Region two: Northeast.

Counties    County Seat         Population          Area/Acres
Butte       Oroville               194,600           1,066,000
Glenn       Willows                 26,100             844,000
Lassen      Susanville              28,600           3,002,000
Modoc       Alturas                 10,200           2,778,000
Plumas      Quincy                  20,900           1,676,000
Shasta      Redding                159,600           2,464,000
Siskiyou    Yreka                   44,900           4,044,000
Tehama      Red Bluff               53,100           1,905,000
Trinity     Weaverville             13,400           2,063,000
                            Total: 551,400   Total: 19,840,000

NORTHEAST OVERVIEW

The Northeast Region is located in the northeastern corner of California. Bounded by Oregon on the north, and Nevada on the east, it is made up of nine counties that represent some of the most diverse land in California.

It is a mix of forest, timber and range lands with the Sacramento Valley, the most northern expanse of the Sierra Nevada mountain range and numerous state and national parks.

Lassen Volcanic National Park is located in the region along with the Lava Beds National Monument and the Whiskeytown Shasta-Trinity National Recreation Area. There is a vast expanse of other public lands, including state parks and seven national forests.

Farms comprise almost one-quarter of the Northeast Region's area with a gross value $873-million of agricultural production in 1989. This accounts for only 5% of overall agricultural production in the state, due to the unsuitability of the climate, soil, and terrain for many high-value commodities. The value of timber production added almost $264-million t regional income in 1989.

DEMOGRAPHICS:

Although the Northeast Region accounts for 19 percent of the total land area in California, it has less than 2 percent of the state's population.

Most of the population is located along Interstate 5 and Highway 99, the major north-south highways through the region. The most populated cities are Redding in Shasta County; Chico, Paradise, and Oroville in Butte County; and Red Bluff in Tehama County. However, the majority of the Northeast Region lives in the unincorporated areas, reinforcing the feeling of open space.

REGIONAL ECONOMY:

Government is one of the largest employers in the region, but the extent varies greatly from county to county. Most government employment is from local rather than federal or state agencies.

Agricultural, manufacturing, services and trade are significant employers in each of the nine counties of the region. A significant portion of agricultural employment comes from the forestry industries.

Manufacturing has been a fast growing industry during the past five years, with regional employment rising by 20 percent; almost twice the statewide increase of 11 percent. Much of that growth is attributed to the statewide construction boom of the late 1980's, which created a strong demand for lumber and wood products.

The service sector accounts for one-quarter of the region's employment, making it the largest employer. Much of the increased employment growth stems from increased tourism and population growth. The hotel/motel and health services industries represents the greatest amount of growth within the service sector.

LABOR FORCE:

The civilian labor force in the Northeast Region totaled 215,000 persons in 1989, of whom 195,725 were employed and 19,475 were unemployed. The region has a higher unemployment rate than the rest of the state because of its sizable resource-related and seasonal industries.

INCOME:

Northeast Region incomes fall below the statewide average. California per capita personal income in 1988 was $18,753, while the Northeast Region per capita income ranged from a low of $11,584 in Lassen County, to a high of $14,983 in Glenn County.

REAL ESTATE AND HOUSING:

Butte and Shasta Counties accounted for over three-fourths of the region's construction activity in 1989. The value of residential and commercial construction in the Northeast Region in 1989 was $502.9-million, a 19.4% gain over the previous year.

TRANSPORTATION:

There are eleven motor freight lines, plus United Parcel and Federal Express operating out of the region. Air service is available through the Red Bluff Municipal Airport and Chico Municipal Airport. The deep-water port of Sacramento is 132 miles south of Red Bluff. The region is a central point on a north-south route between the Pacific Northwest and California.

EDUCATION:

California State University Chico, founded in 1887, is one of the oldest college campuses in the state. With its well developed educational resources, Chico has a highly trained labor pool. The University adds 2,500 graduates to the labor pool annually.

COUNTIES OF THE NORTHEAST

BUTTE COUNTY

The service sector accounts for nearly one-third of Butte County's jobs, with employment in the trade sector a strong factor, and moderate employment from the government sector.

