Future Promises Risks, Rewards for Businesses

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Future Promises Risks, Rewards for Businesses
Presidency of Trump

1) DEVELOPMENT SETBACK?: One of the most immediate and potentially impactful changes to the L.A. business – and physical – landscape in 2017 could be the March ballot initiative that many fear would delay or curtail development in the city of Los Angeles. Measure S, formally known as the Neighborhood Integrity Initiative, would enact a two-year ban on all commercial projects that need planning variances, unless they offer only affordable housing, and once the moratorium ends would prohibit most projects that require general plan amendments.

2) SNAPPING UP SHARES: Snap Inc., creator of the Snapchat video and photo app, is expected to be valued at as much as $25 billion when the Venice company goes public next year. That initial public offering could come as soon as March in what would be one of the most high-profile IPOs in years.

3) SALE AWAY: Of course, not all businesses are put on the market for their prosperity. Several notable L.A. companies are looking for buyers after tough times – Los Angeles Times owner tronc Inc. saw its deal with Gannett Co. fall apart, but other suitors might be on the horizon; a British apparel maker seems to be eyeing postbankruptcy Nasty Gal; and bankrupt American Apparel, which has at least one bidder for its intellectual property rights, is expected to auction off other assets in January.

4) AEROSPACE RACE: L.A.’s aerospace industry might not have returned to its peak of the 1980s, but new companies and technologies are fueling a resurgence, from satellites to rockets to drones. Particularly worth watching are Virgin Galactic, whose Long Beach-built LauncherOne rocket designed for putting small satellites into orbit is expected to have its first flight in 2017, and Hawthorne-based Space Exploration Technologies Corp., or SpaceX, which after a Falcon 9 reusable rocket exploded this year is planning to make another launch attempt in January.

5) ALTERED AIRPORTS: Those of us who stay in the Earth’s atmosphere when we fly will see some changes, too. Work on Los Angeles International Airport’s $14 billion modernization project, including improved terminals, an airport rail system, and a new rental car facility, will continue; Long Beach Airport could become a hub for international flights when city officials in January consider applying for a U.S. Customs and federal inspection facility there; and Santa Monica Airport might go the opposite direction, as the city battles the Federal Aviation Administration to close it.

6) OLYMPIC HOPES: Los Angeles should get some important news about 2024 – the International Olympic Committee is expected to choose the host of that year’s summer games in September. Los Angeles and Paris are considered frontrunners for the profile-raising event.

7) FOOTBALL FUTURE: While the Olympics would put Los Angeles on the world stage, a more long-term boost to the local sports industry could come in the form of the San Diego Chargers making a move here; the team has until Jan. 15 to make its decision. The Los Angeles Rams, meanwhile, will be getting new leadership after a lackluster debut season that saw the firing of coach Jeff Fisher.

8) CANNABIS CRAZE: Proposition 64’s passage in November has given the green light to companies that were already moving to take advantage of legal recreational marijuana, from production to financing to accessories, in what is likely to become a lucrative industry. But many state and local regulations and taxes still need to be worked out in the coming year, including if and how cities will allow sales, before the state begins issuing licenses to pot shops in 2018.

9) HOLLYWOOD CONTRACTS: Major Hollywood labor agreements are coming up next year, just as video-game voice actors are striking over working conditions and compensation. The Writers Guild of America contract ends May 1, and the Directors Guild of America’s film and TV contracts are up June 30.

10) TRUMP EFFECT: President-elect Donald Trump is still the big X factor in the coming years – a feared trade war with China could impact L.A. manufacturing and trade, particularly at the local ports; lower corporate tax rates and other incentives could boost companies’ bottom lines; and anti-immigration measures could hurt the L.A. labor force and consumer base.

– Paul Eakins

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