Lending businesses a hand and helping them achieve greater success
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1 Lending businesses a hand and helping them achieve greater success 2013 ANNUAL REPORT
2 The Sonoma County Economic Development Board (EDB) is proud to present our 2013 Annual Report, which showcases a record year for the Sonoma County economy supported by growing and vibrant local companies adding jobs and making new investments. SONOMA COUNTY ECONOMY KEY HIGHLIGHTS Executive Summary EDB Directors Pam Chanter Chair Vantreo Insurance Brokers Melanie Bagby Sirius Mac Solutions Libby Harvey FitzGerald FitzGerald Consultants Linda Kachiu Zainer Rinehart Clarke Peter O Brien Wright Engineered Plastics Michael Nicholls Nicholls Associates Joe Orlando Vice Chair Frank, Rimerman Consulting Marcos J. Suarez California Hispanic Chambers of Commerce Michael Tomasini Bank of the West John Webley Innovative Labs Sonoma County Board of Supervisors Susan Gorin First District David Rabbitt Second District Shirlee Zane Third District Mike McGuire Fourth District Efren Carrillo Fifth District Sales tax and property tax revenues have increased, reflecting growing consumer confidence and increased property and home values. Sonoma County unemployment rate fell to 5.7% a four-year low and below the statewide and national averages down from 11% in % 17% Tourism trends are overwhelmingly positive, Transient occupancy tax revenues up by 17%. 6.8% Hotel occupancy rates increased by 6.8%. $54 million The Charles M. Schulz Sonoma County Airport broke ground on a $54 million runway expansion project to support increased tourism efforts and the potential to attract new commercial carriers and destinations. Completion is expected in late 2014.
3 EDB PROGRAMS AND SERVICES The EDB reports to the Board of Supervisors and community annually on its work to: Promote Sonoma County as an attractive place to do business Foster job growth Provide local businesses with tools to help them prosper Promote voluntary, sound environmental business practices and worksite wellness Maintain dialogue with the business community to anticipate and resolve emerging issues Identify and support business clusters that are critical to maintaining a sound economy Support an employer driven workforce development strategy This report outlines the EDB s priorities, activities, and programs planned, underway, or completed during Cooperative efforts with other groups and agencies are central to these efforts. EDB assisted 383area businesses in addressing their most pressing needs in the areas of licensing and regulations, marketing, financing, green energy efficiency, worksite wellness, and workforce development. In 2013, the new Business Assistance Team extended a helping hand to local business by offering the following new services: Business Retention and Expansion Program provides proactive outreach to established businesses which helps to identify key business challenges and assist with possible solutions. Business Development Tools Program offers strategic market research and business intelligence to help our local businesses start and grow. Business Assistance Hotline provides concierge-like services to startups and growing businesses to answer questions and troubleshoot issues around licensing, permitting, workforce, and access to capital. Green Business Program certified 21 companies and Healthy Business Program promotes worksite expanded to support sustainable business practices in wellness. The EDB has recognized 14 new energy efficiency, water conservation, and recycling, which helps companies go green and lower business costs. Healthy Businesses through the iwork well Healthy Business Recognition program Over visitors walked into EDB-supported Visitor Centers. 200,000 EVENT AND CONFERENCE HIGHLIGHTS INCLUDE: 2,000+ The EDB hosted conferences, workshops, and events that attracted over 2,000 attendees in the business community. The 4th Sonoma County Restaurant Week in partnership with local restaurants, Sonoma County Tourism, Visitor Centers, local Cities, and Chambers of Commerce to promote our nationally recognized culinary scene as well as locally sourced agricultural products. The 1st Sonoma County Beer, Cider and Spirits Conference in partnership with local craft beverage producers and Sonoma County Tourism, successfully highlighting the emerging County craft beer, cider, and spirits industry as both a growth market and tourism/economic development opportunity. Sonoma County Economic Development Board 2013 Annual Report g 3
