Highway 99 Upgrades on the Radar

By Rick Elkins

Tulare County - Next year, Highway 99 will become 100 years old. Over the next 20-30 years, the state roadway will take on a significantly different look in Tulare County.

The Tulare County Association of Governments got a look Monday at the Route 99 Corridor System Management Plan second draft which details planned improvements not only to the freeway, but side streets and the cities the freeway passes through as well.

To be most impacted by those improvements will be the city of Tulare, the only Tulare County city that straddles the main north-south freeway in Central California.
“It is comforting to recognize we're on the list,” said Tulare City Manager Darrel Pyle, explaining that it has been a longtime coming to get Highway 99 improvements done through Tulare County.

“It's 25 years past due. But, it feels like there's recognition and momentum now to get it done,” he added.

100 Years Old

Highway 99 began in 1909 as Legislative Route Number 4, according to the document. In 1913-14, the route was paved and it wasn't until the 1920s that it became known as U.S. 99. The highway stretches from Sacramento to just south of Bakersfield.

Widening of the freeway began in the 1930s when a third lane was developed for passing and turning. Parts of it became a four-lane expressway in the 1930s through the 1950s. The first bypass of Route 99 was in Tulare in the early 1950s. At the time, it was the longest stretch of freeway between Bakersfield and Sacramento. However, being the first, it is probably the poorest of designs and is in much need of improvement, noted Pyle.

The three-lane section of 99 was replaced with a four-lane expressway north of Fresno in the 1960s. There have been many smaller projects upgrading the highway, including the Highway 198 interchange and most recently, the widening between Kingsburg and Fresno to six lanes.

Plan Being Developed

The Management Plan covers the freeway from Ave. 184 south of Tulare to Route 201 in the city of Kingsburg. The plan is to improve Route 99 to a six-lane freeway, with the ultimate goal being an eight-lane freeway. The plan covers a 20-year time span, a time when peak traffic flow per hour is projected to grow from approximately 5,000 vehicles an hour today to approximately 11,000 vehicles an hour by 2030.

The planning began in 2005 when legislation was enacted designating Route 99 from Bakersfield to Sacramento as a future interstate. The idea is adding the highway to the interstate system will make the areas along the route more attractive to new employers and help job creation.

The price will not come cheap. Estimates – in today's dollars – are it will cost $14 to $19 billion to make the necessary upgrades.

The widening will greatly impact Tulare, but Pyle said mostly in a positive way.
“Everything we need to make our lives more functional will start with the widening of Highway 99,” he said.

Pyle said it is his understanding that much of the widening of the highway would take place in what is now the median, but there may have to be some adjustments to overpasses and he expects Caltrans to close or improve some of the on and off ramps. In addition, the plan calls for major improvements to the Cartmill, Paige and even Ave. 200 interchanges, as well as the addition of a Commercial Ave. interchange. The plan also calls for a major overhaul of the J Street interchange on the city's north end.

While the plan calls for the Paige and Commercial interchanges not to be done until at least 2020, Pyle said he expects both of those projects to come much sooner because local Measure R funds and city Measure I funds could be used to move up those projects.

Caltrans also mentions closing some overpasses, but Pyle said that would be open to discussion and he does not see any overpasses closed. Caltrans has a rule that there must be at least a mile between interchanges. “Ave. 200 and Paige could be exceptions,” to that rule, he said.

The plan also calls for frontage roads where there are none today, including in Tulare. Pyle said one plan is for a frontage road near Paige and another near Ave. 200. That would require a lot of right-of-way acquisition.

Pyle confirmed the city is also looking at a potential route for a proposed beltway around the city. He said the state is pushing for systems that would keep local traffic off of the highway. “They're trying to extend the capacity (of 99) as long as possible,” he said, adding two possible routes – which might be similar in design to Herndon Avenue in Fresno – would be Oakmore on the east and Enterprise on the west. A similar loop around Kingsburg is being proposed.

Timetable

According to the plan, the Goshen to Kingsburg six-lane project is scheduled for construction in 2010 at a cost of $154 million. That will be adding lanes to the median and replacing the Kings River bridges. Another 16 bridges will be widened.

