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Listed by ED-Lert Mailing Date

November 22, 2005
November 8, 2005
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Articles from the November 22, 2005 ED-Lert Issue

Act Now…Get Your Projects Listed
For decades, Site Selection has tracked business expansion activity. Well known rankings primarily based on New Plant activity, including the Governor’s Cup, the Competitiveness Award, Top Groups and Top Deals and the State Business Climate rankings are published each year. In a few weeks, Site Selection will tally New Plant data records from around the country and the world. Please make sure your area’s activity is included in pertinent editorial coverage for 2006 by submitting your area’s records. The deadline for submitting paper records of new or expanded facilities is December 9. Site Selection will accept electronic files until December 16 and will credit qualifying projects announced after these dates to your area’s 2006 numbers. The process for submitting projects is simple. Click here to view the revised guidelines explaining the types of projects Site Selection tracks and those they do not. Please note the clarifications outlined in the spec building reporting guidelines. Click here to view and download a template with the needed fields. Please contact Mark Arend at (770)-325-3438 or mark.arend@conway.com for further assistance.

Third Quarter 2005 National Survey of Economic Development Professionals

Results showed:
Prospects were down during the third quarter 2005, while announcement activity increased.

  • Prospect and announcement activity during the next six months is expected to decrease compared to the previous quarter, however there is still a positive feeling about future activity.
  • Project Quality displayed mixed results with real estate absorbed and capital investment increasing, while total payroll, average salary, and jobs are decreasing.
  • Respondents felt that the national economy became weaker during the last quarter, however their local economies have become stronger.

    Complete survey results found at www.gpec.org/edsurvey/results.html



    Expansion Management Magazine Adopts New Frequency Schedule
    Expansion Management, a publication for executives engaged in the business expansion and relocation process, has decided to reorient the publishing frequency schedule of its flagship publication, Expansion Management magazine, in 2006, switching from monthly to seven times a year. The move will allow the multi-media franchise to focus its efforts on a broader range of venues serving the business expansion and relocation field. A digital version of Expansion Management will also continue to be available to subscribers.

    “For a long time, Expansion Management was primarily a print publication, and all of our efforts were focused on the print product itself,” said Gorton W. Wood, longtime publisher of Expansion Management. “Over the past several years, though, we have grown dramatically in our Internet, conference, and data offerings in our continuing effort to serve the information needs of our corporate executive subscribers.”

    Beginning with the January-February 2006 issue, Expansion Management magazine will publish every other month, in addition to its annual resource directory issue, The Atlas & Guide, which Expansion Management will continue to publish in April. In addition, the magazine will continue to publish its various annual magazines, such as Strategic Moves and Military Communities of Excellence, as well as Leadership For Manufacturers, the official publication for The National Association of Manufacturers (NAM).

    Expansion Management magazine is published by Penton Media, www.penton.com.

    For further information, please visit http://news.expansionmanagement.com/



    Paul Venosdel Leaves USDA, Rural Development Post in California

    If Paul Venosdel is losing any sleep these days, he’s confident it’s for all the right reasons.

    After nearly four years of leading the state’s Rural Development agency, Venosdel has left the agency to start a lobbying and grassroots advocacy business with a longtime colleague from Washington, D.C.

    Click here
    for the complete article. To learn about Paul's new business, read the full press release here.



    Did You Know?

  • CALED Board Member Bruce Kern, Executive Director of the East Bay ED Alliance for Business, was appointed to the State of California Economic Strategy Panel by Senator Pro Tem Don Perata.
  • CALED Board Member Cynthia Amador, President/CEO of CHARO Community Development Corp., was awarded the YMCA of Greater Los Angeles, Society of Benefactrix Silver Achievement Award.
  • Rabobank Executive David Takata was appointed to the CALED Board of Directors. David will lead Rabobank's national business banking unit.



    Economic Developers Appreciated

    “Did I ever tell you how much I appreciate what each of you do? If not, let me take this opportunity to say “thank you.” As an economic developer, you have a unique vantage point on vital economic, business, and community issues. No other profession that I know of places you at the very important intersection of so many interesting and exciting developments and activities related to communities, businesses, industries, technology, human relations, finance, and many other things. What you do is eminently important to society.”

    - Don Iannone, Economic Development Futures Web Journal



    Gov. Small Biz Advocate Appointment

    Growing up, Dennis Trinidad’s family owned restaurants and pool halls in Watsonville. As an adult, he spent 31 years with Pacific Gas and Electric, followed by a handful more as president and chief executive officer of the Sacramento Hispanic Chamber of Commerce. Both his small-business roots and his big-business workplace lured him out of his second retirement to take on his current role: the State’s newly appointed small-business advocate. Trinidad, named to the $70,000 job last month by Governor Arnold Schwarzenegger, says he wants to be the eyes and ears in the Capitol for California’s small business owners.



    San Gabriel Valley Leads in Job Retention/Expansion


    The San Gabriel Valley www.valleyconnect.com is leading the Los Angeles County in job retention and attraction. According to the LAEDC, since 1996, the San Gabriel Valley has retained and attracted more than 25,000 jobs.



