across much of Los Angeles County, according to recent statistics, some of the biggest downtown landlords are raising rents -- something almost unheard of three years ago.

The county's office market has been evolving in landlords' favor for the last two years, said Muhlstein of Cushman & Wakefield, the brokerage that compiled the statistics. "Increases in rent during the last five years have greatly outstripped inflation," he said.

For years, rents in vacancy-plagued downtown lagged behind those in other popular office markets such as Century City, Santa Monica and Burbank. That may be about to change, in part because City National Plaza is no longer dragging down the market.

Like a python that swallowed a pig, downtown has been trying to digest the two-tower complex since 2003, when Thomas Properties Group bought the landmark property occupying a city block on Flower Street across from the Central Library.

It had been one of the finest properties in the city for many years after it was completed in 1973 and became the headquarters of Arco, the petroleum company now owned by British oil giant BP. But it was maintained so poorly by its previous owners that it was no longer considered in competition with downtown's good-quality buildings.

When Thomas Properties took over, the complex was close to 80% unoccupied, said Kent Handleman, a senior vice president at the Los Angeles company. Thomas Properties spent about $185 million to improve the neglected plaza and set out to snag tenants from every direction.

"We had to be very competitive," Handleman said, which meant other downtown landlords couldn't raise their rates much if they didn't want their tenants to jump ship.

Now City National is mostly leased and the price war is over, Handleman said. "We used to be used as leverage against other landlords."

With little more than the plush former Arco executive offices left to lease, Thomas Properties is raising rents and downtown's two largest office landlords are among those following suit.

Rents downtown will go up 4% to 5% by the end of the year, predicted Bill Flaherty, a senior vice president at Maguire Properties, which owns the most downtown office space.

"Downtown was a bargain for so many years," Flaherty said. "Now the Westside and other markets have had such rent increases that downtown is being pulled along with the strength of the overall L.A. County market."

Average monthly office rents are $2.81 per square foot, up noticeably from $2.48 a year ago but still well below the $5 average in Westwood and Santa Monica, according to Cushman & Wakefield.

Consequently, "downtown is enjoying an influx of Westside tenants," broker Muhlstein said.

Engineering firm Psomas will be heading there from West Los Angeles in December.

Investment banking firm Bear, Stearns & Co. recently opened a downtown office to complement its Century City branch.

Many other leases, however, reflect expansions of downtown local businesses or moves of a few blocks from one building to another.

"A lot of people on the Westside think downtown is dangerous, but here everything is new," Handleman said, citing the $2.5-billion L.A. Live entertainment and hotel complex being built next to Staples Center and the recently opened Ralphs supermarket.

The 7,100-seat Nokia Theatre opened at L.A. Live recently, and construction is set to begin in December on the $2-billion Grand Avenue mixed-use development on Bunker Hill.

Doubts remain among some urban planners over whether these huge venues can actually help the surrounding sections of downtown grow and thrive, though. Many patrons simply drive in to see a concert and then drive out again, not stopping to participate in the night life of downtown.

Nevertheless, the construction boom that has added thousands of apartments and condominiums in the last few years is also changing the atmosphere by attracting more foot traffic and small businesses, observers said.

"It's been an amazing transformation," said attorney Mark Baute, who has had an office downtown since 1986 and recently signed another lease. "There is more going on."

Condo sales have "been a little weaker" in recent months and some developers have brought their prices down or offered incentives such as discounted closing fees, said agent Kerry Marsico of Coldwell Banker. "But overall, prices are strong," he said, and foreign buyers and wealthy individuals in particular are still very active.

Real estate broker Jonathan Larsen of Transwestern Commercial Services said he represented several Westside companies that were considering relocating downtown and estimated that a business that rented 50,000 square feet could save $1 million a year by doing so.

"But I'm still skeptical that the market is tightening the way big landlords think it is," Larsen said. With downtown vacancy more than 15%, there are still a lot of offices to choose from, especially for smaller tenants, and much of the leasing still involves tenants moving from one downtown building to another.

"When somebody gets arrogant," he said of landlords, "we look elsewhere."

Downtown's second-largest office landlord, Brookfield Properties, insists that the momentum is in owners' favor. "This was the busiest summer any of us have ever experienced," said Tony Manos, head of Southern California operations.

Among the tenants negotiating deals now are firms with leases that don't expire until 2009. "Their advisors are sensing that rates are going to be very different in '09 than they are today," Manos said.

If the current trend does continue, Maguire Properties may break ground on the first new high-rise office tower downtown since 1992.

The real estate investment trust's announcement last year that it was planning a building on Figueroa Street was greeted with skepticism, but Flaherty insisted the project was on track.

"We continue to work on it as a very real project," he said. "If the market stays on course, we could break ground within two years."

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Source: Los Angeles Times (http://www.latimes.com/news/local/los_angeles_metro/la-fi-office29oct29,1,7299048,full.story)

Law Firms, Banks Give Downtown Its High-Wage Title

By HOWARD FINE
Los Angeles Business Journal Staff
October 29, 2007

Move over Beverly Hills.

The land of moguls, mansions and luxury retail was edged out by two Los Angeles ZIP codes for the county’s highest annual average wage, according to figures just released by the U.S. Census Bureau.

The top honors for ZIP codes with at least 1,000 employees went to Los Angeles 90071 – also known as the downtown Financial District – with an average annual wage of $116,758 in 2005, the most recent year tracked by the feds. The tiny horizontal slice of downtown is home to the county’s largest law firms and regional bank headquarters. With partners at many of the major law firms pulling down more than $1 million each, it’s no wonder the 90071 figure is so high.

“There’s a lot of money being earned in a very small space downtown,” said Jack Kyser, chief economist with the Los Angeles County Economic Development Corp., which compiled the ZIP code rankings from the raw U.S. Census data for the most detailed picture yet of county wage trends.

Right behind downtown at $115,030 was 90067, the ZIP code exclusively reserved for Century City, which also boasts prominent law and financial offices, especially those serving the entertainment industry. Century City is also home to Northrop Grumman Corp., Fox Group’s West Coast operations, AIG/SunAmerica Corp., Univision Communications Ltd. and Herbalife Ltd.

Beverly Hills 90212 (Wilshire Boulevard and points south) came in third at $103,050. The fabled Beverly Hills 90210, which includes many of the city’s mansions and the “Golden Triangle” retail district, ranked considerably lower with an average wage of $60,970.

“What people don’t remember is that there are a lot of retail jobs in Beverly Hills, and while they may pay better than retail jobs elsewhere, they are still retail wages,” said George Huang, the LAEDC economist who compiled the rankings.

No doubt dragging down the 90210 average was the significant number of employees serving as live-in help, a phenomenon that played out to an even greater extent in the mostly residential city of San Marino, where the average wage was a mere $36,438.

If it’s any consolation, Beverly Hills still ranked highest overall in terms of average wages, posting a figure of $69,671 in 2005. Virtually tied for the number two spot were the cities of Culver City and Santa Monica, at about $62,500. The average wage for all of the City of Los Angeles was $44,069, but that also includes communities like Pacoima and South Los Angeles.

While these and other low-income areas – like Compton and Maywood – were towards the low end of the wage scale, they weren’t at the bottom of the ZIP code data. That title fell to Northridge 91330, home to California State University Northridge, which posted an average wage of just $13,351, less than a 40-hour-a-week minimum-wage job. “At the university, there are no doubt a lot of students with part-time jobs,” Huang said.

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Source: Los Angeles Business Journal (http://www.labusinessjournal.com/weekly_article_pay.asp?aID=97151322.9219672.1545999.474497.4853037.885&aID2=118914)

Affluent Asians set up house in downtown L.A.

By Kemp Powers
October 28, 2007

LOS ANGELES (Reuters) - Architect Christopher Pak understands what upwardly mobile Koreans want and that's why his latest project, a 22-story residential tower, has no apartments on the fourth and fourteenth floors.

The number 4 sounds like the word "death" in Korean, Pak says. So in his building the fourth level will be for parking and the residential floors will skip the fourteenth.

Pleasing Korean clients is a key part of keeping the downtown and near downtown Los Angeles property market hot, in stark contrast to the chilly sales in most of Southern California in the wake of the subprime lending crisis.

Koreans and other affluent Asians are joining the ranks of young loft dwellers who have fueled a resurgence of downtown Los Angeles as a place to live, not just work.

"Koreans have a natural affinity to downtown," said Pak, a Korean American who is also a partner in the $160 million development, due to be completed in 2008.

Koreans, he said, believe urban cores as having better quality of life than rural or suburban areas, an idea counterintuitive to many in this sprawling city of 3.8 million with few high rises.

The near-downtown neighborhood of Koreatown had already been undergoing a major rehabilitation from its days of devastation in the 1992 race riots.

Today the neighborhood is completely different, bustling with activity day and night and increasingly awash in wealth.

After the Korean government relaxed overseas investment limits in 2006, individuals and real estate firms have descended on the Los Angeles market, home to the largest Korean community in the world outside of Korea.

PARK FIFTH GOING QUICKLY

While Koreatown was an obvious first destination, this affluent group has rapidly expanded into the dynamic downtown market down the street.

More than 7,000 new residential units have opened in downtown Los Angeles since 1999, with another 7,500 under construction and several larger projects close to breaking ground, according to the downtown Los Angeles Business Improvement District. The BID estimates the population will double from the current 29,000 to 58,000 by 2009.

Almost 25 percent of downtown's residents are Asian.

"The subprime meltdown has not affected our downtown market," said Robert Cipolloni, a real estate consultant at Windermere Properties who also moved downtown in 2006. "Yes, there's a glut with all of the new condos being built, but at the pace that people are moving into downtown L.A., that glut is going to be eaten up."

The anticipated growth has recently sparked some eye-opening projects. The largest is Park Fifth, a 890-foot (270-metre), $1 billion high-rise condominium that will house 726 residential units ranging in price from $400,000 to $5 million.

The building, to be completed in 2010, has been in presales for just over two months and 50 percent of the units have been sold, according to developers.

Cipolloni recalled a gathering hosted by a Korean agent that resulted in 40 people each putting down $10,000 deposits to reserve units in Park Fifth.

A RELATIVE BARGAIN

Money appears not to be an issue, especially compared with prices back home.

In a 2007 cost of living survey from Mercer Human Resource Consulting, Asian cities were three of the top five most expensive in the world, with Seoul in third place, followed by Tokyo and Hong Kong. Los Angeles was a relative bargain in 42nd place.

"We definitely have a large Asian element," said Richard Marr, Park Fifth's project manager, who says he can't say for certain how many of Park Fifth's presales are Asian buyers. "If you go to Seoul, Shanghai, Singapore, there's a certain prestige in living in taller buildings on the higher floors."

Korea's largest real estate development company, Shin Young, is buying a parcel of downtown land for a 334-unit condominium building.

The company is already building a 40-story condo skyscraper in the heart of Koreatown. However, its downtown building won't contain the accoutrements to appeal to Korean buyers. It's an investment property for American buyers, the company said.

Koreans aren't the first Asian community to invest heavily in downtown Los Angeles. In the 1980s, Japanese companies were on a tear to acquire downtown real estate.

"When the Nikkei was booming, the Japanese bought into trophy Los Angeles properties at prices that were too high," said Stuart Gabriel, director of UCLA's Richard S. Ziman Center for Real Estate. "The regional downturn of the 1990s crushed them."

Despite the new arrivals, including the area's first supermarket, downtown remains the home of the country's largest skid row and parts are deserted after dark. That's why Gabriel strikes a cautionary note about the downtown housing rush.

"If I were the developer of (Park Fifth), I'd be concerned about the timing of that play," said Gabriel. "You don't want to repeat the mistakes of Miami and San Diego."

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Source: Reuters (http://www.reuters.com/article/domesticNews/idUSN1539249620071029?feedType=RSS&feedName=domesticNews&rpc=22&sp=true)

Jacobs gets trio of new deals

Los Angeles Business from bizjournals
October 30, 2007

Jacobs Engineering Group Inc. received three contracts on Tuesday -- one from the Texas Army National Guard, one from the Port of Tacoma in Washington and one from GlaxoSmithKline.

Texas Army National Guard
Under the deal, Jacobs will provide architectural and engineering design services for a new Armed Forces Reserve Center and Joint Vehicle Maintenance Facility in El Paso. The complex will provide facilities for the Guard, including a controlled waste handling facility, ground support equipment, open storage, office and personnel support areas.

Terms of the deal were not disclosed.

Port of Tacoma
Jacobs will provide general engineering services to develop marine terminals along the Blair/Hylebos Peninsula at the port. The services will include open-order roadway, railway, and infrastructure engineering services as part of the development.

The value of the contract was not disclosed, but, Jacobs' design contract is based upon the time and expense to support approximately $300 million in roadway, railroad, and infrastructure work.

GSK
Under the deal, Jacobs will provide engineering, procurement, and construction management services to GlaxoSmithKline for a new Tier III data center to be constructed in the eastern United States.

Terms of the contract were not disclosed.

Pasadena's Jacobs provides technical, professional, and construction service, and has more than 49,000 employees worldwide.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/29/daily14.html?surround=lfn)

Northrop pushing hard for new radar business

By Andrea Shalal-Esa
October 30, 2007

LINTHICUM, Md., Oct 30 (Reuters) - Northrop Grumman Corp (NOC.N: Quote, Profile, Research) on Tuesday opened a new $14 million facility for testing radars, saying it would give the company an edge in competing for new large-scale military sensors.

The five-story, 16,000-square-foot (1,500-sq-meter) complex boasts the world's largest antenna scanner, allowing Northrop to test a broad array of even the biggest sensors indoors.

Northrop said it would help the company better compete to build big radars for the Navy's next-generation warship, called CG-X; a joint Air Force-Marine Corps program for a new long-range radar system; and upcoming competitions for new airborne radar systems on U.S. and foreign fighter planes.

"It really does help to continue to position Northrop Grumman and the electronic systems portion of Northrop Grumman at the leading edge," Chief Executive Ron Sugar told reporters at a formal opening of the complex near Baltimore.

He declined to estimate the value of the potential contracts for Northrop, the No. 3 Pentagon supplier, but said there was a "solid business case" behind the new facility.

James Pitts, president of the company's electronic systems sector, said the facility positions Northrop "extremely well." His sector alone reported about 16 percent growth in new orders and acquisitions in the first nine months of 2007, pointing to solid sales growth in 2008, he said, giving no exact figures.

Boeing Co (BA.N: Quote, Profile, Research) is expected to pick Northrop or Raytheon Co (RTN.N: Quote, Profile, Research) this week to upgrade radars on its F-15 fighter jets, which could provide another big boost for the sector.

Raytheon has traditionally supplied radars for Boeing F-15 and F-18 jets, while Northrop builds radars for Lockheed Martin Corp's (LMT.N: Quote, Profile, Research) F-22 and F-35 Joint Strike Fighter jets, so a Northrop win would be a significant upset.

Sugar gave no specific forecast for 2008 sales, but said he was very pleased with third-quarter results, which came despite the lingering "horrific" impact of 2005's Hurricane Katrina, which caused $1 billion of damage to Northrop shipyards.

"We had a tremendous quarter," Sugar said, citing a significant increase in future bookings. "For several years we had some flattening of the growth in electronics, but we're pretty confident that the electronics business, as well as the rest of the company, is going to be in a good uptick here."

He told Reuters in a brief interview later that the impact of Katrina on Northrop alone was equivalent to the overall destruction caused by this month's wildfires in California.

"The last year or two our growth hasn't been what we wanted it to be, and .... yet we're putting that behind us," he said, noting Northrop had a record backlog of $64 billion in orders.

Pitts said the drive to win new radar orders was "all upside." "Anything we do is either going to take market share away from one of our competitors or allow us to grow in a new and exciting way," he said.

Sugar said Northrop remained committed to its bid to win a $40 billion order for new refueling tankers for the Air Force, which now expects to announce its decision by Jan. 31.

"We're not making any contingency plans for if we don't win it. We're proceeding to try to win it," he said, acknowledging that the company did not win every one of the thousands of competitions it entered.

"The competitive process is a good one and it creates a better outcome for the U.S. government and it sharpens us too," he said.

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Source: Reuters (http://www.reuters.com/article/tnBasicIndustries-SP/idUSN3042018220071030?sp=true)

CSC buying First Consulting for $365M

Los Angeles Business from bizjournals
October 31, 2007

Computer Sciences Corp. is buying another local company, scooping up Long Beach's First Consulting Group Inc. for $13 a share, or about $365 million, in cash.

The deal represents a 30 percent premium to First Consulting's closing price on Tuesday of $9.98. In afternoon trading, FCG shares (NASDAQ: FCGI) were at $12.70.

CSC is making the buy to strengthen its healthcare capabilities and offerings, as well as presence in the United States, Europe and Asia.

The boards of directors of both companies have approved the deal and will now go to FCG shareholders. Should the deal be approved, it will close in early 2008, during CSC's fiscal fourth quarter and FCG's fiscal first quarter.

According to CSC, the transaction is expected to be neutral to CSC's earnings and accretive to free cash flow within the first 12 months.

El Segundo's CSC (NYSE: CSC) is an information technology company.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/29/daily22.html?surround=lfn)

Northrop gets pair of contracts for radar system

Los Angeles Business from bizjournals
November 1, 2007

Northrop Grumman Corp. has been awarded two contracts from the Air National Guard in support of a radar program.

Northrop will provide both the radars and logistical support for AN/APN-241 program. The radars provide navigation and weather information for the Air National Guard's C-130H and C-130J tactical airlift aircraft.

The contract value for the radar systems is $13.5 million, while the contract for continued logistical support is worth $6.6 million.

Northrop (NYSE: NOC) is a defense and technology company based in Los Angeles.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/10/29/daily26.html?surround=lfn)

Jacobs Buys Texas Firm

By ALLEN P. ROBERTS Jr.
November 2, 2007

Jacobs Engineering Group Inc. said Friday that it has agreed to buy Fort Worth-based Carter & Burgess. Terms of the deal were not disclosed.

The move will add 3,200 consultants to the Pasadena-based engineering company and also expands the company’s presence in the “fast-growing” Southwestern region, Jacobs said in a statement.

The addition will also add services such as land development, distribution and warehousing.

This is the second acquisition by Jacobs this year: The company bought Morristown, N.J.-based engineering consulting firm Edwards & Kelcey in March for an undisclosed sum.

Shares in Jacobs dropped 50 cents Friday to $83.93 in afternoon trading on the New York Stock Exchange.

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Source: Los Angeles Business Journal (http://www.labusinessjournal.com/article.asp?aID=53309345.3045408.1548755.1368347.5681146.927&aID2=119126)

Tanked Up

Subcontractors will win big whether Northrop or Boeing gets Air Force contract.

By RICHARD CLOUGH
Los Angeles Business Journal Staff
November 2, 2007

Alcoa Fastening Systems is like a lot of aerospace suppliers in Los Angeles County.

The Torrance subsidiary of Alcoa Inc. is curious to know if Boeing Co. or Los Angeles’ own Northrop Grumman Corp. will receive the huge $40 billion contract to build a new generation of U.S. Air Force tankers to replace the aging KC-135.

But no matter which defense giant is chosen as prime contractor, Alcoa Fastening expects big business to come its way. The subsidiary has been specifically identified by Northrop as a supplier for its KC-30 tanker program. But the contractor also is a supplier to Boeing and that means it would likely get business if Boeing’s KC-767 is chosen as the new tanker.

“A lot of the local suppliers need to be neutral because both are their customers,” said Rick Sharpe, senior vice president of global aerospace customers and marketing for the subsidiary. “(Either tanker) is going to need the unique things we make.”

So while Northrop Grumman and Chicago-based Boeing duke it out on a national stage in the fight for the massive military tanker program, the local aerospace industry – which produces everything from electrical wiring to wing components – is sitting pretty, even though the final assembly of either plane would be completed out of state.

Boeing and Northrop are competing to build 179 aerial refueling tankers to replace a fleet of Boeing-made aircraft that have been in the skies for more than 50 years. The stakes are monumental: After the initial order, the military plans to buy several hundred additional planes in what would amount to well over $100 billion in new orders.

The Air Force has pegged this program as one of its top priorities, and is expected to announce the winner in late January. A production schedule has not been released.

Northrop, which has $30 billion in annual revenues, is expected to announce this week that it has identified 40 California companies that would supply parts to its KC-30 tanker program, contributing some $360 million annually to the state’s economy. In total, the program would support about 7,500 direct and indirect jobs in California.

But the state also would receive big business from Boeing, which still runs the massive C-17 cargo jet assembly line in Long Beach. Boeing says its program would have a $175 million impact in California, generating 4,000 jobs.

“There would be a significant amount of work in L.A. County,” said Bill Barksdale, Boeing’s tanker spokesman.

International team

It might seem that the larger economic and job creation figures – and the fact that Northrop has its headquarters in Century City – would give the local company an edge in California.

But Northrop has caught flak for partnering with European Aeronautic Defense and Space Co. to build its aircraft, a modified version of the Airbus A330 airliner.

The team plans to assemble the plane in an Alabama facility, but much of the work would be done in France, which has caused concern among some politicians and labor groups.

The California Labor Federation, the state arm of the AFL-CIO that represents more than 2 million union members, expressed concern last month over the inclusion of EADS in the Northrop bid and asked the Air Force to award the contract to Boeing.

“EADS’s violation of trade laws should be enough to disqualify this European company from receiving any U.S. government contract,” said Art Pulaski, executive secretary-treasurer of the federation, in a letter to Air Force Secretary Michael Wynne.

But Northrop is fighting back, saying the program would support 25,000 American jobs in total.

“Sixty percent of the parts for the KC-30 will be supplied by U.S. manufacturers,” said Randy Belote, Northrop’s tanker spokesman. “Any attempt to cast it as anything other than an American tanker is misleading and disingenuous.”

Boeing boasts that it plans to assemble its KC-767 tanker – a modified version of its 767 commercial aircraft – in plants in Washington and Kansas with no major production done outside the United States. As a result, Boeing says its program would support 44,000 American jobs.

But both companies have singled out L.A. as an important manufacturing center for their respective programs.

Indeed, while L.A.’s aerospace manufacturing industry has declined from its heyday more than two decades ago, it still boasts a vast network of suppliers who specialize in everything from wing tips to electrical wiring to fuselage skins. Sharpe of Alcoa estimated up to 90 percent of the country’s aerospace fastener makers are in the county.

As the industry has transitioned from one characterized largely by final aircraft assembly to one of subassembly and technological development, the sector has lost jobs, but it has stabilized in recent years. The local aerospace industry supported over 200,000 jobs in 1990, a number that fell to a record low of 75,000 in 2003, about where it is now.

