< PreviousScale, Scale, 28 C A L I F O R N I A I N V E S T M E NT G U I DE How can companies scale in the Bay Area? Move to Solano County. by SAVA N NA H K I N G I N V E S T M E N T P R O F I LE : Solano County The San Francisco Bay Area is one of the hottest markets in the country and getting hotter every day. While this speaks volumes about the region’s rich and innovative business climate, it also creates a barrier for businesses trying to grow. Fortunately, there’s more to this region than its pricey urban cores. Solano County is located on the state’s major transportation corridor. Its seven incorporated cities, four of which are on the water, offer a variety of opportunity for business and an exceptional quality of life. As the northeast county in the nine-county Bay Area, Solano is far enough away from the area’s urban centers to offer more affordability as companies grow, and yet close enough to allow those businesses quick and easy access to the area’s major markets. In fact, Solano is just 30 miles from San Francisco, 63 miles from San Jose, 22 from Sacramento and 15 from Napa Valley’s world- renowned wine country. “Everyone has heard of Napa, San Jose and San Francisco,” says Daryl Halls, Executive Director of the Solano Transportation Authority. “But Solano has a lot of the attributes of Napa County without the prices. I mean, my goodness this place is beautiful. But people don’t know because we only get viewed by what you see from the highway. There’s a lot of open space. There’s a lot of businesses that can take advantage of this.” The region’s supply chain for advanced materials, biotech and biomedical, and logistics is particularly strong. Solano offers access to six highway corridors and a railway branch line operated by Union Pacific, all of which provide access to the ports in Benicia, Oakland, Richmond, San Francisco and West Sacramento. In addition to Save, Solano Golden Gate Bridge Photo courtesy of VisitVallejohaving access to three international airports within a 60-mile radius, the region is home to the largest air mobility unit in the U.S. operated near Fairfield at Travis Air Force Base. Additionally, the Napa Valley and Sonoma County wine regions are major drivers for the food and beverage and logistics industries. Familiar names including Anheuser- Busch, Jelly Belly and Caymus Wines call Solano home. One of the county’s newest companies is a tech-enabled, organic food company called Thistle. Founded in San Francisco in 2014, Thistle chose to relocate its ready- to-eat packaging facility to Vacaville, where it will operate a 79,000-sq.- ft. facility and employ more than 250 people in its initial phase. The company cited Vacaville’s proximity to the rest of the Bay Area and its longstanding agricultural ties as the primary reasons to locate in Solano. The company’s decision to stay in the region also means it can retain employees. With transportation options like its ferry system between Vallejo and the San Francisco Ferry Building, highway transit system, and Amtrak Capital Corridor train route, the region has the opportunity to efficiently share a workforce with the larger Sacramento and Bay Area regions. In addition to being able to retain employees, Solano offers operating costs that are 15 to 20 percent less, and the county’s ample industrial space costs up to 40% less than surrounding areas. With more than 21 industrial parks, 207 ready-to-go sites (ranging from small 1- to 2-acre lots to mega-sites over 100 acres), and 2 million sq. ft. of industrial, flex and warehouse space, there is ample room for companies to grow. Factor in the region’s shared workforce of more than 1.3 million people within 40 miles, and it becomes easy to see why companies want to be in Solano. “One of our competitive advantages as a region and a county is the fact that we’re the area that connects the Bay area, the Napa wine region, the Sacramento Valley and even the Delta region. That proximity is really important, but how we take advantage of it is even more important,” says Robert Burris, President and CEO of the Solano Economic Development Corporation. “The beauty of Solano is that we have room to grow.” C A L I F O R N I A I N V E S T M E NT G U I DE 29 Port of Richmond Port of Oakland San Francisco Int’l Airport Oakland Int’l Airport Mineta San Jose Int’l Airport Sacramento Int’l Airport Port of San Francisco Port of Benicia Capital Corridor Port of West Sacramento This Investment Profile was prepared under the auspices of Solano Economic Development Corporation. For more information, email Robert Burris, President and CEO, at robert@solanoedc.org or call 707-864-1855. Solano by the Numbers County Population (Jan. 2018) 439,793 Median Household Income (2017) $72,950 Median Housing Price (2019) $440,300 Non-Farm Employment increased by 4,300 jobs or 3.3% growth in 2018 Unemployment now at 3.8%30 C A L I F O R N I A I N V E S T M E NT G U I DE orthern California has a not- so-secret holdover from the state’s golden days. Redding is in Shasta County, nestled between the Cascade Mountains and the Trinity Alps. This community of almost 92,000, enjoy abundant recreational opportunities, high quality of life and a business-friendly climate. Redding’s strategic location on Interstate 5 gives businesses easy one-day transport to West Coast markets of Seattle and LA. This provides access to more than 50 million people via freeway, rail and air within a 24- hour