Bay Area, Silicon Valley Investor Interest in Startups Cools

Silicon Valley and Bay Area investors are less likely to back a startup than in the past, according to a new survey by Morgan Stanley Wealth Management

About 38 percent of investors in the region said they put money into a startup in the past. But only 23 percent said they are interested in doing that now.

Despite that sentiment, technology is the most interesting investment for locals who took the survey, with 78 percent saying that is where they would put their money. That compares to 68 percent who like biotech and 66 percent who like the pharmaceutical sector. Bay Area respondents were far more enthusiastic in all of those areas than those from the U.S. as a whole.

Bay Area residents were less inclined to invest in energy (55 percent), though, than investors from the rest of the country (67 percent).

Many reasons were given by investors for their reluctance to invest in a start-up. The biggest reason was the most obvious, fear of losing money, which 73 percent cited. About a third (34 percent) cited potential legal difficulties. Another reason cited was hurting personal or family relationships (17 percent) and fear of personal failure (16 percent).

More than half (58 percent) said they prefer to invest as part of a group rather than going solo (16 percent).

The biggest investment concerns cited by locals were increased foreign conflicts (90 percent), the U.S. economy (87 percent), government deficits (86 percent) and the financial well-being of the state of California (84 percent).

The survey involved 1,000 investors across the country and about 305 from the Bay Area were interviewed. They were all over 25 and had more than $100,000 in investable assets. About a third had more than $1 million they could invest.

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Brussels Sprouts' Renaissance Alive in Bay Area

It's like a scene from a childhood nightmare. There are vast fields of Brussels sprouts, with workers tossing plants bearing dozens of them onto a harvesting machine. Little green balls pile up in bins by the thousands.

November is peak harvest season from Half Moon Bay to Watsonville, and the sprouts are in high demand. A remarkable transformation has occurred on this stretch of coast, considered ground zero for U.S. production of the vegetable: The sulfurous orbs that were once the bane of children's dinner plates have evolved into a prized fall treat.

The value of the local crop has skyrocketed in the past decade based in part, growers and distributors say, on a steady rise in the appetite for fresh Brussels sprouts. The pungent little cabbage is riding a wave of popularity thanks to culinary creativity, changing consumer habits and scientific research.

Scientific breeding

Half Moon Bay farmers John Giusti and David Lea once sold about 80 percent of their sprouts to the frozen market. But in the past decade the ratio has flipped, and they now sell that much or more of their crop fresh. Most of the sprouts are packed in Salinas and trucked east. The rest make their way to Bay Area grocery stores, farmers markets and restaurants.

"It's almost like a designer vegetable now, where they're very desirable," said Lea, who farms about 150 acres of sprouts. "Years ago, when we told people we were growing Brussels sprouts, people would say, 'Oh, no, they're so bitter!' "

Local farmers say the Brussels sprouts renaissance began about 20 years ago and more than 5,000 miles away. Scientists at agribusiness giant Syngenta's labs in the Netherlands began breeding different varieties in an attempt to mellow out the sprouts' acrid taste.

The program focused on compounds known as glucosinolates, said Peter van der Toorn, Syngenta's director of vegetable breeding. The substance is responsible for the bitterness of the sprouts but has also been studied for its possible role in preventing certain types of cancer.

"We have tried to design combinations of glucosinolates that give the health benefits of eating these vegetables while improving the taste," said Van der Toorn, adding the new varieties also have higher sugar levels.

Chefs picked up on the milder flavor and began experimenting with new preparations. Diners who had recoiled from the stench of mushy, overboiled sprouts as children were pleasantly surprised. TV food shows and culinary magazines began featuring innovative recipes.

Ideal conditions

Brussels sprouts farmers have also benefited from the culinary movement toward local, seasonal food. The vegetable has become a fall and winter staple in Bay Area restaurants.

Park Tavern in San Francisco serves Brussels sprout chips as an appetizer. Sam's Chowder House in Half Moon Bay roasts them with bacon and butter. The chefs at Hay Market in San Jose's Willow Glen neighborhood, where the menu changes daily, improvised several recipes last year.

"The big hit, oddly enough, was whipped potatoes with toasted Brussels sprouts," said executive chef Joe Cirone, who uses only California sprouts, eschewing the Mexican-grown sprouts that are available in the spring and summer.

Bocanova in Oakland's Jack London Square goes through as many as 20 to 30 pounds a day, according to executive chef John Ledbetter.

"I have about five side dishes on the menu," Ledbetter said, "and I sell Brussels sprouts more than anything else."

That appetite for fresh sprouts, along with the farmers' increased cost of doing business, helps explain crop reports showing the value of sprouts grown in San Mateo County has nearly doubled to $8.9 million since 2003 despite a slight drop in the number of acres being farmed.

The cool, foggy coast south of San Francisco provides ideal growing conditions. More than 90 percent of Brussels sprouts grown in the United States come from California, according to the U.S. Department of Agriculture, and most of the Golden State's sprouts are harvested in San Mateo, Santa Cruz and Monterey counties.

Half Moon Bay farmer Mike Iacopi, who sells Giuti and Lea's sprouts at local farmers markets, said the salt air gives the vegetables character.

"At night you get that salty dew," Iacopi said, "and it gets into the plant, it gets into the soil, it adds flavor."

Whether it's the salty air or her mother's persistence, 5-year-old Lorenne Langmade has bought into the Brussels sprouts phenomenon.

"I like it when my dad grills them," said Lorenne while shopping with her mother at Whole Foods Market in San Mateo.

Tera Langmade said her daughter's attitude is much better than her own as a child. She regarded them simply as gross. But when she came across sprouts in a grocery store a few years ago, she gave them another try.

"I'm still not fond of them if they're not cooked right," said Langmade, a vegetarian. "It's all about the cooking with a lot of vegetables."

Bay Area's Business Climate is Less Friendly to Startups than Other Parts of California, Says Study

Relatively expensive housing, coupled with the high cost of living and doing business in the Bay Area, has made the nine-county region less hospitable to new companies than other big urban centers in California, according to a study released Thursday that urges improvements in what it describes as this area's burdensome regulatory climate.

