As the current Economic slump persists we continue to see innovation and creativity from the businesses who are successfully surviving the recession. No one has been immune to the effects of the current economic environment, and the local and state governments that were already in financial trouble before the recession hit are especially impacted by the downturn. It’s time for government to take a page from the business playbook and find sources of revenue that do not involve taxation. The city must look at its resources and find ways to leverage them. In March 2008, VICA released a report that outlined 50 ways the City of Los Angeles could balance the budget and get its finances back in the black. Dubbed the VICA 50, the suggestions were separated into two categories: revenue generation and ways to balance the budget. The latter section mostly included ways to reduce waste, collect on money owed and cut unnecessary appropriations. The revenue generation section compiled 10 business-inspired and inventive ways to bring additional funds into the city. One of these suggestions called on the city to identify opportunities for advertising placement on city-owned property, in parks and explore sponsorships for city facilities. The idea was for the city to get the most out of its assets – one of those being the audience it can provide to advertisers. The city has yet to take any significant steps towards implementing any of these suggestions despite its clear need for new sources of revenue. Advertising placement is a viable alternative to increasing or creating new fees and taxes for the city’s business community. The city of Los Angeles is not the only public entity not seizing the opportunity. The Metropolitan Transportation Authority (Metro) board passed on $500,000 annually that it could have used to help ease a $181 million deficit anticipated in the upcoming fiscal year. The proposal would have allowed beer and wine companies to advertise on agency buses and trains. Instead, board members upheld a 1997 policy that banned alcohol and tobacco ads. Reasons for standing by the 1997 policy mostly cited concern for the forced exposure to beer and wine ads with some moral commentary added to the mix. Board members did not want to force passengers to stare at the ads. But when services are cut and those who depend on public transportation are left immobile, an advertisement for an adult beverage will be the least of their concerns.

Agencies and local governments are not the only ones investigating their advertising potential. Gov. Arnold Schwarzenegger is pursuing an idea that would turn overhead freeway displays (the ones that currently provide Amber Alerts and traffic information) into electronic advertising billboards.

The plan faces critics and obstacles that include obtaining a waiver for federal highway regulations, but the idea is on the right track. The Governor is examining the state’s resources and looking for ways to maximize the positive results. If the plan does move forward the signs would be upgraded by the partnering advertising company, so the state would benefit from the improved technology and the additional revenue.

Our governments and public agencies are not in a position to pass up new opportunities for revenue. Many citizens have already come to terms with the fact that significant service cuts must be made, but tapping new revenue sources could prevent some of these painful choices.

As the business community watches our leaders refuse to explore new means of generating revenue, the state and city’s history of using the business community to balance municipal budgets is top of mind. But this is the very practice that has driven businesses out of Los Angeles and California, and will force the ones who do stay out of business.

A few years ago, Alex Schneider posed a radical idea to the City of Ventura. And it wasn’t just about how good the surf was in the beach town located on the 101 Freeway between Los Angeles and Santa Barbara.

He rallied support to use part of the city’s $5 million Economic development fund to create an incubator for early stage high-tech companies. The goal was to complement local efforts to attract high value firms and jobs to a community not known as a tech hub.

“In Ventura there’s kind of this knee jerk reaction that if you’re a technology company you go to places like Santa Barbara and Westlake Village,” said Schneider.

The city and local chamber of commerce liked the idea. As part of a larger investment strategy, the City allocated $400,000 to launch the Ventura Ventures technology Center.

A little more than a year after the incubator opened, a dozen companies have moved in; it has attracted entrepreneurs with a track record of spinning out multi-million dollar firms; and the center is getting ready to expand.

What does this have to do with the San Fernando Valley? There are no centrally located tech incubators in the Valley and the Ventura center is targeting early stage companies that might otherwise open shop in cities like Westlake Village.

“Our market area is a 35-mile radius around Ventura,” said Schneider, executive director of the incubator, adding the number of fast growing high tech firms in the Valley and nearby Santa Barbara has significantly increased over the years.

Connected to city hall

The incubator consists of more than 10,000 square-feet of space in a building connected to Ventura City Hall. It has office space with 76 workstations spread out among private office suites and open flex space.

Flex space is suited for seed stage companies, with one to three employees, interested in networking with other high-tech companies. Private office suites are available for businesses with four to 12 employees.

