BURBANK TURNS INTO CINDERELLA FRIENDLY REGULATIONS MAKE ONCE-SPURNED CITY INVITING.

Byline: Brent Hopkins Staff Writer

BURBANK - No one's laughing at that old Johnny Carson joke about 'beautiful downtown Burbank' anymore - the city that for so long was the butt of humor now is the region's most desirable business destination.

Burbank's low-cost utilities, enterprise-friendly regulations, community feel and low taxes for new businesses combine to make the town a prime spot for development, according to industry watchers.

``It's awesome to come to Burbank,'' said Jack Kyser, chief economist for the Los Angeles County Economic Development Corp.

``What you run into there, is that they have very aggressive economic development. It's like one-stop shopping, where you go in and take care of all your needs in one sitting.''

This is radically different from the mid-1980s, when Lockheed Corp. closed up shop, shedding 20,000 jobs. According to Burbank Economic Development Director Susan Georgino, the city then began an aggressive shake-up of its business practices, shifting away from its reliance upon manufacturing and welcoming in the entertainment industry and more new technology tenants.

For another feather in its cap, according to the recently released Kosmont Cos.' energy study update, Burbank, Glendale and Los Angeles topped the state for their low energy costs.

Larry Kosmont, president and chief executive of the firm, said that while the rest of the state's energy costs have surged, the three Los Angeles County municipally owned utilities have kept companies sheltered, free from rolling blackouts and astronomical rates.

``There are going to be a lot of companies, especially medium and little ones, that have really gotten hurt by utility costs,'' Kosmont said. ``They're going to want to be in L.A., so you'll see an increase in interest.''

There already has been quite a bit of interest in the area, boasting approximately 9,000 firms, according to the city's Community Development Center. It's already home to major tenants like The Walt Disney Co., Warner Bros. and NBC.

A massive $200 million development near the airport, the Empire Center, is under way, boasting high-profile tenants like Target and Kripsy Kreme. Built atop land once used by Lockheed, whose departure in the mid-1980s cost the city 20,000 jobs, the center is hotly anticipated as a shopping destination.

A major advantage for Burbank firms lies in the different tax structure employed by the city, which taxes the number of employees - not gross receipts, as Los Angeles and most municipalities do.

In numbers provided by Kosmont Cos., a Burbank firm with 75 employees and $7.5 million in annual gross receipts would pay a scant $380 in taxes. The same firm located in Los Angeles would pay $8,850.

This hyper-accommodation of business draws in firms like the Make-up Designory, a vocational school for cosmeticians that relocated to Burbank in January. Though it made the decision prior to the energy crunch fully hit, administrator Stephen McCallum praised the low costs, and just about everything else about the city.

``When we started looking around, the Burbank business district was more than welcoming,'' he said. ``That made it a very viable option to us. We also got lucky and found a building that was a gold mine.''

The school was hooked in by the town's comfortable living and ample parking - a deal engineered by the city so students and employees can park for $20 per month in municipal lots.

With this squared away, they relocated from Toluca Lake to an 8,000- square-foot converted Firestone building. Setting up shop in Burbank, McCallum said, was a snap.

``The city has a chance to be much more personal when you move in,'' he said. ``We had marvelous one-on-ones with everyone. The city of L.A. is a great town, but they have so much paperwork they never get a chance to know anyone.''

This philosophy is inherent to the city's sense of being, according to those familiar with its economic practices.

``Burbank is a great place for businesses to thrive and prosper,'' said Georgino, the city's director of community development. ``We appreciate very much what has made Burbank as strong as it is: a sense of community and business.''

CAPTION(S):

3 photos, map

Photo:

(1 -- color) Anna Branson is taking a course at Make-Up Designory, a vocational school for cosmeticians that relocated to Burbank in January because of the lower costs of doing business.

(2) Stephen McCallum, an administrator at the Make-Up Designory, praises Burbank's business-friendly environment.

Charlotte Schmid-Maybach/Staff Photographer

(3) The Media Center is a popular shopping destination in Burbank, where low utility costs and friendly regulations have made the city a major draw for businesses looking to relocate.

Tom Mendoza/Staff Photographer

Map: Empire Center