Highway 41 Change Could Provide Boost to Fox Valley

Gov. Scott Walker, state transportation officials and local business leaders want to promote northeastern Wisconsin with an unmistakable U.S. brand that brings to mind speed, safety and reliability.

The brand — the Interstate Highway System — serves most major U.S. cities and facilitates the distribution of goods and services necessary for business to thrive.

Designating the 142-mile section of U.S. 41 between Green Bay and Milwaukee as an interstate highway would serve as a big boost to the Fox Valley, said Thom Ciske, vice president of governmental affairs for the Fox Cities Chamber of Commerce & Industry.

"To most big companies, major roadway means interstate," Ciske said. "Not that it's capable of handling interstate traffic, not that it works like an interstate, but the fact that it is an interstate. If you look at a map of our area and you see that interstate shield, you know it's a major highway."

The last interstate conversion in Wisconsin occurred in 1996, when U.S. 51 became I-39 between Portage and Wausau.

Dan Mahoney, village administrator for Plover, said the I-39 designation spurred economic development along the corridor, including a $75 million Crossroads Commons retail development and a $40 million Village Park at Plover retail development.

Mahoney said developers gravitate toward interstate highways.

"If you have interstate access, it puts you on the A list," he said. "If you don't have those connections, they may still look at you, but there's something about the interstate status that really elevates economic development in a region. It was very important for us."

The red, white and blue interstate shield also translated into economic development for communities along I-43 between Green Bay and Milwaukee after its conversion from U.S. 141 in the early 1980s.Fred Monique, interim president of the Green Bay Area Chamber of Commerce, said a 2008 study of the I-43 corridor showed the number of retail businesses along the route increased 19 percent in the first decade.

Google, Square Roll Out Payment Services

Google unveiled its much-anticipated wireless-payment and marketing services Thursday, letting consumers pay for products and download coupons using their cell phones. The company is joining forces with MasterCard and Sprint on the project, which relies on a technology called near-field communication. The payment service, called Google Wallet, will be available in San Francisco and New York this summer. Earlier in the week, Square (a San Francisco startup founded by Twitter's Jack Dorsey) rolled out its own payment product. The new Square Register app lets merchants track sales on an iPad, part of the company's plan to replace traditional cash registers and credit-card terminals.

Real Estate Update

It might have been the bad weather in much of the country or the weakening economy: Pending home sales were down in April after gains in February and March, the National Association of Realtors reported today.

The group's Pending Home Sales Index -- based on signed deals that haven't closed yet -- was down 11.6 percent from March and 26.5 percent from April 2010, when the market benefited from tax credits for many homebuyers.

"The pullback in contract signings is disappointing and implies a slower than expected market recovery in upcoming months," Lawrence Yun, the group's chief economist, said in a news release. "The economy hit a soft patch in April from sharply rising oil prices, widespread severe weather with the heaviest precipitation in 20 years, and a sudden rise in unemployment claims."

PayPal has Sued Google Over the Mountain View Internet Juggernaut's Google Wallet Mobile Payment Service.

PayPal, the payment service owned by San Jose online auction powerhouse eBay (EBAY), has sued Google over the Mountain View Internet juggernaut's Google Wallet mobile payment service.

Google, you might recall, announced Thursday that the service, which allows Nexus S 4G owners to pay for goods with their phones, will be tested this summer in San Francisco and New York.

According to Bloomberg News, the state suit filed in San Jose contends that Google violated PayPal's trade-secret rights by hiring away Osama Bedier, who now is in charge of Google's retail payment efforts. The suit also contends that Stephanie Tilenius, another former PayPal executive now at Google, improperly recruited Bedier.

As for Google, it replied that it hasn't stolen PayPal's trade secrets and said that Californians have the legal right to "use their knowledge and expertise to seek better employment opportunities," according to a statement released to The Associated Press.

Solazyme's IPO: Company's Shares Climbed 15.1 Percent in their Nasdaq Trading Debut

A day after Solazyme's initial public offering priced at $18 a share, the company's shares climbed 15.1 percent in their Nasdaq trading debut.

According to reports from the Merc and Bloomberg News, the IPO raised nearly $200 million for the South San Francisco company, which makes a renewable algae-based biofuel that's being tested by the U.S. Navy.

Solazyme is also developing algae-based nutrition and skin-care products. The company is selling its Algenist anti-aging products at Sephora cosmetics stores and on the QVC shopping channel.

At least one analyst says Solazyme's technology is promising -- but the stock is not without its risks.

"As we think about the risk factors that investors in these companies have to confront, it's not a science risk," Raymond James & Associates analyst Pavel Molchanov told Bloomberg. It's how successfully can they scale up to be a large production business."

Solazyme stock finished regular trading today at $20.71, up $2.71 from the offering price.

Filice Enterprises Welcomes New Vice President Michelle Filice

Filice Enterprises, a Bay Area playground safety surface installation company, is welcoming new Vice President Michelle Filice. Previously known as Filice and Son, Filice Enterprises' President Mike Filice took over when his father retired last year, and after a year running the business alone, brought on his wife Michelle to fill the vice president position.

"Michelle brings over 11 years of retail customer service and new employee training to the company," said Mike Filice, president of Filice Enterprises. "Right from the start she re-organized the office, established procedures and hired and trained two new employees. Her position as Vice President is unmatched and Filice Enterprises would not be where we are today without her!"

Filice Enterprises offers safe playground surfaces for commercial and residential spaces, and is both the supplier and the installer. They offer competitive pricing like a big chain, but continue as a family-run local supplier with product exclusivity. Filice offer state-wide delivery service of many different playground surfacing products, such as Fibar Systems, SofTile and Active Playground Equipment (APE).

According to FedStats, a child is injured on a playground every two minutes. With 70% of those playground injuries accruing from falls to the ground, protective surfacing is one of the most critical safety factors in the design, development and maintenance of a playground.

For more information about playground safety surfacing, or any of Filice Enterprises' other products or services, call them at (800) 457-6821 or visit them on the web at filicesurfaces.com.

About Filice Enterprises

 
Since 1995, Filice Enterprises has been California's premier supplier of playground safety surfaces and has covered 8 million square feet of playground surfaces. They are the exclusive Northern California representative of Fibar Systems, SofTile Kroslock Interlocking Rubber Safety Tiles, as well as materials for Poured in Place Rubber projects. For five consecutive years, Filice Enterprises have been named Fibar Sales Representative of the Year.

Filice Enterprises serves the entire San Francisco Bay Area, including the communities of Alameda, Antioch, Berkeley, Castro Valley, Concord, Daly City, Dublin, Emeryville, Fairfield, Fremont, Hayward, Livermore, Marin, Martinez, Mill Valley, Mountain View, Napa, Novato, Oakland, Palo Alto, Pleasanton, Redwood City, Richmond, San Bruno, San Francisco, San Jose, San Mateo, San Rafael, San Ramon, Santa Clara, Sonoma County, Solano County, Vacaville, Vallejo, and Walnut Creek.

Xantrion Inc. Named as 74th America's Fastest-Growing Inner City Business

Xantrion Inc., a leading provider of personalized IT services for small and midsized companies in the San Francisco Bay Area, has been named to the 2011 Inner City 100 list recognizing the fastest-growing inner city businesses in America. Run by Initiative for a Competitive Inner City (ICIC) and Fortune Magazine, the Inner City 100 program recognizes successful inner city companies and their CEOs as role models for entrepreneurship, innovative business practices and job creation in America's urban communities.

Xantrion's portfolio of services range from cloud strategy development to computer network monitoring and maintenance. Their 24/7 help desk, fixed fees, Net Promoter Score of 74 and 99.95% average system availability make it a dependable partner for both one-time projects and ongoing IT support.

The Inner City 100 list provides unmatched original data on the fastest growing inner-city businesses in the U.S. In the last 13 years, 661 different companies have earned positions on the Inner City 100, collectively generating more than $2.2 billion in annual revenues and creating nearly 70,000 new jobs.

For the 2011 list, a record number of two thousand nominations were received. Winners represent a wide span of geography, operating in 51 cities and 32 states. The 2011 Inner City 100 winners grew at a compound annual growth rate of 39 percent and an average standard growth rate of 379 percent between 2004 and 2009. Collectively, the top 100 inner city businesses employ 6,720 employees and have created more than 3,227 new jobs between 2005 and 2009.

