Cali Baja Mega-Region Regional Asset Map

Transcription

Cali Baja Mega-Region
Regional Asset Map
Development Management Group, Inc
National University System Institute for Policy Research
AXIS Strategic Intelligence Center
Crossborder Group, Inc.
Development Management Group, Inc.
TABLE OF CONTENTS
1. EXECUTIVE SUMMARY
2. AGGREGATED DATA ON THE MEGA-REGION
3. LARGE FIRMS LEVERAGING MEGA-REGION ASSETS
4. SAN DIEGO COUNTY’S MEGA-REGION PROFILE
5. BAJA’S MEGA-REGION PROFILE
6. IMPERIAL COUNTY’S MEGA-REGION PROFILE
SECTION I
EXECUTIVE SUMMARY
An Introduction to the San Diego -Baja California-Imperial Mega-Region
San Diego, Imperial County, and Baja California share more than common borders. Their
economic outlooks are linked, although there often seems to exist more synergistic
potential than actual connections. They share a significant population and workforce
that, while having differences and contrasts, share many of the same global challenges
and opportunities. In fact, some of those differences actually may create regional
opportunities. This Regional Asset Map attempts for the first time to bring together
current and comparative data about this unique binational area, to provide a tool for
thoughtful economic development planning which respects and leverages these
differences to achieved shared prosperity.
What is the Mega-Region?
The combined population of the three areas
that make up the Mega-Region totals 6.5
million by far the largest population along the
U.S.-Mexican border. The combined
economic output of the three areas totals $205
billion, nearing the gross domestic product
(GDP) of Hong Kong, and larger than Israel,
Malaysia, Czech Republic, Egypt, Singapore,
Nigeria, Pakistan, or Chile. If counted as a
Metropolitan Statistical Area (MSA), it would
make the Mega Region the 5th largest in the
U.S., behind only New York, Los Angeles,
Chicago, and Dallas-Fort Worth.
GROSS DOMESTIC PRODUCTS, 2009
Rank Countries
(millions)
35 Colombia
$230,844
36 Portugal
227,676
37 Ireland
227,193
38 Hong Kong SAR, China
215,355
MEGA-REGION
205,286
39 Israel
194,790
40 Malaysia
191,601
41 Czech Republic
190,274
42 Egypt, Arab Rep.
188,334
43 Singapore
182,232
44 Nigeria
168,994
SAN DIEGO
168,770
45 Pakistan
166,545
46 Chile
163,670
47 Romania
161,110
48 Philippines
160,476
49 Kuwait
148,024
50 Algeria
140,577
51 Hungary
128,964
52 Peru
126,734
53 New Zealand
125,160
The Mega-Region, especially in respect to
north-south economic flows across the San
Diego-Tijuana and Imperial-Mexicali
corridors, represents a globally unique
opportunity to leverage comparative attributes
to achieve competitive advantages. Less
pronounced, but growing in importance, are
capital and potentially energy flows along East-West axis between Imperial Valley, one
of the most promising areas for the development of renewal energy sources in North
America and research and development hubs closer to the coast.
Mega-Region geography
The international boundary separating San Diego and Imperial counties and Baja
California runs from the Pacific Ocean on the west in a straight line 147 miles (236
kilometers) gradually rising north to the Colorado River on the east. The topography
rising from west to east consists of a number of elements. Marine terraces range from sea
level to about 1,200 feet (366 meters) above sea level. These are dissected by canyon
streams forming a pattern of flat mesas separated by winding canyons. The Peninsular
Range runs roughly north to south and is uplifted on the east, sloping to the west.
Immediately east of the mountain range is the Salton Trough, a northward extension of
the Gulf of California that includes most of Imperial County, as well as the Mexican city
of Mexicali. This low-lying desert area includes sections of Imperial County that are
below sea level including a portion of the Salton Sea.
The complicated geology and topography of the region is complemented by a variety of
microclimates and extremely diverse flora and fauna. The effect of the ocean produces
moderate temperatures on the coast year round and further inland. At higher elevations
the differences in seasonal and daily temperatures increases. Extreme summer
temperatures regularly exceed 100 degrees Fahrenheit (38 degrees Celsius) characterizing
the desert portion of the border Mega-region. Precipitation tends to occur in a series of
storms from October through May, and varies significantly throughout the region. Along
the coast, rainfall annually averages about ten inches (25 centimeters) and increases to
about twenty (51 centimeters) in the foothills. The higher elevations above 4,600 feet
(1,402 meters) receive as much as 38 inches (97 centimeters), while the desert areas
receive only a few inches per year.
Imperial County also experiences a large number of days of sunshine, unique geo-thermal
attributes, and a significant number of sites that have potential to generate wind derived
energy resource. The combination of research and development expertise in San Diego
with the abundance of natural resources and relatively inexpensive land suggests
significant economic opportunities and synergies between the two areas that are relatively
unique in the United States.
Population by Age, July 2009
Population Dynamics
Mega
San
Baja
Age
Region
Diego
Imperial California
Countywide
6,513,641 3,173,407 174,458 3,165,776
Under 18
1,817,619 773,614
52,005
992,000
18-64
4,162,332 2,033,862
89,117 2,039,353
65+
533,690 365,931
33,336
134,423
Percent of Total
Countywide
100.0%
100.0% 100.0%
100.0%
Under 18
27.9%
24.4%
29.8%
31.3%
18-64
63.9%
64.1%
51.1%
64.4%
65+
8.2%
11.5%
19.1%
4.2%
The population of the Mega
Region is more than 6 and
one-half million people with
a workforce in excess of 4.1
million. With extensive
intra-Mega Regional
commuting patterns, if
entirely within the boundaries of the United States it would meet the definition of a
Metropolitan Statistical Area and would be the 5th largest in the country.
There are important differences among the population of San Diego, Northern Baja
California, and Imperial County. For example, Baja California’s population is skewed
toward younger ages, with a high proportion under 18 years of age and much smaller
proportion 65 years or older. San Diego has nearly the same proportion (64 percent) of
18-64 year olds as Baja California, but fewer residents under 18 year olds, and a much
higher number of 65 and older residents. Over the long term, these demographics should
increase pressure to meet demand generated by residents of San Diego county with
workers from other parts of the Mega-Region. Imperial County population skews both
younger and older with little more than one-half (51 percent) 18-64 and a much higher
percentage of 65+ year olds.
San Diego and Baja California are largely urbanized communities. More than 75 percent
of Baja California’s population lives in three major cities, Tijuana, Mexicali, and
Ensenada. Tijuana’s population grew rapidly over recent decades reaching 1.6 million
residents in 2009 and actually now surpasses the City of San Diego population. Mexicali,
Baja California’s capital city, has a population of 926,000. Ensenada’s population is
455,700. Other municipalities in the greater-Baja region include Tecate (110,200) and
Playas de Rosarito (91,700). 1 The city of San Diego is the primary city in the County of
San Diego with 1.38 million residents. Seventeen additional incorporated cities are all
located near the coast in the western third of the county led by Chula Vista (237,600),
Oceanside (183,100), and Escondido (147,500).
In contrast, the Imperial Valley is much less urban, with its population centered in the
communities of Calexico (27,109), Brawley (22,052), and the center of the county
government, El Centro (37,835). This difference, between the urbanized west and the
less densely populated east provides firms and economic clusters with the opportunity to
leverage both the advantages found in urbanized and denser communities as well as
proximity to relatively inexpensive raw land that can be required for certain kinds of
development.
Economic Contrasts
The Mega-region border area is characterized by significant economic contrasts. Indeed,
it is these contrasts which provide the greatest opportunities (and challenges) for
leveraging Mega-Region assets to achieve global competitive advantage. San Diego is
one of the wealthiest regions of the United States. The Imperial Valley, although in a
period of economic growth, has persistent pockets of poverty. As noted above, Imperial
Valley has a large amount of land suitable for agriculture, owned by both private parties
as well as significant acreage under the control of the federal government through the
Bureau of Land Management (BLM).
While San Diego County is relatively wealthy and Imperial County relatively poor, both
are wealthier than their counterparts across the border in Mexico. The economic
distinctions are noticeable by San Diego’s estimated 2009 GDP of $169 billion, while
Imperial County’s is about $4.4 billion. Baja California’s 2008 GDP (the latest year
currently available) is approximately $31.4 billion (U.S. dollars). On a per capita basis,
1
Consejo Nacional de Población/National Population Council (CONAPO), www.conapo.gob.mx.
San Diego’s GDP is $53,200 per person, compared to Imperial County’s $25,000, and
Baja California’s between $10,200 and $14,000. The differences between per-capita
income, cost of living, and land availability in communities closely proximate to one
another creates the key competitive advantage for firms seeking to leverage Mega-Region
assets.
Over recent years the three region’s economies have, at the macro economic level, been
driven by different external factors. San Diego’s economy has a long tradition of military
and defense driven industries in aerospace, electronic and shipbuilding. Largely as an
outgrowth of military research and development, combined with the region’s university
and research centers, San Diego’s economy has diversified into high-value technology
innovation endeavors in telecommunications, consumer electronics, computers and
software, medical, scientific, and oceanographic research. In recent years this diversity
of high-tech employment has served as a significant buffer for San Diego against
downturn in global demand in particular sectors. It has also made the region more
dependent upon macro economic forces and public policies that encourage or hinder the
flow of public and private dollars to regions that support research and development. In
contrast, the region has become less economically dependent upon various acquisition
decisions of the U.S. military.
The Baja California economy is relatively isolated from the rest of Mexico’s national
economy and heavily influenced by aggregate demand generated by the U.S. market.
Over the past several decades, the Baja California economy was significantly stimulated
by expansion of tariff-free export oriented manufacturing (the maquiladora program).
With the implementation of the North American Free Trade Agreement (NAFTA) in
1994, economic linkages across the Mega-Region border area grew and intensified. The
in-bond and assembly plants in both Tijuana and Mexicali mainly manufacturing
products for export developed through a strategy of manufacturing clusters focused upon
the strengths of qualified labor, abundant energy supplies, pro-business environment, and
location near the California border. But throughout the study we have observed that
Tijuana and Mexicali firms partner with a host of US and international companies located
outside the greater San Diego area. While cross border economic relationships are
important, Baja’s partners have grown much more diverse over the past decade, reflecting
(as we note below) declining importance of proximity as the determinate factor in
understanding intra and inter-firm economic transactions.
Although Imperial County is a desert, with high temperatures and low rainfall, the area
largely developed as an agriculture economy. This was possible because of irrigation
water wholly supplied from the Colorado River via the All-American Canal. With
imported water and long growing seasons, two crop cycles are available each year, and
the Imperial Valley is a major source for winter fruits and vegetables, cotton, and grain
for U.S. and international markets. Thus at the marco-economic level, the key drivers for
Imperial Valley include the price and availability of water, commodity prices for the
crops, and the regulatory environment faced by modern U.S. agricultural producers.
In recent years, Imperial County has also become a hotbed for renewable energy projects,
both solar and geothermal, driven in part by California's mandate to generate 20 percent
of its power from renewable sources by the end of 2010. With the Valley’s excellent sun
resources proximity to large population centers on the coast, and large tracts of otherwise
unusable desert land, the area is highly suitable for renewable energy generation. Some of
these renewable energy opportunities are also shared with wind-rich Baja California,
where several wind energy projects are already in development. Critical factors
influencing the prospect of this growth include the development of adequate east-west
transmission capacity and government policies that impact the aggregate demand for
electricity generated from sources other than fossil fuels.
There are other important economic synergies. The year-round mild climate with
proximity to the ocean has meant that tourism plays an important role in both Baja
California and San Diego. Though cross-border tourism has experienced recent set
backs, the subset of visitors that visit both Northern Baja and San Diego has significant
economic value to the Mega-Region. Imperial Valley in recent years has seen an
increase in homebuilding activity, with housing marketed to San Diego commuters.
Several key crops and farmed goods from both Imperial Valley and Baja California are
also transported through San Diego port facilities along with certain key agricultural
inputs.
Most notably, for more than 40 years San Diego firms have partnered with firms on the
other side of the US-Mexico border – either as subsidiaries to parent companies or
through contractual relationships between separate firms. As shown in the table on
section three, we identified at least 33 major Mega-Region firms that, together, employ
well over 50,000 mega-region residents. Undoubtedly many more work for firms who do
not have formal corporate structures that cross the border but have critical customers with
independent firms located on either side of the international boundary.
Labor Force
The Mega-Region together employs 2,870,000 workers. Employment in San Diego
County (1,406,000) and Baja California (1,409,000) are nearly equal in number, while
Imperial County employs another 54,700.
As of 2010, employment in the industrial sector in Baja California was 254,000.
Maquiladora employment lessened in recent years as U.S. demand for products fell and
growing competition from lower cost production regions such as China. As of 2010,
2150,000 workers are employed in the export manufacturing (maquiladora) sector of Baja
California’s economy.
Currently, the average wage of a maquiladora employee in Baja California ranges from
$2 to $3 (U.S.) per hour. The minimum wage in Baja California, designated by the
Mexican government in the highest zone, is approximately $0.57 per hour.
The economy of the Mega-Region faces a number of challenges. The recession impacting
the U.S. has greater affects on California. Both San Diego and Imperial Counties are
experiencing significantly elevated unemployment rates. Unemployment in San Diego
remains above 10 percent in 2010, slightly higher than the U.S. rate overall, but two
percentage points lower than the statewide average in California. Imperial County’s
unemployment rate remains starkly higher averaging 28.2 percent in 2009. Baja
California’s unemployment rate is officially listed at 5.6 percent in Q2 2010.
Nearly two-thirds (63.3 percent) of Baja California’s adult population (25 years and over)
have less than a high school education. On the other hand, one in six (16.6 percent) adults
in Baja has a college degree. This is actually a higher proportion than in Imperial County,
where only one in seven (13.9 percent) have a college degree. San Diego’s proportion of
college educated residents is much higher at 42.1 percent, leaving the overall average for
the Mega-Region at 26.5 percent.
Education level of adult population
Population 25 years and over
Less than high school
High school graduate (includes equivalency)
Some college, no degree
Associate's degree
Bachelor's (4-year) degree
Graduate school
Percent of Total
Population 25 years and over
Less than high school
High school graduate (includes equivalency)
Associate's degree
Bachelor's (4-year) degree
Graduate school
MegaSan
Baja
Region
Diego
Imperial California
4,393,204 1,982,354
53,900 2,356,950
1,809,843 295,145
23,348 1,491,350
874,327 389,851
10,156 474,320
475,004 462,111
12,893
-226,652 161,238
2,564
62,850
738,248 419,731
3,167 315,350
269,130 254,278
1,772
13,080
100.0%
41.2%
19.9%
10.8%
5.2%
16.8%
6.1%
100.0%
14.9%
19.7%
23.3%
8.1%
21.2%
12.8%
100.0%
43.3%
18.8%
23.9%
4.8%
5.9%
3.3%
100.0%
63.3%
20.1%
-2.7%
13.4%
0.6%
The Mega-region: Present and Future
The development of an economic development program for the Cali-Baja Mega-Region
requires navigating through two cross cutting global economic pressures.
On the one hand, the region has a significant number of differentiated economic assets.
These include:
1. Significant differences between wages and the cost of living between
communities north and south of the International Border;
2. The geographic proximity to San Diego’s R&D hubs to manufacturing centers in
Baja California and large contiguous tracts of vacant land in the Imperial Valley;
3. Significant differences in land costs, allowing firms in need of physical plants to
house lower margin activities in close proximity to other components of their firm
which conduct higher value added activities;
4. Renewable energy resources in the Imperial Valley, Baja California, and some
areas of San Diego County;
5. Relatively robust infrastructure connections internal to the Mega-Region
including six border crossings, five Interstate freeways, several dozen state
highways, two major International airports, rail links, and two specialized
maritime port facilities;
6. Infrastructure connections to the rest of the North American market and the ability
to access global trade infrastructure of the greater Los Angeles Basin.
However, on the other hand, the Mega-region needs to also confront the fact that
geographic proximity may provide less competitive advantage than in the past. The
world is both flatter AND smaller. Lower transportation and transaction costs have
radically transformed global supply chains. This is doubly true for products where the
cost of shipping is relatively low compared to the value added during a particular stage of
a product’s life cycle.
Finally, one additional and oft overlooked aspect of the Mega-region is how the
economies of Baja California, San Diego, and Imperial benefit from being part of a larger
internal market. The San Diego Association of Governments (SANDAG) estimated that
more than 60 million people annually cross through the Baja California/San
Diego/Imperial Counties land ports of entry. There are several hundred thousand trips
annually between Imperial and San Diego counties. While comprehensive data does not
currently exist to allow one to precisely quantify the economic value of this trade, it is
clear that the Mega-region would be demonstrable poorer and less economically vibrant
without the internal trade flows generated by the demand generated by these millions of
border crossing workers and consumers.
SECTION II
SELECTED AGGREGATED DATA
ON THE MEGA REGION OF KEY CONCERN TO
SITE SELECTION COMMUNITY
California Border Mega-Region
(San Diego, CA * Baja, California Mexico * Imperial Valley, CA)
We believe the following are the top issues of concern to site selectors engaged in a first
cut through a web site or similar materials when try to ascertain information about a
region’s economic competiveness. Were noted we have aggregated the data found in
subsequent sections of the report. In some cases we feel that aggregation would mask
important competitive advantages enjoyed by the Mega-Region or that the individual
areas are so distinct and different that aggregation would present a misleading data point
that would ultimately detract from the Mega-Region’s marketing efforts.
Education Levels: Percentage of Working Age Adults Educational Attainment
Mega-Region Bachelor's Degree
Mega-Region Graduate/Professional Degree:
17%
6%
SD-Bachelor’s Degree:
SD-Graduate/Professional Degree:
IV-Bachelor’s Degree:
IV-Graduate/Professional Degree:
BAJA-Bachelor’s Degree:
BAJA-Graduate/Professional Degree:
21%
13%
4%
3%
14%
1%
Core Labor Force/Age/Percentage
Mega-Region
3,476,297
SD- Age 18-64:
BAJA-Total Employment:
IV-Age 18-64:
1,966,081 (63% of total population)
1,409,129* (60% of total population)
101,087 (60% of total population)
Average Wages
SD (2009) Median Household Income:
SD (2009) Average Annual Wage:
IV (2009) Median Household Income:
IV (2009) Per Capita Income:
BAJA (2009) Average Wages (Export Company):
$72,963
$49,439
$37,459
$15,322
$9,859
Average Utility Costs (Commercial Customers)
Blended Average
15.2 cents per kWh
SD-Small Commercial:
SD-Medium/Large Commercial:
BAJA-All Commercial:
IV-Small Commercial:
IV-Medium/Large Commercial:
18.5 cents per kWh
15.4 cents per kWh
13.0 cents per kWh
17.16 cents per kWh
14.34 cents per kWh
Home Prices (Median)
SD-2009:
IV-2009:
$310,000
$112,000
(We believe a weighted average would be less than meaningful given the different kinds
of housing stock available in Baja)
Commercial Land Prices (Per Acre)
SD-Countywide:
SD-Carlsbad:
SD-Otay Mesa:
IV-Countywide:
BAJA:
$670,960
$727,042
$236,911
$174,000
$566,000
Commercial/Industrial Lease Rates (Per Square Foot)
IV (Blended A&B):
BAJA (Class A):
BAJA (Class B):
San Diego (Office blended A&B)
San Diego Industrial (NNN)
.50
.40
.30
2.52
.82
(We believe that the two proceeding data points should not be aggregated since
differentials in land costs in immediately proximate submarkets is a key competitive
advantage for the Mega-Region)
Cluster Industries with Greatest Presence
San Diego
 Healthcare/Biotechnologies
 Aerospace/Defense/Shipbuilding/Ship Repair
 Telecommunications/Electronics/Software
Baja




Consumer Electronics Manufacturing/Assembly
Aerospace Accessories Assembly
Medical Device
Automotive Oriented Manufacturing
Imperial Valley
 Agriculture
 Agriculture Support
 Transportation/Logistics (in Support of Baja, California and Agriculture)
 Customs House Brokers (in Support of Baja, California)
Air Service
San Diego:
Approx. Daily Flights: 545 with 44 non-stop Destinations
Major Destinations Domestic: San Francisco; Sacramento; Oakland; San Jose; Las Vegas
Major Destinations International: Mexico; Canada
Baja:
2009 3.9 million passengers
Major Destinations in Mexico served: Mexico City, Monterrey, Guadalajara, Chihuahua
Major Destinations International: Tokyo, Shanghai
Imperial County:
Approx. Daily Flights: 2 Commercial Flights (Provided through SkyWest)
Major Destinations Domestic: 1-Daily Los Angeles, 1-Daily Yuma
Major Destinations International: None (Commercial)
SECTION III
GEO-SPANNING
MEGA-REGION COMPANIES
GeoSpanners Chart
#
1
2
Company
BC Manufacturing (San Diego)
C&D ZODIAC
Aerospace/Manufacturing
3
CareFusion
Medical Device
4
5
6
7
8
9
10
11
12
Chromalloy
Product (if known)
Manufacturing
Aerospace manufacturing
Shipping/Carrier
Defense Manufacturing
Ink Jet Recycler (Cartridge)
Short/Long Haul Trucking
Utility Grade Electrical Supplier
Medical Devile
Agriculture Fertilizer
13
Cobham Sensor Systems
Conway Trucking
CUBIC
Data Products/Clover Technologies
De Anda Trucking
Desmon Power Products
DJ Orthopedic
Dune Company
Eaton Aerospace
14
FedEx
Shipping/Carrier
15
16
Goodrich Aerospace
HST Automotive
Hyundai Translead
Aerospace
Automotive
17
18
19
Presense
Imperial Valley
X
X
X
X
X
Automotive
Automotive
Advanced Manufacturing/Clean Tech
20
Krystal
Kyocera
Lancer Orthodontics
21
McMillan Homes
Home Builder
22
Nasco-General Dynamics
Nissan Design America
Aerospace/Shipyard
Bottled Drinks
25
Novamex
Nypro
26
27
28
X
X
Medical Device
Employment
Imperial Valley
Baja
X
X
San Diego
X
X
X
X
http://www.carefusion.com/
X
X
http://www.chromalloy.com/
X
X
X
X
X
X
X
X
X
X
X
X
http://www.cobham.com/
http://www.con-way.com
http://www.cubic.com/
http://www.clovertech.com/index.asp
http://www.deandatruckingllc.com.mx/
X
http://www.djoglobal.com/
X
http://www.eaton.com/EatonCom/Markets/Aerospace/index.htm
X
X
X
X
X
X
X
X
www.fedex.com
http://www.goodrich.com/
X
X
X
X
X
X
X
BAJA
SD
Website
http://www.bcmanufacturing.com/about.html
http://www.cdzodiac.com/
http://www.hstintl.com
http://www.translead.com/
NA
http://global.kyocera.com/
http://www.lancerortho.com/
www.mcmillan.com
http://www.nassco.com/
X
X
X
X
Contract Manufacturing
X
X
X
www.novamex.com
http://www.nypro.com/
Orthofix / Breg
Medical Device
X
X
http://www.orthofix.com/
Qualcomm
X
X
http://www.qualcomm.com/
SeaCON Brantner & Associates
Telecommunications/SemiConductors
X
X
29
Sempra
Energy/Utility
X
X
X
http://www.seaconbrantner.com
http://www.sempra.com/
30
Teleplan
Ink Jet Recycler (Cartridge)
X
X
31
32
33
Triumph Insulation Systems
UPS
Valuetech
Aerospace Supplier
Shipping/Carrier
Cell Phone Recycler
X
X
X
X
X
X
23
24
Automotive
X
http://www.nissan-global.com/EN/DESIGN/BASE/
http://www.teleplan.com/
X
http://www.triumphgroup.com/companies/triumph-insulation-systems
www.ups.com
SECTION IV
SAN DIEGO’S MEGA-REGION PROFILE
SAN DIEGO’S MEGA REGION PROFILE
1. Education levels:
San Diego’s adult population, 25 years and above, totals 1.9 million. The County has a
relative highly educated population with more than one-third (34%) of adults (25 years
and older) having at least a 4-year college degree. Only 15% have not graduated from
high school.
Percent of adults population (2008) with less than high school (HS) degree 284,632
(15%); HS graduate (including equivalency) 361,599 (19%), some college 813,189
(43%), 4 year degree 403,851 (21%), graduate school or professional degree 246,249
(13%).
Education levels
Population 25+ years
Less than 9th grade
9th to 12th grade, no diploma
High school graduate (includes equiva
Associate's degree
Bachelor's degree
Graduate or professional degree
2008
Total
1,902,516
139,606
145,026
361,599
451,590
154,595
403,851
246,249
Percent
of Total
100%
7%
8%
19%
24%
8%
21%
13%
Source: American Community
Survey, U.S. Census Bureau
2010e
Percent
Total
of Total
1,982,354
100%
145,183
7%
149,962
8%
389,851
20%
462,111
23%
161,238
8%
419,731
21%
254,278
13%
Source: Claritas
2. Current population figures:
San Diego County’s population is skewing both older and younger. The older population
is increasing as large numbers of baby boomers grow older and live longer. However, the
influx of international migrants, who tend to be younger and have more children, is also
increasing the numbers of younger, under 18-year olds.
Current (2009) population figures, disaggregated into at least under 18; 18-64; 65+.
(773,614 under 18; 2,033,862 between 18 and 64; 365,931 65+)
Population
Countywide
Under 18
18-64
65+
2008
2,887,111
743,747
1,813,284
330,080
Percent
of Total
100%
26%
63%
11%
Percent
2009
of Total
3,173,407
100%
773,614
24%
2,033,862
64%
365,931
12%
Source: American Community SuSource: SANDAG
2010e
3,109,270
777,258
1,966,081
365,931
Percent
of Total
100%
25%
63%
12%
Source: Claritas
3. Ten largest employers and estimated firm employment within following sectors:
a. Cleantech*:
1) San Diego Gas & Electric (energy generation, infrastructure) 5,067 employees; 2)
SAIC (energy generation, infrastructure, recycling & waste) 4,160; 3) General Atomics
(energy generation, infrastructure, recycling & waste services) 3,700; 4) L3
Communications/Pulse Sciences (energy storage) 2,600; 5) Solar Turbines (energy
generation) 2,500; 6) Kyocera Solar (energy generation) 1,200; 7) 3E Company
(manufacturing/industrial, recycling & waste services) 352 employees; 8) Maxwell
Technologies (energy storage) 168; 9) Teledyne RD Instruments (water & wastewater)
150; 10) Sanyo Energy (energy storage) 110.
Source: CleanTECH San Diego
*Employment is not necessarily all directly
cleantech related.
a. Cleantech
Employees* Type of work
3E Company
352 Manufacturing/Industrial, Recycling & Waste
General Atomics
3,700 Energy Generation, Infrastructure, Recycling & Waste
Kyocera Solar
1,200 Energy Generation
L3 Communications, Pulse Sciences
2,600 Energy Storage
Maxwell Technologies
168 Energy Storage
SAIC
4,160 Energy Generation, Infrastructure, Recycling & Waste
San Diego Gas & Electric (SDG&E)
5,067 Energy Generation, Infrastructure
Sanyo Energy
110 Energy Storage
Solar Turbines
2,500 Energy Generation
Teledyne RD Instruments
150 Water & Wastewater
Source: CleanTECH San Diego
*Not necessarily in cleantech only.
b. Applied biotech:
1) Amylin Phamaceuticals Inc, 1,900 employees; 2) Invitrogen Corp, 1,200; 3) Illumina
Inc. 1,135; 4) Gen-Probe Inc. 900; 5) Biosite 500-999; 6) Pfizer La Jolla 882; 7)
Genentech Inc. 480; 8) Prometheus Laboratories Inc. 405; 9) Isis Pharmaceuticals Inc.
350; 10) Santarus Inc. 337.
Source: San Diego Business Journal - Book of Lists 2009
b. Applied biotech
1 Amylin Phamaceuticals Inc
2 Invitrogen Corp
3 Illumina Inc.
4 Gen-Probe Inc.
5 Biosite
6 Pfizer La Jolla
7 Genentech Inc.
8 Prometheus Laboratories Inc.
9 Isis Pharmaceuticals inc.
10 Santarus Inc.
Employees
1,900
1,200
1,135
900
500-999 Surgical/medical instruments
882
480
405
350
337
Ca-EDD/infogroup
c. Specialized manufacturing:
1) General Dynamics Nassco (shipbuilding and repair) 4,700 employees; 2) General
Atomics Aeronautical Systems Inc. (unmanned aircraft systems) 2,397; 3) Goodrich
Corp. Aerostructures Division (aerospace) 2,025; 4) Cubic Corporation (defense
electronics/mass transit fare collection systems) 1,203; 5) Invitrogen Corp
(biotechnology) 1,200; 6) Kyocera Wireless Corp (wireless phones/solar energy
products) 1,180; 7) ViaSat Incorporated (satellite/digital communications) 1,159;
8) Gen-Probe Inc. (molecular diagnostics) 900; 9) Biosite (surgical/medical instruments)
500-999; 10) Cohu Inc. (semidconductor) 820.
c. Specialized manufacturing
Employees
1 General Dynamics Nassco
4,700 Shipbuilding and repair
2 General Atomics Aeronatuical Syste
2,397 Unmanned aircraft systems
3 Goodrich Corp. Aerostructures Divis
2,025 Aerospace
4 Cubic Corp.
1,203 Defense electronics/mass transit fare collection systems
5 Invitrogen Corp
1,200 Biotechnology
6 Kyocera Wireless Corp
1,180 Wireless phones/solar energy products
7 ViaSat Inco
1,159 Satellite/digital communications
8 Gen-Probe Inc.
900 Molecular diagnostics
Ca-EDD/infogroup
9 Biosite
500-999 Surgical/medical instruments
10 Cohu Inc.
820 Semidconductor
d. Logistics industries Process & Logistics Consulting Services (NAICS code: 541614)
1) Booz Allen Hamilton, 500-999; 2) Iris Group Inc, 250-499; 2) Fair Isaac 250-499; 4)
MAP, 100-249; 4) Watson Wyatt Worldwide, 100-249; 4) Ken Blanchard Co Inc 100249; 4) Custom Business Solutions, 100-249; 4) U S Bank Business Banking, 100-249;
4) Ramfan Inc, 100-249; 10) RSM Mc Gladrey Inc, 50-99; 10) By Referral Only, 50-99;
10) Packard Management Group, 50-99; 10) Arianne Consulting, 50-99; 10) Eastridge
Group, 50-99; 10) Medsphere Systems Corp, 50-99; 10) Specialcare, 50-99; 10) M C
Consultants, 50-99.
Source: California Employment Development Department, infogroup.
d. Logistics industries*
1 Booz Allen Hamilton
2 Iris Group Inc
2 Fair Isaac
4 MAP
4 Watson Wyatt Worldwide
4 Ken Blanchard Co Inc
4 Custom Business Solutions
4 U S Bank Business Banking
4 Ramfan Inc
10 RSM Mc Gladrey Inc
10 By Referral Only
10 Packard Management Group
10 Arianne Consulting
10 Eastridge Group
10 Medsphere Systems Corp
10 Specialcare
10 M C Consultants
Employees
500-999
250-499
250-499
100-249
100-249
100-249
100-249
100-249
100-249
50-99
50-99
50-99
50-99
50-99
50-99
50-99
50-99
*Process & Logistics Consulting Services (NAICS code: 541614)
Source: California Employment Development Department, infogroup .
4. Average wages for technology industry clusters (as defined in the NUSIPR
technology cluster employment report, 4th quarter 2009).
The overall average annual wage of a payroll job in San Diego is $49,400. Among San
Diego’s technology industry companies, the average annual average wage is 82 percent
higher at $89,800. Technology companies represent only 6.1 percent of San Diego
establishments or employers, but employment in the businesses represents 11.2 percent of
all payroll jobs, and accounts for 25.6 percent of all payrolls.
TOTAL Technology average ($89,800); Biomedical Products ($69,700); Biotechnology
& Pharmaceutical ($88,700); Communications Equip Manf ($108,800); Computer &
Electronics ($92,500); Defense and Transportation ($82,900); Environmental Technology
($80,800); Recreational Goods ($62,500); Software ($87,200); Other Technical
Consulting Services ($82,600).
Source: National University System Institute for Policy Research, based upon California
Employment Development Department "Quarterly Census of Employment and Wages"
(QCEW).
4. Technology cluster average wages
Industry
Annual average*
TOTAL Technology
$89,800
Biomedical Products
69,700
Biotechnology & Pharmaceutical
88,700
Communications Equip Manf
108,800
Computer & Electronics
92,500
Defense and Transportation
82,900
Environmental Technology
80,800
Recreational Goods
62,500
Software
87,200
Other Technical Consulting Services
82,600
*3rd quarter 2009.
5. Summary of chief benefits in the California Enterprise Zone program:
• Sales tax credit for new manufacturing or production equipment
• Tax credits up to 50% of wages for qualified employees
• Net operating losses may be fully carried forward
• Incentives to lenders providing credit to firms located in Enterprise Zones
• Local jurisdictions offer permit streamlining and reduction of certain development
fees
6. Summary of benefits in the California Foreign Trade Zone program:
• Opportunity to import and re-export goods without paying US Custom Duties
• Opportunity to Import materials and sell finished goods to US market paying lowest
applicable duty rate (inverted tariff)
• Custom duties and federal excise taxes may be deferred in certain instances
• Access to streamline custom procedures
7. Geographic parameters for the California Enterprise Zone areas located in San
Diego County.
8. Geographic parameters for the California Foreign Trade Zone Program.
9. Interstate freeways in San Diego County
Annual traffic counts crossing county borders:
The Interstate-5 north/south bound crossing with Orange County numbered 49,640,000 in
2009, while the Interstate-15 north/south crossing with Riverside County totaled
47,085,000. The Interstate-8 east/west crossing with Imperial County was 5,110,000
Source: CalTrans
International border crossings
Border Crossings
Southbound & Westbound Traffic Flow
2009 Change
2008
46,154,817 42,987,846 -6.9%
55,942,054
54,220,503
-3.1%
Source: Department of Homeland Security, compiled by San Diego Convention & Visitors Bureau
The San Ysidro border crossing (San Diego–Tijuana) is the busiest in the world. In 2009,
nearly 43 million crossed through the port. There are 24 vehicle border crossing lanes at
the Port of Entry into the United States and 6 or 8 lanes into Mexico from San Ysidro.
The great majority of border crossers into the United States are both Mexican and U.S.
citizens commuting from Tijuana to jobs in the San Diego area. Traffic from San Diego
to Tijuana is also substantial seeking entertainment in Tijuana or purchasing generally
more affordable services (vehicle repairs, hair and beauty services, medical and dental)
and goods.
Crossing times can be notoriously slow at San Ysidro, particularly for those entering the
U.S. in cars. Crossing into Mexico also has many delays, especially in the evenings. For
this reason many cross by foot, which is frequently much faster than crossing by vehicle.
Some daily workers own a car in each country, and store them in one of the large parking
lots located near the border crossing, or use the respective public transportation systems
of both cities. Both systems have a bus station built solely to serve border crossers, while
the San Diego Trolley runs from the border to downtown San Diego.
