California
City EDC
Assisting Companies to Expand
or Relocate
A nonprofit corporation, California City Economic Development Corporation
(Cal City EDC) provides information and facilitation for companies looking
to expand or relocate in "AFFORDABLE" California
City.
Regional Influences
Edwards Air Force Base (2000 Data)
Total Base Population
16,510
Payroll
$385 Million
Total Acquisitons
$300 Million
Acquisitions from East Karn/AV $87 Million
Mojave Civilian Flight Test Center
Tenants on Airport
32
Total Emplopyees
1000
Payroll
$4 Million
US Borax Company
Total Employees
900
Honda Proving Center of California
Total Employees
80
California City Correction Center
Total Employees
550
Federal Contract
10 years
Total Inmates
2304
Payroll
$23 Million
Local businesses should be giving thanks during
this holiday season for Shasta County’s recent designation by Gov. Arnold
Schwarzenegger for a coveted new enterprise zone (EZ).
As an example, C.R. Gibbs American Grille, a locally
owned restaurant on Hilltop Drive, has benefited by receiving $555,301
in state tax credits over the past seven years.
According to owner/manager Ed Rullman: "We were
extremely excited about the new designation because we have benefited so
greatly from being in the EZ in the past. Saving tax dollars helps C.R.
Gibbs invest in new equipment, which keeps our business strong and ultimately
helps us to create more employment."
After months of work to prepare a competitive
application, local jurisdictions finally received the good news Nov. 3,
only three days before the expiration of the enterprise zone that was awarded
in 1990.
Not only did the Shasta County joint application
make the cut, but it also scored extremely well among all applicants statewide.
Shasta County’s proposal placed second out of 25, which is a tribute to
the hard work put in by representatives of Anderson, Redding, Shasta Lake,
Shasta County, the Smart Business Resource Center, Superior California
Economic Development and the Economic Development Corporation of Shasta
County.
Why is the enterprise zone so valuable? First,
it is the only California incentive program focused to assist companies
with
expansion. Second, and most important, the program is easy to understand
and easy to use. Documentation in the tax preparation process is very simple
and most professional tax-preparers are familiar with the forms.
The main reason it is so valuable, however, is
that it provides significant state tax credits in a state, California,
where taxes are among the highest in the nation. Tax credits mean fewer
dollars paid to the state and more dollars back into profits to help companies
fund more capital expansion and more jobs.
Here’s another example of how it can help even
a small company. Let’s say a company purchases qualifying equipment for
$100,000 and adds one enterprise-zone-eligible employee. Under this scenario,
a small company can receive a tax credit of up to $17,775 for the first
year alone. That’s $17,775 that goes right back to the owner of the company
as profit.
The new enterprise zone has received a "conditional"
designation, which means that the benefits are in place immediately for
those businesses that were also in the earlier zone. Essentially, there
is no gap. Confusing? Don’t be dismayed; a free enterprise zone seminar
is planned for Dec. 13 to discuss zone benefits.
Enterprise zone seminar
• When: Wednesday, Dec. 13
• Time: 8:30-10:30 a.m.
• Where: Redding City Hall Community Room 777
Cypress Ave.
• Cost: Free
• Reservations: 224-4920
The Flat World
Shirley Dong was born in China and now represents
U.S. clients of Deloitte Consulting seeking a presence in Asia, so she
has firsthand knowledge of the global economy. I met with her recently
in Deloitte’s corporate offices in downtown Chicago to discuss the growing
trend of Chinese company’s seeking a presence in the United States.
Deloitte Consulting has 450 employees in its Chicago
office and Dong is part of a team that focuses on the Asian market, primarily
Chinese investment.
In the not too distant future, many Chinese companies
will be seeking competitive alternatives for U.S. operations — why not
Shasta County?
The meeting with Dong is part of a focused effort
that is being made to ensure that Shasta County is being considered as
an alternative to site location consulting companies around the U.S.
To date, personal presentations have been made
to 21 companies with more being planned. It is a marketing effort that
is essential, especially for a relatively small, unknown area like Shasta
County
Gov. Schwarzenegger Announces NEW Shasta Metro
Enterprise Zone - 11/16/2006
Designation for Redding, Anderson, Shasta Lake
and portions of Shasta County along I-5 corridor
Continuing his efforts to create jobs and a positive
business environment, Gov. Schwarzenegger announced today the conditional
designation of the Shasta Metro Enterprise Zone in the North State, part
of 23 Enterprise Zones he named statewide.
“Since I became Governor, I have worked tirelessly
to improve the business climate and create more than 650,000 new jobs,”
said Gov. Schwarzenegger. “By using incentives like hiring credits or sales
tax credits, these Enterprise Zones can harness the entrepreneurial spirit
of our state and help draw business investment to economically depressed
areas. Enterprise Zones lead to more jobs, less poverty and long-term economic
stability.”
The new designations will take the place of the
23 zones set out in statute which are expiring over the next several months.
Each zone designation is in effect for 15 years.
