Butte County Board of Supervisors Agenda Transmittal

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1 Butte County Board of Supervisors Agenda Transmittal Clerk of the Board Use Only Agenda Item: 5.03 Subject: Status Report on the Implementation of the Butte County Regional Economic Development Strategy Department: County Administration Meeting Date Requested: April 10, 2018 Contact: Casey Hatcher Phone: Regular Agenda Consent Agenda Department Summary: (Information provided in this section will be included on the agenda. Attach explanatory memorandum and other background information as necessary). Per the Board s request, staff is providing a status report of the implementation of the Butte County Regional Economic Development Strategy. The Economic Development Element of General Plan 2030 included Action Item ED.A1.1, which calls for the creation of a countywide Economic Development Strategy. On January 25, 2011, the Board of Supervisors approved the Butte County Regional Economic Development Strategy which contained goals, initiatives, and action items to be attained during the period The Board of Supervisors revised the Strategy on February 11, 2014 and again on August 8, 2017 extending the life of the Strategy through 2020 and adding additional action items to support the previously approved goals and initiatives. The approved action items support the following key initiatives: 1. Grow existing businesses, 2. Ensure Butte County is a competitive location for new investment, 3. Create a sustainable reputation for the county, and 4. Improve the coordination of regional economic development resources and efforts. Fiscal Impact: Does not apply. Personnel Impact: Does not apply. Action Requested: Accept for information. Administrative Office Review: Brian Ring, Assistant Chief Administrative Officer

2 Butte County Administration Shari McCracken Interim Chief Administrative Officer 25 County Center Drive, Suite 200 T: Oroville, California F: buttecounty.net/administration DATE: April 10, 2018 Members of the Board Bill Connelly Maureen Kirk Steve Lambert Doug Teeter Larry Wahl MEMORANDUM TO: FROM: RE: Board of Supervisors Casey Hatcher, Economic and Community Development Manager Butte County Regional Economic Development Strategy Update BACKGROUND In an effort to fulfill the County s goal of improving the local economy, and creating an environment for business growth and investment, on January 25, 2011 the Board of Supervisors approved the Butte County Regional Economic Development Strategy (the Strategy). The Board of Supervisors updated the Strategy on February 11, 2014 to add additional action items for the years and again on August 8, 2017 for the years Successful implementation of the strategy will: Grow existing businesses, Ensure Butte County is a competitive location for new investment, Create a sustainable reputation for the County, and Improve the coordination of regional economic development resources and efforts. The achievement of the above-mentioned goals requires a coordinated response from various County departments, as well as other economic development and workforce development partners within the County. The majority of the Action Items in the update to the Strategy are continuous tasks and work, which will be ongoing in each of the three years. The continuous work items, followed by the work items for year 1 of the Strategy are listed below. CONTINUOUS WORK ITEMS Continuation of Business Ombudsman Duties Continuation of Economic Development Advisory Committee Services Maintain Available Land/Building Inventory Monitor Available Incentive Programs and Distribute Information to Businesses Support Sector Strategies Support Business Incubation and Innovation Support Expansion of Business Financing Programs Support Regional Tourism Promotion Support Development and Maintenance of Tourism Infrastructure and Assets Improve Necessary Infrastructure to Support Business Growth and Development Provide Business Recruitment Assistance Maintain a Request for Proposal Template Maintain a Business Retention Program

