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.

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.”

Assemblyman Bill Berryhill was a guest speaker at an event held at Stockton Steel as reported in the Central Valley Business Journal:

On September 26, Stockton Steel welcomed 250 guests to the company’s main office and 40 acre yard filled with steel to celebrate Steel Day.

“Steel Day’s been in effect for three years and Stockton Steel’s participated in all of them,” said the company’s President Doug Griffin. “We’ve been here in Stockton for forty years and I’ve been with the company for thirty-two of them.”

Stockton Steel is part of the Herrick Corporation which also owns San Bernardino Steel, has an office in San Ramon and a southern California sales office.

The Herrick Corporation is currently celebrating its own landmark: the anniversary of 90 years in business.

The Stockton Steel location also has a massive, 165,000 square foot roofed facility where, said Griffin, “most of the work is done” by the 170 steel work employees. The company also employs 60 in the business office.

Stockton’s facility also has more than 50,000 square feet of outside fabrication space where automated equipment saw, cut, drill, burn and camber materials before they enter the shop which can produce 40,000 to 50,000 tons of fabricated structural steel annually.

Between the two locations Herrick has fabricated and erected more than two-million tons of steel.

“We take pride in the number of individuals we’ve hired, trained and promoted from the local community,” Griffin said. “Stockton Steel has many long-term people working here.”

“They are focused on hiring locally and purchasing their products locally,” said Stockton Mayor Ann Johnston. “What a great model Stockton Steel is for all Stockton businesses. We are fortunate to have Stockton Steel in our community.”

Stockton Steel fabricates steel and erects buildings with structural steel. Among the company’s projects are San Francisco International Airport’s International Terminal, the recently completed terminal at Sacramento International and a huge terminal project at Los Angeles International.

“The majority of our work is airport terminals and hospitals,” Griffin said.

Both the Stockton plant and the San Bernardino facility operate within California Enterprise Zones, about which guest speaker Assemblyman Bill Berryhill, said, “Enterprise zones are one of the last keys for job creation in the Valley and they have been effective in reducing poverty levels and increasing income and wages.”

He said Herrick’s Stockton Steel and the San Joaquin Enterprise Zone “have been a great example of how beneficial this program can be. Herrick Steel has added 78 employees in just the last year due in large part to the benefits it’s received form the EZ program.”

Berryhill noted that such examples of enterprise zone success need to be shown to policy makers in Sacramento as a demonstration of “programs working the way they were intended.”

Despite its statewide and national impact on the steel construction industry, Johnston said, “Stockton Steel may be on of the most under-celebrated economic engines in our community. It was great to be part of their celebration and to learn more about the steel business.”

She was particularly impressed by the company’s “expanding operations during some of the most challenging and difficult times in our history, providing products to local construction projects.”

One of those local construction projects is the $900 million, 1.2 million square foot inmate medical facility southeast of Stockton that will provide diagnostic care and treatment for inmates needing physical or mental healthcare.

The facility’s construction was mandated by a federal court order that mandated the state improve health treatments and overcrowding in prisons.

A major element in subsequent agreements is that local contractors and suppliers be used as much as possible, an element that the Greater Stockton Chamber of Commerce and other local groups and interested parties demanded and fought furiously to be included.

“The city, county and the chamber worked together to have as many local venders working on this as possible,” said Doug Wilhoit, Executive Manger of the Chamber. “It was a very positive outcome resulting from a great deal of hard work.” The venders will be selected from within a 50 mile radius of Stockton and while this isn’t exactly local, businesses in the immediate area will receive consideration and can bid for the work.

A California based apparel company is moving manufacturing back to California from China because of the Enterprise Zone. Here is the story from the Desert Sun:

Liat Tala is the picture of success.

Her company, Kentucky Denim, has sold a premium men’s denim clothing line it makes in China to more than 300 stores in the United States, Japan, Canada and the United Kingdom for six years.

“We’ve done well for ourselves,” the West Hollywood executive said.