4 We have sometimes been at a loss of where to go when we bump up against local government. The Business Hotline can save a lot of time and energy by helping us quickly identify the best route to take and especially by advocating on our behalf. Anne Deckert EcoNugenics, Inc. Helping Local Business Thrive Starting and growing a business are paramount issues in Sonoma County. When our businesses thrive, they create more opportunities for other business and, critically, they create jobs in the community. The services of the Business Assistance Office are tremendous. As a small business owner it s often overwhelming to navigate the diversity of demands and requirements. I found very personalized (and friendly!) assistance through this Sonoma County program, and gained access to free resources that I otherwise would have had to pay lots for. Jesse Froehlich BlueBarrel Systems Thank you for this incredible amount of useful information, and so quickly! Kevin Thompson Town of Windsor In 2013, the EDB introduced a Business Assistance Program offering rapid, hands-on technical and marketing assistance for Sonoma County businesses to foster business growth and employment opportunities. The team engages with local companies and entrepreneurs to: Provide new companies, both starting up and relocating, help in getting established in Sonoma County and Assist existing local businesses in establishing a more competitive edge in the marketplace. Over the past year, the Business Assistance Team directly assisted 383 businesses with requests for resources and assistance. During 2013 we also developed new programs and tools not only to strengthen the local business community, but also to create a more fertile environment in which businesses can thrive. Business Assistance Hotline A business first contact with the EDB is often through the new Business Assistance Hotline. The majority of hotline callers in 2013 were new contacts for the EDB. Callers typically were looking for assistance and resources to: Start a business in Sonoma County, Navigate the complex permitting and regulatory processes, Understand licensing procedures, Find financing for new and established businesses, Identify qualified employees, Access technical assistance. The Hotline is staffed by Ethan Brown, a former business owner in the local construction industry. 4 g Sonoma County Economic Development Board
5 [ 1 ] EDB Program Manager Christine Palmer [ 2 ] EDB s Tim Ricard and Robert Piazza of Price Pump [ 3 ] Business Assistance Officer Ethan Brown [ 4 ] EDB s new offices [ 5 ] EDB Board Member Libby Fitzgerald, Farm Bureau s Lex McCorvy, Supervisor David Rabbitt, Petaluma Creamery s Larry Peter [ 6 ] EMG s Rob Jones, Supervisor Mike McGuire, EDB s Tim Ricard. EDB Business Assists by Business Type Business Development Tools The EDB wants to ensure that local businesses have the tools they need to start or grow and create jobs in Sonoma County. The business development tools program was launched in late 2012 by Program Manager Christine Palmer, and received a significant boost in 2013 with not only the addition of several new local reports, but also the addition of powerful reporting tools. We now offer free, customized market research typically only available to very large firms: Site Selection The EDB can help local businesses in selecting a location for a new or expanding business through a powerful real estate tool. Market demographics We can provide local economic market research at no cost through our local city profiles, business confidence reports, county demographics report, and with a new online research tool that identifies growth potential and new markets regionally. Access to industry trends The EDB can now access more than 1,200 industry reports to help local business owners study current market conditions and future trends. This is critically important for small businesses and startup efforts. Reaching new markets Business-to-business and consumer lists can be customized for each business in order to expand their existing customer base or reach new markets. 39 % new This IBIS World Industry Trends Reports report is incredibly helpful in my site evaluation for starting a small craft distillery. Joshua Opatz Business Startup 2013 Annual Report g 5
6 Sonoma County Key Business Challenges 7 % 9 % 8 % 20 % % [ 1 ] EDB s Ben Stone with Supervisor Susan Gorin visit the Fairmont Sonoma Mission Inn [ 2 ] EDB s Hanna Berglund & Al Lerma, Windsor Chamber of Commerce s Christine Tevini, and EDB s Palista Kharel. 28 % Permitting + Regulations Marketing Technical Assistance Start Up Information Infrastructure Workforce Business Retention and Expansion Program Over the past year EDB staff has met with over 150 companies as part of the Business Retention and Expansion Program and has assisted them in a variety of ways including the following: Worked with multiple County departments in coordinating road improvements along Old Redwood Highway to support expanded business development. Assisted multiple small breweries in expanding sales by connecting them with local restaurants, bars, and retail stores. Helped a local non-profit organization expand its donor base. Expedited planning approval for remodeling a retail shopping center in Sonoma Valley. How EDB Assists Businesses 4 % 6 % 4 % 19 % 34 % The program s goal is to help local businesses stay and grow in Sonoma County. During 2013 we: Identified problems experienced by businesses and created solutions to help companies keep jobs in Sonoma County. Connected local business with available resources. Identified opportunities to help