EZ Policy Blog: Blogging California Enterprise Zones

Dicon Fiberoptics v. FTB Update 2

2007-07-17T07:35:00.000-07:00

The time-line in the Dicon Fiberoptics v. FTB case so far has been:

3/13/2007: Case filed by Dicon against FTB in Los Angeles Superior Court
(The first EZ Policy Blog post was on 5/9/2007)
5/21/2007: FTB requests demurrer (in essence that the case be dismissed)
(The second EZ Policy Blog post was on 6/11/2007)
6/18/2007: Dicon filed their opposition to demurrer
7/12/2007: FTB filed their response to that opposition

No trial date has been set, but the Court has imposed deadlines of 11/30/2007 for written discovery and 1/31/2008 for depositions.

In its July 12, 2007 "Reply to Opposition to Demurrer," the Attorney General's Office of California argues on behalf of the FTB. Regarding Dicon's assertion that "the statute does not permit the FTB to substitute its judgment for that of an agency expressly authorized to determine employee qualification," they write:

Plaintiff also argues that the legislative purpose behind the Enterprise Zone Act was "to encourage areas through economic and regulatory incentives." (Opposition 3:23-26.) But at best, the legislative intent was frustrated. As the Assembly Committee on Revenue and Taxation said in August 1995: "However, the EZ and PA programs appear ineffective at improving employment opportunities within their respective locales." (Plaintiff RJN, Exhibit A, attachment 4 page 6 of 7).
. . .
Whatever the reason the Legislature had for enacting the Enterprise Zone credits those reasons fail in light of reality. In fact, these credits did not have anything to do with Plaintiff's business decisions, rather they were simply after the fact attempts to years later lower their tax liability to the state.

Here we have an arm of the State Government, speaking on behalf of the Franchise Tax Board itself, making the statement that the Enterprise Zone program is an abject failure.

I think there are a few problems with the methodology used to reach this assertion:

The A.G. quotes a Committee Bill Analysis (for SB 1770, Alquist, 93-94 session) and states that it is a conclusion of the Assembly Committee itself. But Bill Analysis only represents the research and opinion of a Committee staff person and is a tool used by legislators to inform their vote. It is not a conclusive statement of the Committee.
The A.G. relies on a study referenced in that Bill Analysis that is over a decade old, that was written before significant legislative changes were subsequently made to the program, and that has been contradicted by multiple, subsequent academic studies.
[Oddly, the A.G.'s "Reply to Opposition to Demurrer" states that this was a statement of the Assembly Committee in August 1995, whereas their own "Request for Judicial Notice" document which contains the copy of the Bill Analysis shows that the document is dated August 15, 1994.]
The A.G.'s assertion that the Enterprise Zone program "did not have anything to do with [Dicon's] business decisions," seems extraordinary. How can they purport to know the motivations and intentions of individual business decisions? This criticism seems to be based on the fact that Dicon made its claim for tax credits after the qualified activity occurred: "In fact, Defendant, Dicon Fiberoptics, Inc. ("Dicon") did not originally claim Enterprise Zone hiring credits. The claim was made in Dicon's November, 2003 amended tax return over two tax years after the qualified individuals had been hired." This is hardly enough evidence upon which to impugn Dicon's intentions. (See also the explanation I wrote at the end of this post why it is normal to expect a delay in the claiming of the tax credits.) Furthermore, since a qualified employee can generate credits for five years of employment, why is activity two years after the hire date indicative of anything?

I had initially felt that the arguments the Attorney General's Office made in its motion for demurrer were very compelling. In response, Dicon raised some valid concerns, but, in my lay opinion, did not fully counter the A.G.'s arguments. However, in this response it seems that the A.G. has crossed a line.

Enterprise Zone Underutilized?

2007-07-12T16:25:00.000-07:00

A recent article in the Imperial Valley Business Journal claims that the relatively new Enterprise Zone there is not being fully utilized. The article goes so far as to even express concern that the zone could be undesignated due to its lack of activity:

Eligible Brawley businesses are failing to take advantage of tax breaks intended to boost employment and attract businesses to the area. In the years to come, that could mean this city will lose its designation as an enterprise zone and that could ultimately affect the city’s ability to attract new businesses given the cost of doing business in California is well above the national average.

