Businesses of all types must know how to use the Internet to their advantage in order to successfully navigate today’s world of commerce, according to Mark Goldston, chairman, president and CEO of United Online.

In a speech at the Valley Economic Summit on May 13 in Universal City, Goldston gave advice on how to adapt to today’s fast-changing business climate.

Goldston said that he is convinced that more companies will be going to Internet-driven direct-to-consumer techniques and cutting down on the number of brick and mortar facilities that they have. This brings down both labor costs and rent.

Goldston said that his two sons have started a high-end athletic shoe company that is selling only on the Internet.

“You’re going to see a lot of big companies do this over the next 24-36 months,” he said.

Because more and more people have so-called “smart phones” such as iPhones, companies will need to have mobile applications for those devices in order to capture sales.

“People who can pay $50 a month are connected to the Internet all day,” Goldston said. “This will affect the way business is done.”

With a broader comment on the overall economy, Goldston said consumers are changing the way that they spend. Spending is up but savings is down, he said, and much consumer spending is being fueled out of savings. So people are migrating to more value-based products.

Businesses need to be aware of this, he said.

Goldston was one of the keynote speakers at the annual summit put on by the Valley Economic Alliance. The other keynote speaker was Peter Lowy, Group Managing Director of Westfield Group mall operators.

The summit included the release of the Valley economic and real estate report and several panels focusing on such issues as green businesses, real estate, trade as well as trends in key industries.

Peter Lowy of the Westfield Group real estate company was one of the keynote speakers at the 2010 Valley Economic Summit. He had plenty to say about the future of the company’s growth in Southern California.

“California’s economy is broad, diverse and wealthy,” said Lowy. But the biggest problem, in terms of Westfield’s local growth plans, is the state’s budget deficit and poor credit rating, he added.

“Westfield has $9 billion in assets in California, but we can’t grow if the state keeps going in the same way,” he said. business leaders would do well to get involved in the decision making process in Sacramento.

Westfield Group is a publicly traded retail real estate company with an equity market capitalization of approx. $27 billion. It has investment interests in 119 shopping centers in the U.S., United Kingdom, Australia and New Zealand.

The company’s local portfolio includes the Westfield Topanga mall and neighboring Promenade, Valencia Town Center, and Fashion Square in Sherman Oaks. It has a total of 30 malls in California.

Moving forward, Lowy said Westfield is committed to its local investments. And regional malls will be going through some changes.

Adaptation is what ensures the success of retail properties, he said, adding Westfield is only doing business with 10 percent of the retailers it was doing business with in 1990. “The key is to be on top of the trends.”

In the future, regional malls will be offering a wider range of goods and services, versus just being focused on fashion. There will be more discounter anchor stores, and Lowy wants to get super markets and fitness centers in malls.

“There’s no reason Target can’t be in the same mall as Nieman Marcus,” he said, adding Topanga mall is one successful example of blending the two. And the food court model may be a thing of the past.

Another major trend is the move from urban sprawl to urban density. Building mixed-use developments that blend retail, residential and easily accessible transportation is one of the company’s focuses.

Big box

The goal is to not just create shopping centers, said Lowy, but to create an escape that also fosters social interaction. He also wants to bring a larger number of big box retailers under one roof.

What about the future of Topanga mall and the Promenade?

Lowy said you really can’t compare the two, in terms of their financial performance. Topanga mall, which Westfield bought in 1994, has always performed better than the latter. The Promenade was purchased in 1998 for the purpose of expanding Topanga.

One plan is to connect the two and add a mixed use development with residential in-between. But the plan is logistically difficult because there are two major streets that need to be bridged.

He said Westfield is very interested in the Valley. But it’s working on a long-term plan for Topanga and the Promenade. “Whether the Promenade will end up the same is a question,” said Lowy.

Mixed-use panel

One of the panel discussions at the summit, which ties into Lowy’s statements, dealt with L.A.’s mixed use developments. Gene Detchemendy, president of Detchemendy Retail Real Estate, moderated the panel. It discussed what’s working and what’s not in L.A.

Mark Salma, director of real estate for Ralph’s, The Kroger Company, talked about the success of Ralph’s downtown, which is part of a mixed use development at 9th and Hope. It was a slam dunk because there was land and demand, he said. “Ralph’s wanted to be there.”

The residential component was already under construction. But one of the most difficult parts has been operating a busy commercial complex in a way that does not disturb residents.