"You have to ease the regulations that people face when they want to launch a new venture," said Jon Haveman, chief economist with the Bay Area Council's Economic Institute, which produced the report. "If somebody is trying to start a small business and spend a small fortune on a new home, they will probably start that business elsewhere."

The Bay Area lags major rivals such as Los Angeles and San Diego in jobs created by startup companies, the study determined.

The strengths of the region are reflected in household income and other factors, the report stated. The region has increasingly specialized in high-value industries such as professional, scientific and technical services, along with information services and products.

"This not only supports new company formation locally, but also helps attract innovative young companies from elsewhere in the country and around the world to locate here," the report stated.

"Even though there are high costs in the Bay Area, this region still has a reputation for new business formations," added Scott Anderson, chief economist with San Francisco-based Bank of the West. "You have the visibility of the tech industry. A lot of venture capitalists. Silicon Valley is the heart of the U.S. technology sector."

The report also determined that the migration of businesses into -- or the defection from -- the Bay Area has relatively little impact on the region's job market.

On average, only 2.3 percent of new jobs created in the Bay Area in a given year is the result of companies that came from other parts of California, other states or other countries. Similarly, only 3.7 percent of the jobs that vanish in a year are the result of firms defecting from the Bay Area.

Instead, 55 percent of the new jobs created in the Bay Area every year result from companies that were already located in the Bay Area. And 66 percent of the job losses in a typical year come from companies that were already operating in the nine-county region.

"Instead of spending money on going to other states or countries, local leaders should spend that money to make the environment more hospitable to companies that are already here, to create a better atmosphere for the formation of startups and the survival and retention of new companies."

Bay Area Billionaires Join Giving Pledge

Mansions, yachts, personal jets - even private islands - can lose their charms over time.

Some billionaires seek cachet a different way: eradicating disease, bolstering public education, endowing museums and universities, preserving the environment, combatting poverty.

This week, that philosophy inspired another 11 super-wealthy American families, including three from the Bay Area, to commit to the Giving Pledge, a promise to give away at least half their fortunes to philanthropy or charity.

Started by Warren Buffett and Bill and Melinda Gates two years ago, the pledge now has collected John Hancocks from 92 American families, including such bold-faced names as Mark Zuckerberg, George Lucas, Ted Turner, Paul Allen, Michael Bloomberg and Larry Ellison.

In the Bay Area, the newest class of pledge-signers included three families who made fortunes co-founding technology companies: Intel's Gordon Moore and his wife, Betty; Netflix's Reed Hastings and his wife, Patty Quillin; and Symphony Technology's Romesh Wadhwani and his wife, Kathleen.

"In 2001 we devoted half of our wealth to create a foundation that would take risks in order to innovate and achieve meaningful results," the Moores wrote in a statement. "Nearly 12 years later we remain committed to creating positive outcomes for future generations, and we're focused on areas where we believe that we can make a difference: environmental conservation, patient care and science. We are pleased to be a part of the Giving Pledge not only because we are able to commit these funds, but because we believe they can lead to real learning and measurable change."

Gordon Moore made the Forbes list of the wealthiest people in the world, with a net worth of $4.9 billion.

Hastings and Quillin have focused their philanthropy on school reform. He served as president of the California Board of Education and advocates for charter schools.

"It's an honor to be able to try to help our community, our country and our planet through our philanthropy," they said in a statement. "We are thrilled to join with other fortunate people to pledge a majority of our assets to be invested in others. We hope through this community that we can learn as we go, and do our best to make a positive difference for many."

Wadhwani, who co-founded the Palo Alto private-equity firm Symphony Technology Group in 2002, has a charitable mission "to accelerate economic development in India and other emerging economies by creating jobs and developing skills," he said in a statement. Forbes lists his net worth as $2 billion.

Beyond generating more money for charities, the pledge aims to provoke national discussions about giving.

Pledge signers meet yearly to thrash out their philanthropic approaches and experiences. Those discussions have spurred much more collaboration among the group, Gates told the Wall Street Journal.

"Everybody is evolving in their giving," he said.

The other new pledge signatories and their companies and causes are Manoj Bhargava (5-hour Energy, Indian poverty); Charles Bronfman (Seagram Co., Birthright Israel); Dan and Jennifer Gilbert (Quicken, children's health); Peter Lewis (Progressive Insurance, marijuana legalization); Jonathan Nelson (Providence Equity, Brown University); Jorge and Darlene Perez (The Related Group, Miami Art Museum); Claire and Leonard Tow (New Century Holdings, health care); Albert Lee Ueltschi (FlightSafety International, Third-World blindness).

They join an exclusive group ranging in age from 28 to 97.

The Bay Area is amply represented among the group, with at least 16 families (including the three new signers) with strong local ties, including Zuckerberg, Ellison and Lucas, as well as Facebook co-founder Dustin Moskowitz.

Other local signers include venture capitalists John and Ann Doerr and Vinod and Neeru Khosla; asset manager Tom Steyer and his wife, Kat Taylor; World Savings founder Bernard Osher and his wife, Barbro; Banker Herb Sandler and his late wife, Marion; and Business Wire founder Lorry Lokey.

While they no longer live here, eBay's Jeff Skoll and Pierre and Pam Omidyar all took the pledge, as did Elon Musk of Tesla and PayPal.

"This new group brings extensive business and philanthropic experience that will enrich the conversation about how to make philanthropy as impactful as possible," Gates said in a statement. "Their thoughtfulness and deep commitment to philanthropy are an inspiration to me, and I'm sure to many others as well."

Putting Bay Area’s Water Source to a Vote

It is one of the oldest environmental battles in the United States, and it involves one of the country’s most famous national parks, one of its most liberal cities, leaders of Silicon Valley and a perennial source of conflict in California: water.

In 1913, Congress approved the construction of a dam and an eight-mile-long reservoir, called Hetch Hetchy, in the northwest corner of Yosemite National Park to supply cheap water to San Francisco.

But the Hetch Hetchy Reservoir, which submerged a valley that many have likened to Yosemite Valley in its grandeur and is credited with giving birth to the modern environmental movement, has lost none of its power to arouse strong emotions. In November, San Francisco will vote on a measure that could ultimately lead to the draining and restoration of Hetch Hetchy Valley — and force the city to look elsewhere for most of its water.

