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Wednesday, Apr 24, 2024

The Case for Business Friendly

Last week, the Los Angeles Economic Development Corp. announced its finalists for Most Business Friendly City. I am pleased that the city in my region – Santa Clarita – was one of those finalists. The award, given annually since 2006, recognizes a city that demonstrates leadership in economic development and that works to attract, retain and grow businesses and jobs for Los Angeles County. Hopefully, this award inspires leaders to pursue excellence in how they work with businesses in their cities and even encourages cities to compete a bit for those global businesses that can locate anywhere. But far too often in our polarized political environment, “business-friendly” is interpreted as “labor-hostile.” While there certainly are policy issues where business and labor interests diverge, business friendliness is about more than those policies. As an economic developer for the Santa Clarita Valley, I hear the stories of businesses that are expanding into new facilities. They typically consider multiple locations, looking at cities in L.A. County and out-of-state alternatives. These businesses are often ignored by their city leaders, who express no interest in whether the company stays or goes. When they choose out of state options, we all lose because those jobs and that tax base leave the state. Basic behaviors that are common sense can go a long way. Returning phone calls and emails in a reasonable amount of time, treating business owners with respect rather than hostility, and simply listening to a business owner’s issue before rushing to judgment (and the far-too-often answer, “No”) are basic tenets of human interaction. But in many cities these basic elements of professional communication get overlooked or are viewed as unimportant. Similarly, handoffs between departments can often feel more like passing the buck than assisting someone down the path towards a decision. Worse yet, conflicting information can send the business person into a frenzy. When a company is relocating or expanding, it is often the only time they will ever interact with many city departments – and they must reconcile the requirements of one department with those of another, and often in the process create an issue for a third. Efforts by staff who are experts in these regulations can go a long way in helping a company feel that the city is business-friendly. None of the requirements change, but the positive approach to getting through the process productively makes all the difference in the world. That’s not to say that there aren’t some requirements that should change in order for California to help all of its cities become more business-friendly. Our tax rates are some of the highest in the country, and our zeal for regulation and litigation is notorious, as my peers in other states are quick to remind companies. Once again, the state Legislature is adjourning for the year having done nothing to curb CEQA abuse or rising workers compensation insurance rates. Instead, new regulations and mandates with no plans or details on how businesses will comply consume the Legislature’s attention. But those statewide challenges should not become a reason for local jurisdictions to just throw in the towel and blame the state for declines in the number of jobs. Each city can still take charge of how they work with businesses. For example, here in the Santa Clarita Valley, we focus on helping businesses access the resources and incentives that exist. Programs such as tax credits, sales tax exemptions, and use tax rebates still exist, if you can figure out which apply to your business. Workforce development programs that help businesses hire and train employees can reduce costs and create a pipeline of talented workers. We work hard to help businesses access these programs – to find their way through the maze of paperwork and acronyms and find the person who knows how the program works. In the end, the most important address for a business is its local community. Businesses employ our residents and are the economic engine for the tax base that supports that community. A bit more open communication and service can go a long way towards keeping businesses in L.A. County. Every city should vie to be the most business-friendly city because our regional economy, employment and quality of life depend on it.

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