Banc of California headquarters move hailed by Los Angeles mayor

Karen Bass is marking her one-year anniversary as Los Angeles mayor by showing how federal dollars will be put to work for green projects and taking credit for the post-merger relocation of a regional bank to the city.

Banc of California Inc., which just acquired rival PacWest Bancorp in a rescue deal, is moving its headquarters 30 miles from Santa Ana in Orange County.

The company last week completed the takeover of Beverly Hills-based PacWest, which experienced deposit outflows in the aftermath of the collapse of Silicon Valley Bank. The combined company will have more than 70 branches throughout California, and in Denver and Durham, North Carolina.

Bass is spending this week “criss-crossing Los Angeles highlighting her work on homelessness, safety business, and climate and city services,” according to a release.

“We are working to ensure that Los Angeles is not just open for business, but that City Hall is advocating for business,” Bass said. “Throughout this city, we have heard from business leaders that actions we have taken have brought a new energy to our business sector. This is just the beginning.”

Banc of California pledged $1 million to support Bass’ contract assistance program that will provide small and medium-sized businesses with the financial support to help them compete for government contracts.

“As a native Angeleno, I know the power and promise of Los Angeles and the entrepreneurs and businesses that make it great,” said Jared Wolff, CEO of Banc of California. “As California’s leading business bank, we are designating Los Angeles as our headquarters to further serve this vibrant business community.”

Randall Winston, Los Angeles deputy mayor for infrastructure, told The Bond Buyer last week that Bass has been employing the same tactics outlined in the national Equity in Infrastructure project on city projects to make sure that women and minority-owned businesses can bid on city projects. One of those efforts is to break up city contracts into smaller sizes, so that small and medium-sized businesses can qualify.

At the Donald C. Tillman Water Reclamation Plant on Monday, the mayor spoke about efforts the city is making to enhance water conservation, electrify transportation systems, decarbonize power generation and reduce greenhouse gas emission from commercial and residential buildings. She also noted that the city has secured $1.2 billion in federal funding to implement clean, renewable hydrogen projects.

“Climate change is making Los Angeles’ complicated relationship with water even more challenging,” said Tracy Quinn, CEO of Heal the Bay and director of the Metropolitan Water District of Southern California board. “In Mayor Bass’ first year in office, we have seen significant state and federal funding to improve our region’s climate resilience.”

The federal funding will be used to decarbonize projects at the Port of Los Angeles and at the Los Angeles Department of Water and Power’s Scattergood Generating Facility. The city also secured $48 million from the U.S. Department of Energy’s Grid Deployment Office to enhance the grid’s flexibility and improve reliance against climate change; and $19 million in state funding to support climate resiliency and for LADWP’s turf replacement program, which provides rebates to homeowners in underserved communities to replace lawns with water-friendly native plants.

Construction on the Tillman plant in Van Nuys is slated to begin in October 2024. The $700 million project, a partnership between LADWP and the Los Angeles Department of Sanitation, is expected to provide water for 250,000 homes.

Under her watch, LADWP launched its Powered by Equity Initiative, which Climate Resolve Executive Director Jonathan Parfrey called a “major accomplishment.”

“Mayor Bass is guiding the city’s utility to not only achieve zero emissions, but to do so in a way that uplifts communities with much needed investment and opportunity,” Parfrey said.