6th district Councilwoman Laura Richardson-Batts triggered the half hour Council discussion (extended transcript excerpts, below) by refusing to support staff's enterprise zone expansion as proposed.

She said she would support expansion limited to two addresses where identifiable businesses were contemplated: 3340 Los Coyotes Diagonal (for a Northwest Airlines Reservation and Training Center) and 5236 Los Altos Plaza (for retention and expansion of Flexo Hiner & Partners). A third proposed area southeast of Willow St. & Redondo Ave. where no specific business was identified was eliminated.

During frequently intense colloquy, Councilwoman Richardson-Batts aired what she described as "dirty laundry" surrounding City Hall's pursuit of new businesses (transcript excerpts, below). She expressed her view that staff's proposed enterprise zone expansion was not within the intent of the state Enterprise Zone Act and insisted there be no further expansions "until we address what we have committed that we're already gonna do. And anyone who wants to take a tour with me to see that what we've said we're gonna do we haven't done, I'd be happy to take you to see that."

The CA Enterprise Zone Act specifies in its findings and declarations that "there are certain areas within the state that are economically depressed due to a lack of investment in the private sector. Therefore, it is declared to be the purpose of this chapter to stimulate business and industrial growth in the depressed areas of the state by relaxing regulatory controls that impede private investment."

The Act continues, "No enterprise zone shall be designated in which any boundary thereof is drawn in a manner so as to include larger stable businesses or heavily residential areas to the detriment of areas that are truly economically depressed."

Council tension on the issue soon became evident. After the clerk read the item, 3d district Councilman Colonna immediately moved approval. 5th district Councilwoman Kell (in whose district two of the proposed sites were) then took the floor.

Councilwoman Kell didn't mention the other areas along Los Coyotes from Willow St. to Wardlow Rd. that were within staff's proposed expansion area. The neighborhood is surrounded by middle-class single family homes and served by commercial nodes that contain higher-end stores and upgrading facilities

These include a "Pavilions" and neighboring specialty tenants including the "It's a Grind" coffee house, boutiques and a vitamin store. A new Blockbuster replaced a former Blockbuster at Los Coyotes/Wardlow that closed due because the Ralphs store is expanding into a full service amenity market.

The 3340 Los Coyotes Diagonal site (right side of photo) proposed for the Northwest Airlines Reservation and Training Center is behind the expanding Ralphs market just south of Wardlow Rd.

...The true spirit of what our request is tonight I do not agree with and I have some very serious concerns with what we're doing. However, I am going to support it with certain requests that I have.

Number one, I'd like request that in the future, when we have items such as expanding business enterprise areas...that clearly we should be given more than 2 to 3 days to review this type of information...To be given something late Thursday and expected to review it and answer questions, discuss and go through the whole thing, this is just not sufficient amount of time...

The second concern that I have is that we are going to bring these issues forward that as staff we really need to have all the information so that Councilmembers can make the appropriate decisions. For example, one of the aguments of why we should support this issue is that even though the expanded area may be in a different area than the current predetermined [enterprise zone] areas, the previously predetermined areas have an opportunity for individuals to be hired. Well when I asked the question, can you show me that individuals in my predetermined area have been hired, we were not able to provide that information. And I think that that information is very critical to make a decision if I would choose to support something like this...

The third thing is, I'd like to request that since this issue was brought to us in what I would deem to be a very late notice situation, I would like to request that the resolution be amended, and I have spoken with the maker of the motion, Councilmember Kell, to have these locations limited in scope, specifically to the properties that I will lay out in the resolution and not to the extended areas, and so that that way, we can preserve the intent of what I believe this business enterprise [zone] area is.

The fourth thing is, I'd like to see, and I have a commitment from the staff here with the city, to work with my office...that we really begin a proactive process to work with the current identified business enterprise [zone] areas...

If you compare economic revitalization to the areas we're talking about tonight, compared to areas in districts 6,7,8 and 9, and even some in 2 and 1, clearly I don't believe that this is the intent of the program. However, I am willing to support it because we have worked with several businesses and we are working to have jobs...but I am very concerned that we don't do this again because I do not believe that this is the intent.

...And lastly, that no aditional [enterprise zone] expansions will be requested until we address what we have committed that we're already gonna do.

And anyone who wants to take a tour with me to see that what we've said we're gonna do we haven't done, I'd be happy to take you to see that...

...I am appreciative of the comments of Councilmember Batts. She's concerned about her district. A portion of my district is certainly in need of these kinds of enterprise determinations and the incentives that will increase business there. Redevelopment and enterprise districts are one of the most complicated and sometimes distorted uses, and I think it's an issue that before we reach conclusions prematurely that perhaps the Council itself ought to formulate our own policy. I know some of us are new on the Council and may not have as much experience and understanding of it, but I certainly understand exactly what the Councilmember is saying. And I'd be supportive of exploring this and formulating a policy as Councilman Colonna has said that makes sure that the good tidings get spread around to the entire city.