"We are delighted to celebrate businesses like Xantrion that are playing a critical role in revitalizing America's urban communities. Through their achievements, the Inner City 100 winning companies exemplify America's remarkable potential and the future of our urban centers," said Mary Kay Leonard, ICIC president and CEO.

Individually, the average Inner City 100 Company's revenues were $11.4 million and have, on average, 12 years of experience since founding. This year's winners have a median employee turnover rate of less than 12 percent (compared to 36 percent for the national average) and 96 percent of them provide health insurance to their workers.

The list is proof of concept that doing business in an inner city area holds a distinct competitive advantage. ICIC has been studying the economic condition of the largest 100 American cities for more than a decade and is working to revitalize inner cities across the country.

Progressive Insurance Plans to Hire 110 Workers by the End of June

To handle a growing customer base, Progressive Insurance plans to hire 110 workers by the end of June at its call center in southern Hillsborough County, the auto insurer said Tuesday.

"The number of policyholders we have continues to grow," company spokeswoman Leah Knapp said, citing a 6 percent increase in auto policies and 5 percent increase in special lines policies compared to a year ago.

Progressive currently has about 2,300 employees at the Riverview center. The complex is the company's second-largest customer service location, after its headquarters and flagship customer service operation in Cleveland.

The new jobs, which involve selling auto policies and answering customer questions, would pay in the $12- to $15-per-hour range, Knapp said.To find out more about available positions, go to jobs.progressive.com

More Than 100 Tech Incubators Around the World Exists

By some estimates, there are more than 100 tech incubators around the world, ranging from those affiliated with top universities to the fast-growing cluster of Bay Area venues like Y Combinator, 500 Startups and Plug and Play Tech Center.

Joining the mix Tuesday is a San Francisco outfit called Greenstart. Like its peers, the "startup accelerator" aims to help entrepreneurs get their young companies off the ground. But Greenstart is focusing on just one slice of the technology pie: so-called "clean" tech.

"I started my first company at 23, and I did it completely horribly," said Greenstart co-founder Mitch Lowe. The litany included bad hires, focusing on the wrong priorities and not validating the assumptions in his business model.

He and teammate Dillon McDonald found considerably more success with Jumpstart, an online advertising company focused on the automotive industry that they sold to the publisher of Car and Driver in 2007 for a cool $84 million.

Now the duo and longtime collaborator Dave Graham -- who runs a San Francisco tech consulting and seed investment firm called Arizona Bay -- want to help other entrepreneurs avoid pitfalls by teaming them up with veteran mentors and giving them a place to work and network, plus $25,000 in walking-around money.

"The three of us have a lot of concerns about the energy challenge," explained Lowe. "For the next part of our careers, we wanted to focus on something that had a larger purpose."

The founders are kicking $2.5 million into the kitty, which Lowe expects will let them invest in 100 companies over the next few years.

It seems unlikely that the next Tesla Motors (TSLA) will be able to get started with so little cash, especially given that Greenstart expects companies chosen for the program to "graduate" within three months. Lowe acknowledges that the aim is largely to help entrepreneurs "validate their thesis and business model so they can raise that next round" of funding, although startups that want to stick around beyond three months won't get thrown to the curb.

At the end of the program, startups will graduate to a pitch session in front of selected angel investors and venture capitalists who specialize in environmental investing.

Ira Ehrenpreis, who leads the green-tech practice at Palo Alto venture firm Technology Partners and isn't affiliated with Greenstart, said that while clean-energy startups tend to require a lot of money to ramp up production, "investors are beginning to recognize that cleantech embodies more than capital-intensive power-generation projects. The industry also focuses on more capital-efficient technology opportunities, which often have their early roots in seed -- even incubator -- stage."

Lowe says the key to the program will be the mentors, who include venture capitalist Stewart Alsop, former Flextronics CEO Michael Marks and Tesla co-founder Marc Tarpenning.

In exchange for that brainpower (and shared office space in San Francisco's financial district), Greenstart will take up to 10 percent ownership in each startup.

For comparison's sake, Burlingame incubator YouWeb takes a 50 percent equity stake in exchange for a $100,000 investment and yearlong commitment. Rock Health, which launched in San Francisco last month to incubate health-focused startups, is incorporated as a nonprofit and takes no ownership in exchange for its $20,000 stipends.

Valley observers say the incubator trend is a reflection of the fact that technology has made it cheaper than ever to launch many startups, especially in the online and software sectors.

Dave McClure, a former PayPal executive and angel investor who started 500 Startups in February, said it's anybody's guess how the rapid proliferation of incubators will play out.

"Competition drives a variety of colorful plumage and elaborate mating calls in a loud and crowded jungle," he said. "Only time will tell which bird songs are beautiful music, and which ones are tone-deaf losers."

8 Bay Area News Awards for Business Journal

The Silicon Valley/San Jose Business Journal won eight awards Saturday night at the San Francisco Peninsula Press Club's 34th annual Greater Bay Area Journalism Awards dinner.

Three of the awards were won for the paper's reporting on the closing of the New United Motor Manufacturing Inc. auto plant in Fremont and the partnership between Tesla Motors Inc. and Toyota Motor that reopened it. The paper won first place awards for analysis and continuing coverage of the story in print and a third place for continuing coverage about it online.

The awards were given for work done in 2010.

The winners were selected from 523 entries from media professionals in the 11 Greater Bay Area counties. Entries were judged by the Press Clubs of Bakersfield, Florida, Houston, New Orleans, San Diego and Southeast Texas.

The awards and journalists cited on them are:

Analysis, Print: First place,The end of the line, David Goll, Eli Segall, Mary Duan, Katherine Conrad, Cromwell Schubarth, Moryt Milo.

Continuing Coverage, Print: First place, The future is here, Katherine Conrad, David Goll, Mary Duan, Eli Segall, Cromwell Schubarth, Moryt Milo.

Headline, Print: First place, @First starts to fill up @last, with retailers, Cromwell Schubarth.

Headline, Second place, Brewery hopes to boost aleing downtown, Cromwell Schubarth.

Overall Excellence, Online/Web: Cromwell Schubarth, Beth Kim.

Editorial: Second place, Clear vision needs to be outlined on county's hospital, Cromwell Schubarth.

Continuing Coverage, Online/Web: Third place, Tesla and Toyota partnership, Mary Duan, David Goll, Cromwell Schubarth, Beth Kim.

Peninsula Politicians and Business Advocates Discussed Ways to Promote a Regional Economic Development Strategy

Peninsula politicians and business advocates joined together Friday in Belmont to discuss ways to promote a regional economic development strategy, with a special emphasis on biotechnology.

San Mateo County Supervisor Don Horsley was joined by Redwood City Councilmember Rosanne Foust, Assemblyman Jerry Hill (D- San Mateo), South San Francisco Mayor Kevin Mullin, as well as other representatives from throughout San Mateo County, to discuss how to help local life science businesses succeed.

Foust said it was in the best interest of the greater Bay Area to ensure advocates are able to make San Mateo County a lucrative region for businesses, especially those in the biotech industry.

"We want to be enablers in San Mateo County,"said Foust. "We don't want to impede business growth.

"The meeting took place in a conference room at the San Mateo County Economic Development Association headquarters on Lakeshore Drive near Highway 101.

Hill said there are 350 biotechnology business located in the Bay Area that offer 15,000 jobs to local residents. But as the industry has grown in popularity and revenue generating potential, as has interest from regions outside the Bay Area that have began offering lucrative opportunities to the businesses should they be willing to relocate.

Biotechnology generated $567 million in payroll in San Mateo County last year, said Hill.

"There are number of great companies doing great things here," he said.

He cited as an example that South San Francisco-based Genentech, the crown jewel of the biotech industry both locally and abroad, has relocated some of its services to Oregon due in part to the the restrictive tax policy in place in California.

Hill said he was sponsoring bills in the state legislature that would eliminate redundancies for biotech companies in terms of their being forced to undergo multiple health inspections from state and federal agencies which demand unnecessary amounts of the business' time.

Mullin, who touted his city as "the birthplace of biotech," spoke to the benefit that the greater Bay Area experiences when local businesses succeed.

"A rising tide floats all boats," said Mullin.

