700-mile high-speed rail plan zipping along
This story appeared in the Antelope Valley Press on Tuesday, April 10, 2007.
PALMDALE - Despite declining support from Gov. Arnold Schwarzenegger and a questionable financial future, plans for a high-speed rail line connecting Los Angeles and San Francisco are continuing.
Area residents may have their say on issues they would like to see studied in the environmental impact report for the rail line between Los Angeles and Palmdale during a public scoping meeting on the project Thursday.
Twin meetings will run from 3 p.m. to 5 p.m. and 6 p.m. to 8 p.m. at the Palmdale City Council Chambers, 38300 Sierra Highway, in the Palmdale Civic Center.
Studies on the Los Angeles-to-Palmdale segment and on other segments of the 700-mile-long route will include preliminary engineering designs and assessments of the environmental effects of construction, maintenance and operation of the proposed rail line.
An environmental impact report and study were completed for the entire route in 2005 as the first phase of environmental review for the project. The route between Los Angeles and Bakersfield, with a stop in Palmdale, was selected during this process after much debate.
Project-level environmental studies of the individual rail line segments are the second phase of the review process.
The proposed Antelope Valley alignment roughly would follow Highway 58 from Bakersfield to Mojave, then would run south along the Union Pacific railroad tracks through Lancaster, Palmdale and Soledad Canyon. A map released by high-speed rail officials indicted they are studying the area around Soledad Canyon for alternate routes. Copies of the notices of preparation and notices of intent regarding the state high-speed rail's Palmdale-Los Angeles route environmental study may be viewed online at www.cahighspeedrail.ca.gov.
For those unable to attend the scoping meeting in person, comments may be sent to Dan Leavitt, deputy director of the California High-Speed Rail Authority, Los Angeles-Palmdale Segment, 925 L St., Suite 1425, Sacramento, CA 95814.
Comments also may be sent via e-mail to comments@hsr.ca.gov, with the subject line of "Palmdale-Los Angeles."
Public comment will be accepted until April 27.
For more details, call (877) 724-5422.
This preliminary process continues as funding support for the ambitious statewide project dwindles.
The California High Speed Rail Authority was created in 1996 to direct efforts to establish a rail line that could whisk riders between Northern and Southern California in a matter of just more than two hours.
Legislation passed last year requires a $10 billion bond measure to fund the rail line to go before voters in November 2008. However, the governor since has dropped his support for the bond, which already was moved back two years to accommodate his own transportation bond measure in November 2006.
Legislation would be required to take the bond measure from the 2008 ballot.
The state's high-speed rail authority will continue to receive funding, however, to further develop the plan so it can progress if other funding is found.
Several plans also have been discussed relating to a regional high-speed rail system, including a joint-powers authority of more than a dozen cities - including Palmdale - called the Orangeline Development Authority. The Orangeline plan calls for a 100-mile route from Orange County to Palmdale using magnetic levitation technology.
The record-setting 357-mph run of France's high-speed rail last week also may reinvigorate some interest and support for the California project.
A delegation of state lawmakers was on hand for the record run during a visit to examine France's system.
By ALLISON GATLIN
Valley Press Staff Writer
agatlin@avpress.com
Wednesday, April 11, 2007
Developer to build seven-story Embassy Suites hotel in Valley
Developer to build seven-story Embassy Suites hotel in Valley
This story appeared in the Antelope Valley Press on Friday, March 16, 2007.
PALMDALE - An Indianapolis-based hotel developer is planning to erect a seven-story, 150-room Embassy Suites just west of the Antelope Valley Freeway, possibly in conjunction with a city-operated conference center.
Bharat Patel, co-founder of Sun Development & Management Corp., said he selected Palmdale for his company’s first Southern California hotel project because of the Antelope Valley’s need for such a facility.
“If you look at the Palmdale-Lancaster area, you see only one full-service (hotel) that is maybe 20 or 30 years old, and it doesn’t fill the need that exists today,” Patel said. “If you look at … what is predicted for five years from today or seven years from today, you need a full-service hotel that would be part of the economic infrastructure,” he said.
Planned on Avenue P-4 between Fifth Street West and Trade Center Drive, south of the Mulligan Family Fun Center, the hotel would serve business travelers during the week and vacationing families on weekends, Patel said.
At seven stories, the all-suites hotel would be the tallest building in the Antelope Valley. It is proposed to contain a restaurant, a lounge, a coffee bar, a computer connection room, an exercise room, a pool and spa among its many amenities, said Danny Roberts, Palmdale’s assistant executive director of redevelopment.
