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City Staff Defends Mooney Shopping Center

Visalia - The critics have had their say and now the city is responding to letters of concern over the Environmental Impact Report on the proposed South Packwood Regional Retail project. In their final EIR release done on the big project at the south end of Mooney, city staff defended the development that could mean nearly 700,000 sq. ft. of retail use on both sides of Mooney.

The Visalia Planning Commission will hold a hearing on the project proposed by Monterey developer Don Orosco at a special Tuesday, March 26th meeting at the Convention Center at 7 p.m. The project is likely to be heard by the city council in April.

Although the overall plan calls for about 1 million sq. ft. of retail use on this land, currently zoned by the city as retail reserve, the city staff report points out that the first phase of the project would be 680,000 sq. ft. The large development would include a Lowe's Home Improvement and Best Buy store on east side of Mooney and a new larger Target on the west.

Orosco is also negotiating with Costco and Walmart for a second large parcel on the west side. These large "big box" uses could happen in the next year if the city gives the OK. Add to that a number of smaller users and restaurants who may locate here as well. Orosco has told retailers that he hopes to start construction on the east side complex as soon as June to meet particularly Lowe's time table for being in this market.

With the release of the EIR in recent days it's clear the city staff is trying to push this project through despite grave reservations around town.

Critics have raised three key issues:

1. Ag land compensation,

2. City infrastructure and who pays for it,

3. The potential negative impact on the rest of Mooney.

Of the three the most politically charged is the third criticism. Comments from property owners, shopping center developers and retailers - all in potential competition with the Orosco project - suggest that the Orosco project is too big and could easily draw not just new tenants to town but pull existing tenants away from their current site creating a kind of blight similar to that now found on Blackstone in Fresno with the development of the Riverpark project at the extreme north end of town. As is, says broker Marty Zeeb "there is about 1.3 million sq. ft. of retail/commercial development fully entitled and ready to build." There is also 188,000 sq. ft. of vacancies. Add this number to the plan to build nearly 700,000 sq. ft. and you have a 45 year supply of space, he suggests. Developer Dave Paynter points out in his counter comments that the city has "held the line" of development outside the boundary until now and still there is ample locations a new retailer can go. "There has not been a major or regional retailer in the past 15 years that has not come to Visalia because they could not find a suitable location," says Paynter who is working to develop Mooney and Walnut. The owners of the Sequoia Mall and a number of other shopping centers around town made similar comments.

But armed with some ammo of their own - including the Economic Research Associate Market Study done in July 2001 - the city staff report suggests:

• Visalia's retail share of the market will continue to drop having dropped from 47.1% in 1996 to 45.6% in 1999.

• Permitting the development of the project will increase Visalia's sales by $22 million by 2005 and $28 million by 2010 compared to not allowing the power center to be built.

• Renovations on the existing Mooney strip have been good including two new retailers at Sequoia Mall and at the Visalia Mall where the place is nearly 99% leased.

• While the building of the center might reduce retail sales in the first two years of operation due to relocation of retailers, sales should rebound within 3 to 4 years.

Mr. Orosco himself responds to the criticisms that he fought against the Kashain site a few years ago when a shopping/entertainment center was proposed at Plaza and 198. Orosco writing in his own response to comments said he criticized the Kashain project that was miles from existing development while his proposed south Mooney center is right next to current development, already zoned "for what the General Plan for the City of Visalia proposes."

• Sales from the center should get $130 million annually.

• The city can't afford another redevelopment project on Mooney "in the future" says the staff report meaning assistance for other retailers to build along the existing strip will not be there.

• The development will strengthen Mooney Blvd. as a retail shopping destination - in essence lifting all boats.

• Even if Target were to relocate to the new power center developer Orosco has promised to backfill the existing building with a new retailer and this would be condition of approval.

• Alternate site studies don't have adequate room or are not readily available. The Paynter site, for example, is under 16 acres at Walnut and Mooney. Also many of the alternate sites mentioned are not designated regional retail. An example is the 30 acre Demaree/Caldwell space zoned Community Commercial and not allowing uses above 125,000 sq. ft.

