baeFINAL

Glenn County Green Technology and Agricultural Industries

Feasibility Study

Submitted to: Sheri Nix

3CORE, Inc.

March 15, 2011

T a b l e o f C o n t e n t s Executive Summary............................................................................................ii Introduction .........................................................................................................1

Definition of Agricultural Industries............................................................................. 1 Definition of Green Technologies................................................................................. 1

Overview of Glenn County’s Economic Base...................................................2

Agricultural Industries........................................................................................8 Agricultural Production Trends..................................................................................... 8 Other “Agricultural Industries”................................................................................... 11

Green Technologies in Glenn County.............................................................13 Existing Green Technology Businesses ...................................................................... 13 Glenn County Green Technology Start-Up Companies.............................................. 14 Green Technologies Within Traditional Industries..................................................... 15

Preliminary Targeted Industries ......................................................................17 Agricultural Industries ................................................................................................ 17 Green Technologies .................................................................................................... 22

Site Availability and Site Requirements..........................................................26

Site Availability .......................................................................................................... 26 Site Requirements for Targeted Industries.................................................................. 27 Adequacy of Existing Sites ......................................................................................... 29

Implementation Strategy ..................................................................................30 Priority Programs and Actions .................................................................................... 30 Optional Long Term Business Recruitment Activities ............................................... 35

Appendix A: Summary Notes from Stakeholders Meeting...........................40

Appendix B: Businesses Interviewed ............................................................45

Appendix C: Potential Implementation Resources .......................................46 Potential Implementation Partners .............................................................................. 46 Business Financing Resources .................................................................................... 48

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E x e c u t i v e S u m m a r y This report provides Glenn County with background information on the local economy, identifies target industries in the agricultural and green technologies sectors that match with local assets, evaluates site requirements, and then recommends an action plan for the County to follow to retain, expand, and attract industry growth. The action plan is geared towards priority actions that the County can implement for the most part with existing staff and resources, but it also outlines long-term actions that the County can undertake if it is able to dedicate additional resources to economic development. Existing Economic Base Approximately 1,500 establishments (including government agencies) employing over 9,400 workers operate in Glenn County. Almost 80 percent of the establishments have five or fewer employees. There is a good distribution of employment across the various sectors of the local economy, with Agriculture, Forestry, Fishing, and Hunting being the single sector with the largest number of employees; however, it is important to acknowledge that, locally, businesses in many sectors outside of agriculture are directly or indirectly dependent upon agriculture, which serves as Glenn County’s primary base industry. Aside from this, another notable fact is that if employment in government agencies is pulled out of the various sectors and combined into one category, it would represent about 30 percent of total employment. Agricultural Industries Agriculture functions as the primary “basic” industry within Glenn County. A base industry is an industry that produces goods that are exported outside of the region, creating income that supports the local population and its ability to create economic support for “non-basic” industries, such as retail, services, and government. Businesses in the Agriculture, Forestry, Fishing & Hunting sector employ 1,259 people. In the five-year period from 2003 to 2008, the value of Glenn County’s agricultural production grew by 76 percent. The value of the County’s two most important agricultural crop types historically, field crops and field and nut crops, both increased at rates greater than the rate of increase for farming as a whole. Organic farming is currently a relatively small component of the Glenn County agricultural sector, but organic farming acreage increased 214 percent between 2004 and 2008. As of 2008, field crops were responsible for nearly half of Glenn County’s agricultural production value. Fruit and nut crops accounted for more than one fourth of the value. The shares for both crop types were up slightly from 2003. Other “Agricultural Industries” While the preceding section focused strictly on direct agricultural production, the number of local business establishments in other sectors that are likely tied in some way to the “basic” agricultural activity illustrates the importance of the “indirect” or multiplier effects of the agriculture industry, through its linkages to other industries within the county.

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Analysis of the data on related industries indicates that such businesses employ 859 people, in addition to the 1,259 employees in the various agriculture sector businesses. In addition to the indirect employment that the ag sector supports in the industry categories listed above, there are no doubt additional jobs supported in various sectors through “induced” impacts, which are the jobs created when people employed directly in agriculture or indirectly in supporting industries spend a portion of their household income within the local economy on any number of goods and services, supporting more businesses. Green Technologies in Glenn County Glenn County has a handful of existing businesses that are directly involved in “green technologies,” and a couple of ambitious start-up companies that would involve the use of green technologies on fairly large scales. Aside from these companies, Glenn County is seeing increased use of green technologies through the incorporation of green technologies into traditional commercial activities. This primarily includes water and energy conservation practices, but also includes sustainable solutions for disposal of agricultural and food processing by-products. Targeted Industries The following targeted industry types have been targeted for Glenn County, based on existing industry strength, prospects for growth, and the County’s unique competitive position:

• Crop Production - rice, nut and fruit crops, and dairy production

• Specialty Equipment Manufacturing – focusing on machinery used in local ag production

• Agricultural Supplies and Services – focusing on vendors who deal with products

targeted to crops where Glenn County and surrounding counties are leading producers

• Value Added Food Processing – for products that utilize local crops as inputs

• Agricultural Tourism – to leverage the County’s economic base to take advantage of

this emerging trend in tourism and provide agricultural producers an additional source of income diversification

• Materials Recycling, Including Ag By-Products – taking advantage of the County’s

large agricultural sector for inputs

• Alternative Energy Projects – including energy production utilizing ag by-products

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• Water Conservation and Efficiency – emphasizing the efficient use of water – the

lifeblood of the County’s agricultural industry Site Availability and Site Requirements There are numerous vacant sites throughout Glenn County that could accommodate the identified agricultural and green industries under the current zoning code; however, most vacant sites lack basic infrastructure such as water and sewer services, which continues to be a major barrier to Glenn County’s ability to attract new industry and diversify the economic base. Because initial infrastructure investments needed to establish new facilities can become a significant barrier to prospective businesses, the County may increase the potential for success of future business recruitment efforts by working to enhance infrastructure conditions for a select number of opportunity sites, either directly or via financing assistance. There are currently 127 acres of vacant land zoned for industrial and/or commercial uses and 1,030 acres of vacant land zoned for agricultural uses in Glenn County, which in certain circumstances can support food processing facilities and supplier companies directly linked to the agricultural use of the property. Important industrial sites within the county include the Orland Airport, other sites in the greater Orland area, sites in the Artois and Butte City industrial “strips”, and two large sites owned by KV Baker and CalAg that are 478 acres (near Hamilton City) and 273 acres (near Willows), respectively. There is likely additional acreage available for development on underutilized industrial sites throughout the County. There appears to be an ample supply of vacant land in the appropriate zones to accommodate growth and expansion in the targeted agricultural and green technology industries. The challenge will be to ensure that these targeted industries are able to access or develop necessary infrastructure at a competitive cost. Because initial infrastructure investments needed to establish new facilities can be a significant barrier for small business investors, Glenn County should consider enhancing infrastructure conditions for targeted vacant sites and/or providing financing assistance. Similarly, in situations where there is potential for new developments to accommodate co-locating businesses in the future, County planning staff should seek to incorporate provisions into the relevant development agreements that will ensure that new infrastructure investments are undertaken in way that will easily accommodate the co-location of additional businesses. By leveraging the large initial investments needed to support the anchor tenants at these sites, the County can potentially decrease the costs of electricity, gas, and sewer infrastructure needed for future businesses at these sites, which can significantly increase the attractiveness and value of those sites.

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Implementation Strategy The culmination of this report is a strategy that recommends programs and actions for Glenn County to implement, to retain, expand, and attract targeted industries to the County. The strategy acknowledges that the County’s resources are already stretched in the current challenging fiscal environment, and therefore proposes a pragmatic approach that prioritizes the goal of ensuring that Glenn County is an attractive place to do business as a means to foster retention and expansion of existing businesses. The programs and actions that are recommended to help achieve this goal, which can largely be implemented with existing staffing and resources, will also have the effect of creating a business-friendly environment, better positioning the County to attract new businesses in the future. The second portion of this strategy identifies a set of long-term programs and actions the County can implement to actively recruit new businesses, as resources become available.

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I n t r o d u c t i o n This report provides background information on Glenn County’s existing economic base, identifies key characteristics of the County’s existing green technologies and agricultural industries, and proposes targeted industries. Then, based site requirements and site availability within the County, report outlines an action that Glenn County can follow to retain, expand, and attract targeted industries to the County. In recognition of limited resources available to conduct such work, the strategy broken down into a priority work program that can largely be accomplished with existing staff and funding, as well as a long-term work program that that County could implement if it is able to dedicate additional resources to economic development. Definition of Agricultural Industries For the purpose of this study, Agricultural Industries are loosely defined as those industries that are directly involved with farming, ranching, and other types of agricultural production, as well as other related businesses that are primarily dependent upon continuing agricultural production to sustain demand for the goods or services they produce. Definition of Green Technologies For the purpose of this study, Green Technology is loosely defined as activities involving energy or resource conservation or products that are designed to promote energy or resource conservation; companies involved in the production of renewable energy, including research and development; and companies involved in materials recycling or manufacturers that use substantial portions of recycled materials or by-products.

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O v e r v i e w o f G l e n n C o u n t y ’ s E c o n o m i c B a s e BAE purchased a database of existing Glenn County business establishments from Dun & Bradstreet in February of 2010. This database contains 1,546 business establishments (including public sector agencies), and estimates that the total number of jobs within the County is 9,415. The figure above shows the distribution of Glenn County employment by 2-digit NAICS code. NAICS stands for North American Industry Classification System, and is system used by government agencies and researchers to categorize businesses according to their activities. As shown in the figure, there is a good distribution of employment across the various sectors of the local economy, with Agriculture, Forestry, Fishing, and Hunting being the single sector with the largest number of employees. However, as will be discussed later, these figures mask the importance of agriculture in the local economy, as they do not show how many establishments in other sectors are linked to agriculture, which serves as Glenn County’s base industry. Table 1 presents the data in tabular form. A notable fact is that if employment in government agencies is pulled out of the various sectors and combined into one category, it would represent about 30 percent of total employment.

Figure 1: Glenn County Employment By Sector (2010)

Ag. Forestry, Fishing, & Hunting

13%

Health Care and Social

Assistance12%

Public Administration

11%

Retail Trade10%

Educational Services

9%

Accommodation and Food Services

8%

Manufacturing7%

Construction6%

All Others24%

Source: Dun & Bradstreet, 2010

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Table 1: Glenn County Employment by Sector, 2010

NAICS Description Jobs11 Ag. Forestry, Fishing, & Hunting 1,24262 Health Care and Social Assistance 1,09292 Public Administration 1,06661 Educational Services 81572 Accommodation and Food Services 72744 Retail Trade 63623 Construction 56942 Wholesale Trade 46532 Manufacturing 45081 Other Services (except Public Admin.) 33045 Retail Trade 32656 Administrative and Support and Waste Management Services and Remediation Services 27648 Transportation and Warehousing 26854 Professional, Scientific, and Technical Services 22253 Real Estate and Rental and Leasing 19452 Finance and Insurance 16731 Manufacturing 16322 Utilities 14633 Manufacturing 6971 Arts, Entertainment, and Recreation 5749 Transportation and Warehousing 5021 Mining, Quarrying, and Oil and Gas Extraction 4851 Information 37

TOTAL 9,415

Sources: Dun and Bradstreet, 2010; BAE, 2010

For the most part, Glenn County’s economic base is made up of small firms. As summarized in the figure below, 78% of the County’s businesses have five or fewer employees (83% of the private establishments employ 5 or fewer). There are less than 50 establishments that employ more than 20 people. In addition, 39% of private sector employees work in firms that employ 5 or fewer people. This information emphasizes the importance of small businesses as an economic generator within the County.

