Capturing Successes in Renewal Communities and Empowerment Zones

SpotlightSpotlight onon ResultsResults Spotlight on Results ABOUT THIS PUBLICATION

About This Publication business expansion and on building strong and viable private and public partnerships as he Bush $11 billion Tax Incentives the most effective way to meet the chal­ package available to Renewal lenges of these areas. Community and Empowerment Zone businesses and $15 billion Spotlight on Results highlights many of the NewT Markets Tax Incentive Program are prov­ successes resulting from the Administration’s ing to be a viable option in fostering the efforts for achieving economic prosperity in entrepreneurial spirit in our Nation’s urban RC and EZ designated areas. Section I of this and rural areas. Spotlight on Results: Captur­ publication provides anecdotal evidence that ing Successes in Renewal Communities and tax incentives are clearly working, particularly Empowerment Zones highlights the successes for RCs and Round III EZs. These designees of the tax incentives and celebrates successful have built strong partnerships, shown an programs and projects taking place in RCs unwavering commitment to the successful and EZs that exemplify the principles of the marketing of tax incentives, and have acted Community Renewal Initiative. to remove many of barriers that tend to handicap the full utilization of the tax Spotlight on Results: Capturing Successes in incentives. Renewal Communities and Empowerment Zones provides sterling examples of the Admini- The publication also provides a balanced stration’s new approach in assisting RC/EZ portrait of the successes that Rounds I and II designated areas. President Bush believes Zones have experienced in using local and that these low-income areas are best served federal funds to promote job training, and by allowing the genius and can-do attitudes technical and financial assistance. Their sto­ of America’s entrepreneurs to take root in ries are grouped together under such themes designated areas. as “Businesses Advancing with Technical and Financial Assistance” and “Residents Fostering an environment that is both friend­ Advancing with Job Creation and Training ly to business interests and one that strongly Assistance.” These sections illustrate how supports capital investment requires a depar­ EZs have used available local and federal ture from the traditional way of meeting the resources. Furthermore, there are several challenges of RC/EZ communities. The initial notable illustrations depicting how RCs have concept was a grant approach for Round I worked with local partners to help businesses EZs and ECs coupled with a minor emphasis open and expand and to assist residents find on the promotion of tax incentives. This con­ employment and learn new job skills. cept evolved over time into an approach that strongly emphasized the importance of tax Spotlight on Results also contains additional relief for RC/EZ businesses. The Administra­ stories about community services available to tion has made the $11 billion tax incentive RC and EZ residents through: Innovative package and the $15 billion in New Markets leveraging of private and public resources for Tax Credit Program the centerpiece of its activities focusing on assistance to RC/EZ resi­ strategy for creating economic opportunities dents to obtain low-income housing; After- in low-income areas. This strategy focuses on School programs; increased access to the creation of prosperity through jobs and healthcare and childcare; and a variety of

About this Publication iii ABOUT THIS PUBLICATION

other services. Stories on these successes and Enterprise Communities, please call HUD’s appear in the sections under “Families Improv­ Community Connections Information Center ing with Community Services and Develop­ at (800) 998-9999. ment,” and “Families Advancing with Housing and Homeownership Assistance.” To determine whether a business is located in an RC or EZ, and whether the employees live We hope you enjoy this first volume of in these areas (allowing the business to be Spotlight on Results: Capturing Successes in eligible for a share of $11 billion in RC/EZ Renewal Communities and Empowerment tax incentives), please visit HUD’s RC/EZ Zones. We also hope that the successes out­ Address Locator on the Internet at lined in this volume encourage you, as a www.HUD.gov/crlocator. community leader or business owner in or near a RC or EZ, to take advantage of the For more information on HUD’s RCs and EZs, valuable RC/EZ incentives in your community. on the incentives available to businesses in these communities, and for maps of the To obtain additional complimentary copies of designated areas, please visit HUD’s Office this guide or other Community Renewal pub­ of Community Renewal Web site at www. lications, including the Tax Incentive Guide hud.gov/cr or call HUD’s Community for Businesses in the RCs, EZs, and ECs and Renewal Office at (202) 708-6339. For Tax Incentives + Businesses=Jobs: A Market­ more information on USDA’s rural EZ initia­ ing Primer on How to Entice Businesses to tive, please visit USDA’s Web site at www. Renewal Communities, Empowerment Zones, ezec.gov.

ivSpotlight on Results he role of government is to create an environ­ ment that encourages capital flows and job cre­ “T ation through wise fiscal policy. And as a result of the tax relief we passed, the economy is growing.” Remarks from the President’s discussion on the budget and tax relief at White House Conference December 2004

he spirit of the small business owner is strong in America. Remember when you cut income tax “T rates on individuals, you’re really affecting most small businesses in America, because most small businesses are sole proprietorships or subchapter S corporations, which means they pay tax at the individual income tax rate.”

Remarks by the President at Marshall Community and Technical College Huntington, West Virginia April 2004 President George W. Bush

e lowered marginal tax rates and reduced multiple taxation on investment. “W As a result, 25 million small business owners saved an average of $3,000 and 26 million investors saved nearly $800 apiece. The cumulative ben­ efit is clear, both in terms of family budgets and business investment. Real after-tax income is up nearly 10 per­ cent since the end of the most recent recession, a far greater increase than we saw following the last recession.”

Remarks by the Vice President at the White House Conference on the Economy December 15, 2004

Vice President Dick Cheney

v his publication illuminates the successes of urban and rural communities thriving in an “T atmosphere where the federal government has lent its support to businesses and local leaders in creating an environment conducive to economic and housing opportunities. The accomplishments of the Renewal Communities and Empowerment Zones represent a mes­ sage of hope and provide a powerful stimulus for continu­ ing the aggressive promotion of the President’s $11 billion package of RC/EZ tax incentives.”

Alphonso Jackson, Secretary, U.S. Department of Housing and Urban Development

ecognizing the inextricable link between sound fiscal policy and creating an environ­ “R ment that inspires and nourishes America’s entrepreneurial innovative spirit, I have seen and heard over the past four years first hand from those commu­ nities that HUD has had the privilege to serve.

The successes of the Renewal Communities and Empowerment Zones in marketing the tax incentives to their business community and in improving the lives of their RC/EZ residents are well reflected in this publica­ tion and demonstrate what is possible in our nation through sound tax policies, and committed public and private collaborations.”

Roy A. Bernardi, Deputy Secretary, U.S. Department of Housing and Urban Development vi Spotlight on Results am pleased to present Spotlight on Results as one of my first actions as Assistant Secretary for Community “I Planning and Development. This publication’s vignettes portray the unwavering commitment and support of Federal, State, and local governments, and the citizens, business communities, and nonprofit organizations striving to create and expand housing and economic opportunities in many of our Nation’s most challenged communities through the Empowerment Zone and Renewal Community Initiatives.”

Pamela H. Patenaude, Assistant Secretary, Office of Community Planning and Development

potlight on Results is a testimonial to the successes occurring in our nation’s urban and rural communi­ “S ties through wise tax policies, thoughtful leveraging of public and private resources, and strong support of commu­ nity and neighborhood partnerships. The Empowerment Zones and Renewal Communities exemplify what happens when leveraging becomes a major element in a community’s long-term monetary policy. In the case of the Empowerment Zones, an estimated $245 million in HUD funds has resulted in the leveraging of $1.19 billion in cash and in-kind resources.”

Nelson R. Bregón, General Deputy Assistant Secretary, Office of Community Planning and Development

Introduction viivii Dear Friends:

The Secretary of the Department of Housing and Urban Development established the Advisory Council on Community Renewal to report on the effectiveness of the Renewal Community (RC) and the Empowerment Zone (EZ) initiatives. Central to both the RC and EZ initiatives is the marketing of the $11 billion tax incentive package to an estimated 300,000 RC/EZ businesses. The promotion of this tax incentive package to these businesses can be daunting, yet the RC/EZ designated areas are meeting this challenge with amazing results.

Through our Advisory Council hearings, we were privileged to hear firsthand from RC/EZ administrators and their business communities about the positive impact that the tax incentives have had on both budding and established businesses in the RC/EZ designated areas. Their stories are part of this publication under a special section titled “Businesses Succeeding With RC and EZ Tax Incentives.”

Over the past year, the Council learned of the deep commitment and tireless effort by local officials and administrators to create a climate of hope through economic development, afford­ able housing, and community services in RCs and EZs. Clearly, the proof of that commitment is demonstrated in each of the stories presented in this publication. The Council is honored to present this publication, as one measure of the notable successes that the 70 RC and EZ desig­ nated areas are experiencing in carrying out their programs. We are confident that these 70 areas will continue to pursue their path of accomplishment for those most in need of our Nation’s attention.

In closing, I want to take this opportunity to personally thank Council members Maurice Barksdale; Karen Juarez Boyd; Irwin Davis; Jon Fox; Lillian Kawasaki, and John Rood for giving so freely of their time and skills in serving on the Advisory Council.

Sincerely,

Robert L. Woodson, Sr.

Advisory Council Chair

ix TABLE OF CONTENTS

Table of Contents

Introduction...... xv

1. Businesses Succeeding With RC and EZ Tax Incentives ...... 1

1.1. Wage Credits ...... 5

Baltimore, Maryland ...... 5 Buffalo-Lackawanna, New York...... 5 Burlington, Vermont...... 6 Central Louisiana...... 7 Cumberland County, New Jersey...... 7 Eastern Kentucky ...... 8 El Paso, Texas ...... 9 Gary/Hammond/East Chicago, Indiana and Columbus, Ohio ...... 10 Hamilton, Ohio ...... 11 Huntington, West Virginia/Ironton, Ohio...... 11 Jacksonville, Florida ...... 13 Lawrence, Massachusetts...... 14 Memphis, Tennessee ...... 14 New Haven, Connecticut ...... 16 Northern Louisiana...... 16 Orange Cove, California ...... 17 Pulaski County, Arkansas...... 18 San Antonio, Texas ...... 18 San Francisco, California...... 19 Santa Ana, California ...... 20 Southern Alabama...... 21 Tacoma, Washington...... 23 Tucson, Arizona ...... 24 Yonkers, New York...... 24

1.2. Deductions ...... 26

Burlington, Vermont...... 26 Charleston, South Carolina...... 28 Corpus Christi, Texas ...... 28 Eastern Kentucky ...... 29

Table of Contents xi TABLE OF CONTENTS

El Paso County, Texas ...... 30 Greene-Sumter County, Alabama ...... 31 Jamestown, New York ...... 31 Los Angeles, California ...... 32 Lowell, Massachusetts ...... 33 Memphis, Tennessee ...... 33 Milwaukee, Wisconsin ...... 34 Mobile, Alabama ...... 35 New Orleans, Louisiana ...... 36 Niagara Falls, New York...... 36 Ouachita Parish, Louisiana ...... 37 Parlier, California ...... 38 Philadelphia, Pennsylvania ...... 38 Rochester, New York...... 39 San Diego, California...... 40 San Francisco, California...... 40 Tacoma, Washington...... 41 Turtle Mountain Band of Chippewa...... 42 West-Central Mississippi ...... 43 Youngstown, Ohio ...... 43

1.3. Bond Financing...... 45

Boston, Massachusetts...... 45 Chicago, Illinois...... 46 Cumberland County, New Jersey...... 47 District of Columbia ...... 48 Huntington, West Virginia/Ironton, Ohio...... 49 Los Angeles, California ...... 50 Miami-Dade, Florida...... 51 Philadelphia, Pennsylvania/Camden, New Jersey ...... 52 Santa Ana, California ...... 53 St. Louis, Missouri/East St. Louis, Illinois ...... 54 San Antonio, Texas ...... 55

1.4. Capital Gains ...... 56

xii Spotlight on Results TABLE OF CONTENTS

2. Businesses Advancing With Financial and Technical Assistance ...... 61

Baltimore, Maryland ...... 64 Philadelphia, Pennsylvania/Camden, New Jersey ...... 66 Camden, New Jersey ...... 67 Cleveland, Ohio ...... 68 Columbus, Ohio...... 68 El Paso, Texas ...... 69 Fresno, California...... 70 Gary/East Chicago/Hammond, Indiana ...... 71 Huntington, West Virginia/Ironton, Ohio...... 71 Knoxville, Tennessee...... 73 Miami-Dade, Florida...... 74 Minneapolis, Minnesota ...... 75 New York, New York ...... 76 Norfolk-Portsmouth, Virginia ...... 79 St. Louis, Missouri/East St. Louis, Illinois ...... 81 Yakima, Washington ...... 81

3. Residents Advancing With Job Creation, Training, and Assistance...... 87

Atlanta, Georgia ...... 90 Cincinnati, Ohio ...... 91 Cleveland, Ohio ...... 91 Columbia/Sumter, South Carolina ...... 92 Detroit, Michigan ...... 93 El Paso, Texas ...... 95 Flint, Michigan ...... 96 Gary/East Chicago/Hammond, Indiana ...... 98 Huntington, West Virginia/Ironton, Ohio...... 100 Miami-Dade, Florida...... 100 New Haven, Connecticut ...... 102 Oklahoma City, Oklahoma ...... 103 Santa Ana, California ...... 104 Syracuse, New York ...... 105

4. Families Improving With Community Services ...... 109

Buffalo-Lackawanna, New York...... 112 Camden, New Jersey ...... 112

Table of Contents xiii TABLE OF CONTENTS

Chattanooga, Tennessee ...... 113 Chicago, Illinois...... 115 Columbus, Ohio...... 115 Detroit, Michigan ...... 116 Lowell, Massachusetts ...... 118 Minneapolis, Minnesota ...... 119 Newark, New Jersey ...... 121 New Haven, Connecticut ...... 122 New York, New York ...... 123 Oklahoma City, Oklahoma ...... 124 Philadelphia, Pennsylvania/Camden, New Jersey ...... 126 Southern Alabama...... 127 Turtle Mountain Band of Chippewa...... 127 Yonkers, New York...... 128

5. Families Advancing With Housing and Homeownership Assistance ...... 133

Detroit, Michigan ...... 136 El Paso, Texas ...... 137 Gary/Hammond/East Chicago, Indiana ...... 139 Huntington, West Virginia/Ironton, Ohio...... 139 Miami-Dade, Florida...... 140 Minneapolis, Minnesota ...... 140 New Haven, Connecticut ...... 141

6. A Glimpse of the Round I Empowerment Zones and Enterprise Community Successes—10 Years After...... 145

Baltimore, Maryland ...... 149 Camden, New Jersey ...... 152 Chicago, Illinois...... 154 Detroit, Michigan ...... 156 New York, New York ...... 158 Philadelphia, Pennsylvania ...... 161 Manchester, New Hampshire ...... 163 Phoenix, Arizona ...... 165 Waco, Texas ...... 167

Appendix: Current Renewal Communities and Empowerment Zones as Designated by HUD ...... 175 xiv Spotlight on Results INTRODUCTION

Introduction

he Community Renewal initiative has In 2001, 28 urban communities and 12 rural been an interagency effort focused communities received RC designations from on creating self-sustaining develop­ the U.S. Department of Housing and Urban ment in distressed urban and rural Development (HUD). In addition, 30 urban RenewalT Communities (RCs) and Empowerment communities have HUD EZ designations. In Zones (EZs) throughout the country. The initia­ Round I four urban communities were desig­ tive supports a holistic approach to development nated as Enhanced Enterprise Communities, that requires community stakeholders to work and, as such, were eligible for tax-exempt together to create and implement comprehen­ bond financing. Part of Washington, D.C., sive courses of action and strategic plans for has HUD’s only Enterprise Zone designation. revitalization. Ten rural areas throughout the country have EZ designations from the U.S. Department of Using a combination of $11 billion in Federal Agriculture (USDA). tax incentives, flexible grant funds, and other resources, the RC and EZ leaders and local part­ Round I and Round II Urban ners are reinvigorating businesses and entire communities that were previously in decline. Empowerment Zones Business owners are now eligible for billions In 1994 HUD designated six urban EZs dur­ of dollars in tax incentives by operating or ing the Round I competition. HUD also des­ expanding in the RCs and EZs and by employing ignated parts of Cleveland and Los Angeles as residents of these areas. As a result of these supplemental EZs and these areas received incentives and other resources of the Commu­ full EZ status in January 2000. In 1999 HUD nity Renewal initiative, new businesses in the made 15 additional urban EZ designations in RCs and EZs are opening and expanding, more Round II. The D.C. Enterprise Zone designa­ residents are becoming employed, and new tion period began in January 1998. community services are becoming available. Round III Empowerment Zones More than 3,575 neighborhood-based projects and programs have been developed and are and Renewal Communities underway as a result of each EZ strategic plan. In December 2000 Congress authorized nine Federal seed money and tax incentives of $1.3 new EZs in a third round of designation, with billion have leveraged almost $18 billion in seven of the EZs planned for urban areas and additional public—and private—sector invest­ two for rural areas. Congress also authorized ments. According to a 2004 publication, the designation of 40 RCs. The goal of the Success Stories Round II Urban Empowerment new RC program, like that of the EZ initia­ Zones, the 15 Round II EZs reported that they tive, has been to promote economic develop­ leveraged more than $3.5 billion in public and ment in communities distressed by high private funding, or $11.55 for every $1 of EZ levels of poverty and unemployment. grant funds. They also created or retained Businesses in the RCs and new EZs became 18,125 jobs. According to the Performance eligible for billions of dollars in Federal tax Measurement System (PERMS), in 2003 Round incentives to hire local residents and expand II EZs received $3.14 in leveraged funds for operations. every $1 of EZ grant funds put into job cre­ ation projects.

Introduction xv INTRODUCTION

On December 31, 2001, HUD designated 28 turn be used by the CDE to provide invest­ RCs in urban areas and 12 more in rural ments in low-income communities, including areas. The law required an EZ or one of the RCs and EZs. The credit provided to the former Enterprise Communities (EC) to forfeit investor totals 39% of the cost of the invest­ its designation if any of its geographic area ment and is claimed over a seven-year credit was included in one of the RCs. Due to this allowance period. Throughout the life of the law, the Atlanta EZ, 16 urban ECs, and 3 NMTC Program, Treasury is authorized to rural ECs lost their designations. The loss of allocate to CDEs the authority to issue to the Atlanta EZ designation enabled HUD to their investors up to the aggregate amount designate eight new EZs instead of seven in of $15 billion in equity as to which NMTCs Round III. USDA designated to rural Round II can be claimed. EZs in Maine and Texas. The 8-year designa­ tion period for the new RCs and EZs began The benefits of the NMTC Program flow to on January 1, 2002. both the investor and the business borrower. The investor invests capital funds in the low- income area, and by so doing receives a tax A Treasury and HUD Partnership credit. The formula for determining credit To Promote New Markets Tax over the seven year period is as follows: dur­ Incentives ing the first three years of the investment, Throughout this publication are examples of five percent of the total amount paid for the the effectiveness of Federal, State and local stock or capital interest at the time of pur­ partnerships in assisting low-income commu­ chase, and the tax credit during the final four nities increase economic opportunities years is increased to six percent annually. through business development and expan­ To claim the credit for a year, the investor sion. One such partnership currently exists must hold the qualified equity investment on between Treasury and HUD as they couple the credit allowance date for that year. The their efforts to aggressively promote and credit allowance date is the date you make promulgate the following New Markets Tax the initial investment and applies to each of Credit (NMTC) information to their respec­ the next six anniversary dates. tive constituents. Businesses also benefit from the NMTC pro­ The NMTC Program objective is to stimulate gram, as private sector resources are made economic and community development and available to them to better meet their short job creation in low-income communities. and long term financial needs through This program provides an innovative path for increased loans and financial technical attracting needed capital from the private assistance. sector and for reducing the federal burden of providing direct grants to low-income In three rounds of NMTC allocations made communities. since 2002, the Treasury has made 170 awards of NMTC allocations totaling $8 Under the NMTC Program, taxpayer in­ billion in tax credit authority, leaving vestors receive a credit against Federal $7 billion still to be allocated. For more income taxes for making qualified equity information about the next allocation cycle, investments in designated Community including the application process, visit the Development Entities (CDEs). Substantially all Treasury website at www.CDFIfund.gov. of the qualified equity investment must in

xviSpotlight on Results Acknowledgments A special thanks to the Renewal Communities, Empowerment Zones, and Enterprise Communities for their contributions in the development of this Spotlight on Results publication and to the following:

Donald P. Mains, Deputy Assistant Secretary for Economic Development Pamela Glekas Spring, Director, Office of Community Renewal (OCR) John Haines, Deputy Director, OCR Phil Graham, Community Development Specialist, OCR

Introduction xvii Spotlight on Results

SECTION I Businesses Succeeding With EZ and RC Tax Incentives

1.1. Wage Credits

1.2. Deductions

1.3. Bond Financing

1.4. Capital Gains SECTION 1

total of $11 billion in special similar national data on the use of wage tax incentives is available to credits in the RCs, whose designations began businesses that operate in in 2002. Renewal Communities and AEmpowerment Zones and that employ resi­ The Work Opportunity Tax Credit (WOTC) is dents of these areas. The most popular of another valuable employment credit for busi­ these tax incentives is the RC/EZ wage credit. ness owners in RCs and EZs. Employers Businesses that hire and retain RC/EZ receive a one-time WOTC of up to $2,400 residents can apply tax credits against their per employee by hiring 18- to 24-year-old Federal tax liability. If a business owes employees who live in the RCs or EZs. The $50,000 in Federal taxes and has $20,000 2000 survey of businesses in the Round I EZs in RC/EZ wage credits, it would owe only showed that WOTCs also influence employ­ $30,000 in taxes. These credits are worth up ment decisions that EZ business owners have to $3,000 per employee per year to business­ made. Fifty-eight percent of business owners es in EZs and $1,500 per employee per year that claimed the WOTC stated that their sav­ to businesses in RCs. ings from the credits were “very important” or “somewhat important” to their decisions HUD’s Office of Community Renewal is work­ to hire and retain employees. It appears that ing with the Internal Revenue Service (IRS) to without these credits, business owners determine the current total value of wage throughout the RCs and EZs would not have credits that RC and EZ businesses claim annu­ hired as many local residents. ally. According to a 2004 General Accounting Office report, the IRS estimates that 24,000 According to data reported by the U.S. tax returns filed in EZs from 1995–2001 Department of Labor (DOL), WOTC utiliza­ saved businesses more than $250 million. In tion jumped 20 percent with the designa­ 1995, according to an IRS study of businesses tions of the RCs and Round III EZs, from nationwide, only 432 businesses claimed EZ 47,700 (12.1 percent) of the overall WOTC wage credits. In 2001 this figure escalated to totals in 2001 to 56,800 (14.2 percent) in more than 7,000 businesses. 2003. DOL data showed a 24-percent increase in WOTC claims in RCs and EZs after HUD found that EZ wage credits influence HUD designated the RCs and Round III EZs in employment decisions that business owners December 2001 from 42,947 claims for tax make in the EZs. According to a 2000 survey year 2001 to 53,058 claims for tax year of Round I EZ business owners that claimed 2002. EZ wage credits, 45 percent of the owners stated that their savings from the EZ wage If you would like additional information on credits were “very important” or “somewhat any of the success stories on wage credits in important” to their decisions to hire and this section, please consider calling the RC retain employees. HUD found that businesses or EZ directly using the contact information that used the EZ wage credits in 1996 and that appears at the end of every story. In 1999 experienced, on average, greater addition, to determine whether a business increases in the number of EZ residents is located in one of the RC/EZs and may be employed than firms located in the EZs that eligible for wage credits, please visit HUD’s did not claim EZ wage credits. HUD is work­ RC/EZ Address Locator at ing with the IRS and other agencies to collect www.hud.gov/crlocator.