Local presence

But as the industry has shrunk, it has given aerospace suppliers a larger piece of the puzzle as each new program comes forward.

“There are fewer players in aerospace today than there were 20 years ago, so that makes each program more important for you to be a part of and it makes the programs bigger,” Sharpe said.

Still, Northrop and Boeing have significant local presences.

With more than 20,000 workers in Los Angeles, Northrop is the county’s second largest employer, while Boeing is the third largest, with 16,510 local employees.

Nearly 6,000 of Boeing’s local employees work in the company’s Long Beach assembly plant for the C-17 cargo plane.

Boeing said in June it expects the government to fund the purchase of 10 additional C-17 planes next year, which could keep the plant open until at least 2009. But the program is widely thought to be in danger of being shut down soon.

The tanker program could help replace many of the expected C-17 job losses locally, but Jack Kyser, chief economist of the Los Angeles County Economic Development Corp., said it remains to be seen exactly how many jobs are local.

“If they’re scattered around California, then that wouldn’t go very far for us in Los Angeles County,” he said.

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Source: Los Angeles Business Journal (http://www.labusinessjournal.com/article.asp?aID=76441803.7222254.1548807.8115155.7608693.698&page=1)

Building Boom Sweeping L.A.’s Film Studios

REAL ESTATE: It’s less about show biz, more about lease prices.

By ANNE RILEY-KATZ
Los Angeles Business Journal Staff
November 2, 2007

Earthmovers are groaning across Sony’s Culver City lot these days as they grind up the ground to get ready for construction of two big buildings that will rise above the studio’s sprawling site.

And that’s not the only studio work going on behind the cameras in Los Angeles.

There’s a flurry of construction activity at the city’s studios from Hollywood to Santa Monica. Faster than Rhett told Scarlet to bug off, a new landscape is forming on the industry’s storied lots. Hardhat workers are riveting steel beams. Executives are looking at blueprints. Leasing agents are planning to get tenants for office space.

This backlot building boom is driven by several engines. Primary among them are low office vacancy rates and high rents in surrounding areas. The studios plan to lease out office space – regardless of whether the new tenants are show biz folks.

“It’s a good way to have money coming in,” said John Tronson, a principal at Ramsey-Shilling Commercial Real Estate Services. “It’s better to buy land with studios on it now and add other buildings so it generates income and is not just sitting there.”

Another factor: Some studios need to upgrade and get wired for the digital era. Those tend to move into the new office space instead of leasing it all to outsiders.

Also, private equity companies that have recently acquired several independent production facilities are pressing for the cash that they could make off real estate development.

Major building projects are in the works or planned at studios including Sony, Tribune, NBC Universal, Sunset Gower and Fox.

“These are great pieces of land on prime locations,” said Ann Gray, an architect who headed Paramount’s on-lot development from 1987 to 1994. “Right now there is massive interest in looking at these lots and modifying them for income purposes.”

Among the studio projects:

- Two four-floor buildings are being built on Sony’s Culver City lot that will bring about 600 employees from other locations around Los Angeles onto the campus, eliminating the need for costly rental space.

- NBC Universal’s $3 billion expansion of its Universal City property, including the construction of 2,900 apartments, lofts and condominiums, additional office space, and an upgrade of its studio and entertainment facilities. The proposal is currently working its way through the city entitlement process. The studio’s new facilities will be located next to the subway connecting Universal City to downtown Los Angeles and across the street from Universal Studios.

- Tribune’s lot is for sale and the company plans to build office, mixed-use and production space on the Sunset Boulevard property.

- A five-story office building opened on Fox’s Pico Boulevard lot last year and the studio is nearing completion on another office building and parking facility.

- A six-story, 96,000 square foot building to house Technicolor’s postproduction facilities is under construction on Sunset Gower’s 15-acre lot in Hollywood.

Money play

With office space throughout the Hollywood area and Westside scarce and pricey, studios with available on-lot space are maximizing the potential for real estate income. The sky-high rents – office space is edging toward $4 per square foot in areas like Hollywood and the Westside – and low vacancy rates make the conversions very appealing financially.

Sony’s development will allow the company to bring employees back onto the lot, and save money by vacating rented space elsewhere.

The studio’s 125,000-square-foot Fourth Avenue building will be the new home of Sony Pictures Television and the 96,000-square-foot Culver building will serve as Sony Pictures Television International’s headquarters. The project includes office space and a courtyard with a total of about 44,000 square feet, as well as a new 1,000-vehicle parking lot. Construction is to be completed by the summer of 2009.

The studio maintains it will recoup the costs through environmental initiatives and eliminating rentals.

“There are multiple benefits to this construction – for one, we’ll see a long-term savings on leases,” said Jim Kennedy, a Sony spokesman. “Our leased office space is currently in Westwood, and that’s not an inexpensive place to rent.”

Also, private equity has recently entered the studio ownership game with plans for real estate development. The investments underscore the value of studio land.

The listing of the former Columbia Pictures headquarters in Hollywood was the most recent in a handful of studios that changed hands or went on the block: Carlyle Group paid $150 million for Manhattan Beach Studios in June. Sunset Gower Studios was sold by GI Partners for $205 million in August. Culver Studios was put up for sale by ownership group, PCCP Studio City Los Angeles LLC this summer and is expected to fetch about $150 million.

“We feel we will be very successful in applying our office expertise and transferring that to the studio world,” said Howard Stern, the managing partner of Sunset Gower studios. “Production office space has much shorter term occupancy than a traditional office building, but productions are drivers of demand.”

Sunset Gower is nearing completion on a six-story building to house post-production operations of Technicolor Inc, a division of France-based Thomson. The company signed a long-term lease last year to occupy the entire building. The $40 million project, slated for completion early next year, is on a former parking lot at the northeast corner of the 15-acre Sunset Gower Studios lot, between Gower and Gordon streets.

Digital technology is another driver of the developments, since high definition digital facilities are now the industry standard. The last time most studio lots saw significant upgrades or construction activity was in the mid- 1990s. After more than a decade, the need to bring facilities into the digital era is a key component in some of the work.

“We’ve got to keep up,” said Vinnie Malcolm, KTLA’s general manager. A new, hi-def station is part of the plans for the Tribune lot. “Everyone will have upgraded over the last three to five years, so it’s important to stay on par.”

It’s sometimes easier to design and build production facilities than it is to retrofit old ones.

Technological upgrades are part of NBC Universal’s plans, which call for the sale of part of the 35-acre studio lot in the Burbank Media District. The new building will include virtual studios, interactive graphic capabilities, a glass-walled newsroom and other digital upgrades.

“Some of the studios have these dilapidated old buildings limping along and need to upgrade the technological aspects, so they might as well build new from the ground up in the interest of modernizing it all,” said Tronson of Ramsey-Shilling.

Content factor

Changing entertainment content is a factor, too. The preponderance of reality programming has changed the use of studio space. With fewer sitcoms and dramas in production, less studio space and more offices are the order of the moment. With the three-camera stages used for sitcom-style production going empty, underutilized production space is being transformed for commercial use.

Some are apprehensive that the conversion trend could go too far, and office uses will overwhelm the traditional use of studio campuses.

What’s more, runaway production is also seen as an underlying reason for the shift to office use.

“It’s criminal that that our state does not offer any production incentives, and they take Hollywood production for granted,” said former Paramount executive Gray.

But executives say even with new development popping up, the studios themselves are largely unaffected and will still be used for entertainment production.

“It’s great to bring in office space,” said George NeJame, Tribune’s vice president of operations. “But if you lose stage space there’s no reason for the offices, so you really have to strike a careful balance. We are a production lot first and foremost.”

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Source: Los Angeles Business Journal (http://www.labusinessjournal.com/article.asp?aID=01196253.5461344.1548820.8390559.4304453.683&page=1)

Northrop gets $18M Air Force deal

Los Angeles Business from bizjournals
November 14, 2007

Northrop Grumman Corp. has been given an $18 million contract from the U.S. Air Force to develop and manufacture a new set of data links used to gather mission information on Air Force planes.

The new data link, known as Plug & Play II, will provide high-capacity digital recording capability for both video and audio collected during a mission and will include two-way data transfer with an onboard server.

Delivery of links will take place between September 2008 and January 2010.

Northrop (NYSE: NOC) is a defense and technology company based in Los Angeles.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/11/12/daily16.html?surround=lfn)

Live Nation buys merchandiser for $79M

Los Angeles Business from bizjournals
November 15, 2007

Live Nation Inc. is buying music merchandiser Signatures Network Inc. in a $79 million deal.

The final price tag includes cash, stock and repayment of debt, with the deal expected to close later this year.

Signatures Network holds master merchandise licenses for more than 150 artists, including The Beatles, U2, Bruce Springsteen, Barbra Streisand, Justin Timberlake and The Grateful Dead.

After the close of the deal, Signatures Network Chief Executive Officer Dell Furano will head up the merchandising division of Live Nation's Live Nation Artists division.

"The management team at Live Nation are trailblazers in their field -- setting new standards of how business is done and establishing new benchmarks for success. The Merchandise Division will be no exception and I'm looking forward to the ride," Furano said in a statement.

Venue manager and concert promoter Live Nation (NYSE: LYV) is based in Los Angeles.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/11/12/daily25.html?surround=lfn)

City National Plaza Hits Leasing Milestone

News Brief

Thomas Properties Group last week announced two major leasing deals for City National Plaza, the twin 52-story towers the company purchased in 2003. At that time, the former Arco headquarters was 80% vacant; the deals announced last week bring City National Plaza, fronting Flower between Fifth and Sixth streets, to 80% occupancy, capping a $185 million renovation. "It is gratifying to see the fruits of our hard work," said Jim Thomas, chairman and CEO of the company, in a statement last week. "Soon we will welcome new restaurants to the plaza, fulfilling our goal to create more life and energy on the street level." The announcement came after Chubb Insurance leased 92,562 square feet and engineering firm Psomas signed a lease for 41,235 square feet. "With these leases there are no more large blocks of space available at City National Plaza. This changes the leasing dynamic of the Downtown commercial office market," said Kent Handleman, Thomas Properties Group's senior vice president for leasing.

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Source: Los Angeles Downtown News (http://www.downtownnews.com/articles/2007/11/19/news/news_briefs/at02.txt)

CBRE to Acquire Miami Firm

By ALLEN P. ROBERTS Jr.
November 19, 2007

CB Richard Ellis Group, Inc. said Monday that it has acquired Miami-based Blackrock Retail Property Advisors Inc., in a move to boost its presence in the Southeastern United States. Financial terms of the deal were not disclosed.

Blackrock focuses exclusively on retail properties in the Southeast and is currently engaged in the sale of 21 retail properties valued at more than $400 million, El Segundo-based CBRE, the largest commercial real estate broker in the world, said in a statement.

Founded in 1996, Blackrock has six employees who will join CBRE’s Miami office.

Shares in CBRE dropped 5.9 percent to $18.45 in early trading Monday on the New York Stock Exchange.

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Source: Los Angeles Business Journal (http://www.labusinessjournal.com/article.asp?aID=35217676.4420025.1556633.5945669.5845664.708&aID2=119732)

Northrop gets $85M option for sub maintenance

Los Angeles Business from bizjournals
November 20, 2007

Northrop Grumman Corp. has been given a contract option worth $85 million for maintenance work on submarines for the U.S. Navy.

The work includes planning, engineering and logistics support for Los Angeles, Ohio, Seawolf, and Virginia-class submarines.

Northrop's Newport News sector is the prime contractor for the work, which continues on a contract awarded in 2006. The total estimated value of the cost plus fixed fee, level of effort contract is now $248 million.

Los Angeles' Northrop (NYSE: NOC) is a defense and technology company, and is also the nation's largest shipbuilder.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/11/19/daily13.html?surround=lfn)

Jacobs gets three contracts

Los Angeles Business from bizjournals
November 20, 2007

Jacobs Engineering Group Inc. received three contracts on Tuesday -- one from the U.S. Air Force, one from Scottish and Southern Energy plc and one from the Alberta Energy Research Institute.

USAF
Under a five-year, $25 million contract, Jacobs will provide experimental capabilities support for the Air Force Research Laboratory's Aeronautical Sciences Division at Wright-Patterson Air Force Base in Ohio.

Among the various programs Jacobs will be supporting are the Trisonic Gasdynamics Facility, the Subsonic Aerodynamic Research Laboratory, the Vertical Wind Tunnel, and the Free Surface Water Tunnel.

SSE
Jacobs will provide pre-engineering services for the second phase of an underground gas storage development that is a joint venture of Scottish and Southern Energy and Statoil.

The development is in Aldbrough in the United Kingdom. The companies are already developing nine storage caverns at Aldbrough, with the second phase expected to double the site's gas storage capacity from nine to 18 caverns.

Jacobs performed program management and design, and is currently providing construction management services for the first phase of development.

Details of the contract were not disclosed.

AERI
Jacobs' subsidary, Jacobs Consultancy Inc., received a contract to provide study services including technology evaluation, cost estimating, project development and project management to the Alberta Energy Research Institute.

The AERI is part of the Province of Alberta's efforts to develop and demonstrate clean upgrading technologies as they apply to hydrocarbons such as oil sands, coal, and petroleum coke to sustainably develop Alberta's vast resources.

This award follows Jacobs Consultancy's previous work for AERI and a consortium of seven Alberta companies to provide a feasibility study comparing various upgrading technologies.

Details of the contract were not disclosed.

Pasdadena's Jacobs (NYSE: JEC) provides technical, professional, and construction services and has more than 52,000 employees worldwide.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/11/19/daily16.html?surround=lfn)

CBRE buys Texas office park

By Austin Business Journal
Los Angeles Business from bizjournals
November 20, 2007

CB Richard Ellis Investors has purchased the Amber Oaks Office Park in Austin, Texas.

The 10-building, 639,923-square-foot office park was picked up for an undisclosed amount from Newport Beach-based Chase Merritt. The property consists of five single-story and five two-story buildings. Two of the buildings totaling just over 150,000 square feet were just completed in September and are currently in early lease-up.

The entire Amber Oaks project is nearly 70 percent leased, with two major tenants in engineering design and equipment manufacturing accounting for nearly 50 percent of the space.

"This is a very desirable asset in a market which is projected to experience strong rent growth over the mid-term," says Ron Azad, managing director at CBRE Investors. "This property was not widely marketed and we believe it provides an exceptional investment opportunity."

The campus was developed in four separate phases by Transwestern Austin, which continues to manage the property. Chase Merritt purchased the eight existing buildings at the park in two separate transactions last year totaling $79.8 million.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/11/19/daily17.html?surround=lfn)

Northrop Grumman, Embry-Riddle team up on training

By Orlando Business Journal
Los Angeles Business from bizjournals
November 21, 2007

Embry-Riddle Aeronautical University and defense contractor Northrop Grumman Corp. have announced they will work together on a potential collaboration involving the joint development, delivery and administration of Embry-Riddle training and educational programs in the United Arab Emirates.

Under the agreement, the parties intend to collaborate with Mubadala Development Co., a government-owned investment arm, to bring several degree programs to Abu Dhabi and support the development of a regional aerospace education campus.

Daytona Beach, Fla.-based Embry-Riddle is the world's largest full accredited university specializing in aviation and aerospace.

Los Angeles-based Northrop (NYSE: NOC) is a defense and technology company.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/11/19/daily20.html?surround=lfn)

Northrop to meet with Air Force about $40B tanker deal

Los Angeles Business from bizjournals
November 21, 2007

Northrop Grumman and the Boeing Co. have been invited to day-long talks with the United States Air Force to discuss a $40 billion contract to replace the USAF's fleet of refueling planes, according to a Reuters report.

According to the report, the two companies will each meet with the Air Force sometime after the Thanksgiving holidays to discuss their respective proposals and address questions and concerns before final bids are submitted in December or January.

The $40 billion contract would replace 179 refueling planes. It is, however, the first of an expected three-phase deal that calls for more than 500 planes and is worth an estimated $100 billion.

Northrop's partner in the project is EADS, where Northrop modified an EADS Airbus A330 for the project, which Northrop calls the KC-30. Northrop first announced its intention to bid on the deal in February.

Northrop (NYSE: NOC) is a global defense and technology company based in Los Angeles.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/11/19/daily21.html?surround=lfn)

Jacobs Lands Air Force Deal

By ALLEN P. ROBERTS Jr.
November 21, 2007

Jacobs Engineering Group Inc. has been awarded a contract worth up to $25 million from the U.S. Air Force to provide support for the Air Force Research Laboratory's Aeronautical Sciences Division at Wright-Patterson Air Force Base in Ohio.

The Pasadena-based engineering services provider said this effort will support facilities such as the Subsonic Aerodynamic Research Laboratory by operating and maintaining additional wind tunnels.

Shares in Jacobs Engineering were down 2.4 percent Wednesday morning to $75.97 in trading on the New York Stock Exchange.

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Source: Los Angeles Business Journal (http://www.labusinessjournal.com/article.asp?aID=79147696.2986409.1557127.4177181.4359139.692&aID2=119770)

L.A.’s a Fine Fit For Tech Sector

By CHARLES CRUMPLEY
Los Angeles Business Journal Staff
November 21, 2007

POP quiz. When you think of tech startups, you think:

A. Silicon Valley

B. New England

C. Los Angeles

If you had answered C in the past, you may have gotten a pat on the back for being an idealistic local booster. The correct answers were A and B, of course.

But that was the past. Los Angeles has emerged as a legitimate capital of tech-dom. One reason: Today’s tech companies tend to have something to do with getting entertainment and creative content on to the Web, and that’s L.A.’s sweet spot.

You may have known that or at least sensed it, since it’s a trend that’s been developing for a time. For example, in the last two quarters, Southern California edged out New England for the No. 2 spot in venture capital funding. Silicon Valley is still No. 1.

But the trend will smack you if you read the special section in this issue about the fastest growing private companies. The section includes a list that ranks 100 up-and-coming companies in L.A. County, and the list is heavy with Internet businesses.

Even the once-reviled dot-com name is making a comeback. Five years ago, there was no company with dot-com or dot-net on the list as part of its name. But this year’s list has four such names, including the No. 4 company: Reunion.com.

Russell Reeder, the founder of NxTV Inc. (No. 10 on the list), is quoted in one of the articles as saying: “Los Angeles is definitely the digital media hub, where technology, finance and the media all intersect. The content side being here and the deal makers being here are what made the difference.”

Reeder’s last comment alludes to another issue that’s extremely important. Los Angeles has, for lack of a better term, a culture of entrepreneurism. Universities are here, along with the creative community and funding sources. What’s more, there’s an attitude that allows, even encourages, people with bold ideas to start a business and give it a try – and not just tech businesses.

A number of cities don’t enjoy such a culture. They’d love to duplicate L.A.’s spirit of entrepreneurship but have trouble doing so because culture is the hardest thing to change. As a result, many opportunities die in those places.

I think a lot of Angelenos take L.A.’s culture of entrepreneurism for granted or aren’t even aware that it exists. But that culture struck me right away when I moved here. It still surprises me. And if you look over the special section, you may be reminded of the strength of that culture.

It’s just one guy’s opinion, but I believe the culture of entrepreneurism is L.A.’s greatest economic asset.

•••

You have to wonder if Rick Caruso has engendered jealousy from his competitors. Why else would a big mall operator like General Growth Properties kick a little mall developer like Caruso by trying to prevent a Cheesecake Factory restaurant from opening in Caruso’s new mall in Glendale? (In case you missed it, Caruso won more than $89 million from General Growth in a lawsuit over the matter.)

Caruso pays attention to detail and creates inviting places where people actually want to spend time. Contrast that to most other developers, who keep putting unimaginative boxes on asphalt. If they look at what Caruso has done, they must be jealous.

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Source: Los Angeles Business Journal (http://www.labusinessjournal.com/weekly_article_pay.asp?aID=180833302.176444.1555151.4710764.4655362.284&aID2=119618)

Local Firm Top List of War Contractors

By HOWARD FINE
Los Angeles Business Journal Staff
November 23, 2007

Three L.A.-area companies have each raked in hundreds of millions of dollars in contracts in Iraq and Afghanistan over the last three years, according to a report issued last week by a Washington D.C.-based non-profit.

Pasadena-based Parsons Corp. was the top local company listed in the report, taking in $579 million from 2004 through 2006, according to the report from the Center for Public Integrity, which specializes in investigative journalism in the public interest. That placed it at No. 10 overall, well behind leading national contractor and former Halliburton subsidiary KBR Inc., which received more than $16 billion in contracts during that period.

The second L.A. area company on the center’s list of the top 100 U.S. contractors was Tetra Tech Inc., also based in Pasadena. Tetra Tech received $362 million in contracts, placing it at No. 13. Los Angeles-based Aecom Technology Corp. was close behind in the No. 16 slot with $294 million in contracts.

The Center for Public Integrity report noted that these contract figures were probably on the low side, saying that the publicly available federal database maintained by the General Services Administration is incomplete.

Some of the contracts have proven controversial, including several held by Parsons. The privately held engineering firm has been the subject of considerable scrutiny and Congressional hearings for what some claimed was slow progress in building health clinics throughout Iraq and a police academy in Baghdad.

The contracts held by Tetra Tech and Aecom have been considerably lower profile. Tetra Tech is the lead engineer for the design and construction of structures to protect U.S. troops from mortar and rocket attacks. Tetra Tech teams have also cleared unexploded munitions, destroying more than 60,000 tons of ordnance, according to a company fact sheet. Finally, Tetra Tech provided design management and engineering services for four regional brigade facilities for the Afghan National Army.

A Tetra Tech spokeswoman said the company was unable to provide additional comment.

Aecom’s biggest contract ($281 million) has been with the U.S. Army for vehicle maintenance, both in Iraq and Afghanistan.

Meanwhile, Parsons has received a wide range of contracts for work throughout Iraq. Besides the clinics and police academy building, Parsons has performed hazardous removal and cleanup at U.S. Army facilities and field operations in Iraq, as well as restoration and construction work for the U.S. Air Force.

“Parsons has been involved in eight competitively bid contracts as part of the Iraq reconstruction effort,” Parsons spokeswoman Amber Thompson said in a statement. “Under extremely difficult and unprecedented warlike conditions, we executed over 1,000 projects at more than 500 locations ranging from Mosul to Basra and from the Syrian border to the Iranian border. At construction peak, we employed more than 25,000 Iraqis (both direct hires and subcontractor employees).”

