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Thursday, Mar 28, 2024

Valley Is Ideal Location for Some, Difficult Place for Others

Why are our local public companies located in the greater Valley area when they could probably be anywhere else in the country? Some executives cite the area’s business climate and high level of accessibility as reasons. But others say the city of Los Angeles could do more to keep their businesses around. Encino-based California United Bank’s leaders decided to open the public company in the San Fernando Valley because they felt there weren’t enough banks located in the area. “As a business bank, we feel that there’s tons of opportunities in this general area,” said Anne Williams, the company’s chief operating officer. “There are tons of businesses, and that’s the beauty of the San Fernando Valley. It’s got manufacturing and service and distributors and all kinds of businesses that are located right here.” Williams also said most of the company’s marketing is done within the Valley region. Most public companies do not have as much of their product sold right in their headquarters area, she added. California United Bank, which opened in Encino in 2005, has seven branches and loan production offices located throughout the Valley, Los Angeles and Orange County areas. Local branches and offices include those in Encino, Santa Clarita, Westlake Village and Glendale. The company will also soon have a presence in Thousand Oaks and Simi Valley through its acquisition of California Oaks State Bank, Williams said. IPC The Hospitalist Company founder and CEO Dr. Adam Singer said he started his North Hollywood-based company in the San Fernando Valley because it is a convenient site for employees. “We love the Valley,” he said. “It’s easy to get to for our employees. It’s affordable for employees to commute to, it’s reasonable to live (in). It’s easily accessible to major airports, and it’s where I live.” Singer said the company, which has been located in the San Fernando Valley since 1995, is also able to benefit from tax credits by being located in a state Enterprise Zone. Meanwhile, others are losing their enchantment with the San Fernando Valley. The executive leaders of Unico American Corporation, an insurance holding company in Woodland Hills, are planning to move the company’s headquarters to another location that is out of the Los Angeles city limits, primarily because they feel the city has not been business-friendly enough. “We moved here because the real estate was relatively inexpensive compared to the downtown Los Angeles area that we were in, and we thought that pool was better at the time,” said Cary Cheldin, the company’s president and board chairman. “That was 20 years ago. Today we believe that being in the city of Los Angeles is a detriment, not a benefit.” Cheldin cited high business taxes and over-regulation as some of the issues that influenced his decision. Even though the city has recently started taking several steps to benefit businesses, years of difficulty of operating in Los Angeles has taken its toll on his company, he added. Cheldin said he plans to keep the company in the general region but move west to an area such as Westlake Village, Simi Valley or Thousand Oaks.

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