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Thursday, January 19, 2012 (11:04 am) by Max Shenker

Assemblymember Luis Alejo Focuses on Enterprise Zone in Reaction to State of the State Address

Assemblymember Luis Alejo who represents the areas including the Salinas Valley Enterprise Zone and the Watsonville Enterprise Zone. In reaction to the Governor’s State of the State Address yesterday, a press release has been posted to the Assemblyman’s website. Assemblyman Alejo is focusing on Enterprise Zones this year as evidenced by his attendance at HCD’s listening session yesterday in Sacramento.

Here is the text of the press release:

Today, Governor Jerry Brown presented the 2012 State of the State Address before a joint session of the Legislature.

The speech highlighted the hard choices and cuts necessary for the state to balance the books, while still protecting the services, schools, and public safety most needed by working families.

“With the loss of redevelopment we are on the lookout for new options to spur economic growth,” said Assemblymember Luis A. Alejo. “The budget’s not just about numbers. It’s about keeping teachers in the classroom, making sure our communities have cops and firefighters to keep us safe, but most importantly putting Californians back to work.”

Alejo invited two guests to the Assembly chambers during the State of the State: Eduardo Montesino, Mayor of Watsonville, and Robert Reyes, a constituent from Salinas.

Watsonville is struggling financially due in large part to the loss of redevelopment funding and the potential loss of its Enterprise Zone. Montesino, who was elected by the city council to be mayor just last November, has spoken publicly about redevelopment’s importance to the city’s economic recovery. The Watsonville Enterprise Zone, which is set to expire in April, is credited with bringing many businesses and good jobs to move to and stay in Watsonville. The city cannot afford to lose another economic development tool.

“I agree with Governor Brown that our education system should be on the forefront of our local government needs,” said Montesino. “I’ve seen what the cutbacks in recent years mean to students, teachers, and parents. I’ll be watching the budget discussion closely to make sure Assemblymember Alejo knows what the proposals mean to those of us at the local level.”

Reyes is a Salinas mortgage and real estate broker whose company has been impacted economically due to the slow housing market. Bringing jobs to the Salinas Valley will have a multiplier effect to spur the economy and help his business.

“I was happy to hear about the Governor’s new office of business development called GO-BIZ,” said Reyes. “It’s very important to me and other business owners that our Chief Executive has advisors with real business experience in his office. I’m hopeful that it translates into real economic development measures.”

Luis Alejo represents the 28th District in the California State Assembly, which consists of San Benito County, the Salinas Valley, North Monterey County, South Santa Clara County and the city of Watsonville.

Thursday, January 12, 2012 (10:25 am) by Max Shenker

Sacramento Enterprise Zone Received Final Designation

HCD is on a roll. Fast on the heels of new final designations for Anaheim and Sequoia Valley, the new Sacramento Enterprise Zone (which also includes the City of Rancho Cordova) has now received its final designation.

This leaves five more conditional zones for HCD to complete by April.

Tuesday, January 10, 2012 (2:21 pm) by Max Shenker

BREAKING NEWS: Anaheim and Sequoia Valley Receive Final Enterprise Zone Designation

On October 10, 2011 HCD issued a memo that they would be moving ahead with the final designation process for eight remaining zones that had previously received conditional designations. In that memo, a 180 day deadline was established for all of those zones to comply with all of their conditions or lose the opportunity to receive a final designation.

At today’s CAEZ board meeting in Sacramento a representative from HCD announced that the Anaheim EZ has received it’s final designation effective February 1, 2012 and the Sequoia Valley EZ in Tulare County received its final designation which will be effective retroactively to October 2010 (because of AB 1550).

The remaining six conditional zones are:

• Harbor Gateway Communities cities of Los Angeles and Huntington Park, and County of Los Angeles)
• Pittsburg (City of Pittsburg and County of Contra Costa)
• Sacramento (cities of Sacramento, West Sacramento, Rancho Cordova, and County of Sacramento)
• San Diego (cities of San Diego, Chula Vista, and National City)
• San Francisco (City and County of San Francisco)
• Santa Clarita Valley (City of Santa Clarita and County of Los Angeles)

Tuesday, January 10, 2012 (2:09 pm) by Max Shenker

HCD Announces Three New Listening Sessions

HCD has announce three more listening sessions in January to gather public feedback about possible regulatory changes to the Enterprise Zone program. The full announcement can be found here.

