Good evening. Thank you all for coming tonight. This is the third time I've had the privilege of presenting to you the State of the East County address. Each year we keep getting better! We are continuing the drive to economic prosperity for East County -- and the road ahead has endless opportunities.

THE ROAD WE'VE TRAVELED

Community Accomplishments
Over the last year, there have been a number of big accomplishments -- here are just a few:

Right here in Santee, thanks to the hard work of Mayor Dale and the rest of the City Council, $6 million was finally earmarked for design and engineering of the extension of Highway 52 to 67.

In La Mesa, a $30 million investment was made in the Gateway Redevelopment Project which opened this past year, providing 525 jobs and more than $1 million in tax revenues to the City.

Thanks to the El Cajon City Council, the Performing Arts Center is under new management. Mitch Gerschenfeld, the new President and CEO, has brought in international talent and renewed the focus on one of East County's best kept secrets.

Thanks to the innovative work of the Lemon Grove City Council, 10 lucky home buyers will be moving into Lemon Grove. The city rolled out the red carpet -- and the message was sent loud and clear that East County is a great place to live!

But the changes were not just in East County's Cities.

Ground was broken on the Rancho San Diego Towne Center, the largest commercial and retail development in the unincorporated area. Facilities, including Target, Lucky's, state of the art movie theaters, restaurants, and more are projected to open in October.

And, in Alpine, visitors will not only experience the country village environment which most of us enjoy and the fun in one of East County's three casinos, but they can also shop Átil they drop at the new Viejas outlet center and enjoy the nightly light and water spectacular -- this outlet is expected to gross $30 million in its first year alone!.

Tourism
You'll all recall a time just a few years ago when East County was left off the map. Last year, I reported to you that thanks to the work of Dal Watkins, Chuck Hansen, and others at the San Diego East Visitors Bureau -- East County was on the move and on the map. This year, the news is even better! We have our own map -- to highlight the unique activities and sights for visitors to experience -- from championship golf courses and resorts to the natural wonders of our mountains and deserts.

After only a year and a half of operation, the East Visitors Bureau has 142 members -- compared to North County Convis' membership of about 200, and they've been around for 27 years! And, if you attended East County's Super Bowl Bash, you know the San Diego East Visitors Bureau does things first rate!

Project Navy and Marines,br> Two weeks ago, Project Navy and Marines committee members, including Warren Savage, Roseanne Wood, Stacy Baronblank, Judy McQuitty, and Maryanne Vancio, traveled to El Toro to host an "Info Expo" for the more than 10,000 El Toro and Tustin personnel who will be moving to Miramar and Camp Pendleton. They may be working west of Interstate 15, they now know that just a quick ride out the 52 or the 8 lies East County - and it's a great place to live and play!

Connect-ory
The ECEDC received world-wide fame for initiating the Connect-ory, an Internet-based electronic catalogue for manufacturing. It is up on the web, courtesy of a host server provided by San Diego State University. Users can log on to find out information about each company and what it produces, as well as its ability to produce custom products or meet the demands of customers outside its traditional market.

How well does it work? When Navy officials saw the demonstration, they realized they could stop getting hazardous materials protection equipment from a company in Pennsylvania and start getting it from a company called Environmental Scientific Products located right here in Santee.

Currently, there are 789 companies listed in the Connect-ory -- and more are being added daily. With more than 25,000 hits in just under six months, it's a great opportunity which no company should pass up! Did I mention that the listing is free?

Grossmont High School District -- Jacob Bagnell
Another success -- Jacob Bagnell. He is one of the bridge builders I mentioned last year. Teaching automotive shop he helps to provide the linkage between school and work. Jacob is more than a teacher, he is also a mentor.

Jacob was successful last year in adding "Drafting" to the list of Fine Arts to the Grossmont High School District graduation requirements, and he is now actively campaigning to add Practical Arts, such as Auto Shop, Woodworking, Tool and Die Making, Plumbing, and Electrical, to the graduation requirements.

Jacob needs our help! I urge you to join me in petitioning the Grossmont Union High School District Board to take whatever action is necessary to get this done! Please let me know if you would like to be a part of this effort. My staff has sign-up sheets if you are interested.