San Francisco’s mayor, Edwin M. Lee, has dismissed the measure as “stupid” and “insane.” But its supporters say that San Francisco can find other sources of water and that the valley’s restoration could have a positive impact not only in California but also across the nation and the world.

“It will say that decisions that cities made, based on what they knew a hundred years ago, can be revisited for the benefit of the environment,” said Mike Marshall, the executive director of Restore Hetch Hetchy, an environmental organization. “It will inspire restoration efforts across the country that are less visible.”

Restore Hetch Hetchy collected about 16,000 signatures from registered voters in San Francisco — far more than the 9,702 needed — to get the measure on the ballot on Nov. 6. If it is approved, the city would be required to spend $8 million to draw up plans for a new water system; that blueprint would be submitted to voters in 2016.

Opponents in San Francisco and the rest of the Bay Area, which also relies on the reservoir for its water, say that draining Hetch Hetchy will jeopardize the water supply for 2.6 million residents. Removing it, they say, will increase water rates and make the Bay Area’s water supply vulnerable to droughts. Unproven alternatives, they say, will require costly and less environmentally friendly filtering and pumping of water.

“It basically sends a signal to businesses that a basic necessity — water — is at risk, and it calls into question whether or not businesses would want to stay and invest here,” said Mike Mielke, the vice president for environmental policy at the Silicon Valley Leadership Group, an umbrella organization of 375 technology companies.

Other critics say that San Francisco voters alone will get to decide the fate of the reservoir, which is owned by San Francisco but also supplies water to three other counties in the San Francisco Regional Water System. Arthur Jensen, the chief executive of the Bay Area Water Supply and Conservation Agency, which represents municipalities outside San Francisco, said his members have no say in the Hetch Hetchy debate even though they pay two-thirds of the cost of operating and maintaining the system.

“We have a lot of skin in the game, but we don’t vote in the San Francisco election in November,” Mr. Jensen said.

One of nine reservoirs that store water destined for the Bay Area, Hetch Hetchy catches snowmelt and rain runoff from the High Sierra. The Hetch Hetchy system’s supporters say it has one of the smallest carbon footprints of any water system in the United States because its water is of such high quality that it requires no filtration and is delivered by gravity through 160 miles of pipelines and tunnels. The system currently provides about 85 percent of San Francisco’s water supply.

In 1913, despite a national outcry, Congress gave San Francisco — whose water system was damaged in the 1906 earthquake — the authority to create a water reservoir by damming the Tuolumne River here. Completed in 1923, the O’Shaughnessy Dam submerged Hetch Hetchy Valley, which was often compared to Yosemite Valley, about 17 miles south.

The naturalist John Muir, who fought the project, called Hetch Hetchy Valley, with its sheer granite walls and waterfalls, “one of nature’s rarest and most precious mountain temples.”

Over the decades, environmentalists have pressed for its restoration. The State of California has estimated that restoration, which would entail dismantling the dam and draining the reservoir, would cost $3 billion to $10 billion. Restore Hetch Hetchy puts the cost at $1 billion.

Officials in San Francisco, a city otherwise known for championing environmental causes, have been put on the defensive. High-profile Democrats, including Representative Nancy Pelosi, the House minority leader, and Senator Dianne Feinstein, both of whom are from San Francisco, oppose the measure.

Republicans have led calls to remove the Hetch Hetchy Reservoir. Representative Dan Lungren, a Republican whose district borders Yosemite, asked the Interior Department to investigate whether San Francisco had been turning to other sources, including recycled water, groundwater and rainwater, before using water from Hetch Hetchy, as required by a 1913 law. Brian Kaveney, a spokesman for Mr. Lungren, said the congressman had not yet received a reply from the department.

Michael Carlin, the deputy general manager of the San Francisco Public Utilities Commission, the agency that owns the Hetch Hetchy Reservoir, said that recycling and groundwater projects were currently under way.

Late Friday afternoon, half a dozen cars belonging to tourists were parked near the reservoir.

Jan Larson, who recently retired from her job as an elementary school teacher, and her husband, Craig, had decided to visit Yosemite for the first time. The Larsons, who live in Colorado, were sitting in folding chairs, nibbling on cheese and crackers, as they gazed out at O’Shaughnessy Dam.

Their visit, they said, had filled them with awe, but they also said they opposed the ballot measure, which they had heard about before coming here.

“If the dam weren’t already here, I would probably say, ‘Don’t build it,’ ” Ms. Larson said. “But it’s here, it works, it’s going to cost millions to replace it, and it’s going to take years to restore it to what it was like before. There are so many other wonderful areas in Yosemite. So to me, it’s like, leave it alone.”

Michelle and Harry Von Schmidt, a couple from New Jersey who were walking atop the dam, were split. Ms. Von Schmidt said she was “grateful for what had been preserved,” while her husband said he was “more inclined toward” those advocating restoration.

“I’ve seen before and after pictures, and it’s so pretty here in a way that’s hard to imagine,” Mr. Von Schmidt said. “I feel for John Muir, who tried for years to save it.”

The Bay Area Chamber of Commerce Wednesday Business Connection

The Bay Area Chamber of Commerce Wednesday Business Connection is back for its 2012-2013 season. On the Sept. 5 season kickoff for WBC, Tom Rumreich, long time local Salmon Trout Enhancement Program biologist will be featured. Tom will be talking about the STEP program’s successes both in development of the bay and river fishery and the educational value to Coos County school children. Additionally there will be information given regarding the Coos Basin Salmon Derby coming up Sept. 7-9.

The luncheons are open to all who are interested in attending, but are encouraged to contact the Chamber office at 541-266-0868 to ensure there is enough food prepared.

There are 5 minute presentation segments available for chamber businesses to introduce themselves and their products, prior to the featured presentation each week. Anyone interested in one of these spots must contact the Chamber at 541-266-0868.

Schedule

September
Wednesday, Sep 05, 11:30 am

Venue

The Mill Casino-Hotel, Salmon Room
3201 Tremont St.
North Bend

Cost 

This is a free event.

