October 2019 Economic Development News
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From Our Executive Director
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Every October, AEDC holds a meeting for our Board of Directors after the approval of our annual Audit. In board meetings, we often focus on the project in front of us, so it's great to bring everyone together at least once a year to celebrate where we've been and where we're going. If you couldn’t make this year’s meeting, please enjoy the highlights we have included below.
Are you happy I didn't start off talking about the power shut off (PSPS)? It's been a relentless topic of conversation, for good reason. For some within our region the threat of fire, or even the immediate danger of existing fires, the PSPS is a signal that their homes and businesses are at extreme risk. For those of us in Humboldt County, the risks come from the shut offs themselves. Many of our businesses have been affected and it looks like this will become a regular occurrence, I've heard stories that local businesses have responded by taking immediate measures to mitigate risks by doing things like buying generators. Have you thought, yet, about the long term business plan and policies for future outages? It's not a bad idea. When the rain finally does come, the threat will drop for these shut offs, but we could still lose power due to storms. We have some suggestions below.
If your disaster plan includes upgrades to your facility, new equipment or any other expenses, remember that AEDC has a number of loan opportunities to make sure that your business can operate as effectively as possible, with loans as small as $5,000.
-- Ross
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Client Highlight : Richard's Goat Tavern & Tea Room
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What started as a bid to save a dying breed of business has evolved into another unique and thriving enterprise in Humboldt County, thanks in part to the financial support of AEDC.
Merrick McKinlay had been an employee of Video Experience (VX) in Arcata for 6 years when VX announced it was closing. Aimee Hennessy had just graduated from HSU with a BA in Film Production. The two partnered in 2009, secured a loan from AEDC to buy the VX inventory and opened La Dolce Video, a video rental store focusing on hard to find arthouse and cult films.
“While we managed La Dolce Video, we frequently heard complaints from customers about there no longer being a place to watch new independent films in Arcata,” Hennessy remembered, “We also frequently had people coming in and asking what happened to the tea room that used to be in our space.”
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These questions inspired the two to create Richards' Goat Tavern & Tea Room, a craft cocktail bar and tea room and the Miniplex with an attached theatre and event venue (financed by AEDC and a kickstarted campaign), in July 2015. “We wanted it to be a space where people who don't necessarily go out to bars would be as comfortable as people who do, and everyone felt welcome.”
In 2016, one of the partners’ employees bought La Dolce Video so the pair could focus on Richard’s Goat, which now boasts 9 employees. “We plan to continue bringing the kinds of independent films and documentaries to town that we feel Arcata and the surrounding areas will appreciate the most, and bringing bands that would normally play much larger venues to the intimate space of The Miniplex,” Hennessy said, adding that they recently expanded the sound system and plan to make more improvements to the theatre.
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Workforce Development in Humboldt
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Eureka Chamber Business & Education Workforce Forum
About 50 people attended the Business & Education Workforce Forum on Tuesday Oct 22 at the Sequoia Conference Center to learn about workforce services for employers and job seekers in the region. The event was hosted by the Eureka Chamber of Commerce and sponsored by Sequoia Personnel Services, Humboldt County Office of Education, Redwood Capital Bank and AEDC.
““We always love helping our community learn about the many, many workforce resources available to them,” said AEDC program director and event co-organizer Susan Seaman. ”Some people came to share and others to listen but they were all there to learn about what's happening in Workforce Development in Humboldt County. “
The event included information about more well-known workforce development/ educational institutions such as Humboldt State University, Humboldt County Office of Education and College of the Redwoods as well as presentations from those serving individuals re-entering the workforce, including those who have disabilities or have experienced homelessness.
“This event offered a lot of information, and was a great reminder of all the work that is being done out there to prepare our workforce,” Seaman added.
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Cassie Kemic, Dept of Rehabilitation
Tabatha Pittman, TPP/Workability
Sierra Braggs, Redwood Coast Regional Center
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John Shelter, People of New Directions
Jeff Davis, Pathway to Payday
Connie Lorenzo, Employment Development Department
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Kathy Wells, Business and Education Committee Chair
Donna Wright, Executive Director, Eureka Chamber of Commerce
Susan Seaman, Business and Education Committee Member
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AEDC Annual Meeting Highlights
AEDC welcomed board members and community partners to their annual meeting on Tuesday, October 22.