Davis Technologies Training Center -- Ken Kovzelove
Remember bridge builder Ken Kovzelove? He often says he would be in jail today were it not for the interest he developed in machines. Last year, I told you about how he taught our young people the science and art of tool and die making -- an industry that produces hammers, medical probes, and golf clubs, just to name a few.

Ken has taken the brick and mortar approach to the challenge of bridging the gap between school and work. He was successful in convincing Charles Davis of Davis Technologies, a company that develops manufacturing software and prototype equipment, to build a new training center to teach machine skills. Just this afternoon, in fact, I had the pleasure to join Ken and Charles in dedicating their new training center in Poway. Wow! This is the first of its kind in the nation -- maybe East County is next! Their motto is "I have believed that I could do no greater good than help create a business that would give people employment and a chance to earn an honest living."

THE ROAD AHEAD HAS ENDLESS OPPORTUNITIES

Endless opportunities are now ahead of us. But, the future is not without challenges. Chief among them -- ensuring the quality of jobs in the region, and ensuring our quality of life.

Quality of Jobs
Although more people are working than ever before, the region is faced with a shrinking middle class. The problem is not the number of jobs, but the wages for those jobs, which are lower in real dollars than the income of the 1970's. Ensuring the quality of jobs means we must heed the warning signs and increase the median income. With the opening of the Davis Technologies Training Center, a major step will be taken to address this problem.

We mustn't forget that there are good paying jobs just waiting to be filled -- tool and die makers earn between $40,000 and $60,000 per year! Journeyman machinists make between $30,000 and $80,000 per year! And certified auto mechanics can earn between $60,000 and $100,000 per year!

Scholarships to Train for Quality Jobs
Davis Technologies made a significant investment by building the training facility and equipping it with the latest machinery available. On top of that, they'll provide a scholarship for a student to enroll in the program. It's a valuable investment not only in the future of a student, but an investment in the future of manufacturing and job quality.

Also, Solar Turbines of San Diego has generously offered to pay the tuition for one student to participate in the training program. Incidentally, Solar is the largest gas turbine manufacturer in the world!

Another company investing in our future -- aerospace giant Teledyne Ryan. Recognizing the need for well-trained machinists, Teledyne Ryan has also generously offered a scholarship for one student to participate in the Davis Technologies Training Program.

The Space and Defense Technology Consortium
County government is working in innovative partnerships to improve the ability of private sector employers to increase quality jobs. The Space and Defense Technology Consortium, for example, will provide local companies with the ability to compete with some of the goliaths who have a stronghold on national defense and space-related contracts. The North American Air Defense Communications Project alone is estimated to result in 400 new jobs and infuse the local economy with $50 million a year. The Board of Supervisors supports the Consortium and will host a Summit in the near future.

Quality of Life
Quality of life means many things to many people -- from clean air to safe neighborhoods, parks, libraries, good schools, adequate roads, meaningful open space and a vibrant economy -- good jobs!

I am pleased to report that the economy is up, unemployment is down, the crime rate is down by almost 20% and the air in San Diego County is cleaner than in 42 years!

But that's not enough!

To continue to improve our quality of life, we must successfully balance economic growth with environmental preservation and it's a delicate task. The 1900 acre Rancho San Diego Open Space Preserve and Towne Center Development is a recent example of this balance.

This preserve is part of the 172,000 acre MSCP along with Daley Ranch and Las Montanas in East County. Not only will this open space land be a legacy for us to pass on to future generations, it ensures that one of East County's finest assets, our beautiful back country, can be shared with others -- riding and hiking trails are but a few of the benefits!

At the same time, we must never forget that economic growth is the engine that drives our community's future! It's the delicate balance of the two that results in a quality of life second to none! We're doing it in East County!

In the coming year, I will be hosting an East County Eco-Tourism Summit so that all of us can better understand how we can market the natural beauty of our community and add to our economic base. Eco-Tourism is a bold new trend in the tourist industry, and one in which San Diegans, particularly those of us in East County, are primed to participate and promote.

Now, it's up to us to build on our strong foundation and continue the drive towards excellence on the open road to prosperity.

Thank you.