Solano EDC growing to meet needs of changing economy

By Melissa Murphy, mmurphy@thereporter.com, @ReporterMMurphy on Twitter Posted: 05/09/15, 8:54 PM PDT |

 

J. Paul Harrington (left) and Patrick McGuire discuss the upcoming projects with the Solano Economic Development Center. — Joel Rosenbaum, The Reporter 

Meeting the need for the county’s business community is top priority for the Solano Economic Development Corporation.

That’s why, as the economy shows signs of improvement, the Solano EDC team is growing.

“We’re trying to build and anticipate how to grow to meet the need,” said Sandy Person, president of Solano EDC.

The Solano EDC, among other things, works to better position businesses with the right tools.

“Nobody can do it alone,” she said. “We’ve made a big commitment to serve economic development.

A unified approach makes for wins.”

The most recent addition to the Solano EDC team is Patrick McGuire who recently retired from the state and GO-Biz, the Governor’s Office of Business and Economic Development.

Working part time, McGuire is vice president and the point person for attracting businesses to the region as well as helping expand businesses that are already here. He also will continue his work assisting companies with programs like California Competes Tax Credit. California Competes is an income tax credit available to businesses that want to come to California or stay and grow in California. McGuire said there is money earmarked for small businesses.

“We want to get the word out,” he said. “Every company planning on expanding is in the running.”

He explained that the Solano EDC is filling in those support services for businesses that cities were once able to do.

“What a coup for us,” Person said about having McGuire on board.

One year ago Solano EDC embarked on a new venture with Pacific Gas & Electric and Solano County to save businesses and public agencies energy costs.

The Solano Energy Watch program with J.Paul Harrington at the helm as project manager has already seen successes since its inception. It has exceeded 2 million Kilowatt hours saved, surpassed $300,000 in recurring energy savings back into Solano County businesses and more than 100 businesses, non-profits and municipalities have participated in Solano Energy Watch.

“We’ve had an outstanding first year,” Harrington said. “We’re reaching those hard to reach businesses.”

Solano EDC and its partners are reaching out to myriad businesses, he said, from nail salons to warehouses, grocery stores to barbecue shops.

The Solano Energy Watch offers a no cost evaluation of how and where energy is used in existing facilities, and generates a comprehensive report containing energy efficiency solutions and the latest PG&E rebates and incentives to lower the cost of energy upgrades.

“It’s such a good team we’re building,” Person said. “We’re seizing those opportunities and reemerging. We’re offering that support to businesses to connect to resources, it’s the building blocks for economic growth.”

Person said Solano is in a great position, a place where businesses can grow because of the area’s tremendous depth of resources and infrastructure.

“We have a diverse county and a diverse skill set,” she said. “We want to be relevant to every sector.”

The announcement from ICON Aircraft Inc. last year that it’s relocating to Vacaville was a major boost to the county’s reputation.

McGuire called it a ripple effect when other businesses are looking at Solano to set up shop.
“It does attract people’s attention,” he said and added that it hasn’t all been gloom and doom for California’s economy. “There are innovative things happening here.”

Person agreed.

“There is this sense of opportunity,” she said and added that California is still the nation’s largest manufacturer. “We want to be proud of and feel a part of a winning team.”

Additional information about the Solano EDC is available online at www.solanoedc.org.

Plan Bay Area 2040 open house

Beginning in late April, residents from across the Bay Area will come together at a series of public open houses to discuss how to plan for our region’s future growth.

Will you be there?

Plan Bay Area, the region’s long-range transportation and housing roadmap, is being updated. The Plan looks to the year 2040, when two million more residents and 1.1 million new jobs are expected in the nine-county Bay Area. How this growth takes place will affect us all in the community.

Please consider attending a workshop, where you can view displays, ask questions and offer comments on long-term goals to:

·       House the projected population,

·       Maintain and enhance our transportation infrastructure,

·       Reduce greenhouse gas emissions,

·       Improve public health and much more.

