Support Mounts for Pacoima to Be Named an ‘Enterprise Zone’

About 30 community leaders and politicians said Thursday that there is Valleywide support for the selection of Pacoima as a state “enterprise zone,” which would offer government incentives to businesses to locate there.

The economically depressed section of the San Fernando Valley is one of 20 finalists competing for 10 designations statewide.

“This is the first time the business people from the entire Valley have pitched their support behind Pacoima,” Assemblyman Richard Katz (D-Sepulveda), who represents the area, said at a press conference. He said community support “plays the biggest role now” in whether Pacoima receives the designation.

In Los Angeles County, Pasadena, Central Los Angeles and Watts also are among the 20 finalists.

A ‘Classic Case’

State Sen. Alan Robbins (D-Van Nuys) said Pacoima is a “classic case” of a community that could benefit from an enterprise zone because of its high unemployment--he said it is as high as 20%--and its inability to retain and attract business.

Robbins predicted that the program would attract up to 3,000 jobs to the area and, in several years, lower the unemployment rate to 10%.

In July, Pacoima was chosen from a pool of 57 communities as a finalist in the application process. The state Department of Commerce will announce its selection in February.

An enterprise zone is designed to revitalize depressed communities by offering government incentives, such as tax breaks and a streamlined regulation process, to lure private business and industry into otherwise undesirable areas.

Two bills authorizing the enterprise zones were signed into law by Gov. George Deukmejian in March, 1984.

Employer Tax Credits

Since then, Pacoima has been vying for the designation, which local politicians and many community and business leaders believe would be the turning point for a community that has only recently experienced sporadic economic development, at best.

State incentives include employer tax credits of up to 50% of wages paid to disadvantaged individuals hired to work in the enterprise zone and a 5% income tax credit to employees.

Firms locating in the area would receive priority in state and city programs for business loans and development bonds.

Also, if Pacoima is selected, Los Angeles plans to ease the building and zoning permit process for businesses in Pacoima through a one-stop consultation center.

Broad Support

Among those showing support at the press conference were representatives from several Valley chambers of commerce, Pacoima businessmen and members of a specially formed 20-member citizens advisory committee, with members as diverse as a nun and a police captain.

Officials said they will now launch a letter-writing campaign and intensify lobbying efforts with the state Department of Commerce.

The city’s Community Development Department prepared the 47-page enterprise-zone application.