“A majority of the companies we are working with
in today’s competitive environment recognize the value of Enterprise Zones
and in more cases Enterprise Zones are being requested as part of the site
search criteria,” said Jim Zauher, president of the Economic Development
Corporation of Shasta County. “Having a new Enterprise Zone designation
available to us for the next 15 years will clearly assist local companies
in their expansion efforts and add a competitive advantage in the recruitment
of new companies.”
The California Enterprise Zone Program targets
economically distressed areas using special state and local incentives
to promote business investment and job creation. By encouraging entrepreneurship
and employer growth, the program strives to create and sustain economic
expansion in California communities.
“Tax incentives and assistance from the Economic
Development Corporation of Shasta County made opening a new Captive-Aire
plant a great decision,” said Captive-Aire founder and president Robert
Luddy. “We are pleased to be in Redding, where Captive-Aire can grow our
western operation and create new jobs for American workers.”
Businesses within Enterprise Zones are eligible
for substantial tax credits and benefits including:
•Firms can earn $31,234 or more in state tax
credits for each qualified employee hired.
•Corporations can earn sales tax credits on purchases
of $20 million per year of qualified machinery and machinery parts.
•Up-front expensing of certain depreciable property.
•Lenders to Zone businesses may receive a net
interest deduction.
•Unused tax credits can be applied to future
tax years, stretching out the benefit of the initial investment.
•Enterprise Zone companies can earn preference
points on state contracts.
•Up to 100% Net Operating Loss (NOL) carry-forward.
NOL may be carried forward 15 years.
“This designation will continue to play a significant
role in the attraction of new business to the greater Redding area, as
well as businesses already located here,” said Dave Scott, founding partner
of D.H. Scott & Company. “As a CPA, I can assure you that the tax incentives
offered by this program represent a major savings to participating companies
in our area.”
In August, Gov. Schwarzenegger released a report
commissioned by HCD that evaluated the success of Enterprise Zones in spurring
economic recovery. The report shows that from 1990 to 2000 Enterprise Zones
on average experienced:
•Poverty Rates: declined 7.35 percent more than
the rest of the State
•Unemployment Rates: declined 1.2 percent more
than the rest of the State
•Household Incomes: increased 7.1 percent more
than the rest of the State
•Wage and Salary Income: increased 3.5 percent
more than the rest of the State
The next step in the designation process will
be the Department of Housing and Community Development’s (HCD) issuance
of a conditional designation letter to each of the new zones. The letters
will outline conditions which must be met to be granted final designation.
Examples of conditions include preparation of an Environmental Impact Report
and a signed memorandum of understanding with the Department which includes
performance measures and benchmarks.
Expert Gives Vital Insights on Growth - 11/6/2006
Record Searchlight
By Jim Zauher
A"pet" phrase of mine is that "I know just enough
to be dangerous." We all do it: develop our opinions based on various levels
of knowledge or actual experience we may have on any given subject.
Heck, I'm not sure why the San Francisco Giants
waste their money on high-paid executives like Brian Sabean, when they
have someone like me who has spent countless hours studying the team since
I began listening to Russ Hodges call Willie Mays home runs in the 1950s.
Need a batting order, pitching rotation or a trade or two? Use me and save
some money. I've got plenty of experience!
The same can be said for the business of economic
development, which is why it is so important to continue to bring high-quality
professionals like Dennis Donovan to Shasta County.
Even though the message Donovan delivered to his
Shasta County audience may have been similar to what we have heard before,
it is important to hear from those who are actually in the trenches, working
directly with the companies that make the location decisions.
Also, it's amazing how quickly we forget. It wasn't
that long ago that economist William Fruth made a series of presentations
to Shasta County audiences about the state of our economy and what we needed
to do to fix it. More than 1,000 people heard the presentations and the
message -- "Add more primary industry employers and jobs!"
Donovan is one of the most respected site location
consultants in the United States, representing many Fortune 500 companies
in location decisions. His presentation last month at the Economic Development
Corporation of Shasta County annual luncheon provided a snapshot of the
global economy, a review of the national picture for the industrial sector
and a "report card" on Shasta County competitiveness.
For the many who did not have the opportunity
to hear Mr. Donovan speak, here are a few of the high points:
The global economy is producing "inward" investment
from many companies outside the U.S. seeking access to our market. In addition,
expansion is occurring with many national firms in the areas of manufacturing,
IT and customer service.
Manufacturing growth is very active in medical
and biotech, food processing, building materials, distribution, and electronics
(a number of these are Shasta targets).
Regions of most interest to expanding companies
are Atlantic Sun Belt (Virginia to Florida), Texas and Intermountain (Idaho
to Arizona).
California is still a tough sell, but the far
north (Shasta) and the Central Valley regions are not appreciated. Some
companies need to be near the California market.
Donovan also discussed specific influences in
today's world that were affecting location decisions. He referenced Bureau
of Labor statistics data that indicate there will be a shortage of 8 million
workers in the U.S. by 2010. Because of this, companies see access to human
resources supply, quality and costs as a predominant future consideration.
As a result, companies will need to be viewed as "preferred employers"
to compete in the U.S. market.
Conversely, areas that can capitalize on their
work-force availability and competitiveness will have an advantage.