The Betty Drive interchange project is scheduled for 2015, but as Pyle pointed out, that is in “Caltrans time.” Tulare County, through Measure R funds, has been able to speed up projects, such as the Cartmill interchange that Caltrans says is slated for 2012, but Pyle feels could come sooner. Plans are to improve the Caldwell Ave. interchange in 2021, but that too could be moved up with the use of local funds.
Widening Highway 99 from Goshen to Prosperity Avenue in Tulare is slated for 2016 and from Prosperity to south of Tipton in 2030.

A factor that could change the timetable is the 2009 federal highway bill. How much the state gets and if the bill allocation is increased, as President-elect Barack Obama has called for, could move up or push back the timetable for Route 99 improvements through Tulare County.

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County May Gain State Parks

By Rick Elkins

Tulare County - The city of Visalia has asked for more time to study and comment on a plan to develop two state parks in Tulare County.

On Wednesday, the state Department of Parks and Recreation held a workshop in Visalia to review the “Central Valley Vision Implementation Plan.”

Monday night, the Visalia City Council approved the mayor sending a letter to the state asking to extend the time for public comment on the plan from Dec. 15 to Feb. 15.

Visalia Parks and Recreation Director Vincent Elizondo told the council that many county leaders were caught off guard by the plan and all would like more time to look it over.

Visalia City Manager Steve Salomon said a meeting of the city, Sequoia Riverlands Trust and others will be held in the next couple of weeks to “develop a response.”
The plan includes the development of a 2,300-acre state park on Rocky Hill in Exeter and a 1,000-acre park at Deer Creek, southeast of Porterville. It also calls for further enhancements of Colonel Allensworth State Park in Tulare County.
The department began work in 2003 on its Central Valley Vision - a strategic plan for State Parks' expansion in the Central Valley. The result was the November 2006 Central Valley Vision report and the next step is the draft Central Valley Vision Implementation Plan.

The draft 20-year plan focuses on meeting the public's recreation needs in the Central Valley. It outlines planning options to develop new and improved recreation opportunities, acquire new park lands and build economic and volunteer partnerships. However, it is only for planning purposes and does not imply a land acquisition or development commitment.

The plan notes that the Central Valley is lacking in its recreational opportunities, that most Valley state parks are smaller and have fewer amenities than those in other areas, particularly the Tulare Basin region.

“The Valley study area is 19 percent of the area of California but contains only 4 percent of California's public land,” noted the report. In addition, it stated Central Valley residents must travel an average of 50 minutes to reach recreation areas, twice as long as residents of Southern California or the Bay Area.

The plan calls for almost tripling the number of campsites in the Valley, from 1,200 to 3,200; more than double the number of picnic sites – from 900 to almost 2,000; and almost doubling the acres of state parks land in the Valley, from 110,000 acres to 200,000 acres.

Rocky Hill Park

Although probably the most underserved, the Tulare Basin – includes Fresno, Kern, Kings and Tulare counties – has only six park initiatives, and two of those already exist.

The plan calls for the development of the Rocky Hill at Exeter Park that would celebrate Native American culture. The state would develop accessible trails and view platforms to view the rock art and develop a visitor center and museum. At the visitor center the state would develop 50 picnic sites, self-guided interpretive trails and a vista point. The state did not give an exact location for the park.

The Deer Creek Park would be east of Highway 65 and Terra Bella in the foothills of Tulare County. Planned there are 25 picnic sites and trails.

A major park is proposed for along the Kings River east of Fresno below Pine Flat Dam. It would include a recreation area and a water trail along the river. The park would be developed in partnership with Fresno County, the U.S. Army Corps of Engineers and Kings River Conservancy to acquire 500 acres along the river.

The other proposed park is Tejon Ranch off of Interstate 5 south of Bakersfield. Plans are to acquire 60,000 acres there and develop 75 campsites, 40 picnic sites, trails and an interpretive program. The park would also include an equestrian center and dude-ranch concession.

The existing Colonel Allensworth Park would be enhanced by replacing the visitor center and expanding the interpretive programs and the Tule Elk Reserve would be enhanced by added 420 acres and restoring 300 acres of wildlife habitat. There would also be picnic and camp sites added.

Another component of the plan would be the Central Valley Farm Trails Heritage Corridor that would link Highway 99 and Interstate 5 to local farm trails and other agricultural sites.

