Southeast : BATTLING FOR BUSINESS

Competition between cities over how to attract businesses has led Santa Fe Springs to sue the La Mirada.

Santa Fe Springs filed the lawsuit in Los Angeles Superior Court, claiming that La Mirada’s redevelopment agency has illegally enticed a business to locate in the city by offering rebates to the firm based on sales tax revenue generated by the company.

The lawsuit specifically mentions a deal between La Mirada and Queen Carpet, a carpet company that plans to open a large showroom in the city.

As an incentive for the company to move to the city, La Mirada’s redevelopment agency agreed to pay money to the company each year based on the amount of sales tax revenue generated. The payments could amount to millions of dollars over 20 years.

Officials with Santa Fe Springs claim the deal involves money laundering and want the agreement declared illegal.

La Mirada officials admit the city plans to pay the carpet company based on its revenue, but they say there’s nothing illegal about it.