Gov. Schwarzenegger Announces Special Session to Address Fiscal Emergency

Governor Says Reducing Spending is Way to Solve the Problem

Citing a projected current-year budget shortfall of $3.3 billion, Governor Arnold Schwarzenegger announced today that he will issue proclamations declaring a fiscal emergency and calling a special session of the Legislature to address it on Thursday, January 10, 2008.

The proclamations will be issued concurrently with the release of the Governor's proposed 2008-09 state budget. Emergency legislation is also being drafted over the holidays to address the current year shortfall and will be introduced immediately upon opening of the special session.

"While California's economy remains fundamentally sound and continues to grow, a combination of factors has dramatically changed our budget outlook this fall," Governor Schwarzenegger said. "I have briefed each of the legislative leaders on our projected budget shortfall and I believe that when the Legislature reconvenes in January immediate action is necessary. I will continue my discussions with the leaders in the coming weeks, so that we can narrow as many differences as possible and move quickly in the special session to bring this year's budget back into balance. In addition, I have also met with dozens of officials in the last three weeks including law enforcement and education leaders, as well as advocates for patients and persons with disabilities, to talk about our budget situation."

Since taking office, Governor Schwarzenegger has actively pursued policies to achieve greater fiscal stability for the state without stealing from local governments and infrastructure funding. He successfully negotiated and campaigned for passage of Propositions 57, 58 and 1A, protecting local funding and transportation dollars for local projects in 2004 and he campaigned unsuccessfully for a spending cap in 2005.

"I firmly believe that the way to solve our chronic budget problem is with fiscal restraint. We will figure out how to get spending in line with revenue," said Governor Schwarzenegger. "We must take action as soon as the Legislature returns to close the current-year shortfall and balance the budget for the coming fiscal year. But it is also essential for us to make long-term fundamental budget reform an absolute priority. Our current situation makes it clear the state's budget system is flawed. However our fiscal adversity actually creates an opportunity - if we rise to the challenge - to implement lasting reform. I believe that we must and I am ready to work with the Legislature to achieve it. In the meantime, Californians should enjoy the holiday season with the confidence that our economy is fundamentally strong."

Among the factors contributing to the current-year shortfall:

• A revised - and lower - current-year revenue forecast, driven in part by the continuing slump in the housing sector and the ongoing effects of the subprime mortgage collapse.
• Increased firefighting costs related to this fall's wildfires in Southern California.
• Legal challenges that have delayed implementation of Indian gaming compacts.
• Lower estimated local property tax revenues, which affect the state's share of K-14 school funding.
• An appellate court decision in a lawsuit over teachers' retirement funding.

Under the provisions of Proposition 58, approved by Californians in March 2004, the Governor has the authority to declare a fiscal emergency if he determines that the state faces substantial revenue shortfalls or expenditure increases. The Governor is then required to call a special session of the Legislature and to propose legislation to address the fiscal emergency. If the Legislature fails to approve and send legislation to the Governor to address the fiscal emergency within 45 days, it would be prohibited from acting on any other bills or adjourning in joint recess until such legislation is passed.

Nearly Two Million Travelers Expected to Pass Through LAX, 225,000 Through ONT During Year-End Holiday Season

LOS ANGELES, CA--(Marketwire - December 20, 2007) - Nearly 2 million travelers are expected to pass through Los Angeles International Airport (LAX) during the annual year-end holiday season that begins Friday, Dec. 21, and continues through Wednesday, Jan. 2, 2008. This year's holiday period total of air travelers is forecast to exceed last year's comparable period by 3 percent.

At LA/Ontario International Airport (ONT), more than 225,000 passengers are expected this holiday season, an increase of 5 percent over last year.

LA/Palmdale Regional Airport, which opened on June 7, offers Antelope Valley travelers two daily roundtrip jet flights to San Francisco International Airport (SFO) on United Express. At SFO, passengers can make easy connections to scores of international and domestic destinations.

The busiest travel days during this holiday period are expected to be the three days before Christmas and Jan. 2, when airlines forecast flights to be nearly or 100 percent booked.

LAX passengers will experience improved conveniences, such as the expansion of non-stop FlyAway bus service from Westwood, in addition to established service from Van Nuys and Union Station. The cost is $4 one way for adults. Travelers from the Westwood and Van Nuys FlyAway locations also can obtain airline boarding passes and check baggage for a separate $5 fee -- allowing them to go straight to passenger security screening when they arrive at their terminal.

Passengers can enjoy a meal at the re-opened Encounter Restaurant in the heart of LAX. It is open for lunch daily from 11 a.m. to 4 p.m., and dinner on Friday and Saturday from 4 p.m. to 9:30 p.m.

Other new amenities at each terminal include wireless Internet service (Wi-Fi) and electric charging stations for portable electronics.

International passengers processing through customs and immigration at the Tom Bradley International Terminal will experience a brighter, spacious and more modern facility with the opening last week of the first of a three-phase renovation to the customs arrivals hall. Upgrades include brighter and more energy-efficient lighting, new temperature controls, larger and more efficient baggage-claim carousels, new work spaces and computers for customs and immigration agents to process inbound passengers, new luggage inspection stations, new digital communications wiring, new utilities and plumbing, and new restrooms. The second phase of renovations in the customs arrivals hall will begin soon to be completed Fall 2008.

Airport officials recommend passengers departing LAX arrive at their airline ticketing lobby two hours before domestic flights and three hours before international flights, especially during daily peak travel periods from 6 a.m. to 9 a.m., 11 a.m. to 2 p.m., and from 7 p.m. to 9 p.m. With winter weather conditions across the U.S. , passengers also should check with their airlines before coming to the airport to ensure their flights are on time.

Travelers at LA/Ontario International Airport are urged to arrive at the airport 1-1/2 hours before domestic flights and two hours before international flights serving Mexico.