Contact Info

Bay Area Chamber of Commerce
541-266-0868

Bay Area Businesses Recognized for Bringing Job and Revenue Growth to Florida

While the economic recovery is slow, there are many bright spots in Tampa Bay. Telovations, along with two other Tampa companies, Bayshore Solutions and ReliaQuest, are recognized by The Florida Economic Gardening Institute (GrowFL) at the University of Central Florida as Florida Companies to Watch.

As announced by GrowFL, “Created by the Edward Lowe Foundation, Companies to Watch is an exclusive program that honors second-stage growth companies. Fifty second-stage companies from across the state of Florida were selected as ‘Companies to Watch’ for their impressive employment rates and revenue growth. Award winners were also selected for their entrepreneurial leadership, product innovation, social/community responsibility and competitive business practices.”

In total, nine of the 50 Florida Companies to Watch are from the greater Tampa Bay area. More than 425 companies were nominated for the award, with 140 moving to the final rounds before the 50 honorees were named.

Telovations is honored to be among the best of Tampa Bay and local businesses that are successful and growing.

According to GrowFL, “The combined impact of the 50 companies selected to this year’s Florida Companies to Watch is immense. In 2011 alone, the companies generated $355 million in total annual revenue, and held 1,576 full-time equivalent employees. The companies collectively created 350 net new jobs compared to the previous year. Between 2008 and the end of this year, these companies will generate $1.4 billion in revenue and add 1,297 employees (both in Florida and out of state), reflecting a 204 percent increase in revenue and 151 percent increase in jobs for the five-year period. In 2012 alone, that translates to a 35 percent annual revenue growth and 37 percent annual growth in employees.” (*Data compiled in August 2012.)

The 50 companies will be honored at an awards dinner and reception October 19, 2012 at the Rosen Shingle Creek Resort in Orlando, Florida. To register, visit florida.companiestowatch.org.

About Telovations:

 
Based in Tampa, FL, Telovations is a next-generation managed service provider pioneering the delivery of business communications in a Software-as-a-Service model referred to as “Communications-as-a-Service” or CaaS. CaaS from Telovations enables businesses to deploy communications devices and applications on a pay-as-you-go, as-needed basis thus eliminating the need for capital investment and ongoing overhead. Offering the latest communications technology coupled with a Quality of Service guarantee, Telovations provides businesses both flexibility and scalability that they might not otherwise afford. Telovations’ services offer a compelling alternative to traditional telecommunication services. For additional information about Telovations’ communication and collaboration solutions please visit www.telovations.com or call 1-877-934-6668.

About GrowFL:

 
Economic Gardening is a philosophy that embraces strategies to grow existing businesses in a community, region or state and is the basis for the entrepreneurship programs at the Florida Economic Gardening Institute (GrowFL). Initially created in 2009 as a pilot program, GrowFL, at the University of Central Florida, is now a critical component to Florida’s entrepreneurial ecosystem and the state’s overall economic development strategy. GrowFL focuses its efforts on initiatives that strengthen the service offerings of entrepreneurial support organizations throughout Florida and by delivering critical research and strategy support to help second-stage growth entrepreneurs prosper. GrowFL has helped more than 400 companies create more than 1,400 new jobs statewide since 2009. Website: www.growfl.com

Calif Refinery Fire will Boost Gas Prices

Smoke pours from a fire at the Chevron Richmond Refinery, seen behind Alcatraz Island in San Francisco

Analysts say a fire at one of the country’s biggest oil refineries will contribute to higher prices at the pump on the West Coast.

The fire at the Chevron refinery in Richmond, about 10 miles northeast of San Francisco, broke out Monday evening.

It sent plumes of black smoke over the San Francisco Bay area and sent scores of people to hospitals with breathing problems before it was out the following morning.

Tom Kloza, chief oil analyst at Oil Price Information Service, says Chevron’s refinery is big and important to the market.

With inventories of gasoline in the region already low compared with the rest of the country, Kloza says pump prices in California and elsewhere on the West Coast will soon average more than $4 per gallon.

24 Hour Fitness, Healthy Chain, For Sale

A pedestrian walks by a 24 Hour Fitness center on July 31, 2012 in San Francisco, California. 24 Hour Fitness, the nation's largest privately held fitness center chain, is up for sale and could fetch as much as $2 billion. 

What started out in the Bay Area as a single gym in San Leandro 29 years ago and grew to be one of the world's biggest fitness chains is up for sale.

24 Hour Fitness, headquartered in San Ramon, is being put on the auction block by its owner, New York private equity firm Forstmann Little, with a price tag reportedly in the $2 billion range.

"We are working with our board of directors and Forstmann Little to pursue strategic alternatives for the company. Goldman Sachs has been engaged to provide strategic counsel as we start this process," the company said Wednesday.

It would not disclose numbers, but the $2 billion shouldn't be too hard to attain, given that the company has more than 419 outlets in the United States and Asia, including 60 in the Bay Area and Northern California, and is a veritable cash machine.

Founded by Mark Mastrov, a Castro Valley native, 24 Hour Fitness has 3.8 million members and a 22,000-strong workforce, and brings in more than $1 billion annual revenue.

Team of celebrity partners

Mastrov also recruited a number of celebrity partners, including Magic Johnson, Lance Armstrong, Andre Agassi, Madonna, Jackie Chan and a younger Arnold Schwarzenegger. For 10 seasons, contestants on "The Biggest Loser" got the services of 24 Hour Fitness personal trainers as part of a deal Matrov negotiated with NBC.

The company has sponsorship arrangements with the International Olympic Committee and Team USA's men's and women's basketball Olympians. The Bay Area's volleyball golden girl, Kerri Walsh, is one of three Team USA athletes partnering with 24 Hour Fitness to produce workout videos on YouTube.

Mastrov sold the company to Forstmann Little in 2005 for $1.68 billion, with some regret. "This is my baby," he said at the time.

In 2008, he started another business in the Bay Area, New Evolution Fitness, a private equity firm investing in health and fitness enterprises. They include a planned chain ofHard Candy Fitness centers fronted by Madonna, of which there are currently three - in Mexico City, Moscow and Santiago, Chile.

