
AL
Asian Trade Center Is Planned in Adelanto
by
Gary Brodeur
Groundbreak.ing is set to begin
next month
on
a major trade center
in
Adelanto.
Da
Zhong
Hua
Wholesale Town
is
envisiOned as a
hub
of
international traffic where
manufacturers and exporters from
Pacific Rim countries can display
products
and
take wholesale orders
for shipment to the U.S. and Latin
American markets.
The trade complex
at
build-out will occupy
1.1 million-square-
feet
of
covered show-
rooms, offices
and
warehouses.
Eva Chan, finance director
of
Alhambra-based
Da
Zhong
Hua
International said the first
of
24 con-
crete tilt-up buildings will be erected
in March.
The
spokeswoman for the
import-export company
said
build-
ing permits have been granted by the
city
of
Adelanto and construction
contract awards will be made late
this month.
Company officials hope the first
building will be occupied about mid-
year. The trade complex at build-out
will occupy 1.1 million-square-feet
of
covered showrooms, offices and
warehouses.
City offic1als estimate the pro-
ject will bring in businesses that will
create up to 3,000 jobs within three
years. According to Adelanto
Building Official Tom Farris, the
figure for new jobs could reach as
high as 5,000, including expanded
truckmg, hotel, restaurant, and pro-
fessional support positions. Those
JObs
will help replace about 10,000
others lost
in
the Victor Valley due to
the closure
of
the former George Air
Force Base.
The proximity
of
that airfield,
being redeveloped
as
Southern
California International Airport,
IS
a
convenient and compelling reason
for
siting
the Da
Zhong
Hua
Wholesale Town where
11
is, Chan
said. The complex will be built on
50
acres along Adelanto Road, south
of
Air
Base Road. The location is
close to state and interstate high-
ways, rail lines, and trucking facili-
ties-including
the largest break-
bulk trucking terminal
in
the
Western United States, just a stone's
throw away.
Chan said a major press confer-
ence was held in the Great Peoples'
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Hall in Beijing, China, last
September
to
announce the Adelanto
project. The event was covered by
the national and regional Chinese
television and press. Reporters from
other Asian countries also attended
to hear Da Zhong Hua spokesmen
and a representative from the U.S.
trade mission
in
Beijmg d1scuss the
merits
of
trading with the U.S.
The company expects up to 430
manufacturers and distributors from
China, Hong Kong, Taiwan and
Macao to become tenants in the pro-
ject. Although Chan said
some
con-
tracts are
in
hand, she declined
to
identify particular companies. She
did
say
some will lease offices
in
the
Adelanto complex to find American-
made products to ship overseas.
The property was
called a treasure land
by a geomancer, a
diviner who special-
izes
in
geographic
interpretations.
Southern California International
Airport (SCIA) spokeswoman
Debbie Ream said that although
trade center representatives have not
yet contacted airport officials, dis-
cussions are underway with numer-
ous foreign import-export compa-
nies that have inquired about airbase
property and airfield services. The
airport's administrative body, the
Victor Valley Economic
Development Authority, seeks a fed-
eral free-trade zone designation that
will help support import and export
activities through the airfield. Ream
said the airfield
is
operational for
aircraft as large as a Boeing 747.
Da Zhong Hua principals were
referred to the Adelanto location by
friends and business associates who
recommended working with the city
because
of
its reputation for friendly
assistance in developing new busi-
ness and its low fee structures. The
property was called a "treasure land"
by a geomancer, a diviner who spe-
cializes in geographic interpreta-
tions.
The
geomancer
reportedly
said the land is blessed with a great
potential
of
wealth and
is
meant to
be used for commercial expansion,
especially by Chinese people.
Chan and the staff at Da Zhong
Hua International will help obtain
visas for prospective tenants and
coordinate aspects
of
their move.
The company will also provide doc-
ument translation, customs clear-
ance, tax and accounting services,
courier services, and legal consult-
ing. Groups
of
prospective tenants
have been in Adelanto to visit the
project site and surrounding areas,
Chan said. The city hosted company
officials and a delegation
of
business
people from Shaoxing, China, on
Jan
. 25. Newly-appointed City
Manager Mike Sakamoto said the
two cities' common interest in busi-
ness development may pave the way
for cultural exchanges.
