Sohodojo Advisory Board Member
Jim Schneider
The Taxman86 Speaks...
28 August 2000
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The Tale Of Two Cities And One In Between.
1. Seattle vs. San Diego and Long Beach.
Seattle, Washington, San Diego, California and Long Beach, California are interesting cities to watch and learn from, especially since each has some interesting strengths and weaknesses.
Long Beach, California, if you do not know is home to the country's largest port and with its neighbor Los Angeles handles a major portion of our imports and exports. Seattle is the financial capital of the Northwest and home of Microsoft. San Diego is next to Mexico and home to Qualcomm and UCSD.
Long Beach is home to the California State University System, which is the largest public university system in the world with its 23 campuses, including California State University at Long Beach and 25,000 students Seattle is home to the University of Washington with 35,000 students, and others and and more.
Next month H.R. 4923 "Community Renewal and New Markets Act" [the 'Act'], which passed the House on July 25, 2000 [Sections 206 and 207 thereof], and S. 2936 "Creating New Markets and Empowering America Act of 2000." [the 'Bill'] introduced in the Senate on July 26, 2000 will be debated and passed.
Buried in those two bills, which will go to a Conference Committee, is some interesting stuff, including a provision to expand each Empowerment Zone in Round 1 and Enterprise Community in Rounds 1 and 2 by 2000 acres.
They will also have provisions dealing with 40 new Renewal Communities, and 9 new Empowerment Zones. But in our opinion, the most interesting is the Capital Gains Roll Over after one-year holding period for Enterprise Zone Businesses, including those that develop and produce intangibles. The effective dates on the 2000 acres is on enactment, as is the Capital Gains Roll Over as is the Intangibles.
We suggest that Seattle, San Diego and Long Beach will all benefit from these bills, and the effects could be very dramatic, just as the Internet Revolution has been over the last five years. It will also benefit the other 123 cities and rural communities that have Enterprise Communities, including North Delta Mississippi Enterprise Community, which is near Oxford, Mississippi, home of the University of Mississippi.
We have started to play around with these ideas and have put them on our Web site, but if we are correct, then the entertainment world, which is global in size will never be the same.
The Blair Witch Project and its internet presence opened up the world of Independent Film to mainstream, and today, with the price of high speed internet, high speed computers, and digital cameras, along with top quality software in the few thousands [complete package coming in at under $5,000] every home, apartment or loft is a potential home-based business as a movie studio, a sound stage, or a music venue.
More importantly each of the cities mentioned have film schools or film commissions in their communities. Long Beach, Seattle, and San Diego.
Combine the benefits of Empowerment Zones, Enterprise Communities, or Renewal Communities, historic preservation such as Pioneer Square, or the Gaslamp Quarter and the ability to roll over profits in the former two under proposed IRC Section 1397B, effective next month, and the other benefits that will be forthcoming in 2001 and 2002; then we suggest that capital, the mother's milk for revitalization, if you will, will be forthcoming.
Enjoy and let the games begin. [Coming tomorrow Baltimore's Empowerment Zone and Johns Hopkins, Las Vegas Enterprise Community and UNLV].
Jim Schneider, LL.M.
Taxman86
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