"Madonna's touch will be everywhere," Mastrov said in 2010.

He's certainly in the right business. According to IBISWorld, a market research company in Los Angeles, the U.S. fitness industry, which includes yoga studios, boxing clubs and DVD and online sporting apparel sales, is expected to total $45 billion in 2012. Despite the recession, gym memberships have grown by more than 1 million to 25.3 million since 2007.

"Over the next five years, increased youth and Baby Boomer memberships will bolster the industry's revenue," said company analyst Dale Schmidt.

Investor closing shop

So why is Forstmann Little selling? Calls and e-mails to the firm went unanswered Wednesday, but simply put, it's part of the firm's going-out-of-business sale since founderTed Forstmann died in November. The firm's one remaining major holding, the global sports and media company IMG, will be gone when Forstmann's fund formally closes up shop, probably within the next two years.

"For more than seven years, 24 Hour Fitness has greatly benefited from the sound counsel and ownership of Forstmann Little & Co.," said 24 Hour CEO Carl Liebert.

"Our management team remains focused on serving our members and executing on the fundamentals that have allowed us to have a successful 2012."

Olympics: Two Bay Area Women Help Power U.S. Eight Boat into Rowing Final

Two Bay Area athletes helped the U.S. women's eight crew to victory in its opening race Sunday, setting up a finals showdown with Canada in what shapes up as one of the top events of the Olympic regatta.

Cal grad Erin Cafaro of Modesto and Stanford product Elle Logan contributed to the Americans' winning time of 6 minutes, 14.68 seconds on Dorney Lake. Runnerup Australia was more than six seconds behind.

The U.S. team is unbeaten the past six years. Cafaro and Logan both rowed in the Americans' 2008 Olympic gold medal boat.

In Thursday's final, the Americans will duel powerful Canada, which won the other opening race in 6:13.91.

"It was a strong first race," American rower Taylor Ritzel said. "It's always nice to finally just feel the race ... and get a race under our belts. Can't wait for the final now." Canada, which lost by three hundredths of a second to the U.S. in a recent World Cup regatta in Lucerne, Switzerland, finished nearly a length ahead of Romania in a slightly quicker time of 6:13.91 in the second heat. That was the final race of the day, ending just before thunder and lightning rumbled over the course.

"It's going to come down to the last stroke," U.S. coxswain Mary Whittle said.

Elsewhere, Lafayette's Anthony Fahden and the U.S. men's lightweight four boat won its repechage race in 6:00.86 to advance to Tuesday's semifinal.

Livermore native Julie Nichols and partner Kristin Hedstrom placed third in their first-round heat of the women's lightweight double sculls and will try to stay alive in a repechage race on Tuesday. Hedstrom and Nichols, a Cal grad and PhD student at UCLA, crossed in 7:08.46.

Olympic and world champion Britain made a timely return to form in the men's lightweight double sculls to seal a morale-boosting victory against rival New Zealand in the heats.

Mark Hunter and Zac Purchase started the year as one of the host nation's leading gold-medal hopes but appeared to lack fitness. They slumped to disappointing sixth-place finishes in the last two World Cup events, in Lucerne and Munich.

Wells Fargo Insurance Names Bob Volkel Head of Bay Area Operations

Continuing to expand its leadership team and invest in resources to better serve its Bay Area customers, Wells Fargo Insurance(1) - part of Wells Fargo & Company WFC -0.63% - has appointed Bob Volkel to lead its Bay Area operations. In his role, Volkel will lead the Insurance Brokerage and Consulting sales and service teams who offer a wide array of products, services and consulting in the areas of employee benefits, and property and casualty insurance. He will manage the San Francisco, Santa Clara, San Carlos, Scotts Valley and Walnut Creek offices across the Bay Area. Volkel will be based in San Carlos and report to Rich Lane, Regional Managing Director for Wells Fargo Insurance's Northwest Region.

"The Bay Area is an extremely important market for Wells Fargo Insurance and we will continue to invest in the resources and talent to best serve our customers," said Lane. "As we continue to enhance our business structure, we anticipate job growth that will create some outstanding career opportunities for a number of talented insurance professionals, both within and outside of Wells Fargo Insurance."

"We are committed to growing our team and investing in strong talent like Bob who will support our continued growth in the region and within the industry as a whole," added Lane. "Being part of Wells Fargo provides us with a tremendous market advantage that simply doesn't exist elsewhere."

"I'm thrilled to have the opportunity to lead our Bay Area team," said Volkel. "We have a tremendous number of talented, customer-focused team members who will continue to address our customers' insurance needs and support our future growth in this very important market."

Prior to his new role, Volkel was co-head of the national practice for Wells Fargo Insurance's Executive Benefits and Retirement Plan Services. Before joining Wells Fargo, he was Executive Vice President and leader of the Employee Benefits Division of ABD Insurance and Financial Services.

Ranked the 5th largest broker in the world and part of Wells Fargo & Company, Wells Fargo Insurance has an unparalleled level of financial stability and depth of resources to serve both the financial and insurance needs of its customers. For more information on career opportunities with Wells Fargo Insurance, visit https://employment.wellsfargo.com

About Wells Fargo Insurance

Wells Fargo Insurance(1)is the fifth largest insurance broker in the world. With 160 offices in 36 states, Wells Fargo Insurance provides solutions for a wide range of customers, including retail consumers, high net worth individuals, small businesses, as well as middle market and large corporate customers. The 7,200 insurance professionals of Wells Fargo Insurance write $20 billion of risk premiums annually in property, casualty, benefits, international, personal lines and life products.

About Wells Fargo

Wells Fargo & Company WFC -0.63% is a nationwide, diversified, community-based financial services company with $1.3 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com), and has offices in more than 35 countries to support the bank's customers who conduct business in the global economy. With approximately 265,000 full-time equivalent team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 26 on Fortune's 2012 rankings of America's largest corporations. Wells Fargo's vision is to satisfy all our customers' financial needs and help them succeed financially.

McClurg Capital Corporation Selected For "Largest Securities Firms In The Bay Area"

McClurg Capital Corporation of San Rafael, CA has been honored with a recognition by San Francisco Business Times in its selection of "Largest Securities Firms In The Bay Area."