Fed offers modest rate cut

WASHINGTON (Reuters) - The Federal Reserve cut U.S. interest rates by a modest quarter-percentage point on Tuesday, disappointing Wall Street hopes for bolder action but offering some help to an economy facing credit strains and a deep housing slump.

The central bank's decision takes the bellwether federal funds rate, which governs overnight lending between banks, down to 4.25 percent. While the action was widely expected, some economists had thought the Fed might offer a bolder half-point reduction.

In a related move, the Fed trimmed the discount rate it charges for direct loans to banks by a matching quarter point. Here too, some market participants were dissatisfied. Many had thought the Fed would lower the discount rate by more than the federal funds rate to loosen tight credit markets.

The blue chip Dow Jones industrial average .DJI closed down 294 points, or 2.1 percent, while prices for U.S. government bonds surged as investors sought safer assets.

"This was not what the market was looking for and did not move to clarify Fed intentions or assuage concerns of market participants of another leg down in the economy and resurgence of financial turmoil," said Joseph Brusuelas, chief U.S. economist of IDEAglobal in New York.

A Fed source, who asked not to be named, said the central bank was aware credit market strains had grown worse and said it was actively considering ways to ease the pressure.

Busy airports, crowded planes expected this Thanksgiving

Thanksgiving travelers should expect full flights and busy airports this holiday season. The Air Transport Association predicts that the number of people traveling this Thanksgiving will rise 4% from year-ago levels. Some travelers are flying earlier or staying later to get less-expensive fares and beat crowds. The TSA is urging travelers to eliminate clutter in their luggage, and an Air Transport Association spokesman noted that every effort to speed up security lines will make traveling easier this Thanksgiving.

Situation Assessment

THIS REPORT MAY CONTAIN UNCONFIRMED INFORMATION THAT IS SUBJECT TO CHANGE.

DATE/TIME OF REPORT: 10/24/07 0900 Hours

Situation Assessment: Firefighters are still actively battling both the Grass Valley and Slide fires.

The Slide Fire is burning 5,119 acres. Grass Valley fire is still estimated at 1,000 acres and Incident Command reported no significant movement overnight. The Type 1 team was activated this morning at 0600 Hours.

Incident Command reports a shortage of resources at each fire combined with extremely dry conditions and continued adverse weather. There is no new information from the Incident Command Post on structure loss at this time. Teams are currently in the field and conducting damage assessment as the fire activity allows.

Roads: All upbound mountain roads that lead to those affected communities remain closed to non-emergency traffic. Evacuees are strongly urged not to use State Route 330 to leave the mountain.

Schools: All San Bernardino City Schools are closed. All Rim of the World schools are closed. Four schools in Redlands – Arroyo Elementary School, Beattie Middle School, Highland Grove Elementary, Cram Elementary – are closed.

For More Information: Please call the U.S. Forest Service at (909) 383-5688, the San Bernardino County Fire Information line at (909) 355-8800 or visit the county website at www.sbcounty.gov and click on Disaster Information at the top of the page.

SITUATION SUMMARY REPORT

SITUATION SUMMARY REPORT # 6

DATE AND TIME: October 23, 2007 3:30 p.m.

PREPARED BY: San Bernardino County Office of Emergency Services

SB County Fire Department

Office of Emergency Services

(909) 356-3998

EVENT: San Bernardino County Fires

INCIDENT NAME: Grass Valley/Slide/Freeway/Walker Fires

Evacuation Update: (1) Every community west of Snow Valley is under a mandatory evacuation excluding Valley of Enchantment and Cedar Pines Park, which are still under voluntary evacuation. (2) Mountain community Hospital has officially been advised to evacuate.

SITUATION ASSESSMENT:

Grass Valley Fire: Is burning in a southerly direction in the Lake Arrowhead and Twin Peaks area and is now established in the tunnel 2 ridge area. Fire is at 1,000 plus acres and with extensive spot fires with 5% containment. Structural damage includes 100 plus structures.

Slide Fire: Is burning with 4,000 plus acres in the Green Valley Lake and Running Springs area. Overnight the fire burned around the west side of Running Springs and is now established along Hwy. 330 below the Fredalba area. Structural damage includes 125 plus structures with additional structure loss at this time.

Freeway Fire: Fire located at south of I-210 and east of I-15 in the vineyards has been contained at 30 acres.

Walker Fire: Was contained at 160 acres. Personnel have been released.

Evacuations: Over 1,776 evacuees were served breakfast this morning by the Red Cross at the National Orange Show Shelter in San Bernardino. The exact number of shelter evacuees is being determined. The Victorville Fairgrounds is the location for the other evacuation shelter site. Mandatory evacuations remain in effect for all other communities from Crestline east to Green Valley Lake and the Snow Valley area including South Lake Arrowhead and Cedar Glen. Voluntary evacuations are still in effect for Cedar Pines Park, Valley of Enchantment and the City of Highland between Hwy. 330 and Weaver Avenue, north of Highland Avenue.

Animal Evacuations: The small companion animal shelter sites are the Devore Animal Shelter and San Bernardino Valley Humane Society. The livestock shelter sites are the Devore Animal Shelter and Glen Helen Rodeo Grounds. The National Orange Show fairgrounds, in the City of San Bernardino, has a temporary animal shelter and evacuation trailer.

1. EOC Activations:

San Bernardino County EOC remains activated at Level III.

The City of San Bernardino EOC is now activated at Level III.

The City of Highland EOC has activated to a Level I.

The City of Rancho Cucamonga EOC has activated to a Level I with limited staffing.

The Ontario City EOC has deactivated.

2. Road Closures: All roadways into the San Bernardino Mountains are closed to upbound, non-emergency traffic, including SR 18 from 48^th St. to Big Bear Dam, SR 330 from Highland Ave. to Running Springs, and the SR 138 at SR 173. Northbound Interstate 215 at the southbound Interstate 15 junction is closed. Southbound Interstate 215 is open. In Ontario, all roads are opened.

