Region one: North Coast.

Counties    County Seat         Population         Area/Acres
Del Norte   Crescent City           27,300            642,000
Humboldt    Eureka                 125,400          2,304,000
Lake        Lakeport                55,000            849,000
Mendocino   Ukiah                   83,400          2,247,000
                            Total: 291,100   Total: 6,041,000

NORTH COAST OVERVIEW

The North Coast Region is located in the northwest corner of California, bounded by Oregon on the north and the Pacific Ocean on the west. It comprises Del Norte, Humboldt, Lake and Mendocino Counties.

A large share of the six-million acres of land encompassing the North Coast is held by private non-farm interests and consists mainly of forests and coastal ranges. Government holdings make up approximately one-quarter of the land area and consist primarily of forests, redwoods and coastal parks. Privately-owned farm land accounts for one-fourth of the region.

The abundant natural resources are an important part of the local economy and include forestry, manufacturing, fishing and tourism.

North Coast counties are implementing aggressive business development programs aimed at diversifying the region's economic base. The strategy combines regional marketing with individual county efforts.

DEMOGRAPHICS:

The North Coast is the least populated region in California, and according to 1993 Department of Finance figures, accounted for approximately one-percent of California's population.

It is one of the slowest growing regions in California with a 15,000 increase from 1990 to the present. Current population stands at 291,100. Humboldt is the largest county, but Lake County is the region's fastest growing.

REGIONAL ECONOMY:

Industry employment patterns in the North Coast counties are similar, yet subtle differences exist. A significant portion of employment is based in the region's natural resource industries such as fishing and forestry. In Lake County, mining employment rose threefold during the 1980's.

Manufacturing continues as a strong regional employer in Mendocino, Humboldt, and Del Norte counties, representing an average of 13 percent of each county's total employment. Lumber and paper products manufacturing account for more than half of that employment.

In Humboldt County, retail trade continues to rise, growing nearly one-fifth in the past five years. That growth will be aided by the continuing development of the Bayshore Shopping Mall.

Mendocino County's services sector is the largest employer, but agriculture remains the fastest-growing industry with employment increasing by two-thirds from 1983 to 1988. Mendocino also has a large number of food manufacturing jobs due to the local wineries.

New industries within the county, such as beer brewing and sea urchin processing, are expected to increase local employment.

Tourism generates a substantial number of jobs in the North Coast Region, especially in the retail trade and service sectors. Those two sectors account for almost half of the region's employment and are among the fastest growing. Mendocino County is experiencing strong growth in its tourist-related

industries as visitors continue to be drawn to the area's natural beauty.

LABOR FORCE:

Although the North Coast Region's unemployment rate of 8.6 percent was higher than the statewide average of 5.1 percent in 1989, the weaker labor market situation is primarily due to the region's mix of industries. This mix includes a large proportion of seasonal employment, such as tourism and agriculture.

Humboldt County is a federally-declared surplus labor county with 11% unemployment. Rates for skilled workers average $7.25 per hour, representing the lowest cost in 26 labor markets recently surveyed by "California Business Magazine."

INCOME:

Incomes in the North Coast Region tend to be low, with income growth in the region below the statewide average. Income levels in 1988 ranged from a low of $11,171 in Del Norte County to a high of $14,454 in Humboldt County. Statewide per capita personal income for that same period was $18,753.

REAL ESTATE AND HOUSING:

The value of residential and non-residential construction in the North Coast in 1989 was more than $215.3 million. The region is unique in that much of its housing market is dominated by second homes and vacation rentals.

Economic Nuggets

* Least populated region in California...291,100 as of February, 1993... or about 1% of total state population

* Ukiah, population 14,600, is one of two California towns named in the recently published book, "The 100 Best Small Towns in America." Ukiah ranked 6 out of 100.

* Humboldt Bay harbor is the only deep-water port facility in California north of San Francisco

COUNTIES OF THE NORTH COAST

DEL NORTE

Timber, fishing, agriculture and tourism make up the bulk of industry in Del Norte County. The countless fisheries that call the waters of Del Norte County home have for years provided hundreds of jobs for the fisherman and processor alike. Salmon, Dungeness crab and other ocean species are included in the vast fishery available off the coast.

