www.laedc.org Spring , 2000

Strategic Board Retreat ShapesNew Goals, Expanded Leadership

1New Leadership

2Year 2000 Mission &Strategies

3Board Meeting Reports

New Members

Memorial: Gary Fowler

4 Premier Research Resource

New Senior Economist

5Events: 6th Annual SCTVF

6San Fernando Valley Summit

RBAN Report

7Major Regional Wins:

SR Technics and Ortel Corp.

8Calendar of Events

Upcoming Publications

Economic Development for the Regions of Los Angeles County

Los Angeles

County

Economic

Development

Corporation

In This Issue A highly interactive Strategic Board Retreatto decide the LAEDC’s future direction has pro-duced new emphasis on the importance of busi-ness leadership. As a result, an expanded rosterof business leaders was nominated and electedto the helm at the LAEDC. “Direct involve-ment from a diverse range of both public- andprivate-sector professionals will contribute greatlyto the LAEDC’s impact,” says Lee Harrington,President. “We witnessed the effectiveness of

Following integral discussionsat the Strategic Board Retreat, theLAEDC nominating committeeannounced the successor to currentChair, Richard Cannon. Taking onthe voluntary position for the next year will beDavid Fleming of Latham & Watkins. Fleminghas worked closely with our LA County Boardof Supervisors on a broad array of issues as wellas with Mayor Richard Riordan on instigating thesuccessful city charter reform movementapproved in 1999. He has served as Vice

Chairman of the CaliforniaTransportation Commissionand is the President of theBoard of Fire Commissioners,Chairman of the EconomicAlliance of the San FernandoValley, and Chairman of ValleyPresbyterian Hospital. Flemingis presently of counsel toLatham & Watkins, the 6th

largest law firm in the world.He has also been honored bynumerous organizations for his

extensive civic leadership. “David brings aunique blend of public activism, a keenunderstanding of economic development issuesand a willingness to devote quality time tomoving the LAEDC forward,” said TomDecker, Chair of the nominating committee.

David Fleming

Named New

LAEDC Chair

- See Vice Chairs p.2

- See Board Retreat p.2

this group’s participation in just one day of teamstrategizing at the Board Retreat.” The setting was Le Merigot Santa MonicaBeach Hotel on February 1st. The StrategicBoard Retreat reviewed the LAEDC’s past 2years of accomplishments in economic devel-opment, business assistance, economic informa-tion and consulting, and public policy initiatives.Dick Cannon, Chair of the LAEDC, concluded

page 2 - Business Leader

Year 2000 MissionAs the premier business leadership organization,

the LAEDC’s mission is to attract, retain and growbusinesses and jobs in the regions of Los Angeles County.

A brand new addition to the LAEDCis the installation of five Vice Chairs, whowill broaden leadership outreach andstand as future candidates for the Chairposition. They were selected to representthe diverse business base of LA County.The Vice Chairs are Roy Hearrean,President of Port of Long Beach HarborCommission and Chairman of State-Wide Investors; John Lynch, CEO ofLynch Entertainment in Culver City; RonRagland, Vice President of Blue Cross for

Southern California; Matt Toledo,Publisher and President of the Los AngelesBusiness Journal; and Lora Watts, RegionalPresident of Pacific Bell, Los Angeles. Continuing their positions on staff arePresident and CEO Lee Harrington andSecretary Larry Brown. Continuing hisvoluntary service as Treasurer is valuedBoard member Barry Sedlick, Manager,Economic and Business Development forSouthern California Edison. Nominations were announced at the

February 16th Board meeting bycommittee Chair Tom Decker. Thecommittee consisted of the formerChairs of the LAEDC Board - RobertBush, Richard Cannon, GeorgeDeukmejian, and Phil Nicholson. “We arefortunate and proud to have theorganization’s past Chairs remain activelyinvolved, contributing their experienceand perspective,” commented LeeHarrington. “We also look forward to thestrong impact of our new leaders.”

his remarks by stating, “We have a highly competent staff, qual-ity programs and financial stability - leadership from the busi-ness community is now the key to future success.” Retreat guest speaker Steve Pontell of the La Jolla Instituteidentified the LAEDC as a fulcrum for disseminating businessinformation for the LA County region. Regional analyses andstrategic relationships with organizations were targeted as goalsfor effective growth. Participants at the Board Retreat built onthose goals in a lively strategy-building process with facilitatorDiana Peterson More. Results of the day’s group strategy ses-sions reshaped a new LAEDC mission statement.