3. Curfew Order: By action of the Chairman of the San Bernardino County Board of Supervisors, a curfew for all mandatory evacuation areas from sunset to sunrise until further notice. Residents are not allowed into mandatory evacuation areas at this time.

4. Cooperating Agencies: San Bernardino County Fire, San Bernardino County Sheriff’s Department, Cal Fire, Rialto City Fire, Redlands City Fire, Colton City Fire, San Bernardino City Fire, Loma Linda City Fire, Running Springs Fire Protection District, Apple Valley Fire Protection District, City of Twentynine Palms Fire, Twentynine Palms USMC Fire, Upland City Fire, City of Rancho Cucamonga Fire, Montclair City Fire Department, Mono County Fire, Hesperia Fire Protection District, Running Springs Fire Protection District, Victorville City Fire, Ontario City Fire Department, Crest Forest Fire Protection District, Chino Valley Independent Fire Protection District, City of Big Bear Lake Fire Department, Fort Irwin Fire Department, Morongo Valley Fire Department, City of Barstow Fire Department, and Barstow Marine Corps Fire Department.

5. Presidential Declaration: Early Tuesday morning, the President declared that an emergency exists in the State of California for the Southern California Counties affected by the wind-driven fires. He ordered Federal aid to supplement State and local response efforts in the area struck by wildfires beginning on October 21, 2007 and continuing.

The President’s initial action authorizes the Department of Homeland Security, Federal Emergency Management Agency (FEMA) to provide appropriate assistance for emergency protective measures, as authorized under Title V of the Stafford Act (categories A and B of disaster relief assistance), to save lives, protect property and public health and safety, and lessen or avert the threat of a catastrophe in the counties of Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura. It is anticipated that this Presidential Declaration of Emergency will be expanded to a Declaration of Major Disaster, which will open other designated relief for Individual Assistance.

Next Situation Summary Report as the situation is updated.

OTHER HELPFUL INFORMATION --

Governor Schwarzenegger's Southern California Fires Webpage http://www.calfires.com/

Red Cross Operating Multiple Shelters for Wildfire Evacuees www.redcross.org Phone: 909-888-1481

Public Numbers for Fire Areas and Public inquiries

County	Number
Orange County PIO	714-628-7085
Orange County Media	714-573-6200
Ventura	805-388-4276
Los Angeles	800-980-4990
San Bernardino County Info Line USFS	909-355-8800 909-383-5688
San Diego	211 or cell users 858-300-1211
Santa Barbara	805-961-5770 or 805-681-4100
Riverside	951-940-6985

Caltrans Information (Road Closures)

http://www.dot.ca.gov/ FOR INFORMATION PLEASE CALL (909) 388-7087 OR (866) 383-4631

Parents who are separated from their children

Parents who are separated from their children and believe their children are in the fire endangered communities should call (909) 387-8313. Sheriff's deputies are working with fire officials to find the children and transport them down to a safe place.

Human Evacuations

Issues concerning evacuation/movement of humans and animals are being addressed. For information regarding access to, and reunion with affected family members call (909) 387- 8313.

Sheltering:

Human Shelter: 1) Orange Show Fairgrounds - 689 South E Street San Bernardino. Note: Assessing additional shelter sites for the Valley and North Desert areas.

Animal Shelters - Small Animal

1) Devore Animal Shelter - 19777 Shelter Way Devore (909) 887-8055

2) San Bernardino Valley Humane Society - 374 W. Orange Show Road, San Bernardino (909) 386-1400

Animal Shelter - Large Animal/Livestock

1) Devore Animal Shelter - 19777 Shelter Way Devore (909) 887-8055

2) Glen Helen Regional Park - 2555 Glen Helen Parkway, San Bernardino (909) 887-7540

Public Information:

US Forest Service : 909-383-5688

County Incident Information Hotline: 909-355-8800

For the most current fire and emergency information you can visit www.fire.ca.gov

Fire and Recovery Information

Fire and Recovery Information

Contact phone numbers for fire information:

Ontario Disaster Hotline - (909) 988-3650
San Bernardino County Fire Department Information Line - (909) 355-8800
US Forest Service Fire Information Line - (909) 383-5688

More Information, Click: http://www.disasterportal.org/Ontario/home.htm

Ontario will lose Sunkist plant soon

ONTARIO - It is one of the last remaining testaments to the flourishing citrus industry that once dominated and shaped this region.

And soon it, too, will be gone.

Sunkist recently announced its plant in Ontario will be heading to the Central Valley - a trail already blazed by much of the agriculture in the area.

"It's always hard to make a move, but this move is going to be very beneficial and cost-effective for the growers," said Claire Smith, spokeswoman for Sunkist.

And California and Arizona growers who make up the Sunkist cooperative will be able to haul all their fruit to the Tipton facility - sort of like a one-stop shop in the Central Valley, she said.

Smith said the timing is ideal, too, since the harsh January freeze left few lemons for the Ontario plant to make into juice, oil and other by-products anyway.

The move cannot come as a shock to anyone who has watched the

citrus packinghouses close down and the orange groves get torn out and replaced with homes little by little since the 1950s.

Still, the exodus of Sunkist's plant from Ontario is the end of an important chapter in local history.

The plant's story began in 1926, when Ontario was selected as the location for the orange produce plant because it was the "ton-mile center," William E. Baier said in an oral history from 1978.

It was the shortest hauling distance from all other points, which included growers in the San Joaquin Valley, Ventura County and the Redlands area, Baier said.

The Exchange Orange Products Company in Ontario was able to turn losses into profits for growers just in time for the Great Depression.

Fruits that couldn't be sold on the fresh market could still make money. A popular early by-product was marmalade, but citrus was also processed into juice, oils, pectin, cattle feed, and citric acid, among other things.