    State Reduces Disability Tax Rate


    California regulators will reduce the State Disability Insurance rate for 2006 and keep the rates for unemployment insurance and employment training unchanged from their 2005 levels. The disability rate, typically listed as SDI, is 0.8 percent for 2006, with a maximum amount to withhold of $635.34. In 2005, the rate was 1.08 percent with a withholding maximum of approximately $858. The taxable wage limit stays at $79,418 per employee per calendar year. Other rates remained unchanged from 2005.



    Data Source


    DataPlace aims to provide housing and community development professionals with a convenient one-stop shop for relevant data, and offers some sophisticated, but easy-to-use tools for generating maps, tables, and charts. Visit www.dataplace.org to learn more.



    Real Estate Links


    Commercial Real Estate Reports
    Reports on office, industrial, retail, and apartment real estate markets for major metropolitan areas.
    www.rcanalytics.com/home.asp?stay=Y

    Apartment Market Outlook
    Periodic news releases for 40 metro areas on apartment market conditions.
    www.marcusmillichap.com/Research/News.asp

    Regional Overviews
    Quarterly market reports for 50 metro areas, for four types of real estate (apartment, office, retail, industrial). Data includes vacancy rate, asking rent, and supply demand trends. Reports provided by Reis.com.
    www.realestatejournal.com/regionalnews/reiscenter/



    USDA Supports Rural Partnerships

    There is a strong federal and state government partnership to address unique challenges and problems in California’s rural communities. Without fanfare, U.S. Department of Agriculture Rural Development works with individuals, groups, nonprofit business development and housing organizations, law enforcement, schools, libraries, healthcare facilities and others to funnel millions of dollars in grants, loans and technical assistance to rural communities. (Opinion Article – Imperial Valley Press) Visit www.ivpressonline.com/articles/2005/10/21/opinion/voice/voice01_10-21.txt to learn more.




    Articles from the November 8, 2005 ED-Lert Issue

    Legislative Update

    By a lopsided margin of 376-38, the House of Representatives, with the support of the White House, last Thursday approved H.R. 4128, dealing with eminent domain, and sent it on to the U.S. Senate for consideration. This bill would punish state and local governments that use eminent domain to obtain or "subsequently use" private property for economic development, by making those governments ineligible for federal economic development funds for a two-year period. Specifically what federal funds would be lost to users of eminent domain is unknown, because that list of programs would be developed by the Attorney General after the bill becomes law. In one victory for the cause of redevelopment, an amendment offered by Congressman Gary Miller of Brea that exempts redeveloping Brownfield sites from the bill’s definition of “economic development” was approved. 44 members of the California delegation voted in favor of the bill, 5 opposed it, and 3 did not vote. The following five California legislators should be thanked for supporting redevelopment and upholding the principle of local government control: George Miller, Nancy Pelosi, Pete Stark, Henry Waxman, and Lynn Woolsey. There is no indication at this time as to when the Senate will take up the issue, but it is not too early to register opposition to H.R. 4128 and similar federal measures with Senators Barbara Boxer and Dianne Feinstein. As a reminder, the second interim hearing on redevelopment in the State Legislature will be held on November 17 from 9:30 am to 1:00 pm in Room 4203 of the State Capitol. Legislative proposals in the following five subject areas will be discussed: Statutory definition of blight, local redevelopment agency practices, State oversight of redevelopment agencies and activities, litigation and court procedures, and use of eminent domain. This hearing will be a joint hearing by five committees: Senate Local Government, Senate Transportation & Housing, Assembly Housing & Community Development, Assembly Local Government, and Assembly Judiciary. (By John F. Shirey, Executive Director of the California Redevelopment Association)



    Westly Pushes Pension Funds for Communities

    State Controller Steve Westly will push 130 California public pension funds, representing $170 billion in assets, to increase investment in underserved communities. Those 130 funds comprise all of the state’s public pension funds with the exception of California Public Employee’s Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTRS). CalPERS and CalSTRS are the nation’s first and third largest public pension systems respectively, and represent combined assets of more than $300 billion. “For California to be successful, every Californian must have an equal shot at success,” Westly said. “Our economy won’t move forward unless we invest in our underserved communities – it’s good for pension funds, and it’s the right thing to do for California.”




    Congratulations to Upstate ED Officers

    Congratulations to the new officers and executive committee members for the Upstate California Economic Development Council!
    Chair: Bobbi Park, Placer County
    Vice-Chair: John Fleming, Yuba County
    Treasurer: Marie Liscome, Eureka
    Secretary: Peter Jukusky, Colusa EDC
    President: Greg O’Sullivan, Red Bluff




    New Energy Commission Building Standards

    New energy efficiency building standards went into effect in California on October 1, 2005 – standards that will reduce energy use in the state by an estimated 180 megawatts of electricity load and 8.8 million therms of natural gas each year. Information on the Title 24 Energy Efficiency Building Standards is available on the Energy Commission’s website at www.energy.ca.gov/title24/2005standards/.

    The California Energy Commission staff will conduct a workshop to present the goals, plans, and expected scope for the 2008 Building Energy Efficiency Standards for Residential and Nonresidential Buildings and obtain public suggestion and comment on potential revisions to the Standards. Visit www.energy.ca.gov/title24/2008standards/notices/index.html to learn more.




