Sonoma County Economic Development Board STRONG ECONOMY. HEALTHY COMMUNITY ANNUAL REPORT SONOMA COUNTY EDB ECONOMIC DEVELOPMENT BOARD

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1 Sonoma County Economic Development Board STRONG ECONOMY. HEALTHY COMMUNITY ANNUAL REPORT SONOMA COUNTY EDB ECONOMIC DEVELOPMENT BOARD

Tr evor Martins Brewery in development phase The innovative programs for workforce development combined with the passion and personal engagement of the entire Sonoma County EDB team to help local

2 SONOMA COUNTY EDB ECONOMIC DEVELOPMENT BOARD As we work to start a brewpub in Sonoma County, we ve been so appreciative of the help from the EDB. It s invaluable to have a resource like the EDB to go to when we run into county-specific questions. Tr evor Martins Brewery in development phase The innovative programs for workforce development combined with the passion and personal engagement of the entire Sonoma County EDB team to help local businesses succeed should be considered a benchmark for all County and Government service. providers Steffan Kuehr Bijan's Protective Equipment, Inc EDB BOARD Pam Chanter, Chair Vantreo Insurance Brokerage Jorge Alcazar Frozen Art Dr. Richard Carvolth St Joseph Health Terry Garrett Sonoma County GoLocal Tara Jasper Sonic Linda Kachiu Zainer Rinehart Clarke Wayne Leach CSW/Stuber-Stroeh Engineering Group Michael Nicholls Nicholls Associates Nick Papadopoulos CropMobster Michael Tomasini Bank of the West 2016 SONOMA COUNTY BOARD OF SUPERVISORS Efren Carrillo, Chair Fifth District Susan Gorin First District David Rabbitt Second District Shirlee Zane Third District James Gore Fourth District EDB STAFF Ben Stone, Executive Director Al Lerma, Program Manager ADMINISTRATIVE Colette Thomas, Administrative Aide Val Rose, Administrative Aide Ann Gospe, Event Coordinator BUSINESS ASSISTANCE Ethan Brown, Entrepreneurial Services Heather LoBue, Workforce Business Services Christine Palmer, Business Development Tools Tim Ricard, Business Retention & Expansion Marcos J. Suarez, Business Diversity Services CREATIVE SONOMA Kristen Madsen, Director Samantha Kimpel, Administrative Aide SPECIAL PROJECTS STAFF Juan Nieto Francesca Schott Steve Sharpe 2 Sonoma County EDB Annual Report

APRIL 2016 The Sonoma County Economic Development Board (EDB) is pleased to present its 2015 Annual Report.

New programs for the EDB in 2015 were established to help foster growth in the creative sector, entrepreneurial enterprises and tourism activities.

Working County Solutions Microloans Assisted 654 businesses through the Sonoma County Restaurant Week generated Business Assistance Program $3.

3 APRIL 2016 The Sonoma County Economic Development Board (EDB) is pleased to present its 2015 Annual Report. Throughout the year, the EDB's business assistance program worked to strengthen Sonoma County's vibrant economic base by encouraging business start-up, expansion and development. New programs for the EDB in 2015 were established to help foster growth in the creative sector, entrepreneurial enterprises and tourism activities. Some highlights from the year include: Launched Creative Sonoma - an initiative 29 businesses funded with microloans to support the creative economy in Sonoma totalling $624,000 from EDB partner Working County Solutions Microloans Assisted 654 businesses through the Sonoma County Restaurant Week generated Business Assistance Program $3.35 million in economic impact Hosted 3 major economic forecast $169 million - economic impact of craft conferences and numerous workshops with brewing in Sonoma County total attendance topping 2,200 The EDB is proud of its accomplishments in 2015, with positive economic progress experienced across all sectors. We look forward to continuing these and other projects in the coming year. For business assistance or more information, please contact us at any time at (707) or visit us online at SonomaEDB.org. Sincerely, Pam Chanter EDB Chair Ben Stone Executive Director 3

H I G H L I G H T S EDB SUCCESS STORIES STATE TAX CREDITS The EDB worked with Revive Kombucha in 2015 to secure a $1.5 million California income tax credit.

.. 11 Sonoma County businesses WORKFORCE TRAINING Kitsbow, a Petaluma bike apparel company, launched the first-ever customized training program in Sonoma County with guidance from the EDB.

YOUTH ART GRANTS In Summer 2015, Creative Sonoma granted $100,000 to Sonoma County arts organizations for summer youth art programs. Highlights 12 funded projects engage.