Plus, you’ll be able to learn about how future housing and employment numbers are forecast and what transportation improvements are already in the pipeline for the region. A complete list of the open houses is available at PlanBayArea.org.

Can’t attend the open house? Join the online discussion at PlanBayArea.org or share your thoughts on Facebook or Twitter.

What kind of Bay Area we build today will be the legacy we leave for the next generation. If we want to continue to have a strong economy, with a range of housing and employment options for our region’s residents, we need to plan now.

I encourage you to attend an open house and help spread the word about the event to your colleagues. If you want to receive updates about Plan Bay Area 2040, sign up here: http://planbayarea.org/get-involved.html

Transportation funding an issue in Solano County

By Melissa Murphy, The Reporter, Vacaville

Posted: 04/24/15, 7:36 PM PDT |

0 Comments

It’s an “end of an era” when it comes to funding for transportation improvements in Solano County.

During Friday’s Solano Economic Development Corporation’s monthly breakfast, the business community received a state, regional and local perspective on transportation issues from Assemblyman Jim Frazier, D-Solano, Solano County Supervisor Jim Spering and Solano Transportation Authority Executive Director Daryl Halls.

Frazier also is chair of the Assembly Transportation Committee. Spering also serves on the STA board and on the Metropolitan Transportation Commission.

Spering explained that a “historic chapter” of funding transportation projects that the county has seen in the past is coming to an end.

Improvements along highway 12 between Fairfield and Rio Vista and on Jameson Canyon between Solano and Napa counties, new truck scales on eastbound Interstate 80 and the first phase for the current project for I-80/I-680/SR12 all had an identifiable funding source. Future projects aren’t so fortunate.

The good news is that the positive things that are happening for the Bay Area economy will eventually ripple into Solano County.

“These are remarkable times for the Bay Area,” he said. “That vibrant economy is coming our direction, but it spotlights the weaknesses in the transit system.”

“It’s a tremendous challenge,” Spering continued and added that funds from Proposition 1B have run its course, additional bonds have been exhausted.

He explained that other counties have invested in themselves in the form of a transportation tax, something voters in Solano have been asked to do three times.

“We need a balanced funding plan with a federal, state and regional investment, with a local commitment,” Spering said. “The trend is matching funding.”

The end of an era is coming, “What shall we do for an encore?” Spering asked. ... “There is a lot of opportunity for Solano County, but we have to have the resources.”

He added that in order to protect the quality of life in the county, it must address its road infrastructure.

He urged the federal government to “quit kicking the can down the road” and move forward with a new transportation bill.

Spering said it’s exciting to talk about new projects, and the community as a whole believes transportation issues are a priority. The community, however, becomes silent when it comes to funding those grand projects.

“We can’t put our heads in the sand,” he said. “We have to help ourselves.”

Frazier said he’s passionate about improving the infrastructure in California and is doing what he can at the capital to see that it’s done.

“We’re not just broke,” he said. “We’re broken.”

He explained that the state has lost its focus and as a result “voters are unwilling to invest in us.”

This year will be different if Frazier has his way with a “Go Bold or Go Home” approach.

“This is the year to make a move to fund transportation,” he said and explained that his approach will “spread the pain.”

He admitted that it will be a tough vote because people don’t trust that the California Department of Transportation (Caltrans) will spend the money wisely.

Frazier said he wants Caltrans to build vibrant trade corridors for the benefit of the state.

“We need to get shippers, manufacturers and businesses back in the game,” he said. “We need to work with all of you. I propose a long-term vision and we need a long-term commitment and long-term trust. ... I want to put California back in business.”

The assemblyman explained that the two-thirds vote threshold needed to pass a special tax by a city, county or special district is the hang-up in Solano County, where the majority of voters supported the transportation tax.

In February, Frazier introduced Assembly Constitutional Amendment 4, which would “provide that the imposition, extension, or increase of a special tax by a local government for the purpose of providing funding for local transportation projects, as defined, requires the approval of 55 percent of its voters voting on the proposition.”