In 2006, criticism of Parsons mounted as it fell behind schedule on some projects. Then in May, reports surfaced that the Army was considering suspending its contracts with Parsons because of allegations of poor workmanship on several reconstruction contracts. Ultimately, the Army chose to keep Parsons.

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Source: Los Angeles Business Journal (http://www.labusinessjournal.com/article.asp?aID=08319337.7427053.1557400.748855.7025128.362&aID2=119791)

Northrop gets $160M GPS deal from Air Force

Los Angeles Business from bizjournals
November 26, 2007

Northrop Grumman Corp. has been awarded a $160 million deal with the U.S. Air Force for a next-generation global positioning system for satellites.

The GPS satellites will provide support for the existing GPS Block II and future Block III satellites. The GPS ground control segment includes satellite command and control, mission planning, monitoring stations and ground antennas.

Northrop will provide architecture design; communications and network engineering; information assurance and security; modelling and simulation; network management; software development; support, maintenance and implementation; systems engineering and integration; and test and evaluation.

Should Northrop's team is selected to proceed into system development, the program could potentially be valued at more than $1 billion. Northrop's team includes Harris Corp., Integral Systems Inc., General Dynamics Advanced Information Systems, Infinity Systems Engineering, NAVSYS Corp., and Applied Minds.

Northrop (NYSE: NOC) is a defense and technology company based in Los Angeles.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/11/26/daily2.html?surround=lfn)

Occidental signs 'major' deal in Libya

Los Angeles Business from bizjournals
November 26, 2007

On Monday, Occidental Petroleum Corp. signed a "major development contract" to upgrade several of its existing petroleum operations in Libya.

The new agreement is for 30 years and will see Occidental and the Libyan National Oil Corp. design and implement major field redevelopment and exploration programs in the Sirte Basin.

The fields have approximately 2.5 billion barrels of recoverable high-quality oil reserves. Over the next five years, about $5 billion in capital investment is expected to be made to increase gross production to more than 300,000 barrels per day from the current level of around 100,000 barrels per day.

Austrian oil and gas company OMV will also join the project with a 25 percent interest with Occidental retaining a 75 percent interest. Occidental and OMV will collectively contribute 50 percent of the development capital and Libyan National Oil will contribute the remaining 50 percent.

Los Angeles' Occidental Petroleum (NYSE: OXY) is one of the world's largest independent oil and gas exploration and production companies.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/11/26/daily6.html?surround=lfn)

New York Tycoons Making Play in L.A.

Real Estate: LeFrak family plans to buy big on the Westside.

By DANIEL MILLER
Los Angeles Business Journal Staff
November 26, 2007

They are two figures that speak volumes about New York City real estate barons the LeFraks: 34 million square feet and 100 years.

The first is the size of their portfolio – easily twice that of Donald Trump’s – and the second, the length of time the family historically has held on to its assets.

One other thing: The family is heading west and plans to elbow its way into the Los Angeles market with at least 1 million square feet of real estate.

“That’s for starters, and we are going to continue to do it over a long period of time and our whole timeline is about 100 years,” said Jamie LeFrak, who at 34 is managing director of LeFrak Organization Inc. and the fourth generation in the family business. “That’s when we will reconsider.”

The LeFraks made a splash this year by paying top dollar for two expensive local assets, marking a shift away from the brick, working-class apartment and office buildings the family built its reputation on in New York and New Jersey.

In August the family purchased an office building in Hollywood for $50 million and in June it paid $80 million for the tallest office building in Beverly Hills. And they did it in a fashion consistent with how they built their East Coast real estate empire: paying cash.

Now, the family has its eyes on other assets in its Westside target area. That could well include residential properties in addition to commercial real estate.

But they are entering the local market at a time of uncertainty. Commercial builders are having difficulty obtaining credit to build new projects, and the residential rental market is in limbo, with the for-sale side whacked by the subprime meltdown that began earlier this year. Sky high valuations even in the commercial sector are likely heading down.

Still, local real estate players watching the action aren’t prepared to place any bets against the LeFraks.

“You have a lineage and a bloodline that has been in real estate for north of a century,” said Bob Safai of Madison Partners, who represented the seller, Broadstone Hollywood LLC, in the transaction for the 175,000-square-foot tower at 7060 Hollywood Blvd. “Their horizon is generational. You are talking 100 years and a multi, multi billion dollar family with assets all over New York City who are now expanding to the West Coast. There are only a handful of people in the country like that.”

Post 9/11

The family business is run by Richard LeFrak and his sons Jamie and Harrison, 35. Richard LeFrak, 62, is the son of the late Samuel J. LeFrak, the flashy tycoon who led the family business for decades after taking over from his father, Harry LeFrak, the founder of the 106-year-old business.

Locally, Jamie LeFrak has the best institutional knowledge of the L.A. marketplace because he worked here for two years in the late 1990s for commercial real estate company Trizec Properties Inc., now part of Brookfield Properties Corp., before joining the family business.

But that doesn’t mean he was the one trying to sell his father and brother on the L.A. market. In fact, it was Sept. 11 that prompted the family to consider investing here, Jamie LeFrak said.

“(It) made us take a pause and say, ‘Boy we should really consider having a business platform outside of one place.’ There were many years of debate, discussion and exploration, probably many years in which we should have been buying things instead of talking about it,” he said. “We went to a lot of places and had a lot of ideas but in the end L.A. turned out to be the best and not because I had spent time here.”

The family, which also plans to get into the London market, but has no holdings there yet, chose Los Angeles over cities like Boston, Miami, Chicago and San Francisco after deciding the Westside had the strongest long-term real estate market.

“Los Angeles is the best other market for real estate besides New York; you just have to understand the geography and the way land lays out here,” said Jamie LeFrak, who has impeccable academic credentials, attending Princeton as an undergraduate, followed up by a masters in civil engineering from M.I.T.

“West L.A. has a tremendous clustering of wealth and the wealth chooses to locate itself in these naturally determined locations, the beach and the hills. The most valuable properties are always the ones most proximate to the hills or the beach.”

Of course, acquiring prime Westside properties is not easy, given the strong demand for it, even if it sometimes can seem overpriced. But as the family continues to look at more properties, it likely will come across sellers who appreciate the LeFraks’ ability to do cash deals.

“They do what they say and say what they do,” said Safai, who noted the cash purchase of the Hollywood building. “I think they have the capacity to do what some other buyers in a fragmented market can’t do.”

Carl Muhlstein, executive vice president at Cushman & Wakefield Inc., said he’s shown the family properties, and he’s noticed that sellers seem to understand that the LeFraks aren’t just window shopping.

“I think they might have been off the radar screen but several years ago the family started making a lot of trips out west and started shopping,” said Muhlstein, who brokers the sales of large commercial real estate transactions. “They are definitely known now.”

Top dollar

The two local assets the company currently owns are certainly flashy affairs.

The LeFraks bought the Beverly Hills office building at 9701 Wilshire Blvd. in the city’s “Golden Triangle” from Kennedy-Wilson Inc. on a so-called 1031 exchange, in which they got a tax deferral on the sale of a residential property in New York City.

The 12-story, 111,165-square-foot building is 100 percent occupied and the LeFraks keep a small, modest office there that Jamie LeFrak uses on his twice-monthly visits to the city. The deal for the building, where City National Bank is the marquee tenant, broke down to a high $720 per foot.

“Most people would say it was expensive,” acknowledged Jamie LeFrak, adding the family has a “special affinity” for Beverly Hills.

The company doesn’t plan to do much with the building, other than lease out about 20,000 square feet – a considerable and rare vacancy for Beverly Hills – when it comes online next year. The asking rental rate will be somewhere in the $5 per foot per month range.

But at the company’s Hollywood property, big changes are planned to take advantage of the community’s resurgence and lack of office space. Since purchasing that 12-story, 175,000-square-foot tower, the LeFraks have set out to reposition the vacant property, which the previous owner had originally planned to convert into a condominium tower.

The LeFraks plan to upgrade the façade of the drab building, and will revamp all of the building’s systems. The final demolition of the building’s interior is underway, with office tenants moving in possibly by the end of 2008.

“It’s like building a brand new building except you already have the superstructure, but the superstructure isn’t up to seismic code so we have to improve that, too,” said Jamie LeFrak.

The building will be marketed to entertainment and technology tenants, and it will include ground floor retail space and a “signature restaurant.” Local firm Nadel Architects Inc. is handling the remodel.

“Everybody came back to Hollywood or wants to come back to Hollywood,” Jamie LeFrak said. “There is a sentiment in the entertainment industry that says, ‘We want to come back.’ We are attracting a lot of entertainment tenants.”

Moving forward

Locally, the missing piece for the company is residential, the bread and butter of the Lefrak Organization’s business. The family’s most famous development is LeFrak City, a gigantic Queens residential project that includes 20 18-story buildings. The 1959 project includes 2 million square feet of retail space and is home to about 15,000 people in 5,000 apartments.

Clearly, the LeFraks won’t be able to build a similar project – or something even half the size – on the Westside.

“In the city of Los Angeles and Los Angeles County there are no very large tracts of land that would accept a large high-rise, high density multifamily residential project,” said Mark Tarczynski, a senior vice president at CB Richard Ellis Group Inc., who specializes in brokering large land deals for residential development. “They are here a little late, unless they want to do it out in Ontario and I know that’s not going to happen.”

Tarczynski said that the only local multifamily development that might compare to the LeFraks’ holdings in New York is Miracle Mile’s Park La Brea project, which includes 4,000 apartments and sits on 160 acres. It’s not on the market, but it’s the kind of project the LeFraks would love to do.

“I hope we can find something in that scale. For us that would be awesome to find something big like that,” said Jamie LeFrak.

For now, the family is staying away from downtown Los Angeles – where lots of high-density, vertical apartment and condominium buildings are being constructed – because it wants to focus solely on West Los Angeles.

And the market, for all its strength, will need the full attention of the family. Though the LeFraks certainly have cash on hand, business here could still be impacted by the unrest that clouds the real estate market. Since August, the commercial market has been unsteady, with whispers slowly spreading of projects losing funding as banks deal with the subprime collapse.

But Los Angeles’ relative disassociation with the financial services firms of New York City could make it an attractive alternative to doing business in the company’s home base. While layoffs in the financial services industry could result in a depression in New York real estate values, that wouldn’t be the case here, where the entertainment business is the biggest game in town, or so the family thinks.

“The fact that the financial services firms might have a bad week has nothing to do with whether people in Thailand watched the dubbed version of ‘Shrek’ today,” said Jamie LeFrak. “It’s rewarding in terms of the decision we made. It makes us feel good knowing that while New York at the moment is seeing uneasiness with what is going on in the financial services sector, here I don’t think they are running out of computer programmers to make the next video game.”

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Source: Los Angeles Business Journal (http://www.labusinessjournal.com/article.asp?aID=62520278.6352553.1557296.1127089.9864393.884&page=1)

Jacobs gets award, trio of new contracts

Los Angeles Business from bizjournals
November 27, 2007

Jacobs Engineering Group Inc. was given three new contracts and an award on Tuesday.

The contracts are with the U.S. Army Corps of Engineers, Petro-Canada and Wind Shear Inc. The award came from the Construction Management Association of America for work done on The Ocean Boulevard/Terminal Island Freeway Interchange project in Long Beach.

Jacobs was construction manager on the project, which won a Project Achievement Award in the category of infrastructure projects with a constructed value of less than $50 million. The Port of Long Beach, the project owner, also received the award.

Army Corps of Engineers
Jacobs received an indefinite delivery contract worth up to $50 million from the U.S. Army Corps of Engineers, Baltimore District, to support the Base Realignment and Closure 2005 and other programs.

Jacobs will provide services including planning, architecture, and engineering for new construction and renovation projects for military and non-military government agencies.

The Baltimore District covers projects in Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia and West Virginia.

Petro-Canada
Jacobs' Jacobs Consultancy Inc. subsidiary received a contract to study Petro-Canada's bitumen resources on its Lewis property near Fort McMurray, Alberta.

The study will help Petro-Canada define bitumen production and upgrading facilities associated with the development of the property.

Terms of the deal were not disclosed.

Wind Shear
Jacobs was awarded a five-year contract worth about $17 million from Wind Shear to test operations on and maintain the company's motorsports wind tunnel with a rolling road.

Jacobs received the original design and construction contract for the wind tunnel in 2006 and expects to complete construction in March of 2008. The tunnel, located in Concord, N.C., is designed to test full-scale NASCAR race cars.

Wind Shear Inc. is a subsidiary of Haas Automation.

Pasadena's Jacobs (NYSE: JEC) provides technical, professional and construction services, and has more than 52,000 employees worldwide.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/11/26/daily15.html?surround=lfn)

Disney Online buying iParenting Media

Los Angeles Business from bizjournals
December 4, 2007

The Walt Disney Internet Group is expanding its portfolio of family oriented Web sites, as it said Tuesday it is buying iParenting Media and its Web site iParenting.com for an undisclosed price.

Evanston, Ill.-based iParenting includes both professional and user-generated content, including articles, Q&As and message boards. Additionally, the network includes the iParenting Media Awards, which recognize the best products in the children's media and juvenile product industries. Disney said in a release that it will continue the program.

iParenting will join Disney Family.com, FamilyFun.com and Wondertime.com in Disney's group of parenting and family Web sites.

"iParenting has built a strong, trusted reputation among parents, and we feel the site is a perfect complement to our overall portfolio of family-targeted, online brands," Paul Yanover, managing director of Disney Online, said in a statement.

The Walt Disney Internet Group is the online division of the Walt Disney Co. (NYSE: DIS).

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/12/03/daily9.html?surround=lfn)

CSC signs $76M deal in Denmark

Los Angeles Business from bizjournals
December 4, 2007

The Danish operations of Computer Sciences Corp. have signed a five-year, $76 million contract with newspaper publisher Det Berlingske Officin.

Under the information technology outsourcing deal, CSC will provide help desk services, server management, project development and management, and applications development, maintenance and support.

As a part of the arrangement, approximately 70 employees will be shifted from Berlingske's IT group to CSC.

Berlingske is Denmark's biggest newspaper group with 14 daily and 50 regional newspapers. It is owned by British media company Mecom Group plc.

CSC (NYSE: CSC) is an information technology company based in El Segundo.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/12/03/daily11.html?surround=lfn)

Gemstar-TV Guide to offer program guide on Chinese cable operator

Los Angeles Business from bizjournals
December 4, 2007

Gemstar-TV Guide International Inc. has signed its first ever interactive program deal in China, signing on with Changzhou Broadcast & Television Information Network Co. Ltd.

Terms of the deal were not disclosed.

CZCATV, a cable operator with more than one million analog subscribers in the city of Changzhou, will incorporate Gemstar-TV Guide's interactive program guide and related services into set top boxes for its emerging digital cable television subscriber base.

Ching Hai Technology, a Shanghai-based distributor of digital software and hardware to cable television operators, will work directly with CZCATV to handle client management, data collection, technical support and integration of the interactive program guide.

Los Angeles-based Gemstar-TV Guide (NASDAQ: GMST) is a global media, entertainment and technology company. Its businesses include television, publishing, new media properties, interactive program guide services and products, and intellectual property licensing.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/12/03/daily12.html?surround=lfn)

Jacobs awarded pair of new contracts

Los Angeles Business from bizjournals
December 4, 2007

Jacobs Engineering Group Inc. was awarded a pair of contracts Tuesday -- one from Belgium's Erasme Hospital and one from Hindustan Petroleum Corp. Ltd.

Erasme Hospital
Jacobs will provide medical planning, layout advice services, and owner-engineer support for a new facility for Erasme Hospital, the teaching hospital at the Universite Libre de Bruxelles in Belgium.

Terms of the deal were not disclosed.

The project's total investment cost of 260 million euro involves both greenfield and revamp work and it will be executed in two phases -- Phase One will cover new construction and has a completion date of 2012. Phase Two will involve the renovation of existing facilities. The completion date for Phase Two is undefined.

Hindustan Petroleum
Jacobs received a contract for consultant services for an upgrade project at HPCL's refining complex in Mumbai, India.

The project is aimed at increasing the quality of the company's lube oil base stock. Jacobs will perform front-end engineering and supervise contracting for the project.

Financial terms of the deal were not disclosed. The total investment of the project is about $160 million.

Pasadena-based Jacobs (NYSE: JEC) provides technical, professional, and construction services. The company has 52,000 employees worldwide.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/12/03/daily15.html?surround=lfn)

Gores Group Adds to Holdings

By HOWARD FINE
Los Angeles Business Journal Staff
December 3, 2007

Los Angeles-based private equity firm Gores Group LLC has purchased Romulus, Mich.-based logistics company United Road Services Inc.

United Road Services, which is a portfolio company of the New York-based middle market private equity firm Charterhouse Group, posted $195 million in sales last year. Its primary business is moving vehicles from assembly plants and distribution centers to final delivery destinations.

Gores Group LLC was founded in 1987 and invests in technology, telecommunications, business services and industrial companies. It is headed by billionaire buyout specialist Alec Gores.

Century City-based investment bank Houlihan Lokey Howard & Zukin Inc. facilitated the transaction, the company said Monday.

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Source: Los Angeles Business Journal (http://www.labusinessjournal.com/industry_article.asp?aID=23089075.6118328.1561742.491326.6755393.232&aID2=120125&cID=2)

Marines Abuzz Over Deal for Aerovironment’s Wasp III

By RICHARD CLOUGH
Los Angeles Business Journal Staff
December 3, 2007

Aerovironment Inc., a Monrovia manufacturer of advanced unmanned aerial vehicles and quick-charge energy systems, is flying high with the military.

The U.S. Marine Corps recently placed a $19.3 million order with Aerovironment as a follow-on to a contract awarded by the Air Force in 2006. That contract provided the means for other branches of the military to place orders with Aerovironment.

The Marine Corps ordered the Wasp III unmanned vehicles, which can provide battlefield reconnaissance and surveillance. The Wasp III has an infrared camera and two color cameras that can transmit streaming video to troops on the ground.

The planes are Aerovironment’s smallest and lightest unmanned aerial vehicles, with a wingspan of just 29 inches and weighing about a pound.

Additionally, under the order Aerovironment will supply the military with a specialized battery charging system.

“The small size and light weight of Wasp make it ideally suited for deployment directly to platoons, where flexibility, portability and reliability are critically important,” said U.S. Marine Corps Maj. James Roudebush, the unmanned aerial vehicles program manager, in a statement.

Aerovironment derives about 80 percent of its $191 million in annual revenue from the sale of its line of unmanned planes. In addition to the Wasp III, the company makes about five other vehicles, including its most popular, the Raven.

Broadening Biodiesel

Allegro Biodiesel Corp., a Los Angeles-based producer and distributor of biodiesel fuel, is looking to expand.

The company has extended a $500,000 loan to Littleton, Col.-based Community Power Corp. in a move that could allow Allegro to acquire the company. Community Power specializes in using biomass – or plant material – residues for power generation.

“Our agreement paves the way for Allegro to add biomass conversion to our core competency of biofuels production,” said Bruce Comer, the company’s chief executive, in a statement.

Community Power has a proprietary gasification system that can derive energy from a variety of sources, including wood and grass, even when small amounts of plastic, such as from utensils, are mixed in.

Watershed Contract

Tetra Tech Inc. announced last week it has won a $75 million contract to provide engineering services for a nationwide watershed management program.

The Pasadena-based construction and engineering services provider was one of four companies chosen to help manage the program by the federal Environmental Protection Agency. The program will focus on improving watershed management and cleaning pollution.

Tetra Tech, which recently was named one of the county’s leading Iraq and Afghanistan military services contractors, has helped manage watershed programs since 1987.

Black Hawk Up

L.A.’s oldest company announced last week that it has won a significant deal to manufacture elements of the blades for the Black Hawk helicopter.

Ducommun Inc., a Carson-based aerospace company, will build titanium erosion shields – which protect the main rotor blades – for Sikorsky Aircraft Corp.’s military helicopter program under a new five-year, $60 million contract.

The contract was awarded by GKN Aerospace, a subcontractor to Sikorsky that is manufacturing the sheath assemblies for the blades.

Ducommun Chief Executive Joseph Berenato said the company will seek more work on the aircraft. Work on the shields will begin in January.

Diverse Deals

Civil engineering giant Jacobs Engineering Group Inc. announced two new contracts in vastly different fields.

The Pasadena company said it was awarded a $50 million contract to support base realignment for the U.S. Army Corps of Engineers and another contract by Petro-Canada to assist in heavy oil development.

Under the Army Corps of Engineers contract, Jacobs will provide a range of services to support construction projects in more than 10 states.

In the second contract, Jacobs will assist the Canadian oil and gas company in evaluating and upgrading its heavy oil development processes at its Lewis facility in Alberta. The value of the deal was not disclosed.

Valley Blast

Four people were injured last week in an explosion at a cosmetics manufacturing facility in Chatsworth.

One woman suffered burns to her face and three men had shortness of breath after the explosion at Thibiant International Inc., which firefighters said involved an organic peroxide. None of the injuries was life-threatening.

About 300 people at the Prarie Street facility and an adjacent building were evacuated.

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Source: Los Angeles Business Journal (http://www.labusinessjournal.com/industry_article_pay.asp?aID=78793793.3603784.1560507.8658062.691747.624&aID2=120030&cID=d)

Northrop to compete for $3.8B Air Force contract

Los Angeles Business from bizjournals
December 6, 2007

Northrop Grumman Corp. said Thursday that it will be competing for a nine-year contract from the U.S. Air Force worth up to $3.8 billion.

The contract would cover logistics support for the KC-10 aircraft and global logistics, maintenance and repair support for the aerial refueling system for the KDC-10 aircraft.

Both planes are used for refueling and transport.

The Boeing Co. will also be competing for the project. The companies are also competing for the Air Force's KC-X contract, which is potentially worth $40 billion.

Defense contractor Northrop (NYSE: NOC) is based in Los Angeles.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/12/03/daily31.html?surround=lfn)

National Technical Systems makes buy in Kansas

By Wichita Business Journal
Los Angeles Business from bizjournals
December 6, 2007

Calabasas' National Technical Systems Inc. said Thursday it would buy United States Test Laboratory LLC of Wichita, Kan.

USTL specializes in the testing of soft body armor, helmet, firearm safety devices, handgun testing, stab resistance and hard body armor testing. Terms of the deal were not disclosed.

"(The USTL) acquisition aligns with our growth strategy to provide a wider breadth of services to government, military and law enforcement agencies," said William McGinnis, president and CEO of NTS, in a release.