In 2015, the EDB surveyed all known breweries to find the economic impact of the industry in Sonoma County. Highlights $169 million economic impact and.

4 H I G H L I G H T S EDB SUCCESS STORIES STATE TAX CREDITS The EDB worked with Revive Kombucha in 2015 to secure a $1.5 million California income tax credit. These tax credits are available from the state to businesses that want to stay and grow in California. Highlights $2.7 million awarded to Sonoma County businesses WORKFORCE TRAINING Kitsbow, a Petaluma bike apparel company, launched the first-ever customized training program in Sonoma County with guidance from the EDB was the first year customized trainings occurred in Sonoma County! YOUTH ART GRANTS In Summer 2015, Creative Sonoma granted $100,000 to Sonoma County arts organizations for summer youth art programs. Highlights 12 funded projects engage participants & 9176 audience members CRAFT BEER ECONOMIC IMPACT With 24 breweries, Sonoma County is an internationally known craft beer destination. In 2015, the EDB surveyed all known breweries to find the economic impact of the industry in Sonoma County. Highlights $169 million economic impact and jobs created FINANCING In 2015, the EDB facilitated $18 million in tax-exempt financing for the Sonoma Country Day School, resulting in substantial savings for future interest payments. HIRING INCENTIVES Bijan's Protective Equipment connected with the EDB's On-the-Job Training program to help fill a gap in their workforce. OJT provides wage subsidies for new employees - allowing businesses to increase hiring and in-turn production. Highlights 38 companies used OJT funds to... retain or hire 69 workers LATINO HERITAGE MONTH September is recognized as Latino Heritage Month, and in 2015, working with the EDB's Business Diversity program, Sonoma County Supervisors visited Latino-owned businesses in their districts. Pictured below from left to right: Sup. David Rabbitt with Adore Hair Salon owner Norma Nori Santos, Sup. Susan Gorin with Di Factory Boutique owner Haydee Ambriz, Sup. Shirlee Zane with El Coqui Restaurant owner Tina Jackson, and Sup. James Gore with Ceja Tire owner Javier Ceja. 4 Sonoma County EDB Annual Report

SONOMA COUNTY: 2015 BY THE NUMBERS 3.3% GDP INCREASE Sonoma County s gross domestic product (GDP) was $21.9 billion in 2014, a 3.3% increase from 2013.

5 SONOMA COUNTY: 2015 BY THE NUMBERS 3.3% GDP INCREASE Sonoma County s gross domestic product (GDP) was $21.9 billion in 2014, a 3.3% increase from ,500 NEW JOBS 2015 was a record year for employment in Sonoma County with 5,500 new jobs created for the year and an all-time employment high of 251,200 in May. 2 7-yr. LOW UNEMPLOYMENT At a rate of 4.5%, Sonoma County s unemployment rate fell to pre-recession levels in NEW BUSINESSES 500 new businesses were formed in Sonoma County from representing a 2.9% formation rate. 4 NEW 76% HOTEL OCCUPANCY RATE In 2015, hotel occupancy hit an all-time high. Hotel revenues have increased 75% in the past 5 years. 5 10% AIRPORT PASSENGERS Serving 263,142 passengers, ridership increased 10% at the Sonoma County Airport from VACANCY RATES FALL COMMERCIAL REAL ESTATE 7 RETAIL INDUSTRIAL OFFICE % 6.6% 16.7% % 8.8% 18.9% % 11.0% 21.8% 5

BUSINESS A METRICS SINCE 2013 BUSINESSES ASSISTED 2013-2015 2013 400 NEW 34% 2014 504 EXISTING 66% 2015 654 BUSINESSES ASSISTED BY TYPE 2013-2015 BUSINESSES ASSISTED BY INDUSTRY 2013-2015

Assistance Wholesale Trade Agriculture Other 21% 12% 12% 11% 7% 7% 6% 4% 4% 3% 13% The EDB s Business Assistance Program was established in 2013 to build relationships with local business owners to

Working directly with businesses to address and overcome challenges contributes to increased efficiency, improved performance, jobs, and business growth in Sonoma County.

