Annual Report and Economic Development
Project Update by Kimball A. Schmidt, Economic Development Project Director.
Action: Kim Schmidt presented
an update.
TRI-AGENCY ECONOMIC DEVELOPMENT AUTHORITY
883 West Washington Boulevard
Crescent City, CA 95531
Mario Deiro, Chair, Board of Governors
Kimball A. Schmidt, Economic Development Project Director
October 18, 2006
Chairman and Board Members
Del Norte County Board of Supervisors
981 "H" Street, Suite 200
Crescent City, CA 95531
RE: ANNUAL REPORT AND ECONOMIC DEVELOPMENT PROJECT UPDATE
Dear Chairman and Board Members:
I am pleased to present the Board of Supervisors with the first
Annual Economic
Development Project "HASI99.COM" Report for the period of July 1, 2005 through June
30, 2006 as required by the contract between the County of Del Norte and the Tri-
Agency Economic Development Authority.
The Tri-Agency, comprised of elected officials from the County,
City, and Harbor District, approved and adopted the report at its September 25, 2006 meeting. In
addition the report has been reviewed by the Council of Economic Advisors, a standing committee of the Tri-Agency.
The newly established Economic Development Project accelerated
throughout the first year and subsequent months, making significant progress in areas relating to the defined infrastructure
focus of the position, as well as with responsibilities in also serving as the administrator for the Tri-Agency.
RECOMMENDATION: It is therefore my recommendation and request
that the Del Norte
County Board of Supervisors accepts the first Annual Economic Development HAS199.COM" Report
as presented.
Sincerely,
Kimball A. Schmidt
Economic Development Project Director
Wed
OCT 17 2006
Board of Supervisors
County of Del
Norte
ECONOMIC DEVELOPMENT
PROJECT
"HASI99.COM"
Recap of Year One
(July 1 , 2005 - June 30, 2006)
Submitted by
Kimball Andrew Schmidt
Economic Development Project Director
RECAP OF FIRST YEAR
ECONOMIC DEVELOPMENT PROJECT
The Council of Economic Advisors (CEA), an advisory subcommittee
of the Tri-Agency Economic Development Authority (TAEDA), and community partners, recognized the critical importance of infrastructure
to Del Norte County's future when they spearheaded a plan to establish and hire an economic development professional. They
deemed this strategy °HAS199.COM", representing Harbor, Airport, Sewer, Highway 199, and communications.
The first full year of the Economic Development Project
in Del Norte County moved at a rapid yet deliberate pace. The structural foundation was put in place for the newly created
position of Economic Development Project Director (EDPD), and significant progress was made in terms of economic development
processes in Del Norte County that will continue to mature and develop in year two of the project and beyond.
The EDPD was originally scheduled for hiring in 2004, however
due to the extended time required to identify a qualified candidate the process was extended until April 2005. The actual
start date was July 1, 2005. Physically establishing a new office at the College of the Redwoods campus, while
concurrently gaining professional and personal familiarity with the funding partners, governmental organizations, private
sector entities, and the community at large, appropriately required a significant amount of the EDPD's time during the first
sixty to ninety days. Additionally, changes in staff support to TAEDA, and the determination of project priorities, engaged
the EDPD, the Tri-Agency Board of Governors, and the CEA during this initial phase.
The EDPD now provides administrative direction and carries
out the directives given by TAEDA, with the assistance of the Clerk of TAEDA. One noticeable change has been an increased
number of loans granted by Tri-Agency Board of Governors achieved by reasserting focus in this area, and through increased
cooperation with the Del Norte Economic Development Corporation and other contacts in the lending arena.
A ""Work Plan" was developed and presented to the TAEDA
in September of 2005 by the EDPD in conjunction with the CEA. Work then proceeded with partner agencies to conduct
and manage Request for Proposals for: destination restaurant development in tandem with the Crescent City Harbor District's
Master Plan; the Community Development Block Grant (CDBG) Airport Sub recipient Grant for Planning and Technical Assistance
funding for Airport Industrial Park Planning Services; and , contracting with a specialized consultant to conduct
a comprehensive "Tel etra nsportation "/ Broadband study for Del Norte County using Local Transportation
Commission (LTCO) funds.
