Long Beach plans for the long term.

Having witnessed defense cutbacks in an earlier recession, the city has long been active in economic development

These days, there seems to be no escaping the doom and gloom forecasts of our nation's economy. We read about it in the papers, hear about it on the radio, view countless depressing facts and figures on the television.

In reality, there are a number of current trends under way which could mean good news for businesses, and especially retailers. Keeping an eye to these trends, which are, of course, reflective of changing demographics in combination with current economic conditions, can lead a business down the path to stability, and yes, even prosperity.

That path, as it turns out, may be as close-by as at the end of the Long Beach freeway. Businesses, and plenty of them, are discovering that Long Beach offers diverse and abundant demographic characteristics coupled with a political climate that encourages business success.

Southern California's gripping recession is projected to last another two years. However, businesses TABULAR DATA OMITTED wanting to stay afloat now, and those wanting to use this opportunity to flourish, know that doing so requires more than simply waiting for the tide to turn.

The specific trends those retailers will focus on include a nationwide strategic movement in which retail and other businesses are returning to urban centers. Yet, an urban environment alone may not be enough to provide the volume retailers currently require.

Urban centers

These urban centers need to provide bustling, 18-hour-a-day activity where an international business community thrives by day, and an abundant night life, complete with a vast array of entertainment venues from restaurants and clubs to shopping opportunities, theatres and the arts, comes alive at dusk and on the weekends.

This is the scene that Long Beach has worked hard to provide. Beginning as far back at the early 1960s, the Long Beach Redevelopment Agency was formed to create a better place to live, work and do business by enhancing the quality of life and expanding housing, employment and business opportunities.

Some 20 years later, the fruits of those earlier labors are TABULAR DATA OMITTED clearly visible. During the late 1980s, Long Beach became one of the busiest office development sites on the West Coast as several million square feet of Class A office space were added downtown and adjacent to the Long Beach airport to service the city's diverse commercial sectors -- including international trade, oil, aviation and aerospace, hospitality and tourism, health care and education.

Throughout the last three years, dozens of new shops, dining and entertainment facilities have been added to round out Long Beach's hearty commercial office activity. The city's new or recently refurbished Class A office buildings include Landmark Square and Shoreline Tower on Ocean Boulevard, as well as the monumental Greater Los Angeles World Trade Center, and the adjacent hub of state and federal office buildings which house, among others, the U.S. Customs Service.

Performing arts groups

More than 80 highly visual and performing arts groups who make Long Beach their home, including a permanently based ballet, symphony, civic light opera and grand opera. The world's largest marina, the Toyota Grand Prix of Long Beach (which is the largest Grand Prix street race in the nation) and a seven-mile beach complement this exhilarating environment. Not to mention the flurry of activity taking place over at the state-of-the-art Port of Long Beach, a direct link to the global marketplace and the provider of nearly 20,000 local jobs.

According to John Morris, restaurateur and president of the Downtown Long Beach Associates, "There's enough here now that when people come to catch a movie and have dinner, they are surprised by the level of activity they find." Morris, a pioneer in the area when he opened Mum's on Pine Avenue, is quick to note that there is still room for a variety of merchants to join in this retail revolution.

Those already partaking in that revolution include AMC Theatres with its just-opened 16-cinema complex, host to more than 22,000 patrons each week; Z Gallery; Ben & Jerry's Ice Cream; No Subs-stitute; Benita's Frites; Johnny Rocket's; Koo Koo Roo; LaSalsa; Sticky Fingers; Mrs. Powell's; Ciao Chow Express and Broadway Billiards Club; as well an impressive collection of fine dining establishments including Mum's, Pine Avenue Fish House, System M and L'Opera.

Tourism sector

Aiding in Long Beach's resurgence is a healthy hospitality/tourism sector, which has not only held its own despite what appears to be a worldwide tightening of travel dollars, and what could have been devastating effects of the "L.A. Riots." Tourism, in fact, is historically one of the most successful and currently among the fastest growing sectors in this economy. According to statistics compiled by the Long Beach Area Convention & Visitors Council (LBACVC), last year the city saw a 10 percent increase in the number of travelers visiting here on business. The demand at the Long Beach Convention and Entertainment Center has been so great that it is in the process of tripling in size to keep up with demand.