“But it’s time to take the American Dream back to the United States.”

On Wednesday, Tala told the Coachella Valley Economic Partnership executive board she’s found a place to start anew: A 30,000-square-foot warehouse in Thousand Palms.

The venture, located in the Enterprise Zone, will open in January with 31 employees to produce a line of knitwear — tanks, tops, T-shirts, leggings and yoga pants — for men and women.

Called Tala Corp., the plan is to grow the workforce to 400 in the fifth year of operations. Ultimately, Tala wants to relocate the denim manufacturing line to the United States.

“Instead of importing from China, we’d like to export from here,” she said.

Costs to produce goods in China are rising. Bureaucratic tape is not easy to unwind.

“It became a kind of oxymoron,” she said. “Here we were throwing our dollars into a country when this country needs it more.”

Nestled in the iHUB for now, Tala credited tax incentives and team spirit — from the broker and Enterprise Zone officials to CVEP and county officials — for the decision to locate in a rural area where jobs are badly needed.

Tala declined to release the capital investment plan, but described it as aggressive. Besides the warehouse, a flagship store may open in Blythe.

Mark Weber, manager of the Coachella Valley Enteprise Zone, said the team has worked with Tala since July. “It’s a win for the Coachella Valley,” he said. “It’ll help put some people back to work and, hopefully, regain momentum.

“To bring back manufacturing to the U.S., and California specifically, is pretty amazing,” Weber added.

Besides Tala Corp., Electric Vehicle Enterprises made a presentation.

Thomas Flavin, chief executive of CVEP, also announced that Wells Fargo Bank will provide $30,000 in seed money to help create a CVEP office in the east valley.

The City of Oakland published the following in a press release:

The Oakland Redevelopment Agency has announced that two new auto dealerships will be coming soon to Broadway Auto Row. Nissan of Oakland will open a 20,000-square-foot facility at 2855 Broadway and Infiniti of Oakland will open a 40,000-square-foot-facility at 2735 Broadway. The new dealerships will feature Infiniti’s luxury cars and SUVs, Nissan’s full line of new cars and trucks including the fully electric Leaf, used vehicle sales, parts and repair service.

The new ventures, lead by seasoned auto dealer Mike Murphy, represent a significant investment and belief in Oakland. Murphy’s purchase of one building and a decade-long lease on the other demonstrates his commitment to and belief in Broadway Auto Row. Murphy has owned neighboring Oakland Volkswagen for more than a decade. “Given the continued success of our Volkswagen dealership, we felt this was an excellent opportunity to bring the Nissan and Infiniti brands back and attract more potential car buyers to Oakland,” said Murphy.

Nissan of Oakland and Infiniti of Oakland expect to hire up to 60 employees in its first few months and be fully staffed with up to 85 employees by March 2012. As with other business attraction efforts, the City of Oakland’s Enterprise Zone (EZ) staff is working with Murphy to ensure both dealerships can enjoy the hiring tax credits and other benefits offered through the EZ program.

“The new Nissan and Infiniti dealerships are welcome additions to Broadway Auto Row,” said Gregory Hunter, Deputy Director in the Community and Economic Development Agency. “Oakland residents will have more car buying options that will keep their dollars in our community.”

In addition to providing employment opportunities for Oakland residents, the new dealerships are expected to generate $200,000 in sales tax and business tax revenue for the City of Oakland in 2012. Sales tax revenue flows into the City’s General Fund which supports recreation programs, libraries, fire and police services and other vital City services. In 2010, new and used motor vehicle dealers generated more than $3 million in sales tax revenue for the City of Oakland.

Nissan of Oakland and Infiniti of Oakland are the latest dealerships to open along Oakland’s venerable Broadway Auto Row following the opening of Bay City Chevrolet earlier this year. The return of the Nissan, Infiniti and Chevrolet brands corresponds to renewed growth in car sales. Automotive News reports U.S. light vehicle sales posted an 8 percent gain in August 2011.