A research facility was housed onsite at the Ontario plant as well, and scientists tested citrus parts, such as pectin, which makes jelly and was thought to be a blood extender during World War II.

In 1970, the old plant came down and a new facility designed to process 1 million tons of citrus products a year went up in its place on the 25-acre property.

Many citrus-based products were developed and marketed during this time, including Sunkist orange soda, Sunkist popsicles and Sunkist fruit gems candy.

In the past few decades, though, the demand for housing in the region has sent local growers - along with dairymen - north or out of state.

"The cost per acre makes it more profitable for farmers to sell their land than to grow their crops," said John Roe, sector superintendent for California Citrus State Historic Park in Riverside. "Riverside alone was 20,000 acres of citrus agriculture. Today, we're looking at 2,000 acres."

Smith said the Sunkist plant's pending departure works on many levels for citrus growers.

"Lemon peels are used for cattle feed, and that's going to be quite a popular ingredient now because corn is being used more for ethanol, and the dairies that used to be down here have moved up to Central California," Smith said. "So, it makes sense from all standpoints."

The logic behind the move may be sound, but the Sunkist plant's departure from Ontario will still be a cultural loss.

And the news might not be celebrated by the plant's 45 employees who might soon be out of jobs.

Smith said several of the employees will be offered a chance to relocate up north, but it's likely those with homes or family in Southern California will decline.

The Sunkist plant on Sunkist Street in Ontario, however, will continue operations by contract for about one year, until the move to Tipton is complete, Smith said.

ONTARIO CHAMBER RETURNS FROM WASHINGTON D.C. ON FIRST EVER LEGISLATIVE FLY IN

The Ontario Chamber of Commerce traveled to Washington D.C. to meet with the U.S. Chamber and Congressmen Joe Baca, David Dreier, Gary Miller, and Ken Calvert. This trip jumpstarted the Chamber’s 2008 legislative agenda and planning process in representing the interests of Ontario businesses with government.

The Chamber formed strategic partnerships with local businesses and the U.S. Chamber in order to build and sustain a bipartisan coalition on issues at the federal level that impact us at the local level. The Chamber wants to ensure Ontario businesses will have access to information and access to the decision makers impacting the Chamber 2008 legislative priorities.

Finally, the Chamber met with key business leaders, the Governor’s office, and the U.S. Chamber of Commerce to develop an action plan on the Chamber’s legislative priorities. The Chamber will now finalize the details of is 2008 legislative priorities in the coming months after returning from the trip.

L. A.'s Shortcut To The Sky

Ontario Wal-Mart approval appealed

ONTARIO - There was little shock Friday afternoon when Ontario officials learned the Planning Commission's decision to allow a Wal-Mart Supercenter in the city had been appealed.

After about six hours of public comments Aug. 30 - and years of vocal opposition by segments of the community - the commission had approved the plan to build a Supercenter at Fifth Street and Mountain Avenue in Ontario.

The appeal was filed Friday by San Diego-based Briggs Law Corporation, which is led by attorney Cory Briggs.

The Ontario City Council will proceed over the appeal hearings at a future meeting - something city officials had said they expected whether the project was approved or denied.

President Bush discusses problems in Mortgage Market

County advertising itself

FONTANA - San Bernardino County brokered a nearly

$1 million three-year marketing deal with California Speedway to place the county logo in the Opportunity, California FanZone - and officials expect a major return on their investment.

The FanZone, which turns a year old this weekend, is the area behind the grandstands where race fans can buy souvenirs and concessions, and receive samples from sponsors. They also can view exhibits on display, watch concerts and see motorcycle shows.

For $956,000 a year, the county will see its logo on the FanZone's trackside billboards, turf space, fencing, banners and signs.

Having the logo present at the FanZone provides invaluable exposure for the county and helps court business interests, said Paul Herrera, communications coordinator with the county's Economic Development Agency.

"NASCAR brings such a major audience that we could never access otherwise," Herrera said. "It provides a platform for us to let businesses know why they should invest here."

A county report released in June echoed Herrera's sentiments, saying "marketing at the California Speedway and through NASCAR has allowed San Bernardino County to extend its image to the broadest

possible audience at far lower cost than otherwise possible."

Last year's races drew a television audience of 8 million, Herrera said - not including all of the replays on ESPN.Many clips showed the county's logo.

"Our name is out there, and that has value to it. That brings in the inquiries. Some people, they know Los Angeles and Orange counties but they have never heard of us before."

The exposure may pay off in such a big way that soon business interests will see how much San Bernardino County has to offer, Herrera said.

"Then, eventually," he said, " we'll become the ones who are courted."

County officials estimate that they have seen a return of $7.1 million on their initial $700,000 first-year investment to sponsor the FanZone.

"So far, San Bernardino County has reached an estimated 16 million people through our marketing partnership with the California Speedway," said county Board of Supervisors Chairman Paul Biane.

That's the kind of positive and far-reaching exposure the county needs in order to attract new investment, he said.

"We can't stand on the sidelines and wait for businesses to discover the opportunities San Bernardino County has to offer," Biane said. "We have to get out there and shout it from the rooftops, and that's exactly what our partnership with the Speedway allows us to do."

County officials are not worried about competition with the Laughlin Party Zone, a VIP area that provides food and beverage service, personal question-and-answer sessions with drivers, which the Speedway has been heavily promoting.

However, unlike the FanZone, the PartyZone isn't free. Fans must pay between $85 and $175 to get in, depending on how long they want to remain in the Zone.

"There are 50,000 people who visit the FanZone per day during the races," Herrera said. "The PartyZone is going to see a fraction of that."

Fans are willing to drop big bucks at the FanZone, too.

Robbin McGinnis of Fontana said she "does all of her Christmas shopping at the FanZone."

Visitors who arrived at the races early on Friday also appreciated some of the new luxuries introduced at the FanZone this year.