The company bases its decisions on whether or not to pursue a development largely on sales forecasts. But Salma said it’s also important to think outside of the box.

Some of the downtown project’s numbers never penciled out, said Jeff Kreshek of CIM Group, but the demographic intricacies of the area made it work. And residential over retail has been used successfully in Europe and elsewhere for centuries.

Be careful

But developers need to be careful when mixing residential and retail, said Kreshek. You need to know what tail is wagging the dog, he said. Retail located on the wrong street, or the wrong type of retailer, can kill a project.

“You can ruin a project in three retailers or less,” he said.

Mixed use has a great future but also has to be done in context with what’s around it, said Brad Rosenheim of Rosenheim & Associates. He has seen some developments not fill up and go back to the city for a variance to change the use to office or medical.

“The key is developing the community as well as the development,” said Rosenheim.

Negotiating with cities is also tough, he added. Developers need to stand their ground, because there’s a certain point where too many requests from cities will kill a project’s viability.

One challenge of building mixed-use in L.A. is finding an aggregate amount of land, said Christopher Alan, CEO of Dasher Lawless. So his company focuses on finding niche properties that are too arduous for larger developers to piece together.

And adequate parking is key. “If you can’t park it you’re not going to build it,” said Alan.

Paige Serden of City National bank said obtaining financing for mixed use developments boils down to whether the project is financially viable and the developers have experience blending different product types.

The overall Economic downturn is by far still the biggest problem facing Valley businesses, according to an annual survey released by the Valley Economic Alliance and California State University, Northridge. But many of these same firms see hope on the horizon. According to the survey of medium-sized companies (those with 50 to 100 employees), 47.6 percent of those responding said the economy was their No. 1 problem. Virtually no one cited any secondary issue that concerned them. About three-fourths of Valley businesses anticipate no change over the next year in facilities or employee compensation, which in a sense is good news due to the contraction by some businesses in the past few years. “There’s a recovery out there; it’s slow,” said William Roberts, director of the Economic Research Center at CSUN and the presenter of the study at the Valley Economic Summit. Although sales were down last year for almost two-thirds of Valley businesses, 80 percent of Valley businesses anticipate unchanged or increased sales in the coming twelve months. The 2010 survey was conducted by California Survey Research Services. That firm contacted over 500 companies completing 85 interviews. They were asked to identify the most pressing issues for them and asked questions concerning competition, employment, sales and costs. Medium-sized businesses were selected for the survey because they are large enough to require systematic planning but are unlikely to be so large that they are influenced by events outside the Valley. Some of the other findings of the survey include: • For the coming year, 57.1 percent of firms expect their workforce to stay the same over 2010, 27.4 percent expect to add workers and only 15.5 percent expect a decline. • health care costs will remain a major worry for businesses in the coming year as 55 percent expect cost increases to continue in 2010. The survey also asked whether business owners were considering moving their operations out of the Valley sometime in the next two years. Most (77 percent) said no. Of the 23 percent of businesses considering moving, 53 percent said they were considering moving out of state. Why do most business owners say that they’re not considering moving despite complaints of a high cost of doing business in L.A. and California? “Location, location,” Roberts said. In other words, 61 percent said the Valley’s location in terms of proximity to workers, market and shipping facilities kept them here. Many said they liked being near a large bilingual pool of workers.

In my recent meetings with business owners and managers whether it has been through one-on-one contacts or at networking events, I’ve been asked the same question several times: What’s 2010 looking like for the local economy and for businesses?

My first response to the businessperson asking the question is: How are things at your business and in your industry?

And this is what I’m finding – there’s been a big change in perspective among local businesspeople over the past year or so as the economy slumped and things got very, very difficult. This change seems to be across the board in all industries and professions.

So, what is that change in perspective? It’s multi-faceted, but if you boil it down to one thing I guess it would be realism.

Not to say that local businesspeople weren’t realistic in the years leading up to the downturn, it’s just that some of them were living in the moment and expecting things to keep booming forever.

Here’s a list of the elements that make up the change in perspective of local business owners and managers. Feel free to add and refute. These are just my observations:

1.They’re thinking about the future every single day. Many that didn’t have any type of five or ten-year plan have one now. It may not be written down in detail but it’s pretty well firmed up in their mind. And they know that most of the decisions they make in any given day need to take the future into consideration.

2.