And

[Alison] Ricker said she thinks state officials, expected to conduct an audit, may place the zone on probation for having such low numbers. Although the state could take away the zone’s designation at any time, Ricker said she does not think that will happen anytime soon.

I think it’s pretty clear that a suspension of the zone is not in the offing, but the concern certainly raises some interesting issues. The 42 Enterprise Zones are extremely diverse and it would be unreasonable to compare the performance of a zone in rural Imperial County to zones in the urban centers of Los Angeles or San Francisco.

The article theorizes about the causes of the lack of participation. The primary culprits seem to be apathy or lack of interest:

“Brawley businesses aren’t truly sold on this,” said Richard Preciado, managing partner for Hutchinson and Bloodgood, an accounting firm…. eligible companies just aren’t interested, he said, comparing the situation to avoiding exercise. “We know it’s good for us but we just don’t it,” he said.

And

During the March 24 Annual Taste of Culture event in Brawley, only two to three business owners visited the information booth IVEZ maintained at the event, Ricker said.

However, I think a more fundamental reason is hinted at within the anecdote the article cites:

Although Brawley-based Fiesta American Foods is within the zone, it’s been breaking even for the past four or five years and so it cannot apply for the tax credits. Companies must be making a profit and paying taxes in order to be eligible. “It doesn’t do me any good. What I need is more financing,” said Raymond Armenta, the company’s president.

In other words, it costs time, money and resources for a company to administer and participate in the Enterprise Zone program. If a company is not profitable, and many are not for a variety of reasons, then they cannot make use of a tax credit since they are not making the profit to create a tax liability in the first place. A business owner in such a position will generally be working hard to make the business profitable. Spending that limited time and resources on securing a tax credit for theoretical potential future use simply doesn’t make good business sense. It is highly likely that a large portion of the businesses in the Imperial Valley EZ fall into this category.

The Legislature seems to have had difficulty grasping this concept as well. Over the years there has often been a hew and cry over businesses seeking refunds for tax credits calculated retroactively. But in light of the above scenario, this kind of business behavior makes a lot of sense and should be an indicator of economic growth in the Enterprise Zone.

Siskiyou County in 2008

2007-07-12T07:19:00.000-07:00

This article from Mt. Shasta News sheds some interesting light on the local issues and concerns in Siskiyou County as they gear up for their 2008 Enterprise Zone application:

The pros and cons of an Enterprise Zone will be discussed during a town hall meeting scheduled for Wednesday, Aug. 8 at 7 p.m. at the Dunsmuir Community Building.

The meeting will provide an opportunity for residents to express their opinions on Dunsmuir's economic revitalization and development.

City staff, along with Siskiyou County Economic Development Council's Tanya Dowse and Stephanie Bailey will provide an overview of the Enterprise Zone and answer questions.
...
At the close of the Aug. 8 meeting, an informal vote with raised hands will be conducted to determine the willingness of Dunsmuir residents and businesses to undertake the commitment of an Enterprise Zone.

SB 341 Progress

2007-07-04T07:49:00.000-07:00

SB 341 has passed through the Assembly J., E.D. & E. Committee and now goes to the Appropriations Committee. Here is the bill analysis by Toni Symonds.

Santa Clarita Receives Final EZ Designation

2007-07-04T07:44:00.000-07:00

While there is no memo yet from HCD, The Santa Clarita Valley Signal reports an item within its local news that the new Enterprise Zone is being given an official start date of July 1.