    Guide for Financial Opportunities for Businesses

    A link is provided below to a web version of the Controller's Office Guide for Financial Opportunities for Businesses.
    http://cccewd.net/files/resources/Small_Bus_Guide.pdf




    Guide to Federal Funding

    A new federal fiscal year started October 1st for over 1,500 federal programs offering funding for many community programs. Although the recent hurricanes changed and delayed federal budget priorities, millions of dollars are currently available, and additional funding is likely. The almanac is available for $235 (prepaid) and can be purchased from www.cdpublications.com/shop/catalog/product_info.php?products_id=391 or by calling 1- (800) 666-6380.




    Articles from the October 25, 2005 ED-Lert Issue

    PG&E Supports Economic Vitality of Communities

    PG&E awarded almost $300,000 in grants to 60 economic development programs. For more information regarding PG&E’s economic development programs, please visit their website at www.pge.com/edgrant.



    Fresno County Tops List of Economic Impact Grant Recipients

    USDA Rural Development has awarded 17 Economic Impact Initiative (EII) Grants. Totaling $675,778, these grants will improve safety, crime prevention, healthcare, and educational resources in rural communities. Grants were awarded based on communities that had more than 19.5 percent unemployment. USDA Rural Development State Director Paul Venosdel noted the help of Vicki Bradshaw, Secretary of the California Labor and Workforce Development Agency, and her staff. “Vicki Bradshaw and her staff were especially helpful in providing the latest data on unemployment in rural communities,” said Venosdel. "This shows that states and federal officials are closely working together on behalf of rural residents.” Further information on rural programs is available at www.rurdev.usda.gov/ca.



    Online Resource Provides Assistance for Trade Management

    The Monterey Bay International Trade Association (MBITA) is participating in a regional collaborative program entitled Global California. Global California is an easy to use online solution that combines the resources and expertise of four trade promotion and three economic development partner agencies. Global California can assist your company in each step of the export or import process. For more information, visit www.globalcalifornia.org.



    Participate in Economic Trends Survey and Win an iPod Shuffle

    Participate in this national survey of Economic Development peers and become eligible to win an iPod Shuffle MP3 player. This survey will only take a few minutes to complete and responses will be kept confidential. Submit responses no later than November 1st. Click here to access the survey.



    High Costs Squeeze Manufacturing Profits

    The National Association of Manufacturing Institute found that increased operating costs hold a direct impact in profits. Also noted was that other structural costs identified in an earlier NAM/MAPI study – especially rising tort, regulatory and tax costs – also contribute to the profits downturn. A link to the new study is available at www.nam.org/costsqueeze.



    California Business Investment Services are Moving

    The new CalBIS address is:
    801 K Street, Suite 2100
    Sacramento, CA 95814

    The new CalBIS phone numbers are as follows:
    (916) 322 - 0614 fax
    (916) 322 - 0000 main

    Dave Frietas
    (916) 322 – 0235 Direct
    email: dave.frietas@labor.ca.gov

    Dave Snyder
    (916) 322 – 0412 Direct
    email: dave.snyder@labor.ca.gov

    Greg Hribar
    (916) 322 – 0405 Direct
    email: greg.hribar@labor.ca.gov

    Greg Gibson
    (916) 322 – 0254 Direct
    email: greg.gibson@labor.ca.gov




    Articles from the October 18, 2005 ED-Lert Issue


    Intelligent Community of the Year Awards

    The Intelligent Community Forum is looking for applicants for their 2006 Intelligent Community of the Year Awards. The deadline to apply is Thursday, October 20, 2005.

    For further information, please visit www.intelligentcommunity.org/html/award_criteria.html.


    Assembly Committee Hearings Continue

    October 19: Select Committee on Growth and Infrastructure – 10 a.m., Concord City Hall, City Council Hearing Room, 1950 Parkside Drive, Concord.
    This hearing will discuss the state’s challenges regarding its transportation network, education facilities, and water resources over the next 20 years.
    October 26: 1 p.m., Weingart City Heights Library, 3795 Fairmount Ave., San Diego.
    This hearing will discuss the subject of redevelopment and blight.
    November 17: 9:30 a.m., John L. Burton Hearing Room (4203), Sacramento.
    The hearing will discuss redevelopment reforms.
    October 27: 10 a.m., John L. Burton Hearing Room (4203), Sacramento.
    The subject of this hearing will be liquefied natural gas.
    November 9: 10 a.m., Moscone Convention Center, San Francisco.
    This is an informational hearing on intelligent transportation systems (ITS).
    November 15: 9:30 a.m., Elihu M. Harris State Office Building, 1515 Clay Street, Oakland.
    This informational hearing will discuss goods movement and assess California’s needs and consequences for the 21st Century.
    November 17: 9:30 a.m., John L. Burton Hearing Room (4203), Sacramento.
    The hearing will discuss redevelopment reforms.



    Tulare County Has Had a Very Good Year

    Unemployment is down, housing starts are setting records and the county will probably set records in terms of new jobs created and attraction of new businesses. The Tulare County Economic Development Corporation is a publicly funded entity supported by the county and its cities for the purpose of promoting business and economic growth. The EDC is responsible for much of the county’s recent growth. Paul Saldana, CEO, has been guiding the efforts of the EDC for five years with the philosophy that his organization’s job is to serve the customer – businesses that are seeking to move. In meeting their needs, Saldana believes the goals of the EDC will be met.