EZ and RC Tax Incentives 3 SECTION 1

purchase homes in the EZ will receive $1,000 after settlement and another $1,000 one year Wage Credits later. EZ Manufacturer Uses “Medo is the first company to let us know about a project developed with funds saved Its Tax Credits To Help by taking advantage of the Empowerment Employees Buy Homes Zone wage tax credit,” said Empower Baltimore Management Corporation (EBMC) Baltimore, Maryland, EZ former President and CEO Diane Bell. “We are excited to partner with a company that “We get the tax credit because of our has developed a creative way to give a perk employees, so why shouldn’t they share in to their employees that also is a benefit to the benefit?” This is how Stuart Walman, the community,” she added. EBMC adminis­ manager of Medo Manufacturing in the ters the Baltimore EZ program. Baltimore EZ, explains the reasoning behind his company’s homeownership grant program. Employees can use Medo’s $2,000 grant in conjunction with a separate grant of up to With more than 400 employees, Medo $5,000 from EBMC’s Housing Venture Fund Manufacturing, a maker of air fresheners to cover settlement costs. EBMC has desig­ and related products, is one of the largest nated $4.7 million of EZ funds to the fund, businesses in Baltimore’s EZ. Medo has a which provides grants (949 awards as of strong commitment to hire local residents. February 2004) to help low- and moderate- As an EZ business that hires zone residents, income individuals and families purchase Medo is entitled to a Federal wage tax credit homes in the EZ. of up to $3,000 per EZ employee. This com­ mitment has translated into more than $1 For more information on the programs of the million in wage tax credits for the business Baltimore EZ, please contact Tanya Terrell, at since 1994 when the Baltimore EZ was (410) 783–4400. designated. “We have dedicated employees who work Blue Info Cards Help hard every day to make our company a suc­ cess,” explained Walman. “We want to give Jobseeking RC Residents something back to our employees and they Market Tax Credits— deserve it.” and Themselves What Medo decided to do for its employees was to use savings from EZ wage tax credits Buffalo-Lackawanna, New York, RC to fund a homeownership grant program. “The address of the Renewal Community resi­ Medo awards $2,000 to employees who pur­ dent has value,” pointed out Caroline Bright, chase homes in the EZ. associate employer services representative of Medo employees Jan Hoover and Bruce the New York State Department of Labor and Griffiths were the first to take advantage a key partner in the Buffalo-Lackawanna RC. of the company’s new program. Hoover, “That address could be worth a $1,500 Griffiths, and future Medo employees who Federal tax credit to the employer who finds

EZ and RC Tax Incentives 5 SECTION 1

that the employee lives and works in the RC Wage Credits Boost Renewal Community.” Bottom Line for Vermont But how to be sure that both RC residents Pub & Brewery and potential employers are aware of this benefit? For Bright and her staff at the Burlington, Vermont, RC Buffalo office, the answer was a bright blue, laminated “Resident Awareness” card. Vermont Pub & Brewery, a Burlington, Vermont, restaurant that crafts its own vari­ The card, provided to all jobseekers who are eties of ales and lagers, was able to claim residents of the RC or the New York Empire $22,380 in RC wage credits on its 2002 Zone who visit one of the Department of taxes. Labor sites in Buffalo, states the following: “Renewal Community tax incentives are valuable economic development tools,” said ATTENTION EMPLOYER: by hiring the Bruce Seifer, assistant director of economic bearer of this informational card, your com­ development in Burlington’s Office of pany may be entitled to several tax credits, Community and Economic Development. including: The experience of the 15-year-old local pub ● Welfare to Work tax credit. and brewery seems to bear out Seifer’s asser­ ● Work Opportunity tax credit. tion. Of the enterprise’s 64 part-time and full-time employees in 2002, 18 lived in the ● Empire Zone Credit (New York State tax RC. Because businesses located in the RC can program requiring local certification). receive up to $1,500 in wage credits every year for each employee who resides in the ● Renewal Community employment credit. RC, these workers created a substantial tax The card lists phone numbers for followup benefit for the Vermont Pub & Brewery. information and serves two purposes. It Seifer emphasized the importance of getting informs residents that among their other the word out about the value of RC wage qualifications for employment, they bring credits and other economic development with them a potential tax credit to the incentives. “Through our city’s outreach employer, and it also identifies for potential efforts, businesses are regularly informed employers the specific programs from which as to how these incentives can be used to they may benefit. their advantage,” he said. “Whether it is The RC plans to carry out a survey on card through the use of commercial revitalization usage and response. In the meantime, the deductions for a large development or rede­ RC has helped build a bridge between local velopment project or through keeping hard- residents and employers. The blue laminated earned dollars using wage credits, it is clear card serves as a reminder to all that RC resi­ that the net result of these incentives is the dents have value. strengthening of the economy of the whole community.” For more information on the programs of the Buffalo-Lackawanna RC, please call For more information on the programs of Bonnie Kane Lockwood at (716) 851–5468. the Burlington RC, please contact Bruce Seifer at (802) 865–7144.

6 Spotlight on Results SECTION 1

RC Tax Credits Yield Another recent success in the Central Louisiana RC is the purchase by local entrepreneur Jessie Employee Health Newcomer of a blighted brownfields site on Insurance Bolton Avenue in the city of Alexandria. Newcomer is using environmental cleanup Central Louisiana, RC credits and a possible RC commercial revitaliza­ Before HUD designated an RC in Central tion deduction (CRD) allocation to offset the Louisiana in January 2002, Catahoula costs of cleaning up this major eyesore. Manufacturing in Jonesville could not afford Newcomer’s business, Visual Strings, is planned to provide health insurance for its employees. as a high-technology manufacturing site for Then, in 2004, business owners Charles violin parts. The project is expected to help Champlin and his daughter Dareth Delhoste revitalize downtown Alexandria, according to found that the benefits of RC wage tax cred­ the Alexandria Daily Town Talk. its for employees living and working in the For more information on the programs of RC made providing health insurance the Central Louisiana RC, please call affordable. President and CEO Tana Trichel, Macon “The family looks at this as an investment in Ridge Economic Development Region, at its employees,” commented Heather Urena of (318) 757–3033. the Kisatchie Delta Regional Planning District. RC tax incentives such as the $1,500 per employee wage tax credit enable employers Work Opportunity Tax to offer benefits to employees. Credit and Creative

“The RC program is helping to sustain local Transportation Solution businesses and to encourage faster invest­ Yield Summer Jobs for ments. The program is helping business own­ ers to decide to act sooner rather than later,” Jersey Youth Urena commented. The RC program’s goal, to attract sustained private investment and Cumberland County, New Jersey, EZ a diverse employment base in some of the The Cumberland Empowerment Zone most distressed pockets of poverty, has gar­ Corporation (CEZC), the Cumberland County nered attention from around the Nation, Office of Employment and Training (CCOET), she said. and a convenience store company located in the EZ have worked together to create a suc­ Champlin and Delhoste own two companies cessful program using the WOTC to provide in the Central Louisiana RC: Catahoula summer jobs for youth living in the EZ. Manufacturing and The Fish Net Company. Catahoula Manufacturing makes netting for The company has several convenience stores, fishing, batting cages, and other products, which need to staff up for the summer which is then sold at The Fish Net Company, months, near tourist areas along the Jersey the family’s nearby retail store. These two Shore. The three partners identified trans­ homegrown companies contribute to the portation as a barrier to getting jobs for resi­ local and State economies. dents. After determining they could share transportation costs, CEZC, CCOET, and the convenience store company established a bus

EZ and RC Tax Incentives 7 SECTION 1

system to transport youth from different Rural Kentucky Employer areas to their jobs. Takes Full Advantage of In the 4 years of operation from 1999 RC Wage Credits through 2003, approximately 180 EZ youth received training and worked for the con­ Eastern Kentucky, RC venience store company during summer months, exceeding the partners’ expecta­ An agreement between the Corrections tions. CCOET screened potential employees Corporation of America (CCA) and the State of and certified youth as being members of a Vermont and the ability to capitalize on the group targeted by the WOTC. (CCOET is RC wage credit worked together to create 47 responsible for doing employee certifica­ new jobs in the Eastern Kentucky RC (EKRC). tions for both WOTC and the Welfare to CCA, the Nation’s largest owner and opera­ Work [WtW] credit.) tor of privatized correctional and detention As CEZC Executive Director Sandra facilities and one of the largest prison opera­ Forosisky explains, “Empowerment Zone tors in the United States, announced an communities are some of the most dis­ agreement in January 2004 to manage up to tressed areas in the Nation. Tax incentives 700 Vermont inmates. CCA elected to house for job creation are important tools in an 215 of those 700 inmates at the Lee overall holistic strategy for change. CEZC Adjustment Center in the RC, creating an funding addresses underlying social, educa­ additional 47 jobs. “CCA is one of the larger tion, and community issues within the EZ employers within the EKRC and we are excit­ community. Combining tax incentives with ed about the new jobs,” said Susan Wilder, funding for transportation, job training, EKRC State director. entrepreneurial training, and business CCA operates 64 facilities (including 4 in financial assistance is the recipe for success­ RCs) with a total capacity of approximately ful economic development and revitaliza­ 65,000 beds in 20 States and the District of tion of these communities.” Columbia. Employers in RCs that employ RC Since its inception in 1998, CEZC has residents can receive a yearly wage tax credit forged partnerships with local organizations worth up to $1,500 per employee. CCA to increase their use of Federal EZ tax claimed approximately $436,000 in RC Wage incentives, including WOTC. Under WOTC, Credits in both 2002 and 2003, according to employers can receive a tax credit worth up Steve Brown, CCA director of financial to $2,400 per employee by hiring EZ resi­ reporting. According to the CCA Web site, dents between the ages of 18 and 24. through CCA’s ownership of correctional facilities, the company also provides valuable For more information on the Cumberland economic benefits to local communities County EZ, contact Executive Director Sandra through property, sales, and other taxes, Forosisky at (856) 459–1700. as well as providing a stable employment base. CCA is a strong contributor in the communities in which their facilities are located with a dedication to charitable giving and volunteerism.

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For more information on the EKRC, contact correctly. OCAT advises its clients to attach EKRC State and OCAT Director Susan Wilder copies of these forms to all job applications. at (606) 593–7296. EKRC staff members also provide assistance to RC residents, advising them to tell Helping Kentucky prospective employers within the four-county area about their RC residency and to remind Residents Help these employers about the valuable tax bene­ Themselves Through fits available for hiring RC residents. EKRC also gives copies of its marketing brochure to Tax Incentives individuals who travel outside the RC to look for work, reminding them that employers Eastern Kentucky, RC located outside the RC can also claim the The Eastern Kentucky RC (EKRC), which WOTC and WtW tax credits if employees includes four southeastern Kentucky counties meet certain eligibility criteria. in the heart of Appalachia, made a commit­ ment at the start of its designation to help This marketing method has proven successful residents become self-sufficient, employed as EKRC has found that the more residents people who take pride in themselves. Since know about the incentives, the more their it received its designation in January 2002, chances of finding employment improve. EKRC has been excited about helping local EKRC’s marketing efforts can be reduced businesses take advantage of RC tax credits because residents apply their energies to and deductions and about focusing efforts on promoting themselves. “This project helps empowering local residents. residents feel confident about their chances to secure a job while at the same time help­ EKRC formed a partnership with the Kentucky ing us to market the tax incentives,” said Department for Community-Based Services Susan Wilder, State director of the EKRC. (DCBS) in early 2002 to inform residents about the RC employment credit, the WOTC, For more information on these successful tax and the WtW credit. EKRC created a incentive efforts in the EKRC, contact EKRC brochure titled How Residents Can Use the State and OCAT Director Susan Wilder at Renewal Community Tax Credits to Get a Job in (606) 593–7296. the Eastern Kentucky Renewal Community, and DCBS distributes this brochure to local resi­ dents who are looking for jobs. DCBS refers Southwest Pizza those clients to the Owsley County Action Company Maximizes Team (OCAT), which works with the local res­ idents to explain how the employment credit Benefit of EZ Wage can benefit local employers and also helps Credits the residents determine whether they are eligible for the WOTC and WtW programs. El Paso, Texas, EZ

When residents are determined to be quali­ Of the many benefits and services available fied for either of these programs, OCAT staff to businesses that hire EZ residents, wage members first give them the forms that credits are possibly the most rewarding for employers will need to use the tax credits, one simple reason: they tie directly to job then teach them to complete the forms creation and retention. In the El Paso EZ,

EZ and RC Tax Incentives 9 SECTION 1

one business taking full advantage of the tax credit could influence a company’s hiring wage credit and other EZ tax incentives is decision if all other applicant characteristics Pizza Properties, Ltd. were equal.

Pizza Properties owns and manages a num­ For more information on the El Paso EZ, con­ ber of Burger King and Peter Piper Pizza fran­ tact Executive Director Phyllis Rawley at chises in Texas and New Mexico. With 2,100 (915) 351–1680. people in its employ in both full- and part- time positions, Pizza Properties takes a proac­ tive approach to maximizing its net income. Northwest Indiana It relies on qualified tax advisors such as Net Profit, Inc., to research and file the appropri­ Businesses Profit ate paperwork on its behalf to help the From EZ Locations company take advantage of wage credits whenever applicable. Gary/Hammond/East Chicago, Indiana, EZ and Columbus, According to Controller Jeanene Payen, a Ohio, EZ certified public accountant, Pizza Properties has a history of taking advantage of wage Les Kaplan, controller of Interstate Blood credits (which reduce income tax on a Bank, Inc., understands the value of locat­ dollar-for-dollar basis) whenever they are ing in a Federal EZ. A sister company, Bio- available. Of the company’s current employ­ Blood Components, Inc., is located in the ees, 253 either qualify at the present time or Gary/Hammond/East Chicago EZ and have qualified in the past for the EZ wage another facility is in the Columbus, Ohio, credit, the Work Opportunity Tax Credit, or EZ. Both companies in the EZs are realizing the WtW credit. tremendous tax savings because of their locations. The companies, which provide A business that is part of an industry with a human blood and/or blood components to high employee turnover rate, such as Pizza the therapeutic and diagnostic industries, Properties, can find it an administrative bur­ have realized more than $37,000 in income den to continually track employees to identify tax savings from the EZ-related employ­ credit opportunities. This is why Pizza ment credits. Kaplan is very pleased with Properties enjoys working with entities such the service provided by the Gary/ as Net Profit. “They make it so easy. They are Hammond/East Chicago EZ staff and says responsible for verifying the qualifications of he will continue to take advantage of the the individual employee and compiling the tax incentives and will spread word of the tax forms,” said Payen. EZ advantages to business partners and associates. Because Pizza Properties is noted for taking advantage of the EZ tax incentives, Payen The International Steel Group, Inc. (ISG), a was able to suggest that the El Paso EZ could new but highly profitable competitor in the help other businesses do the same by target­ global steel industry, operates an H-4 blast ing information to potential employees. “I furnace, a basic oxygen furnace, and a con­ really think there is a lack of knowledge out tinuous casting machine at a facility called there,” Payen explains, adding that market­ ISG Indiana Harbor, Inc. The company has ing the tax credits directly to residents could greatly benefited from its decision to locate allow them to market themselves more effec­ in the Indiana EZ. It not only took home tively. The possibility of being able to use a huge profits, it also boasted tax savings of

10 Spotlight on Results SECTION 1

more than $126,000 from EZ employment Federal tax credits for each RC resident that he credits. hires or retains.

Union Tank Car Company (UTLX), also located The press also helped publicize Hamilton’s RC in East Chicago, Indiana, has claimed EZ program. The local newspaper, the Journal- employment credits for the past 2 years. The News, ran a series of articles about the RC resulting tax savings are impressive. In 2002 during the week of the workshop. UTLX saved $40,542 and in 2003 it saved $64,155. UTLX employs a total of 23 EZ resi­ To encourage attendance, Chris Xeil Lyons, dents, 8 from East Chicago and 15 from economic development specialist for Hamilton Gary, Indiana. Don Kepplinger of UTLX is and the RC program manager, secured contin­ pleased enough to say, “I have recommend­ uing education credit for attorneys through ed to all my business associates to take full the Ohio Supreme Court and for certified pub­ advantage of the EZ tax credits.” lic accountants through the Ohio Accountancy Board. For more information on the programs of the Gary/Hammond/East Chicago, Indiana EZ, “We are currently working on a followup please contact EZ Executive Director Venus seminar,” said Lyons. “Although the designa­ Cobb at (219) 886–9047. tion has been around for a couple of years, it is still new and still needs to be marketed to the business community on a continuing City of Hamilton Hosts basis. We are also working with our legisla­ tors on Capitol Hill to make some of the tax Valuable Tax Seminar incentives more user friendly. Our hope is that our marketing efforts, combined with Hamilton, Ohio, RC our legislative efforts, will provide the aware­ In Hamilton and other RC cities, regular mar­ ness this program needs in order to make it keting and education for businesses about RC as successful as it was intended to be.” tax incentives are critical to program success. In 2003 the city of Hamilton and the Greater For more information on the programs of the Hamilton Chamber of Commerce hosted a Hamilton RC, please contact RC Program morning seminar—Partnering for Community Manager Chris Xeil Lyons at (513) Renewal—for area business owners, develop­ 785–7070. ers, tax attorneys, and accountants to sharp­ en their understanding and interest in the Hamilton RC. A diverse group of local busi­ EZ Organizes Tax nesses that conduct business in the RC Incentive Seminar helped underwrite the seminar. and Offers Credits D.C. attorney Linda Schakel, a leading authori- to Accountants ty on RC tax incentives, presented a 3-hour workshop on tax benefits available to busi­ Huntington, West nesses doing business in the city’s RC. Virginia/Ironton, Ohio, EZ Hamilton business owners also helped educate their peers about RC tax incentives. George In 2003 the Huntington, West Schmidt, owner of Hamilton’s downtown Virginia/Ironton, Ohio, EZ sponsored a tax McDonald’s, emphasized that the city’s RC credit seminar to educate local businesses designation has helped his bottom line. As about EZ tax advantages. Linda Schakel, an an RC business, he receives up to $1,500 in

EZ and RC Tax Incentives 11 SECTION 1

attorney specializing in tax-exempt bond fil­ Drawing on the press releases, local newspa­ ing, gave a presentation on wage credits, pers have published articles educating the expensing, and tax-exempt bonds to an public and prospective EZ businesses audience of accountants, business owners about the Huntington/Ironton EZ and its and managers, lawyers, bankers, and eco­ advantages: nomic development professionals. ● An article in The Ironton Tribune featured To encourage accountants to participate, the Unger Shoes, a downtown business that West Virginia Board of Accountancy accredit­ has taken advantage of EZ tax credits. ed the seminar, which means that each Quoting Joe Unger, whose father started attorney and accountant who attended Unger Shoes in 1947 at its current Ironton received 2 hours of continuing professional location, the Tribune noted, “The best education credit. thing about this tax credit—aside from the overall economic benefit of the “The seminar was a great success,” said Empowerment Zone itself—is giving exist­ Cathy Burns, executive director of the ing businesses an opportunity to hire Huntington/Ironton EZ. “We received a lot of people from targeted areas and to receive positive feedback, and we’re planning to help from the government on their Federal make some improvements and do it again tax bill.” next year.” To boost attendance, the EZ will schedule future seminars during the summer ● In an article on Huntington’s EZ, The months when workloads are lighter. There Herald-Dispatch quoted Kirk Dodrill, owner also will be two separate sessions—one for of Dodrill Jewelers, “This wage credit helps business people and one for accountants. small business owners like myself and is easy to use. I was glad to learn of this For more information on organizing a tax credit and it’s really benefited my busi­ credit seminar and for more information on ness.” The article explains the advantages the programs of the Huntington/Ironton EZ, of EZ wage credit and how EZ businesses please contact Executive Director Cathy can qualify for other benefits, including Burns at (304) 399–5454. the WOTC and the WtW Credit.

In addition to marketing the EZ through Promoting EZ press releases, the Huntington/Ironton EZ has Employment Credits conducted tax credit seminars for EZ business­ es, accountants, and attorneys, and has pub­ on the Ohio/West lished and mailed several brochures describing Virginia Border the EZ tax incentives to EZ businesses, seminars, and trade shows. During tax season EZ officials Huntington, West have also placed advertisements describing the Virginia/Ironton, Ohio, EZ EZ employment wage credits in The Herald- Dispatch and The Ironton Tribune. To market the EZ and its tax incentives, the Huntington, West Virginia/Ironton, Ohio, EZ For more information on the Huntington/ developed and distributed local press releas­ Ironton EZ programs, call Executive Director es. Featuring interviews with Ironton and Cathy Burns at (304) 399–5454. Huntington EZ business owners, the articles relate how businesses have received EZ employment wage credits of up to $3,000 for each employee who lives in the EZ. 12 Spotlight on Results SECTION 1

High-Powered Marketing ● A brochure detailing the theory and approach to developing an empowering and EZ Incentives community. Empower Jacksonville ● A window decal for businesses using the Businesses incentives.

Jacksonville, Florida, EZ ● A small mailer with a perforated, postage- paid return card requesting business In January 2002, when HUD designated an EZ feedback. in Jacksonville, the city embraced the deci­ sion. Charged with implementing the EZ plan, the Jacksonville Economic Development JEDC reports that at least 25 EZ businesses Commission (JEDC) designed a marketing responded that they had not known about plan, prepared a special mailing targeting the the EZ tax incentives until they received the EZ’s 3,500 businesses, created a Web site for mailing and will now take advantage of the the EZ, and developed a series of tax incen­ tax incentives. One Jacksonville company, tive workshops. MLXL Sportswear and Specialties, decided to save some money by buying a large ware­ JEDC’s mailing to local EZ businesses included house space in the EZ’s Springfield area. For descriptions of all the EZ tax incentives, IRS owner Pete Malloy, who employs 25 people, forms, a map of the EZ, and a short survey the move was more advantageous than he postcard. Tax incentives in the EZ include EZ anticipated, because the warehouse is located facility bonds, reduced capital gains, in the EZ. “We didn’t find out about the tax increased deductions of equipment purchas­ advantages until after we moved in,” said es, and wage credits worth up to $3,000 per Malloy. “We were pleasantly surprised.” Now year to local businesses for each EZ resident Malloy is committed to hiring EZ residents so that they employ. he can capitalize on as many tax incentives as possible. Since 2002 JEDC has sponsored five public workshops educating hundreds of business The JEDC also markets the EZ on a local cable owners, city council members, city officials television show, Jacksonville on the Move, and staff, and area agencies and departments which airs several times a month. Appearing about EZ tax incentives. IRS representatives on the show, JEDC staff discuss the EZ tax offered keynote presentations at the work­ benefits and promote EZ programs. shops and provide ongoing community edu­ Documenting the effectiveness of TV market­ cation about EZ benefits. ing, JEDC experiences a dramatic increase in phone calls on the day following each show. JEDC also created four marketing pieces that it distributes to businesses, city and state For more information on Jacksonville’s EZ departments, and strategic planning partners. programs, contact JEDC Senior Project The material includes: Manager for Business Development Karen Nasrallah at (904) 630–2272. ● A brochure outlining the tax incentives offered to businesses in the EZ.

EZ and RC Tax Incentives 13 SECTION 1

Semiconductor Company Mayor Michael J. Sullivan says, “The Renewal Community designation gives businesses Reaps Benefits of RC located in the city an economic environment Employment Credits and in which to stay, to grow, and to prosper. It also sends a strong message to new busi­ Assists Community nesses that are searching for a place to set up shop that Lawrence has all the right ele­ Lawrence, Massachusetts, RC ments: great transportation systems, a When faced with the loss of traditional indus­ tremendous labor pool, and low-cost com­ trial jobs, RC cities can attract new businesses mercial space. When combined with RC tax to turn around their economies. In Lawrence, incentives, these factors can greatly reduce Massachusetts, Microsemi Corporation—a the cost of doing business.” leading supplier of semiconductors to the aerospace, defense, and communication For more information on the programs of industries—operates a highly efficient produc­ the Lawrence RC, contact Economic Develop­ tion facility in the city’s RC. Microsemi’s ment Coordinator Fred Carberry at expansion and ongoing job growth have (978) 794–5891. helped boost the city’s economy. Microsemi-Lawrence provides more than 300 New Memphis Web Site jobs—29 held by RC residents. This allows the company to claim as much as $43,500 in Captures RC employment tax credits annually, according Accomplishments to Bryan Schmidt, company controller. When the company recently recruited for 40 new Memphis, Tennessee, RC positions, 60 percent of the applicants lived In 2003 Memphis unveiled a new interactive in the RC, reports Microsemi Human RC Web site—the first in the country. The Resource Manager Kristin Yencho, who works Web site allows RC businesses to enter and with the Massachusetts Department of update their tax incentive information. The Employment and Training on the company’s site has another advantage—Memphis RC staffing efforts. officials can now track employment and other key data that document RC accom­ Recognizing Microsemi’s commitment to plishments and publicize them to the public, the community, Northern Essex Community businesses, local and Federal agencies, and College nominated the company for the Congress. The local press also highlighted Excellence in Literacy award for providing the Web site’s debut and significance. English as a Second Language training for its highly diverse workforce—most of whom The Web site, which was launched August come from the city’s diverse population. 22, enables a business to update its informa­ Known as the Immigrant City, Lawrence con­ tion about the number of renewal commu­ tinues to be the first stop for people com­ nity residents employed, their wages, the ing to America. Today most of the city’s amount of employment tax credit, the immigrants come from the Caribbean, Latin amount of the accelerated depreciation America, and Southeast Asia. deduction, and the company’s e-mail address. This information is useful because Commenting about the increased interest it shows progress over time, and it would that the RC designation brings to Lawrence,

14 Spotlight on Results SECTION 1

otherwise be impossible to obtain on a local increase business participation in 2003, basis, said Yvonne Leander, field office direc­ the RC sponsored a 2-day conference and tor of the U.S. Department of Housing and evening street fair to educate the communi­ Urban Development. ty about RC tax incentives. According to RC officials, when businesses leave the confer­ As an incentive, Memphis pays businesses $50 ence they will know enough about the tax for updating their information on the Web site. credits to ask their accountants and tax pre­ “It’s all voluntary, but companies have an addi­ parers about them. tional incentive to update their information,” RC Administrator Dottie Jones told The city’s 8-year RC designation has benefited www.gomemphis.com. “If we can track it with many of the 4,900 businesses located in the RC some degree of accuracy, we’ll be able to go that covers 48 census tracts and includes back to Congress and show that the program downtown, midtown, and the Memphis Inter­ is effective, businesses are claiming credits, and national Airport. In 2002 T.W. Jones, Jr., who we have an opportunity to do things, to add to owns a container recycling business, took the program, extending it.” advantage of RC wage credits for his 10 employees who live in the RC. According to Before posting updates on the Web site, Jones, as long he can make a profit, he will Jones, administrator of the intergovernmental pass the RC tax savings on to his employees. If relations office of the city’s law division, veri­ they were scheduled to receive a 30-cent per fies the information. hour raise, for example, they got a 60-cent For more information on the Memphis RC raise. In the future Jones’ hiring strategy will programs contact Dottie Jones of the city of focus on residents of the 40-mile RC area to Memphis at (901) 576–6565 or visit the take advantage of the $1,500 tax credit per Memphis RC Web site: www.cityof employee. memphis.org City RC officials hope that the conference and other marketing efforts will educate more business owners to follow Jones’s exam­ Memphis Conference ple. As RC Administrator Dottie Jones told the Highlights RC Tax Memphis Daily News, “One of the important Incentives things for people to understand is that if they are hiring someone, they need to look at Memphis, Tennessee, RC where that person lives. If they’re faced with hiring an employee and they have two equal­ “A free conference designed to teach more ly qualified candidates—but one comes with citizens and business owners about the tax a tax credit and one doesn’t—well, any intel­ credits takes place Tuesday and Wednesday ligent business person is going to want to at the Downtown Marriott, 250 North Main hire the person that comes with the credit.” Street. A street fair that runs from 4:45 to 7 p.m. Tuesday will give business owners who For more information on Memphis RC can’t get away during the workday a chance programs, contact Dottie Jones at (901) to meet with various professionals and gov­ 576–6565. ernment” (The Memphis Daily News, May 1, 2003).