The final plan is slated for release next year.

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Most Local Banks
Don't Take Bailout Money

By Rick Elkins

Tulare County - Three of out the four banks headquartered in Tulare County that were eligible for bailout funds declined to take the feds up on their offer.

Sierra Bancorp, parent of Bank of the Sierra, Visalia Community Bank and Suncrest Bank all decided not to accept the funds, while Valley Business Bank did file the application for the funds, but Don Gilles, president and chief executive officer of Valley Commerce Bancorp and Valley Business Bank, said a final decision will not be made until the feds finalize the applications.

Bank of the Sierra said no to $32 million, Visalia Community Bank no to about $3 million and Suncrest no to $550,000. Gilles said Valley Business Bank could get up to $7.7 million from the Treasury's new capital assistance program.

The money is part of the $700 billion bailout (Troubled Asset Recovery Program) approved by Congress last month. Jim Holly, Sierra Bancorp's president and CEO, said large banks were forced to take the money, but the smaller banks had a choice. Holly, Visalia Community Bank President Tom Beene and Gilles all stressed that none of the local banks is in any sort of financial trouble.

“We just don't think we need it,” added Mike Wilson, president of Suncrest.
Holly said the government's thinking is that the banks would use the money to stimulate the economy.

“There was a lot of pressure from the feds (for us) to take the money,” he said.
Gilles said the money would give them more capital to acquire banks or open up more branches. “And, it gives us a little more set aside should there be any more problems (with the economy) down the road,” he added. He said it does give them more money to loan, but that has not been a problem.

Holly expressed distrust with the federal government and said there were some strings attached to the money he was uncomfortable with as well.

“We're thinking when the government knocks on your door and says, 'We're the government and we're here to help,' you grab your wallet,” joked Holly.

Wilson agreed. “It was not worth the dilution of the shareholders or having the government looking over your shoulder more than they already do.”

Beene said besides not needing the money, he too was concerned with the strings attached, including more regulations.

Holly said in addition to raising capital ratios to inflated levels, the acceptance of capital from the Treasury would place restrictions on the company's ability to declare dividends and repurchase stock. Furthermore, the Treasury's capital purchase would be in the form of senior preferred stock that carries a mandatory dividend payment of 5 percent (close to 8 percent on a pre-tax equivalent basis), increasing to 9 percent after five years. “This has been described as 'cheap capital' if needed, but in reality equates to expensive debt if it cannot be quickly utilized. In addition to preferred stock, the Treasury would receive warrants to purchase common stock with an aggregate market price equal to 15 percent of the preferred investment, which would be dilutive to current common shareholders,” said Holly in the release.

Other offers all banks went with were the additional FDIC insurance coverage – it rose from $100,000 to $250,000 although it will cost the banks more; and unlimited deposit insurance from non-interest-bearing accounts.

Beene said his bank is still considering a temporary liquidity guarantee program that would have federal backing of any money the bank loans to other banks. That also has a fee attached to it.

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COS Moves Quickly on Projects

By Steve Pastis

Visalia - College of the Sequoias is moving quickly to make the most of the passage of bond Measures I and J by taking advantage of interest rates, state matching funds and even the downturn in the economy.

“We want to move quickly because we want to issue the first series of bonds in March, so we have to have the oversight committee in place,” said COS President Dr. Bill Scroggins. “There's some urgency to get this done because of the state budget situation.”

“We are about to mail out an invitation to members of the public to serve on the oversight committees for Measure I and Measure J. At the December meeting, we will certify the election and the board will establish bylaws for the oversight committees.”

The minimum number of members on each committee will be seven, according to Scroggins, who said that there is no maximum number. Certain categories must be included on the committees, such as a student, a member of an educational foundation, someone from an official taxpayers' organization and a senior citizens' representative. No COS faculty – or anyone else employed by the district – can serve on either committee, but COS representatives will attend the meetings.
“We hope to have the individuals identified by the January board meeting,” said Scroggins, adding that the committees should be functioning within 60 days of that meeting.

On Nov. 4, voters passed Measures I and J, two local bond measures that provide for the growth of the Visalia-based community college.

