CITY CUTS DEAL FOR COMPANY TO STAY PUT.

Byline: Douglas Clark Daily News Staff Writer

For the first time, city officials have offered financial assistance to keep an existing Simi Valley business from moving away.

In the past, incentives have been used solely to lure new corporations to the community.

The City Council on Monday night approved $32,750 in tax incentives to keep Microwave Monolithics Inc. - and the new jobs it hopes to create - in Simi Valley.

``We're very pleased that we could provide some assistance,'' said Mayor Greg Stratton. ``I think we've set a new example of the kinds of jobs we're looking for in town. It's a really good base for the community and our residents.''

Microwave Monolithics Inc. - a privately held company founded in 1982 that specializes in creating microwave and telecommunications equipment for the public and private sectors - provides jobs with salaries ranging from about $25,000 to $100,000, for an average worker wage of about $40,000 annually.

Don Penman, assistant city manager for economic development, said those are the kinds of jobs Simi Valley wants to keep - and attract.

``Clearly, one of our goals is to try to attract high-wage-scale employers. Our incentive program is geared that way,'' he said. ``It's good to be able to help an existing company grow here, rather than outside Simi Valley.''

Penman said the city is now negotiating a similar agreement with MICOM Communications Corp., which is building a new, bigger facility in Simi Valley for about 500 employees.

As a result of new products and contracts, Microwave Monolithics hopes to employ 65 people within six years. The company now has 15 employees.

Also, earlier this year the Planning Commission and city officials worked to expedite approval of Microwave's plan to construct a new $2.2 million 28,759-square-foot facility on Ward Avenue. The company is now leasing a 5,000-square-foot space on Easy Street, where it has been located since 1983.

``The money isn't much. More importantly, I'm pleased we could process this new building fast enough through the system to keep them in town,'' he said.

City Councilman Paul Miller agreed.

``Any time we can provide an incentive to keep a company like this in Simi Valley, I think that's a healthy thing,'' he said.

Microwave President Daniel R. Ch'en is out of town this week and could not be reached for comment.

But in a July 10 letter to city officials, Ch'en said that while a larger facility was necessary, Microwave employees ``prefer to stay in Simi Valley.''

Ch'en also said that the new administrative, marketing and engineering positions his company hoped to create will draw ``professionals that Simi Valley would be proud to attract and/or retain.''

The $32,750 incentive gives Microwave a tax break of $3,275 annually for 10 years. The amount was determined by looking at the number of jobs created, the amount of property tax generated, the size of the new facility, and general fund revenue generated by the company, according to a city staff report.