Cyntron v. HCD Update: No Injunction Against Voucher Regulations

2007-06-29T18:11:00.000-07:00

On June 12 the judge in Cyntron v. HCD denied Cyntron's motion for preliminary injunction against the voucher regulations. The seven page document provides a point-by-point argument against virtually all of the positions Cyntron made in its complaint (which originally appeared in EZ Policy Blog back in February). Here is an example of how the judge responded:

Plaintiff identifies various inconsistencies in the second through the twelfth causes of action in the complaint. The Court has reviewed plaintiff's claims with respect to each regulation and finds no direct conflict with section 22622.7. To the extent that a regulation appears inconsistent, defendant has provided a reasoned explanation. For example, plaintiff contends that a qualified employee under section 222622.7 [sic.] includes eligibility for the Federal Job Training Partnership ("JTPA") Act or its successor, but that category of eligibility is deleted in regulation 8450.5. However, defendant explains that the JTPA was repealed in 1998, effective July 1, 2000. Thus the regulation focuses on its successor program, the WIA. Plaintiff's further contention that the regulation unlawfully restricts eligibility to certain categories of WIA services also has a reasonable explanation. Under the WIA, a broader class of employees are eligible to receive services. The WIA categories targeted in the vouchering regulations are limited so as to be consistent with the categories of employees previously eligible under the JTPA.

In sum, plaintiff has not shown a probability that it will succeed in showing that the regulations are so inconsistent and contradictory to the legislative mandate that they must be struck down as invalid.

Plaintiff's showing of irreparable harm is similarly weak. As the Court understands plaintiff's argument, plaintiff believes it may not be able to obtain the necessary documentation to support the issuance of a voucher for an employee who would not qualify under the regulations as they now exist but who would qualify if the regulations are held to be invalid. To the extent that plaintiff believes a certain limitation on qualified employees is invalid, plaintiff is free to obtain documentation of the eligibility category that plaintiff believes should be included in the regulation while it maintains its challenge to that regulation....The remaining issues identified by plaintiff, e.g. that it will be required to invade an employee's privacy rights to obtain the necessary documentation of eligibility, are not persuasive.

Of course, there is a simple response to the JTPA issue raised, which is that Cyntron wants to be able to retroactively voucher employees hired before July 1, 2000. Nevertheless, this seems to be a significant setback for Cyntron's case.

There was a hearing scheduled for June 28, but that was later postponed until October 15.

The 2008 Race For 8

2007-06-29T09:46:00.000-07:00

My prediction is that there is going to be a much higher degree of competition for the 8 Enterprise Zone slots that are available for designation in 2008 than there was for the 23 slots in 2006. Even if there are only two applications for each slot, that is still an entirely different dynamic than was faced by applicants in the last round. Attendance at the upcoming HCD workshops will be an interesting indicator of how large the pool might be, but other indicators are already starting to appear. For example this article from The Salinas Californian in which the Enterprise Zone program is describes as a major policy initiative in the Mayor's State of the City address:

Besides touting his ongoing "Peace, Prosperity, Image" campaign, the mayor reiterated plans to work with other municipalities in the Salinas Valley as well as cities on the broader Central Coast.

That includes a plan to coordinate with Gonzales, Greenfield, King City and Soledad and apply to become a state enterprise zone. The designation provides tax credits and other financial incentives that can stimulate investment in economically underserved areas.

The state will only make eight such designations this year, down from more than 20 in 2006. California now has 42 enterprise zones.

"The economic interests of Salinas spread throughout the Salinas Valley," Donohue said. "It only makes sense for the five cities to work together."

I first reported on Mayor Donohue's interest in the Enterprise Zone back in March.

Fresno County Receives Final EZ Designation

2007-06-28T10:03:00.000-07:00

From the HCD press release:

SACRAMENTO— California’s Department of Housing and Community Development announced today that the Fresno County Regional Enterprise Zone is the first enterprise zone among the 23 newly-awarded enterprise zones to receive final designation to complete the necessary steps to move from conditional to final designation. Governor Arnold Schwarzenegger announced the conditional designations for the 23 Enterprise Zones last November.

“With today’s designation, the Fresno County Regional Enterprise Zone offers the businesses located within its newly established enterprise zone the multiple opportunities and benefits of the program,” said Housing and Community Development Director Lynn L. Jacobs. “They join the other 41 zones that together with the state work to promote job opportunities and business investments in California.”

