During the pandemic so many businesses are suffering. But there is one industry that is actually thriving….Movers! In this FOX 5 KVVU-TV video we see the boom in business that moving companies are encountering as there is a ‘Mass Exodus’ of people moving out of California.
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Coronavirus and the Flicks
Every single industry has been impacted by the novel coronavirus, some more than others. In Los Angeles and Hollywood, the media industry is being severely impacted and here we take a brief look at what is going on there.
A lot of TV and film recordings have been delayed indefinitely. One example of this is the James Bond movie – No Time to Die – which has been put on hold until 2021. This means that there will big no big movie releases in America until Christmas.
As such, a plea to Congress was made by the Motion Picture Association to receive government financial aid for cinemas, claiming that without such assistance they were likely to face annihilation. A letter was written to lawmakers which stated that:
“If that status quo remains, 69 per cent of small and midsized movie theatre companies will be forced to file for bankruptcy or to close permanently.”
Is it all doom and gloom? Not necessarily. In Los Angeles Netflix Inc. has just signed a new lease for a space on W. Empire Avenue at the Burbank Empire Center. The 171,000 square foot property is LA’s largest new office lease. Owned by New York Life Insurance Company, Netflix will initially just utilize 150,000 square feet. At the beginning of the pandemic, Netflix Inc. acquired the Egyptian Theatre located at Hollywood Boulevard. The property – purchased from the American Cinematheque – changed hands in May 2020. In addition, Titmouse Inc., leased
Home Purchase
“Location, location, location” said realtors for more than a century. That is changing. With more people being allowed and able to work from home and an increase in fear of being physically near to others, “location, location, location” is losing its power. Instead, people are more focused on what is in the house rather than its whereabouts.
The drive to stay in Los Angeles (as well as other large metropolitan regions) is diminishing. This is actually good news for the home buyer. According to California Association of Realtors Senior Economist Jordan Levine:
“That affordability motivator for going to a place where they can actually afford to be a homeowner is still there, and now they’ve got that wind in the sails in terms of that flexibility to be able to do that while still keeping their California-based jobs. Areas that are more affordable and folks can actually achieve home ownership now that they’re not strapped to these more dense, urban areas.”
For those who have long wanted to purchase a home but have not been able to do so until now, this good be a prime opportunity. Many homes in Southern California are being sold at the lowest levels for years.
Optimism in LA
The coronavirus continues to wreak havoc on our everyday lives but there are some individuals and businesses determined to ride the storm and work toward development and growth. One such example is The Grand – a complex being built at a cost of $1b in downtown LA. Featuring residential units, a luxurious hotel featuring over 300 rooms, restaurants, stores, 430-seat cinema complex, a residential 436 luxurious unit tower and more, is located across from the Walt Disney Concert Hall.
Designed by architect Frank Gehry, it is currently 50% complete. This, despite the fact that many other local facilities are emptying out at a rapid speed. Gehry himself – being 91 years old and thus classified as high risk – is hardly visible at the site as his aides try to shelter him! But it’s still forging ahead.
Also invested in the project is Core USA (which is a venture between China Harbour Engineering Co. and CCCG Overseas Real Estate, a subsidiary of one of China’s largest state owned companies – the China Communications Construction Group). An investment of $290m in the Grand has been made by this venture.
In related optimistic local business news, thanks to the Fresh Air Eats promotion, many restaurants are faring better including Downtown Lafayette. With the space to adequately social distance, Mary Buckley – one of the owners of Bistro 51 reported her optimism. On the first weekend on the venture she reported:
“Last weekend was phenomenal, better than we expected. We knew it was going to be a great experience. But we didn’t realize how well it would be received.”
The Fresh Air Eats program is set to be in operation through October 4th 2020.
Local Coronavirus Updates: More Aid Available
There are often updates about extra financial aid being offered to businesses during the coronavirus pandemic. Still many SME owners feel they miss the boat on the efforts being made by local and federal entities.