The City of Chico offers available and economical industrial and commercial property and land. Some of the major industrial parks and commercial ventures include: Chico Municipal Airport Industrial Park, Foothill Industrial Park, Skypark Plaza, Village Park, the Meyers Street Industrial Park, Oates Industrial Park and Southgate.

In Oroville, Setzer Forest Products invested $5.9 million into its operation, creating 30 new jobs for Butte County. Oroville was recently designated a state recycling market development zone.

GLENN COUNTY

Set in a highly rural area with its main city of Willows, Glenn County has a sizable number of agricultural jobs, particularly from crops and livestock, as well as from the forestry and wood processing industry. Heritage Tack & Saddlery in Willows is known throughout the world for its production of new and restored side saddles.

Glenn County was recently selected as one of California's 12 initial recycling market development zones. Under the program, Glenn County works to find solutions to California's waste problem and to recommend alternatives to dwindling economies.

LASSEN COUNTY

Lumber and wood processing account for a majority of the manufacturing jobs, with the trade sector a significant employer in Lassen County as well. The timber industry got a boost when McDonald Wood Products moved to the former Clear Pine Mill in Nubieber. This milling operation produces building components destined for the Japanese market and employs 24 people.

Government jobs provide one-third of Lassen County jobs. According to the Lassen Economic Development Council (LEDCO), they enjoy economic stability due in part to the California Correctional Center located in Susanville. Established in 1963, it employs over 1,000 people. Prison expansion is expected to bring nearly a thousand new families into the area.

MODOC COUNTY

Modoc County is bordered on the east by the State of Nevada and on the north by the State of Oregon. It is a series of mountain ranges and green valleys with a low elevation of 4,300 feet to a high at Eagle Peak in the Warner Mountains of 9,834 feet. The prime industries of the county are livestock raising and lumber. Row crop farming is conducted in the Tulelake basin and Surprise Valley areas.

Alturas is the county seat and is centrally located on a north-south route between the northwest and California's large population centers.

PLUMAS COUNTY

Lumber and wood processing are strong industries in Plumas County. Tourism is also important to the area. Lake Almanor rests at the meeting point of the Sierra Nevada and the southern Cascade affording views of Lassen Peak, and is becoming increasingly popular as a vacation location.

SHASTA COUNTY

Service industry jobs as well as trade sector employment are strong economic factors in Shasta County.

Redding, the county seat of Shasta County, has fared better than many other parts of the state with taxable sales up mildly, compared to an overall state drop. People moving into the area represent four-fifths of the annual population increase, and further population growth is expected to be fueled by homeowners moving from other parts of the state. The lumber and wood products industries expect a slight boost from those relocating to the area. Total personal income in Redding is expected to increase 6.8% in 1993. Redding also enjoys the advantages of a large convention center and a California Enterprise Zone designation in its area.

Advanced Osseous Technologies in Redding is expanding its facility to become the northern outpost for the Orange County-based firm and will employ 25 people. This expansion is due to the reasonable cost of doing business in the region.

SISKIYOU COUNTY

Siskiyou County is a vast land of mountains, forests and valleys with an abundance of streams and lakes. Yreka, the county seat, was recently ranked 17 out of 100 small towns in "The 100 Best Small Towns in America." Criteria used included: a good economic base, low crime rate, scenic location, good health care and education, and high income.

Because of its scenic location and abundance of outdoor recreation, tourism accounts for a large portion of the county's income. Lumber and manufacturing of lumber products are also key industries.

Population of Siskiyou County is 44,900 for a total land area of 4,044,000 acres, or approximately one person per every 100 acres.

TEHAMA COUNTY

Tehama County is situated in the Sacramento Valley, 120 miles north of Sacramento. Its appeal is its majestic surroundings, with snow-covered mountains in almost every direction, including Mt. Lassen with its active volcano. Tourism is an important industry in Tehama County.

Red Bluff is the county seat and there are approximately 995 acres in the city limits zoned for industrial uses, of which 67% are vacant and available in parcels ranging from one-quarter acre to 200 acres. Government sector employment represents a moderate share of the local employment.

TRINITY COUNTY

Trinity County, considered by visitors to be one of the most beautiful corners of the world, attracts a strong tourist trade. It offers the back country of the Trinity Alps, small communities dotting the countryside, and numerous lakes and streams to satisfy almost any outdoor interest.

