Shasta County Demographics the center of trade and commerce for Northern California
Shasta County is located at the northern end of the Sacramento Valley, equal distance between San Diego and Seattle on Interstate 5; 160 miles north of Sacramento and 230 miles north of San Francisco. There are three incorporated cities in Shasta County: Redding, Anderson and the City of Shasta Lake.
Redding, the county seat, with a population of 88,000 is the largest city north of Sacramento, it is the center of trade and commerce and a regional hub for retail, education, professional services and government.
Shasta Biz Business and Economic Development Services in Shasta County
Superior California Economic Development Superior California Economic Development provides assistance in economic development planning, coordination and implementation and provides small business training, counseling and financing assistance with the goal of creating stable, long-term employment opportunities in the private sector economy.
Smart Business Resource Center Smart Business Resource Center services assist job seekers in obtaining employment and enable employers to meet the growth, retention, training and staffing needs of their business. We are your workforce center in Shasta and Trinity counties, providing services to you at low or no cost.
Small Business Development Center at Shasta College and College of the Siskiyous The Small Business Development Center assists existing business to be competitive in a complex marketplace and helps new entreprenuers realize their dream of business ownership. No Cost Consulting Services, Low or No Cost Workshops, Information Resources.
Center for Economic Development at CSU Chico The mission of the Center for Economic Development (CED) is to educate and build the knowledge and capacity of California economic development professionals and enhance the well-being of the region's citizens by facilitating sustained, long-term, and coordinated economic development strategies.
Setting Up Business in California: A Guide for Investors (pdf document) The objective of Setting Up Business in California: A Guide for Investors, July 2009 is to: Outline and briefly describe the general procedures for establishing a business in California; Provide links to documents that may need to be filed to legally setup and operate a business in California; and, Serve as a resource guide to government entities and affiliated agencies and organizations that a business may contact in the establishment process.
California Business Portal This website provides a portal to a number of resources for starting, growing, financing, expanding or relocating a business in California.
ShastaFACES - Family Assistance through Contracted Employment Services Approximately $7.8 million in federal stimulus dollars are now available to local Shasta County businesses to hire qualified employees at little or no cost. ShastaFACES - Family Assistance through Contracted Employment Services - is a subsidized work program designed to put un-employed or under-employed parents back to work while helping local business owners stabilize or grow their business during difficult economic times.
WHAT IS AN ENTERPRISE ZONE? The Enterprise Zone Program targets economically distressed areas throughout California. Special state incentives encourage business investment and promote the creation of new jobs. The purpose of the program is to provide tax incentives to businesses and allow private sector market forces to revive the local economy. On November 6, 1991, the State designated the Shasta Metro Enterprise Zone, which expired on November 5, 2006. Shasta County applied for a new zone and received final designation effective November 6, 2006 to November 5, 2021. The new zone has some differences in boundaries, but encompasses all of the industrial and most of the commercial zoned areas.
SHASTA METRO ENTERPRISE ZONE BENEFITS
The state offers the following tax credits and benefits that reduce the cost of hiring new employees and investing in equipment in the Shasta Metro Enterprise Zone: • Hiring Tax Credit • Sales and Use Tax Credit • Business Expense Deduction • Net Operating Loss Carryover • Deduction for Lenders • Bid Preference on State of California Contracts
Your business address must be on this address list to take the enterprise zone state tax credits:
This list is subject to change. We would be glad to check an address if there is a question edc@shastaedc.org.
If you need to refer to the address ranges from the expired Shasta Metro Enterprise Zone (11/6/91 to 11/5/06) for recapture purposes CLICK HERE
HIRING TAX CREDIT
If you regularly hire new employees or you are planning an expansion, this tax credit can save you thousands of dollars. By hiring "qualified" employees, you can claim up to 50% of your employee's wages in the first year of employment. The credit percentage decreases by 10% annually, phasing out after five years.
To take the hiring tax credit each employee must be "vouchered". Vouchers must be processed through our vouchering agent at the Smart Business Resource Center. Please visit the Smart Business Resource Center for forms and more information.
