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Napa magnetism undeniable, but Dey loss a serious setback

For developers pondering whether there is a market for downtown luxury condominiums, the Riverfront in Napa has an early answer: a solid yes.

Priced in the high-$600,000s to $1.675 million, the first release of 10 units went in one night. There are still 40 more to sell, but the start was better than developers expected, especially given the uneasiness about the economy.

For Napa community leaders, the Riverfront is just the latest evidence that the Wine Country city has become a magnet for wealth and businesses that want to be associated with a name known around the world.

That said, Napa still faces a huge economic setback, the recently announced exit of 540-employee Dey LP. The pharmaceutical company purchased in 2007 by Mylan Inc. is Napa’s largest private employer when its total work force in Napa and elsewhere is taken into account.

Dey has long been at the forefront on critical local issues such as education,

work force, economic development and transportation, particularly much needed improvements to the dangerous and congested Jameson Canyon Road. Dey’s involvement and leadership in the nonprofit community is widely recognized.

Meanwhile, the announced closure of Dey over the next two years comes at the same time that the 25-year-old Napa Valley Economic Development Corp. has disbanded. The business organization was an important driver of progress on a range of key local issues.

It may be going too far to conclude that absorption of Dey into other Mylan operations is part of a poor climate statewide for manufacturers. But it is worth remembering that California has the highest income tax of any state, an ongoing and seemingly intractable budget crises and enormous transportation and housing challenges.

Mylan, by the way, is an international pharmaceutical giant operating in countries with corporate tax rates far below the United States.

Napa leaders have rallied to organize a response to losing Dey. And while Dey may be leaving, other companies in similar businesses are hiring.

But the Dey news is a harsh reminder that economic prosperity in today’s global competition for jobs requires constant vigilance.