Loma_Rica_Report by liwenting

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									        Loma Rica Road Area
Economic Development / Redevelopment
               Study




                   Prepared by
       Sierra Economic Development District
              560 Wall Street, Suite F
                Auburn, CA 95603
                 (530) 823-4703

                   September 2005



            Funding for this Study provided by
     Community Development Block Grant #03-PTAA-0046
TABLE OF CONTENTS



Executive Summary......................................................................................................... 1

Background ...................................................................................................................... 2

Introduction........................................................................................................................ 3

Study Methodology .......................................................................................................... 6

Business Background ...................................................................................................... 7

Facilities and Expansion Information ............................................................................ 8

Current Location .............................................................................................................10

Business Economic Issues ...........................................................................................12

Employment and Training Issues ...............................................................................14

Key Findings and Recommendations .......................................................................17

Highest and Best Use of Vacant Parcels ...................................................................20

Infrastructure Constraints / Needs .............................................................................21

Development Potential for Lot 6 ...................................................................................24

TIG Job Benefit Analysis...............................................................................................28

Potential for Redevelopment Area...............................................................................31

Resources .......................................................................................................................34



Appendices:
     Appendix 1 – Survey Instrument and Results
     Appendix 2 – Products and Services
     Appendix 3 – Targeted Industries for Nevada County
     Appendix 4 – Addendum to Brunswick Corridor Study
     Appendix 5 – Sample Resolution
Loma Rica Drive Area Economic Development/Redevelopment Report



Executive Summary

The Loma Rica Drive Industrial area is a primary employment center for
Western Nevada County, with more than twenty percent of all the county’s
manufacturing jobs located in the area. As a means to gather information on
business and infrastructure needs in the area, the Sierra Economic
Development District (SEDD) staff worked with the Nevada County Economic
Resource Council (ERC) to conduct and analyze a survey of businesses in the
study area. Fifty-two out of ninety-nine potential businesses agreed to the
one-on-one survey. Based on these survey results, businesses in the Loma
Rica Drive Industrial area appear to be thriving.

Key findings included in this report are:
       ♦ Majority of business located in the Loma Rica Industrial area are
          locally owned and managed
       ♦ The smallness of the community and the people are listed as major
          strengths for doing business in the community
       ♦ Twenty-one of the fifty-two businesses surveyed indicate the
          potential for expansion
       ♦ Over the next five years, businesses surveyed indicate the potential
          for adding 302 jobs
       ♦ Lower rents and broadband access contribute to why businesses
          locate in the industrial area
       ♦ Lack of sewer facilities require businesses/property owners to
          provide onsite septic systems which limit the size of development
       ♦ The one access in and out of the area (Loma Rica Drive) is an issue
          to 61% of the businesses surveyed

Some key issues did surface that trigger concern about the long-term
stability of the area.
        ♦ 77% of the businesses are leased on a month to month or yearly
           basis
        ♦ Many business indicate a lack of available qualified employees
        ♦ Four out of ten businesses do not have business plans

The report finds that the highest and best uses for any land within the Loma
Rica Drive area is manufacturing and/or flex building space that allows for
light industrial activity.

And although the area does meet the basic blight criteria for a
redevelopment area, it is doubtful that the tax increment generated back to
the county would warrant the expenditures necessary to form an agency.




September 2005                                                                 1
Loma Rica Drive Area Economic Development/Redevelopment Report



Background

In 2004, the County of Nevada received Housing and Community
Development Block Grant Funds under the Planning and Technical
Assistance, Economic Development Allocation (CDBG Grant 03-PTAA-0046)
to complete a Loma Rica Drive Area Development/ Redevelopment Study.
The Sierra Economic Development District (SEDD) was contracted by the
County to complete the study and issue a report.

The focus of this report is to make recommendations to Nevada County on:
   Ø Business enhancement activities;
   Ø Highest and best use of vacant parcels, including development
       potential for County owned property identified as Lot 6;
   Ø Identification of infrastructure constraints and needs;
   Ø Potential for Targeted Income Job (TIG) Benefits;
   Ø Potential for establishing the area as a Redevelopment Project area;
       and
   Ø Resources available to meet the needs of the area.




September 2005                                                          2
Loma Rica Drive Area Economic Development/Redevelopment Report



Introduction


The Loma Rica Drive project area is adjacent to the Nevada County Airport,
located east of Grass Valley, California. The Airport is a base for local
personal and recreational flyers and also serves as a transportation facility
for business/corporate aviation and aerial fire-fighting operations.

In 1955, vacuum tube pioneer, Charles Litton, founder of Litton Industries,
purchased 153 acres, including the airport, from the MacBoyle Estate. Litton
offered the field for public use and immediately began repairing the landing
strip. The field opened the following year as the Loma Rica Airport.

After World War II, the low inflexible price of gold made any large-scale
mining unprofitable, resulting in the closure of the many area mines.
Realizing the devastating impact on the economy, Litton co-founded the
Loma Rica Industrial Park, Inc. in hopes of bringing light industry and
tourism to the area.

Boasting a 3,900 foot lighted runway, full time mechanics and radio facilities,
the corporation gifted the airport to the county on the condition that it meet
specific criteria regarding public use and future development. The company
then laid plans for an ambitious industrial park offering 18 prepared
construction sites, complete with airplane access. Today some 100
businesses occupy the development. 1




                              Airport, circa 1963


1
    Excerpted from story by Tim O’Brien



September 2005                                                                3
Loma Rica Drive Area Economic Development/Redevelopment Report

Baseline information on the Industrial Park area (Figure 1) was developed
for this report using the most recent Employment Development Department
information that was available at the time of report. Based on this 2003 data
there were 96 businesses located in the Loma Rica Industrial Park area with
43% of those businesses representing the Manufacturing sector. (Chart 1)
The next largest sector in the project area is Services that includes
Professional and Technical Services, Administrative Services, Real Estate and
Miscellaneous Services.

                                           Chart 1
                                 2003 Businesses by Industry
                                  Loma Rica Industrial Park
                     Services
                      24%
                                           Transportation &
                                            Warehousing           Construction
                                                 4%                  11%




                                                                                 Manufacturing
                     Retail                                                         43%
                      7%
                                     Wholesale
                                       11%




Nearly half (47%) of the 835 employees working in the Loma Rica Drive
project area in 2003 were employed by the manufacturing sector. The
Service Industry, which is made up of several types of service sectors,
employees 17 percent of base employment.        The next largest single
employment sector is Transportation and Warehousing at 11%.

                                          Chart 2
                                2003 Employment by Industry
                                  Loma Rica Industrial Park

                              Services
                                17%

                 Transportation &                        Construction
                  Warehousing                               9%
                      11%


                                                                        Manufacturing
                                  Retail
                                                                           47%
                                  10%

                                    Wholesale
                                      6%




September 2005                                                                                   4
                                                                                                                                                                         Figure 1
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                                                                               Loma Rica Industrial Area - Zoning Designations
                                                                                                                                                                                                                                                                                                         Scale



                  River
                  Lake
                                                             Highway/Freeway
                                                             Arterial
                                                                                                                       Parcels
                                                                                                                                 Legend
                                                                                                                                                     General Agricultural
                                                                                                                                                     Interim Development Reserve
                                                                                                                                                                                                                                                                Grass Valley
                                                                                                                                                                                                                                                                Public
                                                                                                                                                                                                                                                                                                         0            500            1,000                            2,000

                                                                                                                                                                                                                                                                                                          and data provided; nevertheless, some information may not be accurate.
                                                                                                                                                                                                                                                                                                          The County of Nevada assumes no responsibility arising from use of this
                                                                                                                                                                                                                                                                                                          information. THE MAPS AND ASSOCIATED DATA ARE PROVIDED WITHOUT
                                                                                                                                                                                                                                                                                                                                                                         Feet
                                                                                                                                                                                                                                                                                                          Every reasonable effort has been made to assure the accuracy of the maps



                                                                                                                                                                                                                                                                                                          WARRANTY OF ANY KIND, either expressed or implied, including but
                                                                                                                                                                                                                                                                                                          not limited to, the implied warranties of merchantability and fitness
                                                                                                                                                                                                                                                                                                          for a particular purpose. Before making decisions using the information
                                                                                                                                                                                                                                                                                                                                                                                     ´
                                                                                                                                                                                                                                                                                                          provided on this map, contact the Nevada County Public Counter staff


                  Canal                                                                                                                              Light Industrial
                                                                                                                                                                                                                                                                                                          to confirm the validity of the data provided.

                                                             Collector                                                                                                                                                                                          Residential Agricultural                   Created by Nevada County GIS Division, 8/25/05
                                                                                                                                                                                                                                                                                                           ZoningLomaRicaAirport.mxd



                                                                                                                                                                                                                                                                                                                                                                              5
Loma Rica Drive Area Economic Development/Redevelopment Report



Study Methodology

As a means to gather information on business and infrastructure needs,
SEDD staff worked with the Nevada County Economic Resource Council (ERC)
to develop a survey tool that could provide quantitative data for analysis. The
survey instrument used was modeled after a standard business
retention/expansion survey developed by the State of California. The six-
page survey addressed the business background, facilities and expansion
information, business economic issues and employment and training issues.
At the time of the survey, ninety-nine businesses were identified as being in
business within the project area and all businesses were contacted to set a
time for face-to-face interviews.

Of the 52 companies agreeing to be interviewed, nearly half of them met
with Larry Burkhardt, President/CEO of the Nevada County Economic
Resource Council. Six volunteers from the business community interviewed
the remaining businesses. Appendix 1 includes the survey instrument, raw
survey results and a list of the persons conducting interviews. All interviews
were conducted during the timeframe of March 1, 2005 to May 31, 2005.

The following pages contain an analysis of the results of these surveys.




September 2005                                                               6
Loma Rica Drive Area Economic Development/Redevelopment Report

Business Background


By category of business, the majority (45%) of the businesses surveyed are
Manufacturers, with another one third (35%) Service related industries,
primarily business services.         A combination of Transportation and
Warehousing,
and     Wholesale
Trade constitutes                                                   Manufacturing
                                    Services                            45%
another    twelve                    35%
percent of the
businesses
interviewed. The
only sector not      Transportation
represented     in   & Warehousing
the        survey         8%
responses is the
Construction                                 Retail Wholesale
Industry   which,                             8%       4%

based on EDD
baseline data, makes up 11 percent of the businesses in the project area.

Types of products and services of the businesses surveyed range from
custom cabinetry and specialized wood products (including furniture) to
precision machine and fabrication shops. See Appendix 2 for complete list
of products and services.

The majority of the businesses interviewed are incorporated, either as a
major corporation or a corporation with limited powers (Subchapter S
Corporation).
                                Table 1
            Percent of Businesses by Type of Organization

         Type of Organization              Number      Percent
         Sole proprietorship                 15         28.8%
         Partnership                          3          5.8%
         S- Corporation                      10         19.2%
         Corporation                         22         42.3%
         Subsidiary                           1          1.9%
         Nonprofit                            1          1.9%
Six businesses reported that business headquarters are located outside of
Nevada County. Two of these businesses are based in the Northern California
cities of Roseville and Mountain View; three have headquarters in other
states (Portland Oregon, Atlanta, Georgia and Houston, Texas). One
company is headquartered in Niestetal, Germany.



September 2005                                                                7
Loma Rica Drive Area Economic Development/Redevelopment Report



In response to the question of “Where are the majority of your
customers located?” more than forty percent indicated they are within
Nevada County. Another twenty percent of the companies have national
markets and fourteen percent sell primarily to international markets.

                                 Chart 3
                 Where Majority of Customers Are Located

                 International

                      National

                      Regional

                     Statewide

                   Northern CA

          Within Nevada County

                             0.0%   10.0%   20.0%   30.0%   40.0%   50.0%




Facilities and Expansion Information


Several questions were asked related to infrastructure issues associated with
the Loma Rica Drive project area. Fifty-four percent of the businesses
surveyed responding affirmatively to the question “Do you have any
infrastructure issues associated with your current location?” Of those twenty-
eight companies, 61% (17 businesses) indicated that the one access road
into the area is a major issue. Eighteen percent (five businesses) responded
that traffic congestion is a concern.       Lack of sewer facilities and/or
deteriorating septic systems is also a concern to five of the businesses.