NTS (NASDAQ: NTSC) provides engineering services to the defense, aerospace, telecommunications, automotive and high technology markets.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/12/03/daily33.html?surround=lfn)

CSC gets $66M IT contract from Navy

Los Angeles Business from bizjournals
December 10, 2007

Computer Sciences Corp. was awarded on Monday a contract from the U.S. Navy's Naval Network Warfare Command worth up to $66 million.

CSC will work with the Navy to improve its information technology systems, including security, system operations and infrastructure for the Navy and Marine Corps Intranet, the Navy's connection to the Global Information Grid.

The contract is part of the Navy's Cyber Asset Reduction Security and Task Force program. The contract has a one-year base period and three one-year options.

CSC (NYSE: CSC) is an information technology company based in El Segundo.

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Source: Los Angeles Business from bizjournals (http://www.bizjournals.com/losangeles/stories/2007/12/10/daily2.html?surround=lfn)

Northrop gets Army deal worth $600M

Los Angeles Business from bizjournals
December 10, 2007

Northrop Grumman Corp. on Monday was awarded a logistics contract from the U.S. Army worth up to $600 million.

The seven-year contract is part of Global Combat Support System-Army program. Northrop's Mission System division will develop a system providing the current status of all Army equipment and assets so that soldiers can best anticipate, allocate and manage available resources.

Northrop received initial funding of $10 million for the system.

Northrop will work with IBM Global Services, Computer Sciences Corp., Joint Logistics Managers Inc. and SAP America on the contract.

Northrop (NYSE: NOC) is a Los Angeles-based defense contractor.

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Source: Los Angeles Business from bizjournals (http://www.bizjournals.com/losangeles/stories/2007/12/10/daily3.html?surround=lfn)

Teledyne subsidiary buys Impulse Enterprise

Los Angeles Business from bizjournals
December 10, 2007

Teledyne Instruments Inc. is buying San Diego's Impulse Enterprise for an undisclosed price.

Impulse is a manufacturer of underwater electrical interconnection systems. The company had sales of $16.8 million for its fiscal year ended December 31, 2006.

The purchase will allow Teledyne to increase its business to offshore oil and gas, defense, oceanographic and telecom markets by offering products that function underwater.

The deal is expected to close on December 31, after which, the company will operate under the name Teledyne Impulse.

Teledyne Instruments is a subsidiary of Los Angeles-based Teledyne Technologies (NYSE: TDY), a provider of electronic components, instruments and communication products, systems engineering solutions, aerospace engines and components and on-site gas and power generation systems.

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Source: Los Angeles Business from bizjournals (http://www.bizjournals.com/losangeles/stories/2007/12/10/daily4.html?surround=lfn)

ATopTech, Broadcom in software deal

By Silicon Valley/San Jose Business Journal
Los Angeles Business from bizjournals
December 10, 2007

ATopTech Inc. said Monday it entered a "multi-million dollar per year" contract with fabless semiconductor company Broadcom Corp. to incorporate its place and route software for designing integrated circuits into Broadcom chips.

Santa Clara-based ATopTech did not disclose specific terms of the deal with Irvine-based Broadcom (NASDAQ:BRCM), but said Broadcom's first chip using ATopTech's software is already in the works.

The privately held company said the Broadcom agreement is a "multi-year" deal.

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Source: Los Angeles Business from bizjournals (http://www.bizjournals.com/losangeles/stories/2007/12/10/daily8.html?surround=lfn)

Seneca Gaming retains Live Nation for concert bookings

By James Fink, Buffalo Business First
Los Angeles Business from bizjournals
December 10, 2007

Seneca Gaming Corp. has retained Live Nation to be the exclusive booking agent for its New York casino operations in Niagara Falls and Salamanca.

Terms of the deal were not disclosed.

Live Nation is the largest concert promoter in North America.

The deal covers entertainment acts booked for the Seneca Events Center and Bear's Den Showroom at the Seneca Niagara Casino & Hotel and the Seneca Events Center, a 2,000-seat venue that will open in February at the Seneca Allegany Casino & Hotel in Salamanca.

Such acts as Matchbox Twenty, Alanis Morrisette, Kid Rock and Collective Soul have been booked at least one of the venues thanks to the new partnership.

"Their (Live Nation) industry knowledge and reputation for producing tours for some of the biggest names in the music business is a perfect fit for our growing entertainment division at Seneca Gaming Corp.," said Rob Victoria, Seneca Gaming senior vice president of marketing. "This partnership will allow us to draw bigger names and bigger crowds."

Los Angeles-based Live Nation (NYSE: LYV) owns and operates concert venues across the nation.

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Source: Los Angeles Business from bizjournals (http://www.bizjournals.com/losangeles/stories/2007/12/10/daily9.html?surround=lfn)

Jacobs awarded four new overseas contracts

Los Angeles Business from bizjournals
December 11, 2007

Three contracts from London highlight the four awarded to Jacobs Engineering Group Inc. on Tuesday.

Havering

Jacobs received two contracts from the London Borough of Havering to work with borough teams on highway and building programs.

Among the projects that will be dealt with under the contract will be transportation, the upkeep of property assets, regeneration, and economic development.

The two contracts will run in parallel for up to 10 years with an opportunity for extension beginning in January 2008.

The value is not determined, but is estimated between 12 and 20 million pounds sterling, or $24.4 to $40.7 million, over the ten-year period.

Blackfriars Station

Jacobs received a contract from Network Rail, the United Kingdom's rail network owner and operator, for support on the redevelopment of Blackfriars Station in London.

Value of the contract was not disclosed. The contract has a top-end length of five years.

Jacobs will provide project management, architecture, engineering and environmental services for the project, which is part of the Thameslink program aimed at increasing passenger capacity on one of Europe's busiest railways.

INVISTA

Jacobs' operations in Singapore were awarded a contract by INVISTA (Singapore) Pte. Ltd. for engineering, procurement and construction-management services for INVISTA's nitric acid plant on Jurong Island in Singapore.

Specific terms of the deal were not disclosed.

Nitric acid is a feed stocks for adipic acid, which is used to make nylon, polyurethane and other products.

Pasadena's Jacobs (NYSE: JEC) provides technical, professional, and construction services. It has more than 52,000 employees worldwide.

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Source: Los Angeles Business from bizjournals (http://www.bizjournals.com/losangeles/stories/2007/12/10/daily18.html?surround=lfn)

CIM Group expands D.C. portfolio

By Joe Coombs, Washington Business Journal
Los Angeles Business from bizjournals
December 12, 2007

JP Morgan Investment Management, a division of New York's JP Morgan Chase & Co. (NYSE: JPM), sold the two-building, 609,540-square-foot Union Square office complex in Washington, D.C., to Los Angeles' CIM Group Inc. for $262 million.

Jones Lang LaSalle (NYSE: JLL) represented JP Morgan, which has only owned the property for about a year.

The buildings are fully leased to various D.C. government agencies, including the Department of Health, Office of Tax and Revenue and Department of Consumer and Regulatory Affairs.

"This offering was one of D.C.'s most in-demand investment opportunities, given the property's prime government location immediately north of Capitol Hill," said John Kevill, Jones Lang LaSalle's co-managing director in D.C., in a statement.

Part of the deal includes a development entitlement on the site for a new 256,000-square-foot office building. CIM Group already owns several properties in the District.

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Source: Los Angeles Business from bizjournals (http://www.bizjournals.com/losangeles/stories/2007/12/10/daily19.html?surround=lfn)

Yum details international plans for Taco Bell

By Business First of Louisville
Los Angeles Business from bizjournals
December 12, 2007

Following the lead of sister brands KFC and Pizza Hut, Taco Bell Corp. is starting to expand outside of the United States, according to a report by Reuters.

Currently, Irvine-based Taco Bell operates one restaurant in Monterrey, Mexico, and five restaurants in the Philippines. The company plans to expand to Dubai, Spain, India and Japan within the next two years, Reuters said.

Taco Bell CFO Rick Carucci told investors at a meeting in New York that the brand's international stores won't become a significant sales and profits driver for parent company Yum Brands Inc. for five to 10 years, Reuters said.

Carucci said Louisville, Ky.-based Yum's International Division, which currently has about 12,000 stores, eventually could have 40,000.

Yum (NYSE: YUM), which also owns the Long John Silver's and A&W All-American Foods brands, has about 35,000 restaurants worldwide.

At the same investor meeting, Yum CEO David Novak detailed growth strategies for the company, which has said in recent weeks that it will concentrate on boosting performance at its U.S. restaurants, which have lagged behind the explosive growth of its international operations.

According to Reuters, Yum's strategy includes introducing healthier products, broadening menus and emphasizing breakfast and evening sales.

For KFC, Yum has more grilled products, desserts and beverages in store. At Pizza Hut, Yum plans to launch a new line of pastas aimed to increase weeknight sales, Reuters said. Taco Bell will add frozen drinks next summer and a breakfast menu in a couple of years.

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Source: Los Angeles Business from bizjournals (http://www.bizjournals.com/losangeles/stories/2007/12/10/daily24.html?surround=lfn)

DirecTV buys DVR software developer ReplayTV

Los Angeles Business from bizjournals
December 13, 2007

DirecTV Group Inc. has bought the ReplayTV business from Japan's D&M Holdings Inc., according to a report from Reuters.

ReplayTV develops software for digital video recorders. D&M acquired ReplayTV in a $36 million deal in 2003 that also gave it the Rio music-player brand. D&M subsequently unloaded the Rio brand in 2005. D&M reorganized the ReplayTV business, focusing on the software aspect.

The sale of the ReplayTV business will allow D&M to focus on its other brands, most of which are high-end audio products.

Financial terms of the deal were not disclosed.

DirecTV (NYSE: DTV) is based in El Segundo. It first announced its in-house DVR product in August 2005.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/12/10/daily29.html?surround=lfn)

J2 Acquires RapidFax

By ALLEN P. ROBERTS Jr.
December 13, 2007

J2 Global Communications Inc. said Thursday it has acquired the RapidFax business of Easylink Services International, a Norcross, GA-based business-to-business e-commerce services provider.

Terms of the deal were not disclosed. Los Angeles-based J2 said the deal includes all RapidFax customers, the RapidFax trademark and other related assets. RapidFax provides online fax-to-email services for consumers. J2 also said that the financial impact of the purchase is “immaterial.”

In July, J2 acquired Ireland-based messaging services provider YAC Limited for an undisclosed sum.

Shares in J2 were down 8 cents to $22.28 in early trading Thursday on the Nasdaq. Shares in J 2 have slipped 32 percent since the company reported third-quarter earnings in early November that missed Wall Street’s expectations.

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Source: Los Angeles Business Journal (http://www.labusinessjournal.com/industry_article.asp?aID=96476712.1380221.1565629.7853166.6758917.944&aID2=120424&cID=j)

CSC gets $89M task order

Los Angeles Business from bizjournals
December 17, 2007

Computer Sciences Corp. on Monday was awarded an $89 million task order under the U.S. Army Information Technology Enterprise Solutions-2 Services contract.

Under the order, CSC will support the Net-Centric Enterprise Services for the Defense Information Systems Agency's Service-Oriented Architecture Foundation program. CSC will develop, engineer, install and operate both classified and unclassified architecture foundation systems at multiple Defense Information Systems Agency locations in the continental United States and overseas.

The order has a base period of years and five one-year options.

CSC's team members on the project include BEA Systems, of San Jose, Raytheon Co., of Waltham, Mass., and Sun Microsystems of Santa Clara.

Also on Monday, CSC said it will release its first- and second-quarter earnings reports on December 20. The reports have been delayed as the company is conducting a review of its tax accounting.

CSC (NYSE: CSC) is a global information technology company based in El Segundo.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/12/17/daily2.html?surround=lfn)

Oxy Buys Western Oil Fields

By ALLEN P. ROBERTS Jr.
December 17, 2007

Occidental Petroleum Corp. said Monday that it has agreed to buy $1.55 billion in oil assets from Houston oil company Plains Exploration & Production Co.

The sale is for a 50 percent interest in Plains Exploration's Permian Basin holdings in West Texas and New Mexico, as well as a 50 percent interest in its Piceance Basin holdings in Colorado. Plains Exploration also sold $200 million worth of assets to XTO Energy Inc., a Fort Worth-based oil company.

The Permian basin holdings generate about 18,000 barrels of oil per day, with about 91 million barrels of oil in proved reserves as of the end of last year.

Los Angeles-based Occidental said the transaction, expected to close in the first quarter, will help it achieve its goal of 20 percent year-over-year growth from its combined Piceance assets.

Shares in Occidental were down 2.3 percent to $68.72 in early trading Monday on the New York Stock Exchange.

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Source: Los Angeles Business Journal (http://www.labusinessjournal.com/article.asp?aID=7390008.1654064.1567397.4399801.4517903.598&aID2=120560)

IPC buys hospitalist group in San Antonio

By San Antonio Business Journal
Los Angeles Business from bizjournals
December 18, 2007

Accomplished Diagnostic Medical Inpatient Team P.A. (ADMIT), a hospitalist group based in San Antonio, has been acquired by North Hollywood's IPC The Hospitalist Company Inc. (IPC).

ADMIT is comprised of 11 physicians operating as two practice groups. One group is located at North Central Baptist Hospital and the other at Northeast Baptist Hospital. Both hospitals are acute-care suburban facilities and part of the Baptist Health System owned by Vanguard Health Systems. Between the two hospitals, ADMIT physicians currently treat approximately 150 patients per day.

"We welcomed the opportunity to work with IPC because we believe the company's extensive infrastructure and technology will be beneficial in supporting the hospitalist services we provide to our community," says ADMIT principal George Wilcox "We are very enthusiastic about joining the industry leader in hospital medicine and look forward to a mutually rewarding future."

The purchase of the ADMIT Hospitalist Group marks the seventh acquisition that IPC The Hospitalist Company has made in 2007. Financial terms of the deal were not disclosed. IPC is a leading provider of hospitalist medicine in the United States. It owns or provides management services to hospitalist practices operating in more than 300 facilities across 16 states.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/12/17/daily10.html?surround=lfn)

Jacobs gets mediacity:uk contract

Los Angeles Business from bizjournals
December 18, 2007

Jacobs Engineering Group Inc. was awarded a services contract from Peel Media Ltd. for work on phase one of the mediacity:uk project.

The mediacity:uk project will provide new accommodations and studio facilities for the BBC and consists of the site infrastructure, three new office buildings, a hotel, residential towers, a multi-story parking structure, and a television and radio studio complex.

Jacobs will provide civil, structural, and environmental design services under the contract, the terms of which were not disclosed.

Pasadena-based Jacobs (NYSE: JEC) provides technical, professional, and construction services. The company has more than 52,000 employees worldwide.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/12/17/daily18.html?surround=lfn)

Reliance Steel's Valex subsidiary opens China facility

Los Angeles Business from bizjournals
December 19, 2007

Valex Corp., a subsidiary of Reliance Steel & Aluminum Co., has opened a facility in China that will produce ultra high purity tubes, fittings and valves for the semiconductor, LCD and solar industries, the company said Tuesday.
The 24,000 square foot facility is located in the Nanhui district of Shanghai and is the first Valex manufacturing plant in China. The facility was opened by Valex China Co. Ltd., a unit that is wholly owned by Valex Holdings. Reliance owns 88 percent of Valex Holdings.

Valex Corp. also has operations in Ventura, Calif., and Pyongtaek, South Korea. It is a 97 percent owned subsidiary of Reliance.

Los Angeles-based Reliance Steel & Aluminum (NYSE: RS) is a metals services center with more than 180 locations in 37 states, Belgium, Canada, China, South Korea and the United Kingdom.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/12/17/daily19.html?surround=lfn)

Ceradyne gets 3-year order from Defense Supply Center Philadelphia

Los Angeles Business from bizjournals
December 19, 2007

Ceradyne Inc. has received an indefinite delivery/indefinite quantity 3-year order for enhanced small arms protective inserts from the Defense Supply Center Philadelphia, according to a release.

The order is worth a minimum of $22 million to a maximum of $87 million, according to a release. The initial order of $16.2 million is scheduled to ship in the second quarter of 2008.

Costa Mesa-based Ceradyne (NASDAQ: CRDN) develops, manufactures and markets technical ceramic products and components for defense, industrial, automotive/diesel and commercial applications.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/12/17/daily22.html?surround=lfn)

CSC announces contracts with TrygVesta, Dept. of Defense

Los Angeles Business from bizjournals
December 20, 2007

Computer Sciences Corp. announced two separate contracts on Thursday.

TrygVesta

Computer Sciences Corp. has signed a five-year, $192 million information technology outsourcing contract renewal with TrygVesta, an insurance company in the Nordic region.

The new contract, which supersedes the previous agreement signed in 2003, expands geographic coverage throughout the region and provides infrastructure services for about 3,900 users at TrygVesta locations in Denmark, Norway, Sweden and Finland, according to a release.

Department of Defense

CSC separately announced a contract to provide systems engineering and technical support services for the Department of Defense's Product Manager, Force Protection Systems organization, according to a release. The contract, with a one-year base period and four one-year options, is valued at about $70 million if all options are exercised, according to a release.

The company will provide systems engineering and integration support during the research, development, production and fielding of developmental and commercial products and equipment, according to a release. CSC is leading a team of small firms on the contract, including Springfield, Va.-based Empire Video and Earthcare Technologies, Wye Mills, Md.-based Registration Control Systems, and Edgewater, Md.-based The Convention Store.

El Segundo-based CSC (NYSE: CSC) is a global information technology services company.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/12/17/daily31.html?surround=lfn)

Live Nation signs global ticketing business deal

Los Angeles Business from bizjournals
December 20, 2007

Live Nation has signed a long-term agreement with German company CTS Eventim to exclusively license the Eventim ticketing platform in North America and to have Eventim provide back office ticketing services in the UK and ticketing services across Europe, the company said Thursday.

Live Nation will begin selling tickets under the new agreement January 1, 2009, according to a release. The deal will allow Live Nation to "control customer data, to create enhanced ticket-based concert products and to capitalize on expanded distribution channels and sponsorship opportunities," according to a release.

The Eventum platform offers features like interactive seating maps, mobile distribution, integrated primary and secondary ticketing, alternative access models, print-at-home, and radio frequency identification ticketing, according to a release.

Los Angeles-based Live Nation (NYSE: LYV) owns and operates concert venues across the nation.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/12/17/daily32.html?surround=lfn)

Fatburger expands again

By Portland Business Journal
Los Angeles Business from bizjournals
December 20, 2007

Fatburger Corp. has opened its sixth restaurant in Western Canada, in Edmonton, Alberta.

Santa Monica-based Fatburger operates 92 restaurants across the U.S. and in Mexico and China. In October, the chain said it planned to open three restaurants in the United Arab Emirates.

Fatburger is one of Portland-based Fog Cutter's four business segments. Fog Cutter (OTCBB: FCCG) also operates subsidiaries in real estate investments; software development and sales; and the manufacture of machines used to produce glass lenses for eyewear.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/12/17/daily34.html?surround=lfn)

Teledyne to buy Judson Technologies

Los Angeles Business from bizjournals
December 26, 2007

Teledyne Technologies Inc. subsidiary Teledyne Scientific & Imaging LLC has agreed to buy the assets of Judson Technologies LLC, the company said Monday.

Terms of the deal, scheduled to close Feb. 1, were not disclosed.

Montgomeryville, Penn.-based Judson makes infrared detectors and other products for military, space, industrial and scientific applications, according to a release. It had sales of $13.8 million in the fiscal year ended Dec. 31, 2006. The company will operate under the name Teledyne Judson Technologies after the deal closes.

Thousand Oaks-based Teledyne (NYSE: TDY) provides electronic components, instruments and communication products; systems engineering solutions; aerospace engines and components; and on-site gas and power generation systems.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/12/24/daily1.html?surround=lfn)

CSC gets $113M deal from NASA

Los Angeles Business from bizjournals
December 27, 2007

Computer Sciences Corp. has received a five-year, $113 million task order from the National Aeronautics and Space Administration for supercomputing systems integration services.

CSC will provide the services at the NASA Center for Computational Sciences, the computing facility operated, maintained

and managed by the Goddard Space Flight Center's Computational and Information Sciences & Technology Office.

The NASA Center for Computational Sciences provides scientists and engineers with the supercomputing resources and simulation tools needed to carry out critical NASA missions and to make new scientific discoveries.

The task order was awarded under the General Services Administration Millennia contract.

CSC (NYSE: CSC) is an information technology company based in El Segundo.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/12/24/daily8.html?surround=lfn)

CSC, Sun extend IT agreement

Los Angeles Business from bizjournals
December 27, 2007

Computer Sciences Corp. has signed an extension on its information technology management services contract with Sun Microsystems Inc.

Financial terms of the five-year extension were not disclosed.

CSC will continue to provide all applications development and support services for Sun's business applications portfolios -- including finance, manufacturing, messaging, enterprise resource planning, customer relationship management, data warehousing and other general technology software.

CSC will also manage Sun's new Oracle 11i enterprise resource planning system as it moves to the new 11i platform.

CSC (NYSE: CSC) is an information technology company based in El Segundo.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/12/24/daily9.html?surround=lfn)

CSC gets $613M deal for DoD network communications

By San Antonio Business Journal
Los Angeles Business from bizjournals
December 28, 2007

Computer Sciences Corp. has been awarded a network services contract from the Defense Information Systems Agency potentially worth $613 million.

El Segundo-based Computer Sciences Corp. (NYSE: CSC) won the Defense Information System Network (DISN) Network Management Support Services-Global Recompete Network Engineering contract.

The contract has a base two-year period and three, one-year options.

Contractors on the company's team include San Antonio-based AT&T Inc. (NYSE: T), BAE Systems Inc. in Herndon, Va., and CACI and General Dynamics in Arlington, Va.

CSC held the previous round of this contract since 1999. Under the terms of the new agreement, CSC will continue providing design, engineering, operation and management of voice services for the Defense Switched Network, the secure voice services of the Defense Red Switch Network and network management systems.

The Defense Information System Network contract provides for network management infrastructure support for U.S. services, agencies and combatant commanders. It allows for continuous communications for warfighters around the world.

"Timely and assured communications is vital to our armed forces," says James W. Sheaffer, president of Computer Sciences' North American Public Sector business.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/12/24/daily13.html?surround=lfn)

Report: Apple, Fox in online movie rental deal

By Silicon Valley/San Jose Business Journal
Los Angeles Business from bizjournals
December 28, 2007

Apple Inc. has signed an agreement with Twentieth Century Fox Film Corp. to offer movies through its iTunes Store, according to reports Friday.

The Financial Times said the deal with Fox and Cupertino-based Apple (NASDAQ:AAPL) would let users rent DVDs by downloading digital copies.

