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HomeMy WebLinkAboutMINUTES - 04031984 - T.4 TO: BOARD OF SUPERVISORS Contra FROM: Supervisor Sunne Wright McPeak, Chair Employment Strategies Group Costa DATE: April 3, 1984 „ County SUBJECT: EMPLOYMENT STRATEGIES GROUP REPORT SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION Recommendation: Tha: the Board ACKNOWLEDGE receipt of the Employment Strategies Group report on new approaches for linking employment and training with economic development in Contra Costa County, and further, that the Board PRESENT certificates of appreciation to the members of the Employment Strategies Group for their valuable contributions. Background: The Board of Supervisors on April 19, 1983, established the Employment Strategies Group to work with the Finance Committee (Supervisors T. Torlakson and S. W. McPeak) and staff from the Private Industry Council, Stanford Research Institute International and the National Alliance of Business to address the Labor Force recommendations of the Economic Development Task Force report and to report back to the Board of Supervisors. r CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S) ACTION OF BOARD ON —April 3, 19R4 APPROVED AS RECOMMENDED OTHER X The Board also ORDERED that letters be sent to National Allicance of Business for their sponsorship role stating that the Board appreciates their willingness to designate Contra Costa County as a site, and to S . R. I . International for its technical assistance . VOTE OF SUPERVISORS X UNANIMOUS (ABSENT I ) I HEREBY CERTIFY THAT THIS IS A TRUE AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOA } (� OF SUPERVISORS ON THE DATE SHOWN. lJ 04, !g /rp CC: County Administrator ATTESTED .-CQAA.�4 3_ /98-'1 Private Industry Council J.R. OLSSON, COUNTY CLERK Public Works Director AND EX OFFICIO CLERK OF THE BOARD Director of Planning County Counsel M382/7•83 Community Services BY DEPUTY U,,,-,-- THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on Ap r i 1 3 . 1984 , by the following vote: AYES: Supervisors Fanden, Schroder, McPeak, Torlakson NOES: None ABSENT: Supervisor Powers ABSTAIN: None SUBJECT: Economic Development ) RESOLUTION NO. 84./200 Assistance Strategy ) WHEREAS, a major objective of Contra Costa County's economic development efforts is to provide new jobs for the resident unemployed; and WHEREAS, the maintenance of long term business competitiveness and expansion and diversification of-the local economic base requires the creation of new jobs through the promotion of private.investment; and WHEREAS, there is a need to alleviate economic distress by increasing,employment opportunities for the lower income and unemployed, particularly in areas where such workers are concentrated; and WHEREAS, the County can be an active partner in the creation and retention of jobs, particularly in the area of effectuating linkages between employment programs to economic development programs. THEREFORE, BE IT RESOLVED, that Contra Costa County will consider employ- ment opportunities accruing to the resident unemployed and low income population as a key factor in the provision of economic development assistance, and that all developers assisted will. be requested to cooperate in order to achieve the desired "public purpose" benefits. Further, the Board of Supervisors hereby adopts the Economic Development Xssistance Strategy as presented at this meeting as part of the County's overall Economic Development Policy , a copy of said Strategy is attached hereto as Exhibit A. I hereby certify that this Is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: � 3- /f 8t/ J.R. 0MON, COUNTY CLERK and ex offlclo Clork of the Board Orig. Dept.: Planning Department CC: Public Works Director PIC By. Deputy County Administrator County Counsel Community Services 2b Housing Authority 000449 RESOLUTION NO. 84/200 w- a ECONOMIC DEVELOPMENT ASSISTANCE STRATEGY The image and business climate of Contra Costa county is strong. Blessed by an attractive physical environment, and well located with respect to development in the region and state, Contra Costa County has consistently shown well in terms of quality of life and economic indices. When combined with available land and infrastructure, a well-educated population, and affordable housing, we have a description of a healthy local economy. More recently, however, it has become evident that the County is not insulated from national economic trends. Unemployment has reached unacceptable levels, particularly in certain geographic areas and among certain population groups. Further, there is evidence of chronic unemployment problems in the County in certain areas and among certain population groups. For these reasons it becomes necessary for the County to become an active partner with the private sector in the creation and retention of jobs. In so doing it is the expressed intent of the County to undertake programs and projects which encourage long term private sector job creation. While there are a number of ways of accomplishing this objective, resources are limited. Therefore, in any given year, choices must be made from a number of programs, projects and opportunities. In making choices, the fundamental premise of this Economic Development Assistance Strategy is that priority should be given to public investments that will create jobs for the resident unemployed and low income populations. In the context of this strategy, economic development assistance may include financial and non-financial forms of assistance. Policy 1 Public/Private Partnership Private investment decisions and consumer choice are the driving forces that lead to job creation. The public sector's principal role-in economic development is one of support. Therefore, it is the policy of the County to foster and promote a constructive working partnership with private businesses in a manner in which benefits accrue to both partners. This will be accomplished by the following means: a) Recognition that economic development and job creation is the primary responsibility of the private sector. b) Using public funds to leverage private investment; i.e., use public resources as a source of gap financing. c) Financial assistance provided through public sector programs shall be primarily in the form of loans, loan subsidies or equity financing. d) Structuring assistance so that a public purpose, commensurate with the level of assistance provided, is achieved while creating profitable private invest- ment opportunities., e) Considering more intense development within land designated for employment generating uses. Exhibit A5t/ r ,r Page 2 Policy 2 Employment Targets It is the policy of the County to maximize the placement of unemployed and economically disadvantaged into private sector jobs created by local economic development programs and projects. This will be accomplished by the following means: a) Giving highest priority to investments, projects, and programs which provide assurance that jobs will be filled by the resident unemployed and economically disinfranchised. b) Giving high priority to investments, projects, and programs leading to new job creation in areas of the County where unemployed or lower income workers are concentrated. c) Giving high priority to investments, projects, and programs which lead to .creating more jobs requiring existing skills or those which can-be acquired by a large number of unemployed workers. d) Continuing to provide manpower training programs by anticipating and reinforcing the economic development efforts, and by establishing communica- tion links between places of initial contact by the private sector and the manpower training programs. Policy 3 Regional Partnerships The County is part of a regional economy. Furthermore, the County is a suh-region comprised of both cities and unincorporated communities — each with their own character and interests. It is the policy of the County to increase and strengthen economic cooperation across political boundaries. This can be accomplished by the following means: a) Supporting and strengthening sub-regional approaches to promoting economic development through the provision of 1) economic data and analysis, 2) technical assistance in economic development planning, and 3) labor training and placement. b) Undertaking a coordinated promotional outreach effort which emphasizes the attributes of the County in general. 