He also talked about the ways he has advocated for a collaboration between the local school system in South San Francisco and the biotech business community. He said he would like to see the relationship between both sectors grow in an effort to maintain local progress.

"We are uniquely positioned to keep momentum growing," said Mullin.

Mullin's father, Gene, a former South San Francisco mayor and State Assemblyman, was part of the South San Francisco government when Genentech first came to the Bay Area.

He gave historical perspective as to why South San Francisco became the hub for biotech that is it today, which he mostly attributed to it being in between San Francisco and Silicon Valley, as well as being able to offer lots of land and space for a relatively cheap price at the time.

He admitted that in the late 1970s, when Genentech first expressed interest in coming to South San Francisco, the city government was not aware of the potential lucrative businesses opportunity that would be joining the city.

"We didn't know what we were getting at the time," said Gene Mullin.

Horsley commented on the necessity of keeping abreast of developments in the local biotech industry in order to find opportunities for expansion.

He said the next time the group gets together they will invite local Congresswomen Jackie Speier and Anna Eshoo in order to get a federal representation at the meeting.

New Businesses Coming to the Fairfield, California

The San Francisco Bay Area city of Fairfield, California continues to reap the rewards of its results-driven economic development program which proactively promotes doing business in Fairfield.

New businesses coming to the city include: UBS Manufacturing, TenCate Advanced Composites, Sports Authority, and Chick-fil-A.

"Our commitment to long-range planning and the fact that we have available land, approved business parks and value priced real estate is a significant factor in businesses choosing to locate here," says Curt Johnston, City of Fairfield's economic development division manager. "We are pleased to add these new companies to our successful business community."

UBS Manufacturing, a designer and manufacturer of light gauge steel, residential and commercial buildings, and components, is planning to open a west coast production facility in the former Fiberbond building at 299 Beck Avenue in Solano Business Park. The company is in the process of acquiring, rehabilitating and equipping the building. Fall 2011 is the projected move in date with production being ramped up over the course of the next year. When operating at full capacity, UBS will add 200 new jobs to the local economy.

TenCate Advanced Composites, which has 3,500 employees in 15 countries and annual sales in excess of $1 billion, is expected to employ about 100 people when it begins operations at 2450 Cordelia Road in the former Tri-Eagle Beverage facility. The company is a leading supplier of specialty materials ranging from ballistic armor protection to advanced composites for aerospace and industrial sectors. Its prepregs are found on almost all satellite programs in the Western world.

Sports Authority is moving into the space vacated by Mervyn's at Westfield Solano Mall. The sporting goods retailer has 450 stores in the U.S., with several in the San Francisco Bay Area. The store is expected to open in mid-October 2011. New additions to the mall also include the recent opening of a new dining court.

Chick-fil-A restaurant, which has a location in the mall, will soon open a second location in Fairfield. A new Chick-fil-A, is under construction in the Gateway area of the city. The restaurant will take up part of an old Marie Callender's building. August 2011 is the expected opening date.

Fairfield Offers Important Business Benefits

Fairfield is a premium location for office and industrial development in the San Francisco Bay Area. It continues to appeal to companies for its central location to the North and East Bay areas, value priced land with room to grow, pre-approved business parks, a diverse, skilled workforce, high-quality water with an abundant supply, and affordable and executive housing choices. Major employers in Fairfield include: Sutter Regional Medical Foundation; Jelly Belly Candy Company; Copart, Anheuser Busch; Meyer Cookware US: and Amcor PET. For additional information visit: http://www.fairfield.ca.gov.

"BayWEB" Broadband Network will Help Public Safety and Create 1,300 Jobs

Today the Alliance for Jobs and Sustainable Growth, a coalition of business and labor, announced its support of the Bay Area Wireless Enhanced Broadband System (BayWEB), a new wireless broadband network that promises to help law enforcement, create jobs, and improve wireless access in underserved areas.

"Business and labor don't agree on everything, but we agree that this public-private project is necessary because it will help law enforcement agencies communicate better in emergency situations," said Leon Chow of SEIU-United Healthcare Workers West and an Alliance leader. "BayWEB will improve the safety of the entire Bay Area by providing law enforcement agencies with a state-of-the-art, interoperable, LTE 4G broadband network."

The Alliance cites three reasons for supporting BayWEB: it helps public safety; it creates jobs; and it increases broadband access to underserved areas and institutions such as community colleges, hospitals, schools and libraries.

Steve Falk, President of the San Francisco Chamber of Commerce and an Alliance leader, emphasized job creation.

"This project will bring 1,300 jobs into the Bay Area," said Falk. "We need this kind of project in tough economic times. Unlike most projects, the timeline is immediate and the positive impact will be felt within the first two years."

According to a resolution passed unanimously by the Alliance, BayWEB will provide public broadband access for Bay Area community colleges, hospitals, health care providers, public libraries, and schools as well as business and residential customers in areas with limited or no access to high-speed Internet.

The resolution also says that for public safety users, BayWEB will deploy a "comprehensive LTE 4th Generation wireless broadband network."

"This state-of-art system will support data interoperability, allowing Bay Area emergency responders to connect on a common dedicated data network for the first time," says the resolution. "In a disaster situation, BayWEB will enable emergency responders to have broadband access to mission-critical information and improve the delivery of health and safety services to millions of Northern California residents."

About BayWEB:

BayWEB will provide economic benefits for the entire Bay Area. The build-out and deployment of the BayWEB network is estimated to create more than 1,300 jobs. In addition, local job creation will be boosted by the public broadband component of BayWEB.

After 10 years, ownership of the BayWEB system will be transferred to the local Bay Area governing authority, providing local jurisdictions the opportunity to operate these proven systems and generate revenue.

The $72.4 million project is jointly funded through a federal BTOP (Broadband Technology Opportunities Program) grant of $50.5 million and $21.9 million in private funding from Motorola Solutions. The company was awarded the federal grant following a competitive review process administered by the U.S. Department of Commerce as part of the American Recovery and Reinvestment Act.

MEMBERS OF THE ALLIANCE:

A. Philip Randolph Institute
Building Owners and Managers Association
Carpenters Local 22
San Francisco Chamber of Commerce
Committee on Jobs
San Francisco Deputy Sheriffs' Association
Golden Gate Restaurant Association
Hospital Council of Northern & Central California
International Brotherhood Of Electrical Workers Local 1245
International Longshore and Warehouse Union Local 6
Laborers Local 261
Laborers Local 261 Community Service & Training Foundation
Mission Housing Development Corporation
Mission Language & Vocational School
Northern California District Council of Laborers
Plan C
Plumbers & Pipefitters Union Local 38
San Francisco Police Officers Association
SEIU-UHW
Small Business Network
Teamsters Local 856
UFCW Local 5

Tips for Using Social Media Sites to Promote and Market Businesses Online

Hearst Media Services Bay Area has released an article outlining tips for using social media sites, such as Facebook and MySpace, to successfully promote and market their businesses online. This article is part of Hearst Media Services' ongoing efforts to assist the Bay Area business community in effectively digital marketing of their products and services.

Hearst Media Services Bay Area has released the feature to assist small- and medium-sized businesses in creating and managing their social media presence strategically and effectively. The article details the various aspects of social media that business owners should consider when they create their own fan pages.

"Social media is perhaps the fastest growing and most affordable marketing tools any business can use today," said Kris Loberg, Director of Business Marketing for Hearst Media Services Bay Area. "A well-constructed social media fan page will help current customers become promoters of your brand and bring new customers to your base."

Hearst Media Services Bay Area maintains an online library of articles written to help business owners understand an increasingly complex marketing world and get the most ROI on their marketing dollars. These articles are free and available to all businesses.

This and other articles can be found at: www.sfgate.com/chronicle/adsite/wp_index.html

About Hearst Media Services/Bay Area
In addition to the vast resources of the San Francisco Chronicle and SFGate.com, Hearst Media Services Bay Area provides every thing from social media campaigns to search engine marketing to direct mail and e-mail advertising. Whether targeting customers based on behavior, demographics and geography or using the broad reach of Hearst Media Services products to reach 1.8 million Bay Area adults each week, advertisers can find all their marketing solutions in one, easy-to-implement source.

California - Home to About 239,000 Veteran-Owned Businesses

Christian Knierim managed teams of employees and million-dollar programs as an Air Force intelligence officer in Iraq, but he could not find a job that suited him when he left the military and returned to a recession.

