Santa Maria Economic Development Commission · • Find the best places to advertise - Identify the best areas to target your next advertising campaign. Choose from pre-set reports

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Santa Maria Economic Development Commission

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2 | S A N T A M A R I A E C O N O M I C D E V E L O P M E N T C O M M I S S I O N

The mission of the Santa Maria Valley Economic Development Commission is to advocate and promote economic growth and vitality throughout the Santa Maria Valley

Table of ContentsExecutive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . .p 4

About the EDC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .p 5

Economic Prof i le & Act iv i ty . . . . . . . . . . . . . . .p 6

Strategic Initiatives................................p 8

FY 2016-17 Priorities & Opportunities.............p 14

Appendix 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .p 15

Appendix 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .p 16

Appendix 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .p 18

Appendix 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .p 21


ExecutiveSummaryThe Santa Maria Valley Chamber of Commerce’s Economic Development Commission has spent the past year refining its processes and identifying new tools and resources which we believe will help us meet our twin objectives, e.g. support the growth and success of existing local business while promoting our community as a premier business location opportunity.

Changes at the staff level continue as we identify the right individual to lead this effort. As this report is drafted, the Chamber is interviewing a number of candidates and expects to have an individual on board shortly.

New tools and partnerships are being put into service that will enhance the EDC’s ability to raise awareness of its services and economic opportunities for the area, deliver relevant, service-oriented information to local business owners and startups, as well as help offer business research and competi-tive intelligence by industry and region.

Significant steps have been taken to strengthen the EDC’s relationships with organizations and allies in the community and across our region as a way to leverage efforts toward economic vitality and growth.

Among the groups are:

• Economic Vitality Team of Santa Barbara County

• EconAlliance• Santa Barbara County

Workforce Development Board

• Softec• SCORE• SBDC

Additionally, the EDC maintains close ties with the local office of the Employment Develop-

ment Department, MIYB Spaces, chambers of commerce in communities across our region, and the Home Builders Associa-tion of the Central Coast.

The Chamber and EDC have

become further engaged with our local educational partners to address workforce readiness issues. Specifically, we have partnered with the Santa Maria Joint Union High School District to provide connections, advice, and support as they build their Career Pathways program. We are also an active participant with the County Workforce Develop-ment Board on a grant-funded program targeting youth employ-ment training and experiences.

Significant steps have been taken to strengthen

the EDC’s relationships with organizations and

allies in the community and across our region

as a way to leverage efforts toward economic

vitality and growth.

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About the Economic Development CommissionThe Economic Development Commission (EDC) is a department of the Santa Maria Valley Chamber of Commerce, which partners with the City of Santa Maria and the Santa Maria Public Airport to market our community to prospective companies. The EDC also provides business retention programs geared toward strengthening our current base of industrial, retail and manufacturing. The City of Santa Maria has made a continuing investment in economic devel-opment by providing funding for the EDC. The Santa Maria Public Airport District also contributes. The Chamber of Commerce provides the additional necessary resources and financial support to accomplish the activities that the EDC currently offers.

The EDC has been consistent in its advertising and marketing efforts, making sure that Santa Maria is on the radar screen of companies looking to relocate and expand. The EDC:

• Promotes the many advantages of Santa Maria as a prime business location• Provides business information to potential and existing companies• Works directly with local agencies, commercial brokers and the City of Santa Maria to provide information,

resources and contacts for both new and expanding businesses• Features active involvement with agencies that provide incentives, workforce training, and outreach to businesses

and organizations.

The EDC and the Chamber of Commerce appreciate the continued support from the City of Santa Maria, the Santa Maria Public Airport, and the many businesses and organizations that participate in its programs.

Economic Development Commission Members

During the past fiscal year, the Economic Development Commission was restructured. Individuals were selected and invited to become members of the EDC because of a specific role that they play in the local development community. The Commission is charged with providing input and direction to the EDC staff to identify key barriers to economic growth and the development of action plans designed to address specific issues. The Commission also ensures accountability on those action plans as we report on progress, lessons learned, and successes achieved. The current Commission membership, appointed by the Chamber Board of Directors and/or the respective partner organization, includes the following individuals:

Larry Appel, City of Santa MariaDan Blough, Dan Blough Construction (CRE Developer)Jim Bray, Pacific Coast Energy (Energy)Anne Cremarosa, MIYB Spaces (Sm. Business)Dave Cross, Fletcher Cross Associates (Land Use/ Planning)Danny Deveraux, CalPortland (Transportation)Jason Diani, Diani Companies (Gen. Contractor)Mark Fugate, Charter Brokerage (CRE Developer)Angelica Gutierrez, Rabobank (Banking)Tony Guy, Zodiac Cabin Interiors (Lrg Employer)Jay Hardy, Hardy Diagnostics (Lrg Employer)Chris Hastert, Santa Maria Public AirportRick Haydon, City of Santa MariaRob Himoto, SMV Railroad (Transportation)

Mike Kirkwood, Community West Bank (EconAlliance)Sofia Lariz, Emerald Broadcasting (Sm. Business)Kerin Mase, Marian Regional Medical Center (Healthcare)Tim Ritchie, Home Motors (Chamber Board)Steve Scott, Scott Construction (Gen. Contractor)David Swenk, Urban Planning Concepts (Land Use/ Planning)Dr. Kevin Walthers, Allan Hancock College (Education)Brooks Wise, Heritage Oaks Bank (Banking)


Business Name Address Size (sq ft)

Type # of Employees

Crunch Fitness Town Center East 40,000 Fitness Center 20

DCCA 2811 Airpark Drive 13,000 VAFB Engineers 50

Dunn Edwards 2339 S Broadway 5,500 Pain store 5

Glopak 3070 Skyway 17,000Wine Glass Distribution

5

Hans Duus Blacksmith2976 Industrial Parkway

6,000Blacksmith/ Specialty Lighting Fixtures

10

Maxco 807 W Main 40,000Agricultural Packaging

10

MindBody 2815 Airpark Drive 15,000Call Center & Admin

100

MIYB Spaces 731 S Lincoln 7,000 Business Services/Co-Work Space

5

Rabobank 2100 S. Blosser 63,000Regional Banking Admin

350

SM Tire 619 S Oakley 23,000 Manufacturing 10

Solve-it! Engineering 2360 Thompson 4,800 Manufacturing 10

Wine direct 1427 Fairway Drive 50,000Case Goods Distribution

10

New and Expanding Business (Sample of 2015-16 Activity)

