In This Issue: President’s Annual Report 2004-2005 Story and photos from the 9th Annual Eddy Awards LAEDC/WTCA 2004 Asia Mission Report Membership News and Updates And much more! www.laedc.org Los Angeles County Economic Development Corporation Spring/Summer 2005 Economic Development for the Regions of Los Angeles County Business Leader Business Leader Business Leader A testament to LAEDC’s mission to “attract, retain and grow businesses and jobs in the re- gions of LA County,” LAEDC celebrates its new milestone of having attracted and retained 100,532 jobs from 1996 to April 2005. Those jobs trans- late to $3.5 billion in annual economic impact from salaries and $65 million in annual tax revenue benefit to Los Angeles County. At the May 19 Membership Meeting, Los Angeles County Supervisor Michael Antonovich presented the LAEDC with a special commendation from the County Supervisors for this im- portant achievement. Rodney F. Banks, Chairman of the Board of the LAEDC said, “We are pleased to have reached this milestone in job creation and retention. It is (Continued on page 2) LAEDC REACHES 100,000 JOBS MILESTONE Business Assistance Program Sets a New Standard for Years to Come Chairman on the INFIELD Baseball great R Rod Banks threw out the first pitch at Dodger Stadium on April 29, 2005. Events of Interest More information on Page 4 JUNE 23 The National Association of Chi- nese American Bankers (NACAB) 18th Anniversary Gala 2005 SEPTEMBER 16-25 California World Trade Centers China Discovery Tour/Trade Mission OCTOBER 24 The 10th Anniversary EDDY Awards Dinner Standing from left to right: Westside Regional Manager (RM) Libby Wil- liams, Former RM Judy Turner, San Fernando Valley RM Alex Rosas, Business Development Coordinator Bob Machuca, Former RM Saul Gomez, Gateway Cities RM Barbara Levine, LAEDC Vice President Busi- ness Development Greg Whitney, Former RM Elaine Cullen, Undersecre- tary Business, Transportation & Housing Barry Sedlik, Former RM David Myers, Antelope & Santa Clarita Valleys RM Henry Leyva, Metro & South LA RM Dwayne Gathers, Business Services Coordinator Sequoia Holi- field, San Gabriel Valley RM Vance Baugham. Front and Center: LAEDC President & CEO Lee Harrington and Former BAP Director, now Sister Mary Margaret Brown.
Transcript
In This Issue:
§ President’s Annual Report 2004-2005
§ Story and photos from the 9th Annual Eddy Awards
§ LAEDC/WTCA 2004 Asia Mission Report
§ Membership News and Updates
§ And much more!
www.laedc.org Los Angeles County Economic Development Corporation Spring/Summer 2005 Economic Development for the Regions of Los Angeles County
Business LeaderBusiness LeaderBusiness Leader
A testament to LAEDC’s mission to “attract, retain and grow businesses and jobs in the re-gions of LA County,” LAEDC celebrates its new milestone of having attracted and retained 100,532 jobs from 1996 to April 2005. Those jobs trans-late to $3.5 billion in annual economic impact from salaries and $65 million in annual tax revenue benefit to Los Angeles County.
At the May 19 Membership Meeting, Los Angeles County Supervisor Michael Antonovich presented the LAEDC with a special commendation from the County Supervisors for this im-portant achievement.
Rodney F. Banks, Chairman of the Board of the LAEDC said, “We are pleased to have reached this milestone in job creation and retention. It is
(Continued on page 2)
LAEDC REACHES 100,000 JOBS MILESTONE Business Assistance Program Sets a New Standard for Years to Come
Chairman on the
INFIELDBaseball great RRodBanks threw out the first pitch at Dodger Stadium on April 29, 2005.
Events of InterestMore information on Page 4
JUNE 23 The National Association of Chi-nese American Bankers (NACAB) 18th Anniversary Gala 2005
SEPTEMBER 16-25 California World Trade Centers China Discovery Tour/Trade Mission
OCTOBER 24 The 10th Anniversary EDDY Awards Dinner
Standing from left to right: Westside Regional Manager (RM) Libby Wil-liams, Former RM Judy Turner, San Fernando Valley RM Alex Rosas, Business Development Coordinator Bob Machuca, Former RM Saul Gomez, Gateway Cities RM Barbara Levine, LAEDC Vice President Busi-ness Development Greg Whitney, Former RM Elaine Cullen, Undersecre-tary Business, Transportation & Housing Barry Sedlik, Former RM David Myers, Antelope & Santa Clarita Valleys RM Henry Leyva, Metro & South LA RM Dwayne Gathers, Business Services Coordinator Sequoia Holi-field, San Gabriel Valley RM Vance Baugham. Front and Center: LAEDC President & CEO Lee Harrington and Former BAP Director, now Sister Mary Margaret Brown.
ward. By working together, we will continue to grow jobs and businesses.”
The LAEDC Business Develop-ment and Assistance Program provides essential services to local businesses such as coor-dinating site searches, assisting with securing incentives, identi-fying traditional and non-traditional financing opportuni-ties including industrial devel-opment bonds. LAEDC also works with workforce training, permitting, transportation and utility providers.
“I assure you that all of us at Ready Pac greatly appreciate the business friendships we have discovered in the LAEDC and the SGVEP [San Gabriel Valley Economic Partnership],” said Ready Pac Irwindale plant manager Santiago Pacheco. Ready Pac, a provider of pre-mier fresh-cut, pre-packaged salad, fruit and vegetables, encountered local traffic issues and difficulty attaining proper permits in a timely fashion.