period. The region also offers a lower cost of living than other markets in the region. In fact, the cost of living in Redding and Shasta County is 60 percent less than in San Francisco. We spoke with Tony Giovaniello, Shasta EDC President, about the region’s ability to grow businesses to new heights. What are some of your city’s more noteworthy economic development accomplishments over the last few years? TONY GIOVANIELLO: We have all kinds of development underway. We have a “downtown specific” plan which has the input of citizens that focuses on redeveloping and improving our downtown area. This plan has helped to encourage private investment in downtown. Over the last few years, we have seen many new restaurants, craft breweries, and cafes come online. We are truly becoming a walkable and bikable place. Other important improvement projects include remodeling/ repurposing of older, under-utilized buildings, brand new developments and placemaking initiatives. How would you describe Redding and Shasta County? GIOVANIELLO: Comparing our cost basis, we are far below that of the rest of “Northern California.” Our costs are dramatically lower costs in wages, energy costs, water costs, land prices, home prices, and general cost of living. In some cases, costs are lower by as much as 40 to 60 percent. When looking at Northern and Southern California, compared to our area, we would almost seem like a different and better state, much more like the California of 50 years ago where business was welcomed with open arms and low costs provided a platform for success. However, we still have the beauty and the accessibility to the large markets in California and throughout the Western US. Redding, is the heart of Upstate California. How would you describe Redding’s workforce? GIOVANIELLO: We have a broad base of talent in our area. Our human capital is well- balanced with skilled, semi-skilled workers, knowledge/technology professionals, engineers, educators, health professionals and management. Our unemployment typically ranges about 1.5% higher than the rest of California. That means we always have the ability for new companies to relocate or expand into our area as well as support the growth of our resident companies. The educational institutions at all levels work closely with the business community to create pathways of affinity between education and current and emerging career opportunities. What makes your city the best place to do business? GIOVANIELLO: Our businesses support each other. There is an environment of collaboration and a focus on doing business locally, wherever possible. Some of this comes from the frequency of connectivity we have in the business community through Rotary, Lions Clubs, various local business associations, the Economic Development Corporation (Shasta EDC), the Chambers of Commerce, the Builder’s Exchange, and the many well-attended events conducted by these organizations. N C I T Y P R O F I LE : R E D D I N G The Sundial Bridge at Turtle Bay is a popular route for bicycles and pedestrians Images right courtesy of Visit CaliforniaC A L I F O R N I A I N V E S T M E NT G U I DE 31 by SAVA N NA H K I N G Redding Upgrade to the Upstate Photo: Getty Images Redding Redding32 C A L I F O R N I A I N V E S T M E NT G U I DE resno’s scenic backdrop against the Sierra Nevada mountains is a sight to behold. While the vista is stunning, the bustling city in the valley below is just as intriguing. From software startups to time-tested manufacturing firms, Fresno’s leaders are excited about the city’s future. We spoke with Ashley Swearengin, CEO of the Central Valley Community Foundation and former mayor of Fresno, about what the city has to offer. Tell us about some of the things Fresno is doing to prepare for the future and to encourage investment in the community. SWEARENGIN: We have been hard at work preparing ourselves for economic expansion. So, we’ve been growing our own businesses, as well as being a hospitable place for business expansion on the West Coast. That involves a lot of local policy change and infrastructure investment and readying ourselves for business investment. For example, we completely updated our local land use and zoning laws. We removed barriers to local investment in all of our local regulations. Whether it’s commercial development industrial development, we have a very turnkey approach to accommodating business investment. We also have gone through almost $600 million of water infrastructure investments over the last five years, with about half of that going toward a water treatment plant. We have a 60-year water supply in the city of Fresno. We’ve also installed significant new transit routes in our community. All of that crescendos into a place where people really feel like they can do business and grow and be successful. Can you share a few examples of businesses that have found success in Fresno recently? SWEARENGIN: Probably the most exciting is what’s going on with our manufacturing industry in Fresno and the Central Valley. Our manufacturing has kept up with national rates of growth at about 13 percent. While manufacturing is declining in other parts of California, we’re going gangbusters with manufacturing, as well as value-added food production. We’re seeing that in the expansions of our local businesses. We have an exciting new software development community in Fresno. So, you’ll find a lot of young millennials and Gen Ys