Figure 2: Establishments by Number of Employees

1210

126

55 414 3 1

0

200

400

600

800

1000

1200

1400

1 to 5 6 to 10 11 to 20 21 to 50 50 to 100 101 to 200 201 and above

Number of Employees

Num

ber o

f Est

ablis

hmen

ts

Source: Dun & Bradstreet, 2010 Table 2, on the following page, shows the 25 largest private sector Glenn County business establishments, arranged in descending order by number of employees. This information highlights the prominence of the retail/restaurants, health, and services industries within Glenn County. It is interesting to note that although Agriculture, Forestry, Fishing, & Hunting is the single largest employment sector within Glenn County, none of the 25 largest private sector employers are strictly farming operations, although there are a number of businesses listed in Table 2 which include food processing as well as farming functions. More detail is provided on the farming sector in the following section of the report. Glenn County has certainly felt the effects of the worldwide recession of the last several years; so much so that Dun & Bradstreet estimates that of the more than 1,500 Glenn County establishments, only ten have actually expanded their employment over the last

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three years. Table 3 shows the ten businesses that have increased their number of employees over this time period.

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Table 2: Top 25 Private Sector Establishments, Sorted by Employees at Site

Company Employees City Annual Sales Primary NAICS DescriptionJohns Manville Corp. 340 Willows $69,581,000 Mineral Wool ManufacturingWal-Mart Stores, Inc. 200 Willows $25,997,000 Discount Department StoresKumar Hotels Inc (Holiday Inn) 150 Willows $7,200,000 Hotels (Except Casino Hotels) & MotelsFiesta Mart, Inc. 108 Hamilton City $16,157,880 Supermarkets & Other Grocery (Except Convenience) StoresSunbridge Healthcare Corp 99 Willows $4,022,568 Nursing Care FacilitiesGlenn General Hospital, Inc. 74 Willows $5,700,000 General Medical & Surgical HospitalsL & W Stone Corp. 70 Orland $11,300,000 Brick, Stone & Related Constrn Material Merchant WholesalersSani-Food Market 58 Willows $5,900,000 Supermarkets & Other Grocery (Except Convenience) StoresMusco Olive Products, Inc. 50 Orland $20,858,900 Mayonnaise, Dressing & Other Prepared Sauce ManufacturingLassen Land Co. 50 Orland $4,100,000 Farm Management ServicesRiver Valley Enterprises Inc (Burger King) 47 Willows $1,602,371 Limited-Service RestaurantsRackley Co, Inc. 45 Orland $6,419,177 Commercial & Institutional Building ConstructionBarbara Lemay (Denny's) 43 Willows $1,407,562 Full-Service RestaurantsYRC, Inc. 40 Orland $5,093,080 General Freight Trucking, Long-Distance, TruckloadBarletta Dehydrator 40 Orland $3,400,000 Postharvest Crop Activities (Except Cotton Ginning)Del Norte Clinics Inc (Orland Family Health Center) 35 Orland $5,749,905 HMO Medical CentersRiver Valley Enterprises Inc (Burger King) 35 Orland $1,193,255 Limited-Service RestaurantsCarriere & Sons Partnership 35 Glenn $5,600,000 Grain & Field Bean Merchant WholesalersOlson Meat Co. 35 Orland $12,000,000 Meat & Meat Product Merchant WholesalersBaldwin-Minkler Farms 35 Orland $2,200,000 Tree Nut FarmingJim Aartman, Inc. 35 Orland $4,456,445 General Freight Trucking, Long-Distance, TruckloadAmerihost Inn & Suites 35 Willows $1,500,000 Hotels (Except Casino Hotels) & MotelsNancys Airport Cafe 33 Willows $820,000 Full-Service RestaurantsRaops, Inc. (Reimbursement Associates) 32 Orland $2,800,000 Third Party Administration Of Insurance & Pension FundsR & R Sales, Inc. 32 Orland $11,177,030 Lessors Of Non-Financial Intangible Assets (Except Copyrighted Works)

Sources: Dun and Bradstreet, 2010; BAE, 2010.

Table 3: Glenn County Firms with Growth from 2007 to 2010

Growth Name City Business Line(s)100% TM Duche Nut Co Inc Orland Almond & Walnut Processing100% Benchmark Development Willows Construction (Strawbale/Rammed Earth); Rice Straw Products57% Glenn Growers Princeton Farm Product Warehousing & Storage50% J & S Transportation LLC Willows Trucking40% FMR Services Inc Orland Gas Wells Management40% Carriere & Sons Partnership Glenn Farming and Processing33% Bud's Am PM Mini Market Willows Convenience Store25% Paskenta Band of Nomlaki Indians Orland Tribal Organization18% ITF Supply Willows Farm Supplies3% AA Production Services Inc Princeton Drilling Oil & Gas Wells

Sources: Dun & Bradstreet, 2010; BAE, 2010.

A g r i c u l t u r a l I n d u s t r i e s Agriculture functions as the primary “basic” industry within Glenn County. A base industry is an industry that produces goods that are exported outside of the region, creating income that supports the local population and its ability to create economic support for “non-basic” industries, such as retail, services, and government. Businesses in NAICS code 11 (Agriculture, Forestry, Fishing & Hunting) employ 1,259 people, according to Dun & Bradstreet. Given the importance of agriculture to the Glenn County economy and given that the sector is a focal point of this study, the sector warrants some more detailed discussion. Agricultural Production Trends The data in Table 4 show that in the five-year period from 2003 to 2008, the value of Glenn County’s agricultural production grew by 76 percent. While this may largely be due to changes in agricultural commodity prices during the period, the increase is still significant since the gain exceeds inflation over the time period and therefore represents an increase in the real income that the farming sector generates within the local economy. As discussed above, this real increase in farm income can translate to increased support for other goods and service-producing sectors within the local economy. The value of the County’s two most important agricultural crop types historically, field crops and field and nut crops, both increased at rates greater than the rate of increase for farming as a whole. Although relatively small sectors in terms of production value, apiary products and vegetable crops showed the greatest rates of increase in crop value over time. Organic farming is currently a relatively small component of the Glenn County agricultural sector, representing 7,771 acres of farmed land in 2008. This compares to 388,000 total acres farmed in Glenn County, according to the 2008 Glenn County Agricultural Commissioner’s Annual Crop report. However, as shown in the lower part of Table 4, organic farming acreage has increased 214 percent between 2004 and 2008. About 40 percent of this increase is due to an increase in acres used for organic dairy farming. Table 5 provides a more detailed breakdown of the change in agricultural production between 2003 and 2008. All crops whose value increased at greater than the overall County average for the period are highlighted in yellow.

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Table 4: Agricultural Crop Trends, 2003 to 2008, Gross Receipts

03 to '08Crop Type 2003 2004 2005 2006 2007 2008 ChangeField Crops $141,360,000 $119,701,000 $104,258,000 $131,684,000 $160,048,000 $254,911,000 80%Fruit and Nut Crops $91,611,000 $131,122,000 $195,221,000 $150,278,000 $219,067,000 $178,748,000 95%Livestock and Poultry Products $48,919,000 $56,940,000 $56,621,000 $42,746,000 $72,528,000 $72,402,000 48%Livestock and Poultry $18,436,000 $21,510,000 $21,015,000 $20,969,000 $19,539,000 $18,222,000 -1%Seed Crops $8,623,000 $8,872,000 $9,346,000 $12,071,000 $9,365,000 $14,975,000 74%Apiary Products $4,505,000 $4,369,000 $6,310,000 $5,038,000 $6,431,000 $13,212,000 193%Nursery Products $4,179,000 $5,006,000 $4,582,000 $5,659,000 $5,548,000 $5,097,000 22%Vegetable Crops $297,000 $376,000 $252,000 $433,000 $798,000 $901,000 203%Total of All Types $317,930,000 $347,896,000 $397,605,000 $368,878,000 $493,324,000 $558,468,000 76%

Acres of Organic ProductionAlmonds 316 320 282 271 272Citrus 118 138 150 112 111Corn 0 38 35 35 901Fruit Trees 0 49 16 13 4Fallow 18 0 0 0 0Pasture 0 237 463 493 399Prunes 48 30 30 30 30Olives 3 109 109 102 124Rice 1,905 2,353 2,303 2,530 2,456Safflower 50 0 0 0 0Vegetalbles - Herbs 3 5 5 6 6Miscellaneous 0 0 447 1,125 1,368Dairy/Livestock 0 0 2,100Total of All Categories 2,461 3,279 3,840 4,717 7,771

Sources: Glenn County Agricultural Commissioner Crop Reports, 2003-2008; BAE, 201

Table 5: Crop Value Detail, 2003 and 2008

'03-'08Field Crops 2003 2008 ChangeBeans $483,000 $1,884,000 290%Barley n.a. n.a. n.a.Corn $9,223,000 $10,731,000 16%Cotton, Lint $1,926,000 $2,865,000 49%Cotton, Seed $460,000 $1,203,000 162%Hay, Alfalfa $11,682,000 $20,173,000 73%Hay, Other $713,000 $792,000 11%Hay, Sudangrass $374,000 n.a. n.a.Pasture, Irrigated $1,409,000 $1,049,000 -26%Range $1,610,000 $1,610,000 0%Rice, Paddy $106,669,000 $193,089,000 81%Safflower $47,000 $678,000 1343%Silage, Corn $3,153,000 $5,802,000 84%Wheat $1,670,000 $6,776,000 306%Miscellaneous Ag Products $1,941,000 $8,259,000 (a) 326%

Apiary ProductsBeeswax $11,000 $3,400 -69%Honey $226,000 $126,000 -44%Packaged Bees $795,000 $1,713,000 115%Pollination $2,411,000 $7,641,000 217%Queen Bees $1,062,000 $3,729,000 251%

Seed CropsBeans $1,007,000 $293,000 -71%Clover, All $563,000 $0 -100%Rice $2,487,000 $7,686,000 209%Sunflower $2,303,000 $4,016,000 74%Vine Crops $2,118,000 $1,698,000 -20%Other Seed $145,000 $1,282,000 (b) 784%

Livestock and PoultryCattle and Calves $17,639,000 $17,395,000 -1%Sheep and Lambs $681,000 $662,000 -3%Hogs and Pigs $116,000 $165,000 42%Poultry n.a. n.a. n.a.

Livestock and Poultry ProductsMilk, Market $44,267,000 $69,314,000 57%Milk, Manufacturing $4,272,000 $2,630,000 -38%Wool $60,000 $70,600 18%Miscellaneous $320,000 $387,000 21%

Nursery ProductsAll $4,179,000 $5,097,000 22%

Fruit and Nut CropsAlmonds $53,060,000 $87,931,000 66%Almond Hulls $1,822,000 $2,776,000 52%Citrus $1,104,000 $1,482,000 34%Grapes $3,497,000 $6,026,000 72%Olives $5,021,000 $11,108,000 121%Pistachios $1,042,000 $11,668,000 1020%Prunes $10,313,000 $26,428,000 156%Walnuts $15,182,000 $29,203,000 92%Miscellaneous $570,000 $2,126,000 273%

Vegetable CropsAll $297,000 $901,000 203%

TOTAL $317,930,000 $558,468,000 76%

Notes:(a) Includes sorghum, organic rice, and straw from barley, oats, rice, and wheat.(b) Includes barley, carrots, cauliflower, corn, oats, onions, and wheat.