“When you operate a company whose sole mission is to deliver very fresh, healthy food to American families every single day, there is no room for down-time. Literally, every minute counts. Whether we are faced with an absent traffic signal or an extra permit requirement, we must find solutions quickly. Our employees and customers count on us,” said Santiago.
“That’s why we truly appreciate the extra effort given to Ready Pac to resolve these two mat-
having an important and con-tinuing impact at all levels of our local economy. As a meas-ure of its significance, think of 100,000 jobs as comparable to filling the Los Angeles Coliseum or two Dodger stadiums.”
Greg Whitney, LAEDC Vice Presi-dent, Business Development, remarked, “LAEDC’s regional managers and their network of business assistance partners have worked diligently over the past nine years to retain and expand our local employers and the good jobs they provide.”
This year, LAEDC is already working on 233 active projects, reflecting 34,000 potential retained, expanded, or new jobs. “With the experience and continuity represented in our regional managers and part-ners, the goal is to reach the next 100,000 job milestone in five years,” said Whitney.
“We wouldn’t be able to provide such a successful business assistance program without our relationships with the regional EDCs and other partners,” said LAEDC President and CEO Lee Harrington. He credited this milestone to effective coopera-tion with other economic devel-opment organizations in the region, and great working rela-tionships with government offi-cials and agencies. “It takes a team effort to keep the Los Angeles economy moving for-
100,000 JOBS(Continued from page 1)
ters so promptly and effec-tively.”
Royal Truck Body in Paramount faced a possibility of relocating the business if they could not secure nearby parking for their finished utility trucks. LAEDC stepped in to help facilitate an ongoing process of leasing the land under the power lines from the Department of Water and Power (DWP) and Southern California Edison (SCE).
“The progress Royal Truck Body has made with Edison and the DWP has given us the confi-dence to move ahead with our growth strategy,” Dudley DeZo-nia, President of Royal Truck Body, said. In addition to the 220 jobs saved, “we are happy to announce that we have re-cruited 87 new employees so far in FY '06…Thank God for the LAEDC.”
“Having reached this important milestone, our goal is to con-tinue to attract and create new wealth within our economy,” concluded Banks. “Recently in our landmark report Recaptur-ing the Dream: A Winning Strat-egy for the LA Region, we pro-posed a broad visionary road-map as to how the greater Los Angeles area, as one of the world’s most diverse business centers, can maintain its vi-brancy and preeminence into the next decades. We intend to continue to provide the action-oriented leadership to meet these community challenges into the future, as we have in the past.”
Page 2 LAEDC Business Leader, Spring/Summer 2005
Projects won by Regions
Jobs Projects
San Gabriel Valley
25,317 162
Gateway 23,510 136
South Bay 17,819 135
San Fer-nando Valley
15,924 99
Westside 4,174 28
LA Metro 4,091 42
South LA 3,553 38
Santa Clarita 3,136 30
AntelopeValley
3,008 34
PROJECTS WON - BY REGION
Types of Project Won
Jobs Projects
Attraction 13,360 112
Retention 57,547 287
Expansion 19,830 221
Relocation 9795 84
TYPES OF PROJECT WON
§ 100,532 Jobs Created/ Retained (Jobs Won) from 1996 to April 2005
§ $65 Million- Annual Tax Revenue Benefit to County
§ 60% of Jobs in Manufac-turing Sector
§ Average Manufacturing Salary $44,000 per Year
§ 144 Average Jobs per Project
§ 7 months Average Length of Project
PERFORMANCE HIGHLIGHTS
Vance Baugham and Ready PacPlant Manager Santiago Pacheco.
Barbara Levine with Royal Truck Body Consultant Dick Hoffman (left) and General Manager Joe Valdivia (right).
Lee Harrington and Bob Bush (right) accept Special Commenda-tion on behalf of the LAEDC from LA County Supervisor Michael Antonovich (center).
Page 3 LAEDC Business Leader, Spring/Summer 2005
Southern California at an Economic Crossroads LAEDC Released Its 2005-2006 Economic Forecast & Outlook
for a 1.6 percent gain. Riverside and San Bernardino counties will set the pace in non-farm employment growth, with a 3.5 percent or a 39,000 job in-crease between 2004 and 2005, while Orange County’s non-farm employment will move ahead by 1.7 percent or by 23,700 jobs dur-ing 2005.
The region’s growth is pro-jected to get a boost in 2005 by aerospace, inter-national trade, motion picture/TV production, tourism, and housing indus-tries.
“Southern California’s economy is at a crossroads and faces some specific challenges that could impact the year’s results and its future growth,” according to the 2005-2006 Economic Forecast and Industry Outlook released by LAEDC on January 26, 2005, at Colburn School of Performing Arts in Downtown Los Angeles.
LAEDC Senior Vice President and Chief Economist Jack Kyser presented the Forecast, which looks at key prospects in 2005-2006 for five southern Califor-nia counties and expected trends in important local indus-tries.
According to the study, Los An-geles County will be first in terms of numerical growth, add-ing 66,800 jobs during 2005,
movement. The region’s highway and rail network is under extreme duress.
§ Possibility of power short-ages if the summer tem-perature soars.
“The Los Angeles area must reclaim its commitment to broad-based economic growth and job creation as the single most effective way to lift people from poverty and help them achieve upward mobility,” said LAEDC Chairman & CEO Lee Harrington.