“The voters need to decide,” he said. “Solano is deprived of funding for infrastructure and maintenance.”

Halls shared that funding for transportation coming from the federal gas tax revenue hasn’t changed since 1994 and funding from the state gas tax was reduced by 6 cents per gallon, a savings at the pump for motorists, but a $5 million cut to funding for transportation improvements.

Halls explained that the State Board of Equalization took a big bite out of what would have been coming to the county at the same time the conditions of the county’s pavement will likely drop from “fair” to “poor” by 2028.

He agreed that a top priority in the county is road condition, behind public safety and education, but the public has no confidence in the government spending the money wisely.

The government leaders hope that public outreach explaining the need and the importance of the public paying its fair share will change voters’ opinion. They likened it to the 1/8 cent sales tax for library services approved by 68 percent majority of the Solano County voters in 1998. At that time voters were promised more books, more hours and more services for young people — the library system delivered on that promise. The tax would end and have to be renewed 16 years after its inception. Voters returned to the polls in 2012, the middle of the great recession, where 80 percent majority of the voters in Solano approved the sales tax extension.

Transportation leaders point to need for funding changes

By Kevin W. Green
April 25, 2015

FAIRFIELD — A trio of elected and appointed officials agree: Changes are needed in transportation funding and now is the time to make those changes.

That point of view was shared Friday during a Solano Economic Development Corporation breakfast.

Assemblyman Jim Frazier, chairman of the Assembly Transportation Committee, was joined on stage by Supervisor Jim Spering and Solano Transportation Authority Executive Director Daryl Halls.

Each pointed to cuts in several funding sources as leading to what they described as the need for action.

Frazier spoke of recent action by the state Board of Equalization to change how money paid at the gas pump is divvied up. Spring and Halls said those cuts reduce funding to Solano County for local transportation projects.

The trio agreed it will require a unified effort and the support of the public to address transportation issues on the local level. They acknowledged it will take some work to gain the support of voters. Frazier pointed to actions by lawmakers in Sacramento as fueling a lack of support. He said the state Department of Transportation must be fixed first.

Halls agreed with Frazier, pointing to a need to regain the public’s confidence in government spending.

Frazier said his transportation funding proposal represents substantial spending, and that this is the year to make it happen.

“Our approach will be to spread the pain,” Frazier said of his plan. “We’ll use a portfolio of options to raise money, so that nobody bears the full brunt of the impact. I’m pushing for a ‘go bold or go home’ approach. And for those of you who don’t know me, I won’t go home until we get what we need to accomplish this goal.”

Frazier wants to encourage public-private partnerships. The state needs to get shippers, manufacturers and businesses involved, he said. The state also needs to encourage private enterprise to make capital investments in transportation systems, he said.

Spering said the growing economy will turn attention to issues with area roadways. During the recession, everybody had the tendency to look the other way as streets and roads were not getting fixed, he said. Now that the economy is getting better, the pressure is being put on the system and it’s deteriorating, he said.

The elected officials spoke of a balanced approach to transportation funding that involves federal, state, regional and local tax dollars.

Spering said the regional approach features a “fix it first” philosophy. For the next 25 years, 88 percent of total spending through the Metropolitan Transportation Commission is scheduled for fixing and maintaining the system, he said.

“You cannot build new projects on a crumbling foundation,” he said.

Reach Kevin W. Green at 427-6974 or kgreen@dailyrepublic.net.

This version corrects the spelling of Supervisor Jim Spering’s last name in the penultimate paragraph.

Transportation funding topic of next Solano EDC breakfast

The Solano Economic Corporation monthly breakfast will focus on “Transportation Funding ... Running on Empty” with keynote speaker Assemblyman Jim Frazier, D-Solano.

Frazier is the assemblyman for the 11th District and is the chair of the California State Assembly Committee on Transportation.

The April 24 event begins with registration from 7:30 to 8 a.m., followed by breakfast and the program from 8 to 9 a.m. at the Hilton Garden Inn in Fairfield.

The cost is $25 for Solano EDC members and $35 for non-members.