Out of the 23 new conditional designations granted last November, Fresno County in one of four zones that does not overlap any part of a previous zone. Therefore AB 1550's gap language was not applicable and no benefits have been able to begin until this final designation.

Here is the story from the Fresno Bee, and there is also a new website: http://www.fresnocountyez.com/

SB 341 Update

2007-06-26T17:46:00.000-07:00

SB 341 (Lowenthal) passed the Assembly Natural Resources Committee on Monday and now heads to Assemblyman Arambula's Jobs, Economic Development & the Economy Committee on July 3.

This is the bill that will ease some of the onerous environmental impact report requirements that new Enterprise Zone applicants face.

Santa Clarita Final Designation Coming?

2007-06-26T10:36:00.000-07:00

At the end of a story about eminent domain in the Santa Clarita Valley Signal, there is this brief nugget of information:

The council is also expected to approve entering into a memorandum of understanding with the State of California Housing and Community Development Department to administer the enterprise zone that would enable some city businesses to receive state tax incentive and credits.

That should be the last step in the process to receive a final designation for the new zone. I previously mentioned that the City was aiming to have an official start date of July 1, but that it was dependent upon HCD to review its EIR and complete this MOU.

In other local news, there will be a press conference and workshop related to the new Fresno County Regional Enterprise Zone tomorrow.

Good News For Long Beach Enterprise Zone

2007-06-20T13:24:00.000-07:00

From the Los Angeles Times:

Southern California's last major airplane factory got a reprieve Tuesday as Boeing Co. announced it would keep open its Long Beach production line for the C-17 Air Force transport for at least six more months.

With no new orders, the sprawling plant next to Long Beach Airport had been scheduled for closure by mid-2009 with the rollout of the last C-17. It would have dealt a major economic blow to the region.

But Boeing told its Long Beach workers Tuesday morning that the company would invest its own money to keep the line going until at least 2010, with the hope of securing more orders from the Air Force and foreign nations.

New EZ Application Released

2007-06-20T08:22:00.000-07:00

HCD has released the new application for Enterprise Zone designation. I received mine via email, and I do not see it posted to their website yet. They have, however, created a web page detailing two workshops they will be holding to discuss the application process. There will be one workshop in Sacramento on July 9 and another in Los Angeles on July 16.

IRS Publishes New Instructions for WOTC

2007-06-19T09:23:00.000-07:00

The IRS has just published to its website the new form 8850 along with a new instructions publication detailing all of the changes made to WOTC by the Small Business and Work Opportunity Act of 2007 enacted on May 25.

NPR Report On LAMBRAs

2007-06-15T09:33:00.000-07:00

Here is an interesting audio report from NPR about McClellan Air Force Base in Sacramento (a LAMBRA). While the report does not specifically reference the LAMBRA program, it does highlight some of the special challenges the program faces. At McClellan there in an innovative endeavor underway to privatize the environmental clean-up so as to accelerate the process of ultimately developing the property.

HCD Update From Santa Clarita

2007-06-13T16:45:00.000-07:00

I was just in Santa Clarita for an Enterprise Zone workshop featuring presentations by Jason Crawford of the City, Frank Luera of HCD and Marcia Richards of FTB. It was very well organized and had a nice turnout. Lots of PowerPoint.

It is very clear that there is a great deal of enthusiasm in the City for the new zone designation which they hope to have in place by July 1. Jason Crawford reported that the City Council had approved their EIR the night before and that it was being submitted to HCD today. Frank didn't offer his opinion about the July 1 designation date.

Frank did provide the following general updates:

The new voucher form is going to be delayed past the anticipated July 1 date. There has been some interest at the Legislature to have some questions added to the form in order to collect data for future study.
Procedures for designating new TEAs are expected to be available within the next two weeks.
The new Enterprise Zone application for the eight spots becoming available in 2008 is expected to be available early next week.

Of course, I'll have these updates available here as soon as they are released.