Targeted Employment Areas: Once the business has confirmed that it is in the enterprise zone, one of the ways the business can determine if an employee is eligible to be vouchered is if the employee resides in certain designated lower income census tracts, called Targeted Employment Areas (TEA). For employees hired during the Shasta Metro Enterprise Zone effective 11/6/2006 to 11/5/2021: The following census tracts are designated TEAs effective 11/6/2006:
101
102
103
104
105
107.01
109
112
113
116
117
120
121
122
123.01
125
127.01
127.02
Use the following street list to determine if the employee's residence is in the TEA:
If you are using the TEA to reclaim hiring tax credits during the Shasta Metro Enterprise Zone effective 11/6/1991 to 11/5/2006: You must use the following TEA census tracts for those employees hired 5/12/98 to 10/15/08:
101
105
116
117
120
CLICK HERE for a list of addresses in these five census tracts. This address list is not complete for some of the census tracts so if you do not see the address in the address list CLICK HEREto link to a website that will allow you to do a search of the address. The resulting report will include a Tract Code, which is the census tract.Please print that report page and submit with the voucher application.
If you have questions about the hiring tax credit contact our vouchering agent at (530) 246-7911 or shastazone@thesmartcenter.biz
SALES AND USE TAX CREDIT
Individuals, partnerships and limited liability companies may claim a credit equal to the sales or use tax paid or incurred on the first $1 million of qualified machinery purchased. For corporations, the limit goes up to $20 million. Some lease options may qualify as well.
Qualified property is machinery or machinery parts used to: • Manufacture, process, fabricate, or otherwise assemble a product; • Produce renewable energy resources; or • Control air or water pollution.
In addition, qualified property is: • Data processing and communications equipment including, but not limited to, computers, computer-automated drafting systems, copy machines, telephone systems, and fax machines; and • Motion picture manufacturing equipment central to production and postproduction, including but not limited to, cameras, audio recorders, and digital image and sound processing equipment.
The business must use the property exclusively within the boundaries of the Enterprise Zone.
BUSINESS EXPENSE DEDUCTION
This provision can make start-up or expansion less expensive by allowing you to expense out the cost of equipment in the first year it is placed in service, rather than depreciating the cost of the property over its useful life. Enterprise Zone businesses may elect to treat 40% of the eligible cost of qualified property as a business expense rather than a capital expense.
Eligible property includes those items that you would expect to depreciate: tangible personal property (excluding buildings) and most equipment and furnishings purchased for exclusive use within the Enterprise Zone. Office supplies and small nondepreciable items are not included.
Once the property has been put into service within the Enterprise Zone, you must wait a minimum of two years before selling it or removing it from the zone. You must elect to expense the property during the first year the property was placed in service. If the cost of the item exceeds the maximum expense amount, you may expense up to the cap, and then depreciate the remainder in subsequent years.
NET OPERATING LOSS CARRYOVER
Businesses located in the Enterprise Zone have the option of carrying over 100 percent of the business's net operating losses over 15 years on their state taxes.
Net operating losses (NOLs) occur when your business deductions exceed your business income, resulting in a net loss for the company. As your business recovers in succeeding years, you can recover the amount of the loss by deducting it from your state taxes. There are just a couple of limitations: • The NOL can be carried forward but not back; and • If you elect the Enterprise Zone NOL deduction, you are prohibited from carrying over any other type of NOL from the same year.
DEDUCTION FOR LENDERS
The net interest deduction for lenders was created to encourage loans in areas that might otherwise be avoided. A deduction from income is allowed on the amount of "net interest" earned on loans made to a business located in the Enterprise Zone. "Net interest" means the full amount of the interest, less any direct expenses incurred in making the loan.
While the deduction is for the lender, not the business, the business benefits indirectly by receiving a loan that might otherwise have been turned down.
Eligible loans may be used for inventory, buildings, equipment, and working capital. The trade or business receiving the loan must be located solely within the enterprise zone, and the funds must be used exclusively for activities in the zone. The deduction is available to noncommercial lenders as well as commercial; however, the lender may not have equity or other ownership interest in the business.
PREFERENCE POINTS ON STATE CONTRACTS
The Enterprise Zone Act (EZA) provides a 5 percent bid preference on service and commodity contracts valued at more than $100,000, if the business work site is located in an Enterprise Zone. Bid preferences do not apply to construction or other contracts where the provisions of the State's contract fix the work site.
