Despite stagnant growth in Nevada County, the area's public and private leadership this week provided few concrete plans to stimulate the economy.

Most continue to say the county's natural beauty will always attract new people and small businesses - a common refrain throughout many rural Northern California communities.

Ideas to keep western Nevada County vibrant mostly were discussed in general terms. Ideas included taking steps to strengthen existing business, recruit new firms, boost tourism and increase local spending.

The county also needs to crack down on its illegal drug problem - largely meth - to attract more families. On another front, high-speed Internet access is crucial in today's market, and the county isn't wired enough.

To fuel growth, the county would be wise to look to youths and offer them more of the lifestyle that Truckee, Nevada City and Grass Valley already provide, said Steve Frisch of the Sierra Business Council in Truckee.

"If you want to attract them, you better be a hip place," Frisch said. Arts and entertainment must be sustained to attract young entrepreneurs. The area's recreational benefits will only provide a backdrop, he said.

Learning from past experiences also can keep the economy perking along.

Businesses such as the Grass Valley Group helped spawn new businesses, and officials should try to encourage this practice.

The wood waste biomass industry offers additional growth potential as energy prices rise. Companies making special wood products also could take advantage of the area's timber resources, Frisch said.

Concern about economic growth resurfaced earlier this week when newly released figures from the state of California showed the county growing a mere 0.4 percent in 2006, with a gain of just 374 people.

This is a marked slowdown from patterns of nearly four decades.

Nevada County tripled its population from 26,000 people in 1970 to 79,000 by 1990, according to the U.S. Census, when urban dwellers fled to the mountains for lower home prices and peace of mind. The state now estimates the county's population at just under 100,000.

Some residents welcome preserving the rural lifestyle that brought them here, though others wonder if no growth is a precursor to an economic backslide.



Business loans

The Sierra's beauty has been selling itself for years, attracting small firms from the Bay Area and Los Angeles, said Brent Smith, leader of the Sierra Economic Development District that includes Nevada County.

But small businesses could use more help, so the Sierra Development District offers loans up to $35,000. Smith is trying to convince the federal government to provide loans of up to $150,000, he said.

The district also offers information and advice to existing businesses, as well as ones that might want to move here, Smith said.

Loans for small businesses can make a big difference, said Nevada County District 1 Supervisor Nate Beason. When the supervisors wanted to revitalize the Loma Rica Industrial Park near the county airport last fall, several business owners said they could expand if they had more money, Beason said.

The local economy also would do better if less local money flowed down the hill to Roseville and Marysville.

"We appeal to tourism, but I think we need to get more locals to spend more money here," Beason said.

"You try to increase the local multiplier, the number of times a dollar gets recirculated in the community," Frisch said. "You can also try to set up business sales networks so you can choose local first" when purchasing.

"You have to keep the locals shopping local," said Mary Ann Mueller, chief executive at the Grass Valley-Nevada County Chamber of Commerce. "Most (businesses) here couldn't survive without it."

Competing with large box stores in neighboring counties continues to challenge local merchants. Some residents complain that some customer service at local stores is below par.



Boost tourism

Mueller's office serves as the official booster of local businesses and the unofficial tourism center for the community, sending information to prospective visitors on a daily basis. But no regional or county tourism council exists to boost tourism in a coordinated fashion.

This month, however, Nevada City and Grass Valley business leaders began working on such a plan - raising hopes for the future.

For some, it couldn't come soon enough. This summer, tourism could be dampened by rising gasoline prices.



Attract new businesses

Impediments also exist for business people who would want to relocate to western Nevada County, where no tax or land incentives are offered.

In addition, persistently high housing costs and steep terrain for building make moving here less attractive than in other areas.

"If we don't do anything about affordable housing and keeping our young families here, I think we'll lose population," Board of Supervisors Chairman John Spencer said. "We've made the (home building) process too expensive by our regulatory environment. ... It's a little scary."

Few big businesses come to the area, said Lock Richards, who handles the leases for new tenants at the Nevada City Tech Center. Richards stopped advertising in Sacramento and the Bay Area for local properties he represents after receiving little or no response, he said.

"The main market is firms already here in Nevada County," said Richards, of Sperry Van Ness-Highland Commercial real estate in Nevada City.

Smaller companies, either from here or out of town, are seeking spaces ranging from 1,000 to 3,000 square feet, said Ricki Heck, owner of Coldwell Banker Commercial real estate office in Grass Valley.

"Most of the calls we get are from existing or expanding businesses - mom and pop businesses," said Heck, who receives maybe two calls per year from large firms.

Large companies can take advantage of tax and land deals in other states, Richards said.

In addition, not enough effort is being focused on recruiting new businesses, according to some businesses and residents.

At the Nevada County Economic Resource Council, 15 percent of his office's time is spent on attracting new business, said chief executive Chuck Neeley. The council board's direction has been to help existing county businesses first, Neeley said.

He reaches out for new business with mailings, faxes and e-mails, but traveling to different areas to attract firms is too costly, Neeley said. Although business relocation firms exist, the area provides no clearinghouse where someone could locate firms that are interested in moving, he said.



Infrastructure needs

Even if there were such efforts, recruitment alone is not the complete answer, Frisch said.

"Education, housing and good health care are not separate from economic development. It's the foundation," Frisch said. "People locate businesses where they can get those things. That's what attracts people. It's quality of life."

ooo

To contact Senior Staff Writer Dave Moller, e-mail davem@the union.com or call 477-4237.