Dicon Fiberoptics v. FTB Update

2007-06-11T10:54:00.000-07:00

Last month I reported on a new Enterprise Zone related lawsuit being brought in Superior Court, Dicon Foberoptics, Inc. v. Franchise Tax Board of the State of California. Here is the crux of Dicon's complaint that I quoted last time:

Does the California Franchise Tax Board have unfettered authority to retroactively interpret and act upon a construction of the Revenue and Taxation Code that ignores express language concerning the requirements that a taxpayer must meet to receive available tax credits or refunds? Second, does the California Franchise Tax Board deprive a taxpayer of notice and procedural protections when its statutory interpretation creates additional administrative hurdles for taxpayers otherwise eligible to receive credits or refunds? And third, should the law permit the California Franchise Tax Board to deny taxpayers their credit or refunds, in some cases years after approval by an authorized administrative agency specifically tasked to review and certify eligibility for such benefits?

Within the last few weeks, the State has filed a demurrer with the court. Not being a lawyer, I had to look up demurrer. According to the Law.com dictionary, this means:

A written response to a complaint filed in a lawsuit which, in effect, pleads for dismissal on the point that even if the facts alleged in the complaint were true, there is no legal basis for a lawsuit.

Indeed, the Attorney General's office filed a lengthy "Memorandum of Points and Authorities in Support of Demurrer to First-Amended Complaint for Refund of Amounts Paid." This Memorandum is an elaborate argument for the FTB's authority to examine enterprise zone voucher supporting documentation. While it cites the Deluxe case, in my opinion, this argument is even more comprehensive then the one offered there. The State argues that Dicon's position is so unfounded that they are suggesting the whole thing be dismissed, in other words demurred.

Here are the five headlines for the arguments made to dismiss the case:

Overview of tax refund litigation shows that Dicon has not stated a cause of action.
The Board [FTB] has authority to demand documentation to administer and enforce the Revenue and Taxation Code and Dicon's failure to allege that it provided the documents is fatal to its action.
Section 23622.7 Subdivision (c), does not limit the authority of the Board to demand substantiation of enterprise zone hiring credits.
Section 23622.7 Subdivision (c), does not grant exclusive authority to the agencies designated to review eligibility for enterprise zone hiring credits.
Dicon cannot estop or otherwise rely on third party's determination that it owes no tax.

I'm pretty certain that if this case were offered on pay-per-view there would be some serious interest. Email me if you would like a copy of the complete court document.

It appears that the time-line for the continuation of the case will be as follows: Dicon's opposition brief is due by 6/18/07, FTB's reply to that brief is due 7/5/07, and there will be a hearing on the demurrer on 7/12/07.

Major New Development In Los Angeles Enterprise Zone

2007-06-01T14:36:00.000-07:00

The Los Angeles Times reports today on the launch of a huge new development next to the Los Angeles Convention Center and Staples Center:

At a ceremony today, AEG plans to announce that Wachovia Corp. and investment firm MacFarlane Partners have signed on to help finance the 54-story, $900-million hotel and condominium complex — the cornerstone of the $2.5-billion L.A. Live entertainment center.

"This is the most important thing we have ever done as a company," said AEG President Tim Leiweke, whose company owns Staples Center and the Los Angeles Kings NHL hockey team, among other teams and arenas. "It will change the economy of not just downtown but of Los Angeles."

Civic leaders see the hotel project as crucial to attracting the kinds of big-league, national conventions that now go to places such as Anaheim, San Diego and San Francisco.

JW Marriott and upscale Ritz-Carlton will operate separate hotels in the building on Olympic Boulevard. Combined, there will be 1,001 guest rooms when the hotels open in 2010. The Marriott will also operate one of the largest ballrooms in Los Angeles, with a seating capacity of 3,000. The top 26 floors will house 224 luxury condos attended to by the Ritz-Carlton staff.

The story includes the fact that special incentives were offered by the City Council in order to secure the deal:

The deal approved by the City Council calls for AEG to receive a rebate of at least $246 million in the hotel bed taxes it is expected to generate during the first 25 years of operation. In addition, the project is being given a $5-million grant from the city redevelopment agency and a rebate of $4 million in building permit fees.

