Community Renewal Good Stories - Orange Cove

Information by State  Print version

Orange Cove Businesses Growing in RC

Orange Cove, California, RC

RC tax credits are revitalizing the citrus packing industry in Orange Cove and generating hundreds of new jobs. "These jobs will pay better than minimum wage, and the workers will also receive benefits," said Orange Cove Mayor Victor Lopez. "That's music to my ears, having this kind of business coming into Orange Cove" (The Fresno Bee, September 10, 2003).

As a result of Orange Cove's RC designation, owners of area citrus plants-many idle for years-have bought, renovated, and expanded their businesses, in some cases doubling their workforces. Former RC Manager Jim Gordon highlighted some of the packinghouse improvements directly tied to RC tax incentives:

• Bowman Farms purchased and completed a $100,000 renovation of a plant that had been idle for 4 years and added new jobs. In addition to its own citrus groves and packinghouse, the Bowman family also owns a health-benefits administration company, which means the company can provide health benefits to employees.
  
• When Sunny Cove Citrus left a smaller packinghouse last year, it purchased and renovated a larger one that had been closed for 6 years. The Sunny Cove plant doubled its work force to about 200 employees. When the $500,000 expansion is completed, the total number of employees could increase to about 400.
  
• After Booth Ranches reopened a closed plant, the company created 75 new jobs. Booth will complete a two-phase, $2.5 million expansion, expected to create another 75 jobs.
  
• Cecilia Packing Corporation's $2.25 million expansion and modernization will add approximately 85 jobs.

Prior to the area's becoming an RC, Orange Cove packinghouses handled about 14 percent of California's citrus crop, but, by 2005, this could rise to 17 percent, according to Gordon. The RC has also helped turn around the city's 2002 unemployment rate of 39 percent. Packinghouse jobs had declined to 500 in recent years, but, thanks to business expansion, this sector could provide 1,250 jobs by 2005 in a city of 8,000 people.

For more information on Orange Cove RC programs, contact Project Manager Julian Chapa, city of Orange Cove, at (559) 626-2489.