Tenants pay $200-$300 per month for each work station, depending on the size of the company. Amenities include: high speed Internet; reception area; three conference rooms; break room with kitchen, cable TV and video games; foosball table; free off-street parking; janitorial services; and utilities.

Jeff Green, founder of a media buying company called The Trade Desk, said it was a no-brainer to open shop at the incubator. He is also co-founder and former COO of AdECN, an online advertising exchange company that Microsoft purchased a couple years ago.

“There’s no reason we can’t go and pay higher rent somewhere else, and there are potential benefits to doing that,” said Green, who lives in the Ventura area. “But the city has made it hard to say ‘No.’”

Green helped grow Carpinteria-based AdECN to 50 employees. He left the company in 2009 and founded The Trade Desk. He said the new venture is well-funded and growing rapidly. It now has six employees and he plans to hire more.

“What it has done for us is we’ve been able to open a company locally,” said Green, who at one point in his career commuted from Santa Clarita to Santa Monica. “It’s great for Ventura because the company is providing jobs, and employees spend locally.”

But what about the Valley as an appealing place for a tech incubator?

Green said luring companies is all about location, and there are a lot of places where a tech incubator would not work. But Woodland Hills, with its close proximity to tech hubs like Pasadena and Santa Monica and high quality of life, would be one of the best places.

Valley-area incubator projects include: College of the Canyons’ i3 Advanced Technology Incubator; Valley Economic Development Center’s proposed Pacoima Entrepreneurship and Training Center; and the proposed Gold Coast Bio Center in the Thousands Oaks area.

Andrew Elliot is another entrepreneur sold on the Ventura facility. He founded Lottay, Inc. in 2008, a web site that allows people to give money through PayPal as a “meaningful and fun gift.”

Location and support from the city were key for closing the deal, he said.

“The reason Ventura works well for us is that our team draws from Santa Barbara and Los Angeles,” said Elliot. “The city is also doing a lot to make an environment that works for companies. It’s responsive to requests and needs.”

City investment

The city invested $3 million of its economic development fund with DFJ Frontiers, and the venture capital firm is helping steer businesses to Ventura, said Schneider. The city also created a $1.6 million co-investment fund. Lottay, Inc. received a slice of the latter.

Operating in the incubator has saved the company a lot of money on renting and building-out office space, said Elliot. Tenants can join forces to ask for upgrades. And working five blocks from the beach is pretty nice since many of his employees surf.

The Ventura Ventures Technology Center is getting ready to add an additional 10,000 square feet of space. Officials are exploring the feasibility of offering industrial space. And the center eventually wants to team with a local hospital to offer bio lab space.

The incubator no doubt plays to its strength of being located in Ventura and just blocks from the beach, said Schneider. Its motto is “Where High-Tech…Meets High Surf.” But having a great location is just a starting point.

“The immediate benefit of the incubator is that we’re helping reverse the stigma that Ventura is just a sleepy beach town,” said Schneider. “Now it’s my sole task to build a network in the high-tech economy and get that deal flow in Ventura.”

The scheduled March 27 opening of the final section of the Cross Valley Connector in Santa Clarita will reduce commute times for workers, facilitate access to shopping centers and make the transportation of goods easier, according to business and city officials.

The link joins the 5 and the 14 freeways on the east and the 5 freeway and Rte. 126 on the west. The project, which Santa Clarita began ten years ago, has been planned since 1968, according to Mayor Laurene Weste. The city planned an alternative east-west road that would help alleviate the traffic from Soledad Canyon Road and the freeway. Weste said prior to the connector’s completion, if anything happened on the freeway, surface streets would become clogged.

According to Gail Ortiz, Communication Manager for the city, the project has been completed in phases because of funding issues. In addition to city money, other funding came from the federal government, Metro and Caltrans. Santa Clarita raised the $21 million for the bridge over the Santa Clara River and then was scheduled to host a ribbon cutting to commemorate the completion of the 8.5 mile connector March 27.

Helping businesses

According to Ortiz, the connector will be a boon for employers. She said 1,000 companies and 50,000 jobs will be impacted by the connector.

“Commute times will be reduced,” Ortiz said.

“Every major accident stops commerce in Santa Clarita (without the connector),” President and CEO of the Santa Clarita Chamber of Commerce Larry Mankin said “The connector will move cars and trucks in an orderly manner.”

Lori Wallace, area manager of Rattler’s a rib restaurant in Center Pointe plaza, said many of her employees will get to work faster.

