San Bernardino article and a few questions for the candidates

SAN BERNARDINO, Calif. -- To most people, the interstate running through this far-flung suburb at the edge of the San Bernardino Mountains is just another congested California freeway. But to residents of this region at the center of the nation's housing bust, it might be a pathway to recovery.

The Inland Empire -- a vast swath of suburbia reaching into the desert east of Los Angeles -- is counting on an $800 million road project that will add lanes and reconfigure exit and entry ramps.

Road workers start construction along Interstate 215 in San Bernadino County, Calif., on Sept. 14. The project is getting $128 million in stimulus funds, making it the fourth-largest stimulus investment in a road project. The initiative is expected to directly employ 450 to 600 workers on construction sites for four years.
With a federal stimulus grant of $128 million, the San Bernardino project is the country's fourth-largest stimulus investment in a road project. Without the stimulus money, the Interstate 215 project would have been another victim of California's budget crisis. Other partially finished road projects have stalled as the state slashed its budget.

The project will test whether a dollop of government stimulus can make an impact in a region hit hard by the housing crisis and where more than half the home sales are foreclosures.

"It's probably just a drop in the bucket, but right now we're happy to take whatever we can get," said Nick DePasquale, president of Fairview Ford Lincoln Mercury in San Bernardino. His dealership ceded some land so construction could go forward. Sales at his dealership are down from about 300 cars a month before 2006 to about 100 sales a month now. "We're flat broke out here. We need it," he said.

The Inland Empire's decline is among the steepest in the nation. Since 2006, unemployment has risen to 13% from 4.9%. During the same time, the region lost about $30 billion in economic activity, according to John Husing, an economist who closely tracks the region.

For years, Riverside and San Bernardino counties, which are home to the Inland Empire, led California in population growth and home construction, as thousands of families escaping skyrocketing home prices in neighboring Los Angeles County swarmed into the region. The area became the backbone of California's international trade economy and developed into a major thoroughfare and warehousing district for goods coming out of the ports of Los Angeles and Long Beach.

The federal stimulus money will be put toward widening seven miles of I-215, a heavily used cargo and commuter corridor running through the city of San Bernardino. The project is expected to directly employ 450 to 600 workers on the construction site each year for four years, and pump hundreds of millions of dollars into the local economy.

"It's not going to solve all our problems, but it's a good shot in the arm," said Larry Sharp, chairman of the Inland Empire Economic Partnership and president of Arrowhead Credit Union. Mr. Sharp said the San Bernardino credit union has seen its assets shrink from $1 billion to about $860 million more recently as deposits drop and savings are depleted.

The stimulus investment could translate into about $380 million in economic activity for the region as construction workers spend on equipment, supplies and personal expenses like food and clothing, said Mr. Husing, the economist.

Still, the stimulus package is unlikely to make an immediate impact on the Inland Empire.

"In the short term, it'll barely be noticed," said Mr. Husing. "The problem is the size of the hole we're in. We need billions, not millions."

Mr. Husing said the real effect will be long term. The project will make the I-215 a more attractive route for trucks carrying port cargo to the rest of the country. Much of that cargo is unpacked and redistributed at warehouses across the region.

"When we get out of this recession one of the things that will happen is international trade will pick up again...that's a major driver of the Inland Empire," he said. "The most important effect of stimulus will be expanding the transportation system here for the movement of goods and people."

Lately, Mr. Husing said, there have been small signs of recovery. In Riverside County, 50% of homes that sold in August were in foreclosure. In January, 71% of sales were foreclosures.

Stimulus money has already made life brighter for Charles Ojuri, whose small construction firm was without work for seven months, until he was hired to clear trees around I-215.

Mr. Ojuri will use the money from his $780,000 contract to hire 10 workers, buy equipment for his company, and pay overdue bills.

He will also be able to do something he hasn't done for a long while: take his wife and four children out to eat.

"We've been frugal. Now we can get back to normal," said Mr. Ojuri, who lives in neighboring Los Angeles County and was recently hired on four other construction jobs funded by federal stimulus money. "We might even take a trip."

Ty wrote:

SAN BERNARDINO, Calif. -- To most people, the interstate running through this far-flung suburb at the edge of the San Bernardino Mountains is just another congested California freeway. But to residents of this region at the center of the nation's housing bust, it might be a pathway to recovery.

The Inland Empire -- a vast swath of suburbia reaching into the desert east of Los Angeles -- is counting on an $800 million road project that will add lanes and reconfigure exit and entry ramps.