According to the Imperial Valley Press, the Imperial County Board of Supervisors voted to expand their Enterprise Zone in order to help a golf course add 100 new jobs:

The Calexico-County Enterprise Zone that gives state tax incentives to businesses located in such areas was expanded Tuesday by the Imperial County Board of Supervisors to include the Barbara Worth Golf Resort.

For years the resort has gone into disrepair, and its new owners, Imperial Palms Resort LLC., expect to use the tax credits the enterprise zone provides to maximize the investment into the resort, said CEO Darryl Readshaw.

It is unclear how much the credits will impact the investment, Readshaw said, but the county will benefit with about 70 to 100 new jobs.

According to the Contra Costa Times:

City leaders are hoping to lure a planned next-generation Boeing 737 assembly plant to Long Beach, a move that would reinvigorate the community’s long history of aerospace production.

Boeing has announced it may move its existing plant in Renton, Wash. – near Seattle – as it develops a new, more fuel-efficient engine and upgrades for the popular jet.

The new version, expected to debut in 2017, is being called the 737 MAX.

The City Council voted unanimously Tuesday to marshal city resources to lure the plant here, and Mayor Bob Foster said that he’s been in contact with an unnamed Boeing executive about the proposal.

“I told the executive at Boeing that this council and this city would do everything in its power” to bring this plant here, Foster said.

He cited city-sponsored business enterprise zones, which can offer tax breaks and other incentives, and other measures that could smooth the way.

“Whatever we do, we do not want to present a disorganized picture here,” when talking with Boeing executives, he said.

The United Aerospace Workers Local 148, which represents about 1,300 Boeing workers in Long Beach, said they would do whatever is needed to further the effort.

“We have the land, we have the talent, and we want to do everything we can to bring those jobs here,” said George Burden, financial secretary for UAW Local 148.

The city’s last remaining major airplane production facility, Boeing’s C-17 plant, employs roughly 6,000 people in production, marketing, engineering, maintenance and other jobs.

That’s down from the tens of thousands employed during the heyday of aviation here from World War II into the 1980 s, when Douglas Aircraft, now Boeing, built military planes, DC-8 s, DC-9 s and the McDonnell Douglas MD-11 at plants surrounding Long Beach Airport.

Still, Long Beach has a possible 737 assembly site at its former 717 plant, which shuttered in 2006. The 79-acre property includes an estimated 1 million square feet of space and has been mentioned as a possible site for a film studio or automaker.

Boeing’s 737, first introduced in 1968, has been assembled in Renton since the beginning. The jet’s engine, fuselage and many parts are built at plants across the country before being shipped to Renton for final assembly, similar to the way Boeing builds its C-17 cargo jet in Long Beach.

Despite the effort, however, Long Beach officials may have joined the process a little too late.

In June, before any final decision was made on the 737 MAX, Washington Gov. Christine Gregoire launched a campaign to ensure 737 production remains in that state.

The campaign, known as “Project Pegasus,” has assembled a coalition of labor, business and community organizations from across the state to support future 737 production in Renton.

“Washington state has always been the home of the 737, and I’m committed to doing everything in my power to ensure it stays that way,” Gregoire said in a statement.

As for Boeing, they’ve made no announcements about the future location of the 737 assembly plant or if engine or fuselage production will relocate.
The current 737 jet engine is one of the most popular in commercial aviation and can be outfitted for Airbus’ A320 jets.

But Boeing is keeping quiet other than to say a relocation is possible.

“No decision on the production location of the 737 MAX has been made at this stage,” Karen Crabtree, a Boeing spokeswoman, said Tuesday. “We will follow our established processes regarding production decisions, evaluating what makes the most sense for our customers and for the corporation.”

Crabtree said, however, that the current assembly plant in Renton has an “experienced workforce and existing infrastructure” that will be in consideration in the assessment process.