• Economic development and business assistanceleader in LA County

• Premier source of economic information forSouthern California providing both publicinformation and consulting services tosupport business success

• “Storyteller” for the real LA County economy

• Public policy adviser and convener for keyeconomic development issues affectingLos Angeles County and Southern California

Five Vice Chairs Introduced to New Line-Up of LAEDC Leadership

Roy Hearrean John Lynch Ron Ragland Matt Toledo Lora Watts

Board Retreat continued from p.1

We will accomplish our mission through active Boardand membership involvement and strategicpublic and private partnerships in the followingprograms and strategies:

DECEMBER– A special LABy Design guest panel: (l - r)Jack Collins, Nissan MotorCorporation’s Director ofProduct Strategy; Jon P.Goodman, Executive Directorof EC2; Alfred Mann, CEOof MiniMed; and Dominic Ng,President of East/West Bankdiscussed the convergence ofcreativity, design and technologyin the future of LA’s economy.

JANUARY – Reverend Monsignor Kevin Kostelnikpresented plans for the Cathedral of Our Lady of theAngels under construction in downtown. Accordingto Monsignor Kostelnik, the spiritual addition to ur-ban LA will celebrate interfaith, offering Sunday massin 42 languages. With 2.5 acres of gardens, a 1,200-capacity conference center and seating for 3,000 peopleat services, the Cathedral promises to be a worldwidevisitors destination projected to create an economicimpact of a $240 million within a year of completion.(http://cathedral.la-archdiocese.org)

Steven P. Erie, Ph.D., addressed the expensive Southern California “water wars”now confronting the MWD. According to Erie, LA pays a high price for waterrights and must resolve water usage and water transfer issues. The business communityis called upon to become informed and involved in policy planning.

The Board passed a new strategic partnership with USC MarshallSchool of Business. “The University’s outreach to more than 50,000alumni in the business communities of 15 national and internationalmarkets presents exciting opportunities for our BusinessDevelopment goals,” says Lee Harrington.

FEBRUARY – Outstanding achievers were recognized by the Board. Jack Kyser(below left) received a “Numero Uno” award for his acclaim in The Wall StreetJournal as number one in economic forecasts (see p4).

> Lydia Kennard (right)of Los Angeles WorldAirports was awardedfor work on the SRTechnics project (see p7).She shared the spotlightwith colleague MaryAlbers (left).

LAEDC Board Meeting ReportsIn Memorium

Gary Fowler1946-2000

The LAEDC family mourns the lossof a long-time supporter, Gary Fowler,who passed away January 15th. Mr.Fowler was an instrumental member ofthe LAEDC Executive Committee andBoard of Directors from 1993-1997. He was a Native Californian whocommitted 11 years of service to theCounty of Los Angeles, where he heldthe position of Deputy Director ofPersonnel. He later founded FowlerInvestments Inc. and established apartnership with a U.K. real estate firm,which brought more than $500 millionof foreign capital into the U.S. Mr. Fowlerthen headed the successful lobbying firmof Fowler & Bush. At the LAEDC, Mr. Fowler oversawforeign investment and trade and servedas Chairman of the MembershipCommittee. As remembered by closeassociate Jack Kyser, “There was a timewhen the main ingredient keeping theLAEDC going was Fowler and Bush.” In his memory, contributions can be made tothe Los Angeles Foundation for the Junior Blind.

Welcome to the newestLAEDC members:

Business Leader - page 3

Automobile Club of Southern California

Catellus Development Corp.

Dun & Bradsteeet, Corp.