Among the Visalia expenditures most likely to be included in the first series of Measure I bonds is the $3 million debt from the construction of the John Muir Science Building, which would eliminate some cash flow problems for the college. Other items likely to be included in the first series of expenditures are items for which the state supplies matching funds, such as roofing, air-conditioning and heating.

“We're also on a cycle to replace computers this year,” said Scroggins. “We're in the middle of upgrading media in classrooms and we also plan to do the track. Summer is the time to do that and if we don't do that, then the renovation wouldn't occur until next summer.”

Timing is also important in managing the projects to be funded by the two bond measures.

“We can't do them all at once,” said Scroggins, adding that COS doesn't have the staff necessary to manage all of the projects at the same time. He said that the college is looking at the possibility of hiring someone to manage the projects to get them done more quickly – and take advantage of the economic downturn where there are better values for the school's money.

To help COS structure and time its bonds, the college is being advised by financial adviser Dale Scott, bond consultant David Casanocha and a brokerage firm, Piper Jaffrey. All are based in San Francisco.

“We want to time the sale so we catch the market in the right mood,” said Scroggins, who said that timing is also important in determining the interest rate. “The idea is to get the lowest interest rate possible because the taxpayer has to pay the interest on the bond issue.”

Voters in Visalia, Exeter, Farmersville, Woodlake and surrounding communities passed Measure I, a $28 million bond issuance which will be spent on improvements for the Visalia campus. Voters in Tulare, Lindsay, Corcoran and surrounding communities passed Measure J, a $60 million bond issuance to build a new COS college center in Tulare which is expected to be open for classes in 2012.

“We're working with the planning commissions of both Tulare and Visalia as we carry out these projects,” said Scroggins. “The city of Visalia has in its general plan the widening of Tulare Avenue on the south end of our campus. As we expand down to Tulare Avenue, we want to work with the city with the timing of the widening of the street.

“In Tulare, the discussion has been around the annexing of our property into the city,” he said, adding that transportation has also been on the agenda. “We'd really like to see a transit center and a regional transportation center to get students to the campus.”

The site development plan for the new Tulare COS campus has been approved and the property is in the bid process for the site development – roads, sewers, electricity and soil compacting – which is in the budget for the 2008-09 fiscal year from Proposition 1D funds.

Those interested in joining one of the citizens' oversight committees can fill out an application available at www.cos.edu or by calling 730-3702.

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Svenhard's Exeter Plant on a Roll

Exeter - In this economic environment it may be surprising to hear about a business expansion. But no matter what – you gotta' eat. For food companies, the solution is to cut costs – no matter if you are selling gourmet health food or sticky buns. Either way, Tulare County fills the bill.

Family-owned Svenhard's Swedish Bakery is preparing to open its 220,000-square-foot bakery in Exeter next March with loans and grants from the city of Exeter redevelopment agency along with the Tulare County EDC's help with an SBA loan.

Exeter City Administrator John Kunkel confirms a request by Svenhard's to receive a $337,000 loan and grant that will likely be approved by the city next month. That's money that will be used to install new state-of-the-art baking and packaging equipment for a new line of product to be made by Svenhard's in Exeter.

“We expect them to hire over 30 people by the end of March on their way to 50 employees next year.” Svenhard's officials have said full production could mean 150 jobs long term.

Besides the money from Exeter, Svenhard's hopes to get its EDC loans approved in the next few weeks in an effort to relocate some production now all done in Oakland to Tulare County. The company has owned the plant site here for more than a decade but it has been sparsely used.

Kunkel says the company has been working with the city on water use and waste water issues and that no major problems have surfaced.

Last December, the Valley Voice wrote a story about the company plant reopening the mostly unused facility in Exeter. Company owner Ronnie Svenhard lives in Exeter. For the past year, the company has been working on engineering plans for the facility. The baking company has said the new plant will be highly automated and enjoy major cost savings, compared to the Bay Area plant that employs about 400.
Svenhard's makes several varieties of sweet rolls, bear claws and other baked items. Walmart is its biggest customer. The jobs will be year-round.

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Local Leaders Balk on
High Residential Density Goal

San Joaquin Valley - Agoal to preserve farm land and reduce air pollution by increasing housing densities got a little tougher with the passage this year of state Senate Bill 375 that requires the state Air Resources Board to set requirements in planning to meet air quality standards.