And, he noted the trends in corporate location
decisions:
• Work-force programs
• Logistics-market and vendor access along with
highway linkages,transportation services and costs
• Electric power-capacity, reliability and cost
• Telecommunications-broadband
• Available buildings and sites areas without
product are many times never in contention
• Permit fast tracking
Incentives:
• Overall lower business costs -- 20 percent lower
than the Bay Area
• Attractive, low-cost living environment
• Ample supply of quality workers for light industry,
distribution and back office
• Labor force comprised of latent pool of unemployed
and underemployed
• Adequate transportation resources
• Higher education and training resources
• Competitive electric power, water, wastewater
• Pro-business local government units
Locational liabilities:
• The state of California-sixth worst legal liability
system, arduous permitting process, work-force compliance costs more than
$3,000 per employee (two to three times more than other states)
• Highest workers' compensation costs and one
of the highest taxed states
Uncompetitive incentives:
• Limited number of large, modern office and industrial
buildings and lack of large sites
• Early warning signs about future labor supply-older
population growth and high number of adults without high school degrees
• Tough sell for hi-tech absence of critical mass,
technical university and relatively low proportion of college degrees;
and
• Limited air service
Donovan had not been to Shasta County before his
visit, but he left with a very positive feeling about it for potential
business investment. He views it as among the best of what he calls second-tier
California metro areas for companies seeking a West Coast presence, family-owned
companies seeking relief from coastal metro areas and larger Bay Area companies
looking for branch operations.
Want a copy of his remarks? Please help yourself
at the following link to the EDC Web site: www.shastaedc.org/availreports.asp.
North State Has Business Hook - 10/6/2006
Record Searchlight
By Marc Beauchamp
Analyst says Shasta County's Wage Level can Lure
Companies
Despite California's "anti-business climate,"
Shasta County has several advantages to offer companies looking to relocate,
including an eager work force and a low-wage environment, a national business
consultant said Thursday.
Dennis Donovan, a New Jersey-based corporate-relocation
specialist, was paid $8,000 for an analysis of the local economy presented
in a 40-minute speech at the annual luncheon of the Economic Development
Corporation of Shasta County, said EDC President Jim Zauher.
Donovan predicted the city's $60-million-plus
investment in the Stillwater Business Park would be successful and suggested
that Redding consider planning for a second park.
Among Redding's other assets are its abundance
of available land and a "business-friendly local government," he said.
He said companies would be attracted by the area's
wage levels, which he said were 20 percent lower than the San Francisco
Bay area, 10 percent less than Nevada and 10 percent below the U.S. average.
The area's household income, he said, is 20 percent below the national
average, meaning there's a large potential work force willing to work for
less money.
Noting that 17 percent of adults in Shasta County
don't have high school diplomas, Donovan urged an "all-out assault on adult-based
skills remediation." He praised Shasta College's vocational training programs.
Redding's biggest challenge, Donovan said, is that it's located in California,
which has an anti-business "stigma."
Besides incentives such as tax breaks and cut-price
utilities, Donovan suggested the city embark on a public-private partnership
to build ready-to-occupy "shell buildings" in an effort to attract companies.
He also urged greater sales efforts by the EDC,
suggesting that the group's annual marketing budget be doubled to $300,000.
Among the roughly 350 business and community members
at the luncheon was Shasta County Supervisor Glenn Hawes, who said afterward
he liked that Donovan considered the north state an attractive venue for
industry.
"We have the water, we have power, we've got a
lot of things to offer people," Hawes said. "We've got a pretty decent
work force. It's a nice, family place. It's a good place to open a business
and have happy employees."
Gary Schmidt, chair of the business department
at Simpson University, noted Donovan's call for Simpson and Shasta colleges
to produce people with the technical skills to create a labor pool that's
conducive to the kinds of industries that could come to Redding.
"In general I agree with it," Schmidt said. "We
need to try and produce the technical people they're going to need to support
these operations. I think it's going to take a lot of partnership with
the likes of Shasta to bring it online."
Businesses Can Compete In State - 10/2/2006
Record Searchlight
By Jim Zauher
It is extremely difficult to be competitive when
companies compare California to some of the neighboring states.
As much as we can help our cause through local
initiatives such as the Stillwater Business Park, local low-cost utilities
and other local incentives, the reality is that state-related issues, costs
and regulations are beyond our control.
However, because Shasta County does have certain
specific advantages, including our strategic location on Interstate 5,
in some cases a Shasta County location can mitigate some of the California
disadvantages and make our case competitive.
As an example, especially because of escalating
fuel prices, transportation and logistics continue to be a more critical
cost component for manufacturers.
It is a consideration that motivates companies
to seek new West Coast manufacturing and distribution locations. These
factors were instrumental in the decisions of two of our most recent recruitment
successes, Spartan Logistics and Captive Aire.
The bottom line is that if a company serves customers
in both California and the Northwest, it's very competitive to be in Shasta
County from a transportation cost standpoint.
Whatever the circumstances are, however, it is
challenging for companies who have not operated in California to understand
the depth of costs and regulations that they face here compared with most
other states.