Economic Profile and Activity

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Year Labor Force Employed Unemployed Unemp. Rate

2016 (prelim) 49,100 46,300 2,900 5.8%

2015 48,200 45,300 2,900 6.0%

2014 48,200 44,800 3,500 7.2%

Santa Barbara County 223,900 213,200 10,700 4.8%

SLO County 142,500 136,000 6,500 4.6%

Santa Maria City Workforce Data (August 2016)

Business Satisfaction Survey

Business Improved over prior year 71%, with 29% saying “much improved”Expect Continued Improvement 60%Expect to Hire This Year 44%Top concerns Rising costs Continued slow growth in economy Increasing cost of regulation Health care costs Finding trained workers

Current Economic Development Metrics (Last 6 months)

Website Page Views: 4,800Inquiries/Assists/Projects: 30


Primary to the mission of the EDC is to provide assistance and support for businesses looking to expand, shore up their operations, or start in the city. The EDC regularly receives requests from businesses looking for information, connection to resources, assistance with regulatory processes, or advice about their business.

Expanding the Network of Business Services.

In addition to providing a number of resources that we can share in person or via our website, the EDC has committed to strengthening the network of business support services available to local businesses in our community. This strategy recognizes that many times businesses need specialized information or assistance and that we have partners who are better positioned to provide those specific services.

In 2015-16, the EDC was pleased to work with the SCORE organization as they entered the community and began providing consulting services to residents and businesses in Santa Maria. SCORE was featured at a Chamber mixer in May and has been cooperating with the Chamber to provide informational articles in our monthly newsletter. Addition-ally, the EDC has been working with the SBA Small Business Development Center serving Ventura and Santa Barbara Counties to expand their services into northern Santa Barbara County. The SBDC was successful in securing a grant to support business outreach in our area as part of a service expansion. The EDC will be working with SBDC to identify potential clients and to recruit consultants to work in our area.

Expanding Online Resources

Many new business owners and those already operating small businesses need access to business support off-hours, when it’s convenient for them to access the information. To serve this need and to make available free tools to all businesses in the community, the EDC has focused on adding new tools to its website.

Tools for Business offers ready-made answers and links to additional resources for business owners. Among some of the categories information seekers can explore include:

• See Everything Local• Start a Business• Grow my Business• Hire/Manage Employees• Get Business Training• Go Green• Find Financing / Manage Money• Protect my Business• Comply with Government Requirements

SizeUp allows business owners to compare their business performance to others in the industry throughout the region. SizeUp provides three core features that enable business owners to make more intelligent decisions.

• Benchmark your business - See how your business sizes up by comparing your performance to all other competitors in your industry. Isolate areas where you can improve and find ways you can save money.

• Map your competition - Map where your competitors, customers, and suppliers are located. Determine how you can best serve existing customers, find new customers, and pick suppliers. Use the map to isolate areas

Strategic Initiatives

Strategy I: Provide services to support business expansion and retention activities within the

City of Santa Maria.

At the beginning of the 2015-16 program year, the EDC reaffirmed its primary roles and objectives related to creating a vital local economy. This report will highlight the key strategies and activities undertaken this year related to each of the key areas.

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with many potential customers but little competition.• Find the best places to advertise - Identify the best areas to target your next advertising campaign. Choose

from pre-set reports to find areas with the highest industry revenue, most underserved markets, and where average business revenue is highest, or create your own custom demographic and/or business report.

Connecting Businesses to Opportunities and Resources

The EDC continued this year to provide a wide range of meetings, events, and special programs for local businesses. These ranged from job fairs to business tours to special events at which local businesses could connect with each other and with national business opportunities. Some highlighted events held during the past year include:

• Vandenberg Small Business Outreach Event. This annual event connects both local and out-of-area businesses with the contracting program at Vandenberg. Presenters from the base share information about how to become a vendor or contractor to their programs. Additionally, representatives from units at the base who have the ability to purchase local products or services attend the event to connect with businesses and discover potential new vendors.

• Industry Tours and Forums. Formerly branded as Manufacturing Association events, these programs offer local businesses the opportunity to tour local businesses and/or to hear updates about significant economic impacts in the community. Programs in 2016 included tours of the Santa Maria Times and Mission Hope Cancer Center, along with forums featuring a business forecast panel featuring local executives, an update from the Santa Maria Public Airport and an overview of current opportunities and issues related to the Santa Maria Valley Railroad.

• Trade Show and Job Fairs. In addition to the Santa Maria Chamber Business Expo, the EDC also partnered with local workforce agencies to sponsor two job fairs during the year.

Connecting Businesses to Opportunities and Resources

The EDC either manages or provides leadership to a number of regional business partnerships, each designed to provide specialized resources to local businesses. Among these programs are the Santa Barbara County Energy Watch Partnership, the Recycling Market Development Zone, and the Green Business Program of Santa Barbara County.

• The Chamber of Commerce/EDC is the Partnership Administrator of the Santa Barbara County Energy Watch Partnership program. The purpose of the partnership is to assist municipalities and businesses with retrofit options that provide energy efficiency and cost savings. Partners include PG&E and SoCal Gas, along with the City of Santa Maria, County of Santa Barbara, Guadalupe, Solvang and Buellton. Since January 2015, the program has assisted 58 Santa Maria businesses, resulting in significant savings both of energy and cost.

• In 2016, the EDC became the Zone Administrator in Santa Barbara County for the Recycling Market Devel-opment Zone (RMDZ). This program operates under the California Integrated Waste Management Board (CIWMB) and combines economic development and recycling goals by promoting the processing and use of recycled materials to produce new products. Through the RMDZ Program, a variety of incentives are offered to businesses that use recycled materials to make new products, including below market rate loans, targeted marketing assistance such as feedstock sourcing, networking with other businesses, zones, and governmental agencies, and referrals for business planning, etc.

