Will the force be strong for business in Los Angeles?
That’s the hope of city officials, who are now considering setting up several “Jedi zones” throughout the city for business incentives.
For those still thinking about Luke Skywalker and lightsabers, Jedi in this case stands for Jobs and Economic Development Incentive; the acronym first surfaced in a motion two years ago from Councilman Paul Krekorian.
He wanted city staff to come up with a program for incentive zones that would include reduced business taxes, rebates, and expedited permitting for businesses that expand or hire within the zones and tax increment financing. The zones would serve as a partial replacement for the disbanded Community Redevelopment Agency.
Chief Legislative Analyst Sharon Tso last month issued a preliminary framework for setting up the zones, outlining the general criteria for neighborhoods that could be candidates for the areas and giving detail to the types of incentives that could be offered for businesses within them. Specifically, she said there should be a roster of basic citywide incentives – such as business tax breaks – supplemented by specialized incentives tailored to the types of industries in each zone.
On March 30, the City Council’s ad hoc committee on job creation approved Krekorian’s motion. City staff will now delve into even more research and then develop an actual Jedi zone incentive program.
It will likely take at least two years for the zones to come to reality; by that time, the next film in the space saga, “Star Wars: Episode VIII,” will have come and gone from theaters.
But, as the inimitable Yoda would say, “Patience you must have.”
Out of Gas
The California Air Resources Board’s new $366 million air pollution research and test facility is headed out of Los Angeles, taking 400 jobs with it.
The new facility, to be built in Riverside County, would consolidate the air board’s current motor vehicle air pollution research and test facilities in Southern California, the main one located in El Monte. Two bidders emerged: California Polytechnic University at Pomona and UC Riverside.
Air board staff recommended Cal Poly Pomona, citing its closer proximity to major air emission sites such as the ports of Los Angeles and Long Beach; oil refineries; rail yards; and the headquarters of the region’s principal air quality regulator, the South Coast Air Quality Management District. The staff report also notes that employees at the existing facilities would face dramatically longer commute times to Riverside, with some either forced to choose between relocating or quitting.
The Los Angeles County Business Federation, or BizFed, also lent its voice to Cal Poly Pomona’s bid.
“It keeps 400 skilled jobs in L.A. County and the accompanying economic development associated with these jobs (housing, child care, retail, etc.),” said Tracy Rafter, BizFed’s chief executive.
But on March 24, the air board voted 8-3 in favor of the UC Riverside bid. During the debate, air board Chairwoman Mary Nichols cited close cooperation between university and the Riverside Chamber of Commerce as a factor in the decision.
Whatever the case, the decision left BizFed’s Rafter disappointed.
“It’s interesting and unfortunate that Carb reacted so aggressively against AQMD for going against a staff recommendation, and now Carb is completely disregarding its own staff recommendation on Cal Poly Pomona,” she said.
Cut Rate?
Some welcome news may be in the offing for employers. The Workers’ Compensation Insurance Rating Bureau, a private organization funded by workers’ compensation insurance carriers, last week recommended a 5 percent midyear cut in the basic workers’ compensation premium rate to $2.30 per $100 of payroll.
While this rate is purely advisory, it sends a powerful signal to insurers about the trend lines for costs and premium charges.
In making the recommendation, the bureau’s governing board cited lower medical costs for workers’ comp claims, thanks in large part to a series of legislative reforms enacted earlier this decade.
But there’s a fly in the ointment: In the L.A. area, “cumulative trauma” cases – such as carpal tunnel and stress injuries – have been rising. The bureau said that as a result, employers in Los Angeles would likely see smaller rate cuts – if any reductions at all.
The board will make its formal rate filing recommendation to state Insurance Commissioner Dave Jones this week; he’s expected to take several weeks to make his recommendation for a rate cut for policies renewing on or after July 1.
Staff reporter Howard Fine can be reached at [email protected] or (323) 549-5225, ext. 227.
