1. Economic Development Overview CPA/Law Society February 5, 2016

2.  EDC-VC  Regional SWOT  Strengths  Weaknesses  Opportunities  Threats Overview

3. Public/Private Partnership Leverage Public & Private Resources Coordinate Regional Economic Development Organized for Direct Service (e.g., advising, lending) Concentrate on Business & Job Creation Outcomes & on the Key Sectors that Drive the Economy

4. Direct Services Business Advising, Technical Assistance  Confidential, No Cost  30 Professional Advisors on Contract  Business Driven, Outcome Oriented Business Lending & Access to Capital Resources for Entrepreneurs Capacity organized by industry & function (e.g., social media, lean, etc.)

5.  7 th largest economy in the world  Investment  Lead all states, with 56% of all US venture capital  Lead all states in Foreign Direct Investment  Business Success  #1 business survival rate (SSTI)  #1 in business profits (Bloomberg)  #1 in job creation  Policy & innovation  #1 in federal research funding and business R&D  1 st to adopt business-backed gender pay equity  Actual effective corporate tax rate  CA ranks 18 th of 50 states, per Ernst & Young California Strengths

6.  Natural Amenities Index  #1 in the nation out of 3,111 counties, for physical characteristics that enhance location as a place to live  Community Well-Being Index  #4 in the nation, for how people experience their daily lives, relative to purpose, social connections, financial security and health (per Gallup)  Safe Cities, Best Places to Live, Best Employers... Ventura County Strengths

7. Relative Share of Jobs by Industry Sector* http://onthemap.ces.census.gov/http://onthemap.ces.census.gov/, December 2015 data Ven CountyCaliforniaLos AngelesSta BarbaraOrange C % Share Agriculture7.0%2.1%0.1%8.2%0.2% Construction4.3%4.4%2.9%3.7%6.0% Manufacturing9.0%7.5%8.1%6.3%10.4% Retail Trade12.6%10.6%10.1%10.5%10.1% Finance & Insurance4.3%3.1%3.0%1.7%4.9% Health Care & Soc. Asst.13.0%15.1%17.9%12.9% Accom. & Food Service9.8%9.3%9.4%11.8%10.2% *Table displays share of all jobs, including Farm; removing Farm from base increases VC’s % share across all other sectors.

8.  Mfg accounts for 26% of Ventura County GDP  Mostly steady after more than a decade of decline, now at 29,400 jobs, 11.4% of our private sector, non-farm jobs  Our mfg jobs pay the 5th highest wages in the nation, over $90,000 per job  Mfg is increasing in relative value, from.75 of US average in 1980 to 1.22 in 2010  We are 1.26 times more concentrated in manufacturing jobs than California as a whole Sources: EDC-VC/US Bureau of Economic Analysis; CA EDD LMID; Brookings Institute Ventura County Manufacturing

9.  Lagging job growth  CA’s poorest recovering construction sector Regional Weaknesses  Declining wages  Underinvested infrastructure

10.  We rank 100 th in the Milken Index of Best Performing Cities, out of 200 urban areas  We are dead last among CA’s 21 large urban areas in the Milken Best Performing Index  We rank 164 th out of 200 in current job growth  Per Brookings, we rank 99 th of 100, measuring our 5 year decline in median wage  On Income Inequality, VC ranks 96 th of the largest 100 areas for low income family housing affordability  25% of Ventura County residents in poverty per indices customized to actual cost of living Ventura County’s Lagging Performance

11.  Ventura County cost profile  Two working adults, one kid, age 4  “Basic” middle class requires $64,477 in annual income, saving only $71/month for emergencies  Baseline income is $15.26/hour for each adult  Monthly cost rises to $87,625, or 2 x $20.74/hour, if two pre-school children  While only 12.9% of families with children in Ventura County are in poverty...  46.5% of families with children in Ventura County live below the self-sufficiency standard (variable, for family size)  31% of families can’t afford “basic needs” Self sufficiency wage www.insightcced.org/calculator.html Self-Sufficiency Standard Expense TypeMonthly Cost Housing$1,479 Child Care$1,085 Food$600 Transportation$582 Health Care$429 Miscellaneous$418 Taxes$913 Earned Inc. Tax Credit$0 Child Care Tax Credit($50) Child Tax Credit($83) Self-Sufficiency Wage Hourly Per Adult$15.26 Monthly$5,373 Annually$64,477 Emergency Savings Fund Monthly Contribution $71