• Most of the tenants seeking to locate at the new power center are new to Visalia, says the report.

Orosco points out that as to traffic impact, that south Mooney is already impacted but that his development should actually improve things by installing roadways and traffic signals to connect to surrounding roads. Orosco says the development will create 1000 jobs create $134 million in sales tax and increase the value of the city by some $94 million and add "exciting new retail shopping alternatives."

Regarding the issue of ag land mitigation, the city's EIR suggests the idea is not feasible. American Farmland Trust is asking the city to establish a new farmland conservation policy that would require projects who do replace ag land to continue to acquisition of ag easements elsewhere to mitigate for the taking. But the city reports that its General Plan sets up concentric circle of development that keeps ag land at the edge of the city from developing as long as possible. This project was envisioned as long ago as 1991, says the staff report. The 130 acres being converted had been envisioned in the General Plan - thus minimizing the effect on ag land elsewhere, they suggest.

The boundaries act as mitigation measure and therefore don't require payment of an additional mitigation fee. The city report suggests it would cooperate with some regional plan to do some sort of ag land mitigation fee but that a multi jurisdictional approach was not ready to implement now.

Regarding who pays for the infrastructure the report suggests that Orosco is paying his fair share. Critics have said that the project will further clog Mooney will not provide a reliable alternative to accessing the site on a major street other than from Mooney/Caldwell. Further the critics suggest that the only street being built next to the center, Cameron, will not connect without a major public commitment in funding the road with public dollars.

Whatever happens with the latest arguments in the matter it is considered to likely pass the City Planning Commission this month and get on to a tougher arena, the Visalia city council who are reportedly divided over the controversial Packwood project.

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Allen Group Selling Valley
Home Building Co.

Visalia - San Diego Developer Buying Allen Group's Home Building Co. A year after they put their home building company on the market The Allen Group has sold their residential unit to Corky McMillin Companies of San Diego for an undisclosed sum. The deal will close Friday, March 22.

In January managing partner with the company, Richard Allen, confirmed the sale of the Imperial Valley division to McMillin who is one of the south state's largest independent builders. The company is family run and has built more than 10,000 homes in the state since it was founded in 1960.

Mr. McMillin was in Visalia this week talking to members of the Visalia real estate community that he plans to continue the cooperative relationship with agents who bring clients to one of the 10 active subdivisions the Allen Group has developed in the past four years.

One of the largest builders in the central valley, the upstart Allen Group began building homes in the late 90s and has remained one of fastest growing home builders in the valley with ten projects in Sanger, Kingsburg, Selma, Tulare and including three subdivisions in Visalia.

The Allen Group will remain active in the valley with its industrial/office division continuing to develop industrial parks and office complexes in the valley. In Bakersfield the company has built over 325,000 sq. ft. of office in the past three years, even more in San Diego.

The Allen Group will continue to work to finalize the purchase of land on Bridge St. in downtown Visalia for new offices as well, says Harvey May who heads up the Central Valley division. The deal to buy the property should close May 1, he says. Construction of a new 7500 sq. ft. building is expected to start this summer. The

Allen Group's residential unit is developing about 1000 units including neighborhoods in Nevada and southern California. The company sold around 400 homes in the central valley in 2000.

McMillin also operates San Diego's largest independent real estate brokerage - McMillin Realty and McMillin Mortgage that provides home financing.

Sources say all Allen Group employees will stay in place.

Neither company said they could comment before the sale was finalized.

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Ag Expo
Study Reined Cow Horse Assn. Pulls Back
From Joint Facility Plan

Tulare - A $100,000 study of joint use facilities between the World Ag Expo, The Tulare County Fair and the NRCHA is nearly complete after about 18 months of work. In the meantime, the leadership of the both the Tulare County Fair and NRCHA has changed providing an extra measure of uncertainty to the question - is such a jointly funded, joint-use facility financially feasible?

