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City Governments Responding to Enterprise Zone Potential Changes

Local governments are beginning to speak out regarding Governor Brown’s intention to shrink the Enterprise Zone program.

The mayor of the City of Desert Hot Springs sent this letter to HCD saying, “The City of Desert Hot Springs formally supports the positive benefits of the Enterprise Zone program in local communities and on a statewide economic level. The reform or elimination of the program would be detrimental to local economic development efforts.”

The Los Angeles City Council passed a resolution opposing changes to the program:

WHEREAS, during his State of the State address, Governor Jerry Brown proposed scaling back the Enterprise Zone Program by limiting the time available to apply for tax credits, remapping the zones, and reducing the amount of tax credits; and

WHEREAS, reducing or eliminating Enterprise Zone benefits will be devastating to thousands of Los Angeles businesses, increasing their cost of doing business, impacting their future growth plans, and potentially resulting injob losses; and

WHEREAS, in these tough economic times, the State should be looking for ways to promote the growth of business rather than saddling businesses with new costs;

NOW, THEREFORE, BE IT RESOLVED, with the concurrence ofthe Mayor, that by the adoption of this Resolution, the City of Los Angeles hereby includes in its 2013-2014 State Legislative Program OPPOSITION to any reductions, changes, or eliminations of the Enterprise Zone program.

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