Fullerton Will Gain Tax Revenue From New Use of Hughes Property

* As you may have heard by now, Hughes Aeronautics and Electronics Co. has announced that it will transfer its Fullerton operations to El Segundo and Long Beach.

I can assure that (Fullerton) worked closely with state, regional and local officials in a strong effort to urge Hughes to remain in Fullerton. The “Red Team” we formed met with Hughes’ top officials and showed them that the cost of doing business here was far more economical than in El Segundo or Long Beach. Further, we stressed that Fullerton offers a pro-business city attitude, as well as outstanding community amenities which would benefit Hughes’ employees.

Unfortunately, however, Hughes’ decision had more to do with the efficient use of its corporate resources than with community issues. In fact, the high potential resale value of Hughes’ Fullerton land holdings apparently was a factor in the decision to close the Fullerton facility.

The question on all our minds now is: What will be the impact of Hughes’ departure?

First, jobs: While Hughes will transfer 6,800 jobs out of Fullerton, we need to remember that it is vitally important to the Southern California economy that companies such as Hughes remain strong and viable, and this consolidation is designed to accomplish that. It’s our loss, but, in the long run, it is better for the region.

Second, the financial impact: Actually, there is some positive news here. Much of Hughes’ property has been under the protection of Proposition 13, and its valuation has not been reassessed for years. As the land’s use and ownership changes, the property will be reassessed, and the city stands to gain considerably more property tax income as a result. Any residential or commercial development on the site will generate local sales and sale-tax revenues.

As much as we regret the loss of these local jobs, we need to keep in mind that Hughes has already cut 7,700 Fullerton jobs, and our economy has absorbed those losses. We have 10,300 other businesses operating in the city, and together they are creating a vital and diverse economy that is extremely well positioned for future growth.

A.B. (BUCK) CATLIN

Mayor, Fullerton