Category: Economy

Central CaliforniaEconomy
By Faughn Economy • Top Stories 0 Comments

Central Valley cities, counties lead California in population and housing growth

On May 1, the California Department of Finance released a report highlighting the state’s 108,000-person increase during the 2024 calendar year.

In addition to the 108,000-person increase, California also saw an increase in K–8 enrollment of 13,890 students, a nearly 25,300-person increase in the 65-and-older population and the natural increase (births minus deaths) contributed 114,805 people, up almost 10,000 from 2023. The Central Valley followed these trends—Fresno County’s increase of 0.9% put it at the third-highest rate in California, while Tulare County’s 0.7% increase put it in sixth.

Lassen County, located in northeast California along the Nevada border, had the highest increase rate, at 2.9%.

At 2.7%, Madera County had the highest housing growth among all counties. Kings County was the eighth-highest county with a 1.2% increase. The state average housing growth for all counties was 0.8%.

With a city population of 557,032, Fresno was the fifth most populous city in California, behind Los Angeles (3,835,263), San Diego (1,408,937), San Jose (979,415) and San Francisco (842,027). Bakersfield was ninth with a population of 419,238.

Hanford and Tulare were among the fastest-growing cities with populations over 30,000, with increases of 2.3% and 2.0%, respectively.

Fresno County’s Huron and Firebaugh both made the top 10 for multi-family housing unit growth. Huron was fifth with a 13.73% growth, while Firebaugh was 10th at 9.81%.

https://thebusinessjournal.com/central-valley-cities-counties-lead-california-in-population-and-housing-growth/?mc_cid=47909cbf57&fbclid=IwY2xjawKTUdFleHRuA2FlbQIxMQBicmlkETFEQ3p6WXB5U0x2VE9JRmJVAR5UGJn3VvA_zQujEXiTcHxmxrnhKlT4jDsRAXdIOdDSASYekJGLLSlm-KMdwA_aem_XiAjxnVejOjnVtlzoOyBrA

By Faughn Economy • Education • Food Processing • Top Stories 0 Comments

‘Overnight success that has taken 30 years’: Wonderful’s Resnick jokes with audience at Shafter ribbon-cutting

His success in business is evident across the southern Central Valley, in sprawling ag fields and in a large distribution hub in Shafter. But it’s not often Stewart Resnick is seen at large events in Kern County. Late Thursday morning, though, the co-owner of Los Angeles-based The Wonderful Co. walked up, stood before an audience of more than 200 people just north of 7th Standard Road and took a moment to adjust the microphone downward. Then he opened with a joke.

Resnick, diminutive in a blue button-down, long-sleeve shirt and jeans, said normally when he comes to such events people look around and say, “You’re Stewart Resnick?”

“I say, ‘I used to be 6 foot 4. My competition came and beat me into the ground,'” he said.

He’s humble, folks. Even when surrounded by dignitaries celebrating another one of his company’s large investments in the local economy. Resnick had come to join them to mark the opening of Wonderful’s new Amenities Center, a gleaming new complex with a tech training center, office building and subsidized restaurant with an urgent care center still to come. The center serves as the welcoming heart of the Wonderful Logistics Center, which the company proposes to almost double in the years to come. If the City Council approves, the company hopes also to build thousands of new homes for workers and their families.

Resnick called the already large development “one of our most ambitious projects,” a state-of-the-art facility populated by Fortune 500 companies on land where three decades ago there were only orchards.

“This is an overnight success that has taken 30 years,” he quipped after thanking those in attendance for sharing the day.

“Now let’s go show the world what Shafter and the Central Valley can do!” he said in closing.

Wonderful has already had a big impact on farming communities in the valley portion of Kern County, especially in Lost Hills and Delano, where in addition to being a major employer, the company has opened charter academies, wellness centers and more. Shafter is the next big focus. If Wonderful moves forward with an expansion of the distribution-center hub, the logistics center’s employment base is expected to expand over time from about 13,000 to 50,000. Housing units the company proposes to build would expand Shafter’s population by about 40%. The Amenities Center is sort of a precursor to those developments. Its training center works in partnership with Amazon and Bakersfield College to introduce job-seekers to tech-oriented warehouse jobs. The office building boasts numerous art pieces, and the restaurant serves healthy meals at relatively low prices.