The rules of engagement are different. In other words, owners and managers are more willing to talk about their business problems with outsiders. There’s less BS in conversations. Because they know that other people suspect business may not be very good and they will look silly if they say that it is. If there is one positive thing the downturn brought about it is that businesspeople are more willing to actively seek help from other businesspeople either through organized networking or just casual conversation. Everybody has been in the same boat so we’re all more comfortable with each other.

3.

Things are more immediate. Whether it be looking for little ways to cut costs or dealing with human resources problems, owners and managers aren’t putting things off as much as they did in the past. They all know that it’s the little things that can bog a manager down and these little things can distract them from growing their business.

4.

There’s a stronger focus on innovation and creativity. Even owners of places such as auto body shops which provide basic services that customers can’t do without know that they must make themselves distinctive. Customers are a lot more choosy than they were in the past and they’ll just go somewhere else unless they really feel the service is special or different.

5.

A Brave New World. People who have been downsized by companies or are losing their businesses are fearlessly setting out and starting new businesses. There’s something about not having any security – you do things you ordinarily wouldn’t do when you are fat and happy. You have much less to lose. It’s only natural.

So, those are the top five. It is a brand new day in business but some of the old problems exist, the biggest one being how to create more jobs. Time magazine’s current issue has a pretty interesting and very relevant story about jobs – where they are and how to get them.

As other Economic signals have improved, the jobs problem is still horrible. The magazine article states that there’s only so much the government can do to create jobs in the short term other than throwing some money at the problem. The fruits of government initiatives in trade, education etc. take a long time to be realized. This leaves private enterprise as the only place to create jobs immediately.

But creating jobs is a tricky thing. A company must know exactly what products or services are in demand and what is the cheapest way to deliver them.

Perhaps there should be a local jobs summit where representatives of private enterprise get together and brainstorm how to move our economy in the direction of creating more jobs. This could include the introduction of new industries to the area or vastly reconfiguring the industries that currently exist.

Newhall Laboratories Inc. is banking on a new line of hair-care products formulated specifically for African American women to grow the company.

Newhall Laboratories launched an advertising campaign for GroWorks that included nationwide product sampling that began on Martin Luther King Day in major markets such as New York, Los Angeles, Washington, D.C., Dallas and Houston.

GroWorks has been in development for approximately two years under the careful direction of Newhall Laboratories.

“The stylish African American woman has been underserved,” said newly appointed CEO, Lee Feldman. “Our products provide unmatched quality that enhances hair at a very affordable price point.”

Feldman believes the new product line will also appeal to a range of customers beyond its target market.

Van Nuys Airport General Manager Selena Birk is leaving that position to make a lateral move to Los Angeles International Airport.

Birk has been at the Valley airfield for 10 years and a visible presence in the business community. She has served on the board of the Valley Economic Alliance and honored in 2006 with the Woman of Distinction Award by the Business Journal.

Her new position at LAX includes handling federal compliance, landside operations, permitting for contract employees for the airlines, and planning for non-aviation emergencies.

Birk has been a stabilizing force at the airport and will be missed, said Economic Alliance President and CEO Bruce Ackerman.

“She is a good community person,” Ackerman said. “She focused on aviation and making sure Van Nuys had the best reputation possible.”

Jess Romo, the general manager at LA/Ontario International Airport, will split duties as the new general manager for Van Nuys beginning March 1.

Ontario Assistant General Manager Kim Ellis will become the on-site manager at Van Nuys.

Romo and Ellis have been at their positions at Ontario Airport since 2006.

Tix Corp. has acquired the assets of All Access entertainment, a discount ticket service with five facilities in Las Vegas.

All the locations are being converted to locations of Tix Corp. subsidiary, Tix4Tonight.

The new facilities bring the total number of Tix4Tonight locations in Las Vegas to 13. All Access entertainment President Metin Durmus will provide consulting services to assist the company during the transition.

“The All Access ticket facilities are located at complementary sites, where Tix4Tonight does not have stores,” said Mitch Francis, chairman and CEO of Tix Corp.

Zaya Younan is convinced many office real estate markets in the U.S. have hit bottom. And he’s wasting no time shifting Woodland Hills-based Younan Properties back into acquisition mode, which may involve tapping public markets.

“There’s evidence the recession is leveling and deterioration slowing down,” said Younan. “The economy is still weak and fragile. But now it’s like a patient in a hospital being able to move around again. And I expect positive trends in office.”

