The rise and fall of Bitwise Industries: was it a good idea that got off the track or something more sinister? Plus more on the slow, insidious demise of downtown thanks to crime and vagrants and celebrating our local eateries

 Welcome to Bakersfield Observed. Our mission is to celebrate life in Kern County by focusing on newsmakers and events and the local characters who make this community such a special place. The views expressed here are strictly my own and do not represent any other company or publication.

 * ... BITWISE: The rise and fall of Bitwise Industries, the so-called Fresno-based tech company that promised to convert underserved communities into tech hot spots, may prove to be a cautionary tale for communities in search of economic revival. And now that Bitwise seems to be imploding before our very eyes, we are left wondering if it was a good idea that went astray, an age old story of corporate greed or a ponzi scheme that went undetected for too long? One thing is for sure: Bakersfield has had its share of "too good to be true" stories, including the once high flying real estate firm of Crisp and Cole (remember when they were going to build a high rise at CSUB?) and the dramatic fall of a once wildly popular monsignor accused of sexual abuse. So what happened in the case of Bitwise and should we have seen it coming?

The best reporting on this story is being done by a Fresno reporter named David Taub of GVwire.com, whose work has proved indispensable now that traditional sources of reporting like newspapers have been muted as the industry has shrunk and local radio seems uninterested. So what do we know now? Bitwise is about to be evicted from three buildings in Fresno, it has fired its co-CEOs, it has furloughed some 900 employees, it is behind on rent and taxes and it was bouncing checks as it shut its doors. Looking back, a casual cruise through the Bitwise website may hold a few clues. For example, did you know there are 67 vice presidents and senior vice presidents listed for the six communities where Bitwise is located? That's right, sixty-seven executives. vice presidents for everything from traditional fare like marketing and strategy to more new age titles like VP of "well being and VP of "new economies." That is an average of 10 VPs for each location. A tad on the beefy side in terms of payroll ya think? (photos courtesy of David Taub and GVWire.com)

 * ... MORE BITWISE: Meanwhile, there are plenty of unanswered questions regarding Bitwise and how we found ourselves in this mess. Here are some questions we should address:

 a) Everyone from Mayor Karen Goh to the entire City Council (particularly Councilmen Bob Smith and Andrae Gonzales) bought into the pitch, and that led to the city doing business with Bitwise. We need a forensic audit to determine how the city got involved, what kind of due diligence we did, and how we can avoid a similar fate in the future?

 a) Exactly how much money did the city and county grant Bitwise, either for contracts to train people or in outright grants? In other words, how much did the Kern County lose on this ill fated endeavor? 

 b) In the spirit of full disclosure we need to know if anyone on the City Council, or in government, benefit in any way by doing business with Bitwise? Are there any conflicts of interest in real estate dealings, sales, leases or contracts that involve people in city and county government or their close friends or relatives? What was the role of Sage Equities (run by Bob Smith's son and daughter in law) in the Bitwise real estate moves, in any? The public lost money in this deal and it's time to let the sun shine on all the details, legal or illegal.

 c) If Bitwise goes away, what is the plan for the Bitwise buildings, many of which have already been upgraded?

 * ... WARD 2 PROBLEMS: Each week seems to bring new misery to business people and homeowners downtown as the city shows little ability to control the bad elements bent on destroying our city. So it was nice to see what the owners of Breaking Bad Hair did the other day after a vagrant smashed their front window.

 * ... STOLEN GUITARS: Take a look at this picture of some classic guitars that were stolen from Front Porch Music in downtown Bakersfield, yet another victim of the lawlessness of Ward 2. Front Porch is among dozens of downtown businesses who has suffered the indignity of random break-ins as crime explodes.

 * ... PICTURE THIS: Today's picture of the day comes from one of our favorite local photographers, JoJo Paredes Butingan. The picture was taken May 17 in the Kern River Valley. Enjoy.

 * ... DINNER FOR TWO: Two of our iconic and favorite restaurants in town -  Luigi's Delicatessen has Uricchio's Trattoria - have slick marketing campaigns on social media, showcasing some of the well known dishes that make these places a fan favorite. Check out this first post from Luigi's and the second by Uricchio's and tell me it doesn't make your mouth water.

 * ... MEMORIES: Enjoy these goodies from our friends over at Kern County History Fans.

 

Bitwise Industries furloughs its employees and misses paychecks, California declares war on Skittles and the exodus of businesses from downtown continues

Welcome to Bakersfield Observed. Our mission is to celebrate life in Kern County by focusing on newsmakers and events and the local characters who make this community such a special place. The views expressed here are strictly my own and do not represent any other company or publication.

 * ... RIP BITWISE? In the end, it all seemed like a too-good-to-be-true sales pitch: high tech firm comes to town, an attention starved community rallies around it like a savior, governments provide contracts and loans and then - puff - it is gone. Bitwise, the Fresno based company that swept into town with great fanfare and a business plan that few understood, has furloughed all its employees amid financial problems. The tech incubator announced on Memorial Day that it was furloughing its employees and it set no date when it might be back in

business. The SJV Sun reported issues with employee payroll checks and questions over whether the company had made its 401(k) contributions. In other words, the company is in a mess of trouble and it's safe to say Bitwise never lived up to its lofty goals of training our workforce for the next generation. In fact, the whole Bitwise story has been curious to some, including the fact that Bitwise trumpeted that it recently received an $80 million infusion of investment cash from the likes of Goldman Sachs and Citibank. Shortly after that, Bitwise listed three of its properties in Bakersfield were up for sale with a leaseback. Was it a matter of too much growth too soon? Or a business plan that simply didn't live up to its billing? Or a little of both? Stay tuned.