September 2005                                                               8
Loma Rica Drive Area Economic Development/Redevelopment Report



                                     Table 2
                              Infrastructure Issues
                      Within the Loma Rica Industrial Park

        Infrastructure Issues                               Percent
        One Access Road into Loma Rica area                 61%
        Traffic Congestion                                  18%
        Lack of sewer, deteriorating septic systems         18%
        DSL not available from provider                     11%
        Poor Roads                                          11%

Several questions related to Internet use and access were also asked. Eighty-
three percent of the businesses reported using the Internet in the course of
doing business. Of those, more than twenty percent conduct 75% to 100% of
their business on the Internet. However, most of the businesses use the
Internet for 20% or less of their business activity.

                                      Chart 4

                      Percentage of Business Conducted Online


         75-100

          50-75

          30-49

          20-29

          10-19

             1-9

                 0%      5%     10%    15%      20%   25%   30%   35%



Most of the businesses (88%) indicated they have high-speed access through
either DSL or T-1 lines. These businesses also stated that they have
adequate speed for current business needs and/or anticipated needs. Of the
twelve percent with Dialup access only, the speed was indicated as Very
Slow.

The importance of faster Internet service was noted as Absolutely Essential
by 25% of the businesses and Important by another 27%. However, when
queried as to willingness to pay more for faster service, only three (6%)
indicated yes.




September 2005                                                             9
Loma Rica Drive Area Economic Development/Redevelopment Report

                                  Table 3
          How important is faster Internet              service    to
          operating and growing your business?
          Not Important                                          33%
          Important to Current and anticipated needs             27%
          Absolutely essential                                   25%
          No Response                                            15%


Current Location

Business owners/managers were asked to respond to the questions “What do
you like best/least about your current location?” The most common answers
for like best were Close to home and Low rent. Industrial area and quality of
life were also listed as things they liked best.
                                      Table 4
        What do you like best about current location?
                               Response                    Frequency
        Close to home                                          9
        Low rent                                               7
        Industrial area                                        4
        Trees/Quality of Life                                  4
        Convenient                                             3
        Close to UPS & services                                3

The most common answers for like least were one access road in and out
and snow/winter access. Four respondents responded “Nothing”.

                                   Table 5
        What do you like least about current location?
                             Response                        Frequency
        One access in and out                                    9
        Snow/winter access                                       5
        Nothing                                                  4
        Outgrown space                                           3
        Old, junky, poor impression on customers                 2

A complete listing of the responses is included in Appendix 1.

More than three quarters (40) of the businesses located in the Loma Rica
Drive project area lease their space with more than half of those indicating
their lease is either month-to-month or annual. This lack of long-term leases
could present business retention issues over time.




September 2005                                                             10
Loma Rica Drive Area Economic Development/Redevelopment Report

The majority of businesses within the project area occupy less than 5,000
square feet in space with only one business in a facility larger than 50,000
square feet. Seventy-eight percent of the businesses indicated they are using
over 90% of their present capacity.

                                                 Chart 5
                                       Business Size by Square Foot

       35.0%

       30.0%

       25.0%

       20.0%

       15.0%

       10.0%

         5.0%

         0.0%




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When queried as to whether they have space available to expand thirty-three
of the fifty-two businesses responded no. However, when asked if they have
plans to expand or move their company, twenty-two answered yes, with
twelve of those indicating they do not have the space to expand. Fifteen of
the businesses expressed plans and/or a desire to expand within the Loma
Rica Drive project area, while another five indicated expansion plans within
other parts of the county. Two businesses indicated immediate plans to
move to the Reno area while one business indicated they were looking for
locations in other states. Reasons given for leaving the project area include
cost of doing business, lack of space to expand, access to labor, access to
markets, parking constraints and ‘personal reasons’.




September 2005                                                                                                       11
Loma Rica Drive Area Economic Development/Redevelopment Report



Based on the responses from nineteen different businesses, several factors
will influence the decision to expand/move including:
1) State of the economy – 37%
2) Increased demand for product – 37%
3) Availability of development incentives – 16%
4) Availability of space – 16%
5) Availability of financing – 5%


Business Economic Issues


Businesses were asked to describe the current trends in their industry. The
results were analyzed based on issues for manufacturing firms compared to
the same issues for non-manufacturing firms (Table 6). Nearly one third of
all firms are experiencing steady growth or expanding markets. Eighteen
percent of manufacturing companies see the economy as flat or very slow
with several mentioning “9/11” as the trigger. Only thirteen percent of the
non-manufacturing companies (mostly service) see the economy as sluggish.
Fourteen percent of the manufacturing firms have labor issues (increased
costs, poor quality) which were not identified as a trend by the other firms.
Overseas competition was identified by 13 – 14% of both manufacturers and
non-manufacturers.

                                 Table 6
                         Current Business Trends
                                                              Non-
                                             Manufacturing Manufacturing
                                                Firms         Firms
Steady Growth/Expanding Niche Markets           32%            33%
Flat/Slow Economy                               18%            13%
Labor Issues                                    14%            0%
Overseas competition                            14%            13%
Increased Costs                                  9%            4%
Increased Regulations                            9%            0%
Way of Doing Business Changing                   0%            25%

Increased costs and increased regulations is impacting nine percent of the
manufacturing sector but was not as significant an issue for non-
manufacturing firms. For these other industries, there is a significant change
in the way of doing business with use of the Internet a predominant trend.

Based on the forty-seven businesses answering the questio n “Have your
sales increased or decreased in the last year?” eighty-seven percent have
seen sales increase.



September 2005                                                              12
Loma Rica Drive Area Economic Development/Redevelopment Report



As depicted in Chart 6, the median increase was six to ten percent; however
eight percent of the companies experienced increases of over fifty percent.
Of those businesses indicating declining sales, all responded that sales were
down by more than fifty percent.
                                  Chart 6
                  Sales Increase/Decrease by Percent

                 25%
                 20%
                 15%
                 10%
                  5%
                  0%
                 -5%
                 -10%
                        0-2   3-5 6-10 11-   16-   21-   31- Up Down
                                       15    20    30    40 Over More
                                                             50 than
                                                                  50
                                    Percentage Change


Only fifty-eight percent of the businesses indicated they have a current
business plan, and forty-nine percent indicated planned capital investment
within the next year. (Please note - twenty-eight percent of those planning
capital investment also report not having a current business plan.) As shown
in Table 7 the amount of planned investment ranges from under $50,000 to
more than $1 million.

                                  Table 7
                         Planned Capital Investment
                                                  Percent of
          Amount of Capital Investment           Companies
         Under $50,000                              11.5%
         $50,000 to $100,000                        11.5%
         $100,001 to $500,000                       11.5%
         Over $1 million                             1.9%

Forty-two percent of the
companies      interviewed
export product or services              Middle East
to other countries, with             South America
thirty percent of those                       Mexico
sending product to Pacific                   Canada
Rim.                                          Europe
                                         Pacific Rim
                                                    0.0%    10.0%   20.0%   30.0%   40.0%




September 2005                                                                         13
Loma Rica Drive Area Economic Development/Redevelopment Report

When asked if they need assistance with foreign trade issues, only four firms
responded yes.

Included in the appendices is a listing of responses to the types of business
or industry the interviewees would like to see located in the county. Ten
businesses responded none, with another five citing high tech and/or light
manufacturing.    Three businesses would also like to see woodworking
businesses. There was also one response challenging the county to purchase
goods from local companies rather than out of area products.

When asked about specific regulatory issues impacting their businesses, fifty-
two percent either indicated there were none or provided no response. The
remaining firms listed Workers Compensation, Labor laws, State taxes and
Environmental regulations as specific issues. Five interviewees indicated that
zoning and permitting were issues impacting their business.

Table 8 highlights the                          Table 8
biggest challenges faced        Biggest Challenges as a Nevada County
as a Nevada County                             Business
business. The top three      Issue                           Frequency
responses were Business      Business management issues           7
management         related   Government related issues            7
issues, Quality labor and    Quality labor                        7
Government         related   Access to markets                    6
issues.       Access    to   Workers compensation                 5
markets was also listed      Competition                          3
as a key challenge to        Cost of doing business               3
several       of       the   Workforce housing                    3
businesses, along with       Road access                          2
workers compensation.        Paperwork                            1

Specific Government related issues cited were lack of sewer and water
hookups and building usage codes. Other responses were nonspecific such
as “business climate” and “local government”.


Employment and Training Issues

The fifty-two companies interviewed reported a total employment in 2005 of
808 employees, with 723 full-time employees. Fifty-four percent of all the
employees work for Manufacturing companies and the Service Industry
employment accounts for another thirty-five percent.




September 2005                                                              14
Loma Rica Drive Area Economic Development/Redevelopment Report



                                Table 9
                       2005 Employment by Sector
                                         Part-                            % of
                            Fulltime     time     Seasonal       Total    Total
Manufacturing                   407       23           6         436     54.0%
Retail                            9        2           0          11     1.4%
Wholesale                        63        3           3          69     8.5%
Service                         242       33          11         286     35.4%
Distribution/Warehousing          2        1           3           6     0.7%
                                723       62         23          808     100.0%

Total employment within these same companies was estimated at 725
employees five years ago, showing an eleven percent increase in
employment from the year 2000 to the present. Please note that some of
these companies were not located in the Loma Rica Industrial Park in 2003
when the EDD baseline data was collected.

Although twenty-four of the companies indicated no plans to add employees
over the next year, the other twenty-eight companies estimate increasing
employment by sixty to sixty-seven employees. Thirty-one of the companies
contacted anticipate adding employees over the next five years for a
potential employment growth of 302, a thirty-eight percent increase.


Table 10 shows the types of                        Table 10
jobs to be added during the            Anticipated Employment by Type
next year. The majority of                Category            Percent
the jobs (58.6%) will be         Supervisors/Management         5.0%
semiskilled        positions,    Professional                   6.6%
primarily      manufacturing     Sales/Marketing                8.6%
assembly     jobs.  Another      Skilled                        9.6%
11.6% of the employment          Clerical                       4.0%
will be clerical or unskilled    Semi-skilled                  58.6%
positions.                       Unskilled                      7.6%

Commute patterns of current employees indicate that all but one employee
of the companies surveyed use a car to get to work, with the bus providing
transportation for the one exception. Average commute time is 11 to 20
minutes for 56% of the employees with another 25% traveling less than ten
minutes to get to work. The longest commute listed was 31 to 40 minutes
for just 4% of the employees.

When asked to rate the supply of qualified labor available when hiring the
predominated response was Satisfactory for Management and Clerical staff,
Excellent to Satisfactory for Professionals, and Satisfactory to Fair for Sales



September 2005                                                                15
Loma Rica Drive Area Economic Development/Redevelopment Report

and Marketing employees. However, the supply of Skilled, Semi-skilled and
unskilled labor was ranked as Poor by the majority of businesses.

                                 Table 11
                    Ratings of Supply of Qualified Labor

                             Excellent          Satisfactory    Fair      Poor
Supervisors/Management       12.5%              37.5%           25.0%     25.0%
Professional                 28.6%              28.6%           14.3%     28.6%
Sales/Marketing              16.7%              33.3%           33.3%     16.7%
Skilled                      8.0%               20.0%           28.0%     44.0%
Clerical                     14.3%              57.1%           14.3%     14.3%
Semi-skilled                 7.1%               7.1%            28.6%     57.1%
Unskilled                    0.0%               25.0%           25.0%     50.0%

When asked if they have problems recruiting new employees, twenty-four
businesses (nearly half) indicated they have had problems. Methods most
frequently used to recruit employees include newspaper advertising was the
most common method (36%), with referrals/word of mouth and public
agencies each being used 18% of the time. Temporary agencies and the
Internet were also methods listed.

