Could a major trade center be coming to the Sacramento area within the next few years? There are some rumblings within other Valley media that a project named "The California International Trade Center" may be in the works. It may be part of the "Metro Air Park" proposal near Sacramento International Airport, or possibly in another location. Plans look to be similar to a major convention center, with a huge hotel, exhibit hall, and businesses employing 9000-20000 people. This is a project to be built with the support of a Sacramento business group and the Chinese government.

In an odd editorial in the Sacramento Bee a couple of weeks ago, the Bee gave support to a very vague description of what is to be a trade center. The Bee would only say that it might not happen, but if it did, it would be as big for the Sacramento economy as the techonlogical businesses (Oracle, Apple, Intel) that set up shop in the 1990's. The project was said to be a way for the Chinese government to expand trade with the United States in a city that is not only the Capitol of California, but already a growing market for China. The August 2005 edition of the California International Business Report says the Chinese are looking to establish a place they can convince American investors to do business with China.

Besides the Metro Air Park location, the Center may be built in the Arden area near the Capitol City Freeway, or in downtown Sacramento. Construction costs are expected to be near $900 million. Check back later to ValleyVue for updates on this developing story.

Tuesday night the Sacramento Monarchs won the WNBA Championship in game four of a best of five Finals series over the Connecticut Sun. While this is not one of the "big four" professional sports in the United States, it is a major accomplishment for a Valley team. ESPN 2 analysts and WNBA proponents all pointed out that this is the first professional basketball championship in the history of Sacramento.

This is true, but it is not the first professional sports championship for Sacramento. The Sacramento Capitals have been very successful over the years in World Team Tennis. The Sacramento Rivercats have won the Pacific Coast League championship. The semi-pro women's football team Sacramento Sirens have won their league's championship. The Sacramento Surge won the World Bowl the year before the World Football League reorganized into NFL Europe.

Still, there is little question that the WNBA is a legitimate sports league. OK, there is a little, but not as far as ValleyVue is concerned. The WNBA is the number one professional sports league for women, and Sacramento is now the champion.

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UC Davis Football Beats Stanford in Palo Alto

There is another major sporting accomplishment that occurred this week involving a Valley sports team. On Saturday, UC Davis, a college that is in the process of going from the NCAA's Division II to Division IAA, beat Division IA Stanford of the Pac-10 in football. Stanford is definitely in an off-year, but that should not take away from the accomplishment of UCD. NCAA football is decidedly on the decline in the Valley. UC Davis, Sacramento State, and Fresno State are the only Valley schools fielding teams, all at Division I.

How can any blog that attempts to cover development in California not mention Walmart? There is no need to describe this company, as I am sure most readers would know about it. Walmart is the largest company in the world. Moreover, Walmart intends to get bigger.

Walmart has often been in the news of towns large and small throughout California. Often criticized for providing low paying jobs and monopolizing prices that drive smaller companies out of business, Walmart fights back with statements about the high numbers of jobs it creates and its strong consumer support. As a function of the free market system, Walmart buys in such high bulk that it can afford to sell products for prices some stores might acquire them for wholesale. Also as a function of capitalism, Walmart's low, low incomes don't necessarily attract the best and the brightest from among the retail industry. Through attrition, though, Walmart will eventually cause other area businesses to close, forcing some retail workers to accept lower paying jobs to compete with or work for Walmart. This is why Unions are against the company.

As for development issues, Walmart has often been prevented from building its huge stores in many communities. These cities have rejected the store not only for the sake of existing businesses, but also because of Walmart's insistence on placing its aesthetically boring "big box" in a specific spot. Walmart has often refused to consider other locations. As this has occurred in California as well as other states, Walmart has recently started making exceptions in the design of its new stores, in order to take on the "look" of the adopted town. Englewood voted against an initiative Walmart started to have a store built in that town. Sacramento is currently considering ways to fight a Walmart proposal to establish a store in the city's downtown mall.

Now Walmart has taken it's business presence to a new level. Last year, Walmart shut down a store in Stockton only to build one of the state's first "Super" Walmart across the street. Super Walmarts contain grocery aisles, as well as the products normally seen in Walmarts. This has created a lot of fear and fights from unions, who have created high paying, professional jobs in the grocery industry. Super Walmarts are likely to cause many current grocery stores to go out of business. Walmart currently has seven super stores in California, but plans more stores soon. They are currently building in Citrus Heights, and are planning an Elk Grove store.

There are pluses and minuses to Walmart's continuing expansion of operations. The Central Valley's income levels are already below levels paid in other areas of the state. It does not seem advantageous for Valley towns to create more low paying jobs at the expense of higher existing grocery incomes. However, it is highly likely Walmart will look to the Valley first. The Valley has lower land prices, larger undeveloped flat land spots, and a less organized work force (than along the coast). Another thought: the Valley still relies heavily on agriculture. Walmart's buying clout, especially as it gains a higher share of the nation's grocery industry, may result in the fall of comodity prices. (Maybe we should encourage Walmart to get into the gas station business!) Think about these issues the next time you pick up a case of "Sam's Choice" soda.

UC Merced recently officially started classes. Officially started teaching. Started having lunch breaks taking advantage of nearby restaurants. Started having hotel stays by parent dropping off freshmen.

There are big expectations for UC Merced. Definitely, the expectations are beyond the simple direct economic benefit of having 10-20 thousand students and thousands of staff in the area. Some people are expecting it to be the economic savior of the Central Valley. There is an expectation that the University of California's presence south of San Francisco and north of Santa Cruz will be an engine of development for the valley, which is poorest region in the state. UCs Davis and Riverside are the only other UCs away from the coast. The hope is that it attracts businesses, scientists, technology, and the usual suspects who usually throng to a large state research institution. Oddly enough, supporters of the new school have not mentioned other necessities for colleges, like liquor stores and bars, low cost apartments, and Laundromats.

Furthermore, a lengthier benefit of having the UC is to have a higher educated populace in the Fresno area. The theory is that alumni will settle in the area, or at least be more likely to start businesses there. The hope of the developers in nearby farmland is to be able to quickly develop nearby parcels of land.

Will Merced be like Davis, and severely restrict growth? My belief is that they will not. There is too much pressure from the growing population in the state, as well as a sense that the University is to be used to drive the economy of Merced, rather than to focus on academic ideas of environmentalism and heritage preservation. This may all change with the staff and students who attend the school. Not all of them will be from the nearby counties, and will desire all of the amenities they are accustomed to having in their home towns in the Bay Area or Los Angeles.

How will this affect other valley schools? I don't think it will do much for a while, other than give some students another choice for grad school. Fresno State will probably be even more drained of area students with high academic potential. UC Davis and Pacific most likely would be more affected with added competition to their grad programs. This is especially true for Davis, which, as a UC, will have to distinguish itself. For the time being, though, Merced will have the burden of establishing itself to attract scholars.

The good thing about a UC is that they often feel they must uphold a high standard. Students must be academically focused. Professors must do research. As they have this attitude, they will most likely adopt that which justifies the attitude. Fresno State must always compare itself, often by simply acknowledging that they are not a UC, and therefore have lower standards. The comparison is not always fair or true (Compare UC Santa Cruz to Cal Poly), but attitude is very important as it becomes a school's identity. Students are buying into that identity.

UC Merced will no doubt become the economic force it is designed to be. However, the most important benefit of this new UC is for the state to add opportunities to a burgeoning incoming freshman class.