Mid-year update will be avail-able in July 2005.
The 2005-2006 Economic Fore-cast and Industry Outlook is available for viewing and download at wwww.laedc.org.
Additionally, there are several major factors that will influence the course of the California and Southern California economies in 2005.
§ Business Environment in California. Kyser observed
that “it is expen-sive to add a worker in the state, and a significant portion of our busi-ness base is trying to contain costs.”
§ State Budget. The efforts to bridge the deficit could impact both business and local government.
§ C o n g e s t i o n ,especially for goods
The groundbreaking LAEDC Business Intelligence/Early Warning program conducted by LAEDC and the National Center for Business and Economic Re-search (NCBER) earned LAEDC the prestigious Award of Excel-lence by the California Associa-tion of Local Economic Develop-ment (CALED) on March 24, 2005, at the 25th CALED An-nual Conference in Monterey.
The purpose of LAEDC Business Intelligence/Early Warning Pro-gram was to survey over 25,000 LA County businesses as an early-warning system to identify business retention targets, ex-pansion opportunities, and un-cover key business issues and growth opportunities for the future. As a result of this out-reach, the LAEDC has positively affected 30 retention and ex-
LAEDC Receives CALED Economic Development Award Business Intelligence/Early Warning Program Recognized for its Excellence
and will lead to specific recom-mendations to improve South-ern California’s economic cli-mate.
“We are pleased that this survey is recognized,” said Lee Harring-ton, President and CEO of LAEDC. “We will continue to work to help businesses in our regions grow, not go.”
Each year, CALED honors achievements in the field of economic development through its statewide Awards For Excel-lence program. The program brings statewide public and professional recognition to those projects and programs developed during the previous year that have made significant contributions to the field of eco-nomic development.
pansion projects retaining or adding over 3,000 jobs, produc-ing over $103 million in com-bined annual salaries and an annual tax revenue contribution of over $5 million to state, county and local government.
In addition to the early warning contacts, specific retention and expansion needs and issues were identified according to employer size, location and sec-tor. Findings have been used to identify regional policy issues
Jack Kyser, LAEDC Senior Vice President & Chief Economist
From Left to Right: CALED Chairman David Biggs, LAEDC Regional Manager Henry Leyva, LAEDC President & CEO Lee Harrington, California State Assembly Member Juan Arambula, San Fernando Valley Economic Alliance President Bruce Ackerman, San Gabriel Valley Economic Partnership President Bill Carney, Greater Antelope Valley Economic Alliance President Mel Layne, and LAEDCRegional Manager Vance Baugham.
Business Leadership and the Next Step in LAEDC Evolution Message from LAEDC Chairman Rod Banks
LAEDC is the quality of the board and the executive com-mittee, and the continued roles and involvement of many past Chairs. To each of you I am grateful for your friendship and support.
The LAEDC has now moved to another level in its evolution. There are numer-ous great pro-grams that have made a large financial differ-ence within the region. There is a strong and active board made up of busi-ness and politi-cal leaders, and we are about to add to a strong endowment that will allow the organization to become even more involved with programs that support the region’s econ-omy. All in all, the LAEDC has more impact than at any other
time in its existence, and is poised to take on more eco-nomic leadership in the years to come.
As we move for-ward into the next fiscal year, I have asked the board and staff to help us focus on sev-eral key initia-tives.
First, we need to find better ways to gain public awareness of our mission. This means finding more methods to get our economic leadership into the community. One of the new ways we will be a c c o m p l i s h i n g this is through the
Center for Economic Develop-ment and the associated South-ern California Leadership Coun-cil, now under formation. Re-lated to this subject we need to
A familiar face at the LAEDC Board and Membership meet-ings since November 2004, Celeste brings her experience in administrative support and project coordination to the Investor Relations and Corpo-rate Communications depart-ments as the primary point of contact for membership infor-mation and updates.
New Faces on the Block Introducing the Three Newest Additions to LAEDC Staff
MICHAEL MONTOYA Analyst
A recent USC Finance & Inter-national Relations graduate and former Exposition Park Manager’s Assistant, Michael joined LAEDC in January 2005. He conducts economic and financial research analysis in both the Economic and Public Policy Consulting areas. He anticipates pursuing his Mas-ters in Public Policy and Real Estate Development.
V. OAKLEY BOREN Communications Manager
Oakley began making her daily commute from Long Beach to the LAEDC in February 2005. A communication specialist, she is responsible for the mainte-nance of LAEDC and WTCA websites, and the overall de-sign and parts of the content for the Business Leader. Oak-ley can be spotted at LAEDC meetings taking a photo record of the meetings.
partner more thoroughly with the region’s “like-minded” busi-ness organizations that can help us strengthen our voice regionally on economic issues.
Secondly, with our increased financial ability, we can now consider more programs of impact on the region’s eco-nomic future. Your staff and board will continue to evaluate these new programs and bring them to you for your review.
And lastly, this is an organiza-tion of business leaders who have a vested interest in the local economy and have a genu-ine interest in each other’s views. We will therefore con-tinue to find more ways to bring our members together for the value of our business network-ing.
In closing let me say thanks again to the staff of the LAEDC, the various board committees and in particular the executive committee for the passion they bring to the LAEDC.
“[LAEDC] is an organization of
business leaders who have a vested interest in the local economy and have a genuine interest in each other’s views.”
G reetings to all of our LAEDC members and friends.