Visitors, it appears, are drawn to Long Beach for many of the same reasons as its nearly half million residents and those who conduct businesses here -- for what is often described as a rich international atmosphere side by side with the comfortable secure feeling of a hometown.

True, Long Beach has been hit hard by defense cutbacks and layoffs in its aerospace industry, but city officials had learned a valuable lesson back in 1975 when the military base and its ancillary aerospace contractors fell under threats similar to those which the community faces today. In a sense, Long Beach has been planning for its current situation for nearly 20 years, which helps explain the city's early and enduring pledge to promote an aggressive and diversified economy.

Staying on course

As it turns out, it is a testament to the Long Beach campaign TABULAR DATA OMITTED that in the havoc-wrought 1990s this community has not only been able to stay on a course that was aggressive during the heyday of the 1980s, but has also succeeded to even greater heights. This is especially impressive when compared to neighboring Southern California communities whose development pursuits of yesteryear have slowed or seized, never having lived up to their potential.

It is unclear who is made happier by the resurgence taking place in Long Beach, the businesses who reap the benefits of a carefully sowed economic plan, or the city itself, and its 437,816 residents who profit from the increased products and services now available, as well as this rich source of tax revenues.

Regardless, it is no accident that those businesses have located here and stayed. The people of Long Beach have worked diligently to create a unique urban environment that offers everything one could want for business and family life. The city government, guided by its strategic plan, has actively joined forces with private enterprise to foster a prosperous and growing business community.

Aggressive recruiting

Through its Redevelopment Agency, the City of Long Beach has launched the most aggressive recruitment effort in its 105-year history. The result, since 1992, includes the addition of 439,000 square feet of new retail business, which has generated over 400 jobs; 278,518 square feet of filled office space, representing an additional 1,200 jobs, and nearly six and a half acres of leased industrial space, netting 300-plus jobs.

More than simply touting the city's many natural and historic attributes, the city's marketing plan provides substantial incentives to encourage businesses to expand and relocate here. Realizing that there are some very aggressive government and private agencies out there that would like nothing better than to lure industry away, Long Beach officials decided that competing in this arena requires the commitment of substantial programs and incentives.

Perhaps the most visible of these is the Enterprise Zone program, granted by the State of California, which provides for tax credits and access to special financing programs, and which came after heavy lobbying efforts by state and local representatives working along with leaders in the business community.

Another attractive package is the Recycling Market Development Zone program which allows for low interest financing for projects up to $1 million, as well as, special tax credits for purchases of machinery and equipment used in recycling.

The West Long Beach Industrial Redevelopment Project Area provides businesses buying, constructing or leasing an existing building within the project area, a free conditional use permit and variance, a rebate on transportation and school impact fees, a free business license for one year, low interest loans for tenant improvements and/or a rebate for facade improvements.

Retail sales program

A retail sales tax program returns half of the local share of the sales tax collected by a high volume retailer to that retailer. Additionally, a hiring credit of more than $19,000 for each eligible new employee can also be applied by many businesses.

Furthermore, the Long Beach Business Development Center offers free assistance by providing services from recruiting, screening and training new employees to handling all the necessary permitting and licensing. There is even a newly formed Export Development Office, which goes so far as to teach companies how to successfully export their products in the global marketplace.

According to Jim Speck, President and Owner of Circle Imports -- which includes Volkswagen, Porsche, Audi, Volvo and Mitsubishi dealerships -- the decision to speak with representatives of the Long Beach Business Development Office resulted in keeping five of his franchises here in the city. "We were in a situation where we had a number of small franchises. Six to be exact," he said. "We had an opportunity to sell five of the six. Although that is not what we wanted to do, it was something as business people we had to think about. Had that been our decision, five of the franchises would have relocated outside of the Long Beach, and the sixth we're not sure about."

Speck went on to explain that by calling the city, he was able to work out options that allowed him to retain all of his businesses. "The tax rebate program that the city worked out is the reason that we stayed and made the long term commitment of signing a 15-year lease," he said. "Harbor Bank was also instrumental in financing the project, which I would say is a perfect example of private enterprise, banking and city government making a win-win-win situation.

Outlook for the future

Signs of the retail revolution are also evident in several other areas of the city, reflecting current computer trends.