Younan said the company has spent the past two years strengthening its infrastructure. It increased its head count by 10 percent, including hiring many former Arden Realty executives. Most recently he brought on Robert Peddicord, Arden’s former COO.

The company is currently studying market opportunities in Dallas, Houston, Chicago, San Fernando Valley, West Los Angeles, San Francisco, and Seattle. And Younan anticipates announcing a significant pipeline of acquisitions in the third quarter of 2010.

“We have strengthened our infrastructure to prepare us for the next stage of growth, which we believe is a once in a lifetime opportunity,” said Younan. “It’s a good market for companies that are well capitalized to acquire assets.”

Younan Properties, which he founded in 2002, is a privately held real estate investment and asset management company that acquires and manages Class A office properties in top office markets nationwide.

Its portfolio includes more than 11 million square feet of space valued at more than a billion dollars. And the company employs 150.

From 2002 to 2006, Younan focused largely on acquiring and managing assets in Southern California, including the San Fernando Valley. But the market heated up and cap rates compressed, so the company sold its local assets and focused on markets such as Texas.

Younan Properties now has office buildings in Dallas, Houston, Chicago, Phoenix and the Valley. Two prominent properties in Dallas are the 50-story Thanksgiving Tower and 34-story KPMG Center.

“Texas is a very powerful state, and more importantly it’s located in the center of the country where companies can ship product,” said Younan, adding in a short period of time, the company became one of the largest office owners in Dallas and beyond.

Focusing on Texas and elsewhere allowed it to continue growing while the bottom fell out of California’s commercial real estate market, he said. But California’s strained commercial real estate market is precisely why the company is back to acquiring locally.

In the past two years it slowed acquisition activity nationally. But two deals were done right here in the Valley. One was the WarnerView Corporate Center located at 5959 Topanga Canyon Blvd. in Woodland Hills.

The Valley is not a big office market for the types of properties the company typically acquires – Class A office with 100,000 square feet or more, he said. But there are a few assets the company is interested in, primarily in Encino and Woodland Hills.

“We feel the Valley, Southern California and parts of Northern California were severely impacted and the industry has bottomed,” said Younan. Many investors are waiting for a fire sale to happen, he added, but frankly, the latter is not likely.

If current macro-Economic indicators continue in a positive direction, Younan predicts a significant shift in demand for office and retail in Q2 2010.

Historically, Younan funded growth from internal sources and a small percentage of outside investments. And loose credit markets made it possible to leverage that money. But that strategy is no longer viable, he said, given today’s tight credit markets.

So the company is pursuing a lower cost source of capital for expansion: public market financing, he said. All options are on the table such as doing an initial public offering, becoming a real estate investment trust (REIT), merger and/or acquisition, and others, he said.

Younan is convinced the company is well positioned for such a move, because of all of the work it has done beefing up its executive team and infrastructure, acquiring and managing assets nationally, and showing a track record of results.

Some of the former Arden Realty executives now working for Younan include: Robert Peddicord, chief operating officer; Andres Gavinet, chief financial officer; and Terry Smolich, VP of Human Resources.

At one point, Arden was a publicly-traded REIT and one of the largest office owners and operators in Southern California. General Electric acquired the company in 2006.

“In order to qualify for public financing, you need to be a great operator,” said Younan. “We’re in some of the top 10 office markets, a national company, and we can gauge the best time to invest in certain markets.”

As layoffs mounted during the recession and employers shed workers to keep costs down, the number of discrimination claims also went up nationally and in California.

For a 13-year period, the Equal Employment Opportunity Commission showed the highest number of discrimination filings during the 2008 and 2009 fiscal years – the time period when the bottom fell out of the U.S. economy and businesses across all industries resorted to layoffs.

Of particular note was the number of age discrimination filings. In the 2007 fiscal year there were only 19,000 cases filed by the federal agency but that number leapt to 24,500 in fiscal 2008 and dropped slightly to 22,700 in fiscal 2009.

In California, the Department of Fair Employment and Housing also had a similar rise in the number of age and disability claims filed against employers in 2008.

While not all the filings may be valid they do say something about how workers responded to losing their jobs. That the ranks of mid-level management shrunk as a result of cuts could help explain the increase in age discrimination filings, especially if those workers were confused over why they were let go.