* ... RIP SKITTLES? So did you hear the California legislature has taken aim at the popular candy Skittles? That's right, the state has moved to ban some food additives that are found in Skittles - a coloring agent and Red 3, commonly used in packaged candy. The bill has been called the "Skittles ban" and has triggered a debate over precisely how dangerous the additives are. Opponents of the bill think this is the turf of the Food and Drug Administration, while critics argue that Skittles has plenty of alternatives if it wants to keep the snake in the market.

 * ... NAP TIME: You just never know what you will see on the streets of Bakersfield these days. Longtime reader Patsy Ann Ary submitted this photo of someone catching a nap, on a mattress, on South Union. Seriously. And there you have it.

 * ... DOWNTOWN EXODUS: There is a slow but steady exodus of businesses out of the downtown area, which remains a haven for vagrants, the mentally ill, the homeless and criminals despite the city's best efforts to restore some sense of order and safety. Stories of businesses spending hundreds and thousands of dollars to repair broken windows or report lost merchandise are simply too many to count. Add to that dangers at the local theater, where a patron at the Maya Cinemas downtown came back to his truck to find the tailgate stolen. One of the latest victims: Front Porch music where thieves made off with custom guitars and amplifiers. Below is a list of some of the guitars and other gear stolen from Front Porch music. Good look finding this stuff.

 * ... IN-N-OUT:  The beloved burger of the Golden State, In-N-Out Burger, is planning to expand to Tennessee by 2026. The Baldwin Park based company also said it would establish a corporate office in Tennessee. “We get a lot of requests in different states to open, and I’m very happy to meet the customers here and make their dreams come true,” said Lynsi Snyder, the company’s owner and granddaughter of founders Harry and Esther Snyder, at a news conference with Tennessee’s governor.

 * ... PICTURE OF THE DAY: Another couple of outstanding pictures from local photographer JoJo Parades Putingan.

 * ... MEMORIES: And finally a picture of flooding from the old days thanks to our friends at Kern County History Fans.

Anonymous letters threaten to burn down the homes of Trump supporters, local lobby the state to have water in the Kern River year round and some old pictures of Steve McQueen on a motorcycle in Lake Isabella

Welcome to Bakersfield Observed. Our mission is to celebrate life in Kern County by focusing on newsmakers and events and the local characters who make this community such a special place. The views expressed here are strictly my own and do not represent any other company or publication.

 * ... THREATENING LETTER: KGET reporter Bob Price is looking into a letter that has been showing up around town threatening Trump supporters with violence after the election.  "Your address has been

added into our database as a target for when we attack should Trump not concede the election," he said. "We recommend that you check your home insurance policy and make (sure) that it is current and that it has adequate coverage for fire damage."

 * ... NETFLIX: If you are like me, you have spent the pandemic running through the inventory at

Netflix, which has seen a surge in revenue and subscribers over the past eight months. Netflix added 2.2 million subscribers in the third quarter, just shy of its estimate of 2.5 million, and revenue jumped 23 percent to an incredible $6.4 billion. It has now leveled off, but count Netflix among those companies who have benefitted from the long lockdown.

 * ... DAYLIGHT SAVINGS TIME: Fall has finally come to the Central Valley as temperatures dip, leaves begin to change color and the end of Daylight Savings Times is near. The clocks will roll back one hour on Nov. 1, the day after Halloween, at 2 a.m. It’s also a good time to replace batteries in warning devices such as smoke and carbon monoxide detectors. If your device has sealed-in batteries, remove any debris and check to confirm they are functioning properly. Daylight saving time will return at 2 a.m. on March 14, 2021.

 * ... KERN RIVER: The push to get water flowing year-round in the Kern River made its way to the State Water Resources Control Board's monthly meeting. That's the word from Lois Henry and her website SJVWATER.ORG that said multiple speakers asked the board to make it a priority to allocate unappropriated water on the river to keep is flowing year round. One of the speakers from Bakersfield, writer Kelly Damian, said "the people here deserve to have their river back." Damian was among a group of speakers who were behind a change.org petition seeking water in the river full time. "If Mono Lake can be saved, the Owens can be restored and the San Joaquin can flow again, we will bring back the Kern," the petition said.  This is no quick fix, to be sure, but it's good to see some influential local people pressuring the state to do the right thing.

* ... SPOTTED ON TWITTER: Rep. Kevin McCarthy (R-Bakersfield) weighed in on the dispute over the decisions by Twitter and Facebook to start censoring certain conduct. Said McCarthy: "When Twitter selectively targets any user based on politics, they not only undercut their own Terms of Service, they undermine the principles of our First Amendment. Freedom of speech is an inherently American value. It must be protected."

 * ... KGET DEBATES: Hats off to the folks over at KGET for stepping up when others won't: KGET has devoted its time and airways to a series of debates, including one featuring Rep. Kevin McCarthy versus Kim Mangone, Rep. T.J. Cox against former congressman David Valadao and Assemblyman Vince Fong versus Democrat Julie Solis. As one viewer said on Twitter while watching the McCarthy debate: "Sorry Kim Mangone, not now. Not today." Even thought candidates like Mangone and Solis are clearly outmatched, the management at KGET and debate moderators Jim Scott and Eytan Wallace deserve our thanks for airing all of these debates.

* ... STEVE MCQUEEN: Check out these old photos of the late Hollywood actor Steve McQueen, a motorcycle enthusiast, gassing up in Lake Isabella. Thanks to former Californian photographer Felix Adamo for posting this and crediting the photo to John Dominis, who was on assignment for LIFE magazine.

 * ... MEMORIES: And check these pictures out, from the Kern County History Fans Facebook page.