During 2002, the Memphis RC’s first year, fewer businesses than expected took advan­ tage of the available tax incentives. To

EZ and RC Tax Incentives 15 SECTION 1

New Haven Successfully Pharmacy Group, an organization with five pharmacies located in the EZ, learned that it Markets EZ Tax could save $30,000 annually through the EZ Incentives wage credit alone. For more information on the programs of the New Haven, Connecticut, EZ New Haven EZ, please contact Althea Empower New Haven, which administers the Marshall, President and CEO of Empower New Haven EZ, has been fielding more ques­ New Haven, at (203) 776–2777. tions from tax professionals, residents, and cur­ rent and prospective business owners. The organization has earned this attention by mak­ Savvy Veterinarian ing significant strides in the past 2 years in marketing and promoting EZ tax incentives. Applies Multiple RC Incentives for Maximum Using methods ranging from brochures and newsletters to public access television pro­ Savings grams, Empower New Haven has worked tirelessly to publicize the benefits of EZ tax Northern Louisiana, RC incentives. The organization has also formed Dr. Chris Sullivan owns the Sullivan a partnership with local merchants, neigh­ Veterinary Clinic in Winnsboro, part of the borhood business associations, and business Northern Louisiana RC. He is the sole pro­ groups to increase awareness among these prietor of a large and small animal practice communities. In one such effort, the organi­ in this manufacturing and farming commu­ zation invited more than 3,000 EZ business­ nity of about 6,000. When Sullivan decided es to attend a HUD tax incentive workshop. to build a new clinic, he was eligible for the “Empower New Haven is very committed to tax advantages available to business owners helping our partner businesses become prof­ focused primarily within an RC. itable, and we will continue to aggressively market these vital bottom-line benefits,” In May 2002 Sullivan sent his accountant to said Empower New Haven President and HUD’s Community Renewal Implementation CEO Althea Marshall. Conference in Washington, D.C. At the con­ ference his accountant learned the details on As reported in Success Stories: Round II tax incentives, innovative tax incentive mar­ Empowerment Zones, Empower New Haven keting techniques, and performance meas­ has also formed a business alliance with the urement. What he learned allowed Sullivan to Greater New Haven Chamber of Commerce save many thousands of dollars on land, con­ (COC). EZ staff gave presentations and struction, and equipment for his new clinic. answered questions on EZ tax incentives at The accountant was also able to advise two COC board meetings, and the COC in Sullivan on how to take advantage of ongo­ turn featured the tax incentives in one of ing wage credits and, since Sullivan plans on its weekly newspapers. Through its work keeping the RC business for more than 5 with the COC, the EZ informed more years, how he can avoid capital gains when employers about the benefits of locating he decides to sell the business. in the EZ and hiring Zone residents. During construction of the new clinic, These efforts are getting results. Thanks to Sullivan applied for an allocation of the RC Empower New Haven, the Medical Center commercial revitalization deduction to help

16 Spotlight on Results SECTION 1

reduce his construction costs. He also divid­ ● Bowman Farms purchased and completed a ed the deductions for his equipment pur­ $100,000 renovation of a plant that had chases between 2002 and 2003 to take full been idle for 4 years and added new jobs. advantage of increased Section 179 expens­ In addition to its own citrus groves and ing. He currently receives a $1,500 RC wage packinghouse, the Bowman family also credit annually for each of his seven original owns a health-benefits administration employees, since they all live in the RC. company, which means the company Recently he hired four new employees from can provide health benefits to employees. the RC who are between the ages of 18 and ● 24. He is able to claim a $2,400 one-time When Sunny Cove Citrus left a smaller pack­ WOTC for each of these new employees. inghouse last year, it purchased and reno­ vated a larger one that had been closed For more information on the programs of for 6 years. The Sunny Cove plant doubled the Northern Louisiana RC, please call its work force to about 200 employees. President and CEO Tana Trichel, Macon When the $500,000 expansion is complet­ Ridge Economic Development Region at ed, the total number of employees could (318) 757–3033. increase to about 400.

● After Booth Ranches reopened a closed Orange Cove Businesses plant, the company created 75 new jobs. Booth will complete a two-phase, $2.5 mil­ Growing in RC lion expansion, expected to create another 75 jobs. Orange Cove, California, RC RC tax credits are revitalizing the citrus pack­ ● Cecilia Packing Corporation’s $2.25 million ing industry in Orange Cove and generating expansion and modernization will add hundreds of new jobs. “These jobs will pay approximately 85 jobs. better than minimum wage, and the workers will also receive benefits,” said Orange Cove Prior to the area’s becoming an RC, Orange Mayor Victor Lopez. “That’s music to my Cove packinghouses handled about 14 per­ ears, having this kind of business coming into cent of California’s citrus crop, but, by 2005, Orange Cove” (The Fresno Bee, September this could rise to 17 percent, according to 10, 2003). Gordon. The RC has also helped turn around the city’s 2002 unemployment rate of 39 per­ As a result of Orange Cove’s RC designation, cent. Packinghouse jobs had declined to 500 owners of area citrus plants—many idle for in recent years, but, thanks to business years—have bought, renovated, and expand­ expansion, this sector could provide 1,250 ed their businesses, in some cases doubling jobs by 2005 in a city of 8,000 people. their workforces. Former RC Manager Jim Gordon highlighted some of the packing­ For more information on Orange Cove RC house improvements directly tied to RC tax programs, contact Project Manager Julian incentives: Chapa, city of Orange Cove, at (559) 626–2489.

EZ and RC Tax Incentives 17 SECTION 1

Empowering Employers employee who both lives and works in the EZ. He applied the credit to 39 employees in “One at a Time” in 2002. Pulaski County EZ Fox wants to ensure that more employers know about the tax advantages of locating Pulaski County, Arkansas, EZ within the EZ. “It certainly makes it more After Pulaski County received its EZ designa­ financially attractive to be operating a busi­ tion from HUD in January 2002, representa­ ness in the EZ, particularly a business that tives from the public and private sectors hires a lot of employees,” he says. needed an effective way to inform local busi­ nesses about the value of the EZ tax incentives For more information on the Pulaski and how they could enhance their bottom County EZ, please contact EZ Manager line. In a novel marketing strategy, the Pulaski Eyona Scott at (501) 375–0121 or County EZ and the Downtown Partnership of [email protected]. Little Rock launched a campaign to personally visit the top 100 employers in the EZ. As a result, businesses in the EZ are now reaping Toyota To Realize Huge the benefits of meeting one-on-one with EZ Savings by Locating in Manager Terri Hollingsworth and Downtown Partnership Executive Director Sharon Priest. San Antonio EZ Some businesses are learning about the EZ employment credits for the first time and are San Antonio, Texas, EZ excited about using the credits. On February 5, 2003, Toyota announced its choice of the San Antonio EZ as the place “Because the success of the EZ is based on the to build its sixth North American vehicle business taking advantage of the credits, we assembly plant. Toyota Motor Manufacturing, felt that it was important to provide personal Texas, Inc., will build approximately 150,000 visits to help the business community under­ Tundra full-size trucks annually at the new stand these important economic incentives,” facility beginning in 2006. The new plant says Hollingsworth. “Since this valuable eco­ represents an $800 million investment by nomic tool is not widely used, our goals are Toyota and is expected to generate approxi­ to make the business community more aware mately 2,000 new high-wage jobs in the San and to make a real impact upon revitalizing Antonio area, many for EZ residents. our community.” Suppliers will add another 1,000 jobs and One EZ success story is the Community Bakery, generate at least $100 million in building a popular spot for Little Rock residents to sat­ and equipment investments. isfy their carbohydrate cravings. The bakery The substantial tax savings that are associated has two locations in the EZ and one in West with the hiring of EZ residents was the catalyst Little Rock. Community Bakery owner Joe Fox for Toyota’s decision. If only 1 in 20 of the employs between 200 and 300 workers every positions projected to be created by the year, and nearly 55 cents of every dollar Toyota plant and supplier activities is filled by earned is spent on payroll. Because his busi­ an EZ resident, the employers could realize up ness is so labor intensive, Fox was quick to to $450,000 in tax savings annually. take advantage of the tax incentives, which allow him to receive up to $3,000 in tax cred­ Toyota is also developing a reputation in the its annually for every new and current city as an exemplary corporate citizen. So far,

18 Spotlight on Results SECTION 1

the company has made donations totaling consumers drawn to the area, and the city half a million dollars to five San Antonio non- will benefit from a surge in tax revenue, profits to help support economic develop­ thousands of new jobs, and millions in com­ ment, college scholarships, parenting and munity contributions.” early childhood development programs, education, and medical services. This shopping and entertainment venue is the result of an agreement between Forest City Mayor Ed Garza commented that Toyota is Enterprises, the developer of 835 Market “creating a transformation in our communi­ Street, and Westfield America, which owns the ty. The Southside will be the center of San Francisco Centre. In February 2003 the investment with new neighborhoods and firms announced a plan to integrate, develop, commercial development, and the Toyota and market two adjacent sites to maximize plant will be at the core of that growth.” their potential. “Two of the Nation’s leading real estate companies have come together to Fujio Cho, president and CEO of Toyota develop a premier retail and entertainment Motor Corporation, said of San Antonio, destination that will provide substantial benefits “Besides being a great place to live and work, to the city of San Francisco,” said former Mayor San Antonio is a city of the future. Located in Willie L. Brown, Jr. an important corridor for North American trade, it will undoubtedly serve as a vital link Among those benefits are the creation of tomorrow for businesses all around the more than 3,000 permanent jobs and the world.” generation of $500 million in annual sales. The San Francisco Centre also will establish For more information on the programs of job training, internship, and emerging busi­ the San Antonio EZ, please contact Dianne ness incubator programs. It will provide more Quaglia of the city of San Antonio at (210) than $40 million for affordable housing over 207–4014. 30 years, and contribute some $2 million to a revolving community improvement fund.

New San Francisco Centre Employers in the new development will be Brings Millions in able to take advantage of several tax incen­ tives as a result of the centre’s location. RC Development employment credits, available through 2009, provide $1,500 in tax credits to businesses for San Francisco, California, RC each employee that lives in the RC. By hiring When complete, it will boast the second- residents of California’s EZ, businesses in the largest Bloomingdale’s and Nordstrom in the San Francisco Centre also will be able to take country, create 3,350 permanent jobs, and advantage of the State’s EZ hiring credits. The contribute $43.3 million for affordable hous­ San Francisco Redevelopment Agency and the ing over 30 years. It is the San Francisco Mayor’s office assisted the project’s developers Centre, soon to be one of the Nation’s largest in obtaining the necessary State approvals for urban retail destinations. the project. The RC CRD, worth a combined $12 million in accelerated deductions each Located in the San Francisco RC, “This one- year to businesses in the RC, allows businesses of-a-kind project will give San Francisco’s that build or rehabilitate commercial property retail core a huge boost by attracting mil­ to use a 10-year depreciation schedule, as lions of new shoppers,” said Mayor Gavin opposed to the standard 39 years. With a sin­ Newsom. “Businesses from Union Square to gle maximum allocation of $10 million, this Yerba Buena will benefit from the increase in

EZ and RC Tax Incentives 19 SECTION 1

deduction offers eligible businesses instant tax When the facility opened, workers with the savings of tens of thousands of dollars. Santa Ana EZ wasted no time providing High End Products with a specially designed affi­ The new development boasts several aesthe­ davit form to help the company verify those tic enhancements, chief among them the employees that were EZ residents. The man­ restoration of the famed 102-foot-wide, ufacturer was able to qualify eight employ­ glass-and-steel dome and Rotunda and his­ ees, worth $24,000 in Federal employment toric Market Street façade to their early credits. An EZ business can earn $3,000 in 1900s’ appearance. The unique oval-shaped tax credits each year for every EZ resident it atrium that currently illuminates the San employs. Francisco Centre and links historic Market Street with contemporary Yerba Buena will Santa Ana’s hands-on approach has helped complement the dome. businesses in the EZ claim some $1.9 million in tax savings since 1998. “The EZ tax credits For more information on the programs of offer Empowerment Zone residents and busi­ the San Francisco RC, contact RC Program nesses a profitable tool to stimulate eco­ Director Albert Lerma at (415) 252–3134. nomic growth and sustainability within the Santa Ana EZ,” said William Manis, Santa EZ Wage Credits Steer Ana EZ manager. Cycle Company in Right Due in part to its recent tax savings, High End Products is looking to expand its facilities Direction and employee base within the next year. The firm is working closely with EZ staff to maxi­ Santa Ana, California, EZ mize its savings. “It’s important for a business A streamlined procedure to help businesses to have the support of both its workforce and apply for EZ employment credits has a of the city,” said Lars Roulund, president and motorcycle seat manufacturing company CEO of High End Products. “As a business riding high in Santa Ana, California. High owner, it’s comforting to know that the city End Products, which opened for business in is in my corner.” 1998, was looking to expand just 4 years later. The timing was fortuitous: in January High End Products recently received a nation­ 2002 HUD’s 15 Round II EZs had received al 2004 Initiative for a Competitive Inner City an expanded package of tax incentives to award. Ranked 31st among 7,000 applicants, help stimulate economic growth among EZ the firm is considered one of the most inno­ businesses. vative and fastest-growing companies in the United States. High End Products has in­ Intrigued by the potential tax savings, High creased its business by 110 percent over the End left Rancho Margarita, California, in past 2 years: in recognition of this growth November 2002. “The combination of tax and the firm’s importance to the city, Santa credits, business-friendly environment, and Ana presented High End Products with a city qualified labor force were the main draw for proclamation at its May 2004 council High End Products to relocate to Santa meeting. Ana,” said Sonny Thomas, vice president of operations. The company’s 20,000-square- For more information on the programs of foot building is adjacent to Santa Ana’s Auto the Santa Ana EZ, contact EZ Director Mall and the 55 Freeway. Deborah Sanchez at (714) 647–6548.

20 Spotlight on Results SECTION 1

Renewal Community For more information on the programs of the Southern Alabama RC, contact David Incentives Keep Jobs in Barley II of the Alabama Department of United States Economic and Community Affairs at (334) 242–5823. Southern Alabama, RC Although many textile and apparel compa­ nies have moved their operations overseas to Automotive Supplies cut costs, at least one firm has found a way Establish Niche Market to reduce expenses without leaving town. in RC American Apparel considered its Selma, Alabama, plant, which employed some 400 Southern Alabama, RC workers, to be a candidate for relocation. Such a move would have adversely affected When a major automaker built a plant just the local apparel industry, a key component 30 miles from the eastern border of the of Selma’s economy. Southern Alabama RC, it turned the RC into a prime spot for automotive-related busi­ The 2002 RC designation of the area in nesses. Realizing the marketing potential which the American Apparel facility is locat­ inherent in the RC’s proximity to the ed has allowed this plant to prosper at a Hyundai Motors plant, the Alabama time when other U.S. textile companies are Department of Economic and Community closing their doors. The CRD, wage credits, Affairs (ADECA) developed a strategy that and other tax benefits associated with the has convinced three automotive suppliers RC have produced significant cost savings to locate within the RC. for this producer of military uniforms and provided an incentive for the company to Working closely with the Alabama stay put. Development Office (ADO) and local eco­ nomic developers, ADECA came up with a With more than 75 percent of its employees multipronged effort to entice automotive living in the Southern Alabama RC, American suppliers to establish operations within the Apparel was able to reduce its after-tax labor RC. The agency developed brochures that cost by about 52 cents per hour, according explained the financial benefits of locating to company managers. That saved the com­ in the RC. It produced economic and pany roughly $400,000 during the RC’s first financial models, using a cost-benefit year in existence. A business in the RC may comparative-analysis approach, that were earn up to $1,500 each year in wage credits based on a company’s potential investment. for each RC resident it employs. Reduced ADECA gave presentations to prospective labor costs helped American Apparel increase automotive suppliers as well as to ADO’s its workforce to 480 and install automation industrial recruiters and local economic that it could not otherwise afford. development managers and staff. After learning of the tax incentives available The RC benefits and resulting tax savings through the RC program, Todd Strange, have allowed American Apparel to not only director of ADO, described the combination increase capital spending, but also to of wage credit and capital gains provisions consider two expansion projects. The compa­ as “... one of the best recruitment tools in ny is looking at a permanent press facility in the State.” 2005 as well as an additional sewing plant. Both facilities will be located in the RC.

EZ and RC Tax Incentives 21 SECTION 1

As a result of these efforts, three automotive TekPac’s primary business had been manu­ suppliers have decided to locate in the RC facturing synthetic medical devices at its and several others are considering doing so. Alabama site. When it merged operations, In 2002 two automotive-related businesses, the production of food spices and room Hwashin Ltd. and Hysco America Company, deodorizers shifted to Marion as well. The Inc., agreed to locate in Greenville, Alabama. consolidation not only allowed TekPac to A third automotive supplier, Sejong Industrial expand its selection of products, but also Company Alabama, decided to locate in Fort to increase its workforce by 8.5 percent. In Deposit in Lowndes County, which has one January 2002 the company had about 65 of the highest poverty rates in the Nation. full-time employees and as many as 35 part- time employees. Collectively these plants will invest about $100 million in buildings and equipment “Approximately 90 percent of the company’s and employ approximately 960 people. The employees live in the Renewal Community companies will save thousands of dollars and the RC wage credit is a major benefit to through wage credits, worth up to $1,500 the company,” said a TekPac manager. The annually for each RC resident a business in company will be able to save more than the designated area employs. $50,000 each year through the RC wage credit alone, the manager predicted. Construction at these three facilities began Businesses in the RC can earn up to $1,500 a in 2003. Each manufacturer is eager to take year in wage credits for each employee resid­ full advantage of the CRD, a tax incentive ing in the RC. The RC program has not only worth $12 million yearly to each RC. stabilized TekPac’s workforce at the Marion Businesses within the RC may depreciate location but also expanded employment as much as $10 million in construction or opportunities for area residents. rehabilitation costs over 10 years instead of the standard 39 years. For more information on the programs of the Southern Alabama RC, contact David For more information on the programs of Barley II of the Alabama Department of the Southern Alabama RC, contact David Economic and Community Affairs at Barley II of the Alabama Department of (334) 242–5823. Economic and Community Affairs at (334) 242–5823. RC Designation Helps Tax Incentives Encourage Hospital Expand in Rural Manufacturer To Alabama Consolidate Operations Southern Alabama, RC Southern Alabama, RC RC tax savings are improving the financial health of Georgiana Regional Hospital and its With a plant in Marion, Alabama, and anoth­ services to low-income rural communities. er in Knoxville, Tennessee, TekPac was look­ Located in the Southern Alabama RC, the ing to improve company efficiency. When hospital serves three counties inside and HUD designated the Southern Alabama RC three counties outside the RC. Medical serv­ in January 2002, TekPac jumped at the ices are spread thinly throughout the area, chance to consolidate its operations and take advantage of the tax savings.

22 Spotlight on Results SECTION 1

because several counties do not have the Economic Development Department is send­ population or finances to support a hospital. ing to businesses in the 3-year-old Tacoma, Washington, RC. According to Hospital Administrator Harry Cole, prior to the area’s being designated as The Loft, a dance club on South 21st Street an RC, “We wanted to build a daycare center and Pacific Avenue, has gotten the message for our employees but could not justify it loud and clear and is taking advantage of because the revenue stream would not sup­ the RC wage credit. “It’s made a big differ­ port it. However, through a combination of ence for us.... You take it right off the bot­ RC wage tax credits and the community revi­ tom line,” said Jordan Snyder, The Loft’s talization deduction’s accelerated deprecia­ general manager. “It’s a no-brainer.” Because tion provisions, it is now financially feasible 9 of its 30 workers live within the RC’s for the hospital to proceed with the capital boundaries, the club saved $13,500 in taxes. investment to build the daycare center.” In That is a $1,500 tax credit per employee, the 2003, as a result of tax savings from different maximum allowed each year. RC tax incentives, the hospital was able to begin constructing a daycare center that will Shari Hart, who coordinates the RC program, accommodate 30 to 40 children. makes frequent pitches to the Downtown Merchants Group and others interested in In 2002 the Georgiana Hospital had learning about the variety of tax breaks and approximately 105 full- and part-time development opportunities available in the employees, approximately 50 percent of RC. As she promotes the RC, Hart reminds whom live in the RC. According to Cole, business owners to use HUD’s address locator “This resulted in an annual after-tax wage at www.hud.gov/crlocator to determine savings of $50,000 to $60,000 annually, whether their business is located and the thanks to the Renewal Community pro- employees reside in the Tacoma RC. gram’s wage tax credit provisions.” The hospital is now planning an additional capi­ Tacoma is the only place on the Puget tal investment within the next 2 years. Sound—and one of only 28 urban communi­ ties around the country—to receive a HUD For more information on the programs of RC designation in 2002. The Tacoma RC the Southern Alabama RC, contact David covers most of the downtown core, the port Barley II of the Alabama Department of area, upper Tacoma, and a portion of the Economic and Community Affairs at city’s east side. The RC replaces Tacoma’s for­ (334) 242–5823. mer Enterprise Community designation and is slated to last through December 2009. Tacoma Dance Club Bops In addition to the wage credit, Tacoma busi­ nesses can take advantage of the RC designa­ to the Beat of RC Tax tion through CRD, increased IRS Section 179 Savings deductions, and zero-percent capital gains rates when they sell qualified property. Tacoma, Washington, RC For more information on the programs of the No, it is not a gimmick or an infomercial.... Tacoma RC, contact Shari Hart at (253) There really is money out there waiting to be 591–5208. claimed by local merchants in the form of tax credits. That is the message the Tacoma

EZ and RC Tax Incentives 23 SECTION 1

Businesses Empower City leaders hope to see the EZ expand its reach into the community. “The primary tool Employees by Sharing EZ of the Empowerment Zone is Federal tax and Wage Credit Proceeds financing incentives, but the Empowerment Zone concept is much more,” said Assistant Tucson, Arizona, EZ City Manager Karen Thoreson. “It lays out a Matt Noble, owner of Fraternity Management strategic vision addressing the workforce, Group (FMG) in Tucson, Arizona, understands economic, and community development that a key to profitability is a positive needs of Tucson, and it does this by support­ employee attitude. That is why, Noble said, ing vital revitalization projects, by helping “I’m always looking for ways to help my individuals find jobs, and by instilling a sense employees succeed on the job and in life.” of civic pride.” EZ tax incentives have given Noble both the When Fiore Iannacone, who has owned the opportunity to support his employees and to Italian Kitchen restaurant in downtown Tucson reduce his Federal tax burden. for 20 years, found out about the EZ, he filed Noble offered to split his EZ employment an amendment to his 2002 tax returns and credit proceeds with any employee willing received $2,100 back because of the pro­ to move into the Tucson EZ. Anthony Marks gram. Iannocone used the additional money took Noble up on his offer and used his to invest in a new downtown restaurant, the share of FMG’s savings from the EZ credit to Enoteca Pizzeria and Wine Bar, which opened help purchase a house near downtown. “I’m in January 2004. “Because this program has thankful that Matt and the Empowerment been so beneficial to me, I have hired more Zone helped me find a better place to live employees from the Empowerment Zone and and gave me a jump in building a better hope to be a part of downtown for a long life,” Marks said. time to come,” he said.