“When you have mass layoffs they might not know all the reasons and when they are unemployed they bring claims,” said Kristine Kwong, an attorney with Hinshaw & Culbertson in Los Angeles and a board member of the Los Angeles chapter of the National Human Resources Association.

While the EEOC has historically seen a rise in filings during Economic downturns it is still only an educated guess as to why the numbers are up.

In fiscal 2008 there were 95,400 total filings and 93,200 in fiscal 2009. In comparison, the commission had a total of 82,800 in fiscal 2007.

“Anecdotally, overall there does seem to be more discrimination at those times,” said EEOC spokesman James Ryan.

In a bad economy with displaced workers not being able to find another job in a reasonable period of time they may be more susceptible to thinking they were wronged in some way.

How an employer handles layoffs can diminish that susceptibility.

If the mystery for the “why” is not taken away an employee will think the worst possible motive for their termination and that is when they lawyers enter the picture.

“When people are laid off they are going to be looking for ‘Why was it me and not so and so next to me?’” said Susan Strauss, a workplace consultant based in Minnesota.

Straus has heard from human resources director and managers that they have employees they want to let go but won’t because of fears of being sued.

To protect themselves, employers need to document as much as possible the process of letting employees go, treat them respectfully and be upfront for the reasons why.

When newer employees are let go it often falls to senior workers to pick up that load and that can create unanticipated hardships. Suddenly these employees are accountable for work that other people used to do and that may lead to performance issues that can result in disciplinary action and finally termination.

If the layoffs are out of necessity, the HR director and the company’s chief executive should come to a consensus on who is to be let go and document it in objective paperwork and analysis, Kwong said.

Even with that process there may be a significant number of employees of certain age or gender but at least the company can back up its decision.

“If people see a pattern, then you must be able to explain a pattern or if you’re concerned you need to check it again,” Kwong said.

When the fiscal 2010 stats are available from the EEOC in a year it will give a better picture of the connection between the recession and the number of discrimination filings, Ryan said.

Employment law attorneys and human resources directors throughout the state anxiously wait for the California State Supreme Court to rule in a case that could have wide ranging implications.

Depending on how the justices rule in Brinker Restaurant Corp. vs. Superior Court, the decision may cost businesses millions of dollars and place new responsibilities in monitoring meal and rest breaks for their employees, or it may mean a whimper rather than a bang for pending class action lawsuits.

Since 2008, the Brinker case has wound its way through the state court system. At its simplest it seeks clarification of whether employers must merely offer meal and rest breaks and leave it to the employees to take them, or if the company must mandate the breaks be taken.

It’s the latter that opens the door to ensuring the 30-minute meal period is taken away from the employees desk, that it not be interrupted, and that the full time be taken and recorded.

“On some level what employers are hoping for is a reasonable approach where (the justices) say you are not responsible for babysitting the employees,” said Richard Rosenberg, an attorney with Ballard Rosenberg Golper & Savitt LLP in Glendale.

While Brinker is the most anticipated case it is not the only one state and federal courts judges will rule on that affect the business community.

Also pending are cases involving holding corporate officers and directors liable for failure to pay overtime and wages; allowing unprofessional comments from management in termination cases; if an arbitration clause can cover wage claims; and if nonresidents fall under California wage laws when working for a California company.

The last case was in the federal 9th Circuit Court of Appeals until the justices withdrew their opinion to allow time for the state Supreme Court to give its guidance.

With the courts shaping relations between employers and their workers, human resources managers and directors don’t have the option to ignore developments taking place in courtrooms.

In the HR consultancy run by Michael Colitti, he and his business partner reinforce to their clients the importance of keeping up with changes in employment law.

“They are not just paper pushers,” said Colitti, of Holman HR in Northridge. “It is much more important to have an understanding on the legal issues that are out there.”

That can be difficult to do if the resources to stay current are not given to the human resources department. Companies without a dedicated HR director can also find themselves in trouble because they are unaware they have to record when an employee takes a rest break.

“I hear that all the time; I really do,” said Dawn Kaplan, a consultant who doubles as the human resources director at the Child Care Resource Center.

In the Brinker case, however, it was an owner of chain restaurants (Chili’s Grill & Bar, Romano’s Macaroni Grill, and Maggiano’s Little Italy) that came under fire for violations of not giving meal breaks to employees working five or more hours; and not giving a 10-minute rest break for every four hours worked. Employees can receive an extra hour of pay for a violation.