    An unpromising trend in Tulare County is the defection of young, bright people to other places for their education and employment. Saldana is disappointed that this trend leads away from a vocational focus and almost exclusively to an academic, college prep type of focus. Saldana understands that not every child will attend a four-year college and pursue a degree. However, every child does have an opportunity to pursue a good career in producing or making something.

    The EDC has promoted economic development and marketing on a regional basis for sometime. Collaborating with other parts of California exposes Tulare County to more businesses. At the same time, various industry groups, decision makers, site consultants and real estate brokers recognize Tulare County. In his first two years, Saldana traveled and spoke with newspaper editors about the high- unemployment rate. Saldana believes that Tulare County has been well funded thanks to investment from the public sector, and has recently received some investment from the private sector. This year, the EDC is going all-out to gain investment from the private sector as their contributions are necessary for further growth. (Excerpts from the Tulare Advance-Register.)




    CALED Member Creates Website for Business Development


    Washington State’s new business development website was recognized for its user-oriented content at the International Economic Development Council (IEDC) Annual Conference. Created by Chabin Concepts, the website received IEDC’s Economic Development General Purpose Website Award at the September 27 awards breakfast. Chabin president, Audrey Taylor, said this award is a particular honor because it means recognition by their peers. The winning website provides easy access to community data, search features to help businesses find counties in Washington matching their location criteria, and a searchable GIS-based site and building database. “We interviewed site selectors to ask what they wanted in a website. The content is information driven,” said Taylor.




    Incentives Go to Court

    The U.S. Supreme Court announced it will consider the case of Cuno vs. DaimlerChrysler. Last fall, the U.S. Court of Appeals for the Sixth Circuit ruled that an Ohio investment tax credit given to a Jeep plant in Toledo, Ohio violated the Commerce Clause of the U.S. Constitution. The ruling has prompted massive but little-reported corporate blowback. Two corporate coalitions (formed by the Council on State Taxation and by Ernst Young) seek to overturn the decision, including the possible use of federal legislation. The case has also informed at least two subsequent lawsuits, one in Minnesota against the state’s JOBZ program and the other in North Carolina against the notorious Dell deal in Winston-Salem. The Supreme Court said it will decide how states may use tax incentives to lure companies into building car plants and other projects, a major test of job creation strategies nationwide. Justices will review an Ohio tax program which had been used thousands of times over the last decade until the appeals court ruled that it was unconstitutional.




    AEDO Program Recognizes Placer County

    The IEDC congratulates the Placer County Office of Economic Development who recently earned re-accreditation through the Accredited Economic Development Organization (AEDO) program. Originally accredited in 1999, IEDC re-accredited the County in 2002. In two of the three years, the county has led the nation in job growth among large counties. The office has facilitated the location of a $3 billion LEED-certified ski and golf destination village and worked with area universities on development projects totaling over $100 million. In addition, the Office developed an award-winning marketing program for technology-based economic development, and completed business retention and expansion plans for three communities. The AEDO program provides economic development organizations with independent feedback on their operations, structure, and procedures, and recognizes excellence in local economic development efforts. AEDO accreditation informs the community and prospects that their investments and businesses are in good hands. Twenty-five organizations are accredited nationally.

    For more information on how to become an accredited organization, please visit the AEDO webpage at http://www.iedconline.org/?p=AEDO or contact Alex Iams at aiams@iedconline.org.




    SACTO Earns AEDO Accreditation

    The Sacramento Area Commerce and Trade Organization (SACTO) has been accredited by IEDC through the Accredited Economic Development Organization (AEDO) program. SACTO is a private, non-profit and member-supported organization, and the leading facilitator of economic development for the Sacramento region. The accreditation follows a site visit conducted by a team of economic development professionals from IEDC. The team was impressed with the high level of professionalism and exceptional leadership at SACTO, as well as the relationships SACTO maintains with other organizations in the area. In the past two years, SACTO has helped Universal Technical Institute, Northrup Grumman Mission Systems and First Data Corporation with decisions to locate or expand, adding new facilities and thousands of jobs to the region.




    New Energy Action Plan for California


    The California Public Utilities Commission has adopted the second Energy Action Plan for California. The plan was developed by California’s energy-related agencies and identifies further actions necessary to meet our energy needs. To access the plan, visit www.cpuc.ca.gov/PUBLISHED/REPORT/49078.htm.




    State-by-State Narrative Reports on Educational Issues


    The think tank Center for American Progress composed a series of new reports regarding education issues. The reports synthesize a wide range of publicly available data from external sources to rank states from first to fiftieth in a series of measures of educational performance. The reports can be accessed here.




    New Area Code Will Take Effect Next Summer


    The California Public Utilities Commission approved adding an area code to the area currently served by the 310 area code. New service that begins after August 26, 2006 may be assigned the 424 area code. To read the decision, click here.




    IEDC Names Best Websites


    The International Economic Development Council (IEDC) chose these best-practice websites as models for economic development organizations to follow.