The San Ysidro port of entry serves non-commercial traffic, while Otay Mesa handles
both industrial and non-commercial traffic.
10. Major rail links in San Diego County
Amtrak Pacific Surfliner - 350-mile
Amtrak passenger train route serving
communities on the coast of Southern
California between San Diego and
San Luis Obispo with stops in Los
Angeles.
Metrolink - Commuter rail network
connecting major cities in Southern
California including San Diego via
transfers at Oceanside, Anaheim, Los
Angeles, and Riverside. Does not
serve the immediate San Diego area.
Sprinter - Light rail line between
Oceanside and Escondido using 22mile long trackage of the San Diego
Northern Railroad, including stops in
Oceanside (western terminus), Vista,
San Marcos, and Escondido (eastern
terminus).
Coaster- Commuter rail line connects the
North County area to the Metro area.
Most riders are commuters who live
in North County and work downtown
or in the city centre.
San Diego Trolley - Light rail line serves the
metropolitan area including Downtown San
Diego, East County, South Bay, and San
Ysidro.
San Diego & Arizona Eastern (SD&AE) Railway Company
- SD&AE utilizes approximately 108 miles of the original 146.4-mile San Diego &
Arizona Railway route originating in San Diego and terminating in the Imperial County
town of Calexico, California.
RailAmerica.com map
The San Diego and Imperial Valley Railroad (SDIY) line is segmented into four unique
sections:
1) The Main Line runs from downtown San Diego south to the San Ysidro/
International Border at Tijuana (15.5 miles in length). The line extends through
Mexico 44 miles and connects with the Desert Line. The portion passing through
Mexico, originally constructed as part of the Main Line, is now owned and operated
by the Carrizo Gorge Railway
2) The Coronado Branch runs from National City south to Imperial Beach (7.2 miles).
3) The Desert Line extends north and east from the International Border junction to
Plaster City, where it joins the Union Pacific (UP) line from El Centro (69.9 miles).
4) The La Mesa Branch travels through downtown San Diego east to the City of El
Cajon (16.1 miles).
- Carrizo Gorge Railway Inc provides freight service on the SD&AE between Tijuana,
Baja California and Plaster City, California. The San Diego & Imperial Valley Railroad
operates the Railway track in the U.S. and the San Diego to El Cajon line.
11. Commercial airports in San Diego County
a. International and domestic airline service
San Diego International Airport, San Diego is the busiest single-runway commercial
service airport in the United States, and second in the world (after London Gatwick), with
approximately 600 departures and arrivals carrying 50,000 passengers per day, and 18.3
million passengers per year.
McClellan-Palomar Airport in Carlsbad has commercial flights to and from the Los
Angeles International Airport. It also has executive/private jet and general aviation
services.
Rodríguez International Airport, Tijuana is directly adjacent to the San Diego-Baja
California border near the Otay Mesa border crossing.
b. Towered general aviation
Brown Field Municipal Airport
Montgomery Field
Gillespie Field
Oceanside Municipal Airport
San Diego
San Diego
San Diego/El Cajon
Oceanside
c. Non-towered general aviation
Agua Caliente Airport
Borrego Valley Airport
Fallbrook Community Airpark
Jacumba Airport
Lake Wohlford Resort Airport
Ocotillo Airport
Pauma Valley Air Park Airport
Ramona Airport
Agua Caliente Springs
Borrego
Fallbrook
Jacumba
Lake Wohlford
Ocotillo
Pauma Valley
Ramona
12. Commercial sea ports in San Diego County
The Port of San Diego ranks among the top 30 containership ports in the U.S. and 8th
largest on the west coast transporting nearly 3,300,000 metric tons of cargo per year. The
San Diego Port is the primary port of entry for Honda, Acura, Isuzu, Volkswagen,
Nissan, Mitsubishi Fuso, and Hino Motors into America. The Port also holds a 20-year
lease with Dole Food Company bringing in much of the nation's banana crop.
The Port’s maritime shipping is split between two separate and distinct marine cargo
terminals: the Tenth Avenue Marine Terminal (TAMT) and the National City Marine
Terminal (NCMT). The terminals are the only sites in the entire San Diego region that
have established waterfront industrial sites, with railroad service, close freeway access,
commercial port related support functions, and deep water berthing.
Source: Port of San Diego
13. Median family and individual incomes in San Diego County
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Household Income
$47,360
$53,700
48,565
56,900
54,384
60,100
58,026
59,900
62,008
63,400
64,737
62,900
66,938
64,900
69,872
69,400
72,806
72,100
72,963
74,900
Source:
SANDAG
Source:
National
Association of
Home Builders
56,335
59,591
61,794
63,026
Source:
American
Community
Survey
Per Capita Income
$32,793
$32,665
33,806
33,517
34,642
34,096
35,743
34,893
38,567
37,363
40,406
38,926
42,721
41,024
44,430
42,025
45,488
43,475
41,981
Average
Annual
Wage
$35,597
35,534
37,169
39,029
39,149
40,667
42,220
44,715
46,285
49,439
Source:
Source: Source: Los
California
Angeles
Department
Economic Employment
of
Commerce, Development Development
Department
Corporation
Bureau of
Economic Kyser Center
Analysis for Economic
Research
14. Water costs; waste water costs (when separate) and average power costs for
commercial customers in a minimum of four business parks in San Diego County.
At least 1 of these locations shall be in the City of Chula Vista and/or Otay Mesa and
at least 1 shall be in the City of Carlsbad and/or Oceanside.
Waste water costs
Power costs - average bundled rate
Small Commercial
Medium/Large Commercial/Industrial
Source: California Public Utilities Commission
18.5 cents per kWh
15.4 cents per kWh
15. Median home prices by subregion
2005
2006
2007
2008
2009
Countywide
$516,000
510,000
481,000
359,000
310,000
Central
$469,000
466,000
452,000
360,000
306,750
North
North
County
County
Coastal
Inland
$605,000 $529,000
622,000 545,000
599,000 517,500
470,000 370,000
410,000 325,000
South
County
$512,000
495,000
450,000
325,000
268,250
East
County
$443,000
450,000
410,000
300,000
260,000
Source: DataQuick, www.dqnews.com
All housing communities experienced significant price declines as the nation-wide
housing mortgage meltdown transpired in recent years. Places where there was limited
new development available and where prices had risen the most, were also subject to the
greatest price declines. Newer developments on the other hand, tended to be much more
expensive than existing housing, and were also subject to significant declines as the
market tumbled.
Coastal communities are generally much more expensive, as well as denser and
congested and for the most part built out with little room to add more housing. New
housing developments have therefore generally moved inland, south and eastward where
more space was available for new construction, while coastal and central areas could only
redevelop or fill-in existing communities.
16. Average cost per acre for industrial and commercially zone land (2010 YTD):
San Diego County ($670, 960); Carlsbad ($727,042); Otay Mesa $236,911.
Average Price Acre, 2010 YTD
County-wide Carlsbad Otay Mesa
$670,960 $727,042 $236,911
Source: Cassidy Turley/BRE Commercial; CoStar Group
17. Master list of key contacts for use by site selection consultants and others
interested in making business investments within the San Diego County Region.
• San Diego Regional Economic
www.sandiegobusiness.org
Development Corporation
• City of San Diego - Economic Development www.sandiego.gov/economicBusiness Assistance
development/business-assistance/
XXX
• Cassidy Turley BRE Commercial
• CB Richard Ellis
• Cushman & Wakefield
• Colliers International
• Coldwell Banker Commercial
• Marcus & Millichap Real Estate
Investment Services
www.brecommercial.com
http://www.cbre.com/USA/US/CA/
San+Diego/sandiegocommercialrealestate
www.cushwake.com
www.colliers.com
www.cbsandiego.com
www.marcusmillichap.com
SECTION V
BAJA’S MEGAREGION PROFILE
BAJA CALIFORNIA’s
MEGA REGION PROFILE
Mexico & NAFTA Market Research • Strategy • Executive Training • Market Entry Services
1-888-XBORDER • [email protected] • www.CrossborderBusiness.com
San Diego, California • Tijuana, Baja California
Overview of Project
In June 2010, Crossborder Group Inc. was contracted as part of the National University System
Institute for Policy Research to provide selected data points about Baja California for the San
Diego Regional EDC “Mega-Region” project. The data points (identified below) make up the
specific deliverables required for this project.
Data Elements:
1. Estimate statewide education levels among working population;
2. Identify numbers and specialty (when available) of engineering graduates and enrollees
from Baja California universities (three most previous years);
3. Identify average State labor and benefit costs for six typical manufacturing facility
positions, including three levels of direct labor (low-skill, medium-skill, high-skill);
4. Estimate average high, medium and low range of cost for commercial and industrial land;
5. Estimate total inventory of industrial buildings in State (square footage), and average
high, medium and low range of leasing rates for industrial building space;
6. Identify major rail infrastructure in State (including type of service available);
7. Identify all commercial airports in State (including airlines and destinations served);
8. Identify all major sea cargo ports in State (including shipping lines and destinations
served);
9. Identify all major highway corridors and connections to US and Mexican highway
infrastructure;
10. Summarize State population demographics, including age groups (disaggregated into at
least under 18; 18-64; 64+), unemployment, education, and average household income
levels;
11. Estimate the State’s average cost per unit for electricity, water, and wastewater disposal;
12. Qualitative narratives as to the significance of these findings to the mega-region’s
economy and economic competitiveness as well as, where appropriate, methodological
approach.

Every effort was made to collect accurate information about each of the data elements provided in this Report, utilizing
reliable governmental and industry sources; data collected via survey/interviews; and reasonable estimates based upon
public information and experience of Crossborder Group Inc. representatives. However, neither Crossborder Group
Inc., nor its principals or advisors are responsible for any future advice or transactions that may occur as a result of
using this data.

Mega-Region: Baja California Data
Below are final data results for the Mega-Region project. The Research Team has used a variety
of sources including State and local agencies, real estate and industrial professionals,
transportation industry officials, and direct surveying of companies to develop the following data
points:

1. Estimate statewide education levels among working population
Mexico does not regularly collect general population data about educational levels, with the
exception of during each 10-year Census (Censo) and the mid-way Conteo (taken at the 5-year
point between the Censo). As such, the following 2010 estimate of general population
educational levels is derived from combining information from the 2000 Censo, the 2005
Conteo, current (May 2010) estimates of Statewide working-age population (Secretaria de
Trabajo y Prevision Social), and recent trends for graduation rates amongst various education
levels within the State.
Baja California Working Age Population
Educational Levels Completed
Unspecified
Without
No schooling
Education or NA
Preschool or kindergarten
Elementary school incomplete
Elementary school complete
Basic Education
Junior High school incomplete
Junior High school complete
High School
High School or Technical or commercial studies with Elementary School complete
equivalent
Technical or commercial studies with Junior High School complete
Technical or commercial studies with High School complete
Teachers Studies
Professional or
Professional Studies Bachelors Degree level
higher
Masters and Doctorate
2000
12,798
103,629
78,045
319,199
255,210
105,488
336,055
245,252
8,081
54,077
12,676
4,225
152,247
10,848
2005
68,497
64,494
87,393
316,359
271,562
109,484
432,730
341,068
3,396
47,521
14,402
3,737
219,113
11,912
2010* (est)
*2010 initial estimation based on 2000-2005 census/conteo data, plus 2006-2009 graduation trends
A few points of interest:
Statewide, there are approximately 865,000 individuals in the working-age population
with a High School or higher level of education;
Approximately 330,000 individuals within Baja California’s potential workforce
population have a Bachelor’s Degree or Higher (and this amount is increasing at a
growing rate each year).
Please also note that the above data represents “working-age” population, covering both those
that are actively in the workforce, and those that are currently unemployed.
80,000
40,140
97,860
313,540
288,960
113,630
557,220
474,320
1,430
41,760
16,360
3,300
315,350
13,080
2.
Identify numbers and specialty (when available) of engineering graduates and
enrollees from Baja California universities (three most previous years)
Data provided by the Baja California Secretaria de Educación, was analyzed to provide the
following Statewide university enrollment and graduation information:
1,400
Students Enrolled in
Engineering Programs in
Baja California
Engineering Graduates
in Baja California
1,200
600
1,020
912
16,000
16,145
14,148
13,777
2007-2008
2008-2009
14,000
12,000
709
800
1,073
1,092
1,216
1,000
18,000
10,000
8,000
400
6,000
200
4,000
-
2,000
2006-2007
2007-2008
Graduates
2008-2009
-
Degree
2009-2010
Within Baja California universities, there are currently over 30 recognized engineering programs
offering degrees (not all of which included graduates in the current periods). Below are the top-15
program categories, ranked by numbers of degrees issued in the 2008-2009 school year:
2006-2007
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Engineering Programs
Industrial Engineer
Electrical Engineer
Computer Engineer
Civil Engineer
Computer Sistems Engineer
Mechanical Engineer
Digital Graphic Design Engineer
Mechanical Engineer
Chemistry Engineer
Agricultist Engineer
Mecatronics Engineer
Electromechanical Engineer
Cybernetics Engineer
Computer Science Engineer
Biochemist Engineer
2007-2008
2008-2009
Graduates
Degrees
Issued
Graduates
Degrees
Issued
Graduates
Degrees
Issued
435
23
70
39
180
59
22
12
4
6
0
53
23
20
16
195
28
87
55
66
11
14
12
24
3
0
20
22
16
7
287
109
32
55
178
13
14
102
43
8
25
50
38
16
30
323
163
107
64
92
43
12
33
20
29
9
40
37
18
5
292
90
34
57
100
8
43
48
37
8
60
41
27
12
6
311
150
112
86
51
38
36
34
32
32
26
26
23
10
10
3. Identify average State labor and benefit costs for six typical manufacturing facility
positions, including three levels of direct labor (low-skill, medium-skill, high-skill);
It should be noted that across the State, Tijuana and Mexicali have the largest concentrations of
industrial activity, and the greatest demand for manufacturing workers. They also have some of
the larger numbers of complex manufacturing activity. This tends to drive up labor costs slightly
in those cities (although this is relative, and labor costs are still significantly below that in the
US). In order to estimate Statewide labor costs, Crossborder utilized a combination of direct
maquiladora wage cost information collected via surveys conducted in Tijuana and Mexicali
during 2009 and early-2010, as well as fresh data Crossborder collected in an industrial cost
survey from all five cities for this project. Final data was weighted slightly to reflect larger
employment concentrations in Tijuana and Mexicali, with the results presented below. For
security reasons, some firms do not reveal management-level data, so Crossborder has adjusted
this amount upward slightly to be more conservative.
Please note that the data below represents daily wage cost (in pesos) without benefits:
Baja California Average Manufacturing
Industry Labor Costs (Approx. Tijuana, Tecate,
Rosarito, Ensenada & Mexicali wage data for 2010;
does not include benefits)
Indirect Labor
Plant Manager
Daily Salary in Pesos
Low
Med
High
1,520
1,900
3,040
Supervisors
485
570
855
Engineers
560
700
1,050
Direct Labor
Low
Med
High
DL Operators high-skill
168
210
315
DL Operators medium-skill
136
170
238
95
125
150
DL Operators low-skill
Benefits are typically calculated as a factor above the actual wage/salary cost, and vary by level
of employee. A standard factor of 45% can work in most situations; although the lowercompensated employees (generally direct line workers) typically have a benefit factor of 40-55%;
higher-compensated employees’ factor is 33-40%.
4. Estimate average high, medium and low range of cost for commercial and
industrial land
The purchasing price for commercial and industrial land varies widely in Baja California – with
markets like Tijuana and Mexicali often in more demand (but with more options), while smaller
markets might have fewer buyers but also fewer options. Within each sub-market, prices can also
vary widely, depending on location, proximity to roads, and desirability. As such, below is
presented some average cost data – for purchasing commercial or industrial land. The cost shown
covers a range that includes raw or partially improved lands, but does not include land with
buildings. It is also weighted slightly to take into consideration the impact of higher-cost, larger
markets.
Average Purchase Cost for Land
(US Dollars per Sq Ft)
Baja California
Commercial Land
Industrial Land
Low
Med
High
$ 15.75 $ 19.50 $ 22.00
$ 7.00 $ 13.00 $ 16.75
5. Estimate total inventory of industrial buildings in State (square footage), and
average high, medium and low range of leasing rates for industrial building space.
Crossborder undertake a city-by-city assessment of built industrial space (in most cases, covering
Class A, Class B, and some Class C industrial properties). While no Statewide inventory appears
to be publically available, using data from local economic development groups, industrial real
estate professionals, and some estimation from industrial park developments, it would appear that
there is approximately 80-85 million square feet of developed industrial space in Baja
California (as of early-2010). The vast majority of this (around 90%) are in the two cities of
Tijuana and Mexicali.
In terms of monthly leasing costs, these can vary widely, based on the Class of the industrial
space, existing utility hook-ups and improvements, as well as location. Also, due to economic
conditions in 2009, there is an excess of available industrial space, pushing leasing rates down to
rates not seen in recent years. While this situation is expected to likely exist at least through part
of 2011 (if not beyond), current rates (combining all regions, but weighted slightly higher to
reflect rates in Tijuana/Mexicali) are below:
Leasing Rates for
Baja California
Industrial Space
US Dollars/Sq Ft (mo.)
Low
Med
High
$
0.28 $
0.33 $
0.43
Additional services, building requirements, and special infrastructure can typically add 3- to 8cents above the cost of most lease rates.
6. Identify major rail infrastructure in State (including type of service available)
Baja California is connected to the US and Mexico rail systems via two separate rail lines: a
Tijuana-Tecate Short Line (currently administered by the State of Baja California, with an
operational agreement with Carrizo Gorge Railway, Inc., connecting to BNSF and San DiegoImperial Valley [SDIY] lines in San Diego and a SDIY line extending from Campo to Plaster
City); and a Mexicali-Calexico route that extends throughout the US via Union Pacific’s routes at
Calexico, and throughout Mexico via Ferromex’s routes heading east out of Mexicali.
A total of approximately 223 kilometers of rail line exists currently in Baja California. Of this,
approximately 132 kilometers are administered via a State concession for the Tijuana-Tecate
Short Line. Recent improvements to this line have allowed for freight service to run between San
Diego-Tecate-Plaster City (crossing the border into Mexico at Tijuana, and crossing back into the
US at Tecate), although this is used almost exclusively for either imports (largely into Tecate) as
well as apparently for some trans-shipments of minerals from Plaster City/Imperial County. This
connection also technically allows for shipments into Mexicali from connections in Tecate. An
additional line, and perhaps with most future potential, is the Ferromex-UP route, connecting
Mexicali east to rail linkages in Mexico, as well as north to Union Pacific connections in
Southern California. Maps showing the existing infrastructure are below:
San Diego-Tijuana/Tecate-Campo-Plaster City-Imperial County Routes
Source: Rail America/San Diego & Imperial Valley Railroad
Tijuana-Tecate Short Line
Source: Administradora de la Via Corta Tijuana-Tecate
Mexicali-Mexico Line
Source: Ferromex
According to initial data, about 7,000 cars used the SDIYCarrizo Gorge line in 2007. No comparable data were found
to-date for Mexicali related connections (North or East).
However, according to the SCT, Baja California lines have
some of the lower levels of imports/exports of Mexico’s rail
system. In 2007, approximately 680,000 tons of goods were
exported or imported via the Baja California rail system. As
seen at right, while a growing amount of imports can be seen
for both the Tijuana-Tecate and Mexicali segments, exports are
either highly variable (in the case of Mexicali) or non-existent
(in the case of Tijuana-Tecate). This reflects the current types
of inputs and outputs of Baja California’s manufacturing
industry – which may bring in bulky or containerized materials
via rail, but largely export to the US via truck.
Baja CA Rail Freight Trade
(1,000s of tons)
1400
MexicaliExports
1200
1000
MexicaliImports
800
TijuanaExports
600
400
TijuanaImports
200
0
2001 2002 2003 2004 2005 2006 2007
Source: SCT, Dirección General de Transporte Ferroviario y
Multimodal
7. Identify all commercial airports in State (including airlines and destinations
served)
As the most Northwest state in Mexico, and one adjacent to California and the Pacific Rim, Baja
California’s airports have potential importance – both from a passenger, as well as a cargo
perspective. The existing Tijuana International Airport (Rodriguez Field) is already the country’s
fifth largest in terms of passengers, and one of the few with direct flights to Asia (highlighting the
potential for expanding Baja California’s role as a cargo feeder into North America). Air cargo
appears to be underutilized; however, this situation may change if a proposed new international
cargo-oriented airport is established outside of Ensenada, and if a proposed binational terminal is
built that would connect Tijuana International directly to San Diego’s transportation system.
Baja California’s airport infrastructure is largely limited to four primary airports, only two of
which (Tijuana and Mexicali) currently serve larger aircraft, and another two that are classified as
“international” but are primarily used for international general aviation (i.e.: incoming general
aviation and charter flights from the United States). In addition to these four primary airports,
there are also approximately 86 smaller, less-used, and/or more-informal airstrips that are
distributed across the state used by local residents, tourists, agriculture and military for their uses
(given limited road infrastructure and large distances in Baja California’s rural/desert areas).
The four key primary airports are:
1. Tijuana - General Abelardo L. Rodriguez International Airport (TIJ): The largest and
busiest of Baja California’s airports, TIJ is located in the Mesa de Otay region of Tijuana,
directly across the border from San Diego. The total airport area is over 900 acres, with a
main terminal of approximately 230,000 square feet, including 10-12 gates and 169
commercial spaces. TIJ’s runway is 9,711 feet long, making it the largest runway in the
region after Miramar. It operates 24 hours per day. TIJ is currently served by seven
commercial carriers including Mexicana, Aeromexico, Aeromexico Connect, Volaris,
Viva Aerobus, and Aerolineas Mesoamericanas. In 2008, TIJ airport usage was
approximately 3.9 million passengers, a decline from the airport’s 2007 high of 4.7
million passengers. In 2007, approximately 65,400 operations occurred at TIJ – a
number far below the airports current capacity. Initial data indicates that approximately
13,260 tons of cargo were shipped via TIJ in 2008 (split nearly evenly between inbound
and outbound), or nearly 85% of air cargo in Baja California. While this amount is
significantly lower than the 117,579 tons shipped via Lindbergh Field that year, it is
notable that TIJ handled over 60 tons of international cargo – an amount not dissimilar
from SAN, and almost entirely from the Tijuana-Shanghai route.
2. Mexicali – General Rodolfo Sanchez Taboada International Airport (MXL): Located
approximately 3 miles south of the US-Mexico border, and several miles outside of the
State’s capital city, MXL is permitted as an international airport by Mexico; however, it
currently is served by three domestic airlines (receiving occasional international charters
and some international general aviation). The entire airport property is approximately
1,400 acres; however only a small part of this is used for current airport facilities (the
main terminal is approximately 50,000 square feet). MXL’s runway is 8,530 feet. MXL
is served by three commercial carriers including Mexicana, Aeromexico Connect
(formerly Aerolitoral), and Volaris. In 2008 the airport was used by 533,800 passengers,
a decrease from the peak of 607,900 in 2007 when the airport had 12,447 operations.
MXL is also currently operating under capacity. Initial data indicate that MXL handled
approximately 2,100 tons of air cargo in 2008 (all domestic).
3. San Felipe - San Felipe International Airport (SFH): Significantly smaller than the
previous two airports, SFH operates during limited hours (generally during daylight), and
is oriented toward general aviation and charters. It has an asphalt runway that is 4,850
feet long. SFH is not served by any commercial carriers. In 2007, it handled
approximately 14,355 passengers and 6,095 operations.
4. Ensenada - Base Aérea Nº. 3 El Ciprés (ESE): The current airport in Ensenada has been
used primarily as a military base for Mexico’s air force, as well as some general aviation.
Like San Felipe, it has an “international” designation to allow for incoming flights from
the US to check in with Customs and Immigration officials. It has a runway of 4,892 feet
long. ESE is not currently served by any commercial carriers. In 2007, as it became a
more popular airport for GA activities, it handled approximately 13,995 passengers and
7,448 operations. No cargo is known to pass through this airport.
In 2007, Baja California’s airports served approximately 5.4 million passengers, with a total of
nearly 84,000 operations. By far the largest of these was TIJ, handling 88% of passengers and
78% of operations that year. In 2008, given the closure of several Low Cost Carriers and other
factors (including the slowdown of the economy and tourism into the State), the number of
passengers declined 16% to only 4.5 million passengers.
70,000
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Operations at Baja California Airports
(1997-2007)
60,000
50,000
40,000
30,000
20,000
10,000
Tijuana
Mexicali
Tijuana
Mexicali
Source: Grupo Aeropotuario del Pacifico & Secretaria de Comunicaciones y Transportes
San Felipe
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
0
1997
Thousands of Passengers
Passengers at Major Baja California Airports
(1997-2008)
Originations-Destinations Served
As mentioned, only two of the State’s airports currently have regular commercial services offered
– Tijuana and Mexicali. The cities currently served by airlines at these two airports are shown
below:
Cities Served
Domestic Flights
International Flights
Tijuana - Aeropuerto
Mexicali – General Rodolfo
Internacional General
Sanchez Taboada
Abelardo L. Rodríguez (TIJ) International Airport (MXL)
Acapulco
Aguascalientes
Cancun
Chihuahua
Mexico City
Juarez City
Obregon
Culiacan
Guadalajara
Hermosillo
La Paz
León-Bajío
Los Cabos
Los Mochis
Mazatlan
Monterrey
Morelia
Oaxaca
Puebla
Puerto Vallarta
Toluca
Uruapan
Zacatecas
Tokyo-Narita
Shanghai-Pudong
Culiacán
Guadalajara
Hermosillo
Mexico City
Monterrey
Toluca
8. Identify all major sea cargo ports in State (including shipping lines and
destinations served);
Baja California currently has five sea ports:
Puerto de Ensenada (cruise ship & containers)
Puerto del Sauzal de Rodríguez (cabotage)
Puerto de Rosarito (primarily for PEMEX-related
petrochemicals)
Puerto Isla de Cedros (an island off of Baja California’s
coast, specializing in mineral exports, primarily salt)
Puerto de San Felipe (mainly tourism and fishing boats)
Source: Administración Portuaria Integral de Ensenada
The Port of Ensenada is currently the busiest of the five existing Ports. It is the second-largest
cruise ship destination on Mexico’s Pacific Coast (after Cabo San Lucas, and before Puerto
Vallarta); and the fifth busiest container Port in Mexico. The Port of Ensenada was primarily a
fishing port through the 1980s. In 1994, with the initiation of a private concession and
investments to modernize the infrastructure, the Port of Ensenada has grown quickly in terms of
cruise ships and commerce. In 2005, the port’s concessionaire, Hutchison Group, added four
container cranes that were aimed at capturing imports and exports related to Baja California’s
maquiladora industry. At the time, it was estimated that of 40 maquiladoras surveyed, they alone
generated 70,000 container shipments annually (and used the Ports of LA/Long Beach). It should
be noted that the Port of Ensenada intends to capture an increasing share of that traffic, and at
least through 2007 demonstrated significant success with over 127,000 TEUS passing through the
Port (nearly 50% of which, it is estimated, related to maquiladora inputs).
Port of Ensenada - TEUS
140,000
120,000
100,000
80,000
60,000
40,000
20,000
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
0
1996
In late-2007, a new, “Ensenada-Border Intermodal Corridor”
customs zone (integrating the Mexican Customs offices of
Ensenada, Tijuana, Tecate and Mexicali) was established to
specifically target trans-shipments that could enter Ensenada and
travel in-bond to the United States, via transportation linkages in
Baja California. While the initiation of this new Customs
facilitation began in mid-2008 during the economic slowdown of
2008, the Port of Ensenada estimates that trans-shipments could
make up more than 25% of the total TEUS passing through the
Port by 2011 (as much as 80,000 TEUS by that year). This new
logistics tool for the region likely implies future trucking
demand that does not necessarily correlate with manufacturing
operations within the State of Baja California – as well as sets a
precedence for such a Customs Zone should the future Punta
Colonet move forward.
Source: Administración Portuaria Integral de Ensenada
Shipping Lines and Destinations Served
Shipping container services currently offered through the Port of Ensenada are:
Shipping Lines
Services
Routes
Servicio ASIA-ENS Weekly
Route: Lazaro Cardenas - Ensenada-Yokohoma-NingboShanghai-Busan-Yokohoma-Ensenada-Manzanillo-Lazaro
Cardenas
Route: Ensenada-Manzanillo(MX)-BalboaManzanillo(MIT)-Kingston-Caucedo-Puerto Cabello-Port
of Spain-Hong Kong-Chiwan-Kaohsiung-NingboShanghai-Qingdao-Pusan-Ensenada
Compañia Sudamericana de Vaporest
Route: Ensenada-Manzanillo(MX)-BalboaManzanillo(MIT)-Cartagena-Kingston-Caucedo-Puerto
Cabello-Hong Kong-Chiwan-Kaohsiung-Ningbo-ShanghaiQingdao-Busan-Ensenada
Hanjin Shipping
Route: Manzanillo-Ensenada-Long Beach-BusanShanghai-Kwangyang-Long Beach-Manzanillo
Maersk Sealand
Feeder Semanal Centroamerica
Hapag-Lloyd + American President Lines
Compagnie Maritime d' Affretement Compagnie Generale Maritime + China Shipping
Container Lines
Hapag-Lloyd
Servicio Oceania Biweekly
Hapag-Lloyd
MXP-AME
Route: Balboa-Caldera-Corinto-Acajutla-Puerto QuetzalLazaro Cardenas-Manzanillo-Ensenada-Los Angeles
Route: Vancouver-Long Beach-Ensenada-TaurangaSydney-Melbourne-Adelaide-Auckland-PapeeteEnsenada-Oakland-Seattle-Vancouver
Route: Valparaiso-San Vicente-Callao-Puerto QuetzalMazanillo-Ensenada
9. Identify all major highway corridors and connections to US and Mexican highway
infrastructure
State and Federal transportation infrastructure agencies (SEDUE and SCT, respectively) report
that Baja California has approximately 11,100 to 11,400 kilometers of major roads –
approximately 2,774 kilometers of which is paved (according to SEDUE); of these,
approximately 15% are four-lanes (the remaining two-lanes). Most of the four-lane segments are
concentrated in the populated areas of the States five municipalities (Mexicali, Tecate, Tijuana,
Rosarito, and Ensenada). Major highways (carreteras) are typically managed under either State
or Federal jurisdiction. The map below indicates some of the major routes in Baja California, as
well as some Federal projects (such as the “land bridge” project in the southern part of the State).
Similar to the US, some projects are a combination of Federal, State, or Local jurisdiction.
Source: Secretaria de
Comunicaciones y
Transportes
In addition to the above information, it should be noted that Baja California is connected to the
rest of Mexico via the Federal 2 Highway heading east of Mexicali (connecting to San Luis Rio
Colorado in Sonora, and the POE there). Mexicali is connected to both Tecate and Tijuana via the
free Federal Highway 2. Tijuana and Tecate also share a modern toll road connection, as do
Tijuana-Rosarito-Ensenada. Tecate and Ensenada are connected via the Federal Highway 1 (a
free road).
One of the largest new road infrastructure projects completed in Baja California was the Corredor
2000 project. Started under the Elorduy Administration, this four-lane freeway connecting
Tijuana and Rosarito runs for nearly 41 kilometers from East Tijuana and the Tijuana-Tecate toll
road, along the southern portion of Tijuana, connecting to the Rosarito-Ensenada toll road and
Popotla. This major infrastructure investment is estimated at US$200 million, includes 4 nodes
and ten bridges, and is expected to greatly facilitate passenger vehicle and cargo trips to the
current Otay Mesa I and future Otay Mesa II border crossings – as well as travel between the
cities of Tijuana, Rosarito, Tecate and Ensenada.
Connections between major roads in Baja California and corresponding infrastructure in
California (San Diego and Imperial Counties) occur at the five border crossings of San YsidroPuerta Mexico, Otay Mesa 1, Tecate, Calexico-Mexicali 1, Calexico East-Mexicali 2, and
Andrade-Algodones. Border crossing statistics for these Ports of Entry are shown below:
Pedestrians
2007
2008
2009
CA:Andrade
CA:Calexico
CA:Calexico East
CA:Otay Mesa
CA:San Ysidro
CA:Tecate
Total CA: Baja California
Buses
CA:Calexico
CA:Calexico East
CA:Otay Mesa
CA:San Ysidro
CA:Tecate
1,538,028
5,290,977
9,429
1,410,927
7,756,569
547,290
16,553,220
2007
996
1,170
47,258
97,726
217
149,374
1,148,149
4,359,901
18,030
1,740,454
7,289,862
508,036
15,064,432
2008
1,352
1,669
47,758
87,787
289
140,863
1,517,727
3,904,913
33,930
1,979,982
6,188,126
499,709
14,124,387
2009
25
2,451
34,595
72,450
197
111,727
Personal Vehicles
CA:Andrade
CA:Calexico
CA:Calexico East
CA:Otay Mesa
CA:San Ysidro
CA:Tecate
2007
546,648
5,747,309
3,417,977
4,616,308
15,696,262
872,943
30,897,447
2008
491,843
4,950,509
3,549,486
4,750,683
13,672,329
893,308
28,308,158
2009
449,190
4,839,287
2,953,733
4,106,276
13,354,887
833,040
26,536,413
Passengers in Personal
Vehicles
CA:Andrade
CA:Calexico
CA:Calexico East
CA:Otay Mesa
CA:San Ysidro
CA:Tecate
Bus Passengers
CA:Calexico
CA:Calexico East
CA:Otay Mesa
CA:San Ysidro
CA:Tecate
Trucks
CA:Andrade
CA:Calexico East
CA:Otay Mesa/San Ysidro
CA:Tecate
2007
2008
2009
1,161,051
10,949,336
7,003,669
8,656,559
28,390,175
1,830,661
57,991,451
2007
25,425
28,064
296,637
875,450
5,066
1,232,649
981,916
9,432,447
7,144,168
8,473,725
25,319,449
1,876,615
53,228,320
2008
33,800
41,725
240,026
700,787
5,933
1,024,279
883,929
8,625,713
5,731,129
8,085,681
23,934,882
1,649,796
48,911,130
2009
625
40,161
147,186
453,130
3,805
646,916
2007
2008
2009
478
323,348
738,765
77,320
1,139,911
412
325,975
776,972
75,595
1,178,954
284
276,894
684,425
65,039
1,026,642
In addition, Annual Average Daily Traffic (AADT) counts for major road connections in 2008
are provided below:
2008 AADT for Major Baja California Road Segments (source: SCT)
Baja CA Road
Segments
1 CARR:
ENSENADA EL CHINERO
(Specific Segment
in Road)
ENSENADA
TL
*
SC*
*
3
0
AADT
(TotalTrucks
&
Vehicle
)
Percentag
e of
Vehicle
from
AADT
Percentag
e of
Trucks
from
AADT
79.4
78.4
Est. AADT
of Vehicle
(Passenger
)
Est.