He wanted to work for a nonprofit organization, but jobs were scarce and Bay Area employers told him he needed more direct experience in nonprofits -- the Air Force didn't count.

So he did what tens of thousands of veterans have done in California: He employed himself.

California is home to about 239,000 veteran-owned businesses, more than any other state, and about 36,000 of them are in the Bay Area, according to U.S. Census Bureau estimates released Tuesday, the first time such data have ever been available.

Like other businesses, many will fail. Some will thrive. Most have no paid employees.

But for many veterans, being one's own boss can offer a path to self-reliance that can be hard to find in the civilian workforce.

"I started this business out of necessity. I had to survive," Knierim said.

Two years ago, the 34-year-old opened a workshop to refurbish battery backup systems in San Francisco.

Wedged between a nightclub and a tattoo parlor in the South of Market district, Knierim's firm has one paid worker -- himself -- but is growing, he said.

"I'm the sales guy," he said. "I'm also the webmaster, the technician. I'm the shipping clerk. I'm the one who packs them up, who prepares them for shipping."

Veterans own 4,900 businesses in San Francisco, 3,300 in San Jose and 2,400 in Oakland, according to the newly released statistics.

Veterans represent a little less than 10 percent of the total civilian workforce in the United States and own about 9 percent of the country's businesses, said Thomas Mesenbourg, deputy director of the Census Bureau. They are about as likely to own a business as any other segment of the population.

Veterans, however, are somewhat more likely than other business owners to own a construction firm or one that supplies professional, scientific or technical services, according to the statistics, which were collected during a nationwide survey in 2007 and released this week.

Removing land mines from the war-torn Balkans is a world away from helping build a new span of the Bay Bridge, but Army veteran Patrick Lowry is one of the success stories among the Bay Area's military veteran entrepreneurs.

"We did de-mining -- taking mines out of the ground," Lowry said of his service in Bosnia, Kosovo and Albania. "Building bridges, building roads, blowing things up."

In 2008, Lowry and a partner opened an Emeryville-based consulting company that inspects welding and steel for the new Bay Bridge. A firm that started with two people two years ago now has 70 employees and is working on one of the state's most important projects.

"The leadership skills from the military translate perfectly," said Lowry, who was a captain when he left the service. "Whether you're motivating people when they're tired and wet and hungry or you're motivating people when there's tough economic times like there is today, there are parallels."

Lowry had a smooth transition into civilian work, but his engineering background makes him unique. Many veterans who served in Iraq or Afghanistan have intense combat experience but few skills that transfer to the civilian world, he said.

"A guy at 22, 23 years old, it's tough. You've got that motivation, that drive. But there's a lot of competition for even entry-level jobs right now," he said.

The federal government has pumped resources, especially in the past decade, into helping veterans set up businesses and succeed. Some cover some expenses, some cover contract preferences. Since 1989, California has had the goal of awarding 3 percent of all state contracts to disabled veterans.

The programs all assume that many veterans tackle a mountain of challenges in adjusting to civilian life.

Starting a business can be a lifeline for unemployed veterans who suffer from post-traumatic stress syndrome, said Rich Dryden of the California Disabled Veteran Business Alliance.

"Sometimes it may be easier for them to work for themselves," he said. "There's lots of good reasoning for those who have a business acumen to open a business rather than work with someone else."

The Inaugural Group of YBA Entrepreneurs to Receive Funding Based on a Grant to YBA from the AGF in the US

The Arthur Guinness Fund(SM) (AGF) and Youth Business America (YBA) today announced the inaugural group of YBA entrepreneurs to receive funding based on a grant to YBA from the AGF in the United States. The five initial awardees will receive funding and mentoring services from YBA to establish and grow their businesses in the San Francisco Bay area. The AGF is a $10 M global program dedicated to supporting entrepreneurs that make a positive social or economic impact in their communities. Through this platform, the AGF will help YBA pursue its mission of identifying and supporting young entrepreneurs who have a sound business concept and the desire and skills necessary to succeed, regardless of their economic circumstances.

"The Arthur Guinness Fund is the modern legacy to our founder Arthur Guinness," said Oliver Loomes, GUINNESS Global Brand Director. "Through the support of YBA we continue his dedication to 'doing good' and his pioneering work in corporate philanthropy by funding these organizations that empower communities through economic investment and job creation."

The entrepreneurs selected by YBA to receive support from the Arthur Guinness Fund include:


Claire Hoyt, Big Dipper Baby Food
 

Turning her passion into her career came naturally for Claire Hoyt. The concept for Big Dipper Baby Food was born from cooking for her own son and grew into the idea to sell her made fresh daily, organic baby food and toddler meals. Claire was approved for YBA support to establish a space at the Bernal Heights collaborative marketplace and a home delivery service for San Francisco families.

Esther Flatto, Flip Slips


A Mary Jane shoe that folds in half, collapses, and completely reverses into its own pouch that fits into a small purse, Esther Flatto developed Flip Slips after suffering through too many unbearable walks up San Francisco hills in high-heel shoes. Esther was approved for YBA support to help get her business off the ground in 2011.

Evan Bloom & Leo Beckerman, Wise Sons Deli


With a vision of sharing culture through food, Wise Sons Deli will fill the void of quality Jewish Deli food in San Francisco and sources all products from local businesses. Wise Sons Deli was approved for YBA support to establish a permanent location in San Francisco's Mission District that will create significant employment in the area.

Keith O'Hara, Eco Performance Builders


With a goal of making the Bay Area a greener place to live and work, Eco Performance Builders build and retrofit homes that will be energy efficient, comfortable, safer and healthier. The company was approved for YBA support so that Keith and his brother Scott can expand the business, hire additional employees and take on more home performance retrofits and green building projects in the East Bay.

Lucina "Lucy" Marecos, Christian "Ned" Halaby, & Keith Agoada, Lucina's Kitchen
 

After attending a dinner party where guests raved about her carne and caprese empanadas, Lucina "Lucy" Marecos was inspired to create Lucina's Kitchen. Joining co-founders Ned Halaby and Keith Agoada, the business was approved for YBA support to help with start-up costs for scaling their business with a line of frozen empanada products.
 

Through the Arthur Guinness Fund and Youth Business America these entrepreneurs will receive investment funding and mentoring support from area business leaders across a wide range of specializations matched up to their specific business needs. A key element of the program will be to offer counsel in marketing and innovation and educate these aspiring entrepreneurs about the importance of establishing social responsibility practices for their new ventures.

"We are thrilled to announce the first round of YBA entrepreneurs in the US and thankful of the generous support of the Arthur Guinness Fund," said Henry Rogers, CEO, Youth Business America. "YBA is a member of Youth Business International (YBI). Founded in 2000 by HRH The Prince of Wales, YBI is a global network of independent non-profit initiatives helping young people start and grow their own business and create employment."

Within the YBI network, YBA serves as an important forum for American foundations, universities and corporations that are focused on issues of youth economic empowerment and microenterprise development. A founding supporter of YBA, the Arthur Guinness Fund, which was established in 2009 to commemorate the 250th anniversary of the signing of the lease for the St. James's Gate Brewery, aims to fund and support at least 150 young entrepreneurs in the YBA program over the next five years. Through this commitment, AGF hopes to empower these individuals to use their entrepreneurial thinking to create solutions that will lead to lasting, positive change in their communities. For additional information on the program and how to apply, visit www.youthbusinessamerica.org.

In addition to the partnership with YBA to aid entrepreneurs in California, the Arthur Guinness Fund has also enlisted Ashoka, the global association of the world's leading social entrepreneurs, to act as its global partner, providing funding to eligible social entrepreneurs across the U.S. and around the world. For additional information about the Arthur Guinness Fund and its involvement in supporting social entrepreneurship throughout the world, visit www.guinnessforgood.com.

About the Arthur Guinness Fund(SM)

The Arthur Guinness Fund is an internal program set up to further the legacy of Arthur Guinness and support social entrepreneurs around the world. The fund was launched and set up in 2009 to mark the 250th anniversary of the signing of the lease for the St. James's Gate Brewery. Guinness & Co is committed through The Arthur Guinness Fund to identifying and supporting social entrepreneurs globally with the skills and support required to deliver a measureable, transformational change to communities around the world.

