Measures to Speed Rebuilding Signed : Riots aftermath: Wilson approves tax breaks for construction firms hiring residents of devastated neighborhoods.

Sitting at a desk amid the rubble of a South Los Angeles mini-mall destroyed during the riots, Gov. Pete Wilson signed into law Friday a series of measures aimed at speeding up the rebuilding process in riot-ravaged neighborhoods.

One law creates a special Los Angeles Revitalization Zone that will provide tax breaks for construction companies that hire residents of riot-affected areas. The incentives, approved by the Legislature in the final days of the state’s budget wrangling, apply to all areas of the county affected by the riots.

The issue of who participates in the rebuilding has been a sensitive one since the unrest, with some black residents of South Los Angeles interrupting construction work at sites where African-Americans were not represented. Led by Danny Bakewell of the Brotherhood Crusade, the shutdowns have angered workers as well as Latino community leaders who are concerned that the focus on black representation ignores their needs.

Assemblywoman Marguerite Archie-Hudson (D-Los Angeles), who wrote the bill, said the income tax incentives will make hiring from riot-torn areas good business sense and help put an end to the confrontations. “A lot of the destruction occurred around neighborhoods with high unemployment,” she said. “We don’t want to just rebuild. We also want to create jobs.”

The bill is an expanded version of the enterprise zone concept already in place throughout California and is expected to cost the state $150 million over five years.

In addition to the tax incentives for construction companies, damaged businesses would also be compensated for sales taxes they pay on the purchase of replacement fixtures, machinery and other equipment necessary to resume operation.

With twisted metal, charred beams and broken glass as a backdrop, Wilson also signed an executive order aimed at speeding up the issuance of state and local business permits for riot victims and other businesses across the state. Complaining that excessive regulation has driven industry from California, he ordered all state agencies and departments to make recommendations on how they can reduce red tape.

As part of that effort, a special office will be set up in Los Angeles to speed up the permit process for riot victims. The “one-stop shop,” as Wilson called it, will be at 3700 Wilshire Blvd. in the offices of the state Department of Corporations.

Edmund Yee, the owner of the Vermont Avenue mini-mall where Wilson signed the bills, said the incentives would help him put together a financial package to get back in business.

“Right after the riots there was a time when I doubted I would come back,” he said.

Another bill signed Friday allocates $70 million to the California Museum of Science and Industry to begin renovation of the area next to USC. About $39 million will be used to repair or replace the earthquake-damaged structures that house the museum.

The remaining $31 million will go to set up a special elementary school specializing in science education. It will be jointly run by the museum, the Los Angeles Unified School District and USC.