Will a state zone marker boost Lodi's job growth?

Governor's designation provides big incentives for Lodi's businesses

By Chris Nichols
News-Sentinel Staff Writer

In a move that could spur job and business growth, the city of Lodi's industrial sector was given conditional acceptance into the state's enterprise zone on Thursday.

The zone — announced by Gov. Schwarzenegger's office — provides incentives for businesses to hire local workers, buy more machinery and even buy more property.

"It's a great thing ... the main thing it does is it brings back to Lodi our tax dollars," said Lodi Chamber of Commerce President Pat Patrick, who last fall wrote in a chamber newsletter that the city "should be jumping on (the enterprise zone) like a chicken on a June Bug."

He noted that businesses that hire "economically challenged" employees — including residents living in the zone, veterans or even felons — can qualify for significant state tax credits.

Those credits could total $37,440 or more per year, for each qualified employee, according to a press release from the governor's office.

At the local level, enterprise zone businesses receive reduced building permit fees, streamlined permitting process, utility tax rebates, low-cost loan packaging and no-interest facade improvement loans.

Eight zones statewide are in line for approval, including expanded parts of San Joaquin County. The state's Department of Housing and Community Development will give final approval later in the year, once a signed memorandum of understanding — including benchmarks for the program — is completed.

While the Lodi enterprise zone would only include the city's eastern industrial corridor, it could be expanded in later years to include other parts of the city, Lodi City Manager Blair King said.

City officials did not have exact boundaries of the zone available Thursday afternoon.

King said he did not see a downside to the zone, calling it "a great economic development tool" in the city's "toolkit."

The city spent $6,453.69 to apply for the designation, said city spokesman Jeff Hood.

Along with Lodi, parts of Stockton, Manteca, Lathrop and Tracy will be included in the expanded San Joaquin County enterprise zone.

Other areas to get the marker Thursday were Siskiyou County, East Los Angeles, Salinas Valley, Kings County, Oakland, West Sacramento and Santa Ana.

Stockton City Manager J. Gordon Palmer said being part of an enterprise zone the past 15 years has helped Stockton attract new industry.

"I think it makes it more attractive for a business to locate here," he said. "I don't know if it's the deciding factor, but it's one of the factors."

Contact reporter Chris Nichols at chrisn@lodinews.com.