AADT
of
Truck
s
17.3
3178
40
16.9
2808
36
4,002
OJOS NEGROS
1
0
3,582
Baja CA Road
Segments
(Specific Segment
in Road)
TL
*
SC*
*
SAN SALVADOR
1
0
AADT
(TotalTrucks
&
Vehicle
)
Percentag
e of
Vehicle
from
AADT
Percentag
e of
Trucks
from
AADT
74.2
Est. AADT
of Vehicle
(Passenger
)
Est.
AADT
of
Truck
s
21.5
2371
32
78.9
16.9
2892
36
68.9
28.7
909
13
70.5
24.9
1899
27
80.1
15.7
1724
21
85.8
9.1
783
9
64.2
30.0
6116
95
63.1
31.2
5872
93
79.6
13.8
8716
109
73.4
20.2
8108
110
70.9
24.9
7948
112
69.4
26.5
7577
109
81.3
13.9
14296
176
84.2
13.0
5268
62
71.6
23.2
3826
53
82.4
13.4
4174
51
66.0
29.5
4422
67
72.0
23.3
4865
67
82.0
13.5
6198
75
81.2
13.1
8289
102
83.3
12.3
10258
123
69.4
26.4
8427
121
0
0
7154
95
3,195
HEROES DE LA
INDEPENDENCI
A
LEYES DE
REFORMA
LAZARO
CARDENAS
FRANCISCO R.
SERRANO
EL CHINERO
3
0
3,665
3
0
1,320
3
0
2,694
3
0
2,152
1
0
913
2 CARR:
ENSENADA LAZARO
CARDENAS
ENSENADA
3
1
9,527
ENSENADA
3
2
9,306
T. DER.
AEROPUERTO
T. DER.
AEROPUERTO
T. DER.
BUFADORA
T. DER.
BUFADORA
T. DER.
BUFADORA
SANTO TOMAS
3
1
10,950
3
2
11,046
1
1
11,210
1
2
10,918
3
0
17,584
1
0
6,256
MISION SAN
VICENTE
EL SALADO
1
0
5,343
1
0
5,066
PUNTA
COLONETT
PUNTA
COLONETT
CAMALU
1
0
6,700
3
0
6,757
1
0
7,559
COLONIA
VICENTE
GUERRERO
(LAZARO
CARDENAS)
SAN QUINTIN
3
0
10,208
1
0
12,314
SAN QUINTIN
3
0
12,143
3 CARR:
LAZARO
CARDENAS -
LAZARO
CARDENAS
LAZARO
CARDENAS
3
0
9,475
75.5
18.9
Baja CA Road
Segments
(Specific Segment
in Road)
TL
*
SC*
*
1
0
AADT
(TotalTrucks
&
Vehicle
)
Percentag
e of
Vehicle
from
AADT
Percentag
e of
Trucks
from
AADT
79.8
Est. AADT
of Vehicle
(Passenger
)
Est.
AADT
of
Truck
s
15.8
2016
25
77.1
19.8
3205
41
86.4
10.9
978
11
81.9
13.8
1237
15
78.3
15.7
940
12
79.0
15.6
1228
15
89.0
5.4
1432
16
78.2
15.8
1200
15
78.1
17.0
12316
158
79.1
16.4
12441
157
80.7
15.7
4033
50
78.8
17.6
3895
49
80.1
13.3
2979
37
79.0
14.7
2958
37
86.4
10.7
3557
41
83.6
12.6
2167
26
91.9
5.5
2219
24
89.4
7.5
6145
69
0
0
PARADOR
PUNTA
PRIETA
ROSARIO DE
ARRIBA
ROSARIO DE
ARRIBA
T. DER.
EMILIANO
ZAPATA
SAN AGUSTIN
2,526
3
0
4,157
3
0
1,132
1
0
1,510
SAN AGUSTIN
3
0
1,200
SAN LUIS
1
0
1,554
4 CARR:
MEXICALISAN FELIPE
RANCHO
CHAPALA
PARADOR
PUNTA PRIETA
MEXICALI
1
0
1,609
1
0
1,534
3
1
15,770
MEXICALI
3
2
15,728
LA PUERTA
1
1
4,998
LA PUERTA
1
2
4,943
T. IZQ.
ESTACION
COAHUILA
T. IZQ.
ESTACION
COAHUILA
T. IZQ.
ESTACION
COAHUILA
EL CHINERO
1
1
3,719
1
2
3,744
3
0
4,117
1
0
2,592
EL CHINERO
3
0
2,415
SAN FELIPE
1
0
6,874
5 CARR:
MEXICALITIJUANA
MEXICALI
COLONIA
PROGRESO
COLONIA
PROGRESO
LAGUNA
SALADA
LAGUNA
SALADA
3
1
76.6
17.4
5881
77
77.6
16.3
5999
77
83.8
12.3
5378
64
83.8
12.3
5258
63
7,678
3
2
7,731
1
1
6,418
1
2
6,274
Baja CA Road
Segments
(Specific Segment
in Road)
TL
*
SC*
*
LA RUMOROSA
1
0
AADT
(TotalTrucks
&
Vehicle
)
Percentag
e of
Vehicle
from
AADT
Percentag
e of
Trucks
from
AADT
69.9
Est. AADT
of Vehicle
(Passenger
)
Est.
AADT
of
Truck
s
24.3
4304
61
73.8
21.2
4103
55
72.8
23.1
3821
52
72.4
20.2
3484
48
79.6
15.4
4830
61
79.6
14.7
4859
61
81.1
13.1
6397
79
81.0
13.6
6224
77
80.2
15.2
9346
116
0
0
6,157
T. DER.
ESTACION DE
MICROONDAS
AGUA
HECHICERA
EL ENCINAL
3
0
5,560
1
0
5,248
1
0
4,812
TECATE
1
1
6,068
TECATE
1
2
6,104
TECATE
3
1
7,888
TECATE
3
2
7,684
6 CARR :
PARADOR
PUNTA
PRIETA BAHIA DE
LOS ANGELES
7 CARR :
PUNTA
PRIETA GUERRERO
NEGRO
PRESA
ABELARDO L.
RODRIGUEZ
TIJUANA
3
PARADOR
PUNTA PRIETA
3
BAHIA DE LOS
ANGELES
PARADOR
PUNTA PRIETA
1
ROSARITO
3
0
11,653
0
100.0
0.0
184
2
91.8
4.5
212
2
78.1
16.2
1100
14
85.4
12.0
1573
18
80.3
15.7
1272
16
69.2
26.6
1109
16
-
0
0
-
0
0
184
0
231
3
0
1,408
0
1,842
TANATAN
3
0
1,584
TAMPICO
1
0
1,602
8 CARR:
RAMAL A
AEROPUERTO
DE MEXICALI
LIM. EDOS.
TERM. B.C. PPIA.
B.C.S.
(PARALELO 28)
LIM. EDOS.
TERM. B.C. PPIA.
B.C.S.
(PARALELO 28)
ENT.
GUERRERO
NEGRO
T.C. MEXICALI ESTACION
COAHUILA
1
0
84.9
11.8
2150
25
89.2
7.1
8287
93
2,532
3
0
9,290
Baja CA Road
Segments
(Specific Segment
in Road)
AEROPUERTO
TL
*
SC*
*
1
0
AADT
(TotalTrucks
&
Vehicle
)
Percentag
e of
Vehicle
from
AADT
Percentag
e of
Trucks
from
AADT
95.0
3.3
Est. AADT
of Vehicle
(Passenger
)
Est.
AADT
of
Truck
s
3709
39
0
0
2115
25
0
0
3,904
9 CARR:
RAMAL A
SANTA
MARIA
10 CARR: SAN
FELIPE CHAPALA
11 CARR:
SONOITA MEXICALI
T.C.
ALGODONESISLAS
AGRARIAS
T.C. LAZARO
CARDENAS PUNTA PRIETA
T.C. LAZARO
CARDENAS PARADOR
PUNTA PRIETA
SAN FELIPE
-
-
85.3
10.3
2,480
3
0
90.4
6.6
1968
22
87.6
9.0
840
10
0
0
2,177
PLAYA
CURBINA
T.C. LAZARO
CARDENAS PARADOR
PUNTA PRIETA
SONOITA
-
959
3
0
75.0
17.0
6575
87
75.0
17.4
4918
65
79.4
16.2
5936
75
79.1
16.9
5864
74
80.3
15.9
5877
73
0
0
8,766
LOS VIDRIOS
3
0
6,557
SAN LUIS RIO
COLORADO
SAN LUIS RIO
COLORADO
SAN LUIS RIO
COLORADO
LIM. EDOS.
TERM. SON.
PPIA. B.C.
X.C. MEXICALIALGODONES
T. IZQ. EJIDO
HERMOSILLO
T. IZQ. EJIDO
HERMOSILLO
EJIDO
MONTERREY
EJIDO
MONTERREY
1
0
7,476
3
1
7,413
3
2
7,319
-
-
1
1
81.8
13.3
7559
92
81.6
13.4
7557
92
78.2
14.8
6033
77
80.6
12.3
6093
75
79.5
14.3
5233
66
78.3
15.3
5174
66
80.8
13.3
6965
86
81.4
11.0
6984
86
76.3
17.9
8176
107
9,241
1
2
9,261
3
1
7,715
3
2
7,560
3
1
6,582
3
2
6,608
3
1
8,620
3
2
8,580
1
1
10,716
Baja CA Road
Segments
12 CARR:
TECATE - EL
SAUZAL
(Specific Segment
in Road)
TL
*
SC*
*
T.C. MEXICALI SAN FELIPE
1
2
TECATE
3
AADT
(TotalTrucks
&
Vehicle
)
Percentag
e of
Vehicle
from
AADT
Percentag
e of
Trucks
from
AADT
77.1
17.0
Est. AADT
of Vehicle
(Passenger
)
Est.
AADT
of
Truck
s
8341
108
0
0
10,819
0
78.1
17.1
6585
84
70.5
25.0
2950
42
71.8
22.7
2363
33
69.3
24.0
1827
26
79.6
15.5
2945
37
78.6
16.4
3448
44
80.5
15.0
5106
63
80.2
15.2
5381
67
0
0
8,432
T. DER. VALLE
DE LAS PALMAS
EL TEZTERAZO
1
0
4,185
3
0
3,291
T. IZQ. SAN
MARCOS
EL PORVENIR
GUADALUPE
LAS PALMAS
1
0
2,636
3
0
3,700
1
0
4,387
SAN ANTONIO
DE LAS MINAS
EL SAUZAL
1
0
6,343
1
0
6,710
13 CARR:
TIJUANAENSENADA
(LIBRE)
TIJUANA
X.C. TIJUANA SAN MIGUEL
(CUOTA)
X.C. TIJUANA SAN MIGUEL
(CUOTA)
ROSARITO
1
1
75.4
18.2
17714
235
75.2
18.2
17413
231
72.9
20.6
11789
162
74.9
18.3
11944
159
80.6
13.0
10384
129
83.0
13.2
7516
90
85.3
11.6
2806
33
81.6
14.6
2635
32
84.0
9.9
2552
30
83.0
11.9
2461
30
72.7
23.1
8827
121
72.6
22.9
8652
119
0
0
23,493
1
2
23,156
1
1
16,171
ROSARITO
1
2
15,947
ROSARITO
3
0
12,883
T.IZQ.
AUTOPISTA
POBLACION
PLAZA SANTA
MARIA
LA MISION
1
0
9,056
1
0
3,289
1
0
3,229
T. IZQ. COLONIA
GUADALUPE
ENT. SAN
MIGUEL
EL SAUZAL
1
0
3,038
1
0
2,965
3
1
12,141
EL SAUZAL
3
2
11,917
ENSENADA
Baja CA Road
Segments
(Specific Segment
in Road)
14 CARR :
LIBRAMIENT
O MEXICALI
(CUOTA)
15 CARR:
MEXICALI TIJUANA
(CUOTA)
TL
*
SC*
*
T.C. SONOITAMEXICALI
3
0
CASETA DE
COBRO
MEXICALI
CASETA DE
COBRO
MEXICALI
T.C. MEXICALI TIJUANA
1
LA RUMOROSA
3
AADT
(TotalTrucks
&
Vehicle
)
Percentag
e of
Vehicle
from
AADT
Percentag
e of
Trucks
from
AADT
85.8
Est. AADT
of Vehicle
(Passenger
)
Est.
AADT
of
Truck
s
10.3
2285
27
67.6
31.1
1858
27
63.5
34.8
1337
21
85.4
10.8
1828
21
0
0
2,663
0
2,749
2
0
2,106
1
0
2,141
1
71.6
23.3
3077
43
72.0
22.9
3106
43
68.8
21.0
6292
91
77.6
15.0
4559
59
77.4
15.0
4424
57
78.3
14.6
4949
63
71.5
21.9
2824
39
69.8
23.3
2817
40
80.0
14.8
6526
81
80.8
13.8
5853
72
80.4
14.5
7172
89
74.0
17.5
3266
44
72.6
18.6
3168
43
0
0
4,297
LA RUMOROSA
3
2
4,314
CASETA DE
COBRO
"CENTINELA"
CASETA DE
COBRO "EL
HONGO"
CASETA DE
COBRO "EL
HONGO"
CASETA DE
COBRO EL
HONGO
CASETA DE
COBRO EL
HONGO
CASETA DE
COBRO EL
HONGO
CASETA DE
COBRO
"TIJUANA"
CASETA DE
COBRO
"TIJUANA"
CASETA DE
COBRO
"TIJUANA"
CASETA DE
COBRO
"TIJUANA"
CASETA DE
COBRO
TIJUANA
TERMINA
AUTOPISTA
2
0
9,145
1
0
5,875
2
0
5,716
3
0
6,321
3
1
3,949
3
2
4,036
1
0
8,158
2
0
7,244
3
0
8,921
3
1
4,413
3
2
4,364
Baja CA Road
Segments
16 CARR:
TIJUANA SAN MIGUEL
(CUOTA)
17 CARR:
ALGODONES ENT. ISLAS
AGRARIAS
GRUPO B
(Specific Segment
in Road)
TL
*
SC*
*
AADT
(TotalTrucks
&
Vehicle
)
Percentag
e of
Vehicle
from
AADT
Percentag
e of
Trucks
from
AADT
PRINCIPIA
TIJUANA
TIJUANA
CASETA DE
COBRO
"PLAYAS DE
TIJUANA"
CASETA DE
COBRO
"ROSARITO"
T.C. TIJUANA ENSENADA
(LIBRE)
CASETA DE
COBRO
"ENSENADA"
ALGODONES
2
0
Est. AADT
of Vehicle
(Passenger
)
Est.
AADT
of
Truck
s
0
0
96.9
1.9
10846
112
91.0
6.7
8862
97
0
0
11,193
2
0
9,739
2
0
87.0
10.5
10499
121
91.7
6.1
5527
60
89.1
8.1
4980
56
81.0
14.0
1899
23
80.3
10.3
2346
29
89.0
6.8
4554
51
86.8
9.4
2273
26
85.6
10.4
1171
14
80.7
11.8
847
10
87.9
9.5
4212
48
83.5
11.3
3120
37
81.7
14.3
6047
74
86.1
10.3
7440
86
77.1
18.3
4543
59
12,068
3
0
6,027
T. IZQ. CD.
MORALES
MERIDA
1
0
5,589
3
0
2,344
18 CARR:
EJIDO
BENITO
JUAREZ EJIDO
CHIAPAS
T. IZQ. EJIDO
LAZARO
CARDENAS
ISLAS
AGRARIAS
GRUPO B
EJIDO BENITO
JUAREZ
1
EJIDO MEXICO
1
0
2,922
1
0
5,117
3
0
2,619
0
1,368
EJIDO CHIAPAS
1
0
1,049
19 CARR:
EJIDO
MONTERREY
- MAZON
T.C. SONOITA MEXICALI
3
X.C. MEXICALI ALGODONES
X.C. MEXICALI ALGODONES
GUADALUPE
VICTORIA
MAZON
1
0
4,792
0
3,736
3
0
7,402
1
0
8,641
1
0
Baja CA Road
Segments
(Specific Segment
in Road)
TL
*
SC*
*
20 CARR:
ENT. EL FARO
- ESTACION
COAHUILA
3
0
X.C. MEXICALI ESTACION
COAHUILA
COAHUILA
T. IZQ. CARR.
EJIDO
MONTERREY MAZON
FRANCISCO
MURGUIA
ESTACION
COAHUILA
1
ZAKAMOTO
1
21 CARR: LA
PUERTA - T.C.
(MEXICALIESTACION
COAHUILA)
AADT
(TotalTrucks
&
Vehicle
)
5,892
Percentag
e of
Vehicle
from
AADT
Percentag
e of
Trucks
from
AADT
83.9
Est. AADT
of Vehicle
(Passenger
)
Est.
AADT
of
Truck
s
10.5
3837
46
84.2
10.4
3979
47
79.5
15.9
7413
93
87.3
7.9
5492
63
86.7
9.0
3480
40
89.3
7.2
5687
64
0
0
4,573
0
4,726
3
0
9,324
3
0
6,291
3
0
4,014
1
0
6,368
0
88.9
7.2
2038
23
90.4
7.1
1982
22
0
0
0
0
2,293
NAYARIT
3
0
2,193
22 CARR:
MEXICALIALGODONES
T.C. MEXICALI ESTACION
COAHUILA
EJIDO PUEBLA
3
0
81.1
15.2
7157
88
84.6
12.9
4990
59
86.8
10.0
5607
65
87.4
9.3
4769
54
84.2
11.2
4457
53
86.7
8.4
1678
19
84.8
10.6
1955
23
8,825
T.C.
GEOTERMICA ESTACION
DELTA
COAHUILA
COAHUILA
X.C. EJIDO
MONTERREY MAZON
X.C. EJIDO
MONTERREY MAZON
T. IZQ. TRES DE
MARZO
1
0
5,898
1
0
6,460
3
0
5,456
1
0
5,293
3
0
1,935
1
0
2,305
Baja CA Road
Segments
(Specific Segment
in Road)
X.C. SONOITA MEXICALI
PACHUCA
TL
*
SC*
*
1
0
AADT
(TotalTrucks
&
Vehicle
)
Percentag
e of
Vehicle
from
AADT
Percentag
e of
Trucks
from
AADT
87.6
Est. AADT
of Vehicle
(Passenger
)
Est.
AADT
of
Truck
s
8.0
2286
26
85.7
8.8
3512
41
84.1
10.7
3784
45
81.8
11.1
2683
33
78.4
17.4
9275
118
78.8
16.7
9245
117
80.5
15.9
5247
65
80.0
16.2
5272
66
80.2
14.6
10437
130
86.5
9.6
4275
49
88.8
7.7
4038
45
73.3
20.3
4635
63
90.5
7.2
7060
78
88.2
8.7
3420
39
90.5
5.5
1767
19
86.6
10.1
1729
20
89.8
6.6
1658
18
0
0
2,610
3
0
4,098
1
0
4,499
ALGODONES
1
0
3,280
23 CARR:
MEXICALIESTACION
COAHUILA
MEXICALI
3
1
11,830
MEXICALI
3
2
11,732
24 CARR:
MEXICALIPROGRESO
T. IZQ.
AEROPUERTO
T. IZQ.
AEROPUERTO
ISLAS
AGRARIAS
GRUPO A
EJIDO NUEVO
LEON
EJIDO NUEVO
LEON
T. DER. LA
PUERTA
X.C. EL FARO ESTACION
COAHUILA
T. DER. LEONA
VICARIO
ESTACION
COAHUILA
1
PROGRESO
1
1
6,518
1
2
6,590
1
0
13,014
1
0
4,942
3
0
4,547
1
0
6,324
3
0
7,801
1
0
3,877
1
0
1,952
1
0
1,996
1
0
1,846
0
75.4
18.9
3439
45
84.3
12.3
6754
80
82.1
14.4
4017
49
82.5
12.7
4176
50
4,561
25 CARR:
SANTA ROSA ENT.
PACHUCA
T.C. SONOITA MEXICALI
3
PAREDONES
3
0
8,012
0
4,893
CD. MORELOS
3
0
5,062
T.C. MEXICALI 0
0
ALGODONES
*Type of Location: 1 indicates that the traffic was generated before the location indicated, 2 indicates that the
traffic is generated in the location indicated & 3 indicates that the traffic is generated after the location (The
AADT
Percentag Percentag
(Totale of
e of
Trucks
Baja CA Road
(Specific Segment
TL
SC*
Vehicle
Trucks
&
Segments
in Road)
*
*
from
from
Vehicle
AADT
AADT
)
way that we know is the before and after is by the the way that increase the Km)
Est. AADT
of Vehicle
(Passenger
)
Est.
AADT
of
Truck
s
**Type of Circulation: 1 indicates that the traffic is heading toward increasing Km markers, 2 indicates that the
traffic is heading toward decreasing Km markers & 0 indicates that the traffic is both ways.
10. Summarize State population demographics, including age groups (disaggregated
into at least under 18; 18-64; 64+), unemployment, education, and average
household income levels
The State of Baja California is estimated to have a total population of approximately 3.2 million
residents (May, 2010); of which approximately 2.4 million are 14 years or older, and 1.4 million
of which are currently active in the workforce (PEA = Población Económicamente Activa).
Like the rest of Mexico, Baja California’s population is relatively young, as seen in the age group
strata at right. Approximately 31% of Baja Californians are 14 or under; approximately 28% are
15-29; and the remaining 41% are 30+ of age.
Educational information was provided previously (Questions #1 and #2).
Baja California Population
% by Age Group (2005, CONTEO)
% Female
80+
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
4.0
30-34
4.6
25-29
4.6
20-24
4.7
15-19
4.9
10-14
5.2
05-09 5.4
00-04
5.2
6
0.3
0.3
0.5
0.7
1.0
1.3
0.4
0.4
0.6
0.8
1.1
1.4
1.9
% Male
1.9
2.4
2.4
3.2
3.1
3.8
4.5
4.6
4.7
4.8
5.0
5.2
5.0
4
2
0
2
4
6
Average household income levels in Baja California are significantly different from the other
portions of the MegaRegion (San Diego and Imperial Counties). While little official data on
household income appears to exist (and such data is not regularly collected), data from CONAPO
and INEGI show that in 2000 Baja California had one of the highest levels of household income
in Mexico (with a State average of nearly 12,000 pesos/month; and Tijuana and Mexicali
exceeding this by around 20%). This level has certainly increased since 2000, however no
official data has been identified to-date. That said, it is unclear if the comparison of household
data amongst the US or Mexican portion of the MegaRegion geographies is helpful for potential
investors.
11. Estimate the State’s average cost per unit for electricity, water, and wastewater
disposal
Electricity rates are generally consistent throughout Baja California, although monthly usage at
various levels and at peak- or non-peak times will determine the ultimate costs for a company.
Water rates for larger users can vary slightly depending on the location (but may not be a
significant cost for most manufacturers). Wastewater disposal rates area also highly variable, and
most industrial users that have special disposal needs are likely required to treat any toxics or
significant residuals onsite.
Some average cost information for Baja California is provided below (subject to individual
circumstances for each potential user):
Baja California Utility Rates
(US$)
Electricity
Water
kwh/month
Cubic meters
Low
$
$
Avg.
0.08 $ 0.13 $
3.16 $ 4.37 $
Actual costs may depend on consumption levels and times of use
High
0.17
4.63
BAJA CALIFORNIA’s
MEGA REGION PROFILE
(PART B)
12. Summarize Overall Economic Characteristics with Focus on Manufacturing Industry
Total employment
1,409,129
1
243,197
2
4.12 billion dollars
3
988
4
203,831
5
Average rotation of export manufacturing companies
1.8%
6
Average wages on export manufacturing companies
Estimated total payroll of export manufacturing
companies
9,859
7
2.9 billion dollars
8
Industrial employment
Aggregated industrial production value
Number of export manufacturer establishments
Employment on export manufacturing operations
1
2
3
4
5
6
7
8
Economic Active Population, National statistics, geography and informatics institute (INEGI), first trimester 2010
National employment survey (INEGI), first trimester 2010
IMMEX Monthly Survey - INEGI 2009, considering exchange rate of $ 12.5 pesos per dollar
IMMEX Monthly Survey - INEGI December 2009
Idem.
Ruiz-Morales Survey - Average for 2009 - Export manufacturing industry index in Tijuana
AXIS with IMMEX Monthly Survey - INEGI December 2009 (Dollars)
IMMEX Monthly Survey - INEGI 2009, considering exchange rate of $ 12.5 pesos per dollar
In Baja California the working population adds up to over 1.4 million people, close to a quarter
of a million work in manufacturing, and about 203,000 in 988 export manufacturing facilities
under the IMMEX program.
Yearly production value for the export manufacturing industry is around $ 4.12 billion dollars,
while average wage for the sector is around $ 9,859 US, adding up to a total payroll of 2.9 billion
dollars a year.
Industrial investment
Industrial investment
(millions of dollars)
2009
2008
2007
2006
2005
495
763
837
889
945
Manufacturing FDI (millions of dollars) - Ministry of Economy - Department of foreign investment
Baja California is among the top FDI receiving states, with an average of $ 786 million dollars
per year in the last five years.
12. Quantify Economic Dimensions of Medical Device, Automotive, Aerospace and Logistics
Clusters (including at least annual employment levels 2008-2009)
Specialized sectors
Number of Establishments
Cleantech
Applied biotech (including
medical devices)
Specialized manufacturing
(automotive & aerospace)
Logistics
2009
128
2008
n/a
2007
n/a
2006
n/a
2005
n/a
9
10
67
65
62
63
60
11
133
1,366
131
1,366
124
1,366
117
1,366
109
1,366
12
9 Environmental services directories 2010 - Baja California's Secretary of the environment & cleantech manufacturers
identified by AXIS
10 AXIS - Strategic Intelligence Center – Industrial statistics
11 Idem.
12 INEGI - Economic Census 2004
Baja California has a large industrial base in specialized sectors with 128 companies in the
cleantech industry, 67 companies in applied biotechnology, 133 in specialized manufacturing
and 1, 366 companies in logistics.
Labor
Cleantech
Applied biotech (including
medical devices)
Specialized manufacturing
(automotive & aerospace)
Logistics
13
14
15
2009
n/a
2008
n/a
2007
n/a
2006
n/a
2005
n/a
38,382
36,131
34,088
30,158
29,082
13
34,671
44,603
41,427
41,164
36,325
14
14,468
14,468
14,468
14,468
14,468
15
AXIS - Strategic Intelligence Center – Industrial statistics
Idem
INEGI - Economic Census 2004
The figures of employment in specialized sectors add up to 38,382 workers in the applied
biotechnology field, 34,671 in specialized manufacturing and 14,468 in logistics.
Estimated number of local direct industry suppliers
Estimated labor generated by local direct suppliers
444
73,885
16
17
16
17
AXIS 2010 - Considering plastics industry, metalmechanics industry, packaging and industrial specialized services
Idem
Considering the support industries related to plastics, metalmechanics, specialized services and
packaging, there are over 440 direct suppliers in Baja California that add up to a total workforce
of 73,885 employees.
Human resources in engineering
Estimated number if working engineers
24,000
AXIS - Estimation based on cross sector analysis of labor composition
The main areas of specialization in engineering in Baja California are:






Industrial engineering
Electronics engineering
Chemical engineering
Computer systems engineering
Electro mechanical engineering
Civil engineering
Representative companies
Specialized
manufacturing
1.- KENWORTH
MEXICANA, S.A. DE
C.V.
2.- MOTORCAR
PARTS DE MEXICO,
S.A. DE C.V.
3.-INTERIORES
AEREOS, S.A. DE
C.V. (GULFSTREAM)
Local
Primary Scope of
Employees NAICS operations
2,000
336120
Motor vehicle
manufacturing
Main
products
Trucks
1,300
336310
1,230
336413
4.- HONEYWELL
AEROSPACE DE
MEXICO, S DE R.L.
1,000
336412
5.- HYUNDAI DE
MEXICO, S.A. DE
C.V.
984
336212
6.- ITG
950
336399
Motor vehicle
part
remanufacturing
Aerospace
products and
parts
manufacturing
Aerospace
products and
parts
manufacturing
Motor vehicle
body parts
manufacturing.
Motor vehicle
Origin
USA
Location
MEXICALI
Alternators
and starters
reconstruction
Interior parts,
harness and
metallic parts.
USA
TIJUANA
USA
MEXICALI
Radiators,
turbines and
aircraft
compressors.
Truck chassis
and dry
refrigeration
containers.
Automotive air
USA
MEXICALI
SOUTH
KOREA
TIJUANA
USA
ENSENADA
AUTOMOTIVE
SAFETY
COMPONENTS
INTERNATIONAL,
S.A. DE C.V.
7.ENSAMBLADORES
ELECTRONICOS DE
MEXICO, S. DE R.L.
DE C.V.
8.- AUTOLIV
SAFETY
TECHNOLOGY DE
MEXICO, S.A. DE
C.V.
9.- TOYOTA MOTOR
MANUFACTURING
DE BAJA
CALIFORNIA, S. DE
R.L. DE C.V.
10.- PLACAS
TERMODINAMICAS,
S.A. DE C.V.
parts
manufacturing
bag
800
336320
Electronic
system and
devices for
aircraft
Electronic
systems and
monitors
USA
MEXICALI
800
336360
Motor vehicle
parts
manufacturing
Seat belts
SWISS
TIJUANA
800
336112
Motor vehicle
manufacturing
Pick-up trucks
JAPAN
TIJUANA
750
336413
Insulation
blankets and
seats
USA
MEXICALI
11.- HONEYWELL
PRODUCTOS
AUTOMOTRICES,
S.A. DE C.V.
12.- ROCKWELL
TECATE, S.A. DE
C.V.
700
336311
Aerospace
products and
parts
manufacturing
Motor vehicle
parts
manufacturing
Turbochargers
USA
MEXICALI
700
335314
TECATE
600
336320
Motor control
centers,
harness and
switches
Harness and
fuse boxes
USA
13.- FURUKAWA
MEXICO, S.A. DE
C.V.
JAPAN
MEXICALI
14.- AERODESING
DE MEXICO, S.A. DE
C.V.
535
336413
Interiors
assemblies
USA
TIJUANA
15.- DELPHI
CONNECTION
SYSTEMS TIJUANA,
S.A. DE C.V.
500
334417
Optic fiber
connectors,
cables and
harnesses.
USA
TIJUANA
16.- LN SAFETY
500
336399
Motor vehicle
electronic
components
manufacturing
Motor vehicle
electronic
components
manufacturing
Aerospace
products and
parts
manufacturing
Motor vehicle
and aircraft
electronic
components
manufacturing
Motor vehicle
Windshields
ENGLAND MEXICALI
GLASS, S.A. DE C.V.
17.-WABASH
TECHNOLOGIES DE
MEXICO, S. DE R.L.
DE C.V.
18.-DEUTSCH (COPRODUCTION DE
MEXICO, S.A. DE
C.V.)
19.-PARKER
INDUSTRIAL, S. DE
R.L. DE C.V.
20.-CUSTOM
SENSORS AND
TECHNOLOGIES
AEROSPACE DE
MEXICO, S.A. DE
C.V.
500
336320
499
336412
480
339991
350
336320
parts
manufacturing
Motor vehicle
electronic
components
manufacturing
Aerospace
products and
parts
manufacturing
Packing and
sealing device
manufacturing
Aircraft
electronic
components
manufacturing
Electronic
sensors
USA
MEXICALI
Conductors
and electric
connectors for
turbines
Packing, seals
and stamps
USA
TECATE
USA
TIJUANA
Electronic
sensors
USA
TIJUNA
Applied Biotech
1.- NELLCORE
PURITTAN BENNET
MEXICO, S.A. DE
C.V. (Covidien)
2.- PRODUCTOS
UROLOGOS DE
MEXICO, S.A. DE
C.V. ( Cardinal Health)
3.- AVAILMED, S.A.
DE C.V.
4.ESPECIALIDADES
MEDICAS KENMEX,
S.A. DE C.V.
5.- DJ
ORTHOPEDICS DE
MEXICO, S.A. DE
C.V.
6.- SISTEMAS
MEDICOS ALARIS,
S.A. DE C.V. (
CareFusion)
7.- MEDTRONIC
MEXICO, S. DE R.L.
DE C.V.
8.- SMITHS
HEALTHCARE
MANUFACTURING,
S.A. DE C.V
9.- MASIMO
(INDUSTRIAL
VALLERA DE
MEXICALI, S.A. DE
C.V.)
10.- NPA DE
MEXICO, S. DE R.L.
DE C.V. (Nypro)
Local
Primary
Employees NAICS
339112
3,000
Scope of
operations
Medical
device
manufacturing
339112
Medical
device
manufacturing
339112
Medical
device
manufacturing
339112
Medical
device
manufacturing
339113
Orthopedic
device
manufacturing.
339112
Medical
device
manufacturing
339112
Medical
device
manufacturing
339112
Medical
device
manufacturing
339112
Medical
device
manufacturing
339112
Medical
device
manufacturing
Medical
2,800
2,600
2,500
2,000
2,000
1,800
1,800
1,400
1,400
339115
Main products
Surgical and
medical
instrument
manufacturing.
Cannulae and
inhalation
equipment.
Origin
USA
Location
TIJUANA
USA
MEXICALI
Catheters,
serum bags
and surgical
instruments.
Catheters and
disposable
medical
products.
Knee ligament
and ankle
bracing.
USA
TIJUANA
USA
TIJUANA
USA
TIJUANA
Intravenous
solution
administration
sets
Vascular
catheters and
aneurism
stents.
Inhalators,
oxygen tents
and blood
transfusion
sets
Blood
pressure and
oxygen
sensors.
USA
TIJUANA
USA
TIJUANA
ENGLAND
TIJUANA
USA
MEXICALI
USA
TIJUANA
Gastric
application
bags
Ophthalmic
TIJUANA
11.- CARL ZEISS
VISION
MANUFACTURA DE
MEXICO, S. DE R.L.
DE C.V.
12.- ICU MEDICAL
DE MÉXICO, S.A. DE
C.V.
13.- LABOMEX MBP,
S. DE R.L. DE C.V.
(Thermofisher)
14.- GREATBATCH
TECNOLOGIAS DE
MEXICO, S. DE R.L.
DE C.V
15.- SDS DE
MEXICO, S.A. DE
C.V.
16.- DEL MAR
MEDICAL DEVICE,
S.A. DE C.V.
17.- MARTECH
MEDICAL
PRODUCTS
(INDUSTRIAL
VALLERA DE
MEXICALI, S.A. DE
C.V.)
18.- MEDIMEXICO,
S. DE R.L. DE C.V.
19.- BLOCK
MEDICAL DE
MEXICO, S.A. DE
C.V.
20.- ENSATEC, S.A.
DE C.V. (Pall Medical)
1,248
device
manufacturing
lens
AUSTRALIA
Medical
device
manufacturing
Medical
device
manufacturing
Intravenous
transfusion
sets.
Tubes and
laboratory
pipettes
USA
USA
TIJUANA
334510
Medical
device
manufacturing
Pacemakers
implanted
components
USA
TIJUANA
339114
Medical
device
manufacturing
Medical
device
manufacturing
Dental
instruments
and clamps
Catheters,
transfusion
bags and
surgical
supplies.
