Activity is buzzing around the California’s Enterprise Zone program – local groups are battling a controversial zone-changing state bill, communities are competing for new open spots in the program and business owners are trying to learn about recent boundary expansions. Local business organizations are still spreading the word about Senate Bill 974, legislation that proposes to strip down the zone program’s hiring tax credits and replace it with credits for vocational training programs for middle and high school students. The state program provides eligible businesses with tax incentives credits and deductions. While the bill was scheduled to be heard in the Assembly’s Committee on Jobs, Economic Development and the Economy on June 30, the hearing was postponed by the bill’s author, Senate President Pro Tem Darrell Steinberg. The hearing was delayed so Steinberg could focus on the state budget, said Alicia Trost, Steinberg’s press secretary. The committee will hear the bill sometime before the hearing’s mid-August deadline, she added. Sherman Oaks-based Valley Industry and Commerce Association discussed the bill with legislators during its healthcare-focused trip to Sacramento on June 23. The group, along with Valley Economic Alliance and BizFed, has been encouraging its members to make calls and write letters to legislators in opposition of the bill. “We can applaud (Steinberg’s) approach for trying to generate additional income, but not at the expense of a program that helps generate jobs,” said Bruce Ackerman, president and CEO of Valley Economic Alliance. The zone race Meanwhile, communities around the state are vying for two available zone slots required to sustain the state’s quota of 42 enterprise zones. The Santa Clarita Valley Economic Development Corporation is working with city and county officials on the application to expand the area’s current zone to include parts of unincorporated Los Angeles County and additional parts of the city. Centers and businesses within the county that could be added to the zone, which would take effect next year, include Valencia Commerce Center, Magic Mountain, Sunset Pointe, Valencia Marketplace and the proposed developments of Sterling Gateway, Disney/ABC Studios at the Ranch and Vista Canyon Ranch. The expansion could also include Northpark Shopping Center, Haskell Canyon Plaza, Plum Commerce Center, which are located within city limits. “All of these places have the potential to be supercharged job generators, which is something we desperately need in this recession,” said Bill Kennedy, the organization’s chairman and CEO. If the plan is unsuccessful, the city’s current zone will remain unaffected. The organization has until Sept. 15 to complete the application, giving it just under three months since the proposal just received official approval from the City Council on June 22. That is about half the time the city used to complete the application of more than 1,000 pages for its current zone in 2006, Kennedy said. “We were not aware that the state was going to open up two more positions until … early June,” Kennedy said. “So, that’s when we leapt into action (and) decided how we can possibly take advantage of this opportunity because there will not be another opportunity for any enterprise zones openings for two years.” The application process is estimated to cost about $100,000 since the small staff of the organization would need to hire consultants who would have to work over-time hours. The county and city are also providing assistance in creating the application. To pay for the project, the group has launched a fundraising campaign, which has already attracted a $20,000 donation from Six Flags Magic Mountain, Kennedy said. Zone information gap Valley Economic Alliance has been teaming with local councilmembers, organizations and companies to educate local businesses recently added to the zone about its benefits. One of Los Angeles’ enterprise zones was expanded to the West San Fernando Valley on May 10. The expansion includes the Warner Center portion of Woodland Hills; the Canoga Park, Chatsworth and Northridge industrial areas; the area surrounding Van Nuys Airport; and Van Nuys Boulevard from Saticoy Street to Oxnard Street in Van Nuys. The organization has already conducted three sessions and plans to hold three more throughout the summer. The sessions provide businesses with information about benefits such as the zone’s hiring tax credits. GROWING ENTERPRISE ZONE Proposed Santa Clarita Valley Enterprise Zone expansion. Areas potentially to be added to the city: Northpark Shopping CenterHaskell Canyon PlazaPlum Commerce Center Areas potentially to be added to the county: Valencia Commerce CenterMagic MountainSunset PointeValencia MarketplaceSterling Gateway (proposed)Disney/ABC Studios at the Ranch (proposed)Vista Canyon Ranch (proposed)