The San Joaquin Valley Blueprint process is a collaborative effort of eight Central Valley counties to increase housing density in the San Joaquin Valley. Besides Tulare County, the other counties are Kern, Kings, Madera, Merced, San Joaquin and Stanislaus. The goal is to manage growth in a way to preserve ag land and limit air pollution.

Two weeks ago, at the regional advisory committee meeting of the group, a curve was thrown at the planners in that they now want a bigger increase in density than what most counties had settled upon.

For Tulare County, a goal of increasing housing density by 25 percent over the next 40 years was dwarfed by a new goal of between 100 to 150 percent increase in housing density.

The Regional Advisory Committee is made up of community members and elected officials of the eight Valley counties.

However, at Monday's meeting of the Tulare County Association of Governments (TCAG), lead agency in the Blueprint process, the stated goal of increasing housing density by 25 percent was reaffirmed by the board.

Mike Olmos, assistant city manager for the city of Visalia, said the local cities were trying to be practical with their goals. “It comes down to what we believe our infrastructure can maintain and what our local market will accept,” he said. “Our systems are not designed yet to deal with that level of density.”

TCAG had come up with the 25 percent increase to density after a series of meetings around the county, including with each city council. That increase would have, on average, increased the number of dwelling units per acre from 4.3 to 5.3. However, according to Elizabeth Wright, associate regional planner with Tulare County, the goal that came out of the regional meeting is “definitely higher.” A figure of 10 housing units per acre has been mentioned. A scenario of increasing densities by 75 percent only put 7.5 housing units per acre.

“They would like more densities than what the county's come up with,” said Wright, adding that data is still being compiled that will better define what the density goal will be.

“Essentially, the board and cities feel the higher densities were not feasible for the region,” said Wright. The regional committee had come up with a plan that calls for 32.6 percent of new housing developments to include 20 housing units per acre or more, but the Tulare County group agreed to stay with a goal that 7.9 percent of new housing stock will be built with 20 dwelling units per acre or greater.
The TCAG board will take final action on the density issue Dec. 8.

“SB 375 is a real big deal to our planning,” said Wright of the need to go back and rethink the density goal. The bill basically forces counties to come up with planning that will reduce air pollution and one way of doing that is increasing housing density. She said that while current transportation funds will not be impacted, future state transportation dollars may be tied to higher densities. “We will have to upgrade our modeling of land use policies to meet those goals,” she added.

She said it was that legislation that “influenced” the regional board to recommend higher densities than what the counties had come up with individually.

The density will be based on an average of land zoned for residential growth. It does not take in rural areas or the mountains and Wright said densities will probably be higher in the larger cities than in the smaller cities.

Blueprint Process

In conjunction with Fresno, Kern, Kings, Madera, Merced, San Joaquin and Stanislaus Councils of Government, the San Joaquin Valley Air Pollution Control District and the Great Valley Center, TCAG is working to establish a Valley-wide 50-year growth vision.

Blueprint is a comprehensive scenario planning document that takes into accounts all of the changes that likely to occur in the Valley over the next 50 years. Tulare County received approximately $500,000 for the process. The Blueprint's plans for accommodating future growth and improving quality of life will be designed for implementation at the local level.

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What's New

The owner of the closed Mearle's Drive-In put up a huge new “For Lease” sign on the landmark diner this past week in hopes of snagging a tenant. The package deal apparently comes with the Mearle's name.

California's new high-speed train system will be an infrastructure project on the scale of the State Water Project, generating more than $1 billion in surplus revenues a year by 2030, reducing congestion and pollution, and returning nearly three times as much in value as the system will cost over the next 40 years, according to the rail's Business Plan released last week.

The State Compensation Insurance Fund will boost workers' compensation insurance rates by an average 8.9 percent in January, ignoring the California insurance commissioner's call for a smaller increase.

The city of Visalia has agreed to be a Gold Sponsor of the upcoming Visalia stage of the Amgen Tour of California bicycle race. The race, which is expected to include seven-time Tour de France winner Lance Armstrong, will depart from Visalia for Paso Robles on Feb. 19.