“This designation placed our community For more information on the programs of among an elite group of cities and created the Tucson EZ, contact Larry Cummings at powerful tax incentives for small business (520) 791–5093. owners,” said Tucson Mayor Robert Walkup. What makes the EZ so effective, said Walkup, is the way in which businesses are using the Putting Earned Income program to support their employees. “The Tax Credits Back Into the credit’s design and the city’s marketing strat­ Pockets of EZ Residents egy emphasize reinvestment in our future,” Walkup said. “They are an important part of Yonkers, New York, EZ building an effective workforce.” Promoting EZ incentives for businesses and A-1 Mattress, a small five-person shop in helping residents access earned income tax South Tucson, is eligible for a $3,000 EZ credits (EITCs) are major Yonkers EZ initia­ employment credit for each of the three tives. Partnerships have played a key role in employees who live in the zone. Owner the program’s success: the Yonkers EZ staff Bobby Biodo is using the $9,000 credit he has been working with many local and receives every year to purchase health insur­ national partners, including HUD’s Office ance for all of his workers. of Economic Development, to promote tax

24 Spotlight on Results SECTION 1

incentives in the EZ and maximize the injec­ To publicize the widely underutilized EITC, tion of funds into the local economy. the VITA site informs eligible EITC recipients of the credit and completes tax returns for Since receiving its Round III EZ designation free. Filers can elect to file their returns elec­ in January 2002, Yonkers has been holding tronically and to have their refunds deposited monthly seminars for local EZ businesses and directly into their bank accounts. EITC can residents to maximize the impact of tax ben­ refund up to approximately $4,300 for eligi­ efits in the EZ. The one-hour sessions, cohost- ble filers and provides additional income for ed by local banks and businesses, provide low-income workers. technical overviews of EZ tax benefits while also stressing the program’s simplicity. VITA is a collaboration of several organiza­ tions. A generous grant from JP Morgan By spring 2004 more than 1,000 people had Chase funded the purchase of six computers attended 50 seminars. According to an EZ on which VITA volunteers complete the tax staff survey of seminar attendees, the city’s returns. Verizon Wireless has agreed to make EZ companies had accessed more than $1.5 cell phones available for calls to the IRS, and million in Federal EZ wage tax credits. the Yonkers Riverfront Public Library dedicates The seminars also provide opportunities for two rooms for the entire tax preparation EZ staff to develop relationships with the season. business community and establish a level In 2004 the VITA assisted more than 800 tax­ of communication that otherwise might not payers who received $400,000 in EITCs. With exist. The EZ staff provides information about the help of VITA volunteers, more Yonkers EZ incentives, as well as incentives available residents were able to claim tax credits that through other Federal, State, and municipal put more money into their pockets and stim­ programs. ulated the local economy.

An EITC campaign, developed by Yonkers city For more information on the Yonkers EZ pro­ and EZ staff, helps EZ residents access EITCs grams, contact EZ Manager Lola Vataj at and maximize their tax refunds. IRS-trained (914) 377–6135. volunteers provide free tax-preparation serv­ ices at the new Yonkers Riverfront Public Library at One Larkin Center in Yonkers. The Volunteer Income Taxpayers Assistance (VITA) program receives generous support from Yonkers Mayor Philip A. Amicone’s Office, JP Morgan Chase, and Verizon Wireless.

EZ and RC Tax Incentives 25 SECTION 1

the designated areas. The average value of investment among businesses that used Deductions this incentive was more than $90,000. Each year from 2003 through 2009 each Among EZ business owners that claimed RC has the authority, through commercial this deduction, 16 percent reported that revitalization deductions (CRDs), to make the availability of this deduction was $12 million in accelerated deduction alloca­ important in their investment decision. tions to businesses that build or substantial­ They agreed that without this provision it ly rehabilitate commercial property in RCs. was “very unlikely” or “somewhat unlikely” Since there are 40 RCs, this incentive is that they would have made the investment worth almost $4 billion in accelerated that was expensed. deductions to businesses in these areas during the 8-year RC program. If you would like additional information on any of the success stories on tax deductions Businesses in the RCs have taken many dif­ in this section, please consider calling the RC ferent levels of CRD allocations to save mil­ or EZ directly using the contact information lions of dollars. If a business receives a $1 that appears at the end of every story. In million CRD allocation, for example, it can addition, to determine if a business is deduct this amount in expenses over just located in one of the RC/EZs and may be 10 years, or $100,000 each year. Normally eligible for tax deductions, please visit businesses must take such deductions over HUD’s RC/EZ Address Locator at 39 years, or just $25,000 per year in this www.hud.gov/crlocator. example. The CRD has a second deduction option. CRD Helps Burlington The business can deduct one-half of the $1 million in the first year, or $500,000. The Reclaim Its Historic business would then deduct the remaining Waterfront $500,000 evenly over the next 38 years.

In 2002 and 2003 RCs nationwide made Burlington, Vermont, RC CRD allocations of more than $475 million “Without the commercial revitalization to local businesses. deduction [CRD] tax allocation, the public amenities of this project would have dragged The Increased IRS Section 179 Deduction is down the project financially,” commented an incentive available to employers in RCs Melinda Moulton of the Main Street Landing and EZs that do a substantial portion of Company, developer for the Lake and College their business in the designated areas. Street Redevelopment Project in Burlington, Expensing or accelerated depreciation Vermont. increases the deductions a business can claim when calculating its taxable income. “With the CRD, we are able to provide a Generally a business has to depreciate its wonderful community resource with enor­ equipment and buildings over the econom­ mous cultural amenities, public promenades, ic life of the equipment or building. This 18,000 square feet of additional park space, incentive permits a business to deduct an and public linkages from downtown to the extra $35,000 in equipment costs in the city’s waterfront, and create a financially year of purchase. This is another incentive viable commercial project,” said Moulton. that has influenced investment decisions in

26 Spotlight on Results SECTION 1

A 2003 CRD, awarded through the Redevelopment of Burlington RC, provided $10 million of an estimated $12 million in costs for the Lake Historic Building Rises and College Street Redevelopment Project. to New Levels Once the region’s lively, bustling center of Burlington, Vermont, RC transportation and manufacturing activity, Burlington’s waterfront on Lake Champlain Despite its location in Burlington’s thriving played a major role in the early history of the downtown Church Street Marketplace, only city. Later, as highways came to dominate part of the Nelson Block had shared in the commerce and transportation, more than area’s economic renewal. Although the 100 acres of Burlington’s urban waterfront ground f loor of this 1864 vintage building lands were left neglected, scarred with rem­ was rented to retail tenants, the upper nants of past industrial uses such as junk­ f loors had long been vacant. The second yards, auto body shops, coal plants, and oil f loor had not been occupied for two storage terminals. A large lumber mill at the decades, the third f loor not since 1932. corner of Lake and College burned in the Each of the abandoned upper f loors con­ 1920s. tained a potential 4,400 square feet of f loor The 113,000-square-foot Lake and College space in a viable commercial location. Yet Street Redevelopment Project includes a movie much of the space was inaccessible or not in theater, a restaurant, office and retail space, compliance with building codes. Under ordi­ sculpture gardens, a 56-car underground nary modes of financing, the costs of making parking garage, and public promenades the upper f loors usable would have been and terraces. A series of pedestrian-friendly overwhelming. businesses and shops staggered along Lake In 2003 a $144,000 CRD allocation through Street’s edge will provide a mix of small retail the Burlington RC, along with other financial spaces housing locally owned businesses, resources, helped remedy the situation. The shops, and artist studios. The project will link Nelson Block Redevelopment Project—Church to the Battery Park Extension to the west via Street Marketplace took place in two phases. a central overlook, stair, and elevator system. Phase I included critically important infra­ The steep embankment will be terraced, cre­ structure improvements to the building, ating about 18,000 square feet of new city especially to the roof, support beams, and park space. The project broke ground on drain system. Reinforcement of the f loors July 1, 2003. with metal beams to meet code requirements The project is estimated to employ 500 peo­ for f loor loadings—an exceptional expense— ple during construction, creating about 250 occurred during Phase II. permanent jobs. The project owners and Redevelopment of the Nelson Block helped employers will also be able to take advantage enhance the vitality of Burlington’s down­ of RC wage credits worth up to $1,500 yearly town. Opening the building’s neglected for each person they employ that resides in upper f loors to commercial use helped make the RC. up for the lack of vacant, developable land at For more information on the programs of the Church Street Marketplace. The upper- the Burlington RC, please contact Bruce f loor redevelopment strategy also fights Seifer of the city of Burlington at (802) urban sprawl and preserves the city’s historic 865–7144. and architectural heritage.

EZ and RC Tax Incentives 27 SECTION 1

For more information on the programs of and special event planners, and downtown the Burlington RC, please contact Bruce residents,” said Manny Gonzales. Seifer of the city of Burlington at (802) 865–7144. “Because of the RC tax incentives, we can put more Renewal Community residents to work,” said Gonzales, who plans to employ five RC- Tax Incentives Make based employees by 2004. The business will be able to claim yearly RC wage tax credits Florist Bloom worth as much as $1,500 for each employee. The RC tax incentives enable the Gonzaleses to Charleston, South Carolina, RC pay competitive wages and provide generous Is the RC a good place to launch a success­ benefits packages. ful business? Ask Manny and Clara Gon­ zales, owners of Tiger Lily Florist in the “What makes this project unique is that Tiger Charleston RC. Lily is a community-based small business that has embodied the true spirit and intent of Each year from 2000 to 2003, readers of the the RC tax incentives by hiring local RC resi­ Charleston City Paper voted Tiger Lily Florist dents while becoming a good neighbor the “Best Florist in Charleston.” The follow­ within this historic Charleston neighbor­ ing year, Tiger Lily was chosen Charleston’s hood,” said Anthony Moore, Sr., manager 2004 Small Business of the Year. of the Charleston RC.

The Tiger Lily site—an abandoned, 1930s-era For more information on the programs of gas station at Spring Street and Ashley the Charleston RC, please contact RC Avenue—had been vacant for 10 years, with Manager Anthony Moore, Sr., at environmental and soil contamination from (843) 720–3836. underground fuel tanks. Manny and Clara Gonzales were able to rehabilitate the prop­ erty while preserving its historic architecture, New Circle K Celebrates thanks to the help of the Charleston RC’s Tax Savings CRD and other tax incentives.

The $425,000 CRD allocation helped the Corpus Christi, Texas, RC Gonzaleses purchase and rehabilitate a The CRD, available to businesses in RCs, has neighborhood eyesore and provided a key created 14 jobs at a new Circle K conven­ spark to the redevelopment of the city’s ience store located in the Corpus Christi RC. Spring/Cannon Street corridor. The RC tax The new store celebrated its grand opening incentives were major determinants in their in May 2004. decision to purchase and renovate at this location, according to Manny Gonzales. The Corpus Christi RC provided SSP Partners, owners of the Circle K franchise, with the Tiger Lily Florist is a full-service shop that opportunity to receive a CRD allocation of prides itself in providing client satisfaction $850,000, which allows the business to rap­ through its innovative flower designs and idly accelerate the depreciation of the build­ some of the finest fresh flowers from around ing. CRD allocations are available to the world. “It is these qualities that have businesses in RCs that build or substantially helped us become the florist of choice for rehabilitate commercial properties. Business Charleston’s elite hotels, restaurants, wedding owners that receive CRD allocations can

28 Spotlight on Results SECTION 1

deduct their construction or rehabilitation With 50 businesses responding, results indi­ costs over 10 years instead of the normal 39, cated that businesses used the RC wage cred­ thus saving substantial amounts in taxes. it for a combined 636 employees. This incentive alone provided total tax credits of Corpus Christi Mayor Loyd Neal, who participat­ $745,306. The RC wage tax credit is worth ed in the grand opening event, says that SSP up to $1,500 each year to business owners Partners has been a leader in ongoing revitaliza­ for each person they employ who lives in an tion efforts in the RC and that the city of Corpus RC. This can be a substantial amount of Christi is proud to have been part of a project money to small business owners and can that turned what had been a vacant lot for 10 help them pay important bills or purchase years into a first-class convenience store. additional inventory.

The 14 new jobs created by construction of the The survey also showed that the Work store will generate an annual payroll of approx­ Opportunity Tax Credit (WOTC) provided imately $250,000. The 4,700-square-foot faci­ businesses with a combined $900,870 in lity includes 16 fueling stations and food credits on qualified first-year employees. This service from an onsite kitchen and from Laredo savings, especially when combined with the Taco Company. estimated $3,000 savings per business from According to Sam Susser, SSP Partners presi­ wage credits, equals approximately $6,600 in dent, the CRD allocation allowed the compa­ tax savings for each business in just 1 year. ny to expand its plans for the store. Susser Survey respondents indicated they received believes the new Circle K will help generate even more savings by claiming an Increased increased activity by both area residents and IRS Section 179 Deduction, another major RC tourists visiting the nearby convention center tax incentive. According to results, the busi­ and multipurpose arena and attending games nesses that claimed tax savings from this played by the Corpus Christi Hooks minor incentive reduced their taxes by an average league baseball team. of almost $30,000 (assuming that they fall in For more information on the Corpus Christi the 20-percent tax bracket). RC, contact Assistant City Manager Oscar EKRC businesses also saved substantial Martinez at (361) 880–3235, or amounts of money due to the CRD. EKRC [email protected]. made CRD allocations to seven businesses in Lee and Owsley Counties to construct new (Information in this story was derived from the buildings or substantially renovate existing Corpus Christi Caller-Times, May 8, 2004.) ones. In 2002 these businesses received CRD allocations totaling more than $1.4 million; the actual tax savings for these businesses Eastern Kentucky RC over a 10-year period will equal approximate­ Businesses Benefit From ly $287,000. Tax Incentives Businesses throughout the EKRC have experi­ enced substantial tax savings from the RC tax Eastern Kentucky, RC incentives. Land Farm Supply, located in Lee The EKRC surveyed businesses on their use and Owsley Counties, is a good example. of RC tax incentives on their 2002 Federal After filing 2002 Federal income taxes, owner income tax returns, and results showed that Jesse Land said, “This is the first time in a the tax credits and deductions have provided long time that we have not had to pay any significant benefits to the community.

EZ and RC Tax Incentives 29 SECTION 1

Federal income tax!” Prior to the RC designa­ CRD Provides Shot in tion, Land’s annual tax payment to the Federal Government averaged $4,500 per Arm for Rural Texas year; using only wage credits, Land lowered Businesses his 2002 Federal tax payment to zero. El Paso County, Texas, RC Luther and Rosemary Smith of Lee County are also excited about the benefits they As businesses in rural southeast El Paso received from the tax incentives. In 2002 the County begin to take advantage of the Smiths built two buildings in Beattyville for CRD available through the RC program, lease as office space. They received a CRD residents in turn begin to benefit from allocation of $629,466 to build the buildings expanded service availability and the and chose to deduct one-half of the expens­ potential for new jobs. es in the first year. The benefit was so great “This is the beginning of a shot in the arm they decided to build another building in for rural residents whose median family 2003, on which they received another income is less then $24,000 per year and $200,000 CRD allocation. Rosemary Smith who are dozens of miles from commercial says, “Tax-wise, this is a perfect time to build clusters in larger populated areas of El Paso commercial buildings.” County,” Precinct Commissioner Miguel The Smiths also own Jordan Drug Company Teran said. The commissioner, who repre­ with locations in Booneville, Beattyville, sents the area, has also been the driving Campton, and Jackson. Their company force behind the current development and claimed RC wage credits for several employees construction of the new Tornillo/Guadalupe who live in the RC and thus saved enough International Bridge and Port of Entry money to hire five more employees. between the United States and Mexico.

In March 2000 CJM Metal Fab, Inc. opened In each RC, businesses can take a combined in Hazard, Kentucky. CJM has continued to total of $12 million in CRD allocations grow each year with the support of local annually. Retail, service, and warehousing banks and nonprofit lenders, including the businesses in the El Paso County RC took a East Kentucky Corporation, the Kentucky total of $2.25 million in CRD allocations for River Area Development District, and the tax year 2003. A combined allocation of Mountain Association for Community $750,000 helped to develop a new movie Economic Development. On its 2002 Federal theater and an auto parts store in the town tax return, CJM expensed property, including of Fabens, and owners of a self-storage production equipment and vehicles, under facility took a CRD allocation of $1.5 million the Increased IRS Section 179 Deduction to dramatically reduce their final cost. provision. In 2003 CJM employed as many Businesses that construct or rehabilitate as 40 individuals and the company plans to commercial properties in an RC can use take full advantage of the available RC these allocations to deduct costs evenly wage credits. over just 10 years instead of the normal 39 thus saving the businesses thousands For more information on the EKRC, contact of dollars in taxes. EKRC State and OCAT Director Susan Wilder at (606) 593–7296. The El Paso County RC has a population of approximately 56,500 people concentrated in

30 Spotlight on Results SECTION 1

small clusters within a sparsely populated For more information on the Greene-Sumter 217-square-mile area. The area north of RC and its programs, contact RC Executive Interstate 10 is uninhabited desert, and the Director Donald Means at (205) 652–7408, area between Interstate 10 and the Rio or e-mail [email protected]. Grande River is agricultural farmland with communities ranging in population from 1,500 to 20,000 people. New Manufacturer

For more information on the El Paso County Touts RC Benefits RC, contact (915) 834–8201. Jamestown, New York, RC Jamestown’s RC tax incentives are attracting Facilities Upgrade new businesses, including International Promotes Growth Ordnance Technologies, Inc., a new minority- owned business that will create new jobs in Rural Alabama with good wages for RC residents. Located in a formerly vacant 4,000-square-foot Greene-Sumter County, building within the RC, the new company Alabama, RC manufactures small and medium caliber Although one of the busiest exits off ammunition cartridge links for domestic Interstate 20/59 can be found in Alabama’s and international sale. Greene-Sumter County RC, problems with “We are excited at the prospect of locating the local sewage system deterred area busi­ within the Jamestown Renewal Community,” ness expansion until the RC provided match­ said International Ordnance President Tammy ing funds that leveraged $669,000 and H. Snyder. “The cooperation and support helped the Greene County Commission that we have received from everyone in­ rebuild the sewage system. This upgrade not volved in bringing this venture to Jamestown only saved 114 local jobs, it also created the has been great. We did look at other loca­ opportunity for a major gaming industry tions in New York and Pennsylvania. expansion that added 200 new ones. However, the Harrison Street site is ideal In an area that suffers from a 12-percent because it is located in the Jamestown unemployment rate, the new jobs have Renewal Community and in a New York made a tremendous impact; they could State Empire Zone. The opportunity to access mean an annual difference to the local both Federal and State tax incentives was an economy of up to $10 million. Greene- important part of our site selection.” Sumter’s RC designation also allowed the Planning to employ 150 RC residents in project owners to take a $500,000 CRD new manufacturing jobs by its third year of against the cost of rehabilitating the operations, International Ordnance is work­ sewage system. The owners thus can ing closely with the local workforce invest­ deduct the $500,000 in expenses evenly ment board to select and prescreen over just 10 years instead of the normal 39 prospective employees. Another company years for projects not located in an RC, sav­ goal is to have 35 percent of its workforce ing them thousands of dollars in taxes. live in the RC to qualify for the zero-percent Because of the sewage system renovation, capital gains rate and Increased IRS Section several other businesses are now consider­ ing locating near the exit.

EZ and RC Tax Incentives 31 SECTION 1

179 Deductions—benefits available to qual­ bonanza for City Fare owner Terry ified RC businesses. McIlhargey, who converted a vacant manu­ facturing plant into a successful food prepa­ In February 2004 Snyder attended an RC ration and delivery service. symposium in Schenectady, New York, which brought together local leaders, members of “The tax credit allowed us to absorb the Congress, RC staff, and businesses from the unforeseen expenses that come with expan­ State’s five RCs to discuss the valuable tax sion,” said McIlhargey. “By reinvesting those incentives that are available. Snyder dis­ tax dollars in our business, we were able to cussed the positive impact the RC tax bene­ make our transition smoother by hiring more fits have had on her company in Jamestown staff and buying equipment.” and urged ongoing cooperative partnerships to continue to attract and retain businesses To obtain CRD allocations, businesses must and manufacturers in New York’s RCs. go through an application process developed by each RC in association with their State Looking forward to a committed presence in governments. In Los Angeles, the city’s com­ the Jamestown RC, International Ordnance munity development department handles recently received a major order from General these applications, forwarding them with Dynamics. recommendations to the California Tax Credit Allocation Committee for final For additional information on Jamestown RC approval. CRD rules allow the deduction of programs, contact Director of Development up to 50 percent of qualified expenses in a Steven Centi, Greater Jamestown Zone year, or 100 percent of qualified expenses Capital Corporation, at (716) 483–7667. over 10 years. By contrast, normal deprecia­ tion is taken over 39 years.

Commercial “The CRD is fast becoming one of our most Revitalization Deduction valued and versatile business attraction tools. Developers large and small are becoming Recipe for Catering aware of it and are seeking us out. We have Company Success millions of dollars in pending projects lined up to utilize the CRD,” according to Jasper Los Angeles, California, RC Williams, director of the city’s Industrial and Commercial Development Division. When downtown Los Angeles businesses want to lay out a boardroom spread for The employment credit—another RC tax clients or staff, they often turn to City Fare, break available to McIlhargey—is based on Inc. This growing corporate catering firm is where his 20 employees live. His business located on the edge of the booming busi­ can get up to $1,500 in employment tax ness district, which is part of the Los Angeles credits annually for each of his three RC. That means City Fare enjoys Federal tax employees who also live in the RC. breaks and incentives. Businesses in the RCs can also receive $2,400 in Work Opportunity Tax Credits In 2002 City Fare received a CRD allocation by hiring 18- to 24-year-old RC residents. worth $207,000—a tax break available only Qualified RC businesses are also eligible for in designated RCs. Businesses can use CRD zero-percent capital gains provisions and allocations to help lower their costs to con­ Increased IRS Section 179 Deductions. struct or substantially renovate commercial buildings in RCs. The CRD has been a

32 Spotlight on Results SECTION 1

The financial incentives for companies that The location of the complex within Lowell’s locate in RCs are enormous, but equally RC and the availability of the RC’s CRD tax important are the benefits for surrounding incentive helped launch the subsequent neighborhoods. When a business renovates phase in the renewal project: the rehabilita­ abandoned or underutilized structures, it tion of approximately 14,000 square feet of eliminates blight and improves living stan­ long-vacant space within one of the mills to dards in inner-city neighborhoods. Job cre­ accommodate the growth of one of the com- ation for RC residents also revitalizes plex’s anchor tenants. “The CRD helped one communities. City Fare, Inc., has managed to of our most critical mill complexes move for­ accomplish all of its goals while the neigh­ ward,” says Lowell’s former director of eco­ borhood has benefited as well. This is a win- nomic development, Colin McNiece. “We’re win recipe that makes City Fare, Inc., and the looking forward to the next phase and have RC so popular. already begun talking with the owner about another 80,000 square feet.” McIlhargey’s business is prospering. He has added new staff and is considering acquiring Since the creation of the Lowell National an adjacent building to develop as a confer­ Historic Park in 1978, which was established ence and hosting center. When those plans to preserve nationally significant historical come to fruition, he will, of course, apply for and cultural sites and structures in the city, another CRD. Lowell has gained a reputation both national­ ly and internationally as a model for historic For more information on the Los Angeles RC and economic revitalization. The adaptive programs, please contact RC Director Cliff reuse of this magnificent urban resource is an Weiss at (213) 485–6301. example of the spirit of cooperation and col­ laboration that exists in Lowell between the Adaptive Reuse of a public and the private sectors. Magnificent Urban For more information on Lowell’s RC Pro­ gram, please contact Director of Economic Resource Development Brian Conners at (978) 970–4276. Lowell, Massachusetts, RC The Boott Cotton Mills is one of the most his­ toric, architecturally significant mill yards in Memphis Businesses the United States. The 650,000-square-foot Succeed With Boott Cotton Mills was incorporated in 1835 as a textile manufacturing company and con­ RC Tax Credits and tinued operations until 1956. Although the Deductions original four mills, the company office, and a counting house survived in almost original Memphis, Tennessee, RC form, long-term neglect and community dis­ In 2002 Memphis received its RC designation investment took its toll and all the buildings and the accompanying millions in tax incen­ had fallen into disrepair. In 1989 the new tives for its local businesses. The city quickly owners started a historically sensitive rehabili­ committed the $12 million in 2002 CRD tation of two of the four mill buildings for use as office space.