Until the Supreme Court gives its decision, HR consultants and employment law attorneys advise clients to enforce the rules and documents when employees are taking the break.

If there is a familiar refrain it is about the difficulty of following up the breaks are taken. There can be instances where stopping for a half hour lunch is inconvenient, and while the employee doesn’t knowingly break the law their employer can still be held liable.

Policing employees

“We hope the case goes in a direction to make it available but we don’t have to police it,” said Lori Crawford, vice president of human resources for internet and social networking provider United Online.

Plaintiff attorneys tend to include rest and meal break violations in any type of workplace lawsuit, including discrimination, because of the potential payout at the end of the case.

With an employee being able to collect up to an extra two hours of pay for missing the breaks, the cost to a business can quickly add up if found in violation.

“That is why Brinker is so huge,” Rosenberg said.

For the past two years Rosenberg’s firm has hit clients over the head with the importance of being in compliance. But for every company that has a lawyer giving that advice there are many others lacking representations.

That is why for smaller companies it becomes even more difficult to stay in compliance and opening themselves up to litigation.

“They do not have the wherewithal to keep track of the records,” Rosenberg said.

Congress is attempting for a second time to pass legislation to change how workplaces can unionize and how disputes can be settled between employees and management.

If signed into law, the Employee Free Choice Act would be a major shift in U.S. labor relations in that signing a pledge card would replace a secret ballot to bring collective bargaining to a workplace.

The Arbitration Fairness Act, meanwhile, would prohibit mandatory agreements requiring workplace disputes be handled by an arbitrator even prior to there being a dispute. No longer could taking a job hinge on signing such a document.

Both bills had been before Congress in 2007 without success. Now with a Democratic administration the bills have returned although have stalled as lawmakers concentrate instead on health care reform.

While supporters portray the proposed legislation as benefitting employees, others point out there could be wider implications if they are enacted.

In the arbitration bill, for instance, there is the potential for more lawsuits being filed in a state court system already strapped for cash and having to furlough employees to save money.

“The practical matter is it would be a financial nightmare for the state with the increase in litigation,” said Karen Dinino, an employment law attorney with a practice in Westlake Village.

Not just workplace

The act would not apply just to the workplace. Doctor’s visits, accepting credit cards, and buying a new car bring with them forms containing small print about going to arbitration in the event of a disagreement.

Critics say such agreements favor the employer (or company) and keep the aggrieved party from exercising their right to take a case before a jury. The collection of evidence (called discovery in a court setting) is less than that done for a lawsuit and there is no appeals process of an arbitrator’s ruling although California courts are making it easier.

Arbitration is a quicker process and tends to be less costly for the employee because they don’t have to hire a lawyer or pay costs associated with the process.

The trade-off is the result won’t be the same as when a jury is involved.

“There are no arbitrators giving $15 million punitive damage awards,” Dinino said.

Congress and President Obama signaled willingness to eliminate mandatory arbitration agreements in the $636 defense spending bill approved last year. Companies receiving Pentagon contracts of $1 million or more cannot require employees or independent contractors to arbitrate certain disputes.

The California Supreme Court is expected to decide this year if mandatory arbitration agreements can have a shorter statute of limitation period than allowed under the Fair Employment and Housing Act.

Union, yes?

The Employee Free Choice Act has generated much more controversy than the arbitration bill and taken as a sign of labor’s re-emergence under a Democratic president.

If it becomes law, the act requires 51 percent of eligible workers to sign a pledge card in order to start collective bargaining negotiations. If talks fail an arbitrator would step in to impose a contract. Finally, the act strengthens penalties against employers who engage in unfair labor practices.

What gets eliminated is workers voting in a secret ballot to unionize, a concept central to labor relations policy since the 1930s and what has led to claims the act is anti-democratic.

“If 51 percent is all you need the other 49 percent doesn’t get their say,” said Richard Rosenberg, an employment law attorney with Ballard, Rosenberg, Golper & Savitt in Glendale.

Just as contentious is the provision to have an arbitrator set the standard of what pay and benefits a company should give, all matters that currently fall under negotiation. With the Free Choice Act there is now the threat of an outsider making that decision, Rosennberg said.

“That is why business is all up in arms,” he added.

Other pending federal legislation includes the Employment Non-Discrimination Act, of which California already has a similar law; and the Paycheck Fairness Act requiring employers to justify pay differences between the sexes.

For the latter, Dinino recommended that employers document their objective reasons for pay differences.