Workers' compensation insurance is the most notable
of the cost issues that has received much media attention. Although California
premiums have been reduced considerably, they still continue to be way
out of line with our competition.
As an example, a comparative matrix that was provided
to me by a company who has an interested in building a facility in Shasta
County and employing more than 100 people shows the disparity.
These estimates were provided by the company's
nationally recognized insurance carrier and were based on specific data
including job classifications, annual payroll, etc.
According to the estimates, the company's annual
insurance premium for workers' compensation would be $84,303 in Georgia,
$73,510 in Arizona and $179,123 in Nevada. In California, however, the
company's premium would be $332,281.
All of these additional costs, many times adding
up to hundreds of thousands of dollars annually, reduce company profitability
and influence site location decisions if they cannot be offset by other
advantages.
Workers' compensation costs, of course, are just
one of the many cost items that are higher in California. Add higher corporate
taxes, higher health care costs, higher utility costs, and permits and
fees that are more time consuming and more expensive, California is at
a strategic disadvantage.
That's where our local assets that affect transportation,
utility rates, land costs and overall business friendliness can make up
the difference. It is also why we have to continually work harder to be
competitive and need to be diligent about what factors companies seek to
make their decisions.
It is only when we understand the reality of the
marketplace that we can compete. The good news is that there are more Captive
Aires and Spartan Logistics companies in the pipeline.
For those interested in knowing the possibility
of us being successful in gaining a new Enterprise Zone designation, here's
the latest.
The current zone expires in November and along
with it hundreds of thousands of dollars in state tax credits and employment
incentives for local companies and residents.
A new application was submitted earlier this month
for a new 15-year designation. There are 23 zones like ours that will be
expiring during the next few months.
The good news is that there are only 25 new applications,
so the odds are very good that we will be competitive. The other good news
is that we received our technical review, and there was only one minor
clarification point that was requested and that has been satisfied.
Hopefully by the time I will be writing my next
column, I can give our local business community some good news.
Are Companies Taking a Good Look at our County?
- 9/4/2006
Record Searchlight
By Jim Zauher
The answer is a definite YES.
And since the industrial sector of the economy
has strengthened, the Economic Development Corporation of Shasta County
(EDC) has had more inquiries, especially in the past 12 months.
Why?
Fundamentally, manufacturers have reached capacity,
and as a result, new facilities need to be built. Because the West continues
to grow, companies based in the East and South are looking more seriously
at adding the capacity where they can get closer to the growth.
Added to the equation is the accelerated expense
of shipping as a result of huge increases in fuel costs.
The Captive Aire facility in Redding is one example
of what is happening, but it is not isolated. Other companies have contacted
the EDC with similar needs.
Challenges ahead
The hurdles remain to be the high costs of doing
business in California, including workers' compensation costs that, although
lowered, are still sometimes double what it might cost in states like Nevada
and Arizona.
Shasta County is also being more recognized as
an alternative location for California companies seeking to flee the high
costs and urban lifestyle of the coastal metro areas.
Generally, both cost issues and quality of life
motivate California companies, especially if the owners are moving with
the facility.
The attractions to Shasta County are strategic
location on Interstate 5, lower operating costs and a welcoming environment
toward new business and industry.
We will never be the least expensive place to
do business, but we can continue to be a competitive location in California
if we keep working on it.
Because shipping costs are such a big operating
expense for certain industries, a Shasta County location can sometimes
make up the higher cost differentials in some of the other categories.
Noted adviser to talk
The EDC annual luncheon event this year promises
to be a good one.
Highly regarded location adviser Dennis Donovan
will provide the keynote presentation and will discuss Shasta County's
competitiveness and the state of the global economy.
Redding Bank of Commerce is sponsoring the event.
Donovan has advised numerous high-profile corporations
on their location decisions and is very respected as one of the most knowledgeable
in the industry.
It's a value to have him here, just so he can
have a better understanding of Shasta County as a location alternative.
Also, one of his keynote topics is what he describes as a community "report
card." He'll give us feedback on what we're doing right and tell us where
we need a little more work.
Donovan is a sought-after, well-published consultant
who is also a strong leader in the leading professional association for
Corporate Real Estate, CoreNet Global.
The event will be Oct. 5 at the Redding Convention
Center. A $30 ticket includes a tri-tip luncheon and Donovan's informative
presentation. Call the EDC at 224-4920 for reservations.
Group is nonpolitical
With the local political season in full swing,
the EDC remains a very nonpolitical organization. Local business groups
such as the Greater Redding Chamber of Commerce, Shasta Builders' Exchange
and Shasta Association of Realtors all have political action committees
that dive into the local political scene.
The EDC, however, is a 501c 3 nonprofit group
that is limited in its political interests.
We gladly stand by the sidelines and let the advocacy
groups do their thing with the understanding that we will ultimately work
with whoever is elected.
Shasta County as a whole has been pretty fortunate
over the years to have consistent local political support for economic
development, and for the most part it continues to be high on the list
for all of the political business groups and most candidates.
The value of quality job creation transcends political
boundaries.
