2009: Job Losses, Closures But Business Got Creative

Nine months have passed since Steve Tannehill became the director of the Small Business Development Center at College of the Canyons in Santa Clarita. In that time, the center has expanded its advisory and counseling services in the San Fernando and Antelope valleys, raised $5.5 million in capital, brought jobs to its service area and moved to new offices in the University Center at the college. On top of that, the center seeks out new sponsors and tries to meet the needs of those sponsors all why achieving the core goal of serving small businesses. “We get invigorated and rejuvenated by that activity,” Tannehill said. During 2009, Tannehill and the SBDC were among the many people and organizations written about in the pages of the Business Journal. Tannehill wasn’t alone in making a career change. Greg Lippe made the front page by announcing he would step down from his accounting firm. The same for Mel Kohn when he handed the reins of his accounting firm to one of his partners. Gustavo “Gus” Valdespino became the new president and CEO at Valley Presbyterian Hospital, replacing Albert Greene, who passed away in April. Also in the going category was Cecilia Estalano, the chief executive of the City of Los Angeles Community Redevelopment Agency who was an interview subject in June and then resigned from that position in November. A diverse business base has been a plus for the San Fernando Valley region during past downturns but brought no protection in the current recession. Shedding jobs No industry sector from Glendale to Camarillo was safe from shedding jobs or cutting back on expenses. In instances involving major retail chains that went out of business – Mervyn’s, Circuit City, Gottschalks, and Linen ‘N’ Things – empty storefronts were left behind forcing property owners, as detailed in a July story, to think creatively to fill that space. Clothier Forever 21, for instance, has taken over a few former Mervyn’s location. The store on Brand Boulevard in Glendale will become the site of a discount bookseller. The poor economy didn’t stop innovating thinking in the Antelope Valley where the City of Lancaster landed on the network news broadcast of NBC and CBS for its stimulus program that gave residents $30 gift cards for every $300 spent at local businesses and rebated vehicle registration on new car and motorcycle purchases. In total, 6,000 families participated in the program or about 10 percent of households in the city. The registration rebate resulted in 800 vehicles sold and the final calculation was $123 million in spending, outpacing an original estimate of $110 million. “Happy days are not yet here again, but it was gratifying to see the community pull together,” said Vern Lawson, the city’s economic development director. Stimulus program Lawson gave credit to the entire city government for participating in the stimulus program – from his that came up with ideas, to financing the processes the paperwork, to housing that bought 104 foreclosed homes that the city fixed up by local contractors and sub-contractors. The Antelope Valley had its share of other innovations as well. In August, eSolar put into operation its solar thermal power plant, the Sierra Sun Tower. This month the tower was named as the best renewable and sustainable project of the year by Power Engineering magazine. An story from April reported on the X-51A Waverider project, a space vehicle capable of flying at six times the speed of sound. The vehicle was being assembled at Boeing Co.’s facility in Palmdale and tested at Edwards Air Force Base. On Dec. 9, the Waverider became airborne for the first time when taken aloft under the wing of a B-52 in what is termed a captive carry test. The test checked out telemetry systems and avionics and if the vehicle would undergo any undue vibrations or buffeting. “From a captive carry success point I’d’ give it a 9 or 10 out of 10,” said Charlie Brink, from the Air Force Research Laboratory. “There were a few things we found that we needed to work out.” Outside of the economy, one other notable event of the year was the inauguration of President Barack Obama. Even though taking place on the other side of the country, print and electronic media outlets in the area conceived ways to give coverage. The change in presidential administrations was most welcome to Diane Duke, executive director of the Free Speech Coalition, a trade organization for the adult entertainment industry. While there have been no new federal indictments for obscenity, those cases that originated during the Bush years are still moving through court, Duke said. Overall there has been no noticeable change in attitude toward adult from Washington. “(The administration ) has so many issues that it is tacking right now it hasn’t had a chance to look at our industry and the issues facing it and take a stance one way or another,” Duke said.