SAN LEANDRO -- Hoping to lure new businesses to the area, the city is waiving its annual business license tax through 2014 for most businesses that set up shop in the next 12 months.

The city is also waiving its $107 zoning conformance review fee for new businesses. Costs for an annual or prorated midyear business license would normally vary depending on the type and size of the business.

A retail, wholesale or manufacturing business would pay $119.10, plus $35.70 times the number of owners and employees, plus a $1 state-mandated fee.

A dance hall, pumpkin patch or Christmas tree lot, on the other hand, would pay a flat $595.90 fee plus $1. A towing company would pay a rate calculated using gross receipts while a parking lot business would pay a rate calculated using the number of spaces, plus $1.

Out-of-city contractors, businesses not physically located in San Leandro, residential and commercial property owners, amusement devices and waste disposal sites do not qualify for the tax holiday, officials said. The holiday does include older qualified businesses relocating from other cities.

"Entrepreneurs of all sizes -- from major companies to startups or just one person with a great idea -- call San Leandro their home," said Mayor Stephen Cassidy in a statement. "We invite a new wave of entrepreneurs to set up shop in San Leandro, and we will help launch your business by not charging a license fee for the next year."

Nearly a quarter of the land in the city is designated for industrial uses, and much of it can be connected to the public-private fiber-optic Internet network Lit San Leandro, boasting Internet speeds of up to 10 gigabits per second, officials said.

The city is also hoping its location near Oakland International Airport, the Port of Oakland and local BART stops will appeal to businesses looking for a new home.

Ashly McGlone covers San Leandro, San Lorenzo, San Ramon and the Washington Township Health Care District. Contact her at 510-293-2463. Follow her at Twitter.com/AshlyReports.