Catheters
USA
MEXICALI
USA
TIJUANA
USA
MEXICALI
Disposable
dialysis sets
USA
TIJUANA
Portable
infusion
pumps and
accessories
Blood
transfusion
sets
USA
TIJUANA
USA
TIJUANA
339112
1,100
339112
930
867
780
339112
750
339112
Medical
device
manufacturing
339112
Medical
device
manufacturing
Medical
device
manufacturing
700
700
339112
600
339112
600
Medical
device
manufacturing
ENSENADA
Cleantech
1 KYOCERA
MEXICANA
Local
Primary
Employees NAICS
334410
850
2 UNISOLAR
334410
640
3 IDATECH
335312
50
4 QUARKS
541690
4
5 CACTUS
RECICLADORA DE
MEXICO
6 RECICLADORA
CACHANILLA
7 MPI
ENVIRONMENTAL
8 ARROW
RECYCLING
9 PACIFIC
TREATMENT
ENVIRONMENTAL
SERVICES
10 INDUSTRIAL
RECICLADORA DE
TIJUANA
11 RECICLADORA
DE MATERIALES EL
RUBI
12 CALI
RESOURCES
13 MECOXIM
MEXICO
14 DAE DUK
PLATECK
15 I.T.R. SA DE C.V.
120
562112
62
562112
---
562112
---
562112
---
541620
---
---
562112
562112
Scope of
operations
Electronic
component
assembly
Electronic
component
assembly
Electronic
component
assembly
Engineering
and design
services
Recycling
Main products Origin
Solar panels
JAPAN
and
semiconductors
Solar panels
USA
TIJUANA
Hydrogen Fuel
cells
USA
Alternative
energy systems
dev.
Materials
recycling
MEXICO
Recycling
Materials
recycling
Recycling
Materials
recycling
Recycling
Materials
recycling
Environmental Materials
lab and
recycling
consulting
services
Recycling
Materials
recycling
Recycling
24
562112
Recycling
---
562112
Recycling
20
562112
Recycling
---
562112
Recycling
16 A TO Z METALS
20
562112
Recycling
17 RECICLADORA
NORTHWEST BAJA
---
562112
Recycling
Location
TIJUANA
TIJUANA
TIJUANA
MEXICO
TIJUANA
MEXICO
TIJUANA
--TIJUANA
--TIJUANA
USA
TIJUANA
MEXICO
TIJUANA
Materials
recycling
MEXICO
Materials
recycling
Materials
recycling
Materials
recycling
Materials
recycling
Materials
recycling
Materials
recycling
MEXICO
TIJUANA
---
TIJUANA
TECATE
---
TECATE
-----
TIJUANA
TECATE
--TIJUANA
18 TEK MAK
---
562112
Recycling
19 BAJA
RECYCLING
20 SUGA
BESTAMEX
---
562112
Recycling
---
562112
Recycling
Materials
recycling
Materials
recycling
Materials
recycling
--TIJUANA
--TIJUANA
---
Environmental services directories 2010 - Baja California's Secretary of the environment, and AXIS - Strategic Intelligence
Center – Industrial statistic.
TIJUANA
Logistics
1 FERROMEX /
INTERMODAL
MEXICO.
2 MAERSK
3 HAPPAG LOYD
4 ENSENADA
INTERNATIONAL
TERMINAL
5 AGENCIA
ADUANAL JORGE
DIAZ
6 AGENCIA
ADUANAL PEREZ
ORTIZ
7 AGENCIA
ADUANAL JORGE
VILLA
8 AGENCIA
ADUANAL MAYO
OBREGÓN
9 AGENCIA
ADUANAL
HODOYAN
NAVARRO
10 COORD. DE
SERVS. ADUANALES
ATLAS
11 AGENCIA
ADUANAL
OBREGON
12 SERVICIOS
ADUANALES
EXIMIN
13 GRUPO
LOGISTICO
MEXICANO
14 SUPER EXPRESS
GONZALEZ
Local
Primary Scope of
Employees NAICS operations
--482110
Railroad cargo
transportation
Main products
/ services
Origin
Railroad cargo MEXICO
transportation
---
Maritime
cargo
transportation
Maritime
cargo
transportation
Maritime
cargo handling
Maritime
cargo
transportation
Maritime
cargo
transportation
Maritime
cargo handling
---
---
488390
488390
488519
Location
MEXICALI
DENMARK
ENSENADA
GERMANY
ENSENADA
HONG
KONG
ENSENADA
---
488511
Customs
broker
Customs
broker
MEXICO
TIJUANA
---
488511
Customs
broker
Customs
broker
MEXICO
TIJUANA
---
488511
Customs
broker
Customs
broker
MEXICO
TIJUANA
---
488511
Customs
broker
Customs
broker
MEXICO
TIJUANA
---
488511
Customs
broker
Customs
broker
MEXICO
TIJUANA
---
488511
Customs
broker
Customs
broker
MEXICO
TIJUANA
---
488511
Customs
broker
Customs
broker
MEXICO
TIJUANA
---
488511
Customs
broker
Customs
broker
MEXICO
MEXICALI
---
488519
Logistics
services
Logistics
services
MEXICO
TIJUANA
---
484129
TECATE
484129
Ground cargo
transportation
Ground cargo
MEXICO
---
Ground cargo
transportation
Ground cargo
MEXICO
TIJUANA
15 SERVICIOS DE
TRANSPORTE
COMANDOS
16 TRANSPORTES
CASTORES
17 LOGINAM
18 AEROPUERTO
INTERNACIONAL DE
LA CIUDAD DE
TIJUANA
19 ONE SOURCE
CARGO DE MEXICO
20 SERVICIOS
ADUANALES SIVE
---
484130
---
488519
---
481111
---
484129
---
484129
transportation
transportation
Ground cargo
transportation
Logistics
services
Air cargo
handling
Ground cargo
transportation
Logistics
services
Air cargo
handling
MEXICO
TIJUANA
MEXICO
TIJUANA
MEXICO
TIJUANA
Ground cargo
transportation
Ground cargo
transportation
Ground cargo
transportation
Ground cargo
transportation
MEXICO
MEXICALI
MEXICO
MEXICALI
Baja California’s Logistics Cluster Association and AXIS - Strategic Intelligence Center – Industrial statistics
14. Catalog the Typical Permit requirements for standard operations
(Considering that the operation is not of high environmental impact according to federal
environmental law)
FOR INCORPORATION:
Federal permits
 Permit for establishing a corporation – implies public notary registration
 Federal tax code registration
 National Foreign Investment registration
State permits
 State tax code registration
 State corporation registration
FOR CONSTRUCTION
Local permits
 Land usage permit
If the operations to be conducted falls under article 28 of federal environmental law (meaning
they are considered as of environmental impact):
State permits
 Environmental assessment authorization via preventive report
 Environmental assessment authorization via environmental e impact manifest.
 Risk evaluation
 Feasibility of services study, services contract, non-pending dues, project revision
Local permits
 Construction license
 Permit to post public signs
Federal permit
 Electricity contract
FOR INSTALATION:
•
Notification of operation for high risk companies (State level)
•
Validation as an export manufacturer (Federal)
•
IMMEX Program registration – export manufacturer. (Federal)
•
Registration to National Enterprise System (Federal).
15. Identify and summarize existing local, state, and/or Federal business incentives that
apply to businesses relocating or expanding in the state
Law for the Promotion of the Competitiveness and Economic Development of Baja California
(Passed by the State Congress on June 10th, 2005)
I. Tax Benefits given to new and established companies that:
A) Exhibit a new, expansion or technological investment projects*.
They may be rewarded with a:
 25 to 100% exemption on the Payroll Tax, during a period of 1 to 5 years.
 20 to 50% exemption on the Water Connection System Fee.
* The following aspects evaluate the investment project:







Number of jobs created, incorporation of students in the production processes as well as
disable and 60+ year-old people.
Quality of jobs.
Amount and origin of the investment.
Amount invested in technology.
National and Local Suppliers.
Market access.
Place of establishment.
B) Reuse or treat 100% of their water consumption, with a 30% exemption from the monthly
payment as long as the company reuses or treats the water.
C) Hiring disabled or 60+ year-old people, with a 100% exemption in the Payroll State Tax as
long as they are working.
II. Non-Tax Benefits:
A) Public Infrastructure. - There is a public fund (FOINFRA) to support public infrastructure
required for the establishment or expansion of strategic companies.
B) Enterprise Development. - Direct support for small and medium enterprises in:





Training
Specific Consulting
Financial aid
Information regarding statistics, economics and data for the decision-making process.
Articulation of programs, products, tools and actions in order to increase their
competitiveness
C) Assistance. - An investment promoter will be assigned to your project to serve as a liaison
between your company and the governmental federal, state, and municipal offices.
D) Market Access. - The Secretariat of Economic Development in coordination with other
authorities will support small and medium companies in different markets by:


Providing technical assistance to companies with high exportation possibilities
Promoting their products in national and international fairs and trade shows.
Additional Non-tax Incentives
One-stop Information Desk
The Secretariat of Economic Development through its officers will serve as your one-stop
information desk that will provide any necessary assistance, help with paperwork, and serve as
liaison with local businessmen, Industry Chambers and organizations related to your project. In
addition, The Secretariat of Economic Development can assist you in the site selection.
License Fees
Assistance during negotiations with Municipal Government regards any license and/or
permission fee that your company might need, in order to start operations in the State.
How to do successful businesses in Baja California - Seminar
The Secretariat of Economic Development will provide a free and custom-made legal,
accounting, customs seminar, in order to resolve many of your questions, related benefits and
requirements of doing businesses in Mexico.
Personal Assistance
The State Government of Baja California will assign an Investment Promoter to assist you in the
complete life span of the project. The Promoter will give you a tour through the main cities, its
industrial parks and main businesses areas.
Independent Consultants
The Secretariat of Economic Development will serve as a liaison with local consultants.
Workers Training Benefit
Payment for up to 2 months of 1.5 Minimum Daily Wage for workers training. The Mixed
Training program is provided by the National Employment Service, and consists in supporting
the new employees with a scholarship while in training. The courses will last from 1 to 2 months
between six and eight hours daily, and must be 70% practical and 30% theoretical. Each group
must have more than 10 people.
Using this program you will save time and money searching for qualified hand labor. The
company will increase its productivity, being the most important benefit, the cost saving on the
payment of wages while training the employees.
An agreement must be signed and an authorization of the National Employment Service is
required, which is a government agency that helps companies for free to fulfill their employees’
requirements. The company will make the training courses program according its requirements;
however, if the company needs any help, the National Employment Service can support you.
Federal Incentives
Incentives for maquiladoras
In recent years, new players have affected the Mexican Maquiladoras. Due to that situation, the
Federal and State Governments, by means of Executive Decrees, changed laws and tax rules,
reacted to maintain the competitiveness of the industry. Main changes and benefits are described
in the following:
1.
Simplified rules to comply with Permanent Establishment and Transfer Pricing
provisions.
Until 2002, Maquiladoras were obligated to compute and report a taxable income that includes a
return on assets if a TP ruling was requested on a red tape negotiation lengthy process. If the
option of save harbour was elected, the rules to compute values were confuse and originated
legal uncertainty.
By changes in the Income Tax Law since 2003, new options to comply with these rules were
included, that decreases taxing the return on investment and excluded inventories. On the other
hand, no longer was required the TP resolution sanctioned by the tax authorities and the safe
harbour (administrative facility for the fulfillment of rules of transfer pricing) calculation was
simplified.
All of this resulted on important decrease on administrative cost for calculating taxes, provide
legal certainty and in most cases, reduced the taxable income, and as a consequence, the cost of
income tax and the profit sharing to employees.
2.
Reduction up to 67% of Maquiladoras’ income tax.
On October 2003, by means of an Executive Presidential Decree, a tax benefit for Maquiladoras
was established consisting in the reduction up to 67% of their income tax. This can be lower,
depending on the option that the company elected to comply with the PE and TP rules, but in the
majority of the cases, still will be higher than 50%.
This places Mexico in a very competitive position with an effective tax rate of around 15%.
To calculate this benefit, companies must compute the tax for values, to a safe harbour option
(the highest taxable income between the 6.5% of the operational cost and the 6.9% of the next
fiscal value of the assets) and apply 3% to calculate by difference the tax benefit. For safe
harbour companies, this will mean that instead of paying the highest of 6.5% or 6.9%; will
compute the minimum taxable income applying 3%.
3.
Reduction in the income tax advances.
The income tax reduction that is described was not having any immediate effect in Maquiladoras
because they needed to compute their income tax advances based on prior years profit factors.
The authority issued a rule by which Maquiladoras can reduce these advances in proportion to
the expected income tax once the benefit is applied.
4.
Reduction of the taxable income if exportations decline.
By means of a fiscal rule, Maquiladoras are permitted to reduce their taxable income for years
2003 and 2004 by a factor that is determined comparing the current year exportation with the
average of the 3 prior years, or less in case of new companies. Per example, if the current year is
500 and the average of the three years is 1,000, then the reduction factor will be 50%.
5.
Accelerated Depreciation of Assets
The Income Tax Law and an Executive Decree establish an accelerated depreciation incentive
for income tax on new investments that could represented an immediate deduction of
approximately 85%, deferring the payment of income tax and profit sharing to employees.
Maquiladoras that elected safe harbour will not be benefited from this incentive, because it
implies to report a minimum taxable income.
There are special provisions for Maquiladoras to apply accelerated depreciation that include not
owned machinery and equipment used on their operation but the immediate tax reduction will
reverse in short term on a higher income tax payment.
6.
Income Tax Reduction for Disabled Employees
On article 222 of the Income Tax Law there is a tax incentive consisting on deducting 100% of
the income tax on salaries paid to disabled employees from the Corporate Income Tax revenues,
if they are properly registered in the Social Security Institute.
SECTION VI
IMPERIAL COUNTY’S MEGA-REGION
PROFILE
Development Management Group, Inc.
economic development  fiscal & economic analysis  development management
San Diego/Baja California/Imperial Valley Mega Region:
Imperial Valley Datapoints
Completed for:
June 28, 2010
73-845 Highway 111, Suite 202  Palm Desert, CA 92260
Office: (760) 346-8820  Mobile: (760) 272-9136  Fax: (760) 346-8887
[email protected]  www.dmgeconomics.com
Imperial Valley (County) Data Points Brief
(Prepared for National University System Institution for Policy Research)
1. Cost of Land for General Commercial, Industrial and Renewable Energy Uses:
A. General Commercial-Retail: $6.00 to $10.00 psf.
B. Industrial: $2.50 to $6.00 psf.
C. Renewable: $7,500 to $15,000 acre
D. Buildings: $50 to $175 psf.
E. Buildings (Lease) Industrial .40 to .75 psf NNN
F. Office Space .75 to 2.50 psf NNN
2. Land Available for Solar and Geothermal Industries
A. Not able to calculate based on County Planning
B. Most opportunities (non BLM) will come from Ag land conversion
C. If 5% of Ag is converted, 27,500 acres would be available generating 2,750 MW
D. If 10% of Ag is converted, 55,000 acres would be available generating 5,500 MW
E. If 15% of Ag is converted 82,500 acres would be available generating 8,250 MW
F. BLM has 1.26 million acres total (outside County jurisdiction) may create additional 12,600
acres of land availability for about 1,260 MW of power generation.
3. Housing Clusters and Costs
A. Housing clustered (generally) within the 7 incorporated cities
B. Average Home between $102k and $121k
4. Entitled Incentive Zones within Imperial Valley
A. One (1) Federal Foreign Trade Zone (#257)
B. Two (2) State Enterprise Zones (Imperial Valley-Brawley) and Calexico
C. Two (2) State Manufacturing Enhancement Area (Brawley and Calexico)
5. Local Incentive Zones
A. Numerous Incentives created by Cities within Region (attached document with full schedule)
6. Permitting Requirements for Expanding/Establishing Business
A. County and Cities follow CEQA process and generally follow similar pre-development
application, development application, planning commission, city council approval process
7. Railways, Air Travel, Ground, Ports of Entry
A. Rail includes dedicated industry line in Plaster City, full access line that travels from Calexico
North through most of the cities to the Inland Empire and Line that travels from Inland
Empire to Yuma through the Imperial Valley.
B. KIPL (Imperial County Airport) serves region with both general aviation and commercial
service (through Federal Government Essential Service Program) (United/Skywest). There
are also number of smaller airports for general aviation including Calexico that offers a
customs clearing center.
C. Region served by Interstate 8 as East West route from San Diego to Yuma through the
Imperial Valley and Highways 86 and 111 that serve north bound traffic through the
Coachella Valley.
D. Two Ports of Entry, Calexico Main and Calexico East (Commercial)
8. Water Distribution System
A. Imperial Irrigation District (IID) is water purveyor from rights to Colorado River, they sell
directly to farmers and to municipalities whom provide water services.
B. Rate factors for residential and business are based on usage for both water and wastewater,
rates included in full report.
9. Demographics
A. Population: 174,808
B. Median Age: 30.62
C. Median Household Income: $37,459
D. Per Capita Income: $15,322
10. Cleantech/Applied and Logistic Companies
Geothermal
Cal Energy-Calipatria, 6 employees, $5.4 million sales
Geo East Mesa Ltd-Calipatria, 52 employees, $43.8 million sales
Ormat-Holtville, 52 employees, $47.0 million sales
Geothermal Exploration
Martin Pump & Equipment-Brawley, 9 employees, $1.68 million sales
Logistics/Transportation
Calexico Freight-Calexico, 30 employees, $4.5 million sales
American Pacific-Calexico, 30 employees, $4.5 million sales
Rocha Trucking-Calexico, 23 employees, $3.5 million sales
Osterkamp Trucking-Ocotillo, 23 employees, $3.5 million sales
FedEx Freight-Calexico, 21 employees, $3.2 million sales
Haver & Sons-El Centro, 20 employees, $3.0 million sales
Griggs Freight-Brawley, 19 employees, $2.9 million sales
Valley Transportation-Brawley, 18 employees, $2.7 million sales
Ramiro Trucking-Calexico, 14 employees, $2.1 million sales
International Contract Carriers, 14 employees, $2.1 million sales
11. Cost per Unit of Power/Water
Attached in Full Report: Schedules Vary Widely.
12. Labor Information (Wage Structures, Education, Workforce Availability)
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.
N.
O.
P.
Q.
R.
S.
T.
U.
Total of all wage earners: $15.74 hour
Total of management wage earners: $36.60 hour
Accounting/Auditors: $20.50 hour
Computer Programmers: $22.05 hour
Network Administrator: $27.67 hour
Civil Engineer: $32.71 hour
Lawyer: $40.47 hour
Paralegal: $22.43 hour
Sales Representative: $18.67 hour
Bookkeeping: $13.89 hour
Executive Secretary: $18.26 hour
Legal Secretary: $15.95 hour
Assemblers: $9.75 hour
Maintenance & Repair: $13.95 hour
Industrial Truck/Tractor Operator: $12.20 hour
Construction Worker: $18.83 hour (all trades combined)
Construction Supervisor: $31.27 hour (all trades combined)
Industrial Mechanics: $18.67 hour
Telecommunications Equipment Technician: $23.60 hour
Production Occupations (all combined): $14.54 hour
Production Supervisor (all combined): $23.53 hour
Educational Achievement (Adults 25+) (Highest Level of Achievement):
Less than 9th grade
17.81%
Some High School, No Diploma
13.53%
High School Diploma (or GED)
13.47%
Some College, No Degree
17.10%
Associates Degree
3.40%
Bachelor’s Degree
4.20%
Master’s Degree
2.35%
Available Workforce (April, 2010):
Labor Force:
75,400
Employed:
54,400
Unemployed:
21,000
Unemployment Rate:
27.9%
San Diego-Baja California-Imperial Valley Mega Region
Introduction:
Development Management Group, Inc. has been contracted by National University System Institution
for Policy Research to provide key datapoint information to assist them with a market competiveness
project that is being prepared for the San Diego Regional Economic Development Corporation as part
of the “Mega-Region” initiative.
There are eleven (11) data points or individual items of research that are desired by NUSIPR. Below
is a synopsis of the items along with reference and identification of appendix (if any).
Research Item 1: Identify Average Cost of Land for General Commercial, Industrial and
Renewable Energy Uses. (Sources when Verified, but Primary Research)
Sources: Three (3) total including two commercial real estate brokers and one licensed
appraiser, all located in Imperial County.
Land (Sale)
General Commercial (retail and showroom) land is generally priced between $6.00 to $10.00 per
square foot. This is land that is located in areas that already include a substantial amount of other
commercial/retail and showroom type businesses. Often times major roads are already in place for
access to land at this price and utilities are either stubbed at or near the site or are readily available.
Industrial Commercial (warehouse, logistics and industrial/business park) land is generally priced
between $2.50 and $5.00 per square foot depending largely upon the state of the site itself relative to
infrastructure improvements. For example land that is zoned for industrial uses but includes little or
no improvements is marketed at the lower end of the scale whereas land that has roads, curbs,
gutters and utilities stubbed at site is priced at the upper end of the scale.
Renewable Energy Land (primarily solar) is available for between $7,500 and $15,000 an acre. In
most cases the land required for commercial solar energy production is in the hundreds or thousands
of acres. Brokers report that land that is in demand for renewable energy (solar projects) is often put
under long-term option contracts that include interim payments to the current owners (or sellers).
Sometimes the total purchase price (including the option payments) exceeds the range given above,
but buyers are provided with additional time for which to entitle the land before completing purchase,
thus lowering both their capital outlay and their overall risk.
Regarding renewable energy land that would be desired for geothermal: it is reported by multiple
sources that only a small amount of land in the region can be utilized for geothermal and that while
surface rights may exist, the mineral (or geo) rights have long since been optioned or acquired by one
of the major geothermal companies already in the region.
NUSIPR-SDREDC Mega-Region Project
Imperial County Research
June 24, 2010 DRAFT
Page 2 of 13
Buildings (Sale)
The inventory of buildings for sale in the Imperial Valley is very low, especially among those that are
considered “A” or “B” condition/location. Those that are for sale are priced between $50 per square
foot and $175 per square foot.
Buildings (Lease)
Industrial/Logistic Space is available for lease at rates that range from about .40 psf NNN to .75 psf
NNN.
Office Space is generally available at rates between .75 psf NNN to 2.50 psf NNN.
Research Item 2: Identify in Square Miles All Available Non-Agricultural, Unencumbered Land
Suitable for Commercial Development for the Solar and Geothermal Industries
Sources: Bureau of Land Management, County of Imperial, Imperial Valley Real Estate
Services, Imperial Irrigation District
One of the most discussed economic topics in the Imperial Valley is related to this very issue. How
much land is available for Solar and/or Geothermal Industries? Generally speaking Geothermal has
been welcomed with open arms in areas where there are resources for which to generate geothermal
power. There were no sources that could give specific acreage, but suffice to say there are
reasonable opportunities that are explored and begin developed by a variety of companies that have
proven experience within the region.
The more difficult question is regarding land available for solar power production. By background, the
County of Imperial includes about 4,700 square miles (2.95 million acres). The County Agriculture
Commission reports that there is about 450,000 acres that are utilized for agriculture. Total crop
production for 2009 was about 550,000 acres (note that some lands are utilized for multiple crops,
hence why total production exceeds total available acres). Further, the 2009 crop production was a
20-year high for the region and is estimated to include about 90-95% of the total available agriculture
land (the balance being in program or voluntary fallow).
With this background, the debate is "How much agriculture land will be allowed to be converted for
production of solar energy?" On the surface the common belief is that the number of acres in
production (Ag) will decrease in coming years because of the pending water transfer from the
Imperial Irrigation District to San Diego of approximately 200,000 acre feet per year. Discussion with
IID officials bring about a different conclusion. The number of acres currently farmed will remain
constant (so long current market conditions prevail) as the water being transferred is being "created"
June 24, 2010 DRAFT
Page 3 of 13
through various water management techniques that are being implemented across the region at
current.
It is estimated that for each 10 acres of land dedicated to solar, approximately 1 MW of power can be
generated. (at peak times, 1 MW can provide energy for about 800 homes). While current policies
by the County of Imperial and the Imperial Irrigation District do not allow for a conclusion regarding
available land, the following chart will exhibit what is possible (depending upon ultimate policy
decisions):
Amount equal to 5% of current Agriculture production being available (27,500 acres) would generate
about 2,750 MW (2,200,000 homes).
about 5,500 MW (4,400,000 homes).
about 8,250 MW (6,600,000 homes).
* Note that some of the land that may be available for solar production does not currently contain any
agriculture uses or is considered sub-standard agriculture land due to location or soil conditions.
In addition to the land that is controlled by the County of Imperial (or one of seven (7) incorporated
cities is land that is managed by the Bureau of Land Management. BLM manages a total of 1.26
million acres in Imperial County. At current, there are seven (7) applications for renewable energy
pending before BLM. They total about 43,632 acres. One such project is proposed by SES (Stirling
Energy Systems) project that is slated to be sited on 6,400 acres of BLM managed land and will (at
build out) produce 750 MW from a total of 42,000 sun catchers (solar panels).
Regarding an adopted land use policy, the guideline that BLM utilizes allows for a 1% disturbance of
BLM land for uses. This, in the case of lands managed by BLM in Imperial County, would equate to a
total of about 12,600 acres. Additionally, some of the land (the 1.26 million acres) has previously
been classified by BLM as available for some or limited disturbance projects (including solar energy
production).
Research Item 3: Identify the Average Cost of Housing and Residential Clusters
Sources: National Association of Realtors, Zillow.com
Imperial County is a region that has a strong agriculture base. As a result, most of the population
lives within a few more urbanized areas (though they are typically described as suburban). These
include: Brawley, Calexico, El Centro, Imperial. There are three additional incorporated cities
June 24, 2010 DRAFT
Page 4 of 13
(Calipatria, Westmorland and Holtville). Below are two sources of information regarding Median
Home Prices.
The National Association of Realtors (Realtor.com) reports that the Median Home Price in Imperial
County is $122,900 (June-August, 2009). Zillow Reports Median Home Prices (March, 2010) as
follows:
Imperial County (Region) 115,600
City of Brawley $119,100
City of El Centro $102,700
Heber (Unincorporated) $119,400
City of Imperial $121,600
Research Item 4: Understand the Incentives and Identify the Geographic Parameters within
Imperial County for Various Incentive Programs including the State Enterprise Zone and the
Federal Foreign Trade Zone
Sources: Imperial Valley Foreign Trade Zone, County of Imperial, United States Department of
Commerce, State of California Housing & Urban Development
Foreign Trade Zones (Full FTZ Benefit Package and Maps Attached in PDF):
The Imperial Valley is home to Foreign Trade Zone #257 (www.icpds.com/?pid=619) The Imperial
Valley Foreign Trade Zone (IVFTZ) includes portions of Brawley, Calexico, Calipatria, El Centro and
unincorporated areas within Imperial County. The Foreign Trade Zone designation was received in
October, 2003.
State of California Enterprise Zones (Full EZ Benefit Package and Maps Attached in PDF):
The Imperial Valley is served by two (2) Enterprise Zones. The first of which is the Imperial Valley
Enterprise Zone which includes land in both the County (unincorporated area) and in the City of
Brawley. A full listing of incentives and maps are attached as Exhibits A, B and C. Imperial Valley
Enterprise Zone (www.ivez.com).
Manufacturing Enhancement Areas:
Brawley and Calexico, California's two Manufacturing Enhancement Areas are focused on stimulating
job creation in the Border region. Special state and local incentives encourage business investment
and promote the creation of new jobs.
June 24, 2010 DRAFT
Page 5 of 13
Program Benefits
The Benefits of a manufacturing Enhancement Area (MEA) are as follows:



Streamlined local regulatory controls;
Reduced local permitting fees; and
Eligibility to earn $29,234 or more in state tax credits for each qualified employee hired.
Eligibility
All manufacturing businesses engaged in the lines of business described in Codes 2011 to 3999,
inclusive of the Standard Industrial Classification (SIC) and located in an MEA are eligible for program
benefits. There are 2 MEAs located in California. They are in the Cities of Brawley and Calexico, both
located in Imperial County. Their MEA designations expire December 31, 2012.
Research Item 5: Identify and Explain Available Business Incentive and Government Funding
Programs (by Jurisdiction)
Sources: County of Imperial, Imperial Valley Economic Development Corporation
There are three (3) layers of potential incentive packages available to business seeking to invest in
the Imperial Valley. The first two layers have been outlined above as Federally Based (Foreign Trade
Zone) and State Based (Enterprise Zones and Manufacturing Enhancement Areas). The third layer is
that of local incentives. Attached is a full booklet that the County of Imperial publishes in connection
with the Cities that clearly outlines their incentive/assistance packages.
Research Item 6: Identify Permitting Requirements for Expanding or Establishing a Business
within the CleanTech, Applied Biotech, Specialized Manufacturing and Logistic Industries
Sources: Development Management Group (previous research & experience), County of
Imperial, City of Imperial, City of El Centro
Permitting for most all projects throughout the County of Imperial (including the incorporated cities)
follows the following pattern:
1. Upon interest, the City/County will ask prospect to complete a "Pre-Development Application"
which generally includes contact information, project type/use and parcel number(s).
2. An application is then circulated through various departments in order to determine if the
land/building is a) zoned appropriately b) a compatible use. The jurisdiction then provides
preliminary comments back to the prospect regarding such items as zoning and the
entitlement/permitting process.
June 24, 2010 DRAFT
Page 6 of 13
3. If the facility is existing and is zoned appropriately, the applicant simply is guided to specific
improvements needed to the property and is issued a business license.
4. If the facility is to be constructed, the jurisdiction will guide the prospect through a formal
development application process that includes (but is not limited to) a Environmental Impact
Report (EIR) or Environmental Impact Report (focused) under the California Environmental
Quality Act (CEQA) to determine what potential environmental impacts may occur as a result
of the project and what appropriate mitigations may be necessary.
5. Said project then goes through a formal hearing process through a jurisdictions Planning
Commission and/or City Council/Board of Supervisors.
6. Once a project receives entitlements, the prospect may apply for building permits and beings
the process of incorporating the comments and requirements from the Planning Commission
and/or City Council/Board of Supervisors (known as "Conditions of Approval") into the project.
7. Once a project is constructed to the building codes of a community and within the Conditions
of Approval an "Occupancy Permit" is issued and the operation of business may begin.
Research Item 7: Identify All Railways, Air Travel Corridors, Ground (Highway) Transportation
Corridors and Land Ports of Entry
Sources: Union Pacific Railroad, Google Maps, United States Department of Homeland
Security, County of Imperial, Federal Aviation Administration
Railways (operated by Union Pacific Railroad):
1. There is a dedicated railway (not connected to any larger line) that serves Plaster City (nearer
Interstate 8) to Split Mountain (which contain aggregate operations to support materials utilized
to create drywall-type products).
2. There is a line that terminates at southern boundary in Calexico that travels north through
Calexico, El Centro, Imperial, Brawley, Calipatria and terminates into a line in Niland. Said line
then travels through the Coachella Valley to the Inland Empire (which is the main station for
Union Pacific).
3. A Third line (which is essentially the main line for the above) travels through the Inland Empire
and Coachella Valley to the Imperial Valley (Niland) and continues in a southeast direction to
Yuma.
June 24, 2010 DRAFT
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Air Travel
The region is served by a number of smaller municipal airports and one larger facility that
accommodates commercial traffic.
Smaller airports are located in Brawley, Holtville, Calexico, and Calipatria. Note that the Calexico
Airport is considered an International Airport and does contain customs officials to clear traffic coming
into the United States from foreign countries.
KIPL (Imperial County Airport) is located in both the City of Imperial and unincorporated Imperial
County. It is approximately 429 acres and contains two runways (5,300 feet and 4,500 feet).
Commercial Air is provided by United Airlines (Skywest) under the Federal Essential Air Service
Program. A significant majority of the air traffic at IPL is general aviation.
Highways and Travel Corridors
The Imperial Valley has a number of travel routes (automobile or truck) providing access to the
region.
1. Interstate 8 originates in San Diego and provides east/west access through the Imperial Valley
to Yuma.
2. There are two routes that travel north from the Imperial Valley. These include Highway 86 that
continues on the west side of the Salton Sea into the Coachella Valley and Highway 111 that is
located on the eastern side of the Salton Sea and travels to the Coachella Valley (where it
rejoins Highway 86 near the town of Mecca).
3. In a southern direction, Highway 111 terminates into Mexicali, Baja California Mexico at the
International Border and becomes the “Aldofo Lopez Mateos” highway which eventually
becomes the Federal Highway 5. Federal Highway 5 splits into two highways that serve both
San Felipe and San Luis.
Ports of Entry
There are two (2) ports of entry between the United States and Mexico located within the Imperial
Valley. The first of which is the port of entry located just south of Downtown Calexico that connects
Highway 111 to Mexico. The second is located east of the City of Calexico and connects Highway 7
to Mexico. The distance between the two ports of entry is between 5 and 6 miles. The eastern port
of entry (Highway 7) is considered more of a commercial port, though automobile traffic is allowed.
The latest statistics found show that in 2007, some 5.7 million persons and an additional 5.7 million
vehicles passed through the Calexico (Hwy 111) Port, while the Calexico East (Hwy 7) port saw 3.7
million persons, 3.4 million vehicles and 323,000 commercial trucks.
June 24, 2010 DRAFT
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Research Item 8: Understand Water Distribution System and Water Availability
Sources: Imperial Irrigation District, City of Imperial, City of El Centro
Imperial Irrigation District (IID) is the wholesale provider of water that is utilized for both residential
and general business purposes. IID also provides water directly to major users in the agriculture
industry (growers). IID receives water from the Colorado River and has a priority to receive 3.1
million acre feet per year.
IID sells water (directly) to farmers at $20 per acre foot (2011 price).
IID has a "General Industry" price of $85 per acre foot.
IID sells water to municipalities for general residential and business use at $68 per acre foot.
IID has allocated 25,000 acre feet of water for new (non-agriculture related businesses) at a price of
$85 per acre foot (meaning, this is allocated water that is available for new industry).
El Centro: Municipal water rates are based on two (2) factors. First, the size of the line that feeds the
home or business. Rates for this range from $3.00 (1/2 inch feed) to $37.00 per month. Water usage
is the second component is priced at $3.17 per 1,000 gallons.
Wastewater treatment charges from the City of El Centro are based on the type of business user and
widely vary. Residential Rates are $44.35 monthly. Commercial rates are attached and are
expressed in charges per 1,000 gallons of water used monthly.
City of Imperial: Municipal water rates are based on two (2) factors. First, is a monthly water
availability charge (currently $12.00). The second is a usage fee, which is tiered. The tier ranges
from 2.10 per HCF of water for first 30 units of water, 2.31 per HCF for next 5 units of water to $2.70
for each HCF beyond 35 HCF per month of use.
