Friday, April 25, 2014
PLACERVILLE, CALIFORNIA
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County adopts economic development incentive policy

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From page A1 | February 14, 2014 | 27 Comments

El Dorado County Supervisors adopted a new policy aimed at attracting businesses that can provide significant numbers of good-paying jobs. Policy J-7 for Economic Development Incentives was drawn up by the Chief Administrative Office and is authorized under the Economic Development section of the county’s General Plan. Using financial or procedural incentives is a common tool used by jurisdictions seeking to increase and improve local economic conditions, according to the agenda documents.

Policy J-7 describes the rationale for using public funds and services to reward or encourage private companies when the benefit to the greater public can be described and properly monitored. The policy further notes that “particular business sectors” should be targeted and includes examples such as “Advanced Manufacturing;” “Research and Development;” “Alternative Energy/Green Technology;” and “Health & Wellness.”

Economic and Business Relations Manager Jim Claybaugh defined Advanced Manufacturing in answer to District 2 Supervisor Ray Nutting’s question. Claybaugh described it as much by what it is not than what it is. “We’re not going after large, old time manufacturing,” he said. The term is also known as “Agile Manufacturing” and it involves “high-value product” and may feature “green” applications.

“I don’t want to lose our historical businesses (such as mining, timber and large ranching operations),” Nutting mused. “Can’t we go after that?”

Later discussion clarified that a large family-operated ranch is unlikely to provide many, permanent, full-time, high-paying jobs.

Financial incentives described in the policy could be a structured reduction in sales tax requirements or deferred or reduced property tax obligations. Such agreements between the county and the business could be time-limited — 5 years, for example, or some kind of gradual pay plan. A system of monitoring and enforcing the agreements also would be established with possible penalties for “non-performance.” Thus if Company ABC promised to hire 50 employees within three years and later could not or would not comply, the county could call in the marker and terminate the agreement.

Non-tax-related incentives could include assistance with the county’s permitting process such as “Priority Permit Processing” or “One-Stop Permit Pre-Meeting.” Reduction or deferral of permit or impact fees could also be used as an incentive.

The policy would also employ Community Development Block Grant funding programs aimed at giving assistance to very small businesses and micro-enterprises.

The process that was used to develop the policy was called into question by Lori Parlin and Sue Taylor. Parlin, a candidate for District 4 Supervisor and a founding member of the Shingle Springs Community Alliance, challenged that CEDAC and its Regulatory Reform subcommittee had violated the Ralph M. Brown Act by failing to provide sufficient time for public comment. Taylor, from Camino, and a representative of Save Our County and other activist groups, said the public had no opportunity to consider the business “sectors” identified for “incentivizing” in the policy proposal. “Put it off for a better, more transparent process,” Taylor suggested.

Board Chairwoman Norma Santiago pointed out that the four business sectors in the policy were only “examples” and that no decision has been made on which businesses to include in the program. CAO Terri Daly then weighed in saying, “It’s a policy, not an ordinance, so there is no Brown Act violation.”

Acknowledging that he is “not a big fan of incentives,” District 4 Supervisor Ron Briggs went on to suggest that “the weight of CEDAC has become inappropriate.” However he joined his fellow supervisors in adopting Policy J-7 for Economic Development Incentives. The CAO’s department will craft the detailed procedures that eventually will implement the policy.

Any and all incentive agreements between the county and private industry must first be cleared through County Counsel and ultimately be approved by the Board of Supervisors before they may take effect.

Contact Chris Daley at 530-344-5063 or cdaley@mtdemocrat.net. Follow @CDaleyMtDemo.

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Discussion | 27 comments

  • Fran DuchampFebruary 14, 2014 - 9:29 am

    This is sad. :(

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  • Carol LouisFebruary 14, 2014 - 2:22 pm

    To Linda Davis, you have just confirmed what I have suspected. The EDC Transportation Dept. is intentionally misleading the BOS and residents in their traffic studies. In 2013 the Transportation Dept. did a traffic study that enabled a business development to side-step the traffic impact on Greenstone Rd. between highway 50 and Motherlode. The study was done in areas that would guarantee a lower count. The BOS did not question the study or how it was conducted. I believe Kim Kerr is the department head. The question is, "who is jerking her change". Why are these studies intentionally being misrepresented by county employees and departments?

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  • EvelynFebruary 14, 2014 - 2:33 pm

    Carol: I'm now looking for Linda Davis' comment. Where? (Have you EVER seen BOS question info. generated internally?)

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  • Compass2TruthFebruary 15, 2014 - 7:40 am

    The last sentence of this article is the most revealing. Sustainable Development (Agenda 21) is the root of EDC's progressive march down the Socialist path led by the CAO & County Counsel under the direction of the BOS: http://www.newswithviews.com/DeWeese/tom244.htm

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  • EvelynFebruary 20, 2014 - 5:28 pm

    Norma Santiago to Senator Feinstein on SMART HUBS / AN ECONOMIC DEVELOPMENT NECESSITY - HERE: A Smart Hub • Is a series of self-sustaining, interconnected, high-performance, high-functioning catalyst projects that foster the development of connected economies and ecosystems. • Is a scaled version of a Smart City (Megapolitan) solution resized to a Smart Community (Micropolitan, populations under 100,000) environment to provide regional and beyond connectivity through Machine-to-Machine and Hub-to-Hub every 30 miles based on technology and terrain. • Is a co-located Microhabitat in high-performance buildings that provides targeted services to attract ideal markets and clients. • Its integrated systems managed, monitored, distributed and connected by a MicroNetwork.