Complimentary tickets are available, varying on Solano EDC member level.

Notify Solano EDC of cancellations as no-shows will be billed. To register, call 864-1855 or e-mail pat@solanoedc.org.

Make checks payable to/mail to Solano EDC, 360 Campus Lane, Suite 102, Fairfield, CA 94534. To pay by Visa/Mastercard call the office.

The breakfast is sponsored by NorthBay Healthcare and Travis Credit Union.

North Bay Business Journal - Solano’s Icon preparing for takeoff

Monday, March 16, 2015, 7:00 am

Solano’s Icon preparing for takeoff

By Gary Quackenbush, Special to the Business Journal

Kirk Hawkins, founder and CEO, Icon Aircraft at the new Vacaville manufacturing plant during an open house May 14, 2014. (Icon Aircraft)

FAIRFIELD — Reinvesting in agriculture, and commercial expansion among the county’s seven cities in 2014, topped the agenda at the 32nd annual meeting of the Solano Economic Development Corporation earlier this year in Fairfield.

As evidence of continuing growth, guest speaker Kirk Hawkins, founder and CEO of Icon Aircraft in Vacaville, provided an update on the production of its initial A5 amphibious sport and recreation model with first customer deliveries planned later this year, saying that Icon eventually will have a $350 million economic impact on the region.

The first Icon Aircraft production planes are currently undergoing flight verification testing, and 20 of its A5 amphibious light sport aircraft are scheduled to roll off the Vacaville production floor in 2015, following the completion of construction at the facility in August, Hawkins told the meeting audience.

He praised Solano for its business-friendly environment.

“Solano County is a great center for sports enthusiasts with amazing terrain, nearby lakes, year-round flying weather and proximity to world-class destinations,” he said. “The region wanted us and we wouldn’t be here without you. There is a strong labor and talent pool in the area, and we can also pull from the Bay Area’s design and technology community.”

The company has received more than 1,250 aircraft deposits, representing nearly $300 million in backlog. By comparison, Tesla Motors had approximately $100 million in order backlog just prior to its production start, Hawkins noted.

“The idea of democratizing and humanizing flying for sports enthusiasts originated when I attended Stanford University eight years ago,” said the former pilot of F-16 U.S. Air Force fighters and American Airlines 767 jumbo jets.

“The Federal Aviation Administration recognized that there were barriers to flying involving extensive training and flight time experience required for commercial aviation licensing, and established a new sport pilot license as part of its general aviation category allowing the market to grow,” he said.

This new FAA rule change transformed the industry and reinvented the category, allowing flying to become a personal, recreational and lifetime pursuit. This license takes half the time, 20 hours compared with a 40 hours for a private pilot license.

“We want to scale our solution, not scale problems that may be found along the way,” Hawkins said. “That is why we’re starting production with only 20 aircraft this year, rising to an estimated 400 deliveries in 2016 and eventually up to approximately 1,000 aircraft annually in the future, as we establish global awareness and a brand presence in the marketplace.”

Hawkins said there is “deep and pervasive global interest. Some 30 percent of our customers today are outside the U.S., and there is an aviation gold rush in China equal to that in the states.”

Icon has 100 employees. The workforce is expected to ramp up to 500 within the next year and a half.
Currently, Icon is based in Los Angeles, and research, development and production is in Tehachapi. In the third quarter of this year, all these functions will be consolidated in Vacaville when construction activities are completed.

“Flying is fairly easy at the stick-and-rudder level,” Hawkins said. “There is widespread motivation to fly as part of our pursuit of freedom and adventure — which is innate to human nature — creating an emotional connection. … People have fallen in love with our product.”

