COUNTY OF RIVERSIDE BUSINESS RESOURCE GUIDE Economic Development Agency
6F
Business
Incentive Zones
Riverside County California
Business Incentive Zones Riverside County is a strategic location for business because of the many incentive zones throughout the county, the diverse and accessible transportation network and the high quality of life. Businesses can profit from advantageous tax-credit and rebate incentives and low-interest loans offered in Riverside County's five redevelopment project areas, a State Enterprise Zone and two Recycling Market Development Zones.
The reasonable cost of living and an attractive quality of life in Riverside County mean it's easier to retain a valuable workforce at highly competitive rates. A county government that is business friendly and a location that is central to all Southern California markets makes Riverside County an excellent choice for a business move.
Recycling Market Development Zones (RMDZ) The Recycling Market Development Zones strive to attract businesses using recycled materials in their manufacturing process. The state has established a low-interest rate revolving loan fund which may be used for land acquisition, leasehold improvements, equipment purchases, and working capital for up to 75 percent of the project cost to a maximum of $2 million.
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3499 10 th Street, Suite 100 ● Riverside, CA 92501 ● 951.955.8916 ● 951.955.2159 FAX ● www.rivcoeda.org
COUNTY OF RIVERSIDE BUSINESS RESOURCE GUIDE Economic Development Agency
Manufacturers Grow Your Business by Using Free RMDZ Services!
There are so many reasons to live, work, and do business in California: the climate, the ocean, the cities, mountains, and desert...and of course, the people.
If your company manufactures with recycled materials, you have another good reason to be a California business. The California Recycling Market Development Zone (RMDZ) Program provides attractive loans and other incentives to eligible businesses that locate in designated areas throughout the state.
Recycling Market Development Zones are for businesses that manufacture products using materials that would normally end up at the landfill. The company must be located in one of the specially designated geographical zones throughout California. Companies that manufacture with these materials have found that it is less expensive and that products are just as high quality, if not higher, than when using raw materials. Depending on your needs and which zone you are located in, there are many ways that the RMDZ program can assist your business: Locating manufacturing materials (feedstock) Streamlined permitting Site location An attractive loan program Finding markets for products Providing current market conditions/trends Evaluating technology and equipment Providing geographical data on demographics, waste streams, and economics Marketing products for free via the Recycle Store
For more information, search for a Recycling Market Development Zone and contact the zone’s administrator (see below). On the California Business Portal site, you can also
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3499 10 th Street, Suite 100 ● Riverside, CA 92501 ● 951.955.8916 ● 951.955.2159 FAX ● www.rivcoeda.org
COUNTY OF RIVERSIDE BUSINESS RESOURCE GUIDE Economic Development Agency
learn about establishing a business in California, including matters related to business permits, licensing, and registration.
Riverside County Recycling Market Development Zones Riverside County RMDZ: http://www.calrecycle.ca.gov/rmdz/Riverside/Default.asp Agua Mansa RMDZ: http://www.calrecycle.ca.gov/rmdz/AguaMansa/ Riverside County Economic Development Agency 3499 10th Street, Ste. 100 Riverside, CA 92501 Phone: 951-955-8916
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3499 10 th Street, Suite 100 ● Riverside, CA 92501 ● 951.955.8916 ● 951.955.2159 FAX ● www.rivcoeda.org
COUNTY OF RIVERSIDE BUSINESS RESOURCE GUIDE Economic Development Agency
Redevelopment Project Areas Riverside County has five redevelopment project areas including 37 sub-areas that encompass 61,016 acres throughout the county. The Redevelopment Agency utilizes tax increment and bond proceeds to finance public improvements, business assistance and housing in accordance with California Redevelopment Law. Businesses located within the project areas may qualify for construction of public improvements, tax rebates and fee assistance. In addition, the Agency provides assistance to improve, preserve and increase the supply of housing that is affordable to low- and moderate- income persons in all unincorporated areas of the county. The redevelopment project areas offer a variety of opportunities for industrial, commercial, aviation and residential development, as follows:
Project Area 1-1986
. Home Gardens . Murrieta . Lakeland Village . Wild Omar . El Cerrito . Temescal Jurupa Valley Project Area
. Jurupa . Mira Loma . Rubidoux . Pedley . Glen Avon Mid-County Project Area