This past year has been one of great accomplishment for the LAEDC. The President’s Report from Lee Harrington will outline for you the key achievements that the staff and board made possible this past year. Simply said, I am confident you will be impressed with the quality and depth of the organization’s ef-fort to attract, retain, and grow jobs within the region.
Now, from a personal stand-point, my appointment as Chair-man has allowed me to see the work of the LAEDC from an en-tirely different perspective. We began the year under the lead-ership of our past Chairman Bob Hertzberg. As all of you know, Bob stepped down in order to focus his efforts on the Los Angeles mayoral campaign. We were honored to have Bob’s leadership this past year and we are grateful he remains a key board member and advisor to all of us at the LAEDC. What has been a hallmark of the
BUSINESS DEVELOPMENT AND ASSISTANCE
Our Business Development and Assistance Program, headed by Greg Whitney, achieved yet another new high, reaching the 100,000 jobs milestone, and completing 125 projects with businesses to attract and retain 17,539 direct jobs at risk in Los Angeles County. Since 1996, this program has delivered 100,532 jobs at risk for the County of Los Angeles. Approximately 60% of these jobs are manufacturing-related, averaging $44,000 annually to maintain middle class opportunities in the region. The economic and fiscal (tax revenue) impact of these jobs is now $3.5 billion and $230 million ($65 million in LA County) annually.
And we enter the new year with 233 active projects reflecting 34,000 potential jobs at risk.
ECONOMIC RESEARCH AND INFORMATION
Our Economic Research and Information Program led by our celebrated Chief Econo-mist, Jack Kyser, produced twelve major eco-nomic forecasts and industry reports, pre-senting the real business story of LA County. With over 1,600 media inquiries, regional, national and international coverage of the stories and reports reached an all-time high with numerous front-page articles.
The Recapturing the Dream: A Winning Re-gional Strategy Report, produced for LAEDC’s Center of Economic Development and written by Joel Kotkin and Jack Kyser, generated local, statewide and national recognition as an essential economic development and public policy thought piece.
ECONOMIC CONSULTING
Economic Consulting, headed by Wally Baker, continued to add to its already impressive list of clients in the public and private sector throughout Southern California and the state. Of particular note was the 5 County Goods Movement Project, which was supported by all 5 county transportation agencies, and both BNSF and Union Pacific railroads. The Project developed a system-wide project plan, including financing options for over $10 bil-lion of goods movement system improve-
ments, to enhance the capacity, efficiency, economic and environmental benefits of a world-class rail and highway logistics system. The Project team included public finance experts and an advisory panel including Gov-ernors Pete Wilson, George Deukmejian and former Assembly Speaker Bob Hertzberg.
MEMBERSHIP
Our Investor Relations Department, led by Steve Harper, reached new highs in member engagement and financial support. For the first time investor contributions exceeded $1 million. This year also brought expanded member involvement through the launch of the Business Services Network, a program of activities and mechanisms to promote mem-ber business opportunities and support the mission.
Amy Grat also shepherded our annual Eddy Awards to a new net revenue high of over $160,000, doubling our previous best re-sults.
LAEDC members continue to provide leader-ship in the public policy arena. Members leading the Critical Infrastructure Council have embarked upon an initiative to support evaluation of the prioritization and optimiza-tion of goods movement system enhance-ments in the region.
SOUTHERN CALIFORNIA LEADERSHIP COUN-CIL AND CENTER OF ECONOMIC DEVELOP-MENT
The LAEDC Executive Committee and Board launched a new business leadership initiative to address and solve critical public policies issues impacting Southern California’s eco-nomic vitality and competitiveness. Following two exploratory dinners attended by regional business leaders and three former governors, the Southern California Leadership Council and a Center of Economic Development were created. Governor Pete Wilson volunteered to act as interim Chair for the formation ef-fort.
The Center, a public policy program of the LAEDC, will provide the analytical and solu-tion path support to the Leadership Council comprised of 15 to 30 Southern California business and community leaders.
INTERNATIONAL TRADE AND INVESTMENT
Together with the WTCA Los Angeles/Long Beach, the LAEDC led a major trade and busi-ness investment attraction mission to Korea and China, including 10 members of the LAEDC and WTCA boards, headed by Rod Banks and K.Y. Cheng, the Chairs of the two organizations. (See story on Page 8.)
We are in the process of organizing the Sep-tember Mission and we hope again for strong representation from our members and board.
STRATEGIC RETENTION INITIATIVE—LAAFB
Lynn Hogan, LAEDC CFO, also worked with the Economic Information and Consulting Depart-ments to produce two critical reports to sup-port retention of the Los Angeles Air Force Base (LAAFB) and Aerospace Corporation in the Department of Defense Base Realignment (BRAC) process. The reports, which contrib-uted to the success of retaining the AFB, iden-tified over 60,000 jobs at risk in Southern California, 120,000 statewide, and over $16 billion of economic benefit at risk. The Gover-nor’s BRAC Commission used these reports to support the Governor’s position for retention.
PACIFIC CONCOURSE REAL ESTATE DEVELOPMENT
The LAEDC’s efforts to complete its 30-acre business park development at Pacific Con-course near LAX also neared conclusion at year end. This will conclude a 15-year effort to develop the site to enhance the region’s jobs base. In partnership with Stan Moore of OMA Properties, the LAEDC has created a self-contained, state-of-the-art, mixed-use, transit-served community composed of 700,000 square feet of world class commercial, re-search and public services facilities and now with Trammell Crow Realty 430,000 square feet of luxury, professional housing. Special recognition goes to long-time Board members Phil Nicholson, Jim Hankla and Bob Bush for their support of this project.