EZ and RC Tax Incentives 33 SECTION 1

allocations from the State of Tennessee to employee—a savings he shares with his Memphis RC businesses: employees as salary bonuses. Another com­ pany, CCL Custom Manufacturing, employs ● Tennessee Capital and Development, LLC, approximately 250 people, more than 60 of received a $4.2 million CRD allocation to whom live in the Memphis RC. As a result, the develop a retail center that would create company claimed RC employment credits of approximately 150 new jobs paying more than $100,000 in 2002. $13.75 per hour. The Memphis RC is home to approximately ● First Alliance Bank won a $1.4 million CRD 112,500 residents and 4,500 businesses. In allocation to build the first new bank partnership with the Memphis Regional branch to open downtown in nearly 25 Chamber of Commerce and the Memphis years. The bank will create six new jobs Light, Gas, and Water Division, the RC that pay $20 per hour. mailed invitations to each business and host­ In 2003 Memphis received and awarded an ed a full-day workshop about the tax incen­ additional $11.3 million in CRD allocations tives available to RC businesses. to the following RC initiatives: For more information about the Memphis ● A $4.8 million CRD allocation will help RC’s programs, contact Dottie Jones at renovate the historic Hunt Phelan Home— (901) 576–6565. the centerpiece of a $5.1 million mixed- use project housing a restaurant and bar on the first floor, bed and breakfast suites Private Partners Help on the second floor, a separate ballroom Milwaukee RC Promote (with kitchen facilities) to seat up to 350 Tax Incentives people, a day spa, and commercial space.

● Another 2003 CRD allocation, valued at Milwaukee, Wisconsin, RC $3 million, went to the Uptown Center, Although incentives are powerful tools for a 14,000-square-foot, mixed-use project redevelopment, they are useful only when that will include BP, Baskin Robbins, and businesses and residents know they exist and Subway as tenants. This site is near the understand how they work. Through a public- new First Alliance Bank branch. private partnership, organizers in Milwaukee are conducting an aggressive outreach and The city of Memphis also developed a Web education campaign for businesses that has site (www.cityofmemphis.org/rc) to spurred development and promoted job cre­ promote and collect information on RC tax ation in the city’s RC. incentives. Businesses can download appli­ cations for the CRD allocation from this With 53 census tracts, more than 140,000 resi­ Web site and enter tax incentive data. dents, nearly 4,000 businesses, and acres of developable land, the Milwaukee RC has many In Memphis the RC employment credit is the advantages for local businesses in addition to most utilized tax incentive. TWJ Packaging tax incentives. But Milwaukee’s RC organizers Group, a recycler of industrial bulk containers, knew that to make the most of these saves up to $1,500 for each of its 8 to 10 resources, their campaign needed to target employees who live and work in the RC. not only businesses in the RC, but also busi­ The company president estimates that the nesses considering a location within the RC’s credit equals 50 to 75 cents per hour per boundaries, community-based organizations,

34 Spotlight on Results SECTION 1

workforce development organizations, available to business located in this targeted accountants, attorneys, and economic develop­ area. The best result is that we have been ment professionals. able to encourage the retention and cre­ ation of jobs as well as investment in To meet this challenge, Milwaukee’s depart­ Milwaukee’s distressed communities.” ment of city development created a public- private partnership for outreach and training. For more information about the Milwaukee Using Community Development Block Grant RC, please contact Economic Development funds, the city enlisted the Urban Economic Specialist David Latona, city of Milwaukee, Development Association of Wisconsin (UEDA) at (414) 286–5682. to lead the public information campaign. UEDA tapped into its strong network in the economic development community to spread Alabama Newspaper the word about the RC’s incentives, which Takes Maximum include tax credits for business owners who hire workers who live and work within the RC’s Commercial boundaries, accelerated depreciation for new Revitalization Deduction construction and property rehabilitation, and capital gains exclusions. UEDA also sought pri­ Mobile, Alabama, RC vate sponsors, such as Johnson Bank, to In June 2002 the Mobile Register completed increase funding and bring additional expertise construction of a new $75 million facility in to the outreach effort. the northeast end of downtown Mobile. This Since Milwaukee received its RC designation accomplishment provides a new workspace in 2002, RC organizers have had personal for hundreds of newspaper employees, and contact with 45 percent of the businesses in also stands as a testament to how govern­ the RC, held nearly 80 information sessions, ment and business can work together to had 100 one-on-one meetings, and met reclaim struggling downtown areas. with nearly 80 nonprofit and government The Mobile Register is one of many companies officials. RC organizers have also worked in to receive Federal tax breaks for locating or partnership with the IRS and the business expanding operations in the Mobile RC. After school at Marquette University to educate identifying a site within the RC boundaries, tax preparers and local real estate develop­ the Mobile Register applied for and received a ers about the incentives. These efforts have $10 million CRD allocation from the Mobile paid off. Since 2002 Milwaukee has made RC. The CRD allows the newspaper to deduct $24 million in CRD allocations to support $10 million in construction costs evenly over 24 redevelopment projects. Together, these 10 years instead of the usual 39 years, which projects have retained or attracted 550 jobs will save the newspaper thousands of dollars and have saved $535,000 annually for two in taxes. dozen local business owners. “These economic incentives are a big boost to “Milwaukee is proud to be one of only 40 our efforts to support Alabama businesses and communities in the country that received create jobs in areas of poverty and high the designation as a Renewal Community,” unemployment,” said Don Siegelman, then- says Mayor Tom Barrett. “Through our out­ governor of Alabama, in a statement released reach efforts, we have encouraged business­ by the Alabama Department of Economic and es of all sizes to take advantage of some Community Affairs. great incentives that are exclusively

EZ and RC Tax Incentives 35 SECTION 1

The new Mobile Register building and the incentives in presentations to major manu­ renovated GM&O railroad terminal anchor facturers and businesses throughout the more than 14 acres at the northeast end of country. These national marketing efforts Water Street, a formerly depressed part of have included large conferences as well as downtown Mobile. The area, once an eye­ private meetings. sore, now features lush green landscaping and beautiful buildings that offer passing The city of New Orleans has also contributed motorists and local residents a glimpse of to the RC awareness campaign. To promote Mobile’s past and future. the broader use of RC tax incentives, the New Orleans Finance Department has offered The new facility is a big hit with both an amnesty program for businesses operating employees and local residents. In fact, at the without appropriate occupational licenses. facility’s grand opening on July 4th, 2002, The city will help these businesses obtain which also marked the city of Mobile’s tricen­ their licenses and will not penalize them for tennial, more than 8,000 people toured the being unlicensed. City officials hope that this new Mobile Register buildings. effort will increase the number of businesses able to take advantage of the tax incentives. For more information on the programs of the Mobile RC, please contact Diane Burnett The Carrollton Shopping Center has been a of the South Alabama Regional Planning major beneficiary of RC tax incentives. The Commission at (251) 433–6541. owners of the shopping center received a CRD allocation in 2003, allowing them to deduct $5.7 million in construction costs over just 10 RC Designation Sparks years instead of the normal 39 years and save Development and thousands of dollars in taxes. The project cre­ ated 75 new jobs and the owners were able to Agency Coordination construct 7 new stores at the location. In addi­ in New Orleans tion, the shopping center is triggering new development: two other projects are under­ New Orleans, Louisiana, RC way nearby that will not only add businesses and jobs to the area, but also bring much- The New Orleans RC is more than just an needed services and opportunities to the area. incentive-based program for business devel­ opment. It is a valuable resource linking citi­ For more information on the New Orleans zens, entrepreneurs, and more than 600 area RC, contact Regional Director Rodney businesses with government and community- Littleton, New Orleans Mayor’s Office of based services that can reinvigorate neighbor­ Economic Development, at (504) 636–0343 hoods and provide job opportunities for or [email protected]. residents. Since receiving its RC designation in January Encouraging a Business 2002, the New Orleans RC has seen consis­ tent growth in both awareness of the RC To Stay—and Expand program and use of the tax incentives. New Orleans RC staff have used direct mailings Niagara Falls, New York, RC and monthly workshops to educate local ParMed Pharmaceuticals was considering relo­ businesses about the RC tax incentives. Local cating from its site in Niagara Falls until the economic development agencies have taken city stepped in and used tax credits and their show on the road, featuring the RC other incentives to convince ParMed not 36 Spotlight on Results SECTION 1

only to stay, but also to increase its opera­ Louisiana Manufacturing tion. At the time, ParMed employed 85 local employees and relocation would have been a Company Gets Big Boost significant loss to the local economy. From RC Incentives A 2-acre parcel of land adjacent to ParMed Ouachita Parish, Louisiana, RC had been declared a brownfields site. The parcel was a wasteland of construction and Garrett Manufacturing, LLC, operating under demolition debris and had historically been the trade name Luv-n-Care, is a locally owned used for industrial purposes. The owners, the manufacturing company most widely known Niagara Falls Urban Renewal Agency, remedi­ for producing baby products sold through ated the site through its Brownfield Develop­ Sam’s, Wal-Mart, and Disney stores, and ment Pilot Program and then sold it to exported internationally. ParMed. Since the parcel is located in a New The company received a $3,681,125 CRD allo­ York State Empire Zone, ParMed was able to cation in 2002 from the Ouachita Parish RC to access New York State tax credits and incen­ build a new 318,000-square-foot manufactur­ tives, including RC employment credits and ing facility to support the increasing domestic an RC CRD allocation. The cleanup and sale and international demand for its products. The of the parcel, along with the additional finan­ CRD, which allows Garrett to deduct construc­ cial benefits gave ParMed enough confidence tion costs in the amount of the CRD allocation to stay in Niagara Falls and to expand opera­ over just 10 years instead of the typical 39 tions. Robert Vaccaro, director of finance for years, amounts to huge annual savings for the ParMed, said, “We are happy to increase our company. operations in the city of Niagara Falls Renewal Community and benefit from RC Garrett was able to move its entire shipping incentives.” operations to the new facility. The centralized location has enabled the company to stream­ ParMed Pharmaceuticals is now constructing line the shipping process and improve inven­ a 20,000-square-foot warehouse on the tory control. The company was also able to remediated site at a cost of $1.5 million. So replace older equipment in the facility with far the expansion has created five new jobs. newer, safer, and more efficient equipment. Niagara Falls has benefited from the entire This increased capacity made it possible for process: a brownfield site has been remediat­ Luv-n-Care to bring in a substantial amount ed, existing jobs have been retained, and of new business in late 2003 and early 2004. new development has meant more jobs and an increased tax base. Luv-n-Care was able to hire 18 new employ­ ees, partly due to RC employment credits For more information on the programs of the and the increased cash flow from the CRD Niagara Falls RC, please contact Niagara Falls accelerated depreciation. Currently 55 per­ city Economic Development Specialist, Tom cent of its employees are RC residents. Tedesco, at (716) 286–8834 or visit the Company owner Joseph Hakim is pleased, city’s Web site at www.nfez.org. stating, “The combination of the job credits and the accelerated depreciation programs have positively impacted our business. The RC program will be a prominent part of our hiring decisions. This has been an opportun­ ity that has allowed everyone to win.”

EZ and RC Tax Incentives 37 SECTION 1

For more information on the programs of Lou Martinez, director of economic develop­ the Ouachita Parish RC, please contact RC ment and administrator of the city’s RC, stat­ Specialist Liz Pierre at (318) 387–0787. ed that the clinic is a key step in providing needed services to residents and attracting other companies to the area. A portion of Much-Needed Medical the clinic will be dedicated to medical Clinic Brings Care and research and Martinez believes that the clinic has become the catalyst for more biotech­ Jobs to Rural Area nology investment in Parlier. The city is plan­ ning for a 300-acre biotechnology park and Parlier, California, RC has letters of intent from six firms interested Residents of Parlier will soon have access to in relocating there. the kinds of basic medical care that most Americans take for granted. Residents cur­ For more information on the programs of rently have to travel to surrounding cities for the Parlier RC, please contact Director of basic services such as filling a prescription or Economic Development Lou Martinez at seeing a dentist. There is no specialty care (559) 646–3545. such as obstetrics, gynecology, neonatal care, neurology, or physical therapy. The Philadelphia Story: The city of Parlier has worked hard to Targeted Marketing change this. Parlier has an RC and the city has succeeded in attracting a full-service Works medical clinic to the city with the promise of RC benefits. The clinic will have an onsite Philadelphia, Pennsylvania, RC pharmacy and will offer an array of specialty During the last half of the 19th century and medical services, even for those unable to the first half of the 20th, Philadelphia was pay. The city has facilitated the purchase of a known as the “workshop of the world.” 3-acre site for the clinic and will expedite the Home to Baldwin Locomotive, Stetson Hats, permitting process for clinic construction. Disston Saws, and many other industrial The project breaks ground this summer. firms, Philadelphia truly was the industrial heartland of the country. Unfortunately, dur­ The cost of building a 35,000-square-foot ing the past 60 years, Philadelphia has suf­ facility with state-of-the-art medical equip­ fered a steady erosion of manufacturing jobs ment for each specialty is prohibitively expen­ and the shuttering of many of the factories sive. In this case, the availability of the RC that housed them. Commercial Revitalization Deduction benefits was a deciding factor in opening the clinic. The Philadelphia RC encompasses much of The clinic will employ 100 people and doc­ the old industrial heart of the city. The tors have already begun training 15 Parlier Philadelphia RC office recognized early that it residents for permanent employment. City needed to market benefits in key areas where Manager Al Puente said, “This is the way eco­ industry sectors still flourished or where new nomic development is supposed to occur. A sectors were rising from the ashes of the old. business is attracted to an area and trains Staff developed a targeted marketing strate­ area residents to work there.” gy that included Allegheny West and East Falls and large adjacent communities in

38 Spotlight on Results SECTION 1

North Philadelphia with still-viable commer­ For more information on the programs of the cial and industrial corridors. These two areas Philadelphia RC, please contact RC Senior also have potential resources that can lever­ Manager, Jim Flaherty at (215) 683–2126. age RC benefits: a large number of Keystone Opportunity Zones, which are free from most State and local taxes; active community- Rochester Projects based organizations; and municipal support. Moving Forward These additional resources greatly expand the financial and organizational tools that, when Rochester, New York, RC coupled with RC benefits, have made good Perseverance pays off. The city of Rochester deals better and marginal deals possible. had sent numerous mailings to a company Below are just a few of many Philadelphia RC called BSV Metal Finishers about the RC tax success stories. incentives available to the company. Then Sherman Properties/Mills II is engaged in a a city staffperson spoke to the owner long-term project to rehabilitate the former personally about RC benefits and showed Dobson Mills in East Falls into a 250,000- him how to check on his eligibility for RC square-foot mixed-use development. The wage credits using HUD’s Address Locator. Mills II received a $784,375 CRD allocation in The owner discovered that he was eligible to 2002. claim RC wage tax credits for 28 of his 32 employees. BSV is now taking full advantage Hackman Dental Labs is a cutting edge, full- of the benefits and appreciates the good service dental laboratory that needed to relo­ advice from the city. cate from downtown Philadelphia. The laboratory was courted intensely by office John Billone, Jr., runs Flower City Management, parks outside the city but eventually pur­ a family-owned company, and has more than chased a long vacant and dilapidated build­ 30 years of experience developing real estate in ing two blocks north from the Mills II. Rochester. With the help of a $5 million CRD Co-owner Bobbi Quinn said, “The CRD bene­ allocation in September 2003 and another allo­ fit allowed us to renovate the building, meet cation in 2004, the family is working on an our bottom line, and was the final piece of ambitious project: taking a rundown motor the puzzle for us.” Hackman Labs received a lodge at a prominent location in Rochester and CRD award of $214,500 and is on target to turning it into a showpiece building with hire three RC residents to fill out its expand­ 20,000 square feet of mixed-use commercial ing workforce. space and 18,000 feet of residential units. It is anticipated that the previously abandoned S. Zitner’s Co. makes a wide range of choco­ location will become a vibrant part of the com­ late candies. Chris Murphy, Zitner’s owner, munity. In addition to providing permanent hires mostly people who live near the plant jobs for some Rochester citizens, it will also cre­ and walk to work. Murphy states, “The RC ate temporary positions for about 250 local wage credit is perfect. We have many season­ construction workers. al workers, both men and women, and we’re able to claim a large number of them. Over Without the RC contribution, the Billone fam­ the past 2 years we’ve been able to claim ily was unlikely to have taken on this project. more than $100,000 in RC wage credits.” According to Flower City Management President John Billone Jr., “The RC benefit provided the thumbs-up answer our family

EZ and RC Tax Incentives 39 SECTION 1

needed to make the commitment to proceed The RC status has helped spur investment. with the project.” The renovation of the Pepitone building is a good example. This historically significant In another successful Rochester rehabilitation building in the downtown Gaslamp Quarter project, a Popeye’s Famous Fried Chicken was dilapidated and in need of extensive franchise in the RC was in need of extensive renovation in order to be used again. A rehabilitation and received a 2003 CRD $4.9 million CRD allocation resulted in a allocation of $237,691. The owner, beautifully rehabilitated structure in older Northeast Fast Foods, would probably not downtown San Diego that will create 100 have been able to afford the necessary work jobs, about 50 of which will go to RC resi­ without that assistance. dents. “This rehabilitation not only substan­ For more information on the programs of tially restores a historic building, it also adds the Rochester RC, please contact Fashun Ku critical housing, restaurant, and office spaces of the RC at (585) 428–6808. to a revitalizing downtown arena,” said Jim Schneider, spokesman for the project.

Another Gaslamp Quarter project got under­ Breathing New Life Into way with the help of a sizeable CRD alloca­ Old Neighborhoods tion. Borders Books and Music Store constructed a large store on a long-vacant San Diego, California, RC corner in the Gaslamp Quarter. The compa­ “It’s a huge success in our community,” said ny invested $7.8 million in the project, Karen Whitehead of Golden Hill when asked which created 350 full-time and part-time about a building in her community that was jobs, about 280 of which are for RC resi­ gutted and restored with the help of CRD dents. “I used to work in a fast food restau­ allocations. The building now houses rant without benefits. Now I work at Borders, Krakatoa, a trendy neighborhood coffee make more than minimum wage and have house. She continued by saying, “The health benefits for me and my family,” said Krakatoa Coffee House is the latest example of Betty Washington, a Borders Books and property owners making investments in their Music Store employee. properties here in Golden Hill to make the For more information on the programs of area more attractive and to create a more the San Diego RC, please contact RC family feeling in the neighborhood.” The Manager Ples Felix at (619) 533–5442. owner-developer of the property applied for and received a $113,700 CRD allocation for the coffeehouse, which helped create six Childcare and Chow Now, jobs, three of which are held by RC residents. Just Steps From Home In January 2002 HUD granted an RC desig­ nation to an area of San Diego that had San Francisco, California, RC been suffering from high poverty, unemploy­ Long underserved by retail and grocery ment, crime, and other problems. Businesses outlets, residents in San Francisco’s South in the San Diego RC are eligible to apply for of Market neighborhood now can purchase a share of $12 million in CRD allocations fresh meat and produce close to home. The each year through 2009. Harvest Urban Market & Childcare Center Project, at Eighth and Howard Streets, is a mixed-use development that includes

40 Spotlight on Results SECTION 1

affordable housing for 74 families and 88 The Harvest Urban Market plans to take individuals. advantage of the RC Commercial Revitaliza­ tion Deduction by depreciating its $1.2 mil­ The project is the result of a collaborative lion capital investment over 10 years instead effort between the Citizens Housing of the traditional 39 years. The market also Corporation and the Tenderloin Neighbor­ received $755,000 in bank financing and a hood Development Corporation. The two $150,000 loan from the Mayor’s office of groups secured a $4.6 million loan from the community development. San Francisco Redevelopment Agency (SFRA) to purchase the land. They then sold the land For more information on the programs of the to the SFRA. In order to retain air rights to the San Francisco RC, contact RC Program property, the two nonprofits took back loans Director Albert Lerma at (415) 252–3134. on the housing parcels from the SFRA and obtained private funding from Citibank for development of commercial space. The city of Tacoma RC Maximizes Use San Francisco kicked in an additional $22 mil­ of Commercial lion in loans and bond financing. Revitalization Deduction The two groups also worked closely with the Mayor’s office of housing to build the onsite Tacoma, Washington, RC childcare center and to identify local tenants Just a year into its RC designation, the for 6,000 square feet of commercial space. Tacoma, Washington, RC had received The 2,500-square-foot childcare facility serves requests for more than double the amount of both residents and community members. The tax relief available. Applications for CRD allo­ commercial space accommodates afterschool cations exceeded $26 million. This deduc­ programs, vocational training, educational tion, limited to a combined total of $12 workshops, computer labs, and other services. million each year for projects in the RC, saves The Harvest Urban Market is an 11,000- property owners thousands of dollars annu­ square-foot store that sits on the ground ally by allowing them to use a rapidly accel­ f loor of the affordable housing development. erated depreciation schedule. It owes its existence to the efforts of Urban Tacoma was the only community in Puget Solutions, a San Francisco-based neighbor­ Sound—and one of only 28 urban communi­ hood economic development organization; ties around the country—to receive a HUD Mayor Gavin Newsom; and the Mayor’s RC designation in 2002. The State of Office of Community Development. Washington, following the recommendation The store’s owner, Gilles Desaulniers, is excit­ of the Tacoma RC, awarded CRD allocations ed about bringing healthy food choices to to five firms: the neighborhood. In addition to fresh meat ● Albers Mill building (Albers Mill LLC), and produce, the market offers a variety of $3.9 million. healthy, prepared meals that can be eaten onsite. Desaulniers predicts that his store will ● Courtyard Marriott Hotel (Hollander create at least 45 jobs, many of which will be Investments, Tacoma Hospitality LLC), filled by RC residents. With a single RC $3.2 million. employment credit worth $1,500, he expects ● to claim thousands of dollars each year Rainier Pacific Bank Building (Rainier Pacific through 2009. Bank), $3.1 million.