    Top Special Purpose Website by Population
    Population 200,000 or more (tie): Greater Oklahoma City Chamber (www.OKCedis.com) and City of Chicago Dept. of Planning and Development (www.cityofchicago.org/smallbusiness)
    Population 50,000 to 200,000: Kennewick, Washington (www.KennewickProspector.com)
    Population 50,000 or less: Mansfield Economic Development Corp. (www.MansfieldiSites.com)
    Top General Purpose Website by Population
    Population 200,000 or more: Washington State Business and Project Development (www.ChooseWashington.com)
    Population 50,000 to 200,000: Tinley Park, Illinois (www.tinleyparkbiz.biz)
    Population 50,000 or less: Copperas Cove Economic Development Corporation (www.copperascove-edc.com)




    Links to Online Information are Changing

    The following pages have been moved with their old and new URLs:
    Under the Microscope, Biotechnology Jobs in California
    California Occupational Guides
    California Occupational Guides in Spanish
    Archived California Occupational Guides
    WIA Planning Information Packets
    Size of Business

    These data are available on the LaborMarketInfo website at www.labormarketinfo.edd.ca.gov/.




    Articles from the October 4, 2005 ED-Lert Issue

    DCI's Winning ED Marketing Strategies Report Released
    The Corporate View: Winning Strategies in Economic Development Marketing is based upon a 2005 survey of 207 senior-level American corporate executives. Topics covered range from the best marketing techniques in economic development to the use of the internet in site selection decisions to executive's impressions of the best business climates in the United States and Western Europe. And for the first time, the survey audience was expanded to include executives from midsize companies. Earlier DCI surveys were conducted in 1996, 1999, and 2002. (Keep in mind this report measures people's perceptions.) For more information, please visit http://www.dc-intl.com/WinningStrategies.cfm.



    CALED Board Member Bruce Ackerman Appointed to Community Redevelopment Agency


    If his appointment as a board commissioner for the Community Redevelopment Agency is approved by the L.A. City Council, Bruce Ackerman will spend his time looking for ways to renovate small, specific buildings and properties that have been under-used in addition to managing larger neighborhood conversions. Mayor Antonio Villaraigosa told Ackerman, “We’re specifically asking you because we want somebody who’s got an economic development foundation and background to be on that board to make sure that we’re focused on economic prosperity as well as community benefit.” If his nomination is confirmed, Ackerman expects to spend his first weeks of service getting to know his fellow commissioners and familiarizing himself with the tools in the CRA’s arsenal. (Excerpts from “CRA Appointee Seeks Different Strategy” by Jonathan Colburn for the San Fernando Valley Business Journal Staff)




    Chamber Urges Governor to Veto ‘Job Killer’ Bills


    In the closing weeks of the session, the Legislature sent eight California Chamber-opposed “job killer” bills to the Governor. These bills include AB 48 (Lieber D; Mountain View) regarding minimum wage increase, AB 169 (Oropeza D; Long Beach) regarding excessive litigation, AB 391 (Koretz D; West Hollywood) regarding UI benefit expansion, AB 875 (Koretz D; West Hollywood) regarding Government agency potential harassment of employers, AB 1310 (Nunez D; Los Angeles) regarding severance offers and increased litigation, SB 174 (Dunn D; Garden Grove) regarding new “sue your boss” lawsuits, SB 399 (Escutia D; Norwalk) regarding health care cost increase, and SB 833 (Bowen D; Redondo Beach) regarding onerous fax communication restrictions. The Chamber urges business leaders to write the Governor and request a veto, as all of these bills will negatively affect California jobs. Please visit the Chamber web site for more information. The Chamber also asks that a copy of these veto request letters be faxed to their office. Fax Dave Kilby at 916-444-6685.




    California Fax Bill Viewed as Restrictive

    On September 8, the California legislature approved a bill that would require businesses to obtain “express permission” before sending any fax communications. The California bill, while exempting nonprofit, trade, and professional associations, is viewed as a job killer by the state’s business community. The California Chamber of Commerce has urged Governor Arnold Schwarzenegger to veto the bill. Valerie Nera of the California Chamber said the bill “will make California unfriendly to business and a more costly state to do business in by placing unnecessary burdens on employers.” Governor Schwarzenegger has until October 9, 2005 to act on the bill. Click here for the California Chamber’s website.




    Legislative Update: Redevelopment Interim Hearings Scheduled

    Two interim hearings regarding redevelopment issues have been scheduled. The first will occur on Wednesday, October 26 from 1:00 pm to 4:30 pm at the Weingart City Heights Library, 3795 Fairmount Avenue., San Diego. The subject of this hearing is “Redevelopment and Blight.” Witnesses will be asked to present examples of successful redevelopment projects and examples of “abuse” of the current legal definition of blight. Eminent domain issues are also expected to be raised. This will be a joint hearing between the Senate Local Government Committee (Christine Kehoe, Chair), the Senate Transportation and Housing Committee (Tom Torlakson, Chair), and the Assembly Housing and Community Development Committee (Gene Mullin, Chair).

    The second hearing will be held on Thursday, November 17 from 9:30 am to 12:00 noon in Room 4203 of the State Capitol. The subject of this hearing is “Redevelopment Reforms.” Various proposals for changing redevelopment laws and eminent domain issues are expected for discussion at this hearing, as well.