• The EDC is a leading funder and member of the steering committee for the Green Business Program of Santa Barbara County. The program provides resources and assistance to businesses wanting to be green, certi-fies businesses through workshops and trainings, on-site visits & evaluation, and highlights certified businesses so that local consumers can shop green.

The Santa Maria Public Airport District as an Economic Driver.

The Santa Maria Public Airport District represents a unique and critical element of our local economic vitality. In addition to being a key connection to the rest of the world, the Airport currently hosts a significant number of businesses and is actively working to expand the number of businesses operating on its property.

The EDC works regularly with the Airport management to support their efforts to create economic activity through increased commercial air travel, attraction of additional airport uses such as US Customs services, and locating new

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businesses on airport property.

During the past year, the EDC provided support to the Airport’s efforts to increase traffic on United Airlines flights to San Francisco. Advertisements produced by the Airport were featured in a variety of Chamber publications. Additionally, the EDC distributed several surveys which included questions designed to collect information that the Airport can use to improve marketing of the service.

Since the announcement that United Airline will cease service from Santa Maria in October, 2016, the EDC has been actively supporting the Airport in recruiting new airline service for our community.

Strategy II: Market Santa Maria to targeted industries and businesses.

Complementing our commitment to supporting the growth and sustainability of existing businesses in our community, the EDC is committed to promoting our community to potential new businesses. While we recognize that many different entities (land owners, real estate professionals, city staff, etc.) are ultimately involved in the process of securing a new business in Santa Maria, the EDC’s plays a number of key roles in the effort.

Increasing Awareness of Santa Maria among Regional Business Leaders.

The EDC is convinced that one of the best sources for new businesses in our community is our region. We are fortunate to be located between two major research universities in a region known for creating new businesses. By increasing top-of-mind awareness among business decision makers in our surrounding communities, we believe that we can position Santa Maria as a primary expansion market for growing regional businesses. As part of that strategy, the EDC continues to strengthen our relationships with partners in our region.

• EconAlliance of Northern Santa Barbara County. Made up of business leaders from northern Santa Barbara County, the EconAlliance seeks to foster education and policy discussions aimed at creating an environment for economic growth. Their programs and initiatives align well with the strategies of the EDC, but for many years the two organizations have operated independently with little to no coordination or communication. During the past year, leaders from the EconAlliance and the Economic Development Commission have been meeting to share plans and activities and to begin the process of cooperating where shared activity makes sense for both organizations. We anticipate this collaboration will continue leading both to joint initiatives, as well as identification of areas where each partner can lead out without duplicating the work of the other.

• Economic Vitality Team of Santa Barbara County. The Economic Vitality Team (EVT) was formed in 2014 with a start-up grant from the Board of Supervisors. Managed by the Santa Barbara Chamber of Commerce, the EVT is made up of Chambers of Commerce from across the County, as well as representatives from cities and key industry stakeholders. The Santa Maria Economic Development Commission became a member of the EVT in 2015, appointing Glenn Morris, Chris Slaughter, and Cameron Stephens as voting members of the organi-zation. The EVT is working on a range of issues, ranging from a regional Broadband Initiative to developing a national marketing strategy recruiting industrial and larger employer projects to the region.

• Workforce Development Board. The Workforce Development Board (WDB) is charged with developing strat-egies to promote the growth of high-value employment sectors and to assist in transitioning individuals and companies from declining career clusters to those that are growing in our market. During the past year, the program was reorganized to align with new federal mandates. As part of that restructure, a new Board was appointed. Working with the County staff, the EDC was instrumental in ensuring that a number of Santa Maria and northern SB County leaders were appointed. Board representatives from our region now include Glenn Morris (SMVCC), Kevin Walthers (Allan Hancock College, Sandra Dickerson (Your People Professionals), Adrienne Dodd (Marian Regional Medical Center), Charles Huddleston (IBEW Local 413), Steve Lavagnino (SBC Super-visor), Morgen McLaughlin (SBC Vintners Association), Gabriel Morales (CET), and Ken Ostini (Lompoc Chamber).

• Softec. With over 2,000 members, Softec creates and promotes technology-themed events for enthusiasts of all ages to connect, network, educate and learn in San Luis Obispo and north Santa Barbara County. The EDC is a sponsor and a participant in its monthly activities. Softec is focused on helping align local businesses,

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individuals and educational resources in our community to produce a thriving hub of innovation on the Central Coast. Starting in October, 2016, the EDC will be partnering with Softec to launch a Santa Maria version of Softec’s popular TechBrew series.

• Broadband Coalition. The EDC is actively involved in the Broadband Coalition of the tri-county area, including Ventura, Santa Barbara and San Luis Obispo counties. The coalition is assessing broadband coverage in the area for business services as a step toward applying for state funding to increase capacity along the Central Coast.

Targeting Santa Maria-style Businesses.

As we expand our outreach to invite businesses to expand or relocate to Santa Maria, the EDC believes it’s important to target those businesses who have the greatest potential for success in our community. The EDC regularly hosts industry roundtables with small groups of local business decision makers. These informal discussions allow us not only to identify opportunities for us to provide services to our existing businesses, but also help us in building a profile of businesses that are already successful here. Adding that local information to resources like the WDB’s industry cluster analysis and other demographic tools, we believe we are better able to target potential new businesses.

Building Awareness through Advertising.

The EDC maintains an active program of advertising both regionally and nationally. Publications in which the EDC placed ads in 2015-16 include:

• California Manufacturers, published by the California Manufacturers & Technology Association• Business Facilities guide• California Association of Economic Development Directory• Pacific Coast Business Times• SLO Tribune• Site Selection Guide’s California Investment Guide• Directory of California Manufacturers• SBC Economic Vitality Team’s Economic Profile

Strategy III: Support alignment and effectiveness of workforce development programs with

current and future employers.