CREDIBILITY, IMPACT, CONTINUITY AND LEAD-ERSHIP are now the hallmarks of the LAEDC, all thanks to the efforts of our members and our board.
President’s annual report 2004 - 2005 LAEDC Year in Review from Lee Harrington
Page 5 LAEDC Business Leader, Spring/Summer 2005
On October 7, a sold-out crowd of more than 450 of the region’s leading busi-
ness, government and community leaders, filled the Crystal Ballroom of the Beverly Hills Hotel to celebrate two exemplars of excel-lence in economic development at the 9th
Annual Eddy Awards. LLiam McGee, President of Consumer Banking, Bank of America, and Monica Lozano, Publisher and CEO of La Opinión, were honored for their outstanding contributions to the region’s economic vitality.
This celebration of leadership was hosted by Leyna Nguyen, weekend an-chor and reporter for KCAL 9, who charmed the audience with her expres-sive commentary. The evening began with an opening and welcome remarks by LAEDC Chairman Rodney F. Banks, who introduced a short video highlight-ing LAEDC’s mission.
Banks, Market President & Small Busi-ness Executive, Bank of America, re-turned to the stage later, joined by Joe Haggerty, President, United Way of Greater Los Angeles, to introduce and present the award to McGee.
“Sometimes people complain that business executives don’t give enough of their personal time,” Haggerty noted. “Liam gives personal time. He’s a man—a leader—who gives his time and his concern so that people find a way to move up.”
Examples of McGee’s business leadership include leading Bank of America to make banking services more widely accessible to consumers and neighborhood businesses, providing innovative solutions in housing and mortgage lending, supporting small business
development, and promoting financial literacy and leadership training.
“This state’s nearly one million small compa-nies are...the source of stability, entrepre-neurship and wealth-building for tens of thou-sands of newcomers to this country every year,” said McGee. Los Angeles’ ethnic diver-sity makes it “the 21st century city that an-chors the profoundly personal miracle we call the American Dream.”
La Opinión is an example of such dream—“A testament to what immigrants contribute to Southern California.” Under Monica Lozano’s leadership, La Opinión, started by her grand-father in 1926, has become an active partner in the economic prosperity and business suc-cess of one of the most dynamic communities in the region. Understanding the power of information to strengthen communities and improve peoples’ lives, Lozano has led La Opinión to reach toward a national audience and has created outreach programs, includ-ing Éxito Empresarial, which equips aspiring entrepreneurs with essential business skills.
Past Eddy honoree John Bryson, Chairman, President & CEO, Edison International, and Alberto Alvarado, Los Angeles District Direc-tor, U.S. Small Business Administration, were on hand to present Lozano with the Eddy Award.
Calling Lozano a “tough cookie”, Alvarado quipped, “Monica once asked me ‘When does a woman most enjoy a man’s company?’…She said, ‘When she owns it, of course.’
That’s how tough she is.” Alvarado later asked the audience to stand to honor Lozano, “a woman whose grace, charm, and beauty are only exceeded by her business acumen, brilliance, and intelli-gence.”
In her acceptance speech, Lozano em-phasized the importance of our diversity and its contribution to Southern Califor-nia. “Power of the Latino community is apparent everywhere we turn in South-ern California,” said Lozano. “Our com-munity is building community.”
Winding down the evening, Eddy Dinner Committee Chair Kenneth P. Trevett,
J.D., President & CEO, Los Angeles Biomedi-cal Research Institute, thanked the LAEDC Board and Executive Committee for their strong support of the event, as well as Ms. Naz Keynejad and the team at Western Direct for their expert event management.
After acknowledging the honorees, the guests and the LAEDC staff, LAEDC President & CEO, Lee Harrington concluded, “[LAEDC] will help you to make this region grow, achieve its eco-nomic promise, and through that economic promise, all that quality of life had brought us here in the first place.”
Page 6
Rod Banks, Liam McGee, Monica Lozano, Lee Harrington
LAEDC Business Leader, Spring/Summer 2005
An Evening of Pride & Honor at the 2004 Eddy Awards
S A V E T H E D A T E M o n d a y
O c t o b e r 2 4 , 2 0 0 5 The Regent Beverly Wilshire
For sponsorship and other information, please contact Naz Keynejad at (310) 624-4711 ext. 3
www.laedc.org/data/events/2005eddy.shtml
The 10th Anniversary Eddy Awards A C e l e b r a t i o n o f E c o n o m i c D e v e l o p m e n t E x c e l l e n c e
Cocktail Reception & Silent Auction Followed by Dinner and Award Programs
Page 7 LAEDC Business Leader, Spring/Summer 2005
SPONSORS OF THE 9TH ANNUAL EDDY AWARDS
Joe Faulkner, Margaret Han, Lee Harrington, Liam McGee, Lloyd Greif, and Walter Conn
Leyna Nguyen, John Bryson, Monica Lozano, and Alberto Alvarado
Joe Haggerty, Tim McCallion, and Liam McGee
Anne Somers, Scott Somers, and Don Clark
Full house crowd in the Crystal Ballroom
Al Osbourne, Barbara Allen Watkins, and Nelson Davis
Roy Hearrean, Past Eddy Honoree Tom Decker, and Bob Hertzberg
Barbara Trevett and Eddy Dinner Commit-tee Chair Ken Trevett, and Clifton Johnson
Rod Banks, Jean Brinkmann, Susan Banks, and Tad Ikemoto
Los Angeles Times Mayer, Brown, Rowe & Maw, LLP Pillsbury Winthrop LLP Port of Long Beach Sidley Austin Brown & Wood, LLP Union Bank of California The Walt Disney Company Washington Mutual Watson Land Company
ACT-1 Group ADP Small Business Services Automobile Club of Southern California Bain & Company Bear Stearns Blue Cross of California DMJM Harris East West Bank HSBC Bank USA La Opinión LA BioMed Lowe Enterprises Marshall School of Business Oakwood Worldwide
Southern California Edison Southern California Gas Company Strategic Benefits Group University of Southern California Windale Group
Page 8 LAEDC Business Leader, Spring/Summer 2005
community align around a winning regional strategy,” said L e e H a r r i n g t o n , L A E D C President and CEO. “Growth vs. no growth is not an option. We need to act based on the realities before us.”