There will be meetings on January 18th in Sacramento, on January 23rd in Los Angeles, and on January 26th in Tulare.

Tuesday, January 10, 2012 (8:32 am) by Max Shenker

Mayors Advocate For Enterprise Zones

Mayors from around the State have been in Sacramento advocating for the Enterprise Zone Program in the wake of the loss of Redevelopment.

The Los Angeles Daily News, for example reports:

In Sacramento, Villaraigosa will also explore legislation to spur development in the absence of CRA/LA funds, said [Deputy Mayor Sarah] Sheahan.

“We are advocating for the tools L.A. will need to create jobs, such as state enterprise zones,” Sheahan said, cautioning that the mayor isn’t advocating for a “new CRA.”

In Watsonville, however, the situation is more urgent. The Mercury News explains:

WATSONVILLE – For nearly 15 years, Watsonville has dangled tax breaks as a lure to businesses looking for a new home or an incentive for existing companies to expand.

But in April, the city’s state-approved enterprise zone expires, leaving the city with few tools to stimulate the local economy at a time when more than one in five workers is out of a job, officials say.

“It’s very tough, especially on the back of losing redevelopment,” said Jan Davison, interim redevelopment and housing director. “We’re losing the only other form of economic development assistance we had. It’s a double whammy.”

The state Supreme Court ordered the elimination of redevelopment agencies statewide in a late December ruling. The City Council on Tuesday will take the first step toward dismantling the local agency by designating a successor to distribute assets and ensure obligations are met.

On Monday, city leaders advocated for help on the redevelopment front as well as for an extension of the enterprise zone during meetings with legislators in Sacramento.

Mayor Eduardo Montesino said leaders came away without a clear answer.

“We’re pushing everybody,” he said, “but it’s a fluid situation.”

California established enterprise zones in 1984 to spark economic investment in depressed areas of the state. Watsonville’s enterprise zone, one of 42 in the state, was established in 1997.
The program aims to jump-start private investment by providing tax credits for hiring and equipment purchases.

According to the California Association of Enterprise Zones, the program was responsible for creating or retaining more than 118,000 jobs in California in 2010.

Critics, however, say the program costs too much and merely shifts jobs from one region to another.

Last year, Gov. Jerry Brown proposed to eliminate the program, a move the state Department of Finance said would save $343 million in 2010-11 and $581 million in 2011-12.

The program was spared, but the state Department of Housing and Community Development, which oversees the program, is not currently accepting renewal applications.

Julie Lambert, director of finance and human resources for S. Martinelli & Co. in Watsonville, said her company uses the program and called it a “valuable” resource for business as well as the city. She said it could use some tinkering to help businesses plan better. For example, legislators have changed the timing on when tax credits on equipment purchases can be used from year to year.
But she said the enterprise zone does spur economic development.

“It’s very valuable for the city for attracting new business, whether they’re in startup mode or expansion mode,” Lambert said. “It’s another gold star on the evaluation sheet as they decide where to locate their business.”

Friday, January 6, 2012 (2:03 pm) by Max Shenker

Unfriendly to Business in Siskiyou County

Siskiyou County Enterprise Zone manager is one of the voices featured in this news story about the assault on business in that county:

Thursday, January 5, 2012 (4:11 pm) by Max Shenker

BREAKING: Budget Released Early – Proposes Enterprise Zone Reform Not Elimination

The Governor moved up the release of his 2012-2013 budget proposal from Jan. 10 to today. Under the heading “Supporting Job Creation,” the budget summary document says:

The resulting stability from a balanced budget will give businesses the certainty and the reassurance they need to invest in California. In addition, the Administration will propose legislation to reform the enterprise zone program and move to a mandatory single sales factor for apportioning multistate business income. Such changes will allow the state to afford investments in manufacturing, business incentives, and other tax relief.

Details of these reforms will follow in specific legislation.

Wednesday, January 4, 2012 (6:25 pm) by Max Shenker

Assembly Speaker John Perez Thinking About Enterprise Zones Again

In an interview with KQED’s John Myers, Assembly Speaker John Perez has raised the issue of revising the Enterprise Zone program again:

A second look will also no doubt be taken at the issue of local economic development in the wake of the California Supreme Court ruling that abolishes more than 400 local redevelopment agencies next month. Speaker Perez dismissed any notion that actual RDAs will be recreated by the Legislature; instead, he emphasized the need for ways to promote job creation and economic stimulus that doesn’t favor one region over another. And he suggested that the scrapping of RDAs could reignite his the effort of many Democrats to revise the state’s enterprise zone program.