“We anticipate having more clarity on where to build this new variant in six to eight months,” she said.

Boeing CEO Jim McNerney also indicated in a recent conference call that the current 737 assembly line will require major upgrades to accommodate increased production rates.

“There would be major investments (needed) in Renton beyond the currently planned production rates,” McNerney said. “Until we sort that all out, we can’t confirm where we’re going to put it precisely.”

Boeing plans to step up production of its existing 737 model from 31.5 per month now to 42 per month by 2014. By the latter half of the decade, production is expected to reach 50 to 60 per month, said Crabtree.

According to this article in in TehachapiNews.com by a Kern County Supervisor:

At my request, the county is also fervently working to bring a much needed Enterprise Zone to East Kern. Enterprise Zones provide state tax incentives for job creation in economically challenged areas. Kern County is working closely with Antelope Valley officials to submit an Enterprise Zone application that will form a zone covering Lancaster, Palmdale, and much of East Kern. We should know if we will be able to submit our application sometime in September. I believe that the East Kern/Antelope Valley Enterprise Zone is a prime candidate for acceptance by the state.

The following are Enterprise Zone related stories that have appeared over the last week or so:

CAEZ President Craig Johnson had an Op-Ed published in the Contra Costa Times where he discussed the demise of AB 1278 and said:

If legislators want to find a way to improve the state’s economy, attacking the Enterprise Zone program and it’s job-creating incentives, only diverts their attention from addressing the real impediments to turning around the state’s economic climate.

Speaking of AB 1278, the Mercury-News had a story about labor groups suing to keep VWR from relocating its business from Brisbane to Visalia.

The Chambers of Commerce in both Brawley and Calexico issued press releases praising Assemblyman Manuel Perez for stopping AB 1278.

Both San Bernardino and Los Angeles celebrated new businesses in their Enterprise Zones.

According to a press release:

The San Bernardino Valley Enterprise Zone (SBVEZ) is pleased to announce that Simpson Strong-Tie and Hayden Industrial Products have located to the zone. Both manufacturing companies cite the zone’s benefits and suitable industrial space as key factors in driving their expansion plans.

The two companies will bring a combined 240 jobs to the San Bernardino zone with additional hiring expected to occur.

The Los Angeles Daily News reports on another business expansion into Los Angeles’ Enterprise Zone that will enable the addition of 50 new jobs:

A major financial software company plans to move from Calabasas to Woodland Hills in April to take advantage of Los Angeles’ expanded enterprise zone, officials said Monday.

BlackLine Systems has leased 22,000 square feet in Warner Corporate Center, which is under construction at 21300 Victory Blvd.

Tax breaks and other benefits of the Los Angeles enterprise zone will save BlackLine about $350,000 annually for at least the next three years, said Mario Spanicciati, executive vice president of operations.

“It’s a good number,” he said, adding that the savings will help to fuel future growth.

BlackLine employs 75 people and plans to hire 50 more this year, 40 of whom will work in Woodland Hills, Spanicciati said.

BlackLine was founded in 2001, developing accounting and financial software for a variety of industries, including health care, consumer product and industrial goods.

It was recently listed among the “Hottest Technology Companies in Southern California” by tech-industry research firm Lead411, which also ranked BlackLine 126th on its nationwide list of the Technology 500.

The move is a win for Los Angeles, which frequently finds itself competing with neighboring cities for business.

“It’s been kind of refreshing from our perspective to have an outreach to us and help us figure out how to take advantage of some of the (enterprise zone) programs,” Spanicciati said.

Mayor Antonio R. Villaraigosa will formally announce the company’s plans during a press conference this afternoon.
“BlackLine Systems’ move to Los Angeles highlights the larger trend of businesses moving to our city to take advantage of our competitive business policies such as the State Enterprise Program and the Business Tax Holiday,” the mayor said in a statement.

