La Palma, the county’s smallest city, hit with big cuts

La Palma, California –

When things get tough, it’s often the little guys that get hurt the worst. And after the recession, Orange County’s smallest city is in the midst of some very big belt-tightening.

Welcome to La Palma, all 1.8 square miles of it.

Since the recession, the city cut nearly 20 percent of its workforce, to 52 employees from 64.

The changes included reducing the police force to 27 from 32 over six years and more recently implementing more layoffs, combining several civilian departments and eliminating two directors. In July, the City Council created a citizens Financial Sustainability Committee to oversee operations and investigate additional efficiencies.

That’s not all. The city is considering suspending its signature event, La Palma Days, a festival the city points out is also known as the “official Veterans Day parade of Orange County.”

La Palma Days is firmly on the calendar for Nov. 14. But this year is special. The city celebrates its 60th anniversary of incorporation and its 50th anniversary of changing the town’s name from Dairyland to La Palma.

Yes, it would be a shame to suspend the event after such an auspicious year. But revenues are down; pension and other expenses are up. And in establishing the finance committee, the council warned: “The types of measures beyond those already enacted and planned may impact the character and traditions of the city.”

But don’t mistake small for weak. Fiercely independent, La Palma has plenty of pride and more than a few surprises. Money Magazine in 2011, 2013 and 2015 named the city one of the best places to live.

DIVERSITY OF CULTURES

The face of Orange County is changing quickly. Guess which O.C. city has the largest percentage of Asian residents? I would pick Garden Grove or Westminster, maybe Irvine.

Of course, the answer is … La Palma. With an Asian demographic of 48.1 percent, according to the U.S. census, La Palma noses out Westminster. While small at nearly 16,000 residents, La Palma also has the highest percentage of African Americans – 5.2 percent – of any Orange County city.

Cruising La Palma is a treat. Within a few blocks, you can find restaurants specializing in Vietnamese, Chinese and Korean cuisines.

City Manager Ellen Volmert is at the wheel as school lets out and mentions that nearly 20 percent of La Palma is Korean. She reports that city officials visit Korea and are in the early stages of developing more permanent connections.

We pass an area where new houses are proposed. Mind you, the development is nothing like what we see in Irvine, Tustin, Lake Forest or Yorba Linda, where thousands of homes are under construction. In La Palma, on what was a small strawberry farm, seven homes are expected.

Still, it’s a good sign. Register columnist Jonathan Lansner reported in July that La Palma was an especially hot housing market, with homes selling within 33.4 days. He noted low home prices likely were part of the reason; in July, La Palma had a median price of $560,000.

Volmert turns onto Dallas Drive. It looks like a typical cul de sac. But visit this area during the holiday season and be prepared for traffic jams. Christmas decorations cover lawns, holiday lights glow.

The city manager beams. It is that kind of neighborliness that makes living in the smallest city special.

BILLBOARD DOLLARS

To help increase revenue, La Palma has several projects in the works. Each is modest, the kind you’d expect from a city that was designed as a bedroom community and still prides itself for its “small-town character.”

One project involves allowing La Palma to erect several commercial billboards along the 91 freeway. Sure we’re not talking big money, but we are talking six figures. And every little bit quickly adds up.

Another project is Centerpointe, the city’s mixed commercial development north of the 91. Centerpointe dates to the early 1980s and has been updated several times.

It offers hotels, restaurants and office space including La Quinta Inn, Kaiser Permanente, A’Roma Ristorante, Samsung Chemical, CJ Foods.

FIVE SCHOOL DISTRICTS

Because of a quirk in history, there is at least one weird thing about La Palma – a city you can walk across in a half-hour. It’s served by five school districts: Anaheim Union, Centralia, Cypress, Fullerton and Buena Park.

Understand, when those districts were fashioned in the late 1800s, the area was cow country. With far more cows than kids, no one paid attention to the mishmash of school districts.

As I leave the city, I visit John F. Kennedy High. The school opened less than a year after Kennedy was assassinated and became one of the first schools named after our 35th president.

Emblazoned on one wall is Kennedy’s famous inaugural statement: “Ask not what your country can do for you – ask what you can do for your country.”

In an age of Facebook and Twitter, the quote would probably take the country by storm for 15 minutes. And then disappear. Yet it remains as vital a call as the day it was made more than a half-century ago.

It is a national call carried on the broad shoulders of one very small city.

https://www.ocregister.com/articles/city-682843-palma-one.html

Contact the writer: [email protected]

Dick Bove: Recession Will Hit by 2018

Dick Bove: Recession Will Hit by 2018

Bank analyst Dick Bove of Rafferty Capital Markets sees economic growth, inflation and interest rates heating up and then a recession ensuing by 2018.

The yield on the 10-year Treasury note will rise to 8 percent in 2017, he says in a report obtained by CNBC. The 10-year Treasury yielded 2.78 percent Monday afternoon.

“In order to develop earnings models for banking companies, you must have a ‘worldview’ related to money supply, the economy, inflation and interest rates,” Bove writes.

“The view that I am using . . . implies a relatively fast growing economy, increasing rates of inflation, much higher interest rates, and a move back to recession by 2018.”

Traditionally GDP moves in synch with M2 money supply, which includes coins, currency, demand deposits (checking accounts) and time deposits (savings accounts).

