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Posts Tagged ‘economic development’

Toyota to End Production at NUMMI….or Perhaps Not

Thursday, August 27th, 2009 | Tax News

FREMONT, CA (KGO) — Toyota announced the news thousands of Bay Area auto workers feared — it is ending production at the Fremont NUMMI plant. This, as plant managers get set to meet with leaders of the workers’ union later on Thursday afternoon.

The Toyota board voted very early this morning to end production at the NUMMI plant in March of 2010 and that will affect about 4,600 employees. Many of them rallied last week and hoped to changed the decision about keeping the facility operating.

NUMMI is the largest auto manufacturing plant west of the Mississippi and it could impact as many as 35,000 people tied to the production in the supply chain. The joint venture between Toyota and General Motors has been very successful since 1984, but the operation was thrown into turmoil in June when GM announced it was withdrawing the 50/50 joint venture and its partnership as part of its bankruptcy proceedings.

Essentially, the workers and this surrounding community now have six months notice, and many people say it is not over despite Toyota’s announcement.

Following the announcement, Lt. Governor John Garamendi said that a resolution must be reached to save the last auto plant in California. He is talking about perhaps stimulus money or an enterprise zone. There was also some legislation mentioned in Sacramento prior to Toyota’s announcement, and Lt. Governor Garamendi said those efforts will continue despite the announcement.

Tale of Two Cities: Escondido Denied Enterprise Zone Designation

Friday, August 21st, 2009 | Uncategorized

As five new cities rejoice at being designated as Enteprise Zones, some others, including Escondido, are deeply disappointed at having missed the chance to boost their local ecomony.  The San Diego Union Tribune had this to say:

ESCONDIDO — Escondido’s hopes of becoming an enterprise zone to boost its economy have been quashed.

It lost in the latest round of California Enterprise Zone applications to five other cities: Sacramento, Hesperia near Victorville, Pittsburg in the Bay Area, Tulare near Fresno, and Taft, north of Los Angeles.

“What a disappointment,” Mayor Lori Holt Pfeiler said. “We were hoping to add it as a tool to help revitalize our underused area (industrial district).”

The city had hoped to use an enterprise-zone designation and the tax credits it gives to businesses to attract high-tech corporations to diversify Escondido’s revenue.

Almost 40 percent of Escondido’s general fund income now comes from sales tax, which is plummeting and resulting in budget deficits.

In March, the city applied to the state Department of Housing and Community Development to become an enterprise zone, proposing an area that covered almost the entire city.

It was roughly bounded by Country Club Drive to the west, state Route 78 and El Norte Parkway to the north and Midway Drive to the east. The southern border jogged along Oak Hill Drive, Juniper Street, Centre City Parkway and Ninth Avenue.

But Escondido soon learned that it faced record competition, and this week, the department announced that the city lost.

John Nunn, the state’s enterprise-zone program manager, declined to explain the reasons, other than the city scored lower.

 
 
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