Thursday’s gathering drew representatives of many of Kern’s most prominent business, government and educational organizations, many of whom accepted offers to tour the new buildings. Resnick’s humility was matched by that of invited speaker Supervisor David Couch, who said he was coming from a local government perspective when he told the audience, “We can’t do anything, and I mean anything, until you all make something, provide a service.”

“The revenue that local government gets comes because you all come to work every day,” Couch said. “It all starts because somebody … took the risk to invest their money in this community.”

Shafter Mayor Chad Givens was up next. He said the city prides itself on how business operates in Shafter and how it is able to move in operators as fast as possible.

“We’re a very business friendly city and we’re thankful for that,” he said before expressing gratitude to Wonderful for its work in the city.

Former City Manager John Guinn, now Wonderful Real Estate’s executive vice president and chief operating officer, told the crowd Resnick and his wife, Lynda Resnick, have shown their commitment to the families of the Central Valley. In his experience, they want nothing more than for the region to become a strong, vibrant place to live.

“Everything they talk about, they actually do,” he said. “That’s uncommon.”

https://www.bakersfield.com/news/overnight-success-that-has-taken-30-years-wonderfuls-resnick-jokes-with-audience-at-shafter-ribbon/article_69e65582-0b2f-4266-bec6-8130c9954d6e.html

By Faughn Economy • New Developments 0 Comments

Dignity Village opens in Modesto with 42 tiny homes. A place to stop the downhill slide

A 42-unit complex providing interim housing for people battling homelessness and other challenges has opened in Modesto.

Ceremonies were held Thursday for Dignity Village, at the corner of Ninth and E streets, and the first residents will start moving in this weekend.

Officials said the 42 tiny houses will provide a safe and comfortable home for adults while they recover from substance use and mental health disorders. The housing program will include services and support to help them with their individual challenges.

Stanislaus County and the city of Modesto were partners in the project, which also engaged community groups in preparing the units for the first tenants. Volunteers and local groups adopted cabins and, on March 22, decorated the small units without knowing who would occupy them.

A team of case managers and social workers from the Stanislaus County Public Defender’s Office adopted a cabin and brought in toiletries, pictures, curtains, pillows and a welcome mat.

The unit was fresh off construction, so the team first wiped away the dust on the ceiling and the floor.

“If you have been on the streets for a long time, it’s a rough transition at first,” said Shelli Margarite, a client support manager who posed for a picture with co-workers at the cabin. “We really wanted to make it a home.” Mayor Sue Zwahlen expressed hope that Dignity Village can make a difference as the city grapples with the homeless crisis. “Having a roof over their heads gives them a real chance for recovery and hope for a better tomorrow,” Zwahlen said.

The county and Modesto collaborated with Dignity Moves to develop the complex on city-owned property after Stanislaus County was awarded more than $3 million in state Behavioral Health Bridge Housing Program funds in June 2023.

The fenced complex has toilets, showers, dining areas, offices, laundry, social areas and a dog run. Residents will stay in the interim housing for three to six months until ready for the next step to permanent housing.

Ruben Imperial, director of county Behavioral Health and Recovery Services, said those participating in Community Assistance, Recovery and Empowerment Court will have priority for some housing units as clients comply with treatment plans for mental disorders.For participants in CARE Court, the state program known for court-supervised treatment of adults with schizophrenic disorders, access to housing is considered essential. But Dignity Village also will house adults getting substance use therapy through Senate Bill 43 and other behavioral health programs.

https://www.yahoo.com/news/dignity-village-opens-modesto-42-201148720.html?utm_source=chatgpt.com&guce_referrer=aHR0cHM6Ly9jaGF0Z3B0LmNvbS8&guce_referrer_sig=AQAAAGEoMKQD4h0ZeuRcxvTURNdyW5vt6z6tHIPppFtbhnpCE_YF0uBThuR3NQFmvb5dvyqM6pRZvuijWQmS721MampW8DFUyvaNSZup19rzWBGyKRuCMOCHHyuKsfL7KbQkTLCy494QKqENb09CkCmC1K9xe9h_HiwHteSkd63tQMYC&guccounter=2

By Faughn Economy • Tourism 0 Comments

City of Hanford receives $15.5M grant from DOT

The City of Hanford has announced that it is a recipient of a $15.5 million grant thanks to the U.S. Department of Transportation (DOT). The grant award is part of the competitive Rebuilding American Infrastructure with Sustainability and Equity (RAISE) program through the DOT.