Wednesday, January 4, 2012 (10:26 am) by Max Shenker

Manufacturer Moves From China to California Enterprise Zone

From far right Asssemblyman Victor M. Perez, Congresswoman Mary Bono Mack listen to Liat Tala, owner of Tala Enterprise garment manufacturer in Thousand Palms during the opening tour on January 3, 2012.

Assemblyman Manuel Pérez along with Congresswoman Mary Bono Mack were on hand for the opening of Tala Enterprises in the Coachella Valley Enterprise Zone. The story of Tala Enterprises, an apparel company, is extremely optimistic because of their decision to move manufacturing from China to California.

Here is the whole story from the Desert Sun:

Tala Enterprise, a clothing maker that idled its denim line in China to bring its production back to the United States, officially opened a new knitwear manufacturing plant in the Coachella Valley on Tuesday.

Owner Liat Tala said she plans to restart the company’s Kentucky Denim and Cain & Able clothing line at some point, and grow the workforce to 400 by the fifth year of operation.

For many, Tuesday’s ceremonial ribbon-cutting event didn’t only provide 31 new jobs in a region hard hit by unemployment.

The company’s presence could mark the beginning of a Coachella Valley fashion industry, said Rep. Mary Bono Mack, who chairs the House Subcommittee on Commerce, Manufacturing and Trade.

“I think Liat is the perfect person to spearhead this,” the Palm Springs Republican said at the event.

“It is time in America to recognize that we need to make ‘Made in America’ matter again,” she said, saying businesses are overtaxed, over-litigated and over-regulated.

“It is time to remove those impediments so our American businesses can flourish.”

As Bono Mack presented Tala with a flag that had flown over the Capitol, she said: “I’m going to count on you to bring American jobs home.”

Tala, joined by a business partner, Arad Shemirani, said this nation was built by business pioneers like her father who follow their dreams.

“One day, I asked where he gets his inspiration,” Tala said of her dad, an immigrant who came to America with $10 in his pocket, and over 20 years, produced several successful clothing lines such as Style-Up and Missy.

“He pointed to his chest, and told me, ‘Every day, I wake up with hope in my heart.’

“Today, my hope is to establish a facility that will one day make you proud,” Tala said.

Assemblyman V. Manuel Pérez noted that the plant’s opening in the Coachella Valley Enterprise Zone comes at a critical time when California has frequently been labeled as unfriendly to business.

The very existence of this new business illustrates the importance of the state’s enterprise zones, which provide companies extra benefits to open, the Coachella Democrat said.

Thermal resident Emmanuel Romero is among those who will work at the new plant.

“I’m going to be a seamstress, and work on the production line to make sure everything gets sewn properly,” the former custodian said, as he leaned against a table stacked with cut-cloth. He described his year-long job hunt as daunting, largely online-based and impersonal.

“I don’t mind starting out at the ground level,” he said. “That way, they can see what I’m made of.”

Wednesday, January 4, 2012 (10:03 am) by Max Shenker

FTB “Tax News” January 2012

Here is the January 2012 edition of the FTB’s “Tax News” newsletter.

Tuesday, January 3, 2012 (10:19 am) by Max Shenker

Still Waiting for Final Designations

Here is an interesting article in the Santa Clarita Valley Signal regarding the progress HCD is making on issuing final designations to the remaining 8 conditionally designated Enterprise Zones. The article deals with Santa Clarita specifically, but many of the issues could be extrapolated to other zones.

The article suggests that final designation will take until April to complete. The memo issued by HCD on October 10, 2011 stated a 180 day deadline with no exceptions – that clock will run out in April. The article also states that at least Santa Clarita will be made effective retroactively to Jan. 1, 2011 even though they received their conditional designation on Dec. 15, 2010.

Here is the entire article:

The deadline for transitioning the new local Enterprise Zone, by the California Department of Housing and Community Development, is April 10, said Jonas Peterson, president and CEO of the Santa Clarita Valley Economic Development Corp.

“This is great news in that the city, county and Economic Development Corp. finally have a timeline to work with for bringing our new Zone online,” Peterson said.

