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•           Taft, Tulare and Sacramento get conditional designations
•           ‘Enterprise zones give communities a chance to develop their economic potential’

Three enterprise zones have been conditionally approved for renewal in the Central Valley by the California Department of Housing and Community Development. The zones include parts of Tulare, Sacramento and Taft. Hesperia and Pittsburg were also added. The Tulare County zone, dubbed the Sequoia Valley Enterprise Zone, includes the cities of Dinuba, Exeter, Lindsay, Farmersville, Porterville, Tulare, Visalia, Woodlake and the unincorporated communities of Traver, Goshen, Tipton, Pixley, Earlimart, Richgrove, Ducor, Terra Bella, Poplar, Ivanhoe, Orosi and Cutler. “This was a key component of our economic development strategy and we are looking forward to increasing job opportunities for our residents,” says Paul Saldana, president and CEO of the Tulare County Economic Development Corporation. "California enterprise zones give communities a chance to develop their economic potential, improve their quality of life and contribute to the state’s economy,” says HCD Director Lynn Jacobs.

The California Enterprise Zone Program targets economically distressed areas using special state and local incentives to promote business investment and job creation. The program strives to create and sustain economic expansion in California communities. The new designations will take the place of zones statute that expired or will expire in 2009. Each zone designation is in effect for 15 years. Businesses within enterprise zones are eligible for substantial tax credits and benefits. For example firms can earn $37,440 or more in state tax credits for each qualified employee hired, the department says.

The next step in the designation process will be the HCD issuance of a conditional designation letter to each of the new zones. The letters will outline conditions that must be met to be granted final designation. Examples of conditions include a signed memorandum of understanding with HCD, which includes performance measures and benchmarks. In 2006, the legislature passed AB 1550, which authorized improvements to the enterprise zone program by emphasizing economic development, outreach, marketing and accountability. Provisions of the law include additional reporting by both the local enterprise zone and the department on a biennial basis and an expansion of HCD’s audit authority to cover all economic development areas.

http://www.centralvalleybusinesstimes.com/stories/001/?ID=12879