6 BUSINESS A METRICS SINCE 2013 BUSINESSES ASSISTED NEW 34% EXISTING 66% BUSINESSES ASSISTED BY TYPE BUSINESSES ASSISTED BY INDUSTRY Manufacturing Accomodations & Food Services Retail Trade Personal & Household Services Professional, Scientific & Technology Construction Arts, Entertainment & Recreation Health Care & Social Assistance Wholesale Trade Agriculture Other 21% 12% 12% 11% 7% 7% 6% 4% 4% 3% 13% The EDB s Business Assistance Program was established in 2013 to build relationships with local business owners to help identify and solve business issues, address workforce needs, and provide custom market analysis. Working directly with businesses to address and overcome challenges contributes to increased efficiency, improved performance, jobs, and business growth in Sonoma County. SERVICES AVAILABLE TO BUSINESSES Business retention & expansion Business hotline Business planning Entrepreneurial resources Start-up guidance Market research Business diversity services Workforce development Licensing & regulatory assistance Financing with lending partners Site-selection information Industry trends research Creative enterprise services The EDB s Business Retention and Expansion program was an incredible resource in helping me launch and grow my first restaurant business. They helped me understand and navigate local permitting issues and connected me with uable resources and incentives. They were there when I needed them! val Helen Pachynski, Extreme Pizza 6 Sonoma County EDB Annual Report

7 SSISTANCE IN 2015, THE EDB ASSISTED 654 BUSINESSES REPRESENTING 6,000 JOBS TOP 3 SERVICES PROVIDED 1. License and regulatory help 2. Business marketing reports 3. Business-to-business connections TOP 5 INDUSTRIES ASSISTED 1. Manufacturing 2. Accommodation & Food Service 3. Retail 4. Arts, Entertainment & Recreation 5. Construction 2015 PROGRAM HIGHLIGHTS SUPPORTING DIVERSE BUSINESSES To help support a diverse array of businesses, the EDB's Business Diversity program assists minority and under-served businesses with accessing capital, permitting and licensing, and hosting bilingual small businesses workshops. WORKFORCE DEVELOPMENT A growing partnership between the EDB and the Workforce Investment Board resulted in expanded workforce support in 2015 including a wage subsidy program, customized training implementation and improved communication and engagement of Sonoma County workforce development partners. MICROLOAN PARTNERSHIP In 2015, the EDB helped 29 companies receive microloans by working with EDB partner Working Solutions Microloans. These companies (18 new businesses and 11 business expansions) received $624,000 in microloan funding METRICS BUSINESS CHALLENGES 1169 CHALLENGES REPORTED Workforce 18% Vendors 1% Infrastructure 3% Financing 7% Permitting & Regulations 17% Technical Assistance 8% Start-Up Info 13% Market Research 12% ASSISTANCE ACTIONS 2516 ACTIONS TAKEN Licensing & Regulatory Help 21% Bus.-to-Bus. Referrals 20% Development Tools 21% Bus. Education & Training 10% Marketing 11% Workforce 16% Green Bus. Info 1% Other 3% Financing 5% Incentives 13% BUSINESSES ASSISTED BY SUPERVISORIAL DISTRICT OTHER* 6% 5 TH DISTRICT 22% 4 TH DISTRICT 18% 3 RD DISTRICT 24% 2 ND DISTRICT 19% 1 ST DISTRICT 11% *Some requests for assistance are from businesses that do not have a physical location, and others are based outside of the County looking to relocate. 7

PROGRA ENTREPRENEURIAL INITIATIVES YEAR OF THE ENTREPRENEUR Throughout fall 2015, the EDB convened a group of

well as promoting the organizations and institutions that support small businesses.

compiling and evaluating the findings into a published document.

8 PROGRA ENTREPRENEURIAL INITIATIVES YEAR OF THE ENTREPRENEUR Throughout fall 2015, the EDB convened a group of business leaders and entrepreneurs to serve on a short-term planning task force for the upcoming Year of the Entrepreneur in The task force designed a slate of events and activities aimed at celebrating entrepreneurship in Sonoma County, as well as promoting the organizations and institutions that support small businesses. A robust calendar for 2016 already includes an inspirational speaker series, quarterly Hackathons and a variety of networking events. COWORKING IN SONOMA COUNTY In September 2015, the EDB presented its report on coworking and shared work space to the Sonoma County Board of Supervisors. The EDB sought to understand the local impact of coworking by conducting studies among the local sector and compiling and evaluating the findings into a published document. Sonoma County is home to seven coworking spaces, and the EDB looks forward to supporting this emerging sector in the future. ECONOMIC RESEARCH 2015 MAJOR FORECASTS & REPORTS The EDB produces more than 20 economic forecasts and distributes economic trend information throughout the year to local business, government, education and community organizations. New report announcements were viewed more than 10,000 times in Below is a partial list of the reports published by the EDB. Business Confi dence Updates Industry & Sector Reports Transient Occupancy Tax Reports Sonoma County City Profiles Sonoma County Indicators Tourism Annual Report Local Economic Forecasts 8 Sonoma County EDB Annual Report

