Crystal Ball Sees Big 2006 for Capital Tech

By Bob Shallit -- Bee Columnist

Published 2:15 am PST Saturday, January 7, 2006
Story appeared in Business section, Page D1

It will be an incredible year for Sacramento's emerging tech business, a good one for downtown. And a make-or-break one for those hoping to keep our favorite pro basketball team in town.

Those are among the top local business stories as we look at 2006. Yes, yes, we know. Our crystal ball wasn't firing on all cylinders last year. We've taken it to the shop, had it tuned up. It's working flawlessly. This year's forecast is golden:

* Sacramento International Airport continues growing, with more service and more passengers. JetBlue adds daytime service to the Big Apple and another carrier - maybe Air Canada, maybe Alaska - inaugurates the first service to Canada. Look also for the facility to register its first month with a passenger count over 1 million.

* The IPO market comes back swinging with at least three local companies testing the public markets. Likely candidates: CoreLogic (formerly C&S Marketing), which has quietly seen sales approach $100 million, Volcano Corp., R Systems and Digital Musicworks International. This might even be the year for Agraquest.

* At least two other companies have "exits" through the acquisition route. Among the likely candidates: Sierra Logic and Meridian Project Systems. A couple of other "name" firms have exits of a different sort - throwing in the towel.

* As many as a dozen companies get their first institutional funding. They could include WebRaiser Technologies, emTrain, Riavo Systems, TotalMass, BizFlex and Revionics.

* A new "angel" investing group forms in the area, joining the Sacramento Angels and Strategis Early Ventures as local organizations providing seed capital to startup companies. Overall, look for a record year of investing by local angels.

* The Greyhound bus station finally finds a new home outside the downtown core. The announced move takes a crime magnet out of the path of development. Downtown business leaders throw a Mardi Gras-type celebration.

* Redevelopment starts in downtown's neediest area with new construction on the 700 or 800 blocks of K Street. We said "or." Not both.

* Meanwhile, developers come back to the city with a proposal for housing and retail at 10th and K streets. It isn't as grand as some had hoped. But it's a big step, nonetheless.

* A proposed 21-story lofts, office and retail project gets under way at the site of the former Bank of America building at Eighth and I streets.

* What about those high-rise condos on Capitol Mall? Only one gets financing and moves forward.

* There is progress, at last, on plans to develop the UP railyards downtown. Millennia Sacramento completes its purchase of the railroad's land early in the year after ironing out a plan to reroute track.

* George Tsakopoulos' proposal for a Parthenon-topped office building on Capitol Mall is shelved. Another celebration is held.

* A new proposal is floated for a smaller version of the Covell Village project rejected last year by Davis voters. It goes down in flames, too.

* Ray Kerridge, acting city manager, gets the job on a permanent basis after winning raves for his work improving Sacramento's development climate. A city press release quotes the mayor saying a national search was conducted but "the best person was right here all along."

* The long-delayed research park at UC Davis gets going with a new development team pushing the progress.

* Shari's Berries, which had an aborted management-led buyout last year, takes new steps to bring in needed capital. Could be a fresh round of financing, maybe a sale to a strategic investor, possibly another buyout.

* Poker makes a comeback as a fundraiser for the Sacramento Area Regional Technology Alliance. The group canceled last year's Texas Hold'em tourney because the event ran afoul of state gambling laws. The SARTA folks figure out a way to proceed.

* A shake-up occurs at GenCorp as shareholders demand better returns. A sale? Executive changes? Something like that.

* Sacramento media entrepreneur Amador Bustos continues his radio station buying spree, picking up another eight stations (at least) during the year and proving again there's a huge market for Spanish-language programming.

* Visionary Integration Professionals pulls off another big acquisition, edging the Folsom IT firm closer to becoming a $100 million enterprise.

And finally:

* The Kings don't leave Sacramento. Not this year. But they do relocate - to Anaheim, most likely - in 2007 unless city officials quickly get serious about retaining one of Sacramento's biggest civic assets.

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About VIP

Established in 1996, Visionary Integration Professionals (VIP) is a global technology and outsourcing firm that has provided solutions to over 900 clients in multiple industries as well as federal, state and local government. VIP helps companies challenge boundaries and uncover new possibilities to increase productivity, maximize revenue, improve performance, mitigate risk, and reduce costs. With nearly 1,000 staff companywide, VIP offers expertise in areas of Business Intelligence and Data Warehousing, SAP Integration and Consulting, Technology Integration and Operations, Talent and Learning Management, Quality Management, and Management Consulting. VIP’s corporate headquarters is located in Folsom, California with offices in Sacramento, Minneapolis, Dallas, Denver, New York City, Alexandria, Houston, and Bangalore, India. More information can be found at www.vipconsulting.com.