EZ and RC Tax Incentives 41 SECTION 1

● Ted Brown Music Building (Broadway recruitment efforts in this tribal community. Center Investors LLC), $1.3 million. A critical component of the Turtle Mountain Chippewa Tribe’s overall economic develop­ ● Fraternity Hall (Roberson Building Co.), ment strategy, the RC designation has helped $0.5 million. expand the horizons of both local business Each of the projects will benefit from a owners and the tribal government. reduced Federal tax bill. The RC’s ability to Tribal member Ken Davis is aggressively pur­ provide financial relief early in a project, suing several potential ventures now that his when a large number of expenses are current business, LaDots Convenience Store, incurred, is a distinct advantage. Albers Mill is reaping the benefits of RC tax incentives. LLC, for example, will be able to deduct its In 2002 LaDots, Inc., received an $81,000 $3.9 million in construction costs evenly over CRD allocation, and in 2003 it claimed just 10 years instead of the normal 39 years. $48,000 in RC wage credits and $72,000 in This will yield thousands of dollars in annual Increased IRS Section 179 Deductions. tax savings for the company. “Because of the tax savings achieved In addition to the CRD allocation, a business through the RC designation, I was able to in the Tacoma RC can take advantage of RC give several employees raises and substan­ employment tax credits, Increased IRS Section tially improve their benefits packages,” said 179 Tax Deductions, and zero-percent capital Davis. In addition to helping his staff, Davis gains when it sells property after holding it for hopes to improve retail options for those at least 5 years. living on the reservation by constructing a The RC covers most of Tacoma’s downtown 10,000-square-foot building that will pro­ core, the port area, upper Tacoma, and a vide hardware services. Turtle Mountain portion of the city’s east side. The RC desig­ currently lacks a hardware store. nation replaces Tacoma’s former HUD The RC designation has motivated the Turtle Enterprise Community designation. Mountain Chippewa tribal government to For more information on the programs of identify and recruit new companies and the Tacoma RC, contact Shari Hart of the industries. Since January 2004 Turtle Tacoma Economic Development Department Mountain RC staff members have marketed at (253) 591–5208. the tax incentives aggressively to businesses. RC staffers also have attended trade fairs and business gatherings in Belcourt and Grand RC Tax Incentives Yield Forks, North Dakota, and in Las Vegas, Los Angeles, and Washington, D.C. The RC made Big Savings for Turtle more than 260 business contacts and several Mountain Businesses businesses are considering Turtle Mountain as a future site for investment. Turtle Mountain Band of For more information on the programs of Chippewa, RC the Turtle Mountain Band of Chippewa RC, Ten miles south of the Canadian border in contact Chief Executive Officer Lyman J. rural North Dakota, one of the newest RC des­ Bercier at (701) 477–2688. ignations is providing much-needed support to businesses and reinvigorating industrial

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RC Tax Incentives Boost the year the building is placed in service with the remaining amount depreciated Local Hunting Company over the standard 39 years or it may elect to deduct the full allocated amount over a West-Central Mississippi, RC 10-year period. Since receiving the alloca­ RC tax incentives have allowed one Mississippi tion, Primos has elected to receive its bene­ business to streamline its flow of operations fits over the next 10 years. and expand its employment base. Primos also has been able to avail itself of the Primos, Inc., is a small family-owned com­ wage credits that are offered through the RC pany located in the heart of the West- program. Wage credits allow businesses to Central Mississippi RC. The company was deduct up to $1,500 per year for each started by Will Primos in 1976 when he employee who lives and works in the RC. In started selling homemade hunting calls to 2002 Primos employed 157 employees. After local hunters. By 1979 Primos had to hire determining each employee’s physical several people to assist him in making the address using HUD’s address locator at calls to keep up with the national demand, www.hud.gov/crlocator, Primos learned and Primos Hunting Calls was born. that 90 of the company’s employees live in the RC. For each year of the RC designation Primos Hunting Calls has more than 150 through 2009, Primos will be eligible for a employees and manufactures around 300 wage tax credit up to $1,500 for each products, which include calls, videos, cloth­ employee who lives in the RC. ing, and accessories for hunting turkey, elk, waterfowl, deer, and predators. The compa­ The West-Central Mississippi RC includes por­ ny currently holds 14 patents and numer­ tions of 13 counties and 30 municipalities ous trademarks. located in central Mississippi, and Primos is only one of thousands of businesses in In 2002 Primos received a $2.5 million CRD Mississippi that has received immediate tax allocation for the construction of its new relief due to the benefits of the RC program. 54,000-square-foot facility in Flora, Missis­ sippi, thanks to the RC program. According For more information on the programs of the to Will Primos, the new facility has allowed West-Central Mississippi Rural RC, contact the company to streamline the flow of opera­ Bruce Reynolds of the Central Mississippi tions and expand its employment base. Planning and Development District at (601) 981–1511. The CRD allocation provides Primos the opportunity to greatly accelerate the rate at which the company depreciates the cost RC Tax Incentives Pay associated with constructing the new facili­ ty. Each State with an RC designation is Dividends for allowed to allocate $12 million in deduc­ Youngstown tions to businesses that construct new facilities or substantially rehabilitate existing Manufacturing Company facilities for each year of the RC designa­ tion. Once a business receives a CRD alloca­ Youngstown, Ohio, RC tion, it must decide how to deduct the Having expanded operations four times in the allocated amount based on two options. A 1990s, Fireline, Inc., was once again poised for business may choose to deduct half of the growth. Expansion, however, had strained the allocated amount for qualified expenses in company’s cash flow and jeopardized the firm’s

EZ and RC Tax Incentives 43 SECTION 1

ability to invest in a much-needed research and “The growth attained by Fireline is directly development program. Using tools available as attributed to our continual investment in a result of its RC designation, Youngstown, new products and new technology as well as Ohio, was able to help this progressive comp­ our dedication to quality and customer serv­ any move forward. ice, and our willingness to invest in process equipment,” said company founder Roger Fireline, Inc., manufactures high-performance Jones. “This help from the city gave us the ceramic shapes used in a variety of molten opportunity to invest in our future. We proj­ metal applications. It is the preeminent sup­ ect near-term, TCON product revenues of plier of melting liners and accessory shapes $l.5 million, creating l2 new jobs.” for the aerospace market of the investment casting industry. During the past decade, the In business for more than 37 years, Fireline company grew at an average annual rate of started in a garage shop with just 2 employ­ l0 percent. Such growth allowed it to ees. Today, the company boasts more than 70 expand its Andrews Avenue facility four dif­ employees with annual revenues approaching ferent times. Fireline’s growth, due largely to $9 million. “Fireline is a great example of a continuous efforts to improve product qua­ homegrown company that is respected lity, came at a time when the aerospace among its peers and also is an excellent cor­ industry was flagging. porate citizen,” said Dave Bozanich, city finance director, who worked with the com­ In an effort to invest in the future, Fireline pany during the expansion. turned its attention recently to a new and innovative product line. In 2002 it formed “As the now-defunct steel industry was the a wholly owned subsidiary to develop new bastion that allowed the city of Youngstown products and market them under the trade­ to rise to economic prominence at the turn mark TCON. The company has been work­ of the 20th century, companies like Fireline ing closely with the Engineering and are what will return a level of economic Technology Department of Youngstown vibrancy to the community now and for the State University and has two engineering future,” said Community Development students learning and working on the TCON Agency Director Jay Williams. “We hope project. to employ additional Renewal Community incentives to help us accomplish that.” A CRD allocation—worth nearly $800,000 over 10 years, as opposed to the standard For more information on the programs of 39 years—gave Fireline the cash flow neces­ the Youngstown RC, contact Jay Williams at sary to begin investing in a research and (330) 744–0854. development process and to design a pilot operation.

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information that appears at the end of each story. In addition, to determine if a business is Bond Financing located in one of the RC/EZs and may be eligi­ Tax-exempt bond financing is a tax incentive ble for tax-exempt bond financing, please visit that increases a business’ cash flow because it HUD’s RC/EZ Address Locator at allows businesses to receive low-interest loans. www.hud.gov/crlocator. A State or local government can issue a bond and sell it to investors. The State or local gov­ ernment then uses the money it receives from EZ Bonds Fund Major investors to make a loan to the business. Investors will accept a lower interest rate on Development Projects the bond from the State or local government in Boston because they do not have to pay income tax on the interest income. The lower interest rate Boston, Massachusetts, EZ is then passed along to the businesses. What do a Best Western Hotel, a Hampton Inn and Suites, a large seafood distributor, a Enterprise Zone facility bonds are issued in EZs third-generation produce wholesaler, and a to help fund development projects. EZs with a new 15,000-square-foot urban retail complex population of least 100,000 have access to as have in common? All have used bonds to much as $230 million in bonds, with a maxi­ strengthen enterprise and bring jobs to the mum of $130 million available for smaller EZs. city of Boston. Since 1995 State and local governments have issued more than 40 different series of tax- In just its first 3 years, the Boston EZ used its exempt bonds with an aggregate issue price of designation and financial savvy to obtain and approximately $450 million to benefit business­ award a combined $61.4 million in bond es operating in EZs and ECs and in the District financing. Boston’s EZ is a large (5.8 square of Columbia Enterprise Zone. miles) and diverse area, encompassing nearly 60,000 residents within the communities of Qualified zone academy bonds (QZABs) are Downtown, Seaport District, Chinatown, also available in EZs. Schools use these bonds Dorchester, Jamaica Plain, Mission Hill, to receive no-interest loans to make repairs, Roxbury, South Boston, and South End. purchase equipment, and support teacher training. State or local governments issue the In early 2001 the Best Western Roundhouse QZABs, which are held by banks that make Suites Hotel in Boston’s South End became loans to the schools. The banks receive tax the first hotel to open in a Northeastern EZ. credits from the Federal Government in lieu of Located in a long-vacant historic structure, interest. This program requires a contribution the hotel has been a catalyst for the revital­ from a business of at least 10 percent of the ization of this section of the EZ. The $10 mil­ value of the bond. Because QZABs are also lion Best Western utilized $8 million in EZ available in all areas in which at least 35 per­ bonds, providing approximately 24 full-time cent of students are eligible for free or jobs, most of which are held by city resi­ reduced-price lunches, most schools in RCs dents. Drawing many workers from the EZ are also eligible. itself, Best Western was able to claim approxi­ mately $20,000 in EZ Employment Wage If you would like additional information on any Credits in 2001. of the success stories on tax-exempt bond financing in this section, please consider calling The $140-million Crosstown Center, a retail, the RC or EZ directly using the contact office, and hotel complex located at a central

EZ and RC Tax Incentives 45 SECTION 1

intersection in the Roxbury neighborhood, For more information on the programs of received $43.42 million in EZ bonds in 2002. the Boston EZ, please call Shirley Carrington, These funds support Phase I, including a Boston Connects, Inc., which administers the 190-room Hampton Inn and Suites, more Boston EZ, at (617) 541–2670, or visit the than 15,000 square feet of ground-level EZ’s Web site at www.bostonez.org. retail space, and a parking structure. Phase II includes offices and additional parking. When complete, the Crosstown Center will EZ Bonds Help Chicago anchor as many as 1,500 permanent jobs. It West Side Plant Expand is expected that EZ residents will hold many of these jobs. Chicago, Illinois, EZ Pilot Seafood Distribution opened in the Gardner-Gibson Chicago, Inc., in Chicago’s Seaport District in April 2000. This 65,000- West Side EZ, is expanding with $6 million in square-foot seafood processing, packaging, EZ Facility Bonds. and distribution center helps to support Manufacturer of Roof Tite, Sta-Cool, Shur- Boston’s $650 million seafood industry. The Stik, Black Jack, and other roofing and project used $10 million in EZ bonds, all of paving products, Gardner was founded in which were guaranteed by the Common­ 1945 and has been operating in Chicago wealth of Massachusetts’ Port Authority. since 1981. Gardner is using the EZ Facility Using $2.8 million in EZ bonds, Katsiroubas Bonds, authorized in 2002, to acquire adja­ Brothers, a third-generation Boston pro­ cent land, expand and renovate its existing duce wholesaler, renovated the company’s plant, and purchase new equipment. 10,550-square-foot building to meet Gardner’s Chicago plant formerly Federal Hazard Analysis and Critical Control employed 29 workers full-time. With the Point (HACPP) regulations regarding food expansion, the company hired 17 new processing and handling. The work includ­ workers as of mid-2004, all residents of ed adding 16,800 square feet and 7 new the Chicago EZ, and expects to add loading docks, combining facilities, another 17 workers by mid-2005. Hourly installing additional freezer space, and cre­ positions such as office, clerical workers, ating a value-added preparation area. operators, and laborers have a starting Thanks to the upgraded facilities, the com­ salary range of $7.50 to $11.00 per hour. pany has been able to recapture sales to Salaried positions such as managers start hotels and achieve the best HACCP and at $35,000 per year. USDA ratings possible. Started in 1916, Katsiroubas Brothers is one of the largest Gardner is one of the largest manufacturers produce companies in Boston with 27 of do-it-yourself products for homeowners trucks and more than $22 million in sales. and professional-grade roof and driveway More than 16 percent of the workforce products in the United States. Its distribution comes from work release and halfway network includes 17 manufacturing and house programs. warehousing facilities across the country, and it employs approximately 500 people. Collaboration with Boston’s Industrial Development Financing Authority helped facilitate these transactions.

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For more information on the programs of the Jersey EDA representatives then met with Chicago EZ, please contact Managing Deputy members of the local business community to Director Jarese Wilson at (312) 744–7870. make businesses aware of EZ facility bond financing, and CEZC agreed to provide compli­ ance training to interested businesses. CEZC EZ Bonds Ice also developed a compliance reporting agree­ Development in ment to be executed by CEZC and a borrower, which includes a requirement that the borrow­ Cumberland County er submit an annual reporting form.

Cumberland County, New Jersey, EZ Once this partnership was designed and in A Cumberland Empowerment Zone place, businesses could take advantage of the Corporation (CEZC) partnership with the bond program. Since that time, in addition New Jersey Economic Development Authority to the ice skating facility, two other business­ (EDA) has put development in the area on ice es have used these services to take advantage via a skating facility that increases recreation­ of the tax-exempt financing available in al opportunities in the area and indirectly the EZ. promotes additional development. One company, Cumberland TruStone LP, pro­ To facilitate issuing tax-exempt EZ facility duces aerated autoclaved concrete block and bonds, CEZC joined forces with New Jersey panels for use as building materials. Using $5.6 EDA, an active issuer of tax-exempt bonds for million in tax-exempt bond financing and a commercial and industrial projects over the $500,000 predevelopment loan from CEZC, course of several decades. The first tax- Cumberland TruStone is in the process of con­ exempt bond financing, for approximately structing a 50,000-square-foot manufacturing $4.2 million, closed in January 2002 and facility. Company President Steve Gervasio said, financed the construction of a skating facility “But for the predevelopment money that used for ice hockey, family outings, and other allowed us to put this project together and the recreational purposes. The ice rink will be a tax-exempt bonds that provided a startup prime location for hockey tournaments, and company with an instrument for long-term CEZC expects that nearby hotels and restau­ debt, we would not have been able to see this rants will indirectly benefit from the econom­ state-of-the-art project materialize.” ic development project. Garden State Bulb Company LLC imports This project had its roots in a memorandum flower bulbs from Holland for distribution to of understanding (MOU) signed by CEZC and customers throughout the United States and New Jersey EDA in July 2001. The MOU out­ Canada. The company used $2.4 million in lined the procedure for referral and approval of tax-exempt bonds to construct a new bond issuance and detailed both the services 80,000-square-foot facility on approximately that New Jersey EDA would perform in issuing 12 acres. It also is taking full advantage of EZ the bonds and that CEZC would provide in wage credits. Both businesses are located in monitoring compliance with the EZ business the Vineland developable site within the EZ. test, particularly with respect to meeting the EZ CEZC and the Cumberland County Office of Facility Bond requirement that 35 percent of Employment and Training (CCOET) are help­ employees reside in the EZ. New Jersey EDA ing these businesses meet their 35-percent and CEZC also agreed on how to share the resident employee requirement. CEZC has fees paid by the borrower to the EDA. New

EZ and RC Tax Incentives 47 SECTION 1

funded an initiative that expands the county ● Nineteen firms involved in construction, transportation system so that residents can janitorial, and other services have claimed get from the EZ census tracts to the EZ total D.C. Zone employment tax credits of developable sites, eliminating a barrier that $3.2 million since 1998. prevented employers from hiring EZ ● residents. A District manufacturer cut its Federal taxes by $390,000 and a hotel partnership The Cumberland County EZ, a multijurisdic­ claimed EZ wage credits of more than tional EZ, resulted from the combined efforts $1.5 million during the same 3-year period. of the Bridgeton, Millville, Vineland, and ● Commercial township governments. CEZC In 2001 one of the District’s largest hotel administers and works in partnership with operators reported D.C. Zone employ­ CCOET to develop the EZ. ment credits of more than $1.1 million on wages of $8.6 million, or an operating For more information on the Cumberland cost reduction of nearly 13 percent. County EZ, contact Executive Director ● Sandra Forosisky at (856) 459–1700. The District has issued more than $113 million in D.C. Zone facility bonds to attract and retain 12 District employers, Wage Credits, EZ Bonds including the International Spy Museum, Premium Distributors, CVS Pharmacy, the Capture Interest of DC Newseum, the National Association of Zone Businesses REALTORS®, and the United Planning Organization. District of Columbia, Enterprise The three success stories that follow illustrate Zone the value of the D.C. Zone tax incentives. In 1998 Congress authorized a special Enterprise Zone designation for the District of International Spy Museum Columbia to help spur capital investment in the The District is home to the world’s first Nation’s Capital. Since that time two incentives museum dedicated to espionage, and the have captured the interest of businesses: the International Spy Museum has been key to $3,000 employment tax credit and the authori­ revitalizing the historically rich F Street cor­ ty to issue Enterprise Zone facility bonds of up ridor. Because of its location in the to $15 million per project. How have these Enterprise Zone, the Malrite Company, the credits served the city? The numbers tell a pow­ project developer, financed the restaurant erful story. Survey results reveal that EZ incen­ and museum portions of the project with tives have helped thousands of large and small $15 million in tax-exempt Enterprise Zone employers including retailers; residential and facility bonds; the residential and office commercial developers; and owners and opera­ portions of the building were financed with tors of maintenance companies, hotels, and developer equity. Using bond proceeds as restaurants. Some examples follow: opposed to conventional financing saved ● An accounting firm with 15 midsize clients the Malrite Company an estimated $3 mil­ documented total D.C. Zone employment lion over the life of the bonds. tax credits of $1 million for tax years 1998 through 2001.

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14th and Irving Ventures SunTrust Bank. The building’s design elements, The District issued approximately $4.5 million while visually attractive and environmentally in tax-exempt Enterprise Zone facility bonds friendly, also comply with the new national to help finance new construction at 14th and Leadership in Energy and Environmental Irving Streets, NW., by 14th and Irving Design (LEED) standards adopted by the U.S. Ventures, LLC. Bond proceeds refinanced the building industry. LEED standards promote the existing mortgage loan on the facility and voluntary construction of high-performance, financed constructing and equipping a CVS sustainable buildings. Pharmacy on the first floor and other new The 12-story triangular-shaped structure commercial space on the second f loor. The includes 90,000 square feet of office and project also involved new construction at the retail space, a 66-car underground parking site, located in the Columbia Heights neigh­ garage, and a rooftop terrace with dramatic borhood on land acquired from the D.C. views of the U.S. Capitol. Redevelopment Land Agency. Construction at the two-story site started in July 1999 and In addition to the District’s proactive busi­ ended in July 2000. This project served as the ness climate, the success of the Enterprise pioneer development in the renaissance of this Zone is attributable to the use of HUD’s tax formerly riot-torn neighborhood. CVS and incentive marketing tools, especially the other major retail development will create sub­ Dun & Bradstreet CD–ROM. This CD con­ stantial employment opportunities for local tains spreadsheets with a wealth of infor­ residents. mation on every business located in the area, including number of employees, busi­ National Association of REALTORS® D.C. ness owner contact information, and year Headquarters of incorporation. The Enterprise Zone used The recently completed District headquarters this data to organize industry-specific of the National Association of REALTORS®, workshops and seminars targeted to busi­ located at 500 New Jersey Avenue, NW., has nesses that meet different industry profiles. been nominated for awards in four categories For more information on the District of by the District of Columbia Building Industry Columbia Enterprise Zone, contact Director Association. Located on the site of a former Michael Hodge at (202) 727–3770. gas station, this new state-of-the-art building features double-curtain glass walls that make thermal heat dissipation possible, a recyclable Making Facility Bonds and water system, and a photovoltaic solar array that produces voltage when exposed to radi­ Work Opportunity Tax ant energy on the roof. The U.S. Environmen­ Credits Work in the EZ tal Protection Agency declared the new structure one of the most environmentally Huntington, West green commercial buildings in the city and in Virginia/Ironton, Ohio, EZ the Nation. Spanning two states, the Huntington, West This $46 million project was financed with an Virginia/Ironton, Ohio, EZ has a unique chal- owner’s equity contribution of $15 million in lenge—dealing with two different State gov­ tax-exempt Enterprise Zone facility bonds and ernments to make EZ tax incentives work. $15 million in taxable bonds issued by the District of Columbia, both underwritten by

EZ and RC Tax Incentives 49 SECTION 1

From the beginning of its EZ designation, The customer service distribution operations the bi-state EZ governance board decided to of Amazon.com was attracted to the EZ use tax-exempt bonds to encourage revital­ because the area has a large college popula­ ization in the EZ. A company that had asked tion interested in working part-time. to meet with the board was expected to Therefore, the EZ staff focused on the mar­ request a sizable portion of the EZ’s total keting the WOTC that would be available if $130 million bond allocation. Because the company moves into the EZ and hires a Federal regulations do not establish limits substantial number of 18- to 24- year-olds. for issuing bonds to individual projects, the Huntington/Ironton EZ Governing Board As another incentive to this Internet compa­ adopted its own regulations: ny, the EZ provided a cash grant conditioned on the company’s meeting specified hiring ● Huntington and Ironton would have targets and paying wages at certain levels. separate bond issuing authorities, the The State of West Virginia funded a local uni­ Huntington Municipal Development versity to enhance its business program with Authority and the Lawrence Economic Web-based courses for its students. The com­ Development Corporation. pany helped design the course curriculum.

● The board would review applications For more information on these tax incentives for bond financing, and no bonds could and on the Huntington/Ironton EZ, call be issued without the prior approval of Executive Director Cathy Burns at (304) the board. 399–5454.

● No single project could receive a bond allocation of more than $25 million with­ EZ Bonds, Other out two-thirds approval from the board. Incentives Develop In January 2002 the EZ governance board Los Angeles EZ approved a resolution to issue nearly $10 million in tax-exempt bonds to help finance Los Angeles, California, EZ an urban town center—a mixed-use devel­ opment of integrated retail, entertainment, Tax-exempt facility bonds help EZ business­ office, and residential uses—that was easily es secure low-cost loans to finance prop­ accessible to Huntington and Ironton erty, buy equipment, and develop business residents. sites within the EZ. A $3-million, 25-year EZ Facility Bond awarded to AAA Packing & The town center developers met with the Shipping in 2000 enabled this Los Angeles governance board to discuss structuring the company to create 60 new jobs in the EZ. project to qualify as an EZ business with 35 The company manufactures wooden crates. percent of its employees living in the EZ. The “With our new facility, built with the aid of meeting also focused on attracting retailers EZ bonds, we have been able to expand that could utilize the EZ’s tax-exempt bond our business tremendously,” said AAA financing for leasehold improvements and President Julius Giannini. equipment. The governance board staff pro­ vided information on EZ wage credits, which Complementing the EZ facility bonds and would provide strong incentives to compa­ other Federal tax benefits, Los Angeles offers nies interested in leasing space in the town additional incentives that attract businesses center. to the city’s 19-square-mile EZ. Cliff Weiss, deputy director of the Industrial and

50 Spotlight on Results SECTION 1

Commercial Development Division, describes and manufacturing space; 60,000 square two key incentives: feet of service and convenience retail; a parking garage for 1,700 cars; and onsite ● The city reduces electricity rates for EZ parking for 850 cars. A 40-unit apartment businesses by 35 percent. “For a manufac­ community will provide a high-density res­ turer that uses a lot of electricity, that’s idential area within a commercial setting. obviously a huge benefit to their bottom line,” Weiss says. Poinciana Park’s master plan includes a bio- pharmaceutical facility, the new headquar­ ● “We also waive the city business tax for ters of MediVector Biopharmaceutical new businesses that move into the EZ or Centers, Inc. By locating in the EZ, this existing businesses that expand within the company facility will receive many tax ben­ zone. New businesses pay just $25 per efits while creating employment and train­ year for 5 years,” Weiss adds. ing opportunities and providing many Los Angeles also plans to market the EZ other benefits to the community: bonds more aggressively. “We have less than ● The Biopharmaceutical Career 7 years to use $230 million in EZ bonds, and Training Institute. The career institute it is money we want to get out on the will work with local colleges and universi­ street,” Weiss continued. “We are going to ties to develop courses that provide the be doing some major outreach efforts to technical skills residents will need to qualify market our EZ bond products. We have held for biopharmaceutical jobs. The institute several seminars for business owners and will teach researchers, technicians, and developers to market EZ bonds and our other medical personnel to research, develop, bond products.” and manufacture pharmaceuticals. Another For more information on EZ programs initiative will bring local college and uni­ in Los Angeles, contact Lupe Ortiz at versity students to Poinciana Park to (213) 485–8161. For more information on use the research and manufacturing facili­ the city’s EZ bonds, contact Clarence Espinosa ties and to receive training, including at (213) 485–2412. FDA-validated current Good Manufactur­ ing Practices. The Institute expects that many of these students will move into jobs Multimillion-Dollar Bond at MediVector’s EZ facility. Project Develops ● An outpatient clinic. MediVector hopes Industrial Park EZ to establish Clinics of Excellence that will provide the best available patient care, dis­ Miami-Dade, Florida, EZ ciplined patient followup, and the best available medicines for patients from the In 2004 the Miami-Dade Empowerment Trust, surrounding communities. which administers the Miami-Dade EZ, author­ ized issuing $60 million in EZ facility bonds to ● Poinciana Research Clinic. MediVector help develop Poinciana Park, an $111 million will also establish a state-of-the-art clinical multipurpose commercial and residential com­ research unit. This clinic will perform Phase munity. I and II studies to fulfill a growing need of large pharmaceutical companies to make According to project developer Town Center faster decisions, based on high-quality Properties, Poinciana Park will contain 600,000 square feet of office, industrial,

EZ and RC Tax Incentives 51 SECTION 1

data, about the economic potential of Achieving Challenge Grant during 1999 and new drugs. 2000. This created an important buy-in between the local business community and Designed to be a strong economic engine for the school district. the community, Poinciana Park will offer a unique combination of a suburban office/ Philadelphia had a second round of QZAB- industrial park in an urban community. The funded school improvements in process dur­ MediVector Biopharmaceutical Center alone is ing fall 2004. The $19,335,700 bond issue expected to create 1,500 jobs for EZ residents. will pay for two middle school conversions to According to a MediVector representative, “The high schools. [bond] financing facilitated by the Empower­ ment Trust is going to make it possible for us The QZAB program has proved a vital one to serve, and ultimately improve, the emerging for the Philadelphia School District and they South Florida pharmaceutical and biomedical believe that the program is a particularly market. In the long run we will be creating a important tool in EZ communities. In this technical, skilled workforce.” day of tight budgets, QZABs have provided this school district with another method to For more information on programs in the meet the educational needs of its diverse stu­ Miami-Dade EZ, call EZ Director Andre dent body. Wallace at (305) 372–7620. For more information on the programs of the Philadelphia EZ, please contact Eva Academy Bonds Gladstein at (215) 686–0457. Revitalize Schools in Philadelphia EZ EZ Bonds Help Camden Play Ball Philadelphia, Pennsylvania/ Camden, New Jersey, EZ Philadelphia, Pennsylvania/ The Philadelphia school system knows that Camden, New Jersey, EZ QZABs are effective in helping schools in EZs “It will be the Main Street of South Jersey— to raise cash for capital projects. In the place to go.” This forecast for the future November 2000 the Commonwealth of of the Camden Waterfront comes from Tom Pennsylvania approved issuing $22,985,000 Corcoran, head of Cooper’s Ferry Develop­ in QZABs to renovate several existing school ment Association (CFDA). CFDA is a Camden buildings and convert them as necessary for nonprofit development agency that—in the specific age ranges and abilities. About $2 words of the Courier Post—“has guided the million of that has been earmarked for the transformation of what was once a post­ purchase and installation of security equip­ industrial hodgepodge into the most visible ment at the schools, and the rest is being engine of the city’s renewal.” spent on the renovation and conversion. Instrumental in this turnaround was the New To meet the eligibility criteria for the QZAB Jersey Economic Development Authority’s program, 10 percent of the project costs had 2002 issue of $7 million in bond financing to come from the private sector. This goal was for Campbell’s Field, located on the water­ met: $2,298,500 in contributions from private front in the Camden EZ. The EZ bonds were businesses was raised through the Children then sold to refinance an equal amount of loans issued by local banks for stadium