Sources: Glenn County Agricultural Commissioner, 2003-2008; BAE, 2010.

The figure below illustrates that, as of 2008, field crops were responsible for nearly half of Glenn County’s agricultural production value. Fruit and nut crops accounted for more than one fourth of the value. The shares for both crop types were up slightly from 2003.

Figure 3: Glenn County Crops by Value, 2008

Field Crops, $254,911,000

Fruit and Nut Crops, $178,748,000

Livestock and Poultry Products, $72,402,000

Livestock and Poultry, $18,222,000

Seed Crops, $14,975,000

Apiary Products, $13,212,000

Nursery Products, $5,097,000

Vegetable Crops, $901,000

Source: Glenn County Agricultural Commissioner, 2008 Other “Agricultural Industries” While the preceding section focused strictly on direct agricultural production, this section aims to provide a sense of the “indirect” or multiplier effects of the agriculture industry, through its linkages to other industries within the county. In addition to the primary agriculture businesses in NAICS code 11, a quick review of businesses located in other Glenn County sectors reveals many businesses that likely fit within the definition above. These include: NAICS Code 22 (Utilities) – Nine water districts or other entities that supply water; much of which is likely to be used for crop irrigation. NAICS Code 31-32 (Non-Durable Goods Manufacturing) – Eighteen businesses involved with value-added food processing or other manufacturing using agricultural products.

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NAICS Code 33 (Durable Goods Manufacturing) – Nine businesses involved with machining or equipment manufacturing, much of which could be used in agricultural production or post-harvest activities such as drying, hulling, sorting, packing, etc. NAICS Code 42 (Wholesale Trade) – Thirty-three businesses involved in wholesale distribution of equipment or products produced by, or used by the agricultural sector. NAICS Code 44-45 (Retail Trade) – Fourteen retail businesses involved in selling products targeted to the agriculture industry (e.g., farm equipment dealers, farm and ranch supplies) or retailers who primarily sell farm products (e.g., dairy, nut sales). NAICS Code 48 (Transportation and Warehousing) – Fifty-three trucking or warehousing establishments that may derive a large portion of their business from providing ag-related transport services. NAICS Code 54 (Professional, Scientific, and Technical Services) – Three businesses involved in R&D in physical, engineering, and life sciences, which are likely agriculture-related. In total, these businesses employ 859 people, in addition to the 1,259 employees in the various agriculture sector businesses. In addition to the indirect employment that the ag sector supports in the industry categories listed above, there are no doubt additional jobs supported in various sectors through “induced” impacts, which are the jobs created when people employed directly in agriculture or indirectly in supporting industries spend a portion of their household income within the local economy on any number of goods and services.

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G r e e n T e c h n o l o g i e s i n G l e n n C o u n t y Glenn County has a handful of existing businesses that are directly involved in “green technologies,” and a couple of ambitious start-up companies that would involve the use of green technologies on fairly large scales. Aside from these companies, which are profiled briefly below, the primary presence of green technologies within the Glenn County is through the incorporation of green technologies into traditional commercial activities. This mainly includes water and energy conservation practices, but also includes sustainable solutions for disposal of agricultural and food processing by-products. Existing Green Technology Businesses Compost Solutions Compost Solutions is located near Orland, and manufactures compost from agricultural by-products including nut shells, hulls, and rice straw. The company makes products used as soil amendments for both conventional and organic agriculture. Compost Solutions has developed its own equipment that is necessary for turning industrial-scale compost piles to ensure proper mixing during the decomposition process. According to Dun & Bradstreet, this company has three employees. Valley Gold Compost Valley Gold Compost is located in the Orland area and produces compost primarily from livestock manure. According to Dun & Bradstreet, the company employs two people. Representatives of this business were not available to be interviewed as part of this study. Benchmark Development Benchmark Development is a company which has developed a number of uses for rice straw, including using straw bales in building construction, and making a number of products for various applications from rice straw. In addition to a general contracting business which specializes in construction using straw bale and rammed earth technologies, Benchmark development also bales straw to sell to other builders, and manufactures rice straw “waddles” which are used as erosion control barriers on construction projects, and a mulch product that is used for forest fire re-vegetation projects, among others. Benchmark is located in the Willows area, and employs 20 people, according to Dun & Bradstreet. Waste Tire Products Waste Tire Products is a recycling company located in Orland that deals with waste tires as well as “e-waste” and plastics. On the recycling side, the company collects and processes materials that would be hazardous for disposal in regular landfills, and salvages useful materials for sale as bulk commodities. In addition to recycling, the company

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manufactures a number of products from recycled material, including rubber mats, landscaping “bark” and silage cover weights that are made from recycled tires. Waste Tire employs ten people, according to Dun & Bradstreet. Johns Manville Corporation Johns Manville Corporation is one of Glenn County’s largest employers, with local employment of 340 at its Willows area plant, according to Dun and Bradstreet. Johns Manville manufactures fiberglass insulation for the building industry. With increasing emphasis on energy efficiency in buildings, this company can certainly be considered a green technology company; although its product is more traditional. As the largest private employer in Glenn County, the significance of this company increases. Glenn County Green Technology Start-Up Companies Two Glenn County start-up companies in the Green Technologies category include KV Baker, Inc., and CalAg, LLC. KVB, Inc. KVB plans to establish a Solid Waste Conversion Facility (SWCF) incorporating a Materials Recovery Facility (MRF) on a 478-acre site near Hamilton City, CA. Approximately 140 acres would be used for the SWCF; the remainder used for conservation. The primary objective of the project is to process all of the Municipal Solid Waste (MSW) collected within Glenn County for recycling and/or conversion to renewable energy. Additional waste produced by the County's ag industry or waste produced in other areas could also be collected and processed at the facility. After sorting and reclaiming recyclable materials, the SWCF would utilize an anaerobic digester and possibly other thermal conversion technologies to convert waste to biogas and electricity. The gas could be fed into PG&E’s natural gas system, used to power a centralized on-site power generation facility, or piped to other industrial facilities co-located on or near the site. KVB estimates that a first phase project could divert 60 to 80 percent of the County’s MSW from the landfill. Later this month, Glenn County and KVB expect to sign a Memorandum of Understanding (MOU) stipulating how the two will proceed to develop the project. With a substantial amount of land, this project has the potential for co-location of other businesses that might benefit from proximity to the SWCF. Companies that manufacture products using materials recovered at the MRF might find it beneficial to locate on site. In addition, businesses might be attracted to locate on-site if there was an option to obtain affordable, renewable electricity or gas from the project’s energy generation component. In addition to the substantial number of construction jobs the project will create, the SWCF is expected to provide full-time employment for approximately 20-40 people directly.

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Employment at the site would substantially increase if other related business activities were established as a result of the initial facility development. CalAg LLC CalAg LLC plans to construct a manufacturing facility for medium density fiberboard (MDF) from rice straw, for use in the construction industry, on a 273-acre site near Willows. The initial project is designed to produce 125 million square feet of MDF per year, serving a market estimated by CalAg at about 1 billion square feet per year in the western U.S. region. CalAg plans to offer a product that will represent a suitable substitute for wood pulp-based MDF that traditionally uses formaldehyde in the binding agent, which is necessary due to action of the California Air Resources Board (CARB) that limits formaldehyde emissions from MDF and other products. CalAg believes that this will create a major market opportunity from them to provide a substitute for traditionally manufactured MDF. CalAg estimates that their production would address approximately 25 percent of the California demand for MDF. In addition to addressing this new regulatory barrier, CalAg feels that their business model has an advantage over traditional MDF producers, because using waste rice straw as the main input for the product will be less costly than the wood pulp used by traditional producers. The CalAg plant will produce MDF in bulk sheet form. Like the KV Baker site, the CalAg site has room to accommodate additional development beyond its own immediate plans. One possible opportunity will be for co-location of manufacturers who use MDF in their products, such as molding manufacturers, or furniture makers. CalAg projects that it will employ about 80 full-time employees in the MDF plant itself, with the potential for additional employment if other related businesses chose to co-locate on CalAg’s property in order to be near a source of bulk MDF and/or if the company is successful in building out additional phases of the project that would expand production capacity and/or incorporate renewable energy components. Green Technologies Within Traditional Industries Discussions with representatives of a range of Glenn County businesses has revealed that many local companies involved in traditional industries are embracing green technologies as a sound business practice. This includes:

• Grinding nut hulls and shells and incorporating them into orchards as a soil amendment

• Using food processing waste (pomace) as an animal feed • Using cheese-making by products as an animal feed • Utilizing highly automated irrigation systems to reduce water use and optimize

crop production • Using remote sensing and telemetry to efficiently manage irrigation district

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operations and reduce water waste through “spillage” • Incorporating on-site energy generation through solar and wind • Utilizing high efficiency pumps and other equipment

Companies interviewed as part of this study, having incorporated green technologies, indicate that it is done partly because of favorable attitudes of consumers towards companies that are environmentally responsible, but ultimately because it makes business sense. The County should seek to encourage and facilitate the adoption of green technologies in local businesses. Through increased efficiency, local businesses can become more competitive in the global marketplace.

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P r e l i m i n a r y T a r g e t e d I n d u s t r i e s In addition to analyzing the Glenn County industry statistics from the Dun & Bradstreet database, BAE collaborated with Glenn County and 3CORE, Inc. to host a stakeholder’s meeting in Glenn County to discuss economic development opportunities in Green Technology and Agricultural Industries. This meeting attracted over 30 individuals, representing city and county government, the Willows Chamber of Commerce, and numerous Glenn County businesses. In this meeting, BAE presented background information on the Glenn County economy, and then facilitated a discussion of Glenn County green technology and ag trends, economic development opportunities and barriers, assets, and potential targeted industries. Potential targeted industries identified in the meeting included:

a. Alternative energy producers b. Companies relocating from high cost areas in Southern California c. Existing businesses, so that they become ambassadors for new business attraction d. Supplier businesses that do business with local companies e. Olive production on west side of County

Summary notes from the stakeholder meeting are included as Appendix A. In addition to information collected at the stakeholder meeting, BAE conducted interviews with numerous businesses located in Glenn County regarding their own operations and plans as well as their outlook on economic development opportunities within the County in the coming years. A list of businesses that BAE interviewed is included as Appendix B. Based on the information collected to date, following are preliminary targeted industries for Glenn County in the Agriculture and Green Technologies arenas: Agricultural Industries Because of Glenn County’s abundance of land with high quality soils, favorable climate, and availability of water for irrigation, Glenn County is, and should remain an agricultural county. The actual pattern of crop cultivation in Glenn County can be expected to vary over time as commodity prices and other factors cause farmers to shift the crops that they grow. Farmers themselves are well-versed in understanding the economics of growing different crops and which crops they are best positioned to grow; therefore, the County should probably not attempt to dictate or directly influence what is grown within the County. The County’s agricultural base can be seen as an asset that the County should leverage into additional economic activities.