. Garnet . Homeland/Green Acres
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3499 10 th Street, Suite 100 ● Riverside, CA 92501 ● 951.955.8916 ● 951.955.2159 FAX ● www.rivcoeda.org
COUNTY OF RIVERSIDE BUSINESS RESOURCE GUIDE Economic Development Agency
. Valle Vista . Winchester . West Garnet . Hemet . San Jacinto Valley . Cabazon Desert Communities
. East Blythe . Mecca . North Shore . Palm Desert Country Club . Ripley . Thermal . Thousand Palms . French Valley Airport . Hemet-Ryan Airport . Flabob Airport . Blythe Airport . Desert Center Airport . Chiriaco Summit Airport . Jacqueline Cochran Regional Airport . Desert Center . Lake Tamarisk I-215 Corridor
. Highgrove . Lakeview . Mead Valley . Romoland
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3499 10 th Street, Suite 100 ● Riverside, CA 92501 ● 951.955.8916 ● 951.955.2159 FAX ● www.rivcoeda.org
COUNTY OF RIVERSIDE BUSINESS RESOURCE GUIDE Economic Development Agency
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3499 10 th Street, Suite 100 ● Riverside, CA 92501 ● 951.955.8916 ● 951.955.2159 FAX ● www.rivcoeda.org
COUNTY OF RIVERSIDE BUSINESS RESOURCE GUIDE Economic Development Agency
Redevelopment Programs One of the primary objectives of the Redevelopment Agency is to improve public infrastructure and construct public facilities to make communities a great place to live in. The Redevelopment Agency offers the following programs:
Demolition Grant Program The Economic Development Agency started this program in response to property owners who require assistance with the demolition of dilapidated structures on private property. In order to eliminate blighting conditions and facilitate the redevelopment of properties, the Redevelopment Agency Demolition Grant Program provides a grant of up to $75,000 to property owners to abate existing dilapidated structures within the redevelopment project areas.
Funding is available on a first come first served basis. For more information or an application please call (951)955-8916.
Façade Improvement Program The Facade Improvement Program is a discretionary incentive program designed to improve the exterior elements of existing businesses located within the County’s Redevelopment Project Areas.
Get up to a maximum of $125,000 to enhance the appearance of your commercial building, which includes: . Up to $25,000 Forgivable Loan for architectural services . Up to $100,000 for construction costs of the improvements Improvement Priorities: . Building . Landscaping . Signage Page 7 of 16
3499 10 th Street, Suite 100 ● Riverside, CA 92501 ● 951.955.8916 ● 951.955.2159 FAX ● www.rivcoeda.org
COUNTY OF RIVERSIDE BUSINESS RESOURCE GUIDE Economic Development Agency
To find out more information about project area boundaries and program guidelines, please call (951) 955-0911 or visit our website at http://www.rivcoeda.org and look for Façade Improvement Program under the Redevelopment Department.
* Your building must be located in a Redevelopment Project Area to be eligible.
Graffiti Abatement Program The Graffiti Abatement Program provides graffiti abatement services to all unincorporated communities of Riverside County. The program consists of a fleet of four graffiti abatement vehicles staffed with one painter and painter assistant on each vehicle. Three graffiti abatement vehicles remove graffiti from Western Riverside County and one graffiti abatement vehicle is dedicated to removing graffiti from Eastern Riverside County communities. The program also utilizes two graffiti abatement contractors to accommodate overflow work orders and maintain efficient turnaround times.
Extensive community input is essential to the success of the program. A large majority of graffiti work orders are generated through residents reporting the graffiti. The Graffiti Busters program provides color matching capabilities and an average turnaround time of one business day. Graffiti can be reported through the graffiti abatement hotline at 951.955.3333 or 866.732.1444 (toll free) and/or by visiting www.rcgraffitibusters.com.
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3499 10 th Street, Suite 100 ● Riverside, CA 92501 ● 951.955.8916 ● 951.955.2159 FAX ● www.rivcoeda.org
COUNTY OF RIVERSIDE BUSINESS RESOURCE GUIDE Economic Development Agency
March Air Reserve Base Redevelopment The realignment of March Air Force Base is opening up new opportunities for business development. The March Joint Powers Authority (JPA), comprised of representatives from the local jurisdictions of the cities of Riverside, Moreno Valley, and Perris and the County of Riverside, is planning reuse and joint use at March Air Reserve Base in western Riverside County. The March JPA is finalizing its redevelopment plans which will include new business development.
Additional information on each of the redevelopment project areas listed above may be obtained by contacting the Riverside County Economic Development Agency at 800.984.1000, or visit their website at www.rivcoeda.org.
