BUSINESSES FIND BENEFIT IN THE ZONE : SEMINAR BOOSTS ENTERPRISE.

Byline: Jim Skeen Daily News Staff Writer

Business people who showed up Thursday to learn about the Antelope Valley enterprise zone's tax incentives say it holds advantages for their firms and clients.

More than 150 business owners, company personnel directors, brokers, lenders and real estate agents spent four hours at the Palmdale Cultural Center, attending workshops on such topics as how the tax credits work and marketing the zone to prospective clients.

``I'm looking forward to getting tax credits in the future, not only credits for hiring, but for lending credits for loans to properties in the enterprise zone,'' said Mike Pope, a real estate lender with Capital Thrift and Loan. ``If I can offer a loan for 1 percent less, that gives me an edge over a competitor who is not enterprise-zone savvy.''

The Antelope Valley became an enterprise zone Feb. 1. For the next 15 years, businesses in the enterprise zone are eligible for state tax credits, including credits on equipment purchases, interest deductions for lenders making loans to a business in the zone, and hiring credits for workers hired through certain programs.

The session was sponsored by the Antelope Valley Regional Partnership, the coordinating panel for local economic development efforts.

One of the attendees was Realtor Bruce Hailstone, who said the seminar was timely for him. Hailstone said he is working with a man looking for property to build a restaurant.

``I found out he qualifies for all aspects of the zone - hiring credits for employees and credits for equipment,'' Hailstone said.

Another attendee was Howard Harris, business broker with a firm called ACI in Lancaster. Harris is looking for opportunities to relocate businesses into the zone. There isn't much knowledge among business people about the zone now, but Harris expects that will change.

``The information is getting out now,'' Harris said. ``It's starting to stir the pot now.''

Among Thursday's speakers was Patty Nunn, economic development director for the city of Santa Ana. Santa Ana's enterprise zone is regarded as one of the most aggressive in the state in terms of job attraction, adding 3,500 jobs since 1993.

Nunn said her city's success with its enterprise zone is the result of constantly checking with business people to see if their needs are being met. That includes holding monthly meetings with zone users and developing a hiring manual that translates the state government's requirements into plain English.

``Your system will be different from ours,'' Nunn said. ``Once you put a system in place, it's important for you to check with your customers to make sure it is working.''

The event was intended to serve two purposes: educate people already doing business in the Antelope Valley to potential tax breaks, and to help market the zone to attract new businesses.

``I think people appreciated the fact it was designed in a way for them to hear general information and then information specifically tailored to their needs,'' said Ron Creagh, Palmdale's assistant city manager and one of the workshop presenters.

Other marketing efforts planned for the zone include mailing out information on the zone to real estate brokers throughout Southern California. There will also be a mailing sent out to 2,000 manufacturing companies in Los Angeles and the San Fernando Valley.

An Internet site with enterprise zone information also has been established. The Internet address is http://www.avez.org.

The Antelope Valley enterprise zone covers more than 40 square miles and includes virtually all commercial and industrial property in Palmdale, Lancaster and the unincorporated Los Angeles County portions of the Antelope Valley.

With the zone, the Antelope Valley can offer such incentives as tax credits for sales or the first $20 million of equipment purchased, deductions for interest income earned on investments, and credit employees may take on their individual tax returns for wages earned from a firm located in the zone.

Companies will also be eligible for a hiring credit for wages paid to employees hired through specific programs during the first five years on the job - a potential credit of up to $24,000.