Government employment accounts for about one-third of jobs in Trinity County. The majority of manufacturing employment in Trinity County is attributed to the lumber and wood processing industries.

FIGHTING BACK

NORTHEAST RECIPES FOR SUCCESS

* The Tri-County Economic Development Corporation, combining Butte, Glenn, and Tehama Counties as a single marketing entity, has joined forces with several local businesses to promote positive community benefits. They are expanding the content and frequency of their "Trends" newsletter in an effort to promote positive projects, and to break the current "doom and gloom cycle." The newsletter will be distributed to prospective companies throughout the United States as well as to local businesses and agencies.

* Chico has a policy of fast-tracking permits for companies deemed environmentally compatible and within compliance of local zoning provisions. Barring any unforeseen environmental or toxic problems, the companies will have their permits processed within 14 calendar days.

* "Operation Aware" is an active retention program set up by the Chico Chamber of Commerce. It surveys area businesses to detect red flags at an early stage. Information gleaned has led to several business expansions. The Chamber also works with the Building Industry Association to offer rebates on new homes to employers and their relocating employees who choose Chico.

* Spectra-Physics Lasers selected a site in Oroville for a 17,500 square-foot laser machining plant. The Silicon Valley-based company now employs 50 people. It is the area's first major high-tech manufacturer. The professionalism and responsiveness of Oroville city officials was largely responsible for the company's decision to locate in Oroville.

BASIC PLAN TO CONVERT THE ECONOMY OF THE NORTHEAST

In a paper prepared by John G. Sanzone, Ph.D, Director of the University Center for Economic Development and Planning at Chico State University, a number of challenges facing the Northeast Region were presented, as were several opportunities for revitalizing the area.

The Northeast Region's economy is based largely on natural resources, mass production and a semi-skilled labor force. But according to Dr. Sanzone, technology transfer is now changing even the most routine, unskilled jobs.

His analysis for the Northeast Region is to accept the assumption that the region must convert its reliance on an economy based on natural resources, and instead develop new strategies that attract new investments as well as incubate and transfer advanced technologies.

"In the new economy, jobs follow the skilled work force!" says Dr. Sanzone. "It is the lack or presence of a skilled labor force that determines whether a new economy industry is willing to relocate or expand."

The fact that the Northeast Region enjoys an excellent quality of life is perhaps what will entice a skilled labor pool to relocate to the region, creating new job opportunities.

"In short," says Dr. Sanzone, "the region's competitive edge is the natural and built environment. The quality of the environment attracts a skilled labor pool that in turn pulls in new economy jobs and eventually investments... Advanced and high technology industries and associated knowledge intensive service firms can be an important part of the regional economy in the future."

As California continues to grow, people, jobs and industry will be attracted to this more rural region for its high quality of life. "Northeastern California," says Dr. Sanzone, "can clearly benefit from expert technology transfer systems. The potential to restructure basic manufacturing sectors, agricultural processing, and introducing new biotechnology breakthroughs, rests on importing and applying advanced technologies developed elsewhere."

Dr. Sanzone emphasizes, "It is not the ability to entice IBM to relocate in the region that is the target. Rather, the goal is providing technology transfer to existing (and potential) industries in order to keep them competitive in global markets."

Contact: John G. Sanzone, PhD, Director, University Center for Economic Development and Planning, California State Univ., Chico, CA. 916-898-4598, Fax [phone]

CRYSTAL CLEAR LAKES, MAJESTIC VOLCANIC MOUNTAINS

This is California's big country -- an area of snow-capped mountains, volcanoes, white-water rivers and fresh clear lakes. With a population just over 500,000 and a land area near 20-million acres, residents of the Northeast Region enjoy open spaces and spectacular scenery.