Meridian Business Park Meridian, a master planned business park, designed with growing companies in mind, is nearly 1,000 net acres and provides an unparalleled business park environment at this prime location in the East Inland Empire.
The project is the westerly portion of the former March Air Force Base. The project has three miles of freeway frontage on Interstate 215, Foreign Trade Zone designation, a future Metrolink Station, rail spurs with BNSF service. The business park offers office, industrial, and commercial sites for build-to-suit opportunities, as well as, attractively priced land offering a variety of improved lot sizes and zoning.
For additional information, please visit www.meridian-lnr.com
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3499 10 th Street, Suite 100 ● Riverside, CA 92501 ● 951.955.8916 ● 951.955.21 59 FAX ● www.rivcoeda.org
COUNTY OF RIVERSIDE BUSINESS RESOURCE GUIDE Economic Development Agency
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3499 10 th Street, Suite 100 ● Riverside, CA 92501 ● 951.955.8916 ● 951.955.21 59 FAX ● www.rivcoeda.org
COUNTY OF RIVERSIDE BUSINESS RESOURCE GUIDE Economic Development Agency
Coachella Valley Enterprise Zone In November 2006 the Coachella Valley Enterprise Zone was approved for renewal. Initial zone designation was to expire November 10th; the new status will remain in effect for 15 years, providing all newly implemented auditing standards are met. The new designation includes the City of Indio, the City of Coachella, and the County of Riverside unincorporated regions of Thousand Palms, Bermuda Dunes, Mecca and Thermal.
The Enterprise Zone Program targets economically distressed areas throughout California. Special state and local incentives encourage business investment and promote the creation of new jobs. The purpose of the Zone program is to provide tax incentives to businesses and allow private sector market forces to revive the local economy.
Among the benefits available to Enterprise Zones businesses are: . A State Income Tax credit of over $37,000 to the employer for each qualified employee . Sales tax credits on purchases of qualified machinery and parts. . Up-front expensing of certain depreciable property. . Lenders to Zone businesses may receive a net interest deduction . Tax credits can be rolled-over to future years, extending the initial investment. . Companies can earn preference points on state contracts. . Up to 100% Net Operating Loss carry-forward, allowable for 15 years.
Contact Coachella Valley Enterprise Zone Contact CVEZA Director Mark Weber at: [email protected] 53-990 Enterprise Way, Suite 13 Coachella, CA 92236 760.391.5176 http://www.cveza.org/ 11 of 16
3499 10 th Street, Suite 100 ● Riverside, CA 92501 ● 951.955.8916 ● 951.955.21 59 FAX ● www.rivcoeda.org
COUNTY OF RIVERSIDE BUSINESS RESOURCE GUIDE Economic Development Agency
Contact California Association of Enterprise Zones 550 Bercut Drive, Suite G Sacramento, CA 95814 1-877-930-CAEZ (1-877-930-2230) [email protected]
Email comments to the administrator/webmaster at [email protected]
Foreign-Trade Zone What Is A Foreign-Trade Zone? A Foreign-Trade Zone is a specially designated area, in or adjacent to a U.S. Customs Port Of Entry, which is considered to be outside the Customs Territory of the U.S.
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3499 10 th Street, Suite 100 ● Riverside, CA 92501 ● 951.955.8916 ● 951.955.21 59 FAX ● www.rivcoeda.org
COUNTY OF RIVERSIDE BUSINESS RESOURCE GUIDE Economic Development Agency
The following is a partial list of the many benefits you can attain when using Foreign- Trade Zones or Foreign-Trade Zone Subzone: No duty is ever paid on re-exported merchandise from a Foreign-Trade Zone
If the merchandise is sold domestically, no duty is paid until it leaves the zone or zones
Generally, no duty is paid on waste or yield loss in a Foreign-Trade Zone or subzone
Duty on scrap is eliminated or reduced in a Foreign-Trade Zone
Generally, if foreign merchandise is manufactured within a Foreign-Trade Zone or subzone into a product with a lower duty rate, then the lower duty rate applies on the foreign content when duty is paid
Merchandise in a Foreign-Trade Zone may be stored, repackaged, manipulated, manufactured, destroyed or otherwise altered or changed
A Few of the Ways Foreign-Trade Zones Can Save Your Company Money:
Duty Exemption on Re-Exports If merchandise is re-exported after being placed in a FTZ or shipped to another FTZ and then re-exported then no duty is ever paid.