Icon A5 details

Base price: $189,000
Prerequisite: FAA medical or valid driver’s license
Top air speed: 120 mph (105 knots, 194 kph)
Takeoff speed: 60 mph
Takeoff: 750 feet on land, 800 on water
Range: 300 nautical miles
Altitude limit: 10,000 feet for sport pilots
Flight plan: Not required
Mileage: 20 miles/gallon, aviation or automobile gas.
Engine: 100-horsepower, four-cylinder Rotax 912iS
Maximum takeoff weight: 1,510 lbs.
Useful load: 430-450 lbs., depending on options
Training: 14 days for A5 customers and new pilots or much shorter for those with existing experience. Training beyond the sport license will be added later. Sport pilots can fly only in daytime, with good weather conditions and clear of controlled airspace, unless additional training is received.
Cockpit: Two-seat, sports car-style with Garmin 796 GPS navigation, VHF radio, transponder, intercom and USB music port
Wings: Foldable for trailer transport (custom trailer optional)
Steering: Water rudder, retractable landing gear and Seawings platforms for easy access and water docking
Safety: Spin-resistant airframe, BRS complete airframe parachute, angle-of-attack gauge, LED landing and taxi lights

Other Solano developments

‘Substantial’ agribusiness reinvestment

The county added more than 1.5 million square feet of new commercial and industrial space last year, with wine production, storage and distribution facilities leading the way, according to Colliers International market data presented by Sandy Person, EDC president.

Solano had a 9 percent vacancy rate last year, but that is now down to 6.9 percent (with only 2.1 percent in Vacaville). Unemployment is also down from 7.4 percent a year ago to 6.1 percent in December — with Benicia having the lowest jobless rate of 3.7 percent followed by Dixon, Rio Vista and Vacaville in the 4 percent range, according to the state Employment Development Department.

“There has been a substantial reinvestment in our agriculture infrastructure. Superior Farms, the largest meat packer on the West Coast, is modernizing and expanding, and 4,000 acres of row crops in the county are being converted to walnuts and almonds yielding higher market commodity prices while also increasing land values.”

She said last year “we celebrated the Caymus Vineyards expansion, and the Suisun Valley Farm to Market project featuring a series of Class II bike and pedestrian routes connecting residents to agribusinesses.”

In addition, access to premium grapes and water fueled the purchase by Gallo of two local wineries and vineyards, Ledgewood Creek and Winterhawk.

Fairfield

A highlight for Fairfield last year was Buzz Oates Development’s new Solano Logistics Center, occupied by Saxco International and Encore Glass bottle suppliers.

The current industrial vacancy rate in Fairfield is 3.5 percent. Wine-related businesses now occupy more than 2.5 million square feet of such space, including newcomer Guala Closures.

The Wiseman Co.’s Westside Professional Center II at 2470 Hilborn Rd. off Interstate 80 was the only speculative office building built in 2014.

Suisun City

Suisun City’s Wal-Mart Supercenter is set to open this spring with 300 jobs and be a “significant” source for capturing a portion of the annual $77 million in sales tax dollars needed for city services but are leaking to other communities, according to Person.

The new $700,000 train depot improvement project, to begin construction in 2015, is designed to modernize the region’s commute center for rail and bus services.

Vallejo

The city of Vallejo has two new attractions, the Mare Island Brewing Company Tap Room in the Vallejo Ferry Terminal and the refurbished 1910 Lighthouse event venue at Glen Cove Marina.

The $3.7 million expansion and remodeling of Medic Ambulance facilities has led to an increase from 45 employees and 10 ambulances in 1993 to 220 employees and 55 ambulances today.

Last May, Mare Island Dry Dock was awarded a $5.1 million U.S. Coast Guard contract for dry dock services and ship repairs for the icebreaker Polar Star.

The city of Vallejo also released a request for qualifications (RFQ) on July 18, 2014, seeking qualified respondents to develop all or part of more than 150 acres at the north end of Mare Island.

The city received 11 responses and is currently evaluating three industrial-focused proposals.

Benicia

The Sacramento Bee’s California Traveler published a color feature on Benicia, and Diablo Magazine named the city of Benicia as the “Best of the East Bay for First Street Retail and a Late Night Spot.” NerdWallet.com also named Benicia as a “Best City in Northern California for Young Families,” enhancing the city’s tourism and residential appeal.

