3:58pm | Two councilmembers have created an item for the next City Council meeting that aims to create a job-creation strategy by asking City management to review whether or not the city is business friendly.
Councilmembers Patrick O’Donnell (4th District) and James Johnson (7th District) will ask the review to look at city fees and efforts to support local business. The city of Long Beach currently holds a 14.2% unemployment rate. Last year, the Los Angeles County Economic Development Corporation (LAEDC) named Long Beach the Most Business Friendly City in the county, largely based on enterprise zones that reduced taxes and fees for businesses.
“Long Beach needs a Jobs Strategy,” said O’Donnell. “We need to focus on creating and monitoring City policies that support an atmosphere where small business can survive, thrive, and hire. Small business is the backbone of our economy and we need to ensure that City Hall is listening to the business community.”
The state of California is generally seen as non-business friendly based on the perception of extensive regulations and fees, but a recent Los Angeles Times report presented evidence to the contrary. The article shows that California takes about the national average in taxes from businesses.
The councilmembers have singled out the Conditional Use Permit process, which requires fees to open certain new businesses. They will also ask City management to examine how other cities are spurring economic development and report back to the City Council with their findings. Ideas laid out in a press release include micro-funding programs, business incubators and stronger ties to local universities.
“In this tough economy, Long Beach should do everything possible to encourage job creation,” Johnson said. “I look forward to discussing with my colleagues how we can encourage business retention and expansion that results in jobs for our residents.”
But employment has been hit hard in Long Beach, which over the past few months has lost major employment programs at Boeing and several businesses have closed, particularly at the Pike shopping center downtown.