...What even more concerns me is a comment that was made that any Councilmember at any time can request a meeting about the economic vitality of their area. Let me tell you, I've had many of [such] meetings, way too many meetings. And I have yet to have anyone come back and say we're gonna be briniging in, we've talked to Ralphs and we're encouraging Ralphs to come to the 6th district; we've gone out and talked to Bank of America and we're gonna encourage them to come into the 6th district.

There's one thing about talking but there's another thing about doing. And we need to be honest here. There's a lot of activity going on with Queensway and many other projects but that same intensity is not duplicated throughout this entire city.

And that's why business enterprise [zone] areas have been set up. They're set up to attract companies to come to areas that they would not normally come to, and to give them the incentive to do so.

And so to play something else, I think, is really we're not being accurate in terms of what's happening...

...Correct me if I'm wrong or maybe you can just give me this, the intent of the enterprise zone was revitalization, am I correct?

City Manager Taboada: That's correct, to train people who would otherwise be unemployed and to revitalize the economy of the area.

Councilman Grabinski: And didn't that also include that if you bought some of the equipment, if you bought some of the supplies, you also received a discount if you bought them in the area?...

...Melanie Fallon, Director of Community Development: Yes, you are correct. It does include credits for capital improvements and machinery and the like.

Councilman Grabinski: So what it means is that a small business in another part of the city, the 9th district or the 8th. the 7th or the 6th or wherever, might not be able to get some of those credits if what we're doing is kind of leapfrogging to another part of the city because there's an advantage over there.

City Manager Taboada: They could get the same advantage if a company was willing and desirous of locating in another area.

Councilman Grabinski: But my point is, if you've got a zone right now that you've determined that you want to do this kind of business in, and you have not completed the task...if you look like you can move this any place in the city, I guarantee you I'd want to be in the area of the lowest crime, I'd want to be in the area of all the rest of those things, which would mean you'd be leaving out those areas that the enterprise zone was precisely put together for, high unemployment and all the rest of it. You follow where I'm going with this?

City Manager Taboada: I do, and I don't quarrel with that. But my only caveat is, that if we can attract, you know, a Northwest Airlines Reservation and Training Center to a specific location that is now not covered, and part of the incentive to get them there is designating this as a zone...and if those 350 jobs, because of the tax credit, require that individuals who are unemployed, underemployed or what have you, our first priority for those jobs, then you've accomplished an objective. You've brought jobs to the city and you've created employment opportunities which otherwise wouldn't be here.

But the corollary to that is that you're quite correct and Councilmember Richardson-Batts is making a very good argument that if you continue to do that without regard to some sort of an incentive program for bringing people into blighted, depressed neighborhoods that you're not really fulfilling the true spirit of the program. So there's valid arguments on both sides...

Councilman Grabinski: ...And then what could happen very easily is someone could challenge us and say, you're using state monies in a way that wasn't orignally intended and then this body would be in trouble for it because we didn't take enough time to review it all...I don't want look like I'm pickin' sides here, but clealy we need to make sure that we go with the intent of what the enterprise zone was.

...The intent of this [enterprise zone] program was for depressed, economic areas. And if you drive the three areas that we're proposing today, I don't think you're gonna be able to find someone to say this is a depressed, economic area.

And so what I'm saying is, I feel extremely uncomfortable and if I were to call the California Trade and Commerce Agency, I seriously doubt if we want the California Trade and Commerce Agency to come look at what we think we call a depressed, economic area...

I am willing...to support the two locations that we have identified businesses with jobs. However, the continuing of this is wrong. It's not the intention of the program. And I think we have to be real honest about this issue.

And now that we're going to the n-th detail, I have no problems with bringing the dirty laundry out. When Northwest Airlines came to Long Beach, and they said we want to move to Long Beach, I asked the question here of staff. Did we take them to these other identified enterprise [zone] areas and say, why don't you try here? The 6th district or the 7th district which is also right near the freeway.

But no, this company said we want to go here, and we will come here to Long Beach if you give us this credit that we know is available.

That is wrong. That is not the intent of this program for companies to tell us to give them credits to encourage them to move here...

Ms. Colette Marie McLaughlin: ...[I]f you want to put and subsidize rich corporations that are big, just 'cause they're big to go wherever they want, they're going to unfairly compete with our smaller businesses that actually damaged the small businesses that are in these places that shouldn't be developed.

I think that it is the most immoral...and fraudulent behavior that I think is an embarrassment, I'm glad it's so late 'cause I wouldn't want my children to see such things going on. And it makes me disgusted to even stand in this chamber to have you doing something with taxpayers' money that is purely, in my opinion, absolutely fraudulent and it damages the low income neighborhoods because now they're cut out of the deals., ..

[At the conclusion of her testimony, thanks Councilwoman Richardson-Batts] I'm very glad that you're protecting the people that you're supposed to represent.