Earl Bayless, president of Bayless Engineering, said that the commute time will be quicker for a number of Santa Clarita workers from the San Fernando Valley and Palmdale and Lancaster. Bayless said 30 to 40 of his 100 employees come from those areas.

Mankin said retail centers such as River Plaza and Center Pointe are expected to see a boost in business, Mankin said.

“We’re excited because traffic gets so backed up,” Wallace said. “What used to take 15 to 20 minutes will now take 5 minutes. It will create much better access to our restaurant.”

Aside from access, transportation of goods for manufacturers and trucking companies will be impacted positively.

According to Kenneth Striplin, assistant city manager, there are no weight limits for the connector, which means 18-wheel trucks can also drive on it.

However, Weste believes the freight companies will probably not make use of the freeway because it is out of their way.

But according to Mike Liu, President of Knight Transportation Dry Van, whose trucks drive on the 5 freeway, the connector could relieve congestion on that road.

For Rattler’s, Wallace says the introduction of the connector will help their catering service and increase speed of delivery for supplies for the restaurant.

President and CEO Barry Gump of Andy Gump, a temporary site service company, has 35 small and medium-sized trucks traveling throughout the Santa Clarita Valley.

“We need all the help we can get,” Gump said of the building of the connector. “If our men can’t move because of traffic gridlock they can’t get the job done.”

Bayless’ company uses medium-sized trucks to transport small metal parts to a plating facility in the San Fernando Valley. Bayless says the 5 has a lot of accidents.

“It will allow for a little bit of Economic impact and little bit of convenience,” Bayless said of the connector.

Weste said a bike route has been built parallel to the connector that links up to other bike routes in the city and to the Metrolink. According to Weste, this could help decrease traffic in Santa Clarita by allowing people to use bicycles more often.

Image entertainment Inc. will no longer be listed on the Nasdaq Stock Market as of Feb. 3 for falling below the required $15 million value limit.

The Chatsworth-based producer and distributor of home entertainment programming expects that its common stick will be listed on the over-the-counter Pink Sheets.

Image will not deregister its stock with the U.S. Securities and Exchange Commission and will continue filing periodic, quarterly and annual reports.

The delisting is the latest bad news for Image, already hurting from a drop in consumer spending on DVDs.

In January the company was notified it was in violation of NASDQ Listing Rules for not having any independent members of its board of directors and not getting shareholder approval for a change in control of the company.

Falling sales contributed to Easton-Bell Sports Inc. posting a net loss for the 2009 fiscal year.

The Van Nuys-bases sporting goods manufacturer and distributor had a net loss of $4.1 million on revenues of $716.3 million for the year ending Jan. 2. For the previous fiscal year, the company reported net income of $13.4 million on revenues of $775.5 million.

For the year both team sports and action sports sales decreased.

In the fourth quarter, there were lower sales of cycling helmets and cycling components in the action sports category. Tight budgets at the high school level contributed to lower sales of football equipment in the team sports category.

Managing employees is never easy, but in today’s economy it can be particularly challenging. Many managers feel increased pressure to do more with less – and in many cases, a lot less. Mistakes will inevitably occur, but managers can avoid some of the most common errors by knowing where the traps lie. By reviewing the Top 10 Management Mistakes below, managers can help safeguard against potential claims and keep the workplace running smoothly.

1. Email Blunders

Scenario #1: An employee emails you that, after 25 years with the company, he is giving some thought to resigning from his position. You write back that you agree it is about time he retire and enjoy his “golden years” and attach information about Social Security and MediCare.

Scenario #2: You have a disagreement with an employee and let off some steam by sending some particularly nasty comments about the employee to your fellow manager.

Scenario #3: You are checking your gmail account from your desk. A friend forwards you a YouTube video that is hilarious yet full of offensive language. You forward it to a coworker you know will love it.

Emails can “make or break” a case that is in litigation. Common email mistakes include:

Thinking emails are deleted after pressing the delete button

Believing emails are confidential if written only to internal management

Viewing emails as a conversation instead of a formal letter

Not reviewing carefully before pushing “send”

Recommendation: Before finalizing any email, imagine it blown up to a 3’x4’ poster size and read aloud in front of a jury. Taking this step may help you avoid all too common email blunders.

2. Failing to Document (Even Verbal Warnings)

Rule of Thumb: “If it is not in writing, it didn’t happen.”

