"Enterprise zones are business and industry preserves that offer substantial tax breaks for businesses that locate in them."
California may not be interested in applications to establish an enterprise zone to replace the two that are expiring, but San Jacinto is not letting that stand in its way.
In fact, the city is moving ahead with a plan to assemble a consortium of communities in the southwest county area interested in having a part in the project – should the state decide to move ahead as Gov. Jerry Brown and legislators try to work out solutions to the budget deficit.
One of those solutions, in Brown's mind at least, is to not only add no enterprise zones, but get rid of them.
Enterprise zones are business and industry preserves that offer substantial tax breaks for businesses that locate in them.
Members of the San Jacinto City Council want such a zone located in this area to make attracting job-creating businesses in the valley and surrounding communities.
They have instructed Economic Development Director Sharon Paisley to work with the city's enterprise zone consultant, DGA Consulting, to develop a plan that will have the region ready to apply should movement resume on the state level on enterprise zones.
"Rather than waiting on the sidelines, our consultant, DGA Consulting, recommended that we utilize the down time and set the ball in motion to initiate the formation of a memorandum of understanding or forming a joint powers authority to develop and implement a multi-jurisdictional economic development strategy and management structure, which would be necessary to meet the requirements of an enterprise zone designation," said Paisley. "That way the structure would be established, or at least in process, if and when the enterprise zone requests for proposals are solicited," she said.
San Jacinto officials hope to bring Riverside County, Hemet, Menifee, and Perris into the project, and Paisley said she will be contacting elected officials in those agencies after the first of the year to gauge their interest in the San Jacinto plan.
The city has already been working for months with DGA Consultants to create a plan and encourage surrounding jurisdictions to participate.
Officials from Menifee, Perris, and Riverside County, which governs large portions of the valley, indicated a willingness to help pay for the feasibility study that would be required by the state if the application is ever filed, even if the source of the money is in doubt.
Riverside County offi cials said they would like to support the study if money from its redevelopment agency is available, a proposition in doubt because the fate of redevelopment agencies is in doubt. Brown has proposed eliminating them.
Expanding the number of jurisdictions involved in the application substantially strengthens it, DGA representatives told San Jacinto city offi cials in October.
The city applying on its own would stand little chance of success, said the consultant's representative.
In her staff report on the issue, Paisley said, "The consultants state that the original study area would not provide for a competitive application due to existing resources. In order to make the application more competitive, they recommended the city council consider expanding the boundaries." Since the current council was elected, several of its member have expressed a wish to overcome the poor economy by taking aggressive measures to bring economic activity into the valley.
Andrew Kotyuk in particular has pushed the enterprise zone plan, as well as the concept of making the community a tourist destination by developing what attractions may exist and creating others.
Councilman Steve Di Memmo opposed San Jacinto's participation in an enterprise zone, contending that several studies have found they do not create jobs.
DGA Consulting will summarize the reports cited by Di Memmo at a future meeting and to provide three studies each supporting the value of enterprise zones and opposing enterprise zones.
The other four members of the council supported the concept.