The City’s Fast Track Hanford project was chosen as one of 109 projects to receive a 2025 RAISE Round 1 award. The funding will be used to improve the downtown area between the Amtrak Station and 10th Avenue. The project also includes China Alley and Civic Center Park, with construction estimated to begin in March 2028.“The project will include roadway and intersection safety improvements, ADA upgrades, two bus stop improvements, wayfinding signage, micro-mobility amenities, lighting, stormwater improvements, electric vehicle charging stations, and electronic informational displays,” said the City.

The City aims to use the RAISE program funding to improve traffic and pedestrian safety in the downtown corridors by narrowing and reducing vehicular lanes, changing street parking from parallel to angled, and enhancing street lighting, among several other improvements.

“This is a transformational project that will provide easier and safer access to transportation options in the City, create a more walkable and bikeable downtown through various infrastructure improvements, and in combination with other efforts laid out in our five-year strategic plan, will lead to a more vibrant downtown atmosphere for residents, businesses and visitors,” said the City.

Three of the Hottest New Hotels to Book for Food. The project consists of more than 30 improvements beginning at the Amtrak Station, spanning to 10th Avenue, and branching out to encompass three sides of Civic Center Park.

The City has identified several measures to meet its goal of improving safety including a pedestrian-only section between Douty Street and Harris Street, noting that all upgrades will match other sections of the China Alley corridor except all vehicular access will be restricted.

Through the Fast Track Hanford project, the City learned that China Alley technically spans the block between Green and White Streets and is not the entire alleyway, as shown on Google Maps.

The project also ties in with the East Lacey Improvement Project and the Kings-Tulare High-Speed Rail Station Transit Oriented Development Project, which according to the city’s website “is a planning effort to identify recommendations for connecting transit services from downtown Hanford to the Kings-Tulare High-Speed Rail (HSR) Station… and will result in a planning document enabling the City of Hanford to promote transit-oriented and economic development and encourage context-appropriate development in areas surrounding the Kings-Tulare HSR Station…and is an early step in the longer-term shaping of Hanford to integrate HSR development for a positive and equitable outcome.”

On Jan. 10, the DOT announced it had awarded over a billion dollars in RAISE funds to 109 projects across the country, but received 195 qualified applications requesting a total of nearly $2.4 billion. The department reported that a large percentage of the grants selected in the first round of funding support areas defined as historically disadvantaged or of persistent poverty. The DOT’s RAISE grants are also awarded to invest in transportation infrastructure projects that would otherwise not receive the funding needed.

The project consists of more than 30 improvements beginning at the Amtrak Station, spanning to 10th Avenue, and branching out to encompass three sides of Civic Center Park.

The City has identified several measures to meet its goal of improving safety including a pedestrian-only section between Douty Street and Harris Street, noting that all upgrades will match other sections of the China Alley corridor except all vehicular access will be restricted.

Through the Fast Track Hanford project, the City learned that China Alley technically spans the block between Green and White Streets and is not the entire alleyway, as shown on Google Maps.

The project also ties in with the East Lacey Improvement Project and the Kings-Tulare High-Speed Rail Station Transit Oriented Development Project, which according to the city’s website “is a planning effort to identify recommendations for connecting transit services from downtown Hanford to the Kings-Tulare High-Speed Rail (HSR) Station… and will result in a planning document enabling the City of Hanford to promote transit-oriented and economic development and encourage context-appropriate development in areas surrounding the Kings-Tulare HSR Station…and is an early step in the longer-term shaping of Hanford to integrate HSR development for a positive and equitable outcome.”

On Jan. 10, the DOT announced it had awarded over a billion dollars in RAISE funds to 109 projects across the country, but received 195 qualified applications requesting a total of nearly $2.4 billion. The department reported that a large percentage of the grants selected in the first round of funding support areas defined as historically disadvantaged or of persistent poverty. The DOT’s RAISE grants are also awarded to invest in transportation infrastructure projects that would otherwise not receive the funding needed.

https://hanfordsentinel.com/news/local/city-of-hanford-receives-15-5m-grant-from-dot/article_1d82d572-d772-11ef-80e7-8f3e3ef51fbe.html

By Faughn Economy • Quality of Life 0 Comments

Tiny homes for the homeless now open in Madera

A ribbon cutting ceremony was held Monday for the Madera Rescue Missions’s Triage Center. The Triage Center consists of six pre-manufactured tiny homes located on the Mission’s 7,600-square-foot lot. The county plans to build more in the future to accommodate those experiencing homelessness like resident David Campos. Campos said it was around 2020 when times became really tough for him.