About Diageo

Diageo is the world's leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, wines, and beer categories. These brands include Johnnie Walker, Guinness, Smirnoff, J&B, Baileys, Cuervo, Tanqueray, Captain Morgan, Crown Royal, Beaulieu Vineyard and Sterling Vineyards wines. Diageo is a global company, trading in more than 180 countries around the world. The company is listed on both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE). For more information about Diageo, its people, brands, and performance, visit us at Diageo.com. For our global resource that promotes responsible drinking through the sharing of best practice tools, information and initiatives, visit DRINKiQ.com.

Celebrating life, every day, everywhere.

About Youth Business America

Youth Business America's mission is to Find, Fund and Mentor young entrepreneurs who need help to start-up or expand their own businesses, which would generate employment and promote the economic health of low and moderate income communities. Based in Oakland, California, it presently focuses its program on young people aged 18 to 35 who have completed entrepreneurship training with one of YBA's Community Partners serving communities throughout the San Francisco Bay Area. As YBA develops it will roll out its program to other communities in California with the goal of establishing a national network.

Tempa Bay Area News and Announcements

Legal

Jeanne T. Tate has been listed in U.S. News & World Report as a "Best Law Firm" for 2010 as a Tier 1 firm. U.S. News conducts its own independent investigations to determine who gets ranked and at what tier. The firm is listed in the practice area of family law. Tate is an adoption attorney, and her office is located at 418 W Platt St., Tampa. (813) 258-3373 .

Public relations

JoTo Extreme PR, 411 Cleveland St., Suite 204, Clearwater, announces the addition of KnowBe4, McGovern Physical Therapy, Game 7 Sports Training, and Business Network International West Coast of Florida (BNI WCF) to its client portfolio. Toll-free 1-888-202-4614 or visit www.jotopr.com.

Real estate

Marcus & Millichap Real Estate Investment Services, 7650 Courtney Campbell Parkway, Suite 920, Tampa, announces the sale of Hyde Park Pointe, a 32-unit apartment complex located in Hyde Park/SoHo district of Tampa. Sale price was $1.9 million. (813) 387-4700 or visit www.MarcusMillichap.com.

Mousethruthehouse.com, Holiday, announces these home builders have joined the Mousethruthehouse.com network: GL Homes of South Florida, which builds in Valencia Lakes, southern Hillsborough County; Pioneer Homes of Tarpon Springs, which builds single-family and multifamily homes in Pinellas and Pasco counties; Southern Crafted Homes of Pasco County, which builds in Pasco County; and Sabal Homes of Hillsborough County. (727) 942-2718 .

The Book Tour Becomes Big Business

When Tina Fey visited the Bay Area in April on her book tour for “Bossypants,” she made just two stops. She gave an interview before a sold-out crowd at the Orpheum Theater, as part of the City Arts & Lectures series. And she dropped by the Mountain View headquarters of Google.

At an Authors@Google “fireside chat,” Ms. Fey, the “30 Rock” creator and star, had a friendly conversation with Eric Schmidt, the company’s executive chairman, in front of an audience of hundreds of employees who greeted her with a standing ovation.

As Google’s reach into many aspects of media production and distribution grows ever greater, A-list authors, actors, musicians and others are taking part in the company’s six-year-old on-campus speaker series.

Lady Gaga recently shared the stage with Marissa Mayer, the company’s vice president for location and local services, as did Christy Turlington, the supermodel turned documentary director. The YouTube video of “Google Goes Gaga” has been viewed more than 1.5 million times.

The unlikely spectacle of technology executives chatting up celebrities talk-show-style originated as part of Google’s effort to create a quasi-collegiate atmosphere on its campus. The events increasingly dovetail with Google’s interests in publishing, broadcasting, music distribution and other media businesses. The company is selling “Bossypants” as a Google e-book for $12.99 in its online bookstore, which it opened in December.

For authors and other creative professionals, an appearance at the Googleplex, the company’s sprawling complex of office buildings, is good business — but nonetheless conjures some mixed emotions in light of Google’s complicated relationship with content creators. The company is involved in a bitter lawsuit over its efforts to scan all of the world’s books and make them available online, and has long stood accused of unfairly profiting from work that is excerpted and indexed by the company’s search services.

“I think it’s a great thing that they’re doing this,” Chris Clarke, a natural history and environmental writer, said of the talks. “I don’t think that it clears their karma as far as trying to become the sole-source provider of all intellectual property everywhere.”

The speaker series began in 2005 with the New Yorker writers Malcolm Gladwell and James Surowiecki as its first two guests and has since featured hundreds of authors, musicians, chefs, economists and politicians.

Google employees involved in the program say that it evolved out of employees’ interests and at their initiative.

“The program was a grass-roots effort that started when a few Googlers realized that some remarkable people were passing through the halls of the Googleplex,” said Ann Farmer, an information engineer. She is one of more than two dozen employee volunteers who organize the events, which are now held three to five times a week.

Since 2005, more than 1,000 guests have appeared. Garry Kasparov, the chess master, and Jesse Ventura, the former governor of Minnesota, are among some 600 authors, mostly of nonfiction, who have participated. The list includes a number of authors who have written books about Google.

Talks now take place at Google offices around the world, with employees from 18 offices participating via videoconferencing. At larger events, employees use Google Moderator software, which fields questions from the audience, ranking the most popular ones.

In the early days of the series, the employees had to cajole speakers to attend, working personal connections, since the company did not pay an honorarium. But the program gained traction, with some talks drawing more than a million viewers on YouTube. “Let’s put it this way,” said Ms. Farmer. “The tables have turned.”

As of April 1, Cliff Redeker, 27, is the company’s official “speakers specialist.” He used to organize author visits in his spare time as a support specialist, but now his full-time job is dedicated to the speaker series.

The series has made the Googleplex an increasingly important stop for authors promoting their work in the Bay Area, as many major bookstores that featured readings have closed.

“It’s not going to replace bookstore events,” said Larry Weissman, a literary agent in Brooklyn, “but if I have an author going to San Francisco, I always want my author to stop in at Google and do an event there as well.”

The Google books lawsuit, though, combined with a broader concern that the Internet is undermining the ability of authors to get paid for their work, remains a big issue for some.

As of last October, Google Books had already scanned more than 15 million titles from more than 100 countries in 400 languages. On March 22, a federal judge threw out a settlement agreement between Google and groups representing authors and publishers. The Authors Guild had filed a class-action lawsuit against the company over copyright infringement.

VWR is Ditching the Bay Area to Relocate to an Industrial Park in Tulare County

Brisbane is about to be crippled by the move of one of its major tax contributors as VWR International prepares to move its massive medical supply distribution center to the city of Visalia.
 

VWR, owned by private equity firm Madison Dearborn Partners, is ditching the Bay Area to relocate to an industrial park in Tulare County that offers special tax breaks through the state.
 

U.S. Rep. Jackie Speier, D-San Mateo, calls the move a hedge fund scheme by Madison Dearborn to maximize profits in the near term.
 

The move will cost Brisbane roughly $2.1 million a year and reduce its general fund budget by more than 18 percent, said City Manager Clay Holstein.
 

VWR supplies the city with about 50 percent of its sales tax revenue, Holstein said. Brisbane has made numerous attempts to reach out to the company to negotiate with it to stay in the city but the company has been completely unresponsive, Holstein said.
 

“In 30 years in government, I’ve never had anyone absolutely refuse to talk,” Holstein said.
 

The lost revenue would reduce Brisbane’s police force by 67 percent and its fire department by 88 percent, Holstein said.  

 

Brisbane Councilman Clarke Conway said the state’s “dysfunctional law” will cripple the city.
 

“This will destroy our community and decimate our services,” Conway said at a federal-state inquiry into job losses and misdirected tax policy yesterday held by Speier and state Treasurer Bill Lockyer at Brisbane City Hall. “What can we do to stop this?”


The enterprise zone tax breaks are intended to lure companies from out of state to California.


“This is an example of state law run amok,” Speier said. “It is a job-destroying law. It is a taxpayer ripoff that is robbing one community in order to enrich another in the same state.”


Currently, Assemblyman Jerry Hill, D-San Mateo, is crafting legislation to close what he calls a “loophole” in state law to prevent cities from luring companies away from other cities in the state by offering tax incentives.


“It is a crazy law that does not make sense,” Hill said.