The agriculture industry ranks third with dairy production and lily bulb growing. Tourism has long placed a distant fourth as an industry within Del Norte County, but in recent years with the inception of Redwood National Park and the reduction in the timber and fisheries industries, tourism has become a major force with hope that it will continue to grow as a major job sector in the future.

The prime unit of government is the County of Del Norte. The County's governmental needs are decided and administered by five elected County Supervisors and a variety of agency administrators. The City of Crescent City, Del Norte County seat, is a council/manager form of government. The State of California controls the state parks, beaches and wildlife areas and the federal government oversees ownership of vast acreage of Del Norte County.

The Del Norte Economic Development Corporation (882 H Street, Crescent City, CA 95531, 707 464-2169) was established in 1976 as a private, non-profit corporation. The EDC's primary objectives are to promote job-generating business expansions by obtaining long-term debt financing for qualifying business, and securing public funding for significant public development projects.

The North Coast Small Business Resource Center (882 H Street, 707 464-2168) provides information and assistance to businesses and individuals who are thinking of starting, buying, or seeking to increase the profitability of their business. The center can assist with new venture analysis, business plan development, economic and business data, financing sources, and problem solving. It also conducts and cosponsors workshops on topics of common concern to small business. These services are available at no charge.

Redevelopment Agency (343 G Street, Crescent City, CA 95531, 707 464-7483). As a result of the disastrous 1964 Tsunami, a Redevelopment Agency was created to help rebuild the city. The intent of the Redevelopment Agency is to provide new public facilities that will encourage private development along the city's waterfront area. In addition to the redevelopment projects, there are specific programs in place to assist businesses and private homeowners.

HUMBOLDT COUNTY

Since the days of the Gold Rush, Humboldt County has been the economic gateway to Northern California. Its large, protected harbor can accommodate large freighters and tankers from around the world, and has moorage for about 600 vessels. Humboldt's port offers the shortest ocean shipping distance to the Orient from any of the 48 mainland states.

Today, its highways, rail lines and comprehensive air service augment its deep-water harbor. High-quality dairy products and commercial fisheries form the basis of the county's economy.

Humboldt County offers a variety of business properties. Numerous small office buildings offer convenience and amenities. Larger sites, including several developed business parks, are suitable for light manufacturing and other industrial uses. The Arcata Industrial Site in Arcata is a large parcel in a rural area. It is approximately 209 acres being redeveloped from its previous use as a redwood re-manufacturing facility.

Economic development is a top priority. There is a new spirit of cooperation among local governments with regional programs being integrated and the permit process being streamlined.

LAKE COUNTY

Lake County is located approximately two hours from both the San Francisco Bay area and the Sacramento metropolitan area. Its economy, although traditionally one of agriculture and recreation, has been expanded into the retail and service industries. Light manufacturing, construction, mining and government are a part of the area's economy, as are natural resource-based industries including gold mining and geothermal development in the world's largest-known geothermal field.

The population of Lake County is on the rise and is predicted to grow to 80,884 by the year 2000 from its 1993 figure of 55,000. Much of the increase is due to upper and middle income families relocating to the region for an improved quality of life. The county's climate, rural atmosphere, recreational opportunities, low crime rate and lack of pollution are a strong draw. Its popularity as a vacation destination entices many visitors to relocate to the area upon retirement.

To meet the needs of continuing growth, the county and cities are actively pursuing the development of retail, light manufacturing, information processing, recreational and service industries.

MENDOCINO COUNTY

Mendocino County has a population of 83,400 people, and offers a variety of geography, lifestyle, industry and climate within its 3,500 square miles. There are four incorporated cities -- Ukiah, Willits, Fort Bragg and Point Arena.

It is an area rich in natural resources with a strong tourism and industrial base, offering a reasonably priced and educated labor pool. A highly-rated school system, access to recreational opportunities and a low crime rate make Mendocino an appealing area in which to relocate.

