Since July 24, 2008, the City of Clovis has participated in the Enterprise Zone Program. During the past 20 months 33 businesses have begun to participate in the program, assisting with 160 being created or retained. The tax credits available through the program provide a total first-year potential savings of $1,996,800 and a potential five year potential savings of $5,990,400 for participating businesses. The attached resolution requests that the State of California continue to support the Enterprise Zone Program. The resolution is necessary because the state legislature is currently considering legislative bills that would cut or eliminate the Enterprise Zone Program.

Click here to read the full summary from the city (PDF Download Link).

Click here to view the latest newsletter for the CAEZ.

If you have a business in a California Enterprise Zone, contact us today for a free consultation.

The City of Colton, incorporated in 1887, is an “American Classic” with a very colorful past and proud history. Strategically located in the heart of Southern California, Colton is at the crossroads of the Inland Empire. It boasts affordable housing, low business taxes, a wide range of community programs for all ages and a very responsive city government. Colton is a full service City with its own Police and Fire Protection, Water and Wastewater Facilities, as well as its own Electric Utility—the second oldest in the State.

If you have a business in Colton, please contact us to see if you qualify for several key California Enterprise Zone credits.

Strategically located in the heart of the fastest-growing region in the United States, California’s Inland Empire, the City of Colton encompasses approximately 18 square miles of fertile valley nestled against the scenic San Gorgonio Mountains. A comprehensive transportation network, a skilled, ready-to-work labor pool and a viable partnership between business and City Government contribute vitality to established commerce. Available sites and a “can-do” attitude toward economic development make Colton attractive for successful relocation and new enterprise. As we move forward, we continue to build on a solid foundation rich in history and long-standing community values. We’re a city moving ahead – with Confidence.

Colton has a well balanced and diversified economy and is home to a variety of manufacturing, service, retail and distribution companies including Con-Agra Milling; McNeilus Truck; Williams Furnace; Telco Food Products; Al’s Garden Art; U.S. Express; Jon-Lin, Inc.; Ashley Furniture; the new state of the art medical facility, Arrowhead Regional Medical Center; along with the largest group of RV Dealers west of the Mississippi River.

Assemblymember V. Manuel Pérez, representative from Imperial County, weighed in on KXO Radio discussing the future of the Enterprise Zone program:

“We cannot overlook the state’s Enterprise Zone program. I spent a lot of time last year facilitating a hearing process to examine many aspects of this program, and I appreciate the efforts of stakeholders to participate in the dialogue. Last month, I introduced AB 2476 to serve as a vehicle for statutory reforms to the program. As the bill currently reads, it makes changes to the eligibility criteria for Targeted Employment Areas. I see this measure as a starting point and look forward to ongoing and productive discussions as we refine the bill language and make an important program even better.”

The city of Brawley voted 4-1 to look at a county-wide application to the state’s enterprise zone program. This is not a full commitment, but it is a step in the right direction for the region.

With declining job rates, city managers are beginning to realize that dramatic measures need to be taken in order to revitalize the local economy and begin attracting outside businesses.

“It would be a great opportunity to expand the scope of the enterprise zone,” County Planning Director Jurg Heuberger said. Heuberger also added that it would allow California the chance to grant a new enterprise zone if the IVEZ combined with the Calexico County Enterprise Zone (CCEZ).

The Oakland Tribune reported this past week that local business leaders from San Bernardino are fighting to keep their enterprise zone benefits.

Wendy Clement, manager of the San Bernardino Valley Enterprise Zone, and local business owners traveled to Sacramento on Wednesday to ask lawmakers to continue funding the enterprise zone program, which gives tax breaks to businesses that relocate to or create jobs in a specific area.

Clement claims that there have been over 1,035 new jobs created in their enterprise zone, and the EZ program is one of the main catalysts for that growth.

Craig Johnson, president of the California Association of Enterprise Zones, said some lawmakers and state officials have proposed scaling back the enterprise zone program and its tax breaks, with the aim of bringing in money to balance the state’s books.

“They’re all scrambling for dollars,” Johnson said. “A lot of folks look at the tax credits that are taken and they believe that by abolishing the program, those credits will translate into more dollars in the treasury.” But that’s not true, Johnson said. Without the program and its tax breaks, some businesses would leave California and others would go out of business, he said.

Barbara Hayes, the executive director of the Sacramento Area Commerce and Trade organization had some interesting remarks in the CalWatchdog this past week in regards to the state’s enterprise zone, below is what she discussed:

Hayes said there were two state programs that are effective: The Enterprise Zone program and the Employee Training Panel. Hayes also implored committee members to implement again an investment tax credit, at least for a “Clean and Green” type program. “Something is needed in the way of investment tax credits” for California businesses, she said.

The EZ program continues to be one of the most appealing aspects of doing business in California, and the more cities that are added to the program, the more jobs that will be created. The enterprise program speaks directly to the job loss hike that started even before the recession began a few years ago, and drastic measures will need to be taken in order to fix the problem.

While going through the Enterprise Zone commentary this past week I found a great post by Randy Gordon, the President and CEO of the Long Beach Area Chamber of Commerce discussing the absolute need for the EZ program that the state of California provides.

Below are some of my favorite thoughts that he posted, “We are in a time of double-digit unemployment rates, significant underemployment, minimal economic diversity, budget deficits, and a record-high of inventory of vacant business and industrial space. Expansion, not elimination of the California Enterprise Zone program that rewards businesses and employees for locating and expanding in economically challenged neighborhoods, including a large portion of Long Beach, should be encouraged.

The California Enterprise Zone (EZ) Program does exactly that, which is why we will be asking you to follow our lead and contact your representatives in Sacramento and urge them to protect the Enterprise Zone Program and oppose any attempt to dissolve or decrease enterprise zone areas or incentives.

Tax incentives that are part of Enterprise Zones include such things as equipment, hiring, worker credits, tax deductions, and preference points that can help them secure state-sponsored contracts. In other words, tools that attract businesses and promote economic development.”

It’s taken a while, however the Santa Clarita Valley region has hired a lobbyist to ensure that the area’s interests are represented well at the capital.

Natalie Everett, from the Signal, reports the following regarding the hire, “Damian Jones has 15 years of experience in the field, including a stint as The Home Depot’s government relations senior manager. His firm, Pacific Strategy Group, represents about 350 clients in 17 offices across the nation. One of the first issues Jones will tackle is securing Santa Clarita’s enterprise zone. A bill is making its way through the state Legislature that would make eligibility for the lucrative tax breaks – up to $37,000 for one employee over five years – harder to get.”

“(We recently) held a forum for existing business owners asking them what were the benefits of doing business in the Santa Clarita Valley, and the No. 1 answer was availability of the enterprise zone,” Jones said. “Real dollars are being saved, it’s improving our economy, and people are trying to … minimize their impact.”

It’s great to see cities from around the state are realizing the importance of the Enterprise Zones and are putting the resources needed behind their plans.

Following up on our coverage of the Redlands move to join the local San Bernadino Enterprise Zone, below are the detailed city council discussion and presentation.

Click here to view the minutes of the meeting.