downtown working and drinking coffee 24/7. They’ve given birth to a lot of exciting new tech companies as well. We’ve had sizable installations from Amazon and Ulta for their ecommerce fulfilment centers. We have had a pretty significant call center and back-office operation for Bank of America. We’ve got a number of cell phone companies that have very large customer service centers in Fresno. How would you describe Fresno’s workforce? SWEARENGIN: What we hear consistently from employers is their single greatest asset in the Fresno region is their workforce. People here are loyal and hard working. It’s not uncommon for employers to have employees who have been with their business for multiple generations. Parents working for 30-plus years and now their kids are working in the same business. That’s definitely the hallmark of the Fresno workforce — longevity and loyalty. Again, just the youth in our area suggests we have this incredible talent pipeline. In fact, between the technical and community college (organizations) and the newest campus in the University of California system — UC Merced — we’ve seen 5,600 STEM graduates in the last five years, and 80 percent of our college graduates stay in the four-county area. So, people are really rooted here. F C I T Y P R O F I L E : F R E S N O Fresno is quickly becoming a hot spot for tech talent with the addition of Bitwise Industries. Images right courtesy of Go BizC A L I F O R N I A I N V E S T M E NT G U I DE 33 Fresno by SAVA N NA H K I N G Fresno The Future is in Photo: Getty Images Fresno Photo: Getty Images34 C A L I F O R N I A I N V E S T M E NT G U I DE ince its earliest days, Ontario in San Bernardino County has been a bright star in the Golden State. Today, the city touts itself as a “Complete Community” offering an urban lifestyle and economic vitality. Located in Southern California about 35 miles east of downtown Los Angeles, Ontario is less than an hour drive from beaches, mountains, wineries and major attractions like Palm Springs and Disneyland. Ontario is expecting to add 150,000 new residents in the next 25 years, which would make it one of the 100 largest cities in the US. The city is home to 177,000 people today, but by 2040 it will be home to more than 300,000 people. Top industries in the region are manufacturing, retail and health care services which make up 40 percent of the city’s workforce. In an effort to keep up with this expected growth, the city has made significant investments in its high-capacity communications infrastructure. Ontario’s Fiber Optic Master Plan is part of the city’s long-term strategy to provide cost-effective, fast and reliable communications for residents and business. The investment will also be integrated into the city’s traffic signals and serve as the primary backbone for the city’s transportation network. The cost of doing business in Ontario is lower than in nearby markets like Los Angeles and several other Southern California cities. The cost per square foot of the city’s retail, office, commercial and industrial space is also lower than it is along the coast. Even housing is more affordable, with Ontario’s median house price being 14 percent less than Los Angeles. Ontario is the hub of industry in the Inland Empire, and its ideal location offers easy access to three major Southern California arteries: I-10, I-15 and State Route 60. Interstate 10 has recently been enhanced with an additional high- occupancy-vehicle lane. Ontario is served by two major railways, the Burlington Northern Santa Fe Railway and Union Pacific Railway. The city also offers strategic access to the Ports of Long Beach and Los Angeles. The Ontario International Airport is the 15th busiest air cargo airport in the U.S. The airport offers daily passenger flights through major carriers like American, Delta, United and Southwest. In 2018, more than 5 million passengers flew threw the airport. With so many advantageous assets for business in one place, it should come as no surprise that the region is attracting investments and helping companies grow. Some of the companies who’ve settled in the region include Maglight Flashlight maker Mag Instruments Inc., The ICEE Company, Toyota North America, Cardinal Health, Nordstrom, AEG and Uline. And there’s still plenty of room for newcomers as the city has more than 100 million square feet of available manufacturing and distribution space. QVC also operates its West Coast Distribution Center from Ontario where it accommodates approximately 20 percent of the company’s total U.S. business. “Throughout our site search, we considered a number of factors including location, size, proximity to transportation, and a qualified labor force,” said Rob Muller, Senior Vice President of Customer and Business Services of QVC. “When we ranked everything, Ontario was by far the best.” S C I T Y P R O F I L E : O N T A R I O RIGHT: Citizens Business Bank Arena; a hiker; Fashion District All images courtesy GOCVBC A L I F O R N I A I N V E S T M E NT G U I DE 35 Ontario by SAVA N NA H K I N G Onward Ontario Ontario36 C A L I F O R N I A I N V E S T M E NT G U I DE Californians prove their resiliency after devastating wildfires. isaster can strike anywhere, anytime. What matters most is how communities overcome these challenges and learn how to better prepare for the next hurdle. Several California communities have been through one of nature’s worst events in recent