Protecting Project X

Written by Bakersfield Magazine

Mum’s the word when it comes to business in Kern County. We’re the James Bond of secret-keepers. Our lips are sealed tighter than a Go-Go’s song.

But there is a purpose to confidentiality, especially in the world of corporate relocation.

As the director for business development for Kern Economic Development Corporation (KEDC), Melinda Brown is in on the ground floor when corporations approach the county.

“These businesses, whatever industry they are in, are looking to expand or just relocate and they want to keep that information close to the chest.”

But why? What’s with all the hush-hush?

“There are numerous reasons for their secrecy,” Brown elaborated.

For starters, by announcing their prospective whereabouts, they’re giving a big heads-up to any competitors.

Another drawback to having people know you’re looking to relocate is that word could spread to current employees.

“Most companies are very adamant about not wanting to upset their staff until they know for sure that they will be relocating. It causes unnecessary stress on employees who begin to wonder if they’ll be forced to move or if they’ll be laid off. Often times, these companies are just looking at prospective locations,” Brown said. When the company is looking to simply expand, there is a little more disclosure, since new jobs are created.

So just how do these companies scout locations without being discovered? How can multi-million dollar proposals get passed from table to table with so much anonymity?

Well, the mystery is about to be solved. And we didn’t even need to bother Scotland Yard.

It all comes down to a name...a fake one.

“When I get an inquiry from a company about a possible project, I get very little information,” Brown said. “I don’t know the name of the company, their product, or their current location. I get just enough information to give them what they need.”

That information can be the size of the property this mysterious company needs, the land type required, or perhaps only the industry they’re in.

“Occasionally, I’ll know how many prospective workers they’ll need or how much capital investment they can spend.” That’s it.

“Often times, the more interest there is in a project, the less disclosure,” she said. So to make sure everyone is on the same page with what little information the KEDC has, Brown gives each project a name if it has not been given one by the company.

“As an example, Famous Footwear came to us as Project Blue. We didn’t know who they were until they had decided on Kern County as their location and the lease was signed.”

Now, since Famous Footwear is owned by Brown Shoe, one can only imagine they didn’t want to go by Project Shoe or Project Brown—that could be a dead giveaway.

“But Railex in Delano came to us as Railex. We knew we couldn’t go to investors with that information so I gave them the name Project Ice.”

The name makes sense in retrospect when you realize Railex’s business is the transportation of produce in refrigerated train cars. So Brown tries to find a link to the company and what they do when she picks her names.

“What little information we do have once we know the company or their industry is generally related to their project—so we come up with names as a way for us to remember internally. But outside of the KEDC, one wouldn’t be able to make the connection.”

For example, Project Labels was the name preceding Burlington Coat Factory’s opening.

Brown’s pièce de résistance, however, is Project Therapy—the code name for a large retail center that is currently in the works.

“I thought: retail...shopping...people shop as a form of therapy.” Simple as that.

So as these projects commence and the KEDC works to find them space to do business, confidentiality stays high on the priority list.

“Many companies make us sign confidentiality wavers before starting. They’re very concerned with information leaking. We’ve heard of other EDC’s losing projects because information was accidentally leaked. Companies will pull projects even if the location is a great fit.”

And why is that?

Here’s one way to look at it. If you’re Nike, you’ve got millions of dollars to spend on a new production factory. But do you want to spend millions of dollars if you don’t have to? Of course not. You’re thinking that if a broker knows you can spend that kind of green, they’ll raise the price. So you sneak in without revealing who you are and feel confident you aren’t being gouged because of your name.

No matter what type of company we’re talking about, big-names are no different—they want a good deal.

“And we give them that,” Brown stressed. “If it means we have little company information to work with, so be it.” Most brokers and building owners aren’t looking to rip companies off or discriminate against big-time corporations.

Time is also against these incognito companies. The longer a project is in the works, the more people have the opportunity to find out about it.

And while, thankfully, no one discovered the details behind the developments at Tejon Industrial Complex, Brown worked on that massive project for three years. So while there were news releases about major developments, new businesses joining the block, big names were never used.

But sometimes you know the name, you know the product, but it’s the details that are hush-hush. The buzz is that Grimmway Farms is doing some great things through their partnership with Cal Organics.

“They’re growing a variety of produce,” Brown explained of a five-acre greenhouse completed earlier this year. “Everything from organic tomatoes, cucumbers, and different types of peppers. And they can grow them year-round. The location was ultimately picked because of the weather we have here.”

Located in Cummings Valley, outside of Tehachapi, this greenhouse is a great resource for our community even if some of the particulars are being kept under wraps for now.

Despite all the big secrecy, Brown’s plate remains full. While recruiting businesses to Kern County, she is also in charge of the retention and expansion of the businesses that are here already, helping with marketing plans, and fostering relationships with site managers.

“Those are all important aspects of this work because we want our reputation to help bring business to the Valley. I continue to get contacted by companies looking to relocate or expand in Kern.”

At one point, Brown said she was getting a high volume of requests for information from companies all over the country. When the market was up, everyone was looking to expand, relocate, and grow.

“Most of them were just looking for information. Now, we get fewer calls, but they’re the quality calls. The calls with weight behind them. And those are the best kind.”

They’re businesses that are seriously considering setting up shop in our area—which means more jobs, more money, and more resources for us.

Kern County can give them what they need: space, quality workers, fair pricing, and—the most important need—secrecy.

So while Performance Food Groups is a name we recognize, Brown and the KEDC will remember it fondly with a different moniker.

“They’re a food distributor and one of their clients is Outback Steakhouse,” Brown explained, a sly smile on her face. “And we all know what one of Outback’s signature items is.”

Henceforth, to the secret agents staffing the KEDC, Performance Food Group’s relocation will always be known as Project Onion.

Article appeared in our 26-4 Issue - October 2009