The valleywide zone was initially approved effective Jan. 1 of last year, but Gov. Jerry Brown called to eliminate the program early last year under his proposed budget plan in order to recoup additional revenues to address California budget deficits.

In an interview with Peterson this spring, he said the plan did not factor in the tax revenue, jobs or tax savings benefiting local communities that have enterprise zones.

The Housing and Community Development department, which administers the Enterprise Zone Program, has been holding “listening sessions” to gather feedback from communities as it considers regulatory changes.

“We’ve been invited to participate in upcoming listening sessions with the state,” Peterson said.

“Our goal is to participate, offer suggestions and work with the state to keep the EZ program as strong as possible.”

Assembly member Manuel Perez, D-Coachella, an advocate for local economic development and chairman of the Assembly
Committee on Jobs, Economic Development and the Economy also sponsored an enterprise zone reform bill, AB 231, to preserve the enterprise zone benefits through reforms.

“The EZ program is an effective tool for local economic development, and the reforms in AB 231 will help to better tell that story,” Perez said.

The key fact for SCV business owners to keep in mind, Peterson said, is when the local Enterprise Zone program receives final approval, the benefits will be retroactive to Jan. 1, 2011.

“This retroactive effective date means that companies in the zone will be able to qualify hiring and investing activity that occurred in all of 2011.”

While applications will not be processed until final approval of zone expansion is granted by the state, Peterson said companies should proceed with hiring and investing.

“When final approval does come, businesses in our unincorporated areas will be able to apply for benefits based on 2011 activity.”

The city of Santa Clarita already has an enterprise zone program, which received final approval July 1, 2007. The city’s program is active through June 30, 2022. The valleywide program will encompass companies previously not located within the city limits.

The Santa Clarita Valley pushed hard to save the Enterprise Zone program from elimination last year through a broad coalition with support from the city, county, EDC and chamber, Peterson said.

“Together, we had one of the strongest delegations in the state. If necessary, I’m confident we can duplicate that effort again this year.”

Last March, an informal coalition of enterprise zone advocates from the local business community, city of Santa Clarita, SCVEDC and SCV Chamber of Commerce met with 18 state legislators in Sacramento to explore ways to salvage the program.

Companies, organizations and community leaders submitted letters and made calls to legislators in support of the EZ program.

“Our elected state officials, including Assemblyman (Cameron) Smyth, Sen. (Sharon) Runner and Sen. (Tony) Strickland were all very supportive,” Peterson said.

In addition to visits to the state capital, and calls and letters to legislators, local companies Aerospace Dynamics International, Stay Green and AT&T also visited with government leaders in Sacramento in support of the program.

Company executives spoke of the economic benefits derived from the program and were able to cite specifics as to how many people they’ve hired and whom they had hired as a result of the program giving legislators a chance to hear from real employers.

Santa Clarita was identified by the Department of Housing and Community Development as having one of the best-run enterprise zones in the state, citing it as a model program.

Friday, December 30, 2011 (12:38 pm) by Max Shenker

WOTC Expires Tomorrow

Happy New Year. The federal Work Opportunity Tax Credit will expire tomorrow.

This will be the 6th time that Congress has allowed the credit to expire. In the past five times, the program has operated in hiatus and has been renewed retroactively. Experts currently expect that this will be the case again this year. The first opportunity for an extension through 2012 will come early in the new year as Congress scrambles to extend the payroll tax cut beyond the two-month deal reached earlier this month.

In the mean time, employers will still need to submit their WOTC paperwork on time in order to receive certifications once the program is renewed. The program will also remain in effect during the hiatus for the new veteran WOTC categories passed by Congress in November, which were approved through 12/31/2012.

Be sure to visit WOTCMeansJobs.org to write your representatives and urge them to extend WOTC in a timely manner.

Thursday, December 29, 2011 (11:37 am) by Max Shenker

CA Supreme Court Rules RDA Elimination Legal

The California Supreme Court has ruled today that the elimination of Redevelopment Agencies by the Legislature was legal.

Here is a PDF of the Court’s decision.

The decision is a mixed bag in terms of its implications for the Enterprise Zone program. On the one hand, there was $1.7 billion dollars of budget deficit solutions riding on the elimination. To the extent that the budget deficit is smaller, there is less pressure to attempt elimination of Enterprise Zones. On the other hand, had the Court ruled that the elimination was illegal, it would have bolstered the argument that elimination of the EZs would also be illegal. Furthermore, many jurisdictions use their Redevelopment agency funding to fund the operation of their zone programs as well.