Announcing a special recognition appearing in the July, 2012 issue of San Francisco Business Times published by American City Business Journals. McClurg Capital Corporation was selected for the following honor:

"Largest Securities Firms In The Bay Area"

A spokesperson from McClurg Capital Corporation commented on the recognition: "This is quite an honor for us. The fact that San Francisco Business Times included McClurg Capital Corporation in its selection of 'Largest Securities Firms In The Bay Area,' signals that our constant efforts towards business excellence are paying off. We are proud to be included in this recognition."

About McClurg Capital Corporation: a short profile by and about the honoree:

According to David McClurg, the firm's founder, "The best financial plan is to make more money for our client. Many financial advisors sell a complex plan rather than superior investment performance. And performance is the more important of the two. The planning process by itself is not productive unless it is profitably implemented. McClurg Capital does both and that is what has made us grow."

Following the publication of McClurg Capital Corporation's selection for San Francisco Business Times's Largest Securities Firms In The Bay Area list, American Registry seconded the honor and added McClurg Capital Corporation to the "Registry of Business Excellence(TM)". An exclusive recognition plaque, shown here, has been designed to commemorate this honor.

For more information on McClurg Capital Corporation, located in San Rafael, CA please call 415-472-1445, or visit www.mcclurgcapital.com .

This press release was written by American Registry, LLC with contributions from McClurg Capital Corporation on behalf of McClurg Capital Corporation and was distributed by PR Newswire, a subsidiary of UBM plc.

American Registry, LLC is an independent company that serves businesses and professionals such as McClurg Capital Corporation who have been recognized for excellence. American Registry offers news releases, plaques and The Registry(TM), an online listing of over 2 million significant business and professional recognitions. Search The Registry(TM) at http://www.americanregistry.com .

Contact Info: McClurg Capital Corporation Phone: 415-472-1445Email Address: invest@mcclurgcapital.com

Tampa Bay Area 'Business for Sale' Q2 Data Trends

If you want to buy a business in Tampa, the current median asking price is exactly $180,000. That’s down from a year ago, at the end of Q2 2011, when the median asking price for businesses in Tampa was $184,000.

But the sales potential of the businesses for sale is up. Q2 listed businesses in the Tampa area had median revenue of $312,000, up from $307,538 at this same time last year.

Those are some of the latest findings from BizBuySell.com of Q2 data on what small businesses are selling for in Tampa Bay. The data is based on 685 Tampa-area businesses listed at BizBuySell.com.

The median cash flow — the money that comes out of the business over the course of a year — is $80,000, versus median cash flow of $78,710 last year. Also, business owners in the Tampa Bay area will typically ask for, on average, a revenue multiple of .82 (changed from .94 year over year) and a cash flow multiple of 3.03 (changed from 3.29 year over year).

Listings in local datasets include businesses listed by local brokers, as well as "for sale by owner" listings that have been listed by the business owner without the assistance of a business broker. That data is used to generate local statistics because there is an adequate sample size for local listings, whereas there may be fewer closed transactions reported to BizBuySell.com for any given local area, the company said in a statement prepared for the Tampa Bay Business Journal.

On actual sales, BizBuySell analyzed 66 closed transactions in this market in Q2. Businesses sold for a median sale price of $99,000. On average, this is 0.85 of the asking price, the data shows. These businesses had median revenue of $261,206 and a median cash flow of $64,316. Business buyers paid on average 0.50 times revenue and 2.26 times cash flow.

Showcasing Tampa's Appeal, Potential

At long last, the wait is over. It's been more than two years since the Tampa Bay area was selected to host the 2012 the Republican National Convention.

Today, the Forum and the Tampa Convention Center are being ceded to the exclusive control of the Tampa Bay Host Committee and the Committee on Arrangements to begin the build out and other preparations to lower the opening gavel for the convention less than 50 days from now.

In parallel to the build out and other logistics, the host committee is continuing to promote and highlight the Tampa Bay area and work to ensure the convention is a phenomenal success in August.

In addition to fundraising and working the logistics, the host committee has been working diligently to showcase the Tampa Bay region from an economic development perspective.

Recently, the committee announced it is developing an economic development series in conjunction with Bloomberg, L.P. The series, which will be held during the week of the convention, will promote the Tampa Bay area and Florida as an optimum location for business, investment, recruitment and innovation, among other things.

This economic development series is the first of its kind in the history of a presidential nominating convention and will break new ground. You will be hearing and seeing more about this initiative in the coming weeks. I believe it will become a model for future host cities to replicate.

Having lived here nearly all my life, I know that Tampa and Florida have numerous key benefits for business, including, a favorable tax climate, a relatively low cost of living, dynamic research facilities and excellent weather.

I believe that any individual or company looking for a new locale in which to do business will no doubt discover that the Tampa Bay area has a great quality of life and will provide an excellent return on investment from a variety of perspectives.

As a result of the Republican National Convention, we have the once-in-a-lifetime opportunity to market and promote the Tampa Bay-area business community like never before. Florida is home to 16 Fortune 500 companies, one-quarter of which are based in the region.

In fact, the region is home to nearly two dozen companies that each generates more than a billion dollars a year in revenue. All in all, more than 175,000 businesses call the Tampa Bay area "home." In addition, the Tampa Bay-Central Florida combined super region has a gross domestic product of roughly $272 billion, making it the ninth largest economy in the United States.

These are all little known facts that we intend to disseminate to the diverse global audience that will be visiting our great cities next month. Highlighting the Tampa Bay area's small business community has been and continues to be one of the host committee's top priorities.

Earlier this year, registration for the Host Committee's Small Business Network opened to the public. As part of the small business network, businesses that registered in our local area were automatically approved to be featured in our Small Business Network Directory, which was published in May. The directory has been distributed to delegations from around the United States, state-based as well as national corporations and the global media; it is also available online at the host committee's website, www.2012tampa.com.

The directory will help visitors utilize our local small businesses before, during and after the convention.

The committee is committed to doing everything it can to foster economic development for the area and Florida. We are taking deliberate, thoughtful and unprecedented steps to promote the region and the state as a business powerhouse.

