Exit Chat: Toebben on 12-Year Chamber Tenure

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Gary Toebben retired at the end of June, wrapping up 12 years as chief executive of the Los Angeles Area Chamber of Commerce. He steered the L.A. chamber through a steep membership decline during the Great Recession, eventually rebuilding its roster. He also oversaw the launch of the Bixel Exchange to support local tech entrepreneurs, and the establishment of a center for global trade and foreign investment.

Toebben, 70, was raised on a farm in Nebraska and served as chief executive for several chambers of commerce in the Midwest before taking the L.A. chamber post in 2006.

The Business Journal talked with Toebben to get his take on Los Angeles and the many challenges the region faces. Edited excerpts of the conversation follow:

Question: At what point during your tenure did you see Los Angeles as a global city?

Answer: Three points really. Look at the commitments that the voters made to Measure R in 2008 and Measure M in 2016 –these were major statements that the public wanted to embrace additional mass transportation. Every major global city in the world has a major mass transportation system, and each of those efforts was a sign that Angelenos were beginning to look at themselves differently, that Los Angeles was more than a single-passenger vehicle city.

Another key turning point was the commitment by Korean Air in 2010, during the depth of the recession, when (Korean Air) Chairman Cho Yang-Ho made the commitment to then-Gov. Arnold Schwarzenegger to invest in Los Angeles with the Wilshire Grand project. That was the first of many large-scale international investments here. You know, sometimes your attitude about yourself changes when the attitude of others about you change.

In what other ways has your perspective on Los Angeles changed since you first took over the post 12 years ago?

I’ve learned how the water systems that have put in place have been so significant and transformative, and I’ve also realized the tremendous assets of the ports of Los Angeles and Long Beach.

I’ve also recognized the need to create large and diverse coalitions – otherwise it’s nearly impossible to get things done.

You got a chance to get to know many businesses in Los Angeles up close during your tenure. Can you name a couple of those businesses, and what made them stand out in your memory?

One company that I’m so appreciative of is AECOM. It purchased so many smaller companies and did this while keeping L.A. as its headquarters location. So often we have been chagrined by headquarters moving somewhere else, so it’s quite remarkable that company has chosen to stay.

One smaller company I’ve come to appreciate: Snak King Corp. in City of Industry. It is owned by a local family, has its main operation here and is expanding to Illinois and New York state. It is competing against giants like Frito Lay Inc. (of Plano, Texas) and it’s doing so well.

What do you consider as the chamber’s biggest accomplishments during your tenure?

Definitely leading support for Measures R and M, the $14 billion in investments at LAX and the ongoing commitments of the Ports of Los Angeles and Long Beach. Nothing is more important to economic growth and to a world-class city than the infrastructure that these commitments provide.

I’m also proud of our Bixel Exchange, which has helped 250 technology company startups.

And on the statewide level, we led the charge on two ballot initiatives: a citizen redistricting commission and term limit reform. No other local chamber of commerce to my knowledge has ever initiated ballot measures like that, with partnerships that were most unusual.

What’s still unfinished?

The biggest challenge is housing supply and affordability: When you are an existing urban center, the only option to significantly increase housing is to go up. That is where we need to go, but we have to do it in a way that doesn’t scare out neighbors and do it tastefully.

And then there’s homelessness, reform of the California Environmental Quality Act, and the growing liability of local public sector pension obligations.

What was the biggest setback?

For me personally, it was the effort to reform the California Environmental Quality Act. For two years I chaired a task force and genuinely thought we could rally support for some significant changes in that law – chiefly giving every project the sort of time deadline for lawsuits that the Legislature now grants to stadium projects. But the changes we sought died in the Legislature. That was a disappointment that still remains with me because it’s so important to build the housing we so desperately need.

Any advice for your successor, Maria Salinas, as she prepares to take over next month?

What I’ve told her is that the business community in Los Angeles needs a strong and robust and local chamber of commerce. Lots of different priorities may arise in the organization, but that’s the overriding one.

What are your plans now that you’ve retired? Do you plan to stay active civically?

My wife (Janice) and I will continue to live here. I will answer every phone call, though I have no plans to be a professional consultant. At some point, I will develop a list of the nonprofit organizations that I want to continue to be involved in.

Janice and I love the outdoors and look forward to seeing the rest of the state and other parts of the globe. One goal: I’m going to finally have time to tackle climbing Mount Whitney; I just now have to get in shape to do it.

Henry Meier is on vacation; his Deals & Dealmakers column will return next week.

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