Why Shasta County is negotiating to purchase large insurance office in east Redding

Shasta County is considering purchasing a large, multi-story office building in east Redding that at one time was bustling with hundreds of employees in the workers’ compensation field.

If the county were to buy the State Compensation Insurance Fund building on Shasta View Drive, it could be converted to office space for county employees who would be relocated in a consolidation effort.

The Shasta County Board of Supervisors met in closed session on Nov. 7 to discuss price and terms of a potential deal. But there was no reported action. The sale would include two separate surrounding parcels that encompass a combined 4 acres.

Last year, former interim County Executive Officer Patrick Minturn told the Record Searchlight that the State Fund site and the empty former Raley’s supermarket on Hartnell Avenue are potential locations where county employees currently working downtown could move to.

Current County Executive Officer David Rickert said in an email that it has not been determined what departments would relocate to Shasta View Drive should the county purchase the property.

Shasta County officials last year also raised concerns about the city of Redding’s new downtown parking program and the economic hardship it could have county employees that work downtown. The program went into effect in February.

At the time, the county estimated that 500 of their employees will be affected by the city’s pay-to-park strategy and about 400 clients who visit county offices downtown on a daily basis also could feel the financial pinch.

Minturn said that was one reason why the county was looking at locations with parking to move employees.

State Fund, a workers' compensation insurance carrier, moved from Knollcrest Drive in Redding to the 75,000-square-foot, $13 million facility on Shasta View in February 2008. The company has been in Redding since 1965.

The parking lot at the State Fund building in Redding sits empty in this October 2021 file photo. The company said employees have been working remotely since the start of the COVID-19 Pandemic in 2020.
The parking lot at the State Fund building in Redding sits empty in this October 2021 file photo. The company said employees have been working remotely since the start of the COVID-19 Pandemic in 2020.

At one time, State Fund had more than 200 employees in Redding.

But today the building is largely vacant.

State Fund spokeswoman Susan Wells said in an email that most of their employees have worked remotely since the beginning of the COVID-19 pandemic.

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They “have been very successful in this transition, not only maintaining business operations, but exceeding quality standards in a number of key areas. Team members who can perform their job duties in a remote setting have the choice to either work from home or from their State Fund office location,” Wells said.

The pandemic started in March 2020. The state and federal government ended the COVID-19 public health emergency in February and May of this year, respectively.

Wells said most of their employees continue to chose to work remotely, which also is the case in Redding.

“We continue to evaluate all of our office locations to ensure we keep the space we need for our business operations and also explore avenues to reduce space where it is no longer necessary,” she said.

David Benda covers business, development and anything else that comes up for the USA TODAY Network in Redding. He also writes the weekly "Buzz on the Street" column. He’s part of a team of dedicated reporters that investigate wrongdoing, cover breaking news and tell other stories about your community. Reach him on X, formerly Twitter, @DavidBenda_RS or by phone at 1-530-338-8323. To support and sustain this work, please subscribe today.

This article originally appeared on Redding Record Searchlight: Shasta County looks to buy east Redding office building