San Bernardino
Schedules
Superblock Groundbreaking
With funding finalized for the
Superblock's new Caltrans Tower
and adjacent parking structure, site
preparation has now begun after five
years
of
planning. A $63,755,000
bond
issue for Phase I
of
the
Superblock development closed in
early January,
and
the State
Controller issued a
check
for
$4,271,000 to reimburse the
Economic Development Agency for
expenses incurred for
architectural/engineering design
and
preliminary site work.
The 12-story government office
tower and adjacent parking structure
will anchor a downtown redevelop-
ment site
on
"E"
Street north
of
Carousel Mall. About 1,000 state
workers
will
move
into
the
new
building when it is completed in 18
months.
Formal lease agreements were
finalized with the State Department
of
Transportation for the Caltrans
Headquarters to take up the majority
of
space in the 12-story office tower,
and also with the State Department
of
General Services to house other state
departments, including: Employment
and Housing, Consumer Affairs, the
Public Utilities Commission,
Industrial Relations, Health and
Welfare, Rehabilitation, the
Franchise Tax Board,
and
the
Employment Development Depart-
ment.
Official groundbreaking cere-
monies are scheduled for Feb. 8.
PRO
Cleaner
Burning
Gasoline
Means
Cleaner
Air
for
California
by John D. Dunlap I/1
Chairman,
Air
Resources Board
Californians will take part
in
one
of
the most important clean-air mea-
sures in the state's history this spring,
when the world's cleanest gasoline
arrives
at
service stations throughout
the state.
This "cleaner-burning" gasoline
is a milestone m California's continu-
ing effort to reduce air pollution.
It
evaporates less readily, contains fewer
smog-forming and toxic compounds,
and burns more completely than
before.
Cleaner-burning gasoline will
reduce emissions
of
smog-forming
compounds from motor vehicles by
approximately 15 percent.
It
also will
reduce human cancer risk from
exp<l"
sure to taxies
in
gasoline by 30 to 40
percent.
The reduced pollution will be
equivalent to removing 3.5 million
vehicles virtually overnight from
California's roads and highways
By June 1,
all
gasoline sold
in
California must meet the state's
cleaner-burning requirements.
Motonsts can use the gasoline in
exactly the same way as before.
It
will be available at the same octane
levels and varieties (regular, pre-
mium, etc.).
Why do
we
need cleaner-burning
gasoline? As Inland Empire residents
know, California still has a serious air
pollution problem. Human exposure
to unhealthy levels
of
ozone has been
cut in half
in
California since 1980,
but
we
remain vulnerable to the haz-
ards
of
air pollution.
Air pollution aggravates cardio-
vascular and respiratory illnesses,
damages the lungs, and contributes to
the development
of
diseases such as
bronchitis, emphysema and possibly
cancer.
Motor vehicles and off-road gas-
powered equipment are responsible
for about half
of
smog-forming pollu-
tants. In order to clean the air,
California must continue to reduce
emissions from motor vehicles.
Cleaner-burning
ga<;oline
simply
is any gasoline that meets the specifi-
cations set by the California
Air
Resources Board. There
is
no man-
dated formula. Individual oil compa-
nies can determine the specific formu-
lations
of
gasoline that they wish to
sell.
As
always, consumers will be
able to choose among the competing
brands
of
gasoline.
Oil refineries must begin produc-
ing cleaner-burning gasoline by
March
1.
Service stations can con-
tinue to sell their prior inventory
of
fuels until June 1, when all gasoline
sold
in
California must meet the
cleaner-burning specifications. Some
manufacturers have already begun to
produce and distribute cleaner-burn-
ing gasoline.
Cleaner-burning gasoline costs
refiners an average
of
six cents more
per gallon to produce than 1995
Southern California gasoline. The
actual production cost varies among
refiners.
It
is impossible to predict how
this higher production cost will affect
the retail price
of
gasoline. Many
other factors, including crude oil
prices and product supply and
demand affect gasoline prices. The
increased production cost will
be
one
additional factor that determines the
price
of
gasoline.
Economic analyses have shown
that cleaner-burning gasoline is as
cost-effective as other pollution-cut-
ting controls placed on motor vehicles
and industry.
Cleaner-burning gasoline is
expected on average to result
in
a 1
percent reduction in gas mileage. For
the average vehicle, this reduction
will be less than one-half mile per gal-
lon. Cleaner-burning gasoline has
been thoroughly tested and is
expected
to
perform the same as cur-
rent fuels. Major automakers endorse
its use
in
their vehicles.