Consultant Lyn Dredge says the report in its final draft is positive on that question if the groups want to move forward.

"We're still a couple of meetings away from presenting the information to the NRCHA board," says World Ag Expo general manager Gary Shultz.

But NRCHA board chairman Ted Robinson told the Voice this week that the idea "was the dream of our past executive director" and that the association is "unlikely to make a financial commitment" to a new multi-million dollar arena as proposed in the study. "We might rent it," says Robinson who notes the association typically travels around the country renting facilities with the help of sponsors.

The past executive director of the association "thought the new facility would be a big draw and the money would just roll in," says Robinson who has a horse ranch near Ventura. "We're a national organization and so it makes sense to move around to hold a major event," says Robinson. The association has some five big shows each year.

The idea in Tulare had been to erect a 7000 seat indoor arena where the NRCHA could site these shows - a venue that could draw other animal shows and exhibitor events. The promise of regular shows in Tulare sited adjacent the Farm Show complex spurred talk of attracting a developer who might promote visitor related businesses, hotels and restaurants to the location.

At the Tulare County Fair there has been a near total turnover in board and executive director leadership as well in the past few months. Board members who had been studying the idea of a move were removed by Governor Davis and the Fair in the midst of hiring a new executive director in the next month or so.

Consultant Dredge says that even in the case where only the Fair and the Expo are the players that "it's possible we still can build" some exhibit facilities. "We will continue to take one step after another," says Dredge, Tulare's former city manager.

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Cal Poly Awaits Joint Proposal From
Visalia And Tulare

Visalia - Working to end competition to attract a Cal Poly satellite campus to Tulare County, the communities of Tulare and Visalia are working together to offer Cal Poly San Luis Obispo a joint proposal, says Gary Shultz executive director of the Tulare's World Ag Expo. Visalia city manager Steve Salomon confirms that is the direction after Cal Poly officials made it clear they were not going to play referee.

"I could see Cal Poly offering classes in both communities," says Dennis "Skip" Parks, Cal Poly's Dean of Extension Services - it's possible a proposal from the two cities could see Ag classes in Tulare and Information Technology classes in Visalia. "It's likely that classes would start in some existing facilities," says Salomon rather than any kind of new construction project.

"Our hope is to offer programs to meet the economic development, personal and professional development needed in the area," says Parks. Extension of higher ed classes from Cal Poly to Tulare "was the dream of Rita B. Hill," says Parks of the former public relations executive and Cal Poly alum activist who died in a car accident last year.

Mike Barr who is director of Advancement of the College of Agriculture at Cal Poly says "we are ready to facilitate classes and programs in Tulare County but we need to know what they want." Just what kind of classes would be useful? He hopes to get the answer from focus groups meeting with local alumni that number more than 3000 from the general area, he says.

Cal Poly's Ag program is the fourth largest in the US with 3600 undergraduates each year. Barr says they would love to "joint venture" some dairy classes in applied technology following the path that Cal Poly champions for working closely with industry to put students in a hands-on situation.

The area is attractive to Cal Poly's Ag program in part because it is "a huge diverse region," the number one ag region in the world, says Barr.

Talk is of offering an MBA in ag over here allowing professionals to continue their advancement. He says focus groups will be asked to look at the educational need "perhaps five years out."

Barr says from Cal Poly's point of view "classes could happen soon" if the parties come together.

Visalia has suggested the classes could begin at the new three story Transit Center building on Oak St. once it is built early next year. Construction on the building is expected to begin this spring.

Meanwhile, an effort to work with Fresno State University to expand four year offerings in Tulare County is moving forward with a big meeting set for early May at the COS campus with community leaders and Dr. Welty. Assemblyman Mike Briggs has supported legislation that is working its way through the Assembly to designate Tulare County for a four year university.

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Springville - 22 Years of ‘No Growth’ Ending?

By Scott Switzer
Southern Sierra News Service

Springville - A 22-year-old moratorium on new sewage hookups in the Springville Public Utilities District (SPUD) may be nearing an end.

