Pacific Coast Business Times Proudly serving Ventura, Santa Barbara and San Luis Obispo counties Fri, 29 Aug 2014 20:55:42 +0000 en-US hourly 1 28 tri-county firms rank on 2014 edition of Inc. 5000 Fri, 29 Aug 2014 19:38:15 +0000 Twenty-eight firms based in the Tri-Counties made the 2014 edition of Inc. magazine’s ranking of the fastest-growing private companies in the U.S. This year’s ranking was based on revenue growth between 2010 and 2013.

PackIt, a company that makes bags with freezable gel in the linings that keep food and drinks cold for up to 10 hours, was the top-ranked among regional firms. The Westlake Village-based firm experienced 7,878 percent revenue growth to $11.9 million, landing at No. 28 on the Inc. 5000.

Kevita Sparkling Probiotic Drinks, an Oxnard-based maker of health beverages, ranked at No. 301, with 1,519 percent revenue growth to $11.2 million.

The tri-county firms who made this year’s Inc. 5000 are:

Many of the companies are also on the Pacific Coast Business Times’ 50 Fastest-Growing Companies list this year. The Business Times special report ranks both public and private companies based in the Tri-Counties and uses three-year revenue growth. For more information on this year’s 50 Fastest-Growing Companies, click here.

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Atara Biotherapeutics angles for $92M, but jobs are scarce Fri, 29 Aug 2014 07:04:57 +0000 If Amgen spinoff Atara Biotherapeutics raises the $92 million it is aiming for with an initial public offering, the company’s funds raised to date will swell to $154 million, making it one of the most deeply capitalized firms in the region.

But for all that cash, the company’s presence in the region is decidedly small: It has 14 total employees and a 1,450-square-foot lease in Westlake Village that expires this fall. A 900-square-foot corporate office in the Bay Area houses Isaac Ciechanover, a veteran of the biotech firm Celgene and former partner in the major venture capital firm backing Atara.

Atara is among a new breed of “virtual” biotech startups. Such firms operate with barebones staff and outsource research and manufacturing operations to contract organizations. They are becoming increasingly common as investors seek to mitigate the huge risks of bringing drugs to market, a process that can cost as much as $1.8 billion, according to industry estimates.

The trend raises new questions about whether long-hoped-for biotech startups could plausibly replace the thousands of jobs shed in recent years by Amgen, the region’s largest private-sector employer and a cornerstone of the Ventura County economy.

But the example of Westlake Village-based Kythera Biopharmaceuticals, a firm started by former Amgen veterans that is working to bring a biotech aesthetic drug to market, shows that some startups begin building out staff as regulatory approval draws nearer.

Seven molecules

Atara is licensing seven molecules from Amgen to bring to market, with the lead candidates treating complications of kidney disease and cancer.

The closest to market, PINTA 745, treats muscle-loss problems that can arise in patients with advanced kidney disease. The company said that the condition affects as many as 800,000 patients and that it believes it has the only potentially effective treatment. The drug is in phase-two clinical trials. Another drug, STM 434, would treat ovarian cancer and is headed for phase-one trials.

8.6% percent Amgen stake

Atara has raised cash from a bevvy of investors: Alexandria Venture Investments, Amgen Ventures, The Baupost Group, Celgene Corp., DAG Ventures, Domain Associates, EcoR1 Capital and Kleiner Perkins. Amgen’s stake in the firm is 8.6 percent, and a trust backed by Mexican billionaire Carlos Slim controls 9.3 percent of shares.

The company also retains close ties with Amgen: It will owe the Thousand Oaks firm $14 million in milestone payments during clinical trials, and up to $72 million for regulatory milestones. If Atara’s first three drugs do come to market, it will pay up to $206 million a year in milestone payments plus royalties to Amgen.

But for now, the plan for potential IPO cash is to deploy it to third parties to carry out research and manufacturing.

“They’ll use contract research organizations, contract manufacturing organizations and other people to do the work so they don’t have to buy the equipment they’d otherwise have to buy, hire all the people they’d have to hire and take up all the space they’d have to,” said Brent Reinke, a corporate partner in the Westlake Village office of Musick, Peeler & Garrett.

