Businesses locating at the former Naval Training Center (NTC) may be able to take advantage of substantial state tax incentives and other benefits. In March 2001, the state of California awarded the City of San Diego a Local Agency Military Base Recovery Area (LAMBRA) designation for NTC to attract reinvestment, and re-employ workers in the area. A LAMBRA designation offers tax incentives, and other benefits for businesses that are similar to those found in state Enterprise Zones.

Located on prime real estate along northern San Diego Bay, NTC will be transformed into a new waterfront community called Liberty Station over the next several years. As part of the plan, the 361-acre area will become a unique and desirable neighborhood with a mix of uses to create an urban village that includes commercial, recreational, residential, and other uses in a pedestrian-oriented environment.

The office district at the Naval Training Center will include seven buildings totaling 380,000 square feet of office and commercial space. Construction for the first phase began in October 2002. This first phase includes three state-of-the-art office buildings that should be available for occupancy in 2003.

Advantages for Businesses

Significant California tax incentives to companies locating in a Local Agency Military Base Area zone include:

• Firms can earn $26,894 or more in state tax credits for each qualified employee hired up to $2 million per year with a few provisions.
  
  
• Corporations can earn sales tax credits on purchases of $20 million per year 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.
  
  

In addition to the California tax credits, the zone also provides local incentives as a part of the business attraction package.

Eligibility

Businesses that are located in a fully designated Local Agency Military Base Area zone are eligible for program benefits. The LAMBRA boundaries are the same as the redevelopment project area of NTC.

Economic Development

Helping businesses in San Diego grow and flourish is a major focus for the City of San Diego. The City is dedicated to helping foster the region's economic base to improve the quality of life for its citizens and business community. Through the Economic Development Division's many continuing programs and projects, the City creates opportunities for businesses to succeed.

Contact Information

For more information contact:

Libby Day
NTC/Liberty Station LAMBRA Coordinator
NTC Assistant Project Manager
Redevelopment Agency, Community and Economic Development Department
600 B Street, Suite 400, MS 904
San Diego, CA 92101-4506

E-mail: lday@sandiego.gov