The Chamber/EDC has long been involved in programs designed to connect the workforce development system to the needs of our local employers. During the past year, we have engaged in a number of new programs that further this investment.

Allan Hancock College

The EDC provides both financial and marketing support to Allan Hancock College and their career awareness/prepara-tion programs. Among the programs that received direct support during the past year were the following:

• Stem Week Of Discovery: This four-day program introduces interested graduating high school students to a variety of science, technology, engineering and mathematics (STEM) majors, and features hands-on activities related to these majors. The goal is to give students an introduction to the world of STEM while also making them aware of the services that can help them be successful college students as they prepare for careers in today’s technical work force.

• Career Exploration Day: This event exposes college and high school students to career opportunities within our community. It showcases the programs at Allan Hancock College which provide the necessary training and education students need to pursue these employment options. Last year, the event drew nearly 2,000 high school students and hundreds more from Allan Hancock College.

• Career Fair: This event allows local employers to showcase their businesses and talk about careers within their


specific industry with AHC students. Additionally, local non-profits share the countless opportunities that are available to our AHC students for volunteer work within their own community. Universities share unique programs available on their campuses and the resources available for students while they consider where to apply and once they begin their transition to university life.

SMJUHSD Career Pathways

The EDC have been actively involved with the High School district as they prepare and launch a new career pathways centered model. The program will support local economic and workforce development efforts by creating partnerships between local industry, college, and university programs to promote the knowledge and skills necessary to transition directly from high school local employment and postsecondary education programs. Through this program, students will gain the experience, technological skills, academic fluency, strong work ethic, soft skills, and critical thinking neces-sary to complete for local high-wage, high-skills employment.

The program envisions nine career pathways that students can affiliate with to focus their preparation. The pathways will include:• Agriculture & Natural Resources• Arts, Media, & Entertainment• Business & Finance• Energy, Environment, & Utilities• Engineering & Architecture• Health Science & Medical Technology• Hospitality, Recreation, & Tourism• Information & Communications Technology• Manufacturing & Product Development

The EDC is working with the school district to connect local businesses to this program through including on-campus experiences like serving as a guest speaker, classroom mentor, or mock interviewer; work-based experiences like job shadowing, field trips, or internships; or program wide support by serving as a member of an advisory board and/or donating resources to support program and student activities.

Workforce Development Board / Youth Jobs Program

The EDC have been actively involved with the High School district as they prepare and launch a new career pathways centered model. The program will support local economic and workforce development efforts by creating partnerships between local industry, college, and university programs to promote the knowledge and skills necessary to transition directly from high school local employment and postsecondary education programs. Through this program, students will gain the experience, technological skills, academic fluency, strong work ethic, soft skills, and critical thinking neces-sary to complete for local high-wage, high-skills employment.

Additional Community Based Programs

Finally, the EDC partners with various local organizations who are offer programs that address specific workforce devel-opment needs. Examples of programs that we currently support would include sponsorship of an IBEW Apprenticeship program and workforce literacy programs facilitated by the United Way.

Strategy IV: Advocate for policies, procedures and services which result in a local economic

environment favorable to business growth and success.

Finally, the EDC believes that one of the most important things we can do is to act as the voice for local businesses in helping influence public policy in ways that ensure our community is an environment in which businesses have the maximum opportunity possible to succeed. To that end, during the past year, the EDC have partnered with our

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counterparts across the county and state to speak on legislative and regulatory issues that could have significant impacts for good or bad on business.

At the County level, we have weighed in to support specific projects and to encourage favorable policy treatments of important regional industries, including both energy production and the wine industry.

At the state level, we have joined coalitions and provided input on a wide range of bills addressing issues ranging from overtime wages in the ag industry to extending prevailing wage requirements to additional construction-related industries. We have supported proposals to increase school accountability and to rein in unneeded legal attacks related to ADA-related issues. We have opposed proposals that would increase the amount of protected and paid leave forced on small business owners, and legislation that would increase business costs by increasing costs associ-ated with additional regulatory burdens.

Locally, in addition to supporting specific businesses appearing before the Planning Commission and/or City Council, the EDC has worked closely with city officials to support the downtown specific plan revisions and securing the streetscape planning grant. We continue to work with staff on downtown related issues.


FY 2016-17Priorities and OpportunitiesAs we look to the next year, we see both opportunities and challenges ahead for our community’s economic vitality. The EDC staff is committed to working with our Commission members, partners, and local industry leaders to address the challenges and to maximize the opportunities.

On the challenges front, we anticipate having to deal with additional layoffs as key employers continue rightsizing their operations. Additional challenges that will need to be addressed include the need to replace commercial air service at the Airport. And, in a good news/bad news way, we see continued constriction in industrial inventory.

On the positive side, there are large businesses in Santa Maria that are expanding their operations and others that are ready to begin major development projects. Add to that the energy and awareness that will come to the community as the Enos Ranch and other retail projects move forward and the next couple of years have the opportunity to be transformational for the City.

The EDC looks forward to being the lead agency working to capture that energy and leverage it to getting us the chance to share with even more prospective businesses why they should consider Santa Maria.

Attachments

1. Sample Advertisements2. Online Tools Preview3. Financial Statements4. Commercial/Industrial Real Estate Analysis

For Additional Information, please contact:

Glenn Morris, President & CEO805.925.2403 [email protected]

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Appendix 1:Sample Advertisements


Appendix 2:Online Tool Previews

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Tools for Business

Total

Chamber Total EDC Total VCB TOTAL

Income 41000 · Membership Dues & Program Fees 41100 · New Members Dues 25,213.50 0.00 0.00 25,213.50

41200 · Processing Fees 1,725.00 0.00 0.00 1,725.00

41300 · Renewing Members Dues 169,470.00 0.00 0.00 169,470.00

Total 41000 · Membership Dues & Program Fees 196,408.50 0.00 0.00 196,408.50

42000 · Program Revenues 42100 · Program Fees 61,054.00 0.00 0.00 61,054.00

42200 · Program Sponsorships 41,255.00 0.00 0.00 41,255.00

42300 · Program Contract Income 188,750.00 154,620.00 549,770.00 893,974.26

Total 42000 · Program Revenues 291,059.00 154,620.00 549,770.00 996,283.26

43000 · Contributions 43100 · Voluntary Dues Contributions 7,825.00 0.00 0.00 7,825.00