Caltrans will use a $5 million federal grant for the Kings Park Project in California's Central Valley to help fund a rail project in Kings County. The project will connect a 4.5-mile existing section of tracks with another existing section of tracks, resulting in a 9.5-mile continuous double track in Kings County south of Hanford. This improvement will allow trains to move through the corridor at the maximum track speed of 79 mph.

Williamson Act on budget chopping block once again. Gov. Arnold Schwarzenegger's proposed budget cuts include the permanent elimination of state support for the Williamson Act, a program that protects more than half of California's 30 million acres of farmland from the economic pressure to be developed into a higher valued use. The savings to the state budget would be $34.7 million, and it would stop payments to 54 counties that participate in the conservation program. Tulare County receives more than $3 million a year from the state for land in the Williamson Act program.

Gas prices continue to dive locally. In the past week, the price for a gallon of unleaded regular dropped another 23 cents to $2.345 a gallon, although motorists can find gas for below $2 a gallon at some stations. According to AAA, that average is down from $3.415 a month ago and from $3.432 from a year ago. Diesel also continues to slide, falling below $3 a gallon for the first time in many months. As of Tuesday, the AAA reported diesel at $2.974 a gallon, down nearly a dollar from a month ago ($3.731).

Crossroads Community Church, which has met for some time at the Visalia Convention Center, may lease the remainder of the former Buckman Mitchell building on Main Street for its new location. The building has over 16,000 square feet that can be used for the Visalia church.

Single family home building is pretty much dead in the water in Visalia this year with new permits numbering in the twenties last month and this. But not so with apartments and other high density units with a submittal of two plans to the city site plan review process last week, totaling 231 units at Cameron and Stonebrook, and a second large project at 901 E. Caldwell, totaling 248 units.

Great Lakes Airlines reported that 553 passengers flew from Visalia to Ontario in October, the first full month of operation for the airline. That is 40 more passengers who flew on U.S. Airways Express, the former air carrier that flew out of Visalia, in its first month of operation here.

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Top of the News

Another Mall Owner
In Financial Pain

Pain in the economy is on display up and down Mooney Boulevard this month where many landmark businesses are suffering a slowdown in sales as work continues to widen the boulevard to make room for more shoppers.
Case in point, this past week was news that General Growth Properties, owner of the Visalia Mall and five more shopping malls in the Central Valley, suggested in a federal SEC filing that it could file for bankruptcy because it is having trouble refinancing its debt. The company's stock went from around $40 a share this summer to 40 cents a share a few days ago.

No better is the mall's top anchor – Gottschalks, whose shares are now below a dollar. That busier mall has been joined by the city's less busy Sequoia Mall down the street whose owners filed a plan to shut down a retail chain they own in the Midwest a few weeks ago. This mall includes Mervyn's – a retail chain going out of business this holiday season, and nearby Circuit City that has now declared bankruptcy – bah humbug.

Little Comment on
Impact Fees Revision

Few comments were made during the Visalia City Council public hearing Monday into changes to the city's Transportation Impact Fees. The council is now set to approve the changes at its Dec. 1 meeting.

Most fees are either dropping or remaining the same, said officials who have been working with developers for months to iron out a new fee schedule. Developers argued the fees were too high and city officials agreed there were many flaws with the old system.

However, for some the new fees do not mean less costs. Sabrina Linden of Pacific Union Homes asked the council if her company could be grandfathered into the old fee schedule, explaining the new system will cost her company an extra $300,000 for its 400-plus lot subdivision in north Visalia. It seems, for some projects, while the fees are lower, the city's reimbursement for street work is less.

Steve Peck of Mangano Company, praised the council and city staff for all the work in coming up with a plan that is more palatable to everyone. “It's taken a while to get here, but we have a plan that is less imperfect than what you had.”

Recreation Ballpark to
Get New Playing Field

Stressing the cost is within the $11.6 million allocated to make improvements to Recreation Park, the Visalia City Council approved going ahead and replacing and improving the playing surface of the baseball field that is home to the Visalia Rawhide.

The council OK'd expanding the scope of the stadium improvements to include the playing field that Rawhide officials said was in poor condition and a threat to the safety of players.

Cost of the playing surface work is not to exceed $250,000. Work is more than half completed on the right field improvements that include new dugouts, new stands, new restrooms, an office and more – the first major upgrade to the park that is more than 50 years old.

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