Recapturing the Dream recom-mends six critical elements to get LA regions back on track:
1. Community buy-in to the “winning regional strategy” philosophy Business and jobs are the key to our economic success and quality of life. This message needs to be coupled with an appreciation for planned growth and economically rational environmental solutions.
2. Engaged business leadership to solve critical threats facing the region The business community needs to build its capacity to analyze the issues, develop solution paths and create implementa-
“Strategy, which creates the necessary jobs and tax revenue to help finance the public sec-tor’s ability to meet the many needs of the region – that’s the bottom line,” said Recapturing the Dream: A Winning Strategy for the LA Region, a report re-leased by the LAEDC on January 20, 2005.
Co-authored by LAEDC Senior Vice President and Chief Economist Jack Kyser and Joel Kotkin, an internationally recognized expert on global, economic, political and social trends, Recapturing the Dream points out that much of the r e g i o n a l p o l i c y - m a k i n g community, especially the city of Los Angeles, no longer recognizes the connection between fostering economic growth and improving social well-being of the population.
“These disconnects must be bridged with more business leadership to help the
tion support mechanisms to address regional threats and opportunities.
3. Local government focused on its primary mission of infrastructure and public servicesEngage local elected officials and governmental leaders in meaningful dialogues with business leaders, the true job generators.
4. More effective regional engagement in the policies and actions of State Government Creating a local government/business partnership that can effectively advocate necessary change in Sacramento.
5. Continued attraction and investment in higher education We need to support a combination of community college programs focused on technical and skilled workforce careers along with college and graduate programs relevant to o u r g r o w t h i n d u s t r i e s . E n t r e p r e n e u r i a l a n d International programs are particularly well suited to our region’s business base.
6. Maximize land reuse in urban areas The region will continue to grow. That in mind, we need to treat land as a scarce resource that must be optimized as the region grows. Maximizing the utilization o f l a n d a n d e x i s t i n g infrastructure is a critical regional development priority.
Recapturing the Dream is available for viewing and download at wwww.laedc.org.
Winner Will Take All: The Region’s Economic Future LAEDC continues to exert a growing influence on public policy issues affecting the Southern California region. As part of its effort to positively shape the course of regional development, LAEDC recently undertook a major thought-piece dedicated to addressing major issues of regional scope. Excerpts follow:
Events of Interests For more information on any of these events, please visit www.LAEDC.org
JUNE 23 The National Association of Chinese American Bankers (NACAB) 18th Anniversary Workshop and Gala Starting at 4 p.m. The Los Angeles Omni Hotel
LAEDC Vice President & Chief Economist Jack Kyser to speak at the workshop, and Michael Milken to keynote at the gala.
SEPTEMBER 16-25 California World Trade Cen-ters China Discovery Tour/Trade Mission (Details on Page 8)
California World Trade Cen-ters offer 2 distinct programs to China: China Discovery Tour with a few business briefings, and the business focused China Trade Mission.
OCTOBER 24 The 10th Anniversary EDDY Awards Dinner The Regent Beverly Wilshire, Beverly Hills
Join us in a celebration of economic development excel-lence! For sponsorship and other information, please contact Naz Keynejad at (310) 624-4711 ext. 3.
“More than anything else, [LA region’s] creativity and leading edge, entrepreneurial spirit,
driven largely buy its growing diversity, are its greatest strengths.”
- Excerpt from Recapturing the Dream
Rod Banks Bank of America
KY ChengEast West Bank
Roy HearreanSWI Group
Kevin Nikkhoo Sino Century US
Walter ConnCharles DunnCompany
William CarneySan Gabriel Valley Economic Partner-ship
Jenny ChenHan Tone Int’l Corp.
Robert OehlerFar East National Bank
Asia Mission Participants Rich DavisColliers Seeley
John CarverColliers Seeley
Janice BryantHowroydACT 1 Personnel Services
Carlton BryantACT 1 Personnel Services
Jack LewisIBEAR/USC
Suzette FurbeyreIBEAR/USC
From LAEDCLee HarringtonGreg WhitneySteve HarperAmy GratGreg Freeman
Members of the LAEDC and WTCA partici-pated in a business development mission to South Korea and China. Under the com-bined leadership of LAEDC Chairman, Rod-ney F. Banks and WTCA Chairman, KY Cheng, the group conducted meetings with a number of organizations and businesses in Seoul, South Korea; and Beijing, Tianjin, Suzhou and Shanghai, China.