FIGHTING BACK

North Coast Recipes for Success

North Coast counties are implementing aggressive business development programs aimed at diversifying the region's economic base. The strategy combines regional marketing with individual county efforts.

* President Clinton has proposed a plan to hold a forest summit, to bring balance between the timber industry and environmentalists. Presidential agents are expected to work within the region to help bring about a stable logging environment while protecting old-growth forests. President Clinton says he wants to take the issue out of the courts and get it settled in the affected regions.

* Participation in the Northern California Industrial Development Executives Association (NorCal IDEA), a regional marketing coalition of 20 northern California counties, utilizes print advertisements, direct mail and trade shows to promote Northern California as a unified destination, excellent for new business. Contact: NorCal IDEA, 916-322-5667. FAX: [phone].

* The California Timber Revitalization Committee is developing a plan aimed at stabilizing the region's timber trade. The multi-agency organization will work with the Nortec Private Industry Council, the California Trade and Commerce Agency, Employment Development Department and the California Department of Forestry to assist displaced workers and to develop a cottage hardwood industry.

* An association of food, beverage and agricultural enterprises has created the Mendocino Bounty (707 462-6664), organized to promote the area's products. Its main thrust is to promote and market Mendocino County food and beverage items by educating the public throughout the region and beyond about the quality and uniqueness of what is available.

* The Humboldt Bay Alliance for Economic Development offers a reward program as part of its business attraction strategy. The alliance provides $500 to any individual who brings in a lead resulting in a new manufacturing firm locating in the county. It is currently working with 35 manufacturing firms in the Southern California area in an attempt to relocate those firms to the North Coast area, rather than leaving the state.

* Eureka's Harbor District is one of a few areas in California designated as an Enterprise Zone. This offers businesses locating within the Enterprise Zone significant incentives including tax credits, tax-free interest on investments and long-term state financing.

* Mendocino College has set up a program with vocational business service providers to address issues such as the retraining and placement of unemployed timber workers.

* Lake County uses private sector volunteers to help respond to business leads they receive from the Trade and Commerce Agency, NorCal IDEA, and its own marketing program. The citizen-response team program gives prospective businesses the opportunity to discuss issues directly with Lake County business leaders.

* The county-based Redwood Region Economic Development Commission, along with a variety of redevelopment organizations assists business and industry by gathering information needed for siting and relocation. They also secure financing and help coordinate loans and smooth the way for growth by providing effective liaison among business, government and the community.

* The City of Eureka and County of Humboldt offer a local package of 22 incentives designed to remove impediments to business growth. A broad variety of financing options are available in Humboldt County including: Local revolving loan funds, State of California loans, Small Business Administration loans, Industrial Revenue Bonds, and UDAG Financing.

* The California Department of Corrections opened Pelican Bay State Prison in Del Norte County in 1990. The prison has a capacity of 2,200 maximum security prisoners and prison employment is estimated between 1,000 and 1,400 with an annual payroll of approximately $37 million. The average salary is $30,000 and the prison spends an average of $500 per inmate annually on local goods and services.

YAKIMA PRODUCTS OF ARCATA

"Let us serve with honestly, wisdom, and skill."

What began 13 years ago as a tiny Yakima, Washington machine workshop, evolved into a thriving rural California recreational business.

Don Banducci, President of Yakima Products, and three of his friends rescued a tiny mom-and-pop-business, manufacturing foot braces for kayaks, as it was about to fold in Yakima, Washington. Banducci, a "transient river rafter," as he refers to himself, chose to save the failing business because he knew the product and recognized a need in the marketplace to keep it available.

The small company was purchased for $80,000 and moved to Arcata. It ultimately evolved into the multi-sport roof rack business which now employs 135 people, with a payroll in excess of $3-million annually. They are now the number-one supplier of state-of-the-art automobile roof racks in the U.S. and have since sold the kayak brace business to a firm in Seattle.

Banducci's reasons for selecting Arcata to relocate are two-fold: It is near rivers and oceans and close to his family ties in the area (his parents were born there). Arcata is 285 miles south of San Francisco and is a mecca for outdoor enthusiasts.

