Recent News

Updated 12/9/2008

GOVERNMENT THAT IS HELPFUL.

            Sometimes we think that business can be more successful without government intervention.  Most business people will admit that some of the largest obstacles they encounter are cumbersome government regulations and fees.  Businesses would rather do what they know best, produce a service or a product-than be filling out government forms and undergoing inspections.

            But there is an area that government can be helpful if it wishes to do so and that is with infrastructure improvements that attract business and development.  This is especially true in areas like Oroville that have a redevelopment agency.

            California first allowed municipalities to create a redevelopment agency (RDA) in 1945 as a vehicle for addressing blight and economic distress.  One of the main tools an RDA has is tax increment financing.  Under tax increment financing, the property taxes that existing taxing authorities (City, County Special District etc.) receive from within the RDA boundary are capped and most of the future tax increases-the tax increment-go to the RDA.  The tax increments are then used by the RDA to finance infrastructure improvements, site acquisition, real estate development and rehabilitation projects and other activities within an RDA area.  Since 1979, 20% of the tax increment funds are required for low and moderate-income housing.  But that still leaves 80% to be used in other areas.

            One area that would be perfect for RDA funds is the Industrial Tracts in the Oroville area. The area boundaries for IU 2,3, and 4, lie south of Oro Dam Blvd. between the railroad tracks and Feather River Blvd. and go past Ophir Road.  It is approximately 800 acres of land zoned for industrial use, but much of it does not have the needed infrastructure. The Oroville RDA would be wise to look at this area as a priority for RDA funding to put in the needed infrastructure to attract industrial companies that would provide good paying jobs.

            This has been done before with great success. In  2000 the City of Oroville RDA extended a sewer main from its pumping station on Georgia Pacific Way to allow for the expansion of a small company, Metal Works.  The RDA invested about

$150,000 to extend the sewer line to their boundary. Metal Works built a 20,000 square foot fabrication shop and a corporate office. The company grew and prospered and today Metal Works is a multi million-dollar company that employs over 70 people fulltime with excellent benefits. That sounds like an investment that makes good sense.

            We need to be certain that our entire Industrial Tract has the needed infrastructure so businesses will be attracted to the area.  There are other areas in the country that have their industrial tracts in place, with the entire necessary infrastructure available for businesses to come.  We must be competitive with these areas and that means investing our RDA monies in infrastructure for the future.