From the Imperial Valley Press:
Local businesses are getting a boost from growing enterprise zones — areas dedicated to economic development that offer a variety of tax incentives to participating companies.
“It’s to their advantage to be located in the zones,” said Diane Cason, the manager for the Imperial Valley Enterprise Zone.
Enterprise zones began in California in 1984 to stimulate local economies and create job opportunities, according to the state’s Web site.
The two zones in the Imperial Valley — of the 42 now in the state — have come and gone in different formats for a number of years. The most recent incarnations are the Imperial Valley Enterprise Zone, which covers Brawley and parts of Imperial, and the Calexico Enterprise Zone, which covers Calexico, the eastern port crossing and sections along Interstate 8.
Danny Fitzgerald, the manager for the Calexico Enterprise Zone, said since his zone was redesignated in April, he has focused on attracting businesses from south of the border.
“I’m working on building additional relationships with businesses in Mexicali,” Fitzgerald said in the hopes that some of those businesses might establish themselves in the United States. However, Fitzgerald said he could not elaborate as negotiations are still ongoing.
More than attracting new businesses, though, the zones also work to help existing businesses expand.
One of the major incentives is a voucher program that refunds half of an employee’s yearly salary for the first year the employee works at the business, Fitzgerald said, then decreases that refund by 10 percent per year until it’s gone. This gives businesses extra capital to invest back into their company or the community.
Cason said in the current economic climate, anything that can aid businesses is needed.
“This is the kind of tool that sells itself,” Cason said of the zones. Cason said that since the Imperial Valley’s Zone program started in 2006, 40 businesses have taken advantage of zone programs, including Prima Bella Produce and the Brawley Wal-Mart. The two businesses combined employ about 350 people.
“We’re definitely attracting businesses,” Cason said.
