The other part of California's success can be attributed to the smaller communities, the less well known areas like Glendale, Palmdale and the Inland Empire cities. Many of these markets throughout the state are bringing in their share of Corporate America as well, several of these areas are doing so by becoming "smart communities."

What exactly is a smart community? It is an area, ranging in size from a neighborhood to a multi-county region, that uses information and communication technologies to promote job creation, economic development and improved quality of life in communities.

California is, in fact, the single-largest producer of both hardware and software for the new knowledge-based economy, but it is also home to the "smart communities" concept. The California Institute for Smart Communities at San Diego State University is a program of the university's International Center for Communications, and it was launched in 1994. The goal for the institute was to deploy the smart community concept throughout the state of California.

Luckily, the plan has taken hold. Although software/IT is not all that's going on throughout many of California's smaller communities, it is helping transform many of them. Here's a look at a few of California's smart communities.

Anaheim Gives
Backbone to High-Tech Plans

The Anaheim community, just outside of Los Angeles, is one town that has taken the smart community concept to heart. In fact, it was the first U.S. city to offer fiber-optic access to its business community, according to Bart Hoffman, economic development manager for the city. Some years back, the Anaheim Public Utilities established a fiber-optic loop within the city, allowing city businesses access to high-speed Internet connectivity for voice, video, data and multimedia communications.

"As we enter the 21st century, the city of Anaheim continues to be recognized as the regional hub for economic activity in Orange County," says Hoffman. "Providing the combination of a skilled labor pool, a strong industrial base, the latest in telecommunications and a business-friendly community, Anaheim is rapidly realizing its vision of being a world-class, high-technology center."

Several high-tech firms agree, including M-Flex Electronix. Last year, M-Flex leased 62,000 sq. ft. (5,760 sq. m.) of space at 3140 E. Coronado Ave. in Anaheim as part of its expansion and relocation. The company manufactures flexible printed circuit cards.

As part of the area's high-tech offerings, Anaheim's Public Utilities provide reliable, cost-effective energy for high-demand customers. In fact, the company is rated one of the best electric utilities in Southern California, according to Hoffman.

"Anaheim also has a commitment to promoting and nurturing existing and potential technology clusters in the city," says Hoffman. "We're in close proximity to educational institutions and can provide access to a trained labor pool as well as a large number of suppliers catering to technology industries."

But high-tech jobs are not all that's happening in Anaheim. Several other companies are taking advantage of the city's manufacturing base and its commitment to help existing businesses expand.

Last year, Portobello America, a manufacturer and distributor of ceramic tile, relocated its corporate office and 15 corporate staff members to Anaheim. Portobello located to a new 68,000-sq.-ft. (6,317-sq.-m.) manufacturing/distribution facility at 1205 N. Miller St.

And Targus, the world's leading supplier of computer luggage, opened a new facility in Anaheim in June 1999. The site will serve as the company's headquarters as well as a manufacturing and distribution facility.

Glendale Takes
Hollywood High-Tech

On the northern outskirts of Los Angeles, the city of Glendale has blended two of California's best known industries: software/IT and film. If you've seen The Matrix, Dinosaurs or any other special effects blockbuster, then you know that Hollywood has gone high-tech, and Glendale has been a big winner in that evolution.

Such entertainment-related companies as ASI Entertainment, DreamWorks Animation Studios, Knowledge Adventure, Lumeni Productions, Sunset Post and Walt Disney Imagineering have put Glendale in the Tinseltown spotlight. In fact, these companies and others have made the entertainment industry Glendale's leading employer, says Philip Lanzafame, economic development administer with the city of Glendale.

Glendale has also found itself to be a nice home for many non-entertainment stars as well. The Disney Store, IHOP Corp., Public Storage, Nestle USA and CIGNA Healthcare of California are just a few of the names taking advantage of the city's tax-free environment. The city has created an environment that's very comforting for such big-name players, including the following: no business license fees and no gross receipt or long-distance telephone taxes. "Glendale also provides access to a large client base and a diverse labor pool," says Lanzafame.

Inland Empire:
A New Land
for the New Economy

The Inland Empire market, which includes San Bernardino and Riverside counties, may be one of the best examples of how communities are using technology to turn their economies around. The area was hard hit with defense cuts, but today, "the economy is being driven by advanced multimedia, biotechnology, Internet engineering, telecommunications and other forms of high technology," says Teri Ooms, president, Inland Empire Economic Partnership. "Growth in high tech now accounts for the fact that more than 3,000 regional firms are fully or partially high-tech in nature."

In fact, a recent survey by Ooms' group identified 16 high-tech industry clusters. Among those were computer systems design, software development, medical equipment manufacturing, plastics and semiconductor manufacturing. And during 1999, the region created 51,400 new jobs, a growth rate of 5.7 percent, with gains being posted in the businesses services, technology, film, retail, manufacturing and education fields.