The following is the Sacramento Bee article immediately following the Court decision:

In a significant budget win for Gov. Jerry Brown and lawmakers, the California Supreme Court ruled Thursday the state can eliminate the local agencies that subsidize construction in blighted areas.

The decision strengthens the state’s ability to take $1.7 billion from redevelopment agencies for the current budget. It also provides leverage for state leaders to continue using redevelopment property tax dollars to balance future budgets.

The court ruled invalid a second bill that would have reconstituted redevelopment agencies in a different form.

The court called the elimination of redevelopment “a proper exercise of the legislative power vested in the Legislature by the state Constitution.”

State leaders axed redevelopment agencies in the June as they closed a deficit once projected at $26 billion. As part of the plan, cities could reorganize the agencies only if they agreed to use their money to pay for state obligations this fiscal year and make smaller contributions in future years.

Cities and redevelopment agencies sued the state in August to block the plan, saying it was akin to the state demanding a “ransom payment.” Critics in the Legislature said the state could ill afford to subsidize private developers, pointing to venues such as “Dive Bar,” a watering hole steps from the Capitol that features a mermaid tank.

The state’s high court agreed to fast-track the case. By issuing a decision today, the court gave state leaders guidance before Brown proposes his 2012-13 budget in less than two weeks.

Friday, December 23, 2011 (8:49 am) by Max Shenker

Enterprise Zone Played a Role in Saving Manufacturing Jobs

According to this article in the Desert Sun, the recent turnaround in CareFusion’s decision to cancel plans to move its California manufacturing jobs to Minnesota, was due partly to the company gaining a better understanding of tax incentives available – including the Enterprise Zone:

- For months, CareFusion’s departure appeared to be a done deal.

The manufacturing company’s executives had announced in July they were moving production to a sister plant in Plymouth, Minn.

The plans were firm, a point they stressed in meetings with representatives from Palm Springs and the Coachella Valley Economic Partnership. They weren’t interested in hearing about any incentives.

Their position left local officials resigned to the fact that the Coachella Valley would lose one of its largest employers, where 270 skilled workers make sophisticated ventilators and diagnostic devices for acute respiratory care.

But by October, there were signs the company might be softening its position. On Nov. 7, an email sent by a rank-and-file CareFusion employee to Palm Springs City Hall suggested the company’s management was rethinking the consolidation.

“We found out there might be an opening and we took it,” Palm Springs Mayor Steve Pougnet said.

“We just went into overdrive.”

The sales pitch that followed resulted in a rare corporate change of heart, and it provides officials with a rare success story to tout in a state frequently criticized for not doing enough to retain manufacturing businesses.

On Wednesday, San Diego-based CareFusion announced it would keep the Palm Springs plant, which was first established under a different company in 1965.

“We’ve made the commitment that we are going to make every effort to improve our business environment so they can thrive here,” said Tom Flavin, CVEP president and CEO.

“Now we’ve got to deliver that competitive business environment so we can have them here for the long haul.”

CareFusion executives didn’t divulge exactly what made them change their plan to shut down the local operation by the end of 2012.

But it is clear there were internal considerations. A spokeswoman said there were growing concerns about how the move to Minnesota would affect business at a time when demand for their products is increasing.

“When we took another look at the plan, there had been several changes through the year to the industry that it just made sense to remain in Palm Springs,” CareFusion spokeswoman Suzanne Hatcher said Wednesday.

“You don’t want to shift manufacturing lines during that time to ensure there are no disruptions to customers.”

Externally, the company was getting the hard-sell from Coachella Valley officials in an all-out push that included a representative from the governor’s office.

For the last six weeks, city and valley economic development experts had been in regular communications with CareFusion, including meetings, teleconferences and email chains that involved the governor’s office and Southern California Edison.

They soon discovered CareFusion wasn’t taking advantage of all the tax benefits that California could offer them.

No one has provided a price tag for the incentives that CareFusion would get by staying.

But local officials confirmed the company would likely see lower utility costs after Edison does an energy efficiency evaluation of the plant, something that hadn’t previously been done.

Numbers are also being crunched at the savings CareFusion would see from the city’s foreign trade zone, or by swapping credits it gets by having its San Diego headquarters in an enterprise zone.