This further entailed: agreements between the City, County
and Harbor for scope of work and outcomes; an agreement with the LTCO for the Broad band/Telecommunications grant; and work
with the CEA and others to promote the Tourism Marketing Plan. The EDPD was a contributing factor in the coordination with
the Board of Supervisors, City Council, Crescent
City Harbor District, Del Norte Unified
School District and Chamber of Commerce joint resolution to legislators in support of the major infrastructure projects
in the County.
SCOPE OF SERVICES AND DUTIES
The scope of services and duties as written in the contracts
between partner agencies (County of Del Norte, City of Crescent and Harbor District) and TAEDA require that the services provided
by the Economic Development Project target CaIWORKs anticipants, their families and those families under the 200% of the poverty
level. The aim of the Del Norte Economic Development Coordination Project (DNEDCP) is "to ensure the success of all local
economic development efforts, thus sustaining and creating employment opportunities."
The work of the EDPD essentially targets all persons residing
in the County of Del Norte, and particularly those within the 200% poverty level, by seeking enhancements to
transportation, telecommunications, infrastructure, and job creation and retention opportunities. This involves establishing
a new emphasis on the importance of a coordinated and comprehensive approach to economic development, which had previously
only been addressed in a piecemeal fashion. The ability of our community to access telemedicine, have improved transportation/import/export
routes, and the development of new jobs will impact and improve the quality of life for those within the 200% poverty level
and the community as a whole. The fundamental goal is the diversification of the tax base, the importation of dollars to our
community through both goods produced and services provided, the improvement of the standard of living and quality of life
for our citizens - and generally living up to our economic potential.
To this end, the TAEDA, a joint powers agency whose board is
comprised of two members of the Crescent City Council, the Del Norte County Board of Supervisors, and the Crescent City Harbor
District, sought advice from the CEA and staff (EDPD) to identify high priority infrastructure development and capacity building
projects, both through independent research and coordination with appropriate local agencies and organizations. To reiterate,
the general areas of emphasis selected were:
• Harbor
• Airport
• Sewer/Wastewater
• Highways 199/197
• Broadband
• Other (projects not specifically identified at this time)
To accomplish the necessary individualized work required
of each project , the EDPD began developing specific contacts
in the community, economic development arenas, and with professional resources from throughout the region . This
included regularly attending meetings of each partner/project organization , as well as of the Aviation Advisory
Committee, the Inter-Governmental Relations Committee, and through sitting on the North
Coast Small Business Development Center (NCSBDC) Board
of Directors.
An in-house administrative assistant/grant writer position
originally budgeted under the DNEDCP has not been employed to work on this project. The EDPD deemed it more budgetarily effective
to initially work on a case by case basis in conjunction with several area consultants to accomplish the goals listed above
by using professional business services, local grant writers, and economic development analysts. The Humboldt Area Foundation,
as the employee of record, handles the day-to-day finances of the project.
The EDPD delivered a written and oral report outlining goals,
objectives and strategies for the highest priority projects at the September 2005 TAEDA meeting, less than ninety days after
arriving. Work began on the initial analyses of those priority projects, identifying preliminary cost estimates as well as
the social, financial, and institutional barriers to project completion. Sources of project implementation funding and strategies
to address any such challenges and barriers were and are currently being researched and/or have been obtained, such as the
LTCO and CDBG funding. Close coordination with implementing/funding agencies and organizations has been ongoing in order to
ensure that projects move forward as various forms of funding may become available.
A key to the framework and success of economic development
efforts in Del Norte County requires leadership in the promotion of such efforts and the step by step realization of defined
goals and projects. The importance of maintaining a trusting, pragmatic, and nonpolitical working relationship with both the
public and private sectors, potential funders, private foundations, individual donors, the economic development community
at large, and the CEA, cannot be overstated.
After only a year, significant progress and advancements have
been made in areas that had previously languished for lack of direction and focus. These can be summarized as follows:
• Crescent City Harbor District
The EDPD has determined the Harbor as having the most immediate
positive development and synergistic impact potential for the County, and is focused on the "harbor-related" visitor-serving
aspects as defined in the Master Plan adopted in January 2006. The EDPD assisted in the final adoption of the Harbor Master
Plan and coordinated an RFP process for a destination restaurant development. This has subsequently also broadened into promising
"master development" interest and related scenarios that could potentially involve much of the Crescent City Harbor District.