9 MS & PROJECTS 2015 NEW PROGRAMS CREATIVE SONOMA In 2015, Creative Sonoma was established as a permanent division of the EDB. Creative Sonoma works to support and advance the creative community of Sonoma County. The agency holds professional development workshops, offers specialized training for creative entrepreneurs, and supports creative enterprises with funding and assistance initiatives. More information can be found at CreativeSonoma.org. Highlights of 2015 including: $100,000 granted to local arts organizations to produce summer arts youth programs $80,000 in grants received by Creative Sonoma from out-of-county sources for programs to support the creative community 300 individuals attend trainings and workshops to enhance their impact as creative entrepreneurs Coffee and Conversation meetings with representatives of the local creative community to guide the design of the services and initiatives of Creative Sonoma NAPA-SONOMA SMALL BUSINESS DEVELOPMENT CENTER The Napa-Sonoma SBDC is located in the EDB offi ces, and provides information, training and expert consulting to local small businesses in the area. In 2015, the SBDC assisted more than 300 Sonoma County business clients and hosted dozens of events and workshops to help strengthen the local business community. For more information, please visit NapaSonomaSBDC.org. The services offered by the Napa-Sonoma SBDC align very well with the Sonoma County Economic Development Board. When an entrepreneur walks through the door, they're presented with a menu of business assistance programs to help them become successful. It's become a onestop shop for the entrepreneur. Mary Cervantes, SBDC Business Services Director EDB SHOUT-OUTS The Summer Arts Youth Program Grant was extremely important in bringing our summer theater program to reality. Without the grant it would not have been possible. 6th Street Playhouse We would like to thank the EDB and their partners for helping our restaurant get a great loan. Thanks to the loan our restaurant was launched with great success. The EDB helps businesses like ours grow, and in turn grows the local economy. Zacarias Martin & Dionicia V aldovinos Taqueria Molcajetes When I needed support in growing my business, the county supervisors office pointed me to the well-educated, accessible, and friendly Sonoma County EDB. Over the course of our relationship, the EDB helped me receive a microloan through one of their partners. With this funding, I ve moved from a temporary location to a permanent home, allowing my business to expand. Mary Jambon Sonoma Gymnastics Academy 9

EVENTS & ACTIVITIES MARKETING INITIATIVES SONOMA COUNTY RESTAURANT WEEK In 2015, the EDB organized the sixth annual Sonoma County Restaurant Week, generating a record-setting economic impact of $3.

BEER, CIDER & SPIRITS MAP The EDB partnered with the Sonoma County Tourism Bureau and the Sonoma County GoLocal Cooperative to produce and distributed a map highlighting all known beer, cider and

Available as a free resource to anyone looking to discover the County s locally produced beverages, 15,000 maps were distributed in 2015 to more than 75 business and visitors centers across Sonoma

EVENTS OFFERED IN 2015 JANUARY STATE OF THE COUNTY FEBRUARY BEER, CIDER & SPIRITS CONFERENCE JUNE SPRING ECONOMIC FORECAST SEPTEMBER SABORES DE WINE COUNTRY OCTOBER NORTH BAY ECONOMIC FORUM OCTOBER

10 EVENTS & ACTIVITIES MARKETING INITIATIVES SONOMA COUNTY RESTAURANT WEEK In 2015, the EDB organized the sixth annual Sonoma County Restaurant Week, generating a record-setting economic impact of $3.35 million during the seven-day SONOMA COUNTY epicurean event. 130 participating restaurants served up prix-fi xe dinner and lunches to diners, and 24% of diners came from outside of Sonoma County. BEER, CIDER & SPIRITS MAP The EDB partnered with the Sonoma County Tourism Bureau and the Sonoma County GoLocal Cooperative to produce and distributed a map highlighting all known beer, cider and spirits locations in Sonoma County. Available as a free resource to anyone looking to discover the County s locally produced beverages, 15,000 maps were distributed in 2015 to more than 75 business and visitors centers across Sonoma County. EVENTS OFFERED IN 2015 JANUARY STATE OF THE COUNTY FEBRUARY BEER, CIDER & SPIRITS CONFERENCE JUNE SPRING ECONOMIC FORECAST SEPTEMBER SABORES DE WINE COUNTRY OCTOBER NORTH BAY ECONOMIC FORUM OCTOBER FALL ECONOMIC FORECAST DECEMBER SPIRIT OF SONOMA SPOTLIGHT ON February 27 Sonoma County Beer, Cider Spirits & Conference EDB events were attended by more than 2,200 people throughout A highlight of 2015 was the Sonoma County Beer, Cider & Spirits Conference, attracting more than 400 industry professionals for a half-day event. With all three industries experiencing incredible growth nationwide, the event provided opportunities to address local issues, network with the greater business community and celebrate the incredible producers working to make Sonoma County an international craft beverage hub! 10 Sonoma County EDB Annual Report

EDB-SUPPORTED ORGANIZATIONS SONOMA COUNTY VISITORS CENTERS The EDB provides funding and tourism promotion support for 10 Sonoma County Visitors Centers.