Although construction of the hotel presents the city with an opportunity to develop a conference center, there has been no formal commitment for such a project, Roberts said.
If the City Council makes such a commitment in the next several months, things could change, Roberts said.
If built by the city, the conference center would need a full-service hotel nearby, but the hotel would not necessarily need the conference center to be successful, Roberts said.
To encourage city officials to build an adjoining conference center, Roberts said, Patel had his architect draw a picture of a matching hotel and conference center connected by a covered walkway and sharing a parking lot and tree-lined entry.
The site for the project was chosen in part because of its visibility from the freeway, said Gene Fong, the architect for the development.
The hotel and conference center were planned to complement each other and enhance access for motorists and pedestrians, Fong said.
A roundabout with a water fountain was included as a central feature for the entryway, regardless of what is built next door to the hotel, he said.
Patel, as the developer, “is committed to this site. A full-service hotel is going in,” regardless of the plans for the conference center, Fong said.
“If the conference center comes in, it will be a great neighbor. If not, another product can go in,” he said.
The design of the hotel can be changed to add meeting rooms for business purposes if the conference center idea does not move forward, Fong noted.
As presented, the hotel would encompass between 140,000 and 150,000 square feet of floor space and cost between $15 million and $20 million to build, Patel said.
On hand to lend support for the announcement was Brian Kennedy, vice president of S&Y Capital Group of Los Angeles.
To move ahead, Patel must acquire ownership of the land for the hotel - approximately 12.5 acres - from S&Y Capital Group.
To build the conference center, Palmdale’s Community Redevelopment Agency would have to acquire a similar-sized parcel from S&Y Capital, which owns the land under a number of projects planned in the Trade and Commerce Center.
Although the land for the hotel is included in a specific plan approved years ago for the Trade and Commerce Center, Patel still would need a conditional use permit from the city’s Planning Commission to construct a building that exceeds 45 feet in height.
Speedy land acquisition and planning approvals are “very critical” because of wanting to build before the market demand changes, Patel said.
Once the land is acquired and the project approved, it would take 12 to 15 months to open for business, he said.
“We don’t know what the future will hold a year from now or three years from now” in the hotel industry, Patel said.
“Our intent is to start (construction) sometime this fall,” he said.
Roberts said the project should move ahead “fairly quickly,” and once it does, it should spur additional development in the Trade and Commerce Center.
Since 1989, Sun Development has purchased or built more than 30 hotels in 13 states, including Hilton Gardens Inns, Hampton Inns, Staybridge Suites and Courtyards by Marriott.
This story appeared in the Antelope Valley Press on Friday, March 16, 2007.
PALMDALE - An Indianapolis-based hotel developer is planning to erect a seven-story, 150-room Embassy Suites just west of the Antelope Valley Freeway, possibly in conjunction with a city-operated conference center.
Bharat Patel, co-founder of Sun Development & Management Corp., said he selected Palmdale for his company’s first Southern California hotel project because of the Antelope Valley’s need for such a facility.
“If you look at the Palmdale-Lancaster area, you see only one full-service (hotel) that is maybe 20 or 30 years old, and it doesn’t fill the need that exists today,” Patel said. “If you look at … what is predicted for five years from today or seven years from today, you need a full-service hotel that would be part of the economic infrastructure,” he said.
Planned on Avenue P-4 between Fifth Street West and Trade Center Drive, south of the Mulligan Family Fun Center, the hotel would serve business travelers during the week and vacationing families on weekends, Patel said.
At seven stories, the all-suites hotel would be the tallest building in the Antelope Valley. It is proposed to contain a restaurant, a lounge, a coffee bar, a computer connection room, an exercise room, a pool and spa among its many amenities, said Danny Roberts, Palmdale’s assistant executive director of redevelopment.
Although construction of the hotel presents the city with an opportunity to develop a conference center, there has been no formal commitment for such a project, Roberts said.
If the City Council makes such a commitment in the next several months, things could change, Roberts said.
If built by the city, the conference center would need a full-service hotel nearby, but the hotel would not necessarily need the conference center to be successful, Roberts said.
To encourage city officials to build an adjoining conference center, Roberts said, Patel had his architect draw a picture of a matching hotel and conference center connected by a covered walkway and sharing a parking lot and tree-lined entry.
The site for the project was chosen in part because of its visibility from the freeway, said Gene Fong, the architect for the development.
