Simi Officials Offer Bonus to Lure Valley Company

Facing tough economic times and growing competition from other cities trying to increase their tax bases, Simi Valley officials have offered a $175,000 cash bonus to entice a San Fernando Valley medical supply firm to move to the city.

On Tuesday, however, city officials said they were still uncertain whether the bonus, the city’s first such offer, will be enough to persuade Guardian Products, a medical supplies manufacturer, to move its corporate offices, plant and 470 jobs to Simi Valley.

The money is less than half of the $400,000 that Guardian Products, which also is weighing offers from cities outside of California, requested from the city’s redevelopment agency Monday night.

“We gave them as much as we thought we could give,” Mayor Greg Stratton said. “We hope it’s enough.”

The city’s redevelopment agency in the past has lured new businesses by building roads, water tanks and other improvements that cost more than the $175,000 offered to Guardian. But Simi Valley officials said cash bonuses are becoming the more common bait in a highly competitive business climate.

“If it’s not the wave of the future, it’s certainly going to be the trend in Southern California for some period of time,” Councilman Michael W. Piper said.

Stratton agreed. “When Simi Valley was relatively inexpensive landwise, that was enough of an inducement,” he said. “Now, we find we need a little more.

“The competition is getting stiffer. Somebody told me the state of Colorado is offering a thousand bucks a job to companies that relocate. There is a recession. So I do think it requires a little extra ‘oomph’ to get people to relocate. If times are tough and the competition keeps up, we’re going to have to keep doing it.”

Guardian, now located in Arleta and North Hollywood, is a leading maker of products for the disabled and elderly, including crutches, walking aids, wheelchairs and patient-lifting equipment. The firm is considering moving to Peppertree South Business Park on the east side of Tapo Canyon Road south of the Arroyo Simi.

Simi Valley officials say Guardian is a non-polluting business that would bring new jobs, new shoppers and possibly new home buyers. As the first major tenant in a new industrial park, it could attract other new employers to the site, city officials said.

Simi Valley could not afford the full $400,000 that Guardian requested because of existing redevelopment debts.

The $175,000 bonus would come from the redevelopment agency’s share of higher tax revenues collected as the industrial property becomes more valuable. City officials said the money would help Guardian pay many of its planning, building permit, sewer connection and water connection fees--together expected to cost $201,773.

Guardian President Robert B. Senn said Tuesday that he was still reviewing the city’s offer and had no comment on it. He said no decision had been made.

Barry Rosengrant, chairman of Metrospace Corp., a relocation consultant hired by Guardian, said financial aid was only one of the factors being weighed by Guardian.