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Los Angeles City Council Resolution Opposes Elimination of Enterprise Zone Program

The Los Angeles City Council passed a special resolution, the first of 2011, to oppose the elimination of the Enterprise Zone program. A copy of the resolution can be seen here. The Encino Patch newspaper reports on the initiative spearheaded by Councilman Greg Smith:

The Los Angeles City Council on Tuesday rejected Gov. Jerry Brown’s attempt to fill part of the $25-billion state budget hole by unanimously approving a resolution to preserve enterprise zones and redevelopment agencies in the Valley and other Los Angeles communities.

The council said that eliminating enterprise zones and redevelopment agencies, which allow for tax and hiring incentives, would be devastating to the economic recovery in Los Angeles and the state.

“We just fought a three-year battle to get an enterprise zone extended in the San Fernando Valley,” said Councilman Greig Smith, who represents District 12, which includes Encino, Chatsworth and Northridge.

The East Valley enterprise zone is located northeast of Encino, beginning at Saticoy Street. The zone is a geographical area designated by the State as being eligible for State Income Tax credits and other financial incentives.

Smith said when his business council meets it normally attracts 50 people, but when the subject of new enterprise zones is on the agenda 200 people will show up.

“It is important to ask our Legislative representatives in Sacramento to work … to keep enterprise zones alive,” Smith said.

Smith also said Los Angeles is leading the state in unemployment.

Tuesday’s resolution also affirms support for redevelopment agencies, which eradicate blight in communities and promote business growth.

In addition to the East Valley, Los Angeles has enterprise zones encompassing downtown, Los Angeles International Airport, Hollywood, Sylmar, Warner Center, Van Nuys, mid-City and Koreatown. They cover about half of the city, according to Councilman Richard Alarcon.

Councilwoman Janice Hahn added that enterprise zones give incentives for purchasing equipment so businesses can operate.

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