That’s right, I’m willing, right here and now, to help Tom Daly, of whom I have been critical, burnish his reputation in the Assembly. Or … not.
The background is this: there are these things called “enterprise zones,” you see? And they are supposed to “drive economic development in our state’s minority and underserved communities,” according to their trade association. (Note: these “zones” have a “trade association.”) So tell me if you think that this looks like “economic development.”
Anaheim Arena Management, which (surprise!) manages the Honda Center (home of hockey’s Ducks), last week to announced plans to lay off more than 400 food service workers as of June 30, when a contract ends with the company currently providing the arena’s concessions. Then — and, viewed in a certain way, this is beautiful, like a python swallowing a bull moose — this week, it announced that it will hire 500 other workers to replace them.
“Well, so what?” you may say, “Hiring and firing workers happens all the time!” Just wait a moment. It gets better.
Because the Honda Center is within Anaheim’s “enterprise zone” — a geographic area designated to receive tax breaks to stimulate investment and job growth — when Anaheim Arena Management hires those new workers, it will be eligible for a tax credit of up to $37,000 per worker over five years. It gets this tax credit for — and yes, this is it, the “beautifully horrible” part — “creating jobs.”
Take a look at this story from our friends at the increasingly indispensable Voice of OC:
At Tuesday’s [Anaheim] City Council meeting, city officials confirmed that the new hires — as long as they meet certain criteria such as being a veteran or a resident of certain neighborhoods in the city — would qualify the company for a tax credit worth up to $37,000 per employee over five years.
Based on the formula, the credit could be worth millions to the company, given how many workers it is hiring.
“The Honda Center is within the enterprise zone, and there is nothing that we’ve been able to identify that would make them ineligible for tax credits if they were to hire eligible employees through the termination of the contract with Aramark,” said city Planning Director Sherry Vander Dussen in response to a question by Councilwoman Gail Eastman.
The workers’ union on Wednesday called the move “absolutely shameful.”
“Make no mistake, this is an attempt by Anaheim Arena Management to undercut workers’ rights, reduce wages and cut benefits,” said Ada Briseno, secretary-treasurer of Unite Here Local 11. “And because the Honda Center is in an enterprise zone, they will receive millions in tax breaks for firing the workers and hiring replacements. It is corporate welfare at its worst, and taxpayers will foot the bill.”
Scandalous, right? Terrible labor policy plus a taxpayer ripoff! Well, this is where Tom Daly comes in — or doesn’t.
You see, this thing called a “law” that they are using to get this tax break — it can be changed. Seriously. Not carved in stone!
The body that changes laws like this — say, to deny tax credits in situations where, rather than “stimulating investment and job growth” they are simply “ruining workers lives to take advantage of a technicality” — is called the “State Legislature.” The State Legislature is composed to two bodies, Assembly and Senate, each of which is divided into districts. The representative for the Assembly district containing the Honda Center is Tom Daly.
In other words, this is Tom Daly’s concern. It is in his bailiwick. He speaks for the people affected — or for the arena management companies, it’s his choice. But let’s say he wants to speak for the workers and taxpayers and people with a moral center: here’s what he could do.
He could sponsor a bill, which could take any of various forms, which would deprive the Honda Center of the benefit of this law. He could do it, say, next week, giving them plenty of time to rescind the layoffs.
He can then use his political skills to get the bill through the Assembly. (Not so difficult, probably; I’m told that we have a very pro-Labor Assembly Speaker.) Then someone (perhaps the also reputation conscious Lou Correa, perhaps new Senator lookin’ to look good Norma Torres) could do the same for the Senate. This will be facilitated by the fact that Democrats have supermajorities in both bodies. It will be facilitated by the fact that we have a Democratic Governor who knows a good issue when he sees one. It will also be facilitated by the fact that this is not only an issue that excites workers that don’t like being abused, but also taxpayers who don’t like being ripped off.
