Tuesday Must Read: Brown’s Plan Could Drive Businesses Out of Oakland, Richmond; Perata Becomes a Lobbyist

Stories you shouldn’t miss:

1. Governor Jerry Brown’s plan to eliminate enterprise zone tax credits could drive businesses out of Oakland and Richmond and prompt others to not move here, the CoCo Times reports. Both cities have used the tax credits to attract businesses, and eliminating them, as Brown wants to do, will make both cities less desirable. Walter Cohen, Oakland’s director of community and economic development, said that since 1993, 850 Oakland businesses have taken advantage of the credits, which give tax breaks for hiring workers from low-income areas. Oakland also used its enterprise zone to help Berkeley keep Bayer Pharmaceuticals from leaving the East Bay. The enterprise zone “is a very important tool we have in our toolbox to stimulate jobs and retain businesses,” Cohen said. About 100 Richmond businesses have used the tax credits. Brown wants to eliminate the tax credits, along with redevelopment agencies, to help balance the state budget.


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