There is an extensive article in Industry Week profiling the San Bernardino Enterprise Zone. The article specifically cites examples of manufacturing businesses that chose to locate in San Bernardino in large part because of the Enterprise Zone:

California’s San Bernardino County boasts a “fascinating history of manufacturing” as well as a “very strong blue-collar workforce,” notes Mary Jane Olhasso, administrator for the San Bernardino County Economic Development Agency.

Once home to a massive Kaiser Steel Corp. mill that supplied steel for U.S. ships during World War II, the county has leveraged its proximity to Los Angeles-the county begins about 30 miles east of downtown L.A.-and abundance of affordable commercial real estate to lure manufacturers and logistics providers over the past few decades.

But like many manufacturing-rich regions in the United States, the area has fallen on hard times in recent years.

“When consumer spending stopped, we screeched to a halt in growth and development,” Olhasso says.

In October 2006, the California Department of Housing and Development designated parts of the county as an enterprise zone, making several state tax incentives available to businesses. The state establishes enterprise zones to stimulate growth in economically distressed areas.

Since then, the county has been able to notch a number of wins in the manufacturing sector. In 2009, Isolatek International, a Stanhope, N.J.-based maker of passive fireproofing materials for the construction industry, opened a new 65,000-square-foot warehouse and manufacturing facility in the city of San Bernardino.

A company official said Isolatek picked San Bernardino because of its proximity to the company’s western markets as well as the hiring tax credits available through the enterprise zone.

“The enterprise zone allows companies to trim their operating costs, making them more competitive in the marketplace,” said Tom Lund, director of operations at Isolatek, in August 2009.

In 2010, Carthage, Mo.-based diversified manufacturer Leggett & Platt Inc. inked a deal to lease a distribution center in San Bernardino; and Glenwillow, Ohio-based Royal Appliance Manufacturing Co., which makes Royal, Hoover and Dirt Devil vacuum cleaners, signed a five-year lease for a 415,825-square-foot manufacturing facility in San Bernardino.

Both companies cited the enterprise-zone tax incentives as a major factor in their decision to come to San Bernardino County, says Wendy Clements, zone manage for the San Bernardino Valley Enterprise Zone.

Read the rest of the article here.

Regardless of how the budget debate unfolds, California communities still need to do the necessary work of attracting businesses. The San Joaquin Enterprise Zone is trying to use an expansion of its zone to keep jobs from leaving. From the Stockton Record:

Elected leaders throughout San Joaquin County in recent weeks have approved small expansions to the sprawling, 656-square-mile special zone that offers state tax credits to employers.

In Stockton, city leaders this month OK’d three small areas for inclusion in the county’s enterprise zone expansion, including a 63-acre cluster of north Stockton parcels south of Eight Mile Road.

Officials said at least a portion of that land is eyed by an undisclosed company considering whether to stay in Stockton or expand elsewhere. They hope the additional economic incentive – on top of a deep development fee reduction the city approved last summer – will keep Stockton in the running.

The Californian in Salinas Valley editorializes in favor of the proposed Enterprise Zone expansion:

Salinas, Greenfield and other south Monterey County cities lining up to take action are doing the right thing by approving expansion of the Salinas Valley Enterprise Zone.

By doing so, they are sending a message loudly and clearly that we welcome businesses to set up shop in our communities.

Expanding the enterprise zone to include the Castroville Industrial Park and the 70 businesses already operating there will add to the business-friendly climate already being established from Salinas to King City. Some of the Castroville employers include Granny Goose Foods Inc., Wiley Transfer & Storage, Pure Water and Ocean Mist Farms.

Following a collective thumbs-up from the participating cities, the zone expansion requires approval from the state.

The Salinas Valley Enterprise Zone was created in January 2009, one of 42 economically depressed regions statewide offering tax credits and other incentives to businesses that agree to operate locally. The local zone takes in Salinas, Gonzales, Soledad, Greenfield, King City and parts of unincorporated Monterey County.

The goal, of course, is job creation. The Salinas Valley has one of the highest unemployment rates in the state. So every opportunity to encourage more employers to relocate to this enterprise zone should be pursued.