Chart 7 shows
                                                   Chart 7
the responses
                                            Methods of Recruitment
to           the
question       of
                                                        Other -ERC
what      other                       Other -ROP           3%
methods are                              5%
                                                                       Advertising
used.    Based
                                                                          33%
on           the
                    Walk-ins /
responses to
                    Referrals
this question,        28%
Advertising                                                                 Private
and    referrals                                                         Employment
account       for                Schools/
                                                   Public                  Agencies
over       sixty                                Employment                    7%
                                 Colleges
percent of the                                    Service      Professional
                                   12%
approaches to                                    Agencies      Publications
                                                    9%             3%
employee
recruitment.




September 2005                                                                        16
Loma Rica Drive Area Economic Development/Redevelopment Report

                 Key Findings and Recommendations

Business Enhancement


As a way to categorize and then analyze the data generated from the survey
and other data, SEDD used a Strengths, Weaknesses, Opportunities and
Threats (SWOT) process. This process assesses an organizations or regions
strengths and weaknesses in addition to opportunities (potential favorable
conditions for growth) and threats (potential unfavorable conditions for
growth). SWOT analysis is an important step in planning and its value is
often underestimated despite the simplicity in creation. The role of SWOT
analysis is to take the information from the environmental analysis (business
survey) and separate it into internal issues (strengths and weaknesses) and
external issues (opportunities and threats).


                                    Table 12
                        Loma Rica Industrial Park
                            SWOT Analysis

                Strengths                        Weaknesses
   Close to home                     Deteriorating roads
   Convenience                       Lack of business planning
   High speed Internet access        Lack of Sewer
   Industrial area                   Lack of road maintenance mechanism
   Local business networks           One road access
   Low rent                          Snow/winter access
   Quality of Life                   Traffic Congestion

            Opportunities                           Threats
   Businesses looking to expand      Cost of housing
   Growing markets                   Cost of labor
   Planned job growth                Cost of workers compensation
   Planned capital investments       High cost of doing businesses
   Resources available               Lack Available Labor
   Some vacant land                  Lack of space to expand
                                     Overseas competitio n
                                     Year to year leases




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Loma Rica Drive Area Economic Development/Redevelopment Report

Strengths

The major strengths of the area include the convenience of living and
working in the same area. The majority of the businesses located in the
Loma Rica Industrial area are locally owned and managed. Many listed the
small community and the people as major strengths of doing business in the
community. Additionally, local business networks exist as support to the
businesses in the area. The smallness of the community and the quality of
life are also factors contributing to why the businesses are located here.

Other factors that contribute to businesses locating in the Loma Rica
Industrial area are lower rents, broadband access and the fact that it is
primarily an industrial area which means the businesses are not in conflict
with residential or commercial activities.

Weaknesses
The primary weaknesses of the Loma Rica Industrial area are related to
infrastructure issues. The lack of sewer facilities requires businesses to
provide onsite septic systems. These systems limit the size of development
and number of employees. Because Loma Rica Drive provides the only access
into the industrial park, the area is impacted by traffic congestion and winter
road conditions. Since there is no existing mechanism for road maintenance,
roads are deteriorating.

Another weakness of the area is related to the business management
capacity of the businesses located in the area. Four out of ten of the
businesses do not have businesses plans and many of those plan capital
investments within the next year.

Opportunities
Twenty-one of the fifty-two businesses surveyed indicate the potential for
expansion. This presents an opportunity for increased business activity and
job growth. While limited there is vacant land available for business
expansion.   Current projects also under way will allow for up to forty
thousand square feet of flex space.

Other opportunities exist related to business development and labor force
development. A coordinated effort by the county and local and regional
economic development/workforce development entities could greatly increase
the viability of local businesses and assist in the expansion efforts.

Threats
The lack of space to expand and the existence of month-to-month and year-
to-year leases provide a real possibility for businesses to leave the county for
planned expansions.




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Loma Rica Drive Area Economic Development/Redevelopment Report

Many of the businesses interviewed indicate available workforce is lacking
and /or that there is a lack of qualified employees. This combined with high
housing costs limits the ability of businesses to expand and/or locate in the
area.

Another threat to the retention of existing businesses is the high cost of
doing business in California – including the cost of workers compensation.
While this is primarily out of the control of local government, it could trigger
a decision for a business to leave the state.

Based on this analysis the following business enhancement activities are
recommended:

1) Initiate “town hall meetings” to discuss infrastructure and road
   improvements and potential for a county service area or special
   assessment district.     A meeting to include both landowners and
   business managers should be held to determine the formation of a road
   maintenance district. See Infrastructure Constraints/Needs section for
   further discussion.

2) Coordinate with Nevada County Transportation Commission and
   City of Grass Valley on providing additional access road. The City
   of Grass Valley has targeted potential annexation of the Loma Rica
   Industrial area in to the City by 2001 to 2015. Other projects within the
   City’s purview including the Idaho Maryland mine expansion could
   potentially coordinate with road improvements into the Industrial area.

3) Apply for State/Federal funding for infrastructure improvements
   based on the potential job growth identified by businesses in the area, the
   County would be eligible for CDBG Over-the-Counter funding and
   California Infrastructure Bank financing. More details of these programs
   are listed in the resources section.

4) Market county business loan fund program and other business
   financing programs. The newly funded Community Development Block
   Grant (CDBG) Business Loan Fund is one potential source of capital for
   financing business expansion.      There are also many other business
   financing programs available for economic development, including the
   USDA Business and Industry program, the SBA 504 program, SBA 7a
   loans, and other nontraditional financing programs available through the
   state.

5) Market existing housing programs and work to expand workforce-
   housing affordability. The county needs to continue working with the
   NCERC and other business associations to find options for affordable
   housing.



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Loma Rica Drive Area Economic Development/Redevelopment Report



6) Continue business retention/expansion efforts of the Nevada
   County Economic Resource Council (NCERC). The NCERC serves as a
   facilitator and catalyst for the support of local product export employers.
   Their services, include, but are not limited to:
   a) Assistance in identifying appropriate financial resources
   b) Assistance in accessing labor training resources
   c) Government advocacy
   d) Assistance in locating suitable expansion facilities
   e) Industry recognition
   f) Demographic and economic information

7) Work with Golden Sierra JTA, Sierra College and ROP and other
   workforce training agencies to better link job training needs for
   planned job expansions. See the Resources section for the various
   training programs that are available.

8) Coordinate with the Sierra College Small Business Development
   Center to hold targeted industry training for businesses looking to
   expand. The SBDC offers free one-on-one counseling to businesses in
   business management, financing and marketing. In addition they
   coordinate with the Sierra College Economic Development Division on
   providing training through the Employment Training Panel (ETP) and the
   Center for Applied Competitive Technology (CACT).


Highest and Best Use of Vacant Parcels

Industrial land within Western Nevada County is at a premium. Within the
Loma Rica Industrial area there are fewer than ten vacant parcels. Most of
these are constrained by topography and amount of buildable land. Therefore
it is essential for the county to preserve land that is currently industrial as
the best use for that land. Any development infringing on the industrial
uses, such as retail and residential could cause loss not only of future
business expansion but lead to businesses leaving the community seeking
room to grow.

The results of the Business survey indicate that twenty-one companies are
interested in expanding their facilities, with twelve of those indicating they do
not have the space to expand. Fifteen of the businesses expressed plans
and/or a desire to expand within the Loma Rica Drive project area, while
another five indicated expansion plans within other parts of the county. Fifty
percent of the businesses wanting to expand are manufacturing firms.

Additionally,   per   conversations   with    local   commercial property
managers/developers the highest demand for space in Western Nevada
County is for 1000 to 2000 square feet of industrial space.


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Loma Rica Drive Area Economic Development/Redevelopment Report



Based on this information, we have determined that the highest and best
uses for any land within the Loma Rica Drive area is manufacturing and/or
flex building space that allows for light industrial activity. The list of
businesses anticipating expansion is included in the appendices of this report
and is a starting point for identifying development potential.

Additionally, based on existing business clusters in the county and business
types compatible to the area Targeted Industries for recruitment to Nevada
County would include:

       ♦   Other Pressed and Blown Glass and Glassware Manufacturing
       ♦   Machine Shops
       ♦   Other Computer Peripheral Equipment Manufacturing
       ♦   Radio and Television Broadcasting and Wireless Communications
           Equipment Manufacturing
       ♦   Totalizing Fluid Meter and Counting Device Manufacturing
       ♦   Wood Kitchen Cabinet and Countertop Manufacturing
       ♦   Custom Architectural Woodwork and Millwork Manufacturing
       ♦   Other Millwork (including Flooring)
       ♦   Solar heating panels and equipment merchant wholesalers
       ♦   Computer Systems Design and Related Services

More complete descriptions of these businesses are included in Appendix 3.


Infrastructure Constraints/Needs

Sixty-one percent of the respondents to the Business survey identified the
major infrastructure constraint for the area is the one access road in and out
of the Loma Rica Drive Industrial Park. Another eighteen percent listed traffic
congestion as an issue, which could also be addressed by an addition access
road.

Previous studies have identified potential ways of addressing this issue. In
the Corridor Study for Brunswick Road from SR 20 to SR 174, completed in
2000 by Grant Johnson, Prism Engineering, a Loma Rica Drive connection to
Greenhorn Road was identified as a fairly easy connector to construct. (See
Appendix 4)

The following pros and cons are excerpted from the Addendum to the
Brunswick Corridor Study.

The pros related to this project are listed as:
   • Utilizes an intersection that will need to be signalized.
   • Provides emergency access.



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Loma Rica Drive Area Economic Development/Redevelopment Report

   •   Shortest route and least cost ($1.15 million)
   •   Minimal disruption to existing neighborhood.

The constraints to the project were identified as:
   • Split intersection may be confusing
   • Requires removal of one dwelling unit.
   • Grades are steep, but not as bad as other two options.

Discussions with county staff indicate that other constraints to this as a
solution are the potential impacts of adding industrial park traffic into a
residential area, and the unwilling seller of the right of way.

There are no other apparent solutions to providing additional access,
however, there is an opportunity to work with the City of Grass Valley and
the Nevada County Transportation Commission in improving the
Brunswick/Loma Rica Drive intersection as part of other project mitigation
measures.

One feasible solutio n for addressing the deteriorating road and congestion
issues for the area would be the establishment of a road maintenance district
or community services district to provide road maintenance and other area
improvements. Currently no property owner association exists and a few
individual business/property owners provide the only road maintenance. The
first step in analyzing the feasibility of this approach would be to hold a
meeting of impacted businesses and property owners to gauge the benefits
and/or constraints to such an approach.

Another basic infrastructure issue identified as constraints to doing business
in the Industrial area by the survey respondents is lack of sewer. Based on
conversations with Nevada County Environmental Health, the lack of public
sewer is a recognized infrastructure constraint for businesses in the industrial
area. The requirement for septic systems on individual lots limits the amount
of buildable land and the number of employees allowed. Development
projects within the area require reverse engineering for each project – first
septic capacity needs to be determined and then development potential can
be planned. In addition, no industrial waste can be generated, so heavy
industrial activity is not allowed unless accommodations to move the waste
offsite are made.

If sewer capacity were made available to the Industrial park, it would allow
for the expansion of businesses and would increase the types of industries
that could locate in the area. With sewer capacity, hazardous waste
permitting would allow for some industrial waste disposal.

Currently there are not plans by Nevada County Department of Sanitation to
provide sewer to the area. The industrial area is within the sphere of



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Loma Rica Drive Area Economic Development/Redevelopment Report

influence for the City of Grass Valley, but the City limits offering sewer unless
it is a part of an annexation. The City slates the area for potential annexation
in 2011 to 2015. Discussion with Joe Heckle, Grass Valley Community
Development Director, indicates there is precedent for meeting with LAFCO
and developing a phased annexation approach similar to what was done with
the Glenbrook area. He also indicated a willingness to meet with interested
property owners prior to annexation to address potential expansion plans and
develop pre-permitted prototypes in advance of development. In the
meantime, some expansions could be allowed using newer, improved
technologies such as waterless composting toilets.

Based on the projected employment increase of 305 jobs, there is a real
potential for Community Development Block Grant funds to be used to fund a
portion of any public improvements. Within the resources section is a
discussion of these funds and other programs available for infrastructure
improvements linked to job creation.




