For too long, L.A. businesses have been stolen from us by other cities and states. The result has been a calamitous decline in both jobs and tax revenues in our city, causing huge strains on our budget and endangering our ability to provide basic city services. For example, since 1986, an astonishing 100 auto dealers have left Los Angeles, costing the city up to $57 million in revenue each year.
We are fighting back, and starting to see real results. Two years ago, after the historic economic downturn, which hit California and Los Angeles particularly hard, we redoubled our efforts to recruit job-creating companies to Los Angeles. I built a team focused 24 hours a day, 7 days a week on growing our economy and creating jobs. Working with business and civic leaders across the city, we implemented a five-point plan to bring good jobs and world-class employers to Los Angeles:
- Reforming our business tax.
- Reducing bureaucratic red tape.
- Making sure local tax dollars fuel local jobs.
- Securing our future as a global trade hub by modernizing Los Angeles International Airport and the Port of Los Angeles.
- Accelerating infrastructure jobs by building a 21st century transportation network.
A healthy environment for job creation is the best medicine for strengthening our city. By creating local jobs, we will build a more robust and diverse revenue base to support the services Angelenos deserve.
Two weeks ago, I signed a Local Preference Ordinance that will spur local job creation by leveling the playing field for local businesses competing for city contracts. We hope this new tool, along with the Business Tax Holiday we implemented last year, will make Los Angeles an easier place to create jobs.
We're leveraging assets like advertising space at LAX to win business. We are making strategic use of federal grants to bring world-class firms to Los Angeles.
Using federal community development block grants, which are designed to help lift communities out of poverty and create jobs, we persuaded two quintessentially L.A. companies to move to downtown.
BYD, China's premier global, high-tech green company focused on developing electric vehicle technologies and efficient alternative energy sources, has chosen downtown to locate its North American headquarters. The new facility, along the Figueroa Corridor, will bring an estimated 150 green-collar engineering and management jobs to Los Angeles and hundreds of indirect jobs. In 2010, BYD was ranked the eighth most innovative company in the world.
Gensler, one of the world's foremost architectural and design firms, has moved its regional headquarters, employing more than 300 people. In gross tax receipts alone, the city will realize a minimum 250 percent return on its investment. That's not including tax revenues from meals, hotel rooms, gym memberships, and housing and more.
'The place to be'
These are the types of companies we need -- trailblazing leaders in their fields that not only create jobs and generate revenue but help define Los Angeles as "the place to be."
Of course, in Los Angeles nothing significant happens without controversy, and we've heard some complaints that the city should not be spending public money offering incentives to companies like BYD and Gensler. In this case, it's the critics who are failing to see the bottom line.
First and foremost, we did not use money from the general fund to attract these important new companies, and no city services were affected. On the contrary, we leveraged federal dollars exactly as they were intended to be used.
Some say we should be using federal grants only to take care of our downtown homeless population. Again, this criticism misses the mark. In fact, we use the vast majority of these federal grant dollars to house the homeless and lift Angelenos out of poverty. We've reserved a modest 14 percent of these funds for job creation and economic development. In fact, some would argue that isn't enough.
We've even heard some say the city shouldn't be in the business of working to attract business from neighboring cities. Ah, if things were only so simple. We know, California in general - and the city of Los Angeles in particular -- have been major targets of deliberate business-poaching efforts by other governments all around the country. As Texas Gov. Rick Perry likes to say, "If California doesn't want your business, Texas does."
Fundamentally, we are going to have to change our mentality in Los Angeles. We are still sadly paying the price for many of the anti-business policies of our recent past. I'm committed to using every tool at our disposal.
I am proud that we are doing more than any other administration in recent memory to create jobs and strengthen our economy. If we lose this fight for business, there will be devastating long-term consequences for all of us who depend on our Police and Fire departments, and who rely on city government for basic public services.
You can imagine what the critics would have to say then.
This op-ed originally ran in the Los Angeles Business Journal.
Our 2024 Coverage Needs You
It's Another Trump-Biden Showdown — And We Need Your Help
The Future Of Democracy Is At Stake
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
The 2024 election is heating up, and women's rights, health care, voting rights, and the very future of democracy are all at stake. Donald Trump will face Joe Biden in the most consequential vote of our time. And HuffPost will be there, covering every twist and turn. America's future hangs in the balance. Would you consider contributing to support our journalism and keep it free for all during this critical season?
HuffPost believes news should be accessible to everyone, regardless of their ability to pay for it. We rely on readers like you to help fund our work. Any contribution you can make — even as little as $2 — goes directly toward supporting the impactful journalism that we will continue to produce this year. Thank you for being part of our story.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
It's official: Donald Trump will face Joe Biden this fall in the presidential election. As we face the most consequential presidential election of our time, HuffPost is committed to bringing you up-to-date, accurate news about the 2024 race. While other outlets have retreated behind paywalls, you can trust our news will stay free.
But we can't do it without your help. Reader funding is one of the key ways we support our newsroom. Would you consider making a donation to help fund our news during this critical time? Your contributions are vital to supporting a free press.
Contribute as little as $2 to keep our journalism free and accessible to all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you'll consider contributing to HuffPost once more.
Support HuffPostAlready contributed? Log in to hide these messages.