Lancaster, Palmdale Seeking to Renew Enterprise Zone

Lancaster and Palmdale will file a joint application to renew the enterprise zone that has helped create new jobs in the Antelope Valley region. The zone is set to expire in 2012 and officials from both cities want to see it extended for the incentives it provides businesses to locate to the communities in north Los Angeles County. The zone’s boundaries take in much of the industrial and commercial zoned property in the cities, which includes Plant 42, a center of aerospace manufacturing and the Fairview Business Park in Palmdale. A Bank of America call center, one of Lancaster’s largest employers, is also located in the enterprise zone. Enterprise zones were created by the state in 1984 to stimulate business investment in areas that might not otherwise attract industry. Employers can receive a hiring tax credit of up to $37,440 for each qualified employee; a sale tax credit on qualified machinery or machinery parts purchases; a business expense deduction; and net operating loss carryover. “It is the way the entire state should be doing business,” said Palmdale Mayor Jim Ledford. The enterprise zone is the best incentive Lancaster has to bring in business, said Vernon Lawson, the economic development and redevelopment director. Recreational vehicle manufacturer Lance Camper was among the companies that came to the city for the enterprise zone incentives. Large warehouses, such as that for Rite Aid, are also located there. The incentives offered are a benefit to any size company, Lawson said. “Some of the incentives are aimed at large businesses but some are equally good for small businesses, which I like,” Lawson said. The next step is for each city to put together a renewal application that shows support from the business community and residents. The applications will then be submitted jointly to the state for approval.