years. While the losses these communities suffered is significant, their resolve to rebuild is even more so. In October 2017, wildfires prompted mass evacuations of several counties including Napa, Sonoma, Yuba, Butte, Lake, Mendocino and Nevada. More than 245,000 acres were burned and 8,900 buildings were destroyed. A little more than a year later, two more wildfires broke out carving a path of destruction through three counties, Butte, Los Angeles and Ventura. The Camp Fire, which spread through Paradise and Butte County in November, ultimately claimed 85 lives and burned more than 153,000 acres, making it the deadliest and most destructive in state history. The cause of the wildfire was determined to be caused by electrical transmission lines owned and operated by Pacific Gas and Electricity (PG&E). The company announced it would increase financial incentives for energy-efficient con- struction practices in homes or busi- nesses rebuilt after the wildfire. To help prevent future disasters, the state has launched a $50 million public campaign on preparedness and to immediately expedite forest management projects that will protect 200 of California’s most vulnerable communities from wildfire. Another key effort is Gov. Gavin Newsom’s “Innovation Procurement Sprint” initiative which will give the best and brightest minds an opportunity to test their wildfire solutions in the field. The governor ordered this “sprint” so the best tools and technologies can be purchased under government contract while they are still cutting-edge, in an effort to save lives and properties. “California has experienced an increase in catastrophic wildfires over the past 10 years,” said CAL FIRE Director Thom Porter. “The Procure- ment Sprint enables CAL FIRE to think outside the box and work with innovators from across the private, public and non-profit sectors to identi- fy solutions to the challenge of detect- D by SAVA N NA H K I N G R E C O V ER Y EF F O R T S Rise UpC A L I F O R N I A I N V E S T M E NT G U I DE 37 ing when a wildfire starts, and subse- quently, where the fire will progress.” Additionally, the U.S. Department of Housing and Urban Development has awarded $491.8 million to the state through a Community Development Block Grant-Disaster Relief Program. Community groups must decide what the funds should be used for as part of rebuilding efforts. “Last’s year’s wildfires were some of the worst ever in Northern California. The Carr Fire burned over 220,000 acres, and the Camp Fire was the costliest natural disaster in the world for 2018,” said California Rep. Doug LaMalfa. “That means Redding, Paradise and other affected areas still have an extensive rebuilding process ahead, and that will require a significant amount of time and money. … This funding will help our people rebuild their homes and businesses in Northern California and slowly return to a more normal way of life.” Indeed, life is returning to normal in Butte County. As of May 18, the city of Paradise in Butte County has cleared 3,138 lots of debris and recently issued its first rebuilding permit. Many residents of Paradise have been anxious to begin rebuilding as soon as possible, and now as lots are being cleared, permits will begin to be issued with increasing frequency. Paradise has hired additional contract staff to help with the increased number of permit applications that will be received in the coming months. “This first building permit is a sign of the resilience and perseverance that our residents have in coming back to Paradise,” says Paradise Mayor Jody Jones. “I look forward to many more!” Redding was another of the communities affected by wildfire in July and August in 2018. The fire caused near- ly $1.7 billion in damages and took eight lives. Although the city is still recovering, it’s taking proactive steps to protect the community from future wildfires. The city is integrating wildfire mitigation efforts into its rebuilding and planning efforts through improved land-use planning and adopting a de- fensible space requirement around new construction. “We are a resilient community, and our rebuilding process is rapidly progressing in the outer areas of our city and in the county, where we lost approximately 1,100 homes to a devastating fire last July and August,” said Tony Giovaniello, Shasta EDC President. “We are aggressively supporting the process by working closely with families, insurance companies, building, banking institutions, federal and state agencies and our permit center to make things happen very quickly.” Just west of Redding, Whiskey-town National Recreation Area is set to reopen for the summer after being the starting point for the Carr Fire that ravaged the region in July. The fire burned 93% of the park’s 42,000 acres and another 229,651 acres and 1,604 buildings outside of the park. Though some of the hills surrounding the lake have been stripped of their flora and the soil is scarred with scorch marks, many others are already showing signs of new growth. The 3,200-acre lake with its 36 miles of shoreline is once again drawing visitors from across the region — yet another testament to California’s spirit of rebirth and perseverance. “The rebuilding process is rapidly progressing in the outer areas of our city and in the county, where we lost approximately 1,100 homes to a devastating fire last July and August. ” —Tony Giovaniello, President, Shasta Economic Development CorporationNext >