Discussions are now underway with a number of restaurateurs, private developers, investors, permitting agencies, and potential
tenants. The District has designated the EDPD as the lead contact individual in moving this project forward in coordination
with the Harbormaster and Harbor Commissioners. These efforts have laid the groundwork for multiple businesses in the harbor
area which would positively impact those persons within the 200% poverty level by providing employment opportunities.
McNamara Field/De/ Norte County Airport
TAEDA entered into a sub recipient agreement with Del Norte
County to administer State of California Community Development Block Grant (CDBG) Planning and Technical Assistance (P/TA)
funds previously awarded for the production of an Airport Industrial Park Feasibility Study and full CDBG grant application.
The EDPD coordinated the RFP process to identify a qualified and specialized consultant to perform this study, which has been
secured and contracted with as of July 2006. The EDPD will continue to manage and provide oversight for this study.
This project will proceed in tandem with proposed developments
contained within the overall Airport Master Plan, which is approved by the Federal Aviation Administration (FAA) but not yet
funded. Given the distinct lack of developable land zoned for industrial or warehouse purposes within Del Norte County, it
is imperative to assess the feasibility of better utilizing County owned land, such as at the airport. Given the extended
and uncertain horizon for the implementation of the Airport Master Plan however, the EDPD believes that the timing for the
inter-related development of an accompanying industrial park cannot yet be determined.
The anticipated completion of the Airport Industrial Park feasibility
study in late 2006 or early 2007 will however serve as a necessary and critical baseline in reaching complex real estate and
development decisions in this regard well into the future.
Quarterly reports regarding the progress of this grant are
filed with the Del Norte County Grants Administration office. With the grant match having been met, funds are now being drawn
down based on the grant agreement and quarterly reports. The EDPD has worked with the Grants Administration department to
develop tracking and reporting information regarding the project and its budget.
Byproducts of this project include making access/departure
into our coastal community easier, thereby increasing enplanements and deplanements, and through providing job opportunities
and business expansion in the area. Funding for this study was specifically sought and awarded as to determine if potential
future development would positively impact those persons within the 200% poverty level by providing new employment opportunities.
Broadband/Telecommunications
TAEDA entered into a grant agreement with the Del
Norte County Local Transportation
Commission (LTCO) for the development of a "teletransportation "/ telecommunications study
to address the broadband and communication challenges and
inequities faced in Del Norte
County, and how the community can resolve those issues in
a regional and collaborative
approach . Original funding for this study was provided through the California Department of
Transportation (CalTrans).
The EDPD coordinated an RFP process to identify a qualified
and specialized consultant to perform this study, which was secured and contracted with as of May 2006. The EDPD has provided
significant up front assistance to the consultant in terms of familiarization with the area, existing resources, and
important contacts. The EDPD will continue to manage and provide oversight for this study. "Phase One" of this study report
was formally presented to LTCO at its June 2006 meeting by the EDPD, which in just a short time has made significant headway
in identifying infrastructure as well as both near term and long term strategies that can be taken to improve our broadband
and telecommunications capacity.
The secondary "Phase Two" of this study has been authorized
and funded by CalTrans and approved by TAEDA. It will delve into the teletransportation challenges and opportunities to a
much greater degree and detail. Specific opportunities may occur during the actual course of this research to achieve a certain
level of "breakthrough" progress as to redundant coverage and service levels provided by private carriers.
Telecommunications/teletransportation enhancements have been
proven to increase opportunities for business expansion and attraction, education, medicine, and employment.
In Del Norte County this will positively impact the community,
and specifically those within the 200% poverty level that may not currently be in a position to take full business or educational
advantage of such forms of communications. Likewise, it will serve to lessen the heavy reliance on traditional forms of transportation
and commerce, and lessen any negative impacts the County may have due to its physical isolation, both of which are consistent
with the intent of the grant.