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Loma Rica Drive Area Economic Development/Redevelopment Report

Development Potentia l for Lot 6

Nevada County owns a 10+acre parcel of land adjacent to the Nevada
County Airport that is currently being used as a storage yard and operations
plant for Public Facilities. The county is interested in moving their storage
yard to a more convenient location, opening a portion of the parcel known as
Lot 6 up for other development.

Part of the analysis of this study was to identify the development potential
for this parcel. Part of the approach to this analysis was to look at similar
airport operations in the region to analyze types of airport related business
uses and fees charged. SEDD staff also met with the Airport Commission on
March 3, 2005 to identify the commissioner’s ideas for airport related or
compatible uses.

The location of Lot 6 makes it a convenient and desirable location for both
airport related uses and/or light industrial uses. Since the property is not
immediately ready for use, it is difficult to speculate on the best long term
potential for the property but several factors have been identified to help the
county in their ultimate decision.

The FAA is currently reviewing the Airport Layout Plan (ALP) for Nevada
County Airport. As indicated on the ALP, Lot 6 is proposed for acquisition by
the airport. The ALP designates this area for future aviation use. As shown
on the ALP, Lot 6 is best suited for aviation-related development for the
following reasons:
    • The airport is nearing build-out condition, additional aviation-related
       building area is needed;
    • Lot 6 is contiguous with existing airport areas; and
    • Lot 6 would provide taxiway access to new/existing development.

If the FAA approves the ALP, presumably funding for acquisition of Lot 6
would come from federal funds. This means that revenue (i.e., from
leaseholds) generated from either aviation or non-aviation uses must go back
to the airport.

Alternatively, if Lot 6 is held under private ownership, development would be
guided by ALUC and County Zoning. There would be no FAA involvement; no
contributions to the airport.

The writer of this report believes that the Loma Rica Drive frontage space
(approximately two acres) has the potential for revenue generation to the
Airport District to provide for current and future airport user needs. This
revenue could be generated by market rate leasing of the land and/or
building for industrial uses similar to the City of Auburn Airport.




September 2005                                                               24
  Loma Rica Drive Area Economic Development/Redevelopment Report



  Based on the current development in the project area, the ideal use for a
  portion of the property adjacent to Loma Rica Drive could be industrial
  related and/or support services to existing businesses. Examples of such
  businesses identified in the business survey include:
      Ø Propeller, engine and avionic shops
      Ø Solar module company
      Ø Wood working businesses
      Ø Plating shops

  Also identified as desirable by airport commissioners are warehousing and
  distribution centers that would fly in and out of the adjacent airport.

  While a complete fiscal analysis is beyond the scope of this project a brief
  comparison of the economic effects based on targeted industry uses vs.
  aviation related is shown in the following table.

                                   Table 13
            Comparison of Multipliers and Pay for Select Industries
                                                    Multiplier
Description                                 Earnings    Employment   Weekly Pay
Courier delivery services (Fedex)            2.1505         2.2857   $   505.00
Electronic Instrument Mfg (avionics)         2.3440         3.2563   $   838.00
Fabricated Metal (propeller mfg)             2.1671         2.3768   $   675.00
Flight training facility                     2.1383         1.8205   $   305.00
Machine Shops                                2.4766        3.6091    $   616.00
Solar Equipment Wholesale                    1.9010         2.2244   $  878.00
Support Activity for Air Transportation      2.1505         2.2857   $   554.00
Wood Kitchen Cabinet Manufacturing           2.2865         2.1674   $   563.00

  Based on this analysis the highest use based on e      conomic impact to the
  county would be Machine Shops, which generates 2.6 jobs for every one
  created. Electronic Instrument manufacturing generates 2.2 additional jobs
  for every employee and has average weekly pays rates of $838. With an
  employment multiplier of 1.82 and average weekly pay of $305, Flight
  training facilities would have the least economic impact.

  Any development project located in the study area would need to be
  analyzed from two perspectives – land use related issues and financial
  feasibility issues.

  Land use related issues would have to analyze impacts on the following, at a
  minimum:
           • Traffic – the current situation has been identified as congested
              and constrained by a single access in and out of the property.
              These issues would be further impacted by most potential uses,



  September 2005                                                            26
Loma Rica Drive Area Economic Development/Redevelopment Report

                 but    most       specifically by    any   activity such   as
                 warehousing/distribution and retail which would generate
                 additional traffic flows.
           •     Airport compatibility – any development in the area would
                 need to address the concerns of the Foothill Airport Land Use
                 Commission Compatible Land Use Plan (CLUP) related to public
                 health and safety issues and noise sensitive land uses. Most
                 industrial uses are compatible adjacent to airports, but the
                 Comprehensive Land Use Plan for the Nevada County Airport
                 should be reference prior to project approval.
           •     Septic and water needs would also have to be analyze and
                 planned for based on the specific use proposed.

Financial feasibility – any potential project identified should be analyzed for
financial sustainability, potential revenue generation and appropriate use of
public funds.
           • Financial sustainability – part of any project where public
              incentives are being should look first at the feasibility of the
              project. This due diligence review can be conducted by a third
              party who could provide an analysis of projected cash flows and
              a break even analysis.
           • Potential revenue generation – factors that should be taken
              into consideration should include the potential for generating
              revenue to offset the costs o f maintenance and operations of the
              airport. Most similar airport operations are looking at charging
              at or near market rates for leased facilities and evaluating long
              term leases on a three to five year basis to adjust for current
              market conditions.      With the current constraints on public
              finances this is one way to ensure the long term viability of the
              airport facility.
           • Appropriate use of public funds – all federally funded
              projects, such as CDBG, currently require a fair share allocation
              analysis and/or a return on investment analysis to ensure that
              public funds are not unduly enriching private enterprise. For
              projects benefiting nonprofits, this analysis would look at the
              offsets to use of other public funds. Public funding can be use
              to meet public needs that have been identified by the local
              government, including job creation, but the project still needs to
              be analyzed by a third party for appropriateness.

One recommendation for assisting the airport commission and county in
deciding on potential use of Lot 6 is to outline the parameters for an
expectable project, which could include public benefit goals. However, any
project should also be reviewed based on the above land use and financial
criteria.




September 2005                                                               27
Loma Rica Drive Area Economic Development/Redevelopment Report



TIG Job Benefit Analysis


Employment Projections
Based on interviews and survey information from businesses in the Loma
Rica Drive area, thirty-one of the companies contacted anticipate adding
employees over the next five years for a potential employment growth of
302, a thirty-eight percent increase. Of these jobs, 201 or 66.5% are
projected to be semi-skilled or unskilled positions which would be available to
the targeted income group (TIG).

The majority of the new semi-skilled or unskilled employment opportunities
would be in the manufacturing sector with one company projecting more
than half of the estimated new employment. The occupations of the
projected jobs would be predominately:
   • Assembly and fabrication (73%)
   • Woodworking (15%)
   • Automotive Technicians (11%)

While most of employees in the above occupations receive on the job
training, the following basic skills are necessary:
    • Good reading ability
    • Basic math and computer skills
    • Ability to follow detailed instructions
    • Manual dexterity

When asked to rate the supply of labor, Semi-skilled and Unskilled labor was
ranked as Fair or Poor by more than 85% of the businesses.
Specific skill sets that were identified as missing in the local labor pool
include:
    • Basic Mechanical ability
    • Math skills
    • Work ethic
    • Desire to learn a trade

Linking Employment to Targeted Income Group (TIG)

The following information was gathered from the Workforce Connection One
Stop (Career Center), and CalWORKS for Nevada County.

Target Income Group (TIG) population characteristics

   •   Most of the Nevada County clients that come to the career center
       come as laid off or as a dislocated worker. Some clients have been



September 2005                                                              28
Loma Rica Drive Area Economic Development/Redevelopment Report


       injured on the job and request to retrain into another profession. For
       example, construction workers are seeking to retrain as Building
       Inspectors. 20% of their clients are on assistance (SSI, Food Relief, or
       Disability).

   •   Clients seen in CalWORKS are 100% TANIF (Temporary Aid to Needy
       Families).

   •   Women clients outnumber men (60%-40%) and 15-20% of clients
       seen are over the age of 55. Average age of client is between 22-45
       years of age.

   •   Due to demographics, only 5% of clients are of minority.

TIG Issues and constraints

Soft Skills Needed:
   1. Basic life skills (clothing, checking account, scheduling)
   2. Basic work ethics (timekeeping, promptness, reliability)
   3. Spelling and grammar skills
   4. Basic computer skills
   5. Office etiquette
   6. Customer service skills
   7. Needing a GED

Employment Impediments:
  1. Childcare for those who work nights/weekends
  2. Lack of job training in the area
  3. Lack of vehicle/public transportation
  4. Lack of job skills, meeting the labor market demands
  5. Homeless
  6. Proper clothing
  7. Moving to a rural area with the perception of the “greener grass”

The career center partners with CalWORKS, ROP, Department of
Rehabilitation, Sierra College, Probation, EDD, Veteran Services, Schools and
Mental Health as an interagency referral system to assist their diverse
clientele: from never having worked before to having a PHD.




September 2005                                                               29
Loma Rica Drive Area Economic Development/Redevelopment Report


Job / Skill Demand
Current skills in demand:
   1. Fast typing speed
   2. Computer software skills
   3. Customer Service Skills

Current jobs in demand:
  1. Service Industry
  2. Laborers
  3. Construction
  4. Medical – LVN’s
  5. Warehouse workers
  6. Light manufacturing
  7. Truck Drivers
  8. Bookkeepers

Strategies Applied to Link Employment
CalWORKS provides employees with How To sessions on:
   1. Getting a job;
   2. Interviewing;
   3. Job searches;
   4. Creating resumes;
   5. Exploring the labor market.

They also have Job Clubs, where the large or small employer comes in to
make a presentation to job seekers on the benefits of working for their
particular company.

Current strategy for matching TIG to job opportunities:
   1. Work Experience first then transitioning to On-the-Job training;
   2. Job training staff coordinating efforts with Economic Development;
   3. Marketing Work Opportunity Tax Credits and On-the-job Training;
   4. Assisting in CDBG monitoring including the recruitment for business
      loan clients;
   5. Establishing a job-seeker e-mail database with Cal Jobs listings;
   6. Preparing job-seekers to be competitive in resume, interview skills
      through job clubs, job talk recruitments and job fairs;
   7. Job Development Activities – visiting employers and learning
      recruitment processes;
   8. Creation of Business Advantage Network – collaboration of all job
      development/workforce development agencies.




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Loma Rica Drive Area Economic Development/Redevelopment Report



Potential for Redevelopment Area

Part of the scope of this project was to analyze the Loma Rica Drive project
area for potential formation of a Redevelopment Agency under the California
Redevelopment Law. Redevelopment is a process created to assist local
government in eliminating blight from a d       esignated area, and to achieve
desired development, reconstruction and rehabilitation including but not
limited to: residential, commercial, industrial and retail.

A redevelopment plan presents a process and a basic framework within which
specific projects will be undertaken. The plan provides the Redevelopment
Agency with powers to take certain actions, such as to buy and sell land
within the area covered by the plan (project area), improving dilapidated
facilities and to use tax increment financing.

The basic reason for establishing redevelopment projects is to secure funds
to attract commercial, industrial, and residential development in order to
eliminate blight and improve an area. The State Law makes available to
Redevelopment Agencies a method of obtaining funds called “tax increment
financing.” On the date the Board of Supervisors approves a redevelopment
plan, the property within the boundaries of the plan has a certain total
property tax value. If this total assessed valuation increases, most of the
taxes that are derived from the increase go to the Redevelopment Agency.
These funds are called “tax increments.” Usually, the flow of tax increment
revenues to the Agency will not be sufficient in itself to finance the full scope
of redevelopment activities and development projects. Therefore, agencies
issue bonds. These bonds are not a debt of the County and are repaid solely
from tax increment revenues. Tax increments can be used only in the same
project that generates them, except for residential projects that benefit low
and moderate-income households.