"We thought about Boise and Oregon," said Banducci, "but then thought about Arcata's beauty. And with the timber and fishing industries in decline, we felt an obligation to bring jobs to the area."

"It was a quality of life choice," added Banducci. "We could do it in a lot of small towns but Arcata offers a little town, surrounded by wilderness and beauty, with a liberal, progressive way of thinking."

Yakima Products is featured along with Banducci as a model of diversification in the publication, "Companies With a Conscience" (Mary Scott and Howard Rothman, Carol Publishing, 1992). A quote from the book makes reference to the company's success: "...Yakima's continued focus on making the highest quality products available.."

The company operates as a manufacturer per se, but according to Banducci, they utilize parts from up and down the coast and around the world, assemble them and ship them out. Two years ago the company expanded its operation into a larger, more efficient building.

"A business such as ours can function in a rural community," Banducci added. "We're a bit off the interstate and that's a problem, but the quality of life outweighs the financial offset for living here."

Arcata is a rural community of just over 15,000 people and situated at the north end of Humboldt Bay, between a redwood forest and the Pacific Ocean.

Prior to technological advances, doing global business in this type of rural environment would have been difficult.

"With a phone, a fax and a computer, we can service all over the world just as any business located in a large metropolitan area would," said Banducci. "We take the term 'Think Globally; Act Locally' seriously here."

He said they work hard to be customer-service oriented by using a staff of 15 employees. Banducci said, "By offering full sales and service we are one of the leading companies of the future."

THE LAND OF GIANTS & PYGMIES

It's an area of majestic forests and rugged coastlines; of sandy beaches and wild rivers. It boasts some of the world's tallest trees and even some of the shortest.

California's North Coast Region stretches 400 miles north from San Francisco to the Oregon border and inland 50 miles from the coast.

It plays host to California's redwood parks, containing trees surpassing 300 feet in height. The redwood belt is about 500 miles long and extends inland between 20 and 30 miles. The Avenue of the Giants is a 33-mile road winding through 43,000 acres of Humboldt Redwoods State Park where visitors view the world's tallest known tree of 367.8 feet.

DEL NORTE COUNTY

Enchanting Del Norte County combines the Pacific beaches with scenic rivers and the giant Redwoods with coastline bluffs.

There are approximately 683,547 acres, or 1,068 square miles of land in the county. Although officially created in 1857, the area's development actually started with the gold rush of 1849.

Two historic lighthouses stand prominently along the shoreline, one still in operation. Battery Point Lighthouse, commissioned in 1855, is the oldest working lighthouse on the Pacific coast. Point St. George Lighthouse, brought to service in 1892, sits atop a large rock 1,134 feet above the ocean. it stands abandoned, having been relieved of service in 1972.

Crescent City was named for its crescent-shaped beach and is now a popular relocation spot for retirees. Recreational activities abound with the area surrounded by Redwood National Park and three state parks.

The Klamath River south of Crescent City and the Smith River to the north, offer some of the best salmon and steelhead sport fishing in the world as well as wild river rafting. Other recreational activities include ocean fishing, clamming, kayaking, camping, surfing, sailboarding and whale watching and golfing.

Residents enjoy cultural, community and recreational activities ranging from Little League, soccer and volleyball to performance series drawing national and international artists to the area.

LAKE COUNTY

Lake County is located north of St. Helena and east of Highway 101 and is known for its prize-winning pears and walnuts. The area also boasts its world-famous Lake County diamond, a semi-precious stone of volcanic origin. Onyx and obsidian are also produced.

Its many crystal clear lakes and scenic rural countryside make Lake County a desirable recreational area. Swimming, sailing, canoeing and fishing are popular on Clear Lake, California's largest freshwater lake. It is referred to as the "Bass Capital of the West."

HUMBOLDT COUNTY

This is an area offering a unique rural lifestyle with a host of activities and opportunities similar to those offered in larger cities but without big-city pressures. Humboldt County's quality of life extends beyond its superior homes and schools, to its excellent restaurants, shopping and cultural offerings.