Wayne Davey, a retired Amgen executive, said the virtual biotech wave has been good for specialized veterans like himself who can serve as consultants to startups. He said the change might not be a good one for the U.S. job markets.

“This is not a good trend for young employees who have not yet gained a lot of work experience. They add little immediate value for a virtual biotech company,” Davey said in an email. “Also, a lot of the outsourcing is done offshore.”

Kythera Biopharmaceuticals

But there are countervailing examples. Kythera was founded in 2005 and is headed by Keith Leonard, the former head of Amgen’s European operations. The company’s first drug, ATX-101, would treat double chins. The company flew under the radar for several years and then raised $70 million in an IPO in 2012.

The approval process has been lengthy. Kythera submitted its formal application earlier this year. It expects the review process to be complete — and potential approval to come — by the middle of next year.

When Kythera went public, it had 39 full-time employees. It recently moved from its Calabasas headquarters to a new, larger space in Westlake Village.

Today, Kythera has about 83 employees and plans to boost that to up to 200 in a variety of locations by the middle of next year, a company spokeswoman confirmed. The company has been careful with its capital and still had $134.7 million of dry powder left for a push in the U.S. and abroad at the end of the second quarter.

“If approved, ATX-101 will be the first non-surgical treatment for the reduction of submental fat,” Leonard said in a news release. “Additionally, we plan to make multiple ex-U.S. regulatory submissions by the second quarter of 2015.”

Reinke said that just because biotech firms start virtual, with lots of money raised and few jobs created, that doesn’t mean they will stay that way forever if a drug is approved.

“I think it’s a model that makes a lot of sense for companies these days. It’s extremely expensive to develop a drug. This is one way for Kythera and Atara and other companies to minimize the burn rate,” Reinke said.

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Firms shape up for success with workplace wellness programs, perks Fri, 29 Aug 2014 07:03:34 +0000 Employees at software firm Mindbody enjoy benefits ranging from on-site yoga classes to opportunities to play Frisbee and board games. It’s all part of maintaining a happier workforce, the company said, which in turn leads to lower insurance costs. (Nik Blaskovich photo)

Employees at software firm Mindbody enjoy benefits ranging from on-site yoga classes to opportunities to play Frisbee and board games. It’s all part of maintaining a happier workforce, the company said, which in turn leads to lower insurance costs. (Nik Blaskovich photo)


At the San Luis Obispo headquarters for international software company Mindbody, employees can break away for noontime yoga or retreat to one of the building’s downstairs spa rooms for a massage or facial.

Amid high ceilings, colorful beanbag chairs and exercise balls, employees at Mindbody are working in an atmosphere that’s anything but the typical maze of white-walled cubicles. Along with an in-house café, a “recess room” in the building includes Foosball and ping-pong tables and perks such as Frisbees and board games.

Mindbody employees receive a card that’s loaded each month with $65 for wellness and beauty services including everything from facials to gym memberships.

Along with a traditional health-insurance plan, the plethora of perks ensures the health and productivity of Mindbody’s employees, said Rachel McClure, the company’s human resources program manager. “It is a recruitment and retention benefit to keep employees, “ she said. “But we also want our employees … to take care of themselves and we want to have them here for a long time.”

A 2010 Harvard University study on workplace wellness found that medical costs fall about $3.27 for every dollar spent on wellness programs, and absentee costs drop by about $2.73 for every dollar spent.

A Mindbody employee enjoys yoga at its San Luis Obispo campus. (Nik Blaskovich photo)

A Mindbody employee enjoys yoga at its San Luis Obispo campus. (Nik Blaskovich photo)

“It’s important at a number of levels,” said Greg Van Ness, CEO of Ventura-based insurance brokerage firm Tolman & Wiker. “Healthy people are not only more engaged and more productive, but they [also] generate less medical claims costs.”

At the tech startup LogicMonitor, based in downtown Santa Barbara, CEO Kevin McGibben said his main goal is “making the company culture and work environment a place where people want to be all the time.” LogicMonitor offers its employees benefits such as a fully-stocked kitchen and bar, keeping employees engaged as they perform highly technical work, he said.

