Mojave County economic development officials are now expected to seek private consulting in establishing foreign trade zones.
The Mojave County Board of Supervisors this week approved county officials’ proposal to establish an FTZ, allowing it to use as much as $70,000 through the Economic Development Enterprise Fund and hire private consultants to streamline the process.
Foreign Trade Zones are regulated by the U.S. Customs and Border Protection to help businesses gain better trading opportunities in the global marketplace. This distinction limits tariffs and other value-added taxes for businesses importing and exporting goods across the United States. There are about 250 of his designated FTZs nationwide, the closest of which is in Henderson, Nevada, according to Mojave County economic development director Tami Asenbach.
Ursenbach said it could bring new business to areas within the county, including the White Hills and Colorado City. It was too early to speculate this week whether such a business would take root in northern Mojave County, but Asenbach said it could.
“There are some businesses looking to the White Hills area because of its proximity to Henderson and Las Vegas,” Arsenbach said at a meeting of the Mojave County Board of Supervisors on Tuesday. “Another area that could really use a foreign trade zone is the City of Colorado.
Ursenbach said some areas could benefit from FTZ distinctions and could require subzoning if such distinctions were approved. These areas may include the White Hills, Griffith, Colorado City, or areas of Kingman Municipal Airport.
“It’s like having an inland port where you can do more[business],” Ursenbach says. “Most of the areas that make up the Foreign Trade Zone suddenly have a few large and small businesses, but still provide a major tax base for the county.”
Ursenbach said the actual economic impact of the Foreign Trade Zone will depend entirely on which businesses open in Mojave County as a result. But in a statement to the Today News Herald earlier this month, she hopes to see a $1 million economic impact on the county within the zone’s first year.
Ursenbach said at least eight companies may be waiting for FTZs in Mojave County.
“Three companies in the Colorado City area in particular have said that if they can bring this in, they’ll open places in Arizona they wouldn’t have thought of otherwise,” Ursenbach said. “And there are some big companies that are pretty big.”
Mojave County Supervisor Travis Lingenfelter, who represents the Colorado City area, voted this week to pursue a foreign trade zone distinction.
“It doesn’t matter who you are, you have to go where the work is,” said Lingenfelter. “If it helps strengthen our employment, I’m all for it.”
The Mojave County Board of Supervisors unanimously approved Ulsenbach’s proposal at its board meeting in Kingman on February 21.