The employment lawyer’s mantra is “document, document, document.” Various methods of documentation include notes to the file, letters to the employee, memos to general staff, emails to management personnel, minutes of management meetings, etc. In whatever form, almost everything that happens in the workplace with regards to possible employee claims should be documented (including in-person meetings and verbal warnings).

3. Not Documenting Properly

Rule of Thumb: “If it’s not documented well, better that it not be documented at all.”

Though documentation is crucial, a poorly documented incident can weaken even the strongest case. Managers should carefully review all documentation and consider consulting counsel before finalizing any writing.

4. “Sugar Coating” Reviews and Terminations

Managers are often tempted to “sugar coat” reviews and the reasons an employee is terminated. This could turn sour if the employee is angry and inclined to sue.

It is inconsistent if at the time of discharge, a manager tells the employee, “You are being laid off. It has nothing to do with your performance,” and then turns around during litigation and attributes the layoff on “poor performance.”

Similarly, positive performance evaluations are commonly used by terminated employees in litigation in an effort to demonstrate they were good performers and the reasons they were given for termination were “pretextual.”

Pretextual means “a fictitious reason that is concocted in order to conceal the real reason.” Examples include where an employee is fired for having work-related injury, for lodging complaint (e.g., harassment, discrimination) or for excessive absences related to “protected activities” (e.g., disability, jury duty, witness duty, etc.).

Recommendation: Discuss and plan what you are going to say or write before saying or writing it. Be honest and concise. Explain the reasons behind the review or termination, but don’t be defensive or argue. Remember, a single review or termination may be the linchpin for a future claim.

5. Ignoring Employee Complaints

As a supervisor, you represent the company. Being a supervisor is a 24/7 job. If you learn of potentially unlawful conduct, you must notify HR or upper management immediately. Once a supervisor is aware of such conduct, the company is deemed to be on notice.

Once certain complaints arise (e.g., harassment, discrimination, etc.) conduct is reported, the company must promptly conduct an investigation. Workplace investigations are essential not only to managing the workplace and resolving disputes before lawsuits arise, but employers are under a legal obligation to conduct investigations. Moreover, properly conducted investigations often lead to an important defense after a lawsuit is filed

General investigation guidelines include, but are not limited to:

Interviewing the complainant and alleged perpetrator

Interviewing additional witnesses

Gathering additional evidence

Documenting every step

Evaluating and determining a factual conclusion

Assessing and addressing (if necessary) the future impact of the complaint on the workplace environment

6. “Off the Clock” Work

Employers have record keeping obligations, which include keeping track of all hours worked by non-exempt employees. Employers should record the stop and start time of all work being performed, including the beginning and ending of each meal period. Employers must pay for all work they actually know or “should know” is being performed by employees (including any “off the clock” work).

Managers are often accused of pressuring employees to work “off the clock” in an effort to avoid paying employees for all the hours worked and overtime premiums or “shaving” time records in an effort to reduce costs and increase bonuses for themselves. Sometimes honest mistakes are made, which may still lead to false accusations.

Example: Employee forgets to clock in or out and manager makes correction on time card.

Recommendation: Have employee initial the change to acknowledge that the corrected time accurately reflects the time worked.

7. Meal and Rest Break Violations

Meal Break Rules California law currently requires employers to provide a 30-minute unpaid, duty-free meal break for each work period of more than 5 hours. However, if the total work period is no more than 6 hours, the meal period may be waived by mutual consent of both the employer and employee.

A second meal period of not less than 30 minutes is required if an employee works more than 10 hours per day. But, if the total hours worked is no more than 12 hours, the second meal period may be waived by mutual consent of the employer and employee, but only if the first meal period was not waived.

Employees must be relieved of all duty during their 30-minute meal period. “On duty” meal periods are permitted only when (i) the nature of the work prevents an employee from being relieved of all duty, and (ii) agreed to in writing by the employer and employee.

The penalty for failing to provide a meal period is one additional hour of pay for each workday the meal period is not provided

Recommendation: Ensure employees are provided meal breaks and that records reflect meal breaks are in fact taken (i.e., require employees to clock out and in for the full 30-minute break).

Rest Break Rules

Employers must “authorize and permit” non-exempt employees to take a 10-minute rest break for each 4-hour work period, or major fraction thereof. However, no rest break is required for employees whose total daily work time is less than three and one-half hours. Rest breaks should be taken in the middle of each work period, if possible. Rest breaks may not be combined with meal breaks or used to come in late or leave early.