Pictured below is Supervisor Efren Carrillo with members of the Russian River Chamber of Commerce and Visitors Center during a ribbon-cutting ceremony to unveil the new sign welcoming visitors to the

11 EDB-SUPPORTED ORGANIZATIONS SONOMA COUNTY VISITORS CENTERS The EDB provides funding and tourism promotion support for 10 Sonoma County Visitors Centers. In 2015, more than 200,000 visitors stopped by Visitors Centers. Pictured below is Supervisor Efren Carrillo with members of the Russian River Chamber of Commerce and Visitors Center during a ribbon-cutting ceremony to unveil the new sign welcoming visitors to the Russian River area of Sonoma County. ACCESS SONOMA BROADBAND Since 2013, Access Sonoma Broadband (ASB) has operated under the auspices of the EDB. With a focus on improving the access and affordability of broadband in rural areas, ASB works with broadband providers, residents and businesses throughout Sonoma County. Extending broadband to under-served areas encourages economic development through business start-up and expansion. In 2015, ASB managed testing and analysis for several priority communities and published a report on the availability of free public computer access and digital skill/literacy programs. WHAT'S COMING? JOB MARKET TRACKER In 2016, the Job Market Tracker will be an open data resource for community partners who seek to understand workforce demands driving the local economy, assisting with strategic planning and workforce development efforts. CANNABIS IMPACT REPORT The EDB plans to publish a report to detail the present and future economic impact of the marijuana industry, and its subsequent effect on related sectors. The report will compile national, state level and local data. SONOMA COUNTY REVOLVING LOAN FUND Plans are in the works to launch a county revolving loan fund supported by local financial institutions to provide access to capital for entrepreneurs who may not qualify for traditional financing. SENIOR DEMOGRAPHIC REPORT The EDB is currently researching the present and future economic impact of Sonoma County s aging population, with plans to release a report compiled of local and state-level data. AGRICULTURE & OUTDOOR RECREATION BUSINESS COUNCILS With support from key stakeholders and industry groups, the EDB is excited to announce the launch of these two business councils in BILINGUAL BUSINESS ASSISTANCE WORKSHOPS The EDB plans to convene a number of bilingual business assistance workshops through 2016 and preparations are being made to hold a Latino Business Conference later in the year. Sources: 1. Bureau of Economic Analysis. Regional Data: Real GDP in Chained Dollars - Santa Rosa, CA (Metropolitan Statistical Area). < 2. State of California Economic Development Department. Employment by Industry Data. < 3. State of California Economic Development Department. Unemployment Rate and Labor Force. < 4. State of California Economic Development Department. Size of Business Data. < 5. Sonoma County Tourism Bureau. Occupancy and ADR Stats Page 2015 Year. < com/sites/default/master/fi les/pdf/occupancy_and_adr_stats_page_2015_year.pdf>. 6. Digitale, Robert. 10 percent jump in passengers at Sonoma County airport. The Press Democrat 5 January Web. 11 March Keegan & Coppin Company, Inc. North Bay Market Data/Statistics - Sonoma County Vacancy Reports. < 11

12 EDB SPONSORS 2015 Thank you to the following companies supporting economic development in Sonoma County. PRESENTING FOUNDATION PREMIER EXECUTIVE MEDIA American AgCredit American River Bank City of Santa Rosa Comcast George Petersen Insurance Keegan & Coppin Co. Midstate Construction NorBAR Sonoma County Alliance Summit State Bank Vantreo Insurance Zainer Rinehart Clarke SONOMA COUNTY EDB ECONOMIC DEVELOPMENT BOARD

Economic Development Board Work Plan

CALIFORNIA Economic Development Board Work Plan 2010-2011 SONOMA COUNTY SONOMA COUNTY REPUBLIC AGRICULTURE INDUSTRY RECREATION Economic Development Board Work Plan 2010-2011 Sonoma County Board of Supervisors