“It’s a tough job and it’s an intellectually challenging job, no matter what you do in LogicMonitor,” McGibben said. “And I think the types of people we employ — they need to be challenged, and they need a certain work environment to succeed.”

The company offers a $100 monthly stipend to go toward a gym membership or parking, occasional free catered lunches and “Yoga Tuesdays” and “Basketball Wednesdays.”

At outdoor clothing and gear maker Patagonia’s Ventura campus, employees enjoy a flexible work schedule. “People take their lunches out and go out running or surfing,” said Adam Fetcher, a company spokesman. Patagonia has an onsite gym, childcare center, fitness classes for pilates or yoga, and a 24/7 nurse hotline. It stays true to its eco-friendly roots with a café that serves organic food. Employees also receive financial incentives for carpooling, biking or taking the bus to work.

CMC Rescue in Goleta, a manufacturer of search-and-rescue equipment, has a “work fit” room, a loaner bike program, rock-climbing wall and outdoor basketball area. “We’ve been introducing more healthy snacks … and next year, we’re going to start a wellness program and implement a walking program where employees wear pedometers to track their steps each day,” said Debbie Horne, CMC Rescue’s director of human resources.

At Horny Toad, an activewear company, many employees enjoy hiking or biking in the hills of Santa Barbara around its campus. Weekly food trucks and activities such as staff bike rides are great perks, but the company’s human resources manager, Carlynn Rose, said wellness is entrenched in Horny Toad’s corporate culture. “We believe in working hard and playing hard,” she said.

Goleta-based Deckers Outdoor Corp. is one of the largest publicly-traded firms based in the Tri-Counties, but the Ugg brand parent believes the little things — onsite massages for employees and the occasional manicure and pedicure — are an important part of its corporate culture.

The company also offers an educational and lifestyle-management program for expecting mothers and a program that allows employees with chronic conditions such as diabetes to contact a specialized, onsite nurse at anytime.

Deckers hosts programs for “financial wellness,” with seminars on topics such as saving for retirement. “If you’re OK financially, then everything else is impacted,” said Julieth Chambers-Osman, global benefits and mobility manager for Deckers. “Our employees are our most-valued asset, and if they’re not having a well-balanced life mentally, physically and spiritually, we need to help them access those things that are important to life.”

Workplace wellness programs are on the rise. The Harvard study found that just 19 percent of companies with more than 500 workers had wellness programs in 2006, while 77 percent of large manufacturing employers had such programs in 2008.


Mindbody, which makes software for the health and wellness industries, said offering perks to its employees is an important recruitment and retention strategy. (Nik Blaskovich / Business Times photo)

Software firm Citrix Online, which employs hundreds of people in Goleta, gathered employee input and crunched the numbers before launching its corporate wellness program. “We looked at our costs and how to keep those costs in check and reduce them,” said Kate Stemle, a health and wellness consultant at Citrix.

Citrix has massage services and an onsite gym — perks that are becoming increasingly commonplace at larger tech firms —  as well as a program through which employees can earn prizes for tracking their exercise.

Van Ness, the insurance broker, said wellness programs can actually lower a company’s insurance costs by promoting a healthier workforce. “Prevention is the holy grail. If you improve prevention, you improve the picture for everybody in every way,” he said.


Mindbody employees enjoy a game of ping-pong in the company’s recreation room. (Nik Blaskovich / Business Times photo)

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After Ventura County court battle, pension tensions endure Fri, 29 Aug 2014 07:03:01 +0000 For most of the summer, Ventura County was at the heart of a statewide debate over public-sector pensions.

Reformers spent tens of thousands of dollars on a proposed referendum to change Ventura County’s public employee retirement system from a defined-benefit system to a 401(k)-style system. On Aug. 4, the battle ended when a judge struck the measure from the November ballot.

But the war over public-sector pensions is far from over. Above the tangle of details hovers a fundamental debate about the fiscal stability of local governments, the vanishing middle class, inequality and the future of organized labor.

Ventura County’s pension system is the region’s largest and has drawn the most scrutiny from opponents. But it is also the strongest and has undergone big changes that haven’t yet come to Santa Barbara or San Luis Obispo counties. And the issues raised in the fight in Ventura County are likely to increase in prominence throughout the Tri-Counties as public-sector baby boomers begin to retire en masse.