“During Covid, we had trouble paying our bills,” Campos said.  “So, I went to several places, you know, trying to find a place.”

Campos moved around from different places in Fresno and eventually landed at the Madera Rescue Mission. On Monday, city and county officials held a ribbon cutting ceremony to celebrate the opening of the tiny homes and how they will be benefiting those in the county, like Campos. The project was funded through the U.S. Department of Housing and Urban Development (HUD), Community Development Block Grants, as well as ARPA funding.

https://www.yourcentralvalley.com/news/local-news/tiny-homes-for-the-homeless-now-open-in-madera/?mc_cid=39a7626c23&mc_eid=c4726fd3b7

By Faughn Economy • New Developments 0 Comments

Massive Visalia Industrial Park project ahead of schedule, no deal with Amazon

CapRock Partners, a Los Angeles based industrial real estate investor, announced this month that their Central Point III complex in Visalia at 1.27 million square-feet is ahead of schedule for construction.

Building 1, the first phase of a 2.7-million-square-foot, four-building industrial complex, has completed the tilting of the building’s concrete panel walls. Moving ahead of its original development timeline, Building 1 is now slated for completion in summer 2024, probably July. The building sits on 75 acres within CapRock Central Point III, part of CapRock’s larger 5-million-square-foot Central Point master plan in Visalia.

Bob O’Neill, senior vice president at CapRock Partners says the building is “designed to serve Fortune 100 corporations seeking a state-of-the-art industrial complex accessible to a large percentage of the West Coast’s population, CapRock Central Point III is drawing interest from leaders in logistics as well as food processing and manufacturing.”

Despite  rumors to the contrary, O’Neill says there is no lease in place with Amazon – the company that leased CapRocks other two large buildings constructed in the industrial park in the past few years.But O’Neill is optimistic the building will be spoken for soon with California’s strong economy, busy ports and the trend to re-shore companies manufacturing back to the US.

Visalia’s increasingly essential role in California’s industrial warehouse market and the broader U.S. logistics supply chain is drawing prominent corporations looking to benefit from the city’s unmatched connectivity, abundant land at relatively lower real estate costs, and robust supply of educated workers. UPS, Amazon, Ace Hardware, Smuckers, VF Corporation, FedEx, and International Paper, and others, have already established locations within Visalia’s industrial area.

“Visalia is grateful for the investment that CapRock has made in our community,” said Visalia Mayor Brian Poochigian. “CapRock has done big projects and Building 1 at Central Point III is another success in the making. Our city’s location gives us a logistical advantage when it comes to connectivity. That, coupled with our business-friendly environment and growing industrial park, makes Visalia ideal for projects like this.”

Building 1, located at 4001 N. Plaza Drive, is easily accessible to major Central Valley transportation including air, rail and highways, including State Route 99, which runs through the Central Valley and connects to major interstates I-5 and I-80. CapRock Central Point III’s position will allow its future tenants to reach over 50 million customers with one-day ground shipping, making it one of the only locations in the U.S. capable of reaching as large of a population base within the short timeframe.

At completion, Building 1 will feature 40-foot clear height, 274 dock-high doors and two ground-level doors. The cross-dock building will include approximately 6,600 square feet of office space, ample power, ESFR sprinklers and 890 auto parking stalls.

With a fully secured fenced yard, the property will provide drive-around access, a truck court depth of 185 feet, dedicated truck circulation and 542 excess trailer parking stalls.

“CapRock Partners is an experienced developer and builder of large-scale industrial warehouse facilities,” said Mike Fowler, executive managing director at JLL.