The hotel and conference center were planned to complement each other and enhance access for motorists and pedestrians, Fong said.
A roundabout with a water fountain was included as a central feature for the entryway, regardless of what is built next door to the hotel, he said.
Patel, as the developer, “is committed to this site. A full-service hotel is going in,” regardless of the plans for the conference center, Fong said.
“If the conference center comes in, it will be a great neighbor. If not, another product can go in,” he said.
The design of the hotel can be changed to add meeting rooms for business purposes if the conference center idea does not move forward, Fong noted.
As presented, the hotel would encompass between 140,000 and 150,000 square feet of floor space and cost between $15 million and $20 million to build, Patel said.
On hand to lend support for the announcement was Brian Kennedy, vice president of S&Y Capital Group of Los Angeles.
To move ahead, Patel must acquire ownership of the land for the hotel - approximately 12.5 acres - from S&Y Capital Group.
To build the conference center, Palmdale’s Community Redevelopment Agency would have to acquire a similar-sized parcel from S&Y Capital, which owns the land under a number of projects planned in the Trade and Commerce Center.
Although the land for the hotel is included in a specific plan approved years ago for the Trade and Commerce Center, Patel still would need a conditional use permit from the city’s Planning Commission to construct a building that exceeds 45 feet in height.
Speedy land acquisition and planning approvals are “very critical” because of wanting to build before the market demand changes, Patel said.
Once the land is acquired and the project approved, it would take 12 to 15 months to open for business, he said.
“We don’t know what the future will hold a year from now or three years from now” in the hotel industry, Patel said.
“Our intent is to start (construction) sometime this fall,” he said.
Roberts said the project should move ahead “fairly quickly,” and once it does, it should spur additional development in the Trade and Commerce Center.
Since 1989, Sun Development has purchased or built more than 30 hotels in 13 states, including Hilton Gardens Inns, Hampton Inns, Staybridge Suites and Courtyards by Marriott.
Tuesday, February 27, 2007
Economists: AV is place for growth
Excerpts taken from the Antelope Valley Press
Wednesday, February 21, 2007
LOS ANGELES - The Los Angeles County Economic Development Corporation, says the Southern California economy looks pretty good and the Antelope Valley - unlike other regions of Los Angeles County - still has lots of land available for development.
The organization's 2007-2008 Forecast and Industry Outlook, released today, says land availability and a business-friendly environment place the Antelope Valley in a unique position in heavily developed Los Angeles County .
"All areas of Southern California are in a growth mode. In the Antelope Valley , the key issue is the land that is available for industrial and logistics development in the urban core of Southern California ," said Jack Kyser, the organization's senior vice president and chief economist. "It would be a mistake for (local leaders) not to crank up the volume of the message up there - 'Hey, there's space up here and good workers available.' "
The report is a precursor to the more detailed LAEDC report due in July that breaks out data specific to 13 regions of Los Angeles County .
The report said total building permits were down by 14% for the year 2006 in the five Southern California counties: Los Angeles , Orange , Riverside , San Bernardino and Ventura . But in Los Angeles County alone, it said, construction "inched up in 2006, a mere 2.7% growth; with more than 61% of the units permitted being multi-family (condos and apartments).
"This reflects the lack of land available for new housing development in Los Angeles County except in the Antelope and Santa Clarita valleys."
Housing acts as brake
Overall, the report said, Los Angeles County "had a decent year economically in 2006. However, it will see slightly slower growth through 2007-2008, with housing acting as a brake."
The report added: "One segment to watch is the for-sale condo market where there has been a burst of development that seems to have out-run market demand. However, there will be positive trends in key industries, such a aerospace, business and professional services, international trade, technology and travel and tourism. The latter industry has come back strongly, and the 30 large conventions booked for 2007 will keep the momentum going."
An array of major projects in the county will keep the economy rolling along in 2007 and 2008, the report said, including the 7,100-seat Nokia Theater and the $2 billion Grand Avenue project in downtown Los Angeles . Also coming are light-rail lines from downtown to East Los Angeles and to Culver City , plus other transportation projects funded by the November 2006 state bond package.
Worker contract renewals
The forecast report said "there will also be drama on several fronts in both 2007 and 2008" - a possible strike by grocery workers when their contract expires in March; the expiration of the Writer's Guild contract in October; and the expiration of Directors and Screen Actors guilds contracts in June 2008.
