A larger portion of the San Fernando Valley is now eligible for state tax credits that would help local businesses retain and create thousands of jobs, Mayor Antonio Villaraigosa announced today.
He said the State Enterprise Zone in Los Angeles has been expanded to include 5,444 acres in the San Fernando Valley.
That area covers land zoned for manufacturing and industrial uses, and certain businesses in Chatsworth, Canoga Park, Northridge, Van Nuys airport and corridor, Warner Center and the Northeast Valley industrial area, according to the mayor's office.
"With 37 percent of the population and 47 percent of the city's land area, the San Fernando Valley's economic vitality is of utmost importance to all Angelenos,'' Villaraigosa said. "Enterprise Zones help businesses lower their operating costs and promote hiring and capital investment through tax credits and deductions.''
The mayor's office said the benefits of being part of an Enterprise Zone include:
- employment tax credits of $37,400 per employee hired, spread over five years;
- 35 percent utility rate reductions over five years from the Department of Water and Power;
- sales and use tax income credits for purchases of machinery and equipment;
- lender interest deduction for loans made to Enterprise Zone businesses; and
- priority bid preferences for Enterprise Zone businesses bidding on state procurement contracts.
First Deputy Mayor Austin Beutner said these would create ``an environment to spur the creation of over 15,000 jobs within the next five years, and support our existing businesses and attracting emerging industries to the San Fernando Valley.''
``Having the Enterprise Zone expanded in the San Fernando Valley is some of the best news we have ever had,'' said Bruce Ackerman, president and CEO of the Valley Economic Alliance.
``This gives us the ability to retain existing businesses that may be considering moving from the Valley and enhances our ability to attract new businesses from outside of the state,'' he added.
The mayor's office said some of the companies that intend to boost their operations after being becoming part of the Enterprise Zone include Audi of Woodland Hills Auto Gallery, which is is planning a $5 million investment that would create 35 full-time jobs and 60 construction jobs; and Micro Solutions Enterprise in Van Nuys, which plans to hire 100 new employees.
Westfield Corporation is also planning a significant development within Warner Center that will add thousands of jobs, according to the mayor's office.