It is important to note that a higher tax from the sale, development, or
rehabilitation of property reflects a rise in property value and “not” an
                                          m
increase in tax rate. Until a property is i proved or sold, assessed values
and tax rates in redevelopment areas are restricted by Proposition 13
limitations.

Under California Redevelopment Law an extensive determination analysis of
physical and economic blighting conditions and other factors are required to
determine the project area inclusion. Within the Loma Rica Industrial park
area, conditions which could be determine as blighted include the lack of
curbs, gutters, sidewalks and the underdevelopment of infrastructure
allowing for the expansio n of businesses. Deteriorating roads and lack of
sewer were identified in the business survey and would be considered
blighted conditions.



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Loma Rica Drive Area Economic Development/Redevelopment Report



Some potential goals for of a redevelopment project area within the Loma
Rica Industrial area could be:

   •   Elimination or amelioration of constraints to development, including
       without limitation, accessibility constraints that interfere with proper
       development by providing, as may be appropriate, street, interchange,
       or other improvements.
   •   Elimination or amelioration of other deficient or substandard public
       infrastructure conditions including off-street parking; deficient,
       undersized or poorly located utilities; inadequate fire protection
       facilities; or other similar public improvement deficiencies adversely
       affecting the project area.
   •   Provision of assistance, as may be appropriate, to property owners,
       businesses, and investors to facilitate the rehabilitation or construction
       of buildings suitable for job generating light industrial, distribution and
       services uses.

Although the area does meet the basic blight criteria for a redevelopment
area, it is doubtful that the tax increment generated back to the county
would warrant the expenditures necessary to form an agency.

An analysis of industrial zoned land within the project area shows that the
majority of the parcels (56.5%) were valued within the last five years. This
would indicate that the properties either changed hands or were improved
within that timeframe. Several of the parcels valued prior to 1990 are
currently proposed for development, leaving very little vacant land and/or
opportunity for future private investment.

                                  Table 14
                 Loma Rica Area Industrial Land Assessments
                                                   No Improvements
             Year Assessed    Parcels    Acres     Parcels   Acres
             Pre-1990            26      74.35       18       33
             1990 - 1995         14        2          0        0
             1996 - 1999         14      82.57        2      2.78
             2000 - 2004         70      95.98        4        7
             Totals             124      254.9       24      42.78

Based on these calculations and the fact that the area will likely be annexed
by the City of Grass Valley within the next five to seven years, we do not
recommend moving forward with the formation of a redevelopment agency.
However, for the purposes of identifying that process, the estimated tasks for
implementing a Redevelopment Agency would include:
         1. Blight Analysis and Project area existing conditions report;
         2. Financial Feasibility analysis



September 2005                                                                 32
Loma Rica Drive Area Economic Development/Redevelopment Report

           3.    Preparation of a Redevelopment Plan as noted above;
           4.    Notification of intent to impacted agencies;
           5.    Public Hearings
           6.    Environmental Impact Report

Estimated cost for an initial blight analysis is $50,000, which could be funded
through a CDBG Planning and Technical Assistance grant.

A complete redevelopment plan describes the purposes, goals, and objectives
aimed at eliminating existing physical and economic blight. The
redevelopment plan must be in harmony with the County General Plan. A
redevelopment plan generally contains the following components:

   •   A legal description of the project area in written and graphic form and
       a description of land uses;

   •   A description of the proposed actions to be taken to carry out
       redevelopment, covering the duties, powers, and authorities of the
       redevelopment agency as well as describing the rights of owners and
       tenants;

   •   A description of the authority and limitations for financing the activities
       necessary to implement the plan; and

   •   A plan for how the agency will implement redevelopment projects to
       remove the blight.

The estimated cost for completing a redevelopment plan is $500,000.

For the purpose of accessing CDBG funding for economic development
projects, there is an alternative to formal designation as redevelopment
agency. If a project is designed to meet the national objective of eliminating
slums and blight, a formally adopted Resolution identifying the site or
building based upon the definition of blight included in the California Health
and Safety Code. A sample resolution is included in this report as Appendix
5.




September 2005                                                                  33
Loma Rica Drive Area Economic Development/Redevelopment Report

Resources


Training Resources

Employment Training Panel (ETP)
Provides funds to employers to train California workers who are currently
employed or who are drawing or have exhausted Unemployment Insurance
benefits and to small business owners. ETP contracts with employers, groups
of employers and training agencies to increase the efficiency and
competitiveness of businesses by funding new or upgraded skills training to
the state's workforce. They can assist you with developing and administering
this program.

Training Through The Workforce Investment Act (WIA)
The purpose of WIA is to promote an increase in the employment, job
retention earnings, and occupational skills attainment of the local workforce.

   •   Occupational classroom training
   •   On-the-job training
   •   Internship and short-term work experience jobs
   •   Youth development and training programs

Training can be at a variety of private or public institutions (trade schools,
business colleges, and local colleges) for eligible persons through Individual
Training Accounts. Visit http://www.goldensierra.com for more information.

On-The-Job Training (OJT)
Partial wage reimbursement for training costs up to 50% for qualified
applicants. The length of an On-The-Job Training contract depends on the
period of time needed to train the individual. Reimbursement is performance-
based and is generally spread out over a period of six months. For more
information, call 530-889-4090.

Sierra College Economic Development
Customized Workforce Training:

   •   On-Site Computer Skills Training - Provides computer training
       based on employer needs. Fees are charged on an hourly basis.
       Employees are instructed in a 15-station computer lab on the work-
       site or in another location, depending on employer needs.
   •   Fee Based Training - A network of faculty and consultants can
       provide training on virtually any topic. Fees are charged on an hourly
       basis. Topics include supervisory training, new hire training, and a
       wide variety of hands-on technical classes.
   •   On-Site Credit Classes - Allows most credit courses in the college
       catalog to be conducted at the work-site. Participants complete an




September 2005                                                                  34
Loma Rica Drive Area Economic Development/Redevelopment Report

       application and registration form. Minimum registration is generally 15
       students.

GRANT FUNDED TRAINING. The Community College Chancellor's Office
provides various levels of funding for specific training projects. Training
programs can be structured to fit production demands. Training may be fully
or partially funded by state grants.

CENTER FOR APPLIED COMPETITIVE TECHNOLOGIES (CACT). Provided
by Sierra College's Rocklin campus. Helps California's manufacturing industry
compete successfully in the global economy. Serves California industry by
preparing the workforce for the technological challenges of tomorrow. Initial
consultations and site-visits are provided at no charge.

SMALL BUSINESS DEVELOPMENT CENTER (SBDC) Provides assistance in
the areas of general management, business planning, financial resources,
and marketing services to those who own or plan to own a small business.
The center offers information and referral services, business consulting,
management assistance, business education and training, publications,
videotapes, and Business Start-Up Kits for small businesses.

Internships With 49er Regional Occupational Program (ROP)
ROP is a part of a statewide program designed to bring education and
business together. ROP provides career preparation for high school students
and adults through classroom academics, skill training and through hands-on
training taught through internships at local businesses and industry.


Financing Resources

Infrastructure State Revolving Fund Program
The Infrastructure State Revolving Fund (ISRF) Program provides low-cost financing
to public agencies for a wide variety of infrastructure projects. ISRF Program funding
is available in amounts ranging from $250,000 to $10,000,000, with terms of up to
30 years. Interest rates are fixed for the term of the financing.
http://ibank.ca.gov


Industrial Development Revenue Bond Program
The Industrial Development Revenue Bond (IDB) Program provides tax-exempt
financing for qualified manufacturing and processing comp anies for the construction
or acquisition of facilities and equipment. IDBs allow private companies to borrow at
low interest rates normally reserved for state and local governmental entities.
http://ibank.ca.gov


501(c)(3) Revenue Bond Program
The 501(c)(3) Revenue Bond Program provides tax-exempt financing to eligible
nonprofit public benefit corporations for the acquisition and/or improvement of
facilities and capital assets. Typical borrowers include cultural, charitable and




September 2005                                                                          35
Loma Rica Drive Area Economic Development/Redevelopment Report

recreational organizations, research institutes and other types of organizations that
provide public benefits.
http://ibank.ca.gov


Exempt Facility Revenue Bond Program
The Exempt Facility Revenue Bond Program provides tax-exempt financing for
projects that are government-owned or consist of private improvements within
publicly-owned facilities, such as private airline improvements at publicly-owned
airports.
http://ibank.ca.gov


Governmental Revenue Bond Program
The Governmental Revenue Bond Program provides tax-exempt financing to
governmental agencies. Examples of financings completed include $1.1 billion for the
California Department of Transportation for the Toll Bridge Seismic Retrofit Program,
which includes the replacement of the East Span of the San Francisco-Oakland Bay
Bridge, $10 million for the Port of Stockton for infrastructure improvements on the
former U.S. Navy facility on Rough and Ready Island in order to implement its initial
reuse, and $300 million for the State Water Resources Control Board's Clean Water
State Revolving Fund Program, which provides low-cost loans to local agencies
throughout the state for wastewater treatment and water recycling facilities.
http://ibank.ca.gov


Rural Investment Tax Exemption (RITE) Program
The RITE Program provides a partial sales and use tax exemption to qualifying
businesses in twelve designated high-unemployment counties. The amount of
exemption that can be awarded is capped at an aggregate of $5 million per year.
http://ibank.ca.gov


Tools to Revitalize California Communities
This reference guide from the State Treasurer's office provides an overview of
community revitalization financing, types of public investment tools, and gives basic
information on select public investment programs available in California.
http://www.treasurer.ca.gov/cdiac/reports/tools04-4.pdf


California Financing Coordinating Committee (CFCC)
The CFCC consists of state and federal agencies and departments that work together
to offer coordinated and streamlined access to subsidized infrastructure financing for
California's local communities.
http://ibank.ca.gov


California Infrastructure and Economic Development Bank
The California Infrastructure and Economic Development Bank (I-Bank) was created
to promote economic revitalization, enable future development, and encourage a
healthy climate for jobs in California. The I-Bank has broad authority to issue tax-
exempt and taxable revenue bonds, provide financing to public agencies, provide
credit enhancements, acquire or lease facilities, and leverage State and Federal



September 2005                                                                          36
Loma Rica Drive Area Economic Development/Redevelopment Report

funds. The I-Bank's current programs include the Infrastructure State Revolving
Fund (ISRF) Program and the Revenue Bond Program. The ISRF Program provides
low-cost long term financing to public agencies for a wide variety of infrastructure
and public improvements.
http://ibank.ca.gov


Community Development Block Grant, Over the Counter Component
Grants are available through the State to create or retain jobs for low-income
workers in rural communities. Grants are available up to $500,000 for eligible cities
and counties to lend to identified businesses, or use for infrastructure improvements
necessary to accommodate the creation, expansion, or retention of identified
businesses. Eligible activities are for the creation or retention of jobs for low-income
workers. May include loans or loan guarantees to businesses for construction, on-site
improvements, equipment purchase, working capital, and site acquisition. May also
include loans for business start-ups, grants for publicly owned infrastructure, and
loan or grants for small business incubators. Applicants may apply for two-year
awards with a maximum award of $500,000 per year and a maximum total award of
$1,000,000 for two years. After September 1 of each program year a jurisdiction
may request a funding gap waiver of the maximum OTC award limit.
http://www.hcd.ca.gov


Other State and Federal Funding Programs
http://ibank.ca.gov




September 2005                                                                         37
                          Appendices



Appendix 1 – Survey Instrument and Results

Appendix 2 – Products and Services

Appendix 3 – Targeted Industries for Nevada County

Appendix 4 – Addendum to Brunswick Corridor Study

Appendix 5 – Sample Resolution
                                                                                        Appendix 1
                                     BUSINESS BACKGROUND

1. Company Name: _____________________________________________________________

2. Address: ___________________________________________________________________

3. Telephone:_________________________ 4. Email:               ______________________________

5. Fax: _______________________________ 6. Website: _____________________________

7. Person Interviewed, title: ______________________________________________________

8. Category of Business:
           a. Manufacturing     24                     e. Service 18
           b. Retail              4                    f. Distribution / Warehousing 4
           c. Agricultural       0                     g. Construction 0
           d. Wholesale           2                    h. Finance / Insurance/Real Estate 0