In its first two years, Benicia’s Business Resource Incentive Program (BRIP) helped 20 businesses achieved annual savings of over $200,000 in reduced energy costs with yearly reductions of 267 metric tons of greenhouse-gas emissions.

The city also received the League of California Cities Helen Putnam Award for “Excellence in City-Business Relations.”

In response, the Benicia City Council allocated an additional $500,000 to the program, creating BRIP2.

Rio Vista

In Rio Vista, the California Department of Water Resources and the U.S. Fish and Wildlife Service are considering two sites for a new Fish and Wildlife Service Technology Center, either at the Rio Vista Army Base or at a site across from the Port of Stockton. Final site selection is set to be completed by fall 2016. This center will create an estimated 160 jobs and involve some $85 million of state and federal spending.

Rio Vista was also awarded the 2014 Solano Transportation Authority Award in November for “Rio Vision.” It was a Rural/Urban Design Assistance Team project via the American Institute of Architects that involved a community workshop.

Dixon

Dixon has added a Brookfield Cottages housing community with 101 units at Parklane. Ms. Person said the Brookfield project is part of the most active building permit period seen in Dixon since 2007.

Vacaville

Vacaville continues to expand with more food retailers and other tenants at The Nut Tree: China Stix, Fuji Sushi, Pieology Pizza, Buckhorn BBQ, Firehouse Subs, Noodles & Co., The Habitat Burger Grill, Travis Credit Union and Verizon Wireless. Vacaville Premium Outlets welcomed North Face Outlet, Oakley Vault, Seven For All Mankind, Kate Spade New York, Bass Shoes, Starbucks, Express, and Toys ‘R’ Us Express. Other new businesses include Journey Coffee and Chick-Fil-A.

The incoming EDC Chairperson is Laura Kuhn, Vacaville city manager. She succeeds Immediate Past Chair Patsy Van Ouwerkerk, former CEO of the Travis Credit Union.

Economic Index highlight of Solano EDC breakfast

By Melissa Murphy, The Reporter, Vacaville

Posted: 03/13/15, 8:53 PM PDT |                                    

                                 

Solano County has made some “profound progress” and the business community wants to see that momentum continue.

Friday was filled with good economic news for the county during the monthly breakfast of the Solano Economic Development Corporation.

Congressman John Garamendi, D-Solano, stopped by and commended the business community for enduring the recession and coming out back on top.

“Growth and jobs in our community is absolutely essential,” he said and added that it was great to see the competing business community working together for the good of the county.

Economic Forensics and Analytics Principal Robert Eyler, the morning’s guest speaker, said he had “decent news” to share and that Solano County has gone from recovery mode to expansion mode.

The full 2014 Solano County Index of Economic Community Progress is available online at www.solanocounty.com/economicindex.

Eyler explained that the recovery momentum slowed in 2014, but that is a sign that continued expansion will linger.

A highlight that excited those attending the breakfast is there is a rise in graduation rates in Solano, more than the state of California. Additionally, more students are ready for University of California and California State University than any school year since 2007-08.

Eyler noted that when the economy improves, children stay in school longer because they’re not needed to earn an income for the family.
He also added that the county needs to stay business friendly since the Bay Area is the most important region in the world for now, a plus for Solano County.

The county also needs to be aware of, according to Eyler, the aging population.

“Don’t forget about our seniors,” he said.

In 2014, Solano expanded with 2,300 new jobs, a growth of 1.8 percent and the county’s seasonally-adjusted unemployment rate is at 6.9 percent as it begins 2015.

Additionally, the Index shows that “with a growing economy and reduced government resources, the private sector is becoming more of an engine for growth” in the county.
All standards of living measures are rising in the 2013 data and suggest that 2014 and 2015 also will be years of rising living standards for the county.

While base employment fell a bit in 2014, locally serving jobs grew, a “sign of economic expansion,” according to the Index.

The Index also pointed out that the county is “becoming more diversified in its number of employers/economic base with the private sector leading the way.”