• Highways 199/197
The EDPD regularly attends the LTCO meetings and is in regular
coordination with LTCO and CalTrans District 1 officials as to the status of planned expenditures, improvements, and upgrades
to U.S. Highways 199 and 197. Together, and in conjunction with U.S. Highway 101, these roads represent a crucial commercial
and economic link between Del Norte County, Interstate 5, and the world of commerce beyond.
The EDPD and the former Executive Director of LTCO assisted CalTrans in identifying and filming problematic areas of Highway
199 in the autumn of 2005. Additional funding and specific project acceleration has since been committed to by CalTrans
for 2006-2012. These and other projects underway between LTCO and CalTrans do not currently require a majority of
the EDPD's time given the extended funding and implementation schedules typical of highway transportation funding
projects. The EDPD will however stay in close contact with LTCO and CalTrans on a continuing basis as improvement projects
move to the implementation stages.
It is also anticipated that additional commercial traffic generated
by the presence of the new Home Depot store, other incoming retail development potential, and increasing tourism volume in
response to greater promotional marketing of the community, will necessitate the involvement of the EDPD on various ground
transportation matters to an increasing degree over time. Improved transportation corridors will provide direct and positive
economic impact for all persons living in the community, but will serve to provide particular benefit to those within the
200% poverty level by supporting tourism and encouraging the expansion and retention of transportation-dependent businesses.
• Sewer/Wastewater Treatment Capacity
The EDPD is in routine contact with the City of Crescent City Public Works Department in regards to the status of related improvement projects to the sewer and wastewater treatment
capabilities of the City of Crescent City and the larger "urban services area".
Serious capacity challenges that would have indefinitely restricted
future economic growth and development were in large measure alleviated shortly before the hiring of the EDPD due to Rumiano
Cheese Company installing a pre-treatment facility to remove suspended solids in their liquid waste streams.
As of this writing, a new water "outfall" project is nearing
completion, with large city constructed and contractor-constructed treatment facility improvement projects to be phased in
over the next three to four years. The City has recently applied to the State of California Revolving Loan Fund for significant capital improvement monies to accomplish these upgrades, and is confident of receiving major financing
through this funding mechanism.
Crescent City intends to seek bids for major portions of these capital construction projects in
the autumn of 2006.
Recognizing that the basic provision of sewer and water will
physically enable, or disable, the future development and economic viability of Del Norte County, the EDPD will stay closely
abreast of construction and financing progress, and ways in which to assist the City with the successful implementation of
these and other critical infrastructure capacity building projects.
Benefits of improved infrastructure capacity would potentially
enable more housing for those within the 200% poverty level, increase opportunities for commercial development, business expansion,
and retention, and result in a healthier community overall.
• Other
Administration - The DNEDCP has been overseen by the EDPD with
the assistance of a professional business service to handle the budgeting, agendas, and some of the reporting activities associated
with the project. The use of professional services and consultants has allowed the project the interim flexibility, seen as
necessary while the associated costs of having part-time or full-time staff and are being assessed for the long term. Acting
as the "employer of record", the Humboldt Area Foundation (HAF) provides resources, staff support, fiscal oversight, and payroll
services for the project.
Tri-Agency Economic Development Authority - Monthly meetings
of the TAEDA are held with the EDPD acting as executive staff to the Authority. The EDPD provides reports at each meeting
regarding progress on the key areas of emphasis given to the Del Norte Economic Development Coordination Project (DNEDCP)
as well as ther areas of interest for the Authority. The EDPD agendizes and has assumed a leadership role in the meetings,
and has worked diligently over the past year to improve and strengthen the relationships with the Del Norte Economic Development
Corporation (EDC) and the local office of the North Coast Small Business Development Center (NCSBDC). Developments fostered
by these relationships have enabled the Tri-Agency to increase the number of loans made from previous years and to extend
its influence in regional workshops and presentations. It should be noted that the EDPD now holds a seat on the NCSBDC Board
of Directors, currently serving as the sole representative for Del Norte County. During the twelve months from 7/01/05 to
6/30/06 the Crescent City office that represents Del Norte County held 234 Counseling Sessions (132 distinct clients), with
Total Session Hours of 498.75. About 15% of those clients reported back that 13 investments were subsequently made for a total
of $979,000.00, with 23 new jobs created.
