Economic Incentives and Special Zones
While there are no Enterprize Zones (EZ), Empowerment Zones/Enterprise Community (EZ/EC) or Foreign Trade Zones (FTZ) located within the City, there are several important tools the City of Commerce has to attract, retain, and expand businesses/jobs such as the use of Industrial Development Bonds (IDB).
Industrial Development Bonds (IDB)
An IDB is a loan to a company to build or buy a facility or buy land and/or equipment.
How an IDB Works
The City issues the bonds but is not making the loan. The investor buying the bond makes the loan. The company must find its own bond purchaser. It can also buy its own IDBs. The City technically owns title to the facility built with IDBs and leases it to the company. At the end of the term, title is transferred to the company. Learn more about IDBs
Recycling Market Development Zone
The California Integrated Waste Management Board (CIWMB) offers a Recycling Market Development Zone (RMDZ) Program throughout California. The purpose of the program is to provide low-interest rate loans for up to $2 million or 75% of the costs directly related to an eligible project, whichever is less, to private businesses and not-for-profit organizations. In order to manage this Statewide Program, the CIWMB developed Market Zones and encouraged public agencies to join. Cities can establish their own Zone and administer it themselves or join a regional Zone administered by the County of Los Angeles as in our case. In this case, Commerce is a member of the regional program. City of Commerce has participated in the RMDZ Program since FY 1995/96. Earlier this year the City Council committed to a more robust participation in the regional program.