“The firm’s talented team is bringing its capabilities and expertise to deliver a world-class complex that will improve the overall efficiency of the U.S. supply chain, serve leading corporations and provide local employment and economic opportunities for Visalia and the Central Valley.”

https://www.visaliatimesdelta.com/story/news/2024/01/24/visalia-industrial-park-project-ahead-of-schedule-no-deal-with-amazon/72323793007/

By Faughn Economy • Workforce 0 Comments

Governor Newsom today in Stanislaus County — previews 2025-2026 state budget and receives California Jobs First Plan for North San Joaquin Valley, including Ag contributions

What you need to know: Governor Newsom continued his statewide California Jobs First tour today to outline a first-of-its-kind, bottom-up economic vision for California’s future, receiving the regional plan from local leaders in the North San Joaquin Valley. The Governor also previewed toplines of this year’s state budget — a balanced spending plan that makes government more efficient, increases accountability, and improves the safety, health, and well-being of Californians.

Stanislaus County, California – Governor Gavin Newsom, as part of his ongoing statewide California Jobs First tour, today received the North San Joaquin Valley’s regional economic plan from community leaders representing San Joaquin, Stanislaus, and Merced counties. The plan is one of 13 regional plans that will make up the upcoming California Jobs First Economic Blueprint.

Governor Newsom also previewed his 2025-26 state budget proposal by outlining the state’s continued plans to support robust economic growth, high-paying jobs and career development, and strong accountability measures to address housing, homelessness, and mental health.

“California is not only dominating but paving the way for the future of jobs and the American economy, with local homegrown economic plans for every region of our state. With a balanced budget and key investments maintained for the upcoming fiscal year, we are well-positioned to continue the forward momentum we have created. California remains the standard bearer for our nation, and we’re looking forward to another strong year ahead,” said Governor Newsom.

The California Jobs First Economic Blueprint will guide the state’s investments in key sectors to drive sustainable economic growth, innovation, and access to good-paying jobs over the next decade. The complete Economic Blueprint will be released in the coming weeks, along with a grant solicitation for a portion of the remaining $120 million over three years in competitive funding to support “ready-to-go” projects aligned to the state’s strategic sectors, ensuring that every region across California continues to play a critical role in the sustainable growth of the world’s fifth largest economy.

Made up of ten key industry sectors, this framework will help streamline the state’s economic, business, and workforce development programs to create more jobs faster.  The state’s thirteen economic regions engaged more than 10,000 local residents and experts who collectively identified these sectors as key to driving local economies into the future.

Today, leaders in the North San Joaquin Valley region presented their regional plan to the Governor and provided information about their key economic sectors.

  • Advanced Manufacturing, including building materials, mobility technologies, and measurement and testing products
  • Clean Economy, particularly solar energy, green hydrogen, biofuels, and carbon management, an emerging sector with enormous growth potential, driven by the increasing demand for carbon capture and sequestration technologies.
  • Bioeconomy, a forward-looking sector that is transforming waste streams from biomass (such as agricultural and forestry residues, municipal solid waste, and food processing byproducts) into valuable bioproducts such as fuels, plastics, chemicals, solvents, fabrics, polymers, food additives, and alternative proteins.

A balanced budget and a more efficient government

Continuing to deliver key investments and responsible fiscal management, Governor Newsom previewed the toplines of his 2025-26 state budget proposal — a balanced budget that emphasizes fiscal stability and lean and efficient government. The full budget release, accompanied by a briefing led by the Department of Finance, is scheduled for Friday, January 10, 2025.

The Governor’s $322.2 billion proposal includes $228.9 billion in general fund spending. The proposed budget is fully balanced with no deficit and projects $16.5 billion in additional revenue above the 2024 Budget Act thanks to a stronger economy, stock market, and cash receipts. It includes savings from the elimination of 6,500 government positions, resulting in $1.2 billion in savings over two years, alongside operational efficiencies like reduced travel budgets, printing costs, and IT modernizations that further reduce costs by $3.5 billion.

While introducing no cuts to core programs, the proposal maintains transformative initiatives that include the full implementation of Universal Transitional Kindergarten (TK), expanded after-school and summer programs, and Universal School Meals.

Investments focus on education, economic growth, public safety, and accountability. The full Governor’s budget proposal will be released on Friday, January 10, 2025.

https://plantingseedsblog.cdfa.ca.gov/wordpress/?p=28513&utm_source=chatgpt.com

By Faughn Economy 0 Comments

Manteca Building Tops $2.477 Billion In 5 Years

Manteca construction — based on city issued permits — hit a record $757 million in 2024. The 5,205 permits included 1,306 new single family home starts and the Manteca Crossing shopping center anchored by what will be Manteca’s second Food 4 Less breaking ground at Atherton Drive and Airport Way. Keep in mind the figures represent only private sector construction activity.