"These misters are great," McGinnis said of the new cooling devices installed outside the restrooms. "And it seems like the FanZone is easier to negotiate this year and it seems like there's a little more shade."

Even the searing temperatures Friday were not enough to keep die-hard fans away from the Speedway.

Mark Wendt and his sister Cheryl said they drove in from Tustin early Friday to beat the traffic and to make sure they had enough time to peruse the FanZone "just to see what the souvenir trailers and the other set-ups are offering."

Victorville resident Cindy Navarette said her three sons - Joseph, 8, Jacob, 6, and Jesse, 3 - wanted to come to the races early to wander the FanZone, even in the heat.

"We're fans," said Navarette.

She added that the boys were rooting for their favorite drivers, Dale Earnhardt Jr., Jimmie Johnson and Kasey Kahne.

Weekend events

Today: The Opportunity, California FanZone gates open at noon. The NASCAR Busch Series Camping World 300 race starts at 7 p.m. Former driver and 17-year NASCAR veteran Brett Bodine, who now serves as NASCAR's director of cost research and has been instrumental in the testing of the Car of Tomorrow, will be on hand for a Q&A session on the Car of Tomorrow at 2 p.m. in the Laughlin Party Zone.

At 2 p.m. today, last year's winner, driver Kasey Kahne, will be inducted into the Speedway's Walk of Fame at Gate 12 where he will imprint his hands and feet.

Sunday: FanZone gates open at 10 a.m. The Rock 'n' Racing Miller Lite Concert featuring actor Jared Leto's band, 30 Seconds to Mars, starts at 2 p.m. The California Speedway Girls make their debut and provide umbrella shade to drivers during the introductions and escort them in the parade.

The Sharp Aquos 500 race starts at 5:15 p.m.

Ontario Mills enters new era

With 18 new stores, five relocations and 10 remodels this year so far, the Ontario Mills mall seems to be undergoing a sort of rebirth.

Owned by Simon Property Group since late March, the outlet mall, which opened in 1996, is seeing some updates.

Sue Oxarart, marketing director for Ontario Mills, however, said the recent changes and improvements are the result of the mall's decade-long existence.

"A lot of leases have five- or 10-year terms," Oxarart said. "Once the mall celebrates its 10th anniversary with the renewal of leases, you start to see quite a facelift and remodel to some of these stores. If a store wants to stay with us another 10 years, sometimes there's a requirement to remodel the store."

Many brand-name stores have been appearing, too.

"Every year you see new stores and changes, but this has been a great year for new tenants," Oxarart said. "It's been dynamic since January. When you have that many new stores, it's pretty dramatic all at once."

New arrivals since the beginning of the year include Banana Republic Factory Store, Abercrombie Outlet, Aldo Shoes, BCBG Maxazria, Daniel's Jewelers, Via Havana and Victoria's Secret - which will open in a few weeks, among others.

Oxarart attributed the mall's new stores to the efforts of leasing teams and requests from customers.

Two oft-requested stores are Lane Bryant and Jones of New York - both of which are in discussions with the mall's leasing representatives, she said.

Since its opening, Ontario Mills - which defines itself as a discount value mall distinct from Rancho Cucamonga's outdoor lifestyle center, Victoria Gardens - has been wildly successful, said Greg Devereaux, Ontario city manager.

The 24 million shoppers who visited the mall in 2006 overshadowed attendance even at Disneyland, which had 14.73 million visitors the same year.

"It's been a very successful mall," Devereaux said. "At the time it opened, it was the primary shopping and entertainment experience out here in the Inland Empire."

But before Simon Property Group's acquisition of Ontario Mills and other assets from the struggling Mills Corp. earlier this year, some residents and city officials had grown disenchanted with the mall.

"From a sales standpoint, the mall continued to be successful. But I don't think it was maintained as well as we would've liked," Devereaux said, adding the landscaping was neglected and storefronts looked inconsistent in recent years.

Ultimately, Mills Corp. had been in a financial crisis, and some say the company started to invest resources in new properties rather than in maintaining existing ones.

Devereaux said he is confident the Simon Property Group will keep the mall looking sharp.

"I've never seen a Simon property that wasn't maintained in a first-class condition," Devereaux said. "So I believe Simon will address that."

Les Morris, spokesman for Simon Property Group, recently said the company was still evaluating all of its new properties - including Ontario Mills.

"We've proven over the years that we can bring value to properties we acquire," Morris said. "Malls don't stay the same. They either get better or they get worse, and we're laser-focused on improving every property we have."

Morris said, however, there were no plans yet for changes, and no further details could be disclosed.

In the past few weeks, new pygmie palm trees, rockscapes and lights were installed around the property to replace trampled grass and bare planters, Oxarart said.

Oxarart said Ontario Mills' storefronts are a lot more consistent and up-to-date today.

"When Ontario Mills first opened in 1996, everything was new at the same time, there were a lot of bright colors and neon, and the theme reflected 1996," Oxarart said. "As new stores were brought in, they had a totally different look, so there was a transition. Now, there's a cleaner, sharper edge that's updated."

With new ownership and shifting demographics in Ontario - and, consequently, Ontario Mills' market - more changes could be afoot.

Devereaux said he'd like to see the property used differently in the future.

"Another disappointment was that (Mills Corp.) didn't look at taking advantage of the property, such as mixed-use opportunities," Devereaux said. "I think, given the amount of land there, there's potential for additional offices, hotels, residential, maybe even retail."

One way to utilize all that space is by putting in parking structures, he said.

"As the Inland Empire matures as a real-estate market, flat parking fields become more valuable developed than left flat, and I think that's part of the examination Simon will do," Devereaux said.

Although Simon representatives could not comment on those ideas, there are factors that will inevitably change things for the mall.