Recommendation: Do not deny employees the ability to take 10-minute rest breaks.

8. Not Enforcing Overtime Rules/ Failing to Pay Overtime

California employers must provide time-and-one-half the employee’s regular rate of pay for (i) all hours worked beyond 8 in a single workday (or 40 in a workweek), and (ii) the first 8 hours worked on the seventh consecutive day worked in a single workweek. Employers must pay double the employee’s regular rate of pay for (i) all hours worked beyond 12 in a single workday, and (ii) the hours worked beyond 8 on the seventh consecutive day worked in a single workweek.

Payment of overtime wages earned in a pay period may be delayed until no later than the payday for the next pay period. If you delay payment of overtimes wages to the following pay period, you must itemize the hours as corrections on the pay stub for the period in which they are paid and identify the date of the pay period to which they are attributable.

Failure to pay overtime results not only in an obligation to pay the overtime owed, but also in other potential penalties under the Labor Code.

9. Not Being Familiar With Various Leave Rules

In California, certain leaves are required by law while others are optional. Additionally, some leaves apply only to employers of certain sizes. For example, Pregnancy Disability Leave (PDL) applies to employers with five or more employees whereas the federal Family and Medical Leave Act (FMLA) and state California Family Rights Act (CFRA) only apply to employers with 50 or more employees. All employers (even those with only one employee) must provide workers’ compensation disability leave and jury and witness duty leave. Yet, no employer is required to provide paid vacation or sick leave.

Because the different types of leaves, both required and not, interact with each other in different ways, it is important to understand the various laws and corresponding obligations.

10. Writing Up Employees for “Protected” Activities (and Using Those Write-Ups as Basis for Termination Decisions)

There is an extensive list of activities that cannot be used as grounds for terminating an employee. Certain activities are protected by the law, and employers may not terminate an employee for participating in such activities. Nor should employees be written up for these reasons. They include, but are not limited to, disclosing wages, political activity, taking limited time off for a child’s school or day care activities and refusing to take a polygraph test.

Luis “Lou” Guerrero has always been good with numbers and working through problems logically. So pursuing a career in accounting was a natural fit, because it gave him the opportunity to help businesses intelligently navigate their finances.

A certified public accountant, he worked with the small business audit group and tax department of Touche Ross & Co. (now Deloitte & Touche) for eight years, and ran his own accounting practice for a stint.

In 1995, he joined the Pasadena-based accounting firm now known as Krost, Baumgarten, Kniss & Guerrero. He helped launch a division of the company, KBKG, Inc., in 1999 to specialize in cost segregation studies. KBKG now also helps businesses obtain green building and Enterprise Zone tax credits, among other services. KBKG has an office in Woodland Hills.

Guerrero said many business owners don’t know about the financial benefits of doing a cost segregation study and how to go about obtaining other tax credits. As a result, they’re missing out on thousands, if not millions, of dollars in increased cash flow.

Question: What is a cost segregation study?

Answer: Cost segregation is a tax savings tool that allows companies and individuals who have constructed, purchased, expanded, or remodeled any kind of real estate to increase cash flow by accelerating depreciation deductions and deferring federal and state income taxes.

In general, it’s easy to identify furniture, fixtures, and equipment that are depreciated over five or seven years for tax purposes. However, the studies go far beyond that by dissecting construction costs that are usually depreciated over 27-and-a-half or 39 years.

The goal is to identify all construction related costs that can be depreciated over five, seven, and 15 years. For example, 30-90 percent of the total electrical costs in most buildings can qualify as personal property that’s eligible to be depreciated over five or seven years.

Reducing tax lives results in accelerated depreciation deductions, reduced tax liability, and increased cash flow. Conducting a quality study involves a review of cost detail and blueprints, site inspection, photo documentation, cost estimation, and preparation of a report. KBKG works with a team of engineers and tax experts.

Q: What’s the financial benefit of doing this type of study?

A: The depreciation for a property with a cost segregation study allows for a significant increase in deductions within the first five years.

Assuming a combined tax rate of 41 percent and a return on investment factor of eight percent, every $100,000 of costs shifted from 39-year property to five-year property creates a present value tax benefit of approximately $22,000. Every $100,000 of costs shifted from 39-year property to 15-year property creates a present value tax benefit of approximately $12,000.

