The Anderson Valley Post reports on a business that would have likely been relocated out of California if not for the Enterprise Zone benefits:
“There are four companies from across the United States (that) have looked seriously at purchasing this company in the past few months,” Guay said. “I believe each one of them would have moved the company to other locations.”
The company contracts with four Chinese airline companies to train pilots for the commercial aviation industry. Currently, more than 100 students are in training. The company has the capacity to train up to 120 students per year.
The company owns 34 aircraft and leases three others as well as flight simulators and classroom training facilities.
IASCO currently employs 56 people with an annual payroll in excess of $2 million. It also supports another 18 jobs at the airport and approximately 26 additional jobs in the region that are dependent on the company.
“This company has been responsible for almost $10 million in annual economic output to the region according to the NoRTEC economic impact modeling system. In addition, the Chinese students training at the facility invest almost $1 million annually into the regional economy in terms of accommodations, food and general spending,” said Mark Lascelles, president of the Economic Development Corporation of Shasta County.
“This is a remarkable achievement when a group of local investors can step up and purchase one of the oldest flight training schools in the United States and, by doing so, keep one of our strategic airport companies from leaving the region. The community should take pride that IASCO Flight Training is now a locally-owned company,” Lascelles said.
The purchase was made possible with a business loan from the Small Business Lending Fund from Redding Bank of Commerce.
“We saw an excellent opportunity to support a strong group of investors and keep a good company in this community,” said Pat Moty, president of Redding Bank of Commerce.
“This fund in intended to create jobs and promote economic growth in local communities across the nation and that is exactly what was achieved here,” Moty added.
Victor Clark, vice president of Redding Jet Center and also an investor in the venture, noted other airport service companies rely on this business remaining in the region.
“Their departure would have had an enormous impact on all of the airport’s businesses,” Clark said.
Redding Airports Manager Rod Dinger concurred. “:At a time when we are working to recruit more passenger service to the airport, we must be seen as a strong and vital region” Dinger said.
Because the business is located within the Shasta Metro Enterprise Zone the buyers had the additional incentive of Enterprise Zone Hiring Credits in their decision to purchase this company. Enterprise Zones are a State of California economic development program, one of the goals of which is to keep jobs in California.