The report said Apple will also license its FairPlay copy-protection platform to Fox, and it will be built into the DVDs, letting users transfer the movies to an iPod or computer for playback.

Century City-based 20th Century Fox is part of the News Corp. (NYSE: NWS) conglomerate.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/12/24/daily14.html?surround=lfn)

Gores Group buys Tyco Electronics Power Systems for $100M

By Dallas Business Journal
Los Angeles Business from bizjournals
December 28, 2007

The Gores Group LLC, a leading investment firm based in Los Angeles, has acquired Tyco Electronics Power Systems from Tyco Electronics Ltd. in a $100 million cash deal.

The buy was made through a newly formed company, Lineage Holdings. That entity operates through two entities, including Lineage Power, which is based in Mesquite and employs 1,900. Lineage Power makes power supply and power conversion products for telecom service providers and enterprise companies.

The other entity is Vincotech, which is based in Germany and has 600 employees. Vincotech makes power modules and other technologies used in industrial, automotive and GPS applications. It has manufacturing operations in Hungary and China.

In a statement released Friday, Ryan Wald, managing director of The Gores Group, said he's delighted with the acquisition of Tyco Electronics Power Systems, now Lineage Holdings.

"With its heritage of industry leading power conversion and power module products, blue chip customers and committed employees, we believe that Lineage is well positioned to take advantage of the growth opportunities present in its industry," Wald said. "Gores will provide financial support and leverage its operating expertise to strengthen its leadership position worldwide and create a platform for profitable growth."

All U.S. employees will become members of the new company on the effective date of the close. The assets and employees of the business in Shanghai, India, Germany and certain other European jurisdictions will be transferred following the satisfaction of certain regulatory and other customary closing conditions.

Founded in 1987, The Gores Group LLC's current private equity fund has committed capital of $1.3 billion. Besides Los Angeles, it has offices in Boulder, Colo., and London.

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Source: Los Angeles Business from bizjournals (http://losangeles.bizjournals.com/losangeles/stories/2007/12/24/daily16.html?surround=lfn)

I will be heavily cutting back on the amount of news and articles I post in this thread. It's becoming redundant for me even. I just wanted to finish out the news for 2007. Now that it's a new year, I won't be posting news as frequently as I did in 2007.

Though once in a while, I will post an article or two in which I deem significant and or interesting.

Happy New Year! May 2008 be an even better year for Los Angeles! :)

It's too bad you slowed this one down, WSL. You were kind of on a roll here for a while..

^ There are ways of creating posts other than via cut and paste. That requires very little brainpower. I haven't given up on this thread completely. I just want to focus on articles that offer a broader picture on things. I have some things to post in here, but I just haven't got to it yet. Though thanks for checking up on me. You obviously must care! :hug:

Special Report: Who's Who in Banking

Internet: MySpace Acquisition Raised L.A.’s Web Profile

By AMANDA BRONSTAD
Los Angeles Business Journal Staff
February 15, 2008

As the birthplace of the modern tech industry, Silicon Valley has cast a long shadow over L.A.

Finally, the Los Angeles tech market appears ready to take its place in the sun.

Last year, digital media, e-commerce and other Web 2.0 businesses received $248 million in venture funding – easily more than twice as much as 2006, according to a survey by PriceWaterhouseCoopers.

That kind of growth placed Los Angeles third in the nation in Web 2.0 financing, outpacing New England, and trailing only New York and Silicon Valley. In 2006, Los Angeles was a distant fourth, bringing in $111 million.

All these deals reflect heady times in the local tech market, where money is flowing into fledgling startups – everything from social networking sites and Internet TV platforms to search optimization technology, and new media companies relying on entertainment and other content.

And despite all the virtual technology, the deal-making takes real-life flesh and blood to carry out, which means individuals are making it happen in Los Angeles. So just who are they?

This year, the Business Journal’s Who’s Who in Banking and Finance package zeros in on major players in Web 2.0 financing. It’s a list of 22 venture capitalists, deep-pocketed angel investors, seasoned entrepreneurs, and a group of lawyers and other enablers who play crucial roles in connecting new ideas with money.

“An entrepreneurial culture is really starting to take hold here,” said Greg Martin, an active investor and partner at L.A.-based Redpoint Ventures, one of the first backers of MySpace. “Success breeds success, and there’s been a lot of that here among Web 2.0 companies.”

That’s almost an understatement.

Last year, 40 Web 2.0 financing deals took place in Los Angeles, four more than traditional tech powerhouse Boston.

The genesis of Los Angeles’ Web 2.0 renaissance began with high-profile acquisitions dating back to 2003 when Burbank-based search engine Overture sold to Yahoo for $1.6 billion.

The next year, Santa Monica-based Rent.com was acquired by eBay Inc. for $415 million. Then, in 2005, Experian Interactive scooped up Westwood-based PriceGrabber.com for $485 million and News Corp. made headlines buying MySpace for $580 million – a seemingly high price at the time but now a veritable bargain.

A Web 2.0 startup begins with an innovative idea, a committed management team and a lucrative revenue model. Compared to other tech startups, like biotech or computer hardware companies, these Internet companies require little infrastructure, and seed money generally ranges between $3 million to $7 million.

It’s the kind of model that begat downtown’s Oversee.net, a search engine optimization company that started in a college dorm room, which generates $200 million in revenue.

Another example is Santa Monica-based DemandMedia, a high-tech new-media company. Headed by former MySpace Chairman Richard Rosenblatt, it’s pumped with $320 million in venture capital and has already made nearly 20 acquisitions.

Randy Churchill, an L.A.-based technology business development director for PricewaterhouseCoopers, said the numbers are growing because of the dynamics of Web 2.0 financing.

“We’re seeing an increasing number of smaller deals in Los Angeles because it’s much cheaper to start an Internet company than it used to be,” said Churchill, who conducts the accounting firm’s local Moneytree venture capital survey. “It’s really on the consumer side of the Internet that L.A. is building a critical mass.”

Gone are the days, for example, where investors spent well over a billion dollars to set up Internet grocers such as Webvan, which needed warehouses, a fleet of trucks, delivery men and other brick-and-mortar infrastructure.

That’s not to say investing in Web-based infrastructure isn’t happening, especially for the hardware that makes today’s networks and computers faster and more reliable. For example, when including venture funds for Internet infrastructure technology – both hardware and software – Boston surpasses Los Angeles by about $200 million.

In L.A. though, the Web 2.0 startups are focused on the consumer side of the Internet, along with others that are business-to-business focused. Proximity to Hollywood also sets the scene for burgeoning new-media businesses.

“A Web business is fundamentally a media business that requires creativity in content, capturing people’s attention and keeping them entertained,” Martin said. “That’s what Los Angeles is known for.”

The talent pool has always been here, but now Martin is witnessing this Web 2.0 boom lure people into actually leaving their media jobs and taking chances on Internet startups.

Ultimately, investors are looking for entrepreneurs with a track record of building businesses from scratch and enabling them to take off. Enough of them have demonstrated success in Los Angeles that venture capitalists and angel investors, long fixated on Silicon Valley, have begun shifting their gaze south.

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Source: Los Angeles Business Journal (http://www.labusinessjournal.com/article.asp?aID=88849037.3718814.1587898.4970688.5506449.540&page=1)

Nice re-entry Westy

$70 million India trade boost for Southern California http://i231.photobucket.com/albums/ee192/trolltoast/RaiBollywood.jpg ruggedelegantliving.com

Daily News Wire Services
Article Last Updated: 03/28/2008 06:33:15 AM PDT

Southern California's economy will soon get a $70 million economic boost thanks to a delegation of local business and government leaders who recently returned from a trip promoting trade and strengthening economic ties with India.

"The preliminary outcome of this mission was highly successful, with participating companies reporting more than $70 million in projected export sales," said Vance Baugham, president of the Los Angeles-Long Beach chapter of the World Trade Center Association.

"We anticipate an attraction of a direct airline flight to LAX in 2009," said Baugham. "We are also in discussions with a major Indian hotel brand to add a location in Los Angeles County that could bring up to $100 million in Indian investment to the region, with 500 to 600 new jobs," he added.

The WTCA supports development of international trade and business opportunities for local companies and promotes the L.A. region as a destination for foreign investment.

Baugham was among the 25-member delegation, which included representatives from the cities of Long Beach and Los Angeles, the Port of Long Beach, Los Angeles World Airports, as well as major corporations such as AECOM, Clean Energy, KPMG, Paramount Pictures, Seyfarth Shaw, KPC Group, Oasis, and Cal State Long Beach.

The delegation -- led by Los Angeles County Economic Development Corporation Chairman Ray Holdsworth and CEO Bill Allen; WTCA President Vance Baugham and India-born Long

Beach Councilwoman Suja Lowenthal -- met with Indian government and industry leaders on the country's infrastructure needs, such as air and sea ports in New Delhi, Mumbai and Kolkata.
The trip also included a series of business matchmaking meetings conducted throughout India. Officials introduced local and regional engineering, technology and transportation-related companies doing business with the Port of Long Beach and Los Angeles to their Indian counterparts.

India's economy, the world's 12th largest, is expected to grow exponentially in the coming decades to meet rising demand in Europe, Asia and the United States.

"That expertise exists in Los Angeles County, which is home to the Port of Long Beach and neighboring Port of Los Angeles, together making up the largest port complex in the Americas and fifth largest in the world," said LAEDC President and CEO Bill Allen.

The LAEDC is a private, nonprofit organization established in 1981. Its mission is to attract, retain, and grow business and jobs in Los Angeles County. Since 1996, the LAEDC has helped retain or attract more than 135,000 jobs, providing $5.6 billion in direct economic impact from salaries and $95 million in annual tax revenue to benefit to local governments and education in L.A. County. Daily News

^^ And meanwhile, our ties with Asia only get stronger. :cheers: That was a good read.

LAUSD talking about speaking more Chinese
To help students compete globally, new classes might be offered
By Naush Boghossian, Staff Writer
Article Last Updated: 03/29/2008 10:16:18 PM PDT
http://i231.photobucket.com/albums/ee192/trolltoast/FE_DA_071022china.jpg usnews.com

Acknowledging the growing force of globalization, the Los Angeles Unified School District is gearing up an ambitious program to offer Mandarin Chinese language and culture courses at all of its middle and high schools.
The plan, which will go to the board next month, calls for the courses to be offered at about 200 middle and high schools, and each of the LAUSD's eight local districts also would have at least one dual-immersion program in which students started studying the language in kindergarten.

The move would be one of the largest of its kind in the nation and would put Los Angeles Unified on the cutting edge of language and culture instruction in public schools.

Superintendent David Brewer III touted the plan at a Los Angeles Chamber of Commerce luncheon last week. He called it "embarrassing" in his years as an admiral that the U.S. Navy is the only one in the world whose sailors speak just one language.

"It's arrogance. Every student in China is taking English classes," he said.

LAUSD has been working for the past 18 months with Mandarin in the Schools - a local panel created by a prominent national nonpartisan Chinese-American organization called the Committee of 100 - on how to expand the classes in Los Angeles schools.

Representatives of Los Angeles city government, LAUSD and California State University, Los Angeles, are among members of the panel, which plans to launch a campaign to help recruit teachers and raise community awareness of the program.
School board member Yolie Flores Aguilar is sponsoring a resolution for the program, which proposes requiring at least one high school in each of the eight local districts to offer Chinese language and culture courses in the 2008-09 school year.

About 713 of 700,000 students in the district take Mandarin courses at the 14 schools that now offer the language. By 2009-10, each local district would have at least one high school, one middle school and one elementary school class offering a Mandarin language and culture program.

Starting in 2010, local districts that already had Mandarin classes would increase grade levels involved, and courses would be added at new sites.

"It's important because we - not just here in California and in L.A., but across the nation - are significantly falling behind other countries in terms of our abilities to manage in a global economy," Aguilar said.

"I don't think we have a second to spare. The rapidness of the economy in terms of moving in a global direction is not something we should take lightly, and there's no reason to wait."

The nation's second largest school district already offers instruction in foreign languages - including German, Italian, Japanese and Russian - and in American Sign Language to about 77,000 secondary students.

Only one school offers a dual-language program in Mandarin, while 24 offer such programs in Spanish and eight in Korean.

Harry Haskell, director of world languages and cultures at LAUSD, said it's critical that U.S. schools make Mandarin more available.

"Mandarin is and will continue to be a very critical language," Haskell said. "We're realizing right now that because of globalization, it's vital that we have second-language skills because we have to compete with the rest of the world.

"And we are not."

Stewart Kwoh, vice chairman of the Committee of 100, said the Mandarin in Schools committee will work to recruit teachers from among Mandarin speakers in the greater Los Angeles area, which boasts the largest concentration of Chinese-Americans in the United States.

"There are about 200million Chinese learning English, and less than 50,000 Americans learning Mandarin," said Kwoh, who also is executive director of the Asian Pacific American Legal Center of Southern California.

"We felt that it was very important for American youth to be able to learn Mandarin to be able to compete in the global marketplace, to understand a fast-growing country and its culture, and to be able to converse on the world stage with Chinese being one of the most widely used languages of the world."

Kwoh said he thinks there will be a demand for the courses, noting the number of students taking Mandarin doubled in one year when the district brought in four guest teachers from China.

"If the school board adopts this plan, Los Angeles would be a pacesetter in the country in terms of aggressiveness of a plan to broaden Mandarin programs," Kwoh said. "This is a very aggressive plan."

School districts in cities including Chicago, New York, Washington D.C., Seattle and Portland, Ore., are already offering Mandarin from kindergarten through grade12.

Mayor Antonio Villaraigosa long has emphasized the need for students to be proficient in more than one language to remain competitive in a growing world economy.

And he has repeatedly mentioned that his son took a one-month summer course to learn Mandarin.

"In a global work force, knowing a second language like Chinese or Spanish will be critical to our children's success," Villaraigosa said.

"It's encouraging that the LAUSD leadership recognizes this and is making the commitment now to provide our students every opportunity possible."

Kay Kei-ho Pih, assistant professor in the sociology department of California State University, Northridge, said demand for Mandarin courses has surged in recent years.

And he said that while English will remain the primary language in the global economy for the foreseeable future, the ability to read and speak Chinese will become increasingly important.

"We are very ethnocentric in how we view the world - as demonstrated by a lack of knowledge of international affairs," Pih said. "It's a very practical measure, as China is the No.1 trade partner of the U.S.

"It's very important for American kids to learn not just Chinese, but a foreign language."
Daily News

this is very important. i wish i knew Chinese.

^^ Yeah. Integrating something this crucial into the LAUSD could drastically alter the direction of the city for the better in the future and will hopefully attract more Chinese investment into our local/state economy.

L.A has Enormous Potential...Remember that this city was once just a small town/village,but look how quickly it made it's way up to become the 2nd Largest City in the U.S with the 2nd Largest Economy.

...and third in the world, or so I've heard. London, I think, is ranked 6th.

Electric car for the masses to be made in Southern California
http://i231.photobucket.com/albums/ee192/trolltoast/think_city.jpg blog.wired

Norway's Think Global will begin selling its inexpensive, eco-friendly vehicles in the U.S. next year.
By Ken Bensinger, Los Angeles Times Staff Writer
April 22, 2008
Norwegian automaker Think Global said Monday it planned to sell low-priced electric cars to the masses and will introduce its first models in the U.S. by the end of next year.

The battery-powered Think City will be able to travel up to 110 miles on a single charge, with a top speed of about 65 mph, the company said. It will be priced below $25,000.

Oslo-based Think said venture capital firms RockPort Capital Partners and Kleiner, Perkins, Caufield & Byers had made investments to fund its entry into the U.S. under the auspices of Think North America.

"This is not a toy," said Wilber James, RockPort managing partner. "This is a serious car that we expect to sell."

Think North America is likely to be based in Southern California, the investors said, and the cars it sells here will be assembled locally. The venture investors will own half of Think North America. In March, General Electric Co. invested $4 million in Think Global.

Although technology for electric cars has been advancing -- and consumer interest has been rising amid growing concern over gasoline prices and greenhouse gases -- few vehicles have come to market. Last month, San Carlos, Calif.-based Tesla Motors began production of its Roadster, an electric vehicle that costs $100,000.

The Think City "is a mass-market vehicle," said Kleiner managing partner Ray Lane, dismissing comparisons to the Roadster. Tesla's car is being produced in relatively small numbers, with roughly 300 expected by the end of this year. "Our desire is to be selling 30-40-50,000 of these cars in a couple of years."

Think Chief Executive Jan-Olaf Willums said the company would bring test vehicles to the U.S. in the coming months.

The Think City runs on sodium batteries, but future versions could use lithium ion batteries, Willums said. The company is working with A123 Systems and EnerDel Inc., to develop the batteries, which would boost range and speed.

With most automakers focusing on hybrid technology, only a handful, including Nissan Motor Co. and Mitsubishi Motor Co., have announced plans to produce all-electric cars. Mitsubishi's MiEV is set to go on sale in Japan next year.

Ford Motor Co. was the longtime owner of Think but sold it in 2003. It was purchased by Norweigan investors two years ago, and began selling cars in Norway this year, with sales in Sweden, Denmark and Britain expected this year. The company said its annual production capacity in Europe is 10,000 vehicles.

The Think City, a two-seater that can be fitted with two additional seats for children, has a mostly plastic exterior and is 95% recyclable. Willums said a convertible was in development. "Women want to buy it immediately," he said.

ken.bensinger@latimes.com

City budget jumps over $7 billion for first time in history
Daily News
Article Last Updated: 04/21/2008 03:58:29 PM PDT
2008-2009 Los Angeles city budget The fiscal 2008-09 city budget for non-proprietary departments has surpassed the $7 billion mark for the first time in history with the general fund at about $4.48 billion and special funds at about $2.53 billion, according to the budget summary released this morning.
While the total budget has grown by 2.83 percent from fiscal 2007-08, the general fund has grown by less than one percent.

The reserve fund balance, a measure of financial strength, has been rebuilt to 4.3 percent of the general fund -- $192 million -- after falling to 3.1 percent in fiscal 2007-08 due to the downturn in the economy, ending the practice of raiding our savings account for ongoing expenses.

Despite the turmoil in the bond market, the city's bond ratings are the highest for U.S. cities with populations of more than 2 million.

The Mayor's and City Council offices are sharing in the sacrifice by taking an over 5 percent cut from fiscal 2007-08 adopted budget.

The city has established performance metrics for every city department to continuously improve every aspect of city government.

Fiscal Year 2008-09 1
Mayor Antonio R. Villaraigosa

Think about how far this spirit has taken us. In just over two centuries, we have
grown from a tiny, dusty settlement on the remote periphery of the Spanish
Empire into a thriving crossroads of global trade and commerce. Our county leads
the nation in manufacturing and start up businesses. We are the center of media,
film and television. Our ports and airports are engines driving the national
economy. We are home to some of the nation’s leading research universities.
L.A. is poised to emerge as the great global city of the 21st Century,
but our imaginations will be tested in this tough budget year.
Today, the national economy is experiencing a downturn of a magnitude unseen
in more than a decade. This crisis is acute. Despite the fact that economists predict
L.A. will fare better than the region, the state, and the nation, the national
recession is unquestionably catching Los Angeles in its wake. We face mounting
foreclosures, rising unemployment, declining revenues, and an estimated General
Fund deficit of $406 million. Moreover, the well of promised state and federal
funds is drying up at a time when local programs must respond to growing need.
Los Angeles is America’s undisputed
creative capital. This beautiful City,
perched on the Pacific Ocean, has always
drawn its strength from the boundless energy
and imagination of one of the most talented
diverse populations anywhere.

Every budget is a statement of values, and our budget asks Angelenos to
focus more deeply on our core mission as a City. First and foremost, it maintains
our commitment to investing in police and fire. It ensures the safety and
security of our neighborhoods by continuing our effort to add 1,000 police officers
in the most under-policed big city in America. It increases funding for gang intervention
and prevention, expands the number of gang reduction zones, and proposes
a fundamental realignment of the City’s anti-gang spending.
Our proposals improve the efficiency and accountability of local government;
invest in job training and workforce development; continue to tap into the
creativity of the renewable energy sector and transform L.A. into the cleanest
and greenest big City in America; rebuild our aging infrastructure, reduce traffic
congestion, and repave our streets.
Given the size and scope of these challenges, it is absolutely critical that
we join together to solve the deficit in a responsible manner. We have already
taken significant steps. Through the implementation of a series of belt-tightening
measures and continued fiscal stewardship, City leaders reduced the FY2007-08
projected year-end deficit from $155 million to under $20 million as of March
2008. The ongoing efforts from departments to reduce expenses and the willingness
of individual employees to take voluntary furlough days will ensure that this
deficit is fully addressed by year-end.
My proposed budget tackles next year’s deficit by cutting spending and shrinking
the size of City government in a manner that preserves the City’s core mission.
Closing the budget gap will affect City employees, and we are committed to do all
that we can to minimize the impact on our workers and their families. We are also
asking the people of Los Angeles to bear a share of the burden by moving the City
to full cost recovery on fees. Again, we are insisting on a fair and responsible
approach. For every dollar in new fees, we are committed to cutting a dollar and
a half in spending.
The current budget crisis should serve as an opportunity to make longneeded
changes in the way the City does business. It’s a chance for our leaders
to step up to the plate with fresh ideas, and to fulfill our pledge to voters to be
responsible stewards of the public purse. Tough budget times should clarify our
goals and objectives, not cause us to abandon them.
At a time of economic challenge, the leaders of Los Angeles must recognize the
need for new thinking in our public policy debates and for shared sacrifice across
City government. We must recall the courage and creativity of the generations of
our predecessors who overcame seemingly insurmountable odds to build this
incredible metropolis out of the dust.
This will be a multi-year challenge, requiring a multi-year effort to solve it. And we
will continue to make structural changes in the way we deliver core City services as
we move ahead.
Angelenos, this is a moment when our vision and values will be tested most
– and we must not fail to answer the call for bold, effective leadership.http://i231.photobucket.com/albums/ee192/trolltoast/villaraigosa1.jpg etopiamedia.com

Very Truly Yours,
Antonio R. Villaraigosa

Northrop wins contract to build Navy drone
The $1.16-billion drone work was also sought by Boeing and Lockheed Martin.
From Times Wire Services
April 23, 2008


Northrop Grumman Corp. won a $1.16-billion contract to build an unmanned surveillance plane to replace the Navy's aging P-3 Orion maritime patrol aircraft, the Pentagon said Tuesday.

