Economic Development Recovery and Resiliency Playbook - Flipbook - Page 81
Case Study:
Business Engagement
and Support
Thomas Fire Aftermath Is a Turning
Point for the Economic Development
Collaborative
On the evening of December 4, 2017, high winds caused two
power lines to collide and ignite, causing what would become
the largest wildfire in California history at that time. More than
500 residences burned the first night, and the Thomas Fire
quickly spread across Ventura and Santa Barbara counties,
burning approximately 281,893 acres before it was fully
contained on January 12, 2018. At the fire’s peak, more than
8,500 firefighters were mobilized to stop its advance.
As residents, storekeepers, and public oficials began the
long process of clearing away the debris, unusually late
seasonal rains deluged the region during the second week of
January. With no natural vegetation remaining to absorb the
rain, flash floods and mudflows overcame neighborhoods in
the unincorporated community of Montecito in eastern Santa
Barbara County. A total of 23 people perished — two from the
fire and 21 from the massive mudslides, which obliterated
more than 100 homes.
The Thomas Fire burned more than 1,000 structures and
caused $2.2 billion in damage, and the mudslides caused
the closure of roads, including U.S. Highway 101, the region’s
most critically important freeway and transit conduit.
Approximately $25 to $30 million in wages were lost due
to the lack of tourists, commuters, and commercial trafic
during the height of the winter tourist and holiday shopping
season. Many businesses reduced their operating hours, and
others simply closed.
The mudslides that followed the 2017 Thomas Fire caused
widespread damage, requiring extensive cleanup.
EDC Facilitates Funding and Business
Recovery Eforts
For the local Economic Development Collaborative (EDC),
the regional economic development organization for
Ventura and Santa Barbara counties, the fire’s afermath
was a turning point. In addition to securing an agreement
with the Gene Haas Foundation for $200,000 to capitalize
a micro-enterprise loan fund for fire-impacted businesses,
the EDC, as host to the local Small Business Development
Center (SBDC), successfully petitioned the Los Angeles SBDC
Lead Center and Governor’s Ofice of Business and Economic
Development (GO-Biz) for $86,000 in capacity-expanding
funding to scale one-on-one consulting and support to
businesses afected by the Thomas Fire. The funds enabled
the EDC to add a full-time staf member as a dedicated
point person for outreach and coordination of a 30-member
consulting team trained to provide confidential advising on
access to capital for short- and long-term loans, insurance,
unemployment, and tax relief. In 2018, the EDC SBDC helped
small businesses access $68 million in new capital — three
times more than its anticipated annual goal.
“The Thomas Fire created a crisis for many businesses, and
the EDC has responded with technical assistance, access
to capital, and resources at the ready,” said EDC CEO Bruce
Stenslie at that time.
Critical road repairs were part of recovery eforts.
The crisis experience proved useful when the destructive Hill
and Woolsey fires of November 2018 crisscrossed Ventura
and Los Angeles counties and forced the evacuation of more
than 295,000 people — and the EDC reprised its recovery
leadership role. Then, afer a 16-month respite, the EDC was
put back on alert when a Ventura County resident who had
traveled on a Grand Princess Cruise ship tested positive for
newly emerged respiratory illness called COVID-19.
Recovery Deep Dive: Engaging Businesses Before, During, and After Disruption
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