What is economic development?

Economic Development is a process creating a financially self-sustainable community or region by the retention, expansion, and attraction of business and jobs. This process advances the health and wealth of a region or community, ultimately, improving the quality of life for all.

My family and I moved here in 1977. As I look back at 30 years of the EDC, I realize how much both of us have evolved. Honoring the entrepreneurial spirit of the people, companies, and industries, that have impacted this region during the last thirty years, is a very difficult task. But I will try to highlight a few.

For 41 years Harry Armstrong has devoted his time to making Clovis a way of life. Consistency and clarity of vision is what builds better communities and Harry is the perfect role model for all of our elected officials.

The banking industry plays a significant role in assuring that local businesses have the necessary capital needed to operate. But a bank is not made of walls and a vault full of cash; it’s made up of people, who are our neighbors and friends and, at the end of the day, banking is about relationships; business and personal. And over the last 30 years the banking industry has donated over $300 million to non-profits in our region.

Industrial Development

But where do you put companies that need 200, 300, or a half a million square feet in Fresno County? Diversified Development Group (DDG), the Parnagian family, and  Roger Van Groningen of Van G Logistics have made it possible for large industrial companies to locate their businesses here. All have developed a first class industrial space or parks to serve industrial employers.

Commercial Development

If any city wants to revitalize or improve their downtown commercial districts, they should adopt the lighting, landscape, maintenance, and security standards of Civic Center Square. There is no finer example of a downtown commercial district than family owned Civic Center Square. All it takes is a city council’s decision to make it an enforceable code.

So… What would the City of Fresno look like without Ed Kashian? Ed brought us:

• The Costco Centers in Fresno and Clovis
• Fig Garden New Town Shopping Center
• Campus Point at Fresno State
• River Park
• Plaza Del Rio
• Park View Plaza
• The Shops and  Marketplace at River Park
• River Park Plaza Professional Office Development and most recently,
• Fancher Creek

Fresno would look a whole lot different without Ed Kashian.

Leadership of CBOs

Blake Konczal of the FRWIB, Preston Prince at the Fresno City & Fresno County Housing Authority, Brian Angus of the Fresno County Economic Opportunity Commission, and Kirk Nagamine of the Central Valley Business Incubator and the Water & Technology Center (the WET Center) bring a culture of entrepreneurialism. These four will have a huge impact in the coming years as they shape this region’s future.

Changing the Image of Fresno County                  

Under the leadership of Airport Director Russ Widmar, an extraordinary transformation has taken place in just a few short years. We are greeted by giant Sequoias, state-of-the-art ticket counters, a fully renovated baggage claim area, new rental-car system, and a clean renewable solar energy array that powers the airport. Fly Fresno!

The above represent just a few highlights of people, companies, and industries that have propelled Fresno County forward.

The next 30 years???

There are four areas the EDC will concentrate on: High Speed Rail, Clean Energy production, Biotechnology, and Water Technology. Who the impact players will be is yet to be discovered, but “From extraordinary people, come extraordinary results!”

International Recognition of the Blue Tech Valley

Recently, the Water Innovations Alliance, in partnership with the Central Valley Business Incubator (CVBI), the Claude Laval Water & Energy Technology Incubator (WET Center) and the International Center for Water Technology (ICWT) held the Blue Tech Valley Water Conference in Clovis, CA. Global water technology practitioners, innovators and entrepreneurs within the private, public and academic arenas took the opportunity to collectively explore and discuss new innovations, developments, and trends relating to water issues facing world food production and a variety of urban and rural water concerns.

The conference theme was ‘International Solutions to Regional Issues’. It addressed current issues that have a direct and visible impact regionally, as well as world-wide implications.

The BlueTechValley Water Conference was a success in a number of ways: Top talent from around the world, such as:

Woodrow W. Clark II, MA3, PhD is a Qualitative Economist, Founder & Managing Director Clark Strategic Partners and Nobel Prize Recipient

Carrie Freeman, Director of Sustainable Business Innovation at Intel.

Anup Jacob is a founding Partner of Virgin Green Fund and special advisor to the Jain Irrigation Group of companies. Prior to VGF, he was an investment professional with TPG and a partner in TPG’s Aqua Fund, which focused on growth capital investments in the water and renewable energy sectors. Mr. Jacob has invested over $400 million in the renewable energy and resource efficiency sectors over the past 10 years.

Henrik Skov Laursen, Head of Water Technology Center GRUNDFOS Pumps Corp, North American Region is heading up the establishment of Grundfos' new Water Technology Center for research, offering new sustainable business and product solutions within water technologies solving the world’s challenges regarding water scarcity.

Ed Pinero, Executive Vice President & Chief Sustainability Officer for Veolia Water North America, leads Veolia Water's sustainability efforts in North America. The company's North American operations serve more than 14 million people in approximately 650 communities.

