Secretary Hatamiya Announces LAMBRA Designation forMather Field and McClellan Air Force Base;...

Business Editors/Government Writers

SACRAMENTO, Calif.--(BUSINESS WIRE)--June 19, 2000

Together with state and local officials, Trade and Commerce Agency Secretary Lon S. Hatamiya today announced that Mather Field and McClellan Air Force Base have earned final designation under

"The LAMBRA program is a key tool targeted to address the needs of two areas vital to the region's economy," said Secretary Hatamiya. "Both McClellan and Mather offer potentially tremendous opportunities." The designation officially takes effect July 1.

Officially named the Mather Field/McClellan Park LAMBRA Zone, the installations were conditionally designated in June 1999. Sacramento County has recently completed addressing the final conditions for designation established by the State. The State, as part of the preliminary designation process requires nominee communities to further define elements of their economic development plans. This step assures the State that the applicant community is ready to take its plan from theory to practical application.

Secretary Hatamiya and Roger Dickinson, Chairman of the Sacramento County Board of Supervisors, signed a Memorandum of Understanding during a 1 p.m. ceremony today at McClellan Air Force Base, which was also attended by State Senator Deborah Ortiz (D-Sacramento).

The Trade and Commerce Agency oversees the LAMBRA program, created to stimulate job creation and development in areas experiencing military base downsizing and closure.

Through the County's reuse efforts, the former bases have attracted 62 tenants, employing more than 3,000 workers.

Since its inception in 1993, LAMBRA zones have assisted in the reemployment of 3,241 workers and the creation or expansion of 121 business locations. Private investment has increased from $17.25 million in 1997/98 to $31.3 million in 1998/99.

Similar to Enterprise Zones, LAMBRA zones offer businesses a series of tax credits and inducements such as varied sales and use tax credits, expedited permit processing, and local incentives to benefit employers locating their businesses on closed military base property on or after July 1.

Mather/McClellan Park is the sixth LAMBRA zone under the program. The other five include Southern California Logistical Airport (formerly George AFB in Victorville); Castle Airport in Atwater; Mare Island Naval Shipyard (Vallejo); San Bernardino International Airport and Trade Center (former Norton AFB in San Bernardino), and Alameda Point (formerly Alameda Naval Air Station).

    LAMBRA Program benefits

--  Up to 100 percent Net Operating Loss (NOL) carry-forward. NOL may
    be carried forward 15 years;

--  $26,894 or more for companies in state tax credits for each
    qualified employee hired up to $2 million per year with a few
    provisions;

--  Sales tax credits on the purchase of $20 million annually of
    qualified machinery and machinery parts;

--  Up-front expensing of certain depreciable property, up to $40,000
    annually;

--  Unused tax credits can be applied to future tax years, stretching
    out the benefit of the initial investment.