Emerson & Associates

Fannie Mae

Kaiser Permanente

United Airports Limited

Pacific Century Bank

University of Southern California

The LAEDC ranksnumber one as a resource forCalifornia economic forecasts,according to The Wall StreetJournal. “Jack Kyser is a manof his word,” began the front-page article touting theLAEDC as the leader in “thenumbers game.” Jack Kyser, ChiefEconomist has led theLAEDC research team inproducing its semi-annualEconomic Forecast andIndustry Outlook for 10 years.Local and national mediaclamor for advanced copies ofForecast data, as well as industry profilesand reports. The Economic Researchdepartment hosted various luncheonmeetings for the press last year inresponse to their high interest. The volume of media requests foreconomic information increased over 3%to a total of 1,636 calls in 1999, comparedto 1,587 direct media calls in 1998. In thefirst month of 2000, media visibilityaccounted for 36% of callers to the 888-4-LAEDC-1 information line, accordingto monthly call survey results from theBusiness Assistance department. The release of a Forecast update isn’tthe only media draw. The EconomicResearch department fields queries fromthe press any time a large businesstransaction takes place in the area. “TheLAEDC is a valuable source for localeconomic news and trends,” says SteveGregory, special correspondent for theLos Angeles Times Business Section. “JackKyser’s insight on the how’s and why’s ofeconomic trends always adds a useful takeon the story.”

Daily News City Editor Chris Parkerjoked that he occasionally calls for a JackKyser-free day because LA papers,including his own, seem to interviewKyser almost daily. “My reporters relyon Jack because he is so knowledgeable

in so many areas,” said Parker, who waspreviously the Daily News Business Editor. One particular day last October, Kyserwas quoted on different topics by fourleading news sources: The Wall Street

LAEDC - A Premier Media Resource

New Senior Economist Joins Talented Team

Nancy D. Sidhu, Ph.D.

With the expanded research and consulting services,the LAEDC has added a new senior economist, NancyD. Sidhu, Ph.D. She will divide her efforts betweenconducting research for publications and for largeconsulting projects. “We are fortunate to have Dr.Sidhu, as she is a recognized authority on SouthernCalifornia’s economic trends and an accomplishedpresenter in the finance industry,” says Ken Ackbarali,Vice President and Director of Consulting Services. Dr. Sidhu most recently completed 9 years withSecurity National Bank and Bank of America, whereshe was Vice President and senior economist for theSouthern California Regional Bank. She provided

forecasts of Southern California’s economy to bankers and their clients, as well asanalyses covering the metals, chemicals, textiles and apparel, utilities andpharmaceuticals industries. Previously, Dr. Sidhu analyzed industry and economictrends for Toyota Motor Sales, USA and spent 10 years in the Commercial Researchand Corporate Planning departments of Inland Steel Industries. Nancy Sidhu received her doctorate in economics from the University of Illinoisat Urbana-Champaign. Her professional activities include past presidency of theChicago and LA Chapters of the National Association of Business Economics. “Ilook forward to working with the research and consulting team and all of theLAEDC people to benefit our consulting clients and the membership,” she says.

Journal, Daily News, LosAngeles Times and KNXNewsradio. “I enjoypresenting colorful real-life examples along withthe numbers, ” saysKyser, whose Rolodexreads like a who’s whoin public relations. “Theimportant thing is to tellthe story of real L.A.” In addition to pro-viding reliable economicanalyses and sound-bitequotes for most anyissue, Kyser does weeklyradio commentaries for

KNX 1070 and is a frequent guest on theBusiness Channel 22. For information on the EconomicForecasts and other research publications,visit www.laedc.org.

Chief Economist Jack Kyser, the highly quoted “guru” of LA’s economic news.

page 4 - Business Leader

include eToys, bizrate.com andcooking.com. This year, just as thediversity of Internet businesses hasexpanded, so has the content of theForum. “We’re seeing more emphasis onentertainment and so-called new mediacompanies as well as biotechnologycompanies,” says Rohit Shukla, presidentand chief executive of LARTA. This year, LARTA and the LAEDCpresented a four-part TechNet Edworkshop series preceding the actual

Forum. Along with a hands-on presentermentoring process that accompanies theForum, the popular TechNet Ed eventshelp groom potential presentingcompanies in their efforts to buildbusiness plans, market on the Internet andseek funding. As a result of the TechNetEd series and the region’s boominggrowth of start-ups, the number ofSCTVF presenter applicants more thandoubled for 2000. “In addition toquantity, we are seeing a greater level ofsophistication in business plans – a signthat LA’s new economy is maturing,”reported Goodman, who expects thisyear’s investment numbers from theForum to increase by a landfall.