A major risk, the report said, "is labor unrest in the motion picture-TV production industry. That 'de facto' strike in 2001 caused significant pain in the areas of the county with heavy exposure to entertainment. If there is a worker interruption in the industry, it would not be pleasant."
Other dramas include the battle for leadership of the Los Angeles Unified School District , "pushing and shoving over legislation requiring hotels along Century Boulevard at LAX to pay a 'living wage' " and local governments feeling the pinch of lower property taxes.
Flights to San Francisco
Kyser said the twice-a-day United Express service scheduled to start June 7 between L.A./Palmdale Regional Airport and San Francisco will be a business bonus, "providing more access for a lot of people."
The Antelope Valley , he said, has much to offer.
"Look at the area," he said. "It has a growing population, a growing business base and very positive attitudes. Business is the friend and not the enemy like in other areas."
Defense spending not over
Defense Department spending, a vital part of the Antelope Valley economy, is going through changes, Kyser said.
"We expected defense spending to taper off, but it may not happen."
The Antelope Valley , he said, reportedly has a number of secret defense programs - called "black programs" - that aren't known to the public.
"There are a lot of black programs going on in the Antelope Valley ," Kyser said. "At night scan the skies."
The report noted that the fate of the C-17 military cargo plane, assembled in Long Beach , is uncertain.
"More orders from the Department of Defense will be required by year-end 2007 to prevent the 'shutdown' process from starting again," the report said.
Office space shortage
The report said the shortage of office and industrial space is another pressing problem for the county.
Office vacancy rates in the county at year-end 2006 were at 9.7% and headed down.
"The situation was much more serious in the industrial sector where the year-end vacancy rate was just 1.5%, again with a modest amount of new space in development. Worse yet, residential developers are trying to scoop up industrial sites for construction of housing with no thought given to possible job losses," the report said.
The irony, the report said, is that the decline in manufacturing employment in the county looks like it is getting close to bottoming out. Because defense and "quick-turn" manufacturing work cannot be sent overseas, Kyser said, Southern California job losses are coming to an end.
The report said, "There is a shortage of developable land in the urban core of Los Angeles County , so there will be more disputes over how sites are redeveloped. Complicating the situation is the jump in land costs."
New businesses in county
Newcomers to the Los Angeles business scene, the report said, will be Wachovia Bank, UK retailer Tesco with its smaller food stores similar to Trader Joe's and apparel retailers H & M and Zara.
Nonfarm employment in the county will grow by 1.1% or by 43,700 jobs in 2007, and by 1.3% or 51,800 jobs in 2008, the report said. Personal income will increase 4.9% in 2007 and 5.3% in 2008, outpacing the cost of living, which will be up in 2007 in the five-county Southern California area by 2.5% and in 2008 by 2.6%.
The county's travel and tourism industry will continue to perform well, the report said, with a 0.4% increase to 25.3 million overnight visitors in 2007.
International trade also will continue to be a reliable engine of growth, with an 11.3% increase in the value of two-way international trade at the local customs district to a new record level of $365 billion.
Housing industry risky
The county's real estate industry, the report said, "will have a split personality over the next few years. After an increase in the number of housing units permitted in 2006 (up by 2.7%, thanks to the multi-family sector), the permit count will drop by 23.3% in 2007 and by a further 3.0% in 2008. Partially offsetting this decline will be modest gains in nonresidential building permit values of 2.5% in 2007 and of 3.2% in 2008."
The report calls the housing industry risky, "but especially the for-sale condo market which has gotten a little ahead of itself. Some developers will be at risk."
On the state level, the report said that trends in the housing market "will continue to be a drag on the economy."
"The state's budget will be in a deficit situation again," the report said, "while there are ambitious environmental, social and infrastructure programs being discussed in Sacramento . Who will pay for them?"
The slowdown in property tax revenues, it said, could cause government agencies to tighten their budgets, and "most government agencies will have to start accounting for their obligations for retiree pensions and health care."
Immigration, trade policy
The report anticipates that with Californian Nancy Pelosi serving as speaker of the house, attention will be paid to a guest worker program to cope with undocumented immigration.
"The latter could help the state's labor-starved farming industry," the report said.
Another item will be trade policy, the report said, "with the Democrats concerned about the movement of jobs offshore. The state has lost manufacturing jobs, yet the business of international trade has been a significant engine of job growth."
In the agriculture sector, the report points out that the severe freeze that damaged the fruit did not damage the trees themselves. Income from the state's farm sector, it said, was little changed from 2005 to 2006, but the job count will decline in 2007 due to freeze-related disruptions.