52 Spotlight on Results SECTION 1

construction. The state development authori­ In March 2004 new owners purchased the ty also made a $2 million loan to CFDA RiverSharks, easing debt problems that had Baseball Property, Inc., the baseball field emerged after the May 2003 death of former development arm of Coopers Ferry owner Steve Shilling. Development Association. CFDA owned the stadium during the construction phase, turn­ For more information on the programs ing ownership over on completion to Rutgers of the Camden EZ please contact Managing University. Director Rick Cummings, Camden EZ Corporation, at (856) 365–0300. “The EZ bonds were the crucial element in the overall financing package for the ball­ park,” said Corcoran of the bond financing. Bonds Provide Dough for

Camden’s new minor league baseball stadi­ Bakers to Expand um opened May 11, 2001, to a record crowd Operations of 7,192 fans. Campbell’s Field is the home of the RiverSharks, who play in the Independent Santa Ana, California, EZ Atlantic League, and is also the home field of The scent of baking bread and cookies per­ the Rutgers Camden baseball team. meates the air in portion of Santa Ana, Campbell’s Field sits near the Ben Franklin California, designated as a Federal EZ. Bridge that connects Camden and Sourdough bread and animal crackers are Philadelphia, giving rise to the two cities, one the primary products of the first two busi­ waterfront theme—a vision for turning the nesses here to take advantage of EZ facility waterfront areas of the cities of Philadelphia bonds. and Camden, which face each other across Since January 1999, when HUD assigned EZ the Delaware River, into a unified tourist status to this 3.9 square-mile area, the city of attraction. The Battleship New Jersey Santa Ana has been able to issue up to $130 Museum, the Tweeter Center (performances million in tax-exempt, EZ facility bonds to and sports), the Camden Children’s Garden qualified businesses. These businesses must (horticultural park), and the New Jersey State substantially conduct their operations within Aquarium are also located in the Camden the EZ and focus on hiring residents within the Waterfront. EZ’s boundaries. The EZ designation, coupled In 2001 Camden Baseball LLC, which owns the with local economic expansion and an RiverSharks and operates the stadium, provid­ increased workforce, led Gold Coast Bakery and ed 8 permanent full-time and 210 seasonal Stauffer Biscuit Company to solicit financing to part-time jobs for parking lot attendants, expand their production capabilities. cashiers, ticket-takers, food vendors, and oth­ Gold Coast Baking Company, which special­ ers. Full-time employment has fluctuated izes in sourdough bread, has effectively used between 10 and 15 in subsequent years, with State and Federal EZ hiring and sales tax some part-time services being absorbed by incentives to acquire new equipment, vendors under contract, according to increase its labor force, and spearhead an Managing Director Rick Cummings of the eightfold expansion of its facilities. With $5 Camden EZ Corporation. Every year Camden million from EZ facility bonds, Gold Coast Baseball LLC has met the critical IRS require­ enlarged its 2.48-acre plant and purchased ment for EZ bonds that 35 percent of the new bread manufacturing lines. The compa­ employees be EZ residents, he said. ny also has received $33,000 annually in

EZ and RC Tax Incentives 53 SECTION 1

Federal tax credits because 11 of its employ­ The city wanted to increase the number of ees reside within the EZ. When it relocated conventions from about 30 each year to 50 to Santa Ana in 1993, Gold Coast had 25 or more, and to increase the number of employees. Today it has 145 workers. hotel room bookings by two-thirds to 500,000 nights annually. A proposed renova­ Stauffer Biscuit Company, Inc., a 130-year-old tion of two historic buildings, the Lennox Pennsylvania-based baking company famous and Statler Hotels, and construction of one for its “Original Animal Crackers” and other new tower would advance the city’s goal by baked goods, chose Santa Ana as the site of adding 1,071 rooms and 70,000 square feet its new West Coast facility, the Laguna Cookie of function space. Company. This food processing company constructed a 217,000-square-foot state-of- To help leverage $265 million in convention the-art facility in the Gateway Corporate center hotel development, the EZ provided Center and began operations in June 2001. $95 million in tax-exempt bonds. Historic Located in both the Federal and State EZs, the Restoration, Inc., the hotel developer, signed company used $12 million in bond proceeds Texas-based Kimberly Clark as an equity part­ to finance the construction of its new building ner and later brought in Solomon Smith and the acquisition and installation of new Barney as the lead underwriter on the EZ equipment. Santa Ana’s diverse labor pool bonds. Other major financial participants contributed to Stauffer’s decision to establish included the Missouri Department of itself within the EZ. “The work ethic of the Economic Development, the city of St. Louis, people we’ve encountered is superb,” said and local banks. Carlous Sutton, the firm’s chief financial officer. Marriott International will operate the hotels under its Renaissance Grand brand. For more information on the programs of Approximately 800 permanent full- and part- the Santa Ana EZ, call EZ Director Deborah time jobs will be created, with 35 percent Sanchez at (714) 647–6548. filled by EZ residents. With additional EZ funding, Marriott will replicate its successful Career Advancement Training program for Dual-State EZ Launches entry-level workers, targeting EZ residents. Hotel Development With This training focuses on promotional oppor­ tunities and career development within the Facility Bonds hospitality industry.

St. Louis, Missouri/East St. Louis, The project has served as a catalyst for devel­ Illinois, EZ opment throughout the downtown. Other hotel operators have added an additional Looking to strengthen its central business 1,500 hotel rooms to downtown St. Louis district, the city of St. Louis, Missouri, since the convention hotel construction expanded its convention center in the 1990s. began. The Renaissance Grand has proven to Without sufficient hotel capacity, however, be an anchor for successful commercial and the city was unable to attract top conven­ residential development efforts throughout tions. A 1999 Round II EZ designation of the the Washington Avenue Loft District. two-state metropolitan area provided new options for St. Louis and resulted in the For more information on this successful tax largest EZ bond transaction in the Nation. incentives transaction and the programs of the St. Louis/East St. Louis EZ, call

54 Spotlight on Results SECTION 1

Interim Executive Director Ann Robertson of The Aztec Theater, once considered a master­ the Greater St. Louis Regional EZ, at (314) piece of architectural and technological 241–0002. design, was a draw for thousands at its open­ ing in 1926. Closed in 1989, the theater was slated for demolition, but was shielded by the EZ Facility Bonds efforts of the San Antonio Conservation Redevelop San Antonio’s Society. The theater will be restored from its currently dilapidated facade to a Meso- Historic Downtown American themed family attraction. It will offer three-dimensional laser shows, a guided San Antonio, Texas, EZ tour, and a trip back to 1926 with an authen­ The San Antonio EZ is working toward the tic silent movie experience that transforms issuance of $40 million in EZ facility bonds into a feature film with a giant state-of-the-art for redevelopment of the Alamo National IWERKS® Extreme Screen™ and sound system. Bank Building and the Aztec Theater, two historic landmark properties in the heart of The EZ facility bond inducement for this downtown. Years in the making, this joint development was made possible through a redevelopment project is an important addi­ boundary expansion approved by HUD. This tion to downtown San Antonio and the River project was competing for EZ bond financing Walk, one of Texas’ largest tourist attractions. with a convention center hotel that positions San Antonio nationally as a convention desti­ The Alamo National Bank Building, a highrise nation. With an additional $100 million allo­ office building prominent in the downtown cated, the EZ was afforded the flexibility to San Antonio skyline, will be converted into a move forward with all of the projects. 300-room Drury Plaza hotel, providing dining and retail opportunities along the banks of “San Antonio is characterized by its unique the River Walk. The Alamo National Bank blend of history and progress,” says Ramiro Building redevelopment will also complete Cavazos, director of the economic develop­ the now U-shaped River Walk pathway with ment department. “This project is an exciting an estimated $1.5 million in offsite river example of that business spirit in action.” improvements. This highly anticipated con­ For more information on the programs of the nection will join the River Walk end points, San Antonio EZ, contact EZ Manager Dianne known to bring unwitting visitors to a dead Quaglia at (210) 207–4014, or visit the EZ end at the river’s flood gates. This continuous Web site at www.sanantonio.gov/ loop will encourage more foot traffic through edd/empowersa.asp. the many venues for shopping, entertain­ ment, and dining along the river.

EZ and RC Tax Incentives 55 SECTION 1

Capital gain exclusions provide a longer term benefit to investors in an EZ or RC. Over the Capital Gains coming year, HUD’s marketing efforts will The Community Renewal initiative also offers continue to aggressively focus on the bene­ capital gains exclusions to businesses in RCs fits of capital gains exclusions in order to and EZs. If an EZ business holds an asset just assist potential investors in planning their tax a year, for example, it can avoid capital gains savings strategies. Once the untapped when selling the asset if it purchases another investors learn of the opportunities that EZ asset within 60 days. The RCs also have a would be eligible for substantial Federal tax powerful capital gains exclusion for small savings simply by electing to hold the quali­ businesses that sell property. This incentive fied EZ or RC assets for a defined period of allows the business owner to exclude 100 time, capital gains exclusions will be as pop­ percent of the gain from taxation provided ular as the other incentives available in the the owner purchases the property between $11 billion tax incentive package for EZ/RC 2002 and 2009, holds it for at least 5 years, businesses. Expectations are that as capital and performs substantially all of his or her gains exclusions continue to be available to business in the RC during this period. In investors, there will be a number of stories addition, RC residents must comprise at least featured in a future publication describing 35 percent of the business’ workforce. the ways in which businesses and investors have been able to successfully use them.

56 Spotlight on Results SECTION 1.1

Wage Credits

The Loft Dance Club employs local Tacoma RC resi- dents and saves thousands yearly in RC wage credits. (page 23)

High End Products employs several Santa Ana EZ residents and claims EZ wage credits. (page 20)

American Apparel in Selma’s Southern Alabama RC makes Army uniforms, employs hundreds of local resi- dents, and saves thousands yearly due to RC wage credits. (page 21)

The Community Bakery in the Pulaski County EZ employs nearly 40 local residents in its EZ locations and saves thousands in EZ wage credits. (page 18)

Microsemi Corporation employs dozens of RC residents and claims savings from RC wage credits in the Lawrence RC. (page 14)

EZ and RC Tax Incentives 57 SECTION 1.2

Deductions

Commercial Revitalization Deductions helped to finance a major renovation for the Krakatoa Coffee House and create 6 new jobs in the San Diego RC. (page 40)

The Hunt Phelan Home in the Memphis RC received a $2.4 million CRD allocation to renovate a Civil War hospital that was once a school for newly freed slaves. (page 33)

Primos Hunting Calls hires dozens of local residents and took a $2.5 million CRD allocation to build a local facility in the West-Central Mississippi RC. (page 43)

Popeyes Chicken in the Rochester RC received a CRD allocation to rehabilitate its restaurant. (page 39)

The Nelson Block redevelopment in downtown Burlington was driven by the RC’s CRD savings. (page 26)

58 Spotlight on Results SECTION 1.3

Bond Financing

® The Boston EZ used tax-exempt EZ bonds to finance The National Association of Realtors D.C. headquarters the Roundhouse Hotel. (page 45) was financed partly by the District of Columbia Enterprise Zone through $15 million in tax-exempt EZ bonds. (page 48)

A new Renaissance Grand Hotel, financed partly through $95 million in EZ bonds, will create 800 new This multipurpose ice skating facility was financed partly jobs in the St. Louis-East St. Louis EZ. (page 54) by the Cumberland County EZ through $4.2 million in tax-exempt EX bonds. (page 47)

A favorite Washington, D.C., tourist attraction is the San Antonio EZ facility bonds are helping to renovate International Spy Museum, which was financed partly the 80 year-old Aztec Theater in the heart of downtown. through a $15 million Enterprise Facility Bond. (page 55) (page 45) EZ and RC Tax Incentives 59 Spotlight on Results

SECTION 2 Businesses Advancing With Financial and Technical Assistance SECTION 2

ach of the 30 urban Empowerment local entrepreneurs. The Burlington, Vermont, Zones (EZs) has a strategic plan to RC annual report, for example, describes how guide its community revitalization. the city of Burlington repealed its personal One of the four key principles of property tax for microbusinesses and stream­ eachE EZ strategic plan is economic opportunity. lined its local permitting process by instituting Each EZ facilitates economic opportunity in part multidepartmental review. by providing local entrepreneurs with technical assistance and greater access to capital and The Camden, New Jersey, RC annual report credit so they can expand and create job indicates that the New Jersey Municipal opportunities for local residents. Rehabilitation and Economic Recovery Act provides a $2,500 wage credit on the corpo­ An important goal of every Renewal ration business tax for businesses that expand Community (RC) is to provide financial and or open in the RC and other parts of technical assistance to local businesses. Each Camden. The Charleston, South Carolina, RC of the 40 RCs has a tax incentive utilization annual report explains how the city of plan (TIUP) that describes how the State and Charleston created the Charleston Digital local governments will work with private Corridor to attract small and medium-sized firms, neighborhood organizations, and com­ knowledge-based enterprises to the RC and munity groups to assist businesses within the surrounding neighborhoods. RCs. Each TIUP also discusses how the RC will implement a set of economic growth promo­ This section of the publication showcases suc­ tion efforts to benefit local businesses. cesses of the RCs and EZs in providing vital technical and financial assistance to local Each year the RCs and EZs submit annual businesses. We know that you will enjoy reports to HUD that reveal substantial suc­ reading these success stories and we hope cesses in assisting local businesses. These that your community chooses to emulate reports show that the EZs have helped to some of these successes. If you would like provide financial assistance to more than additional information on any of the stories 3,100 businesses and technical assistance to in this section, please call the RC or EZ direct­ more than 24,000 businesses since 1994. The ly using the contact information that appears EZs have been able to use Federal funds to at the end of each story. We also invite you leverage more than $1.6 billion in loan funds, to visit HUD’s Community Renewal Web site which they have used to provide loans to at www.hud.gov/cr to browse through the nearly 18,000 local businesses. annual reports of the RCs and EZs.

The RCs receive no Federal grants to provide assistance to local businesses, yet the annual reports from the RCs are filled with informa­ tion on how they work with partners to assist

Financial and Technical Assistance 63 SECTION 2

business plan and loan package; and a large reference library with guides to planning, Financial and marketing, legal issues, accounting, record- keeping, facilities, equipment, inventory, and Technical advertising for different types of businesses. Suddenly, Richards’ plan to start her Assistance own company did not seem so far-fetched after all.

Baltimore EZ Helps Armed with a list of potential business sites Entrepreneur Achieve available in the EZ, provided by the Baltimore Development Corporation, Dream of Owning a Richards began driving to check out each Business address. After one site she was interested in fell through, she settled on a site on Baltimore, Maryland, EZ Central Avenue in Inner Harbor East. With a $100,000, 7-year loan from Empower “I don’t believe that a traditional bank would Baltimore’s Small Business Loan Fund, have loaned me money to start my business. Richards leased the 2,200-square-foot, first- I had never done this type of business floor space that would become Charm City before.” Signs. One-fourth of the loan covered her —Joey Richards, Charm City Signs initial equipment costs, and she opened for business with no other funding beyond her Joey Richards had no experience in graphic own life savings. arts, only a determination to succeed. Assistance from Empower Baltimore did not Working in New York City as a paralegal, she end there, however. Her business startup had learned to survive in a sink-or-swim envi­ costs were such that the company operated ronment. That survival instinct served her at a loss for a while, and Richards worked well when, after she moved to Baltimore to hard to increase her business acumen and be with her daughter, her company down­ build up a stable client list. She attended a sized and Richards lost her job. Undaunted, host of breakfasts, workshops, and other Richards decided to start her own sign com­ entrepreneurial networking opportunities pany. As an unemployed single mother and arranged by EBMC’s business empowerment novice entrepreneur, she stood little chance center. of finding a traditional lender willing to finance her business. Her contacts in Empower Baltimore referred “everybody they knew who wanted a sign” On the Internet Richards discovered the U.S. to her shop, Richards says, and some of Small Business Administration’s One-Stop those early customers are still with her. Capital Shop, located at Empower Balt- Moreover, Empower Baltimore followed up imore’s business empowerment center. to make sure she had plenty of networking Empower Baltimore, she would discover, opportunities and access to business expert­ administers the Baltimore EZ. At the business ise. Today, business is booming for Charm empowerment center, she found a wealth of City Signs with contracts to manufacture services: one-on-one business counseling; signs for businesses across the Baltimore access to computers and business-related metropolitan area. software; research materials to develop a

64 Spotlight on Results SECTION 2

For more information on the programs also ripe for development. A parking garage or of the Baltimore EZ, please contact Tanya two might be possible, perhaps condomini­ Terrell at (410) 783–4400. ums or apartments. A small park was already there and the waterfront was nearby. The site seemed ideal for his purposes. Empower Baltimore Loan The Union Box Company building dated Turns Abandoned Box from the 1800s. The company, which made Factory to New Uses shipping boxes for oysters and fruit, was typical of the industries that flourished Baltimore, Maryland, EZ when Baltimore was a rail and shipping “We talked to a variety of banks,” recalled hub. Also typical, however, were the old Larry Silverstein, developer of Lancaster in-ground oil tanks, lead-based paint, Square in Baltimore. “No one would lend asbestos, and other environmental contami­ money down here, especially for a building nants in common use decades ago, that with environmental issues. Empower would have to be removed to meet current Baltimore provided the initial financing that building and environmental standards. got everything going. The loan they did for That is when Silverstein ran into problems. this building set off the chain reaction.” None of the banks he sought out wanted to As a New York City investment banker and finance such a project. The environmental aspiring real estate developer, Silverstein had cleanup costs in a brownfields site were a keen appreciation of the potential of neg­ unpredictable, nor was it certain that busi­ lected urban neighborhoods. When nesses would be eager to lease office space Silverstein returned to his native Baltimore in in the transitional neighborhood. the late 1990s, he moved into Fells Point. A It turned out that Silverstein did not need crumbling, boarded-up brick structure at a bank for financing. Empower Baltimore 1820 Lancaster Street, which had once Management Corporation, which administers housed the Union Box Company, caught Baltimore’s EZ, stepped in with a $340,000 his eye. loan that enabled Silverstein’s project to go Silverstein envisioned a renovation that forward. Completed in 1999, the project would restore the Union Box building to its combined seven separate buildings into one former glory—but in a modern urban com­ structure while maintaining the historic munity that provided the mix of commercial facades. The project consists of office, retail, and residential uses that had worked so well and multifamily spaces. in TriBeCa—the once-deteriorating “Triangle Lancaster Square now houses offices of a Below Canal Street” area of New York City. financial brokerage, an Internet design and Like TriBeCa, the Union Box property was a marketing company, the Epidemiology- somewhat isolated enclave that had once Genetics Program in Psychiatry of the Johns been predominantly industrial. Hopkins University School of Medicine, and “I always wanted to fix up an old building,” several other establishments. The exterior of Silverstein recalled and it was love at first sight. the brick building has been restored right The price was “shockingly inexpensive,” said down to the old-fashioned block letters that Silverstein—$340,000 for a crumbled building read “Union Box Company” on the facade. A he wanted to turn into 50,000 square feet of whimsical, faux railroad track design on the profitable office space. The streets nearby were inside floor leads visitors past concrete pillars

Financial and Technical Assistance 65 SECTION 2

fashioned to look like wooden beams to a In 1998 the Camden Empowerment Zone light, airy interior with exposed brick walls. Corporation (CEZC) made $2 million in business loan funds available through Today, Silverstein has not only repaid the EZ CBAC, a nonprofit community develop­ loan, but also is developing more properties ment fund founded in 1987 that provides in the area. loans to small Camden businesses that Lancaster Square has won many awards, have difficulty accessing traditional credit including the Best Historic Renovation Above markets. CBAC manages the CEZC revolv­ $1 Million for the State of Maryland and the ing loan fund, which offers microloans third best renovation below $10 million in ($1,000–$20,000), commercial loans the United States. In April 2001 the Baltimore ($20,000–$100,000), fixed asset loans Metropolitan Associated Builders & Contrac­ ($100,000–$250,000), and working capital tors named Lancaster Square the best Histori­ loans for inventory, supplies, and other cal Restoration Over $1 Million; in June 2002 expenses. CBAC leverages CEZC funds with Baltimore Heritage gave it the Historic capital from a consortium of local banks, Preservation Award; and in December 2003 the U.S. Department of Treasury, various Baltimore magazine gave Lancaster Square a private foundations, and the Small Business Best of Baltimore award for the post office Administration’s Micro Loan Program. located there. The CEZC $2 million loan pool has provid­ It is now a space, notes Silverstein, “that sells ed loans totaling $2,755,434 to finance EZ- well.” based businesses. The 47 EZ businesses that received grants and loans by July 2004 For more information on the programs helped create 150 new jobs and retain 353 of the Baltimore EZ, please contact Tanya others for EZ residents. Terrell at (410) 783–4400. This loan program helped make it possible for Noah Joffe, a southern New Jersey dry Camden EZ Encourages cleaner, to purchase and renovate a 15,244- square-foot former machine shop on 10th Businesses With Loan Street in the EZ. The Joffe project received a Fund, Grants $117,500 loan from CBAC as part of a nearly $700,000 financing package. The new facili­ Philadelphia, Pennsylvania/ ty was expected to create six new jobs for EZ Camden, New Jersey, EZ residents. “I believe that the availability of the EZ Small “There’s a good labor pool here,” the New Business Loan Fund and the EZ tax incentives Jersey Economic Development Authority led INC Magazine to rank Camden sixth (NJEDA) quoted Joffe in 2001. “We promised among urban cities in which to do business,” to bring new jobs to the Camden area and, said Mike Diemer, executive director of the with the help of CBAC, Commerce Bank, and Cooperative Business Assistance Corporation the NJEDA, we’re doing it.” (CBAC) in Camden, New Jersey. Another business-related project, the busi­ An employment agency, a dry cleaners and ness grant program administered by the 45 other new businesses have opened in the CEZC, provides grants for EZ businesses of Camden, New Jersey, EZ thanks in part to EZ $1,000 for each employee living in the EZ, loan and grant programs for businesses. to a maximum of $5,000 per business. These

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grants complement the benefits of EZ Federal “To help attract qualified entrepreneurial wage credits, which are worth up to $3,000 companies to Camden and its surroundings, yearly for each employee who resides in the the fund will strongly encourage companies EZ. Problem Solvers Employment Agency, the in which it invests to locate in the city’s first company approved for the EZ Business Renewal Community or Empowerment Zone. Grant program, is an example of the pro­ The Tech Campus will seek experienced gram in action. Problem Solvers qualified for venture-fund managers from the region to two grants, making it possible for company run the fund,” Keith said. President Clarence Gland and Vice President Kimberly Henry to hire Erika Rhett as treasur­ The Tech Campus is a partnership of the er. Problem Solvers then helped 20 other Rutgers University School of Business at Camden residents find jobs. Camden, the Delaware River Port Authority, and the New Jersey Commission on Science For more information on the programs of and Technology. Located in Camden’s the Camden EZ, please contact Program Renewal Community since its opening in Manager Darrell Staton of the Camden EZ October 2002, the Tech Campus will move Corporation, at (856) 365–9061. to new quarters in the Camden EZ waterfront in 2005. Camden Tech Incubator “The long-range goal is to create a six- building technology park in Camden, close Adds New Venture Fund, to the aquarium,” said Keith. “As we speak, Plans Expansion the first building is under construction. It will be 100,000 square feet—20,000 square Camden, New Jersey, RC feet per floor, with five f loors available for “A lot of people thought there were no occupancy in 2005.” One floor of the build­ entrepreneurs in South Jersey,” Frank Keith, ing will provide modular “wet labs” to director of the Rutgers-Camden Technology “house a nest of biotech life sciences com­ Campus, Inc., told the Philadelphia Business panies in Camden,” said Keith. The Journal in 2002. “We proved them wrong.” Rutgers–Camden Technology Campus will occupy two f loors of the new building, And Keith continues to prove his point. doubling the incubator’s capacity in its cur­ On March 31, 2004, the U.S. Commerce rent site with 35 office suites in a renovated Department’s Economic Development hospital building in the RC. Administration (EDA) boosted incubator efforts by providing $850,000 to cover “The idea, as companies spin out of the incu­ legal and administrative costs of setting up bator, is to have a tech park in Camden,” said the New Jersey Early Stage Venture Capital Keith. He anticipates the tech park project will Fund. The EDA investment will start the create 1,000 to 1,200 high-paying jobs. venture fund and provide a mentoring pro­ All companies located in the Camden RC are gram to help technology-related, early- eligible also to claim valuable Federal tax stage businesses gain access to equity and incentives that Congress authorized for RC debt financing. Keith envisions the venture businesses, such as Commercial Revitalization capital fund becoming as large as $75 Deductions, Increased IRS Section 179 million. Deductions, and wage credits worth up to $1,500 per employee. The employee must reside in the RC and there is no limit on the number of employees for which the employ-

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er can take these credits. These credits are For more information on the programs of available to RC businesses through at least the Cleveland EZ, please contact Director the end of 2009. Anthony Houston at (216) 664–3410.