PRESENTED BYErnst & Young LLPIntelJones DayO’Melveny & Myers LLPPeopleSupportRiordan & McKinzieSouthern California EdisonTroop Steuber Pasich Reddick & TobyWedbush Morgan Securities

LUNCHEON SPONSORComerica Bank – High Technology

Banking Group

COCKTAIL RECEPTION SPONSORSBDO Seidman, LLPDigital Coast Partners, LLCEC2, The Annenberg Incubator Project @USCFar East National BankUSC ETTC (A NASA RTTC)

CONTINENTAL BREAKFAST &BREAK SPONSORSArthur Andersen LLPCity National BankHunter Capital Group

SUPPORTING SPONSORSCFour Partners / ITP WorldwideGrant Thornton LLPImperial Bank – Emerging Growth DivisionMarclin GroupPacific BellSidley & AustinTrident Capital

SCTVF Draws More SponsorSupport Than Ever Before

INNOVATION ON THE DIGITAL COASTINNOVATION ON THE DIGITAL COAST

6th Annual Southern CaliforniaTechnology Venture Forum6th Annual Southern CaliforniaTechnology Venture Forum

“There is a tidal wave of investmentactivity here in LA, and the VentureForum is riding at the top,” states Jon P.Goodman, Ph.D., chair of the SouthernCalifornia Technology Venture Forum(SCTVF). Coming soon on April 18,2000 at the Westin Bonaventure Hotel,the 6th Annual SCTVF will introduce 25select tech companies to an audience ofventure capitalists and corporate,institutional and angel investors. Thisevent is where many hot deals have beenmade. The SCTVF,produced by theLAEDC and the LosAngeles RegionalTechnology Alliance(LARTA), drew arecord attendance ofover 400 last year. An even largerresponse is anticipated for 2000. Inaddition to company presentations, theday will feature luncheon keynote speakerRon Fisher of Softbank, Inc. and acocktail reception. When the SCTVF began, it was oneof the first venues for start-upentrepreneurs to show their wares andseek investment in a narrow market.Today, the region is a hotbed for newtech companies and for VCs. Venturecapital invested in the LA area leaped to$895.4 million in the first six months of1999, according to a PriceWaterhouse-Coopers report. The SouthernCalifornia region averaged third in thenation behind Silicon Valley in percentageof investment deals to Internetcompanies, experiencing a 535 percentrise in venture money in the 1999 fourthquarter. Naturally, the success of theSCTVF has also skyrocketed. Since 1995, 73 companies havepitched their technology-based ideas atthe Forum. A few notable graduates

Business Leader - page 5

LA is third in the nation inventure capital investment-PriceWaterhouseCoopers

Explore the new website developed by the LAEDC especiallyfor this event at www.sctvf.org. On-line registration isavailable. The site will also provide ongoing information onfunding resources, employment, and recruiting opportunitiesin the technology arena. SCTVF.org will become a continualon-line network to complement the premier event forinnovation on the digital coast.

watched, including secession efforts ofthe LA area of the Valley, and the limitedquantities of Class A industrial space. Author, columnist and analyst JoelKotkin whose book dubs the Valley asLA’s emerging “midopolis” also spoke,promoting the idea of urban villageswithin the expansive Valley. The trends and studies discussed atthe Summit recognized such issues assmart land re-use in an environment ofscarce industrial space, transportation andparking challenges, and limited afford-able housing. The provocative luncheonpanel discussion on all of the above keptcommunity and business leaders as wellas media attentive well into the afternoon.

San Fernando Valley Research The Valley Almanac, which evolvedfrom the Valley Information Project of1991, was made possible by fundingfrom the James Irvine Foundation andby the efforts of Bob Scott. “These factsand figures provide the tools – but thechallenge is what to do with them in themonths to come,” says Scott. “The heavylifting is about to get underway for theEconomic Alliance.” Data published inthe Valley Almanac will be kept up todate on-line at www.valleyofthestars.org. To order the Valley Almanac or anyof the other Summit reports, contactEconomic Alliance of the San FernandoValley at 818-782-7738.

RBAN Offers 411 onFree Programs

The Economic Alliance of the SanFernando Valley made major headlineswith its Summit 2000 conference at theUniversal Hilton and Towers February10th. The Daily News, Los Angeles BusinessJournal and Los Angeles Times BusinessSection each featured front-pagecoverage of the Summit 2000’s messageof economic growth in the Valley. Thesold-out program drew nearly 300attendees, reported Bruce Ackerman,new president of the Economic Alliancewho took over the post from Bill Allenin January.