“We’re going to provide whatever we can provide to any company,” said Wesley Ahlgren, CVEP’s chief operating officer.

“There’s no sort of magic bag of tricks that the governor’s office, or an assemblyman or CVEP can reach into. We can throw stuff out there. But without knowing the specifics of their business model, it is hard.”

There were plenty of reasons valley officials pulled out all the stops.

Experts say the health care industry is key to boosting and diversifying the valley’s economy, and CareFusion has long been involved in CVEP efforts.

There were also a lot of well-paying jobs on the line:

According to the California Manufacturers & Technology Association, an average manufacturing job in California pays $69,000.

Specialty workers – like those at CareFusion – typically get paid more, though the company has not said what its workers make.

Since CareFusion announced its plans in July, those same workers had made it clear to the city that they were trying to avoid the unemployment line.

“There was a bunch of employees who came to the city to take another run to save them,” said John Raymond, Palm Springs’ community and economic development director.

Valley leaders didn’t learn until Wednesday that their sales pitch had worked.

Pougnet said he got a phone call with the good news in the morning.

But others didn’t know until they gathered for what was supposed to be another negotiating meeting with CareFusion executives at the Rabobank Regional Business Center in Palm Springs.

Officials had just launched into their presentation when CareFusion representatives interrupted: We’re staying.

Ahlgren said his first thought was that “300 workers are going to go home and tell their families they’re staying here.”

“They should thank themselves,” he said in touting the employee’s efforts.

“They engaged their management. They stayed on the job and they stayed positive. If I get told I’m getting laid off – that it may be six months, it may be 18 months – I may be looking for another job. They stuck with it.”

Monday, December 19, 2011 (10:17 am) by Max Shenker

Gov Brown Celebrates New Factory in San Diego Enterprise Zone

According to this story in the San Diego North County Times, Governor Brown was on hand together with San Diego Mayor Jerry Sanders for the dedication of a solar generator factory which will bring an estimated 450 new jobs to the Enterprise Zone.

According to the story:

The dedication ceremony marked the company’s purchase of a 165,000-square-foot building from Sony Electronics in Rancho Bernardo to build a $150 million factory. Auberton-Herve said the factory would employ 450 people and inject $23 million in sales taxes into the local economy. The factory should be producing the company’s concentrated solar photovoltaic generators by the end of 2012.

“It took a lot of collaboration and a lot of intelligence to get it done,” Brown said of the factory. “That hopefully keeps the dumb ideas to a minimum.”

A string of San Diego power players joined Brown for the ceremony, including San Diego Mayor Jerry Sanders, Assemblyman and mayoral candidate Nathan Fletcher, California Public Utilities Commissioner Timothy Simon, District Attorney and mayoral candidate Bonnie Dumanis.

The factory came to San Diego as part of a collaborative effort largely spearheaded by Sanders, according to many people involved with the project. San Diego Gas & Electric Co. funneled ratepayer money to the project by agreeing to buy power from a 150-megawatt solar power plant near El Centro that will use Soitec’s technology, and agreeing to five smaller deals with Soitec.

When SDG&E first began discussing the possibility of the larger plant, the utility insisted the company help create jobs in the area, said SDG&E CEO Jessie Knight. By law, all California utilities must buy a third of their power from renewable resources by 2020. SDG&E has contracted for more than 1,000 megawatts of solar power in the last year.

“SDG&E can be a platform for opportunity for economic development in the region,” Knight said.

The company does not have any federal loans or loan guarantees, setting it apart from renowned solar bust Solyndra, a Soitec spokeswoman said. Solyndra, a San Francisco Bay Area solar panel maker, went belly up despite receiving a $535 million loan from the Department of Energy. Soitec is getting the benefit of being in a California Enterprise Zone, which gives it some tax incentives, Sanders said.

“Soitec’s location in San Diego is an example of how San Diego’s cooperative approach can be successful,” Sanders said.

The Governor’s website has a press-release about the event which does not mention the Enterprise Zone, but rather says, “Soitec has not relied on any government funding for this project.”

UPDATE: An official from the City of San Diego contacted me to clarify that the news article was not entirely correct. San Diego is currently working on an expansion to their Enterprise Zone and the new Soitec facility is being built in the planned expansion area. Mayor Sanders meant to indicate that by the time Soitec opens for business, they should be in an Enterprise Zone.