Temperatures remain fairly cool along the coastline, while the inland valleys experience a sunny and warm climate.

Nearly 400,000 acres of mountains and coastline have been set aside for state and national parks use. It's an area of rugged, untouched beauty hosting a combination of six wild rivers and rolling lush farmlands, dotted by the tallest trees in the world.

Ferndale is a charming village, settled in the late 1800's, and known for its concentration of nineteenth-century Victorian homes. The town of Eureka--meaning "I found it!"--is the largest city on the North Coast and is graced with over 100 Victorian-era homes.

Fort Humboldt, built in 1853 as protection against Indian attacks, has since been partially restored as a state historic park.

Nestled at the north end of Humboldt Bay between the Pacific Ocean and a redwood forest, Arcata is paradise for the outdoor enthusiast. The Six Rivers National Forest surround the area and kayakers, canoeists and fishermen enjoy the nearby rivers. Its residents boast the historical account of serving as the setting for a number of Bret Harte's wild west stories.

MENDOCINO COUNTY

This county offers the wilder, more rugged regions of the North Coast. Although commercial fishing, logging and farming have long been the economic mainstays of the area, wine-growing is increasing in popularity.

The town of Mendocino, formerly a lumber port and now home to artists and tourists, hosts frame buildings reminiscent of New England.

It is perched atop the bluffs overlooking the rugged Pacific shoreline, surrounded by the Mendocino Headlands State Park.

Point Arena is a former 19th century whaling station. Its 115-foot lighthouse was reconstructed after the 1906 earthquake and is the first steel-reinforced lighthouse in the United States.

The seaport town of Fort Bragg is the headquarters for the California Western Railroad "Skunk" trains. Running on track laid in 1885, this former logging train runs a 40-mile course inland to Willits.

The "Skunk" trains of the old California Western Railroad originally ran on gas. Because of that, people often commented, "You can smell 'em before you see 'em," hence giving the line its name.

An unusual collection of dwarf pines and cypress trees make up the Pygmy Forest in the Van Damme State Park. Their small height is attributed to hard soil which prevents deep root growth as well as poor drainage. The average 60-year-old Mendocino cypress in the area would likely reach a height of 50 feet; but in the Pygmy Forest, a similar tree may be stunted at only one foot high and a quarter of an inch in diameter.

Eight miles to the west of Boonville is the Hendy Woods State Park. There the primeval redwood forest towers 300 feet above the valley floor.

As John Steinbeck wrote in 1962, "The Redwoods, once seen leave a mark or create a vision that stays with you always...they are ambassadors from another time."

The beauty of the awesome redwoods along with the clean air, clear skies, bountiful water, mild winters and cool summers rank the North Coast Region among the most desirable of places to live.

LAKE COUNTY USES HEAT AS A CROP TO FUEL THE ECONOMY

Lake County has developed a Geothermal Agricultural Heat Center by utilizing the area's available natural resource of underground hot water. The project is three-fold: To develop a low-temperature geothermal resource in Lake County; to construct a geothermally-heated agricultural greenhouse for vocational training and research; and to provide sites for commercial greenhouse operators and other agricultural users.

The geothermal system has been constructed by Lake County and is operated by them as well. The Mendocino-Lake Community College District constructed and operates an agricultural greenhouse and offers vocational training in geothermal greenhouse operations. The 7,000 square-foot greenhouse where student crops are grown, was the first building connected to the County's geothermal system.

Two production wells are pumped to supply hot water to a storage tank located on the 3.5-acre site. Hot water flows by gravity, as needed, to the users' heat exchangers and then flows into the 1,614-foot injection well for disposal. A marketing program is in place to promote the site to commercial growers. An additional 66,000 square feet of greenhouses could be heated from the existing system, and more could be added by expanding the system. The potential exists for a large agricultural park utilizing the latest geothermal technology. Financing assistance is available through the County marketing program.

Contact: Jeff Lucas, Director, Small Business Development Center of Lake County, 341 North Main Street, Lakeport, CA 95453, 707 263-6180 or (Fax) 707 263-0920.