Two different worlds

There are huge differences between how public pension systems and private pension systems are set up.

The public sector generally uses defined-benefit pension systems to pay for employees’ retirements. Like salary, health care and other perks, retirement benefits are an important part of an employee’s compensation package. In California, these systems guarantee individual employees a specific amount every year after they retire based on a formula that includes final years’ salaries, age and years of service.

The private sector has seen a marked shift away from pension systems and into defined-contribution systems, which are less risky for employers. Defined-contribution systems function like a savings account where employers and employees can contribute a specific percentage of a salary every year. When it comes time to retire, the employee gets access to the full amount in the account but has no yearly guarantee. According to consulting firm Towers Watson, only 30 firms among the Fortune 100 offered pension-style plans to new hires in 2013, down from 73 in 2004.

Because defined-benefit pensions last until an employee dies, many private-sector workers and retirees will continue to receive pensions for years to come. But as new employees join the workforce, 401(k)-style plans are becoming the norm.


Target for reformers

The proposed ballot measure would have switched all future Ventura County employees from a pension-style system to a 401(k)-style system. Current employees and retirees would have kept their pensions.

The debate over public pensions comes down to fundamental questions of money and risk. Should the county — and thus taxpayers — be on the hook when investments don’t turn out well or when public employees retire at 50? Should employees who devote their lives to public service be left impoverished if they outlive their savings?

Ending its defined-benefit system “will have a devastating impact on the quality of life and services in Ventura County,” said Steven Maviglio, a spokesperson for one of the groups that successfully defeated the reform. Pensions are “what attracts [employees] and keeps them in public service.” But David Grau, chairman of the Ventura County Taxpayers Association, said ending the defined-benefit system “is probably the single most important thing that we can do that can impact the County of Ventura.” The taxpayers association was the primary sponsor of the pension-reform ballot measure.

Advocates for reform point out that defined-benefit systems, by nature, put almost all risk on the employer, which in the case of the government is backed by taxes. Regardless of how long an employee lives, whether it’s 65 or 105, the amount given every month is enshrined by law until the person dies and is almost impossible to change. Ventura’s pension fund, known as the Ventura County Employees’ Retirement Association, or VCERA, is huge, with more than $3.6 billion in assets invested in a variety of ways. But its liabilities, by its own estimate, are even larger — at $4.6 billion. The county alone — not current or past employees — is now on the hook to pay down the $950 million deficit, or $1,140 for every single person in Ventura County. This means Ventura County’s pension system is only 79.2 percent funded. The funding ratio is the most common metric for measuring the health of a pension system.

Ventura County’s figure may sound low, but it is on par with other systems around the state and is the best in the Tri-Counties. Santa Barbara County is 72.4 percent funded with $818 million in unfunded liabilities. San Luis Obispo County has $383 million in unfunded liabilities and is 74.8 percent funded. On average around the state, public-pension systems are 79 percent funded. Because Ventura County’s system is perfectly average, it serves as a bellwether of sorts. Arguments from both sides over Ventura County could just as well apply to funds around the state.

The boom years

Employers are responsible for saving enough to pay for future benefits by determining how much to deposit into the system.

By law, public pension systems are designed to be pre-funded, which means that current employees and employers pay into the system today for retirement benefits in years to come. They all attempt to be 100 percent funded.

Between 2000 and 2003, Ventura County contributed nothing to its pension fund because strong markets provided sufficient growth.

Ten years later, it had to contribute $142 million. During the early 2000s, the pension system was technically overfunded, meaning it had more than enough savings to pay for future expenses. Because investments did so well during the tech boom, Ventura County and many other systems were able to take pension holidays. Today, such holidays aren’t allowed. Unions say they opposed these pension holidays in the past.

In order to achieve a 100 percent funding ratio, a pension system needs to naturally float around that number. During good years it is designed to go above that ratio, and during bad years it will go below that ratio based on market conditions. In Ventura County’s case, a combination of no-contribution years and negative investment returns during the recession meant it is now less than 80 percent funded.