9. Products or services: ________See Attached_______________________________________

______________________________________________________________________________

10. Type of Organization:
            a. Sole Proprietorship   15                e. Nonprofit 1
            b. Partnership            3                f. S-Corporation 10
            c. Corporation           22                g. Division 0
            d. Subsidiary            1

11. If subsidiary or division, where is headquarters located?
__________________________ See Attached _____________________________________

12. Where are the majority of your customers located:
           a. Within Nevada County             23     e. Regional               2
           b. Northern CA                       9     f. National              12
           c. Southern CA                       0     g. International          8
           d. Statewide                         2


                        FACILITIES & EXPANSION INFORMATION

13. Do you have any infrastructure issues associated with your current location?

       Yes__28__ No__22__

14. Do you use the internet in the course of doing business?

       Yes___43_ No___8_

15. What percentage of your business is done online?________ See Attached _____________

                                                   1
                                                                                            Appendix 1
16. What type of access do you have?_____________ See Attached _____________

17. Please describe the speed:

       _0__Almost useless for practical business purposes
       _5__Very slow
       _22__Adequate speed for our current business needs
       _17__Very fast; able to handle current and anticipated needs

18. How important is faster internet service to operating and growing your business?

       _17___Not important at all
       _14__Important to current and anticipated needs
       _13__Absolutely essential; a critical factor in where company is located in future

19. What would you be willing to pay for faster internet service?_____ See Attached ___

20.   What do you like best about your current location?_____ See Attached ____________

______________________________________________________________________________

21.   What do you like least about your current location?_________ See Attached _______

______________________________________________________________________________

22. Own __12__ Lease_41___

23. When does your lease expire? (month/year______ See Attached ____________

24. Square footage occupied? ________ See Attached _______________

25. What percentage of your present capacity are you using? (please circle one)
    a. 0-50%     2            b.51-75% 3            c. 76-90% 6 d. Over 90% 41

26. Do you have space available to expand?      Yes _18____      No __33___

27. Do you have plans to expand or move your company? Yes _22___            No _27___

28. Expansion or relocation plan details____ See Attached ____________________________

______________________________________________________________________________

29. If planning relocation to another community, reason for move_________________________

______________________ See Attached ______________________________

30. Will your expansion/move depend on:
    a. State of economy          7       d. Increased demand for your product 7
    b. Availability of financing     1   e. Availability of development incentives 3
    c. Other ___________8__ See Attached __________________________
                                            2
                                                                                             Appendix 1
                                 BUSINESS ECONOMIC ISSUES

31. Does your company have a current business plan?

                Yes___29_ No___21_

32.   What do you see as current trends in your industry?_______ See Attached ________

______________________________________________________________________________

33. Have your sales increased or decreased in the last year?
    a. Increased       41     b. Decreased 6

34. What is the percentage increase or decrease in sales in the last year?
    a. 0-2 6 c. 6-10 8 e. 16-20 6              g. 31-40 2        i. over 50 6
    b. 3-5     4 d. 11-15 4 f. 21-30 6         h. 41-50 0

35. Are you planning a capital investment in the next year?
     a. Yes 21                  b. No           26      c. Maybe 4

36. Amount of capital investment? ____See attached___________________

37. Do you export your product or service to other countries?
    a. Yes           22      b. No 29

38. If yes, what of the following areas do you export to:
    a. Pacific Rim       14     c. Canada       14      e. So. America 6
    b. Europe            12     d. Mexico       8       f. Other ____11 See Attached_______

39. Do you need any assistance with foreign trade issues? Yes – 4; No - 22

40. What type of business or industry would you like to see locate in the County that would
    complement your business? _________________ See Attached __________

41. Are there specific regulatory issues that are creating problems for you as a business?
____________________ See Attached ___________________________

______________________________________________________________________________

42. What is the biggest challenge you currently face as a Nevada County business?
_____________________ See Attached _________________________________________


                           EMPLOYMENT AND TRAINING ISSUES

43. How many full time employees do you have? ___723 _________

44. How many part time employees do you have? ___ 62_________


                                                   3
                                                                                           Appendix 1
45. How many seasonal employees do you hire? ____ 23 ________

46. TOTAL NUMBER OF EMPLOYEES                         ____ 808 _______

47. How many employees did you have five years ago? ___725________________

48. How many employees do you estimate you will add in the next year? __ 60-67___

49. How many employees do you estimate you will add in the next five years? 302 __

50. Of the projected number of new jobs being planned in the next year, what categories will
    they take place in:
       Supervisors/Management         ____4__
       Professional                   ____2__
       Sales/Marketing                ____6__
       Skilled                        ___16__
       Clerical                       ____2__
       Semi-skilled                   ____12__
       Unskilled                      ____4__

51. How would you rate the supply of qualified available labor when hiring?
    1. Excellent   2. Satisfactory       3. Fair        4. Poor

        Supervisors/Management         ______ See Attached
        Professional                   ______
        Sales/Marketing                ______
        Skilled                        ______
        Clerical                       ______
        Semi-skilled                   ______
        Unskilled                      ______

52.     Do you have problems in recruiting new employees?_________________________

______Yes -24_No-16__________________________________________________________

53. What method of employee recruitment do you use most? _______ See Attached _______

54. What other methods have you used?
      a. Walk-ins / Referrals       21 e. Advertising 26
      b. Private Employment Agencies 5 f. Public Employment Service Agencies 7
      c. Schools / Colleges 9          d. Professional Publications 2
      d. Other _____ERC - 2________ROP - 4_________________________________

55.    Of the following list, which would best describe the average commuting time of your
      workforce (one way trip)?
        a. 0-10 minutes 13 c. 21-30 minutes 8 e. 41-50 minutes 0
        b. 11-20 minutes 29 d. 31-40 minutes 2 f. more than 50 0

56. How do most of your employees get to work?
     a. Car 51       b. Carpool     0      c. Bus 1         d. Walk 0         e. Other 0
                                               4
                                                                                        Appendix 1
 57.   Are there specific skillsets that you feel are missing in our local labor pool?________

 ___________________ See Attached ______________________________________________

 58. Have you used any of the local job training programs?

         Yes_19___ No___29__

 59. If yes, which of the following have you used:

         Sierra College Customized Training                         ___4______
         Golden Sierra Job Training Agency                          ___2______
         Employment Development Department                          ___0_____
         Employment Training Program                                ___1______
         Other _ROP - 16___________College Intern - 1________________________________

 60. If yes, how would you rate the local job training programs?
       a. Excellent 8 b. Satisfactory       6 c. Fair        2 d. Poor 6

 61. Please list two major strengths of doing business in this community:
 _______________________ See Attached __________________________________________

 ______________________________________________________________________________

62. Please list two major weaknesses in doing business in this community:
 _________________________ See Attached ____________________________

 ______________________________________________________________________________

 63. What is your overall opinion of our County as a place in which to do business?

       a. Excellent 10     b. Satisfactory 26        c. Fair   12   d. Poor 2

 64. Has your attitude about doing business in Nevada County changed during the past 2 years?

           Yes__13__ No__34__          Improved___2_ Deteriorated___10_

           Reason for change______________ See Attached ________________________

 65. Is there anything the city/county could do differently to improve the well-being
     of your business? __________ See Attached ________________

_______________________________________________________________________________

_______________________________________________________________________________

 66. Is there anything that ERC could do to provide assistance to your company? _____

 __________________________ See Attached _______________________

                                                      5
                                                                                  Appendix 1
67. Would you like to be placed on ERC’s mailing lists for program information?

       Yes_22__ No__11

68. Additional comments_________________________________________________________

_____________________ See Attached ____________________________

______________________________________________________________________________

Interview date______________________ Interviewer__________________________________




                                                 6
                                                                 Appendix 1

       Question 15              Question 16                 Question 19
What % Business Done Online   What Access Type   Willing to Pay for faster Internet
             0                     Dial up                     $200
               0                   Dial-up                       ?
               0                   dial-up                       ?
               0                   dial-up                       ?
               1                     DSL                         ?
              10                     DSL                         0
              10                     DSL                         0
              10                     DSL                      Depends
              10                     DSL                   Double maybe
              10                     DSL                   DSL sufficient
             100                     DSL                    Market rate
             100                     DSL                        N/A
             100                     DSL                        N/A
           10-20                     DSL                        N/A
           10-20                     DSL                        N/A
              15                     DSL                        N/A
              20                     DSL                        No
              20                     DSL                        No
              20                     DSL                        No
           20-30                     DSL                        No
              25                     DSL                        No
              25                     DSL                        No
           25-30                     DSL                        No
              30                     DSL                  Not necessarily
              30                     DSL                  Not very much
              40                     DSL                   Probably not
              40                     DSL                    S/b cheaper
               5                     DSL                        Yes
               5                     DSL                        Yes
               5                     DSL                        Yes
               5                     DSL
              50                     DSL
            5-10                  DSL & TI
              70                 DSL & T-l
              75                 DSL (SBC)
              80                  DSL SBC
              80                 DSL TACIT
              80                   GV net
         Every job                   N/A
          Majority                  SBC
           rarely                   SBC
       response only                  TI
            small
         Very little
                                                                                  Appendix 1
                Question 20                                        Question 21
     What do like best about current
                 location?                                  What do you like least?
A lot of people here (i.e. borrow equip
from)                                         Access

All clients within 15-20 min.                 All OK

Centrally located, near related bus           Better visibility in town, but not cost effective

Close to home                                 California - expensive

Close to home                                 Comfort

Close to home                                 Corp image associated

Close to home                                 Few know of deli

Close to home                                 Getting in tourist transportation

Close to home                                 Like to be visible from mid-airport taxiways

Close to home                                 Loma Rica Rd 1 lane=sitting ducks
Close to home/good landlord/industrial
area                                          Ltd sq. footage

Close to home; general environment            Need more eating establishments

Close to other business                       Need snow removal

Close to UPS & services                       No fire sprinklers
Close to UPS; quieter than being
downtown                                      No loading dock; road safety

Comfortable                                   No visibility; winter access is hard

Convenient                                    Not visible

Convenient - out of traffic; still industry   Nothing

Convenient; likes the snow                    Nothing

Distance from residential uses                Nothing

Easy access to building for shipping trucks   Nothing negative

Easy to find for customers                    Old bldg; occasional property problems
Enjoy airplanes/trees/greenery; not
congested                                     Old, junky, poor impression on customers

Everything is paved                           One access
Good economic value; far from industry
center                                        One access

Good location for this particular industry    One access, especially bad weather

Has loading dock                              One access; roads dangerous in bad weather

Here 23 yrs, well known, OK lease             One access; slow traffic
                                              One access; snow removal problem; and water
Industrial area                               sprinklers

Industrial area                               Only one rd access
                                                                                Appendix 1



             Question 20                                        Question 21
    What do like best about current
          location? (cont.)                            What do you like least? (cont.)

Inexpensive; close to UPS/FedEx              Outgrown bldg

It's in Nevada County                        Parking

Landlord; took over from previous owner      Parking & visibility

Low rent; Prospect customer drive by's       Parking ltd; traffic

Near airport; like facing west               Poor exposure

No competition on industrial park            Rd in/out access; snow problem

Not a lot                                    Rent

Own it                                       Rent

Parking                                      Single access=Loma Rica Dr.