companies grow and expand locally, with an emphasis on job creation at all skill levels. As part of this effort, EDB staff visited and interviewed area employers to stay tuned to the major challenges facing businesses in Sonoma County. Their feedback, plus requests through the Hotline, pinpointed permitting, marketing, financing, and workforce as the leading issues locally. To address this, our business retention and expansion Program Manager, Tim Ricard, helps Sonoma County businesses understand and navigate the permitting and regulatory processes at all levels of government. In addition to these services, the EDB also offers seminars on exporting, financing, foreign trade zone regulations and challenges area businesses face. 33 % Licensing + Regulatory Requirements Development Tools Business Resource Referrals Financing Green Energy Efficiency Workforce Assistance Tim Ricard of the EDB was the first county employee from any department to ever reach out and see how they could help. He has been as good as his word, bringing together multiple County agencies to find creative solutions to a complicated infrastructure problem impacting my business. If this is a trend, we like it! Ed Davis President, Empire West Inc. 6 g Sonoma County Economic Development Board
7 3 4 5 [ 3 ] EDB Green Business Coordinator Kevin Kumutaka certifies Francis Ford Coppola Winery [ 4 ] Healthy Business Coordinator Paula Stacey presents Healthy Business Recognition to Sutter Pacific Medical Foundation [ 5 ] Cotati Chamber of Commerce Executive Director Suzanne Whipple displays new Visitor Center i Sign. Healthy Business Program Sonoma County aspires to be the healthiest county in the state by 2020 and worksite wellness is vital to this effort. To support this, the EDB in partnership with Sonoma County Health Action and the Department of Health Services created the iworkwell Healthy Business Program. The Healthy Business Program is an innovative worksite wellness program that provides local firms with resources and expertise they need to start up and expand high-quality and effective worksite wellness efforts. The program brings together local health systems, wellness experts, and a range of community partners to offer: Access to low and no-cost resources. Consultation on wellness program planning and implementation. An annual iworkwell Symposium which features nationallyrecognized wellness experts, best practices from local employers, and publicity for companies recognized with iworkwell Recognition Awards. Up-to-date information on bringing health food to the worksite, integrating physical activity into the workday, disease prevention, and best practices in worksite wellness programming. In 2013 Healthy Business Program Coordinator Paula Stacey: Updated the recognition application to ensure alignment with the current national wellness standards, Fostered connections between local businesses to share best practices, Acted as a resource for information for employers on the Affordable Care Act, and Consulted with area firms to customize wellness programs. The EDB s Healthy Business Program has been instrumental in helping Small Precision Tools launch a new wellness program. Through the Healthy Business Coordinator s gentle guidance and resources the process of launching a Wellness Program has become a reality for SPT. Thank you Paula for all your generous time and resources. Your assistance is invaluable! Julie Vasquez Human Resources Small Precision Tools, Inc. Since the program s inception, 35 companies have been recognized for their programs, demonstrating to Sonoma County business that a firm of any size and in any industry can be a healthy business. Since August 2013, the EDB has consulted with 36 employers on creating programs or providing resources and has recognized 14 new Healthy Businesses through the iworkwell Healthy Business Recognition Program Sonoma Green Business Program Sustainability and Profitability The Sonoma Green Business Program helps businesses operate with greater environmental responsibility. The focus of the program is to certify local businesses in environmental best practices for waste minimization, water and energy conservation, and pollution prevention. Programs are evaluated on a regional standard specific to each industry. The certification program, consulting, and resources are offered at no charge. Since the inception of the Sonoma Green Business Program, more than 100 businesses have been certified as Sonoma Green businesses. In 2013 the Green Business Program Coordinator Kevin Kumataka has: Contacted 130 businesses and enrolled 90 businesses. Consulted on site with 53 firms and by phone with 61 firms. Certified 21 companies. The Sonoma Green Business Program is part of the regional Bay Area Green Business Program and the California Green Business Network. Certified Sonoma businesses are among 2,700 companies certified statewide. A full list of certified businesses is available at SonomaGreen.org. Coming up in 2014 the EDB plans to Launch the Sonoma County 2025 Next Economy initiative. Develop new efforts to engage with the underserved and Hispanic business communities of Sonoma County. Enhance our programs with additional outreach with an emphasis on technical assistance and customized, practical solutions. Connect businesses and entrepreneurs to valuable resources and services. Develop and present informative workshops on access to capital, business development, and other topics as issues emerge Annual Report g 7