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Crop Production Rice, nut and fruit crops, and dairy production appear to be three crop types that are particularly well-suited to Glenn County, due to its environmental conditions. Glenn County has historically been a very strong rice producer due to a unique combination of climate, soil, and irrigation water availability. Although dairy production is not nearly as prominent in Glenn County as rice and nut and fruit crops, more severe air quality restrictions on San Joaquin County dairy producers gives Glenn County a competitive advantage moving forward. Production of nut crops has been one of Glenn County’s most rapidly growing sectors over the last five years or so. In addition, olive growing for oil production is rapidly growing, due largely to the heavy investment that California Olive Ranch is making in orchard development and oil processing capacity within the County. Game changers: Glenn County, due to its proximity to the Bay Area, and even southern California markets is well positioned to capitalize on the movement towards locally produced foods. This creates the opportunity to build a brand image around foods grown in Glenn County, which can add value to products. In the domestic rice market, the preference of Asian immigrants is creating an opportunity for the creation of a strain of jasmine rice that can be grown in northern California. Health consciousness is also creating opportunities for other rice varieties that are considered healthier choices than traditional white rice. Increasing recognition of the health benefits of olive oil in place of other types of oils or fats in the diet is creating increased demand for olive oil, at the same time that subsidies for European olive oils will be ending. The USDA will further assist high quality domestic producers by enforcing labeling standards for olive oil, so that inferior quality oils posing as “extra virgin” can no longer undercut producers of legitimate extra virgin olive oil. New “super high density” olive growing and harvesting techniques along with highly water efficient irrigation systems are making domestic olive production very cost effective compared to traditional methods that dominate in the countries that have historically dominated olive oil production. Imported olive oil currently represents 99 percent of the U.S. market, according to data from California Olive Ranch. Changes in water supply, due to shifting water policies, climate change, or other factors beyond local control can have a major effect on agriculture in Glenn County. Ultimately, the cost and availability of water will be a driving factor in what crops are grown in Glenn County. The need to prepare for adaptation will be most acute in parts of the County where water supply is marginal at present. In some cases, consideration may need to be given to the use of agricultural land for alternative “crops” such as solar farms.

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Competitive advantages: Glenn County’s unique combination of climate, soils, and irrigation water supply are the County’s main competitive advantages for agriculture. Proximity to California’s large food market is also an advantage, but it is not necessarily unique among the State’s major agricultural counties. Glenn County has established a confined animal facility (CAF) element in its General Plan, which provides a clear set of standards for large dairy operations, reducing uncertainty for dairy operators who may be interested in relocating to the county. Finally, although the San Joaquin Valley is also well suited in many ways for olive production, the area is much more severely impacted by verticillium dahliae (a fungus that causes disease in olive trees) than Glenn County, and Glenn County has pro-actively established limits on cotton farming, which can harbor verticillium dahliae. With the construction of California Olive Ranch’s (COR) large olive mill in Artois, and the fact that olives are best pressed within a relatively short period of time from when they are harvested, this will favor Glenn County for a location for growing olives that will supply the plant. In addition to the olive mill, COR has indicated that it plans to develop an olive oil bottling and packaging plant in the near future. This plant would bottle and package the olive oil that is produced at the mill. Although COR representatives have indicated that the bulk oil could relatively easily be trucked to another locale for bottling, the County should attempt to leverage the presence of the mill and aggressively seek to position itself as a site for the bottling plant. Specialty Equipment Manufacturing Glenn County’s leading crops are typically conducted on a large scale and heavily automated. This creates the need for specialized farm equipment that is used in soil preparation, cultivating, harvesting, and processing and packaging. Design and manufacture of specialty equipment used in local ag production is one way that Glenn County is able to leverage its large economic base to create additional jobs and economic activity. To the extent that Glenn County is a leading producer of a given crop, it should be attractive for manufacturers of equipment targeted to that crop to locate in the County, where they can test their designs and get feedback from growers. In addition to jobs and investment in manufacturing facilities, to the extent that specialty manufacturers also market their products directly to end users, these companies can also help to increase the amount of business-to-business sales tax revenues that the County captures. Game changers: Changes in crops due to factors discussed above will create opportunities for new manufacturers, or for existing manufacturers to adapt their products to new crops. Innovations in growing techniques, such as super high density olive orchards, create the need for new, specialized equipment. Competitive factors: In addition to being a leading producer of crops such as rice and olives, Glenn County is already home to a number of specialty equipment manufacturers. These manufacturers already have relationships with local growers who may shift to new

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crops and/or adopt new growing techniques that require new equipment. Being located within a large agricultural region that produces an extremely diverse range of crops also creates the opportunity for manufacturers to diversify and serve a large market beyond the immediate county. Agricultural Supplies and Services The agricultural sector represents a ready market for agricultural supplies and services. To the extent that Glenn County is a leading producer of a given commodity, specialty vendors supporting that crop may be attracted to locate in Glenn County. This creates the opportunity to increase local sales tax revenues, as well as jobs and investments in service and supply businesses. For example, in 2008 Glenn County was the number four California county in rice production, just trailing Sutter County. The other top two rice producing counties are neighboring Butte and Colusa Counties, meaning that Glenn County would be a strategic location for companies that serve the rice industry. Glenn County is also emerging as a leader in domestic olive production. Glenn County should work to foster creation of business clusters around crops for which Glenn County has distinct competitive advantages. Game changers: New crops and new cultivation techniques will require new products and services for production support. With a large agriculture sector in Glenn County and immediately surrounding counties, Glenn County should be an attractive location for vendors of supplies and services to the ag sector. Local advantages: Glenn County lies at the heart of a large agricultural region and, as a result, Glenn County may represent a strategic location for vendors marketing to the North Valley agricultural industry. Value Added Food Processing Glenn County’s agricultural sector produces a wealth of raw ingredients that can be used in the food processing industry. Increasing the amount of food processing that occurs locally versus shipping bulk commodities out of the County for processing elsewhere is an opportunity to capture more jobs and economic activity in Glenn County, and increase the County’s tax base through the investment in processing plants and equipment. The presence of a strong food processing “infrastructure” within Glenn County also benefits farmers by creating a more secure market for their crops, and by reducing their costs to ship their harvests to distant processing plants. Game changers: The organic/locally grown food movement creates demand for products produced relatively near major urban centers, including the SF Bay Area, Sacramento, and Southern California. Over time, a number of stakeholders expressed optimism that a “brand” image for Glenn County products could eventually attract tourists.

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Phase-out of subsidies for European olive oils will make California producers more competitive. USDA standards for Extra Virgin olive oil, which took effect in October 2010, will level the playing field for high quality producers. There is growing recognition of health benefits of olive oil, which combined with the relatively low per capita domestic consumption of olive oil creates the potential for a rapidly expanding domestic market. The U.S. consumes 50 million gallons of olive oil per year, estimated at $1 billion in value; but produces only 300,000 gallons, according to U.C. Cooperative Extension.1 California Olive Ranch projects rapid growth in olive oil production in the U.S., focused on northern California. SB700 (2004) regulations for large confined animal facilities imposed additional restrictions on dairy facilities in federal non-attainment air quality districts. Meanwhile, Glenn County is an attainment area for federal air quality standards, meaning that fewer restrictions are placed on large dairy operations. This, combined with the County’s implementation of a uniform set of policies for large confined animal facilities, has helped to facilitate the relocation of several large dairy operations to Glenn County. Local competitive factors: Glenn County’s main competitive attribute for value added food processing is production of a wide range of agricultural commodities that can be used in food processing. Also, proximity is a key attribute for producers wishing to target the demand for locally produced food in California’s large urban markets. Agricultural Tourism Over the long-term, key stakeholders feel that Glenn County has the potential to leverage its agricultural landscape to attract agricultural tourism. This could include farm tours, farm stays/B&Bs, farm stand sales/tasting rooms, restaurants serving locally produced foods, and festivals celebrating the County’s signature products. To the extent that agri-tourism brings people to the County who would then represent a market for direct marketing of locally-produced foods, this represents an opportunity to capture the wholesalers’ and retailers’ markups for Glenn County crops within the local economy. In addition to its direct economic benefits, promotion of agri-tourism within the County can help to raise awareness of the Glenn County agricultural “brand,” which can assist in marketing of locally-produced food products in external markets where Glenn County agri-tourism is also promoted. Game changers: The interest in locally-produced foods and understanding how food is grown is creating new opportunities for agricultural counties to market to “agri-tourists.” With the growth in olive production in addition to the existing agricultural landscape, there

1 University of California. http://ucanr.org/delivers/impactview.cfm?impactnum=295. Accessed 5/28/10.

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is an emerging image of Glenn County as “the next Napa” or “the Tuscany of the U.S.” that can be promoted. Local competitive factors: Outdoor recreation and Thunderhill race track already attract visitors from outside of the area to Glenn County. Cross promotion to these visitors could serve as an initial marketing opportunity. Proximity to the Bay Area and Sacramento creates an opportunity to market to people from nearby urban areas for day trips and weekend overnighters. Glenn County may benefit from the perception of the area as being less crowded, with fewer traffic problems than Napa County and Lake Tahoe for weekend and holiday travelers. Green Technologies According to a recent publication sponsored by the green economy think tank, Next 10.org:

• Green businesses are planning to expand faster than traditional firms are; • Green practices are not limited to green businesses, but span the entire economy; • Green firms are innovating new green products and services, while traditional firms

are innovating new green processes; • Green businesses are much more committed to staying in California than traditional

businesses are; • Green businesses differ from traditional ones in their greater reliance on local and

regional markets and business networks; • Green businesses view public policy and regulation much more favorably than do

other businesses, and see local government actions as particularly important.2 These findings suggest that the benefits from retaining, expanding, or recruiting these types of businesses may be greater than for traditional businesses, and these businesses may be more receptive to working cooperatively with local government as well as more loyal to remaining in their communities once established. These characteristics mean that “green businesses” can be particularly good candidates to target for local economic development efforts, whether these are existing firms that are implementing green practices, or businesses whose primary produce is green technology. Furthermore, although growth of the green economy may be associated with the urban Bay Area and Southern California metro areas where there are concentrations of venture capital firms and other “infrastructure” to nurture start-up companies, data from a recent U.C. Berkeley study indicate that growth in the number of “green” jobs was 3.8 percent annually in the Sacramento region, versus 1.6 percent statewide, between 1990 and 2008. In the upper

2 Green, Local, and Growing: Findings from a Survey of Green Businesses in California, U.C. Berkeley,

Center for Community Innovation, January, 2010.