When you assume…  

From the first year of employment until the last, both the employee and Ventura County, the employer, pay a percentage of the employee’s salary into the system. Using complex estimates, actuaries have the task of determining the cost of future benefits based on factors such as average retirement age, life expectancy, final salary and the all-important average investment return rate. When these estimates are wrong, or when the market doesn’t perform as expected, huge deficits emerge in Ventura County and hundreds of other similar pension funds.

From 2007 to 2013, Ventura County’s total unfunded liability soared from $376 million to more than $950 million. According to the county’s own estimates, 95 percent of the increase in liabilities was due to lower-than-expected investment returns during the recession. Many actuary estimates depend on the assumed average rate of return. Using the magic of compound interest, pension systems can invest relatively little today but still have enough to pay for benefits tomorrow.

Robert Katch, president of Westlake Village-based Manchester Financial, has managed several endowment funds. He said meeting the assumed rate of return is critical but that investing in risky assets to meet a too-high rate can and does backfire. “Whenever you are doing long-range planning, you are hoping to under-promise and over-deliver,” he said. Both large funds and individual retirees can choose different mixes of asset classes to better meet attempted rates, he said.

Drawbacks to over-saving

Predicting a proper return rate is crucial. If the rate isn’t met, governments are left paying the difference. If the rate is too low, then government and employees have essentially been paying too much into the system and wasting dollars that could have been spent elsewhere.

For example, if a fund wanted to have $150,000 after 30 years, it would have to invest $34,706 at a 5 percent rate of return. But if the employer assumed a 10 percent rate, the total would be $8,596, a massive difference. Thus, public-pension systems face strange incentives to make the assumed rate as high as possible.

The higher the assumed rate, the less the employee and the government need to pay today.

On the flip side, the government cannot pay more than the predetermined payout to retirees. If a private-sector employee saves too much money early on in life, he or she can live a more lavish lifestyle in retirement. If the government saves too much, the retiree won’t see any extra benefits, and the public at large will have lost out on the use of that tax money for other purposes, such as roads or infrastructure.

Ups and downs

Ventura County assumes an investment rate of 7.75 percent, which is generally in line with other funds but higher than regional peers.

Santa Barbara County assumes 7.5 percent and San Luis Obispo County assumes 7.25 percent. According to the National Association of State Retirement Administrators, the average assumed rate is 7.72 percent, but rates have dropped in recent decades. In 1999, Ventura assumed 8.25 percent and by 2004 its assumption had dropped to 8 percent.

Those calling for reform say the assumed rates of return are still too high. Over the last 10 years, Ventura County’s average return was only 7 percent, below its assumed rate. Some economists believe that the U.S. economy has slowed as it enters the 21st Century.

Tracy Towner, chair of the Ventura County Board of Retirement, the group which oversees VCERA, said that because liabilities are long term, the fund’s investment rate should be judged that way too. Towner said the fund has exceeded its assumed rate over the 20-year and 30-year periods.

“You are going to go through ups and downs, based on the market performance,” he said. “[VCERA] has a proven record of meeting its investment assumption rate.”

Critics see limited options

Bill Wilson, who is on the Board of Retirement and on the board of the taxpayers association, said the huge unfunded liability remains.

“The county always says that everything is fine. The county says that we have one of the best-funded pension plans in California. And the county says prospects are bright and you don’t have to worry about it,” Wilson said. “The basic question will be, if everything is great and if we have one of the best plans in the state, why does it have close to a $1 billion unfunded liability?”

Anthony Randazzo, director of economic research at the Reason Foundation, a libertarian-leaning think tank, said there are limited options when pension systems are unfunded. Randazzo studied Ventura County and issued a favorable report on the proposed referendum.

Ventura “could raise taxes or cut other services to the county” in order to reduce the unfunded liability he said. Or “it can get lucky and have, over the next 15 years, 20 percent [investment] growth.”

Another way of reducing current costs is by extending the time it takes to pay off debts. Just like 15- and 30-year mortgages, the longer it takes to pay off debt, the lower the individual payments but the more it costs in the long term.

Ventura County says it will pay off its unfunded liabilities in 15 years. Santa Barbara believes it can do so in 17 years. San Luis Obispo County plans to pay off its unfunded liability in 26 years.