Application submitted
The application for a new designation was delivered
to the state last week and it is a monster!
It ended up being hundreds of pages of documentation,
and although we could argue about the value of providing all of this, the
fact is, they really don't ask for our opinion.
By October, we should know how we fared in the
highly competitive process, but my gut feeling is that we should do OK.
Hundreds of local companies take advantage of significant tax savings as
a result of this designation.
Nationally Recognized Site Location Advisor Headlines
EDC Annual Luncheon - 8/28/2006
The EDC of Shasta County is pleased to announce
that nationally recognized and distinguished Site Location Consultant Dennis
Donovan will be the keynote speaker at the EDC Annual Luncheon. This year’s
event will be held at the Redding Convention Center on Thursday, October
5th at 12 noon. The sponsor for the event is Redding Bank of Commerce.
Dennis Donovan is responsible for worldwide site
selection services at Wadley-Donovan-Gutshaw consulting. The firm has been
advising corporations on office and industrial facilities location for
31 years.
Mr. Donovan has enjoyed long term relations as
a location advisor to many industrial and service corporations including
American Express, Lucent Technologies, Merck, SITEL, Solectron/Stream and
Veritas.
Dennis Donovan is highly recognized in the field
for his expertise and he has also assumed a leadership position in the
industry’s primary trade association-CoreNet Global. He created and teaches
the organization’s site selection course both for certification and professional
development and also teaches courses and advises Economic Development programs
for both the University of Kentucky and the University of South Florida.
Mr. Donovan will address the EDC luncheon on competitiveness
and provide a “report card” on how Shasta County stacks up in today’s business
recruitment environment. Donovan will also provide an economic overview
of the global economy and discuss job losses to overseas competition as
well as emerging market trends in the U.S. economy.
Doors open at 11:30 a.m.
Tickets are $30 and include a tri tip luncheon
Call the EDC office for ticket information at
224-4920
Shasta Metro Enterprise Zone Risks Losing Tax
Incentives - 8/7/2006
Record Searchlight
By Jim Zauher
"Under the radar," so to speak, a team of professionals
representing various local entities has been preparing an application to
continue one of the most successful economic development programs that
has ever benefited Shasta County. Although it has been on local government
agendas recently, it has not received much media attention.
In 1990, this same nucleus of local entities competed
statewide with the result that Shasta County received the successful designation
as the Shasta Metro Enterprise Zone in November 1991. That designation
is set to expire this year, along with 23 other zones statewide, and the
fierce competition is on again.
So, for about the past 45 days, a major effort
has been under way to put together another competitive application for
a coveted Enterprise Zone designation. The due date is Sept. 6.
The final product will be hundreds of pages of
documentation, including a comprehensive marketing plan and a job development
plan, as well as a compilation of inventories such as available buildings
and land (much of this delineated by sophisticated GIS mapping), capital
improvement plans, budgets and support letters. The state wants an applicant
to prove that the county is worthy of the designation by having the ability
to support the effort. This is a huge undertaking.
At stake is a significant financial reward for
local businesses and tremendous opportunity for various unemployed and
underemployed groups including certain eligible veterans. The tangible
benefits translate into thousands of dollars annually in state tax savings
for local companies. A five-year tax credit for hiring an eligible employee
is more than $30,000 per person. Because "tax credits" are deducted directly
from the taxpayers tax liability the revenue is shifted immediately into
new profits.
The motivation behind the creation of California’s
Enterprise Zone Program was to promote investment and job growth in distressed
areas by offering incentives to companies. In addition, by offering the
hiring tax credits, certain employment groups get leverage in the hiring
process.
The other key benefit of the program is a sales
tax credit for companies purchasing new processing or manufacturing equipment.
Again, by offering incentives to manufacturers, they, in turn could grow
and add employment opportunities. Manufacturing traditionally is one of
the highest paying sectors of the economy.
But the value and benefits applies across the
board to almost any company. In addition, local banks, which lend to companies
in the Enterprise Zone, receive a tax savings on the interest paid on those
loans. In some cases, this can add up to hundreds of thousands of dollars.
The California Enterprise Zone Program is the
only incentive the state offers to both existing and new companies seeking
to expand, and it is extremely coveted by areas of the state such as Shasta
County. Enterprise zones also are recognized nationally as benefit areas,
and although many states offer variations of these programs, they often
are sought out by companies seeking new locations.
One of the things that I am most proud of about
our countywide economic development effort is that we have a focused team
that recognizes that the benefits of job creation transcend political boundaries.
Therefore, over the years, despite what I would call "friendly" competition,
we all work together and get along in the sandbox extremely well.
So my personal thanks to the professionals who
are working on this important project beginning with EDC staff and consultants,
the Smart Resource Center, The Superior California Economic Development
District, Shasta College and the Employment Development Department.
In addition, this multijurisdictional effort requires
a memorandum of understanding between our local governments. There is tremendous
staff support from Shasta County, Redding, Anderson and Shasta Lake.
The result of all of this work is that hundreds
of local businesses hopefully will continue to reap the benefits of the
Shasta Metro Enterprise Zone and thus continue to provide better employment
opportunities for local residents.