Q: What types of clients/properties are best suited for cost seg studies?

A: Anybody who has paid taxes over the past five years and acquired a building in the past 15 years. And any structure used for business or as rental property is eligible. But cost segregation studies are not as relevant for buildings somebody has owned for a long time. The longer you’ve owned a building, the lower the present value benefit.

If you’re planning on holding the property for only a few years, it probably doesn’t make sense. In general, clients plan on holding the property for three, four, five years or more. And every time a property exchanges, a study can be done again. It’s a present value play. You’re changing the timing to get tax deductions now versus later on.

Q: Why are you focusing on cost seg?

A: The original accounting firm, now known as Krost, Baumgarten, Kniss and Guerrero, was founded in 1939 in Pasadena. Over the years it specialized in restaurants. One restaurant in particular had 20 locations. After doing cost seg studies on those properties, the client was able to secure a $2 million refund.

Up until the late 1990s, there were hundreds of court cases about cost segregation and the IRS was fighting the concept. But around 1997, a landmark case (Hospital Corporation of America vs. Commissioner) provided the legal support to use cost segregation studies for computing depreciation. That’s when we jumped in.

We created two separate companies, KBKG, Inc. being the one that specializes in cost segregation. And we realized the best way to sell the concept was to do it directly to other CPAs. So we started by offering a lot of continuing education to CPAs. In turn, they would often hire us or their clients would hire us to do the studies.

Q: KBKG also specializes in helping businesses secure green building and Enterprise Zone tax credits. Can you tell me more about these?

A: The most common green tax credit is the residential 45L tax credit, which is applicable to residential developers such as those building single family homes, apartments or condominiums. All apartment and residential condo developments completed on or after August 8, 2005 are worth assessing. They can receive up to $2,000 per unit for things like reductions in electricity and gas usage, increased insulation and using Energy efficient appliances.

Q: How do business owners access the credit?

A: A study needs to be done to look at the Energy efficiency of the property. We conduct an engineering-based study to determine how many units qualify for the tax credit. That study is then given to the client’s CPA who applies for the credit. Most residential construction in California completed after Aug. 8, 2005 qualifies because we have such strict building standards.

Another green tax credit is Section 48. Business owners can get a credit worth up to 30 percent of the amount they spent on equipment such as fuel cell properties, small wind Energy, and equipment that heats or cools a structure with solar energy.

And since many businesses are not paying as much taxes right now, because of the economy, the federal government is offering grants in lieu of the credits for the same amount of money.

Q: What about Enterprise Zone credits?

A: This is another one of those often overlooked credits that can be very useful to businesses paying California taxes. The Enterprise Zone credit approves up to $37,440 in state credit over a five-year period for each eligible employee. And there are a lot of opportunities in the San Fernando Valley for getting Enterprise Zone credits.

NewMark Merrill Companies, a real estate company that owns Janss Marketplace in Thousand Oaks, has recently filled two out of four vacancies in the retail plaza and re-signed several continuing renters at the site.

The four locations include a 6,500 retail location formerly occupied by Borealis sports equipment until 2008. A former Mervyn’s location is 85,000 square feet while a former Shoe Pavilion location is 7,800 feet. A former Linens and Things Location is 39,000 square feet. According to Sandy Sigal, president and CEO of NewMark Merrill, the property is now about 95 percent leased.

A new renter at the center is national chain Dress Barn, which will occupy the former Borealis location. The Dress Barn is scheduled to open March 27, according to Sigal although Dress Barn officials could not be reached for comment.

Family oriented

“Janss has always been very family oriented and it’s a good fit for this chain store with 500 stores aimed at teens and young adults,” Sigal said.

In the former Mervyn’s location, Sigal said they are very close to making a deal with a mini-department store. However, he would not yet release the name of the company until plans are finalized.

The Linens and Things Location has not yet been rented but Sigal said it has been viewed by a variety of companies including family amusement and medical prospects. The Linens and Things location is flanked by a Toys-r-Us and Gold’s Gym.

“I think the location of the new property at the former Linens and Things location will widen the base of our shoppers more than it has in the past,” Sigal said.

Women’s clothing store

In addition, Sigal mentioned the recent introduction of Riverland, an Oxnard based women’s clothing chain that was added to the Marketplace towards the end of 2009. In addition, Subway agreed to a 7-year lease extension while Toys-R-Us agreed to a five year lease extension.