VWR has already broken ground on a 500,000-square-foot distribution center in Visalia scheduled to open sometime in 2012. The company reports annual sales in the billions and supplies Genentech, the University of California and other companies with medical supplies.


VWR stands to gain $1.5 million a year in sales tax breaks through the state by relocating to Visalia’s enterprise zone and would be entitled to tax credits of $37,000 for each employee hired locally.


So far, none of VWR’s local employees, more than 160, have been offered the opportunity to relocate to Visalia, said John Thomas, a employee at VWR for more than 15 years.


“They don’t want to take union employees,” Thomas said. “We helped build this company to success.”


An exact date of the Brisbane closing has yet to be determined, however the second quarter in 2012 has been targeted, VWR spokeswoman Valerie Collado replied to the Daily Journal by email yesterday.


“Impacted associates were provided almost two years notice to ensure they can plan the next steps in their lives,” according to Collado’s email.


VWR employees asked for transfer rights but were rejected, said John Carlo Ricci, a foreman at the company who has worked there for 15 years.


In the long term, the move to Visalia will save the company millions annually in reduced wages and benefits, said John Logan, director of labor studies at San Francisco State University, who testified at yesterday’s hearing.


But VWR said it must make the move because it has outgrown the Brisbane facility.


“The current Brisbane facility is beyond capacity and is no longer capable of handling VWR’s growing business needs. VWR explored the option of transitioning to a larger facility in the Bay Area but determined Visalia to be the best location to meet the needs of clients,” according to Collado’s email to the Daily Journal.


Tulare County’s current unemployment rate is currently at about 17.7 percent, well above the state average.


The Tulare Targeted Tax Area is one of the state’s 53 enterprise zones that Gov. Jerry Brown has proposed eliminating to help trim the state’s $26 billion deficit.


To eliminate the zones, however, would take a two-thirds vote by the Legislature, an unlikely scenario, Lockyer said yesterday. The tax zones cost the state roughly $2 billion a year in revenue, he said.


The move is not simply a free-market move by the company, said public policy attorney Julian Gross.


“It is subsidized activity at the cost of state taxpayers,” Gross said at yesterday’s hearing. “The state should not subsidize in-state relocations.”


VWR also intends to close a smaller distribution warehouse in San Dimas, near San Diego.


VWR has purchased land in Visalia, instead of leasing space in Brisbane, allowing the company the future flexibility of expansion if needed at a later date, according to Collado’s email.


Ironically, the state invests heavily in VWR’s parent company, Madison Dearborn Partners. Since 1999, the California Public Employees’ Retirement System has invested more than $610 million with Madison Dearborn, Lockyer said.


CalPERS manages pension and health benefits for more than 1.6 million state public employees.


“Madison Dearborn is not the type of hedge fund the state should be investing in. If they are doing it here, they are doing it elsewhere,” Speier said. “I’m hoping the company will reconsider the move. [If they do not] I’m going to make it living hell for the company moving forward.”


VWR contends, however, the move is not based on obtaining tax credits.
“We are continuing to assess the availability of certain tax incentives. However, we do not anticipate benefiting from any hiring or employment incentives or credits at this time, and the possibility of obtaining such credits did not impact our decision to build in Visalia,” Collado wrote in the email.

Last Annual Meeting of Shareholders of Progress Energy

Shareholders of Progress Energy gather Wednesday morning in the company's home town of Raleigh, N.C., for the last annual meeting before the merger later this year into larger Duke Energy.

Combined, the companies become the country's largest electricity provider and a top advocate of nuclear power — despite soaring costs to build nuke plants. The merger also comes just as the world rethinks the virtues of nuclear energy after Japan's nuclear disaster, the biggest since the 1986 Chernobyl meltdown.

For Tampa Bay area ratepayers, it's the latest tale of the bigger devouring the big. In 2000, Progress Energy gobbled up St. Petersburg's Florida Power, arguing utilities must get larger to compete. We hear a similar message in Duke's $13 billion-plus purchase of Progress Energy. Want nuclear power? Better get deeper pockets.

"If we look at the capital expenditures in front of us and if we want to be a player in new nuclear construction, which we think is important, we're just not big enough to do that efficiently," Progress Energy CEO Bill Johnson told the Associated Press.

On their own, Progress Energy and Duke each have long rallied behind nuclear power. In the climate change debate, they argue nuclear power can cut air and water pollution produced by coal, oil and even natural gas — today's fuel of choice to generate electricity. They also say nuclear is key to achieving a much tougher goal: A big reduction in our dependence on foreign oil.

That, at least is the grand vision of the two companies, both based in North Carolina. The day-to-day reality is sometimes different.

A merged Duke-Progress Energy will lobby aggressively for such pro-nuclear aid as cheaper government loans and energy incentives.

It will seek the power to charge more consumers up front for the expense of building nuclear plants.

Florida lawmakers already allow utilities with nuclear ambitions to charge customers in advance.

Leery of Japan's predicament, North Carolina legislators recently rebuffed Duke and Progress Energy for seeking similar powers in their home state.

"Nuclear energy remains vital to the world's electricity needs," CEO James E. Rogers said last week at Duke's annual shareholders meeting. He promised safety modifications identified from Japan's crisis will be made.

Duke and Progress Energy want to build nuclear plants in North Carolina, South Carolina and in Florida's Levy County, north of the Tampa Bay area.

Duke already operates seven nuclear reactors. Progress Energy runs five, including one Florida unit at Crystal River in Citrus County. That one has been off-line and under repair since September 2009. (Progress Energy Florida, the St. Petersburg subsidiary, supplies the bulk of electricity to west central Florida.)

At Duke's annual meeting in its headquarters town of Charlotte, N.C., protesters ranged from environmental groups that opposed coal and nuclear power plants to tea party activists who complained that Rogers helped bring the 2012 Democratic National Convention to town.

Nuclear or not, one thing is clear: Whatever path Progress Energy takes, electric rates in the long term are likely to keep rising.

In 2002, Progress Energy Florida sold 1,000 kilowatt hours of electricity for about $82. Now it's about $119. You get the general drift.

Fuel Management Company Dedicating to Helping Clients

It's fitting a company dedicated to helping clients get the most from transportation-energy costs has its new offices in a former train station and chamber of commerce building.

Breakthrough Fuel recently moved into the renovated former Milwaukee Road building at 400 S. Washington St. that also was home to the Green Bay Area Chamber of Commerce.

The company helps clients get the most from the money they spend on shipping their products by analyzing everything associated with the process.

"Historically, companies look at transportation energy as an uncontrollable expense," said Craig Dickman, founder, CEO and chief innovation officer. "Transparency is very important and at the core of everything we do: 'Now that we understand this, how can we change it?'"

Breakthrough uses software it developed and patented, but also has a diverse workforce of 20 employees with backgrounds in areas such as mathematics, technology, economics and shipping.

"Our world is a heavy focus on data and analytics," said Doug Mueller, Breakthrough's president.

In addition to making shipping more efficient, Breakthrough works to reduce environmental impact, such as helping clients work toward a carbon-reduced transportation strategy.

"The way we look at it, sustainability is an important part of the strategy," Dickman said. "But it's economics and sustainability, not economics or sustainability."

In October, Breakthrough received an Excellence Award, given to business partners that provide Procter & Gamble with ideas, technology, creativity, diversity and innovation.

"That's really our objective, to become a trusted adviser, but it's much more than advisory. It's operational," Mueller said.

Ultimately, it is up to the clients to determine their transportation strategies, Dickman said.

"We will work with all the companies they work with. When you look within somebody's supply chain, there are things that can be done," he said.

Clients include Ace Hardware, Americold Logistics, Andersen Corp., Georgia-Pacific, John Deere, Polaris Industries, Procter & Gamble, Rockline Industries, SCA Tissue, Shopko and Whirlpool Corp.

Breakthrough has three data centers. The primary center is in Phoenix, which Dickman said is judged to be one spot in the country least likely to experience a natural disaster. The company has a backup center and a third in Green Bay.

The building, located on the Fox River in downtown Green Bay, was gutted and given a total interior makeover. Brick walls were exposed and reclaimed wood used to preserve the heritage of the 113-year-old building, but thoroughly modern aspects were added as well.

A spiral staircase with glass steps occupies the center of the building. Conference rooms and offices have glass walls, and every nook and cranny has been given a use. For example, a back stairway is home to computer servers, and doors on cabinets in a meeting area double as white boards.

