The Los Angeles City Council is expected to decide in October whether to approve a novel program that would assist manufacturers and industrial employers with redevelopment funds.
The Industrial Incentive Program, approved Aug. 5 by the Community Redevelopment Agency’s board, would provide loans of up to $250,000 for equipment purchases. It also would provide $50,000 grants for energy-reduction projects or consulting services in specific areas, such as increasing manufacturing efficiency. Only existing businesses would be eligible, including startups, though they would be given more rigorous scrutiny in demonstrating their ability to meet required goals.
Jenna Gulager, a redevelopment project manager, said the program was a departure for the agency, which normally uses its funds to buy real estate, or construct and rehab buildings.
“Our purpose is to help with job creation, particularly in the industrial and manufacturing sectors,” Gulager said.
To qualify for the aid, a company must be located within any of the city’s 31 redevelopment project areas, which span from San Pedro to Hollywood and Pacoima. The loans will be forgiven if companies meet certain job creation, retention and environment sustainability requirements over four years.
Gino DiCarlo, spokesman for the California Manufacturers and Technology Association in Sacramento, said he was aware of the proposal but unfamiliar with the details.
He said that with 630,000 manufacturing jobs lost in California over the past decade due to high energy costs and taxes, “manufacturers will take anything they can get. “I can’t underscore the importance of industrial incentive programs enough.”
The City Council has yet to schedule debate on the program, but Gulager said it should be “up and running” within weeks of any council vote. However, companies will have to go through an application process.
Foundry Sold
A subject of uncertainty these days is the future of a 79-year-old City of Commerce foundry after its acquisition earlier this month by a Southern plumbing manufacturer.
American Brass & Aluminum Foundry, which makes a full line of plumbing products including plastic, cast iron and brass drains and fittings, was purchased by IPS Corp., a suburban Memphis, Tenn., manufacturer of cements, primers, sealants and adhesives, as well as plumbing and roofing products.
Kurt Andersen, an IPS spokesman, said American Brass makes a line of plumbing products that it currently doesn’t offer, but he declined to say whether IPS would continue to operate the foundry.
“That hasn’t yet been determined,” he said.
According to an online profile, the family-owned foundry has been in operation since 1931, generates annual revenue of $5 million to $10 million and has fewer than 50 employees.
Dualing Expos
LMS Inc., a Pomona-based manufacturer of luxury hot tubs and swim spas, is going its own way rather than participating in this year’s International Pool/Spa/Patio Expo set for November.
The largest show of its kind in the U.S., the Nov. 3-5 expo at the Mandalay Bay Convention Center in Las Vegas will feature 450 manufacturers showing their wares to as many as 10,000 dealers from throughout the country, organizers said.
Earlier this month, LMS, a major industry player, issued a press release saying it had “chosen” to host its own expo Jan. 12-13 rather than attend the industry tradeshow as it has in the past.
“We’re making incredible changes to our lineup and we won’t have it ready in their time frame,” said spokeswoman Courtney Salas. By holding its own show in January, “we will have everybody’s full attention.”
LMS wouldn’t discuss any details about its lineup, but hot tub sales in the U.S. have declined sharply amid the housing bust and recession, sending scores of manufacturers out of business and forcing others to slash prices.
Previous expos the company has held have attracted as many as 300 dealers, suppliers and reporters. LMS has not yet released a location for its expo, but said it will be near its headquarters.
LMS makes hot tubs under the CalSpas brand name that are sold at major retailers. It also makes a line of branded tubs for Coleman, a supplier of camping and other outdoor goods.
Staff reporter David Haldane can be reached at [email protected] or at 323-549-5225, ext. 225.