If you toss in two major Manteca Unified projects that broke ground that include two-story classroom buildings at the East Union and Manteca high school campuses — along with several major city street projects, construction activity started in Manteca last year pushed the $850 million mark. That reflects just the value of the construction.

Assuming the 1,306 homes will reflect average selling price of new homes built in Manteca during 2023, buyers will end up spending $875 million collectively buying the homes started in 2024. The impact of the new construction — and the ongoing economic activity 1,306 new households — are even higher. Economists apply a 7-fold multiplier effect on the overall economy from every $1 in new construction.

That represents not just the wages that are spent paid to those who mine, produce, and build construction projects but also auxiliary benefactors such as jobs in mortgage lending, title offices, and such. Some of that clearly stays in the Manteca area. The real big impact locally is the ongoing annual income of the 1,306 new households and the effect it will have on the Manteca economy.

The median household income in Manteca was $89,000 at the start of 2024.

That’s said, the buyers of new homes tend to have higher household incomes.

Certain segments of Manteca south of the 120 Bypass based on tracking of mortgage data, reflects new neighbors where the household income exceeds $100,000. Taking a lowball assumption of $90,000 for the income of each new household that will occupy the 1,306 homes, the overall household income will easily top $117.5 million on an annual basis.

Granted mortgage payments plus taxes and utilities will eat up a good share of the $117.5 million. But beyond that spending for everything from food, gasoline, entertainment, home improvement, furnishing, clothing, and such makes its way into the local and regional economies. During the past five years, Manteca has issued 22,701 permits for everything from spas and swimming pools to massive distribution centers, and apartment complexes.

The overall figure is $2.477 billion. That includes $376 million in 2020, $391 million in 2021, $528 million in 2022, $424 million in 2023, and $757 million in 2024. To put that in perspective, it took 13 years for overall Manteca building permit activity to reach a combined $1 billion between 1998 and 2010. Manteca had a combined $1.18 billion just in the past two years. The record for the biggest permitted project in Manteca still stands. That was $180 million for the 500-room Great Wolf hotel and indoor water resort that opened on June 29, 2021.

https://www.mantecabulletin.com/news/local-news/manteca-building-tops-2477-billion-in-5-years/

By Faughn Economy • Workforce 0 Comments

MCITD Overview

The Mid-California International Trade District is strategically located in central California in Merced County, located just to the east and adjacent to Silicon Valley. Collocated with the Castle Airport, this location is advantaged by proximity and quick road and rail connections to San Francisco and the Bay Area and to key San Joaquin Valley urban markets such as Stockton, Modesto and Fresno. With immediate access to a labor shed of about 2.5M people and an extended labor shed of over 8M people, the MCITD is extremely well-positioned to accommodate a range of technical skill requirements.

On the site of a former Strategic Air Command Air Force Base, the MCITD is being transformed into a state-of-the-art master planned business environment for global business. The project site is a unique state of the art 2,000-acre multimodal industrial development that is designed to house about approximately 8 million square feet of modern technology-oriented industrial development.

The project’s underlying objective is to develop a next-generation eco-friendly Central California business environment due to its design, planned uses and streamlined connectivity to key supply chain points. Already home to over 60 tenants, including Google and the University of California-Merced, the project is designed to be a bustling hub of economic activity with about 10,000 people working onsite.

https://www.midcalitd.com/mcitd-overview/

By Faughn Economy • Quality of Life • Workforce 0 Comments

Studies focus on 3,400-acre development in Stanislaus County. Process raises some eyebrows

Salida’s 3,383-acre expansion plan is finally under environmental review to study traffic impacts, basic infrastructure needs, effects on wildlife, and the feasibility of city incorporation.

In 2007, the Salida Community Plan was an initiative proposed for a countywide vote, but county supervisors in a 3-2 decision that August approved the contents of the initiative, rather than putting it on the ballot. The plan included land use areas just north of Modesto capable of producing 27,800 jobs and 5,000 homes, possibly adding 15,000 residents.

By December 2007, the nation was in the grips of the Great Recession and a home mortgage crisis. The Salida Community Plan remained on the books during the recovery years. Today, there’s renewed interest in development, such as the 145-acre Scannell Properties project, proposing 2.5 million square feet of warehouses, distribution centers and manufacturing at the northwest corner of Kiernan Avenue and Dale Road.

