Introduction:
On November 3rd 2006, California Governor Arnold Schwarzenegger announced that the City of Compton was one of 23 communities to receive a State Enterprise Zone Program. The state awarded the Enterprise Zone designations on a competitive basis. Compton’s application ranked 8th of the 25 applications approved for a California Enterprise Zone.
Compton invested thousands of hours of staff time, creative energy and knowledge, and paid out thousands of dollars for consulting support and environmental studies to prepare the EZ application. When completed the City’s application consisted literally two telephone books of documents, tables, GIS maps and other documentations required by the state for the City to have a responsive application. The City believes that the investment in securing the designation and developing a Compton Enterprise Zone Program will generate significant returns in the form of:
- Business and industrial expansion and growth,
- New businesses and industry cluster attraction,
- Jobs and job opportunities for Compton residents ,and an
- Infusion of new private sector equity capital and financing for Compton businesses.
Enterprise Zone Description:
An Enterprise Zone is a geographical area in which companies are eligible to receive lucrative tax benefits (tax expense deductions, credits and etc.) and exclusive contracting point preferences when bidding on California procurement contracts. Enterprise employees with low-incomes may also receive a state tax deduction for working at an Enterprise Zone Business.
Compton Enterprise Zone Duration:
Compton’s Enterprise Zone program is a long-term partnership between the City of Compton and the Compton Business Community. The duration of Compton’s Enterprise Zone is fifteen (15) years.
Designation Date: August 1, 2007 - Expiration Date: July 31, 2022
Enterprise Zone Eligibility:
Businesses of all types and sizes located in a Compton Enterprise Zone Area are eligible to receive benefits. See the City’s EZ MAP below.
EZ tax incentives apply only to investments and business activities undertaken within the EZ after the zone receives final designation and before the designation expires.
Businesses (individuals, sole proprietors, corporations, estates, trusts, and partnerships) operating and investing within City Enterprise Zones are eligible for program benefits. However, final eligibility for employee hiring tax credits must be made by the City of Compton.
EZ Street Ranges, Targeted Employment Area (TEA), EZ Boundary Maps:
Targeted Employment Area (TEA) is an option to vouchering qualified employees for hiring credits. Eligibility is made on the basis of where the employees’ lives, verifying that the employee resides in a Compton TEA. Using the TEA allows less paperwork Resident/employees must live in designated low-income areas to qualify the Enterprise Zone employer for hiring credits.
Click-on the City of Compton’s TEA street ranges.
Compton EZ Boundary Maps:
Enterprise Zone California Benefits:
Enterprise Zones (EZ) were created to stimulate economic growth in the most economically distressed areas throughout the state; help attract, retain and expand business and industry; and create increased job opportunities for all Californians.
- Sales and use tax income credits for purchases of machinery and equipment.
- Employment tax credits for hiring employees.
- Lender interest deduction for loans made to EZ businesses.
- Net operating loss carry forward to future years.
- Priority bid preferences for EZ businesses bidding on state procurement contracts.
- Up-front accelerated expensing of equipment purchases.
Enterprise Zone Compton Incentives:
Compton makes available customized City incentives to companies locating in an EZ and provides significant benefits to the City economy. The extent and nature of the incentives will generally be proportioned to the positive economic and social impact in terms of job creation, improvement of the City’s tax base, reduction of blight influences, and etc. The City will assess the merit of each application, evaluating each request on a case by case basis. The final approval of some select incentive proposals may require the Compton City Council.
Compton Incentives--Enterprise Zone are:
Reductions of Fees for Enterprise Zone Businesses:
- Reduced Expedited Plan Check Fees
- Reduced Building Plan Check and Permit Fees: Reduced
- Planning Entitlement Permit Fee
- Reduced Business License Application Fee
Reductions of Administrative Processing Time for Permits and other Applications:
- Priority Plan Checks
- Priority Building Inspections
Incentives Related to Neighborhood Transformation Activities:
- Job Assessments, Outreach, Recruitment, and Training: Coordination of Local Schools, Colleges, and Other Training Providers with Enterprise Zone Employers
- Identification and Intake of individuals in Targeted Groups Facing Barriers to Employment
- Integration of Job Development Services with other Local Human Services
Other Incentives for Enterprise Zone Businesses:
- Infrastructure and Site Assembly Incentives Site Assembly
- Site Preparation/Clearance Assistance
- Infrastructure Design and Construction
- Seismic Rehabilitation: Write-Down of Land Costs
- Reduced Development Impact Fees
- Brownfield Remediation
Special Incentives for Businesses in the Targeted Clusters: Business Consultation and Training Incentives Business Consultation: Development Academy: Financing Incentives o Revolving Loan Fund: o Façade Grants:
Contacts:
Vladimir Jefferson
Senior Economic Development Specialist
City of Compton
Planning and Economic Development Department
Business Services Division
Compton Enterprise Zone Program
205 South Willowbrook Avenue
Compton, California 90220
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
310.605.6257
Roosevelt Peters
Economic Development Specialist
City of Compton
Planning and Economic Development Department
Business Services Division
Compton Enterprise Zone Program
205 South Willowbrook Avenue
Compton, California 90220
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310.761.1452
Rochelle Jones
Administration Technician
City of Compton
Planning and Economic Development Department
Business Services Division
Compton Enterprise Zone Program
205 South Willowbrook Avenue
Compton, California 90220
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310.761.1431