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San Joaquin Valley, the growth rate was 3.2 percent.3 These data indicate that California’s Central Valley has been supporting development of green economy jobs at more than twice the rate of the state as a whole. Following are several sub-sectors of green industry that appear to be particularly well-suited to Glenn County, and which could be targeted for local business retention, expansion, and recruitment efforts. Materials Recycling, Including Ag By-Products Based on the presence of the County’s large agricultural sector, an established cluster of materials recycling businesses, and the presence of an established Recycling Market Development Zone (RMDZ) covering much of the County, Glenn County should seek to foster and support additional businesses that incorporate materials recycling into their production processes. In addition to their direct job creation and economic activity, to the extent that such companies create a market for by-products or waste that local companies produce on an ongoing basis, this can help those businesses with a solution to their waste disposal problems and help to create a more sustainable Glenn County economy, through reduced landfill disposal. Game changers: AB 32 limits burning of ag waste, creating a need to identify other means of disposal of by-products from annual production. CARB ruling that bans MDF produced using formaldehyde-based resin that is typical of MDF produced using wood pulp is creating an opportunity that CalAg is attempting to exploit. Interest in green building materials and techniques can create demand for products produced by CalAg and by Benchmark Development. Local competitive factors: Local ag production creates a ready supply of organic matter that can be processed and turned into soil amendments. This has an economic “double bottom line,” in that it helps ag producers solve a problem regarding disposal of ag by-products, and also creates a local source of amendments that does not need to be shipped in from outside the County. Soil amendments are not a high-value product, so products become un-economical as distance from the producer increases, meaning the local market is somewhat insulated from outside competition. The Glenn County RMDZ may create eligibility for certain manufacturers using recycled material to obtain financing assistance on favorable terms. Alternative Energy Projects Alternative energy projects of many different types represent an economic opportunity for Glenn County, due to the County’s solar and wind resources, but more uniquely, due to the

3 Innovating the Green Economy in California Regions, U.C. Berkeley, Center for Community Innovation,

2009.

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potential for renewable energy generated from the biomass in the by-products or waste from the County’s large annual agricultural production. According to the California Energy Commission, as of 2007, biomass-produced energy represented approximately 1,000 megawatts of capacity, or about 2.1 percent of the State’s total system power.4 Individual businesses in Glenn County can take advantage of state and federal incentives to develop on-site energy generation systems such as photovoltaic systems or wind turbines. Such projects, through reducing long-term energy costs, can help make local businesses more cost efficient and competitive. Larger scale alternative energy projects can represent new businesses unto themselves, creating significant new investment and generating new job opportunities. To the extent that alternative energy projects use locally produced biomass as a renewable fuel source, this can help to create a market for local ag by-products, and help to improve the bottom line for ag producers. With a critical mass of alternative energy infrastructure within the County, Glenn County may also be able to support some level of employment in service and supplier businesses that work with the alternative energy sector, such as companies that provide maintenance services. Game changers: In 2008, California Executive Order #S-14-08 raised California's renewable energy goals to 33 percent by 2020. This creates demand for energy produced from renewable sources, such as the KV Baker project. The increase in fossil fuel costs helps to make alternative energy projects more competitive. State and federal incentives for alternative energy also help make these projects more feasible. Local competitive factors: Local ag production creates a ready supply of feedstock for production of fuels derived from organic matter. The presence of a natural gas pipeline near Hamilton City provides a convenient means for the KV Baker project to deliver natural gas to PG&E’s system. Water Conservation and Efficiency Because water is the lifeblood of the agricultural industry, and because supplies of water are less secure due to increased demand and possibility of drought, projects that conserve water will ultimately be a benefit to the Glenn County agricultural industry. Given the scale of agricultural production in Glenn County, there is potential for the industry to support some employment in businesses that sell and/or maintain water efficient irrigation equipment and systems. Game changers: increased water demand and decreased availability statewide will help to encourage increased water efficiency.

4 http://energyalmanac.ca.gov/renewables/biomass/index.html, California Energy Commission. Accessed

5/31/2010.

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Local competitive factors: Glenn County has a good supply of water, but can make more efficient use of it to maximize its benefits. The ag sector provides large existing base of users that creates demand for products and services.

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S i t e A v a i l a b i l i t y a n d S i t e R e q u i r e m e n t s There are numerous vacant sites throughout Glenn County that could accommodate the identified agricultural and green industries under the current zoning code. However, most vacant sites lack basic infrastructure such as water and sewer services, which continues to be a major barrier to Glenn County’s ability to attract new industry and diversify the economic base. Because initial infrastructure investments needed to establish new facilities can become a significant barrier to prospective businesses, the County may increase the potential for success of future business recruitment efforts by working to enhance infrastructure conditions for a select number of opportunity sites, either directly or via financing assistance. Site Availability There are currently 127 acres of vacant land zoned for industrial and/or commercial uses and 1,030 acres of vacant land zoned for agricultural uses in Glenn County, which in certain circumstances can support food processing facilities and supplier companies directly linked to the agricultural use of the property. More specifically, there are 15.15 vacant acres located in the Industrial Park (MP) zone, 33.21 acres in the Industrial (M) zone, and 78.67 acres in the Service Commercial (SC) zone. There is likely additional acreage available for development on underutilized industrial sites throughout the County. Because Glenn County’s zoning code does not allow any of the eight target industries to operate in Local Commercial Districts (LC), Highway and Visitor Commercial (HVC), or Community Commercial Districts (CC), these zones are not included in the analysis. Orland Airport The City of Orland and the County of Glenn have formed a partnership and are developing industrial property at the Orland Airport. This property is owned by the County, and currently there are 88.35 vacant acres zoned for Industrial Park use. In the past, the development of this land has been constrained by the lack of infrastructure. There are now curbs, gutters, street lights, sanitary sewer facilities, a water system, and storm drains for industrial uses. Infrastructure for most parcels has been developed, including access to sewer, water, power, and communication facilities. Parcels at the Orland Airport Industrial Park are not for sale, but rather for lease at $.01 per square foot of land per month, for up to 25 years with an automated renewal for another 25 years. The competitive position of the Orland Airport Industrial Area has improved with the streamlined permitting process, which requires a site plan review for most uses and the ability to do a sales tax rebate if new business tenants generate sales tax. With these conditions, future tenants should be easier to recruit.

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Greater Orland South of the City of Orland, along the Road 27 exit off of I-5, there are 31.31 acres of non-contiguous, vacant parcels zoned for service commercial use, and 26.26 acres of non-contiguous, vacant parcels zoned for industrial use. Waste Tire Products is located within a two-mile radius of these parcels, which might be attractive for green technology businesses or other facilities that use salvaged materials as inputs. Artois Industrial Strip Artois is a small community located just off I-5 on County Road 99, midway between Orland and Willows. Artois has a strip with 0.9 acres of industrially designated property with rail and highway frontage. There are no sewer and water services available and potential users would have to put in their own infrastructure systems. Butte City Industrial Strip Butte City is a small community located in the southeastern portion of Glenn County along Highway 162 which extends east toward the Cities of Biggs and Oroville. There are 2.4 non-contiguous acres of industrially designated land along the Sacramento River with old warehouses and no water or sewer services. KV Baker and CalAg Sites In addition to the vacant sites outlined above, there are two sites with significant room to accommodate co-locating businesses: the 478-acre KVB site near Hamilton City and the 273-acre CalAg site near Willows. These sites will likely be particularly attractive to manufacturers who use the finished products or the by-products resulting from KVB or CalAg’s industrial processes. For example, one possible opportunity for the CalAg site will be for the co-location of manufacturers who use medium density fiberboard in their products, such as moulding manufacturers or furniture makers. The KVB site might be attractive to companies that manufacture products using materials recovered at the Materials Recovery Facility, or any business able to obtain affordable, renewable electricity or gas from the project’s energy generation component. KVB will use an anaerobic digester to convert waste to biogas and electricity. The gas could be fed into PG&E’s natural gas system, used to power a centralized on-site power generation facility, or piped to other industrial facilities co-located on or near the site. Site Requirements for Targeted Industries There appears to be an ample supply of vacant land in the appropriate zones to accommodate growth and expansion in the targeted agricultural and green technology industries. The challenge will be to ensure that these targeted industries are able to access or develop necessary infrastructure at a competitive cost. Manufacturing and processing firms will require three-phase electricity, communication facilities, natural gas, sewer facilities, a water system, and storm drains equipped for industrial uses. Food processing

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facilities tend to have heavy water and sewer demands, and facilities that use ag by-products as inputs require large open areas for materials storage and processing. Though agricultural supplies and services businesses will likely not utilize utility systems as heavily as their manufacturing counterparts, they will nonetheless require access to standard commercial infrastructure. Business belonging to three of the target industries - specialty equipment manufacturing, agricultural supplies and services, and value-added food processing - will able to locate in the M and MP zones, and as such may choose from 48.36 vacant acres throughout the County.5 Agricultural Supplies and Services firms may also locate in the SC zone, which makes an additional 78.67 acres available for such firms. In addition, the firms in the aforementioned target industries may under certain conditions choose to locate in vacant parcels zoned for agricultural uses. The Agricultural Preserve (AP) and Farmland Security (FS) zones permit for food processing facilities with no restrictions on building size.6 With a conditional use permit, the Exclusive Agricultural (AE) zone permits food processing facilities that exceed 10,000 square feet, firms that provide supplies and services to farmers, and manufacturing establishments that produce agricultural products and equipment. The AE zone does not require a conditional use permit for agricultural processing facilities that are smaller than 10,000 square feet and that do not involve animal products. Given that there are currently 891 vacant acres in the AE zone, it would seem that there is an ample supply of vacant land available for the targeted industries related to agriculture. Businesses in the materials recycling industry, the alternative energy generation industry, and the water conservation manufacturing industry are all able to locate in the M and MP zones, and as such may choose from 48.36 vacant acres throughout the County.7 In particular, the zoning code singles out recycling centers and energy production facilities as desirable uses in the MP zone, provided that such activities take place within a completely enclosed building. The sale of water conservation equipment may locate in the SC zone, and as such may choose from an additional 78.67 vacant acres. Further, with a conditional use permit, fertilizer processing, alternative energy generation, and irrigation equipment manufacturing and sales to farmers may locate in the AE zone.

5 If County Planning staff deem a proposed facility to be obnoxious or offensive because of noise, dust, odor,

smoke, vibration, the business may be required to obtain a Conditional Use Permit before locating in the MP zone. 6 The AP zone requires a conditional use permit for operations that create smoke, fumes, dust, odor, or other

hazards. 7 Industries that are deemed obnoxious or offensive because of noise, dust, odor, smoke, vibration may be

required to obtain a Conditional Use Permit before locating in the MP zone.

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Adequacy of Existing Sites Although there appears to be an ample supply of vacant land zoned within appropriate zones, much of this land has little or no infrastructure in place. The Orland Airport Industrial Park is the exception in this regard, and would be a prime target for business recruitment efforts. The KVB and CalAg sites are also opportunity sites, assuming that infrastructure developed to serve the anchor uses will also be able to accommodate future co-locating businesses with relative ease. However, other vacant parcels located outside of city limits often have no access to any infrastructure; several vacant parcels zoned for agricultural use do not have immediate access to county roads. Because initial infrastructure investments needed to establish new facilities can be a significant barrier for small business investors, Glenn County should consider enhancing infrastructure conditions for targeted vacant sites and/or providing financing assistance. Similarly, in situations where there is potential for new developments to accommodate co-locating businesses in the future, County planning staff should seek to incorporate provisions into the relevant development agreements that will ensure that new infrastructure investments are undertaken in way that will easily accommodate the co-location of additional businesses. By leveraging the large initial investments needed to support the anchor tenants at these sites, the County can potentially decrease the costs of electricity, gas, and sewer infrastructure needed for future businesses at these sites, which can significantly increase the attractiveness and value of those sites.