Wastewater treatment rates in the City of Imperial are based on a monthly flat rate of $45.60 per
month plus an additional .88 cents per HCF of water use over 36 HCF monthly. There is a
commercial surcharge equal to $2.28 per HCF of water use in excess of 21 HCF (in addition to the
monthly flat rate).
*HCF is equal to 748 gallons of water. 1 HCF is 100 cubic feet of water. 1 cubic foot of water equals
7.48 gallons.
June 24, 2010 DRAFT
Page 9 of 13
Research Item 9: Identify Population Demographics Including Age, Available Workforce,
Education and Average Household Income
Sources: United States Census Bureau, State of California Department of Finance,
Employment Development Department, USA Business Lists, Nielsen/Claritas, Inc.
Population
Estimated 2010 Population
Estimated 2015 Population:
174,808 (Growth 2000-2010 = 22.79%)
192,272 (Projected Growth 2010-2015 = 9.99%)
Average Age (Claritas/Nielsen):
Median Age:
30.62
Average Age:
33.70
Age Distribution (Source: Claritas/Nielsen):
0-17
29.75%
18-34
26.72%
35-54
24.26%
55 over
19.07%
Average Household Income (Source: Claritas/Nielsen)
Est. Average Household Income:
$50,960
Est. Median Household Income:
$37,459
Est. Per Capita Income:
$15,322
Research Item 10: Identify 10 Largest Companies that Operate within Cleantech, Applied
Biotech, Specialized Manufacturing and Logistic Industries and Quantify their Market Size
through a Measure that can be Compared to Other Regions
Sources: USA Business Lists, County of Imperial, Imperial Valley Economic Development
Corporation
Research Item 11: Identify the Per Unit Cost of Power, Water and Wastewater Disposal for
Commercial (Business) Use
City of El Centro Water and Wastewater Rates Attached, City of Imperial Water and Wastewater
Rates Attached (and previously described in Item 8.)
IID Energy Rates for General, Large General and Economic Development Attached.
June 24, 2010 DRAFT
Page 10 of 13
Research Item 12: Provide Information Regarding the Labor Market Including (but not limited
to) Educational Achievement, Current Employment Characteristics and Wage Structures
within Target Industries
Sources: Employment Development Department, Nielsen/Claritas, State of California
Department of Finance
Wage Structures (Certain Industries)
The following are 1Q2005 figures, which are the latest that have been released in detail from the
Employment Development Department for the State of California. It is the opinion of Development
Management Group, Inc. that wages today for those still in their positions are similar to what they
were five years ago in most industries. While all categories below are expressed in per hour wages,
it should be noted that professional positions are typically salary. To determine annual salary of
professional positions, simply multiply the hourly wage by 2080. Note that these are wages and do
not include benefits. Benefits can range from an additional 15% to 25% of wages depending on the
position and the company.
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.
N.
O.
P.
Q.
R.
S.
T.
U.
Total of all wage earners: $15.74 hour
Total of management wage earners: $36.60 hour
Accounting/Auditors: $20.50 hour
Computer Programmers: $22.05 hour
Network Administrator: $27.67 hour
Civil Engineer: $32.71 hour
Lawyer: $40.47 hour
Paralegal: $22.43 hour
Sales Representative: $18.67 hour
Bookkeeping: $13.89 hour
Executive Secretary: $18.26 hour
Legal Secretary: $15.95 hour
Assemblers: $9.75 hour
Maintenance & Repair: $13.95 hour
Industrial Truck/Tractor Operator: $12.20 hour
Construction Worker: $18.83 hour (all trades combined)
Construction Supervisor: $31.27 hour (all trades combined)
Industrial Mechanics: $18.67 hour
Telecommunications Equipment Technician: $23.60 hour
Production Occupations (all combined): $14.54 hour
Production Supervisor (all combined): $23.53 hour
June 24, 2010 DRAFT
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Educational Achievement (Adults 25+) (Highest Level of Achievement):
Less than 9th grade
Some High School, No Diploma
High School Diploma (or GED)
Some College, No Degree
Associates Degree
Bachelor’s Degree
Master’s Degree
17.81%
13.53%
13.47%
17.10%
3.40%
4.20%
2.35%
Available Workforce (April, 2010):
Labor Force:
Employed:
Unemployed:
Unemployment Rate:
75,400
54,400
21,000
27.9%
June 24, 2010 DRAFT
Page 12 of 13
Research Item 13: Provide a Master List of Contacts for Use by Site Selection Consultants and
Others Interested in Making Business Investments within the Imperial County Region
Imperial Valley Economic Development Corporation
Tim Kelley, Chief Executive Officer
1224 State Street, Suite B
El Centro, CA 92243
(760) 353-8332
(760) 353-9149
www.ivedc.com
Imperial County Planning & Development Services
801 Main Street
El Centro, CA 92243
(760) 482-4236
(760) 353-8338 (fax)
Small Business Development Center
301 North Imperial Avenue, Suite B
El Centro, CA 92243
(760) 312-9800
(760) 312-9838 (fax)
www.ivsbdc.org
[email protected]
Imperial Valley Foreign Trade Zone
Esperanza Colio, Econ. Dev. Division Manager
County of Imperial Planning & Dev.Services
(760) 482-4986
[email protected]
www.icpds.com/?pid=619
Diane Cason, Zone Manager
Imperial Valley Enterprise Zone
860 Main Street
Brawley, CA 92227
(760) 351-7155
[email protected]
www.ivez.com
Calexico-County Enterprise Zone
301 Heber Avenue
Calexico, CA 92231
(760) 768-7182
www.calexico-countyez.com
Brawley Manufacturing Enhancement Area (MEA)
Teresa Santiago
383 Main Street
Brawley, CA 92227
760-351-3069
Calexico Manufacturing Enhancement Area (MEA)
Julia Osuna
City of Calexico
608 Heber Ave.
Calexico, CA 92231
760-768-2177
City of Brawley
Community & Economic Development Department
205 S. Imperial Avenue
Brawley, CA 92227
(760) 344-8622
(760) 351-2656 (fax)
www.cityofbrawley.com
Brawley Economic Development Commission
Brawley, CA 92227
(760) 344-3160
(760) 344-7611 (fax)
City of Calipatria
125 North Park Avenue
Calipatria, CA 92233
(760) 348-4141
(760) 348-7035 (fax)
June 24, 2010 DRAFT
Page 13 of 13
City of Calexico
Redevelopment Agency
608 Heber Avenue
Calexico, CA 92231
(760) 768-2177
(760) 357-3831 (fax)
City of Holtville
121 West 5th Street
Holtville, CA 92250
(760) 356-2912
(760) 356-1863 (fax)
www.holtville.ca.gov
City of El Centro
1249 Main Street
El Centro, CA 92243
(760) 337-4543
(760) 352-4867 (fax)
www.cityofelcentro.org
City of Imperial
Imperial, CA 92251
(760) 355-1152
(760) 355-4718 (fax)
City of Westmorland
355 South Center Street
Westmorland, CA 92281
(760) 344-3411
www.cityofwestmorland.net
IMPERIAL VALLEY
FOREIGN TRADE ZONE
Imperial County Planning & Development Services y 801 Main Street, El Centro, CA, 92243
(760) 482-4236 y Fax (760) 337-8907
The Imperial Valley Foreign Trade Zone (FTZ) is located within
the Cities of Brawley, Calexico, Calipatria, El Centro, and the
unincorporated area of the Imperial County.
The FTZ was created to "expedite and encourage foreign commerce" in
the United States. This is accomplished through the designation of
geographical areas, in or adjacent to Customs Ports of Entry.
Merchandise of every description may be held in the Zone without
being subject to Customs duties and other ad valorem taxes.
Key benefits of the FTZ include:
•
•
•
•
•
Relief from inverted tariffs
Duty exemption on re-exports
Duty elimination on waste, scrap, and yield loss
Weekly Entry Savings
Duty Deferral
These types of tariff and tax reliefs are designed to lower the costs of
U.S.-based operations engaged in international trade and thereby create
and retain the employment and capital investment opportunities that
result from those operations. They are also intended to assist U.S.based companies enhance their cost-competitiveness.
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Enterprise Zone Benefits in detail
1. Hiring Tax Credits
State hiring tax credits can amount to over $30,000 per qualified employee over a five-year
period. These credits are designed to provide businesses with incentives to hire qualified
employees to work in the EZ. Enterprise Zone qualifying categories include:
1. Economically Disadvantaged
2. A person enrolled in WIA Core B
Services
4. Was a member of Work
Opportunity Tax Credit (WOTC)
3. A Vietnam era veteran or veteran
recently separated from military
service
5. An ex-offender
6. Participant in welfare-to-work
activities under CALWORKS
8. Recipient of or eligible to receive
public assistance
10. A qualified dislocated worker
7. A Native American
9. Disabled
11. Resident of Targeted Employment
Area (i.e. resident of Brawley or
Calexico)
To get qualified: an employer/employee fills out and application and submits this along with the
supporting documents to the Imperial Valley Enterprise Zone. The zone then reviews the
application and remits a VOUCHER to the employer certifying that this employee’s wages can be
used as credits when filing state tax returns.
Calculation of Credits
The amount of which a business can claim a credit is capped at 150% of minimum wage. The
employer may pay a higher wage, with the amount above the cap not counting toward the credit.
The percentage of wages used to compute the credit depends on the number of years the
st
employee works for the employer in the enterprise zone. It is 50% for the 1 year and declines
10% for each year of employment.
EXAMPLE: ON JAN 1, 2007, A
BUSINESS HIRES A QUALIFIED EMPLOYEE
WHO HAS BEEN VOUCHERED. THIS FULL TIME
EMPLOYEE WORKS 2,080 HOURS IN AN
ENTERPRISE ZONE BUSINESS AT
$12.00/HR
For 2006 credits, the min
wage calculation is based on
$6.75/hr thus $10,542 is the
max credit for 2080 hours work
Enterprise Zone benefits in detail March 2007
ST
MAXIMUM 1 YEAR CREDIT
[$7.50 X 150%] = $11.25
[$11.25 X 2,080] = $23,400
[$23,400 X 50%] = $11,700
1
2. Sales or Use Tax Credits
A credit for sales or use tax can be applied to tax paid on equipment and machinery related to:





Manufacturing, processing, assembly or fabrication of a product
Communications and data processing ( ex. Copy, telephone, fax machines)
Motion picture production
Renewable energy resources
Control of air or water pollution
-
Individuals can claim a credit on the sales or use tax paid on the first $1million of
qualifying purchases, and corporations on the first $20 million. At the 7.75 % sales tax
rate, that’s a credit of up to $17,750 for an
individual and $1.55 million for a corporation.
EXAMPLE: A BUSINESS IS OPERATING IN
AN ENTERPRISE ZONE AND SPENDS
The qualified property must be purchased
$80,000 TO PURCHASE MACHINERY THAT
and placed in service after March 1, 2006
IS USED TO MANUFACTURE TOYS. THE
(the date of the IVEZ’s designation).
SALES TAX PAID WAS $6,200. A
BUSINESS MAY REDUCE THE AMOUNT OF
Tax paid on leased property also can also
STATE TAX INCOME OWED BY $6,200.
qualify in some cases
-
-
3. Net Operating Loss Carryover
A business can carry over up to 100% of its net operating losses from Enterprise Zone activity up
to 15 years or until exhausted.
EXAMPLE: IN 2006, A BUSINESS’S NET OPERATING LOSS WAS $4,000. BECAUSE OF
THE LOSS, THE BUSINESS DID NOT OWE ANY TAX ON YEAR 2006 INCOME.
HOWEVER, IN 2007 THE BUSINESS SHOWED A PROFIT OF $10,000.THE BUSINESS
MAY CARRY OVER THE 2006 $4,000 NET OPERATING LOSS TO REDUCE ITS 2007
TAXABLE INCOME. THIS RESULTS IN A BUSINESS TAXABLE INCOME OF $6,000
($10,000 MINUS $4,000) FOR 2007.
4. Business Expense Deductions
A business can elect to expense out the cost of depreciable items in the first year of use.
Qualifying items include business equipment, furniture and fixtures, but not office supplies
purchased after March 1, 2006. The maximum deduction for all qualified property is either 40% of
the cost of the qualified property, or $20,000, whichever is smaller.
EXAMPLE: AN ENTERPRISE ZONE
BUSINESS SPENDS $40,000
PURCHASING AN OVEN. THE BUSINESS
CAN CLAIM
$16,000 ($40,000 X 40%) AS A
BUSINESS EXPENSE DEDUCTION.
2
5. Lenders’ Deduction
-
-
For lenders investing in the EZ, the net interest deduction is allowed for interest
payments received from a business or trade located within an EZ before the expiration
date of the enterprise zone (for IVEZ
this will be Feb 28, 2021).
EXAMPLE: A LENDER LOANS $5,000 TO
Net interest is calculated as being
AN ENTERPRISE ZONE BUSINESS. THE
the full amount of interest received
LENDER EARNS $550 INTEREST AND INCURS
less any direct expenses incurred to
$300 OF EXPENSES DIRECTLY RELATED TO
make the loan (ex. commission paid
THE LOAN. THE LENDER MAY DEDUCT ITS
to a loan representative and costs of
NET INTEREST OF $250 ($550 -$300)
funding the loan).
FROM ITS TAXABLE INCOME.
Loans include business loans, mortgages and loans from noncommercial sources and were
made after March 1, 2006
3
PLANNING &
DEVELOPMENT SERVICES
DEPARTMENT
BUSINESS
GUIDE
2009-2010
WHAT’S INSIDE
INTRODUCTION
4
Produced by
FINANCIAL &
TECHNICAL
ASSISTANCE
5
CHAMBERS OF
COMMERCE
24
INCENTIVE
ZONES
30
HIRING TAX
CREDITS
37
HIRING AND
TRAINING
AGENCIES
41
MAPS
58
SPECIAL POINTS
OF INTEREST:
• Enterprise Zone
• Foreign Trade Zone
• HUBZone
• Manufacturing
Enhancement Zones
• Maps
PLANNING & DEVELOPMENT
S E R V I C E S D E PA R T M E N T
(ECONOMIC DEVELOPMENT
DIVISION)
This document has been updated by Imperial County
Planning & Development Services
(Economic Development Division)
With funding from
The Department of Commerce
Economic Development Administration (EDA)
PAGE
4 Introduction
Financial & Technical Assistance
Financing Overview
5
Financing Programs
6
City Programs Overview
7
Imperial County Planning and Development Services
8
Imperial Valley Economic Development Corporation
9
Small Business Development Center
10
Neighborhood House of Calexico, Inc.
11
City of Brawley
12
Brawley Economic Development Commission
14
City of Calexico
15
City of Calipatria
17
City of El Centro
19
City of Holtville
21
City of Imperial
22
City of Westmorland
23
24
25
26
27
28
29
Chambers of Commerce
Brawley Chamber of Commerce
Calexico Chamber of Commerce
Calipatria Chamber of Commerce
El Centro Chamber of Commerce
Holtville Chamber of Commerce
Imperial Chamber of Commerce
30
31
33
34
35
36
Incentive Zones
Incentive Zones Overview
Enterprise Zones
Foreign Trade Zone
HUBZone
Manufacturing Enhancement Areas
New Market Tax Credits
2
PAGE
Hiring Tax Credits
Qualified Employees
37
Enterprise Zone and Manufacturing Enhancement Area Hiring
38
Work Opportunity Tax Credits
40
41
43
44
45
46
47
48
49
50
51
52
53
55
56
57
Hiring and Training Agencies
Hiring and Training Overview
Brawley Union High School District Adult Education
Calexico Community Action Council
CalWORKs Employment Services
Center for Employment Training
Department of Vocational Rehabilitation
Employment Development Department
Employment Training Panel
Imperial County Office of Education
Imperial Valley College
Imperial Valley Regional Occupation Program
One Stop Employment Services
San Diego Job Corps
San Diego State University-Imperial Valley Campus
Work Training Center
Maps
58
59
61
62
63
64
65
66
67
68
69
70
Imperial County Census Tracts
Imperial County Road Map
Calexico County and Imperial Valley Enterprise Zone Map
Foreign Trade Zone Map (City of Brawley)
Foreign Trade Zone Map (City of Calexico)
Foreign Trade Zone Map (City of Calipatria)
Foreign Trade Zone Map (City of El Centro)
Foreign Trade Zone Map (Imperial County Airport)
Foreign Trade Zone Map (Drewry Warehousing—Imperial County)
Foreign Trade Zone Map (Gateway of The Americas)
Brawley Manufacturing Enhancement Area
Calexico Manufacturing Enhancement Area
3
Contacts:
Imperial County
Planning &
Development Services
801 Main St.
El Centro, CA 92243
Phone: (760) 482-4236
Fax: (760) 353-8338
Imperial County Planning & Development Services (ICPDS) works in
partnership with other economic development agencies throughout
the county to promote economic growth and improve the quality of life
for all county residents. ICPDS provides this Imperial County Business Guide to new and existing companies to encourage them to
take advantage of the many federal, state and local programs that
may assist in increasing productivity, profitability, and the ability to expand operations.
Services
♦ Low interest loans
♦ Loan application
assistance
♦ Procurement Technical
Assistance Center
There are programs that provide low interest loans and hiring tax
credits in exchange for job creation. When locating within the Enterprise Zone and Manufacturing Enhancement Areas, companies are
also eligible for permit streamlining, additional hiring tax credits, and
other tax considerations that reduce the costs of doing business.
The local hiring and training agencies presented in this Guide offer many services directly
to employers, such as pre-screening and recruitment of job applicants, customized training
for new or existing employees, and subsidies for work experience and on-the-job training.
To help employers reduce employee turnover and training costs, there are many agencies
that provide job coaches, transportation, and childcare assistance to new employees.
The Cities and Chambers of Commerce offer special local events and activities that may
present opportunities for businesses to promote their goods and services.
Acknowledgements
Production of the original Business Guide was made possible by a grant from the Job
Creation and Investment Fund of the California Technology, Trade and Commerce
Agency. This same grant was the result of a community-wide Job Creation Investment
Plan produced by the Overall Economic Development Commission of Imperial
County. This update was done courtesy of the Imperial County Planning & Development
Services Department with funding from the Department of Commerce Economic Development Administration.
We would like to express our appreciation to Imperial Valley Regional Occupation
Program, Employment Development Department and CalWORKs for their assistance
in gathering information for the Hiring and Training section of this Guide.
Additional Copies and Updates
Additional copies of this Business Guide and future updates may be obtained from the
ICPDS office or at www.icpds.com.
4
FINANCIAL OVERVIEW
Public financing resources are available in every City to help expand your business. The majority of the programs provided are in the form of business loans, but grants are available in a
few circumstances. Other programs offer incentives to lenders, improving the likelihood that
your loan will be approved.
City and County staff and agency representatives can help you structure a package that will
make your money go farther. Most of these financing programs require your company to
apply through either the local government or a public agency. To assist you in determining
which programs match your needs and qualifications, all of the financing options are
presented on the following page in a summary matrix showing what the money can be used
for, and who to contact for each program. Types of assistance programs include:
Redevelopment Areas —Business start-up and infrastructure assistance.
Business Loans, including Revolving Loan Funds (RLF) —“Gap” financing for business
location and expansion projects that create or retain jobs for lower income households.
Incentive Areas —Tax credits and other incentives.
First Time Home Buyer Loans —Assists qualified low and moderate-income families with
the purchase of their first home.
5
Programs
Uses
Availability
Micro-Enterprise Loan Fund
City of Holtville
(760) 356-3186
“Gap financing” for working capital,
machinery, equipment, real estate.
City of Holtville
Commercial and Industrial
Revolving Loan Fund RLF
City of El Centro
(760) 337-4543
“Gap financing” for working capital,
City of El Centro (RDA)
Redevelopment Agency Programs Façade improvement, building exCity of Imperial
pansion, construction, land acqui(760) 355-1152
sition and purchase of equipment.
City of Holtville
(760) 356-3186
Revolving Loan Fund (RLF)
Imperial County Planning &
(760) 482-4236
City of Westmorland
(760) 337-3883
Façade improvement.
City of Imperial
City of Holtville
“Gap financing” for equipment, in- Countywide with priority to the
ventory, construct ion, land acquisi- unincorporated areas
tion and working capital.
“Gap financing” for working capital, City of Westmorland
City of Calipatria
(760) 348-4141
“Gap financing” for equipment, in- City of Calipatria
ventory, construct ion, land acquisition and working capital.
City of Brawley (760) 351-2655
“Gap financing” for working capital, City of Brawley
City of Calexico
(760) 768-2177
“Gap financing” for working capital, City of Calexico
USDA Microloan Program
(760) 482-4236
Equipment, inventory, construction, Countywide with priority to the
land acquisition and working capi- unincorporated areas
tal.
Small Business Administration
Loans
Certified Development Company
(760) 353-3095
Long term real estate, equipment Entire County
and general purpose financing.
6
Redevelopment
Business
Home
Areas
Loans
Loans
Incentive Areas
Imperial County
Enterprise Zone, HUBZone &
Foreign Trade Zone, International
Port-of-Entry
City of Brawley
Foreign Trade Zone, Enterprise
Zone, HUBZone, Manufacturing
Enhancement Area & Redevelopment Area
City of Calexico
Manufacturing Enhancement
Area, Enterprise Zone, Foreign
Trade Zone, Target Employment
Area, HUBZone, International
Port-of-Entry
City of Calipatria
Foreign Trade Zone, Redevelopment Area & HUBZone.
City of El Centro
Downtown Façade Improvement,
Centerpoint Industrial Park, Approved Redevelopment Area,
Foreign Trade Zone, HUBZone.
City of Holtville
Redevelopment Area, Downtown
Façade Improvement Program
and Holtville Business District,
HUBZone
City of Imperial
Downtown Revitalization, Approved Redevelopment Area,
HUBZone
HUBZone
City of
Westmorland
7
IMPERIAL COUNTY PLANNING & DEVELOPMENT SERVICES
Contact:
Imperial County
Planning &
801 Main Street
El Centro, CA 92243
Phone: (760) 482-4236
Fax: (760) 353-8338
www.icpds.com
[email protected]
perial.ca.us
Services
♦ Low interest loans
♦ Loan application
assistance
Revolving Loan Fund
Development Services (ICPDS)
operates a Revolving Loan Fund to
help create and retain jobs by
providing businesses in the
unincorporated areas with “gap
financing” for start-up, ongoing
operations and expansions.
ICPDS may provide financing
assistance to a business located
within a city that does not have an
RLF program. The project must
meet ICPDS’s goals.
Eligibility
Businesses must be located within
the unincorporated areas of Imperial County. All types of businesses are eligible to apply for
ICPDS’s RLF assistance except
non-profit corporations, media
firms, lending institutions, recreation and amusement parks, and
real estate investment companies.
The capitalization of the RLF was
made possible through grants to
the County from the California
Department of Housing and
Community Development,
Community Development Block
Grant (CDBG) program and USDA
Rural Development. All loans must
be consistent with CDBG program
regulations.
Loan Amount
No more than 50% of a project’s
total financing can be provided
through the RLF. Applicants must
provide proof that they have been
denied 100% financing through a
bank or other lending institution. It
is desired that the RLF funds be
matched on a 1:1 dollar basis with
private funds.
Collateral
The RLF loan must be secured with
assets adequate to cover the loan
amount. Generally, 10% new equity
is required for existing businesses
and 30% for start-ups.
8
Use of Funds
Funds may be provided for
construction, land acquisition,
equipment, working capital and
fixed asset loans.
Davis-Bacon
and/or State prevailing wages may
be required for public works and
construction loans using RLF funds.
Interest
Depending on credit and collateral,
the interest rate will vary.
HOME Programs
First Time Home Buyer Program is
intended to offer first-time
homebuyer down payment
assistance to all qualified residents
for purchase of qualifying existing or
new home through ICPDS.
Housing Rehabilitation
The Housing Rehabilitation Loan
Program allows ICPDS to offer low
interest rate loans to eligible homeowners of the unincorporated areas
of Imperial County. The purpose of
these loans is to assist homeowners
who meet annual household income
limits set by HUD in improving their
living standards regarding safe,
sanitary, and overcrowded living
conditions. The County has rehab
funding for Seeley, Winterhaven,
Niland, Bombay Beach, Heber, and
Poe Colonia. However, always contact ICPDS for current availablilty.
IMPERIAL VALLEY ECONOMIC DEVELOPMENT CORPORATION
The Imperial Valley Economic
Development Corporation (IVEDC) is
a non-profit corporation that receives
funding support from a group of
private and public sector leaders,
including the Imperial County Joint
Chambers of Commerce, to aggressively market the Imperial Valley to
corporate decision-makers nationally
and internationally.
IVEDC hosts site visits and
coordinates tours and meeting
itineraries for businesses seeking
new locations. Businesses looking
for a new place to locate or expand
their operations are encouraged to
contact IVEDC for further information
and assistance.
Contact
Imperial Valley Economic
Development Corporation
1224 State Street, Suite C
PO Box 3005
El Centro, CA 92243
Phone: (760) 353-8332
Fax: (760) 353-9149
Toll Free: 877-994-8332
www.ivedc.com
Today, competition for new plants
and facilities and the well-paying jobs
they create is more intense, and
more specialized than ever. Imperial
Valley continues to experience
severe unemployment and low per
capita income; however, the Valley
has enormous untapped economic
potential. The Imperial Valley offers
these corporations strong
competitive reasons to locate here.
A business locating in the Valley can
be assured of:
♦ An abundance of low cost water
♦ Reliability and efficiency of locally
owned and generated power
♦ Land availability, zoning and prices
♦Labor pool qualifications and custom training programs
♦ Transportation network linkages
♦ Maquiladora markets and suppliers
IVEDC acts as a clearinghouse for
referring local businesses to planning
and permitting, economic
development, and loan programs
within the Cities and the County.
9
SMALL BUSINESS DEVELOPMENT CENTER
Contacts
Small Business
Development Center
301 N. Imperial
Avenue, Ste B
El Centro, CA 92243
Phone: (760) 312-9800
Fax: (760) 312-9838
www.ivsbdc.org
gustavoreza@imperial.
edu
Services
♦ One-on-one business
consulting for existing and
start-up businesses
♦ Information and referral
resources
♦ Workshops, seminars
and training
♦ Business resource
library
The Small Business Development
Center (SBDC) provides services
for all aspects of business start-up
and management.
Businesses
seeking loans may strengthen their
loan applications by receiving SBDC
assistance to develop or improve
their business and marketing plans.
SBDC offers free or nominal cost
consulting, training, research, and
assistance in all of these areas:
♦ Business and marketing
plan development
♦ Business plan tune-ups, financial
projections and analysis
♦Establishing a banking relationship
♦Permitting and licensing assistance
♦ Access to a resource library
♦ Assistance in identifying
appropriate sources of financing
♦ Assistance with legal issues
♦ Assistance with government
procurement procedures
♦ Entrepreneurial seminars
Business Consulting
In a confidential relationship,
consultants offer their guidance and
expertise in all aspects of business
start-up and management.
SBDC can assist agriculture and
agriculture-related businesses with
business planning and access to
venture capital.
Through SBDC’s Government
Procurement Assistance, small
businesses are assisted in obtaining
local, state and federal contracts.
Workshops, Seminars, and
Training
Consultants provide specialized
services to small businesses
experiencing difficulties or requiring
specialized needs.
10
Business Resource Library
A library of books, publications, and
videos and a collection of Small
Business Resource Guides are
available.
International Trade
Training and counseling is provided
to help businesses secure a niche
in the international market.
Programs include workshops on
marketing, exporting, importing, and
financing.
Home-Based Business Enterprise
Program
SBDC and Imperial County
Planning & Development Services
(ICPDS) have created a program
that offers training and support
services to assist individuals to
become business owners or to
improve operation of a current
business. Loans are available from
$500 to $3,500. Individuals who
complete the program receive a
training certificate, which may be
included in a loan application.
The Imperial County Department of
Social Services may permit eligible
CalWORKs participants to enroll in
the Home Based Business
Enterprise Program to fulfill work
requirements under the CalWORKs
program.
NEIGHBORHOOD HOUSE OF CALEXICO, INC.
Neighborhood House of Calexico,
Inc. provides business supportive
services to low-income County
residents who are current business
owners or desire to establish a new
business venture.
Neighborhood
House also provides proven basic
business strategies on both group
and individualized settings, combined with technical
assistance
needed to obtain economic independence and self-sufficiency.
Eligibility
Loan approval guidelines are
designed to provide loans to individuals who are incapable of obtaining
loans from traditional sources. Case
management is provided on a
continuous basis to assist
businesses to grow and to obtain
additional funding.
Loan Amount
Loans of up to $2,500 may be
obtained with a 3% fixed interest rate
with a two-year term.
♦ 12-month case management
♦ Follow-up services and referrals
Direct Assistance
Neighborhood House will assist
businesses in obtaining loans, grants,
permits and licenses.
Businesses
may also receive assistance in
developing marketing and sales
strategies and business alliances.
Contacts
Ricardo Ortega
Neighborhood House of
Calexico, Inc.
506 4th Street
Calexico, CA 92231
Phone: (760) 357-6060
Fax: (760) 357-2248
[email protected]
[email protected]
www.nhclx.org
Administrative Support
Services
For a nominal fee, Neighborhood
House will provide businesses with
bookkeeping services, use of office
equipment such as fax, telephone,
and computer, and internet access
and message center services.
Meeting and sales room use is also
offered.
♦ One-on-one business
consulting for existing
and start-up businesses
♦ Information and
Referrals
Neighborhood House will assist
businesses to identify business
lending sources, tax incentives, and
employee training programs.
Loan Purposes
Loan proceeds may be used for
business start-up costs, equipment
or inventory purchase.
Business Services
Neighborhood House provides these
services free to businesses:
♦ Business training programs
♦ Credit counseling and repair
♦ Business plan development
♦ Business forecasting and
projections
♦ Budget and cost analysis
11
CITY OF BRAWLEY
Contact
City of Brawley
Community & Economic
Development Department
Brawley, CA 92227
Phone: (760) 344-8622
Fax: (760) 351-2656
www.cityofbrawley.com
Brawley’s government consists of a City
Manager executive with a five person
City Council, mayorship rotating annually among council members. Its economic base is agriculture, principally
alfalfa and truck crops. The domestic
water source is from the Colorado River
via the All-American Canal and the
Imperial Irrigation District.
Redevelopment Area
Services
♦ Redevelopment Area
♦ Business Revolving
Loan Program
♦ Housing Rehabilitation
Program
The City’s Redevelopment Area
includes the downtown area and designated areas around Brawley. The program is administered by Brawley’s
Community Redevelopment Agency.
Loans are provided to new businesses
to assist in the creation of jobs.
♦ Foreign Trade Zone
♦ Enterprise Zone
Enterprise Zone
The City of Brawley is a part of the Imperial Valley Enterprise Zone. Enterprise Zones can save a business thousand of dollars through state tax credits
and deductions. The Enterprise Zone
credits and deductions are available to
individuals, sole proprietors, corporations, estates, trusts and partnerships
operating or investing in the zone. Incentives for businesses that locate or
expand within this area include hiring
tax credits, sales or use tax credit, net
operating loss carryover, business expense deductions, and lender interest
income deductions. Unused tax credits
can be applied to future tax years. The
Enterprise Zone Program is designed to
support and enhance business retention
and development.
Foreign Trade Zone
The Imperial Valley Foreign Trade Zone
(IVFTZ) is located within the City of
Brawley, the City of Calexico, the City of
Calipatria, the City of El Centro, and the
unincorporated area of the Imperial
County. The Foreign Trade Zone designation was awarded in October 2003 by
the State of California. Please see the
Foreign Trade Zone section for more
information.
12
Business Expansion and Retention
Revolving Loan Accounts
This program is administered under the
City’s Community Development Block
Grant Program (CDBG). Program income is funded to new business activity that is eligible and meets local and
national objectives. Fifty percent (50%)
of the Revolving Loan Account (RLA)
allocations are for Business Expansion
and Retention. The RLA provides “gap”
financing for businesses that document
the need for CDBG assistance that will
create or retain qualifying permanent
jobs that will be principally filled by
members of households which have
annual income that is eighty percent
80% or less than the county’s median
household income, adjusted for size.
At least fifty-one percent (51%) of the
funds actually expended for the activity
funded under this RLA during the program year shall be used on revolving
activities (i.e., loans). No more than
twenty-one percent of program income
funds expended during the program
year under this RLA shall be for public
infrastructure improvements. No more
than ten percent (10%) of the total
funds expended for business assistance activities shall be used for activity delivery costs. No more than eighteen percent (18%) of the total amount
of PI actually expended annually may
be expended for general administrative
costs related to this RLA activity. The
total expended for non-revolving activities (grants, activity delivery costs, and
general administration) shall not exceed forty-nine percent (49%) of the
total funds expended during the program year (July 1 through June 30).
At any given time, the funding balance
for either of the RLA’s should not exceed the typical cost of a single RLA
project, plus reasonable administration
costs (up to 18% percent of total expended costs). For example, if your
average Housing Rehabilitation PI loan
cost (including AD and GA) is $58,000
the balance of your Housing Rehabilitation RLA should not typically exceed
this amount.
CITY OF BRAWLEY CONTINUED...
If your average Business Loan cost
(including AD and GA) is $175,000,
the balance of your Business expansion and Retention RLA should not
typically exceed this amount.
Housing Rehabilitation Revolving
Loan Account Program
Thirty percent (30%) of all program
income will be deposited into Housing Rehabilitation, Revolving Loan
Accounts (RLA). This program will be
used to rehabilitate residential units
occupied by households which have
an annual income which is eighty
percent (80%) or less of the country’s median income. At least fiftyone percent (51%) of the funds expended for the activity funded under
this RLA during the program year
shall be used on revolving activities
(i.e., loans). No more than twelve
percent (12%) of the program income funds actually expended during the program year under this RLA
shall be expended for housing rehabilitation grants. No more than nineteen percent (19%) of funds expended from this RLA shall be used
for activity delivery costs. No more
than eighteen percent (18%) of the
total amount of program income expended annually may be expended
for general administrative costs related to this RLA activity. The total
expended for non-revolving activities
(grants, activity delivery costs, and
general administration) shall not exceed forty-nine percent (49%) of the
total funds actually expended during
the program year (July 1 through
June 30). For example, If your average Housing Rehabilitation PI loan
cost (including AD and GA) is
$58,000 the balance of your Housing
Rehabilitation RLA should not typically exceed this amount. If your average Business Loan cost (including
AD and GA) is $175,000, the balance of your Business expansion
and Retention RLA should not typically exceed this amount.
Housing Programs
The Brawley Redevelopment Agency
has established a Redevelopment
Housing Set-Aside Fund to support
housing rehabilitation. Brawley also
utilizes CDBG funds for housing
rehabilitation loans. Some programs
utilized by the City are the following:
Section 504 Single-Family Home
Rehabilitation Program:
This program provides low interest
loans directly to homeowners.
Grants may also be available for
qualified applicants.
Colonia Funds:
A portion of the City has been designated as a Colonia by the County
and State. A Colonia is defined as
an area within 200 miles of an
international border that is in need of
housing and infrastructure. CDBG
grant funds can be used for housing
rehabilitation, street and
infrastructure improvements.