Opening the Summit 2000, ExecutiveVice Chair of the Economic Alliance BobScott presented the Valley Almanac, a first-ever region-specific database which hasbeen two years in the making. Scott wasjoined by Cathy Maguire of SempraEnergy and Doug Svensson of AppliedDevelopment Economics, who reportedon the Business Enhancement Survey forthe Valley. Dr. Alan Heslop of the RoseInstitute at Claremont McKenna Collegediscussed results of the San FernandoValley Public Opinion Survey. Keynote speaker Jack Kyser, LAEDCChief Economist, presented a RegionalOverview and Forecast for the Valley.Kyser foresees regional populationgrowth, increased employment and aboost in taxable retail sales. He alsoidentified several “pressure points” to be

Valley of the Stars Summit 2000

Economic Alliance President Bruce Ackermanwith Saul Gomez, LAEDC Regional Manager.

Regional News

presents

Valley DevelopmentForum 2000

Wednesday, March 22, 20008:30 am - 11:00 amThe Radisson-San Gabriel ValleyBaldwin Park

Phone 626-856-3400

RBAN kicked off the new year witha State of the Regions Report January27th at Industry Hills Sheraton Hotel.The agenda recapped developments ineach region throughout 1999 including:San Gabriel Valley’s marketing programand attraction projects, San FernandoValley’s Summit 2000, Antelope Valley’slarge attraction projects, Gateway CitiesPartnership’s marketing video, SouthBay’s strategic initiatives, and neweconomic development organizations inMetro LA. RBAN administrator LibbyThompson also presented countywidebusiness resources. “Besides initiatingnetworking among the regions, RBANis a warehouse of information on no-cost and low-cost business supportprograms,” says Thompson. Of highinterest was a free federal Internetmarketing program on an e-commercewebsite being developed. For details,visit www.freemerchant.com. Other countywide programsreviewed were the Job CreationInvestment Fund, Welfare-to-Work,Workforce Training, and Child CareLoans. For cities and non-profitorganizations, there are grad studentprograms offered to complete high-techprojects for free. Details available throughRBAN, 213-236-4858.

Summit 2000 was well attended by city andbusiness leaders and the media.

page 6 - Business Leader

Business Leader - page 7

Palmdale Attracts California’s LargestInternational Investment in 10 Years

Ortel’s Site Selection inthe San Gabriel Valley

Saves 600 Jobs, With 600New Jobs To Be Gained

SR Technics and SAirGroup (adivision of SwissAir) will locate a NorthAmerican headquarters for aircraftmaintenance, repair and overhaul inPalmdale Regional Airport. The newfacilities are scheduled to open by June2000 with 1,000 employees. Eventually,up to 6,000 skilled technical and aerospaceemployees will be hired by 2004.Operations will generate $440 millionannually in economic impact for theNorth County, according to the GreaterAntelope Valley Economic Alliance. Collaboration between CaliforniaGovernor Gray Davis, Los AngelesMayor Richard Riordan, Palmdale MayorJim Ledford, the California Trade andCommerce Agency and Los AngelesWorld Airports (LAWA) with supportfrom the LAEDC and Greater AntelopeValley Economic Alliance resulted in theattraction of SR Technics to Palmdale -the largest international investment inCalifornia in 10 years. SR Technics will assume the lease ofa 150-acre site from Boeing Corporation.The site is owned and operated by LAWA,which has committed to supplying SRTechnics with a $12.5-million firesuppression system in support of thismajor economic development project.Additional state and local incentives totalmore than $100 million.

