‘Enterprise Zone’ Status Requested for Pacoima

The Los Angeles City Council on Wednesday asked the state to designate Pacoima as one of 19 economically depressed areas in California that can offer tax breaks to businesses in return for moving into the zones.

To be designated an “enterprise zone,” the northeast San Fernando Valley community must compete with more than 100 communities in the state. The state Department of Commerce is expected to make its decision within 45 days.

State legislation authorizing enterprise zones was approved last year. The legislation offers tax breaks and other incentives to businesses for locating in areas with high unemployment.

The application approved by the council Wednesday asks that all of Pacoima and four other areas of Los Angeles be designated enterprise zones. The other areas are Boyle Heights, the central city, Hollywood and Watts.

Zones Called ‘a Sham’

The application was approved unanimously, even though Councilman Dave Cunningham called the enterprise zones a “sham” whose tax advantages are insignificant. He said he voted for the application as a courtesy to his colleagues who want the enterprise zones in their districts.

The state law, among other things, gives businesses locating in enterprise zones tax credits for hiring low-income residents of the area.

Councilman Howard Finn, who represents Pacoima, said he welcomed anything that might create jobs.

Finn said the state designation could give Pacoima an advantage over other communities for designation as a federal zone, which would offer substantially greater tax benefits should it be established by Congress.