Oxarart said Ontario Mills' primary market consists of people living within 22 miles to the west, seven miles to the north and 25 miles to the south and to the east.

With all the development coming to the city - including a substantial amount of Class A office space and higher-end residential units - Ontario Mills' market is sure to change.

Some of the newest stores - such as Via Havana, which opened a few weeks ago and sells hand-rolled cigars - already reflect that future market.

"The demographic is changing, along with income levels," Oxarart said. "And that's why you're starting to see more brand names now in Ontario Mills."

Quality One buys building for $1.3M

Quality One Engineering, a computer-engineering firm, purchased a 10,140-square-foot industrial building in Ontario for $1.3 million, Grubb & Ellis announced.

This is an expansion for the company, which also owns a 13,154-square-foot building in Ontario. Quality One Engineering has already occupied the concrete tilt-up building, which is located at 2182 Maple Privado. The property was sold by a private investor.

Mitch Fisher and Richard Schwartz of Grubb & Ellis' Ontario office represented the buyer in the transaction. John Boyer of NAI Capital represented the seller.

Office space sector strong

Contrary to a slowing housing market, office and industrial development is moving full speed ahead in the Inland Empire.

But these aren't your average Inland Empire buildings, and they're attracting more than just blue-collar workers.

Within the concrete tilt-up warehouse and multistory office projects popping up all over the region, a new type of professional work-space is making the region its home, according to local researchers who study the subject.

Class A office space might look like skyscrapers in downtown Los Angeles, but in places like Rancho Cucamonga and Ontario, these buildings come in four- and five-story, glossy-looking edifices that tower above swaths of strip malls and major thoroughfares.

"They've taken off in the last five or six years at warp speed," said Mary Sullivan, a research analyst with Grubb & Ellis Company, a commercial real-estate advisory firm.

For most of the Inland Empire's work-space history, office and industrial developments came in small pockets of development, Sullivan said.

They were a step down from Class A, commonly referred to as Class B or C. You'd notice new construction projects, but they were few and far in between, and they didn't incorporate a mixed-use theme, she said.

But things have changed - big time.

You can now easily find high-end office and industrial space all over San Bernardino and Riverside counties, Sullivan said.

Redlands, San Bernardino, Riverside, Corona, Chino Hills and Diamond Bar are on this list of new work-space construction, where companies from Los Angeles and Orange counties are establishing office branches and attracting both white-collar and blue-collar workers.

According to the most recent Grubb & Ellis' quarterly "Office Market Trends Inland Empire" report, Class A, B and C office vacancy rates have hovered around 7 percent from summer 2005 to spring of this year, and have now risen to about 9 percent. Anything below 10 percent is considered a strong market.

Several of these new buildings are in high demand, pulling in big leases before construction is complete, Sullivan said.

"(It is) a real good barometer in the real-estate market," she said. "We've just kind of, in the last two years, hit our stride. Tenants are recognizing this as a place they want to be."

"Now, (office space) is timed to be here," said John Husing, a Redlands-based regional economist. "Once it hits, it never stops. From now on, it'll be an important part of the market."

Husing noted a couple of facts. Out of recent office construction across Orange, San Diego and Los Angeles counties, the Inland Empire has the greatest share, more than 35 percent. Compare this to 2003, when that number was near zero.

Throughout the late 1990s, builders spent $50 million to $60 million a year building office space here, Husing said. In 2006, they spent almost $308 million.

"It's a very recent phenomenon in the last 31/2 years," he said. "It wasn't there. Now, all of a sudden, it is."

What's also attracting office tenants is that an increasing amount of office buildings are being constructed near other types of developments, Sullivan said.

"You have an office building, and you may have next to that a hotel, and then some live-work lofts," she said. "It's not your stand-alone office product anymore. We're moving to a much more sophisticated product."

While the demand for Class A office space seems unstoppable for now, property construction and realty investment companies will no doubt be keeping a close eye on the local housing market's ripple effects into areas of office construction, Sullivan said.

Message from the Chairwoman of the Board

Greetings! I expected a busy chamber year, and the first few weeks of my term as chair have confirmed those expectations!

We enjoyed a classy, elegant Inaugural Gala on June 29th at the Marriott. Roses, wine, delicious food and great camaraderie were the order of the evening. Many thanks to San Bernardino County Supervisor Gary Ovitt, Ontario Mayor Paul Leon and Cal State Vice-President William Aguilar, PhD, for their attendance and participation. Kudos also to the chamber staff for such a first-class event.

The chamber was proud to participate in the City of Ontario’s 4^th of July Celebration. I was amazed at the number of residents and friends of the city who gathered to watch the 4^th of July parade on a perfectly patriotic summer morning.

On July 13, the chamber board convened our annual planning session, held at the Kaiser Permanente Ontario Vineyard Medical Offices. (These offices are beautiful with many state-of-the-art features, if I do say so myself!) We spent an entire day getting to know each other a bit better and setting our priorities for our new chamber year. We had an outstanding facilitator for this meeting in Jeff Sandford of the Texarkana Chamber of Commerce. Jeff was skilled at helping us keep our mottos, Be Relevant, Add Value and Sharpen the Focus, in the forefront as we whittled our BIG priority list into a list of three priorities upon which we can begin immediate work.

Those priorities are: 1) continue our financial growth/stabilization, 2) reinstitute the form and function of our chamber Foundation and 3) expand our regional strategic partnerships. The tactics we will employ to achieve these goals are too numerous to mention in this column, but will prove to be exciting, innovative and most of all, effective!

Along with our focus on our priorities this year, we will also sharpen our protocols, ensuring a polished and professional presentation and representation at each of our events. And we will explore methods and packages to make your chamber membership even more valuable.

So, a busy start to a busy year - what could be better? Be sure to log onto our website at www.ontario.org to keep apprised of all our events and opportunities.