County leaders agreed early last year that a programmatic environmental study was needed to consider the overall impacts of the Salida plan, before individual projects like Scannell can move forward.

In July, county supervisors approved a $900,000 agreement for Sacramento-based Ascent Environmental to prepare the overarching environmental study and also include a feasibility analysis on city incorporation of Salida. One purpose of the 2007 initiative was a larger tax base for Salida and fiscal self-sufficiency for the unincorporated town of 14,800 residents.

Questions of conflict of interest have arisen because Ascent also is preparing an environmental study looking at the specific impacts of the Scannell project.

County Counsel Thomas Boze said Tuesday there is no conflict. Ascent is capable of doing objective work for both studies. When a county hires outside consultants to prepare an EIR under the California Environmental Quality Act, the consultants are essentially assisting county staff members in completing the work, Boze said.

The developer is paying for costs of the study, but the county retains control over the document, Boze said. “The document is ours,” Boze explained. “The report has to be approved by the Board of Supervisors.”

In another legal question, the county contracted with Ascent for the Salida Plan EIR without first requesting proposals from consulting firms. A county staff report justified the decision, noting that overlapping technical assessments are needed for both the Salida Plan and Scannell project environmental studies, and Ascent was already conducting some of that work.

“It is not time or cost effective to bring in another consultant that will be duplicating work already being performed,” the county report said.

Sean McMorris of Common Cause California, a nonprofit focused on promoting accountability in government, said the downside of the RFP process for local governments is it takes more time. But the process serves to build trust with the public.

“The upside is: They can get the best deal and also can set parameters for participants in the RFP,” said McMorris, the transparency, ethics and accountability program manager for Common Cause.

McMorris said he didn’t think it’s illegal for the same consulting firm to prepare the programmatic EIR while handling the environmental work for a project in the Salida development area. But the public may think something is awry.

“We hope that people who do EIRs are ethical and don’t have predisposed outcomes before they come in,” McMorris said. “For the people who do these EIRs, it is a business. They want to have happy clients so the clients use them over and over again.”

Jessica Babcock, senior project manager for Ascent, said at a Salida Municipal Advisory Council meeting in late September the project EIR is being prepared under a three-party agreement with the county, Scannell Properties and Ascent Environmental. She said both of the environmental studies will contain unbiased information.

Study considers a variety of issues

The programmatic EIR is looking at larger planning considerations and ways to address overarching issues of developing the 3,383-acre Salida expansion.

Babcock said there’s no clear picture on whether to expand the wastewater treatment plant of Salida Sanitary District or build new facilities to serve Salida’s expansion area. The study also will consider needs such as a Sheriff’s Department satellite office combined with a fire station.

A number of “sub-consultants” are working on the program EIR, including: Fehr & Peers, doing traffic modeling; West Yost Associates, looking at water and wastewater infrastructure; and Economics & Planning Systems, analyzing incorporation feasibility.

County Supervisor Terry Withrow has said the Salida Community Plan could be a possible location for an innovation campus supporting the county’s bioindustrial initiative.

The Salida Plan, situated along the Kiernan Avenue traffic corridor, between Sisk and Dale roads, also could attract proposals for distribution centers, raising issues of air pollution and whether the lower pay scale of that industry is desirable for the county.

The community plan includes land designated for 5,000 homes and about 1,260 acres for industrial development, 490 acres for business parks and 280 acres of commercial uses.

Timeline for completing EIR

A draft environmental report should be ready for release in the spring. That will trigger the start of a 60-day period for public comments on the study’s findings. The final EIR, with responses to public comments, will be completed roughly a year from now.

The final study requires approval from the Board of Supervisors.

Katherine Borges, a Salida resident, said at the September Salida MAC meeting that new projects should not use septic tank systems because of the high water table in Salida.

Brad Johnson, a Salida municipal council member, asked skeptically if any other area of the county has a plan for 27,800 jobs.

To cover costs of the program EIR, the county will pull $682,785 from the General Fund, $291,220 from the Salida Planning Fund and $75,000 from the Salida Incorporation Study fund balance. As the Salida plan is developed over time, the county will collect fees from individual development projects to reimburse for the General Fund money.

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