The human side

Public-sector employees make important life decisions based on pension promises. Current employees, who wouldn’t have been affected by the proposed ballot measure, said they chose risky careers because they knew they’d be secure in retirement.

“It provides an important sense of security. It’s in the back of my mind as I’ve gone through this profession,” said Ventura County Fire Capt. Chris Mahon. “I’ve been in many, many dangerous situations. Knowing that when my body can’t take it anymore, I’m going to be able to be OK. I’m not going to be poor on the street.”

Higher retirement benefits were negotiated in lieu of pay increases, Mahon said. This is a common tradeoff because it lets governments essentially reconcile with unions during contract negotiations and offer benefit increases but only have to pay decades later. Towner said current retirement benefits are the result of such negotiations.

“The fact is, employees back in the ’70s and ’80s gave up wages to get those benefits,” Towner  said.

Labor’s future

Some pension-reform opponents say the battle isn’t a fight over finances, but instead a covert attempt to eliminate public-sector unions altogether.

One of the primary ways unions benefit workers is through negotiation of salary and retirement benefits. If retirement benefits became 401(k)-style systems, unions would suddenly lose a powerful negotiation tool.

Some economists believe the trend of fewer pensions in the private sector has partially caused the decline of private-sector unionization.

Taxpayer groups argued it was common for employees to “spike” their pensions, which meant using extra overtime, vacation cash-outs and other forms of compensation to make their salaries higher in their final years, which then serves as a baseline for pension benefits. The association said 85 percent of Ventura retirees who retired since August 2012 and have pensions over $100,000 make more than their final-year base-pay.

But those opposed to the reform say the problem has already been eliminated by a new state law. The California Public Employees’ Pension Reform Act of 2013 attempted to eliminate “spiking” by reducing what counts as pensionable pay and also capping the maximum pension amount at $117,000, though that figure will increase with inflation. The law only affects new employees who won’t be retiring for decades. It also increases employee contributions.

$83K average pension

Comparing the retiree benefits of California’s various public pension systems — and thus their fairness — is difficult because they can use different calculation formulas and make different assumptions. The simplest way is to skip over individual formulas and instead judge what retirees are actually receiving.

According to a Business Times analysis of Ventura County Pension records, in 2013, on average, the pension system paid out $34,686 per retiree. But the average includes people who retired 20 years ago, and also those who only worked for few years. A better indicator of the system might be those with full careers. For those who retired since 2000 with 25 or more years of service, the average pension paid is $83,681. While 50 percent make below $73,751, a quarter make above $112,779 in retirement. These retirees do not get social security as almost all other private-sector employees do.

The average employee of Ventura County today makes $63,232 in total pay, not including some other benefits. If an employee retires at this average at age 60 after 30 years of service, the employee should get $35,544 annually or about 56 percent of his or her salary.

‘Milking the system’

Maviglio, the spokesperson for the group opposing the reforms, said that the overall $34,686 average “is not a lot to live on when you don’t get Social Security. … The rank-and-file public employees are as outraged as any taxpayer group over people who are milking the system.”

About 60 percent of Ventura County’s employees are women, Maviglio said, and pension systems frequently help those who are most in need.

Both sides in the pension-reform debate say the 2013 state-level reforms are a positive step toward fiscal stability.

Groups advocating for reform say the state changes don’t go far enough. Those opposed say the reforms have already fixed the problem and that time is needed for the changes to fully take effect. “Lets let the state reforms play out before throwing the baby out with the bathwater,” Maviglio said.

It’s impossible to know what will happen with VCERA or other retirement systems in the Tri-Counties. Perhaps pension advocates will prevail, and booming markets will slowly return to the 100 percent funding ratio. But if the taxpayer groups are correct, $1 billion or more will have to be paid by the county’s residents.

As defined-benefit pensions become increasingly rare outside the public sector, residents throughout the Tri-Counties are likely to question why they’re being asked to bear the risk for public employee retirements even as their own 401(k)s yo-yo. The ballot battle is over for this election season, but the larger conflict remains.