Working in conjunction with the EDC, the EDPD hopes to identify
cost savings and improve the effectiveness of independent audit services by undertaking future joint bids for such services.
Council of Economic Advisors (CEA) - The CEA is a permanent
standing committee of TAEDA and is comprised of a cross section of private business interests committed to the economic future
of Del Norte County. Monthly meetings are held as to provide assistance, insight, and direction to the EDPD regarding the
specific mandates of the position, projects and directives assigned by TAEDA, and other pertinent matters. The EDPD agendizes
these meetings, which are convened by the chairman of the CEA.
OUTCOMES
The following outcomes are required under agreement with the
funding partners and help to assess and measure progress as well as assist in the administrative structure of the project:
• Reporting at least every six months to the County
of Del Norte,
To this end the EDPD reported to the TAEDA and Jeannine Galatioto,
County Administrative Officer of Del Norte County, in January of 2006 with regard to the first six months work accomplished under the project directives. This recap, reported to the same agencies, covers the first
twelve months of the project and establishes an outline for the next twelve months of the project.
• Recordkeeping/storage for the project
Records for DNEDCP as well as TAEDA are maintained at the EDPD's office, located on the
Del Norte branch campus of the College of the Redwoods. This includes the EDPD's timesheets, attendance logs,
a copy of the budget, and public/private stakeholders at any economic development
related meeting, along with meeting agendas, minutes , agreements, grant applications , contracts, and
other working documents.
Some records were transferred from EDC by the former Tri-Agency
Administrator in August of 2005, including meeting minutes and agendas from previous years, as well as other working documents.
As noted above, the CEA, as a permanent standing committee
of TAEDA and the Economic Development Goal Committee (EDGC), do have agendized meetings. However, no formal minutes are kept
and attendance by the council members is not mandatory.
• Maintain an ongoing work plan including identified
high priority projects and corollary goals, objectives,
strategies and timelines .
The work plan was submitted to TAEDA in September 2005. Timelines
and strategies can change due to outside influences, as projects develop and mature, and new goals and priorities are established.
The EDPD reports monthly to the TAEDA and CEA regarding the progress and work done in each category adopted and associated
matters pertinent to the economic resurgence of Del Norte County.
• Maintain records documenting progress toward
activities fulfilling the work plan accomplished under the project
directives. This recap, reported to the same agencies, covers the first twelve months of the project and establishes an outline
for the next twelve months of the project.
• Recordkeeping/storage for the project
Records for DNEDCP as well as TAEDA are maintained at the EDPD's
office, located on the Del Norte branch campus of the College of the Redwoods. This includes the EDPD's timesheets, attendance
logs, a copy of the budget, and public/private stakeholders at any economic development related meeting, along with meeting
agendas, minutes, agreements, grant applications, contracts, and other working documents.
Some records were transferred from EDC by the former Tri-Agency
Administrator in August of 2005, including meeting minutes and agendas from previous years, as well as other working documents.
As noted above, the CEA, as a permanent standing committee
of TAEDA and the Economic Development Goal Committee (EDGC), do have agendized meetings. However, no formal minutes are kept
and attendance by the council members is not mandatory.
Maintain an ongoing work plan including identified high priority projects and corollary goals, objectives,
strategies and timelines The work plan was submitted to TAEDA
in September 2005. Timelines and strategies can change due to outside influences, as projects develop and mature, and new
goals and priorities are established. The EDPD reports monthly to the TAEDA and CEA regarding the progress and work done in
each category adopted and associated matters pertinent to the economic resurgence of Del Norte County.
• Maintain records documenting progress toward
activities fulfilling the work plan
Detailed activity logs and timesheets are kept documenting
work and the time spent at each individual project as assigned by TAEDA at the EDPD's office. Projects reported include:
Harbor, Airport, Wastewater Treatment, Hwyw101/199, Broadband,
Other and Administrative/CEA/Tri-Agency. Project specific documents are kept in subject files documenting progress and
current status of each project area as well. The time studies are reported every six months to the Del Norte County
Administrative Officer as outlined in the agreement with funding agencies.