We are focused on showcasing the region and the Sunshine State as both a tourist destination and a business destination. On behalf of the 2012 Tampa Bay Host Committee, I look forward to continuing our efforts for the next 42 days leading up to this historic convention.

I know we will succeed in demonstrating to the world that Tampa is one of the best cities in America and, come August, it will no longer be such a secret. The wait is over. Our time to showcase the Tampa Bay area is right now.

Experts Say Bay Area Likely to Remain a Jobs Engine Despite U.S. Slowdown

The Bay Area -- powered by robust hiring in the South Bay and the San Francisco region -- is likely to remain an employment engine despite nationwide jobs trends that increasingly have turned ominous.

"What the Bay Area produces is what is hot in the economy today," said Christopher Thornberg, an economist with Beacon Economics. "Business investments are doing well. Technology is doing great."

Some regions of the Bay Area are likely to outperform others, though, with tech-heavy areas in the lead.

"The South Bay and the San Francisco and Peninsula areas will likely outpace the nation and do well this year," said Jon Haveman, chief economist with the Bay Area Council's Economic Institute. "The East Bay and the North Bay are more likely to track at the national pace."

In the most recent 12 months for which statistics are available, the Bay Area has outpaced the nation in job growth. Bay Area payroll jobs have increased by 2.4 percent, while the United States is up 1.4 percent. The South Bay has the fastest job growth of any region in the nation, with a 3.4 percent increase.

The San Francisco-San Mateo-Marin region is up 3.1 percent in payroll jobs, while the East Bay is up 0.9 percent.

But the pace of Bay Area job growth has begun to slow. Over the first five months of this year, area employers added about 8,500 jobs a month, a steep decline from the average 10,400 jobs added monthly in the final five months of 2011.

"At some point, what is happening nationally could become a drag on the Bay Area," Haveman said.

In two weeks, state officials will release the June jobs report for California, including the Bay Area and other metro regions. Despite the recent slowdown in the pace of job creation, Thornberg said the Bay Area is unlikely to suffer actual job losses in the foreseeable future.

"We see no pervasive threats to the job growth we have been seeing in the region," he said.

Bay Area community banks expand in Wine Country

Rodeno joins Bank of Marin's (NASDAQ: BMRC) 12-member board. During her 40 year career, she was one of the wine industry's few female CEOs, heading St. Supery Winery.

She also has bank board experience, serving for 10 years as a director at Silicon Valley Bank , (NASDAQ: SIVB) which is an active lender to the wine industry.

"Michaela's leadership skills and significant management and board experience will be of great value, particularly as we continue to expand in Napa and Sonoma counties and build our wine and wine-related portfolio, which is one of our highest priorities," saidJoel Sklar, chairman of Bank of Marin.

Last month Bank of Marin expanded its Wine Country lending team with the hiring ofMatthew Bartlett as a commercial lender in Napa. The $1.4 billion bank made a big push into Wine Country with its February 2011 acquisition of Napa-based Charter Oak Bank in an FDIC-assisted deal.

Wine Country banking is highly competitive. Walnut Creek's Bay Commercial Bank (OTCBB: BCML) is also expanding in the market, going up against Bank of America , (NYSE: BAC) Wells Fargo (NYSE: WFC) and several community banks in the market.

Bank of Marin President and CEO Russell Colombo says the bank's lending in Napa Valley focuses on wineries and related businesses, but avoids agricultural financing of land and vines.

"Ag lending is a real speciality with several variables, including mother nature," Colombo said.

Also expanding in Wine Country is Richmond-based Mechanics Bank , (OTCBB: MCBH) the Bay Area's largest community bank with $3 billion in assets.

Mechanics Bank plans to open its second Napa branch in a prominent location. The bank also has a branch in St. Helena.

Bay Area Executives Cautious on Hiring

Bay Area employers are cautious about hiring, have modest optimism for economic growth over the next six months and give the regional economy higher marks than the national economy, a new survey shows.

The Bay Area Council’s confidence index -- the number that distills the overall survey findings -- slipped to 61 from 66. But the indicator continues a favorable outlook.

“It’s economic whack a mole,” said Jim Wunderman, CEO of the Bay Area Council, a business-backed policy group that represents approximately 275 of the largest employers in the region.

Download a copy of the survey here.

“There were strong signals earlier this year that the economy might finally be turning a corner and getting ready for a sustained period of increasing growth,” Wunderman said. “But the progress has been frustratingly slow and uneven.”

The responses to the Bay Area Council survey came from 426 CEOs, top executives and economic development officials in the nine Bay Area counties surveyed between May 11 and June 5.

The survey showed that 31 percent of executives plan to increase hiring over the next six months. And 13 percent plan workforce reductions.

Slightly more than half of executives -- 53 percent -- said they will stand pat with hiring over the next six months.

About two-thirds of those surveyed said Bay Area economic conditions are better than six months ago and 59 percent expect economic conditions will continue to improve over the next six months.

South San Francisco Furniture Dealer Offers Summer Savings On Recliners

After almost 80 years of operation in the home furnishings business, Giorgi Bros. in South San Franciso, CA has become a household name. The business stocks one of the largest selections of middle and upper-end furnishings in the greater San Francisco Bay area, including bedroom furniture, kids furniture, living room furniture, and dining room furniture. The family-owned operation boasts a 50,000 square foot main showroom and 2,500 square foot clearance center across the street. This summer, the store is pleased to announce a limited-time sale on Stressless brand Sunrise recliners in select colors, offering customers $300 off regular prices.

Additionally, customers who purchase any new Stressless recliner and ottoman will receive a free recliner accessory - either a personal table, swing table, or ellipse table is available. The furnishings and accessories are offered in a variety of matching colors. Giorgi Bros. encourages customers to act fast, since the offer ends on July 8th of this year.

Though the Sunrise variety is the only Stressless brand piece currently on sale, the store also stocks the Magic, Taurus, Vegas, Kensington, and Vision lines in their showroom. Giorgi Bros. prides themselves on stocking an assortment of famous brand-name pieces, and always pricing them at an honest value. The store treats every customer like family, with no haggling necessary to achieve what the company calls "The Best Price First." The business has remained one of San Francisco's top rated furniture dealers since the doors opened in 1933, and the Giorgi family attributes this success to personal customer service.