The work, also sought by Lockheed Martin Corp. and Boeing Co., marks the latest big contract win for Northrop, which in February secured a $35-billion deal to build aerial refueling tankers for the Air Force.

Northrop's Global Hawk drone is already flown by the Air Force in Iraq and Afghanistan. The initial contract for the Navy drone runs through September 2014 and covers only the system development and demonstration phase, not production.

The unmanned Broad Area Maritime Surveillance plane will detect and track threats to the Navy's fleet.

The aircraft will operate around the clock from five bases worldwide, traveling as many as 2,000 miles and loitering for extended surveillance missions.

Analysts have estimated that, including production awards, the program will exceed $2 billion. Northrop's proposal included a total of 44 planes.

Shares of Century City-based Northrop fell $1.52, or 2.1%, to $69.56 before the announcement.

Boeing's loss is its second recent defeat by Northrop after an Air Force competition for refueling tankers. Northrop, which had never built a refueling aircraft, faced a Boeing team that had supplied them for more than half a century. Northrop won that program by offering a larger jet with more fuel capacity than Boeing.

Boeing is protesting that decision to the U.S. Government Accountability Office.

For its Navy bid, Lockheed had joined with closely held General Atomics Aeronautical Systems Inc. of San Diego, to modify the Predator drone, which has recorded more than 296,000 combat hours.LAT

^ Another slap in the face to Boeing. :lol:

Poor Seattle- I mean..Chicago :)

Poor Seattle- I mean..Chicago :)

^ Actually, that's not true. Absolutely none of Boeing's non-executive jobs are in the Chicago area. Downtown Chicago is exclusively the location of the HQ, nothing is manufactured, designed, lobbied, or engineered there.

Here are the places that would potentially suffer from any losses to Boeing's defense arm:

Facilities
On July 21, 2006, Boeing announced that it would be consolidating its Southern California locations. The Boeing facility in Anaheim will be moving to Huntington Beach, CA.[1]

Decatur, Alabama
Huntsville, Alabama (ISS, Delta)
Mesa, Arizona (AH-64)
Anaheim, California
El Segundo, California (601, 702)
Palmdale, California
Long Beach, California (C-17)
Seal Beach, California
Huntington Beach, California
Macon, Georgia
Kennedy Space Center, Florida
St. Louis, Missouri (F-15, F/A-18)
St. Charles, Missouri (Weapons)
Wichita, Kansas
Philadelphia, Pennsylvania (H-46, H-47, V-22)
El Paso, Texas
Houston, Texas
San Antonio, Texas
Puget Sound, Washington

Source (http://en.wikipedia.org/wiki/Boeing_Integrated_Defense_Systems)

^^ That was brilliant! But, what about Chicago?http://i231.photobucket.com/albums/ee192/trolltoast/p572.jpg siteselection.comWhat about this dude?

^ I'm not really sure what you're getting at.

Boeing has its headquarters & thus its corporate office functions, and nothing else, in Chicago. While losing out on some big defense contracts recently have delivered a blow to the company, they are unlikely to have any effect on the 2 hundred or so corporate jobs in Chicago other than perhaps bruising morale.

Boeing's defense division is HQ'd in St Louis, but its design/manufacturing facilities are scattered if you look at my last post. Job losses related to the loss of major contracts are much more likely to take place in California, Arizona, Texas, Alabama, etc (as listed) where the vast, vast majority of integrated defense jobs are located.

I'm not sure if you're motivated by some sort of "stick it to Chicago" kind of thing, but any loss to Boeing is stickin' it to a lot of places, including your own.

I love bruised morale, the purple kind and people in these parts are used to others taking their shit away from them, for monetary reasons mostly. Let someone else, who took from Seattle for the sake of a perceived higher profile locality, suffer some bruising of their very own. Loves it! ^^ Where you from? :)

^ I really don't see a need to take us off topic any further than I have, but if I can clarify my point I think it's very relevant to this thread. I'm not sure what sort of satisfaction you think you're deriving from hurting a company that employs far, far, far more people in Washington & California than it does in Chicago, esp considering that Chicago is highly unlikely to suffer any job reductions from its already tiny & compact office suite of 200 or so corporate executives.

All I'm saying is, if you really care about the S. Cali and Seattle area economies and the tens of thousands of people employed by Boeing in those areas, you'd probably not be celebrating if Boeing lost a defense contract.

Can you show me how many jobs that have been ripped from here by Boeing, whether headquartered in Seattle or Chicago- doesn't make any difference to me. This area has hemmoraged plenty. An actual L. A. based company, Northrup/Grumann, is about to lose another lucrative contract, because of Boeing. Don't care if that contract includes jobs where assembly takes place in Europe or Alabama. I like Boeing just a little more than Lockheed, who I consider a traitor, the way Seattle considers Boeing. Where you from?

back on topic guys, PM each other with off topic stuff.

Hollywood sees upside in economy's downturnhttp://i231.photobucket.com/albums/ee192/trolltoast/37184383.jpgSony/ColumbiaBad times seem to be good for movie attendance, and this summer's slate is full of 'event' films that may yield future franchises.
By John Horn, Los Angeles Times Staff Writer
April 30, 2008
It costs more than $50 to fill the gas tank, home values are plummeting, good jobs are hard to come by, and the dollar's so weak that even a Canadian vacation seems beyond reach.

All together, it has the makings for a wonderful summer in Hollywood.

It's not that the film business wishes ill on anyone (besides restaurant hosts assigning bad tables, at least), but the economy's loss may very much be the studios' gain. Moviegoing historically has proved more than resistant to downturns -- theater attendance actually increased during three of the last four recessions. And this year, Hollywood hopes the downturn could kindle a near record-breaking May-to-September season.

"I think we have a really good shot of this summer's [box office] matching last summer," Mark Zoradi, president of Disney's motion picture group, said in reference to 2007's record summer haul of $4.18 billion. "I think it's really going to be that big."

As previous downturns in gross domestic product have proved, popular culture -- tracing back from the Depression-era hit song "Life Is Just a Bowl of Cherries" -- can prosper when times are tough. If you're struggling to pay the bills, why not let Angelina Jolie take your worries away?

The movies-cure-all-ills formula seems to favor big-budget "event" films. Some of the most celebrated blockbusters of the last several decades -- "E.T. the Extra-Terrestrial," "Jaws" and "The Lord of the Rings: The Fellowship of the Ring" -- premiered in the midst or on the heels of a recession. In 2001, which had a recession from March to November, theater admissions climbed to $8.4 billion, from $7.7 billion in 2000, according to the Motion Picture Assn. of America.

"If there's anything that's recession-proof, it's an event picture," said Jeff Blake, chairman of worldwide marketing and distribution for Sony Pictures.

Thanks to what studio executives and theater owners categorize as a wave of shoddy spring movies -- "88 Minutes," anyone? -- movie attendance this year is down about 6% from the same time a year ago, according to the tracking firm Media by Numbers.

But when "Iron Man" starts playing Thursday night, the box office doldrums are likely to vanish. Rival studios and box office prognosticators say the comic-book adaptation could gross more than $80 million in its first weekend. "Indiana Jones and the Kingdom of the Crystal Skull," which audience surveys show has astonishingly strong interest among children, probably will sell substantially more tickets when it opens May 22.

Though there is any number of problematic movies opening before Labor Day -- "Sex and the City," "Speed Racer," "The Happening" and "Meet Dave" are frequently mentioned around Hollywood as the summer's trickiest sales -- the quantity of potential hits seems greater than in years, studio executives say.

"It doesn't seem like the summer is going to run out of gas halfway through," Sony's Blake said. "There's an event movie every weekend."

It will take a number of runaway blockbusters to top 2007's summer mark, which was largely driven by massively popular sequels to well-established franchises. Four of last season's five highest-grossing films were new installments in the "Spider-Man," "Shrek," "Pirates of the Caribbean" and "Harry Potter" series (the other monster hit was "Transformers"). No fewer than 14 sequels premiered last summer. This year, Hollywood is offering seven sequels (including new installments in "The Mummy" and "The Sisterhood of the Traveling Pants" series), as well as a host of comedies from familiar faces, including Steve Carell, Adam Sandler, Mike Myers and Ben Stiller.

Instead of more than a dozen sequels this summer, the studios will try to launch new franchises. Where Sony had a new "Spider-Man" film last summer, this year it has Will Smith in "Hancock." DreamWorks will try to approach "Shrek the Third's" returns with "King Fu Panda." In place of "The Bourne Ultimatum," Universal will release "Wanted."

"I think it's a nice thing to have fresh, new and exciting movies with franchise potential," said Peter Brown, the chairman and chief executive of AMC Entertainment, which operates nearly 4,500 North American screens. He said too many sequels can leave audiences burned out. "People feel a little disappointed -- expectations get so high, and then they feel let down."

Even if they aren't releasing as many sequels this summer, the studios have grown increasingly focused on event films, movies such as "The Chronicles of Narnia: Prince Caspian" that not only carry an inherent, often family-friendly sales hook but also wield the potential to sell as many tickets overseas as in the United States.

"The risk is that when you get [an event movie] wrong, it is a devastating blow to your financial plan," said Adam Fogelson, president of worldwide marketing and distribution for Universal Pictures. "But when you hit it right, it can literally fund the entire company."

The push toward such larger-than-life movies is partly motivated by the advent of high-definition DVD players and ear-rattling home theater systems.

"There is no question that the bar is higher now to get someone out of their house," said Rob Moore, the vice chairman of Paramount Pictures. "But if something looks compelling and people have a chance to go with their kids, the upside is higher. Last summer, the movies that people could go to with their kids did crazy business."

To help build interest among children for "Indiana Jones," whose last sequel opened in 1989, Paramount sent 65-year-old Harrison Ford and costar Shia LaBeouf to Nickelodeon's highly rated "Kids' Choice Awards" and has been buying a steady stream of advertisements on the cable channel.

If Hollywood's summer slate is to be truly successful, the movies will have to sell truckloads of tickets outside North America. Not that long ago, a hit movie might generate just a bit more sales overseas as domestically. Ten years ago, for example, "Saving Private Ryan" grossed $216.3 million in the United States and Canada and $265.3 million internationally. But last summer, "Ratatouille" doubled its local gross in foreign markets: $206.4 million domestically, $410.8 million overseas.

Part of the surge is attributable to the U.S. dollar's evaporating value: These days, one dollar buys about half a British pound and about 0.64 of a Euro.

"The international business is up significantly, and the weakness of the dollar has made the international admissions more valuable," Paramount's Moore said.

Currency exchange, said Sony's Blake, "is a great new weapon."

The weakness of the dollar is but one sign of the country's economic woes; a falloff in consumer confidence is another. But families who decide to save money by skipping their usual summer getaways might still splurge on an occasional outing to the multiplex.

"If you're going to cut back on your entertainment dollars, you're going to cut back on your much bigger-ticket items," Disney's Zoradi said.

Which means that though folks may cough up $10 for a ticket to Disney and Pixar's "Wall-E," the $1,000 Disneyland vacation may be a much tougher sell.

john.horn@latimes.com

Air Force tanker project clears panel
Dicks vows effort to block contract funding in House
By ERIC ROSENBERG
P-I WASHINGTON BUREAU

WASHINGTON -- A team of Northrop Grumman and EADS cleared a key legislative hurdle when lawmakers announced Thursday that the Senate Armed Services Committee has approved startup funding for a new fleet of Air Force tankers.

"This is great news for the tanker project," said Sen. Jeff Sessions, R-Ala., a committee member whose state stands to gain employment from the program. EADS plans to build a tanker-manufacturing facility in Mobile, Ala.

Supporters of The Boeing Co.'s losing bid to build the planes have said they will try to halt the program through congressional action.

But Sen. Carl Levin, D-Mich., chairman of the Senate committee, said Thursday that he would not support any such action before the Government Accountability Office rules in mid-June on the merits of an appeal from Boeing. Chicago-based Boeing claims that the Air Force erroneously selected the EADS team for the multibillion-dollar program.

"We are not going to prejudge the (tanker) debate," Levin told reporters. "We need the GAO to reach an independent decision on the (Boeing) appeal. Everybody ought to wait for that."

Sen. John Warner, R-Va., a senior Republican on the committee, said that any effort by Boeing supporters to eliminate tanker funding when the full Senate takes up the committee bill later this month would be "vigorously opposed."

The Air Force stunned the aerospace industry Feb. 29, by choosing a team of Airbus parent European Aeronautic Defense and Space Co. and Los Angeles-based Northrop Grumman to build a fleet of new midair refueling tankers.

The initial program is valued at around $35 billion but could grow to $100 billion if the consortium wins future Air Force orders.

Boeing's appeal to the GAO -- the investigative arm of Congress -- centers on its claim that the Air Force switched airplane size requirements, initially seeking bids for a medium-size tanker but later selecting a much larger aircraft based on the Airbus A330 commercial jet.

The Senate panel's tanker provision was included in a $542.5 billion military spending bill for next year that was approved behind closed doors.

Boeing supporters in the House hope that they will have more success in their efforts to halt the EADS tanker project.

Rep. Norm Dicks, D-Wash., said last month that the House defense appropriations subcommittee -- of which he is the vice chairman -- will intervene to halt the tanker contract.

"We are going to try to eliminate the funding" for the tanker, Dicks said, and push to "start this thing over again."

Rep. Todd Tiahrt, R-Kan., also a member of the House defense appropriations panel, said last month that "I don't think the current contract can go forward."
The Pentagon has warned Boeing supporters against trying to remove tanker money just because their favored contractor did not win.

"These are slippery slopes and dangerous precedents," said John Young, the undersecretary of defense for acquisition, technology and logistics.

"It is going to be dangerous to set aside valid source selections on a political basis," Young said. "Do we have the California delegation kill a program because the Georgia delegation won? Where does that stop?"insidesocal.com/bizwaves

^ Gosh, those people are so annoying. I wish they would get over it and stop being such immature asswipes.

ABC sees N.Y. savings too attractive to keep 'Betty' in L.A.
The production is planning to move, sources say, drawn by the state's recent huge increase in the amount of a film tax credit.
By Maria Elena Fernandez and Meg James, Los Angeles Times Staff Writers
May 7, 2008
ABC's "Ugly Betty" is about to get a make-over that has nothing to do with Betty's bushy eyebrows or shiny braces.

The production is planning to pack its designer bags and leave Los Angeles for the Big Apple, where the fictional Mode magazine where Betty works as an assistant to an emotionally needy editor is supposed to be based. Cast and crew members learned of the move at a meeting Monday, according to several people who were briefed on the situation. About two-thirds of the show's 150 crew members, including directors, set designers and carpenters, are expected to lose their jobs.

Walt Disney Co.'s ABC Studios, which produces the program, is planning to move the production to New York to take advantage of a hefty increase in the state's film tax credit. A show such as "Ugly Betty" costs about $3 million an episode to produce and could save a significant amount by tapping into the tax incentive.

ABC executives declined to comment. A studio spokeswoman would not confirm the location switch.

It was unclear Tuesday whether other established TV shows would follow suit.

Two weeks ago, New York's governor signed into law a bill that tripled the amount of the state's film tax credit. Feature films, television series, pilots, and TV movies and miniseries that complete at least 75% of their stage work at a qualified production facility are eligible for a 35% refundable tax credit.

The Empire State kicked off its "Made in NY" incentive program in 2005, and since then has seen a surge in production. In 2006, the city hosted 34,718 location shooting days, a 49% increase over the 23,321 shooting days in 2004.

"Ugly Betty" wraps filming for this season Friday and cast members were told to expect to be in New York by June 30 to begin production of the show's third season.

Although the show's pilot episode was shot in New York, ABC decided to locate the show in L.A. to save money. A Hollywood studio lot has been the show's home for the last two seasons.

On Tuesday, some actors found it difficult to concentrate on their scenes after learning that they would have to move across the country to keep their jobs, according to people close to them.

maria.elena.fernandez@

latimes.com

meg.james@latimes.com

This is the kind of thing that makes me sick. The defeatest attitude of the business climate in Southern California makes me sick. You know how to fight back, you just won't. I'll hold the rest of my language

Enjoy it while it lasts. They're not going to lure the whole film industry away from us. It's sort of like that planned mega-port in Mexico. It's just a pipe dream.

I know their m.o. They don't have to lure the entire industry to make their impact felt. Let's jump ahead to June. Hammers are poppin' at Silvercup right now. Production resumes under the watchful eye of Tina Fey, who along with 'Gossip Girl' has been practically deified in the media even thought the two are hardly that relevant. Entertainment Tonight and others will get ahold of this today and run with it, and Los Angeles will be taken down a peg, albeit a small one, since we are just talking about 'Ugly Betty'. But the show's a 'darling' and it will portend a linear trend that New York will jump all over. Then the other projects that take place in New York but are produced here will be lobbied by this new deal from New York State and we will, predictably, just sit back and watch it all leave. That's called "The Stench of Death"! Go ahead and ask Villariagosa about it. Jump ahead to various chat shows like Letterman and Leno who will undoubtably ask what the atmosphere is like in New York as opposed to the 'static' environment of a Los Angeles sound stage and step back..you won't believe the B.S! Jump ahead yet again to The Emmys and either the show or the star will win again and you will hear the shout-outs to the crew in New York and how it's so much better to be there! It's already written in stone. And whose fault is it? Not NY's, that's for fucking sure! Let's do nothing and sit back and watch it all unfold, shall we?

Sorry, that was a drunken rant. Truth, though...

Military pact awards boost prospects for Northrop, Southern Californiahttp://i231.photobucket.com/albums/ee192/trolltoast/38704056-09231438.jpgA Navy deal for an unmanned plane is the latest won by a unit of the defense contractor, the region's second-largest private employer.
By Peter Pae, Los Angeles Times Staff Writer
May 10, 2008
With a bulbous head and plank-like wings, the aircraft resembles a lumbering whale. And its seven-word, 49-letter name -- Broad Area Maritime Surveillance Unmanned Aerial System -- is a whopper.

But the award last month of a Navy contract to build the hulking, robotic patrol plane, nicknamed BAMS, could not have come at a better time for Northrop Grumman Corp. and, in particular, its military aircraft business headquartered in El Segundo.

The contract, potentially worth nearly $4 billion, marked the unit's third big military award since last fall, reversing a dry spell for Northrop. Together, they are expected to create 15,000 new jobs in a Southern California economy hammered by the housing downturn.

The nation's third-largest defense contractor, with headquarters in Century City, has more than 26,000 workers in the region and 120,000 worldwide.

"The news is surprisingly optimistic, and if you put everything together this looks fairly encouraging," said Jack Kyser, chief economist for the Los Angeles County Economic Development Corp.

Although blue-collar aircraft metal-bending work has dwindled significantly since the days when sprawling factories dotted the region, high-tech military weapons development continues to be a major economic driver for the local economy.

Southern California is still considered the nation's center for advanced electronics research and development. The biggest defense contractors have major research centers in the area, including Lockheed Martin Corp.'s top-secret "Skunk Works" in Palmdale and Boeing Co.'s facilities in Seal Beach, El Segundo and Long Beach.

Northrop also designs spy satellites in Redondo Beach and robotic planes in Rancho Bernardo in San Diego County.

With U.S. defense spending expected to grow at a faster clip this year than last, the local aerospace industry will remain a silver lining in an otherwise gloomy economy, according to a Milken Institute economic forecast released Thursday. With the Pentagon's "need to maintain, refurbish and purchase new equipment," defense purchases are expected to rise 4.3% this year, up from a 2% increase in 2007, the report said.

A key House of Representatives committee Thursday approved spending $3.9 billion to buy 15 more C-17 military cargo planes, a move that would keep Boeing's 5,500-person production line in Long Beach running through 2010.

The latest contract calls for Northrop to design and build as many as 68 of the unmanned surveillance planes, which would patrol the ocean skies looking for enemy ships and aircraft.

The plane, controlled entirely by an onboard computer, would be a modified version of the Global Hawk aircraft that the Air Force has been using for lengthy surveillance flights in Iraq and Afghanistan.

"It's an exciting time for us because we are growing," said Gary W. Ervin, president of Northrop's El Segundo-based Integrated Systems unit. As a result of winning the recent contracts, the unit "will grow significantly over the next four or five years," he said.

Flush with the new contracts, which in addition to developing the robotic patrol plane include building aerial refueling tankers and unmanned fighter jets, the unit now expects to double annual revenue over the next five years, to $10 billion.

The unit is now expected to be one of the key revenue drivers for the defense contractor, which also builds military ships and develops government computer networks and software. Northrop posted revenue of about $32 billion last year.

Joseph Nadol, a JPMorgan Chase & Co. analyst, advised investors Monday that Northrop was his top defense stock pick, citing the contract awards that "provide a solid foundation for growth."

Spearheaded by its El Segundo engineering group, Northrop beat Boeing this year for a $35-billion contract to build tankers that can refuel other aircraft in midair. The KC-45 tankers will be assembled in Mobile, Ala., and replace the Air Force's aging fleet of KC-135 aircraft.

The tanker contract is currently on hold pending a review by the Government Accountability Office after Boeing complained that the Pentagon improperly awarded the contract to Northrop. A decision is expected in late June, but most analysts expect the GAO to uphold the contract award.

Lockheed, meanwhile, is challenging the Navy contract awarded to Northrop for the unmanned planes, saying that its own proposed aircraft was less expensive. The GAO has 100 days to deny or sustain the challenge. Last year, the GAO received more than 1,411 such complaints and determined that 91 were valid.

No one has challenged Northrop's other recent major contract, awarded by the Navy last fall and potentially worth tens of billions of dollars, to develop an unmanned fighter jet that would, using its onboard computer, be able to autonomously take off and land on an aircraft carrier. The plane is being assembled in Palmdale.

As a result, local hiring is expected to be modest initially but grow as the new programs kick into gear. The tanker program alone could create 7,500 jobs in the region, Northrop said.

Those and other pending contracts could also help sustain and extend the current work the unit is doing in El Segundo, Palmdale and Rancho Bernardo, Northrop said.

About 5,000 people work at Northrop's sprawling El Segundo complex, where many assemble the fuselage for the Navy's F/A-18 fighter jet. Under the current contract, the production line would shut down around 2012. But recently the Navy said it was considering ordering more of the jets to fill what it called a "fighter gap" as older F/A-18s retire and the new F-35 jets begin flying. The move could keep the production line running for five additional years.

Northrop also assembles the fuselage section for the F-35 in Palmdale, where about 2,000 people work.

The latest contracts reverse a yearlong slump during which the unit lost several key contract competitions and sales fell nearly 10%.