8 Strengthening the Business Community: Forging connections and boosting regional identity and pride. With more than 2,000 attendees at the EDB s special events in 2013, we ve increased opportunities to connect, network, share ideas, discover local resources, and expand our reach into the business community. The high degree of participation in these events underscores their value to local businesses, and the positive feedback reflects the pride local businesses have in Sonoma County. Events presented: State of the County January Business Appreciation Week May Economic Briefing June Economic Outlook with Chris Thornberg November Spirit of Sonoma December Events Coordinator Ann Gospe promoted some of the most popular events in 2013 that included: Spirit of Sonoma County Annually, the EDB brings together business and government leaders to recognize outstanding leaders from every major chamber and trade group in Sonoma County. In 2013 the luncheon hosted over 300 members of the community to honor 18 individuals who have contributed significantly to economic development throughout Sonoma County s communities. Economic Outlook Briefings Twice a year, the EDB hosts briefings to provide an economic outlook for the county and insight into the various forces that are bringing change and opportunity to the region. The Spring briefing provided an outlook on the local economy by Dr. John Williams, President and CEO of the Federal Reserve Bank of San Francisco. The fall briefing, held in November for 450 attendees, featured economist Dr. Chris Thornberg, a founding partner of Beacon Economics, who highlighted a stronger state economy and a positive outlook for Sonoma County. 8 g Sonoma County Economic Development Board
9 [ ] Spirit of Sonoma Awards given out for individual contributions to economic development and community [ ] John Williams, San Francisco Federal Reserve President, Spring Economic Forecast [ 3 ] John Williams, San Francisco Federal Reserve President; Cindy Williams; Pam Chanter, EDB Board Chair; Jill Ravitch, District Attorney; Chuck Root [ 4 ] EDB staffers Christine Palmer and Ethan Brown at Beer, Cider & Spirits Conference [ 5 ] Natalie Cilurzo, Russian River Brewing Company at 1st Beer, Cider & Spirits Conference [ 6 ] Ben Stone, EDB Director, at Beer, Cider & Spirits Conference [ 7 ] Veronica Ferguson, County Administrative Officer, and County Supervisor Mike McGuire [ 8 ] EDB staffers greet guests at Thornberg Economic Forecast [ 9 ] Bob Cox, Cloverdale Vice Mayor; Carol Russell, Mayor of Cloverdale; Melanie Bagby, EDB Board Member; Paul Cayler, Cloverdale City Manager; Joe Palla, Cloverdale Councilman. 1 2 The EDB staff was instrumental in assisting the Fairmont Sonoma Mission Inn navigate permit processing in conjunction with our recent renovation project. Their assistance and advocacy enabled us to complete our restoration works in a timely fashion, avoiding costly delays. As a local business owner I find it challenging to stay on top of all current standards, regulations, and resources as they are constantly changing. EDB staff took the time to understand my business, evaluated my needs, and connected me to free business training resources I never knew existed. Michele Heston Director of Public Relations Fairmont Sonoma Mission Inn Shawna DeGrange Owner, Cloverleaf Ranch 2013 Annual Report g 9
10 Improving the Business Climate: New and ongoing programs to enrich the economic environment. The EDB actively works with area business leaders and entrepreneurs to identify timely programs to make it easier for Sonoma County businesses to operate, expand, attract and retain skilled employees, and become a part of the community. In 2013 the EDB sought input and ideas on local issues, financing, and marketing for Sonoma County industries and businesses through the following new or continuing programs: Micro-Enterprise Initiative The EDB launched a new micro-enterprise initiative led by Program Manager Al Lerma that will provide technical assistance to emerging businesses in Sonoma County. The program will combine access to capital seminars with one-on-one consultation to connect micro-enterprise and small businesses with alternative financing resources. Business Appreciation Week The EDB launched a first of its kind effort to recognize contributions of area businesses to our local economy by connecting county and city elected officials to area businesses through select site visits and tours, which recognized and engaged local business owners nominated by local Chambers of Commerce and trade groups. Sonoma County Regional Economic Forum May 16, 2013 The EDB hosted a forum to highlight state-level policies