As for bringing in Castroville’s industrial park, zone officials acknowledge that industrial businesses don’t produce a lot of revenue, per se, but they can be stable employers that hire a lot of people and tend to pay higher wages than retailers. And even if an industrial enterprise doesn’t settle in Salinas, it’s likely to include Salinas workers and those from other cities in the enterprise zone as part of its work force. Expanding the local enterprise zone to attract industrial employers represents a logical next step in the economic development playbook for Salinas and its neighbors.

The enterprise zone’s big picture shows that creating jobs is crucial to creating a vibrant community where neighborhoods and families can recover from the economic downturn, become self-sufficient, revitalized and then can flourish.

Business growth is vital to strengthening the local economy. If entrepreneurs like what they see in incentives for investment, small-business development and expansion and a trainable work force, they will come. Business growth generates revenue for public improvements that raise the quality of life in communities such as Salinas, where streets should be safe to walk, the air and water are clean, housing costs are stable and within reach, and social and public services are ample and available to all citizens. Business growth and the jobs it brings with it can help Salinas and its neighbors to be the kind of community that is a source of strength, pride and hope to their residents.

Welcome the expansion of the Salinas Valley Enterprise Zone and the potential for growth and prosperity it represents.

A pair of Enterprise Zone managers recently answered questions for local papers. Andy Myrick, manager of the Salinas Valley zone conducted an extensive interview in the Californian. And Wendy Clements from the San Bernardino zone was interviewed in The Sun.

The following are some highlights from Andy Myrick’s interview:

Q: Well, isn’t it true that some businesses have come to Salinas in part for the tax incentives offered by the enterprise zone?

A: Yes, Lowe’s was attracted. Green Vehicles was attracted. Many companies have expressed that the enterprise zone factors into their equations. I can tell you companies that have expressed that say they like the enterprise zone but I can’t tell you who has applied for voucher certificates.

Q: The cities in the enterprise zone are lining up to add Castroville. Is bigger necessarily better?

A: In the case of bringing in Castroville, yes. This particular expansion is focused on the industrial park. Industrial businesses don’t produce a lot of revenues because of the jurisdiction that they’re in. But what’s good about industrial businesses is that they hire a lot of people and they pay better wages. So maybe those businesses aren’t in Salinas, but they’re hiring people from Salinas, Gonzales, north county. So helping them out really does help the region. Including Castroville is a logical step.

Q: What else does an enterprise zone do?

A: It’s not just about economic development. It’s also about helping those communities that need the most help. Pebble Beach doesn’t need an enterprise zone. We need one in the Salinas Valley. Unemployment topped 40 percent in Chualar and 25 percent in the valley last winter. Understand what that does socially to a community. We’re at great depression levels right here in Salinas. That’s not acceptable. We need to find jobs for people and the government is not going to provide them.

And the following from Wendy Clement’s:

Q: What is the one incentive you’d like to highlight for businesses in light of today’s difficult economy?

A: The hiring tax credit. That’s the simplest one and the one that is the easiest thing to do. People aren’t hiring at a high scale, but usually you’re doing some hiring. This credit is retroactive to ’06. Those are some numbers that can be captured. It’s the most beneficial and lucrative and this is a five-year credit. Even if you’re not hiring right now and you’ve been in the enterprise zone since ’06, it’s worth looking back at the employees you’ve hired from ’06 and forward.

Q: The zone became designated as we were heading into an economic recession. What challenges has the zone faced since its creation?

A: Our challenge is there is not a lot of new development going on, or people looking to expand or come into the area. That is our challenge, the economy right now. We have seen new companies move in in the last year because of the enterprise zone: Royal Appliance, Leggett & Platt, Kohl’s e-commerce site, and Dollar Tree. So we are seeing some things happening, but our real challenge is people don’t understand the benefits of the program and consistently we’re trying to get out there and market.