The California Legislative Showdown : Measure to Speed Rebuilding of Riot Areas OKd : Recovery: Legislation would allow tax incentives for businesses that rebuild facilities and create jobs in hard-hit neighborhoods.

A bill designed to speed up the rebuilding of Los Angeles’ riot-torn neighborhoods resulting from the Rodney G. King verdicts was approved by the Assembly Tuesday and sent to Gov. Pete Wilson’s desk.

The 54-8 vote moved the legislation authored by Assemblywoman Marguerite Archie-Hudson (D-Los Angeles) to the governor for his expected signature.

The Senate previously approved the measure by a 27-2 vote.

Wilson favors creation of the five-year Los Angeles revitalization zone called for in the bill to give tax breaks to businesses that rebuild their facilities and create jobs for residents who live in the riot-torn neighborhoods.

State officials estimate the cost of the tax breaks could run as high as $150 million over the five years.

“We must rebuild Los Angeles or forever it will be a symbol of our inability to live together,” said Sen. Charles Calderon (D-Whittier), who handled the bill on the upper house floor.

Calderon called the measure a direct response to the Los Angeles riots and predicted that it would be the “only major bill to come out of the Legislature to attempt to rebuild the community.”

The Southern California lawmaker contended that the proposed legislation would not cost state taxpayers any money because an expanded economic base in the Los Angeles zone would generate increased state revenues.

The revitalization zone plan would have to be approved by the state Department of Commerce.

Tax incentives available to businesses would include an income tax credit for hiring construction workers who live in the zone to do the rebuilding work and a sales tax credit for funds paid out for building materials to replace or repair damaged structures. Additionally, banks and other businesses lending money within the zone would get a tax break on the net interest income from debt payments. Lenders also could carry forward net operating losses for up to 15 years.

State officials estimate that 1,053 structures, valued at $427 million, were destroyed or damaged in the city of Los Angeles in last spring’s riots. About 5,200 structures, valued at $735 million, were destroyed or damaged countywide.

An opponent of the Archie-Hudson bill, Sen. Becky Morgan (R-Los Altos), told her colleagues, “We are all sympathetic to Los Angeles, and would like to help, but I really think this bill goes too far.”

But Sen. Ralph Dills (D-Gardena) replied, “This bill will give jobs to the people who are living there, and bring money to the state from increased sales and income taxes.”

Last week, Assemblyman Curtis Tucker Jr. (D-Inglewood), faced with constituents’ suspicion of the Community Redevelopment Agency, dropped a similar bill. His bill would have granted CRA officials the authority to waive some of the usual requirements for redevelopment projects, including some citizen oversight powers. The Archie-Hudson bill has no connection with the CRA.

RELATED STORY: B3