Price                                        Snow

Price                                        Snow

Proximity to airport; 10 years at location   Space problem

Quality of life                              Too confined

Rent cheaper                                 Top of hill where it snows
                                             Traffic problems=dangerous; poor snow
Rent is cheap                                removal
Retail sales not available, keeps retail
customer away                                Truck cost/availability; remote

Solitude & pine trees, no traffic            Trucks parking in front of entry

Space & price; 2 mo at current location      Weather, congestion, fragmented facility

Very convenient; parking adequate            Winter access
                                                        Appendix 1

      Question 23                         Question 24
When does Lease Expire?           Square footage occupied
           2006             Less than 1000 sq. ft.          3
           2007             1000 to 2500 sq. ft.            14
           2007             2501 to 5000 sq. ft.            17
           2008             5001 to 10,000 sq. ft.          5
           2009             10,001 to 20,000 sq. ft.        7
           2010             20,001 to 50,000 sq. ft.        2
         2-3 yrs            More than 50,000 sq. ft.        1
 5 yrs w/2-5 yrs options    No response                     3
         Annually
         Annually
         Annually
         Annually
         Annually
      Annually, Feb
  Annually, in loc 15 yrs
     Annually, June
  Annyally, in loc 28 yrs
        April 2006
 Aug 2006, in loc 15 yrs
        Dec 2005
 Don't know=with County
       has expired
        Jan 2006
        Jan 2006
  Jan 2008; here 10 yrs
        July 2005
        June 2005
       March 2006
        Mo-to-mo
        Mo-to-mo
        Mo-to-mo
      Mo-to-month
        Oct. 2005
 Oct. 2005, in loc 26 yrs
        Oct. 2007
        On-going
    Open, in loc 5 yrs
     Rent=mo-to-mo
        Unknown
                                                                       Appendix 1

              Question 28                               Question 29
Expansion or relocation plan details      Why are you planning to relocate?
                                          4th generation Nevada Co resident -
Building new building in Loma Rica area   doesn't like population increase

Building new building proximate to BUB    Cost of doing business
                                          Nicer to light industry; zoning; afford
Enterprises                               property

Building new facility next door           Personal reasons
                                          Placer County-larger market, County
Building new shop in Nevada               businesses friendlier

During next 5 years, expand on-site       Rent & parking
Expand in current location
Expand on-site
Product Acceptance                                  Question 30
In 5 yrs will look at different State       Expand/Move Depend on Other
Larger hanger to service more planes      Availability of building
Lease adjacent space for storage          Competitiveness of others


Location more visible                     County approval for kitchen
Looking for bldg to own/lease 13-14K      If county advertises airport in
sq ft                                     publications

Need more room for recycling              Lowering overhead, better location

Relocating to So. Auburn St. GV soon      Personal desire to live in Canada
Reno                                      Space

Sold half of business, plan to move       When suitable space available

Stay & expand warehouse or move
Tried to relocate, city ordinances
prevented

Unless take over neighbor's space

Wood shop (apple woods)

Would buy adjacent space

Would like to expand

Would like to move back to town
                                                                                Appendix 1
                 Question 32                                   Question 32
                Current Trends                            Current Trends (cont)

"Steady"                                         More customers moving to cellular
Interest in emphanada production, 70%            More electronics than past, must stay
calls cultural influences                        current
                                                 More emphasis on recycling & longer
Always a need for used equipment                 solid waste disposal hauls
Business is growing due to new                   More internet shopping, home -based
construction                                     bus, more competition; go international
                                                 More of PRIDE’s wk going overseas;
Business slowing since 9/11/01, economy          want more for less; more tech
Consolidation                                    More overseas competition - Far East
Contractors running mills                        More restrictions
Cycles w/economy; strong rebound from            More routine work; less repairs;
econ recovery                                    generally new cars
Direct repair facilities (0 insurance adjusts,
less field inspectors)                           Necessity for better service

Doesn't change                                   Noise & smog issues potential negatives

Extremely busy                                   None

Fewer printing companies                         Outsourcing (China) & competition
Flat                                             Pretty much flat
Flat since 9/11; Resort travel down;
overbuilt                                        Remodel industry is growing

Gas prices could kill RV consumption             Shows closing; clients shutting down
Good pellet stove heating is becoming            Solar panel shortage=hampers growth
popular                                          associated with equip, resolve in 2006
Growth                                           Steady
                                                 Steady, more people want to customize
Higher prices                                    vehicles

Increase in home brewing & beverage
Increase resident bldg=lack of quality sub-
contractors

Internet competition

Is growing
Leaving country due labor costs, can't
compete
More competitive due to cheap foreign
trade
                                                                       Appendix 1
  Q. 36 Amount of Capital                          Question 40
        Investment                       Type of Business to Complement
          $12,000.00              "Head hunters"
          $20,000.00              Activities that showcase vehicles that are custom
          $20,000.00              Any business for people to eat
          $20,000.00              Any business would help
          $25,000.00              Any business compliments my business
          $40,000.00              Any type
                                  Automotive & radiator manufacturer
          $50,000.00              w/warehouse

          $50,000.00              Builders/construction

          $50,000.00              Brew pub
          $65,000.00              Business that need to fly in & out of area.
          $75,000.00              Fabrication facility
          $80,000.00              Hardwood & plywood supplier
         $175,000.00              High tech industry & high pay jobs
         $200,000.00              In and Out Burger
         $200,000.00              Light manufacturer; affordable housing
         $400,000.00              Manufacturer/production; care homes
         $500,000.00              Manufacturers

         $500,000.00              More high tech business

        $1,000,000.00             More insurance offices
                                  More local companies that use machines
Question 38 Export to - Other     Not sure
              Asia                Plastic manufacturer
    Caribbean, Middle East        Plating shop
             China                Propeller, engine, avionic shops
         China, Ireland           Small manufacturers/nonprofits
             India                Solar module company
      Israel, Middle East         Suppliers

            Japan                 Transport for long hauls; better communications
           Mid East               Ultra high pressure water co; need equip repair
         New Zealand              UPS franchise store
          Puerto Rico             Values Loma Rica suppliers
  Variety - Australia, military   Variety of users/manufactures raw material
                                  Wood industry

                                  Woodworking business
                                  Would County become customer & not buy out of
                                  area
                                                  Appendix 1

                  Question 41
  Regulatory issues that create problems

Assessment tax on equip

CA taxes, workers comp, health insurance
City ordinance prevent bldg shop= Whispering
Pines
Cost of freight, extra for pallet to Sacramento

County Planning dept=slow turnaround time

County regulation=No fluid storage 55 gals+

EPA


Homeland security act=paperwork; NAFTA

Live in fear of labor laws
Nevada Co sign permits tough; City OK but
long

No, but bldg codes are difficult

None, only family employees

Not yet; Fire Dept picky

Perhaps - why so few buildings available

Various County dept taxes

When are traffic fees pd by local contractors?

Workers' Comp

Workers comp, state labor policies
Workers' comp; labor laws re: lunch after 4.5
hrs

Yes, Disposal of cutting fluids
Zoning
                                                                              Appendix 1

                    Question 42                                     Question 42
               Biggest Challenge                             Biggest Challenge (cont)

Affordable housing for employees                    Loma Rica access to Brunswick

Bad pars (no compensation for labor)                Maintain position w/other partners

Bldg usage code requirements                        Making money
                                                    Need pro-bus airport mgr; County to
Business climate in Nevada Co & CA                  promote airport

Competition=FedEx, etc                              None, business is good
                                                    Personal finance, low wages, lack of job
Cost of doing business                              opportunities

County doesn't use our services enough              Qualified employees

Customers move; residential care homes closing      Quality labor

Economic cycles                                     Recent relocation = not visible to public
                                                    Remaining solvent; Staples hurts small
Fees/tax/workers comp                               business

Finding buildings available                         Remote location

Finding customers                                   Reporting to the State
                                                    Shipping cost, need local shipping
Finding/obtain customers                            company

Fire insurance & lack of County water               Skilled Labor

Getting qualified employees                         Talent

Greater international competition                   Taxes, health ins, employee housing
Growth, requiring manufacture
assembler=housing                                   Time

Home based shops not subjects same taxes            Trash tax increase
                                                    Vitality of construction industry
Increase of profit=everyone's bus                   threatened

Insurance, taxes, workers comp                      Workers comp

Keep food cost down; decent employees               Workers comp/health ins/labor pool

Keep up w/current tech                              Workers comp/insurance cost

Lack of County service requirements                 Would benefit airport commutes

Local government

Location, get parts in/out of area; 1 hr from Sac
                                                     Appendix 1




                 Questions 51
How would you rate the suppley of qualified labor?


 Supv/Mgmt Rating              Clerical Rating
Rating   Response          Rating       Response
   1         1                1             1
   2            3             2            4
   3            2             3            2
   4            2             4            1
 Professional Rating        Semi Skilled Rating
Rating     Response        Rating      Response
   1           2              1            1
   2            2             2            1
   3            1             3            4
   4            2             4            8
 Sales/Maktg rating           Unskilled Rating
Rating    Response         Rating      Response
   1          1               1            0
   2            2             2            3
   3            2             3            3
   4            1             4            6
     Skilled Rating
Rating       Response
   1              2
   2            5
   3            7
   4           11
                                          Appendix 1
              Question 53
         Recruitment Method
Ads, EDD
Ads; word-of-mouth
Agency
CalJOBS
Industry publications
Internet (3)
Newspaper (5)
Radio
Referrals
Sac & Northrup College
Temp agencies (3)
Word of mouth (3)




               Question 57
              Skills Missing
Aircraft/power plant mechanics
Basic math & writing skills
Dedication
Diesel mechanics
Engineering/tech
Ethics/dependable/drug free
Lower skill level- average eng/math
comprehension
Machining skills=no high
school/community college training
Mechanical/tech aptitude
Metal work=hand-scrap lathes
Middle mgmt
Not focused
Not qualified pilots, plane mechanics &
radio
Pencil drafting=hand-eye
coordination=dying art
Personal responsibility
Poor work ethics
Spelling
Work ethic (5)
Work ethic, motivation
Work ethic, professional attitude &
background
Yes, trade skills
Young folk don’t work hard
                                                                               Appendix 1
                                      Question 61
                  Major Strength of doing Business In this Community
                                                 QOL=people want to live here; better
Allows seeing customers often                    value for labor
Be able to live here                                 Quality of life (3)
                                                     Residents support recycling & know of
Beautiful area                                       available service
Business diversity; cottage industry                 Rural=good for bus
Community lifestyle                                  Small community, business friendship
Community loyalty                                    Small community, less traffic
Effective networking & promote access ease           Small, right size for Nevada Co
Employee dedication/loyalty                          Smallness/intimacy
                                                     Strong sense community; QOL; short
Filling a need; Work & live here                     commute
                                                     That we can do bus; overhead, etc.
Friendly people; rural lifestyle                     lower
Great place to live                                  Very supportive community
                                                     Wide variety of comp limentary
Great place to live & raise kids                     businesses
Great place to raise kids & make living              Word-of-mouth ads, repeat customers
Growing & many drive 4WD                             Word-of-mouth referrals
Lack of competition
Like living & working in same community; have
used & new furniture
Living environment
Local bus support, family oriented bus, electronic
designer pool
Located next to Grass Valley
Location
Location; ice & snow
Location; quality home
Network of local small business owners
People & beauty
People here because they want to
People like to deal; mom & pop bus
People/quality of life; meteorological climate
Proximity to services; local people interaction
                                                                             Appendix 1

                                          Question 62
              Major Weaknesses of doing Business In this Community

Access to people                               Must go out of county for tools/supplies
Affordable housing/community problem;          Need more adult ed from Sierra Col=tools
planned central industrial area                for bus
                                               Not enough customers & exposure to
Available workforce low                        community
Can't afford house; not enough industry        Remote from product source
Co government weak support to airport          Remote location
Commercial land expensive to own/lease         Remoteness=customers hard to find
Competition; County & other bus shop
out of area                                    Residents spoiled=expect things for nothing
Difficulty in getting accepted by local
manufacturers                                  Sluggish economy
                                               Too small for last min needs & good
Expenses                                       infrastructure
Expensive; weak labor pool;
topography=limits size                         Travel time to airport

Financial growth low                           Vary rural=w ear/tear on vehicle; cost high
Finding adequately skilled employees; not      Wages low if worked for other; bus
enough jobs for young people                   slow=auto part stores out price me
                                               West coast time tough; have different bus
Get quality employees, high housing cost       on East Coast
Hard to locate/access; away from metro         Workers comp/ins; bldg regulation
Hassle factors - road -billing for
regulation                                     Zoning prohibitive for many
Home based business, under-table
business; no afford commercial property
Inability to get good location
Incoming shipment costs to GV vs metro
area
Labor & Zoning
Labor lacking
Labor pool; California business climate
Lack of qualified employees,
transportation
Little remote for customers & limited
available buildings
Local economy
Local government slow on sign permits
Location from mainstream; shipping costs
Low wages=folk don’t eat out
Ltd pool of customers
                                                                         Appendix 1