Total 43000 · Contributions 7,825.00 0.00 0.00 7,825.00

50000 · Advertising Revenues 1,380.00 0.00 0.00 1,380.00

53000 · Sales & Royalties 53100 · Non-taxable Sales 385.00 0.00 0.00 385.00

53200 · Retail Product Sales 41.57 0.00 14.24 55.92

53300 · HR Product Sales 1,834.58 0.00 0.00 1,834.58

53700 · Affinity Program Royalties 10.83 0.00 0.00 10.83

Total 53000 · Sales & Royalties 2,271.98 0.00 14.24 2,286.33

59000 · Miscellaneous Income 59100 · Interest Income 301.55 102.85 308.47 712.87

Total 59000 · Miscellaneous Income 301.55 102.85 308.47 712.87

Total Income 499,246.03 154,722.85 550,092.71 1,204,895.96

Expense

61000 · Administrative Expenses-Shared 61100 · Advertising - General 19,366.00 7,161.00 21,789.00 48,316.00

61200 · Bad Debt Expense 0.00 0.00 0.00 0.00

61300 · Bank and Finance Charges 2,009.40 532.50 1,502.67 4,044.57

61400 · Board of Directors Expenses 560.14 318.83 956.38 1,835.35

61500 · Equipment Rent & Maintenance 4,826.24 1,809.97 5,429.56 12,065.77


Appendix 3:Financial Statements

61600 · Insurance 2,443.60 916.35 2,749.05 6,109.00

61700 · Office Supplies 4,557.31 1,835.19 5,084.28 11,476.78

61800 · Postage & Shipping 3,062.99 1,158.04 3,548.91 7,769.94

61900 · Sponsorships & Contributions 12,691.80 4,196.99 12,590.77 29,479.56

Total 61000 · Administrative Expenses-Shared 49,517.48 17,928.87 53,650.62 121,096.97

62000 · Building Expenses - Shared 62100 · Building & Grounds 2,607.11 977.52 2,931.72 6,516.35

62200 · Facility Maintenance 627.77 248.62 693.09 1,569.48

62300 · Office Rent 9,269.55 3,476.08 10,428.25 23,173.88

62400 · Property Taxes 694.00 260.26 780.75 1,735.01

62500 · Storage Rent 1,061.60 398.10 1,194.30 2,654.00

62700 · Telephone & Internet 4,910.46 2,027.52 5,338.50 12,276.48

62900 · Utilities 2,438.07 914.55 2,742.86 6,095.48

Total 62000 · Building Expenses - Shared 21,608.56 8,302.65 24,109.47 54,020.68

63000 · Personnel Expenses - Shared 63100 · Salaries & Wages 186,754.34 70,032.89 210,098.64 466,885.87

63200 · Payroll Taxes 15,826.35 5,934.92 17,804.65 39,565.92

63300 · Benefits Contributions 34,032.85 12,762.43 38,286.92 85,082.20

63400 · Retirement Contributions 2,596.00 973.50 2,920.50 6,490.00

63500 · Payroll Fees 146.29 69.05 150.41 365.75

63600 · Workers Comp Insurance 1,205.60 452.10 1,356.30 3,014.00

Total 63000 · Personnel Expenses - Shared 240,561.43 90,224.89 270,617.42 601,403.74

64000 · Professional Services - Shared 64100 · Accounting & Legal Service 2,772.00 1,039.50 3,118.50 6,930.00

64200 · HR Support Services 1,872.74 702.28 2,106.85 4,681.87

64300 · Investment Services 1,640.65 615.29 1,845.73 4,101.67

64700 · Technology Support Services 5,638.58 2,114.47 6,343.40 14,096.45

64900 · Other Contracted Services 8,446.40 3,167.40 9,502.20 21,116.00

Total 64000 · Professional Services - Shared 20,370.37 7,638.94 22,916.68 50,925.99

71000 · Operations Expenses 71100 · Committee Expenses 1,017.68 60.00 0.00 1,077.68

71200 · Contract Expenses 60,410.07 0.00 0.00 60,410.07

71400 · Member Supplies 2,058.52 0.00 0.00 2,058.52

71600 · Staff Meals 1,711.85 834.97 1,329.71 3,876.53

71700 · Staff Mileage 2,477.51 962.08 2,045.05 5,484.64

71800 · Travel Expenses 2,264.93 922.41 328.14 3,515.48

71900 · VAFB Expenses 2,500.11 0.00 0.00 2,500.11

Total 71000 · Operations Expenses 72,440.67 2,779.46 3,702.90 78,923.03

72000 · Prof. Development Expenses 72100 · Dues & Subscriptions 3,865.84 929.17 2,658.32 7,453.33

72200 · Education & Training 2,178.95 2,115.16 0.00 4,294.11

Total 72000 · Prof. Development Expenses 6,044.79 3,044.33 2,658.32 11,747.44

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73000 · Marketing & Sales Expenses 73100 · Advertising Expenses 1,384.48 15,412.80 41,509.97 58,307.25

73200 · Business Attraction Expenses 144.60 6,963.48 2,478.82 9,586.90

73300 · Marketing Collateral Expenses 0.00 0.00 19,716.04 19,716.04

73400 · Product Sales Expenses 1,697.55 0.00 0.00 1,697.55

73500 · Public Relations Expenses 3,189.02 1,283.50 28,631.81 33,104.33

73600 · Special Event Grants 0.00 0.00 67,190.00 67,190.00

73700 · Trade Show Expenses 0.00 0.00 21,654.12 21,654.12

73800 · Website & Social Media Expenses 383.09 277.97 407.94 1,069.00

Total 73000 · Marketing & Sales Expenses 6,798.74 23,937.75 181,588.70 212,325.19