that encourage local business success and job growth, one of only 16 local forums held in California that focused on public/private partnerships. Export University 2013 May 9, 2013 In partnership with the United States Department of Commerce and Commercial Service, the EDB hosted a seminar to give local businesses the practical tools that they need to expand their markets worldwide. Topics ranged from export logistics to financing and global marketing. North Bay Foreign Trade Zone Seminar February 4, 2013 The North Bay Foreign Trade Zone Seminar focused on the upcoming expansion of the Port of San Francisco s foreign trade zone into the North Bay. Marketing the County Sonoma County is a great place to do business. As economist Chris Thornburg said in our annual economic forecast event in November, We live in paradise, and that s an enormous trump card. The EDB promotes this notion through the county s 13 visitor centers, a variety of visitor attraction programs with Sonoma County Tourism Bureau, and a web service to facilitate site selection and other needs of the film industry. With the growing popularity of agritourism and farm-to-table interest, our conferences and celebrations in the food and craft beverage industries have afforded excellent opportunities for marketing outreach to build demand for Sonoma County products: Restaurant Week March 18-24, 2013 is a seven-day celebration of Sonoma County s farm fresh food and premier wine. In its fourth year, the 2013 Restaurant Week had a total economic impact of over $2.20 million. Over 35,000 customers dined out because of Restaurant Week incentives. This collaborative effort included all chambers, cities, visitor centers, the Sonoma County Tourism Bureau, and the local news media. The fifth Restaurant Week will take place March 16, Sonoma County Beer, Cider & Spirits Conference November 12, 2013 This inaugural event had 350 attendees and turned the spotlight on the fast-growing craft beverages industry in Sonoma County. Keynote speaker Tony Magee, owner of Lagunitas Brewing Company, kicked off the day of informational panels, new product tasting, and a trade show. It was a spirited way to introduce a growth industry to the community and make connections between businesses as well as providers. The Info Group lists will be very helpful, and your suggestions are definitely helpful. I will continue to bounce ideas/changes off of you. I know the importance of having impartial eyes looking at things. Larry Laba Solar Inflatables and Russian River Adventures When I returned to California from out of state, I called to get information, and the assistance I received was wonderful! Gina Darrow Nurture Botanicals 10 g Sonoma County Economic Development Board
11 m a rc h , SCENES FROM AN ACTIVE YEAR [ 1 ] Guests at Beer, Cider & Spirits Conference [ 2 ] Bottle of Sonoma Cider Company [ 3 ] Beer, Cider & Spirits Conference Panel [ 4 ] Supervisor Gorin with Wendy Peterson and friends at the Welcome To Sonoma Valley gateway sign [ 5 ] Henhouse Brewing Company [ 6 ] Dishing up Restaurant Week [ 7 ] Sonoma County Hispanic Chamber of Commerce s Eliot Enriquez and Rene Meza flank EDBs Al Lerma [ 8 ] Supervisor Carrillo joins Sebastopol City & Chamber Officials on Tour of The Barlow Center [ 9 ] Foreign Trade Zone Conference [ 10 ] Supervisor Shirlee Zane with Linda Chavez & daughter Carlin at Spirit of Sonoma Awards [ 11 ] EDB s Andres Pena at the State of The County [ 12 ] Sonoma County Restaurant Week Poster. We welcome your continuing support and look forward to a prosperous 2014 that supports ongoing investment, innovation, and collaboration in our local economy Annual Report g 11
12 WHAT EDB CLIENTS ARE SAYING: Tim and his staff are always available. He has helped put me in contact with clients throughout Sonoma County. Without him and his staff I wouldn t be able to grow my business. EDB thanks the following key local businesses that support economic development in Sonoma County: director Steve Herrfeldt Business Development Manager, Gardenworks Inc. I m a one-man shop moving to Sonoma, but I got the kind of attention I would have expected to be reserved for larger employers. Can t thank you enough. Jim Bordner Gravity Music executive We have been considering replacing our refrigeration system and through the Green Business Program received free comprehensive energy audits that will help us make informed decisions to move forward on the upgrades. Angelo Sacerdote Co-owner, Petaluma Pie Company The Green Business Program really changed the way we think about our business at Snoopy s Home Ice. In particular we realized our processes had evolved to waste one of the county s most precious resources water. As a result we changed our old habits, and through a water rebate program we dramatically cut our water usage and more than halved the cost of our water bill. sponsors Justin Higgs General Manager, Snoopy s Home Ice SONOMA COUNTY ECONOMIC DEVELOPMENT BOARD edb.sonoma-county.org [ 141 Stony Circle, Suite 110 Santa Rosa, CA ]
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