Economic development is alive in Amador

Tuesday, May 20, 2008

 - Ron Mittelbrunn, Sutter Creek

The editor of this newspaper recently referred to economic development as a "one of Amador's several redheaded stepchildren" (May 9, "Get out of the way"). As the executive director of Amador Economic Development Corp., I'm here to tell you that economic development is alive in Amador County. I guess it depends on how one defines economic development. Simply put, economic development is the process of business creation, retention, expansion and attraction.

Let's take them one at a time:

Business creation - AEDC has been closely involved with no less than 35 new business starts, all of which are successful today and employ more than 100 people.

Business retention - In the 18 years I've been with AEDC, I know of only one business that has left Amador County. There may be more, but I know of only one.

Local business expansion is the highest form of economic development because it is growth fueled from within. Local business owners ensure that profits stay in Amador, at least longer than out-of-town businesses with branches here. These expansions were financed through SBA loans arranged by AEDC. There have been 59 loans totaling $34.4 million. That equates to an increase of $34.4 million to the overall property valuation in the county, which equates to increased property tax for the county and, at 1 percent, do the math. Additionally, these expansions have hired over 385 employees.

Admittedly, business attraction has been elusive. In order to have a vibrant economy, we need to have industries that pay higher than the national average wage - that generally means the high tech industry. Amador has very little of that. Most companies of that ilk settle around us in El Dorado or Sacramento counties. We'd like a little piece of that action.

It is abundantly clear that a lack of economic diversity is detrimental to Amador's long-term diverse economic growth. Currently, about 3,000 people commute out of Amador for work. I call this a "brain drain." What is needed is to attract developers that are engaged in creating office buildings that will be attractive to companies that are in the high tech industry and, thus, high wage producers.

We have a start. There are two business parks with infrastructure: Sierra West Business Park and Amador Central Business Park, but neither has a building available. I have spoken to many owners of high tech companies; they all want to have a "move-in" available. The current proposal before the board of supervisors to defer permit and impact fees until occupancy is a tremendous enticement for a developer of office buildings.

On another note regarding economic development being stagnant, the gross county product (the total dollar amount of goods and services produced) in 1997 was $793.3 million. In 2005, that figure was $1.449 BILLION. That's an increase of almost 84 percent in eight years. Not too shabby.

Ron Mittelbrunn is executive director of the Amador Economic Development Corp.