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I m p l e m e n t a t i o n S t r a t e g y Following is a strategy that recommends programs and actions for Glenn County to implement, to retain, expand, and attract targeted industries to the County. The strategy is based on the findings of the current study, as well as opportunities identified through the County’s 1998 Glenn County Agricultural Industry Business Action Plan and 3CORE, Inc.’s 2010-2015 Comprehensive Economic Development Strategy. The strategy acknowledges that the County’s resources are already stretched in the current challenging fiscal environment, and therefore proposes a pragmatic approach that prioritizes the goal of ensuring that Glenn County is an attractive place to do business as a means to foster retention and expansion of existing businesses. The programs and actions that are recommended to help achieve this goal, which can largely be implemented with existing staffing and resources, will also have the effect of creating a business-friendly environment, better positioning the County to attract new businesses in the future. The second portion of this strategy identifies a set of long-term programs and actions the County can implement to actively recruit new businesses, as resources become available. Priority Programs and Actions This section outlines the programs and actions which are oriented towards the retention and expansion of existing businesses. The narrative outlines the rationale and the relationships between activities. The Priority Work Program Summary and Implementation Matrix included in Figure 4 on page 33 identifies prioritization of actions, estimated costs and staffing needs, potential implementation partners, and funding sources. The Strategy assumes that the Glenn County Public Works and Planning Agency will take the lead in coordinating strategy implementation. Projects shown with an implementation time frame of short-term are considered high priority, either because of need or because they offer the potential to show visible progress towards implementing the strategy and can likely be accomplished primarily with existing resources. Projects shown as medium-term in the Implementation Matrix are still considered important; however, they will require more extended periods of time to bring to completion due to complexity, need for increased public investment, or other factors. Appendix C contains additional information about potential partners with which Glenn County could seek to collaborate in implementing the strategy, as well as potential sources of funding to help finance various supplemental projects and activities. Goal 1: Ensure that Glenn County is an attractive place to do business It is important to solidify the assets that render Glenn County attractive for businesses, as these are key factors in determining the competitiveness and growth potential of existing businesses. Efforts to facilitate the success of existing operations will yield a business-

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friendly climate and success stories. Building a positive track record will better equip the County to conduct outreach to potential business investors over the long-term. Program 1A: Protect and build on existing County assets to ensure ongoing competitiveness and viability Glenn County’s long-term economic sustainability will require it to maintain and build upon its established economic base. This includes agriculture and the industries that support it. Following are specific recommended actions:

i. Retain land use patterns, goals, and policies that have been established to promote agricultural production. Agriculture is the single most important component of Glenn County’s economic base; the protection of agricultural land is therefore critical. Glenn County offers a location on Interstate 5, less expensive land, less urbanization pressures, less restrictive air quality criteria, and a right-to-farm ordinance that protects farming operations from effects of urban encroachment. As a result of these competitive strengths, Glenn County will continue to be an attractive location for a variety of farming operations, and agriculture should remain as Glenn County’s lead industry.

ii. Preserve and protect reliable water supplies in order to ensure that agriculture

remains a robust lead industry in Glenn County. Because the main source of water for local use is groundwater, maintenance of groundwater quality is of primary importance for agricultural, domestic, and recreational uses.

iii. Promote conservation and efficiency in water use. Water is a necessary input to

many industries, including agriculture, food processing, and other types of manufacturing, in addition to a vital resource for domestic use. Water for local consumption is a commodity in limited supply. Encouraging the most efficient use of the County’s available water supply will help the County to maximize its economic potential and keep the cost of water as affordable as possible to local users.

iv. Capitalize on I-5 as a resource (transportation asset as well as opportunity to market

to through-travelers). Establish gateways visible to freeway traffic that build awareness of Glenn County as a place, and promote the accessibility of vacant sites adjacent to the freeway in recruitment materials to food processing and other industrial users and to supplier businesses.

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Program 1B: Actively work to retain and expand existing businesses Resources for economic development are scarce, and it is difficult and costly to recruit new businesses; therefore, the County will likely enjoy the greatest return on its economic development investments by working to retain and expand businesses that are already located in Glenn County.

i. Establish an outreach program to periodically connect with existing large and growing businesses, to proactively identify and address retention needs; designate staff to work with businesses in need of assistance to ensure their retention.

ii. Assist farmers in identifying and taking advantage of emerging crop opportunities

and technology innovation. These efforts could include technical assistance in partnership with CSU Chico and the University of California Agricultural Extension, and the development of infrastructure to support farmland conversion to higher value crops. Changes in the agricultural commodities markets and other factors affecting agricultural production will inevitably lead to shifts in crop patterns within the County. Dairy farming, rice, olive, nut and fruit crops represent some of the County’s current strengths. By nurturing a healthy agricultural base, Glenn County can help to support additional economic activity in the form of local food processing facilities, suppliers, and services.

iii. Facilitate investment in energy conservation and alternative energy in order to

increase competitiveness of Glenn County businesses. The County should review permitting and processing policies for energy efficiency and alternative energy projects in order to encourage businesses to make these types of investments, which can make enhance their long-term competitiveness. Possible actions could include standardizing permit requirements, reducing or waiving permitting fees, facilitating access to or disseminating information and/or providing technical assistance when requested. Promotions and demonstration sites could also serve to introduce cost-saving opportunities to local businesses, including carbon credits, solar farming on marginal land, ag by-product sales, or increasing the efficiency of irrigation equipment.

iv. Promote and facilitate access to existing small business financial assistance

programs operated by organizations such as the 3CORE, Inc., the Small Business Administration, USDA Rural Development, and CalRecycle.

v. Target Orland Business Park tenants for particularly aggressive retention and

expansion efforts, as the existing infrastructure investments can be used to leverage additional direct private investment and job creation. Additionally, because airport lease revenues that accrue to the Airport Enterprise Fund are restricted in their use

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and cannot be used to finance General Fund activities, an increase in airport lease revenues could be targeted for investment in a small but concerted attraction effort targeted at the Orland Business Park. Such a program could represent a “trial run” for a possible countywide attraction program in the long-term.

Program 1C: Lay Groundwork for Future Recruitment Activities There are relatively few things that local jurisdictions can do to directly affect the environment for local economic development, but it is important that the County address those factors under its control whenever possible in order to reduce the complexity, uncertainty, and risk involved in starting new businesses.

i. Streamline regulatory requirements and standardize permitting procedures as much as possible in order to reduce barriers experienced by small scale start-ups, which constitute the majority of firms in value-added processing and other targeted industries. Use the County’s Confined Animal Facility Element, established to regulate large dairy farms, as an example. Put all required forms and an instruction guide on the County web site.

ii. Regarding the KVB site near Orland and the CalAg site near Willows, the County

should seek to incorporate provisions into the relevant development agreements that will ensure that new infrastructure investments are undertaken in way that will easily accommodate the co-location of additional businesses. This can be economically beneficial to the project sponsors, since this would help them to capitalize on their own investments by attracting additional tenants or business partners to their sites. The County should have more influence on the development of the KVB project site, given the fact that the County will be an active partner in the project. By leveraging the large initial investments needed to support the anchor tenants at these sites, the County can potentially decrease the costs of electricity, gas, and sewer infrastructure needed for future businesses at these sites, which can significantly increase the attractiveness and value of those sites for additional users.

iii. Enhance infrastructure conditions, particularly for targeted vacant industrial sites,

or provide financing assistance to support such activities. Initial infrastructure investments needed to establish new facilities can represent significant barriers, particularly to small business start-ups.

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Figure 4: Priority Work Program Summary and Implementation Matrix

Relative Relative Staff Time PotentialAction/Program Priority Cost (a) Investment (b) Partnerships (c) Potential Funding (d)

1: ENSURE THAT GLENN COUNTY IS AN ATTRACTIVE PLACE TO DO BUSINESS

Program 1A: Build on Existing County Assets

Action 1A.i Preserve Agricultural Land Short-term $ + Farm Bureau, Water Districts General Fund

Action 1A.ii Maintain Water Quality and Supply Short-term $ + Water Districts General Fund

Action 1A.iii Promote Water Conservation Short-term $ + Water Districts, UCANR General Fund

Action 1A.iv Capitalize on I-5 as a resource Medium-term $$ ++ Cities General Fund/TOT Revenue

Program 1B: Retain and Expand Existing BusinessesAction 1B.i Conduct Ongoing Outreach to Identify Retention Needs Short-term $ + 3CORE, Chamber General Fund

Action 1B.ii Facilitate Ag Innovation Short-term $ + CSUC, 3CORE, Farm Bureau, UCANR

CDBG, SBA 7a Guarantee Program, RLF, Rural Development Business & Industry Program, Old Growth Diversification Revolving Loan Fund, Industrial Development Bonds

Action 1B.iii Facilitate Investment in Energy Conservation Short-term $ + UCANR Consider bond funding program like Berkeley Financing Initiative for Renewable and Solar Technology

Action 1B.iv Facilitate Access to Financial Assistance Short-term $ + 3CORECDBG, Microenterprise Business Program, SBA 7a Guarantee Program, RVCN, RLF, Rural Development Business & Industry Program, Old Growth Diversification Revolving Loan Fund, Industrial Development Bonds.

Action 1B.v Target Orland Business Park Tenants Short-term $ Airport Enterprise Fund

Program 1C: Lay Groundwork for Future Recruitment ActivitiesAction 1C.i Streamline and Standardize Regulations Short-term $ + Cities General Fund

Action 1C.ii OverseeIinfrastructure investments on Large Industrial Sites Short-term $ + Cities General Fund

Action 1C.iii Enhance Infrastructure Medium-term $$ ++ Cities

Notes: (a) Cost Key (approximate) (c) Partners Key (see appendix C):$ = $0 to $5,000, or primarily existing staff time County PPWA = Glenn County Planning and Public Works Agency$$ = $5,000 to $20,000 Chamber = local Chambers of Commerce$$$ = $20,000 to $50,000 CSUC = California State University, Chico$$$ = $50,000 to $100,000 3CORE = 3CORE, Inc.$$$$ = Over $100,000 BLM = Bureau of Land Management

Cities = Hamilton City, Orland, and Willows(b) Relative County Staff Time Investment Key UCANR = University of California Agriculture and Natural Resources+ = Anticipated to be handled within existing staff duties with minimal effort.++ = Would require dedicated part-time staff. (d) Funding Key (see appendix C): +++ = Would require dedicated full-time staff. CDBG = Community Development Block Grant

RLF = Revolving Loan FundsTOT Revenue

Optional Long Term Business Recruitment Activities A successful business retention and expansion strategy will generate jobs for local residents, build a supportive local business climate, and increase the County’s operating budget through new revenues generated by expanding businesses. New revenues, particularly in the form of a growing Airport Enterprise Fund, could underwrite additional public economic development investments. At some point in the future, when local economic conditions and the County’s operating budget have improved, the County may decide to launch a business attraction campaign, to build on business retention and expansion activities. This section outlines the structure of programs and actions most likely to “fit” Glenn County’s future needs and resources. Figure 5, on page 38, includes a Long-Term Work Program Summary and Implementation Matrix. Business attraction efforts can require significant investment and follow-through in order to be effective. Given limited resources, it will likely be beneficial for Glenn County to implement a focused business attraction campaign. This would entail an organized effort to build the County’s economic base by targeting specific industries that are compatible with the County’s unique assets. In order to be successful, such an attraction strategy requires dedicated staff who are tasked with focusing on this type of effort. When local jurisdictions engage in business recruitment activities, the targeted companies often have the expectation that the local jurisdictions will commit to working with prospective companies on various types of assistance and incentive packages. County leadership should provide staff who handle recruitment activities with clear guidance regarding the resources that the County will consider utilizing to assist new businesses. Staff must also be equipped with a budget for preparation of marketing materials and to conduct various prospecting and marketing activities. This may involve budgeting for County staff to assume these responsibilities, or contracting for such services. Goal 2: Attract and Leverage Private Investment in Glenn County Program 2A: Recruit businesses that “fit” Glenn County County recruitment efforts should target industry sectors that serve growing local and regional agricultural sectors, are showing growth potential, that fail to find appropriate sites in the surrounding areas, and/or those seeking to expand or relocate to a lower cost environment. The County should work to support a diversity of businesses and occupations based on local competitive advantages and Glenn’s unique characteristics, with a focus on the following target sectors:

i. Specialty Equipment Manufacturing. The County should recruit firms that design and manufacture specialty equipment used in local ag production. Recruitment efforts should begin with crops for which Glenn County is a lead producer, so that

