Minutes from October 16, 2012 Open Meeting-Hillwood update

Tuesday, October 16, 2012  

Open Board of Directors Meeting

San Bernardino Community College District

 114 S. Del Rosa Drive San Bernardino, CA 92408


Present: Deborah Barmack, Peter Barmack, Tom Brickley, Erin Brinker, Ann Bryan, Ken Coate, Bill Easley, Mark Kaenel, Lowell King, Ed Lasak, Temetry Lindsey, Neil Macready, John Magness, John Mirau, Tom Nightingale, Bev Powell, Kristine Scott, Larry Sharp, Paul Shimoff, Steve von Rajcs, Phil Waller, Stan Weisser, A.J. Wilson and Ray Wolfe.

Guests:  Ron Freemont, Sue McKee, Mayor Pat Morris and Jim Morris. 

Announcements:  1) Reminder-The 50th Anniversary reception event will be on Thursday, October 18, 2012 from 5:30-7:30p.m. at the San Bernardino International Airport in Hanger 763.  2) Larry Sharp reported that he represented Inland Action at the Greater Riverside Chamber of Commerce Roundtable discussion with the new California Secretary of Business Transportation and Housing and summarized the issues discussed.   3) Appreciation was expressed to Inland Action on behalf of Tim White, Chancellor of the University of California,  for its continued support for the University of California, Riverside Medical School.                                                                                                                           

A.J. Wilson introduced John Magness, Senior Vice President, Hillwood Investments. 

Hillwood Investments is a private company owned by Ross Perot Jr.  They have over 200 Associates and are ranked the number 1 developer in Southern California by the Business Press.  The National Real Estate Investor ranks Hillwood as a #4 Industrial Developer in U.S.  Their current holdings in the U.S. include approximately 20 million square feet of industrial and office buildings, 3,000 acres of industrial land (30M sq. ft. of potential build-out), 20,000 acres of investment land.  They have approx. 1,000 acres in the Inland Empire. 

Hillwood in the Inland Empire

Hillwood was named as master developer for the former base land in November of 2002.  Their stated goals for redevelopment of the land (rebranded Alliance California) were:

1)   Change the landscape

2)   Increase tax base

3)   Bring jobs back to the former base and community   

Private investment for Alliance California totals $701.3 million which includes some $250 million invested by Stater Bros.  Removal and abatement of antiquated buildings, ground clean up, and new construction have changed the look of the former base to new contemporary structures with modern landscaping.  In addition to the base reuse of which 2/3 is complete, there are an additional 250 projects off the base that have been developed.   

The projected tax base is now $750 million annually with companies like Mattel, Kohl’s, Pep Boys, Stater Bros, Pepsi/Quaker, Amazon.com and others.   

The combined regular employment at these facilities total over 6,000 jobs (not including the airport).  The construction positions have added another 2,000 jobs in our area.   

Additional community benefits to-date

  • •          From new investment at Alliance California $18,920,000 fee revenues to the City over and above normal taxes
  • •          Direct payments to the City Schools $4,410,000 (over and above normal school taxes)
  • •          Economic Multiplier Effect of $701.3M in private investment (RIMS II economic model): $1,753,250,000 

The Amazon Fulfillment center opened on October 1, 2012 and consists of 951,666 sq. ft.  The facility is currently hiring some 1000 positions and will likely grow.  Fullfillment Centers are described as industrial work space characterized by:

–      Material handling/automation usually greater than value of the building

–      More cars less trucks

–      High employment

–      Long term leases

–      Point of Sale 

Hillwood currently has 3.1M sq. ft. of industrial space under construction with active projects in 5 Inland Empire cities.  Seven industrial buildings are under construction and they are purchasing an additional 100 plus acres this year.

 A Q & A period followed.

 Meeting adjourned 8:30 a.m.