Title
Planning and Building Department, Economic Development Division, recommending the Board:
1) Receive a presentation from Isabel Domeyko from New Economics & Advisory on the Apple Hill-Camino Economic Impact Study that was completed in March of 2019; and
2) Provide direction to staff to contract with New Economics & Advisory to conduct a similar economic study for the Coloma/Lotus area. (Est. Time: 45 Min.)
FUNDING: Transient Occupancy Tax.
Body
DISCUSSION / BACKGROUND
El Dorado County has long been known as a tourist destination. Whether visitors come for the Lake Tahoe region, to explore the river valleys or visit Apple Hill, El Dorado County remains a place people are drawn to visit. As tourism has increased, it has become apparent that the County needs to understand the associated impacts, both positive and negative.
On July 5, 2018 the County entered into a contract with New Economics & Advisory to analyze the economic impacts of the Apple Hill/Camino area, including jobs and businesses, annual sales tax revenues generated, and transportation management costs incurred by the County to support the area. Apple Hill/Camino is known for agritourism, which is made up of farms, orchards, vineyards, wineries, wholesale fruit and vegetable growers and shippers, and has steadily become one of the most popular regions to visit in El Dorado County, especially during the Fall season. The goal of the study was to highlight the positive and negative impacts to better inform the Board on future decisions regarding the Apple Hill/Camino area as it continues to be a destination for tourists. Understanding how these industries play into the County’s economic profile is important so the County can continue to maintain a strong agritourism sector. The study looked at the role of agritourism, which mainly occurs on farms and/or wineries, and the economic activity it brings to not only Apple Hill/Camino, but the economic spin-off activity it brings to the entire County. The study relied upon previous studies conducted for the area and takes into account recent investments the County has made in the region. The study also includes the results of a survey that was conducted during the peak Apple Hill/Camino tourist season that looks at visitation and spending habits of tourists. The final study for the Apple Hill-Camino study is attached. New Economics & Advisory has prepared a presentation on the completed study.
ALTERNATIVES
Staff is seeking direction on whether to contract with New Economics & Advisory to conduct a similar study in the Coloma/Lotus region of the County.
The Board could direct staff to contract for services to conduct a study in the Coloma/Lotus region. This area is similarly known as a tourist destination for various outdoor recreational activities and as a historic educational destination. The seasonal economic impacts the Coloma/Lotus region brings to El Dorado County including transportation, job creation, agri-tourism and sales tax revenues are considerable. Should the Board want to analyze this area as well, a similar study could be conducted to provide informative statistics and feedback from tourists on how the County can best serve the region.
The Board could direct staff to study other areas of the County for economic impact, or the Board could choose not to not conduct any similar studies at this time.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Chief Administrative Office
CAO RECOMMENDATION / COMMENTS
It is recommended that the Board receive the presentation and provide staff direction on a new economic impact study.
FINANCIAL IMPACT
There is no financial impact associated with the Apple Hill-Camino Economic Impact study presentation. Should the Board choose to direct staff to conduct a similar study for the Coloma/Lotus area, staff will include funding (estimated at $50,000) in the Economic Development budget for Fiscal Year 2019-20.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
Economic Development
CONTACT
Tiffany Schmid, Director of Planning and Building, x-5132