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firms can easily test their designs on local farms and ranches and get feedback from growers. Suggested crops include rice, olives, nuts, and dairy.

ii. Agricultural Supplies and Services. By maintaining a healthy agricultural production sector, Glenn County will be able to support various agricultural supply dealers and service providers. With Glenn County’s location on I-5 and within a predominantly agricultural region, Glenn County can be an attractive location for retailers and service providers who serve the larger North Valley agricultural community. New crops and cultivation techniques will require new products and services for production support.

iii. Value-Added Food Processing. Glenn County can further capitalize on its

extensive production of commodities by adding value to the raw material through processing, packaging, and distribution. Special attention should be paid to niche markets, which could offer an opportunity for smaller processors with less initial start-up capital to specialize in ethnic or lifestyle products. Possible food processing business opportunities could include facilities for processing rice into non-traditional products, milk producers and processors and manufacturers that use dairy products as significant product components, new nut processing plants, and flour milling and industrial bakery plants. There is an opportunity for the development of packaging industries, such as canning, paper packaging, and the manufacturing of glass containers, to eliminate the necessity of importing such products from other counties, or shipping Glenn County commodities elsewhere to be packed and shipped. The County should pay close attention to the needs of large local operations, such as California Olive Ranch or Carriere Farms, to identify opportunities to locate additional value-added processes and/or suppliers in Glenn County, rather than having bulk products shipped out of the County for processing, packaging, and distribution.

iv. Materials Recycling, Including Ag By-Products. Local agricultural production

creates a ready supply of organic matter that can be processed and turned into soil amendments and other products. Due to the typically low value of these types of products, local producers of by-products will command the highest value for these products when they can be utilized by local manufacturers and produced for consumption as close to Glenn County as possible, so that shipping costs are minimized. Companies such as Benchmark Development (rice straw products and straw bale construction), Compost Solutions, and Waste Tire Products provide good examples of local innovators who are discovering market niches. The Glenn County Recycling Market Development Zone can serve as a useful tool for firms engaged in recycling activities.

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v. Alternative Energy Development. There is potential for renewable energy generated from biomass in the by-products or waste from the large agricultural production (e.g., bio-digesters), from food processing (e.g., co-generation facilities), and from domestic waste generated within the County (.e.g., KVB project). Solar, wind, and other “green” energy projects represent additional opportunities that can generate economic investment, increase tax rolls, and increase the competitiveness of local businesses.

vi. Water Conservation and Efficiency. Supplies of water have become less secure due

to increased demand and the possibility of drought. Firms that manufacture, sell, and/or maintain water efficient irrigation equipment and systems represent an opportunity for the County to not only enjoy new economic activity, but to help local farms, businesses, and water districts operate more efficiently and maximize the economic output supported by the County’s finite supply of water.

Business recruitment efforts require concerted efforts for marketing, outreach, and technical assistance. As indicated in Figure 5 it is assumed that if Glenn County pursues a business attraction campaign, the County would need to dedicate sufficient resources to the effort to fund a full-time economic development professional who would be responsible for the program. This may involve a County employee, or a contractor; however, the key is to designate an individual whose daily work focus is to undertake recruitment activities. Recruitment efforts also require additional budget support for marketing materials and activities. Additionally, if interested businesses are located, the process of bringing them to the County may well require that the County and/or City be prepared to negotiate with prospective businesses to offer various types of business assistance packages, which may include financial assistance, permitting and processing assistance, and other types of incentives. Program 2B: Utilize new media and traditional outlets to promote Glenn County Focused marketing efforts should capitalize on Glenn County’s strengths and geographic position, and define and market its uniqueness to prospective business investors. The 1998 Glenn County Agricultural Industry Business Action Plan outlined several steps that remain relevant today:

i. Develop and implement a cohesive and targeted marketing plan. This plan should include timelines, budget, and measurement tools, and should reflect an understanding of how to reach targeted markets in order to effectively deliver marketing messages both inside and outside the local community.

ii. Create an agriculturally-based network.

a. Conduct research on similar marketing efforts.

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b. Leverage existing business assistance programs, including those run by the Small Business Administration, and 3CORE, Inc.

iii. Create brand awareness of Glenn County’s agricultural diversity and abundance.

a. Develop a unique and recognizable marketing logo. b. Develop and implement a targeted advertising campaign. c. Develop and implement a public relations campaign, including cost

effective and timely internet-based social networking tools, traditional media, and promotions.

d. Capitalize on the movement towards locally produced foods, by building a brand image around foods grown in Glenn County. This could benefit farmers, value-added food processors, local retail operators and ag tourism activities.

Program 2C: Develop and promote Glenn County as a recreation and agricultural tourism destination Leverage Glenn County’s agricultural landscape to attract agricultural tourism over the long term. In addition to promoting outdoor recreation on public lands and events centered around such activities, the ag tourism component could include farm tours, farm stays/B&Bs, farm stand sales/tasting rooms, restaurants serving locally produced foods, and festivals celebrating the County’s signature products. Responsibility for this program could be combined under the same dedicated staff with the responsibility for programs 2A and 2B.

i. Create marketing materials, both hard copy and electronic, that compile relevant agricultural tourism and recreation attractions and accommodations.

ii. Begin outreach with the County’s current visitor attraction strengths, which

includes freeway travelers, outdoor recreationists, and Thunder Hill Race Track visitors. Leverage increasing interest in olive oil tasting and other types of local food production.

iii. Develop additional visitor attractions including farm tours, farm stays, recreational

events on public lands, and agricultural and outdoor-themed (e.g., fishing/hunting/wildlife viewing) events.

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Figure 5: Long Term Work Program Summary and Implementation Matrix

Relative Relative Staff Time PotentialAction/Program Priority Cost (a) Investment (b) Partnerships (c) Potential Funding (d)

2. ATTRACT AND LEVERAGE PRIVATE INVESTMENT IN GLENN COUNTYProgram 2A: Recruit Businesses that "Fit" $$$$ +++

Action 2A.i Recruit Specialty Equipment Manufacturing Firms Medium-term (e) (f) 3CORECDBG, SBA 7a Guarantee Program, RLF, Rural Development Business & Industry Program, Old Growth Diversification Revolving Loan Fund, Industrial Development Bonds

Action 2A.ii Recruit Agricultural Supplies and Services Businesses Medium-term (e) (f) 3CORE, Farm BureauCDBG, SBA 7a Guarantee Program, RLF, Rural Development Business & Industry Program, Old Growth Diversification Revolving Loan Fund, Industrial Development Bonds

Action 2A.ii Recruit Value-Added Food Processing Sector Medium-term (e) (f) 3CORE, CitiesCDBG, SBA 7a Guarantee Program, RLF, Rural Development Business & Industry Program, Old Growth Diversification Revolving Loan Fund, Industrial Development Bonds, USDA VAPG

Action 2A.iv Recruit the Materials Recycling Sector Medium-term (e) (f) 3CORE, CSUCCDBG, RMDZ SBA 7a Guarantee Program, RLF, Rural Development Business & Industry Program, Old Growth Diversification Revolving Loan Fund, Industrial Development Bonds

Actoin 2A.v Recruit Alternative Energy Development Businesses Medium-term (e) (f) 3CORE, CSUCCDBG, SBA 7a Guarantee Program, RLF, Rural Development Business & Industry Program, Old Growth Diversification Revolving Loan Fund, Industrial Development Bonds

Action 2A.vi Recruit Water Conservation and Efficiency Businesses Medium-term (e) (f) 3CORE, CSUCCDBG, SBA 7a Guarantee Program, RLF, Rural Development Business & Industry Program, Old Growth Diversification Revolving Loan Fund, Industrial Development Bonds

Program 2B: Promote Glenn CountyAction 2B.i Develop a Marketing Plan Medium-term $$$ ++ Chamber, 3CORE TOT Revenue, participating businesses

Action 2B.ii Create a Network Focused on Agriculture-related Interests Medium-term $$ + Chamber, 3CORE Participating Businesses

Action 2B.iii Create Brand Awareness Medium-term $$$ ++ Chamber, 3CORE TOT Revenue, participating businesses

Program 2C: Position the County as an Ag Tourism Destination

Action 2C.i Create Marketing Materials Long-term $$$ ++ Chamber TOT Revenue, participating businesses

Action 2C.ii Conduct outreach to Existing Visitors Long-term $$ ++ Chamber, Thunder Hill, BLM TOT Revenue

Action 2C.iii Develop Additional Visitor Attractions Long-term $$$ ++ Chamber Private Investment by Operators

Notes: (a) Cost Key (approximate) (c) Partners Key (see appendix C): (e) The envisioned Business Recruitment Program would cost over $ = $0 to $5,000, or primarily existing staff time Chamber = local Chambers of Commerce $100,000, with funds spread across recruitment efforts in various sectors.$$ = $5,000 to $20,000 CSUC = California State University, Chico$$$ = $20,000 to $50,000 3CORE = 3CORE, Inc. (f) A concerted recruitment effort will require at least one dedicated $$$ = $50,000 to $100,000 BLM = Bureau of Land Management economic development staff member who can target multiple sectors. $$$$ = Over $100,000 Cities = Hamilton City, Orland, and Willows

(b) Relative County Staff Time Investment Key (d) Funding Key (see appendix C): + = Anticipated to be handled within existing staff duties with minimal effort. CDBG = Community Development Block Grant++ = Would require dedicated part-time staff. RLF = Revolving Loan Funds+++ = Would require dedicated full-time staff. RMDZ = CalRecycle's Recycling Market Development Zone

TOT RevenueUSDA VAPG = U.S. Dept of Agriculture's Value-Added Producer Grant

A p p e n d i x A : S u m m a r y N o t e s f r o m S t a k e h o l d e r s M e e t i n g

Glenn County Green Technology and Agricultural Industries Feasibility Study

Stakeholder Meeting Notes

March 31, 2010

Willows, CA Green Technology Trends Composting, mulching, or waste diversion instead of burning ag waste Ag structures are being built to incorporate renewable energy, recycled materials, etc. Willows wastewater facility – upgrades Orland Public Safety building

Incorporates straw bales, solar, and LEED Gold eligible Water conservation and efficiency technologies in agriculture Cal Olive will reclaim water used in processing Ag Trends Cal-Olive adding more acreage for oil olives

Plant will support 10,000 more acres than planted at present Micro-drip technology makes it possible to grow olives on marginal lands Super high density planting

Olives are a good option for the west side of the County Larger parcels were attractive to Cal Olive in locating in Glenn County Healthy living trends have supported interest in olive oil

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“Buy local” trend also supports domestic olive production even though costs for Italy, Spain, Portugal are low. Nut crops are high value added Opportunities Growing olive industry creates opportunities for suppliers and services to locate within the County Need to promote and develop efficiency in equipment – machinery, pumps, etc. Ag tourism activity

Food and health interests Tie in with Thunder Hill Ag tourism may be long-term project given competition with established places

like Napa or Monterey Oil tasting is something that people are interested in Rural residential can be compatible with growing – example = Livermore “vineyard estates” Ag by-product uses

Feed for cattle Polymer extraction for things like pharmaceuticals/cosmetics Pits used for road base in other countries Fuel for co-generation

Regional waste processing facility could be beneficial so that farmers would dispose of by-products with low shipping costs. Air quality controls limit burning of ag waste

Shredding/composting/mulch could be marketable product instead Carbon credits as potential income source for farmers who don’t burn

Low water use techniques and technologies create savings and create opportunity for new crops (see caveat in “Barriers” below, too) Improved air quality can mean that solar panels will operate more efficiently.