The district imposed the moratorium back in 1980, effectively ending most new development within its boundaries which include the commercial and residential town center of Springville along Highway 190 about 17 miles east of Porterville.

Then in 1996, the San Joaquin Valley Regional Water Quality Control Board issued a cease and desist order, demanding that the district find a way to reclaim treated effluent from its sewage treatment plant.

Although the district's treatment produces effluent of higher quality than that running in the Tule River adjacent to town, it uses evaporative ponds to dispose of the water. Instead, the water quality control board wanted the district to find a way to have the water used for agricultural purposes or return it to the river. Springville's water comes from the Tule River.

SPUD directors were reluctant to take on liability associated with pumping the treated effluent into the river and worked for a number of years on a solution to their problem. When a project that would have put the water into the Pleasant Valley ditch failed to materialize, property owner Ron Matik, who raises citrus and cattle in the Globe Drive area west of Springville, agreed to take the treated effluent.

With a signed agreement between Matik and SPUD, the district has began to look for grant funding to complete the project.

The agreement between Matik and SPUD allows the district to pump effluent through a pipeline to be constructed and into a reservoir on Matik's property. Matik will use the effluent for agricultural purposes. SPUD must build a pipeline from the district to Matik's property, and also build a reservoir on the property to hold the effluent.

According to District Engineer Dennis Keller, plans include having effluent flowing to Matik's property and the proposed reservoir by the end of 2004. If funding is available right away, the timeframes may be moved up.

The total cost of the project is estimated at over $1.36 million. SPUD is actively seeking grants to fund the project, Keller said, although the USDA Rural Development (RD) has expressed a willingness to talk with the board and discuss funding the remainder of the project. Since RD would carry a 25 percent loan instead of complete grant money, the board will wait for word from grant applications before making a decision involving loans.

Keller said he submitted an application for funding under the provisions of Proposition 13 at the end of February. Proposition 13 has a program geared specifically toward water recycling projects. If approved, the funds from the application–requesting just short of $1 million according to Keller–would fund the portion of the project involving the pipeline to Matik.

Keller also told the board that funds might be available from the Office of Water Recycling, part of the State Water Resources Control Board. Grant money not spent by other projects could be given to SPUD should they be approved. According to Keller, the Office of Water Recycling is looking for projects that are well along in the permit and design phases, and since the application process has long since closed, the office will review SPUD's progress and decide whether to allow the district to submit an application.

The project carries with it the future of SPUD. Completion of the project would allow the moratorium on water and sewer hook ups in the district to be lifted by the board. The district has been under a self-imposed moratorium for over 20 years. Also upon completion and receipt of a "notice of completion" from the SPUD board of directors to the regional water board will allow a "cease and desist" order from that board to be lifted as well.

A moratorium waiting list revised last week shows 18 names waiting for sewer hook ups once the moratorium is lifted. Some of the names on the list have been there since the late 1970's and early 1980's.

Five residences that have septic tanks will be forced to make the switch to SPUD hook ups once the moratorium is lifted. According to Keller, these residences received permits to place septic tanks on the property with the provision that they would switch over once SPUD became capable of providing water and sewer hook ups again. Many other residences will be allowed to stay with septic tanks will be allowed to continue as SPUD does not have sewer lines available in all areas of the district, such as Rio Vista Drive.

SPUD has all the necessary permits in place, design of the project is well underway, and once funding is resolved construction can begin. Actual construction on the project will take about a year from start to finish according to the project schedule provided by SPUD.

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Ag Beat
More Talk Of Pullin' Than Plantin'

Tulare County - It may be Springtime but many farmers continue to focus more on pulling trees and vines than planting right now considering low returns for a wide variety of alternative crops and uncertainty over the Farm Bill.

All over Tulare County hundreds of acres of prune trees are being pushed over as about a third of the industry has agreed that getting $8.50 a tree from the government is a better alternative than another year of low prices.