    Economic Update: Labor Force and Industry Employment Data for August 2005


    California’s seasonally adjusted unemployment rate was 5.2 percent in August, unchanged from the revised rate in July, and down 0.9 percentage points from one year ago. In comparison, the U.S. unemployment rate was 4.9 percent in August. There were 14,808,800 seasonally adjusted jobs in total nonfarm industries in August, up 17,200 jobs from last month. California nonfarm businesses have added 223,300 jobs to payrolls (1.5 percent) since August 2004. Sectors with increased employment, in order of job gain, were: trade, transportation and utilities (7,400); leisure and hospitality (5,300); construction (4,900); educational and health services (2,100); financial activities (2,100); professional and business services (1,600); and natural resources and mining (300). Sectors with decreased employment included: information (4,000), manufacturing (1,500), and other services (1,000).
    The lowest unemployment rate among California counties in August was 3.8 percent in Orange County. In all, 34 counties had rates below 6.0 percent. The highest unemployment rate in August was 18.0 percent in Imperial County. In total, 6 counties had rates above 8.0 percent. View the not seasonally adjusted unemployment rates by county for August 2005 online at http://www.calmis.ca.gov/file/lfmonth/0508pcou.pdf.



    Extended Mass Layoff Actions Occur in California


    In the second quarter of 2005, California employers took 132 mass layoff actions. These actions resulted in the separation of 25,532 workers from their jobs for at least 31 days. Both the total number of layoff events and the number of separations were sharply lower than in the second quarter (April through June) of 2004. The year-over declines were most notable in administrative and supoort services; transit and ground passenger transportation; and food manufacturing. Extended mass layoffs that involve the movement of work within the same company or to a different company, domestically or outside of the United States, occurred in 11 percent of the non-seasonal layoff events and worker separations. Employers who anticipated recalling workers involved mass layoff actions, 43 percent expected to extend the offer to all affected workers, a lower percentage than the recall rate from the previous years. The complettion of seasonal work accounted for 20 percent of all events and resulted in 6,174 separations during the period. Layoffs due to internal company restructuring (bankruptcy, business ownership change, financial difficulty, and reorganization) resulted in 4,792 job separations, which represents 28 percent of all events. The level of separations resulting from company restructuring is the lowest recorded level for any April-June period since the establishment of the MLS program. Permanent closure of worksites occured in 6 percent of all events and affected 1,742 workers, the fewest number of job separations resulting from permanent closures recorded for any April-June quarter since the establishment of the MLS program. This information was collected through the federal Mass Layoff Statistics (MLS) Program and released by the U.S. Department of Labor’s Bureau of Labor Statistics (BLS). The full BLS news release reporting MLS Program data for the April through June 2005 quarter is available at http://stats.bls.gov/news.release/mslo.toc.htm.




    PG&E Discounts Rates to Keep Businesses in State


    Pacific Gas and Electric Co. won state approval to give electric discounts of 25 percent to attract and retain businesses. The state Public Utilities Commission approved the economic development rate reductions on September 8, 2005. Only businesses that use at least 200 kilowatts, such as food processors or light manufacturers, can qualify.




    City of Santa Clarita Needs Your Feedback


    The city of Santa Clarita is interested in gathering information on examples of economic incentives your community has used to attract businesses that generate significant sales tax. Which incentive is most frequently used by your community? Which incentive would you not use again? Were any particular benchmarks used (sales tax, no. of employees) to phase the incentives? Your responses are greatly appreciated. Please email your responses to Carrie L. Rogers, Marketing and Economic Development Manager for the City of Santa Clarita at crogers@santa-clarita.com.




    EDD Grants Extension to Employers Affected by Hurricane Katrina


    California employers directly affected by the damage caused by Hurricane Katrina, who need additional time to file their payroll tax reports and/or pay their payroll taxes, may be eligible for an extension or waiver of penalty. Send a signed written request to EDD Taxpayer Center, Attention: Taxpayer Assistance Center, P.O. Box 2068 Rancho Cordova, CA 95670-2068 or fax the request to (916) 464-3504. To request a waiver of penalty, employers should enclose a signed written request with the report and/or payment, stating the reason for delay, and mail them to Employment Development Department, P.0. Box 826846, MIC 3A Sacramento, CA 94246-0001. For more information, contact the Taxpayer Assistance Center at (888) 745-3886.



    Caution on Expectations for Stem Cell Research

    The University of Michigan committed $10.5 million of its internal resources to establish an interdisciplinary center for stem cell research. The announcement is one of dozens from around the country since California voters approved Proposition 71 in 2004, borrowing $3 billion over 10 years for stem cell research. These types of public investments are often justified with promises of economic growth and the development of new industries, as well as new approaches to life-threatening ailments. However, the California Council for Science and Technology (CCST) states “research may take years, decades even, before payoffs in the form of therapies and treatments are seen.” In addition, CCST expressed its concern that heightened expectations about quick returns on investment could result in policies that require unrealistic revenue returns to the state. But, over the long-term, substantial economic benefits are expected to come through the creation of new jobs and new industries, with the associated increased tax base.



    Employment Training Panel Approves Multiple Job Training Contracts


    ETP is a State of California program that provides up to $85 million a year in job training funds. These funds help California companies to upgrade the skills of their workers. ETP funds are also used as an incentive to attract companies to the State or to help retain companies that threaten to leave the state. Last year, ETP approved $15 million for these critical economic development projects, which covered 3,600 new and retained jobs.
    In August, ETP approved a $273,000 job training contract with AmeriCold Logistics, LLC, to train 150 recently hired workers at its new Victorville (San Bernardino County) distribution center. The training will create well paying jobs and will provide workers with the skills needed to meet the company’s business expansion goals. The previous month, ETP approved a $981,000 contract with Target Corporation. The contract’s purpose was to assist Target in their growth as they add 350 new workers in their 3 import warehouses and will assist the company in training new workers and retaining current workers. For more information about how your local employees can access ETP funds, visit their website at www.etp.ca.gov.