Manufacturing Enhancement Area
All of the area within the city limits of
Brawley is designated as a
Manufacturing Enhancement Area
(MEA).
This allows for state hiring tax credits
and business assistance to stimulate
job creation. Businesses are eligible
to earn up to $30,000 in state hiring
tax credits per qualified employee
over a five-year period.
13
BRAWLEY ECONOMIC DEVELOPMENT
COMMISSION
Contact
Brawley Economic
Development Commission
P.O. Box 218
Brawley, CA 92227
Phone: (760) 344-3160
Fax: (760) 344-7611
Services
♦ Cooperative marketing
and advertising
The Brawley Economic Development
Commission (BEDC) is a voluntary
association of individuals and
organizations, both public and
private, having common interests in
the area of diversifying, stabilizing
and expanding the economic base of
the City of Brawley and its sphere of
influence.
The purpose of the BEDC is to
create and retain employment
opportunities by crafting economic
development plans, facilitating
communications and providing
marketing materials and programs to
stimulate economic activity in the
Brawley area.
The Commission’s activities include
legislative advocacy and action, in
turn promoting business
opportunities in Brawley.
One
successful measure of their efforts is
evidenced with the designation of a
Manufacturing Enhancement Area by
the California Technology, Trade and
Commerce Agency.
The BEDC
initially developed the legislation,
with cooperation and assistance from
the City of Brawley and Senator
David Kelley, the “Brawley Bill”
became law in January 1998.
The BEDC worked in conjunction
with the city towards the designation
of the Imperial Valley Enterprise
Zone. The Enterprise Zone program
is a statewide initiative to create
more jobs and more economic
opportunity in California
communities.
BEDC Activities
♦ Membership and active participation in, valley wide economic
development
meetings and
committees, including: the Overall
Economic
Development
14
Commission, SDSU Expansion
Committee, Main Street Steering
Committee, CA Center for Border
and Regional Economic Studies.
♦ Participation in the North County
Task Force in developing of the
Brawley Courthouse.
♦ Preparation of proposals and
information packages to provide a
professional and timely response to
requests by businesses that may
wish to relocate or expand.
♦ Marketing outreach, including
attendance and participation in
various trade shows aimed at
recruiting new industry to Brawley.
♦ Focus groups to develop strategies
to improve the economic climate in
the City. Such groups include the
North County Task Force and SDSUBrawley Campus.
CITY OF CALEXICO
Contact
City of Calexico
608 Heber Avenue
Calexico, CA 92231
Phone: (760) 768-2177
Fax: (760) 357-3831
Services
♦ International Trade
♦ Housing
♦ Education
♦Entertainment/Recreation
♦ Enterprise Zone
♦ Special Programs
International Trade
With easy access to U.S. and Pacific
Rim transportation routes, Calexico
offers unparalleled opportunity for
international and domestic trade.
Calexico is located just across the
border from Mexicali, the state
capital of Baja California, Mexico.
Each year more than 30 million
vehicles and pedestrians cross into
the U.S. through Calexico’s two
Ports-of-Entry. The East Calexico
Port-of-Entry provides an improved
link to major trucking routes. The
Calexico International Airport
provides private international charter
flight services.
Housing
Calexico offers some of California’s
best opportunities for home
ownership. A booming construction
industry has provided an abundance
of beautiful high-quality, yet affordable housing in well-designed, conveniently located neighborhoods.
Education
Calexico public and private schools
offer nationally recognized,
award-winning primary and
secondary educational programs.
Post-secondary education is
available at the Calexico Campus of
San Diego State University, and at
Imperial Valley College. More than
20 local agencies and programs
provide vocational training that can
be tailored to the specific needs of
potential employers.
Entertainment and Recreation
♦ 10-plex movie theater
♦ Excellent restaurants
♦ Variety of shops
♦ Skate Park
♦ Adjacent to Mexicali, City of
900,000
♦ Imperial Sand Dunes (40 miles)
♦ Colorado River (60 miles)
15
Calexico County Enterprise Zone
The Calexico-County Enterprise
Zone (CCEZ) is located within the
City of Calexico and the unincorporated area of Imperial County. The
CCEZ was created on October 15,
2006 and is designated until 2021.
The CCEZ is governed by a Joint
Powers Authority (JPA), formed by
the County of Imperial, City of Calexico, and the Imperial Irrigation District.
Please see the Calexico
County Enterprise section for more
information.
Foreign Trade Zone
The Imperial Valley Foreign TradeZone (IVFTZ) is located within the
City of Brawley, the City of Calexico,
the City of Calipatria, the City of El
Centro, and the unincorporated area
of the Imperial County. The Foreign
Trade Zone designation was
awarded in October 2003 by the
State of California. Please see the
information.
Special Programs
The City of Calexico offers a variety
of programs that stimulate economic
development in the City. Special
Programs include:
♦First Time Home Buyer
Program – Assists low-income
families in the purchase of their first
home.
♦Housing Rehabilitation Loan
Program- Loans utilized to improve
or upgrade property to preserve the
City’s residential neighborhoods.
♦Loan Program – Loans available for
small and large businesses.
♦Storefront Rebate Program –
Designed to stimulate building
improvements within the Downtown
Redevelopment Project Area.
♦ Sign Program- Assist businesses in
the installation and/or replacement of
their sign.
CITY OF CALEXICO CONTINUED...
Calexico Revolving Loan Fund Program
The purpose of the Calexico (CRLF) is
to help Create and/or retain jobs by providing businesses located in the City of
Calexico Redevelopment Area with gap
financing for start-up ongoing operations
and expansions.
More than 51% of jobs retained and/or
created through the CFLR will be for
persons from low to moderate income
households.
The CLRF will assist businesses within
the areas of
the Redevelopment
Agency.
•
All types of private businesses are
eligible to apply for RLF assistance,
except non-profit corporations, media firms, lending institutions, real
estate investment companies, recreation and amusement parks.
•
Proof that borrower is not able to
secure 100% financing through a
bank or other lending institution.
Manufacturing
(MEA)
Enhancement
Area
The Manufacturing Enhancement Area
(MEA), was drafted to stimulate job
creation in areas experiencing triple the
State of California’s unemployment in a
Border Environment Cooperation Commission Region. Special State and local
incentives encourage business investment and promote the creation of new
jobs. The purpose of the program is to
provide tax incentives to businesses and
allow private sector market forces to
revive the local economy.
Program Benefits
•
Streamlining local regulatory controls.
•
Reduced local permitting fees; and
•
MEA companies to earn $29,234 or
more in state tax credits for each
qualified employee hired.
16
C I T Y O F C A L I PAT R I A
The City of Calipatria works in
partnership with a number of economic
development agencies throughout the
County and works closely with State and
Federal agencies to access financial
resource and services that may benefit
local businesses and investors. This is
done, not only to aid local investors, but
to promote economic growth and
improve the quality of life for all City
residents. Calipatria welcomes your
business as part of our growing
community and extends to you all the
tools for success.
Business Assistance Loans Program
The City utilizes Economic Development
Block Grants (EDBG) funds to help aide
new business development or
expansion. This program provides GAP
financing for a variety of uses from
working capital to land acquisition.
Equipment purchase and modernization
loans are also available. Even though
the EDBG funds do not provide full
financing the terms and conditions tend
to be more flexible than traditional bank
financing. Your business can qualify for
up to $35,000 per job created at interest
rates below conventional financing.
Calipatria Redevelopment Agency
The purpose of the Redevelopment
Agency (RDA) program is to provide
financial subsidies for businesses
wishing to engage in rehabilitation and
other physical improvements to projects
within the approved Redevelopment
Zone or that will provide a benefit to
Redevelopment Zone residents.
Loan and/or grant funds may be used for
the purpose of removing blight,
increasing improvements including sewer
lines and other needed infrastructure
within under-developed properties,
increasing a site’s property value and/or
its commercial or industrial use.
Revolving Business Loan Fund (RLF)
The City of Calipatria has established a
Revolving Business Loan Fund that will
help maximize the number of jobs
available by ‘recycling’ loans over and
over through loan repayments. Although
the loans can provide not more than half
of total project funding, they assist in
covering any financial gaps. Guidelines
provide for a minimum loan amount of
$25,000 and a maximum of $200,000.
Loans are available for:
♦ Working Capital
♦ Construction
♦ Business Start-Up
♦ Land Acquisition
♦ Equipment Purchases and
Modernization
♦ Business Expansion
♦ Refinancing of Other Debts
Rural Business Enterprise Grants
The United States Department of
Agriculture (USDA), Rural Development
has Rural Business Enterprise Grants
available to the City of Calipatria that
may be used for capital improvements
benefiting for the benefit of your
business.
Calipatria meets the rural
criteria set by USDA and can extend a
number of resources to qualifying
business. Programs target small and
emerging businesses that will have less
than 50 new employees and less than $1
million in gross annual revenues. Your
business may be able to benefit from
some of the programs. Because this is a
City driven process, a preliminary
meeting should be scheduled with the
City Manager.
New Market Tax Credit (NMTC)
The City of Calipatria is located within a
NMTC approved boundary. The NMTC
Program permits taxpayers investing in a
Community Development Entity (CDE) to
receive a credit against Federal Income
Tax. In return the CDE must use the
investment by lending or re-investing in
qualifying communities such as
Westmorland. The funds are available to
developers wishing to provide a service
or benefit, including job creation, within
the community and are available at more
attractive rates than may be available
through traditional financing.
Foreign Trade Zone
The Imperial Valley Foreign Trade Zone
(IVFTZ) is located within the City of
Brawley, the City of Calexico, the City of
Calipatria, the City of El Centro, and the
County. The Foreign Trade Zone designation was awarded in October 2003 by
the State of California. Please see the
information.
17
Contact
City of Calipatria
P.O. Box 167
Phone: (760) 348-4141
Fax: (760) 348-7035
Services
♦ CDBG
♦ HUBZone
♦ Revolving Business
Loan
and Agency
C I T Y O F C A L I PAT R I A C O N T I N U E D . . .
Micro Enterprise Program – Commercial
Façade Improvement
The City of Calipatria has entered a contractual relationship with the California Department of Housing and Community Development (HCD) to administer the Commercial
Façade Improvement Program (Program)
funded with Community Development Block
Grant (CDBG) funds and described herein.
The Program is designed to provide assistance to business owners and property owners to improve the appearance of nonresidential properties within the City of Calipatria, thereby removing slum and blight
and meeting a national objective for the
Department of Housing and Urban Development (HUD) while fostering economic development. The program provides grants up to
$50,000.00 and loans for an additional
$50,000.00 to eligible business owners and
property owners to improve the façades of
the buildings they own or lease.
18
CITY OF EL CENTRO
Contact
City of El Centro
Economic Development
1249 Main Street
El Centro, CA 92243
Phone: (760) 337-4543
Fax: (760) 352-4867
www.cityofelcentro.org
The City of El Centro is the center of
one of Southern California’s most
promising new commercial and
industrial regions and just 15 minutes
from the international industrial
complexes in Mexicali, Baja
California.
There are two
international border crossings nearby
for commercial and non-commercial
vehicles.
Services
♦ Commercial and
Industrial Revolving Loan
Fund Program
♦ Façade Improvement
♦ Promotion of commercial
and industrial land
♦ Centerpoint Industrial
Park
♦ First Time Home Buyer
Assistance Program
♦ Promote the
development of projects
that are in scale with the
character of the El Centro
community.
♦ Professional staff
assistance
♦ Housing Improvement
Program
The Redevelopment Agency is
responsible for economic
development and redevelopment
activities throughout the City and
Redevelopment Areas. The RDA is
the primary liaison with business
owners, property owners, developers
and local business oriented
organizations to aid in the attraction
and retention of businesses.
Approved Redevelopment Area
Businesses that locate within any of
the Approved Redevelopment Areas
receive priority consideration for
loans and are eligible for assistance
under the Façade Improvement
program.
Centerpoint Industrial Park
This industrial park is within the
approved Redevelopment Area. It
lies at the eastern edge of the
incorporated city limits of the City of
El Centro.
The industrial park
consists of approximately 80 acres,
with 36 lots. The park is fully served
by all pertinent city services (water,
electric, curbs, gas, cable, drainage,
gutters, sidewalks, paved street,
street lighting). The zoning allows
for a wide-range of manufacturing,
fabrication, industrial and selected
business uses.
Commercial and Industrial
The primary goal of the RLF program
is to assist and facilitate commercial
and industrial revitalization through
gap financing. This is intended to aid
in the development and expansion of
commercial and industrial
businesses to generate employment
opportunities, stimulate private
reinvestment, and improve those
areas experiencing economic
decline. The maximum loan amount
of RLF funds available to a single
business will be $100,000. The minimum standard job/cost ratio is one
job per $35,000 of RLF funds. The
goal for the RLF funds is to be
matched on a 2:1 dollar basis with
private funds. Funds may be used
for construction, land acquisition,
equipment and working capital.
First Time Home Buyer Program
This program is intended to offer
first-time homebuyer down payment
of the City for purchase of any
existing or qualifying new home
through the Redevelopment Agency
program.
The Redevelopment Agency Set-ASide Fund provides funding loans to
enable households earning up to
120% of median income to enable to
qualify for permanent financing of
single-family homes.
The
down-payment assistance may be up
to $20,000, which may be repaid in
twenty years with interest-only during
the first five years.
Housing Improvement Program
Façade Improvement Program
The purpose of this program is to
encourage rehabilitation of
commercial storefronts in the
downtown area and any commercial
property located within the
boundaries of the Redevelopment
Area.
19
This program is designed to provide
qualified households with a low
interest rate loan to rehabilitate their
single family dwelling in the City of El
Centro. Maximum loan amount is
$90 per square foot for
reconstruction and $80,000 per unit
CITY OF EL CENTRO CONTINUED . . . . . .
for rehabilitation. Authorized loans
are given at a 3% interest rate,
secured by a Deed of Trust with a
maximum term of 15 years.
Deferred loans at a 0% interest rate
are also secured by a Deed of Trust.
Loans are reviewed every 36 months
at which time the Note may be amortized for a maximum term of 15 years
or may continue to be deferred. Deferred loans for the elderly with a 0%
interest rate are also secured by a
Deed of Trust. Loans are reviewed
every 84 months at which time the
Note may be amortized for a maximum term of 15 years or may continue to be deferred.
Applicants must be low-income,
defined as having an income that
does not exceed 80 percent of the
area median income, adjusted for
household size. The property to be
rehabilitated must be in the City of El
Centro.
Partial list of items that can be
improved through the program are
roofing & air conditioning, windows &
doors, plumbing & electrical, kitchen
cabinets, insulation & weather,
proofing, paint & floor coverings,
additions, and total reconstruction.
Foreign Trade Zone
The Imperial Valley Foreign Trade
Zone (IVFTZ) is located within the
City of Brawley, the City of Calexico,
the City of Calipatria, the City of El
Centro, and the unincorporated area
of the Imperial County. The Foreign
Trade Zone designation was
awarded in October 2003 by the
State of California. Please see the
information.
Micro Enterprise Zone Loan Program
Program has been established to provide micro business loans to persons
owning or developing micro businesses in the city of El Centro.
•
Loans are available from $500 to
$5,000. Interest fixed 2% to 3%
•
Terms will vary depending on loan
amount requested:
$500 to $2,500 2 to 18 months
Up to $5,000
2 to 36 months
•
Funds may be used for real estate
acquisition; construction and rehabilitation of business facility;
working capital; inventory; and
furniture, fixtures, machinery, and
equipment.
•
Applicants household income
should meet low to moderateincome requirements. For example, the annual income for a low
income family of four should be
$41,200 and moderate income
should be $61,800.
•
Must operate within the City of El
Centro.
•
Must be sole proprietorship and
for profit.
•
Employ or plans to employ
more than 5 persons.
Benefits of the Foreign Trade Zone
include:
♦Relief from inverted tariffs
♦Duty exemption on re-exports
♦Duty elimination on waste, scrap,
and yield loss
♦Weekly Entry Savings
♦Duty Deferral
20
no
CITY OF HOLTVILLE
Contact
City of Holtville
121 West 5th Street
Holtville, CA 92250
Phone: (760) 356-2912
Fax: (760) 356-1863
www.holtville.ca.gov
Services
♦ Business Assistance
Loan Program (CDBG)
♦ Commercial Façade
Improvement Program
(RDA/CDBG)
♦ Housing Rehabilitation
Program (CDBG)
♦ First Time Homebuyer
Program (CDBG)
BUSINESS PROGRAMS
Business Assistance Loan Program (CDBG):
The City of Holtville offers a Business Assistance Loan Program to
provide financing loans up to
$100,000.00 with flexible terms to
eligible business in the City that will
in turn create and/or retain jobs for
the Target Income Group (TIG). The
TIG are those whose income is 80%
or less of the County Median Income.
The Business Assistance
Loan Program aims to increase the
commercial and industrial base of
the community.
Commercial Façade Improvement
Program (CDBG):
The City of Holtville offers a Commercial Façade Improvement Grant
Program that provides assistance to
business owners to improve the appearance of non-residential properties within the City, thereby removing
slum and blight. The Program provides grants up to $50,000.00 and
loans for up to an additional
$50,000.00 to eligible business owners. Eligible business owners must
be micro-enterprise with five or less
employees from the Target Income
Group.
RDA Commercial Façade Improvement Program:
Holtville’s Redevelopment Area encompasses the entire City of Holtville. The Redevelopment Agency
21
offers matching funds up to 50% or
$5,000 to local businesses for Façade Improvements. The Redevelopment Agency may also provide
gap financing concurrent with the
Business Assistance Loan Program.
HOUSING PROGRAMS
Housing Rehabilitation Program
(CDBG) – Owner Occupant/Owner
Investor (Rental):
The Housing Rehabilitation Loan
Program consists of a low-interest
housing rehabilitation loan to lowincome homeowners who meet the
program requirements. The housing
rehabilitation activities include repair
or replacement of foundations, roofs,
siding, flooring, plumbing and electrical systems or total reconstruction.
Beneficiaries either tenants or owner
occupants must be from the Target
Income Group.
First Time Home Buyer Program
(CDBG):
The First Time Home Buyer Program is intended to offer first-time
homebuyer down payment
for the purchase of an eligible
home. The amount of Program assistance to a first time homebuyer
toward the purchase of a home is
up to $100,000.00 for those of low
to moderate income. Borrowers
must be from the Target Income
Group and must purchase a home
within the City limits.
CITY OF IMPERIAL
The City of Imperial is dedicated to
economic development, building
housing, and improving the quality
of life for the residents and
businesses in the City. The City
partners with local businesses and
the community to accomplish
economic revitalization in all commercial and industrial areas with
focus in Downtown Imperial,
strengthen neighborhoods, assist
Imperial schools, and effectively
implement the community’s vision.
The City of Imperial created its
Redevelopment Agency to provide
economic stimulus within the
redevelopment project area by
capitalizing on the characteristics
and resources unique to the City of
Imperial. The Agency invests in
improvements such as parks, and
other public amenities to make
project area more livable for existing
residents and businesses, and to
make them more attractive to
potential employers and investors.
The following
available:
incentives
are
♦Funding Assistance for façade
improvements, construction,
revitalizing existing buildings,
expansion of business and new
buildings.
♦Land Cost Write Down – land
purchased by the Agency and resold
to the business at a discounted rate,
♦Construction of public infrastructure
(water and sewer) in support of the
business,
♦ Assistance with demolition and
removal of blighted buildings
♦ Assistance with site assemblage
through merger of substandard
parcels.
Housing
A variety of housing types, such as
high-end homes, planned
developments, and affordable
housing, is available in the City of
Imperial. The City maintains a First
Time Homebuyer Program to assist
eligible families with down-payment
assistance.
Industrial Parks
There are two major industrial parks
located within the Redevelopment
Project Area. The Imperial Business
Park occupies 60-acres in an area
adjacent to the Imperial County
Airport. The Crown Commercial
Business Park is located next to the
California Midwinter Fairgrounds and
next to a rail line. These
master-planned business parks allow
for a variety of fabrication, research
facilities, light industrial and other
compatible businesses. An additional 40-acres of land and future
annexation areas are also available
for industrial development.
Revolving Loan Fund program
The primary goal of the RLF is to
assist commercial and industrial
revitalization through gap financing.
This is intended to aid in the development and expansion of commercial and industrial businesses to
generate employment opportunities,
stimulate private reinvestment, and
improve those areas experiencing
economic decline. The maximum
loan amount of RLF funds to be
loaned to a single business will be $
200,000. The goal of the RLF is to
be matched on a 2:1 dollar basis
with private funds. Funds may be
used for construction, land acquisition, equipment and working capital.
Micro Lending program
This program is intended to serve
businesses that employs no more
than 5 people, operates in the Imperial County, and classified as a sole
proprietorship.
22
Contacts
City of Imperial
Imperial, CA 92251
Phone: (760) 355-1152
Fax: (760) 355-4718
www.imperial.ca.gov
Services
♦ CDBG Grant Program
♦ Redevelopment Agency
♦ First Time Home Buyer
Assistance Program
CITY OF WESTMORLAND
Contacts
City of Westmorland
PO Box 699
355 South Center Street
Westmorland, CA 92281
(760) 344-3411
www.cityofwestmorland.net
Services
♦ Low Interest Loans
♦ Loan Application Assistance
Business Loan Assistance and
Re vo l vin g L oa n Ac co unt
Program
The City’s Redevelopment Agency
offers the following incentives:
The City of Westmorland utilizes
the California State Department of
Housing and Community
Development Community
Development Block Grant (CDBG)
program funds for a Business Loan
Assistance and Revolving Loan
Account Program.
•
Land Cost Write Down (land purchased by the Agency and resold
to the business at a discounted
rate).
•
Supports businesses by aiding in
the construction of infrastructure.
•
Payment of certain impact fees
on behalf of the business
•
Assistance with demolition and
removal of blighted buildings
•
Assistance with site assemblage
through lot mergers of substandard parcels.
Although the loans may not provide
for all financing, they assist in
covering any financial gaps. The
Program guidelines provide a
minimum loan amount of $10,000
and maximum of $200,000.
Loan Types
Working Capital/Lines of Credit
Loans may help with cash-flow
deficiencies in times of economic
downturn.
Construction/Acquisition Loans
assist in revitalizing existing
buildings, expansion of business
and new buildings.
Equipment purchase and
Modernization Loans are available
for inventory revitalization and
various equipment renovations.
Interest
The interest rates available usually
range between 4% and 7%
depending upon credit worthiness.
Eligibility
The business must be located
within the City of Westmorland and
show a necessary and appropriate
need for
assistance.
The
business must also offer half of its
new employment positions to
individuals from the Targeted
Income Group, that is, those who
live in households that earn 80% or
less of the median household
income for Imperial County.
23
The incentives listed above may
vary depending upon the size and
scope of the business.
BRAWLEY CHAMBER OF COMMERCE
A well-planned, beautiful community
of stately homes and parks greets
travelers entering Brawley today
from any direction. Brawley is the
center of the greatest proven
producing area in the United Statesa claim sustained by its annual
record of produce shipments, and
its accredited rank as the second
busiest produce shipping point in
California. From a single brush
wickiup in 1901, has grown this
prosperous and well-built City
located 26 miles north of the
US-Mexican border, 120 miles east
of San Diego.
Facts and Figures
The average minimum temperature
in Brawley is 56 degrees; average
maximum is 85 degrees; average
humidity is 30 percent with two
inches of rain annually. The
elevation is 113 feet below sea
level. The total population is 22,052
(2000 census).
dunes where off-road enthusiasts
come from all over the nation to
play. The northern and western
mountains provide a rugged and
picturesque skyline that surrounds
the relatively unspoiled desert
mesa.
Brawley has four tennis courts,
three mini-parks, six neighborhood
parks and three community parks.
The City has one Olympic-size pool.
Public Facilities
Brawley also has many facilities for
public functions, such as:
♦ Palmer Performing Arts Center
♦ Cattle Call Arena
♦ Lions Convention Center
♦ Senior Citizens Center
♦ Warne Football Field
♦ Wiest Baseball Field
Events and Activities
Brawley is home to one of the finest
Western celebrations in the United
States. Each year, an estimated
50,000 people converge on Brawley
to enjoy the many special events
during Cattle Call. The Brawley
Cattle Call began in 1956 to honor
Imperial Valley’s cattle industry. The
City of Brawley leased a 50-acre
arena for one of the finest rodeo
grounds in the southwest. The Cattle
Call Parade is now one of the largest
western parades in the southwest.
The Brawley Chamber of Commerce,
established in 1904, is dedicated to a
healthy business climate through a
commitment to economic growth in
order to ensure that Brawley’s
community has quality schools,
libraries, parks, public safety and
adequate infrastructure, through a
strong sales tax base.
Through the work of the Rodeo
Committee, the Cattle Call Rodeo is
now recognized as one of the best
PRCA-sanctioned rodeos in the US.
To the north is the Salton Sea,
California’s largest lake. To the east
are the dramatic yet desolate sand
24
Contacts
Brawley Chamber of
Commerce
PO Box 218
Brawley, CA 92227
Phone: (760) 344-3160
Fax: (760) 344-7611
www.brawleychamber.com
CALEXICO CHAMBER OF COMMERCE
Contacts
Calexico Chamber of
Commerce
1100 Imperial Avenue
Calexico, CA 92231
Phone: (760) 357-1166
Fax: (760) 357-9043
www.calexicochamber.net
The Calexico Chamber of
Commerce is the leading force
advancing the growth of business,
education and encouraging
community and bi-national
partnerships to strengthen our
economy and enhance Calexico's
quality of life. We utilize our unique
market position as a Southwest
International Gateway to promote
our Chamber members, merchants,
and commercial industry to
prospective consumers, tourists, and
international neighbors. We support
our city's efforts to promote Calexico
as an ideal location for industrial and
commercial development. These
services will be provided in a setting
that is friendly, responsive, informed,
multi-cultural, and technologically
progressive.
Facts and Figures
Calexico was incorporated in 1908
and has a population of 30,000. The
elevation is 12 feet above sea level.
Local Clubs, Organizations
♦ Elks Lodge #1382
♦ Host Lions Club
♦ Noon timers Lions Club
♦ Rotary Club
♦ Bulldog Booster Club
♦ Police Officers Association
♦ Soroptimist International
♦ 20/30 International #427
♦ Woman’s Improvement Club
♦ Teachers Association California
School Employees Association
♦ P.A.L.
♦ American Legion
♦ Las Vecinas Auxiliary
♦ Optimist Club of Calexico
Calexico holds many entertaining
events year round, including:
♦ Joint Chambers Business Showcase
♦ July Fireworks Extravaganza
25
♦ Welcome New Teachers Luncheon
♦ Calexico Downtown Christmas
Parade
♦ Mardi Gras “A Beer Tasting
Xperience”
♦ Calexico Centennial Preview
♦ Mariachi Festival Week
♦ Mariachi Festival Concert
♦ Chamber Membership Dinner &
Lava Lamp Awards
♦ Chamber Mixers
♦ Ribbon Cuttings & Grand Openings
♦ Chamber Business Lecture Series
Business Opportunities
If you offer products or services that
target individuals and corporations in
Calexico, you are offered a low-risk
banner advertising campaign that
works. When you advertise on the
Calexico Chamber of Commerce
website, you'll reach a specifically
targeted audience interested in
regional goods and services,
consisting of tourists, consumers, and
local residents.
C A L I PAT R I A C H A M B E R O F C O M M E R C E
Since its incorporation, the City of
Calipatria has had a rich, eighty
three year old history and
developed as a semi-rural
community with farming as its major
industry. The City of Calipatria, an
exciting gateway for NAFTA, is
ideally situated within an
ever-growing corridor of commerce
between Los Angeles and Mexico.
Calipatria has excellent
transportation opportunities and a
projected growth that makes it the
premiere place to do business.
The Community
Calipatria is located in the Northern
part of Imperial County with a
population of 7,800 (which includes
4000 prison population). Elevation is
185 feet below sea level. Calipatria
has a small town flavor; it is friendly
and enjoys a multi-cultural ambience
that is enjoyed by all. Located 50
miles north of the Mexico Border,
short drives from San Diego, Palm
Springs, Los Angeles, and Colorado
River, one can enjoy the relative
serenity and low cost of small town
living while maintaining the option to
access urban areas.
Entertainment and Recreation
Contacts
♦ Imperial Sand Dunes (30 miles)
Calipatria Chamber of
Commerce
150 N. Park
Mailing Address
P.O. Box 1020
Phone: (760) 348-2218
Fax: (760) 348-7035
www.calipatria.com
♦ Colorado River (60miles)
♦ San Diego Beaches (120 Miles)
♦ Salton Sea fishing and Recreation
(4 miles)
♦ Del Rio Golf Course (8 miles)
♦ City Skate Park
♦ Fishing
♦ Bird watching
♦ Off road vehicle trails
The Sonny Bono Wildlife Refuge
located in Calipatria, includes 35,484
acres of salt marsh and open water,
as well as 2,000 acres of pasture
and freshwater marsh. The refuge is
one of the lowest places in the
United States, about 228 feet below
sea level. The rising waters of the
Salton Sea have inundated most of
the refuge. Visitors should be
prepared for extremely hot weather
during summer months.
26
EL CENTRO CHAMBER OF COMMERCE
Contact
Cathy Kennerson, ACE
Chief Executive Officer
El Centro Chamber of
Commerce & Visitors Bureau
1095 S. 4th Street
El Centro, CA 92243
Phone: (760) 352-3681
Fax: (760) 352-3246
www.elcentrochamber.com
[email protected]
Services
♦ Promotes economic
development
♦ Promotional and networking
opportunities
♦ Promotes El Centro and the
Imperial Valley
♦ Informational service
The City of El Centro, covering 9.17
square miles, is the largest city in
Imperial County and became the
county seat in 1907. The city lies 52
feet below sea level. The sun does
not shine every day of the year, but
it comes nearer to doing so than in
any other place in the United States.
The population of El Centro is
41,030 with people below the age of
20 being the highest age group.
El Centro Chamber of Commerce & Visitors Bureau is an advocate for business,
provides economic leadership and fosters
community pride to ensure growth, prosperity and quality of life in El Centro and
the surrounding region.
The Chamber:
♦ Creates a strong local economy
♦ Promotes the community
♦ Provides networking opportunities
♦ Represents the interest of business
to government
♦ Takes political action
Business Opportunities
The Chamber offers its business
members an array of services including:
♦ Website promotion
♦ Business directory/county map promotion
♦ Advertising at special events
♦ Business referrals
♦ Employer training
♦ Value-added benefits
♦ Networking events
♦ Visitors Center promotion
♦ Access to local, state and federal
elected representatives
♦ Partnering with CalChamber to stop
job killer bills and pass job creation
bills
♦ Partnering with the U.S. Chamber
27
to stop bills that impact businesses
and pass bills that help grow businesses
Events
The Chamber organizes many
promotional events such as:
♦ Los Vigilantes Christmas Parade
♦ Snowbird Breakfast
♦ Tamale Fiesta
♦ Freedom Fest
♦ Air Show Gala
♦ Business Showcase
Recreation
Come explore the 4,600 square
miles of Imperial County, comprising
one of California’s most diverse natural playgrounds, including:
♦ Heber Dunes
♦ Palo Verde Park
♦ Red Hill Marina
♦ Sunbeam Lake
♦ Mud Pots
♦ Desert Oasis (hot spring spa and
long term visitor area)
♦ Imperial Sand Dunes
♦ Oyster Shell Beds
♦ Painted Gorge
♦ Tumco Mines
♦ Yuha Geoglyphs
♦ Sonny Bono Salton Sea National
Wildlife Refuge
♦ Fossil Canyon
♦ Old Plank Road
♦ Salton Sea
♦ Superstition Mountain OHV area
HOLTVILLE CHAMBER OF COMMERCE
Holtville - the Carrot Capital of the
World - boasts some of the most
productive farmland in the world.
The area specialty is the harvest of
winter vegetables and melons.
Aided by the sunny climate and an
intricate network of canals to supply
water, this fertile land produces
crops such as carrots, lettuce, broccoli, cauliflower, melons, wheat, cotton and alfalfa hay. The crops are
sent around the nation and to many
parts of the world.
Facts and Figures
Holtville’s population is around 6,000
and many more reside in the
surrounding rural area. The school
district has an enrollment of 1900
students. The city is 16 feet below
sea level. Average winter
temperature is 69°F and summer,
105°F. Holtville has clean air, plenty
of water, good sewer service, easy
access to Interstate 8, freight rail
connection and low electricity rates.
Recreational opportunities abound
in and around Holtville. Dune
buggies and ATVs run on the desert
sand dunes located just minutes
from town. Well-maintained golf
cours es pr ovide year-round
recreation. The Colorado River
provides fishing, boating and
sightseeing. Desert areas and state
parks allow for hiking, camping, rock
hounding, bird watching and
exploring. In the city, there are
parks, tennis courts, softball fields, a
swimming pool, and barbecue and
picnic facilities.
Holtville is also the host to the
renowned Carrot Festival, which is
held annually.
Community Organizations
Holtville has a variety of school,
civic, church and fraternal
organizations including:
♦ Athletic Club
♦ Soroptimist Club
♦ 4-H Club
♦ Rotary Club
♦ Swiss Club
♦ Woman’s Club
♦ Woman’s Auxiliary
♦ VFW
♦ American Legion
♦ Holtville Soccer Association
♦ Friends of the Library
♦ Babe Ruth and Little League
programs
28
Contacts
Holtville Chamber of
Commerce
101 W 5th Street
Holtville, CA 92250
Phone:(760) 356-2923
Fax:(760) 356-2925
www.holtvillechamber.org
Services
♦ Promotional and
networking opportunities
♦ Promotes Holtville and
the Imperial Valley
IMPERIAL CHAMBER OF COMMERCE
Contacts
Imperial Chamber of
Commerce
PO Box 218
101 E. 4th Street
Imperial, CA 92227
Phone: (760) 355-1609
Fax: (760) 355-3920
www.imperialchamber.ca.gov
Imperial is a City of firsts. It was
officially designated as a town site in
1902. This designation was then
followed by the first chamber of
commerce in 1903, first hotel, first
school, first church, first source of
supplies for farmers, and first printing
press in the Imperial Valley.
It is 64 feet below sea level and on
average, receives between three and
four inches of rain per year. Imperial
is the headquarters for the Imperial
Irrigation District (IID), the sixth
largest power utility in California and
one of the largest irrigation districts
in the world. The IID provides jobs
for more than 1,100 people, services
irrigation water to nearly 500,000
acres of fertile farmland, and
generates and distributes electricity
to a 6,741 square mile area.