The Inland Empire currently has three technical parks under development to help meet the demand for high-tech space. And it's available at a much lower rate than in neighboring Los Angeles and Orange counties. The industrial rate per foot in the Inland Empire is 33 cents, compared with the 45 cents in parts of Los Angeles County and as much as 60 cents in Orange County.

One high-tech winner in the Inland Empire market is the city of Ontario. In June, Ritek Corp. of Taipei, Taiwan, announced that its California-based joint venture partner, MRT Technology, will build a US$100 million, 300,000-sq.-ft. (27,871-sq.-m.)facility in Ontario. The expansion will add 300 employees to the company's optical disc manufacturing plant.

"Ontario's land, location, logistics, transportation and work-force advantages continue to attract a leading list of high-tech companies and manufacturers to our city," says Ontario City Manager Greg Devereaux. "MRT, for one, took all these factors into account and ultimately selected Ontario as the best possible site for this expansion."

Ebusinesses are also growing in Ontario. In the past year, such names as Etoys.com, ToysRus.com and Cooking.com have located operations in east Ontario, "making it a new hub of e-commerce and distribution," adds Devereaux.

"I think we're seeing dot.com companies choosing the area for its rail, truck and air service," says Paul Earnhart, executive vice president with the Ontario office of Lee & Associates.

In nearby Corona, another Inland Empire hotbed, economic development records continue to be broken. Construction numbers for the first quarter of 2000 were up to $120 million from 1999's first quarter tally of $80 million. Total construction value during the 12 months ended April 1, 2000, reached more than $500 million, the city's highest ever one-year period.

Since January 2000, Corona has seen development begin on seven new industrial buildings and four commercial properties. Much of this growth includes expansion of existing business as well as new business coming form other parts of California and from outside the state, says Nancy Martin, economic development coordinator for the city.

One such example is Watson Pharmaceuticals, the city's first billion-dollar company. Watson relocated to Corona with only 25 employees, and today it employs some 1,300 workers. Currently it's in the process of expanding its headquarters by 180,000 sq. ft. (16,723 sq. m.).

Space for growth is tight, however, and that has slowed the economy down some. "Corona lost upwards of 400,000 sq. ft. (37,161 sq. m.) of office users in 1998-1999 simply because space was not available," says Jim Bradley, economic development director for the city. But new space currently being constructed and planned will help alleviate this problem. New construction in the next year is expected to add 300,000 sq. ft. (27,871 sq. m.) of available space to the market.

Corona has also landed its share of high-tech companies. Among the most recent moves are Tamarack Scientific Co. and Programmed Composites.

And although construction is expected to slow after this year, says Bradley, Corona will continue to offer space to the high-end users. "Two major annexations south along I-15 will open up high-end industrial use as well as recreational business," he adds.

Visalia's Brings CIGNA Home

Another area that is making good use of its telecommunications network is Visalia, located in central California just southeast of Fresno. Like many markets throughout the country, the services industries continue to prosper, but these companies are finding it more difficult every day to find two essential elements for success: good telecommunications infrastructure and labor. Luckily, Visalia has both.

This past May, CIGNA Corp. relocated three offices and approximately 900 employees to Visalia. In an effort to consolidate operations, two offices in Visalia and one in Fresno will be located in a new 129,000-sq.-ft. (11,985-sq.-m.) office. The Visalia facility will serve as a regional claim and inquiry center for CIGNA HealthCare's National Service Organization (NSO).

The facility can accommodate a total occupancy of 1,200 employees, and CIGNA HealthCare NSO's open workspace standards are incorporated into the new location. The city's skilled labor was the big draw for CIGNA.

"CIGNA Corp. and CIGNA HealthCare are constantly reviewing the quality of labor and services to support its products globally," says Bob Hamilton, vice president of CIGNA Global Corporate Real Estate Services. "Our Visalia, Calif., location, as well as other CIGNA office locations in California, position the company to support its requirements for people, space and technology, which enables us to deliver our products and services more competitively. With this move, CIGNA also was able to eliminate operating redundancies such as duplicate mail operations, training areas, phone switches and LAN rooms." Palmdale Flying High with Aerospace

Although cuts in the defense industry hit several California communities hard in the late 80s and early 90s, Palmdale continues to do well with the industry. In fact, four of the city's top 10 employers are in the aerospace industry. Included among those is Lockheed Martin Aeronautics, the top employer in the region, with 5,500 workers. Northrop Grumman, with 3,100 workers; Boeing, with 1,585; and NASA Dryden Flight Research, with 1,500 workers, are also part of the area's strong aerospace industry.

Among the city's many attractions for the aerospace industry is the United States' Air Force Plant 42. Currently Lockheed Martin and Boeing are building prototypes of the Joint Strike Fighter at Plant 42 in hopes of winning a more than $300 billion defense contract for the new jet fighter.