    2003 Academic R&D for Life Sciences


    In 2003, academic institutions across the U.S. reported having a total of $23.76 billion in R&D expenditures for research related to the life sciences, according to the National Science Foundation’s Survey of Research and Development Expenditures at Universities and Colleges, FY 2003. The $23.76 billion figure represents 59.3 percent of the total academic R&D expenditures. SSTI has prepared a table presenting state rankings and figures for academic R&D for life-science related research. The table is available at www.ssti.org/Digest/Tables/092605t.htm.




    International Economic Development Council (IEDC) Holds Congressional Staff Briefing


    The International Economic Development Council (IEDC) continues to work with the National League of Cities, the American Planning Association, the Community Rights Counsel and others organizing a response to the Supreme Court’s decision in Kelo v. New London. The group held a congressional staff briefing on Thursday, September 15th. The mission of the event was to speak with Congressional staff about the positive impacts of judiciously used eminent domain for economic purposes.




    IEDC Supports Those Affected by the Aftermath of Hurricane Katrina


    Hurricane Katrina and its aftermath have dominated much of the country’s thinking these past weeks. The challenge to those suffering in the Gulf Region and to the economic development region is hard to grasp. The International Economic Development Council is organizing a committee to find ways that the economic development community can help those affected through this terrible disaster.



    New BLS Tool for Economic Developers


    The Bureau of Labor Statistics (BLS) has introduced the “Location Quotient.” It is a new online tool that will help you compare the relative employment levels by industry between the United States, individual states, counties, and Metropolitan Statistical Areas (MSAs). When armed with the results, economic and workforce development professionals can identify the demand industries and occupations in their area and determine where to target their efforts and resources. The calculator uses data drawn from the Quarterly Census of Employment and Wages (QCEW) program. The tool is accessible at http://www.bls.gov/cew/cewlq.htm.



    Articles from the September 16, 2005 ED-Lert Issue

    ACCRA Presents Local ED Survey


    The average budgets for local and regional economic development organizations fell nearly 3 percent between 2004 and 2005, according to the second annual survey by ACCRA. This survey questions 750 respondents from the economic development field. As economic development organizations (EDOs) continue to broaden the definition of their role in supporting a variety of economic development activities, they will need to develop a greater revenue base and more diverse lines of financial resources. EDOs continue to focus on their core competencies of marketing communities and facilities to businesses. However, data suggests that small organizations do not have the adequate resources to implement these efforts effectively. The survey also questions respondents in regards to staffing levels. One-third of respondents dedicate at least 0.5 full-time equivalent staff hours to increasing private access, up from 29 percent in 2004. Efforts towards technology and product adoption/development, on the other hand, dropped from 14.9 percent of the EDOs in 2004 to 12.2 percent in 2005. The full results of the survey are available in the ACCRA store for $45. Members can view the results by logging in to the Member Area. Please visit www.accra.org to order the results or call 703-522-4980.



    Fresno County Delegation Speaks in Favor of EDR Application

    In support of Commissioner Kennedy’s EDR application 04-06-018, a delegation from Fresno County spoke under public comment at the Commission Hearing held on August 25, 2005. The EDR is to encourage investment at the current location of a business and not to relocate a business from one utility to another. If the EDR is approved, the desired results should be jobs for California residents and investment in California by companies already here in our state. The resulting purchases of new and more efficient equipment, property taxes, utility taxes, and employee wages will transfer into sales taxes that will fund the State of California.



    USDA Rural Development Grant Helps Dairyman to Retrieve Energy from Methane


    A USDA Rural Development Business and Cooperative Grant aided dairyman Larry Castelanelli and his business partners in their recent construction of a methane digester. The methane digester helps control odor problems, reduce dairy waste volume and improve dairy waste as a fertilizer. Methane produced in the digester is used to fuel electrical generators for power on the dairy. USDA’s Renewable Energy and Energy Efficiency Program has recently expanded to include loans, as well as grants. For the past three years, the program has provided $22 million in funding each year to improve energy use and efficiency in rural areas of California. Eligible energy systems include those that derive any form of energy from wind, solar, biomass, and geothermal sources. For more information regarding USDA’s Rural Development programs, please visit www.rurdev.usda.gov/ca. (Information obtained from “Digester Milks Energy from Dairy Waste” by Dan Crummet for the California Farmer.)



    Legislative Update

    The legislature’s recent adjournment left the bills SB 1026 (Kehoe) and AB 1162 (Mullin) without action. Both bills would have placed a two-year moratorium on the use of eminent domain for owner-occupied residential property. However, an announcement is to be expected about interim hearings on the use of eminent domain. Regarding other legislation, the Assembly voted 56-22 to concur with Senate Amendments to AB 1390 (Jones). This legislation repels the January 1, 2006 sunset in current law on the definition of “substantial rehabilitation.” If this sunset is not removed, the former definition will go into effect. Redevelopment agencies found this former definition unworkable.