Those concessions from the city were essential to getting the hotel started, Leiweke said.

What the story does not mention is that this part of downtown Los Angeles is included in the newly designated Enterprise Zone that replaces the expired Los Angeles Central City zone.

CalGRIP

2007-05-28T21:11:00.000-07:00

The biggest news story in a long time to feature the Enterprise Zone is the Governor's new anti-gang proposal, CalGRIP - California Gang Reduction, Intervention and Prevention Program. In the official Gubernatorial press release this bullet point explains how the Enterprise Zone plays its part:

Gives a tax break to employers that provide jobs. CalGRIP adds “former gang member” to list of criteria allowing companies in Enterprise Zones to receive tax credits of up to $29,234 per employee. Status of “former gang member” verified by completion of a program recognized by the gang coordinator.

See also these mentions in the Alameda Times-Star, and the Contra Costa Times.

HCD Launches New Website

2007-05-28T20:40:00.000-07:00

Over the weekend, HCD quietly launched a new and improved gateway into the Enterprise Zone website: http://www.hcd.ca.gov/fa/cdbg/ez/. Some of the new features that have been talked about over the past months are starting to appear and it looks like there is a lot of potential. The most significant improvement they can make is to have the ability to make frequent updates, and it looks like they may have that now.

New Economic Plan For The Valley

2007-05-28T20:20:00.000-07:00

From the Los Angeles Daily News:

After decades of neglect, the northeast San Fernando Valley will become the focus of a multimillion-dollar revitalization effort designed to lure jobs and spur development in the blighted communities.

Councilman Richard Alarcon won approval Wednesday for the Community Redevelopment Agency to develop what he calls a vision statement for the 2,900-acre area in the Northeast Valley, where more than $62million is available for improvements.

"The time has come for the northeast San Fernando Valley to have a coherent and community-driven plan for its future," Alarcon said. "Pacoima, Sun Valley, Sylmar and Panorama City are some of the most underplanned areas in the city.

"Now is the time to create something out there that deals with the problems we face."

Reviewing the region over the next month, the CRA will look for opportunities to spur industry, create jobs and integrate mixed-use development with pedestrian-friendly commercial zones.

In planning the improvements, officials hope to take advantage of the transportation corridors - Victory Boulevard and the San Diego and Foothill freeways - that border the area.

"This is an area where everyone is anxious to see some good development," said Bob Scott, chairman of the Valley Industry and Commerce Association. "It is an area that is vastly underused now and is ripe for the right kind of development.

"We think it is an area that can become a major jobs-creation area by learning the lessons of Santa Clarita and Burbank in developing a business-park concept."

The Pacoima and Panorama City areas have more than 118,000 residents living in 27,620 households, according to information provided by the CRA, which based its estimates on 2005 Census Bureau figures. About 25 percent of the households in the predominantly Latino communities live below the federal poverty level.

The communities are also home to more than 2,800 businesses that employ nearly 29,000 workers.

But business leaders say boosting employment is key to the success of the program, with upgrades to the area sidewalks and surface streets critical to luring new businesses to the area.

"The one concern we would have would be the loss of any more industrial land," Scott said. "We recognize people need a place to live, but they also need a place to work."

Roberto Barragan of the Valley Economic Development Corp. echoed Scott's views.

"We all know about the housing problems of the city, but we need the industrial space if we are going to create the jobs we need for this area and for the city," Barragan said.

"It is a tough balancing act, but I think it can be done. We have a vibrant business community now. Pacoima alone has 2,000 businesses. What we have to do is develop on top of what we have now."

Alarcon said he shares those concerns and will be working with the various business organizations to develop the plans, but he said he also recognizes the need to address the city's shortage of affordable housing.

He also said he already has begun discussions with major companies - including Magic Johnson Theaters, Lowe's and Home Depot - about ways to draw them into the area.

"What we want to do is have a master plan so investors know they are not just investing in one property, but an entire area," Alarcon said.