Clubs and Organizations
To join the following clubs or for
information, contact the Chamber of
Commerce:
♦ AARP
♦ American Legion
♦ American Heart Association
♦ Alzheimer’s Patients, Caregivers
♦ American Lung Association
♦ Area Agency on Aging
♦ FFA (Future Farmers of America)
♦ Four-H (4-H)
♦ Mexican American Golf Club
♦ Masonic Temple
♦ Moose Lodge
♦ Friends of the Library
♦ Gem and Mineral Society of
Imperial Valley
♦ Imperial Valley Pioneers Museum
29
♦ Kiwanis Club
♦ Lioness Club
♦ Quarterback Club
♦ Boy and Girl Scouts
♦ Senior Dominos
Public Facilities
Imperial has a public pool, library
and a park for its community
members. The City also offers the
Imperial Valley Expo which hosts
trade shows, RV getaways, lifestyle
expos, spectator sports, BBQ’s and
banquets, fundraisers, concerts and
car racing.
Imperial is the home of the California
Mid-Winter Fair and Fiesta, which is
usually held in early March. Imperial
also holds an annual Christmas
Parade and Bazaar, Spring Fling,
Turkey Drive and Cow Chip Contest.
This year Hawg Wild, the Harley
Davidson Cycle shop, started an
annual BBQ and raffle.
INCENTIVE ZONE OBJECTIVE
Imperial County offers great opportunities for business because it is currently one of the fastest growing
counties in the State of California and it is located in an area with great trade possibilities. There are
also several federal and state designations throughout Imperial County that promote economic development by offering incentives to employers doing business in Imperial County. Existing and new businesses could take advantage of such designations.
Imperial County offers a Foreign Trade Zone, two Enterprise Zones, two Manufacturing Enhancement
Areas, a Countywide HUBZone, as well as a New Market Tax Credit Area. Qualified businesses that
utilize these incentive zones can benefit from several tax credits, permit fast-tracking, contract preferences, and tariff deferrals. This section of the Business Guide will provide adequate information regarding the type of incentives certain businesses qualify for, incentives businesses may want to apply for,
and the indicated entity to contact for further assistance.
INCENTIVE ZONE OVERVIEW
Hiring
Tax
Credits
Location
Net Operating Loss
Carryover
Sales/Use
Tax Credit
Additional
Deductions
Lender
Tax
Credit
Permit
FastTracking
Contract
Preferences
Tariff
Deferrals
Enterprise Zone 1.Nearly all of
Calexico
2.Imperial Valley
Enterprise Zone—
Within Brawley &
Mesquite Lake
Specific Plan Area
Foreign Trade
Zone
Within Brawley,
Calexico, Calipatria, El Centro,
and selected
Unincorporated
Areas
HUBZone
Entire Imperial
County
Manufacturing
Enhancement
Area (MEA)
Brawley &
Calexico City
limits
New Market Tax Nearly all of
Imperial County
Credit
INCENTIVES AVAILABLE COUNTYWIDE
Work Opportunity Tax
Credits
Work Opportunity Tax Credits are available nationwide to all employers who hire qualified employees such as veterans, ex-offenders, welfare recipients, and youth ages 18 – 24 who reside in
the Enterprise Communities.
Low Interest Loans
Imperial County Planning & Development Services, City of Brawley, City of Calexico, City of El
Centro, and City of Westmorland offer low interest loans for economic development in Imperial
County.
30
ENTERPRISE ZONES
Contact
Calexico-County Enterprise
Zone
Daniel Fitzgerald
301 Heber Avenue
Calexico, CA 92231
Phone: (760) 768-7190
Fax: (760) 768-7182
[email protected]
www.calexicocountyez.com
Imperial Valley Enterprise
Zone
Diane Cason
860 Main Street,
Brawley, CA 92227
Phone: (760) 351-7155
Fax: (760) 351-7164
[email protected]
www.ivez.com
Imperial County
Planning &
801 Main Street
Esperanza Colio
El Centro, CA 92243
Phone: (760) 482-4236
Fax: (760) 337-8907
[email protected]
www.icpds.com
California Department of
Development
1800 Third Street
Sacramento, CA 95811-6942
(916) 445-4782
http://www.hcd.ca.gov/fa/
cdbg/ez/
Benefits
♦ State tax credits and
deductions related to hiring,
equipment purchases, and
net operating loss
♦ Tax deduction to business
lenders
Enterprise Zone Map located on Pg. 61
An Enterprise Zone is a specific
geographic area targeted for
economic revitalization. Enterprise
Zones stimulate economic growth
and investment in distressed areas
by providing communities with an
economic development tool which
offers state and local incentives to
new or expanding businesses in
these designated areas.
Hiring Tax Credits
State hiring tax credits can amount
to more than $30,000 per qualified
employee over a five-year period.
These credits are designed to
provide businesses with incentives to
hire qualified employees. Enterprise
Zone qualified employees are
individuals who are:
♦ Enrolled in the Workforce Investment Act (WIA) program.
There are currently two enterprise
zones in Imperial County:
♦ Calexico-County Enterprise Zone
♦ Imperial Valley Enterprise Zone
The Calexico-County Enterprise
Zone (CCEZ) is located within the
City of Calexico and the unincorporated area of Imperial County. The
CCEZ was created on October 15th,
2006 and is designated until 2021.
In March 1, 2006 the Imperial Valley
Enterprise Zone was designated
within the City of Brawley and the
County. A Joint Powers Authority
has been created between the City
of Brawley, Imperial County, and
Imperial Irrigation District (IID) to
oversee activities regarding the
Imperial Valley Enterprise Zone
(IVEZ).
Enterprise Zones can save a
business thousands of dollars
through tax credits and other
benefits. Businesses operating in
this zone may qualify for significant
state tax credits:
♦ Hiring tax credit
♦ Sales or use tax credit
♦ Net operating loss carryover
♦ Business expense deductions
♦ Lender interest income deduction
The TEA designation
expires in 2012.
♦ Members of a targeted group as
defined in the federal Work
Opportunity Tax Credit (WOTC).
♦ Eligible to be a voluntary or
mandatory registrant of welfare to
work programs under CalWORKS.
♦ Economically disadvantaged youth
14-21 years old.
♦ Qualified dislocated workers.
♦ Disabled and eligible for, enrolled
in, or have completed a state
rehabilitation plan.
♦ Service
veterans.
connected
disabled
♦ Veterans who recently separated
from military service, or who served
during the Vietnam Era.
♦ Ex-felons/offenders
♦ Eligible for, or recipient of, Federal
Supplemental Security Income (SSI).
♦ Eligible for, or a short-term
recipient of, Temporary Aid to Needy
Families (TANF).
♦ Eligible for, or recipients of, food
stamps.
♦ Native Americans.
♦ Living in the Target Employment
Area (TEA).
31
ENTERPRISE ZONES CONTINUED . . .
Qualified employees must perform at
least 50% of their work within the
boundaries of the EZ, and spend at
least 90% of work-time on activities
related to the conduct of the business located in the EZ. Qualified
employees must also be certified
through the One Stop Employment
Offices for the business to claim the
credit.
Target Employment Areas (TEA)
TEA is defined as an area within a
city, county, or city and county that is
composed solely of those census
tracts designated by the United
States Department of Housing and
Urban Development (HUD) as
having at least 51% of its residents
of low- or moderate-income levels.
An Enterprise Zone company can
earn a tax credit for hiring any person who can demonstrate that they
live in an approved TEA.
Calculation of Credits
The amount on which you can claim
a credit is capped at 150% of
minimum Wage. The employer may
pay a higher wage, with the amount
above the cap not counting toward
the credit.
Example: On January 1, 2009, a
business hires a qualified employee
who has been certified by the One
Stop office. This is full time employee works 2,080 hours in an Enterprise Zone business at minimum
wage ($8.00/hr as of Jan.1, 2009):
Minimum Year 1 Credit
$8.00 x 2,080 = $16,640
$16,640x 50% = $8,320
Maximum Year 1 Credit
$8.00 x 150% x 2,080 =
$12.00x 2,080 = $24,960
$24,960x 50% = $12,480
Sales or Use Tax Credits
A business may receive state tax
credit for sales or use tax paid on
equipment and machinery related to:
♦ Manufacturing, processing,
fabrication of a product
or
♦Communications and data processing
♦ Motion picture production
♦ Renewable energy resources
♦ Control of air or water pollution
Individuals can claim a credit on the
sales or use tax paid on the first $1
million of qualifying purchases, and
corporations on the first $20 million.
At the 7.75 percent sales tax rate,
that’s a credit of up to$17,750 for an
individual and $1.55 million for a
corporation.
Example: A business is operating in
an Enterprise Zone and spends
$80,000 to purchase machinery that
is used to manufacture toys. The
sales tax paid was $6,200. A business may reduce the amount of state
tax owed by $6,200.
Net Operating Loss Carryover
A business can carry over up to 100
percent of its net operating losses
from Enterprise Zone activity until
exhausted.
Example: For 2001, a business’s
net operating loss was $4,000.
Because of the loss, a business did
not owe any tax on year 2001
income.
However, in 2002 the
business showed a profit of $10,000.
The business may carry over the
2001 $4,000 net operating loss to
reduce its 2002 taxable income. This
results in a business taxable income
of $6,000 ($10,000-$4,000) for 2002.
32
Business Expense Deductions
A business can elect to expense out
the cost of depreciable items in the
first year of use. Qualifying items
include business equipment, furniture
and fixtures, but not office supplies.
The maximum deduction for all
qualified property is either, 40% of
the cost of the qualified property, or
$20,000, whichever is smaller.
Example: An Enterprise Zone
business spends $40,000 purchasing
an oven. The business can claim
$16,000 ($40,000 x 40%) as a
business expense deduction.
Lenders’ Deduction
To encourage business locations and
expansions, the State allows lenders
to take a deduction of net interest
received on loans made to Enterprise
Zone businesses.
Example: A lender loans $5,000 to
an Enterprise Zone business. The
lender earns $550 interest and incurs
$300 of expenses directly related to
the loan. The lender may deduct its
net interest of $250 ($550 -$300)
from its taxable income.
FOREIGN TRADE ZONE
Contact
Esperanza Colio
801 Main St.
El Centro, CA 92243
Phone: (760) 482-4236
Fax: (760) 353-8338
[email protected]
City of Brawley
383 Main Street
Brawley, CA 92227
Phone: (760) 351-3069
Fax: (760)-351-3088
City of Calexico
608 Heber Avenue
Calexico, CA 92231
Phone: (760) 768-2177
Fax: (760) 357-3831
City of Calipatria
P.O. Box 167
Phone: (760) 348-4141
Fax: (760) 348-7035
City of El Centro
1275 Main Street
El Centro, CA 92243
Phone: (760) 337-4543
Fax: (760) 352-4867
www.icpds.com
Www.ia.ita.doc.gov/ftzpage/in
dex.html
www.foreign-trade-zone.com
Benefits
♦ Reduced tariffs
♦ Deferred Customs
payments
Foreign Trade Zone Maps
located on Pgs. 62-68
In 2003 the Imperial Valley received
designation of a Foreign Trade Zone
(FTZ). The FTZ, known as the Imperial Valley Foreign Trade Zone
(IVFTZ), is located in portions of the
Cities of Brawley, Calexico, Calipatria,
El Centro, and unincorporated areas of
Imperial County. In response to the
designation, the aforementioned entities created a Joint Powers Authority
(JPA) to oversee activities regarding
the FTZ.
The IVFTZ currently has two operators
within its boundaries and two more
operators in the process of being approved. Coppel, Inc. concentrates on
purchasing products from all over the
country for their store chains in Mexico. The Warehouse Bonded Services
dba Margarita Pimentel, is a 3rd party
logistics company that provides logistical solutions and distribution services.
The primary purpose of a FTZ is to
provide incentives for domestic
manufacturers that rely on imported
raw materials. These incentives are
offered to businesses that are located
inside the designated areas of the
FTZ.
For U.S. Customs purposes, the FTZ
is considered outside the United
States. Therefore, any imported materials or merchandise imported into
the zone are excluded from customs
duty and excise taxes until they leave
the FTZ. When the material or good is
exported outside the U.S., no duty is
charged. Listed below are a few of the
main benefits businesses can take
advantage of if located in the FTZ:
♦ Reduced tariffs
♦ Duty exemptions
♦ Duty elimination on waste, scrap,
and yield loss
♦ Weekly Entry Fee savings
♦ Duty Deferral
33
Reduced Tariffs
In cases where raw materials require
higher tariffs than the finished
product, the FTZ provides manufacturers
with a level playing field. In an FTZ, a
manufacturer can import the raw materials duty free and manufacture finished products that require lower tariffs
when they leave the Zone.
Duty Exemptions
U.S. Customs duties are not due until
materials or finished products leave the
FTZ. Therefore, when foreign
merchandise is brought into the FTZ no
duty is required until it enters the
commerce of the U.S.
Duty elimination on Waste, Scrap
and Yield Loss
Some raw materials that require a high
duty generate waste or scrap losses
when processed or
manufactured.
The FTZ will reduce the cost of paying
duties on materials that will become
waste losses once they are processed.
A chemical processing plant is an example of a company that can benefit
from this FTZ incentive.
Weekly Entry Savings
Some companies import materials on a
daily basis, and with each Entry, they
are required to pay U.S. Customs processing fees. The maximum processing fee is $485 per entry. This maximum entry fee is applied to shipments
with values over $230,952. Companies often receive shipments well
above this amount. For companies
that receive multiple shipments on a
daily basis, this becomes extremely
costly. Another FTZ benefit will allow
companies to file Weekly Entries and
pay the $485 based on weekly instead
of daily shipments.
Duty Deferral
For the reason that the FTZ is
considered to be outside the United
States goods are not imported until
they leave the FTZ. This allows Customs duty to be deferred until the merchandise is imported from the FTZ into
the United States. Companies benefit
because they can utilize monies for
other purposes other than Custom duties on the inventory.
HUBZone
Small businesses operating within
HUBZones receive federal contract
preferences. HUBZones were
introduced by the Small Business
Administration to stimulate job
creation in historically underutilized
business areas.
firm must be a small business,
owned and controlled by U.S.
citizens, and at least 35 percent of its
employees must reside in the
HUBZone.
SBA has established
standards for designating businesses
as “small”. These standards include:
Due to the high unemployment rates
that exist in Imperial County, the
entire county qualifies as a
HUBZone.
♦ 500 employees for most
manufacturing and mining industries
How it Works
S m a l l b u s i n e s s es h a v e t h e
opportunity to negotiate sole source
contracts with federal agencies and
participate in restricted competition
limited to HUBZone firms.
Additionally, HUBZone businesses
will be allowed a 10 percent price
evaluation preference in open
competition. In other words, the price
offered by a HUBZone firm would be
considered 10 percent lower than
that of a comparable bid made by a
non-HUBZone company.
All types of contracts normally
authorized under Federal Acquisition
Regulations are available.
Participating agencies include the
Departments of Agriculture, Defense,
Energy, Health and Human Services,
Housing and Urban Development,
Transportation, Veterans Affairs, the
Environmental Protection Agency,
General Services Administration, and
National Aeronautics and Space
Administration.
♦ 100 employees for all wholesale
trade industries
♦ $5 million average annual
revenues for most retail and service
industries
♦ $27.5 million average annual
revenues in most general and heavy
construction industries
revenues for all special trade
contractors
revenues for most agricultural
industries
How to Apply
The SBA certifies firms for eligibility.
Small businesses are encouraged to
use the electronic application at the
SBA web site: www.sba.gov.
Paper applications can also be
downloaded from the web site, or
they can be obtained from the
nearest SBA district office.
Eligibility
HUBZone benefits are available to
new, existing, or relocating
businesses operating within the
boundaries of the HUBZone. The
34
Contact
Small Business
Administration (SBA)
550 West C St.
San Diego, CA 92101
(619) 557-7250
Www.sba.gov
[email protected]
http://www.sba.gov/hubz
one/
Benefits
♦ Federal set-aside
contracting opportunities
with limited competition.
♦ Full and open
competition contracts
awarded with price
preferences.
M A N U FA C T U R I N G E N H A N C E M E N T A R E A ( M E A )
Contact
City of Brawley
383 Main Street
Brawley, CA 92227
Phone: (760) 351-3069
Fax: (760)-351-3088
City of Calexico
608 Heber Avenue
Calexico, CA 92231
Phone: (760) 768-2177
Fax: (760) 357-3831
Development
1800 Third Street
(916) 445-4782
cdbg/ez/
Benefits
♦ State hiring tax credits
♦ Business assistance and
reduced fees
MEA Maps located on Pgs.
69-70
The MEA designation will
continue through Dec. 31,
2012.
The State of California created
(MEAs) to stimulate job creation in
areas experiencing triple the State’s
unemployment rate. The Cities of
Calexico and Brawley are the two
designated MEAs in California.
These MEA designations will continue through December 31, 2012.
Benefits
MEA benefits include:
♦ Streamlined local regulatory
controls
♦ Reduced permitting fees
♦ MEA companies are eligible to
earn $29,234 or more in state hiring
tax credit per qualified employee
hired over a five-year period.
Hiring Tax Eligibility
If a business is located within an
MEA, it is eligible for State hiring tax
credits.
For a business to be
eligible, it must first satisfy these
three conditions:
♦ The business must be operating in
those lines of business described in
Codes 2011 to 3999 of the Standard
Industrial Classification,
♦ 50% of the workforce must be
residents of the county in which the
MEA is located, and
♦ At least 30% of the above County
employees must be certified
qualified employees.
work programs under CalWORKs.
In addition, qualified employees
must perform at least 50% of their
work within the boundaries of the
MEA, and spend at least 90% of
work time on activities related to the
conduct of business located in the
MEA. Qualified employees must
also be certified through the One
Stop Employment Offices for the
business to claim the credit.
The MEA tax credit is based on
qualified wages paid to the qualified
employees and the calculation is
based on the State hiring tax credit
Example: On January 1, 2009, a
business hires a full time qualified
employee who works 2,080 hours in
your MEA business at minimum
wage ($8.00/hr as of Jan.1, 2009).
The credit is capped at 150% of the
minimum wage.
Min. Year 1 Credit
$8.00 x 2,080 = $16,640
$16,640 x 50% = $8,320
Max. Year 1 Credit
$8.00x 150% x 2,080 =
$12.00x 2,080 = $24,960
$24,960 x 50% = $12,480
The California Franchise Tax Board
considers an MEA qualified
employee to be anyone who at the
time of hiring was receiving or is
eligible for any of the following
programs or services:
♦ Subsidized employment, training,
or services funded by the federal
Workforce Investment Act.
35
Application Process
If a business meets all the MEA
regulations, you do not need to
receive prior approval to take
advantage of the special tax
incentive. The business will just
need to maintain accurate records of
qualified employees hired.
N E W M A R K E T TA X C R E D I T S ( N M TC )
Under the New Markets Tax Credit
(NMTC) Program taxpayers who
make equity investments in
designated Community Development
Entities (CDEs) may qualify for
Federal income tax credits. These
investments must in turn be used by
the CDE to provide investments in
low-income communities.
Most of the Imperial County lies in a
NMTC area, except for the following
tracts:
Credit Calculation
The investor will receive a credit that
totals 39% of the cost of the
investment. This credit is claimed
over a seven year credit allowance
period, in which the 39% is
distributed as follows:
♦
♦
In each of the first three years
the investor will receive a credit
for 5% of the total cost per year
In the final four years the
investor will receive a credit for
6% of the total cost per year
Eligible Investments
•
Tract 105
•
Tract 106
•
Tract 108
•
Tract 110
•
Tract 112.01
•
Tract 117
•
Tract 118.01
•
Tract 118.02
•
Tract 118.03
These tracts include portions of the
City of Brawley, City of El Centro,
most of city of Imperial, and
surrounding areas of Holtville.
For further location information
please contact any of the listed
agencies.
In order for the investment to be
eligible for NMTC Program the
investment must be made to a CDE.
The CDE must be certified by the
NMTC Fund.
Border Communities Capital
Company, LLC and WNC National
Community Development Advisors,
LLC are two qualified CDEs for this
region of California.
Eligible investments that can be
made to CDEs include, but are not
limited to investments in commercial
and residential real estate projects to
finance land development, vertical
development of office, industrial,
tourist, commercial and residential
development projects.
Location
The NMTC boundaries are
designated based on the median
family income levels. Those tract
areas that lie below 80% of the areas
median family incomes qualify for the
NMTC.
36
Contact
Imperial County
Planning &
801 Main St.
El Centro, CA 92243
Phone: (760) 482-4236
Fax: (760) 353-8338
www.icpds.com
U.S. Department of The
Treasury
601 Thirteenth Street, NW,
Suite 200, South
Washington, DC 20005
Phone: (202) 622-6355
www.cdfifund.gov
Services
♦ Receive Federal tax
credits
Q UA L I F I E D E M P LOY E E S OV E RV I E W
Description of qualified individuals
EZ Hiring
Tax Credit
1. Lives in the Target Employment Area (TEA).
2. High Risk Youth--any youth 18-24 years living in
an Enterprise Community, Census Tracts 101, 104,
119, 120, and 121.
3. Summer Youth employee's ages 16-17 living in
an Enterprise Community, Census Tracts 101, 104,
119, 120, and 121.
4. Receiving or eligible to receive subsidized employment, training, or services funded by the federal
Workforce Investment Act (WIA).
5. Eligible to be a voluntary or mandatory registrant
of welfare to work programs under CalWORKs.
6. Economically disadvantaged youth 14-21 years
old
7. Qualified dislocated worker
8. Disabled individual eligible for, enrolled in, or who
has completed a state rehabilitation plan.
9. Service connected disabled veteran
10. Veteran who recently separated from military
service, or who served during the Vietnam Era
11. Eligible for, or a recipient of, food stamps
12. Economically disadvantaged ex-felon
13. Eligible for, or recipient of, Federal Supplemental Security Income (SSI)
14. Eligible for, or short term recipient of, Temporary
Aid to Needy Families (TANF)
15. Long term recipient of Temporary Aid to Needy
Families (TANF)
16. Native American
37
MEA Hiring
Tax Credit
WOTC
Welfare to
Work
E N T E R P R I S E Z O N E ( E Z ) A N D M A N U FA C T U R I N G
E N H A N C E M E N T A R E A ( M E A ) H I R I N G TA X
CREDITS
The cost of hiring new employees
may be reduced by thousands of
dollars through State hiring tax
credits available to Imperial County
businesses operating in any of the
following incentive areas:
♦ Calexico-County Enterprise Zone
(applies to most employers in the
City of Calexico)
♦ Imperial Valley Enterprise Zone
(within Brawley & Mesquite Lake
Specific Plan Area)
♦ Brawley and Calexico
In order to be eligible for the State
hiring tax credit, a business must
meet the requirements that are set
by the specific designation.
Qualified Wages
Qualified wages are defined as the
wages a business pays to qualified
employees. Hiring tax credits are
based on the amount of qualified
wages paid. If a business pays a
qualified employee minimum wage
over five years, the credit can be
worth over $24,000. However, if a
b u s i n e s s p a ys i ts q u a l i f i e d
employees the maximum wage
allowed under the state hiring tax,
which is set at 150% of the minimum
wage, the tax credits could amount
to over $31,000 for the five years.
The table below illustrates the
possible savings per employee.
Qualified Employees
MEA and Enterprise Zone
regulations define qualified employees as individuals who have received or are eligible for the following programs or services:
♦ Receiving or eligible for
employment services funded by the
Workforce Investment Act (WIA).
work programs under CalWORKs
♦ Disabled and eligible for, enrolled
in, or who have completed a state
rehabilitation plan
♦ Service
veterans.
connected
disabled
Area (TEA).
Years
Hours
Worked
x Wage =
Qualified
Wages
Rates
Total Credit
1
2080
$8.00
$16,640.00
50%
$8,320.00
2
2080
$8.00
$16,640.00
40%
$6,656.00
3
2080
$8.00
$16,640.00
30%
$4,992.00
4
2080
$8.00
$16,640.00
20%
$3,328.00
5
2080
$8.00
$16,640.00
10%
$1,664.00
Totals
$24,960.00
Contact
One Stop Employment
Offices
Employment Development
Department
1550 W. Main St
El Centro, CA 92243
(760) 339-2722
www.edd.ca.gov
City of Calexico
608 Heber Avenue
Calexico, CA 92231
Phone: (760) 768-2177
Fax: (760) 357-3831
City of Brawley
Community & Economic
Brawley, CA 92227
Phone: (760) 344-8622
Fax: (760) 351-2656
Imperial County
Planning &
801 Main St.
El Centro, CA 92243
Phone: (760) 482-4236
Fax: (760) 353-8338
www.icpds.com
Development
1800 Third Street
(916) 445-4782
cdbg/ez/
Services
♦ Tax credit for up to 50% of
new employees’ wages for
businesses operating in
Manufacturing Enhancement
Areas or Enterprise Zones
This table shows savings over a five-year time period, if a business pays one qualified employee minimum wage.
The maximum wage for credit purposes is capped at $12.00 (150% of the minimum wage) and could amount to
savings of more than $31,000.
38
EZ AND MEA TAX CREDITS Continued . . .
♦ Veterans who recently separated
from military service, or from the
Vietnam era
♦ Ex-felons/offenders
♦ Eligible for, or recipient of, Federal
Supplemental Security Income (SSI)
♦ Eligible for, or a short term
recipient of, Temporary Aid to Needy
Families (TANF)
♦ Eligible for, or recipients of, food
stamps
♦ Native Americans
Area (TEA).
4. Maintain records of the wages
paid and hours worked.
5. At tax time, a business can claim
its hiring tax credit by filing form FTB
3808 (MEA) or FTB 3805Z
(Enterprise Zone) with its California
Tax Return.
Termination of Employment
If the employee is terminated during
the first 270 days of employment, the
business may have to repay the
credit. However, there are several
exceptions:
Enterprise Zone regulations also
qualifies employees who are:
♦ Employee leaves voluntarily
♦ Economically
youths ages 14-21
♦ Employee misconduct
disadvantaged
♦ Qualified dislocated workers
Vouchering Process
♦ Employee becomes disabled
♦ Substantial reduction in trade or
operations of your company
♦ Employee is replaced by another
qualified employee
Hiring vouchers are used to
document to the California Franchise
Tax Board that your business has
hired eligible
employees. It is a
simple process:
1. If a business is in an MEA, it must
verify that it is a qualified employer
(most manufacturers qualify).
2. A business can recruit workers on
its own or work with the One Stop
Employment Offices. Through the
One Stop offices, a business can
have employees pre-screened, to
ensure that they are qualified, prior
to hire.
3. Once hired, a business should
have the employee certified by a
Business Resource Specialist from
the One Stop Employment Service
office.
39
WO R K O P P O RT U N I T Y TA X C R E D I T S
All employers in Imperial County are
eligible to receive a federal Work
when hiring qualified employees from
specific WOTC target groups. Employers may receive up to $9,000 for
each hired individual who is a member of a target group.
Target Groups
WOTC eligibility is based on hiring
qualified employees from these eight
target groups:
A. Recipients of Temporary Aid to
$6,000. For the employee that is retained at least 120 hrs but, less than
400 hrs, a twenty-five percent (25%)
tax credit is available on qualified
first year wages up to $6,000
For all groups described above, except summer youths, the credit rate
is applied to a maximum of $6,000 in
wages.
The minimum credit is
$2,400 per qualified employee. For
group F (summer youths), the 40%
credit rate is applied to the maximum
of $3,000 in wages. The youth minimum credit is $1,200 per qualified
youth.
Needy Families (TANF)
B. Veterans
Process
C. Ex-felons
1. Contact the One Stop
Employment Office for assistance in
locating qualified applicants.
D. Qualified High risk youth 18-24.
An individual who is certified by the
designated local agency as residing
in an Empowerment Zone or Enterprise community
E. Vocational Rehabilitation referrals.
F. Summer youths ages 16-17 who
reside in an Enterprise Community
G. Food Stamp recipients
H. Recipients of Supplemental Security Income (SSI)
I. Long term family assistance recipients.
Credit Calculation
2. Complete and submit the required
IRS tax form no later than 21 days
after the employee begins work. The
IRS Form 8850, Pre-Screening
Notice and Certification Request,
must be completed together by you
and the job seeker. The One Stop
Employment office may perform this
step in the process prior to hiring.
3. Keep normal employment records
on the qualifying employee, including
wages and hours worked.
4. Claim the credit on your federal
tax return.
The amount of the WOTC varies by
the number of hours worked. The
employee must be retained 400 hrs
for a forty percent (40%) tax credit on
qualified first year wages up to
40
Contact
Department
1550 W. Main St
El Centro, CA, 92243
Phone:(760) 339-2722
Fax: (760) 339-2740
www.edd.ca.gov
Work Opportunity Tax Credit
Center
2901 50th Street
1-866-593-0173
www.edd.ca.gov/jobs_and_Tr
aining/Work_Opportunity_Tax
_Credit.htm
Benefits
♦ Federal tax credit up to
$9,000 for hiring targeted
employees.
HIRING & TRAINING OVERVIEW
Throughout the Imperial Valley there are several programs that can significantly reduce the cost of
hiring and training your employees. This section of the Imperial County Business Guide describes the
attributes of some of the hiring and training agencies offered in Imperial County.
To assist you in quickly identifying the services you need for your business, the matrix on the following
page summarizes some of the larger hiring and training opportunities available. It is broken into two
categories:
♦ Hiring Services — These organizations can assist you in recruiting employees, screening job
applicants and assessing their skills. Some organizations may also provide facilities in which you can
interview job applicants.
♦ Training Programs — These programs help create a more competitive and skilled labor pool for
employers doing business in the Imperial Valley. In some cases, the training may be customized to the
employer’s needs at no cost or a subsidized fee. Some services are available only to new employees,
while others also train existing employees and/or management.
41
HIRING & TRAINING OVERVIEW
Hiring
Recruiting and
Job Placement
Training*
Screening
and
Interview
Facilities
Customized
On-the-Job
Classroom
Skills
Upgrade
Assessment
Brawley Union H.S.
Adult Education
Calexico
Community
Action Council
CalWORKS
Center for Employment
Training
Department of Vocational
Rehabilitation
Employment
Employment
Training
Panel (funding only)
Imperial County Office of
Education
Imperial Valley Regional
Occupational Program
One Stop
Offices
Employment
San Diego Job Corps
San Diego State UniverWork Training Center
•
Some of these training programs are available for current and new employees. Most are at no cost to the employer. Please refer
to individual agency summaries.
42
B . U. H . S . A D U LT E D U C AT I O N
Through its Adult Education
Program, Brawley Union High
School District provides more
programs to assist individuals to
become employable, upgrade their
current job skills, and train for new
occupations.
Contact
Training
Training can range from basic skills
to customized vocational education.
Short-term vocational classes
offered include:
♦ Academic skills
Hiring
This program recruits, screens, and
trains individuals in the skills that
employers need, and assist those
individuals through the job search
and hiring process.
♦ Job readiness skills
♦ Computer training
♦ Community involvement
♦ Self-maintenance skills
Services
BUHS Adult Education program
offers the following services to
ensure the employee is able to work
up to full potential:
Training is done in a hands-on
manner, using staff members who
have experience in the fields they
are teaching.
♦ High school independent study
program
♦ GED preparation course
♦ English as a second language
43
BUHS Adult Education
191 Magnolia Avenue
Brawley, CA 92227
Phone: (760) 344-1068
Fax: (760) 344-3976
[email protected]
Services
♦ Hiring source for
pre-screened employees
with short-term vocational
training
CALEXICO COMMUNITY ACTION COUNCIL
Contact
Calexico Community Action
Council
2320 Martin Luther King St.
Calexico, CA 92231
Phone: (760) 357-2994
Fax: (760) 357-2923
[email protected]
International polytechnic
institute
Services
♦ Provides work experience
in carpentry, landscaping
and plumbing.
The Calexico Community Action
Council (CCAC) was incorporated in
1969, when the citizens of Calexico
realized that 42.8% of the population
lived in substandard housing.
Its specific mission was, and has
remained, to operate for the
advancement of education, improvement of job opportunity, betterment
of housing conditions for low-income
persons and families.
Florida.
Trainees participating in this program
will receive the following:
♦ Industry-recognized certificate and
transcript from the National Center of
Construction, Education and
Research
♦ Services required for related
classroom training in compliance
with Apprenticeship, Training,
Employer and Labor Services
♦ Recognition upon successful
completion of training with an
accredited sponsor
Training
CCAC focuses on providing training
for older youth, adult displaced
workers and low-income participants
in crafts such as:
♦ Carpentry- 12-week training course
♦ Plumbing- 10- week training course
♦ Landscaping- 8- week training
course
The training curriculum for these
courses will cover the following
areas:
♦ Trainees become a part of a
National Registry for job locations
and availability
♦ National standardization providing
transferability of learned job skills
and educational credits
Work experience is paid in different
time increments for each craft:
♦ Carpentry – 8 weeks
♦ Plumbing- 6 weeks
♦ Landscaping- 4 weeks
♦ Orientation to trade
♦ On the job equipment safety
♦ Hand and power tools
♦ Math skills
♦ In class projects
Upon completion of the Program’s
classroom training, the participant
will be placed on paid work
experience at $8.00 an hour, 40
hours a week for the specific times
mentioned above.
♦ Community services
♦ Paid work experience
♦ Vocational English
Transportation, child-care and
clothing allowances are provided as
supportive services. CCAC will also
provide a bi-weekly stipend of $120.
Hiring
CCAC’s Vocational Training Program
will be a certifiable training service,
accredited by the University of
44
After completing the paid
experience, the participant
receive a certificate outlining
achievements and the specific
of completion.
work
will
their
craft
Once trained, CCAC’s priority is to
successfully place the participant in a
job site where their skills will be fully
utilized. Follow-up services are done
in conjunction with the One Stop offices.
CalWORKs EMPLOYMENT SERVICES
CalWORKs Employment Services, a
tri-agency comprised of Imperial
County Department of Social
Services CalWORKs, Imperial Valley
College and Imperial Valley Regional
Occupational Program, has a proven
track record in successfully assisting
new and established employers with
their recruitment needs.
Employers can select from a job
ready pool of CalWORKs job
seekers.
Hiring
E m p lo y ers us i ng C a lW OR Ks
Employment Services will select from
the following menu of no cost
services:
♦ Customized, large or small scale,
recruitment to better suit business
needs
♦ Trained employment specialists to
pre-screen job applicants per
employer recruitment
♦ Coordinated local partner
resources to better serve employers
♦ TABE Assessments to match applicants to the vocational needs of the
employers
♦ Work Opportunity Tax Credit Incentives
♦ On-The-Job Training reimbursements through partner agencies
♦Use of interview facilities and office
equipment at no cost to the employer
♦ Paid drug testing for CalWORKs
job seekers
♦ Ancillary funds for special clothing
or tools for employed CalWORKs job
seekers
♦ Childcare and transportation assistance available for qualifying
CalWORKs job seekers
Job Openings will be listed in
CalJOBS, an Internet-based
automated system, available 24
hours per day, 7 days per week.
CalJOBS can be accessed at
www.caljobs.ca.gov.
Openings will also be displayed on
job boards at CalWORKs Employment Center, CalWORKs Job Search
Workshops and the Brawley, El
Centro and Calexico One-Stop Centers.
Media public service announcements
will be used for large-scale
recruitment.