EDC Forms Alliance with Pooler Partners - 7/26/2006
EDC’s aggressive national outreach to Corporate
Real Estate and national site location consulting firms becomes stronger
by the establishment of a professional relationship with Joy Pooler.
Joy Pooler is the Principal of Pooler Partners,
a consulting firm that focuses on strategic planning and marketing. Joy
has developed and implemented a very successful sponsorship program for
the Industrial Asset Management Council, one of the premier Corporate Real
Estate organizations in the United States.
Joy has more than 25 years of professional economic
development experience in site selection, Brownfield development and marketing.
Her business and community development experience
includes 20 years with the Commonwealth of Pennsylvania where she worked
for the Governors Action Team and directed the SelecSite and SelecTech
Site initiatives.
Pooler will be working with and assisting EDC
President Jim Zauher in a focused promotional program aimed at Corporate
Real Estate Executives and site location consulting firms by arranging
for a series of personal presentations in key markets around the United
States.
Stillwater Property Settlement - 7/14/2006
REDDING, CA — The Economic Development Corporation
of Shasta County and the City of Redding are pleased to announce that there
has been a settlement agreement reached with Mr. Joe Sanders for the acquisition
of the Sanders property proposed as the Stillwater Business Park.
We are very pleased that we were able to come
to a fair and agreeable settlement and feel that the purchase price for
the property is within the parameters of “fair market value”.
We also feel that this agreement will preclude
continued legal costs for both parties and are extremely pleased that this
will provide a major clearance toward the construction of the Stillwater
Business Park.
Study Shows Stillwater has Big Benefits - 6/5/2006
Record Searchlight
By Jim Zauher
An Economic Impact Report for the Stillwater Business
Park will be released later this month and also will be included as a topic
for the upcoming Redding City Council workshop on June 26. The report was
commissioned by the Shasta County Economic Development Corp. and will be
provided to Redding when complete to help clarify local economic benefits
that will be derived from the park.
The results of this report are significant, and
even though the report is still in draft form with some minor editing in
progress, the analysis is complete enough to highlight some important summary
data.
Based on data provided from an University of Texas
at Austin study, conservative job estimates were predicted for the potential
industries at the Stillwater Business Park. The Center for Economic Development
at Chico State University used the data to estimate potential new direct
jobs in general industrial, light industrial and the professional office
and high tech cluster, which are the industries targeted for the park.
Using the study as the basis, the conservative
estimate is that 3,571 direct jobs will be created by Stillwater at 100
percent buildout. This number is less than the traffic studies predicted
in the environmental report, but nonetheless represents a significant value
to the Shasta County economy.
Since it is difficult to forecast how long it
will take to fill the business park, the report estimates benefits based
on 33 percent, 66 percent and 100 percent buildout.
At 33 percent buildout, the analysis predicts
direct benefits to Shasta County at nearly $380 million annually. That
includes 1,036 direct jobs, and the number of direct and indirect jobs
is 2,993. The average income per worker would be $41,000 per year.
At 100 percent capacity, the revenue to Shasta
County businesses will be more than $1.3 billion dollars per year, with
annual new personal income in the county of $378 million per year; enormous
numbers to say the least. Average wages increase to $45,000 annually.
Which business are the primary beneficiaries of
this new source of economic revenue? Some of the top sectors receiving
value include residential real estate sales, eating and drinking establishments,
hospitals, doctors and dentists, banking and truck transportation. The
annual new revenue ranges from a high of $40 million for residential real
estate to a low of $7.3 million to credit and finance companies. Hardly
chump change.
In addition, there is a significant value to local
government tax revenues. The SHASTEC Redevelopment Agency would be a major
benefactor of the project. (SHASTEC is a redevelopment partnership between
Shasta County, the City of Anderson and the City of Redding.) At 33 percent
buildout, SHASTEC will receive more than $3.8 million per year in new annual
property tax revenue; more than $11.7 million at 100 percent buildout.
These are new property tax dollars that will be captured for local control
and local reinvestment for local benefit.The bottom line is that primary
industries, such as the ones targeted for Stillwater, provide the highest
multiplier effects and highest wages of any industry sector.
Anyone seriously interested in the substance behind
the proposed Stillwater Business Park should attend the City Council workshop
on June 26. At the session, city staff will provide its updated financial
and construction plan and experts will offer opinions on the value of the
park, the marketability of the park and the general trends and climate
for those industries targeted. The workshop will provide answers to legitimate
questions.
When the Mountain Lakes Industrial Park was built
in the 1960s, it took strong private/public leadership. Stillwater is the
next generation of Mountain Lakes, and fortunately we still have that strong
leadership in our community; leadership willing to make difficult decisions
and take the risks to ensure that our economy will support our future needs.