At Rotary this week the speaker of the day was farmer Fred Lagomarsino who suggested the wine industry in the south valley is unlikely to survive as it exists today with his own family pulling the last of their 2000 acres of wine grapes this winter because of low prices. Lagomarsino's family vineyard in Tulare is planting retailers like Walmart and FoodsCo and some 1400 housing units today where the vineyard once was at the highly successful Del Lago development.

Development in the wine business hasn't been so successful, Fred admits. South valley growers have been unable to secure long term contracts from wineries that would allow them to survive. The problem, "our perceived lower quality grapes" in a state with thousands of acres of wine grapes planted in recent years.

President of Selma-based Agristruction Hal Collin says lots more grapes are coming out than going in. A survey done a few years ago saw some 22,000 acres of all types of grapes coming out between Kern County up to San Joaquin County in a year - a number Collin believes we are exceeding now.

"Bankers are telling wine grape growers that without a contract, they won't get financing." says Collin and some farmers are figuring "it would be cheaper to keep the land open and save the expensive inputs than lose money," he says. Collin says a drive around the vineyards of south Tulare County will find "plenty of vineyards that haven't been pruned" meaning they are "abandoned." Collin's company pulls vineyards for customers.

Tulare County has about 16,000 acres of wine grapes in the county, but that number will likely fall over the next year.

Where this leaves local wineries who historically set up manufacturing close to the wine grapes supply, isn't clear. "They are no longer going to have a transportation advantage," if most of the grapes have to be trucked in here remarks Lagomarsino.

Not that Fred is working on any ambitious plan to replace the lost acreage with new crop. "We'll probably leave it and just pay the taxes," says Lagomarsino who notes that one crop they are experimenting with is some new hot weather variety blueberries.

Visalia farmer Eric Shannon says his family too has pulled over 1000 acres of wine grapes - varieties like Chardonnay and Cabernet along with Thompson seedless "that have no future here." He says some varieties with high yields used for concentrate may still have a market but only if wineries offer a fixed minimum price long term. He says south valley wineries from Madera to Fresno down to Delano "have millions invested in their facilities" and therefore have built-in incentive to offer contracts. "At least there is some dialogue now going on," says Shannon. The bottom line "we have to make a profit as growers or there is no tomorrow" for the industry here. That means lots of jobs not just on the farm but at the processors, he reminds us.

Cotton farmers aren't itching to get their crop in the ground either given the Farm Bill's uncertainty at press time. "This week we can plant but I haven't had one grower come in for cottonseed," says Larry Gallian of Visalia Co-op Gin.

As recently as the early 1950s cotton was king in Tulare County with over 145,000 acres in cotton. Today that number of acres planted to cotton is about 80,000 after falling as low as 60,000 acres before growers were allowed to plant new varieties. Still it is the government subsidy that allows growers to come out despite the fact that Gallian says some of his growers made money last year not counting in the federal subsidy.

The issue of a potential $275,000 limit on farm subsidies that's in one version of the bill being hammered out in a conference meeting in Washington has scared local farmers. This past week Senators Feinstein and Boxer each came out against the tough $275,000 threshold claiming it would hurt family farmers in the West like those in Tulare County. The two Senators support limiting subsidies to anyone who has incomes exceeding $2.5 million. Boxer and Feinstein said California cotton farmers "aren't millionaires, but hard working family farmers."

The March 7 letter to Senator Tom Harkin says "one cotton farmer we met from California's Central Valley has a ten million dollar annual budget to farm 12,000 acres, yet he only draws a salary of approximately $50,000. His sons and son-in-law are partners and work on the farm, and his daughters run the office. He has farmed for over 50 years in California, but payment limitations in the Senate Farm Bill will force him to cut the amount of acres he grows of cotton by two-thirds and put his farm at risk."

"We respectfully request that you recede to the House language which limits payments to $550,000 and allows the continued use of commodity certificates, while retaining the Senate Farm Bill provisions preventing payments from being paid to millionaires who make more than $2.5 million for three consecutive years and do not farm."

