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All Star Lanes Mtg Oct 1 & LA Times Article

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  • asncalert
    From: gusto99@juno.com To: nelalist@yahoogroups.com MEETING ON PROPOSAL TO DEVELOP ALL STAR LANES BOWLING ALLEY SITE -- Tuesday, October 1, 2002 7:30 p.m.
    Message 1 of 1 , Sep 28, 2002
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      From: gusto99@...
      To: nelalist@yahoogroups.com

      MEETING ON PROPOSAL TO
      DEVELOP ALL STAR LANES BOWLING ALLEY SITE --

      Tuesday, October 1, 2002
      7:30 p.m.
      Eagle Rock Community Cultural Center
      2225 Colorado Boulevard in Eagle Rock

      Extra Space Storage proposes to demolish the All Star Lanes bowling
      alleyand apartment building at 4459 and 4465 Eagle Rock Boulevard
      here in EagleRock and build in their place a storage facility.
      TERA has invited representatives of the architectural firm and the
      companyto present their plan to the community so that community
      members can make aninformed decision regarding this proposal. The
      owner of the property has also been invited. The TERA Board has not
      thus far taken a position regarding this proposal.

      Anyone interested in this proposal is welcomed and strongly
      encouraged to attend:



      Parking is available on the street and at Bank of America.
      Refreshments
      will be served. TERA asks each attendee to contribute $2 to help
      cover our costs. All monies go to the Cultural Center. Thank you.
      Why does ALL STAR LANES have to be to demolished for storage area
      when there are tons of storage areas in LA, there is a glut in the
      market.!!!!! check the LA times article below...
      -G
      --------------------

      Storage Niche Overpacked Competition has forced some operators to
      trim rates. And now demand may be dropping.


      By JESUS SANCHEZ, TIMES STAFF WRITER
      2002 la times


      People stick all kinds of junk into self-storage centers. Now, many
      centers are becoming junk themselves.

      In an example straight out of Economics 101, supply is now
      outstripping demand in the self-storage industry, dragging down a
      business that once seemed practically recession-proof.

      In a humbling setback, Glendale-based Public Storage Inc. was forced
      earlier this year to roll back its prices after a sharp increase in
      2001 prompted customers to store their stuff in cheaper facilities
      being built by an ever-growing number of rivals.

      "Our timing was not very good," acknowledged Harvey Lenkin, president
      of Public Storage, the industry leader with about 1,500 locations
      nationwide. "We began to be impacted by our competitors offering
      incoming specials and discounts."

      Across the country, the number of storage facilities has shot up by
      more than 60% in the last decade to 35,176 properties, according to
      MiniCo Inc.'s Self-Storage Almanac. Officials at the publication said
      they had no figures for California specifically, but industry
      executives say the pace of growth in the state has been equally
      swift. There are about 6,000 storage centers statewide, with more
      than half of them in Southern California.

      Certain spots in Southern California are especially overbuilt.
      Construction of self- storage centers has surged in such places as
      north Orange County, the San Fernando Valley and the Inland Empire.
      And since storage centers draw from a fairly small geographic area,
      it doesn't take much to throw a market out of whack.

      In La Habra, for instance, the managers of a Shurgard Storage Inc.
      center must compete with a new A-1 Self Storage center, while a new
      Public Storage facility goes up just down the street.

      "The business environment is difficult," said Jim McNamee, regional
      vice president for Seattle-based Shurgard, the nation's second-
      largest self- storage provider. The company's facilities in Southern
      California, he added, "have certainly seen erosion in rates and
      occupancy over the past year."

      Traditionally, self-storage executives have bragged that their
      business was immune to the ups and downs of the economy. That's
      because demand seemed to be driven primarily by milestones in
      consumers' lives--new jobs, unemployment, divorce and births--that
      remained constant. But now, industry representatives say, there are
      even signs that besides supply shooting up too fast, demand may be
      slackening.

      For example, calls from potential customers to Public Storage and
      other companies began to decline at the end of last year as the
      booming housing market moved many families from apartments to more
      spacious homes. Industry executives estimate that self-storage
      occupancy rates in Southern California have dropped as much as 10%
      from year-ago levels.

      Despite the cutthroat environment, some insist that the right
      location can still make self-storage a lucrative business. In the
      rapidly growing Inland Empire, executives of real estate firm Empire
      Cos. said they had no qualms about nearly doubling its number of self-
      storage units. The occupancy rate remains above 95% even though the
      company has raised rents.

      "We like the business," said James Brooks, president of Empire's
      commercial real estate division. "It's a business of collecting
      rents."

      Meanwhile, the relative ease of building and operating self-storage
      centers and the entrepreneurial nature of the business--the top 100
      operators control less than 15% of the industry--continue to attract
      newcomers.

      It takes only about $3 million to $5 million to build a typical
      suburban storage center that--thanks to minimal construction and
      staffing costs--can break even if it is only 30% occupied, according
      to industry analysts. Owners of favorably located centers can reap
      rents on a per-square-foot basis that equal those of apartments but
      without the high maintenance and investment costs.

      Enticed by these fundamentals, many go into the business with big
      dreams, determined to become the next B. Wayne Hughes.

      Hughes, an industry pioneer and Public Storage co-founder, ranks as
      one of California's richest individuals, with a net worth estimated
      at about $1.6 billion. At this week's Inside Self Storage Expo, a
      large industry convention in Orlando, Fla., one of the seminars is
      titled "Who Wants to Be a Self-Storage Millionaire?"

      But too many would-be millionaires are clearly bad for the industry.

      "It's too easy to get into the business," said Irvine real estate
      investment manager Robert M. Campbell, whose CT Realty is investing
      in self-storage centers. "That gets everybody and their grandmother
      into self-storage."

      The difficult conditions have prompted some to become more cautious.
      For its part, Public Storage plans to add only about 35 new locations
      this year, which, the company notes, is a small increase over its
      existing portfolio.

      "We are going to play conservatively," said Lance Watkins, head of
      Storage Outlet, which operates a small chain in Southern
      California. "I'm ready to pass on certain sites to make sure we're
      building at the right locations. I think the yellow [warning] light
      is on and strong on overbuilding."
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