“You want to have back up for what you do,” Dinino said. “If you don’t back it up you might as well pay when they file a claim.”

Ardwin Freight purchased a parcel of land that once housed a piece of Burbank’s aviation history, according to Lee & Associates. Ardwin plans to build a corporate headquarters and storage facility for its business on the 110,000-square-foot site.

Brett Warner, principal at Lee & Associates-LA North/Ventura, represented the seller of the industrial property, which is located at 2940 N. Hollywood Way in Burbank. Additional terms of the transaction were not disclosed.

“What sold the property is the fact that land parcels in Burbank are rarely available, and this one is on a primary boulevard with high visibility adjacent to the Bob Hope Airport,” said Warner in a press release. “But it’s also nice to know that this historic parcel will once again be productive for the city and community.”

The site had been home to Pacific AirMotive Corp. (PAC) during the early days of flight when iconic companies such as Lockheed Aircraft, Menasco Motors and Flying Tigers Airline were clustered in Burbank. After emerging in the 1920s, Pacific AirMotive became the first FAA authorized turbine overhaul facility, according to Lee & Associates. It’s believed that the jet maintenance company even overhauled one of Amelia Earhart’s planes.

PAC closed in the mid-1990s, and the building was torn down a few years ago. The seller of the property acquired it with plans to build its corporate headquarters on the site. But the company’s growth outpaced those plans and the land proved too small for its needs.

Ardwin Freight, a transportation and freight company, will relocate its corporate offices to the front of the parcel and utilize the rear of the parcel for storage.

Gangi’s New Plan

There are a slew of distressed residential condominium projects being held by banks in the Southland, according to Gangi Development Co. of Burbank, and those condos can be readily re-positioned to enrich communities and provide affordable housing.

Gangi said it is actively seeking these types of projects, with the financial backing of an opportunity fund.

“Banks are holding onto reams of failed or incomplete properties that companies with construction/development expertise like ours can readily complete and re-sell or rent at discounted rates,” said Frank Gangi, president of Gangi Development Company.

The company is well positioned in the marketplace to pursue distressed property opportunities, he said. These projects often come with challenges that the company is equipped to handle because it has expertise in design, real estate law, entitlement and permit services, development services, construction, marketing and brokerages and sales, all in house.

Gangi Development Co. has been involved in multiple housing, condominium conversions, opportunity funds and redevelopment areas since its founding in the late 1940s. It has a track record in creating affordable housing, notably in mixed use settings. Recently, the company completed sales of “Vermont Avenue Lofts”, a 28-unit mixed use project in Glendora. Earlier, its “media Village” mixed use project in downtown Burbank featured 146 units of affordable senior housing.

Retail Reality

Employers are expected to slowly add to Los Angeles County payrolls in 2010, following two years of deep reductions, according to the 2010 National Retail Report by Marcus & Millichap.

While the modest job growth will have a stabilizing effect on the local economy, retail space demand will likely remain soft as an unemployment rate in the high 12 percent range tempers consumer spending.

Following are some of the most significant aspects of the company’s Los Angeles Retail Research Report:

Following the loss of more than 100,000 workers in each of the past two years, employers are expected to add 13,000 jobs in 2010, a 0.3 percent increase. Employment in the retail trade sector is forecast to expand nominally.

After approx. three million square feet was delivered in both 2008 and 2009, completions are projected to total just 1.2 million square feet this year.

Despite slowing construction, tenant demand will remain soft, causing vacancy to rise 60 basis points in 2010 to 7.1 percent. Last year, vacancy spiked 200 basis points on negative net absorption of more than 1.3 million square feet.

Asking rents are forecast to drop 2.1 percent this year to $27.64 per square foot, and effective rents are projected to retreat 3.8 percent to $23.90 per square foot.

Also included in the report is the firm’s annual National Retail Index, a snapshot analysis that ranks 44 retail markets based on a series of 12-month forward-looking supply and demand indicators.

Los Angeles moves up three places this year to No. 6. Washington, D.C., claimed the top spot for the second year in a row due to a low vacancy rate and healthy job growth. Projected job gains boosted San Diego one place to No. 2, and a lack of significant construction in recent years moved San Francisco up one notch to No. 3.

Forecasted job growth elevated New York City four places to No. 4 and continued layoffs dropped New Jersey three places to No. 5, despite low vacancy and the state’s relatively steady economy.