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  • EvelynFebruary 20, 2014 - 5:33 pm

    Smart Cities Are Here! HERE

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  • EvelynFebruary 22, 2014 - 11:27 am

    Can't help wondering whether Dist. 5 Supervisor Santiago is looking toward her next career move, come the end of this year.

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  • EvelynFebruary 21, 2014 - 5:23 am

    EDC needs to get out of the way of Entrepreneurs, not 'Incentivize' - HERE

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  • James E.February 22, 2014 - 11:39 am

    Evelyn, what does one become after being a supervisor?

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  • EvelynFebruary 22, 2014 - 12:04 pm

    Good question, James. But it's something she undoubtedly has given lots of thought to. Over the past seven years many useful contacts have been made. Perhaps something with the State / Feds? See Santiago's letter to Senator Feinstein that I posted @February 20, 2014 - 5:28 pm. (Santiago seems to have become an enthusiastic globalist.)

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  • James E.February 22, 2014 - 11:44 am

    What district does Phil live in? Phil, being our water man, could run on the lack of water.

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  • Phil VeerkampFebruary 22, 2014 - 1:39 pm

    RE: James' - . . . could run on the lack of water. ~~~ Anybody can run on lack of water(dry ground) ~~~ It's a much better trick to walk on water. I'll keep you posted, James.

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  • James E.February 22, 2014 - 11:49 am

    Phil I believe lives in the Diamond Springs area. If he cannot become a Supervisor, how about the honorary mayor of Placerville?

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  • James E.February 22, 2014 - 11:50 am

    Eldorado Co, sorry, steel curtain.

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  • Fran DuchampFebruary 22, 2014 - 3:02 pm

    Phil for Mayor? Can you spin your head and distort your face while yelling at people in the audience? Apparently it is a requirement...may be the only one. You will not need listening skills. Or design skills...or people skills...yep-- just the spining of the head-while distorting your face should do it.

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  • James E.February 22, 2014 - 3:06 pm

    Is the Placerville Mayor rude and abusive to the public?

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  • Fran DuchampFebruary 22, 2014 - 3:19 pm

    James I have gone to many meetings up and down the state of California...most of my life. The one meeting that iwent to for City council was beyond anything I had ever seen. the Mayor came off sweet-educated--responsible..and then just lost it. Several of the council were focus on a gentleman in the audience that wasnt doing anything...he did bob his head once--becuase they were directing such hate towards him. The Mayor in a horrible display of childish behavior--was yelling at him. I thin nk people forget they are being taped--or maybe they just dont care. Why was she elected? who pushed that one? It was like Barbie on drugs. She is a very pretty woman--until the venom distrots her face. she was nice to me--but I was new...and she had no clue who I was. May gaudiansangel watch out over the residents sitting in their audience...you may come under attack. Then the people who designed the roundabout ran out of crayons--and couldnt design any more suggestions....strange meeting--I have no disire to return. I did like Trisha (?), she seemed like the only adult on the council, she mentioned that she felt like they were "shoving" the roundabout down the peoples throats.

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  • Fran DuchampFebruary 22, 2014 - 3:28 pm

    In all fairness to the design people...apparently they bought software that only spits out a couple desins before it refuses to do any others...because it is too expensive. <------Who buys this stuff they are telling you? A ream of paper-- some ink--someone to click buttons...ahh the money the company is soaking up from the city--I see.

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  • Fran DuchampFebruary 22, 2014 - 3:31 pm

    heavy sigh...my typing is getting worse. sorry for the mistakes...sound out the words...pretend youre texting :)

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  • EvelynFebruary 23, 2014 - 12:02 pm

    Santiago travels extensively on taxpayers’ dime - HERE: Several West Slope chambers of commerce went to the Urban to Rural Connection conference. The cost was $2,100 per person just for the four-day seminar. On documentation from the July 30, 2013, Board of Supervisors meeting handwritten is “$1,000 previously paid by 3rd party sponsor.” But a sponsor or any monetary gift must be documented on what’s called Form 700. Santiago has not done so. Supervisor Ray Nutting had a criminal complaint filed against him by the district attorney in part for not filing a Form 700 for money he received. District Attorney Vern Pierson did not return a phone call. Santiago was not available for comment.

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  • James E.February 23, 2014 - 12:04 pm

    Evelyn, getting stonewalled?

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  • EvelynFebruary 23, 2014 - 12:47 pm

    James: This is El Dorado County!!!

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  • James E.February 23, 2014 - 1:02 pm

    Evelyn, I know, I know. I'm half way through the barber shop quartet movie. So much singing.

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  • EvelynFebruary 23, 2014 - 1:05 pm

    When you're finished with all that singing (!!!) your next assignment is Young@Heart.

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  • James E.February 23, 2014 - 2:32 pm

    Evelyn, who knew there were barber shop quartet conventions? Now, on to the next one -- really really old people singing.

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  • Fran DuchampFebruary 23, 2014 - 3:16 pm

    http://barbershop.org/ Girls sing as well :)

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  • James E.February 23, 2014 - 3:18 pm

    Really, really old people singing with Lenny (WW II pilot) as the designated driver because he is the only one who can see well enough to drive. A motley crue.

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