"They had a dry spell for a while when they lost two or three big contracts," said Paul H. Nisbet, a longtime aerospace analyst for JSA Research Inc. "It must be their turn now."
peter.pae@latimes.com

BETTY! YOU SO UGLY!!http://i231.photobucket.com/albums/ee192/trolltoast/Arnold-747438.jpggetbig.com
Schwarzenegger urges greater tax incentives for movie and TV filming
From the Associated PressMay 10, 2008

SACRAMENTO -- Gov. Arnold Schwarzenegger said Friday that California must boost tax incentives to movie and TV studios to help keep productions from moving out of state.

He said incentive offerings by other states were luring studios away and costing California tens of thousands of jobs.

Spokesmen for the Legislature expressed support for the idea but worried about the effect of lost taxes when California is struggling with a budget deficit the governor said could reach $20 billion next year.

Schwarzenegger's comments were sparked by Walt Disney Co.'s ABC Studios plans to move production of its popular "Ugly Betty" TV series from Los Angeles to New York.

Feature film, television and commercial production in the Los Angeles area was down 23% in the first three months this year from last year, said FilmL.A. Inc., a private group advocating city film business.(It's 'cause I wrote him!)

^ Thank you for posting those two articles.

Regarding the latter; I'm sure ABC Studios' decision to move the production of Ugly Betty from LA to NYC hit a personal note with Schwarzenegger, given the fact that he's a major icon of the film industry.

Like I said, enjoy it while it lasts. :cheers:

U.S. exporters face cargo container shortage at ports
http://i231.photobucket.com/albums/ee192/trolltoast/38757037.jpg
Mel Melcon / Los Angeles Times
Trucks make their way around cargo containers at the Port of Long Beach.
The weak dollar has increased demand for American goods overseas, but a decline in imports means fewer ships are coming from Asia.
By Ronald D. White, Los Angeles Times Staff Writer
May 12, 2008
At a time when the struggling U.S. economy needs the biggest boost it can get from booming exports, companies and agricultural producers with American goods bound for overseas can't find enough empty cargo containers and have to wait weeks to get space on ships headed to Asia.

Only a few years ago, the trade bottleneck was the reverse. At U.S. harbors -- particularly the nation's biggest container complex at the twin ports of Los Angeles and Long Beach -- there were too few dockworkers to handle surging imports. Inland rail capacity to the rest of the U.S. was similarly strained.

Now, because of the container problem, U.S. exporters find themselves unable to take full advantage of the competitive edge of a weak U.S. dollar.

"We could export a good 20% more in agricultural products from this country if there was the capacity to handle it," said Peter Friedmann, general counsel for the Washington-based Agriculture Transportation Coalition, a lobbying group formed to help growers become more competitive internationally.

"People talk about how important it is to reduce the trade deficit. Well, here is one way to do it, and the opportunity is slipping away."

The container problem is being most acutely felt in the Midwest, said Friedmann and other experts. Southern California isn't suffering as much because of its ports' role as a key gateway to Asia.

Los Angeles and Long Beach moved 15.7 million containers in 2007, nearly three times as much as the No. 3 port, New York/New Jersey, and attracted many more empty containers for shipping back to Asia than any other port complex.

This year, imports through March were down 7% at Los Angeles and 11% at Long Beach, while exports were up 21% and 26%, respectively -- and the numbers of empty containers were down 28% and 25%.

"Last year, I could have called for a ship and had it by next week. Now it takes up to six weeks to book one. There just isn't enough room on the ships," said Howard Wallace, president of the Los Angeles Harbor grain terminal, where exports are up 150% this year.

Friedmann said he knew of a California dairy that could have sold 600 more containers of goods overseas, if it had been able to find cargo boxes. A beef and poultry producer in the Midwest, Friedmann said, missed out on at least $10 million in sales overseas for the same reason.

There are several reasons for the bottleneck of exports bound for Asia through the West Coast ports. The weak U.S. dollar has combined with growing Asian economies to increase the demand for U.S. goods, raising the need for containers.

But when the U.S. economy cooled and American consumers began tightening their belts, oceangoing shipping lines pulled as many as 30% of their vessels, and a commensurate number of containers, out of the routes from Asia to the West Coast. They moved them to Asia-to-Europe routes and to routes between Asian countries where the economies were more robust, said Paul Bingham, an economist for Global Insight.

Another problem was pure physics, said Asar Ashaf, head of the Washington office of the University of New Orleans' National Ports and Waterways Institute. A ship that can carry 8,000 containers of finished goods such as electronics, toys and apparel from Asia to the U.S. can't carry 8,000 containers of exports from the U.S. back to Asia.

"The exports are heavier -- grains, paper, scrap metals. The ship reaches its tonnage limit much faster, so maybe it is carrying only two-thirds as many containers of exports back to Asia," Ashaf said.

Also, the shipbuilding industry has placed far more emphasis on building container vessels than on the bulk carriers that used to dominate trade in items such as grains and scrap metal. Wallace said the competition for the limited amount of space available on bulk vessels has made using them much more expensive than container ships. Plus, Wallace said, his Asian customers prefer their agricultural goods shipped in sealed containers.

"Once they start using containers, they don't want to go back to bulk," Wallace said.

All of that has combined to make it harder for exporters to find space quickly on container vessels. Spokesman Mark Bagby said that members of Calcot, a Bakersfield-based farmer-owned cooperative with about 1,400 members, said, "We're having a little trouble finding space on the ships," even though they are exporting less.

The export problems have been compounded by a significant change in the way shipping lines view empty containers. They were once so plentiful because of the import boom and huge trade imbalance that the shipping lines "were happy to have anything in them" for the return trip to Asia, said Mike Zampa, a spokesman for APL, a subsidiary of Singapore-based Neptune Orient Lines.

Now, with fuel costs soaring and fewer containers available, Zampa and others say that exporters are going to have to pay more to make doing business with them profitable. To combat that, Zampa said, exporters are going to have to put the same effort into logistics planning that importers do on a routine basis now.

"We're telling them they have to plan ahead, try to even out their shipments, try to take advantage of times of the year when there may be more slack in the demand," Zampa said.

Exporters aren't happy with the new balance in the shipping trade.

Friedmann of the Agriculture Transportation Coalition said the fault is with the shipping lines for talking too much among themselves and not enough to their export customers. Many exporters, he said, are willing to pay more to get the empty containers they need -- if only they could get them.

"The mind-set of the shipping lines is that they serve the import cargo. That is where the money is," Friedmann said. "They just didn't see this problem coming."

ron.white@latimes.com

AEG to announce naming rights venture
The new division is on track to generate more than $250 million worth of sponsorships this year, the company says.
By Roger Vincent, Los Angeles Times Staff Writer
May 12, 2008
What's in a name?

Big money.

Just ask the owners of the Mets baseball stadium under construction in New York, who sold the naming rights to Citigroup Inc. for $400 million.

Naming rights have also been a lucrative business for AEG, the Los Angeles company that owns Staples Center, Nokia Theater and the Home Depot Center locally, and many more around the world.

Today, the company owned by billionaire developer Philip Anschutz is expected to announce a new venture to expand its emphasis on sponsorships and naming rights through a new division.

AEG's finances are private, but "sponsorship and naming rights agreements are critical components of the overall revenue of our company," said AEG President Tim Leiweke. Industry experts estimate the company is valued at more than $6 billion.

The new division that will be led by President Todd Goldstein is on track to generate more than $250 million worth of sponsorships this year, the company said. It will also manage relations with existing sponsors.

AEG has been at the center of a naming explosion that has seen corporate monikers attached to venues of all kinds from Tropicana Field in St. Petersburg, Fla., to Petco Park in San Diego.

The proliferation of business and product names has drawn mixed reactions from fans. Some critics decry the commercialization of local landmarks while others long for names they grew up with.

San Francisco voters passed an initiative to ensure that historic Candlestick Park would no longer be called Monster Park when Monster Cable Products Inc.'s rights expire at the end of the month. But that return to tradition was an exception to the rule, said David Brooks, a senior writer at industry journal Venues Today.

"We are seeing an environment now where essentially everything is for sale," Brooks said, noting that naming rights are the biggest area of revenue growth for arena operators after luxury seating.

Inside arenas there are clubs, restaurants, bars, hospitality suites -- all with the potential to be named after companies that want to reach free-spending fans.

"There is kind of a sense that naming is a little bit out of control and people make fun of it," Brooks said. "But I think fans realize it's here to stay."

AEG was founded in 2000 to help promote events at Staples Center, for which the Massachusetts-based office supply store chain Staples Inc. paid a reported $100 million to have its name on top. Since then, AEG has expanded into one of the largest event promoters and arena managers in the world with more than 15,000 employees.

Helping lead the company expansion, Leiweke said, are Chief Financial Officer Dan Beckerman, who was just awarded the additional title of chief operating officer, and former General Counsel Ted Fikre who was promoted to chief legal and development officer.

Much of AEG's growth has been through acquisitions such as last Thursday's purchase of an interest in boxer Oscar De La Hoya's Golden Boy Promotions Inc. But other growth has come from development of costly new venues such as the $2.5-billion LA Live complex next to Staples where Nokia Theatre has already been completed.

Other elements under construction there include a 54-story hotel and condominium housing a Marriott and Ritz-Carlton hotels. The steel frame is rising at the rate of a floor a week, Leiweke said. LA Live will also include broadcast studios for ESPN, nightclubs, restaurants, stores and movie theaters.

Although the company does do large scale entertainment and sports facility development, AEG's main focus is on owning and operating arenas, Leiweke said. It manages facilities for other owners in the U.S. and abroad, and just signed an agreement to operate four arenas for the city of Stockholm in Sweden.

AEG is also helping ready the basketball arena at the Beijing Olympics and will manage it after the summer games are over. "We want to be the largest manager of arenas in world," Leiweke said. "We expect we will be by the end of the year."

The company's other main focus is on providing entertainment fare for arenas. The company owns sports teams including the Los Angeles Kings and has partnerships with other providers such as Golden Boy, Mark Burnett Productions, Walt Disney Co. and 19 Entertainment Inc., which created American Idol.

The next challenge will be to weather the economic downturn, Leiweke said.

"We are prepared to see some negative impact on our business," he said. "Sponsors are going to be a little more conservative and not everyone can buy a suite or a premier seat."

roger.vincent@latimes.com

Here's my question: If AEG is such a global success, where's our AEG tower? http://easyfreesmileys.com/smileys/free-mad-smileys-286.gif (http://easyfreesmileys.com/)

Northrop Sets Date for Groundbreaking of Alabama Tanker Plant (http://losangeles.bizjournals.com/losangeles/stories/2008/05/12/daily15.html?surround=lfn)

By Lauren B. Cooperm
Birmingham Business Journal
Los Angeles Business from bizjournals

Despite major opposition to its $40 million contract to build refueling tankers, Northrop Grumman Corp. and EADS North America has set a date to break ground on its assembly plant in Mobile, Ala.

Boeing Co., which also bid on the contract to build the planes, is contesting the contract with the U.S. Air Force.
On June 28, Northrop Grumman and EADS plans to hold a ceremony to start construction on two adjoining assembly plants that will create about 1,500 jobs at Mobile's Brookley Field.

"This event underscores the fact that we are ready to get to work now," said Ronald D. Sugar, chairman and CEO of Northrop Grumman. "We need to move forward quickly to provide our men and women in uniform what the Air Force has identified as its No. 1 acquisition priority - the new refueling tankers they so desperately need."

A decision on the disputed contract is expected to come down next month from the Government Accountability Office.

Should we start laughing now?http://i231.photobucket.com/albums/ee192/trolltoast/36592249.jpg

comerica bank leases 27,000 sf in figueroa at wilshirehttp://i231.photobucket.com/albums/ee192/trolltoast/060310-063jpg.jpgNiebrugge images
by Stephen Friday on May 20, 2008
Another indication of Downtown’s increasingly dynamic office market, Comerica Bank announced today that it has signed a lease to occupy up to 27,000-square feet of commercial space inside the Figueroa at Wilshire tower, becoming a new centralized regional office for the Dallas-based financial service provider.

“The relocation is centrally positioned within major Los Angeles businesses. It is the ideal place to serve our customers and grow our business,” said David White, Southern California president for Comerica, in press released issued by the company.

“After 19 years of growth in multiple locations in the city, Comerica Bank is pleased to have one point of operation in downtown to enhance our presence in the central business district in Los Angeles.”

Comerica is now operating a new ground-floor banking center in the building, which opened last month, and will move five of the its key departments into 12th floor office space.

A grand opening event is scheduled for late summer.angelenic

Boeing cutting 750 Calif. jobs after contract lost (http://www.chicagobusiness.com/cgi-bin/news.pl?id=29532)
May 21, 2008
(AP) — Boeing Co. says it will lay off 750 Southern California employees following the loss of a lucrative satellite contract to a rival aerospace firm.

^ You seem to be completely oblivious to the fact that this is also a major blow to Boeing (losing the $40 billion contract to Northrop and subsequently having to lay off jobs).

He's talkin' about the GPS satellite dealio and, yes! I consider Lockheed to be a major traitor to the area. When choosing between Boeing and Lockheed, I choose Boeing. Between Northrop and the other two, Northrop. Seeeeeeee.......

^ You seem to be completely oblivious to the fact that this is also a major blow to Boeing (losing the $40 billion contract to Northrop and subsequently having to lay off jobs).

^ Read the article--the job losses are due to the loss of a different contract--namely a much smaller satellite contract, which Lockheed Martin won. Small contract = 750 jobs. Big contract? Who knows..

And to the mod who thinks this is "off topic", I disagree. Boeing is a major S. Cali employer even if it's not based in Cali. I just wanted to make sure that when people here raise their pom poms and cheer when Boeing doesn't win a contract, they realize who they're really cheering against.

He's talkin' about the GPS satellite dealio and, yes! I consider Lockheed to be a major traitor to the area. When choosing between Boeing and Lockheed, I choose Boeing. Between Northrop and the other two, Northrop. Seeeeeeee.......

^ I did a little Wikipedia search and for some reason I can't find any Cali roots to Lockheed. Perhaps I'm missing something. Just out of curiousity, why do you view Lockheed as a "traitor", as I've also heard you state this before?

http://i231.photobucket.com/albums/ee192/trolltoast/bb_lrrr02.jpginetres.com
You may want to do a little research on the history of Lockheed in Burbank, covering pre to post WW2 and the importance of production of aircraft during that time and how it pertains to our victory then. The "Skunk Works" is something else you can reseach, along with the production and testing of cutting edge technology developed and tested at Edwards Air Force Base in Palmdale. If you've ever seen Bugs Bunny/Loonie Tunes/Merry Melodies features as a kid, you see many mentions of Lockheed. Example: The Big Bad Wolf happens upon the cottage where he plans to capture Little Red Riding Hood in "Little Red Riding Rabbit". Granny's not there and has left a note on the front door reading "..working the swing shift at Lockheed." Bugs Bunny is a Los Angeles entity.

Chick aims to help L.A. control tourist business http://i231.photobucket.com/albums/ee192/trolltoast/basics_welcome.jpg fourseasons.comBy Rick Orlov, Staff Writer
Article Last Updated: 05/25/2008 09:21:37 PM PDT


City Controller Laura Chick has a new cause - which means someone better watch out before they get run over.

It actually is an old battle, one Chick started when she was first elected to the City Council 16 years ago and one she says she plans to pursue in her final 13 months in office.

"When I first got elected, I asked why we weren't doing more to market Los Angeles," Chick said. "I recently went to Chicago and saw what they're doing and asked myself, `Why can't we do that here?"'

She says Chicago markets the city to its own residents and opens its doors to tourists.

"We just take the tourism industry for granted because of Hollywood and the weather," Chick said. "We don't really do anything to market ourselves and take advantage of all we have here."

And, she said, it is a big business that will grow even more.

Tourism is the second-largest industry in Los Angeles and is expected to become even more important - particularly with visitors from China - in coming years.

"As China opens up, we keep hearing there are three destinations that are the most popular, San Francisco, Los Angeles and Seattle - and I don't think we're ready," Chick said.

"We should have multilingual greeters at the airport. "We should offer tours of our neighborhoods. We should let people know about all the festivals going on every weekend in this city.

"Here we are the entertainment capital of the world, with all the spin

doctors, image makers and market gurus and we can't figure out how to meet these challenges."
Chick has begun talking with aides to Mayor Antonio Villaraigosa, the city's Cultural Affairs Department and L.A. Inc. to brainstorm some of her ideas.

But Chick cautioned that if she is dissatisfied with progress, she is prepared to launch a full-scale assault to change city attitudes.

Villaraigosa and the folks at the Metropolitan Transportation Authority are also trying to gauge public attitudes.

A new survey is being conducted to determine public support for a sales tax to pay for the MTA's ambitious plans for everything from a "subway to the sea" to the Foothill Gold Line extension.

The last survey showed about 60percent of respondents backed the tax - still short of the two-thirds necessary but closer than many had expected.

But with the economy in the tank and the state looking to have its own sales tax measure on the November ballot, the mayor and others want to take another look at public sentiment.

One of the things believed to be in their favor is the high cost of gasoline that has forced many to use the already overcrowded bus system and experience firsthand the need for improvements.

But standing in the way are some basic political considerations by the mayor. The best-case scenario for him - heading into his re-election - is to be able to tout a victory on a transit issue.

In the worst-case scenario, he would have to say - at the very least - he tried.

The MTA has until August to decide whether to place a measure on the November ballot.

California Democrats might be divided over whether to back Sen. Hillary Clinton or Sen. Barack Obama for president, but they are united in the selection of Sen. Dianne Feinstein to head the delegation going to Denver for the Democratic National Convention.

Feinstein, who has endorsed Clinton, will be in charge of herding the 71 superdelegates and the 441 other delegates - 204 for Clinton, 166 for Obama - at the convention.

"This convention is critical," Feinstein said. "We will work together to ensure that Democrats win back the White House."

The Obama camp has yet to designate a chairperson for the California delegation. It has a number of top elected officials including Assembly Speaker Karen Bass and Reps. Howard Berman and Henry Waxman.

And being Democrats, the party wanted to make sure it had a diverse group of members and set affirmative-action goals.

Of those going to the convention, 11.1percent are under the age of 30, 25.9percent are Latino, 17.5percent are African-American, 8.6percent are Asian Pacific Islander and 2.5percent are American Indian. Also, 8.2 percent are disabled and 11.8 percent are from the gay, lesbian and transgender community.

David Fleming, the San Fernando Valley's go-to guy, was roasted last week as part of an event for Valley Presbyterian Hospital with 450 of his closest friends.

Villaraigosa was one of those who spoke and, after singing some Motown for the crowd, he noted that Fleming - a Republican - had crossed party lines to endorse two Democrats for mayor: But neither of them was Villaraigosa.

"So, while Dave thought it was an honor when I appointed him to the MTA board, it was really revenge," Villaraigosa said.

Emcee Jason Alexander pointed out how odd it was that Fleming was being honored for his work on MTA when the city's traffic is the worst in the nation.

He also noted that Fleming was one of the leaders of the failed Valley secession movement and now chairs the Los Angeles Area Chamber of Commerce as the city faces its worst economy in years.

"Do us a favor," Alexander implored. "Stop getting involved in the city's business."Daily News

America's New Suburban Model — The American suburb is officially 50 years old this summer. http://i231.photobucket.com/albums/ee192/trolltoast/twinplattt.jpg The Economist takes a look at the suburb in all its sprawly glory, noting that suburbs now hold more people than cities and the countryside combined. And even more startling, they're diverse with blacks, Hispanics, Asians and gays swarming around nearly every block. "As the suburbs become more mixed, some inner-city areas are turning less so. Los Angeles, which markets itself as the city “where the world comes together”, and New York (“the world's second home”) both added whites and lost blacks between 2000 and 2006. So many blacks moved out of Los Angeles that, were the exodus to continue unabated, they would disappear from the city around 2050. Manhattan and San Francisco lost Hispanics as well as blacks, which is remarkable given that group's speedy growth in the country as a whole. Meanwhile, the world came together on their fringes." [The Economist]

^ interesting. Thanks Milky. :cheers:

L.A. Ad Numbers Still in Big Apple’s Shadow, but... (http://www.labusinessjournal.com/article.asp?aID=49340296.8614666.1635374.3674246.1722434.227&page=1)

By STACY BURT
Los Angeles Business Journal Staff
June 2, 2008

L.A. may have almost as many advertising agencies as the Big Apple. But New York shops bring in the big bucks.

The latest available economic census data, from 2002, showed New York advertising and public relations agencies took in almost double the revenue that Los Angeles firms generated.

The figures, just as Manhattan’s skyscrapers do, may tower over L.A.’s, but that’s no cause for dismay, said Mike Sheldon, president of Deutsch LA.

“Twenty years ago, I would guess we were a third the size of New York, so now being half of New York is huge,” Sheldon said. “Deutsch LA didn’t exist 11 years ago. Today, it’s a $1.4 billion company, and eight of our nine accounts are in Los Angeles.”

Among Deutsch’s local accounts are DirecTV, GM OnStar and Sony Corp.

“I don’t think you need any more proof of vitality for the market than that,” he said.

New York’s work force in the advertising and public relations sector is also more substantial than L.A.’s.

A 2007 Bureau of Labor Statistics report showed 26,900 advertising account executives and ad managers in New York, compared with 6,600 in Los Angeles.

And New York ad execs make more money than their Los Angeles counterparts.

A New York advertising and promotion manager makes an average $121,600 annually, compared with $83,600 in Los Angeles.

“The cost of living in Los Angeles is 150 percent the U.S. Average. In New York, it’s 218 percent. So, on a relative basis, we pay well,” Sheldon said.

Nationwide, the outlook seems good for careers in advertising and public relations, according to the labor department’s 2008-2009 “Career Guide to Industries.” Employment ad-PR sector is projected to grow 14 percent by 2016.

Sheldon is confident the advertising industry will continue its upward trend. Deutsch has added three clients over the past year: Saturn, Sony and Dr. Pepper.

Rita Tateel, president of the L.A.-area chapter of the Public Relations Society of America, predicts a healthy future for PR, thanks to emerging trends.

“New media platforms are changing the way companies do business,” Tateel said.

Chicago is not far behind L.A. in revenues and work force, thanks to its high concentration of food and pharmaceutical companies, said Jerry Swerling, director of PR studies for the Annenberg School for Communication at USC.

But New York is still the titan, because of its role as media capital.

“The benefit of doing PR in New York versus other cities is that you can physically meet with the national media,” said Nick Ragone, senior vice president and director of client development for Ketchum in New York. “My guess is the same thing holds true for L.A. when it comes to the entertainment media. Proximity is everything.”