In international trade, the Transportation Worker Identification Credential will be implemented some time during the year. "There are concerns many of the port truckers won't be able to obtain a TWIC due to their immigration status."
Greenhouse gas legislation
Professional, scientific and technical services will continue to expand, the report said, but "an emerging driver will be compliance with AB 32, the greenhouse gas legislation. Many industries will need to determine their requirements and how to best meet them."
Technology should see decent growth, the report said, as will tourism, as the weaker U.S. dollar attracts international travelers.
On the risk side, the report said the housing downturn "could be more severe than currently forecast."
And, the report said, the already high operating costs for businesses in the state "will go up due to tight office and industrial real estate markets, which will translate into higher lease rates. Longer range, a significant investment will have to be made in the state's electric distribution system, and higher power rates will result."
The 2007-2008 Economic Forecast and Industry Outlook for California and Southern California was written by Chief Economist Jack Kyser and economists Nancy D. Sidhu, Eduardo J. Martinez, George Huang and Candice Flor.
Wednesday, February 21, 2007
LOS ANGELES - The Los Angeles County Economic Development Corporation, says the Southern California economy looks pretty good and the Antelope Valley - unlike other regions of Los Angeles County - still has lots of land available for development.
The organization's 2007-2008 Forecast and Industry Outlook, released today, says land availability and a business-friendly environment place the Antelope Valley in a unique position in heavily developed Los Angeles County .
"All areas of Southern California are in a growth mode. In the Antelope Valley , the key issue is the land that is available for industrial and logistics development in the urban core of Southern California ," said Jack Kyser, the organization's senior vice president and chief economist. "It would be a mistake for (local leaders) not to crank up the volume of the message up there - 'Hey, there's space up here and good workers available.' "
The report is a precursor to the more detailed LAEDC report due in July that breaks out data specific to 13 regions of Los Angeles County .
The report said total building permits were down by 14% for the year 2006 in the five Southern California counties: Los Angeles , Orange , Riverside , San Bernardino and Ventura . But in Los Angeles County alone, it said, construction "inched up in 2006, a mere 2.7% growth; with more than 61% of the units permitted being multi-family (condos and apartments).
"This reflects the lack of land available for new housing development in Los Angeles County except in the Antelope and Santa Clarita valleys."
Housing acts as brake
Overall, the report said, Los Angeles County "had a decent year economically in 2006. However, it will see slightly slower growth through 2007-2008, with housing acting as a brake."
The report added: "One segment to watch is the for-sale condo market where there has been a burst of development that seems to have out-run market demand. However, there will be positive trends in key industries, such a aerospace, business and professional services, international trade, technology and travel and tourism. The latter industry has come back strongly, and the 30 large conventions booked for 2007 will keep the momentum going."
An array of major projects in the county will keep the economy rolling along in 2007 and 2008, the report said, including the 7,100-seat Nokia Theater and the $2 billion Grand Avenue project in downtown Los Angeles . Also coming are light-rail lines from downtown to East Los Angeles and to Culver City , plus other transportation projects funded by the November 2006 state bond package.
Worker contract renewals
The forecast report said "there will also be drama on several fronts in both 2007 and 2008" - a possible strike by grocery workers when their contract expires in March; the expiration of the Writer's Guild contract in October; and the expiration of Directors and Screen Actors guilds contracts in June 2008.
A major risk, the report said, "is labor unrest in the motion picture-TV production industry. That 'de facto' strike in 2001 caused significant pain in the areas of the county with heavy exposure to entertainment. If there is a worker interruption in the industry, it would not be pleasant."
Other dramas include the battle for leadership of the Los Angeles Unified School District , "pushing and shoving over legislation requiring hotels along Century Boulevard at LAX to pay a 'living wage' " and local governments feeling the pinch of lower property taxes.
Flights to San Francisco
Kyser said the twice-a-day United Express service scheduled to start June 7 between L.A./Palmdale Regional Airport and San Francisco will be a business bonus, "providing more access for a lot of people."
The Antelope Valley , he said, has much to offer.
"Look at the area," he said. "It has a growing population, a growing business base and very positive attitudes. Business is the friend and not the enemy like in other areas."
Defense spending not over
Defense Department spending, a vital part of the Antelope Valley economy, is going through changes, Kyser said.
"We expected defense spending to taper off, but it may not happen."
The Antelope Valley , he said, reportedly has a number of secret defense programs - called "black programs" - that aren't known to the public.