Attendees received an update on 2018-19 activities and initiatives, and heard from Robert L. Canepa, Business & Cooperative Programs Specialist in Rural Development for the United States Department of Agriculture, who shared information about AEDC's new
USDA Rural Microenterprise Program
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Meeting Highlights
New Funding/Programs
- AEDC was recently awarded $400,000 for lending and an additional $100,000 for technical assistance from the USDA Rural Microenterprise Assistance Program (RMAP) to be used to support businesses Humboldt, Del Norte, Mendocino, Lake, Trinity and Siskiyou Counties.
- AEDC worked with AVIVAR Capital to receive a $500,000 Program Related Investment award from the California Wellness Foundation. Program related investments are generally used to support charitable activities and are usually offered at below-market interest rates.
Regional Activities
- AEDC has expanded regional involvement with Executive Director Ross Welch exploring projects and meeting with key partners in Lake County and Mendocino Counties.
- AEDC has a new MOU to underwrite the loans from Del Norte Economic Development Corporation in Del Norte County.
- Susan Seaman, AEDC Program Director, has been participating in the California Stewardship Network Leadership Program, where she has been working to understand community and economic development at the state level and learn how to address regional issues and support development on a regional level.
Events
- AEDC hosted the Humboldt County Economic Development Summit, which explored a variety of economic development topics and highlighted best practices from local cities and tribes.
- AEDC participated in other local economic development conferences, like the County’s GO-Biz conference and the California Association of Local Economic Development (CALED) Rural Exchange hosted by RREDC.
- Next year, AEDC is working with the County of Humboldt and RREDC to co-host a three day regional economic development conference, inviting Mendocino and Del Norte to participate,
BIGGEST news
- AEDC has a new Controller. Deborah Downs. Deborah will be featured in the the next newsletter.
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Prepare your Business for the Next Power Outage
According to
Federal Emergency Management Agency
(FEMA), about 70 percent of businesses will experience a power outage in the next year- and this prediction does not consider recent (and anticipated) power outages due to PGE’s new
Public Safety Power Shutoff Events
designed to reduce fire risk in certain weather conditions. These outages (weather event plus restoration time) could last longer than 48 hour.
For planning purposes, PG&E suggests customers prepare for outages that could last several days.
Unfortunately, these power outages can significantly disrupt business operations and affect profitability, especially if the power outage is long-term. Fortunately, business owners can take steps to prepare for outages and reduce the negative impacts.
Before an outage.
- Build an emergency kit that includes a first aid kit, a tool kit, blankets, flashlights with extra batteries, a list of important phone numbers, and a detailed floor plan of your office that shows the emergency exits and the shutoff points for gas, water and electricity.
- Create a Continuity of Operations Plan (COOP) that outlines how you can continue to operate during an outage.
- Train your employees to ensure they know how to keep themselves and customers/clients safe during an outage and run regular practice drills with your staff to ensure the plan works in reality.
- Get power surge protectors to protect equipment from damaging power surges when the power is turned back on.
- Install smoke detectors (absolutely).
- Follow shutoff event updates and sign up for outage alerts.
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If finances allow:
- install commercial sprinkler systems on every floor of your business
- Invest in a backup generator and learn how to use it before an outage. Develop maintenance, operation and fueling plans to ensure the generator is ready for use when needed
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SBA 504 Current Rate:
3.54%
- Low down payment for borrowers
- Competitive fixed interest rate
- Long Term loan
- From $50,000 to $5 million for commercial real estate, construction and equipment acquisition.
Many commercial loans available on the market require a sizeable percentage down before the loan will be granted, and this can be an obstacle for many business owners looking to improve their facilities. The SBA 504 Loan offers a solution for that -- you can borrow up to 90% of your financing needs at a fixed rate, so only a minimum of 10% down is required.
The remainder is split between the SBA loan (40%) and a bank loan (50%), and the Arcata Economic Development Corporation will work with your bank to submit your loan application. Loan amounts range from $50,000 to $5 million, and some restrictions apply.
For more information, call Kelli Sterling, Loan Manager: 707-798-6132 ext. 214 or email kellis@aedc1.org.
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Arcata Economic Development Corporation
Fax: (707) 798-6130
Tel: (707) 798-6132
707 K Street, Eureka, CA 95501
Newsletter produced by
Lynette Mullen, Projects Delivered
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