PACOIMA ENTERPRISE ZONE ALIVE GOVERNOR RESUSCITATES INCENTIVES FOR BUSINESS.Byline: HARRISON SHEPPARD AND DANA BARTHOLOMEW Staff Writers SACRAMENTO - Denied enterprise zone status just six weeks ago, Pacoima on Monday got back its tax breaks and other economic development incentives -- a Christmastime gift from Gov. Arnold Schwarzenegger Arnold Alois Schwarzenegger (German pronunciation (IPA): [ˈaɐ̯nɔlt ˈaloɪ̯s ˈʃvaɐ̯ʦənˌʔɛɡɐ] . The governor announced he will expand the Hollywood Enterprise Zone to encompass the northeast San Fernando Valley San Fernando Valley Valley, southern California, U.S. Northwest of central Los Angeles, the valley is bounded by the San Gabriel, Santa Susana, and Santa Monica mountains and the Simi Hills. community. The decision was cheered by local leaders, who said the Northeast Valley Enterprise Zone had helped attract and retain business in Pacoima for nearly two decades. ``The addition of the Pacoima area (to the Hollywood zone) strengthens the region's economic development activities and allows incentives to remain in place to promote business expansion and job growth,'' Schwarzenegger said in a written statement. In a designated enterprise zone, a business gets more than $31,000 in tax credits per qualified employee hired, sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. credits on machinery purchases of $20 million annually and preferences on state contracts. ``Having the enterprise zone in that area has enabled other businesses to make a decision to locate there, which creates jobs for the people who live there,'' said Warren Cooley, director of economic development for the Valley Economic Development Center. ``The incentives are huge when it comes to businesses evaluating whether to go one place or another.'' The community was stunned last month when state officials said Pacoima was the only one of 23 such zones whose designation would not be renewed. State guidelines require an enterprise zone to have at least 51 percent of its land zoned for commercial or industrial use, but a housing boom in the area had reduced available land. City officials and state legislators lobbied hard to keep the zone designation or restore the benefits another way. State officials acknowledged Monday that even though Pacoima no longer meets the technical requirements for a zone, it still needs help. Janet Huston, a spokeswoman for the state Housing and Community Development Department, said the state had received far more applications for enterprise zones than it had available slots. But revoking Pacoima's designation seemed inappropriate, she said. ``There are businesses currently in the Pacoima area that would have lost their benefits, and that's not in anyone's best interest. The result would have been a loss of jobs,'' she said. The decision unites several communities that are geographically separate, but share similar economic characteristics. The new zone stretches from northern Pacoima through Panorama City, Van Nuys and North Hollywood, over the Santa Monica Mountains The Santa Monica Mountains are a low transverse range in southern California in the United States. Geography They run for approximately 40 mi (64 km) east-west from the Hollywood Hills in Los Angeles to Point Mugu in Ventura County. to Hollywood and downtown Los Angeles Downtown Los Angeles is the central business district of Los Angeles, California, located close to the geographic center of the metropolitan area. The sprawling, multi-centered megacity is such that its downtown core is often considered just another district like Hollywood or , then ends in South Los Angeles South Los Angeles is the official name for a large geographic and cultural area lying to the southwest and southeast of downtown Los Angeles, California. The area was formerly called South Central Los Angeles, and is still sometimes called South Central. at 135th Street. A sliver of land through wealthier communities such as Studio City links those areas. Mayor Antonio Villaraigosa Antonio Ramon Villaraigosa (born Antonio (Tony) Ramon Villar, Jr. on January 23, 1953) is the mayor of Los Angeles, California. He is the first Latino mayor of Los Angeles since Cristobal Aguilar in 1872. praised the decision. ``This is a tremendous victory for the San Fernando Valley,'' said Villaraigosa spokesman Matt Szabo. ``The governor's plan for a unified enterprise zone represents the mayor's unified strategy for economic development in all parts of Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. .'' State Sen. Alex Padilla Alex Padilla is a politician in California. He was elected as the State Senator for the 20th District of California in November 2006 and was inaugurated in early December. In order to enter the Senate he had to resign as Councilman for the 7th District on the Los Angeles City , D-Van Nuys, formerly a city councilman representing that area, and current Councilman Tony Cardenas Tony Cardenas served in the California State Assembly. In the Assembly, he had the powerful position of chair of the Budget Committee. He is now a Los Angeles City Councilman, representing the 6th district, which includes parts of the San Fernando Valley. had also been involved in lobbying to retain the enterprise zone. Business people in Pacoima, a working-class community of nearly 100,000 residents, welcomed the news. ``It's definitely a good thing, not just for Pacoima ... but for the various businesses that are here,'' said Doug Waterman, Gold Graphics Manufacturing's chief financial officer. At its 120,000-square-foot plant, Gold employs more than 100 workers making banners to hang from streetlights across Los Angeles. ``Statistically, it's been proven that small businesses promote most of the new jobs and job growth,'' Waterman said. Many in Pacoima have set their hopes on the former Price Pfister Price Pfister is an American manufacturer of faucets and other plumbing products since 1915. It is known most by its odd name, and its advertisements which make note of its "pfaucet with a pfunny name". plumbing plant, whose 31 acres at Paxton Street and San Fernando Road San Fernando Road is a major street in the city and county of Los Angeles. It starts off in Castaic as The Old Road, passing through Santa Clarita and the Newhall Pass, where upon its intersection with Sierra Highway near the junction of the Golden State (I-5) and the are being scrubbed clean of pollutants for retail use. In addition to a Lowe's, they say, a Pacoima enterprise zone would benefit other businesses being planned at the Price Pfister site by Primestore Development of Beverly Hills. ``We don't want more muffler muffler, in automobiles, device designed to reduce the noise from the exhaust of an internal-combustion engine. When the exhaust gases from an internal-combustion engine are released directly into the atmosphere, they create a loud noise, caused by the passage of the shops,'' said Marlene Grossman, executive director of Pacoima Beautiful, a nonprofit advocate for a safe and healthy Pacoima. ``We want more businesses that are clean and healthy and help local residents.'' Precision Dynamics Corp., which employs 350 workers at its Pacoima plant and warehouse making plastic identification bands and other products, has saved hundreds of thousands of dollars over the years through enterprise zone benefits that encourage the hiring of Northeast Valley residents. ``Good news,'' said Mark Segal, chief financial officer of Precision Dynamics. ``The governor has done the right thing.'' harrison.sheppard(at)dailynews.com (916) 446-6723 CAPTION(S): photo Photo: Rosie Olea works in the sewing department during her shift Monday at Gold Graphics Manufacturing in Pacoima. Andy Holzman/Staff Photographer |
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