Standing firm despite changing styles and customer expectations, owner Tom Giorgistresses the company's reliance on personal, friendly customer interactions at all times. No matter what color, price range, or features customers require, Giorgi Bros. aims to make the furniture shopping and buying experience stress-free and comprehensive. Exploring the models on display in their enormous showroom is an adventure in itself, but this large collection of different prices and styles is unmistakable proof of the company's third-generation family values.

About the company: 

The latest styles are always changing, but exceptional customer service stays constant atGiorgi Bros. Furniture Showrooms. In business since 1933 they are one of the San Francisco Bay Area's top rated Furniture Stores. Their enormous 50,000 square foot showroom, conveniently located in South San Francisco, displays one of the largest selections of middle to upper end furnishings in the San Francisco Bay Area. Giorgi Bros. is a third generation family owned and operated business. The values of no haggle - "The Best Price First" and service that treats every customer like family have been the foundation for nearly eighty years of success. For more information visit their website at http://www.giorgibros.com.

East Palo Alto Business District Plan Must 'Get it Right,' Report Says

East Palo Alto's planned 4 Corners/Ravenswood Business District is the last area the city can develop to create jobs and revenue and improve the quality of life for its residents. And the city has to "get it right" because there is no other major commercial area to develop, a new study by the Washington, D.C.-based Urban Land Institute has found.

The city commissioned the 35-page study, which was released on June 12, as part of a review of its Specific Plan, a document intended to guide planning and development. The plan will be finalized and presented along with an Environmental Impact Report to the East Palo Alto City Council for adoption in July.

The 4 Corners/Ravenswood Business District plan calls for 835 residential units, 1.2 million square feet of office space, 351,820 square feet of research-and-development/industrial space, 112,400 square feet of retail, 61,000 square feet for community activities, 30 acres of parkland and 4.5 miles of trails.

The so-called development scenario was adopted by the council on March 1, 2011.

When implemented the plan could change East Palo Alto's appearance, attractiveness and usefulness to the community significantly, the study found. It envisions a walkable downtown along Bay Road starting at University Avenue and moving toward the baylands.

The city currently doesn't have a downtown, and the goal is to create a downtown area where the community can meet, eat and shop. Ground-floor development would have retail, with residences above. A park and community center would anchor the downtown in the area known as 4 Corners.

A major employment area would be developed in the area bounded by Bay Road, Pulgas Road and Weeks Street. Potential jobs -- 4,851 of them -- could help reduce the city's 17.5 percent unemployment rate. About half the new jobs would be suitable for people with no more than a high school diploma. 

But there is no guarantee regarding how many jobs residents would get.

"It is impossible to know with any certainty how many East Palo Alto residents would be employed in the RBC/4Corners area. The order in which development will occur will vary depending on the market. ... Also, when unemployment is high many people accept jobs for which they are over qualified," the report noted.

The report also noted a discrepancy between a 2010 Bay Area Economics (BAE) market study and one done in 2009 for the Specific Plan.

The development-scenario study identified a projected net demand for office space at 1.2 million square feet. But the 2010 study found only a projected 201,650 square feet between 2010 and 2030.

The first market-demand study projected a 351,820-square-feet demand for industrial and research space, but the 2010 study identified that sector as stronger for East Palo Alto, estimating 609,425 square feet. Projected retail demand was triple in the 2010 study what it was in the 2009 report.

The Urban Land Institute study attributed the discrepancies to the way the Association of Bay Area Governments (ABAG) projects employment demand. The ABAG studies are highly accurate for larger, more established cities with multiple commercial areas, the report noted. But East Palo Alto is a relatively new city with radically changing land uses.

While having many pluses, including the redevelopment of Cooley Landing and an improving commercial real estate market, the project also faces significant challenges.

The 130 acres of parcels have 56 separate owners; 52 percent are smaller than 1 acre. The multitude of owners makes it exceedingly difficult to create a cohesive whole, since each landowner has a different timeline or expectation for development. Many are managing businesses on their properties, the report noted.

The area also lacks sufficient infrastructure and water supply. East Palo Alto already exceeds its annual San Francisco Public Utilities Commission (SFPUC) water allocation. The city receives approximately 80 percent of its water from SFPUC. The problem is citywide and affects all new major development. The city is exploring purchasing a water allocation, potential groundwater supply and conservation.

The area will require a $75 million investment in roadway, storm drain, sewer and other infrastructure, and the cost of additional water is not included in that sum, the report noted.

Elimination of the city's redevelopment agency has also significantly limited its ability to implement the plan. Prior to its demise due to state budget cuts, the redevelopment agency could have granted up to $12 million for infrastructure and community benefits. Agency funds provided the necessary local match for other public funding.

That loss "is magnified because every $1 in agency funds leveraged $2 to $5 in local, regional, state and federal funds," the report noted.

The study did not identify any specific potential financing sources, but it identified broad categories for potential funding and what the city should develop first to attract private investment.

Potential funding could include federal, state, regional and local funds and private resources, including an assessment district, a community-facilities district or impact fees. The city will work on an impact-fee study in the fall of 2012.

The report recommended three key strategies for the project:

• The first would be designing "place creating" improvements such as parks, Cooley Landing and open space in the next few years. These would create an attractive environment for investment and improve residents' quality of life.

• The second would design and complete road and infrastructure improvements along Bay Road. It is unlikely that private investors will invest millions in office or research and development projects with Bay Road in its current condition, the authors noted.

• The third recommendation suggests pursuing development on "catalyst" sites that are in optimal locations and have an attractive size that would attract private and public investment. The sites include the vacant site at Bay Road and University Avenue, the former Romic Environmental Technologies property and the Bay/Clark/Weeks/Pulgas block.

Although the redevelopment is a 25-year vision, the plan would be dependent on staffing, capital investments and the ability to attract public, private and philanthropic money. But significant improvements could occur in the next five to seven years -- mainly in road and utility infrastructure and community facilities, parks and trails.

The city could expect an annual fiscal increase of $2.3 million from the project, the study found.