As such, it is good to hear about how LA city and county have banded together to help. A $98 million grant program has been developed for those organizations and companies that have been left behind. Money will be given first to the firms that are based in low- moderate-income communities and/or owned by veterans or those whose gross revenue is less than $500,000.
Supervisor Mark Ridley-Thomas explained:
“Six thousand entities will be made better as a result of these resources — anywhere from $5,000 to $75,000 per entity.”
While the Los Angeles Regional COVID-19 Recovery Fund has to date awarded $3.2 million in grants to more than 300 enterprises, the additional money will hopefully really bring relief to entrepreneurs, small businesses and all others struggling. Monies will be given out anywhere in between $5,000 to $25,000.
In addition, Kathryn Burger, Los Angeles County Supervisor pointed out that:
“The COVID-19 pandemic has devastated communities across Los Angeles County with significant health and economic impacts. The L.A. Regional Recovery Fund is one of many efforts led by the county to help our residents and businesses get through these challenging times and emerge stronger than before.”
This is the city’s fourth round of relief.
LA Living: Is It For You?
In this video – put together by YouTuber Brett Conti – we take a look at the advantages and disadvantages of LA living and compare that to NY living. Take a look see!
Recent Board Appointments
Even though hiring has for sure slowed in the last few months during the coronavirus crisis, there are still some places that are surging ahead in their business dealings. Here we take a look at a few of the local ones in the hope of feeling optimistic about the region’s economic future.
The City of Los Angeles’ official tourist marketing organization – the Los Angeles Tourism and Convention Board – just appointed interim CEO and president Adam Burke to the full position. He has been with the firm for the last four years when he joined in the capacity of COO. Earlier this year, following the retirement of Ernest Wooden Jr. from the leadership positions, Burke took over in an interim capacity. Of this appointment he said:
“I am incredibly grateful to our board of directors for the privilege of serving Los Angeles Tourism in this new capacity. Ernie Wooden built a world-class team during his tenure, and I look forward to continuing to work alongside our innovative team of destination experts as we navigate these truly unique circumstances. Tourism is an absolutely vital part of the Los Angeles economy, and our collective priority is to safely welcome visitors while responsibly getting Angelenos across our leisure and hospitality community back to work.”
Two new appointments to the Senior Advisory Board were also recently made at international healthcare investment firm, HealthCare Royalty Partners. On the appointments, HCR’s Managing Partner and Chairman, Clarke B. Futch said:
“We are pleased to welcome Bill [William M. Burns] and Mardi [C. Dier] to our Senior Advisor Board. Both are accomplished and seasoned leaders in the biopharmaceutical industry which will benefit HCR in sourcing and evaluating potential products of interest, particularly in Europe and on the West Coast.”
There are also vacancies available locally for those who do not have executive leanings. One example is the region’s newest football stadium which is looking for thousands of new employees. According to SoFi Stadium‘s Managing Director Jason Gannon the venue – which came at a price tag of $5 billion – is nearly finished and once that happens they will be seeking out around 3,000 part- and full-time employees. Gannon explained:
“We’re just a few days away from getting our occupancy permit. For event-day personnel, we’re looking to hire about 3,000 people, and several hundred non-event day positions… In Inglewood we’ve had over $92 million worth of contracts on the project to date (that went) to local Inglewood residents.”
More Relief for Small Business in LA
With the coronavirus still in full swing and so many individuals and communities continuing to suffer, any assistance that is offered is very welcome. Our Mayor – Eric Garcetti – just announced more funds to be put into the fiscal recovery program. He said:
“We are investing an additional $10 million this evening in funds for the LA Regional COVID-19 recovery program. This comes on top of an existing $3 million pot already dedicated to this initiative. We now will be able to offer grants, not loans, but grants to the small businesses and nonprofits that are the lifeblood of our economy. And this funding is designed specifically to assist out most vulnerable businesses who did not get served by our federal Paycheck Protection Program. Maybe because they’re underbanked, maybe because they didn’t have the staff, but we know too many small businesses, especially on our main streets, Black-owned businesses and immigrant-owned businesses, women-owned businesses and family-owned businesses were not helped enough.”
It is hoped that this aid will help more small business stay in operation and thus limit those losing their jobs.