Stillwater Business Park Annual Effect
33 percent buildout:
• New business revenue: $378.8 million
• Personal income: $101.3 million
• Direct jobs: 1,036
• Average wages: $41,000
100 percent buildout:
• New business revenue: $1.335 billion
• Personal income: $378.1 million
• Direct jobs: 3,568
• Average wages: $45,000
Source: Center for Economic Development at Chico
State University
Redding's Stillwater Business Park Receives City
Council Approval - 5/8/2006
REDDING, CA —The City Council of Redding unanimously
approved the environmental impact reports (EIR-EIS) for the Stillwater
Business Park. Stillwater is a fully-entitled, shovel-ready, 700-acre business
park designed for large office and industrial users. Sites will range in
size from three to 95 acres.
The Stillwater Business Park will take advantage
of the fact that large parcel sites are scarce on the west coast.
“We are pleased that the environmental process
has been completed and that The Economic Development Corporation of Shasta
County, in partnership with the City of Redding, can begin marketing the
project while construction begins,” said EDC President Jim Zauher.
The Stillwater Business Park is strategically
located on Interstate 5 and equidistant between Seattle and Los Angeles.
There will be numerous other incentives for companies seeking west coast
locations including Enterprise Zone state tax credits and low cost municipal
electric utility-rates, sometimes up to 40% lower than other parts of the
state.
According to EDC President Jim Zauher, Stillwater
will provide a unique product for companies seeking to build their plants
expeditiously to get their products to market. By having completed a Master
Environmental Document, essentially, Stillwater will be one of the few,
if not the only large site complex that is truly “shovel-ready.”
Construction of Stillwater Business Park is scheduled
to begin in late 2006 with completion expected in 2008.
Boasting an excellent quality of life, unmatched
recreational opportunities, excellent schools, affordable housing, first-class
healthcare, and a welcoming business environment, Shasta County is the
preferred location for business and industry in the northernmost (or “Upstate”)
region of California.
Application for New Enterprise Zone Full Speed
Ahead - 5/1/2006
A stalemate in the legislature for the past two
years has stalled attempts to pass legislation that would extend Shasta
County’s Enterprise Zone for five years. 23 zones statewide are affected.
As a result, a decision has been made locally
to vigorously pursue an application to create a new enterprise zone that
could be designated by the time the existing zone expires in November 2006.
The state agency overseeing the program has been forced into action to
administer the new application process because all of the zones affected
will lose their designations, all of which will be up for grabs by any
community in the state who wants to apply. It is a competitive process.
The comprehensive application must be completed
and submitted by September 6. The existing Enterprise Zone application,
which was completed in 1990, contains over 175 pages of documentation.
The EDC along with the cities and the county will be pressed once again
to meet an extremely tight deadline, even with the use of a consulting
firm, which has been hired to assist in the process.
The EDC Board of Directors voted to authorize
the expenditure of Special Project funding under Shasta 2011 toward this
very important business assistance program.
Site Selection Survey Results Tell Real Story
on Business - 2/5/2006
Record Searchlight
By Jim Zauher
The release this month of Area Development Magazine's
Annual Corporate Site Selection Survey provides a legitimate snapshot of
the "real" factors that comprise the site location decision process.
The question arises about how these factors relate
to our own local competitiveness and how Shasta County matches up to the
key elements identified in the survey.
This might "ruffle some feathers," but the survey
does not include any quality of life factors in the top 16 factors rated
as very important or important.
Oddly enough, as important as it is for those
of us who live here to preserve our quality of life and enhance it, for
the most part it is at the tail end of the list when it comes to corporate
site selection. Now that may feel like a dagger to the heart for those
who promote libraries, parks, museums, etc., but the facts from the survey
are clear and relevant.
Quality of life is a factor, but never at the
top of the list.
According to Ed McCallum, senior principal at
McCallum Sweeney Consulting Inc., "In a nutshell, every quality of life
factor was considered less important than in the previous year for one
simple reason: If you cannot survive in the marketplace, it is irrelevant
how nice the place is where your company failed."
Quality of life is meaningless if a company cannot
be profitable, grow and prosper. Companies seeking new locations often
develop an internal matrix of selection criteria, and although there may
be a variance from one industry to the next, for the most part, as the
survey results show, there are some key factors that generally drive the
decision-making process.
If the labor force does not fit, if there are
no buildings or sites and if access to the markets is not adequate, quality
of life does not even come into play. However, once the key business factors
are satisfied, quality of life becomes a stronger consideration, especially
as it relates to convincing the decision makers that because of it, the
area will continue to be vibrant and grow.
Quality of life also will become a higher value
of consideration if the company has ownership that will be moving to the
new location, but it still does not override the importance of the business
case being the primary consideration.
All figures are percentages and are the total
of "very important" and "important" ratings of the Area Development Corporate
Survey and are rounded to the nearest tenth of a percent.
In the top categories, there are a number of factors
in which I believe Shasta County rates high, others in which we are deficient
but may be out of our control, and still others in which we could use some
work.
On the plus side, Shasta County has excellent
highway accessibility and excellent proximity to major markets located
equidistant between Southern California and the Pacific Northwest. Our
availability and cost of land is good and will be enhanced greatly with
Stillwater's completion. Although our labor costs are competitive for California,
the availability of "skilled labor" needs attention. Shasta College, along
with other educational and training institutions, can be assets as the
demand for training continues to grow.