Key goals of the LAEDC/WTCA mission in-cluded increasing board awareness of the importance and impact of Asia, especially China, on the Southern California economy and promoting business development oppor-tunities for Southern California companies.
Page 9 LAEDC Business Leader, Spring/Summer 2005
Henry Wang, Amy Grat, Walter Conn, and Jenny Chen touring the construction site of BSAM Olym-pic Project
2004 LAEDC/WTCA Asia Mission: Accomplished
China Mission participants visiting Shanghai For-eign Investment Development Board
John Carver, a mission participant from Col-liers Seeley, commented, “From this trip, we have a much better perspective of our busi-ness here in Los Angeles. Let alone our capabilities and confidence of doing busi-ness overseas.”
Among the accomplishments of this mission were the signing of three strategic partner-ships with the Gyeonggi Federation of Eco-nomic Organizations (GFEO), Beijing State-owned Asset Management Corporation (BSAM), and the WTCA-Shanghai. The goals of these strategic partnerships are to ex-pand business opportunities for the region’s businesses and promote greater collabora-tion between organizations for mutual bene-fit.
A portion of the delegation arrived early to participate in USC’s Asia Conference, held in Seoul.
“In the end, it is the relationships that helped deliver this seamless global eco-nomic network,” remarked Lee Harrington, LAEDC President & CEO. “We can bring the opportunities to the table. And that is the new [economic development] model that we are creating here at the LAEDC.”
At USC Asia Conference in Seoul, Korea
B e i j i n g - H a n g z h o u - S h a n g h a i : : S e p t e m b e r 1 6 - 2 5 , 2 0 0 5
2005 California WTCs China Discovery Tour/Trade Mission2005 California WTCs China Discovery Tour/Trade Mission2005 California WTCs China Discovery Tour/Trade Mission
For more information, please contact Sequoia Holifield at (213) 236-4822 or [email protected]
California World Trade Centers (WTCs) and State of California Business, Transportation and Housing Agency, in cooperation with U.S. Department of Commerce, the statewide California Trade Partners, and other trade associations, offer two distinct programs.The China Discovery Tour will offer participants opportunities to visit main attractions in China, and receive a few business brief-ings. The China Trade Mission is business-focused, providing participants from the State of California with cultural, social, eco-nomic and political orientations in China.
Rod Banks shaking hands with Li Aiqing at BSAM strategic partnership signing ceremony in Beijing
FEATURED NEW MEMBER
McKinsey & Company is a manage-ment consulting firm helping many of the world’s leading organiza-tions improve strategies, organiza-tions and operations. For nearly eight decades, the company’s pri-mary objective has remained con-stant: to serve as an organization’s most trusted external adviser on critical issues facing senior man-agement. McKinsey is dedicated to helping clients make distinctive, lasting and substantial improve-ments in their performance.
McKinsey has 83 offices in 45 countries worldwide. Its approxi-mately 6,300 consultants are citi-zens of nearly one hundred coun-tries. To ensure objectivity, the Firm is privately owned by its part-ners, in order to remain independ-ent of outside shareholders’ inter-ests.
Frank Nainoa Manager, West VerizonSolution CenterVerizon
Mary Neale PartnerSidley Austin Brown & Wood
Dennis OlsonDeputy Executive Director, LAX Airlines Airport Affairs Committee
Douglas W. Otto Attorney at Law Law Offices of Douglas W. Otto
Todd Palmer Regional Vice President, California Computer Associates
Joe Perez Director of Community Development City of Paramount
Chris Pociask Senior Account Manager BCE Conferencing Inc.
José Luis Sanchez Director, Governmental Affairs Southwest Airlines
Lane SchwartzRegional Manager, LA Office Marcus & Millichap
Warren Spikes Operations Vice President State Farm Insurance Companies
Mark Sullivan Executive Vice President and Branch Manager Julian J. Studley
Pamela Westhoff PartnerDLA Piper Rudnick Gray Cary US LLP
Roger O. Williams Business Development Executive Rudolph and Sletten Inc.
Jon Yipp Assistant Administrator Opera-tions, West LA Medical Center Kaiser Permanente
Page 10 LAEDC Business Leader, Spring/Summer 2005
NEW EXECUTIVE COMMITTEE MEMBERS
James Acevedo Commissioner Port of Los Angeles
John X. Chen Director of Economic Development Los Angeles Department of Water and Power
William F. Coffin CEOCCG Investor Relations
Jeff Dritley Managing Partner Kearny Real Estate Company
Dhiya El-Saden PartnerGibson, Dunn & Crutcher, LLP
John Fairbrother Director, Finance & Accounting McKinsey & Company
Rob Gilmore Director, Commercial/Industrial Newhall Land
Kim McCleary La France Vice President, Planning & Community Affairs Los Angeles Times
Edward A. Perron PartnerPillsbury Winthrop
Andrew D. Ratner Executive Managing Director Cushman & Wakefield
Jeffrey Scheferman President & CEO Colliers Seeley Int’l, Inc.
Greg Seibly President US Bank California
NEW MEMBER COMPANIES
Accenture College of the Canyons Federal Express Royal Truck Body Western Direct
NEW BOARD MEMBERS
Mark V. Bozigian Redevelopment Director City of Lancaster-Redevelopment Agency
Alan Buckle Regional Vice President Alliance Bank
Jonathan R. Choi Manager, California Government Relations The Boeing Company
Paul T. Cooney Regional Director, Southern California and Nevada AT&T
Kim Day Executive Director Los Angeles World Airports
Brian Gregson Senior Vice President District Executive HSBC Bank USA
Hezekiah Harris President CMTS - Construction Manage-ment
Paul Hernandez Manager, Public Affairs The California Endowment
Karen Hughes State Sales Coordinator AFLAC Inc.