00040 . Page 3 ILLUSTRATIONS OF THE LINKAGE The following is intended to illustrate how the linkage between economic development activities and employment activities can be secured. The ability of the public agency to determine the nature and terms of the linkage is a function of the leverage available. The degree of leverage runs on a continuance from a very high degree of control because of the level and type of direct involvement; e.g., direct development financing, to a low level of control; e.g., promotional and/or outreach efforts. Two examples are provided to illustrate the types of linkages that can be developed. Case 1 Development Financing with Community Development Funds The owners of an automotive service firm desires to purchase the land and buildings from which they have operated on a lease arrangement. Further, the owners desire to purchase an adjacent parcel so that they can expand their servicing capacity. Total costs for the purchase and expansion is $300,000. The owners have applied to the Small Business Administration (SBA) 503 Loan Program to provide the bulk of the long term, fixed-asset financing. The SBA 503 program requires the small business concern to inject 10% of the total project cost. The owner does not have the ability to come up with the $30,000 in equity, but can come up with $15,000. Therefore, the owners apply to the Community Development Revolving Loan Program (RLP) for the $15,000 in additional equity funds necessary to close the SBA loan. To receive assistance, the firm will need to address the following: 1) Federal Regulatory Requirements - low- and moderate-income benefit as evidenced by the: Nature and extent of the skills, education and experience required to qualify for the jobs. Training opportunities which would make such jobs available to low-and moderate-income persons who would not otherwise qualify. Advertising and recruiting efforts directed toward low- and moderate- income persons. Accessibility of the jobs to areas where a substantial number of low- and moderate-income persons reside. 2) Potential Program Parameters — The program may impose requirements and/or criteria to be met in order to obtain the financing; such as: A. Job Factors - . The number certainty and duration of jobs created or retained the ratio of jobs created or retained to funds requested types of jobs created or retained 000404 Page 4 - availability and willingness of owners to use public job training program referrals the willingness of the owners to incorporate 'on-the-job training into their hiring practices preferential hiring of low and moderate income persons. B) Leverage - related factors - leverage ratio with other funds (private or public) - recapture of public investment - local revenue enhancement - percent of private funds invested. C) Need, Cost Effectiveness, Feasibility, and Impact Factors - project provides a service not presently or adequately available - the project will allow for continued business growth - effect on the local tax base - elimination of slum and/or blighting conditions readiness of the project to proceed furtherance of other public goals; i.e., energy conservation, affordable housing, neighborhood revitalization, historical preservation, and environmental quality degree of public support Result - The County has a program of providing loan funds as part of SBA 503 loan transactions. The County provides an 8% loan for $15,000 with a term of 25 years, secured by a subordinate deed of trust on the property. The loan meets the leverage provisions (the $15,000 CDBG loan is part of a $300,000 SBA 503 loan; i.e., 50% from a private lender, 40% from SBA, and 5% from the owner, 5% from the County). The loan meets recapture provisions and is the gap financing necessary to make the transaction feasible. In ,order to meet the low and moderate income benefits tests the owner, under provisions of the loan agreement, agrees to the following: hire at least 3 additional persons in order to meet the established criterion of one job for every $5,000 of public investment notify the Private Industry Council Department of its employment needs and agree to recruit for the new,positions via referrals from job training programs. 000453 Page 5 Case 2 Promotional/Outreach The County Planning Department receives an inquiry from an entrepreneur desiring to start up a specialty bakery operation in the Bay Area. The firm provides its physical requirements (acreage, access to transportation, etc.) and indicates that it anticipates hiring predominantly semi-skilled labor from the local job pool. The Planning Department, being the initial contact point of the entrepreneur, inquires about the number and types of jobs to be created by the business venture (A questionnaire could be developed and provided to initial contact agencies to facilitate the provision of information to the proper channels). Response: The Planning Department, a member of the network of agencies and organizations interested in the economic development of the County, refers the entrepreneur to and notifies the PIC of the number and type of jobs prospectively to be created, and the Planning Departments of two cities with available land meeting the physical requirements. The PIC agrees to provide a survey of current labor conditions to ascertain the availability of workers to fill the potential jobs. It discovers that a shortage of workers exists in the job skill area involved and agrees to undertake a job training program for the firm if they locate in the County. The firm discovers that two sites fit their needs in the unincorporated County. The sites have the necessary general plan and zoning designations, and are available for purchase at a price acceptable to the firm. The sites are equal in terms of their assets and liabilities except that one is adjacent to a community experiencing chronic high unemployment. The County Planning Department agrees to provide priority processing to the firm if it will locate in the distressed community. Further, the Department will consider intensification to the land use, consistent with general plan policies and environmental limitations, in exchange for an agreement to hire and recruit trainees from the local area. 2B 000454