12. Construction Job Losses, Unrecovered (www.labormarketinfo.edd.ca.gov/LMID/Employment_by_Industry_Data.html)www.labormarketinfo.edd.ca.gov/LMID/Employment_by_Industry_Data.html CA Ventura LA Santa Santa County County Barbara Clara

13. Over-Stressed Transportation Network (From http://onthemap.ces.census.gov/, data from 2013; for primary jobs only.)http://onthemap.ces.census.gov/

14.  Every work day, more workers from Ventura County commute out (160,650) than commute in (101,111) to primary payroll jobs.  Camarillo, T.O. & Ventura are the only cities with more workers arriving than departing.  Only 51% of our labor force both lives & finds its primary employment in the county. Ventura County is a Labor Exporter http://onthemap.ces.census.gov/http://onthemap.ces.census.gov/, 2013 data

15.  Global Trade  Travel & Tourism  Food Systems Opportunities

16.  Travel Related Spending & Jobs Are Relatively Low  Ventura County’s visitor-generated taxable sales represent 5.5% of total, vs Santa Barbara & SLO at 12%, Riverside at 10%  Ventura County’s visitor-generated employment represents 3.6%, vs Santa Barbara 7%, SLO 10%, Riverside 7.6%  Good news is our industry diversity, less good news around under-realized assets  Building capacity via TBID, trending toward improvement Under-realized Travel & Tourism Potential

17.  Strength in Agriculture  $3.3 billion industry, production, processing & distribution  Nearly 32,000 jobs  More than 50 crops over $1 million  Near to highest value per acre in U.S.  Nagging Concerns  Stress in the labor market  Under-productive in food processing  Uncertain positioning relative to emerging markets  Uncertain infrastructure Ag & Food Systems Economy

18.  Location quotient of 2.49 in ag production  Only a 0.34 location quotient in food processing  We are 3 to 6 times under-invested in value-added ag compared to our California peers  We currently have some 1,500 jobs in food processing; we could grow this by 2,600 to 5,400 new jobs with strategic investment What are we missing in food processing?

19.  Where would we find the best acreage?  What’s the economic value?  What are the market opportunities?  Why bother? Model Raises Questions

20.  Expanding food processing to the state average would generate an additional 2,680 jobs  Would require an additional 223 acres, or 3.9 million additional sf, absorbing half of the total inventory of available industrial zoned land  For context, we have some 102,000 acres in agricultural production  Higher cost of already limited inventory of industrial land may negate economic viability Land Use Implications

21.  Expand the list of allowable ag zone uses to include cooking processes  Restrict processing facilities to lower value farm land  Require onsite wastewater treatment & water supply Recommendations on Land Use

22. $356 Million Economic Impact The research model and comparison to just the state average of food processing indicates we could grow the local Ag economy by $356 million, by no change to the crop volume or mix, simply by retaining value we’re currently exporting to other counties. The total economic value could be as much as by a growth of an estimated $1.3 billion.

23.  Diversify jobs & industry opportunity  Take advantage of enormous emerging market opportunity, farm to fork, locally sourced food  Improve local food security, satisfy local farm to school demand  Prepare for an increasingly competitive global food supply chain  Ultimately, help assure the long- term viability of the local ag sector Why Bother?

24. Comparing the Number of Payroll Jobs Available per Worker Ventura County Is Short on Jobs, Exports Labor From 12/2015, www.labormarketinfo.edd.ca.gov/LMID/Employment_by_Industry_Data.htmlwww.labormarketinfo.edd.ca.gov/LMID/Employment_by_Industry_Data.html Region Industry Jobs Total Labor Force Percent Jobs per Worker Ventura County 326,500431,200 76% Orange County 1,575,8001,602,100 98% LA County 4,419,9004,977,500 89% Sta Barbara County 202,700220,000 92% California 16,818,20018,934,500 89% Inland Empire 1,386,0001,961,600 71%

25.  Declining job creation/lack of jobs  Uncertain capacity within urban boundaries to accommodate the number of jobs optimal for sustainability  Uncertain infrastructure to support job growth  Risk in upsetting the balance that supports our quality of life Threats

26. Moving Forward  Retaining, expanding manufacturing and R&D base  Retaining industrial development opportunities  Enhancing travel & tourism assets & capacity  Emerging global connections  Networking entrepreneurship  Diversifying profile in food systems

27. Contact Bruce Stenslie President/CEO Economic Development Collaborative - Ventura County 1601 Carmen Drive, Suite #215 Camarillo, CA 93010 805-384-1800, ext 24 bruce.stenslie@edc-vc.com www.edc-vc.com