The California Business, Transportation and Housing Agency's Department of Housing and Community Development issued the following press release:

Today Gov. Schwarzenegger announced the conditional designation of 23 enterprise zones throughout California, continuing his successful efforts to increase jobs, reduce poverty and build longterm economic stability. The Governor's economic policies have helped add more than 650,000 new jobs in California.

Building economic opportunities statewide Enterprise zones aid economically distressed areas by offering businesses substantial incentives if they locate or expand within a designated geographic area. Enterprise zones reward businesses that hire local workers, encourage entrepreneurship and diversify communities' economic base.

There are currently 42 zones in California the maximum allowed by state law and zone designations extend for either 15 or 20 years. Incentives include: * Hiring credits of $30,000 or more for qualified employees.

• Sales tax credits of $20 million per year for purchasing machinery and parts.
• Tax deductions and up-front expensing of certain property.
• Assistance for banks that give zone businesses loans.

Today's announcement follows a six-month application process to assess which zone applicants demonstrated the greatest need and potential. The new designations take the place of 23 zones expiring over the next several months. In order to finalize the conditional designations, local city and county governments must now complete environmental impact reports and economic development plans, then sign a memorandum of understanding with the Department of Housing and Community Development (HCD). To help ensure that economic zones meet hiring and performance measures, the State intends to audit zones annually. State law requires audits every five years.

The success of enterprise zones in spurring economic recovery is well documented. A report released by HCD in August 2006 shows that from 1990-2000, compared to the rest of California, enterprise zones on average experienced:

• Poverty rates 7.35 percent lower than the rest of the state
• Household incomes 7.1 percent higher
• Salary income 3.5 percent higher
• Median rents 2.3 percent higher

Assistance for every part of the state

The 23 new zones touch every major region of California:

• City of Arvin - City of Arvin
• Delano - City of Delano
• Fresno - City City of Fresno
• Fresno - County Cities of Fowler, Firebaugh, Kerman, Mendota, Orange Cove, Parlier, San Joaquin, Sanger, Selma, County of Fresno
• Merced - Cities of Los Banos, Atwater, Dos Palos, Gustine, Livingston, Merced, County of Merced

• North Sacramento - City of Sacramento, County of Sacramento
• Yuba Sutter - Cities of Marysville, Yuba City, Wheatland, Live Oak, Counties of Yuba and Sutter

• Calexico - City of Calexico, County of Imperial
• City of San Bernardino - Cities of San Bernardino and Colton, County of San Bernardino, Inland Valley Development Agency
• Coachella - Cities of Coachella and Indio, County of Riverside

• City of LA - Central/Hollywood City of Los Angeles, Hollywood, and Central City
• Compton-City of Compton
• Santa Clarita - City of Santa Clarita
• Long Beach - City of Long Beach
• Pasadena - City of Pasadena
• City of Southgate/Lynwood - Cities of Southgate and Lynwood

• San Diego - Cities of San Diego, Chula Vista, National City

• San Francisco - City and County of San Francisco
• San Jose - City of San Jose

• Shasta - Cities of Redding, Anderson, Shasta Lake, County of Shasta
• Eureka - City of Eureka, County of Humboldt
• Oroville - City of Oroville

For a copy of the Governor's press release, please click on the following link: http://gov.ca.gov/index.php?/press-release/4656/

For more information, please contact Jarrett Stewart at jstewart@kuhler.com.