The building is wired for every kind of computer interaction.

Dickman said people have been bringing them mementos from the train station days, including train tickets and a photograph of the Green Bay Packers returning home after winning the 1936 NFL championship.

Dickman began working on Breakthrough in 2004 and formally organized the company in 2006. Mueller joined him in 2007.

They met when they were working for Schneider National, and again when they were enrolled in the University of Wisconsin-Oshkosh MBA program.

Dickman also worked for Shade Information Systems and was president and CEO of Paper Transport; Mueller worked with North American Transport Group.

In all their jobs, they could see that transportation-energy costs were important.

"We saw that it was totally inefficient," Dickman said.

The company continues to innovate — it applied for two more patents — often in response to customer requests.

Homeowners are Using Provision of the Bankruptcy Code to Eliminate Second Mortgages and Avoid Foreclosure

Stung by the crash of the housing market, some struggling homeowners are using a little known but increasingly popular provision of the bankruptcy code to eliminate second mortgages and avoid foreclosure.

Statistics are hard to come by, but bankruptcy lawyers say the provision has been used effectively on hundreds, if not thousands, of cases in the Bay Area during the past two years.

"It's a big thing in our valley," said James "Ike" Shulman, a San Jose bankruptcy lawyer. "But it's not widely known."

Shulman, co-founder of the National Association of Consumer Bankruptcy Attorneys, said he has helped a number of clients who have filed for personal bankruptcy use the law to hold on to their houses -- including three last week.

Cathy Moran, a Mountain View bankruptcy lawyer, said one of her clients had a $132,000 second mortgage voided by the court.

"This is a really big-ticket issue that allows people to keep a home and conform the mortgage to something closer to real value," Moran said.

Bankruptcy laws prevent homeowners from eliminating the debt of a first mortgage if they plan to stay in their home. But second mortgages are treated differently. They can be declared unsecured debt when there is no equity to cover them, as is the case for millions of houses that are now worth far less than a few years ago.

When that happens in a personal bankruptcy proceeding, the second mortgage is put on hold and no payments are required while the homeowner completes a repayment plan for other debts -- which typically takes three to five years. At that point, the second mortgage is eliminated.

Many of these second mortgages were granted during the housing bubble, when home prices were going in one direction only -- up, up and up.

"A lot of these are loans that shouldn't have been made at all," said Henry Sommer, editor of Collier on Bankruptcy, a publication on bankruptcy law.

One of Shulman's clients, Veronica -- who asked that her full name not be used -- was struggling to keep the San Jose house she bought in 2005 for $612,000.

Her home's value has dropped to about $367,000 -- less than her first mortgage of $489,000 -- which allowed her to petition the bankruptcy court to set aside her $122,000 second mortgage. The court granted her motion.

She successfully completed her payment plan for other debts two months ago, and her second mortgage is now eliminated.

"It's wonderful," she said. "After almost six years, I am finally able to see the light at the end of the tunnel and I'm so, so grateful."

Mortgage bankers don't like the practice.

It's "a troublesome phenomenon. It's one of those things that's just now developing and bubbling up," said Dustin Hobbs, spokesman for the California Mortgage Bankers Association. But there is little the mortgage industry can do, aside from seeking to change the law. That could be difficult given the current partisan lineup in Washington.

And there are no complaints from investors in first mortgages, like the pension and retirement funds represented by the Association of Mortgage Investors. "We think with the right controls, something like this to allow a responsible, distressed homeowner to reorganize their assets, liabilities and cash flows is a very pro-business proposition," said Chris Katopis, the association's executive director. "We disagree with what the mortgage bankers associations are saying on this."

The law has been like this for years, bankruptcy lawyers say. It's just never been used as much because in the past there was usually enough equity in a home to cover the second mortgage.

"We're having great results" using the rule, said Brette Evans, a San Jose bankruptcy lawyer. In one recent case, a small-business owner was able to hang on to her home by setting aside a $240,000 second mortgage, she said.

That put the borrower in "a safe zone" where she could work out a modification of her first mortgage, Evans said.

Nonito Donaire and Robert Guerrero and Andre Ward are Three World-Champion Boxers Who Live in the Bay Area

They are husbands and friends and champions and victims of the business that pays their bills.

The same sport that provides their global athletic platform, and their relative wealth, also confines them to low-profile celebrities in the region they call home.

Nonito Donaire and Robert Guerrero and Andre Ward are three world-champion boxers who live in the Bay Area. Arguably the three best fighters among active Americans, they could be so much more. Clean-cut and photogenic, from three different ethnic groups, with engaging personalities, they look as if they were carefully selected from an old Benetton fashion billboard.

Were they golfers or auto racers or tennis stars of this stature, they certainly would be featured in local events as well as commercials in Northern California, if not the nation.

Yet their sport is too fractured and bound by red tape to assemble all three on a Bay Area stage -- even though each readily welcomes the idea.

"That's a dream. That would be sick," says Donaire, a 28-year-old Asian-American who grew up in San Leandro and now lives on the Peninsula.

"I really believe all three of us together would sell out any arena in the Bay Area -- guaranteed," says Guerrero, 28, a Mexican-American who was raised and continues to reside in Gilroy.

"Sign me up," says Ward, 27, an African-American who spent his childhood years in Oakland and Hayward but now lives in Dublin.

"Seriously, where do I sign? That would be an honor and a privilege. That's the kind of stuff you have to do."
It's the scenario Ward (23-0, 13 KOs) recently was considering at King's Gym in Oakland, promoting his World Boxing Council super middleweight title defense against Arthur Abraham -- a semifinal in the Super Six tournament -- next Saturday at Home Depot Center in Carson, to be televised by Showtime. 

Ward-Abraham may sell out the 8,000-seat HD Center. Guerrero's last bout, a 12-round demolition of Robert Katsidis on April 9 at MGM Grand in Las Vegas, drew a crowd of 7,100. Donaire's last fight, a sizzling second-round knockout of Fernando Montiel last February, drew 4,805 at Mandalay Bay Events Center in Las Vegas. 

Putting all three on a local megacard would bring out not only boxing junkies but others curious about this captivating and engaging trio.

Guerrero (29-1-1, 18), who last year vacated his super featherweight title before winning the World Boxing Organization InterContinental lightweight title, earned World Boxing Association and WBO lightweight belts with his win over Katsidis. 

Donaire (26-1, 18) earned WBC and WBO bantamweight belts -- his third championships in three divisions -- by stopping Montiel.

The Three Champs present a marvelous marketing opportunity, capable of selling local and regional products or filling local arenas -- if only they were members of a more cooperative sport.

But as boxing in the U.S. gasps for air, disparate forces can't seem to decide how best to administer the oxygen. The decline of boxing's once-broad popularity in this country surely can't be blamed on violence. Not when we obsess over football and when Mixed Martial Arts is one of our fastest-growing sports.

Boxing's nemesis is not its blood but its own inability to embrace the regulatory simplicity that would work to its benefit, if it were streamlined, with one sanctioning body, one league so to speak, instead of a confusing alphabet avalanche of IBFs and WBAs and WBCs and WBOs. 

And we would have local events featuring the Three Champs, generating multiple sellouts of Oakland's Oracle Arena and HP Pavilion in San Jose -- if not larger outdoor venues on each side of the bay.

But because boxing is so complex, much to its own detriment, we have yet to experience Guerrero, Donaire and Ward under one roof. And we may never, certainly not as long as they are represented by different promotional interests. 

Ward is promoted by Dan Goossen of Goossen-Tutor Promotions, Guerrero by Oscar De La Hoya's Golden Boy Promotions and Donaire by Bob Arum's Top Rank. Donaire's recent attempt to move to Golden Boy was halted by an arbitrator, putting the boxer in promotional limbo, between two men, Arum and de la Hoya, with a history of conflict.

"There are a lot of obstacles," Goossen concedes, citing competing networks (HBO and Showtime) as a factor. "But I know if there was any possibility to do something like that, I would be the person to pop the balloon."

Three local boxers, all defending their titles, all in front of a local crowd, is an intriguing concept. It would be an event unlike any other in Bay Area history.

"At the right time, hopefully sooner than later, maybe after this tournament is over, our promoters should sit down," Ward urges. "Maybe we as fighters should go to our promoters and see what can be done. I know Dan would be open to something like that.