Bill Kearns Senior Vice President LBA Realty
Jim Lott Executive Vice President, Healthcare Policy Development & Communications Hospital Association of Southern California
Michael Mulcahy Market President First Heritage Bank of California
Membership Update LAEDC Welcomes 2004-2005 New Board and Executive Committee Members, and New Member Companies
LAEDC MEETING SCHEDULEAttendance at meetings are by mmem-bership or invitation only.
Board of Directors Meetings June 15July 20 * No Board meeting in August. October 19 December 14 Holiday Event (5:00-7:30 p.m.)
Full Membership Meetings September 21 November 16
All meetings are held at California Club, 538 South Flower Street, and run from 8:00-9:30 a.m. with networking opportunity starting at 7:30 a.m.
For membership information, please contact Amy Grat at [email protected] or call (213) 236-4835.
THE CONTENDERS
As the LA Mayoral election approached, the LAEDC was honored to have both mayoral candidates LA City CCouncilman Antonio Vil-laraigosa (Mayor-elect) and MMayor James Hahn address our board and membership in March and April respectively.
LAEDC SUCCESS STORIES
AMSI (Advanced Machine & Stretchform International, Inc.) – TTerry Brown, CEO of AMSI, gave a report on the assistance pro-vided by LAEDC and LA County in securing a community development float loan. This additional financial security will allow AMSI to expand their operations.
Lawrence Equipment – With the help of LAEDC and San Gabriel Valley Business Part-nership, JJohn Lawrence, the owner of Law-rence Equipment, decided to keep their 200-employee business in the region in-stead of leaving the state, and later added 100 jobs with their expansion plan.
Panasonic Disc Manufacturing Corp. - Masahiko “Mark” Horiki, President & CEO; Marty Burstein, VP, Administration; and TTod Sword, Project Manager, Southern California Edison recounted the process from 1996
when Panasonic Disc was seeking a location to operate in the U.S. With LAEDC assis-tance, Panasonic Disc has expanded twice since then and plans to expand further as the market demand grows.
HOT TOPICS IN 2004-2005
The economic consequences of terrorism were among the many homeland security related concerns that DDetlof von Winterfeldt,Co-Director of USC’s Homeland Security Center for Risk & Economic Analysis shared with the members in January 2004. The first of its kind, the Center aims to provide opportunities for partnership and resource-sharing, as well as economic opportunities for state and local agencies, and private companies.
A report on California Competitiveness Pro-ject, conducted by Bain & Company, re-vealed startling results. In March, Bain & Company’s JJeff Melton said that 100 per-cent of senior executives viewed California business climate as unfavorable. Bold legis-lative actions are imperative, according to Melton, to restore the region’s economy.
Keeping mobility going is the key to South-ern California’s economic stability. At the April meeting, DDiane C. Eidam, Executive Director, California Transportation Commis-sion, and RRoger Snoble, CEO, Metropolitan Transportation Authority, gave an update on the transportation infrastructure.
Another transportation issue that will affect business in LA region is the LAX expansion. LA City Councilwoman CCindy Miscikowski,11th District, described her outreach proc-ess to the community to gain insight into areas of agreement on the modernization of LAX in the “Consensus Plan: A Vision for the Future of LAX.”
In May, DDavid A. Furhman, Managing Direc-tor of Marsh & McLennan, reported on the reform of the California workers compensa-tion system. He noted the 3 ingredients for reform—a motivated Governor, a business community prepared to spend political capital to deal with the problems, and em-ployees and labor’s recognition that jobs and wage increases were at stake.
More than 50,000 jobs and $300 million contribution to local economy are also at stake if the Los Angeles Air Force Base is closed down according to JJoe Aro, co-chairman of LA AFB Regional Alliance. In January 2005, Aro urged businesses in the LA region to fight to keep the base in Southern California.
Also in January 2005, Dean YYash Gupta of USC Marshall School of Business called attention to the need for a dynamic curricu-lum that keeps up with the ever-changing business climate. He emphasized the im-portance of building relationships between the school and the business community.
AND FINALLY…
At the request of LAEDC Chairman Rod Banks, LAEDC Investor Relations produced the new and improved LAEDC name badges. They were introduced at the April 2005 meeting.
Page 11 LAEDC Business Leader, Spring/Summer 2005
Highlights from 2004-2005 Board & Membership Meetings
David Furhman of Marsh & McLennan
Mark Horiki of Panasonic Disc Manufacturing
LA Mayoral Candidates at Board Meetings Mayor James Hahn and
Mayor-elect Antonio Villaraigosa
John Lawrence of Lawrence Equipment
Amy Grat, LAEDC Director of Investor Relations, handing Rod Banks his extra large new badge.
444 S. Flower St. 34th Floor Los Angeles, CA 90071 Phone: 213-622-4300 www.laedc.org
As the premier business leadership organization, the LAEDC’s mission is to attract, retain and grow business and jobs in the regions of Los Angeles County, as well as to identify trends and effect positive change for the local economy.
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BUSINESS LEADER is published quarterly by the LAEDC Investor Relations & Corporate Communications Department.
