The application is in. Its fate is still up in the air.

But Kings County is hopeful that it will get another designation for an enterprise zone -- a state-sanctioned program designed to spur local economic development.

The fate will be determined by mid-January, according to John Lehn, president/CEO of the Kings County Economic Development Corporation.

The odds are better now that the applicant pool is smaller than originally expected, Lehn said. Kings County is one of 13 communities vying for the designation, which is open to only eight communities statewide.

"We're optimistic," Lehn said. "We ran a successful zone for years. We had a successful audit ... There's no reason we wouldn't be competitive."

Meanwhile, the Kings County Board of Supervisors on Tuesday approved an environmental review for the new enterprise zone application in a move designed to meet the state requirement.

The approved resolution declares that the establishment of an enterprise zone has little environmental impact because it does not change any land use designations.

June 2008 marks the end for the local enterprise zone, a 26,641-acre parcel of land, which expires after 15 years of offering state and federal tax incentives to industries. Losing a designation could mean a huge loss to the businesses.

Over the last three years, the enterprise zone generated well over $50 million in state tax breaks for new and expanding Kings County businesses, Lehn said.

The zone, approved by the California Department of Housing and Community Development, currently designates industrial and commercial areas of Hanford, Lemoore and Armona, and all of Corcoran. Most notably, Kings Industrial Park and the mall area at Lacey Boulevard and 12th Avenue are part of the enterprise zone.

Under California law, projects approved within an enterprise zone qualify for a tax break on new construction, remodeling and equipment. The state allows additional tax credit over a five-year period, if the company agrees to compensate its employees at a level above the minimum wage, up to 150 percent of the minimum wage.

"From a business attraction standpoint, the enterprise zone is the best incentive available in California," Lehn said. "For existing businesses, hiring credits are significant."

The new and expanded enterprise zone proposes to bring in Avenal, Kettleman City and Stratford.

The reporter can be reached at 583-2429.

(Dec. 12, 2007)