The EZA allows state contracting officials to give California-based companies the bid preference when 50% of the labor required to perform a commodities contracts, or 90% of the labor for services contracts, is performed at the approved EZA work site(s). To receive a contract award based on preferences, the company must certify under penalty of perjury that the required contract labor shall be accomplished at the approved work site.
Companies qualifying for the 5 percent work site preference may request an additional 1 to 4 percent workforce preference by certifying to hire a specified percent of their contract workforce labor hours from a targeted employment area, or from Enterprise Zone eligible employees.
California State Franchise Tax Board Enterprise Zone Hotline (916) 845-3464
LOCAL INCENTIVES
Job Credits and Fee Deferrals
Each jurisdiction in Shasta County offers some kind of "Job Credit" program that benefits new or outstanding manufacturers. Depending on the location, these "Job Credits" could be used to lower development fees or offset other development costs.
Electric Rate Discount
Local municipal utilities offer discounted and negotiated rates for commercial/industrial customers. Savings from normal rates are significant.
Labor Shasta County's development as a service hub has had the effect of creating large unemployment gaps with seasonal and cyclical industries. The unemployment rate consistently remains well above the state and national averages. There are also a large number of underemployed people working part-time or in lower paying service jobs. Estimates indicate 10,000 people are actively seeking full-time work in the county. Once an individual is part of the workforce, the desire to remain employed is strong. This results in below average turnover for local employers.
Employers in Shasta County have characterized the local workforce as one with relatively low employee turnover and absenteeism. Shasta County has 180,000 people; 44% of these are in the workforce; another 9% are looking.
Highly educated and skilled workers are attracted to the area's superior quality of life. Shasta County's wage rates for most occupations are generally below those of comparable occupations in California as a whole, but are expected to rise moderately in all areas. Growth is expected to be fastest in the area of services, retail trade, construction and mining followed by wholesale trade, government, transportation and public utilities. Increases in manufacturing will be significant as established firms expand and new manufacturers move into the area.
Shasta County Area Workforce Study Commissioned by Shasta EDC, The Pathfinders organization employed its experience in conducting workforce studies for both corporate and government site selectors to produce this Shasta County Area Workforce Assessment.
A sampling of the conclusions:
Almost 10% of Shasta County's workforce is "underemployed" and has the skills, education, experience, and willingness to take a better job.
74% of Shasta County employers rate their workers as good or excellent in reading and writing competency.
81% of employers rate their workers as good or excellent in calculations competency.
94% of employers rate worker's productivity as good or excellent.
Absenteeism was rated as low, turnover was rated as low, and substance abuse was rated as very low.
The labor market in this area has an abundance of experienced supervisors, managers, accountants, bookkeepers, computer operators and programmers, as well as others. The EDD job match system lists more than 600 persons with Bachelor Degrees or beyond registered for work. More than 85% of the County's unemployed hold High School degrees or better.
Labor competition is relatively low within Shasta County due to the surplus of job seekers. This is not forecast to change in the next 5 to 10 years. What most potential employees desire is the opportunity to work in a pleasant environment, remain in the area close to their family and friends, and gradually advance to a position where they can progress on the job and enjoy the benefits related to that progress (higher wages, full time employment, health benefits, etc.).
2009 Annual Average Labor Force and Industry Employment
Employment Services Employment services are available to all employers in the county, both established and prospective employers. The State of California Employment Development Department maintains offices in Redding and is closely linked with other recruitment and training agencies such as the Smart Business Resource Center. Under the nationally mandated Welfare Reform Legislation, it is likely that during the next five years all locations throughout the United States will see more government incentives with respect to training the unemployed and the underemployed. Shasta County is likely to be at the forefront of California counties in positioning itself for all available government incentives and bonuses for employment and training services.
Education & Training
Name of Institution
Number of Students
Shasta Community College
12,000
Simpson University
1,200
California State University
15,919
Education & Training
Shasta County Education Shasta County is the home to 25 school districts. This includes more than 75 public schools and in excess of 20 private schools, from elementary to high school. Shasta County is dedicated to the success of their schools and invests in the education system. Each school district expends an average of more than $8,000 financing on each student per school year. The statistics show that Shasta County’s district expenditures have increased almost two fold since 1995. The financial backing of the county gives each student a great opportunity for success.