81000 · Event Expenses 81100 · Advertising & Promotional 3,754.59 0.00 0.00 3,754.59

81200 · Awards & Plaques 5,917.46 64.41 0.00 5,981.87

81300 · Catering 49,798.21 0.00 647.01 50,445.22

81400 · Entertainment & Speaker Fees 3,394.75 0.00 100.00 3,494.75

81500 · Facility & Decorations 12,575.82 3,386.30 0.00 15,962.12

81700 · Miscellaneous Event Expenses 7,093.28 227.76 119.18 7,440.22

Total 81000 · Event Expenses 82,534.11 3,678.47 866.19 87,078.77

Total Expense 499,876.15 157,535.36 560,110.30 1,217,521.81 Net Income -630.12 -2,812.51 -10,017.59 -12,625.85


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Appendix 4:Commercial/Industrial Real Estate Update 2016Note: This analysis was commissioned by the Santa Maria EDC and produced by Pacifica Commercial Realty at the beginning of 2016. The information presented here is offered as a snapshot of the local market. The data was accurate to the best of our understanding at the time it was generated; details related to specific projects, properties, and values may have changed in the interim.

General Update

Commencing in January 2014, we began to see a noticeable increase in demand. Construction (both residential and commercial), which came to a screeching halt in early 2009, began to increase moderately. Projects that were halted with an unknown re-commencement date started to show signs of life. New Retail projects began to show signs of life after a prolonged dormancy (Regal Cinemas Town Center Mall, Joann’s Fabrics, WalMart Market- 2 locations, Fallas Department Store). Residential tracts that were paused during the downturn started building once again (LaVingna, Westgate Ranch, Rice Ranch-Orcutt). Though our residential market (like similar markets nationwide) was dramatically affected by illogical sales and equally illogical lending, adjustments were made and our home buying public seems to have returned, albeit at a materially lower price point. We are once again approaching a Seller ’s market with anemic interest rates making very attractive opportunities to ‘qualified’ buyers.

General Market Values: Rental rates and sales prices have increased from recent years as market trends continue to improve. Higher demand and lower supply are allowing slow but steady increases in lease rates with higher rates of appreciation for sales values. Capitalization Rates for quality investment properties in the Santa Maria Valley are hovering in the 5% to 6% range. Many tenants (across all market sectors) are renegotiating their leases with landlords in an effort to establish longer-term tenancies based upon previously suppressed lease rates.

Specific Lease Rates: Within the last 18 months, overall market values have experienced reasonable adjustments. Industrial lease transactions that peaked in the $.75nnn to $.95nnn range dropped dramatically and are now being executed in the $.50 Gross to $.75 nnn range. Retail rents once found in the $1.75nnn to $2.50nnn range are now found in the $.80 nnn to $2.50 nnn range. Office rents are by far the least affected by increased market variables and remain in the $1.00 nnn to $1.75 nnn range (with the exception of Medical Office Rents, which are generally higher due to increased parking requirements and heavy utility needs within the space).

Specific Sale Prices: Although we have seen significant increases in the sale prices of Industrial buildings, we are not nearing ‘top of the market’ (2007) prices once found in the City of Santa Maria. Some of the highest recent Industrial Sale Comparables are found in the $110 to $125 per square foot range. Most of the higher priced sales were smaller, owner-occupied buildings (3,000 sf to 10,000 sf) in the Southwest Sector. Retail building sales once recorded in the $300+ per sf range are trading in the $200 to $250 square foot range for newer properties (with several exceptions to due to specific high-demand locations). Office building sales range from +/-$125 to $200 per square foot. Industrial Land Sale comparables are generally found at $6 to $7/sf range, and Retail and Office Land Sale comparables are found in the $14 to $25 per sf range. In general, overall commercial/industrial sale prices are increasing, but remain off of their peak by +/-20%.


Significant Market-wide Events & Developments

Area 9: The addition of approximately 900 acres of industrial land into the City of Santa Maria by annexation of parcels bordered by Betteravia, Black, and Stowell Roads (Area 9) were initially thought to be long-term industrial growth for Santa Maria. However, Windset Farm’s large scale Hydroponic Greenhouse operation acquired a significant portion of the annexed land and is operating over one million square feet of greenhouse/growing/processing facilities on Black Road.

Betteravia Plaza: Approximately 56 acres of land, which was part of the Santa Barbara Research Center/Hughes Aircraft Company was being processed for subdivision into +/-30 industrial parcels. However, lack of demand by industrial users for that location prompted a ‘rethinking’ of the property’s future. Bordered by two of the most highly traveled thoroughfares in the Southwest Sector (Betteravia & S. Blosser/Skyway Drive) this future subdivision was re-zoned through a General Plan Amendment and will be home to signficiant Retail/Commercial services, Commercial Professional Offices, and Multi-family units serving the Southwest Sector

Santa Maria Police Department: The culmination of nearly seven years of effort resulted in the occupancy of 1111 West Betteravia by the City of Santa Maria’s Police Department. In a very strategic move to meet the long-overdue facility needs of the Police Department, the City went above and beyond in the refurbishing of a 72,000 square foot former R&D building to create a state-of-the-art Law Enforcement facility that has the capability to provide Regional and Statewide Law Enforcement Training and Emergency Services.

Enos Ranch: The last sizable retail development with Highway 101 visibility in the city limits of Santa Maria is on slate to become a reality in 2016. The long-awaited Enos-Buss Site will be transformed into Enos Ranch. This +/-111 acre site bordered by S. Bradley, Betteravia, College, and Battles roads will contain Regional Retail, Auto Dealerships, and Residential uses. Regional Retail users include Costco, Lowes, Dicks Sporting Goods (& a host of smaller retailers), along with +/-13 acres of new automobile dealerships.

Federal Express Ground Transportation Facility: Construction bids have gone out for a new +/-160,000 square foot Fed Ex facility to be located in the 1500 Block of Fairway Drive. With anticipated ground-breaking in 2016, this facility will add to Santa Maria’s stable industrial employment base.