Peter Williams, Chief Technology Officer for IBM's Big Green Innovations incubator, whose role is to create environmentally focused businesses for IBM - he is personally responsible for assembling, maintaining and developing the portfolio of businesses included.  His particular focus areas have been PV technologies; developing green house gas reduction solutions and services for all types of organization, both public and private; and, in greatest depth, water management solutions, covering entire water resources (for example entire rivers or aquifers), utility infrastructures responsible for water supply, water quality and waste water management, and enterprise water management

Yoram Cohen PhD, Faculty of Chemical and Biomolecular Engineering, University of California.

Craig Criddle is Professor of Environmental Engineering & Science (EES), Senior Fellow, Woods Institute for Environment Stanford University.

Alex G. Mcintosh is Founder & CEO, Ecomundi Ventures specializing in: water; sustainability; environmental strategy; clean technology & investment.

Bahman Sheikh, PhD, PE, a water resources and reuse specialist, completed water recycling project assignments in 21 countries outside the United States (e. g. Jordan, Peru, Kuwait, Australia, Saudi Arabia, Bonaire, Egypt, Korea, Bahrain, Mexico, Syria)

Laura Shenkar, Founder and Principal of The Artemis Project, is one of the foremost global experts on corporate water strategy and the application of advanced water technologies.

There were many others experts in the field who shared their insights, but all recognized Fresno County and the region as best positioned for advancements and solutions through water technology innovation.

I thought it was one of the finest conferences for sharing advanced technology and ideas I have ever attended. My one big question is, where was the local agriculture industry leaders? With their hue and cry about water, this event brought more solutions to the forefront than I have ever heard or experienced before. There were more people from around the world and outside Fresno County than from the local community.

Now some might say they didn’t know about the event, but if you are plugged in to the WET Center or the ICWT (and you should be), there is no excuse. The agriculture industry should be participating in funding this marvelous water research and energy center.

All in all, congratulations, Kirk Nagamine (WET Center) and David Zoldoske (ICWT) for an incredible job well done. From those of us who attended, you give us another reason to be proud of Fresno.

Steve Geil

ECONOMIC DEVELOPMENT CORPORATION SERVING FRESNO COUNTY CEO RESPONDS TO LAO REPORT:

The recommendations made by the California Legislative Analyst’s Office (LAO) are based on opinion and can be refuted by anyone with an opposite or supportive opinion.

Examples:

LAO: “the availability of the additional funding assumed in a 2009 business plan as necessary to complete the project is highly uncertain and federal deadlines and conditions attached to the funding already provided to the state would limit the state’s options for the successful development of the system.”

Response:  I do not believe the funds are “highly uncertain”. The Department of Transportation continues to fund high speed rail development. The Administration shows no signs of backing off from this major infrastructure project.

LAO: “the existing governance structure for the project is inadequate for the imminent development and construction stages”

Response: The existing governance is perfect. It keeps the politicians hands off the money and keeps it separate from a legislature that has not shown the ability to control or allocate funds responsibly for the last 30 years.

Real Agenda

LAO: “This would require modifications that… require that funds all be spent building an initial section of the rail line in the Central Valley.”

Response: This is the root of the report. There are ten times as many assembly members in the Northern and Southern regions of the state and it appears they want the money allocated to their districts and not, as usual, to the Central Valley.

LAO: “We recommend that the Legislature shifts the responsibility for the day-to-day and strategic development of the project from HSRA to the California Department of Transportation (Caltrans).”

Response: Caltrans builds and maintains highways and has no expertise whatsoever in planning, designing, or constructing a high speed rail system. The CHSRA leadership was hired because they HAVE built successful high speed rail systems in other parts of the world.

Mac Taylor, LAO, advocates going against the will of the voters of California and politicizing the development of the state’s high speed rail system. All I can ask is; When did our politicians ever finish a project on time and on budget?

Steve Geil, CEO

With the recent events surrounding the lives lost in the West Virginia coal mines, it brings to the forefront the urgency of having a frank discussion about the role of clean nuclear energy.

From 1960 to 2007, there have been 564 deaths from coal mining accidents. This does not include any deaths due to Black Lung disease or other respiratory problems. There have been NO DEATHS due to nuclear energy production in the U.S. during this same time period.