Student-teacher ratings are vital to the learning environment in the classroom. Since 1995, the number of students in Shasta County schools has more or less remained constant, while the number of full-time equivalent teachers has risen by more than 15 percentage points. The latest data shows the average student-to-teacher ratio in the county is 20.5/1. This is below the state average of 21/1. Finally, the amount of high school students who receive diplomas each year has increased significantly (over 35%) since 1995. Again, this is occurring while the number of students has not significantly increased.
An analysis of test scores rates Shasta County schools as the cream of the crop in California. The Academic Performance Index (API) is a statistic based upon test scores of students in each school district. Each school is rated on a scale of 200 – 800. The average API score in California is 709. Conversely, the average API score in Shasta County is 740. The following graph compares the test results, according to the California Department of Education’s 2005 statistics:
For more information on schools in Shasta County please visit the Shasta County Office of Education’s website at www.shastacoe.org. All API data was adapted from http://api.cde.ca.gov/reports.asp. Teacher student information has been compiled from the National Center for Education Statistics (http://nces.ed.gov/index.asp).
Training Smart Business Resource Center: The Smart Business Resource Center is located at 1201 Placer Street in Redding and provides services to both Shasta County job seekers and the local business community. Our services assist job seekers in obtaining employment and enable employers to meet the growth, retention, training and staffing needs of their businesses. Follow the link for a comprehensive list of training and educational services.
Economic and Workforce Development (EWD) Division at Shasta College: The mission of the Economic and Workforce Development Division at Shasta College is to provide quality services and programs that benefit the community, employers and employees of the region thereby contributing to a better quality of life, the local economy and a more flexible and well-prepared workforce.
Employment Development Department: The EDD office is located at 1325 Pine Street in Redding. EDD administers the unemployment insurance program, provides services to area Veterans and manages California's Internet system for linking employer job listings and job seeker resumés, CalJOBS. The EDD also tracks, interprets and reports labor market and demographic information for five Northern California counties. For more information, visit www.EDD.ca.gov.
Higher Education Shasta Community College: Shasta Community College is located just five minutes from downtown Redding. The 39-building campus is located on 337 acres serving the students as well as the community. A diverse array of occupational programs are offered at the college, two of the most significant are the Electronics Vocational Training Program and the Nursing Program. 12,000 students are enrolled.
Simpson University: Simpson University is one of America's fastest growing accredited private universities. Programs are offered in psychology, business, missions, ministry, music, education and a wide variety of liberal arts. Simpson offers an innovative Degree Completion Program (evenings), and 13 outstanding graduate and educational credentialing programs, giving an enrollment of around 1,200 total students.
California State University, Chico: CSU, Chico is located just 75 minutes southeast of Redding. University extension classes are also offered in Redding for those not able to commute. Enrollment at the University is 15,919.
Institute of Technology: A California career-focused college. The Redding location offers courses in the medical field.
National University: National is a private university offering a range of four-year and graduate degrees in business and technology; education and human services; and arts and sciences. Classes are designed toward working adults.
Manufacturing
Shasta County – The Preferred Location for Business and Industry
Public Safety Services A great deal of investment and effort has been made by local officials to provide a healthy and safe environment in Shasta County.
Crime: A comprehensive crime report for Shasta County is available at the Redding Police website. Shasta County, the City of Redding and the City of Anderson together employ more than 350 sworn officers. On a countywide scale this is equal to 1.5 sworn officers to every 1,000 residents. The crime rate in Shasta County is 65% lower than the statewide average and over 70% lower than Sacramento and Seattle. The following chart compares the latest data on crime rates between Shasta County and the State of California from the California Department of Justice. The data is shown based upon crime per 100,000 people.
Fire: The Shasta County area is complete with 19 fire departments. The City of Anderson is home to one full-time fire station with 30 employees. This fire station has received a class 5 rating. The City of Shasta Lake has three fire stations and 27 employees. This fire station has received a class 4 rating. Finally, the City of Redding Fire station has eight fully equipped stations, 72 full time employees and a class 3 rating. The Redding Fire Department’s operations include: fire suppression, emergency medical response, hazardous materials response, aircraft rescue and firefighting, in addition to a comprehensive fire prevention department. For more information please see http://www.ci.redding.ca.us/fire/operations.htm.