Specifically, there is a current consumer trend which indicates a preference toward shopping districts, like the one evolving downtown, as well as that which has made the Belmont Shore area popular for years. In the Shore, it has been the goal of the Belmont Shore Business Association to establish the best "main street" possible along the area's heavily foot-traveled Second Street. Changing demographics here have produced an increase in young families. Meeting these needs are such recent retailer arrivals to the 11-block area as The Gap, The Body Shop, Banana Republic and Haagen Dazs Ice Cream.

Another nationwide trend is toward high volume, discount retail, and it is represented locally with Food 4 Less's new North Long Beach location, which will be joined later this year by HomeBase when its 110,000-square-foot store opens there. Staples Office Supplies opened two stores in the city, while Pep Boys is currently constructing a 22,000 square foot discount automotive outlet. Parts Mart added a 25,000 square foot to the neighborhood, as Big 5 Sporting Goods gears up for a Long Beach relocation.

"For many years, one of our most successful classic Crown Book stores has been located in Long Beach," said Nick Egelanian, vice president in charge of real estate for Crown Books. "When developing our new Super Store concept, with an emphasis on larger, more spacious stores and enhanced customer service at our traditional value prices, Long Beach was one of the first places we considered, and in fact one of the first places we opened." Egelanian continued, "The new store is very successful, and we are happy to be a participant in the community."

Shoreline Village

The Shoreline Village theme retail center on a picturesque waterfront setting with, its signature antique carousel, taps into the city's access to tourism dollars with such establishments as the Mole Hotel, gift shop, Heidi's Frozen Yozurt, the Mardi Gras (of the Red Onion restaurant chain), and Jacqueline's Boutique, an upscale women's clothing store which also has shops in Newport Beach, Balboa Island and Huntington Beach.

All told, Long Beach offers businesses of every caliber an environment in which to thrive. Long Beach provides access to virtually every available demographic stronghold, along with a business environment geared toward success--both for the businesses and the community.

Long Beach business incentives

Long Beach officials realized early-on that competition in the bid for a strong and diverse business base would require impressive and alluring incentives. A list of some of those programs follows:

* Tax credits on the purchase of machinery, equipment or building materials. Businesses in the Enterprise Zone can receive a sales tax credit on up to $220 million worth of purchases of eligible machinery and equipment. Businesses in the Revitalization Zone are eligible for a sales tax credit on building materials and a wide range of equipment including office furniture. This translates into a $40,000 savings on an equipment purchase worth $500,000. (The Long Beach Enterprise and Revitalization Zones cover 26 and 40 square miles respectively, including prime and diverse areas of Long Beach.)

* Tax credits for employee salaries.

Enterprise Zone businesses also enjoy a hiring credit of more than $19,000 for each new employee hired. In some cases, federal tax credits may also apply of us to $2,400 per employee. And, if eligible for on-the-job trainees are hired, businesses can also receive a cash reimbursement for half the trainee's wages for up to three months. By hiring just five new employees translates into $90,000 in tax credits during a five-year period.

* Retailers get to keep half of their local sales tax. Actually, the savings come in the form of a rebate of up to half of the local share of sales tax revenue on a high-volume retailers taxable sales above $5 million. That means that a company with $105 million in annual taxable sales would receive a $500,00 per year rebate.

* Business expansion financing. Financing for business owners is provided through a variety of instruments, including Small Business Administration loans, Long Beach's Commercial and Industrial Rehabilitation loans and through small business revolving loans.

* Low interest financing. Companies that use or plan to use recyclable materials in the manufacturing process are eligible for low interest financing (currently 5 percent).

* One stop for permits. In Long Beach, businesses receive the services of a business planner who coordinated all necessary city permits, licenses and developmental procedures for them.

* Free employee recruitment, prescreening and training. Simply supplying the Business Development Center with specifications and it will recruit eligible job seekers, screen them to those specifications, and refer the pre-screened pool of candidates on for the businesses selection. To help save additional time and money, the center will even provide actual customized employee training for a variety of job classifications -- from restaurant and hotel workers to highly-skilled technicians and laborers -- in city designated classrooms or on-the-job at the work site. All of which is at no cost to the employer.

* Business losses can offset future income. One hundred percent of net operating losses can be carried forward to offset future income for up to 15 years when the business is located in the Enterprise Zone.

The City of Long Beach Business Redevelopment Center is at 200 Pine Ave., 4th Floor, Long Beach, CA 90802 [phone].

Jerry Miller is Manager of the Business Development Center for the City of Long Beach.