It's strange that the Enterprise Zone is not mentioned here, especially after all the trouble they went through to get the area designated.

WOTC Extension Passes Congress

2007-05-25T09:26:00.000-07:00

Through an interesting series of events, a significant extension and expansion of the Work Opportunity Tax Credit is about to become law. As The New York Times reports, President Bush has won his standoff with Congress to receive a war funding bill that does not include any timetable for withdrawal. The bill includes billions of dollars in "pork," and also includes the first federal increase in minimum wage in 10 years. And since the beginning of the minimum wage increase effort, certain tax credits have been bundled along to make it more palatable.

In the version that appears likely to be signed now by the President, the WOTC is extended until August 31, 2011 which is the longest single extension the program has ever received. But perhaps more importantly, the bill makes changes to the credit itself which will significantly enhance its value.

HCD Issues Guidelines For Noncontiguous Zone Expansions

2007-05-22T12:41:00.000-07:00

One of the significant changes to the Enterprise Zone program instituted by AB 1550 last year was the ability for a zone to expand its borders non contiguously. HCD has now issued guidelines to zones explaining how to apply for such an expansion. While this new provision allows greater flexibility for the zones, it also creates an opportunity for local controversy. For example, the HCD memo explains, "The second criterion states that the jurisdictions must also demonstrate that the excluded areas between the proposed new boundaries would not, based on the enterprise zone's EDS, also benefit from the expansion." This seems to leave just enough subjectivity to ensure that someone will be unhappy at some point.

It's Not Easy To Run An Enterprise Zone Under These Conditions (2)

2007-05-18T10:09:00.000-07:00

I hope this doesn't become a a whole series of posts. This time it's the City of South Gate that's getting hit with a big court settlement making a difficult fiscal situation more difficult. From the Los Angeles Times:

Four minority South Gate police officers who claimed they were harassed on the job because of their ties to two controversial and eventually ousted Latino city officials won a $10.4-million jury award Thursday.

The award is believed to be one of the largest ever in a police employment discrimination case and represents another setback for the controversy-plagued, working-class community in southeastern Los Angeles County.

The City will be appealing the decision.

TALX Shareholders Approve Merger With Equifax

2007-05-15T15:32:00.000-07:00

Equifax is now in the tax credit business after shareholders of TALX Corporation approved the takeover today.

Local EZ News: Siskiyou and Delano

2007-05-14T10:02:00.000-07:00

The Siskiyou Daily News reports that communities in that county have been awarded over $3 million in economic development grants:

Great Northern Corporation (GNC) in a recent press release announced that the State of California Housing and Community Development (HCD) program has awarded over $3 million in funding for both their Planning and Technical Assistance Awards (PTAA) and their Economic and Community Development Block Grants (EDBG).

Part of this money will apparently be used to apply for a new Enterprise Zone designation in the upcoming application round:

“This was an impressive collaborative effort led by GNC,” Siskiyou County Economic Development Council Executive Director Tonya Dowse said in the release. “It is really unheard of to have so many communities come together on one project. With this funding we will be able to put together a quality Enterprise Zone Application.”

And in Delano The Bakersfield Californian reports on plans for a new $65 million retail development project:

Delano, where one in five residents is behind bars, is hoping an ambitious commercial development project will free the town from economic lockdown.

At first glance, Delano comes across as a sluggish, why-go-there town struggling with its always-uncertain agricultural economy -- a town perhaps distinguished most for the 11,148 inmates it holds in two state prisons within a total population of 53,037.

The city is imprisoned by a double-digit unemployment rate, antiquated roads and sewers and an anemic retail market.

But construction of a proposed $65 million project, now planned for some 20 retailers including a Wal-Mart Supercenter and Lowe's home improvement store, could begin as early as this fall.

Geary Coats, project director of the 45-acre Delano Marketplace, said, if approved, construction would take 12 to 18 months and provide more than 600 jobs.

Bill Bopf, a city economic development consultant, said the marketplace should generate $120 million to $150 million in annual sales.

That, he said, translates into $1.1 million in sales taxes.