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Solar farming on marginal land Westlands Irrigation District is using reclaimed land for solar farms Peak energy demand management is an opportunity for cost savings CA Energy Commission rebates for wind are very attractive, but may only last one year

Quick payback Wind energy potential on west side is good with new turbines that can generate power in approx. 5 mph Possibility of a public agency to serve as a technical resource for adoption of green technologies

Facilitate the process of permitting, etc. Glenn County Green Technology Initiative County could install model systems to demonstrate new technologies

Create a “green energy grid” in Glenn County Energy efficient home design is a potential export industry Create a culture of efficiency in Glenn County Build on what the private sector does Place signage along I-5 Barriers Need to develop water reliability so that farmers know that they will be able to maintain their acreage. Need road improvements to support growth (e.g., flooding on road near Cal-Olive plant) Irrigation water conservation techniques can bring about the issue of reduced groundwater recharge. Lack of uniform standards for permitting wind turbines means that it is more expensive to install turbines.

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Streamlining or creating uniform standards is an opportunity to encourage more installations

Need for special expertise/technical assistance to help users figure out which new technologies would be most effective.

CSU Chico might be able to assist Lack of capital

USDA financing programs limited to $25 million Airport business parks – due to FAA terms, can only lease property – some users only want to buy property. Need a vision at a high level. Need a population base to support industry and commerce Initial infrastructure investments needed to get new facilities established can be a barrier.

Planning is necessary Financial assistance is necessary

Need leadership to carry the ball Marketing is needed to make people outside of the County aware of what it has to offer Assets Glenn County is perceived as business friendly – a good place to do business Glenn County has access to power transmission facilities to be able to send surplus power out into the grid. Available labor – but need skills

Dept. of Labor may be a resource for training Quality of life is needed to attract talent

Affordable housing Critical mass of employers to give employees career growth opportunities,

employer options & mobility within community

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Lifestyle is attractive for some, but others can find it difficult to fit into a tight knit community. I-5 has been an asset, but there has been a shift away from Willows along the corridor, as growth has occurred in other communities along the freeway Infrastructure expansion has been a challenge Business targets are in waiting mode – nothing can happen until they are ready to start projects Orland is doing an asset inventory Cooperative attitude of local govt. is biggest asset

This creates a competitive advantage Water supply – must protect it Thunder Hill Is working on wind turbine installation Track is possible venue for testing/technology development GP Update would help with allowing new activities at the track Thunder Hill is in Glenn County because it found an advocate who wanted to bring the facility to the County Potential Target Industries Alternative energy producers Relocations of companies from southern CA Support existing businesses and they will become the County’s greatest ambassadors to attract new industries Existing businesses can reach out to suppliers to relocate to Glenn County Olives are a good option for the west side of the County

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A p p e n d i x B : B u s i n e s s e s I n t e r v i e w e d KVB, Inc. Sierra Nevada Cheese Co. CalAg LLC Waste Tire Products Pedrozo Dairy & Cheese Compost Solutions Benchmark Development Thunderhill Park Carriere Farms Rice Researchers, Inc. Power Shacks, Inc. California Olive Ranch West Coast Products

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A p p e n d i x C : P o t e n t i a l I m p l e m e n t a t i o n R e s o u r c e s The following pages provide additional explanation of potential resources to support implementation of the strategies described for Glenn County. They include organizations that could potentially partner with Glenn County to undertake certain programs and actions and potential funding sources to assist with the necessary investments. Potential Implementation Partners 3CORE, Inc. 3CORE, Inc. is a private, nonprofit agency dedicated to economic development planning and financing in Butte, Glenn and Tehama Counties. Its programs and services include: Business Financing Programs. 3CORE, Inc. specializes in gap financing. These loan programs are designed to help local businesses unable to obtain conventional financing which meets their specific needs. Often, these loans are made in conjunction with the borrowers’ own cash and a bank loan or another financing source. Business Mentoring. 3Core, Inc. offers both formal and informal mentoring services that consider individual companies’ situations and offer tools and strategies that will facilitate growth and ultimate success. Such mentoring services often include the interpretation of economic factors and local realities that can be confusing to small business owner. Business Outreach Programs enhance existing business outreach efforts by obtaining useful information regarding the local business climate, providing a vehicle for referrals for financing, technical assistance and expansion needs, and to create awareness in the business community regarding the different types of services available. Comprehensive Economic Development Strategy (CEDS) 2010-2015 for Butte, Tehama and Glenn Counties is the strategic plan that 3CORE, Inc. prepared for the U.S. EDA in order to establish eligibility for the EDA’s funding programs on behalf of the Counties. In the CEDS, 3CORE, Inc. targeted a number of projects and investments that will support implementation of this strategy, including: funding to expand and improve infrastructure for value-added agricultural processing, energy production, and other commercial or industrial activities including the Willows and Orland airports; partnering with Willows and Orland to develop high priority economic areas within their respective spheres of influence and along the I-5 corridor, and targeting companies for financing and technical assistance that focus on emerging green technology, alternative energy production or development, and agriculture tourism/value-added agricultural products.

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Chambers of Commerce Two local Chambers of Commerce serve Glenn County businesses. Located in Orland and Willows, the Chambers of Commerce provide businesses with monthly newsletters of activities in the area as well as many other services including comprehensive business directories. In other communities, Chambers of Commerce often participate with public agencies as ambassadors from the local business community, as part of business recruitment efforts, and as partners in business retention outreach projects. CSU Chico College of Business Faculty, staff, and students from CSUC’s College of Business can be resources for implementation of economic development activities in Glenn County. Following are some of the resources: Center for Economic Development (CED). This center houses a number of functions that support economic development in northern California, including:

• Small Business Development Center. The CED serves as the Small Business Development Center for northeastern California, providing various types of small business technical assistance.

• Technical Assistance. The CED provides general technical assistance, gathers data and provides community need statements for grant applications, and creates community indicators for program monitoring.

• Market Intelligence and Business Feasibility Analysis. The CED provides a number of services related to analyzing potential markets and determining business feasibility.

Center for Entrepreneurship. This center promotes entrepreneurship and thus may be a particularly valuable resource for start-up companies or companies that are attempting to expand into new markets or product lines. Small Business Administration (SBA) Service Corps of Retired Executives (SCORE), a volunteer business counseling program sponsored by the US Small Business Administration. Active and retired business executives provide workshops and one-on-one management advice on nearly all aspects of business operations. Small Business Development Center (SBDC) – These centers provide advice to small businesses (under 500 employees) on marketing, growth, and planning issues, as well as guidance in cash flow management, financial analyses, projections and business plan writing. See local SBDC under CSU Chico Center for Economic Development, below.

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Business Financing Resources 3CORE -Administered Business Loan Funds 3CORE, Inc. manages a number of revolving loan funds (RLF) on behalf of the jurisdictions that is serves, including Glenn County. These funds can provide gap financing to businesses that are unable to secure all of their financing needs from conventional sources. Loan funds include those originally capitalized from Economic Development Administration funds (EDA RLF Re-Capitalization fund), from Community Development Block Grant funds (County of Glenn CDBG Re-Use RLF), and from USDA funds (Glenn and Tehama County USDA Old Growth Diversification Revolving Loan Fund, USDA Intermediary Relending Program RLF). 3CORE, Inc. also administers three additional general RLFs. California Integrated Waste Management RMDZ Loan Program Recycling-based manufacturers who utilize post-consumer waste materials located in designated Recycling Market Development Zones, which includes all of Glenn County, are eligible to apply for loans of 50% of a project’s costs, up to $1 million. Funds may be used for real property, equipment, working capital, or refinancing of current debt. Community Development Block Grant (CDBG) Small Cities Program – Economic Development This program, administered by the State Department of Housing and Community development on behalf of the U.S. Department of Housing and Urban Development (HUD) provides economic development funding opportunities for small California jurisdictions that are not large enough to receive entitlement funds directly from HUD. Technical assistance grants and grants for project implementation are available for economic development projects that will create or retain jobs for people from targeted income groups. Glenn County Micro-Enterprise Business Program Glenn County has obtained funds for the purpose of creating microenterprise and small business loan services. The Glenn County Micro-Enterprise Business Program assists low income residents who are interested in small business development. Industrial Development Bonds Tax exempt Industrial Development Bond financing for qualified manufacturers are one of the most competitive financing options available for the acquisition of manufacturing facilities and equipment. IDBs allow private companies to borrow at low interest rates normally reserved only for state and local governmental entities. There is a $10 million

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annual capital limit per jurisdiction. A letter of credit from an “A” rated bank and job creation are required. SBA 7a Guarantee Program The Small Business Administration can provide 75% - 90% guarantees for all types of business needs; real estate, equipment, and working capital. Generally, SBA guaranteed loans range from $20,000 to $1 million. For loans under $100,000, DBA offers a LOW DOC Program. USDA Rural Development Business & Industry Program This program picks up where the SBA 7a program leaves off, providing 79% - 90% guarantees on loans of up to $10 million. The business and industry guarantees are only available to businesses in rural areas, for which Glenn County qualifies. USDA Value-Added Producer Grants USDA makes grants to agricultural producers, cooperatives or producer associations to encourage them to process them into marketable goods; thus increasing farm income within the local area. Up to $100,000 can be awarded for planning, and up to $300,000 can be awarded for working capital. USDA Rural Business Opportunity Grants This program aims to improve the economic conditions of rural areas, with funded projects ranging from business development technical assistance to economic development planning. USDA is particularly interested in recruiting applications that will establish "best practice" projects in the area of regional economic and community development using key strategies of the USDA as identified in the Program guidelines. The grants are targeted at public bodies and nonprofits, do not require matching funds, and may be up to $250,000 per application. USDA Rural Business Enterprise Grants These grants may be used to provide needed infrastructure, to fund technical assistance needs and to establish or fund revolving loan programs. Eligible grant recipients include public agencies, nonprofits, and emerging private business enterprises in rural areas (defined as having less than $1 million in revenues and fewer than 50 employees). Due to Glenn County’s higher unemployment and median income rates, grant applications for local projects would qualify for priority status if they included a commitment of non-federal funds and a firm commitment from a business to locate or expand in the community.

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