Employer Benefits
♦ Save time through the elimination
of dealing with unqualified applicants
and endless calls
♦ Will hire job ready employees with
c h i l dc ar e a n d t r an s p o r t a t i on
assistance
♦ Possible Tax Credit and On-TheJob training reimbursements
♦ Save money by utilizing no cost
interview rooms
♦ Save money by not paying for drug
testing, specialized clothing or tools
♦ Supportive employment specialist
guiding the recruitment process.
45
Contact
Araceli Lopez
CalWORKs Employment
Services
2895 S. 4th Street, #102
El Centro, CA 92243
Phone: (760) 335-3468
Fax: (760) 336-4051
[email protected]
Services
♦ Provides no cost employment services to employers
hiring CalWORKs job seekers
C E N T E R O F E M P LOY M E N T T R A I N I N G
Contact
Center for Employment
Training
294 S. Third St.
El Centro, CA 92243
Phone: (760) 337-6565
Fax: (760) 353-5589
[email protected]
www.Cetweb.org
The Center for Employment
Training (CET) is a non-profit job
training institution offering students
a comprehensive skills training and
human development program. CET
was established in San Jose,
California in 1967 and offers
training in almost thirty different
trades nationwide providing a
diversity of opportunity.
Services
♦ Hiring source for prescreened low-income
employees with short-term
vocational training.
unemployed workers, have had a
barrier to employment, and have
been laid-off.
Eligibility criteria vary among
training contracts. Those who are
eligible and who wish to utilize
subsidized training are brought
immediately into training if there is
an opening or are placed on a
waiting list for openings under the
specified contract.
Hiring
The Center for Employment Training
provides the following services to aid
the employer in hiring a competent
employee:
♦ Job training
♦ Counseling
♦ Preparation
♦ Placement
♦ Supportive services
Training
CET provides job ready training for
these occupations:
♦ Accounting/Bookkeeping
♦ Building Maintenance
♦ Shipping and Receiving
♦ Welding
♦ Retail Trades
♦ Customer Service/Data Entry
Training is competency-based, open
entry/exit, individualized, self-paced
and hands on. CET promotes good
work habits through simulation of a
business environment. Attendance
and punctuality are premium work
habits.
Eligibility Requirements
These services are provided to
community members who are age
18 or older, economically
disadvantaged, displaced
homemakers, long-term
46
Financial Aid Programs
The cost of training for CET students
is paid through a variety of sources,
including contracts with city, state,
county, and federal agencies; as
well as public and private
rehabilitation agencies.
Because CET is an accredited
institution, it is able to offer financial
aid under Title IV of the Higher
Education Act. The primary financial
aid programs in which CET
participates are grants, student
loans and federal work study
programs.
D E PA R T M E N T O F VO C AT I O N A L R E H A B I L I TAT I O N
The Department of Vocational
Rehabilitation’s mission is to work in
partnership with consumers and
other stakeholders to provide
services and advocacy resulting in
employment, independent living and
equality of individuals with
disabilities.
Eligibility
Contact
An individual may be eligible for this
program if they have a physical or
mental impairment that makes it
significantly difficult to get up or keep
a job, needs vocational rehabilitation
services to obtain or retain
employment, or can benefit from the
services provided.
Department of Rehabilitation
1214 State Street
El Centro, CA 92243
Phone: (760) 353-1350
Fax: (760) 353-7948
Resources
Blythe Branch Offices:
Phone: (760) 922-2118
*By appointment only
Winterhaven Branch Office:
(760) 353-1350
*By appointment only
This department offers a pool of
disabled job seekers to nonprofit and
p ublic servic e age nc ies for
employment. Clients are eligible for
on the job training placements from
this agency. The job candidate will
work at no cost to the employer while
the employer determines whether the
employee has been properly placed.
Services
♦ Vocational services for
people with disabilities.
Department of Rehabilitation
is a valuable resource for
Californians with disabilities
and Californian employers.
Services
The Department of Rehabilitation
assists people with disabilities in
such ways as providing:
♦ Counseling and guidance
♦ Referrals and assistance to get
services from other agencies
♦ Job search and placement
assistance
♦ Vocational and other training
services
♦ Diagnosis of physical and mental
impairments
♦ Maintenance for additional costs
while participating in the Individual
Plan for Employment
♦ On-the-job or personal assistance
services
♦ Rehabilitation and orientation/
mobility services for individuals who
are blind
♦ Occupational licenses, tools,
equipment, initial stocks and supplies
♦ Technical assistance for
self-employment
♦ Rehabilitation assistance
technology
♦ Supported employment services
♦ Services to family
47
E M P L OY M E N T D E V E L O P M E N T D E PA R T M E N T
Contact
El Centro Office
State of California
Department
El Centro, CA 92243
Phone: (760) 339-2722
Fax: (760) 339-2740
www.edd.ca.gov
Calexico Office
State of California
Department
301 Heber Ave.
Calexico, CA 92231
Phone: (760) 357-7716
Fax: (760) 357-7289
CalWORKs
Department
2895 S. 4th Street,
El Centro, CA 92243
Phone: (760) 336-4034
Fax: (760) 336-4040
Services
♦ Job services
♦ Internet based automated
search system (CalJOBS)
The California Employment
Development Department (EDD)
offers a wide variety of services to
employers and employees under the
Job Service program. This program
brings employers with job openings
together with qualified job seekers.
Customers may access services
through self-service or with the
assistance of an EDD staff member.
Additionally, the Job Service offers
intensive services to customers with
special needs.
Job Service Program
♦ Provides comprehensive services
to employers, and offers an
Internet-based automated system
(CalJOBS) that enables employers to
search, screen, and select
employees from a database of
resumes.
♦ Matches qualified job seekers with
employer job listings based on
employer’s requirements and job
seekers’ qualifications.
♦ Enables job seekers to self-enroll
and produce quality resumes from
various locations through CalJOBS
so they can self-search and self-refer
to job openings.
♦ Committed to state and local economic development and workforce
preparation services.
♦ Provides labor market information
to employers, job seekers, and
others, including policy makers,
economic developers, economists
and planners.
♦ CalJOBS can be accessed at
www.caljobs.ca.gov
♦ Partners with California’s One-Stop
Career Center system and
employment and training services.
♦ Assures priority of services to
veterans.
48
Services to Employers
♦ Reemployment assistance to help
employers who are experiencing
worker reductions.
♦ National, state, and local area
labor market information to help plan
for business expansion, relocation or
future hiring and training needs.
♦ Focused recruitment campaigns
for new business ventures or
facilities needing a large number of
specialized workers.
♦ Facilities and scheduling services
to screen and interview applicants.
♦ Resume searches to match
employers job openings.
♦ Facilitation of Employer Advisory
Councils (EAC) in local
communities. EAC’s were formed to
create stronger partnerships
between the EDD and the business
community. For more information,
please call (760) 339-2719.
For information regarding other EDD
branches including:
♦ Unemployment Insurance
♦ Disability Insurance
♦ Tax
♦ Labor Market Information
Contact any of our offices, or access
the EDD website.
E M P L OY M E N T T R A I N I N G PA N E L
The State of California’s
Employment Training Panel (ETP)
is a California State agency was
founded in 1983 as a cooperative
business-labor program to retrain
workers. ETP was designed to fund
training that meets the needs of
employers for skilled workers and
the need of workers for good,
long-term jobs. ETP funds three
types of training programs:
Retraining, New-Hire and Special
Employment Training (SET).
This type of employer-supported
training is used to improve the
economic climate by training new
workers (New-Hire Training) and
retraining workers (Retraining) in
danger of being laid off as a result
of technological advancements in
the workplace, and because of
foreign and domestic competition.
Under the SET, ETP trains
individuals in projects such as:
Frontline Workers, High
Unemployment Areas, Small
Business Management Skills and
Barriers to full-time employment.
Training
Contact
ETP covers the costs of training
employees, either on site by the
employer or through other training
organizations. Eligible trainees can
include existing employees or new
employees that meet ETP’s
requirements. Covered costs
include:
ETP Sacramento Office
1100 J St., 4th Floor
Sacramento, CA 95814
(916) 327-5262
www.etp.ca.gov
[email protected]
♦ Trainers’ fees (based on ETP
criteria)
♦ Most training materials
San Diego Regional Office
5353 Mission Center Rd.,
Ste.110
San Diego, CA 92108-1306
(619) 686-1920
Services
Funding
Funding is provided through the
Employment Training Tax, which is
levied on the California employers
who participate in the Unemployment
Insurance. One tenth of one percent
of the first $7,000 income per
employee collected from California
unemployment insurance taxes goes
to fund the Employment Training
Fund (approximately $100 million per
year).
Employers are reimbursed for the
costs of customized training
provided to new or existing
employees. ETP also funds small
employers through a streamlined
application process for businesses
of less than 100 employees
worldwide.
Eligibility
Employers should meet at least one
of the following criteria:
♦ Facing out-of-state competition and
need to retrain current employees
♦ Need to upgrade workers in areas
where there are skills shortages
♦ Need to hire and train unemployed
workers eligible to receive
unemployment insurance
♦ Have special, unique training
needs in areas such as defense
conversion or emerging
technologies
49
♦ Employer may be reimbursed for training new or
existing employees
♦ On-site or classroom training allowed
♦ Eligibility based on challenges faced by employer
I M P E R I A L C O U N T Y O F F I C E O F E D U C AT I O N
Contact
Imperial County Office of
Education
1398 Sperber Road
El Centro, CA 92243
Phone: (760) 312-6464
Fax: (760) 312-6137
www.icoe.org
Services
♦ Many different programs
to improve the quality of life
in the Imperial County.
The Imperial County Office of
Education (ICOE) is responsible for
implementing the adopted educational programs and policies to provide services, support and resources
to students, schools and the community.
ICOE is committed to improving the
quality of life in Imperial County by
providing excellent educational
service and leadership to children,
school districts, and our community.
Training
Some of the programs offered by
ICOE to improve the quality of life in
Imperial County are as follows:
♦ Alternative Education
♦ Business Services
♦ Child Development Services
♦ Curriculum and Instructional
Support
♦ Educational Services
♦ Human Resources/Credentials/Live
Scan
♦ Information Technology
♦ Learning Technologies
♦ Migrant Education
♦ SELPA
♦ Special Education
♦ Special Services
♦ Student Well-Being and Family
Resources
50
IMPERIAL VALLEY COLLEGE
As part of the California Community
C o l le ge sys te m , IVC o ffers
educational opportunities that can
lead to Associates degrees or career
program certificates. Both college
transfer and vocational programs are
offered in a variety of subject areas.
Imperial Valley College is a valuable
source for hiring and training
employees. It also provides
customized training designed to fit an
employer’s specific needs. Courses
are offered at the main campus, and
Extended Centers in Brawley,
Calexico and El Centro, and by
arrangement at the employer’s site.
IVC has an enrollment of over 8,000
students (2009) and in 2007-08
graduated 614 students with degrees
and certificates.
♦ Business Office Technologies
Contact
♦ Business Management
380 E. Aten Road
PO Box 158
Imperial, CA 92251
Phone: (760) 355-6217
Fax: (760) 355-2663
www.imperial.edu
♦ Nursing
♦ Early Childhood Education
♦ Environmental Technology
♦ Welding
A complete list of certificates and
majors can be found in the General
C a t a lo g or t h e w eb s i t e a t
www.imperial.edu .
IVC’s Small Business Development
Center is available to assist
expanding, relocating, or start-up
businesses with a wide variety of
technical assistance services as well
as strategic planning.
Employment Resources
IVC is a resource for employers and
employees as well as interns who
work for college credit. Placement
assistance offered through the IVC
Workforce Development Center
includes:
♦ Job Development and Placement
IVC has also joined other community
colleges around the state in
presenting a comprehensive
customer service-training program.
The Customer Service Academy at
IVC is designed to enhance
customer service skills and support
economic development.
♦ Work-Study
♦ Cooperative Work Experience
♦ Satellite One Stop Employment
Services
♦ Resume Development
Training
The College offers vocational career
certificates in the following areas:
♦ Agricultural Business Management
♦ Administration of Justice
♦ Automotive Technology
♦ Computer Skills
51
Workforce Development
Center
Phone: (760) 355-6480
Fax: (760) 355-6172
Services
♦ Certificates in career
programs
♦ Associate in Arts degree
♦ Associate in Science
degree
♦ Workforce Development
Center
♦ Satellite One-Stop
Employment Services
♦ Small Business Development Center (SBDC)
♦ Customer Service
Academy
IMPERIAL VALLEY REGIONAL OCCUPATION PROGRAM
Contacts
Imperial Valley Regional
Occupational Program
687 State Street,
El Centro, CA 92243
Phone: (760) 482-2644
Fax: (760) 482-2751
www.ivrop.org
www.carco.org
cde.ca.gov
Services
♦ Provides employers with a
pool of students who have
been trained to acquire
entry-level jobs
♦ Update and/or improve job
skills,
♦ Prepare students for
advanced training and
education
The Imperial Valley Regional
Occupational Program (IVROP) is a
public education service, which
provides free, practical hands-on
training, career guidance, and job
placement assistance.
Hiring
IVROP provides employers with a
pool of students, who have been
trained to acquire entry-level jobs,
update and/or improve job skills, and
prepare for advanced training and
education. These graduates possess
skills making them productive,
contributing members of global
society.
Projects
IVROP offers many projects which
serve different organizations and
community members, some
examples are:
♦ Project SERVE Vets
♦ Project Trabajar
♦ Project UNO
♦ Project PROMOTE
♦ Project Nenes
♦ Outdoor School Program
♦ Project ABEL
♦ Workability
♦ Project Steps of Success (SOS)
Training
IVROP provides training to prepare
for a college major, earn credits
towards high school graduation, and
earn a certificate of Demonstrated
Competencies.
There are no fees or tuition for
instruction. All IVROP classes are
open to any Imperial County resident
regardless of sex, race, religion,
national origin, handicap or income
level. Community and cooperative
c l a s s r o o m tr a i n i n g i n l o c a l
businesses and industries for a
limited number of classes is also
provided.
52
The following courses are only a few
IVROP offers which are open to
Imperial County residents 16 years
of age or older:
♦ Accounting (Computerized)
♦ Auto body paint and fender
♦ Automobile Technology
♦ Careers with Children
♦ Computerized Office Systems
♦ Lifeguard training
♦ Employability skills
♦ Careers in Criminal Justice
♦ Landscape design
♦ Nurse assistant
Contact IVROP to find out more
about the different classes and
projects offered and how to sign up.
O N E S TO P E M P LOY M E N T S E RV I C E S
In Imperial County, the local
Workforce Investment Board has
established three One Stop
Employment Centers, in Brawley, El
Centro and Calexico. Each of these
One Stops can serve as a single
point of contact for all the
employment related services
needed by job seekers and
employers. Most of the services
offered through the three central
One Stops are also available in
three satellite centers at Imperial
Valley College, Winterhaven, and
Seeley.
Employers can receive assistance
in recruiting and hiring, and may
qualify for subsidies to offset the
costs of training new employees or
upgrading the skills of current
employees.
In all of these
programs the final hiring decision is
always up to the employer.
Recruitment and Hiring
The One Stops offer the largest pool
of qualified and skilled job seekers in
Imperial County. One Stop staff will
help you to match your job openings
with the best candidates. Free hiring
services include:
♦ Publicity for your job opening, via
radio public service announcements,
Job Club meetings, OSES centers
and internet websites.
♦ Trained staff to pre-screen and
rank applicants per employer
instructions.
♦ Support services to help new
employees learn new work skills.
♦ Make a smoother transition into
the workplace and reduce loss of
time at work
♦ Post employment follow-up
services to ensure long-term
retention.
Contacts
♦ Certification of new hires to ensure
employer’s eligibility to obtain all
applicable state and federal tax
credits.
El Centro One Stop
2995 S. 4th Street
El Centro, CA 92243
Phone: (760) 337-5000
Fax: (760) 336-4001
Customized Training for Current
Employees
Calexico One Stop
301 Heber Avenue
Calexico, CA 92231
Phone:(760) 768-7171
Fax: (760) 768-7182
One-Stop centers may subsidize up
to 49% of employee wages while
receiving training to upgrade their
skills. This would enable current
employees to move up their career
ladder with the business.
This
increases the productivity and
growth of a business, and also
allows for backfilling of positions
vacated by the rising employees.
Based on funds availability.
On-the-Job Training
New Employees
(OJT)
for
The One Stop Center’s On-The-Job
Training Program can reimburse
employers for up to 50% of the cost
of new employees’ wages during
their training period.
Based on
funds availability.
These reimbursements can be taken
in combination with state and federal
tax incentives, such as Hiring Tax
C r e d i ts .
T h e p r o c e s s fo r
participating in the OJT program is
as follows:
1. Contact the nearest One Stop to
review your hiring and training
needs.
2. They will refer you to
pre-screened applicants who have
career interests relevant to your
hiring needs.
3. Before hiring, negotiate a training
plan with the One Stop Center. The
average training period is 12 weeks.
53
Brawley One Stop
360 Main Street
Brawley, CA 92227
Phone: (760) 344-2131
Fax: (760) 344-6558
Satellite One Stops
continued next page
ONE STOP EMPLOYMENT SERVICES continued . . . .
Contacts
4. One Stop will reimburse you a
share of the wages paid during the
agreed upon training period.
Satellite One Stops
Workforce Development
Center Building 1700
380 East Aten
El Centro, CA 92243
Phone: (760) 355-6532
Fax: (760) 355-6538
Winterhaven
676 Baseline Rd.
Winterhaven, CA92283
Phone: (760) 572-0222
Extension: 2601
Fax: (760) 572-3617
Services
♦ Publicity
♦ On the job training
♦ Customized training
♦ Local, up to date labor
market information
5. Pay your new hire as you would
any worker, keeping normal records
on attendance and workers’
compensation.
Local Labor Market Research
The Workforce Investment Board
conducts annual surveys of local
recruitment and hiring practices by
employers in Imperial County.
This research is compiled into
Occupational Outlook Reports,
which include data on wages and
benefits paid, and the typical
educational level, qualifications,
skills and experience that local
employers require for various
occupations. You can obtain a free
profile on occupations used by your
business, by placing a request
through the One Stop nearest to
you.
Seminars and Workshops
Professional staff is available to help
employers with seminars and workshops, including providing space,
and arranging for presentations by
experts on topics of interest to employers, such as new developments
in labor law regulations, financing
programs, incentive zones and tax
credits. Workshops can be held for
individual employers or groups of
employers.
Universal Access
The One Stop Centers’ services are
offered at no cost to all job seekers
and employers.
54
SAN DIEGO JOB CORPS
San Diego Job Corps serves local
young adults in Imperial County
between the ages of 16 and 24. Job
Corps provides many benefits and
services for those who are eligible.
Eligibility
Contacts
To qualify for these services the
recipient must meet the following
requirements:
San Diego Job Corps
1325 Iris Avenue
Imperial Beach, CA 91932
Phone: (619) 429-8500
www.sandiego.jobcorps.gov
♦ Age 16-24 (Males and Females)
Hiring
♦ Meet income requirements
San Diego Job Corps trains and
nurtures its clientele to prepare
them for the workforce by offering
living and clothing allowances,
books, tools, drivers education,
medical, dental, and vision care.
♦ Legal US resident or have the right
to work in US
♦ Be drug-free
♦ Be free of formal probation
♦ Motivated to work and learn
Training
♦ Willing to live at the Center
Many services are offered to assist
eligible young adults to find jobs and
develop careers:
♦ Free career training in 20 different
trades
♦ GED/H.S. diploma education
♦ Social skills & employment training
♦ College opportunities & advance
training
♦ On-site interviews for Admissions
♦ Weekly tours of the San Diego Job
Corps Center
♦ Job placement services for one
year
♦ Follow-up services for one year
55
Services
♦ Provides work experience
and basic skills to youth
ages 16-24.
S A N D I E G O S TAT E U N I V E R S I T Y- I V C A M P U S
Contact
San Diego State University
Imperial Valley Campus
Division of Continuing
Education
720 Heber Avenue
Calexico, CA 92231
Phone: (760) 768-5550
Fax: (760) 768-5611
Continuing.education
@projects.sdsu.edu
Services
♦ Provides academic services and opportunities to
individuals that aspire to
personal and professional
growth
San Diego State University (SDSU) Imperial Valley Campus provides
well-balanced, high quality education
for undergraduate and graduate
students. Contributing knowledge
and solutions of problems through
excellence and distinction in
teaching, research and service.
The division of Continuing Education
at San Diego State University
campus serves both Imperial and
Mexico Valleys (Mexico).
The
division’s involvement stimulates
community growth by providing
continuous professional
development to all segments of the
community.
The campus provides students with
the finest possible training,
facilitating their incorporation into the
job market with the skills necessary
to succeed. The Division of
Continuing Education incorporates
certain measures that will help all
participants meet their set objectives
by blending both theory and
practice, and by breaking
stereotypes that hinder educational
advancement
The following services are provided
through the Calexico Empowerment
Project:
♦ Business Plan Development
♦ Follow-up services and referrals
Assistance in identifying:
♦ Business lending sources
♦ Business tax incentives
♦ Grant opportunities
♦ Employee training
Assistance in obtaining
♦ Business loan grants
♦ License and permits
Assistance in developing
♦ Marketing and sales strategies
♦ Business alliances
Training
The following training programs are
offered through SDSU - Imperial
Valley Campus to support the
growth of businesses in our border
community:
♦ Business Training Program
♦ English language building courses
♦ Professional
♦ Business Development
♦ Conversational Spanish
♦ Bi-national Certificates in Business, English and Teacher Training
♦ Conferences
56
WORK TRAINING CENTER
The Work Training Center assists
persons with disabilities and other
special needs by expanding their
vocational opportun ities and
capabilities, encouraging self
advocacy and providing information
as well as assistance in accessing
each person’s desired level of
independence and integration.
To accomplish this, WTC provides
paid employment, supported work
opportunities, job placement
assistance and advocacy services.
Hiring
Employers have reported that the
i n d i v i d u a l s p l a c e d w i th th e
assistance of WTC’s Supported
Employment Program are hard
working, require minimal training by
the employer and have much better
attendance and lower turnover than
other employees.
curriculums designed to prepare
participants for entry into the local
labor market. Full or partial wage
reimbursement is provided to
employers to assist with the training
needs of Job Placement participants
and WTC Employment Placement
participants, plus WTC Employment
Specialists are available to
employers throughout the training
period.
Training
The Work Training Center can
assist with the following:
♦ Finding jobs
♦ Keeping jobs
♦ Learning new job skills
♦ Assessing the skills or experience
for a particular job communicating,
personal, job seeking, or other
employment-related skills
♦ Getting special equipment or
accommodations for a disability
WTC also provides opportunities for
paid employment both in the
community and at their facilities
under their Work Services Program.
Many have been able to significantly
reduce their social security benefit
through earnings; however, they
maintain their eligibility for full
benefits should the need arise in the
future.
WTC’s Job Placement Programs
provide assistance and support to
persons with disabilities, and
persons over the age of 55 in
preparing, searching for, obtaining
and maintaining jobs in the
community.
The goal of Job Placement Services
is to prepare individuals for life-long
employment through on-the-job
training, work experience and
57
Contacts
Work Training Center
210 Wake Avenue
El Centro, CA 92243
Phone: (760) 352-6181
Fax: (760) 352-6332
www.icwtc.org
Services
♦ Assist people with disabilities and other special needs
train for, locate and sustain
a job
♦ Work Service Program
♦ Job Placement Program
♦ Supported Employment
58
El Centro, CA 92243
801 Main Street
Planning & Development Services Department
Imperial County
Imperial County
Census Tracts
VOLUME 1, ISSUE 1
59
60
61
62
El Centro, CA 92243
801 Main Street
Imperial County
City of Brawley
Foreign Trade Zone Areas
Boundary
City Limit
Zone Areas
Foreign Trade
63
El Centro, CA 92243
801 Main Street
Imperial County
City of Calexico
Boundary
City Limit
Zone Areas
Foreign Trade
64
El Centro, CA 92243
801 Main Street
Imperial County
City of Calipatria
Boundary
City Limit
Zone Areas
Foreign Trade
65
El Centro, CA 92243
801 Main Street
Imperial County
City of El Centro
Boundary
City Limit
Zone Areas
Foreign Trade
66
El Centro, CA 92243
801 Main Street
Imperial County
Imperial County Airport
Boundary
City Limit
Zone Areas
Foreign Trade
67
El Centro, CA 92243
801 Main Street
Imperial County
Drewry Warehousing
Boundary
City Limit
Zone Areas
Foreign Trade
68
El Centro, CA 92243
801 Main Street
Imperial County
Gateway of the Americas
Zone Areas
Foreign Trade
69
El Centro, CA 92243
801 Main Street
Imperial County
Brawley Manufacturing
Enhancement Area
70
El Centro, CA 92243
801 Main Street
Imperial County
Calexico Manufacturing
Enhancement Area
PLANNING & DEVELOPMENT
SERVICES DEPARTMENT
Economic Development Division
801 Main Street
El Centro CA 92243
Phone: (760) 482-4236
Fax: (760) 333-8338
PLANNING & DEVELOPMENT SERVICES DEPARTMENT
The Imperial County Planning & Development
Services Department is the land use and development department. The Department is tasked
with regulating the future development of the
County of Imperial, while concurrently providing
full-service assistance for current developments.
The Department recently underwent a name
change from the Planning/Building Department
to the Planning & Development Services
Department. This was a natural outgrowth
resulting form the merging of the Department
with the County’s Economic Development
Department. The new expanded Department is
comprised of five divisions, Planning, Building,
Economic Development, Accounting, and
Administrative. The first three are land use
based, while the last two are support.
•
The Planning Division handles future and
current land uses, discretionary permitting,
and zoning.
•
The Building Division handles the ministerial
permitting, code enforcement, mobile home
park inspections, and contract city building
permits.
•
The Economic Development Division
handles the grants and loan programs for
first time buyers, housing rehabs, and
business assistance programs.
In order to foster a good working environment
and productive atmosphere, the Department
staff holds monthly barbeques/lunches, and a
multi-departmental annual Christmas luncheon.
Additionally, as part of community out-reach, the
Department participates in the annual Holtville
Rib Cook-off, a non-profit contest and Carrot
Festival raising money for countywide athletics
and other youth programs.
71
Seattle
Spokane
Portland
Eastport
Duluth
Hinkle
Eugene
Minneapolis/
St. Paul
Milwaukee
Pocatello
Ogden
Roseville
Oakland
San
Francisco
North
Platte
Cheyenne
Salt Lake
City
Reno
Stockton
Omaha
Fresno
Colton
Amarillo
Phoenix
Nogales
Oklahoma
City
Lubbock
Calexico
Tucson
Kansas
City
Wichita
Las Vegas
Los Angeles
Long Beach
St.
Louis
Topeka
Denver
El Paso
Chicago
Des Moines
Little
Rock
Texarkana
Dallas
Ft.Worth
Memphis
Pine
Bluff
Shreveport
Livonia
San Antonio
Eagle Pass
Laredo
Brownsville
Houston
New Orleans
IMPERIAL IRRIGATION DISTRICT
Imperial, California
SCHEDULE GS
GENERAL SERVICE
APPLICABILITY
Applicable to general service for which no other standard rate schedule is applicable.
Not applicable for standby, supplemental or resale service.
MONTHLY RATE
The monthly rate shall be the sum of A, B, and C.
A.
Customer Charge . . . . . . . . . . . . . $4.00
B.
Energy Charge
First 1,000 kWh . . . . . . . . . . . . . .8.46¢ per kWh
Next 6,000 kWh . . . . . . . . . . . . . 8.20¢ per kWh
All Over 7,000 kWh . . . . . . . . . . 7.84¢ per kWh
C.
Energy Cost Adjustment The amount computed in accordance with Schedule ECA.
SPECIAL CONDITIONS
A.
Voltage: Service under this schedule normally will be supplied at standard
voltage available at the location. Where 240-volt three-phase power is to be
combined with single-phase, and 4-wire service is available, service will be
supplied through one meter. In 240-volt areas, where, as determined by the
District, it is not practical to provide a 4-wire service, such single-phase and
three-phase service will be supplied and metered separately, the meter
readings, both kilowatt-hour and demands, being combined for the purpose of
computing charges on this Schedule. Where service is taken at 480-volts or
higher, three-phase service at one voltage only will be supplied.
B.
Wind Machines: Wind machines for frost protection may be served under this
schedule provided the load will be limited to existing unused capacity of lines
and substations as determined by the District.
C.
Regulations Governing the Sale of Electric Energy: Service under this rate
schedule is subject to the District's Regulations Governing the Sale of Electric
Energy.
D. Monthly Minimum Charge: The monthly minimum charge shall be $1.00 per
connected horsepower or $1.00 per connected kilowatt of load.
Board Resolution
December 29, 1997
Date Effective
January 1, 1998
SCHEDULE GL
LARGE GENERAL SERVICE
APPLICABILITY
Applicable to general service having a demand of 100 kilowatts or higher. Not
applicable for standby, supplemental or resale service.
MONTHLY RATE
The monthly rate shall be the sum of A, B, and C.
A.
Demand Charge . . . . . $2.75 per kW of Billing Demand
B.
Energy Charge . . . . . . 6.59¢ per kWh
C.
Energy Cost Adjustment The amount computed in accordance with Schedule ECA.
SPECIAL CONDITIONS
A.
Voltage: Service under this schedule normally will be supplied at standard
voltage available at the location. Where 240-volt three-phase power is to be
combined with single-phase, and 4-wire service is available, service will be
supplied through one meter. In 240-volt areas, where, as determined by the
District, it is not practical to provide a 4-wire service, such single-phase and
three-phase service will be supplied and metered separately, the meter
readings, both kilowatt-hour and demands, being combined for the purpose of
computing charges on this schedule. Where service is taken at 480-volts or
higher, a three-phase service at one voltage only will be supplied.
B.
Billing Demand: The billing demand shall be the higher of (i) the highest
15-minute integrated or thermal kilowatt demand measured during the billing
period, or (ii) 50% of highest demand measured during the five summer
months (May-September) of the 12 months ending with the current month, or
(iii) 20% of the highest measured demand during the seven winter months
(October-April) of the 12 months ending with the current month, or (iv) the
demand specified in a contract, or (v) 50 kilowatts.
When the monthly demand exceeds 100 kilowatts in any billing month, billing
will be under Rate Schedule GL, and thereafter continue under Rate Schedule
GL until monthly demands have been less than 100 kilowatts for a period of 12
consecutive months.
Board Resolution
December 29, 1997
Page 1 of 2
Date Effective
January 1, 1998
SCHEDULE GL
LARGE GENERAL SERVICE
(Continued)
C.
Seasonal Loads: When any customer disconnects service and resumes
service within 12 months from date of last disconnection, the customer will be
required to pay all charges which would have been billed if the customer had
not been disconnected.
D.
Wind Machines: Wind machines for frost protection may be served under this
schedule provided the load will be limited to existing unused capacity of lines
and substations as determined by the District. Provisions (ii), (iii) and (v) of (B)
shall not apply to wind machines.
E.
Vacuum Cooling Loads: Portable vacuum cooling loads will be served on
existing facilities where adequate capacity is available provided the customer
pays any up-and-down cost necessary to provide service and deposits a
nonrefundable amount equal to the minimum charge for the succeeding
12-month period. One twelfth of such deposit will be applied or prorated to any
monthly billing during the 12-month period.
F.
Regulations Governing Sale of Electric Energy: Service under this rate
schedule is subject to the District's Regulations Governing the Sale of Electric
Energy.
Board Resolution
December 29, 1997
Page 2 of 2
Date Effective
January 1, 1998
SCHEDULE ED
ECONOMIC DEVELOPMENT
PURPOSE
In the interest of economic development, this special rate schedule is offered to
help attract large commercial or industrial customers to the service area of
Imperial Irrigation District (IID).
APPLICABILITY
This special rate schedule is applicable to new or expanding commercial or
industrial customers with a new load of 500 kW or greater and with an annual
load factor of 55% or higher. Service under this schedule is limited to 50
customers or a total aggregated load of 25 MW. This rate is not applicable for
standby, supplemental, or resale services.
New or expanding customers are defined as:
•
•
•
Businesses that are newly locating in IID’s service area. Businesses that are
relocating an existing load within IID’s service area are NOT eligible.
Existing accounts that have been inactive (100 kWh usage or less per month)
for 18 months or longer.
Existing accounts that are adding a load that is 500 kW or greater than the
customer’s historical bills from the past 12 months.
MONTHLY RATE
The monthly rate shall be the sum of A, B, and C below:
A.
B.
C.
Demand Charge
Energy Charge
Energy Cost Adjustment
$20 per kW of Billing Demand
2.00 ¢ per kWh
amount computed in accordance with
Schedule ECA, applies to all customers
SAMPLE BILLING
Shown below is an example monthly billing for a Schedule ED customer and
savings achievable (as a function of load factor) compared to the normally
applicable Schedule GL Rate:
Board Resolution
March 16, 1999
Page 1 of 3
Date Effective
April 1, 1999
SCHEDULE ED
(Continued)
Monthly Demand, kW
1000
GL Demand Charge, $/kW-mo
GL Energy Charge, ¢/kWh
2.75
6.59
ED Demand Charge, $/kW-mo
ED Energy Charge, ¢/kWh
20.00
2.00
Load
Rate Factor
Monthly Bill, $
Demand
Energy
GL
ED
50%
50%
2,750.00 23,724.00 26,474.00
20,000.00 7,200.00 27,200.00
Difference =
(726.00)
7.35
7.56
GL
ED
55%
55%
2,750.00 26,096.40 28,846.40
20,000.00 7,920.00 27,920.00
Difference =
926.40
7.28
7.05
GL
ED
70%
70%
2,750.00 33,213.60 35,963.60
20,000.00 10,080.00 30,080.00
Difference =
5,883.60
7.14
5.97
GL
ED
80%
80%
2,750.00 37,958.40 40,708.40
20,000.00 11,520.00 31,520.00
Difference =
9,188.40
7.07
5.47
Total
Overall
¢/kWh
SPECIAL CONDITIONS
A. Service under this Schedule requires a contract between IID and the
customer. The total term of the contract shall be five (5) years. For a
customer with a load of less than 1,000 kW, the customer shall be entitled to
the Schedule ED rate for two (2) years. For a customer with a load of
1,000 kW or greater, the customer shall be entitled to the Schedule ED rate
Board Resolution
March 16, 1999
Page 2 of 3
Date Effective
April 1, 1999
SCHEDULE ED
(Continued)
for three (3) years. For the remaining term of the contract, the customer
account shall revert to Schedule GL or other appropriate applicable rate
schedule. The contract will address early termination, penalties, alternative
rate schedules, and other pertinent issues.
B. Except for the modifications in the demand and energy charges, all other
conditions from Schedule GL apply to Schedule ED customers.
C. Other surcharges, fees, and taxes imposed by agencies having jurisdiction
apply to Schedule ED customers. Other applicable IID fees and schedules
also apply to Schedule ED customers.
D. Service under this rate schedule is subject to IID’s Regulations Governing the
Sale and Use of Electric Energy, in particular Regulation No. 5, Section G,
Power Factor Correction.
Board Resolution
March 16, 1999
Page 3 of 3
Date Effective
April 1, 1999

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