Late July saw the opening of a new $60- million, 810,000- sq.- ft. (75,249- sq.- m.) distribution center in the Stanislaus County city of Patterson by publicly owned Longs Drug Stores Corp. The story of how it got there involves a reverse 1031, Mello- Roos evaluation and a community hungry to enter a new sector.
   Built by Clayco under the guidance of Atlanta- based project developer and owner rep The Walker Companies, the project will allow Longs to immediately begin self- distributing 57 percent of front- end merchandise to all mainland stores. When construction began in August 2005, the company self- distributed only 40 percent, leaving the rest to be done by wholesalers.
   "We are making progress on our goal to self- distribute 80 percent of our front end merchandise by the end of calendar 2007," said Warren F. Bryant, chairman, president and CEO. "Strengthening our direct links with consumer product manufacturers and distributors should contribute to the continued progress we plan to make on improving our profitability long term."
   Longs is now moving its distribution workload from an existing 427,000- sq.- ft. (39,668- sq.- m.) facility in nearby Lathrop, which will be closed. The company also operates a 350,000- sq.- ft (32,515- sq.- m.) DC in southern California and a 48,000- sq.- ft. (4,459- sq.- m.) facility in Hawaii.
   Phyllis Proffer, spokesperson for Longs Drug Stores Corp., says the supply chain improvements comprise one of five broad strategic initiatives the company is pursuing to be more competitive and more profitable, following on the successful progress of a new supply chain system implementation (Longs now uses Retek) and centralized merchandising and promotion.
   "The Paterson facility has been designed for self- distribution, with piece- pick capabilities rather than pallets and cases," says Proffer. "We can ship six bottles of mouthwash and four mascara to a store rather than cases. Lathrop and southern California do not have those capabilities. We are not going to go beyond 40- percent self- distribution [at those locations] until we redesign or do a whole new facility. Now that the Patterson facility is open, it's self- distributing to all of our mainland stories. We'll migrate the workload from Lathrop to Patterson, and Patterson will be the distribution center for all of Northern California and self- distribute to all stores."
   Proffer says the move from third party distributors, combined with the new supply chain system, means better cost of goods, better control of inventory and therefore a better in- stock position. She also says the community of Patterson has been wonderful, as has Keystone, the owner of the Keystone Pacific Business Park. Perhaps most gratifying, however, has been the response of the labor force, many of whom are resigned to long work commutes.
   "When we had our job fair for this Patterson facility, we had a wonderful response," says Proffer. "People were looking forward to having a local employer rather than having a long commute."
 

Capital Region Home to Nation's Fastest- Growing Large City    Elk Grove, Calif., had the nation's fastest growth rate among large cities (100,000 or more population) between July 1, 2004, and July 1, 2005, according to new U.S. Census Bureau population estimates. Located south of Sacramento, Elk Grove is a relatively new city, having incorporated less than six years ago. Elk Grove's population increased 12 percent during the period, to 112,338.    In Sacramento proper, as the graph below demonstrates, company population growth has fed job growth at a steady pace. One of the most recently completed projects is the 200,000- sq.- ft. (18,580- sq.- m.) corporate headquarters for The Golden 1 Credit Union, built by McCarthy Building Companies.