“100 to 150 jobs will be added with these new tenants,” Sigal said. “The traffic generation will be 300 to 400 shoppers daily. Both of the new stores will do well and continue to draw people to Janss Marketplace . . . I think it’s a good sign that we can get a national chain here. It’s also a good sign for our trading area.”

Manager of Economic Development for the City of Thousand Oaks Gary Wartik also expressed a sense of optimism for the city and the center.

“It’s a strong center. It’s important to keep in mind that the centers that closed Mervyn’s and Linens and things were due to a national chain failure,” Wartik said. “It speaks to the efforts of NewMark Merrill’s center. It’s an older center but the owners spent money to update it. It’s a strong economic community in Thousand Oaks with a moderate unemployment rate . . . A large number have discretionary income. We’re seeing signs of improvement.”

Less than a year after it began operating, the Certified Development Company affiliated with the San Fernando Valley Financial Development Corporation has approved more than $7.4 million dollars in small business loans and is expecting to rank among the top 25 out of 134 CDCs in the Los Angeles SBA District, which includes Los Angeles and Ventura Counties.

So far, the San Fernando Valley Financial Development Corporation’s CDC, has approved 11 loans as part of the SBA 504 loan program, which allows small business owners to purchase an industrial or commercial building at below-market interest rates with a minimum of ten percent down payment or equity injection. The program serves as a long-term financing tool for Economic development within a community.

“The tremendous success of the SBA 504 program is one of those shimmers of hope we hear so much about in these challenging economic times, giving small businesses and the local economy the support to prosper,” said Ray Vasquez, SFV-FDC Board Chairman.

“The San Fernando Valley continues to have a vibrant business community with entities like Community Development Corporations, micro-lenders and banks investing capital for commercial purchases and other critical business needs.”

In its first year, the CDC, which began operations in October of 2008, will have played a crucial role in the distribution of more than $18.4 million to assist small business owners in the Los Angeles Region.

The SBA 504 loan program is structured so that a private lender makes a loan to the borrower in the first deed lien position for 50 percent of the total project. CDC issues a loan in the second trust deed lien position for 40 percent of the total project. The borrower contributes 10 percent.

Congress gave recession weary families some good news just before its December recess. In a move designed to help families retain their employer sponsored insurance, Congress extended last year’s COBRA subsidy. The news couldn’t have come at a better time for families looking at the looming December 31 cutoff for the subsidy.

Background. The so called COBRA law provides a hugely important safety net to employees and their families. Under this law, employer sponsored group health plans (20+ employees) must allow employees (and their covered dependents) to buy a temporary extension of their group health insurance whenever coverage is interrupted due to certain life events like voluntary or involuntary job loss, a reduction in hours worked, death and even divorce. Although qualified individuals pay the entire premium for coverage (plus an additional 2% administrative fee), COBRA continuation coverage typically costs only a fraction of what one would pay for an individual policy. Also, there are none of those worrisome exclusions for pre-existing illnesses.

Stimulus Package. As the economy tanked in late 2008, many families found that even the cheaper COBRA continuation premiums were too costly Congress stepped in to help these families with the passage of last year’s Economic stimulus package. One of the provisions on the stimulus package required employers to pay 65% of the employee’s COBRA premium for up to nine (9) months when coverage was lost as a result of a layoff or other reasons where the employee was not at fault. The employer’s portion of the subsidy would then be reimbursed by the federal government through a tax credit in a later tax year. The subsidy was a huge help to the millions who suffered job losses in 2009. However, the subsidy program was due to expire at the end of 2009.

Subsidy Extended and Expanded. In late December, Congress stepped in again. On December 21, 2009, President Obama signed into law an extension to the employer paid COBRA subsidy. This new legislation does two important things to help families coping with the recession.

First, it extends the period during which involuntary terminations trigger eligibility for the COBRA subsidy for an additional 60 days. Instead of the subsidy assistance expiring on December 31st, the new law offers subsidy assistance to any employee who suffers a covered job loss on or before February 28th. This additional two months of eligibility will enable thousands of families to continue their insurance coverage with the 65% employer subsidy.

Second, in recognition of the volatility in the job market, the law expands the duration of the employer subsidy from 9 months to 15 months. This means that thousands of unemployed workers currently on the subsidy program will be able to retain their health insurance for an additional six (6) months while awaiting an economic recovery.