In 1995, the Air Resources Board,
oil refiners, and automakers oversaw
a six -month test
of
the fuel and con-
cluded that vehicles performed as
well on cleaner-burning gasoline as
on current fuels. More than 800 older
and new vehicles were driven more
than five million miles on cleaner-
burning gasoline. The vehicles did
not develop any problems that could
be attributed to the gasoline.
Cleaner-burning gasoline repre-
sents the single biggest step that
California has taken to reduce air pol-
lution since the introduction
of
the
catalytic converter in 1975.
If
you
have any questions about cleaner-
burning gasoline, please call the Air
Resources Board toll-free at 800-922-
7349.
John D. Dunlap
is
a Rancho
Cucamonga resident.
He
has
chaired
the
Air
Resources Board
of
the
Califomw Environmental Protection
Agency since December 1994.
INlAND
EMPIRE
BUSINESS JOURNAL • PAGE 9
CON
Cleaner
Burning
Gasoline
Means
Higher
Prices
by Harold Johnson
Editorial Writer
Orange County Register
I'm
always grateful when gaso-
line service stations post the hidden
costs in the prices they're charging.
The Chevron station near my home
in
Orange County obligingly has a
s1gn
reading, "Our gasoline prices
include 18.4 cents
of
federal tax, 18
cents
of
state and local taxes, and
7.75 percent sales taxes."
Whew-all
that coughed up by
the motorist for every gallon
of
gas.
If
you have to commute any distance
on a regular basis (for instance,
if
you're one
of
the many Inland
Empire
residents
who
trek into
Orange County
to
work), this tribute
to the government can really add up.
And hold on to your wallet, because
another big hit
is
about to be added
to the pile
of
gas taxes.
That's
one very reasonable way
of
looking at the ballyhooed refor-
mulated gasoline that the state is
mandating all gasoline companies to
start selling, exclus1vely, over the
next few months. In a real sense, this
new gasoline amounts to another
gas-tax increase on Californians,
added
onto
a
series
of
sharp
increases
in
gas taxes that have been
imposed since 1989. Some analysts
estimate a 1 S-cent per gallon spurt
in the cost
of
a gallon
of
gas, when
the increased pump price is added to
the expected decrease in fuel effi-
ciency.
The upward pressure
on
pump
prices is a function
of
the big cost to
oil companies for transforming their
operations to meet the state dictate.
At
just
one refinery in Southern
California, the price tag for the nec-
essary changes is reported as at least
$600 million.
Meanwhile, the reduction in fuel
economy
has been
estimated
at
around 3 percent. And
if
you have an
older car,
be
prepared for higher
maintenance bills. In tests
of
refor-
mulated fuels on cars 15 years old
or
more, troubles with fuel pumps
and
fuel systems have been reported.
These new costs will most burden
people
who
are less well off, because
they're the ones, obviously, who are
likely to be driving older vehicles.
Indeed, let's remember that a
gasoline
tax-like
a sales
tax-is
a
regressive levy, falling heaviest
on
people at the lower rungs
of
the eco-
nomic ladder, because it gobbles
up
a larger proportion
of
their overall
mcomes. This is doubly true
in
high-
commuting
areas
such
as
San
Bernardino and Riverside Counties,
because many
of
the people who
make the long, congested trip from
the Inland Empire into
Orange
County for work do so because hous-
ing in Orange County is unafford-
able to them.
There is,
of
course, a pollution-
reduction benefit
in
the reformulated
gasoline, but while oxygenated fuels
yield less ozone, they also emit more
formaldehyde than current gasoline.
Formaldehyde IS hardly a perfume. It
is
a cancer-causing agent that also
forms smog.
At some
pomt-especially
m a
heavily taxed area such as Southern
California-some
cost-benefit con-
siderations ought to come into play.
When does it become simply unjust
to load new expenses on working
people for incremental anti-pollution
gains? There has already been an
improvement
in the quality
of
Southern California air spurred by
the gradual turnover and moderniza-
tion
of
the pool
of
automobiles.
It
may well be time to challenge the
o~odoxy
that sets very possibly
unattainable levels
of
pristine air in
these regions, which were known
even
to
indigenous peoples as val-
leys
of
smoke .
At the very least, let's call the
reformulated-fuel program what it
is-a
tax
increase-and
debate its
merits with an honest acknowledg-
ment
of
its cost
to
an already over-
taxed economy.
Don't miss the
Inland Empire
Economic
Forecast
Conference
Friday,
February
16
Riverside
Convention
Center
For
information,
call:
(909)
484-9765