According to the Union of Concerned Scientists, in an average year, a typical coal plant generates:

• 3,700,000 tons of carbon dioxide (CO2), the primary human cause of global warming--as much carbon dioxide as cutting down 161 million trees.
• 10,000 tons of sulfur dioxide (SO2), which causes acid rain that damages forests, lakes, and buildings
• 10,200 tons of nitrogen oxide (NOx), as much as would be emitted by half a million late-model cars. NOx leads to formation of ozone (smog) which inflames the lungs, burning through lung tissue making people more susceptible to respiratory illness.
• 720 tons of carbon monoxide (CO), which causes headaches and place additional stress on people with heart disease.
• 220 tons of hydrocarbons, volatile organic compounds (VOC), which form ozone.
• 170 pounds of mercury, where just 1/70th of a teaspoon deposited on a 25-acre lake can make the fish unsafe to eat.
• 225 pounds of arsenic, which will cause cancer in one out of 100 people who drink water containing 50 parts per billion.
• 114 pounds of lead, 4 pounds of cadmium, other toxic heavy metals, and trace amounts of uranium.

Nuclear energy generates none of the above pollutants and contaminants. It is safer, more environmentally friendly, and the only 24/7 clean energy generator of the clean energy producers.

Bill McEwen ended his Fresno Bee column about nuclear power and Anne Lauvergeon, CEO of global nuclear power AREVA, with a pointed statement: Is the rest of the world crazy or is it us? There are 55 nuclear plants under construction in 14 countries across the globe. There is not a single new plant yet begun in the United States. California can no longer accept that the rest of the world, including other U.S. states, is passing us by. This we can ill afford. It is much costlier to play catch-up than to lead.

James Lovelock, the founding historical and cultural leader of environmentalism for environmentalists around the world, stated that nuclear energy is the one safe, available, energy source, and hopes that it is not too late for the world to emulate France and make nuclear power our principal source of energy. He also added that there is at present no other safe, practical and economic substitute for the dangerous practice of burning carbon fuels.

If we want to reach our goal of reducing greenhouse gas emissions by producing cleaner energy, we must start with the only technology that can achieve that can help us meet baseload demand. Solar and wind can do it alone. Coal cannot do it at all. Nuclear can.

Both parties shout it to the country when running for national office; “We must reduce our dependency on foreign oil!” Well, there is no better way to do that than to embrace safe nuclear energy technology. Politicians must stop counting campaign dollars and start counting the cost of doing business.

There are areas of the country that are dependent on coal mining jobs to support their livelihoods, but you can replace the coalmines with nuclear energy facilities where pay is well above the region’s averages, land values increase where nuclear facilities operate, and new business is attracted due to less costly power costs. All of this provides a higher quality of life for the impacted communities.

At the end of the day, it is far better and safer to produce clean nuclear energy than to gauge out sections of the earth for coal.

Reading the announcement in The Fresno Bee, December 2, 2009, that the State of California Department of Water Resources would be releasing 5% of the requested water to farming operations and urban dwellers, brought to bear that the EDC’s goal of creating a plan for water self-sustainability must be the highest priority for Fresno County and the Central Valley.

I recently returned from a trip to Israel with Sarge Green, preeminent water authority representing CSU-Fresno, Ken Schmidt, the foremost hydrologist in the San Joaquin Valley, and Ed McIntyre, Madera Water Commission, where we witnessed firsthand how this country has achieved this lofty goal.

What was most impressive was how Mekorot, Israel’s National Water Company, brought advanced water technologies together under one roof to create a water resource management system second to none. They incorporated desalination, brackish water filtration, effluent/waste separation, and water reclamation with an advanced water resource management software system to control supply and demand, while monitoring quantity and quality.

Here in Fresno County, we have all the water resources, when combined with advanced technology, to become self-sustainable for 100% of our needed agriculture water. The question is: Can, or will, we put aside past political differences and implement a plan for achieving the needed outcome? Are we willing to change how we confront our future economic survival rather than continue down this course of relying on an allocation from governmental agencies? Do we trust in our on expertise to take control of our destiny rather than complain about how we are being controlled?

If you answered ‘Yes’ to the above questions, we want to join with you to make it happen.

If you answered ‘No’ to any of the above questions, have the courtesy to get out of the way of those of us striving to become self-reliant when it comes to water resources.

Without water, we have no future! It is time to start the process of becoming self-sustainable for water. Here at the EDC, we are doing just that. Together we can achieve the extraordinary!

I recently returned from a trip to Calgary with Esther Cuevas, Director of Corporate Locations, which was brought about due to the increase in interest of Canadian companies looking to locate in the Central Valley. Our Corporate Locations department has had great success in placing them in Fresno County, and I felt it was time to begin building a Canadian relationship for the future.

The reception we received was incredible. All of the people we met with hungered for information regarding expanding to the California market, and had no idea of the role Fresno County could play in their possible expansion plans. Some companies are looking to market to California and some are looking to market to the eight western states. All agreed that the benefits Fresno County offers are powerful and compelling as a location to establish their west coast facilities. There was also great interest in participating in the New Frontier Tour in March of 2010.

During these economic times the one thing that all successful companies have in common is the carrying out of their expansion plans, now, in order to be positioned for the economic upturn predicted to be coming in the next 18 to 24 months. They have strong financial strength and are using it to invest in their strategic growth.