If cotton acreage falls dramatically in the valley due to subsidy limitations look for gin operations to shut down as well.

"By April 15 there will either be cotton or corn" in the ground says Gallian, with the corn like alfalfa hay being grown for the dairy industry. Hay prices have been pretty good in the past year and some worry lots of new acres of alfalfa will be coming up this year.

Lagomarsino says the south valley's "successful strategy is to grow crops where we have competitive advantage - that can be grown in few other places." But he says "bulk commodities" aren't the future - crops like corn that can be grown successfully at lower cost elsewhere.

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Kaweah Delta Negotiating For 80 Acres
Off Shirk

Visalia - Kaweah Delta Health Care District may be working with the City of Visalia on a plan to remain in Downtown Visalia, but they appear to be exercising their insurance policy in case something doesn't work out.

The health care district's board held a closed door discussion of some 80 acres owned by Oak West Development (Gary Capolla) east to Shirk and south to Hurley just north of the 198 freeway at their meeting this week. The land is within the City of Visalia boundary but is part of the city's West 198 study area. In its preliminary concept plan, this area had been designated as future residential.

Already the district owns 100 acres at Lovers Lane and Caldwell they bought a few years ago in case they needed a new hospital site. But that site has been criticized by the city and county because it lies outside the development boundary for the city and had no services.

No KDDH executives would comment on the new Shirk Ave. option.

The city has agreed to work with the district on coming to an agreement in the form of a contract within about a month to help fund improvement downtown to encourage the district hospital to stay put. That could cost the city an estimated $30 to 40 million. Later this week the city began negotiations on buying some of the Buckman Mitchell land on Acequia to make room for a 700 car parking garage to accommodate the latest hospital expansion.

CEO Lindsay Mann, out of town this week, had suggested to the council that they would try to secure alternative property if the downtown option didn't work. The fact the hospital is discussing the 80 acre property - one of the largest pieces along the West 198 area - doesn't mean they are going to buy it, perhaps simply securing an option on it. The land could hold a value over $2 million - perhaps far more.

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Dinuba Hospital Sold To L.A. Docs

Dinuba - A group of Los Angeles physicians is purchasing the Dinuba hospital building and plan to run a surgery center that will also have a 24 hour urgent care center, says Dinuba city manager Ed Todd.

Last week the city, hospital board and the Bank of the Sierra, who hold a note, agreed to sell the closed hospital to the group who will open Dinuba Surgical Center soon. The sale is dependent on a November vote of the people. But the group wants to lease the facility to reopen in a matter of weeks. The hospital's ER closed in September and the hospital closed thereafter. The hospital's board filed for bankruptcy and the city became the lead in discussing options for the facility after they lent the hospital $1 million.

The group will pay $1.95 million for the facility. The "city will be made whole" on their loan. Attorney for the L.A. group.

The deal includes plans to open an urgent care center on a 24/7 basis that can treat injuries with exception of trauma type victims. The urgent care center will be funded in part by property taxes, he said.

Todd says the city and hospital board can now turn to the idea of developing a major regional hospital somewhere in the area - a project still on the radar screen, he says. Such a facility could be joint ventured between Dinuba and surrounding communities.

Managing partner Steve Silverman told the Voice that the new center could open as soon as April 15 with some service. Procedures that require heavier sedation for surgery will wait until a license is received, he says. "We will file an application for an acute care hospital," says Mr. Silverman. He tells the story that the company was looking to open a surgical center in Fresno last year and the effort to get property rezoned to build the project took so long he decided to "pick up the phone and ask the bankruptcy attorney" for the Dinuba hospital if some sort of deal was possible. Mr. Silverman, who is an attorney, said he happened to know the attorney.

Silverman says he believes "this area is underserved" and will build the business up gradually in Dinuba but will likely start out with just a few employees. The urgent care portion is separate. To be operated like a separate physicians clinic, the center will also start up in the next month likely leased to a physician's group, he said.

Silverman expected that "some employees that were laid off" when the hospital closed December 31 "will be brought back."

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