But in the last few years, M2 grew more rapidly than the economy and is now expanding at a 5.4 percent rate.

“My view is that the nominal GDP is about to catch up,” Bove said. “This means a stronger economy and a surge in inflation and interest rates. For banks, this would be nirvana. It means more loans at higher rates and wider spreads.”

Meanwhile, the Congressional Budget Office recently revised downward its estimate of potential GDP in 2017 to $19.2 trillion from $20.7 trillion.

“The assumption has always been that the U.S. economy will gain back what was lost in a recession,” Barry Bosworth, senior fellow at the Brookings Institution, told Bloomberg Businessweek.

“Academics are coming to the realization that this time is different and that those losses appear permanent and cannot be regained.”

https://www.newsmax.com/Finance/StreetTalk/Bove-recession-hit-2018/2014/03/11/id/558773/

The last frame – Tustin Lanes to close after nearly four decades

Tustin, California –

The last pin is expected to fall soon at Tustin Lanes, as the family-owned bowling alley gets ready to shut down after 38 years.

Tustin Lanes has been a long-time favorite for leagues and tournaments. Customers say that’s because the Old Irvine Boulevard property hung onto affordable prices and a neighborhood feel, even as trendy bowling centers with flashy technology and high-end cocktails popped up around it.

“Tustin Lanes is like home,” bowler Patty Wood said. “It is just so sad.”

The last day of operations will be Oct. 6, according to a worker and frequent customers.

The closure is in keeping with a national trend. There are less than half as many bowling alleys nationwide today as when league play was at its peak in the late 1970s and early 80s, according to Tom Martino, president of the Bowling Proprietor’s Association of America.

“Now you have to rely more and more on casual bowlers who come only when they want to. That puts the bowling center in a bad situation,” Martino said, with many businesses now worth less than the real estate they sit on.

Tustin Lane managers didn’t respond to multiple requests to discuss the pending closure, though a “Business Closing” banner hangs outside the 42-lane bowling alley and the website states “We are closing soon!”

Wood and her husband, Matt, have bowled in a league at Tustin Lanes just about every Monday night for the past 27 years. Their five-person team is called Aces or Better, and it includes another couple they met at the bowling alley more than 20 years ago.

“I’ve seen engagements. I’ve seen people having babies,” Wood said. “These are lifelong friendships we’ve made with some people.”

Tustin Lanes has been a family affair not only for the customers, but for the owners as well.

Jack Mann, who once owned an orthodontist practice in town, broke ground on the property at the height of the bowling craze in March 1977. Mann had quite the bowling empire, owning for some time Fountain Bowl in Fountain Valley, Regal Lanes in Orange, Kona Lanes in Costa Mesa and another bowling alley in San Dimas.

Competition got stiffer in Tustin in 2008, when Strike Orange County opened a bowling alley at The District. The center, which is now Bowlmor, includes such features as glow-in-the-dark lanes and audio-visual technology.

In 2009, Mann bowed out of the industry when he sold Tustin Lanes to his youngest son, Alex Mann, who also owns Arlington Lanes in Riverside. Within months of taking over, Alex Mann made updates to electronic scoring equipment, decor and signage at the Tustin property.

Along with its 42 bowling lanes, Tustin Lanes offers pool tables, flat-screen TVs and projectors throughout, an arcade, laser tag, two party rooms, a full bar, a snack bar and a pro-shop. Alex Mann told the Register when he took over that he was surveying customers about other possible improvements, but insisted Tustin Lanes would never convert to a trendy center like Bowlmor.

Many bowling alleys that have survived the shifting industry have removed some lanes and added other forms of entertainment such as bumper cars that generate more revenue, Martino said. Many have also embraced high-end food – a trend that’s hit shopping malls, airports and other industries, too.

While Tustin Lanes isn’t the most modern of bowling alleys, Cynthia Edes said it remains friendly and affordable.

“Where else can you take a family and have a couple sodas and maybe a pizza for the price of one ticket to Disneyland?” she said.

Edes took up bowling at Tustin Lanes nine years ago, to keep up with her then-80-year-old mother. Her mom is 89 now and can no longer bowl, but Edes discovered she liked the sport so much she joined a Thursday league.

As word began to spread about the pending closure, Edes said, “It’s really a shame. This will displace over a dozen leagues, which use the alley Monday through Sunday, affecting hundreds of leaguers, other families, church groups and kids birthday party people.”

When the current season ends for Wood’s league, she said they’ll move over to Irvine Lanes. That bowling center is more than 8 miles away, south of the 405 freeway.

Wood hopes it’s just a temporary move, though, with customers and workers holding out hope the owners will open another local bowling center down the road.

“Every year we think we’re at the bottom,” Martino said, with owners watching for a year when the industry’s steady decline will stop. “But that hasn’t been true.”

Proprietors see some glimmers of hope, he said, with a push to get bowling in the 2020 Olympics and attract more young people.

Martino’s friend recently opened a new center in Florida with “pin boys,” where staff members replace fallen pins rather than the pinsetting machines that took over more than 50 years ago.

With such nods to nostalgia, owners hope league bowling might see the same sort of revival that’s made vinyl and beards cool again.

https://www.ocregister.com/articles/bowling-681763-lanes-tustin.html

Contact the writer: 714-796-7963 or [email protected]

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