IE attracting professional buildings - and employees

Contrary to a slowing housing market, office and industrial development is moving full steam ahead in the Inland Empire, showing no signs of a slowdown.

But these aren't your average Inland Empire buildings, and they're not attracting your average workers.

Within the concrete tilt-up warehouse and multi-story projects popping up all over the region, a new stride of professional workspace is making the region its home, according to local researchers who study the subject.

"Class A" office space might look like sky scrapers in downtown Los Angeles, but in places like Rancho Cucamonga, Ontario, Riverside and San Bernardino, these buildings come in four- and five-story, glossy-looking edifices that tower above swaths of strip malls and major thoroughfares.

Future of SoCal water considered in Ontario

ONTARIO - Purple pipe could be one answer.

We already have as much water we're going to get, but California's population will keep exploding.

Roughly 800 elected officials, developers and others spent the day Thursday at a conference discussing how the growing region can keep faucets from going dry when water supplies may actually diminish.

Conservation and recycling will be key to keeping millions of new residents from going thirsty.

Expanding the use of recycled water into homes would allow existing supplies to go much further.

John Young, president of Young Homes and the Building Industry Association of Southern California, talked to one developer who is already installing purple pipe in new homes on the expectation that it will one day become mandatory.

Pipe that carries highly treated wastewater is colored purple and could be used for watering landscape and filling toilets.

Installing a dual plumbing system doesn't add much to the cost if it's done when a house is being built.

Australia, which like the western United States is in the middle of a fierce drought, is aggressively recycling water, including building homes that have such dual plumbing, said

Mark Gray, director of environmental affairs for the Building Industry Association.

Rainwater is also captured and storm runoff is directed into areas where it can percolate back into the groundwater, he said.

Doing that here means policymakers, especially counties and cities, must adopt regulations so projects are designed to capture and use every possible drop of water, most panelists agreed.

"Tell us what to do. Give us meaningful advice," said Randall Lewis, executive vice president of Lewis Operating Co., one of the region's most active developers.

He called for a broad education campaign aimed at both the public and government officials to encourage policies for using water more efficiently.

About 60 percent of domestic potable water is used to water lawns and irrigate landscaping.

That has to change, said Susan Lien Longville, director of the Water Resources Institute at Cal State San Bernardino.

"A growing water source is all the people moving here. They all produce waste water," she said.

That water can be treated and used for most purposes other than drinking, she said.

County Supervisor Brad Mitzelfelt, who helped organize the conference, pledged to work on the issues discussed.

Morongo Valley already has incentives in place for installing gray water systems, which puts water from sinks and showers into a tank for use in irrigation, said Mike Reynolds, a contractor and president of the Morongo Basin chapter of the Building Industry Association.

Two hospitals to be big gain for Ontario

It's still four years away, but the prospect of Ontario having two full-service hospitals is welcome indeed.

Ontario is already a booming city of 175,000, with expectations that its population will approach 300,000 by the time the New Model Colony is built out over the next couple of decades. Clearly, a city of that size needs a hospital. Two would be better.

Kaiser Permanente plans to open by early 2011 a 224-bed hospital on Vineyard Avenue just north of the 60 Freeway, where it now has medical offices and a ambulatory surgical center. That hospital will offer acute care, emergency services and a full spectrum of specialty care, according to Kaiser.

Also on the books is a 200-plus-bed private hospital on Haven Avenue south of the 10 Freeway. That hospital would be built by Pomona physician Dr. Jeereddi Prasad as part of the Ontario Gateway development, whose final maps are in the approval process. Prasad sold his Ontario-based ProMed Health Services, an independent physician association, to Prospect Medical Holdings Inc. recently and now sits on Prospect's board.

Lack of access to health-care and hospital facilities has long been a complaint of Ontario residents. Mayor Paul Leon has advocated for a downtown health clinic, which has not happened yet, but DV Urgent Care has opened in the northwest part of the city. DV Urgent Care is operated in conjunction with the radiology department at San Antonio Community Hospital in Upland.

Dora Barilla, executive director of Healthy Ontario, a citywide initiative concerned with access to health care, called the new urgent-care center "the first step into health-care needs for the community." Barilla said Ontario needs accessible and affordable primary care, urgent care and clinics cooperating with one another, to reduce the over-reliance on emergency rooms to handle problems that should be treated in nonemergency facilities.

Healthy Ontario is working on a comprehensive strategic health-care plan that should be ready early next year, Barilla said.

There are and will be many health-care needs besides hospitals for Ontario's growing population. But it's great news for the community to have two hospitals on the way.

I.E. strong in jobs report

Counties account for 26 percent of all new jobs in state

Unemployment was up in California in June 2007, but the job picture was much stronger locally.

So much stronger, in fact, that at least one economist found the numbers almost too good to be true.

Redlands-based John Husing, after seeing that San Bernardino County and Riverside County had gained 44,500 jobs over the last 12 months, said he hoped the numbers were real.

"These numbers are extraordinary," Husing said. "They certainly fly in the face of what we expected to see."

Indeed, the two Inland Empire counties accounted for 26 percent of all the new jobs in California and 45 percent of the jobs created in the Southland.

By contrast, San Diego County gained only 6,400 jobs and Orange County added only 4,300 in the last year.

"We are seeing incredibly strong growth in this area," Husing said. "Even the increase in the unemployment rate might be partly due to the slow job growth in the coastal counties."

The jobless rate was 5.4 percent in San Bernardino County in June and 5.7 percent in Riverside. Husing pointed out that unemployment always increases in June, due largely to kids out of school for the summer looking for jobs.

The strongest sectors locally were leisure & hospitality (6,800 jobs), logistics (6,300), retail trade (5,000), health care (4,700), local government (4,100) and professional, scientific, technical and management (3,700).

But the biggest surprises were probably in construction and manufacturing, where the Inland Empire added 1,600 and 1,100 jobs respectively in a year when the rest of the state was losing jobs in the same sectors.

