By Gregory J. Wilcox, Staff Writer The county fell 12 positions to 153 in this year's ranking.
"From lousy schools and expensive housing to high taxes and mind-boggling
traffic, L.A. has lots of problems," the magazine said. Most the things that
kept the county from falling further are out of control of policymakers -- a
spectacular physical setting, Hollywood and great weather.
In contrast, the Inland Empire region of San Bernardino and Riverside
counties is the nation's sixth-best place for business, one spot better than in
the initial survey last year.
More affordable housing is drawing residents from high-priced coastal areas
and jobs have been following in the manufacturing and business service sectors.
Two of the top five regions -- No. 1 Reno, Nev., and No. 5 Medford, Ore. --
are singled out as top business centers close to California's border. Reno
boasts excellent Internet connectivity at low prices and cheap electric power,
the magazine said. Medford offers a wide range of job opportunities and tax
incentives.
The survey was based on U.S. Department of Labor data from September 1994 to
September 2004.
Joel Kotkin, a senior fellow with the New America Foundation who wrote the
accompanying article in next month's issue, said that problems abound here.
While the Inc. survey includes all of Los Angeles County, Kotkin, a San
Fernando Valley resident, gives city officials much of the blame for the low
ranking.
The best job growth in the county is in the outlying areas like the Santa
Clarita, Antelope and San Gabriel valleys, he said.
And while the state, Southern California and the county are tough on
business, Kotkin said the city trumps all three.
"The city of Los Angeles is the highest degree of difficulty in doing
business," he said, citing the regulatory and tax climate. And he said the City
Council functions as an arm of the public employees union.
"They are not exactly obsessed with the concerns of the taxpayers who need
city services," he said.
Mayor James Hahn and his aides dispute the report.
Hahn, in his State of the City address this week, said Los Angeles has seen
more than $11 billion in new investments in the city.
Deputy Mayor Renata Simril, who heads Hahn's business team, argued Tuesday,
"In the last four years, we've had a 4.5 percent increase in businesses --
that's nearly 38,000 new companies.
"We have eliminated most business taxes and are looking at other business tax
cuts -- more than any other mayor in the city's history. And, we are in constant
discussions with businesses from throughout the world who want to relocate to
Los Angeles."
Simril questioned some of the article's statistics, saying that Los Angeles
has been one of the top job growth areas of the past several months.
But Larry Kosmont, president of the Kosmont Cos., which does economic and
real estate development consulting, said that his research mirrors Inc.'s.
The company publishes an annual "Cost of Doing Business" survey that
evaluates cities nationwide. In the latest, Los Angeles is the second-most
expensive city in California and the 16th nationally.
He also dismisses the business tax reform lauded by Hahn and notes that the
city's electric utility tax is 12.5 percent, which hurts business, and other
taxes are high.
His survey covers 368 cities and 268 have a business tax. Los Angeles' was
5.5 times the national average, he said.
And even when the tax reform elements are fully implemented, Los Angeles will
probably improve one position in his survey, Kosmont said.
"The leadership can say what it wants but it taken seven years to come up
with a 15 percent tax cut. You can declare victory, but it's a hollow victory.
L.A gets the report card it deserves."
Staff Writer Rick Orlov contributed to this report.
Gregory J. Wilcox, (818) 713-3743 greg.wilcox@dailynews.com
1. Reno, Nev.
A 30-minute flight from the Bay Area, Reno boasts excellent Internet and
communication connectivity at low prices and cheap and reliable electrical
power, which has become questionable in California.
1. Boise, Idaho
A top choice for footloose techies - particularly those looking to buy a
house and start a family and enjoy a high quality of life at a fraction of what
it might cost elsewhere.
3. Casper, Wyo.
With no state income tax, a friendly regulatory climate and cheap living,
jobs have grown 22 percent in the last decade - and companies keep moving in.
4. Green Bay, Wis.
Green Bay has a little of everything - a growing tech sector, specialty
manufacturing and an expanding business services sector.
5. Medford, Ore.
Located 27 miles from the California border, this area is generating jobs
across a range of industries.
6. Riverside-San Bernardino
High housing prices on the coast are leading more educated people to join the
largely blue-collar folks who moved here in the 1980s and 1990s.
7. Melbourne-Titusville-Palm Bay, Fla.
Best known as home to Cape Canaveral, this area has seen its population soar
as newcomers discover reasonably priced homes and a stable job market.
8. Missoula, Mont.
Missoula has seen employment surge in industries like health care, business
services and tourism.
9. Fort Myers-Cape Coral, Fla.
Long considered a destination for retirees, this region is now among the
leaders in attracting young, single, educated people.
10. Jacksonville, Fla.
Plentiful jobs, reasonable home prices and no state income tax make
Jacksonville an appealing place to call home.
153. Los Angeles
From lousy schools and expensive housing to high taxes and mind-boggling
traffic, L.A. has lots of problems. Yet the region still has many advantages -
including the nation's largest port complex, a spectacular physical setting,
Hollywood and great weather - that keep it from falling to the bottom of the
list.
-- Inc. Magazine
Wednesday,
April 20, 2005 - The Los Angeles area remains one of the worst places in
America to do business while the neighboring Inland Empire, with a friendlier
government attitude and lots of land, rates as one of the best, according to a
survey in the May issue of Inc. Magazine.