“To maintain ourstate’s economicadvantage, the publicand private sectorsmust work together.This new lease –leading to up to 6,000highly skilled jobs –demonstrates we canpull together,” statedGovernor Davis, whowas instrumental indeveloping the siteproposal and forsending Trade and

Commerce Secretary Lon Hatamiya towork with SR Technics officials in Zurich. “The personal roles of GovernorDavis, Secretary Hatamiya, LAWA’s LydiaKennard and Palmdale’s Mayor Ledfordcannot be overstated,” according toLAEDC North County regional managerDavid Myers. “Their enthusiasm for theregion made the deal.” Myers met withSR Technics during the decision-making,providing a clearinghouse of informationto all parties involved. Myers anticipatesthe LAEDC will be providing continuedsupport to SR Technics Director ofBusiness Alliances Michael Rodyniuk infurther development stages. “It is exciting to see stakeholders at alllevels come together and develop theeconomic package and political will tomake this aerospace project happen,” saysLee Harrington, LAEDC President.“Success in delivering the resources willbe a powerful tool in attracting andgrowing the aerospace industrythroughout Southern California.” Other sites in Arizona, Alabama,Florida, New Mexico, Oklahoma,Oregon, Tennessee, Texas, Virginia andWashington were considered for theheadquarters. According to SR Technicsofficials, Palmdale’s Site 9 was selected forits workforce, proximity to LA, cost ofliving, climate and the existing facilities.

The retention and expansion of OrtelCorp. within the San Gabriel Valley wasannounced in February. Ortel also recentlymade the news as the $2.95 billionacquisition of Lucent Technologies,making them another Wall Street tech star. Ortel represents nearly $1 billion incounty and state tax revenue and wagesalaries over the next 5 years, accordingto LAEDC economists. “Now that Ortelis owned by Lucent Technologies, a stockmarket powerhouse, their potential forexpansion is even greater than the initialestimates made in December,” says GregWhitney, Vice President, BusinessDevelopment. “Plans call for 600additional employees after the move.” By March, Ortel will begin its movefrom 15 smaller buildings in Alhambrato a 166,000-square-foot space in the SanGabriel Valley Corporate Center with a$20-million, 20,000-foot “clean room” tobe built adjacent to Ortel’s offices.Alternative sites were being considered inLas Vegas, Carson City and Phoenix. “The San Gabriel Valley EconomicPartnership, and specifically Elaine Cullenfrom the LAEDC, were instrumental inhelping provide a solution for Ortel togrow and retain its business within theState of California,” says Steve Rizzone,President and CEO of Ortel. “TheLAEDC and SGVEP helped developedkey economic incentives that will benefitOrtel in both the short and long term.” Established in 1980 by a Caltechprofessor and his two former students,the Alhambra-based laser manufactureris an LA By Design story of convergencebetween one of the region’s highereducation institutions and the swiftlychanging marketplace. The Ortel teamfirst found success in the defense industry,and now a second success with theInternet industry, and expansion ahead.

Regional News

Governor Gray Davis announced the SR Technics (SwissAir)attraction project in December 1999.

Upcoming Economic ReportsUpcoming Economic Reports

MARCH Motion Picture Industry ProfileApparel Industry Profile

APRIL Quarterly Economic EdgeNEW–Creative Industries ProfileNEW–LA By Design Directory

MAY LA StatsInternational Trade Report

JUNE Manufacturing Report

NEW

Los AngelesCountyEconomicDevelopmentCorporation

515 South Flower Street32nd FloorLos Angeles, CA 90071

Business Leaderis published quarterly by the LAEDCMarketing Department. Please sendcorrespondence to the address aboveor send e-mail to jdvorak@laedc.org.

Editorial & Graphic DesignJeanette DvorakMarketing Coordinator

www.laedc.org

MARCH23-24 Asia / Pacific Business Outlook 2000

University of Southern California, Sponsored by the LAEDCVisit www.ibear.com, or phone 213-740-7130

EventsEvents

APRIL18 Southern California Technology Venture Forum

Bonaventure Hotel, Downtown Los AngelesVisit www.sctvf.org, or phone 213-236-4832

19 LAEDC Board of Directors MeetingJonathan Club, Downtown Los AngelesPhone 213-236-4811 for information.

27 Quarterly RBAN MeetingLocation TDB, Westside. Phone 213-236-4858

MAY3 TeamCalifornia Premiere of Wild California

California Science Center IMAX TheatrePhone 916-327-2318 for information.

30-31 VentureNet 2000Ritz Carlton - Laguna NigelVisit http://www.venturenet.org to register.

JUNE1 LAEDC Financial Services Industry Seminar

Regal Biltmore Hotel, 8am- 1:30 pmPhone 213-236-4843 to register.

6 ULI-LA Trends 2000 ConferenceRegal Biltmore Hotel, Los Angeles 213-236-4882

Register Now