GARDEN GROVE : Plan Pushed to Waive Fees for New Business

Officials pushed ahead with plans this week to waive the business license fee for new companies as part of a marketing strategy to attract businesses to aid in the city’s economic recovery.

Councilman Mark Leyes, chairman of the agency for community development, proposed the idea last month, which would apply for the first year a business moves to the city.

Leyes said the city should aggressively market all its advantages--relatively inexpensive land and lease costs and the lack of a utility tax--to attract businesses to bolster the city’s economic base.

The waiver of the business license fee for the first year is intended to “sweeten the pot” further, he said.

Councilman Bruce A. Broadwater said he supports the proposal. The city would waive the business license fee the first year, but would gain other economic benefits by increasing the number of businesses, Broadwater said, in addition to receiving the license fees thereafter.

Based on gross receipts and the type of business, companies can pay as much as $3,000 per year for a business license tax. About 12,000 businesses are either located in the city or do business within its boundaries. They currently pay an annual total of $1.4 million in business license fees.

City Controller Anthony J. Andrade said in an interview that the recession has been hard on businesses in the city and that waiver of the business license fee for the first year “could help. It certainly is worth a try.”