To date, over $53.4m has been given to over 500 small businesses in loans thanks to the California Credit Union which has gotten the money through the SBA Paycheck Protection Program (PPP). It has been estimated that this money has managed to save (or repair) around 5,000 southern Californian jobs. According to Steve O’Connell, President and CEO of the California Credit Union:
“Small local businesses are the backbone of our economy, and the SBA program has been an absolute lifeline to help these businesses survive the pandemic. When the program launched, our team immediately jumped into action, working seven days a week to help them access these funds, which in many cases were the only option to keep their doors open, the lights on, and staff on payroll. To meet demand, we redeployed and trained staff from other credit union areas, who have worked around the clock to assist members and submit applications. We continue to receive letters and emails from local businesses thanking us for our help, which show us the real impact this program is having in supporting the financial health of our communities. As a preferred SBA lender, we’ve been committed to serving businesses in our communities since 2008 with our business banking services. We are fortunate to have the business banking expertise and infrastructure in place to rally our resources, move quickly to make the application live as soon as it was launched, and help our business members access the program in both rounds.”
For sure there are still many – too many – who have lost their jobs or businesses, but this is a start.
Glendale Community, LA: Giving Back
Veterans should always be respected and appreciated. Thankfully COVID-19 has not disturbed at least some of the endeavors that are carried out for this group.
At the end of June, a donation was made to the Center for Veteran scholarships at the Glendale Community College Veteran Services Center. This was presented by Dr. Teresa Leyba Ruiz, President of Glendale Community College, Robert Heidt, President of the Glendale Chamber of Commerce. Many other staff members of the Glendale Community College were present when the $40,000 check was handed over.
Some of the monies came from an event that took place earlier this year – the twice yearly Mayor’s Big Dog Runs. This is organized in conjunction with the Glendale Chamber of Commerce Military & Veterans Affairs Committee. At the time – back in February and pre-COVID-19 – over 1,5000 motorcycle enthusiasts attended to show their support to US military.
Mayor Weiers explained:
“When I started this event several years ago, I could have never imagined how big this event would get this year. This event allows me to showcase the West Valley and highlight the amazing venues we have but most importantly give a scholarship donation to GCC and help those who’ve made the ultimate sacrifice to serve our country.”
Other event supporters/sponsors include: Arizona Organix, Dutch Bros., Freddy’s, Glendale Chamber of Commerce: Military & Veterans Affairs Committee, Glendale Community College Veteran Services Center, Luke Air Force Base 56th Fighter Wing, Phoenix Raceway, Sanderson Ford, Shane’s Rib Shack, State Farm Stadium, Swire Coca-Cola Glendale and Westgate Entertainment District.
Barry Brand on Costly Law Enforcement Errors
Last month, the police made an error that was not only costly to Barry Brand financially but also to his reputation. Barry Brand –president of Arroyo Verde Farms – was not the only one who was negatively impacted as a result of the actions of the Santa Barbara County Sheriff’s department
The police raid on Arroyo Verde Farms resulted in a confiscation from Brand and others not only of a huge amount of money ($620,000) but also valuable amounts of cannabis oil (1,800 pounds). Procan Labs (another company that lost products in this police raid) took the case to court and last month Judge Anderle ruled in favor of the operators and against the police. As such the Sheriff’s office was ordered to return everything it seized during the raid.
John Armstrong, the lawyer representing Procan Labs, said:
“Licensed cannabis operators should not be at risk of losing their business because police mistake lawful cannabis operations for illegal black-market activities. This decision shows that our courts will side with the cannabis industry when provided evidence of good-faith efforts to comply with state regulations.”
One current problem is that according to U.S. law, police have substantial powers which permit them to easily undertake raids and confiscate products and cash if they have any suspicions that a crime is potentially being facilitated. Indeed, in the last two decades, police have confiscated a staggering $36.5b in assets from companies and individuals they deem suspects. Many of these were and are never charged with a crime. It is nice to see those like Barry Brand and Procan Labs who are fighting back against these unlawful confiscations.