Council approves Industrial Development Authority
The city of Santa Clarita made a big move toward providing local businesses with added incentives after a unanimous vote approving the creation of an Industrial Development Authority (IDA) Tuesday night.
The designation allows varying types of businesses new opportunities to access tax-exempt private activity bonds of up to $20 million dollars for projects located within City limits.
"A tax exempt bond status is huge for a local business because it significantly lowers the rate for them to borrow money," said Denise Lellan, administrative analyst for the City.
The bond proceeds can be put toward purchases of land, facilities or equipment.
According to Lellan, even businesses outside of what is typically referred to as "industrial" lines of work can take advantage. Businesses that manufacture, fabricate or assemble items for sale qualify, as do those which specialize in intellectual products such as design, copyrights or software.
The idea for the IDA came about after City staff was charged to find new ways to spark economic development.
"The City Council directed Economic Development staff to basically leave no stone unturned and look at every possible avenue to increase benefit to our community," Lellan said.
It isn't clear just yet how much impact the designation will have on our community, however Lellan believes it could be large.
"A $20 million dollar investment in our community is huge, through building expansion, new equipment, new processes, new products, more employees...it's an exponential growth."
The IDA still needs to be passed out of a second reading before Council and a vote is scheduled for February 23. Once the item clears that hurtle, the designation should become effective 30 days later.