3 Coordinate Regional Economic Development Programs and Services YEAR 1 WORK ITEMS Update the Butte County Communication Strategy Explore Energy Project/Program Opportunities Complete a Planning Study for Developing Land Adjacent to the Neal Road Recycling and Waste Facility for Energy or Waste Diversion Uses Pursue Redevelopment of the Butte County Fairgrounds RECENT PROGRESS The following narrative details the steps during the time period July 1, 2017 December 31, 2017 that have been taken toward implementation of many of the continuous action items and the Year 1 items. INITIATIVE #1 ENSURE BUTTE COUNTY IS A COMPETITIVE LOCATION FOR NEW INVESTMENT Continuation of the Business Ombudsman Duties The County s Economic and Community Development Manager, acting as the County s Ombudsman, interacts with individuals looking to start, locate or expand their business in Butte County. The Ombudsman provides pro-active outreach through business visitation, follow-up to EDAC meetings and follow-up on status of permit projects. Additionally, the County s Businesses Licenses and Permits webpage was updated with contact information for the Ombudsman as a way to connect with individuals interested in starting businesses. The following details business contacts for the second half of 2017: PHONE BUSINESS EDAC OR OTHER /MAIL VISITATION COUNTY # Contacts TOTAL CONTACTS Continuation of Economic Development Advisory Committee (EDAC) Services In order to assist the public with development concepts and specific development plans, the County has created the Economic Development Assistance Committee (EDAC). This committee consists of several county departments including Public Works (Land Development), Development Services (Building and Planning), Public Health (Environmental Health), CALFIRE Butte County Fire, and Administration (Economic Development). The group meets each Wednesday at 1:30pm on an as needed basis. This free service has been created to allow businesses (or prospective businesses) the opportunity to meet with all necessary departments at one time in order to discuss development proposals, determine whether existing zoning would permit the use on the proposed site, and clarify the requirements/improvements necessary in order to start or expand a business. During the second half of 2017, 12 EDAC meetings were held. Industry # of Meetings Business Location Manufacturing 1 Chico Area Ag Processing 3 Chico Area/Gridley Area Religious 2 Magalia/Oroville Area Energy 1 Paradise Area Retail/Office 2 Oroville Area 2

4 Events Venue 3 Chico Area/Durham/Magalia TOTAL 12 Explore and Implement Energy Project/Program Opportunities Butte County businesses continue to site energy costs as a growing business concern. The County is exploring Community Choice Aggregation (CCA) as one avenue to address the concern. CCA allows counties and/or cities, to work together to purchase power for their residents consumption, ideally at a reduced cost. CCA s also provide local control for the portfolio of power purchased. PG&E remains a partner in this process, providing the energy distribution, and maintenance of the distribution lines and equipment. In August 2015, staff received direction from the Board of Supervisors to continue to research the topic of CCA, and work with the local jurisdictions, businesses, community organizations, and individuals to evaluate whether or not CCA could be considered a valuable tool in Butte County. In June 2016, the Board approved moving forward with a Request for Proposal for a Butte County Technical Study related to the establishment of CCA. In August 2017, the Board approved a contract with a consulting firm to examine the financial viability of the establishment of CCA in Butte County, provide a risk assessment and risk mitigation plan, and advise on the potential formation structure. The study is anticipated this summer. County staff are assessing two grant sources to fund a planning study for public or private development of land adjacent to the Neal Road Recycling and Waste Facility (NRRWF) for energy or waste diversion uses consistent with the NRRWF-RW overlay zone. The two grant funding sources include the Economic Development Assistance Planning Program and USDA Rural Business Development, but other sources may be identified. The NRRWF-RW overlay will help to promote the diversion of solid wastes into appropriate recycling facilities, energy generation, and other uses that add value and benefit to the local economy. The overlay zone includes the NRRWF, and the adjacent industrially zoned land and extends 2,000 linear feet from the boundaries of the NRRWF, and the adjacent industrially zoned land. INITIATIVE #2 GROW EXISTING KEY INDUSTRY SECTORS MANUFACTURING/CLEANTECH, AGRICULTURE AND AGRICULTURE RELATED, HEALTHCARE, INFORMATION TECHNOLOGY, AND VISITOR ATTRACTION Support Sector Strategies Understanding the need to link education, industry, and economic development; the County along with Butte County Office of Education, California State University, Chico, Butte Community College, Glenn County Office of Education, and the Northern California Regional Training Consortium began working together in 2016 toward the creation of an intermediary organization; linking the projects and programs offered by all entities. The Butte-Glenn Intermediary formed in late The organization currently operates as Advance North State. The mission of Advance North State is to align business, education, and community organizations within Butte and Glenn Counties to maximize opportunities for youth and adults, resulting in career and economic success. The education and local agency partners making up the Governing Board for Advance North State are listed below, Education 3