For those who long for a simpler lifestyle and want to leave the city behind, Modoc County combines four seasons of climate with scenic beauty, abundant natural resources and a quiet, calm lifestyle. This area offers unsurpassed opportunities to those seeking an unspoiled setting for a new career or a vacation hideaway. Nestled in the upper Sacramento Valley of Butte County, Chico offers a blend of cultural resources and recreational opportunities. The City of Redding is strategically located in Shasta County at the intersection of Highway 5 and State Highway 299, four hours from San Francisco and three from Sacra-mento. It's the gateway to the natural wonders of the area with seven national forests, including the Shasta-Trinity National Forest, and several state parks, entertaining more than a million visitors a year.

One of the region's focal points is Shasta Dam, forming the crystal clear waters of Shasta Lake. The enormous 602-foot structure built between 1938 and 1945, is constructed of six-million cubic yards of concrete. The lake, with its 370 miles of shoreline, is a favorite spot for camping, boating, and fishing for trout, bass and sturgeon.

The history of this region centers around the rugged old West, mainly the Gold Rush era. The experiences of the '49ers and the Chinese immigrants is preserved in scenic Weaverville, county seat of Trinity County. From the back country of the Trinity Alps to the Trinity River, this county is considered one of the most beautiful places in the country.

The Trinity Alps Wilderness Area is a visitor's delight with its jagged peaks ranging from 8,000 feet, alpine meadows, deep glacial canyons and more than 50 mountain lakes and streams. Its 500,000 acres were set aside by Congress in 1984 and contain four distinct ecological zones.

The city of Mt. Shasta with its 3,000 residents, lies at the base of the magnificent 14,162-foot peak of Mt. Shasta. Five glaciers remain permanently in place on this majestic volcanic creation that can be seen 100 miles away.

Volcanic activity centuries ago erupted in the Klamath Basin near the Oregon border, covering the area with molten rock and forming the rugged landscape that is now the Lava Beds National Monument. Some formations rise 5,000 feet and join with nearby Tule Lake National Wildlife Refuge in Siskiyou County to provide some of the areas most spectacular landscape.

Lassen Volcanic National Park, 106,000 acres northeast of Red Bluff, is the setting for the boiling lakes, bubbling mud pots and hot springs of the active 10,457-foot Mt. Lassen Volcano. The snow-covered dome of Lassen Peak lies at the southern tip of the Cascade mountain range. Although still classed as active, Mt. Lassen is a safe, intriguing place for hikers and skiers.

Eagle Lake, in Susanville, is the second largest natural lake located wholly within California and is a major recreational crossroads in Lassen County. With a population just under 30,000, Lassen County is one of the most desirable places to enjoy the open spaces reminiscent of California's old frontier.

With over 50 lakes and nearly 1,000 miles of streams and rivers, Plumas County is one of the most unspoiled areas in California. There are over 1.6 million acres, 1.2 of which are National Forest in Plumas County offering a rainbow of colors painted against the backdrop of majestic mountains.

It is difficult to imagine that California is the most populous state in the country when viewed from the lifestyle offered in the Northeast Region.

Wal-Mart Brings Distribution Center to Red Bluff

Red Bluff has been selected by Wal-Mart Stores as the site for a regional distribution center and the subsequent creation of 500 new jobs. The 1.1 million-square-foot facility will provide basic and seasonal goods to approximately 50 Wal-Mart Stores in Northern California, Oregon, Washington, and Idaho.

The company also plans to construct a 15,600 square-foot truck maintenance facility on the site to service a fleet of up to 150 tractors and 900 trailers which transport goods to the stores.

H. Lee Scott, Wal-Mart's Senior Vice-President of Logistics, expressed Wal-Mart's appreciation to the Tehama Local Development Corporation (TLDC), the Tehama County Board of Supervisors, and community leaders in the City of Red Bluff for their untiring work in bringing together the many facets of this project. He also recognized the California Office of Business Development for their assistance in the location of this center.

"The company's commitment to Red Bluff is one of partnership and growth in California and the West," said Scott.

"This shows what can be achieved when the local community, regional utilities, and the state government work together to put California in the best competitive position," said Julie Meier Wright, Secretary of the Trade and Commerce Agency.

"This project is the culmination of over two years of intense competition for this project," said Steve Lantsberger, Executive Director of TLDC. "The availability of a 1,260-acre site, coupled with overwhelming community support, helped Tehama County secure this project."

Construction is expected to begin in Spring of 1993 with completion in Spring of next year.