SALINAS - Forty million dollars worth of salaries is what the city of Salinas will be losing after Capital One announced it's shutting down its Salinas location, putting more than 850 people out of a job.
"It's a tremendous blow to our overall economic well being," said Ray Corpuz, city manager.
Corpuz said that $40 million is about about half the city's budget or wiping out the entire police department.
"That's apples and oranges, but you can see the magnitude of the problem that we have in Salinas," he said.
With Capital One leaving, Corpuz predicts things getting worse, including higher unemployment.
He said the city is working on a game plan.
"It has to be one that is very focused and targeted on business attraction and business expansion and that's where we will see the bulk of additional jobs we need," Corpuz said.
The city didn't release any specific information about the exact actions the it plans on taking.
"Of course figure out more ways, specific ways, that business expansion efforts can be bolstered and supported," Corpuz said.
And, again, while not going into any details, Corpuz said the city will work with Capital One on a new economic development plan.
'"We've got to be very focused, almost laser-like, to make sure our business attraction and the business expansion is our primary job of priority for us," he said.
Corpuz said he didn't know the specifics on how sales, property and utilities taxes will impact the city.
