The local economy remains stifled by a two-year-old moratorium
on new construction, and agriculture is standing strong as the top
money-making industry, according to an annual report compiled by
the Economic Development Corp.
Hollister – The local economy remains stifled by a two-year-old moratorium on new construction, and agriculture is standing strong as the top money-making industry, according to an annual report compiled by the Economic Development Corp.
Local governments must provide the report, the Comprehensive Economic Development Strategy, to obtain federal funding that goes toward infrastructure projects. Since 1985, the federal Economic Development Administration (EDA) has funded nearly $4 million in local projects, according to the report.
Such projects have included renovation work at the Southside Labor Camp and rehabilitation to rental housing complexes.
The report lays out nine economic development policies chosen by a committee made up of local officials and residents, and it goes on to offer updates local industries and development constraints like the moratorium.
The Hollister City Council approved the report Monday, and next it goes to the county Board of Supervisors for its approval before a submittal to the EDA.
“The importance of this report is that this report has to be approved by the agency or we can’t get any money for infrastructure from them,” said Al Martinez, director of the local EDC.
The EDC expects to submit the report to the federal agency in the coming weeks, which would make its arrival late, but early enough to qualify for grant funding, according to Martinez. The document is late this year because the federal agency told the EDC it must change an outdated format in the report, which took some additional time, he said.
The local economic development guru, Martinez, whose job to recruit new industry to the area has been oppressed by the building moratorium, said that issue continues to be the number one problem hindering economic growth.
The state-imposed building moratorium, put in place after a 15-million gallon sewer spill in May 2002, is scheduled to end in late 2005 if Hollister can finish its new $38 million sewer plant.
Martinez mentioned the San Benito County Water District’s recent cautionary letter, sent to the state’s regional water board, as reason for concern that the end of the moratorium may face delays.
“To me that’s bad news – really bad news,” he said.
The latest population and employment figures provided in the report are from 2002. They show a slight increase in population from the year before of 700 residents and a drop in employment from the prior year by 50 jobs – to 27,890 employees.
Among agricultural crops, lettuce remains at the top with a $10 million increase from 2002-2003. It’s followed by grapes for wine production and peppers to round out the top three crops.
Kollin Kosmicki covers politics for the Free Lance. Reach him at 637-5566, ext. 331, or [email protected].