    New Web Blog for Economic Development Professionals

    The purpose of the EDPro weblog is to help economic development professionals keep up with the changes sweeping the profession. Blogger Ed Morrison tracks a wide variety of development in the field and provides commentary. The EDPro Blog is sponsored by the Center for Regional Economic Issues at Case Western Reserve University. Subscribe at http://edpro.blogspot.com.


    New Website Provides Housing and Demographic Information

    DataPlace, a new Website sponsored by the Fannie Mae Foundation, is designed as a one-stop source for housing and demographic data. This data includes information on population, income, education, and housing. This site allows users to develop custom maps, charts, and rankings that incorporate data from multiple sources. Visit www.dataplace.org to learn more.



    Conduct a Location Search on Any U.S. State or Community


    DevelopmentAlliance.com offers detailed state, county, metropolitan and micropolitan statistical data for companies seeking new business locations. The website enables comparisons of critical data sets from every U.S. county and gives corporate site selectors the ability to select up to five communities at once for a side by side comparison. This is a free service of Conway Data, Site Selection magazine, SiteNet.com and the International Economic Development Council.




    Articles from the September 9, 2005 ED-Lert Issue

    Audrey Taylor Appointed to Workforce Investment Board

    Congratulations to Audrey Taylor, long time CALED Member, for her appointment to the Workforce Investment Board. Audrey is president and chief executive officer of Chabin Concepts, Inc., an economic development and marketing consulting firm. For more information, check out the press release section of Governor Schwarzenegger's state website.



    Wayne Schell Re-Nominated to Serve on the IEDC Board of Directors – 09/28/2005

    Wayne Schell, CALED President/CEO, was re-nominated to serve on the Board of Directors of IEDC. This nomination will be ratified at the next meeting of the board, September 28, 2005 in Chicago. We congratulate Wayne for obtaining this prestigious position!



    Red Cross Seeks Business Support in Recruiting Disaster Relief Volunteers


    (September 1, 2005) Hurricane Katrina has left in its wake the urgent need for volunteers to help with disaster relief efforts. The American Red Cross already has mobilized thousands of willing people to meet the needs of the affected areas, but more assistance is required. The national relief organization already is sheltering nearly 40,000 evacuees in more than 230 shelters and serving approximately 500,000 hot meals each day, according to agency statistics.

    The Pacific Service Region's goal is to send 125 volunteers a day to the relief operation. The organization is recruiting people for intensive training and deployment and is holding special 'crash course' training sessions for new volunteers.

    California employers can support and assist with this massive recovery effort by allowing employees interested in volunteering to take time off to train and to serve with their local Red Cross agencies. Volunteers can expect to be deployed for up to three weeks, according to the Red Cross. The Red Cross will be sending people to five states affected by the hurricane and flooding. The Red Cross points out that giving employees time to volunteer not only benefits the community, but also allows employees to gain valuable experience and skills ˜ from administration and management to leadership ˜ that they can bring back to their workplaces.

    For more information on volunteering or donating funds, visit www.redcross.org or call 1-800-HELP-NOW (435-7669) for more information. The Red Cross also is seeking volunteers to coordinate donations and answer phones at local chapters.



    EVC Hires Michael Manchak as New President/CEO

    John Shoals, Chairman of the Board of Directors of the Economic Vitality Corporation of San Luis Obispo County, announced the hiring of Michael Manchak as the President/CEO of the EVC. John Shoals said: “We are very fortunate to get a person of Mike’s caliber to lead this organization forward during the next several years. Much can be done to improve the economy of the County and to create higher paying jobs, and EVC is dedicated to doing that. Mike was definitely the strongest candidate, and we are very pleased that he will soon be on board with the organization.” Mike plans to be on the job during the third week in September.



    Nat’l Endowment for the Arts Creates $500,000 Annual Program

    The Nat’l Endowment for the Arts jumps into smart growth planning with a $500,000 annual program of national workshops for governors, cabinet secretaries and state planning staff. Governors will learn from top planning experts and practitioners how to use their state budgets to create incentives fostering smart and sustainable growth. The first workshop is planned for December, although the location has not been decided.



    Economic Alliance Holds Annual Board Meeting

    On August 25, the Economic Alliance held its annual Board of Directors meeting. Over 100 members heard presentations from each of five city partners and applauded Alliance volunteers for their hard work on several events and programs. This year’s meeting was hosted by CSUN who asked us to “Imagine the Arts Center” to be built for use by the entire community on the CSUN campus.

    ED-Lerts are a member-only service. Learn more about the benefits and value of CALED membership.

  • CALED Events Calendar

    Keys to
    Successful
    Economic Development


    February 3-6, 2009
    Sacramento, CA

    Click here for
    information and registration

     

     


    CALED in Action

    The Emergence of Local ED in CA

    New ED Financing Resource Unveiled

    CALED's New Business Expansion Program

    Assemblymember Arambula Named CALED Legislator of the Year

    PG&E Receives CA ED Corporate Leadership Award

    NewCA’s Assets: The Positive Side of Business in CA [PDF]

    Wayne Schell Stands up for ED in Imperial

    CALED Testifies at Assembly Hearing on CA Business Climate



    California Association for Local Economic Development
    550 Bercut Drive, Suite G; Sacramento, CA 95811
    Voice: 916-448-8252 + Fax: 916-448-3811