The county's energy availability and costs are
a big asset with two locally owned municipal utilities that can offer sometimes
significantly lower rates, and our telecommunication infrastructure is
good and improving.
The factors that are out of our control are state
incentives, corporate tax rate, tax exemptions and environmental regulations.
In the quality of life categories, some of these
are in the "eye of the beholder," but certainly we look very good for recreation,
health facilities, climate and low crime rate, especially relating to gang
violence.
Although our housing costs have gone up with the
market, our availability of housing is very good. Cultural amenities have
greatly improved, we have numerous distinguished schools and higher education
options are improving with Simpson University, National University and
the Shasta College University Center.
Overall, Shasta County can provide a competitive
alternative, especially in California, where access to the market can be
a major consideration for certain types of companies. Paying attention
to surveys like these are also of great value by creating an awareness
of what it takes to be competitive.
EDC Supports Enhanced Air Service Opportunity
- 11/7/2005
SHASTA COUNTY, CALIFORNIA—The Economic Development
Corporation of Shasta County is pleased to announce financial support in
the amount of $1,000 as part of Redding Municipal Airport’s participation
in a US Department of Transportation Small Community Air Service Grant
Application that will potentially enhance air service opportunities for
Shasta County, as well as other areas of California.
The grant, in the amount of $250,000, which has
been approved, is being funded to complete a route study in California
and to identify potential airlines that might be interested in providing
intrastate passenger airline service. The grant was awarded officially
to the Coalition of California Airports which is being sponsored by the
San Joaquin Council of Governments.
Along with San Joaquin and the EDC of Shasta County
there are seven other private economic development groups in California
that are also participating in the cash match requirement for the grant.
Other communities involved in this effort to add air service include San
Luis Obispo, Sonoma County, Stanislaus Economic Development, and Visalia
Economic Development Corporation.
The Economic Development Corporation of Shasta
County promotes enhanced air service as part of its Shasta 2011 Business
Plan and has worked with the Redding Municipal Airport on other air service
projects, including the newest Horizon Airlines direct service to Los Angeles.
Antelope Valley, California Ranked Among Top Locations
by Forbes -
KERN COUNTY, CA —The Economic Development Corporation
of Shasta County, California is pleased to announce that Forbes magazine
has ranked the city of Redding among the “Best Small Metros” for job growth
in its “2005 Best Places for Business and Careers” article. The Palmdale/Lancaster
MSA, which includes Kern County, with a population of 379,000, ranked fourth
in job growth out of a total of 168 small cities ranked.
Redding also ranked in the top ten for “Net Migration”
(seventh) and number 24 for “Income Growth.” All rankings were among a
total of 168 small cities. The rankings for job growth, income growth and
net migration were based on five-year annualized figures. For its annual
rankings, Forbes analyzes America’s 150 largest metros and 168 smaller
areas.
“We are very pleased that Forbes, one of the world’s
premiere business publications, has realized that California City in the
Antelope Valley is a growing location in California for business and industry,”
said Jim Quiggle, President of the Economic Development Corporation of
California City in Kern County. “We are pleased with the job and income
growth but realize we need to bring more and better paying jobs to the
region.”
According to labor market information provided
by the California Employment Development Department’s (EDD) Current Employment
Statistics (CES) survey, for total industry employment, not seasonally
adjusted, the average five-year job growth in the Antelope Valley MSA was
2.9 percent. This was more than double the statewide job growth average
of 1.1 percent during the same period and more than seven times than the
0.4 percent growth reported nationally for non-farm employment seasonally
adjusted.
Previously, both Money Magazine and Expansion
Management Magazine have recognized the Kern County metro area for its
quality business environment.
One of the questions that most often drive the
search for a new business location, according to Quiggle, is whether the
candidate location has the workforce needed. According to a recent study
conducted by The Pathfinders, a site selection consultant for many of America’s
largest corporations, the total number of employees available for employers
was just less than 15,000. There were 8,000 underemployed workers, 5,800
unemployed persons seeking work and 1,100 persons not working, but contemplating
re-entering the workforce. The underemployed workers might also be termed
“upgraders.” They desire to move into an upgraded job and appear to possess
the skills, education and experience enabling them to do so.
The Kern County workforce has received high marks
for productivity. Many of the companies in Kern County report that their
operations compare favorably to other locations in terms of profitability
and production. According to The Pathfinders, most of the companies interviewed
in Kern County reported turnover to be low, also boosting productivity
and profitability.
California City is strategically located on Highway
14, Highway 58 and Highway 14 equidistant between Ridgecrest and Palmdale/Lancaster.
Boasting a high quality of life, unmatched recreational opportunities,
excellent schools, affordable housing, first-class healthcare, and a welcoming
business environment, the county is a preferred location for business and
industry.
Administrative Office and Hours
California City EDC
8001 Cal City Blvd.
California City Ca 93505
(760) 373-2007
email inquiry form
map and driving
instructions to office
Office hours:
Monday - Friday
8:00 a.m. to 5:00 p.m. PST
Read the Historical
Summary of Economic Development of California City
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