Spec Warehouse Facilities. Two new 50,000 square foot warehouse facilities immediately adjacent to the future Fed Ex site were recently built and are ready for occupancy.

Santa Maria’s agricultural employment base that continued to thrive throughout the general economic downturn still thrives. Included in the agricultural segment are numerous Wineries, Wine Processing/Storage/Bottling facilities and Processing/Cooling/Packaging operations (Lineage Logistics, Seaside Packaging, Gold Coast Packaging, Brothers Best Produce/Agro-Jal, Maxco Packaging).

Industrial Sector

Our database shows that the Santa Maria Industrial Market is comprised of approximately 8,650,000 square feet of buildings (both vacant and occupied). This total includes all existing buildings and substantially completed new construction in the M1, M2, and CM zoning areas (excluding mini-storage). A recent survey shows a total current vacancy in the Industrial Market of approximately 325,000 square feet (up/ from +/- 190,000 square feet as reported in 2013, but +/-100,000 sf represents new inventory on the market). The overall vacancy factor in our Industrial Sector now stands just below 4% percent.

Industrial Land: There are relatively few parcels of industrial land available for sale in the Santa Maria Valley. Those available are listed for sale in the $7.00 to $9.00 per square foot range. Most of the vacant parcels of land that were being processed with development plans or for build-to-suit opportunities saw little or no activity during the downturn. When our Industrial market vacancy dipped below 5%, we started to see the return of speculative construction.

Industrial Buildings: New, speculative development opportunities broke ground in 2014 in anticipation of demand for mid-year 2015. However, the total area of these projects does not exceed 150,000 square feet. Large industrial facilities vacated in recent years were leased on long-term commitments by some of Santa Maria’s most prominent private employers (Zodiac Aerospace, Windset Farms, Agro-Jal).

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Santa Maria Office Sector

The Office component of Santa Maria’s commercial real estate market is comprised of approximately 1 million square feet, both occupied and vacant.

For the purpose of tracking information, observing trends, and maintaining statistics, we have demised Santa Maria’s Office real estate market into four Sectors within the City Limits (SW Sector, SE Sector, NW Sector, & NE Sector). For the purpose of establishing geographic boundaries, the Sectors are demised by the Broadway/Highway 135 (running north & south) and Stowell Road (running east & west). For the purpose of this study, office properties owned and occupied by governmental agencies are not included in our Office Sector Base.

Vacancy Factor: It is believed that our Vacancy Factor in the Office Market (contained in all three product types) is less than 3.5%. This low vacancy factor represent a considerable advantage to existing building Owners with respect to market lease rates (“Landlord’s Market”) and potentially higher lease rates being paid by tenants (especially those with specific criteria/amenities in their Site Searches. 2013 through 2015 saw significant movement in Santa Maria’s Office Sector. With the leasing of 2050 South Blosser (32,000 sf) and 302 West Carmen Lane (12,000 sf) the largest vacant office properties are now occupied by long-term tenancies. Furthermore, the medical office spaces within the 116 S. Palisades Building (‘Marian Hancock Building’) have been leased, and that project is enjoying 100% occupancy.

Vacant land that can be used for the construction of new Office product is also substantially below what is considered typical for most markets. There is one remaining lot at McCoy-Depot project with the most recent construction of a new 7,200 square foot ‘spec’ office building. The Santa Maria Wisdom Center project will soon break ground as part of the McCoy-Depot project. There are few ready-to-build parcels of land suitable for the construction of new Office Projects at this time.

Office Space/Product Types: There are two general types of Office Space within the City of Santa Maria: General/Professional Office Space, and Medical Office Space. Demand and values for each vary greatly based upon location, age, and tenancies.

General/Professional Office - The majority of Santa Maria’s Office Market could be described at either General Office Space or Professional Office Space. The ‘Use’ of the building is the determining factor between ‘Professional Office’ or ‘General Office’. In many cases, there is a subjective line between the two categories of office space users, and some multi-tenant properties contain both General and Professional Office users. Professional Office uses include: Accountants/CPAs, Lawyers, Architects, Engineers, Escrow & Title Offices, Real Estate Brokerages, Appraisers, Financial Advisors, and Insurance Agents. General Office uses include Corporate Offices, Non-Profit Agencies, Consultants, Service Providers, and Government Offices.

Santa Maria’s Office Market consists of buildings that have been built using a wide range of construction methods. General Office space and Professional Office buildings are found throughout the City on both major arterials and secondary streets. Buildings in Santa Maria’s General/Professional Office categories include a wide range of variables, including:

• Older construction, refurbished to current Building Codes • Converted/Up-zoned structures (commercial, industrial, and/or residential) • Single-story/Multi-story; Elevator served; ADA Compliant; current Building Code • Varied Parking Ratios

Office Space/Buildings are dispersed throughout the City. Because the north end of the City Limits tends to be older residential units & commercial space, most of Santa Maria’s General and/or Professional Office Space is found along the Main Street corridor south to the Community of Orcutt. Santa Maria’s Office Base consists of newer & older structures, single-tenant & multi-tenant buildings, and single story or multi-story structures. Similar to Medical Office Buildings (“MOBs”), building trends and the general age of Office Space/Buildings often determines the type of construction used when they were built. Most of the older structures are made of wood/stucco, while the newer structures are made of either concrete tilt-up panels or steel frame/stucco. The City of Santa Maria requires General and Professional Office Space/Buildings to meet a Parking Ratio of 4 parking spaces/1000 square feet of building area. General/Professional Office Space is generally found in the CPO (Commercial Professional Office) Zoning, C2 (Commercial/Retail) Zoning, or PF (Public Facilities) Zoning.