Honestly, it’s a rare political chance to combine “doing good” with “doing well.” It’s a politician’s dream — and I’m serving it to Tom Daly here on a platter. It’s a six-inch putt, if he wants to take it.
The best part is that he may not even have to go through with it. Once Anaheim Arena Management sees the handwriting on the wall, they may decide to backpedal at an exceptional speed just to avoid a situation where they end up looking like cartoon villains. Because … really, guys?
That leaves one critical question: “Will Tom Daly show leadership on this issue and use his power as the elected Assembly representative in this district to get the Honda Center’s management group to back down?”
Or, alternatively — will we be hearing a lot about this issue from someone else as we move towards the 2014 elections?
You control the puck, Assemblyman Daly.
If this is the disgraceful shell game that is transpiring AND I was one of the displaced Honda Center workers I would muster a nation wide boycott of the Honda Center.
And here is your rallying call: PLUCK THE DUCKS! The preferred word would not be in keeping with the Kindness meme this year here in Anaheim.
Doesn’t the convicted felon billionaire who owns the Ducks, also controls the operational lease on the Honda Center?
What a nice guy?
Oh. Well, if he’s a billionaire, I may have asked for Daly’s help in vain.
The charges were dismissed due to government misconduct.
They pretty much cheated to get the plea, and it was overturned / set aside.
Ahh, the Enterprise Zone…I am not a fan at all. It is the government picking winners and losers….both on the employer and employee side. From my experience, in most cases a business accidentally receives the credit meaning that they hire someone and then find out they get a credit. Not exactly creating a job but instead subsidizing a hire already made. Often the business owner finds out about it from a professional services firm who specializes in that area and will take X% of the tax credit.
At least in this case, they know about it ahead of time. Although, not exactly creating jobs but instead just replacing existing ones…although, possibly 100-ish jobs creates (500 hires vs 400+/- terminations but who knows). They need to put a threshhold to where it is only truly new jobs created…or here is an idea- revamp the entire EZ system. It does not work as currently in place in achieving the goal of job creation- real job creation.
Why should the majority of Anaheim business get EZ benefits compared to others down the street in Santa Ana who don’t (there is a SA EZ but not all areas of the City are in it) or up the 57 in Fullerton? Why should someone who lives in a certain neighborhood have a leg up compared to a neighbor down the street?
Sure it definitely helps certain businesses…I have seen them be helped. However, in general, I don’t think it necessarily works in achieving the goal although I am sure the state’s figures will show otherwise, but the data is likely incomplete instead of inaccurate.
This post is so full of inaccurate information and outright falsehoods, it’s remarkable. Beginning in the second paragraph’ Anaheim Arena Management is not laying off anyone. Aramark is laying off its employees. AAM is starting its own food services business with different culinary offerings. It needs to hire food and beverage staff to do so.
Check your facts.
Check your technicalities. I based my story on the Voice of OC article, but here’s my understanding. Please specify where you think I’m wrong.
(1) AAM is not scrambling to make up for Aramark’s abandoning of their property; it got rid of Aramark so that it could start its own food services business.
(2) People have been working in concessions at the Honda Center for quite some time.
(3) Either those people will now be re-hired (i.e., not exactly job “creation,” eh?) or they will be replaced.
(4) AAM, until a few days ago, had been expected to seek the tax credits for the new hires. They have now, perhaps due to an avalanche of public shaming of which this article was a small part, pledged not to do so.
As a general comment, “Mark” — if you’re going to say that one of my posts is “full of” both “inaccurate information and outright falsehoods,” prepare to produce more than one alleged example. Whether that example is one that’s only technically inaccurate while substantively true for the purpose of assessing the legitimacy of their obtaining tax credits, as is the case with what you mentioned, I leave to you, based on how stupid you want to end up looking.
Tom is a pendejo and has no spine. He will continue playing it safe and continue giving hacks like Jordan Brandman free money in scam contracts. You cant expect greatness from cowards. So don’t hold you breath on Daly.