• Maintain records documenting in-kind services
and donations
In-kind services include space rent, office equipment, support
services, utilities, and other professional services. In-kind donations have been received and recorded for College of the
Redwoods, Del Norte Unified School District, Humboldt Area Foundation (HAF), Humboldt State University, and local business professionals in the amount of $115,799 for the period of July 1, 2005 through June 30, 2006. The documentation acknowledging that status/contribution of in-kind services, as
budgeted from the various participating entities, has been calculated and is being tracked and reported to the Humboldt Area
Foundation through the budget process. Hard match revenues from partner agencies are up to date at this time with only one
exception; one entity incorrectly allocated their funds to a prior fiscal year which caused a small loss of revenues. This
revenue loss is not considered to harm the project and is being reviewed to allow the possible exchange as an in-kind match
instead.
The 2005-2006 year budget ended with a fund balance that will,
with the scheduled revenues for year two and second year in-kind contributions, carry the project through the 2006-2007 fiscal
year and possibly leave a small remaining fund balance available for fiscal year 2007-2008. Significant attention will be
given to grant funding that would carry the project through year three (2007-2008) and beyond, as was originally anticipated
by project funding partners. Work has begun in this area by way of researching the feasibility and accessibility of securing
grants and other forms of sponsorship that would serve to both directly fund the position, as well as support new projects
and mandates that can be undertaken by the EDPD and TAEDA.
• Document participation and progress in efforts
to establish a Del Norte community development foundation
The establishment of a community development foundation in
Del Norte and Curry Counties was well underway at the time the EDPD was hired and brought on board. Work of this
entity, the Wild Rivers Community Foundation, continues and is currently thriving. No work has been provided from the DNEDCP
up to this time and is not anticipated.
CONCLUSION AND GOALS FOR NEXT TWELVE MONTHS
Del Norte County is currently not living up to its economic
potential, and remains very much in a transitional stage. The County has unfortunately been subject to calamitous forces out
of its control, of both a physical and regulatory nature, that have seriously impacted long-term economic viability. This
primarily entails the curtailment of both the fishing and timber industries from the dominant role they once played in the
County, as well as the devastating effects of the tsunami and other floods that occurred in 1964.
Ensuing reliance on state and federal disaster relief and other
forms of public assistance might also be reasoned as a contributing factor in terms of where we find ourselves today.
Combined with declining private sector investment, decreases
in privately owned land, and fewer family-wage job opportunities, the resulting economy is one that lacks diversity, direction,
and strength. The standard of living and overall quality of life in the County has suffered as a result, and has led to a
significant portion of our citizens living in the 200% poverty level.
There is real reason for optimism about our future however.
The good news is that we have a great deal to work with in an economic and community development sense. So many small communities
around the country would gladly welcome having the infrastructure and natural amenities that Del Norte County possesses. Yet,
we have been unable to effectively leverage and coordinate those strengths. Insufficient attention has been given to the need
for a concerted economic development strategy in the County - until now.
The establishment of the DNEDCP, and the hiring of the EDPD
to spearhead implementation of prioritized projects and defined goals, provides needed direction and focus to the specific
needs of this community. Like a building under construction, an economy also requires a sound foundation upon which to develop
further. Preparing and strengthening that foundation is what is primarily being focused on at this time.
During the next twelve months the EDPD will continue to manage
and bring to completion the two grant-funded projects underway -- the Airport Industrial Park Feasibility study and the eletransportation/Telecommunications analysis -- applying findings and recommendations
resulting from those into on-going and future work plans. The importance of both of these projects to Del Norte County's future
economic viability, even if through very different ways, cannot be overstated.
The redevelopment potential of the Crescent City Harbor District
has been identified by the EDPD as a primary catalyst for change and economic driver for the renaissance of the Del Norte
County economy. Physical progress made at the Harbor will serve to complement and "anchor" other projects envisioned throughout
the community, including the proposed Elk Valley Resort and Casino, and fit well with the increased emphasis on tourism marketing
that will be taking place over time. The EDPD will continue to work very closely with the C.E.O/Harbormaster and harbor commissioners
to help bring restaurant, hotel, and retail development projects to realization.
During year two, and over subsequent years, the strategy on
specific goals, projects, and infrastructure must remain focused, but also flexible and opportunistic in its execution.
Greater economic vitality for our wonderful county is within
reach, providing new opportunities and a better life for all.
