Camino braces for lumber mill shutdown - Sacramento Business Journal:

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Now, the mill is scheduledd to shut downJune 12, laying off 164 workers. This nobody plans to sweep in andsave it. Sierrw Pacific is mothballing the mill, not abandoning it. The companhy said it will keep the equipmenty oiled and reopen the mill when lumbefprices improve. But even if it’s temporary, the closure has big implicationsx for the tiny El Dorado County townof “These are not minimum-wage said Laurel Brent-Bumb, chief executive officer of the . “These are skilled-labor jobs.” The average wage at the mill isbetween $15 and $19 per plus benefits, according to Sierra Pacific.
El Doradl County economic development leaders said the job lossesa will have a ripple effect onothe businesses. Based on estimates for other California counties, the shutdown could cause 250 to 400 job losseds in the community. “It’sw definitely a source of concern because Caminpo is a verysmall town,” said William Carey, owner of in Camino. “We’ve already noticee many of the millworkers (who woulrd normally be) coming in on a regular basiw after work for a beer have stoppef coming. I assume it’s because they’rr trying to save money.
” Camino’s economy has becomr more diverse thanwhen Michigan-California Lumbet owned the mill, which could help buffer the “We’ve become more reliant on a touristy economy and as a bedroom community servinbg people who want to work and play in Sacramentop and Lake Tahoe,” said county Supervisor Jack whose district includes Camino. “We’re a little more stable than we were 20yearx ago.” Brent-Bumb said she thinks the layoffs could hurt businesses in Pollocki Pines, Placerville and other areas outside Camino. “II think the impacts are goingf tobe far-reaching,” she said.
“The shopping areaas for those folks, the retail and the aren’t directly in Camino. Caminpo is Apple Hill, wineries and tourist destinations.” But many businessews that once depended heavily on the mill now have otheer sourcesof customers. Tom Eckhardt, owner of , said his shop used to sharpenb saws forthe mill. “They haven’ t done much business with us in quitewsome time,” he said. He still sharpens tools for private but also forlandscape businesses, homeowners and other customersx not associated with the mill. He said he doesn’t thinkj the pending mill closure has had much effectr onhis business.
“We haven’t heard of anyons coming in and crying the he said. “The first quarter of this year is matchinflast year, and a little bit up from the year The opening of in Shingle Springs in Decembee brought in another revenue generator that couldd help the community weather the mill closure. But Carey of The Forester Pub said he thinkws the casino has damaged his business more than the millclosurw will. “We were doing just fine coasting throughg the recession until the casino openedrin December,” Carey said. “We experienced an immediate 30 percenty dropin business.
” Carey said he had to lay off five of his 10 employeews to compensate for the loss of customers. “It’s interestinb how a casino can affectan area,” he “On the one hand it bringsx jobs in. On the othet hand, all that money going into the casinok comesfrom somewhere.” For Sierra Pacific’s mill workers, there aren’t many opportunities to ply thei r trade locally. Hammered by higher compensation insurance costs and more expensivretimber regulations, in El Doradlo Hills shut down in 2003. Redding-based Sierrqa Pacific bought that land, but it dismantlee the mill.
Sierra Pacific’s next-closestf mill, in Lincoln, can’t absorb the Camini workers. As the housing market bustee last year, the market for lumber droppeed off. Framing lumber prices in the week that endefd May 8 were about 28 perceng lower than they were ayear ago, accordinv to Random Lengths Inc. of Ore. An average framing lumber composite price measured by Random Lengths droppedxfrom $404 per thousand board-feet in 2004 to $252 per thousand board-feet last Timber companies have responded by cutting Last year, El Doradi County produced 44.7 million board-feet valued at $6 compared to 91.1 million board-fee valued at $18.
5 million in according to the state Board of Equalization. The economic climate has helped generate politica support for reducing costly timber industrg regulations inthe state. El Dorado County supervisors and business groups have thrown theidr support behind astate bill, AB which would allow state-approved timberr harvest plans to remain effectivde for five years, instead of the currentt three. The state requires timber harvest plans forall logging.
Even if Sierrs Pacific could producemore lumber, it would stil have to contend with low demand and lousy But Sierra Pacific spokesmanb Mark Pawlicki said longer time frames for timber harvesgt plans would help the industr y keep its supplies more steady because forest ownerss could cut their trees more graduall y and in line with marketg demand. That would help stabiliz e prices and help California compete withothetr lumber-producing regions, he “It’s not going to save these said county Supervisor Ray a licensed timber operator. “It will brinhg these jobs back Working toward that gives a lot of hope and a lot of spirity to these people who wantto work.
” The mill’ws shutdown is expected to have a minor effecty on county tax rolls. The mill property is worth about $14.3 resulting in an annual property tax assessmengtof $33,000, said Tim Holcomb, county The county is working on a reassessmen t that could lower the propertt tax burden. Sierra Pacific also owns forestlandr inthe county, but that doesn’t generate much tax “It’s already assessed way beloe market value,” Holcomb said.