"There are a lot of black programs going on in the Antelope Valley ," Kyser said. "At night scan the skies."
The report noted that the fate of the C-17 military cargo plane, assembled in Long Beach , is uncertain.
"More orders from the Department of Defense will be required by year-end 2007 to prevent the 'shutdown' process from starting again," the report said.
Office space shortage
The report said the shortage of office and industrial space is another pressing problem for the county.
Office vacancy rates in the county at year-end 2006 were at 9.7% and headed down.
"The situation was much more serious in the industrial sector where the year-end vacancy rate was just 1.5%, again with a modest amount of new space in development. Worse yet, residential developers are trying to scoop up industrial sites for construction of housing with no thought given to possible job losses," the report said.
The irony, the report said, is that the decline in manufacturing employment in the county looks like it is getting close to bottoming out. Because defense and "quick-turn" manufacturing work cannot be sent overseas, Kyser said, Southern California job losses are coming to an end.
The report said, "There is a shortage of developable land in the urban core of Los Angeles County , so there will be more disputes over how sites are redeveloped. Complicating the situation is the jump in land costs."
New businesses in county
Newcomers to the Los Angeles business scene, the report said, will be Wachovia Bank, UK retailer Tesco with its smaller food stores similar to Trader Joe's and apparel retailers H & M and Zara.
Nonfarm employment in the county will grow by 1.1% or by 43,700 jobs in 2007, and by 1.3% or 51,800 jobs in 2008, the report said. Personal income will increase 4.9% in 2007 and 5.3% in 2008, outpacing the cost of living, which will be up in 2007 in the five-county Southern California area by 2.5% and in 2008 by 2.6%.
The county's travel and tourism industry will continue to perform well, the report said, with a 0.4% increase to 25.3 million overnight visitors in 2007.
International trade also will continue to be a reliable engine of growth, with an 11.3% increase in the value of two-way international trade at the local customs district to a new record level of $365 billion.
Housing industry risky
The county's real estate industry, the report said, "will have a split personality over the next few years. After an increase in the number of housing units permitted in 2006 (up by 2.7%, thanks to the multi-family sector), the permit count will drop by 23.3% in 2007 and by a further 3.0% in 2008. Partially offsetting this decline will be modest gains in nonresidential building permit values of 2.5% in 2007 and of 3.2% in 2008."
The report calls the housing industry risky, "but especially the for-sale condo market which has gotten a little ahead of itself. Some developers will be at risk."
On the state level, the report said that trends in the housing market "will continue to be a drag on the economy."
"The state's budget will be in a deficit situation again," the report said, "while there are ambitious environmental, social and infrastructure programs being discussed in Sacramento . Who will pay for them?"
The slowdown in property tax revenues, it said, could cause government agencies to tighten their budgets, and "most government agencies will have to start accounting for their obligations for retiree pensions and health care."
Immigration, trade policy
The report anticipates that with Californian Nancy Pelosi serving as speaker of the house, attention will be paid to a guest worker program to cope with undocumented immigration.
"The latter could help the state's labor-starved farming industry," the report said.
Another item will be trade policy, the report said, "with the Democrats concerned about the movement of jobs offshore. The state has lost manufacturing jobs, yet the business of international trade has been a significant engine of job growth."
In the agriculture sector, the report points out that the severe freeze that damaged the fruit did not damage the trees themselves. Income from the state's farm sector, it said, was little changed from 2005 to 2006, but the job count will decline in 2007 due to freeze-related disruptions.
In international trade, the Transportation Worker Identification Credential will be implemented some time during the year. "There are concerns many of the port truckers won't be able to obtain a TWIC due to their immigration status."
Greenhouse gas legislation
Professional, scientific and technical services will continue to expand, the report said, but "an emerging driver will be compliance with AB 32, the greenhouse gas legislation. Many industries will need to determine their requirements and how to best meet them."
Technology should see decent growth, the report said, as will tourism, as the weaker U.S. dollar attracts international travelers.
On the risk side, the report said the housing downturn "could be more severe than currently forecast."
And, the report said, the already high operating costs for businesses in the state "will go up due to tight office and industrial real estate markets, which will translate into higher lease rates. Longer range, a significant investment will have to be made in the state's electric distribution system, and higher power rates will result."
The 2007-2008 Economic Forecast and Industry Outlook for California and Southern California was written by Chief Economist Jack Kyser and economists Nancy D. Sidhu, Eduardo J. Martinez, George Huang and Candice Flor.
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