5 California State University, Chico Butte College Butte County Office of Education Glenn County Office of Education Chico Unified School District Local Governments and Agencies Butte County Government Glenn County Government North Central Counties Consortium Northern Rural Training Employment Consortium Advance North State regularly convenes partner organizations and facilitates an annual work plan to advance the organization s mission. Highlighted achievements from 2017 include externships, a healthcare industry forum, technology Work-Based Learning forum, Butte College Makerspace Planning program, as well as numerous industry connections. Support Business Incubation and Innovation To support entrepreneurship in Butte County, the County continues to offer the Butte County Business Incubator Program (BCBIP), which is funded through a Community Development Block Grant. Through the BCBIP, eligible businesses of five or fewer employees, located in eligible areas (unincorporated Butte County, Gridley, Oroville, and Biggs), have the ability to receive one-on-one business consulting and mentoring, and/or small group specialized training. The goal of the program is to assist companies to grow in order to increase employment and grow their company s market share. Currently, 8 companies are in various stages of one-on-one business consulting. Support Regional Tourism Promotion The Butte County Tourism Business Improvement District, also known as Explore Butte County formed in November The purpose of Explore Butte County is to promote tourism to Butte County and increase overnight stays at lodging facilities within the unincorporated area of Butte, City of Chico, City of Oroville, Town of Paradise, and City of Biggs. In order to fund these tourism promotion services, district members (lodging facilities) assess 2 percent on gross, short-term room rentals. Butte County holds a position on the Explore Butte County Advisory Board and works closely with the organization to promote Butte County as a tourism destination. In 2017, Explore Butte County has launched its brand at an official brand launch party at Sierra Nevada Brewery. In 2018, the organization solicited for advertising services and is currently in the selection process for a new firm. Explore Butte County has also just closed the application submittal period for their first annual Zone Marketing Grants. Zone Marketing Grants are awarded by Explore Butte County to organizations to help promote tourism in Butte County. Explore Butte County continues to work on marketing Butte County as a tourism destination including the initiatives listed below. Butte County State Fair Exhibit Butte County display in the State Capitol Print and online ads such as the dedicated travel section in the San Francisco Chronicle 4

6 Social media marketing and campaigns o o o Hosting of writers from various publications Upcoming Business Ambassador Program Support Development and Maintenance of Tourism Infrastructure and Assets In October 2013, the Board of Supervisors approved the Butte County Tourism Strategy and Implementation Plan. The plan evaluated regional tourism opportunities and developed a strategy for implementation. The plan includes and action item to identify and prioritize appropriate infrastructure projects that will support countywide tourism and increase visitor travel, and that will help to build complete itineraries for targeted market segments such as youth recreation, college families, hunters, birders or seniors. Outdoor recreational assets, such as trails, are a key component of the visitor experience for many travelers to Butte County. The County contracted with the Butte County Resource Conservation District to develop a Butte County Trails Action Plan that identifies resources, needs, and opportunities for trails in the County. The plan will include a regional trails database and map to illustrate needs to maintenance and opportunities for future development including identifying opportunities for regional connectivity of trail systems. The public input process is underway and the plan is scheduled for completion by June Improve Necessary Infrastructure to Support Business Growth County staff continues to research programs to assist with development related costs such as public infrastructure, working capital, fees, and equipment. One program available to County is the CDBG Overthe-Counter (OTC) program which allows eligible jurisdictions to apply for grant funds that will in-turn be loaned to business to assist with costs related to such items as: infrastructure, working capital, and equipment. County staff and 3CORE are currently working together to assist a local business that is interested in applying for such funds to support the development of their business. Once the CDBG application is complete, the County will hold a public hearing to discuss the project, and request approval from the Board of Supervisors to submit the application to the State. A priority action in the Strategy is to evaluate options, feasibility, and financing mechanisms for infrastructure improvement to encourage industrial development in the industrial zone on Durham Highway and Oroville-Chico Highway along Highway 99. County staff are assessing two grant sources, the Economic Development Assistance Planning Program and USDA Rural Business Development, as both fund planning and feasibility studies focused on business development. ACTION REQUESTED No action required. Accept for information. 5

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