Relief from Inverted Tariffs Generally, if foreign merchandise is brought into a Foreign-Trade Zone or Sub-zone and manufactured into a product that carries a lower duty rate, then the lower rate applies.
FOR EXAMPLE: A Foreign-Trade Zone user imports a motor (which carries a 5.3% duty rate) and uses it in the manufacture of a vacuum cleaner (which has a 1.4% duty rate). When the vacuum cleaner leaves the FTZ and enters the commerce of the U.S., the duty owed on the motor drops from the 5.3% motor rate to the 1.4% vacuum cleaner rate. 13 of 16
3499 10 th Street, Suite 100 ● Riverside, CA 92501 ● 951.955.8916 ● 951.955.21 59 FAX ● www.rivcoeda.org
COUNTY OF RIVERSIDE BUSINESS RESOURCE GUIDE Economic Development Agency
Duty Elimination on Waste and Scrap: No duty is charged on most waste and scrap from production in Foreign-Trade Zones.
No Duty on Rejected or Defective Parts: Merchandise found to be defective or faulty, may be returned to the country of origin for repair or simply destroyed. Whichever choice is taken, no duty is paid. Many companies suffer from the "double duty crunch." That is, they pay duty on imported merchandise, find it to be faulty and return it to the country of origin for repair, and then pay duty again when the merchandise reenters the United States. If you are a Foreign-Trade Zone user or Sub-zone, the "double duty crunch" is never a problem, because your merchandise never enters the commerce of the United States.
Duty Deferral: No duty is ever charged on merchandise while it is in a Foreign Trade Zone, and there is no limit on the length of time merchandise may be kept in a Foreign- Trade Zone. By deferring the duty, capital is freed for more important needs.
No Duty on Domestic Content or Value Added: The "value added" to a product in a FTZ (including manufacture using domestic parts, cost of labor, overhead, and profit) is not included in its dutiable value when the final product leaves the Zone. Final duties are assessed on foreign content only.
Relief from Local ad Valorem Taxes: Foreign merchandise stored in Foreign-Trade Zones, or merchandise held in a zone for export, is not subject to any state or local ad valorem taxes.
No Duty on Sales to the U.S. Military or NASA: No duty is charged on merchandise sold from a Foreign-Trade Zone to the U.S. Military or NASA, returned to the country of origin for repair or simply destroyed. Whichever choice is taken, no duty is paid.
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3499 10 th Street, Suite 100 ● Riverside, CA 92501 ● 951.955.8916 ● 951.955.21 59 FAX ● www.rivcoeda.org
COUNTY OF RIVERSIDE BUSINESS RESOURCE GUIDE Economic Development Agency
Riverside County Foreign Trade Zones March Air Reserve Base Foreign Trade Zone The March JPA sought and received designation of 2400 acres as a Foreign Trade Zone. The Zone is a new independent zone, versus an extension of an existing zone. The designation of a Foreign Trade Zone at March will assist businesses locating at March Inland Port or other locations on the former air force base to receive various tax breaks and incentives.
March Joint Powers Authority Mailing Address: P.O. Box 7480, Moreno Valley, California 92552, USA Delivery Address: 3430 Bundy Avenue, Suite 107, Bldg #3408 Riverside, CA, 92518, USA Phone: (951) 656-7000 Fax: (951) 653-5558 Email: [email protected]
The March Joint Powers Redevelopment Agency was formed in 1996, along with the March AFB Redevelopment Project Area to assist in the base reuse efforts.
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3499 10 th Street, Suite 100 ● Riverside, CA 92501 ● 951.955.8916 ● 951.955.21 59 FAX ● www.rivcoeda.org
COUNTY OF RIVERSIDE BUSINESS RESOURCE GUIDE Economic Development Agency
Palm Springs Foreign Trade Zone Foreign Trade Zone #236 consists of 917 acres at Palm Springs International Airport and 14 acres at Palm Springs Rail Station can benefit firms that import or export goods: Customs duties and Federal Excise Taxes are deferred improving cash flow.
No duties on goods re-exported from an FTZ.
Foreign and Domestic Goods held for export are exempt from state and local inventory taxes.
If finished products assembled in FTZ have lower duty rates than their imported components, the importer may pay duties at the lower rate.
For more information on the Palm Springs Foreign Trade Zone contact the Coachella Valley Economic Partnership at: 760.340.1575 or online at www.cvep.com.
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3499 10 th Street, Suite 100 ● Riverside, CA 92501 ● 951.955.8916 ● 951.955.21 59 FAX ● www.rivcoeda.org