Economic Resource Council

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Please visit the following sites for information in economic development in Nevada County.

Nevada County Economic Resource Council Web Site

Nevada County New Business Network Blog

More details on Fresh & Easy coming to town

Russ Steele

The Union broke the story on some new chain stores coming to Grass Valley and  possibly Brunswick Basin.  KNCO has an interview with Gil Mathew, ERC President and CEO. 

Co-owner Don Neronde announced Wednesday he is relocating his Ford dealership to Auburn from Grass Valley at year-end, as was widely expected, but he said in an interview that Fresh & Easy is a leading candidate to build a store where Grass Valley Ford has been located, as well as another store in Grass Valley is losing a car dealership, but it could be gaining two Fresh & Easy grocery stores, The Union has learned.

Tesco announced it's intention to move into the United States market in February 2006, opening a chain of convenience stores on the West Coast  named Fresh & Easy Neighborhood Markets, starting in 2007. Tesco established its U.S. headquarters in El Segundo, California at 2120 Park Place. The first store opened in November 2007 with 100 more expected in 2008. They plan to open a new one every two-and-a-half days in America, to mimic the successful expansion of pharmacy chains such as Walgreens in the U.S.

The first Tesco Fresh & Easy Neighborhood Markets opened in Riverside County, and they now have stores in Orange County, Los Angeles County, San Bernardino County and this month two stores in Bakerfield, Kern County.

Tesco PLC is a British-based international grocery and general merchandising retail chain. It has the largest British retailer by both global sales and domestic market share with profits exceeding £2 billion. In 2008, Tesco became the world's fourth largest retailer, the first movement among the top five since 2003. Originally specialising in food and drink, it has diversified into areas such as clothing, consumer electronics, consumer financial services, retailing and renting DVDs, CDs, music downloads, Internet service, consumer telecoms, consumer health insurance, consumer dental plans and software.

Could the opening two Fresh & Easy Neighborhood Markets be just the beginning of how retail is done in Nevada County?  Will we see more of Tesco in the future as they expand into other product lines like they have in other countries.

Some positive economic news right under our noses.

Russ Steele

With all the negative economic news, business and restaurants closing, it is nice to discover some positive local economic news.  I was having coffee with a friend at Hollywood Sweets when Kim Stewart stopped to say hi. I met Kim when she was Larry Burkhardt's assistant at the Economic Research Council, where she developed the first ERC web page and some of the early marketing materials. Kim had a lot of marketing savvy, but was more interested is starting a family and being a full time mom. After her two boys Colin & Branden were born, Kim starting thinking about putting her marketing skills to work again. Two years ago she bought American Leather Products, a manufacturer and wholesaler of leather kitchen products from a local family.

Kim improved the product line of leather hot pads and oven mitts, and found 60 stores willing to sell her growing product line. Then one of those unexpected opportunities came out of the blue. One day she I got a phone call from the Art Director who works for Giada de Laurentiis, a celebrity chef on the Food Network. They had discovered her products in a West Hollywood store. The Art Director told Kim, "Giada loves these oven mitts... We must have them on the new show".  They are now part of Giada's kitchen on "Giada At Home" which airs Saturday's on the Food Network. She uses different color oven gloves for each episode.

Knowing that she need a way to capture the Food Network audience, she formed a new retail distribution company called, "Cuvee Kitchen Apparel" and commissioned  Gary Gustafson at New Press Websites to develop www.CuveeKitchenApparel.com.  With the web site turned on three weeks ago she is now selling products online to Giada's fan base. A fan base which is growing and is blogging on the Internet.  Recognizing the power of blogging, Kim has started interacting with Giada's fans and expects to sell more products, Products which are manufactured in Penn Valley. Kim has plans to stay local and grow to her companies, someday employing 10-15 people. 

This is the kind of positive news the we need keep us looking forward, to buck us up when we get overwhelmed store and restaurant closings.  Kim has tried to get some local buzz, but so far the Union has ignored her efforts.  So, please pass this information on to a friend,encourage them to check out Giada de Laurentiis show on the Food Network and visit Kim's web page www.CuveeKitchenApparel.com   An opportunity to buy something for that hard to please person on your Christmas list.

Union Business Blog

Russ Steele

The Union has a new blog the The Bizness,  which will be focusing on business issues,  the good the bad and the ugly. Check it out here.  You can sign up to post on the business blog.

Nevada County Economy Profile Study

Russ Steele

Nevada County CEO Rick Haffey attended a Nevada County Profile Workshop on October 2, 2008 held in Truckee, California.  The purpose of these workshops is to better educate each county about their local economy and provide insight on how to use the profiles. The workshop was presented by Dr. David Gallo, Chico State University Economics Professor/Resident Economist and sponsored by the Private Industry Council, SEDD Corp and Citizen’s Bank.  To view the information presented, click on the following links: 

Nevada County: Trends, Forecasts, and Economic Base Industries

The Next Year in the California Economy: A Perfect Storm: The impact on Nevada County

This information is from the County Web Page.