Shasta County…the Other California Experience a Different Quality of Life
Located at the gateway to the Shasta Trinity National Recreation Area, Shasta County offers a seemingly endless variety of recreation possibilities. Shasta County provides residents and visitors access to some of the most dramatic outdoor venues imaginable, including towering Mt. Shasta, one of the tallest mountains in the United States at 14,200 feet. Lassen Volcanic National Park, Whiskeytown National Recreation Area, massive Shasta Dam and lake, and majestic Burney Falls are all within a short distance from most Shasta County locations. The City of Redding has also invested in numerous local attractions that provide great outdoor recreational and cultural opportunities for its residents, a few of which are described below.
Turtle Bay Exploration Park: The Turtle Bay Exploration Park, museum and arboretum is truly a one-of-a-kind offering in Shasta County. The 300-acre campus offers entertainment and educational activities of all kinds that will enthrall children and adults alike. The museum includes a river aquarium, art gallery, river lab and exploration hall. After a few hours at the museum visitors can continue exploring the monolith, Paul Bunyan’s Forest Camp, an enclosed butterfly garden or the beautiful Sacramento River.
Sundial Bridge: Serving as a bridge between the Turtle Bay Exploration Park and the McConnell Arboretum, the Sundial Bridge is an engineering masterpiece. As a free-standing structure, the bridge is able to serve its human visitors as well as protect the environment and fish below. The glass floor of the bridge offers a beautiful viewing deck that is supported by 4,300 feet of cable and 115 tons of steel.
McConnell Arboretum and Gardens: Located adjacent to Turtle Bay Exploration Park and the Sundial Bridge is a beautiful 200 acres of Mediterranean style gardens. While walking on the trails, one will see an excess of 10 themed gardens, which botanically represent grounds indigenous to Australia, Chile, South Africa and more. The McConnell Foundation has been instrumental in improving the quality of life in Shasta County. In addition to the arboretum, the foundation also runs Lema Ranch, where individuals are able to use more than eight miles of trails and enjoy many varieties of birds and plants.
Big League Dreams: Big League Dreams is a world-class sports complex located in Redding. The facility offers five softball fields, three of which are exact scale replicas of major league parks: Fenway Park, Wrigley Field and Yankee Stadium. In addition, Big League Dreams is home to a 20,000-square-foot indoor field house, which is available for basketball, soccer or roller hockey. A children’s play area, nine station batting cage, and sand volleyball courts are also accessible to participants. The facility also has outdoor soccer fields, walking trials and a Shasta Sports Hall of Fame. When the activities are over spectators and players alike are able to sit back relax and enjoy food and drinks at The Stadium Club.
Redding Aquatics Center: The Aquatics Center is home to both a full-sized Olympic competitive pool and a large recreational pool with a 160 foot slide. Individuals enjoying the center are able to recline in the party patio or other shaded areas, stroll down to the Sacramento River, participate in a game of volleyball, or eat at the snack area or on one of numerous picnic tables. The Aquatic Center is located within the Caldwell Park recreation facility.
Shasta Cascade Wonderland Association: The Shasta Cascade Wonderland Association is a network of eight counties committed to aiding travel and tourism in Northern California. Shasta Cascade is a 300,000 square mile region where outdoor activities are seemingly endless. From participating in snow sports, to hiking, fishing, exploring caverns, taking a cruise or a houseboat ride, the Shasta Cascade offers it all. Within the region are a number of state parks and tourist attractions including:
Castle Crags State Park
Lake Shasta Caverns
Lassen Volcanic National Park
Whiskeytown National Recreation Area
Shasta Lake Recreation Area
Museums, Galleries and Arts: The Redding Convention Center hosts a myriad of concerts, big name entertainers, trade shows and conventions in its 2,000-plus seat auditorium. Shasta County is the home of two large multiplex theatres offering first run movies. The newly renovated Cascade Theatre offers classics and art films as well as live entertainment. Redding Museum of Art and History, Schreder Planetarium, Old City Hall Gallery and Shasta College Art Gallery are other institutions in the county.
Redding Convention and Visitors Bureau: The downtown area of Redding is currently undergoing revitalization. It is fast becoming the cultural center of the region. For more information on activities, programs, events and travel in Shasta County visit the City of Redding’s Convention and Visitors Bureau website at: www.visitredding.org.