"We could take it to San Francisco -- anywhere. To be on a card with those guys, that's a situation where I'd feel we're giving something back."

It also could make sense on a variety of levels, including financially and as a marketing vehicle for a sport that could use the help.

Boxing being subjected to the business of boxing, though, don't anticipate this. Even when this sport can visualize the long-term benefits, it can't suppress its cannibalistic nature.

Savory & Sweet Catering is Now An Approved Member of Green Guide Directory

Savory & Sweet Catering is now an approved member of Green Guide Directory. Today's brides are conscious of the environment and are becoming more interested in how they can have a wedding day that is as pleasing to the Earth as it is to her. Located in the San Francisco Bay Area, Savory & Sweet Catering can provide advice on an environmental-friendly wedding day, in addition to the all-around stellar job they provide for all their catered events.

"We believe that we owe it to the next generation to lead other businesses in an effort to use our resources wisely," said Leanne Pomellitto of Savory & Sweet Catering. "As a full-service catering company, we emphasize the use of china and silverware over disposable items, and use compostable items when paperware is necessary. Our facility practices efficient energy use. We have recycling containers and use biodegradable chemicals for all our kitchen and laundry cleaning."

Savory & Sweet Catering received a six leaf rating and have been a Green Certified business for over four years with the county of Santa Clara. They are recognized by a Congressional decree for their green business work ethic and have been honored with awards from the California Resources Board. Savory & Sweet Catering received the 2010 CA WRAP Award.

For more information about Savory& Sweet Catering, contact them by phone at 408-598-3197 or visit them at www.savoryandsweet.com.

About Savory & Sweet Catering
Enjoy delicious food and exceptional service from Savory & Sweet Catering. Savory & Sweet Catering, founded in 1993, provides outstanding catering services to the San Francisco Bay Area. They are a Certified Green Business and take great pride in delivering fantastic food and service while remaining environmentally sustainable. They work with their clients to develop a catering menu that feature locally grown organic ingredients wherever possible. Savory & Sweet Catering offers a wide range of catering options, including everything from summertime BBQ catering to formal wedding catering.

Either Stop the Cuts to Public Education or Watch California's Economy Die

A blunt message was delivered to five members of the state Senate budget committee Friday at the valley's Microsoft campus: Either stop the cuts to public education or watch California's economy die, taking with it the success of Silicon Valley and the rest of the Bay Area.

Those dire warnings came from a panel of high-profile Bay Area educators and business leaders, who spent three frustrating hours describing what a future without a well-educated, well-trained workforce would look like here.

If poorly educated citizens can't adapt to an increasingly competitive global marketplace, local companies will continue to hire a smarter workforce outside the United States -- and possibly relocate their operations as well, the speakers said.

"By 2025, California will have a shortage of 1 million college graduates," said Mohammad Qayoumi, incoming president of San Jose State. "A lot of companies in our region will have no choice but to leave because they won't find the level of employees and college graduates they are looking for."

Added Amir Mashkoori, CEO and chairman of the tech firm Kovio and a San Jose State alum: "This is something we will pay dearly for if we don't invest in human capital. You have to figure out what to do to survive in order to thrive."

Kim Polese, a prominent Silicon Valley executive and UC Berkeley alum, told the audience of about 60 who attended the event that "the rest of the world won't stand still. China has been studying the UC system very carefully, and they're replicating it "... UC has historically been able to attract the best students and faculty from all over the world, but that winning formula won't continue if we keep cutting."


Leaders from UC, CSU and community colleges talked about serving significantly more students than a decade ago but receiving less funding than they did then. And absent permanent solutions, they said, the deficits will persist for years.

"We've done a good job accepting the first round of cuts," UC President Mark Yudof told the committee, after detailing the loss of staff, courses and operations throughout the UC system. "But any more, and all bets are off."

Yudof and those speaking after him were referring to the pending showdown in the state Legislature that will either result in a compromise that will include revenue extensions to protect schools, public safety and local governments, or an "all-cuts" budget. 

In March, legislators agreed to about $11 billion in spending cuts and other reductions. But a $15.4 billion budget hole remains -- and if legislators cannot come to the table and agree to extend taxes, a worst-case scenario is likely.

The nonpartisan Legislative Analyst's Office says that will mean $4.5 billion in additional cuts to K-12 education, $847 million in additional cuts to the universities and $685 million in additional cuts to community colleges.

Senate budget committee Chairman Mark Leno, D-San Francisco, acknowledged the reality.

"We have a chronic structural imbalance of our budget, and there's a clear need for long-term solutions, or it will not get solved," he said.

Only five of the 16-member committee attended the session at Microsoft's Mountain View campus, but the majority were from the Bay Area.

In addition to Leno, Sen. Elaine Alquist, D-San Jose; Sen. Loni Hancock, D-Oakland; and Sen. Joe Simitian, D-Palo Alto, seemed to share the view that further cuts would be disastrous to public education.

"We all need to understand what the consequences are if we fail to get it solved," Simitian said after the session ended. "Bleak does not even begin to describe" the scenario if public education endures further cuts, he said.

But Sen. Bill Emmerson, R-Hemet, who listened patiently to the education leaders, dismissed many of their comments as hyperbole.

"This is Halloween in May," Emmerson said afterward. "This is just scare tactics."

Emmerson is one of the GOP 5 -- five Republican lawmakers who tried to bridge differences with Gov. Jerry Brown on GOP demands for a pension overhaul and spending caps, until talks fell apart in March.

And now, he said, with the state's tax revenues healthier than expected, schools will not be as threatened. 

Indeed, the state is running $2.5 billion ahead of earlier projections. But the governor's office says that will be little help in closing a $15.4 billion deficit.

State Finance Director Ana Matosantos said Friday that lawmakers and Brown also have to consider possible cost increases in areas such as education, health care and prisons.

Highway 50 Construction

Small towns along three Gold Country and Sierra highways will see traffic like they rarely would otherwise, when drivers from Sacramento and the Bay Area make the detour around Highway 50 construction to get to South Lake Tahoe.

The Caltrans project to repair the rock wall at Echo Summit will force the closure of Highway 50 through the Sierra starting May 11. Construction is expected to last at least two weeks, and the detour route takes drivers along Highways 16, 49 and 88 -- at least a 35 minute longer drive than the direct route through Placerville, Pollock Pines, and Twin Bridges.

A Caltrans TV commercial warns drivers of the detour, but also encourages them to enjoy the scenic drive along the way. For towns on the route, like Jackson, it is a rare opportunity to pull in an especially high volume of traffic and business.

"It's only happened once before, when Highway 50 was closed due to a slide," said Tom Trassare, a jewelry store owner in Jackson. "It brings a lot of extra people up here. It's a huge amount, really, but we spend a lot of money trying to get people to come up to our community, so this is kind of a free ride."

The Jackson Chamber of Commerce sent out an e-mail blast to area businesses, advising them to be ready for a much busier time in the month of May.

Choosing a Designer for Your Business Website

As part of its ongoing efforts to assist the Bay Area business community in effectively digital marketing of their products and services, Hearst Media Services Bay Area has released an article outlining tips for hiring a web designer to create their small-business website.

Hearst Media Services Bay Area has released the feature to assist small- and medium-sized businesses in their decision to hire a web designer or use software to create their own business site. The article details the steps business owners will go through in researching and interviewing designers.

"The design of your website is probably the first impression new customers have of your business when they're searching online for your type of products and services," said Kris Loberg, Director of Business Marketing for Hearst Media Services Bay Area. "Some business owners may have the time and skills to create their own website, but many others need some help and guidance. These helpful tips will get those business owners started."

Hearst Media Services Bay Area maintains an online library of articles written to help business owners understand an increasingly complex marketing world and get the most ROI on their marketing dollars. These articles are free and available to all businesses.

About Hearst Media Services/Bay Area
In addition to the vast resources of the San Francisco Chronicle and SFGate.com, Hearst Media Services Bay Area provides every thing from social media campaigns to search engine marketing to direct mail and e-mail advertising. Whether targeting customers based on behavior, demographics and geography or using the broad reach of Hearst Media Services products to reach 1.8 million Bay Area adults each week, advertisers can find all their marketing solutions in one, easy-to-implement source.