AJA Video is growing and breaks ground on new building.

Russ Steele

On June 23rd, 2008 Litton East Partners broke ground on a building that will be come the new headquarters and corporate offices for AJA Video. The new 44,590 square foot office building rests on 4.6 acres on the south side of Litton Drive. Gray Construction was selected by Litton East Partners, as the general contractor this new headquarter building.

When completed in August 2009, AJA Video’s corporate, administrative and sales functions will occupy approximately 29,500 square feet of space, with the remaining 15,090 square feet of space being designated for  manufacturing and warehouse operations complete with loading docks.

The building will incorporate “green building” elements, including dual glazing low-E tint windows, sun shades, the  use of “Greenscreen” modular panels, and the provision for rooftop solar panels. The overall site plan incorporates a new main entrance off Litton Drive, 167 parking spaces, and extensive landscaping and open space, including a connection to the local trail system. The main entrance to the building will be set off by a stucco fascia and entry canopy.

At a time when the local economy is struggling this good news for the community. News that has gone unreported in the newspapers, or on local radio stations. It is not a stealth project and should be recognized that Western Nevada County's applied technology cluster is growing even in a down economy. Once this expansion is complete and companion engineering build is built next door, AJA work force will expand by 45 to 50 people, many of the new employees will be highly paid engineers. This is good news for our local economy and should be celebrated by everyone.

Starting a Business: It’s Never Too Late, by Michael S. Malone

At age 54, I’ve just started two companies. And what I’ve already learned from the experience is that not only am I more suited for the task now than I was at 27 or 38, but that the world of entrepreneurial start-ups is now much more suited for me. And for you.

Check this story out here, there maybe an opportunity for you. Your never too old to start a company, Col Sanders was 65 when he started KFC.

Local Coffee Cookies Going Global

Cookie business in Nevada City makes news on Ch13.

It's been awhile

I've not often gotten to this blog since I became the CEO of the ERC, but I hope that all of that can change.  Since January 1st there has been a lot of excitement around the ERC office, Chuck Neeley President and CEO for two and half years has left for other activities and the very able Barbara Campbell, ERC Executive Assistant, has mothered my through a steep learning curve.
So we are now ready to start utilizing this blog as part of our outreach communication concerning economic development news and information relative to Nevada County, the State of California, the nation and the global economy. 
The new ERC Web site is up and running and we invite you to check it out, then watch for us here for the latest news and events.

Could a Nevada County Business Incubator Succeed?

Russ Steele

I was looking for an other document in my Library, when I can across a report purchased long ago and put on my library shelf: Business Incubation Works.  From the stiffness of the pages, it looks like I never even read the report after buying it. It was published in 1997, and may have been on the shelf for a while. 

From part of the Executive Summary:

Business incubators are helping build healthy, lasting businesses and they are doing it for low cost and with a good return on investment to supporters. A very high percentage of incubated companies remains in their communities, confirming the goal of business incubators to build the business base and potential for job creation in their regions. This study - the most comprehensive one on business incubation to date - was conducted under a grant from the Economic Development Administration by the University of Michigan, National Business Incubation Association, Ohio University, and Southern Technology Council. Using a combination of surveys, focus groups, stakeholder panels, and regional macroeconomic analysis, the study found that:

• Business incubation programs help companies create many new jobs. In 1996 incubators reported, on average, that their firms had created 468 direct and 702 total jobs.

• Business incubation programs create new jobs for a low subsidy cost and a substantial return on investment. The estimated public subsidy cost per job created was $1,109.

• Incubator companies experience very healthy growth. For example the average annual growth in sales per firm was $239,535.

• Business incubation programs produce graduate firms with high survival rates - a reported 87 percent of all graduates are still in business.

• Most firms that graduate from business incubators remain in their local communities - an average of 84 percent.

• Most incubator firms provide employee benefits.

• Incubation programs contribute to their client companies' success and expand community entrepreneurial resources.

• Business incubation programs improve local community image.

• EDA-funded incubators perform better than or equal to non-EDA funded counterparts.

Macroeconomic research revealed wider impacts - in terms of wages, direct and indirect jobs, and local tax revenues - that incubator clients and graduates can have on their communities. Although the number of companies used in this part of the analysis was relatively small, the data revealed that incubator firms studied returned considerably more dollars to a community than it costs to subsidize the business incubator program.  [The rest of the summary deals with the conduct of the study]

Several cautions. This study was done in the go-go 90s and covered larger communities than we have in Western Nevada County. It would be good to read and study the whole report to see what lessons we can apply our local community.