Medical Office Buildings (“MOBs”) - A significant majority of the Medical Office Space is within close proximity to Dignity Hospital. However, there are multiple medical ‘submarkets’ in the City wherein medical office uses and MOBs are clustered. Santa Maria MOBs are constructed from various building materials (often determined by age/trends) and in a wide range of


sizes. City Zoning Ordinance requires MOBs to meet a Parking Ratio of 6 spaces/1000 sf of building area. Within the City of Santa Maria, there are several geographic areas where a higher concentration of MOBs are found, including:

• Dignity Hospital Area (includes Palisade Drive, Cypress, & Stratford) • Broadway Corridor (and one-block side streets both north and south) • Main Street Corridor (both east and west) • East Stowell Road • Betteravia Road (east and west)/W. McCoy Lane

Commentary

The Commercial/Industrial Real Estate market of the Santa Maria Valley remains stable. Demand for existing facilities has been steady throughout the last twelve months with a mixture of prospects looking for facilities to lease or buy. Our strong employment base of local and regional employers in both medium technology and agricultural sectors remains our City’s greatest asset.

Most of the vacancy factor throughout the market can be found in larger freestanding buildings in the range of 25,000 to 50,000 square feet. Most multi-tenant industrial parks with smaller unit sizes (less than 1,500 square feet) have experienced increasing demand from smaller firms looking to either start up in Santa Maria or expand from other regional locations. Similarly, demand for medium sized units (3,000 to 6,000 sf) has increased over the prior 12 months.

As discussed in prior Industrial Market Profiles, the Santa Maria Industrial Market is segmented into four main Areas:

Area Major Streets Southwest Skyway/Betteravia Northwest Blosser/W. Stowell/Main East E. Stowell/E. Boone North Roemer/Preisker/Carlotti

Southwest Area – The Southwest area recognized several significant events during the 2013 through 2015 time period. Company expansions coupled with construction of new facilities has increased the overall base and the vacancy factor as well. The current vacancy factor in the Southwest area (including completion of the buildings under construction) represents approximately 2.3% (or approximately 200,000 square feet). One half of the SW Sector vacancy is attributed to two brand new, state of the art, High Bay Distribution buildings (totaling 100,000 square feet); The 58,000 square foot facility at Skyway/Betteravia (formerally occupied by UPS Teleservices was purchased, remodeled, and occupied by Rabobank in January 2015. This facility now serves at the permament home to Rabobank’s Regional Banking Center; Several Wine and Agricul-tual companies expanded their related companies in the SW Sector, and Zodiac Aerospace leased an additonal 157,000 square feet (two former Den Mat facilities on Skyway Drive) during the 2013 through 2014 time period. Federal Express will break ground on a new +/-160,000 square foot build to suit on Fairway Drive; and Hayward Lumber is under construction with an additional +/-20,000 square foot warehouse building materials on West McCoy Lane. The North County Jail Facility is scheduled to break ground in 2016. This 500 bed, state of the art Detention Facility will create even more stable jobs to the Santa Maria Valley and further drive demand for services and housing in the Southwest Sector.

Northwest Area – This submarket is the second largest in the City. Current Vacancy in the Northwest Area stands at close to zero. Several events occurring in the Sector are noteworthy. Bonita Packing, Cal-Giant, Driscoll Strawberries, Gold Coast Packing and Linneage Logistics have built and occupied large processing and cooling facilites near the westernmost City Limits. Three separate industrial buildings of +/-10,000 square feet each in the NW sector were sold within +/-6 months of each other (Western Avenue/Morrison). The former Sears Warehouse (36,000 square feet) was leased to On-Trac (an overnight package delivery service).

East Area – The most significant property in this Sector is represented by the Columbia Business Center. There remains minimal availability in the +/-157,000 sf CBC complex of less than 10,000 square feet. A portion of the CBC was sold to Shepard Eye Center in 2014 and converted into an Optimology Facility. North Area –The combined Gateway Business Park and Gateway Plaza projects remain at approximately 90% occupancy. Those projects along with several trucking, equipment, and food related companies currently make up the bulk of the North

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Sector. Three new projects to be built (with construction to start 4th quarter 2016 or early 2017) will absorb the +/-4.5 vacant acres south of Gateway Plaza. The North Area was further boosted by the addition of two new Hotels at N. Broadway and Preisker Land. The North Area inventory is approximately 560,000 square feet with +/-27,000 square feet vacant resulting in a vacancy factor of 4.8%.

Summary Commentary

The supply of finished, industrial zoned land has essentially been depleted. Most all of the parcels which were 1 to 5 acres have been sold. The Santa Maria Public Airport District has commenced with the marketing of their industrial parcels south of the Airport.

Investor interest in the Santa Maria market is steady and growing. Unfortunately, quality leased investments are few.

Demand for Retail services continues to be a very strong component of Santa Maria’s economy.

We believe that Central Coast of California will continue to outpace the rest of the nation. Quality of life remains one of the strongest factors affecting demand. Affordability of housing, labor, and pro-business/development climate will retain Santa Maria’s position as an economic leader in Santa Barbara County.

Summary of Property ValuesSales and Lease values are summarized as follows (all values are expected to remain in these ranges through 2016 but will likely rise as vacancies are absorbed):

Industrial

Projected Building Sales: High-end space over 50,000 square feet $90.00-$120.00/sf High-end space 20,000 to 50,000 square feet $100.00-$125.00/sf High-end space under 20,000 square feet $110.00-$135.00/sf Lower-end space $75.00-$95.00/sf

Projected Lease Rates: High-end space over 50,000 square feet $0.60-$0.75/sf NNN High-end space 20,000 to 50,000 square feet $0.65-$0.80/sf NNN High-end space under 20,000 square feet $0.50-$0.70/sf NNN* Lower-end space $0.50-$0.60/sf Gross *or lower due to higher percentage of older buildings

Projected Land Value: $6.00-$8.00 per square foot

Retail/Office (excludes leased investments & MOBs)

Projected Building Sales: High-end space 20,000 to 50,000 square feet $180 - $200/sf High-end space under 20,000 square feet $190 - $225/sf Lower-end space $100 - $125/sf

Projected Lease Rates: High-end space 20,000 to 50,000 square feet $0.75-$1.50/sf NNN High-end space under 20,000 square feet $1.50-$2.50/sf NNN Lower-end space $0.80-$1.25/sf NNN

Projected Land Value: $14.00-$25.00 per square foot

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