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Former deputy sues Ventura County over tax break Fri, 29 Aug 2014 07:02:38 +0000


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Cabbies hail help from Sacramento: Bills target Uber, Lyft Fri, 29 Aug 2014 07:01:41 +0000


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29-acre home development in Fillmore gets council go-ahead Fri, 29 Aug 2014 07:00:52 +0000 Elijah Brumback

Elijah Brumback

SunCal, a real estate development company that specializes in large-scale, mixed-use, master-planned communities, recently received final approval of an amended tentative tract map for its 29-acre residential community in Fillmore.

The Fillmore City Council voted 5-0 to approve the revised plans at its July 8 meeting, according to a statement from the company.
The amendment revised the project design and housing product types, and the site is now entitled for up to 146 detached residences. The property is located  just north of Fifth Street and west of Goodenough Road near the Sespe Creek levee in Fillmore.

“We’re very pleased to complete this major step as we continue to move forward with our Fillmore community,” Frank Faye, executive vice president for SunCal, said in statement. “This development is in an ideal infill, supply constrained location; it has a well-designed land plan, and there is demand for high-quality homes in this area.”

SunCal designed the 29 acres to include a variety of home styles and sizes.

AG retail space sells

Lee & Associates recently negotiated the sale of a 26,941 square foot retail space in the Arroyo Town Center, located at 1488 E. Grand Ave. in Arroyo Grande.
Jason Hart, with the San Luis Obispo office of Lee & Associates, represented the seller in the $3.5 million sale. The sale represented a sizeable portion of the 75,000-square-foot shopping center. The buyer was undisclosed.

The neighborhood shopping center hosts numerous retailers such as Smart & Final Extra!, Dollar Tree and Round Table Pizza.

$12M refinancing for apartments

A new $12 million financing agreement for a Westlake Village apartment community puts an existing Fannie Mae loan from 2004 to bed.

Quantum Capital Partners secured the deal for a Marina Del Rey-based investor operating as 575 Hampshire Road Properties.

The property, Westlake Villas Apartment Homes, is a garden-style complex with 142 studio, one- and two-bedroom units ranging in size from 700 to 1,150 square feet. Originally developed  in 1971, the property was completely renovated in 2010 and features a resident clubhouse, fitness center, heated pool and spa, saunas and tennis courts.

Deal terms for the 15-year, fixed-rate permanent loan from a global financial services company carries a 4.16 percent for the first 10 years with a 30-year amortization over the remaining term.

“Westlake Villas has enjoyed a strong operating history and has been very competitive in an appreciating market,” Quantum Capital Partners Managing Director Mike Yim, who arranged the financing, said in a statement. “As a result, we were able to find a life [insurance] company willing to do a cash-out refinance at very attractive terms without requiring a warm body for the carve-out guaranty.”

City seeks input on Bathhouse

The city of Santa Barbara’s Parks and Recreation Department is hosting a community open house on Sept. 3 to share the initial plans for renovation of the Cabrillo Pavilion and Bathhouse at East Beach.

The building was constructed in 1926. The primary objectives of the project are to build a viable community recreation center and return the building to its original status as the “crown jewel of East Cabrillo Boulevard,” according to a statement from the city. “The building’s outdated interiors, structural deficiencies, failing mechanical, electrical and plumbing systems, as well as poor site accessibility, significantly limit its potential to serve Santa Barbara residents and visitors today,” the city said.

The open house will be held at the Cabrillo Pavilion, 1118 E. Cabrillo Blvd at 6 p.m..

The meeting will include a presentation on the building’s history and the project goals as well as a tour of the Bathhouse.

Initial renovation plans include exterior improvements for site and beach access, and interior renovation of the shower and locker facilities, restaurant and catering facilities, special event space, multi-purpose rooms and restrooms.


• Two properties on Lillie Ave. in Summerland recently sold. Pamela Scott of Lee & Associates Central Coast brokered both deals.

The 4,344-square-foot landmark building at 2330 Lillie Ave. is home to Summerland Winery and Bonita. There are also two residential units in the building.
The other property is located at the corner of Hollister and Lillie avenues and is a roughly 12,000-square-foot lot that is zoned commercial. The new owner, a local family, plans to develop the property.

• Contact Elijah Brumback at

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