The new law also resolves a technical issue that was created by the language of the original subsidy legislation. The original subsidy law required that both the qualifying event and the beginning of the COBRA coverage occur on or before December 31, 2009. This meant that if an employee was terminated in early December 2009, and COBRA coverage started on January 1, 2010, the employee would not have been eligible for the subsidy.

The new law changes this by conditioning eligibility on the timing of the event causing the loss of coverage. Thus, if an employee is laid off on or before February 28, 2010, the employee will be eligible for the subsidy, regardless of when COBRA coverage would eventually start.

The Act also offers a lifeline to employees who may have exhausted their nine months of subsidized COBRA coverage, but could not afford to continue coverage by paying the full premiums. These individuals will be able to get back on the group health plan (with employer-subsidy) if they pay their share (35%) of the missed premiums by February 19, 2010. To insure that employees know about this right, Congress has mandated that an employer (or its carrier or insurance administrator) notify employees and their dependents of this important new benefit. Employers should coordinate with their carrier to insure this important notice is sent out on time.

The new law also offers subsidy relief for individuals who elected to pay the full COBRA premium after the nine month employer subsidy was exhausted. These individuals can take advantage of the extended COBRA subsidy for the full 15 months as well. The new law allows employers to apply the same refund or crediting rules as under the existing law. Once again, it will be incumbent on employers to notify these individuals and their dependents of their rights to the additional six months of employer subsidized assistance.

A third group impacted by the new law are individuals who dropped COBRA before the original nine month subsidy expired. They too are able to take advantage of the full fifteen month employer subsidy. Once again, notice must be given to enable these employees (and their dependents) to make an informed choice whether to buy back into the employer health plan at the subsidized rate.

The U. S. Department of Labor announced that it will be issuing new model notices in the next few weeks. Because of impending deadlines, employers should contact their broker or call the carrier directly to be sure that timely notices are provided.

Redevelopment of the NoHo Arts District in North Hollywood just hit a bump in the road. Upscale grocer, HOWS Markets, is closing down its retail storefront located at 5300 Lankershim.

The company, which has four other locations scattered throughout the Los Angeles area, was anchor tenant for the NoHo Commons retail center. It currently occupies 32,000 square feet of space and opened its doors in May 2007.

“It’s unfortunate because HOWS is a great company and very community oriented,” said Eric Reuveni, president and CEO of Los Angeles Community Real Estate Group and retail broker for the development.

“I think the company’s decision to close has to do with certain segments of the grocery business having issues, and the economy,” he added. The company did not fulfill its original lease agreement.

HOWS partner and owner, Mark Oerum, told the website LAist the store was not doing the sales it needed. The company recently announced the closure to employees and will take a few months to move out. It is focusing Energy on its four other stores.

Other NoHo Commons tenants include: Wells Fargo; Cold Stone Creamery; The Coffee Bean & Tea Leaf; T-Mobile; a sports bar; drug store; and a Greek café, among others. Reuveni said the space is large enough to accommodate anchor retailers such as Trader Joe’s, and it can be split.

“There are myriad stores that could do well in the space,” said Reuveni, “It’s a young, hip and mobile demographic.”

Lack of signage is one issue that may have compounded HOWS’ slow sales, he said. The original developer required the grocer to use stainless steel letters that were back-lit. But the lack of luminescence made the letters hard to see. Reuveni said building owners are talking with the city to improve the signage issue for future tenants.

NoHo Commons is a mixed-use development located at Lankershim Blvd. and Chandler Blvd. near the North Hollywood subway station. It includes retail, residential, office, entertainment and parking space. Millions of dollars in public subsidies and loans have gone into the project.

A subsidiary of Teledyne Technologies Inc. has acquired an interest in a company that manufactures core components used in aircraft navigation systems.

Teledyne Scientific & Imaging LLC has an option to acquire a controlling interest in Optical Alchemy Inc. after three years, and full ownership after five years based on Optical’s performance.

The investment, the details of which were not disclosed, increases Thousand Oaks-based Teledyne’s involvement in infrared and visible imaging systems for military operations, especially those using unmanned aircraft.

Because of their low weight, the components made by Optical are well suited for unmanned aircraft, which require persistent surveillance and precise targeting, said Teledyne Chairman, President and CEO Robert Mehrabian.