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Report: It could be a bumpy ride
If trends hold, El Dorado Hills could have trouble in the coming decade
By Raheem Hosseini Telegraph Correspondent
Philip Wood • The Telegraph
Amanda Clemens, left, of the El Dorado Hills Chamber of Commerce, and Sylvia Lewis, of the California Welcome Center, look over the welcome center’s brochures in El Dorado Hills. In a study commissioned by the El Dorado County officials, a large number of county residents travel outside the community for work, and while the county boasts high incomes, indicators suggest people are doing much of their spending outside the county.

El Dorado Hills and the county it resides in are holding steady in the current economy, but could see economic slowdowns in the coming decade if current trends hold.

Those were the indications of two separate but intersecting reports presented this month to members of the Economic Development Advisory Committee.

The July 15 gathering went over the results of an industry-focused study from the Center for Strategic Economic Research, as well as a results summary of an April 7 business walk in El Dorado Hills.

El Dorado County officials commissioned the Sacramento-based research firm to perform an economic base and cluster analysis of the county economy. CSER also singled out El Dorado Hills in the study it released June 30, noting the heavily populated community employed nearly 20 percent of the county’s workforce.

But the study warned the county “could slowly become a rather small piece of the Region as other areas benefit much more from new jobs and residents and increase their already strong presence.”

“That’s why we need to change,” said county economic development coordinator Samuel Driggers.

Driggers cited the need for a more flexible regulatory environment, partnerships with regional entities and diversification of local economies as key ways to buck current indicators.

Like the rest of the county, a large number of El Dorado Hills residents travel outside the community for work. And while both the town and county boast higher incomes than the state, indicators suggest people are doing much of their spending outside the county.

The retail industry is responsible for nearly 19 percent of El Dorado Hills’ employment, or 1,700 jobs. By comparison, the next closest employment industry, construction, offers only 850 local jobs.

Despite the retail-heavy focus, nearly half of the 236 local businesses surveyed during April’s third annual business walk said they were doing either good or great. Another 33 percent said business was steady or fair, while 18 percent said things were slow or poor.

The decline of some businesses was blamed on changing spending habits, business location, employee cuts and the overall economic climate.

Thirty-two percent of surveyed businesses cited a need for additional marketing and events to bring more foot traffic and bolster the nightlife, while 24 percent said an improved economic climate would help most. The latter response included mentions of limited lending options and vacant storefronts preventing expansion and hiring.

There was no shortage of suggestions, though, as the 52 business and civic leaders that conducted the survey were told lower rental rates, more flexible zoning restrictions, additional business development programs and improved communication between government and business sectors were all items that needed to be addressed. Nine percent of respondents said poor roads and lack of parking could cause major problems in the future.

The El Dorado Hills Community Foundation has made transportation solutions for the local residential and business community one of its goals, according to member Gordon Helm. He said the foundation is backing a draft congestion management plan to address some of these issues.

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