And how do they sell it? We know it's commercial television (which is basically what we're talking about) but you can't have NOTHING but television commercials. There has to be a reason for New York advertising to exist. I'm going to assume that most of the film or tape being run for commercial advertising is being produced in Los Angeles, 'cause that's what we specialize in. I'm sure they produce in other places around the world too, but commercial television, other than the broadcast news, is entertainment television. Madison Avenue bids for time within the broadcast 'show', looking for the broadest possible audience for their product. They pay the networks for that time. The networks pay network or independent studios for artistic content for their respective time slots. Los Angeles has the overwhelming bulk of the artistic content. The networks, from NBC to MTV have gotten to where they are today, from L. A. based content. They don't make their money from New York based broadcast news. Publishing that uses advertisement is usually of the sports or entertainment variety. The 'entertainment' is ours. So you can safely say that New York's Madison Avenue is indebted to our entertainment content and culture. Where would they be without it? The 1950's :)

Gay marriage may be a gift to California's economy
http://i231.photobucket.com/albums/ee192/trolltoast/39511119.jpg
Susan Goldman / Biggayweddings.com
Heidi Post, left, and Stacy Lacaillade pose with their dog Sampson in preparation for their wedding in Rancho Palos Verdes, Calif. By some estimates, weddings and commitment ceremonies for same-sex couples generate $1 billion a year in revenue.
Business is up for hotels, bakers and photographers as same-sex couples prepare to wed.
By Alana Semuels, Los Angeles Times Staff Writer
June 2, 2008
Forget economic stimulus checks. Same-sex marriages may give California just the financial boost it needs.

Wedding planners, bakers and hotels began booking more business almost immediately after the state Supreme Court's May 15 decision overturning a ban on gay marriage. Citing pent-up demand, one UCLA study projects that same-sex unions could provide a $370-million shot in the arm to the state economy over the next three years.

"Being in West Hollywood, we've been inundated," said Tom Rosa, owner of the Cake and Art bakery on Santa Monica Boulevard. "After the ruling, the phone really picked up."

Rosa said couples who had waited for decades to legally marry were splurging on 5-foot-tall confections shaped like carousels and cakes featuring handcrafted birds of paradise.

Mike Standifer and Marc Hammer were already planning a commitment ceremony for October, but when the court ruling came out, they decided to throw an even bigger bash and get married.

They plan on spending about $25,000, which includes renovations on their Hollywood home so they can have the party in their backyard. The new price tag includes rings, their suits and those of their wedding party, and the cost of flying in Standifer's priest from Tennessee -- all costs they wouldn't have incurred if they were just having a party.

"The wedding dynamic in the last two weeks changed everything," Standifer said. The wedding businesses he's worked with so far seem thrilled. "I think it's because the economy's not so great, but the vendors have been treating us like royalty," he said.

By some estimates, weddings and commitment ceremonies for same-sex couples generate $1 billion a year in revenue.

PlanetOut, a media and entertainment company that conducts surveys about gay and lesbian consumers, says gay consumers earn 20% more than their straight counterparts, on average, and spend about 10% more on nuptials.

The court ruling comes at a good time for many small wedding-related businesses, which are finding that their traditional customers are spending less on weddings because of the economy.

"Brides are being more frugal with things they don't see as a priority," said Richard Markel, president and director of the Assn. for Wedding Professionals International.

Things really slowed down in February, said Michael Willms, owner of Entertainment Design Events, an event planning company that's done big bashes such as a wedding for actress Lindsay Price, who stars in the NBC show "Lipstick Jungle."

But they've picked up now. The day after the ruling, Willms booked a $55,000 same-sex wedding.

"These weddings will be much more lavish," he said. "Everybody's been waiting for it to be legal to throw the big party."

California counties can begin issuing marriage licenses to same-sex couples beginning June 17.

M.V. Lee Badgett, research director at the Williams Institute on Sexual Orientation Law and Public Policy at the UCLA School of Law, estimates that gay weddings could provide a $370-million boost to the state economy.

That estimate presumes that about half of California's 92,000 same-sex couples will tie the knot, multiplied by $8,040, the amount of money from savings accounts that Badgett figures same-sex couples will use on their weddings.

Event planners, restaurants, tent and chair rental companies, florists, caterers and hotels should all get a piece of that pie, she said.

"There's an opportunity to get a big wedding windfall," she said.

There are, of course, some caveats. No one can accurately project how many gay couples will spend thousands on weddings. And the legality of gay weddings is potentially short-lived, as officials verify petition signatures for a proposed Nov. 4 ballot initiative that would prohibit same-sex marriage.
Still, wedding-related companies that traditionally market to the gay and lesbian community are finding business is picking up.

Mitch Goldstone, president of Irvine-based photo service ScanMyPhotos.com, said he had gotten more than 300 requests for wedding invitations with photos on them since the court ruling.

"I guess people are still concerned about dealing with unsympathetic local photo labs," he said.

Rosa, the baker, said a lesbian couple came to him for their cake after a bakery in San Bernardino said it was booked for the summer and couldn't make their wedding cake when a clerk saw the two women together.

Other businesses are trying to capture the attention of gay and lesbian couples.

Susan Goldman, a wedding photographer, registered the domain name biggayweddings.com a month ago so she could market her services to same-sex couples. The Ramada hotel in West Hollywood is promoting a honeymoon special, and the West Hollywood Marketing & Visitors Bureau is launching an ad in a magazine for the gay community, selling West Hollywood as a good place for weddings and honeymoons.

The bump in advertising targeted at same-sex couples is good for publications. Bill LaPointe, publisher of the Orange County and Long Beach Blade, anticipates a 10% to 15% increase in advertising from wedding vendors. The Blade caters to gay, lesbian and transgender readers.

Macy's published a full-page ad for its wedding and gift registry in the Los Angeles Times and San Francisco Chronicle on Wednesday, captioned "First comes love. Then comes marriage. And now it's a milestone every couple in California can celebrate."

Same-sex couples can obtain a marriage license in California whether or not they live in the state. That means hotels and airlines might see business from same-sex couples and their guests flying to California to marry.

"It will be the only place where couples from any state can be married legally," said Michael C. Green, president of the Palm Springs Hospitality Assn. and owner of the Triangle Inn, a Palm Springs hotel catering to gay men. That's a boon to places like Palm Springs, which is a popular gay resort destination.

"Our city has been barraged with phone calls from folks who want to come visit and find out how quickly we'll be able to issue licenses," he said.

Sue Jennings and the Rev. Cindi Love, executive director of the gay-oriented Metropolitan Community Churches, live in Texas but will fly to Los Angeles to get married this month. They're planning on spending about $5,000 on a dinner for their guests, flowers, a photographer and clothes for the wedding, even if it means a big credit card bill.

"We've been together 28 years," Love said. "We want to have a ceremony and that acknowledgment of one another."

alana.semuels@latimes.com
LATimes

^ It'll be interesting to see if this accounts for any sort of population growth.

I would imagine so. In addition, it will be drawing a lot of couples with a high level of disposable income... which is good for the economy.

What Makes an ‘L.A.’ Ad? (http://www.labusinessjournal.com/article.asp?aID=27225647.6971703.1635322.423225.5663655.360&aID2=125785)

By BRETT SPORICH
Los Angeles Business Journal Staff
June 2, 2008

When a Chicago ad agency handled the Washington Mutual advertising account, TV spots focused on the competition as portrayed by a group of unhelpful, greedy bankers wearing black suits in wood-paneled offices.

When the account moved to TBWA\Chiat\Day in Los Angeles, the noted agency developed the “WooHoo” campaign for WaMu. Ads showed people learning about the bank’s services, which inspired them to fantasize about rolling on the ground with puppies or racing down the road in a high-speed car. All done in bright, bright colors under sunlit skies.

“Once we get a hold of the account, it’s all optimistic,” said Brett Craig, creative director of TBWA\Chiat\Day. “Now, is that because of L.A.? I don’t know, but it’s interesting that we decided to talk about what’s good about the bank versus what’s negative about all the other banks.”

The difference in those ad campaigns shows what makes L.A. ads distinctive from those produced elsewhere. L.A. ads tend to be brighter, bolder, funnier and more optimistic. If Madison Avenue is famous for selling soap, Los Angeles is famous for selling dreams.

The beach, mountains or desert serve as a backdrop, sometimes with a celebrity appearance. But advertising and public relations professionals don’t just use the L.A. look to sell products to the rest of the world. The ads are infused with the city’s dreamy essence, which has seeped into the unconscious of those who create the ads.

“When you’re living in an environment of fantasy like we are here in L.A., you can’t help but draw from it,” said Howie Cohen of the Phelps Group.

Before coming to Los Angeles about 20 years ago, Cohen worked in the advertising business on Madison Avenue, where he coined phrases like “I can’t believe that I ate the whole thing” for Alka-Seltzer.


Liberating Experience

Cohen said that moving to Los Angeles was a liberating experience.

“Out here people say ‘Have a nice day’ and watch the sun go down at the beach,” he said. “It’s just a much more positive environment than New York or Chicago. And that is reflected in the type of messages that are communicated to consumers.”

The environment has also turned Los Angeles into the prime mover in the world of car commercials.

“New Yorkers can’t relate to our lifestyle,” said Russel Wohlwerth, principal at Los Angeles-based marketing consulting firm Ark Advisors. “In New York, you use the car on weekends. Here, it’s your life. We understand what a car means to a person, and the rest of the country looks to Southern California for car culture, whether it’s design, aftermarket parts or advertising.”

L.A. advertising is linked to the city’s longtime reputation as a trend-setting spot.

“You can be cool in New York or Chicago, but L.A. is where cool is created,” said Michael Levine, founder and chief executive of Levine Communications Office, a prominent PR firm.

The L.A. lifestyle and its new-agey ways led to the idea of how consumers “feel” about a product moving into the forefront.

“Marketing is a much more emotional experience than it was when Madison Avenue was the center of the advertising universe,” said Eric Hirshberg, creative director at Deutsch LA.

Ad campaigns for packed goods such as detergent, toothpaste and toilet paper have traditionally been very rational, selling the benefits of the product rather than trying to make an emotional connection, said Hirshberg, who has worked on accounts for GM, Expedia and Old Navy, among others.

“Los Angeles and, to a greater extent Hollywood, have changed all of that,” he said. “Now you see even the packaged goods business making emotional connections in order to get the attention of consumers.”

Deutsch LA was responsible for making the “Happy Cow” television spots that feature cow conversations, ending with the tagline: “Great cheese comes from happy cows. Happy cows come from California.”

Hirshberg said that the ads were originally designed to run only in California, but several years into the campaign, the ads began to slowly make their way into other Western states.

The Happy Cows were introduced nationally, when the spots aired on leading cable stations, including A&E, TLC, Animal Planet, Food Network, USA, Lifetime and HGTV. The ads have appeared on network TV, as well, including a CBS Super Bowl spot.

The ads are so distinctive that 80 percent of American women recognize the cows, according to the client, the California Milk Advisory Board.


Show Biz Scene

Because the city is the stage for the entertainment world, the media carries the message more often than it might elsewhere. That’s where public relations agencies cash in.

Los Angeles also has a distinct niche in the public relations industry.

“If you’re going to be in the PR business in Los Angeles, you have to be a part of the entertainment industry,” said Jerry Swerling, professor and director of PR studies at USC’s Annenberg School for Communication.

Agencies that focus on entertainment usually specialize in one of three main areas: events, press coverage or crisis management. There are a few PR agencies that are multifaceted.

MPRM Public Relations is one of the most notable local firms in the L.A.-centric domain of film promotions.

The agency frequently handles the flow and pacing of foot traffic along red carpets at numerous film festivals throughout the world. As celebrities arrive in their limos, a small cadre of MPRM handlers wearing headsets chatter in whispered tones, orchestrating the interaction between stars and the media.

The agency also manage press events for new movie releases, inviting television, radio and print reporters to meet with a film’s lead actors, the director and producers for a day of rapid-fire interviews, usually in several rooms of a swank hotel or resort.

And sometimes the companies have to manage the “buzz” or gossip that can make or break a film or a celebrity. That can be a daunting task when news of a starlet’s breakdown appears around the world, on cable TV and the Internet within minutes.

“Celebrity has gone global,” said Rachel McCallister, co-founder and president of MPRM. “We are in the throes of a major sea change and Los Angeles is at the center of it all. The digital age has changed everything. The audience has moved online.”

Beyond the obvious connection with the entertainment industry, Los Angeles public relations firms work to keep a company’s message on target across several media, from radio to TV and from print to the Internet.

“Public relations is much less corporate and tends to be handled by smaller agencies or even individuals,” said Swerling of USC. “That makes them better able to adapt to changing technologies.”


Environmental Issue

It’s no question that the environment defines the style of public relations and advertising in Los Angeles. The same goes for other cities.

“Look at the comedy that comes out of New York,” said Craig of TBWA/Chiat/Day. “It has an abrupt, grating, dark humor. I don’t see that humor on the West Coast.”

“The stuff in New York is edgy, but dark,” said Russel Wohlwerth of Ark Advisors. “They’re into their urban environment. We have sunshine and palm trees; they have concrete.”

The creative people in the world of advertising bring the sights and sounds of their environment into work every day, said David Smith, executive director at RPA Inc., the largest independent ad agency in Los Angeles.

“I think a lot of advertising is driven by the city and the environment, from the weather to the traffic to home prices,” Smith said. “Minneapolis, for example, still has a style of advertising. And it’s very thoughtful, very intelligent. They craft their print to an amazing degree, every word is chosen carefully and the designs are worked over. Why? Because it’s cold outside. So they stay in and focus. L.A. guys look for a colorful visual. And it shows.

“We encourage all our folks to get out of the shop,” Smith continued. “Ideas come from the life you live, the world you explore and the activities you pursue on weekends and after hours. So there’s an obvious reason why L.A. has a sunnier, more optimistic attitude in the work.”


– Staff reporter Joel Russell contributed to this article.

I CRY. I CRY, I DO!!

California's Overseas Tourism Returns to Pre-9/11 Levels (http://losangeles.bizjournals.com/losangeles/stories/2008/06/02/daily13.html?surround=lfn)

By Mark Anderson of the Sacramento Business Journal
Los Angeles Business from bizjournals
June 3, 2008

For the first time since the terrorist attacks of Sept. 11, California attracted more than 5 million overseas travelers, according to a report by the U.S. Office of Travel and Tourism Industries released Tuesday.

About 5.2 million overseas travelers visited the state in 2007, a 12.4 percent increase from 4.6 million in 2006.

California's market share of the total U.S. overseas travel inched up from 21.3 percent to 21.7 percent.

All of California's top overseas markets increased.

German travelers to the Golden State saw the largest gain, up 33.6 percent, from 241,000 to 322,000. French visitors to California rose 27.4 percent, from 186,000 to 237,000. Travel from Italy was 124,000, up 19.2 percent from 104,000 in 2006. Visitors from Australia increased 16.4 percent, from 286,000 to 333,000. Visits from China improved 15.2 percent, from 197,000 to 227,000. Japanese tourism increased 4.5 percent to 675,000 in 2007, up from 646,000 the year earlier.

Visits from the United Kingdom were up only 1.7 percent, but they started from a much higher basis. About 765,000 visitors came from the UK, up from 752,000 visits in 2006.

The incoming travel was helped by favorable exchange rates and increasing airline capacity, said Caroline Beteta, chief executive officer of the California Travel and Tourism Commission. The commission estimates the economic impact of international tourism to the state at $16.7 billion.

The California Travel & Tourism spent more than $20 million last year to attract international travelers.

BrightSource's novel solar thermal power concept for California heats up http://i231.photobucket.com/albums/ee192/trolltoast/solar1.jpg evhotspotThe company's plan for what it calls the world's 'highest-performing, lowest-cost' sun-energy system is being tested in Israel.
By Richard Boudreaux, Los Angeles Times Staff Writer
June 13, 2008 DIMONA, ISRAEL -- On the scorched floor of Israel's Negev Desert blooms a field of 1,640 robotic mirrors that behave like sunflowers.

Slightly larger than pingpong tables and guided by a computer, they turn imperceptibly to follow the sun and focus its rays on the pinnacle of a 200-foot tower, where a water boiler will soon start producing high-pressure steam.

This futuristic assembly is Arnold Goldman's scale model and testing ground for five larger solar fields his company plans to build in the Mojave Desert to supply up to 900 megawatts of clean energy to California in the next decade.

Goldman is a UCLA- and USC-schooled Israeli entrepreneur who built the world's leading solar thermal power company, Luz International, in the 1980s, then watched it go bankrupt in 1991 as oil prices dropped and California decided not to renew property tax credits for solar producers.

Now he's a player again, and his comeback illustrates the extent to which solar thermal power is regaining favor with policymakers and investors.

His new company, Oakland-based BrightSource Energy Inc., signed a power-buying agreement with Pacific Gas & Electric in April; it is believed to be the largest in the history of solar power and would produce enough electricity to power 540,000 homes each year.

In May, the company raised $115 million from a high-profile group of investors including Google.org, the philanthropic arm of Google Inc., and BP Alternative Energy.

Like other clean-energy entrepreneurs, Goldman has benefited from rising oil prices and an array of government policies aimed at reducing fossil fuel consumption and staving off global warming.

But the 65-year-old engineer and his Israel-based design team have a unique selling point: a technology radically different from what he developed in the 1980s and other solar power producers imitated.

"This is the highest-performing, lowest-cost solar thermal energy system in the world today," Goldman told 550 guests, including investors and potential suppliers, at Thursday's inauguration of his pilot solar field in Dimona, Israel.

The 1980s system used long troughs of curved mirrors, guided by computers, to heat synthetic oil passing through vacuum-sealed tubes to 735 degrees. The oil heated water to produce steam and run an electric turbine. Goldman's company built nine solar power stations using that system in the Mojave Desert from 1984 to 1990. They still operate, producing 350 megawatts of power.

The new technology will employ several "power towers" at each commercial plant, starting with a 100-megawatt plant the company expects to start building next year on the Ivanpah dry-lake bed. An array of hundreds of mirrors known as heliostats will reflect sunlight onto a boiler atop each tower, and the resulting steam will power a turbine.

BrightSource executives say the power-tower technology is more efficient in several ways: The heliostats are cheaper to build and operate. They heat water directly, with no need for oil. And they achieve a higher concentration of sunlight, higher temperatures (up to 1,000 degrees Fahrenheit) and higher steam pressure.

That should make solar electricity competitive in price with that produced by gas-powered turbines as long as Congress prolongs the tax breaks for solar producers, said John Woolard, president of BrightSource.

The new technology, however, has yet to be tested on a large scale. The pilot field here is expected to start producing steam next month, serving as a proving ground for BrightSource as it tries to lure investors in the California plants.

Justin Adams, venture business unit leader at BP Alternative Energy, says BrightSource faces several hurdles in making its technology work.

"They have to show they can manage steam at such high pressure 60 meters above the ground," Adams said. "They have to make sure everything is minutely controlled in terms of focusing all those mirrors, and they have to do this over a period of years without major outages."

Thursday's ceremony was sweet vindication for Goldman, a slight, bearded man who said he was personally shattered by the failure of his first solar venture. He had started Luz as an Israeli firm after moving to Jerusalem from Los Angeles in 1977 and saw solar power as a way of saving the world.

The bankruptcy of Luz International, the L.A.-based company he set up to build the early California plants, destroyed the Israeli subsidiary. Goldman drifted into other ventures. In an interview this week, he said the 1997 Kyoto Protocol on climate change let him dream again that solar power could produce most of America's electricity.

The protocol, which requires a drop in greenhouse gas emissions, took effect in 2005. Although the United States has not ratified it, Goldman said the push for clean energy elsewhere, especially in Europe, had an influence in California; the state now requires that publicly owned utilities get 20% of their power from renewable sources by 2013.

Goldman began reassembling his best Israeli engineers in 2004. Like a Hollywood sequel, he named the new venture Luz II and founded BrightSource as its parent company to seek California contracts.

The company secured its first major infusion of venture capital in 2006 from VantagePoint Venture Partners, which remains BrightSource's largest equity holder.

"The idea of coming back together to finish what we started was electrifying," Goldman said.

boudreaux@latimes.com LATimes

Survey Reveals Los Angeles and San Diego Commercial Real Estate Markets Are Moving Past the Credit Crisis
LOS ANGELES--(BUSINESS WIRE)--Some office space markets in California are holding their own, according to the latest Allen Matkins / UCLA Commercial Real Estate Survey. The survey, conducted for the third time over the past two years, polled panelists in Los Angeles, San Diego, and Orange County, and for the first time, San Francisco. Results of the survey reveal that in Los Angeles and San Diego, there was a sense that while credit conditions were going to remain tight for the near term, the credit crunch was starting to lessen. In Orange County and San Francisco, the panels believed the opposite it true.

“The Allen Matkins / UCLA Forecast Survey looks forward to market conditions in 2011 and asks the regional panels for their views of changes in supply and market conditions. What is interesting about this survey is that by looking beyond the near term it picks up the impact of today’s economic conditions on longer run market conditions,” said Jerry Nickelsburg, economist, UCLA Anderson Forecast and author of the survey results summary. “In the case of San Francisco there appears to be a difference of opinion between the panel’s view and the economic fundamentals from our forecasting models. As this unfolds, some interesting investment opportunities could develop.”

Los Angeles

The panel does not believe the Los Angeles market will tighten between today and 2011. The survey results imply an average vacancy rate in Los Angeles at levels lower than experienced in the last 20 years, and rental rates consistent with a stable future evolution of market fundamentals. Today’s market represents a healthy office space market and with new supply expected to come on the market over the next three years at a rate just about equal to the expected increase in demand - the market will remain healthy.

Business Wire

Zurich Expands Los Angeles Presence with Downtown Office (http://losangeles.bizjournals.com/losangeles/stories/2008/06/09/daily30.html?surround=lfn)

Los Angeles Business from bizjournals
June 12, 2008

Financial services giant Zurich has opened a new office in downtown Los Angeles for its its North American commercial business divisions.

The office is located at 700 South Flower Street. The company also has an office in Glendale.

According to a statement from the company, the office was opened in order to give customers better access to agents and brokers.

"Our goal is that the companies we do business with always feel we value and respect their needs. If that means putting our people closer to where they operate, we are committed to serving our industry in the manner that best suits our distributors and customers," Bob Rheel, Zurich's head of field operations, said in the statement.

Zurich is an insurance-based financial services provider with a global network of subsidiaries and offices. In North America, Zurich is a leading commercial property-casualty insurance provider.