Road workers start construction along Interstate 215 in San Bernadino County, Calif., on Sept. 14. The project is getting $128 million in stimulus funds, making it the fourth-largest stimulus investment in a road project. The initiative is expected to directly employ 450 to 600 workers on construction sites for four years.
With a federal stimulus grant of $128 million, the San Bernardino project is the country's fourth-largest stimulus investment in a road project. Without the stimulus money, the Interstate 215 project would have been another victim of California's budget crisis. Other partially finished road projects have stalled as the state slashed its budget.

The project will test whether a dollop of government stimulus can make an impact in a region hit hard by the housing crisis and where more than half the home sales are foreclosures.

"It's probably just a drop in the bucket, but right now we're happy to take whatever we can get," said Nick DePasquale, president of Fairview Ford Lincoln Mercury in San Bernardino. His dealership ceded some land so construction could go forward. Sales at his dealership are down from about 300 cars a month before 2006 to about 100 sales a month now. "We're flat broke out here. We need it," he said.

The Inland Empire's decline is among the steepest in the nation. Since 2006, unemployment has risen to 13% from 4.9%. During the same time, the region lost about $30 billion in economic activity, according to John Husing, an economist who closely tracks the region.

For years, Riverside and San Bernardino counties, which are home to the Inland Empire, led California in population growth and home construction, as thousands of families escaping skyrocketing home prices in neighboring Los Angeles County swarmed into the region. The area became the backbone of California's international trade economy and developed into a major thoroughfare and warehousing district for goods coming out of the ports of Los Angeles and Long Beach.

The federal stimulus money will be put toward widening seven miles of I-215, a heavily used cargo and commuter corridor running through the city of San Bernardino. The project is expected to directly employ 450 to 600 workers on the construction site each year for four years, and pump hundreds of millions of dollars into the local economy.

"It's not going to solve all our problems, but it's a good shot in the arm," said Larry Sharp, chairman of the Inland Empire Economic Partnership and president of Arrowhead Credit Union. Mr. Sharp said the San Bernardino credit union has seen its assets shrink from $1 billion to about $860 million more recently as deposits drop and savings are depleted.

The stimulus investment could translate into about $380 million in economic activity for the region as construction workers spend on equipment, supplies and personal expenses like food and clothing, said Mr. Husing, the economist.

Still, the stimulus package is unlikely to make an immediate impact on the Inland Empire.

"In the short term, it'll barely be noticed," said Mr. Husing. "The problem is the size of the hole we're in. We need billions, not millions."

Mr. Husing said the real effect will be long term. The project will make the I-215 a more attractive route for trucks carrying port cargo to the rest of the country. Much of that cargo is unpacked and redistributed at warehouses across the region.

"When we get out of this recession one of the things that will happen is international trade will pick up again...that's a major driver of the Inland Empire," he said. "The most important effect of stimulus will be expanding the transportation system here for the movement of goods and people."

Lately, Mr. Husing said, there have been small signs of recovery. In Riverside County, 50% of homes that sold in August were in foreclosure. In January, 71% of sales were foreclosures.

Stimulus money has already made life brighter for Charles Ojuri, whose small construction firm was without work for seven months, until he was hired to clear trees around I-215.

Mr. Ojuri will use the money from his $780,000 contract to hire 10 workers, buy equipment for his company, and pay overdue bills.

He will also be able to do something he hasn't done for a long while: take his wife and four children out to eat.

"We've been frugal. Now we can get back to normal," said Mr. Ojuri, who lives in neighboring Los Angeles County and was recently hired on four other construction jobs funded by federal stimulus money. "We might even take a trip."

Since our esteemed public officials regularly read and monitor the blog sites that concern our struggling city, I wonder if during this election cycle we might get some clear and concise answers in regard to the following questions.

First for Jim, Mayor or candidate Avilla, whoever has courage to acknowledge they have some knowledge of "IE Street Life," what do you plan to do about these facts?

1. California has one of the highest rates of foreclosure in the country, and regions that experienced the most significant population increases and new communities fared the worst, according to the report. Of the 20 metropolitan areas with the highest rates of foreclosure in the nation, 12 are in California. The top four are in California: Merced, Stockton, Modesto, and Riverside-San Bernardino-Ontario.

2. The Federal Reserve Bank of San Francisco estimates that each foreclosure is associated with a .9 percent decrease in value for all properties within an eighth of a mile and “the average municipal cost for each foreclosure is about $7,000.”

3. “Foreclosed properties which remain vacant without attention or maintenance can attract crime, pose safety hazards and further reduce neighborhood property values,” so what is the benefit of tearing down "crime infested, low cost housing units," to rebuild "low cost housing units," to the city or tax paying residents?