"Construction was a big drag on job creation statewide," said Jack Kyser, chief economist with the L.A. County Economic Development Corp. "San Diego County alone lost 7,400 construction jobs and L.A. County lost too. But not Riverside and San Bernardino."

Kyser said the job report was mixed, and that some people would be seriously bothered by the fact that California had created only 400 net jobs from May to June.

"The economy is simmering down," he said.

In addition to weakness in the housing market that caused a temporary loss of jobs, the collapse of the subprime mortgage market hit Orange County particularly hard.

"Orange County was down 5,100 jobs year over year in the financial and insurance sector," Kyser said. "Those are jobs that will never come back."

Ontario Library will show free summer movies

On Thursday evenings, the community room at the Ontario City Library is transformed into a quaint theater where films from nearly every genre are shown free of charge.

In April 2006, Paul Johnson, the audio/visual librarian, decided to share the 3,000 films in his personal collection with library patrons.

After obtaining a license to show the movies publicly, Johnson launched the family film festival which runs two months on, one month off throughout the year.

"We looked at our records and the last time we had a film festival was in 1978," Johnson said. "This is something I've always wanted to do, so when I became the audio/visual librarian it was on my to-do list."

Johnson utilizes suggestions from the library staff and the Internet for film titles to incorporate into the ongoing film festival.

Since he is a big fan of adventure, animation and comedy, Johnson usually shows films from those genres.

Johnson owns several movies relating to the Asian culture that he had never watched, so he created the Films East program for the month of July. The films are produced or inspired by Asian and Middle-Eastern themes of life, death, love and family.

"I try to show films beyond the mainstream box office and expose people to more than just a Hollywood box office," Johnson explained.

"Films East is an experimental series and I'm expecting very few people to show up. I want to see if there's a market for these films at our library."

The Films East program began July 5 with a screening of "Dim Sum: A Little Bit of Heart," an independent film that examines the relationships between three generations of a Chinese-American family living in San Francisco.

Library patrons enjoyed light refreshments and said they also enjoyed the free movies.

"I've been to four or five of the movies and I enjoy it," said Dorothy Rivas of Upland.

"I come whenever there's something I like. I really like the Chinese films and the action films. I think it's great that the library does this. A lot of people can't afford to go to the movies."

Patricia Felix considers herself a regular at the screenings and said they are worth seeing.

"I've been coming quite a bit, I think it's a good idea," said Felix, an Ontario resident.

"You don't have to pay to see a movie and it keeps you occupied. I really like the Harry Potter films. I haven't found any other libraries in the area that do this."

New Ontario arena gets a design guru

Ontario mayor to test his interior decorating skills ...

With his city's 10,000-capacity, $150 million arena taking shape, Paul Leon travels to Salt Lake City late this month to be involved in a key moment:

Helping choose the decor for Citizens Business Bank Arena.

"We're going to look at furnishings and things," Leon said Thursday, "and make some recommendations" to the council for one of the last major expenditures on the building.

So if you don't like the color of the seats or the paneling in one of the 36 luxury suites ... blame the mayor.

Arena building update, from Leon: "Envisioning is becoming more `in vision.' There's already rebar in the air, curbing for the parking lots is in, some of the footings have been poured and construction is right on schedule."

Ontario's arena will be the first major indoor facility in the Inland Empire and is scheduled for an October 2008 opening. We think it should open to a Lakers exhibition game, and we're going to keep mentioning it until it happens.

Message from the Chairman

Happy New [Chamber] Year, everyone! I am pleased and honored to serve as your chair for 2007-08, and look forward to a year of ongoing success and innovation!

Our past chair, Ernie Riffenburgh, has set a pattern and pace that has been embraced by this chamber. Ernie’s slogan for the 2006-07 chamber year “Be Relevant, Add Value” has become a mantra for the board, and a benchmark by which we began to measure our events, our efforts and our effectiveness. In close partnership with our dynamic CEO, Mark Smiley, Ernie guided our board and our chamber to new levels of relevance and new levels of responsiveness to our members. Ernie’s vision for our chamber was one of his most significant contributions, and I am excited to deliver and, with your help, even expand on that vision! This year, I do not intend to reinvent what has proven to be a momentum-gaining wheel.

Instead, I will retain Ernie’s “Be Relevant, Add Value” motto, and work with our board members to sharpen the focus on that relevance and value. Together, we will continue to evaluate the status quo, explore new possibilities and expand on our recent successes. Together we will continue to develop rich relationships and capitalize on opportunities that will further mold our chamber in to a highly regarded, well respected organization. We will continue to create a chamber that is an invaluable source of support for our small businesses and an essential partner for our larger businesses and corporations. We will invest the time and effort needed to ensure the Ontario Chamber of Commerce is an integral part of our business community!

I hope each of you will have a chance to join us this year by attending an event or participating on a committee. If your time is limited, I hope at the very least you can log onto our website and send us your comments and suggestions. Here’s to a great year!

Jennifer Resch-Silvestri
Chairman of the Board
Kaiser Permanente

SAN BERNARDINO COUNTY -- Ovitt names member to work-force board
The San Bernardino County Workforce Investment Board has added Mark Smiley, president of the Ontario Chamber of Commerce. Smiley, appointed by Fourth District Supervisor Gary Ovitt, represents the private sector.

"The Workforce Investment Board plays an important role in building a globally competitive work force and economy," Ovitt said. "Mark Smiley has a wealth of experience in helping businesses to achieve its goals. He will make a great contribution to the board."

Smiley is a former mayor of Glendale, Colo., and co-founder of the Greater Glendale Chamber of Commerce, he has more than seven years of public-service experience. He has also been with the Ontario Chamber of Commerce for two years.

"I look forward to joining this collaborative effort among business, work-force, education and economic leaders for the purpose of building a competitive local work force," Smiley said.