               Question 64                                    Question 65
        Reason for Attitude Change               Improve the business well being (Cont.)
Business gone down because airport doesn't     Create welcome environment to new business
support business                               for synergy to exist bus

California business regulations                Get rid of bus inventory tax, 2-3 days prepare
Co government t start to realize airport is    Improve Loma Rica Dr. traffic pattern; fire
asset                                          station in business park
Concerned others leaving; costly for bus to
come                                           Improve roads
                                               Improve roads; more activities to show custom
County doesn’t appear desire econ expansion    vehicles
Economics tougher to handle                    Increase # of manufacturing companies
Frustration with zoning                        Inform public that radiators are repairable.
                                               Infrastructure to Loma Rica roads, need
Global economy; not community economy          pedestrian trails to & thru Loma Rica
Hassle comb ined w/economic decline            Less fees, bldg taxes
                                               Lower trash fees & prop tax; use tax $=fix
Little recognition where money comes from      roads
Local government seems to want only tourist
business / restaurants                         Magazine ads; keep in touch w/business
Public awareness of my business                Maintain roads better; traffic increase impact
Struggle to thrive; expenses high              Maintain roads; signage at park entrance
                                               Many - help business diversity
                 Question 65                   Not enough access to State elected officials
                                               Perpetuity among local business for
                                               housing=drive workers out; no low income
     Improve the business well being           housing
Address lobbying at State level                Recycle glass from my company
                                               Require mandatory service in dense geographic
Agreed upon economic plan                      areas
Be more bus friendly=Permit/design review
very unfriendly;                               Road access
Better access road, more control of speed      Safety, fire & traffic issues
Check on Fire Dept taxes; crack down on
home bus; zoning; afford property              Snow removal
Clear local roads during bad weather for all   Streamline permit process, be consistent in
Loma Rica businesses                           implementation
Co unfair on site visits=strict on some,       Support that we're here at the airport. Many
others slide                                   bus don't pay share taxes/ins
Controlled growth, don't turn GV into
Roseville                                      Workers Comp – self-insure in County
                                               Workforce housing/trans enhancement; need
                                               infrastructure before developing
                                               Zoning
                                                                        Appendix 1

               Question 66                                  Question 68
             ERC Assistance                            Additional Comments
"Possibly"                                  "Painless survey"
#1 unfair entity in county                  Already on ERC list.
                                            Be our voice of the little guy, the working
Additional E-commerce training              stiff, struggling bus owner.
Advertise airport; personal property tax    Biggest concern is polarization of
revenue for planes                          residents=high vs. low income workers; gas
                                            Coordinate program to ferry plane
                                            owners/passenger from airport to
Asst in leasing current building            attractions; integrate w/tourist ads

Be business voice to elected officials      County looks for ways to stop you.
                                            Is sole proprietor, recently moved bus from
                                            Gra-Neva Building. No employees Repairs
Been very helpful                           radiator, bus slow

                                            ERC is interested in large manufacturers,
Continue spearhead political influence      not small service businesses.
Continue to be advocate for small           For ERC mailing: 10741 Cedar Way; Grass
business                                    Valley 95945
                                            Housing costs too high for employee;
Continue to market Nevada Co to             restaurants w/room for large business
companies                                   dinners
                                            Larry's doing good job, wants to get
ERC has impacted business environment       involved in 49 ROP; Needs a contract.
Expert leads, always looking                May radio guest.

                                            Need road improvements in Nevada City &
Finding financing for growth                Grass Valley, too many on too few roads

Good website - helpful to refer job         Needed affordable website consultant to
seekers                                     increase sales= SBDC not interested
Grants                                      Survey is a great idea.
                                            Will not expand because doesn't want the
Help with employment issues                 hassle (words of interviewer)

I went to one meeting & didn't fit in.      Will see ERC activities listed in The Union.
                                            Workers comp/health ins for
Interested in ERC buyer-supplier function   employees=cuts into profits.
                                            Would like to get away from rules & use
Keep in touch                               logic
More time communicating
Need more focus on bus w/semi/unskilled
labor
Possibly synergy w/prod suppliers
Regular surveys to see changes & report
to government
They're fabulous
                                                                     Appendix 2

Loma Rica Industrial Park Business Product and Services

  Auto pattern cutting equipment & product application software
  Auto service
  Automotive restoration - upholstery
  Aviation Services
  Books, DVDs, gifts, etc. - 800+ items
  Business Furniture
  Buy/sell & list GVG/Thomson/Phillip equipment
  Cabinets & millwork - residential only
  Collision repair and glass
  Custom cabinetry
  Custom Cabinetry & mill work
  Custom fabrication on vehicles & maintenance
  Custom injection molding
  Deli restaurant
  Dist glass blowing supplies
  Engineers exteriors of large commercial structures international
  General aviation maintenance & sales
  Grid-tied photo inverters for industrial/residential
  Heating elements
  Heating stoves (pellet)
  Home health/lawn/garden; consult large pharmacies/garden etc
  Institutional furniture
  Machine shop
  Machine shop - production/repair
  Manufacture/production/rehabilitation
  Manufacture assembly trays for computer industry
  Medical imaging
  Medical supplies
  Package delivery
  Plumbing & Drain Cleaning
  Precision Machine shop
  Prepaid phone cards
  Printing
  Production machine shop
  Propane gas - residential & commercial
  Rebuild diesel/gas generators/engines; design coml/indsl elec
  Repair of transmissions
  Scotchlt reflective/non-reflective die-cut letters/traffic signs
  Sell windchimes, gifts, massage products
  Signage
  Solid waste & recyclng service
  Speciality Machinery
  Specialized wood grilles
  Trailers and steel
  Wholesale plumbing, heating, cooling systems
  Wine & beer making
                                                                        Appendix 3

Targeted Industries for Nevada County



321918 Other Millwork (including Flooring)

This U.S. industry comprises establishments primarily engaged in
manufacturing millwork (except wood windows, wood doors, and cut stock).

327212 Other Pressed and Blown Glass and Glassware Manufacturing

This U.S. industry comprises establishments primarily engaged in
manufacturing glass by melting silica sand or cullet and making pressed,
blown, or shaped glass or glassware (except glass packaging containers).

332710 Machine Shops

This industry comprises establishments, known as machine shops primarily
engaged in machining metal parts on a job or order basis. Generally machine
shop jobs are low volume using machine tools, such as lathes (including
computer numerically controlled); automatic screw machines; and machines
for boring, grinding, and milling.

334119 Other Computer Peripheral Equipment Manufacturing

This U.S. industry comprises establishments primarily engaged in
manufacturing computer peripheral equipment (except storage devices and
computer terminals).

334220 Radio and Television Broadcasting and Wireless
Communications Equipment Manufacturing

This industry comprises establishments primarily engaged in manufacturing
radio and television broadcast and wireless communications equipment.
Examples of products made by these establishments are: transmitting and
receiving antennas, cable television equipment, GPS equipment, pagers,
cellular phones, mobile communications equipment, and radio and television
studio and broadcasting equipment.

334514 Totalizing Fluid Meter and Counting Device Manufacturing

This U.S. industry comprises establishments primarily engaged in
manufacturing totalizing (i.e., registering) fluid meters and counting devices.
Examples of products made by these establishments are gas consumption
meters, water consumption meters, parking meters, taxi meters, motor
vehicle gauges, and fare collection equipment.
                                                                       Appendix 3

337110 Wood Kitchen Cabinet and Countertop Manufacturing

This industry comprises establishments primarily engaged in manufacturing
wood or plastics laminated on wood kitchen cabinets, bathroom vanities, and
countertops (except freestanding). The cabinets and counters may be made
on a stock or custom basis.

337212 Custom Architectural Woodwork and Millwork Manufacturing

This U.S. industry comprises establishments primarily engaged in
manufacturing custom designed interiors consisting of architectural
woodwork and fixtures utilizing wood, wood products, and plastics laminates.
All of the industry output is made to individual order on a job shop basis and
requires skilled craftsmen as a labor input. A job might include custom
manufacturing of display fixtures, gondolas, wall shelving units, entrance and
window architectural detail, sales and reception counters, wall paneling, and
matching furniture.

423720 Plumbing and Heating Equipment and Supplies (Hydronics)
Merchant Wholesalers

This industry comprises establishments primarily engaged in the merchant
wholesale distribution of plumbing equipment, hydronic heating equipment,
household-type gas appliances (except gas clothes dryers), and/or supplies.
Includes solar heating panels and equipment merchant wholesalers.

54151 Computer Systems Design and Related Services

This industry comprises establishments primarily engaged in providing
expertise in the field of information technologies through one or more of the
following activities: (1) writing, modifying, testing, and supporting software
to meet the needs of a particular customer; (2) planning and designing
computer systems that integrate computer hardware, software, and
communication technologies; (3) on-site management and operation of
clients' computer systems and/or data processing facilities; and (4) other
professional and technical computer-related advice and services.
Appendix 4
Appendix 4
                                                                          Appendix 5


                                    SAMPLE
                                 RESOLUTION NO.

  A RESOLUTION DESIGNATING THE CITY OF LOYALTON AS MEETING THE
      DEFINITION OF A BLIGHTED AND DETERIORATED AREA UNDER
      CALIFORNIA REDEVELOPMENT HEALTH AND SAFETY CODES.

BE IT RESOLVED by the Board of Supervisors of the County of                    finds
that it is in the interest of the health, safety and general welfare of the community
to designate the                       as meeting the physical and economic
conditions for blight, based on the following:

Whereas, Health and Safety Code Section 33030-33039 (in excerpt) declares:
• That there exist in many communities blighted areas which constitute
   physical and economic liabilities, requiring redevelopment in the interest of
   the health, safety, and general welfare of the people of these communities
   and of the state;
• That a blighted area is characterized by the existence of inadequate public
   improvements, parking facilities, or utilities;
• Buildings in which it is unsafe or unhealthy for persons to live or work;
• Such conditions of blight tend to further obsolescence, deterioration, and
   disuse because of the lack of incentive to the individual landowner and his
   inability to improve, modernize, or rehabilitate his property while the condtiion
   of the neighboring properties remains unchanged;
• It is the policy of the State to protect and promote the sound development
   and redevelopment of blighted areas and the general welfare of the
   inhabitants of the communities in which they exist by remedying such
   injurious conditions through the employment of all appropriate means;

Whereas, that at least one of the national objectives of Title I of the Housing and
Community Development Act of 1974, as amended (42 U.S.C. 5301 et seq.) will
be met; and

Whereas, one of the required national objectives of Title I of the Housing and
Community Development Act of 1974 is the elimination or prevention of slums
and blight; and

Whereas, the                              declared that the public improvements
within the City are in a general state of deterioration, including but not limited to
the following:

   •   Elimination or amelioration of constraints to development, including
       without limitation, accessibility constraints that interfere with proper
       development by providing, as may be appropriate, street, interchange, or
       other improvements.
                                                                        Appendix 5


   •   Elimination or amelioration of other deficient or substandard public
       infrastructure conditions including off-street parking; deficient, undersized
       or poorly located utilities; inadequate fire protection facilities; or other
       similar public improvement deficiencies adversely affecting the project
       area.
   •   Provision of assistance, as may be appropriate, to property owners,
       businesses, and investors to facilitate the rehabilitation or construction of
       buildings suitable for job generating light industrial, distribution and
       services uses.

Be it further resolved that Community Development Block Grant funds are
available to assist the County of                  to make public improvements
that contribute to the elimination of these blighted conditions and that it is the
intent of the Board of Supervisors to use existing CDBG funds and to apply for
further funding for the purposes of improving the water and wastewater systems.

PASSED AND ADOPTED at a regular meeting of the                               held
on        by the following vote:


   AYES:                          NOES:

   ABSENT:

								
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