Canada will be a very important partner with Fresno County’s economic future and we are building the bridges now to ensure our partnership with them is sustaining.

For over a year now the headlines have been predicting, “A Recession is Coming!” Fortunately, the economy still has not accepted the predictions. Real GDP growth was 1 percent in the first quarter and is on track to reach approximately 2.5 percent growth in the second quarter.

Economic activity in Fresno County has consistently out performed the other Central Valley Counties with better than expected numbers over the last year. And now even the residential housing market in Fresno County is showing signs of recovery with increased sales activity.

Has there been an economic slow down? Absolutely. Has it collapsed? Absolutely not!

In comparing this year’s figures to last year’s, the EDC has seen an increase in activity by 84% over the same period as last year! Fresno County seems to be on more companies’ radars than ever before, including companies from Canada.

The economy may or may not be headed for recession, but there are reasons to be optimistic job conditions could improve before the year is over and especially in 2009.

In trying to find information to back up my own observations I came across the following. It is an opinion by James W. Paulsen, Ph.D., Chief Investment Strategist, Wells Capital Management and the reasons he is optimistic about the economy:

“First, annual productivity growth (the value of labor) has surged to almost 3.4 percent in the first quarter of this year after nearly stalling in early 2007. Moreover, U.S. unit labor costs, after peaking in mid-2007 at 4.3 percent, has subsequently dropped to only 0.7 percent in the first quarter of 2008! Renewed productivity growth combined with slowing labor costs should help revive job creation in the coming months.

Second, most non-financial companies continue to enjoy positive profit growth, good liquidity and healthy balance sheets. What is lacking for most corporations is not the ability to hire, but rather the confidence!

Third, annual job growth peaked at only about 2 percent in the contemporary recovery, compared with peak growth of 3.5 percent in the 1990s, over 5 percent in the 1980s and common peaks in excess of 4 percent job growth during the 1970s expansions. Corporate confidence has remained cautious throughout this recovery causing most to avoid “over-hiring.” Consequently, the job losses this year seem mainly due to “suspension” of new hires rather than the more common “surge in layoffs.” Not only have these “lean” labor policies contributed to rather mild job losses, but they could also result in a quicker- than-normal job market recovery.

Fourth, during the last year, although international trade has been adding to real GDP growth, it has seemingly done little to help the job market. We are puzzled by the persistent and sizable job losses in the manufacturing sector at a time when this sector should be the primary beneficiary of a watershed shift toward trade improvement. Most likely, the beneficial aspects of trade improvement are currently being overwhelmed by the ongoing collapse in the housing and auto industries. However, should housing and autos begin to decline more slowly or bottom, the invisible undertow of net export growth could cause the manufacturing job market to recover surprisingly quickly!

Finally, the slowdown in job creation, like much of the rest of the economy, remains highly concentrated among the housing and auto industries. Despite comprising less than 3 percent of total jobs, of the 438K payroll jobs lost since the start of this year, 219K or 50 percent, are directly tied to the housing and auto industries. Should the pace of collapse in these two industries simply diminish or cease, the aggregate job numbers could quickly improve.” The financial and housing industries are already experiencing positive movement. However, the auto industry is going through devastating times, and only the innovative and strong will survive. And when the auto industry does turn around, we will re- experience the prosperity we have come to know in the past decade with a more controlled pace.

The Economic Development Corporation serving Fresno County continues to provide a public forum for informing and educating Fresno County about important and strategic, if not sometimes controversial, projects that may impact our lives in a dramatic way. The Business Expansion Attraction and Retention (BEAR) breakfast is one of the venues we utilize to accomplish this goal.

The Golden State Corridor Project, presented by Fowler Councilmember Rico Aguayo was received enthusiastically by the crowd of 200 attendees. It brought to light the future vision of the once, hustling and bustling highway 99 that is now moving toward transformation to once again be the economic engine to drive economic development connecting Fowler, Selma and Kingsburg.

The Metro Loop Project was presented by Georgiena Vivian and demonstrated the vision of 50 to 100 years of challenge ahead of us in mitigating density and transportation hurdles that will come our way while protecting our agriculture heritage and prime farm land.

The Southeast Growth Area (SEGA) Project encompasses the planning for an entire eight county region, impacting future generations of families and businesses, and our ability to provide a sustainable, livable and vibrant Fresno County. Dealing with transportation, air, water, and population growth, the Blueprint is a dynamic plan that will flow from generation to generation.

The New EDC Website was presented and the cutting edge CountyScape was unveiled. Please visit www.Fresnoedc.com and explore the various amenities.

All in all it was a great event held at the new Holiday Inn Downtown. Take the time to come see the newest hotel in Downtown Fresno and celebrate our continued revitalization.