For more information on the programs of the Camden RC, please contact Managing Franchise Initiative Director Rick Cummings of the Camden EZ Corporation at (856) 365–0300. Brings Popeyes, Wendy’s to Columbus EZ

EZ Loan Funds Childcare Columbus, Ohio, EZ Center Expansion Two national fast food chains are opening eateries in the Columbus EZ in 2004, thanks Cleveland, Ohio, EZ to the Columbus Compact Corporation’s Dawn Benton is a woman with a lot of heart. Franchise Initiative. The two franchises— Her commitment to nurture children in a Popeyes Chicken & Biscuits and Wendy’s safe and encouraging environment lies at the International, Inc.—are bringing a national pres­ heart of her small business, located in the ence to underserved commercial areas in the Glenville neighborhood in the Cleveland EZ. EZ. The name that Benton chose for the business The Columbus Compact Corporation admin­ reflects her heartfelt affection for children: isters the Columbus, Ohio, EZ. The com- All My Heart Education Center. pact’s franchise initiative offers financial “I believe the success of All My Heart comes resources to investors and experienced retail from my staff, committed to giving our chil­ managers within the boundaries of the dren the best that they have,” says Benton. Columbus EZ. All My Heart serves infants, toddlers, pre­ The franchise approach enables national schoolers, and elementary school children. retailers to enter central city marketplaces at The success of Benton’s early education cen­ reduced risk. These enterprises benefit the EZ ter meant a need to grow. With the help of by redeveloping idle property, providing an EZ business opportunity loan of $90,764 services, and creating entry-level jobs for dollars, received in May 1999, Benton was residents. able to expand her education facility by Through the initiative, the Columbus 1,500 square feet. The new facility contains a Compact makes available up to $250,000 as kitchen, bathroom, cribs, and play areas for an equity investment to support a new fran­ infants and toddlers. chise operation. The compact then becomes Enrollment at All My Heart for 2004 is at a limited partner with less than 50 percent capacity with 70 children, most from the ownership. A structured 5-year exit strategy Glenville area. Benton says most of her staff, will recoup the compact’s investment and including 16 teachers and assistants, live in leave the operator with full ownership. In the EZ. addition, participating businesses receive the support of a full-service real estate develop­ “The children are my joy,” says Benton. ment firm for tasks such as market studies, “They are, as I like to say, the frosting on my assistance in identifying and securing sites, cupcake.” negotiating with franchisers, and packaging

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bank financing, as well as assistance with site For more information on the programs of the development or redevelopment. Columbus EZ, please contact President and CEO of Columbus Compact Corporation Popeyes opened its doors for business in the Jonathan Beard at (614) 251–0926. Milo-Grogan neighborhood of the Near North Heritage District of Columbus in February 2004—dramatically improving the Opportunity Fund Carves appearance of the one-half acre site, which formerly consisted of vacant lots, billboards, Shopping Mall From and two empty buildings. The Milo-Grogan Large Downtown Store restaurant is the second Popeyes franchise owned and operated by minority entrepre­ El Paso, Texas, EZ neurs Ron and Mary Prigmore, a local couple. The El Paso EZ’s Border Opportunity Fund The Prigmores credit the franchise program helped make it possible for a long-time El with helping identify a site and securing Paso retailer to retain a retail presence in a financing with Huntington National Bank. historic downtown store while subdividing The program also provided development some of the space to create affordable main expertise, site assembly, and predevelopment street storefronts for microenterprises. financing during the site research stage as Thanks to a low-interest, 10-year construction well as subordinated debt financing for con- loan of $197,000 secured by real estate, struction/permanent financing. Mark Rosen, Inc., took the large Texas Store Popeyes employs 35 area residents with an at Mesa and Overland Streets in downtown estimated payroll of more than $300,000. El Paso and subdivided part of it into smaller The owners are eligible to take EZ wage cred­ spaces. Rosen’s grandfather, Marcus Rosen, its worth up to $3,000 annually for each founded the Texas Store in El Paso in the employee who lives in the EZ. 1930s. Beginning in 1931 with the Popular Dry Goods Company in Las Cruses, New Watermark Services LLC opened a Wendy’s Mexico, the Rosen family has established a restaurant on East Broad Street in the Near regional chain of clothing and piece goods East Heritage District in 2004. Watermark is stores under the Popular and Texas Store the only franchise in the Wendy’s home mar­ names. ket owned by African Americans. This project is redeveloping a half-acre of vacant property The 2003 EZ funding for the Mesa Street into a one-of-a-kind, historic carriage- Development covered costs of a new roof, house-style restaurant in an underserved area. asbestos removal, seven new bathrooms, and There will be 35 to 40 jobs and a payroll additional parking facilities. The project creat­ exceeding $400,000. The owners will be eligi­ ed five separate rental retail spaces with prime ble for up to $3,000 a year in EZ wage credits locations on Mesa Street. for each employee who lives in the EZ. The Retailers in the development now include a initiative provided predevelopment financing, men’s and a women’s shoe store, a sports development expertise, intensive assistance shoes store, a financial services company, a with zoning variance process, and neighbor­ general merchandiser, and a seamstress who hood liaison services. rents out party equipment and sews for wed­ dings and the traditional Hispanic quinsean­ era (a coming out party for teenage girls).

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The Border Opportunity Fund helps address With the active involvement of the Federal the financial needs of businesses that have Reserve Bank of San Francisco, five banks not been adequately served by traditional agreed to contribute $250,000 to the loan lending institutions. Loans from this fund fund: Central Valley Community Bank, feature competitive interest rates to business­ Country Bank, United Security Bank, Valley es in the El Paso EZ to help facilitate expan­ Independent Bank, and Wells Fargo & Co. sion projects in an area with traditionally The Valley Small Business Development minimal access to business capital. Corporation, a Fresno area nonprofit devel­ opment agency, operates the loan pool. The For more information on the Border Economic Development Department admin­ Opportunity Fund or other programs of the isters the Fresno EZ. El Paso EZ, please contact Phyllis Rawley of the EZ at (915) 351–1680, or visit the EZ’s Funds will be available for investment in the Web site at www.elpasoez.org. Fresno EZ, Enterprise Zone, HUB Zone, or low-to-moderate income census tracts. Fresno EZ Businesses Get At the city council presentation on January 24, Autry and Castillo recognized all of the HELP With Financing participants who made the loan pool a reali­ ty and then held a news conference. Broad Fresno, California, EZ coverage in the press and on local television The city of Fresno launched its new $1 mil­ and radio stations helped to get the lion EZ business loan program with a flour­ word out. ish. Mayor Alan Autry and Council President Brad Castillo began the January 24, 2004, Within 2 months of the launch, 5 loans were Fresno City Council meeting by presenting approved totaling nearly $0.5 million. Few of proclamations that officially declared this to the successful applicants, who represent a be HELP Loan Day in the city. variety of businesses and financing needs, would have secured funding without the “Access to capital is an essential element of program. any economic development program,” said Fresno Economic Development Director “The collaboration and the confidence in Fred Burkhardt, explaining the significance the city of Fresno Empowerment Zone of the program. demonstrated by the city’s financial com­ munity is gratifying,” Burkhardt said of the A partnership between the Fresno Economic loan program. “It is a significant tangible Development Department, the Valley Small investment in the city’s future!” Business Development Corporation, and five area banks made the Hometown Entrepre­ For more information on the programs neur Loan Program (HELP) possible. The of the Fresno EZ, please contact Fresno Community Reinvestment Act loan pool will Economic Development Interim Director assist local enterprises that have had difficul­ Lynn Bowness, Department of Economic ties receiving small business loans in the Development, City of Fresno, at (559) past. 621–8353.

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Minority Business The international trade subcommittee recently sponsored a trade breakfast that provided Opportunity Committee minority business owners an opportunity to Takes Off in sell their products and services internationally. Speakers presented the possibilities of trading Northwest Indiana in a global market place.

Gary/East Chicago/Hammond, For more information on the programs of the Indiana, EZ Gary/Hammond/East Chicago, Indiana EZ, Since its inception in April 2003, the North­ please contact Executive Director Venus Cobb west Indiana Minority Business Opportunity at (219) 886–9047. Committee (NIMBOC) has assisted more than 60 minority business entities in obtain­ ing $13 million dollars in contract awards and New Development at The more than $200,000 in financial transactions. Point—A Shell Building NIMBOC, established by the Gary/East Takes Shape Chicago/Hammond EZ with funding from the Minority Business Development Agency Huntington, West of the U.S. Department of Commerce, is Virginia/Ironton, Ohio, EZ made up of CEOs of major private industries Construction is underway on a $1.3 million, and public organizations in Northwest 42,000-square-foot shell building at The Indiana. Its mission is “to foster the creation, Point, a South Point, Ohio, industrial park. growth, and expansion of minority-owned businesses in the cities of Gary, East Chicago, The shell building is the first of several projects and Hammond.” planned for the 500-acre industrial park in the Huntington, West Virginia/Ironton, Ohio, The committee fosters alliances that plan, EZ developable site. Economic development coordinate, and deliver innovative policies, officials hope the park will bring several thou­ programs, and strategies. It fosters additional sand jobs to the area in the upcoming years. sources of capital, improved management skills, and greater market penetration for At the March 2004 groundbreaking ceremony, minority-owned businesses within the U.S. U.S. House of Representative Ted Strickland and global economies. Subcommittees work said, “This is yet another example of how the in the areas of finance, contracting and pro­ Empowerment Zone program can work. This curement, marketing, and international trade. community has made great things happen with the EZ money.” NIMBOC holds many events for the minority business community. In 2003 NIMBOC host­ Approximately an acre will be under roof at ed its first Minority Enterprise Development the new shell building, which will also have Week with the EZ. More than 200 guests 26-foot-high ceilings, two loading docks, and attended and 30 EZ minority businesses 40-foot-wide bays. In addition, the site will received Entrepreneurial Legacy Awards. have 50 parking spaces. NIMBOC has scheduled its second annual Minority Enterprise Development Week con­ ference for September 2004 in Gary.

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The shell building will lease for about $2.75 EZ Contribution Jump per square foot, or $100,000 a year. There have already been a number of inquiries Starts Major Shopping/ about the property, but no one has signed Entertainment Complex a lease yet. Tenants will be eligible for the many EZ tax incentives including wage cred­ Huntington, West its, EZ facility bonds, reduced capital gains Virginia/Ironton, Ohio, EZ provisions, and special business deductions. Having overcome the largest impediment— Local officials have started an $80,000 mar­ land acquisition—to a $60 million restaurant, keting campaign for the shell building and retail, and entertainment complex, Pullman the industrial park. Half of this communica­ Square is no longer a dream. Due to the tions budget was provided through State development’s location, the Huntington, West funds. Virginia/Ironton, Ohio, EZ was able to con­ tribute $500,000 to help assemble the 8-acre For this project, the State partnered with the site, thereby setting the project in motion. Lawrence Economic Development Corpora­ tion, the economic development arm of the The EZ’s partnership with four groups— chamber. The development corporation bor­ Huntington Urban Renewal Authority; the rowed $500,000 and the State provided Transit Authority; the city of Huntington; $500,000 in funding. Another $200,000 in and Huntington Metropolitan, the private funding was provided by the EZ. developer—was key to the successful land pur­ chase and it demonstrated the community’s Construction on a $900,000 project will cre­ support of and commitment to a major devel­ ate a 6,000-square-foot training center and a opment within downtown Huntington. By $2.5 million project will bring infrastructure backing up its words with action, the partner­ improvements including water, sewer, and ship effectively made the case that the EZ was road building the industrial park. a prime location for investment. “I am pleased the development is located within the Construction on the Ohio University Empowerment Zone and tenants are eligible Southern’s Point Leadership and Training for Federal tax incentives,” said Tim Rollins, Center will take 9 to 12 months to complete. project developer. In addition, the development corporation was recently notified that it would receive $70,000 Five tenants have already signed on to be a in tobacco settlement money to help build part of Pullman Square. Of those five, three roads in the industrial park. companies are new to West Virginia. In addi­ tion to the 16-screen Marquee Cinema and For more information on progress of The two large parking garages, two restaurants, Point’s shell building and training center, as an ice cream parlor, a coffee shop, and a well as information on the programs of the comedy club will call Pullman Square home. EZ, please contact Executive Director Cathy Burns of the Huntington/Ironton EZ, at Located near the Marquee Cinema, Cold (304) 399–5454. Stone Creamery will offer made-to-order ice cream creations to each customer by blending mix-ins on a frozen granite stone.

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This sweet shop will occupy 1,250 square EZ Business Resource feet and will be the first of its kind in West Virginia. Center Uses Startup Loans To Assist Businesses New to the State is The Funny Bone Comedy Club, which features standup comedians and Create Jobs in Heart and weekly headliners performing in a two- of Knoxville level, state-of-the-art club. A national leader in comedy club operations, The Funny Bone Knoxville, Tennessee, EZ will occupy 6,700 square feet. The Bourbon Street Café is one of the newest Facing Third Avenue, Moe’s Southwest Grill additions to Knoxville’s EZ. The restaurant is one of the fastest rising stars in the quick- specializes in home-style New Orleans and casual dining category. Moe’s makes burritos southern-style meals, sandwiches, and daily from the freshest ingredients. The desserts. Owner Lilita Smith is a bundle of 2,300-square-foot location will be its first in energy who is very excited about this West Virginia. endeavor.

Sharing the building next to the Holiday Inn Smith worked with the Tennessee Small and Suites is Pizzeria Uno. Originally known Business Development Center and Economic for its Chicago Style Deep Dish Pizza, the Ventures, partners in the Knoxville EZ Business restaurant now features a full lunch and din­ Assistance Center, for approximately 1 1/2 ner menu in a casual family-style setting. It years before receiving a $50,000 startup loan will offer al fresco dining in this 7,200-square- from the EZ to help finance her business. She foot location. accomplished all of this while working another job and going to school full-time. She spent Situated on a high-profile corner of Pullman time acquiring equipment for the café and the Square, overlooking the square and facing equipment served as collateral for the loan. Third Avenue, Starbucks will occupy 1,600 Smith found the staff of the EZ business assis­ square feet and provide both indoor and out­ tance center to be very helpful throughout the door, café-style seating. This is the fifth West entire process. Virginia location for this retailer of whole bean coffees, espresso beverages, premium Smith says that the hardest part about get­ teas, pastries, and confections. ting started was getting detailed information about her industry. People were reluctant to For more information on the progress share information with someone who was of Pullman Square and on the programs going to be a potential competitor. The easi­ of the EZ, contact Executive Director Cathy est part about getting started was “trusting Burns of the Huntington/Ironton EZ, at in God and working out the menu.” (304) 399–5454. Four new jobs were added to Knoxville’s EZ with the grand opening of the Bourbon Street Café in October 2003.

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On April 17, 2004, business owner Gary equipment. She was excited to learn she Gamble addressed a crowd of well-wishers could fully depreciate the equipment costs on at the grand reopening of GAM’S Hair her Federal taxes in the first year through the Fashions in the Mechanicsville community Increased IRS Section 179 Deductions because of Knoxville. Gamble’s business was dis­ her business is located in the Knoxville EZ. She placed when his former location was is also able to take advantage of the EZ wage acquired as part of the economic redevel­ credit because one of her four full-time and opment plan in Mechanicsville. However, two part-time employees live in the EZ. The thanks to a $50,000 loan from the EZ wage credit is worth up to $3,000 yearly Knoxville EZ Business Resource Center, to EZ employers for each employee that lives Gamble now owns the building at 1524 in the EZ. University Avenue where his business is housed and he was able to remain in the For more information on the programs of community just a few feet away from his the Knoxville EZ, please contact Marcy former location. Gamble credits the assis­ Griffin, Assistant Community Development tance of the EZ business resource center Administrator, City of Knoxville, (865) staff throughout the process of securing 215–3900. the loan to purchase the building and new equipment. With the reopening of GAM’S, Knoxville’s EZ has retained two jobs and EZ Fosters Business added seven new ones. Development in South

Healthcare Billing Resources is a company Florida that provides billing, administrative, and consultative services to healthcare providers Miami-Dade, Florida, EZ in Knoxville. Owner Jennifer Monroe started LEASA Industries Expands Facilities the business out of her home in 1998. The and Jobs business grew quickly and she soon moved to a bigger home. However, the success of LEASA Industries Company is close to com­ the business necessitated finding appropriate pleting construction of a 30,000-square- office space. “We like the close proximity to foot facility expansion that was made downtown and to the hospitals and doctors possible by a $1.6 million equity invest­ we serve,” said Monroe. She stated she “gets ment by the Miami-Dade Empowerment more office space for the dollar” by having Trust, which administers the Miami-Dade her business located downtown. In addition, EZ. “The Empowerment Trust is making it the office is close to where most of her possible for us to continue leading our employees live. industry while making a positive impact in the local community,” commented L. The continued growth of the business made George Yap, president and CEO of LEASA it necessary to purchase additional equipment Industries. to increase operational efficiency, so Monroe contacted the Knoxville EZ business resource As one of the largest growers of bean and center for assistance. Because she had all the alfalfa sprouts and the largest producer of necessary paperwork when she showed up for tofu in Florida, the expansion was needed to her appointment, the EZ was able to process accommodate LEASA’s rapidly growing sales a business loan of $50,000 to her in a matter that totaled nearly $5 million in 2002. of days. Jennifer has used her loan money to Located in the Poinciana Industrial Park, this expand the office space and purchase new expansion is expected to create 65 new jobs for residents of the Miami-Dade EZ. 74 Spotlight on Results SECTION 2

Chili’s Brings Flavor and Jobs to Bayside League Headquarters, the Glover-Sudduth Marketplace Center for Economic Development and Urban Thanks to a $500,000 investment from the Affairs. The 30,000-square-foot redeveloped Miami-Dade Empowerment Trust’s Venture building at Plymouth and Penn, with its dis­ Capital Fund, Chili’s Bar & Grill opened a tinctive patterned brick and clock tower, fea­ restaurant in Bayside Marketplace. Not only tures two large public gathering places and will Chili’s enhance this major tourist attrac­ nine smaller spaces. tion, but it will also create at least 100 jobs in The coffee shop received a $30,000 EZ busi­ the central business district of the Miami- ness initiative loan through the Minneapolis Dade EZ. Consortium of Community Developers. Other “This is a really great opportunity for Chili’s funding partners included Women Venture, to complement the attractions offered at Minneapolis Urban League, Minneapolis Bayside for tourists and local residents. At the Community Development Agency, Northside same time we are hiring residents from eco­ Residents Redevelopment Council, and nomically distressed areas such as Overtown Franklin Bank. and Wynwood,” added a Chili’s spokesperson. The Minneapolis EZ Business Initiative is a For more information on the programs in partnership with community lenders to invest the Miami-Dade EZ, call EZ Director Andre in EZ small businesses. It makes loans and Wallace at (305) 372–7620. technical assistance available to entrepreneurs within the EZ who may not be able to access conventional loans or who are in need of Coffee Shop Adds Savor additional capital. Businesses located in the EZ are also eligible for a $3,000 yearly tax to New Minneapolis credit for each employee who lives in the EZ. Urban League Johnson, a former Northwest Airlines flight Headquarters attendant, was born and raised in North Minneapolis. “My roots are here,” said Minneapolis, Minnesota, EZ Johnson. “I graduated from North High “I want to give back and provide a business and I recently purchased a home in north model of appropriate, professional behavior, Minneapolis.” particularly for our children,” Ardana When asked about her business goals, Johnson, owner of Café Tatta Bunna in the Johnson said that she sees her future role as Minneapolis EZ, told the Minnesota supporting other entrepreneurs. “There are Spokesman-Recorder. “I want them to know people in places who can and will help you,” that any business they dream of can become Johnson affirmed. “I don’t want anyone to their career.” say it can’t be done.” Café Tatta Bunna has become a popular com­ For more information on the programs of the munity gathering place since opening in Minneapolis EZ, please contact Director December 2002. The first coffee shop on Jonathan Palmer, Minneapolis EZ at Minneapolis’ Near North Side, Café Tatta (612) 673–5016. Bunna leases space in the city’s new Urban

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Gotham Plaza Brings “The project was a good first step to address the shortage in local office space. Stores, Offices, and It has also provided a great draw for other Confidence to East businesses to expand or move into the underserved East Harlem community,” said Harlem Kenneth J. Knuckles, CEO and president of UMEZ. New York, New York, EZ “Gotham Plaza is more than just another For more information on the programs of building,” says Gotham Plaza developer the UMEZ, please call Chief Administrative David Blumenfeld, vice president of Blumen­ Officer Marion Phillips, New York Empower­ feld Development Corporation. “It is a his­ ment Zone Corporation, toric vote of confidence in the future of East (212) 803–3239. Harlem.” Gotham Plaza, a 90,000-square-foot retail Through EZ Financing, and office building on East 125th Street between Lexington and Third Avenues, is an Café Helps Keep NYC’s important factor in the ongoing revitalization Fort Tryon Park Beautiful of the New York Empowerment Zone in East Harlem, an area that has suffered urban New York, New York, EZ blight for decades. The New York Times called the New Leaf Café, located in Manhattan’s Fort Tryon Park, “a Completed in December 2002, Gotham cool, airy oasis.” The Zagat Survey com­ Plaza is a mixed-use facility with prime retail mended its “stunning” location, “creative” and office space. The retail stores include organic cuisine, and “friendly” service. The Children’s Place, Foot Action, Petland Discounts, and Rockaway Bedding. The New What makes this out-of-the-ordinary restau­ York State Department of Motor Vehicles and rant truly unique, however—according to Lifespire—a nonprofit organization that pro­ Kenneth J. Knuckles, former CEO and vides services to adults with developmental president of the UMEZ Development disabilities—lease the upper f loors of the Corporation—is that “the Café received a building. grant from UMEZ and the proceeds from operations are used to support and maintain The $22.5 million Gotham Plaza project was Fort Tryon Park.” financed by a $3 million loan from the Upper Manhattan Empowerment Zone (UMEZ) The New Leaf Café is an enterprise of enter­ Development Corporation, an $18 million tainer Bette Midler’s New York Restoration loan from Fleet Bank, and $1.5 million in Project (NYRP), a nonprofit organization developer equity. UMEZ administers the working to reclaim, develop, and revitalize Manhattan portion of the New York EZ. parks, gardens, and public space in New York City. Net proceeds from the restaurant Gotham Plaza created 275 jobs and helped support NYRP’s ongoing work in Fort Tryon stabilize other commercial businesses, includ­ Park. In addition, Midler’s organization sup­ ing Pathmark Supermarket, Seamans ports several other parks, including Swindler Furniture, and Duane Reade (the latter two Cove Park, Fort Washington Park, Highbridge having leased space in another building, Park, Roberto Clemente State Park, and Gateway Plaza, that was partially financed by Bridge Park. UMEZ).

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“When I moved back to New York in the Nation’s Biggest African- early 90s, I saw the decay of its parks, road­ ways, and open spaces—especially in eco­ American Bookstore nomically disadvantaged neighborhoods,” Established in Harlem, declared Midler in a 2004 letter on the NYRP Web site. “Since then, NYRP has Thanks to EZ Loan shown what individual action, organized New York, New York, EZ around a unified effort, can achieve. We’ve forged partnerships with city and State “Businesses like the Hue-Man Bookstore great­ agencies to allow our cleanup and reclama­ ly enhance the cultural landscape of our tion projects to bring hundreds of acres of community,” remarks Kenneth J. Knuckles, parks back to pristine condition.” former CEO and president of the UMEZ Development Corporation. “They draw visi­ Since its opening in 1995 in Fort Tryon Park, tors to 125th Street and complement the the New Leaf Café has provided a distinctive nearby cultural institutions like the Apollo and romantic setting for fine dining. Theater and the Studio Museum.” Designed to appeal to residents and tourists alike, the restaurant serves local, regional, In August 2002 the Hue-Man Bookstore and international audiences and also hosts opened its massive 4,000-square-foot space special events and themed evenings. The in Harlem USA—instantly becoming the menu features both American and regional largest African-American bookstore in the cuisines. country. Harlem USA, a multimedia entertain­ ment retail complex that opened in 1999, The EZ’s $200,000 grant to New Leaf Café previously brought in retailers like Old Navy, went toward the build-out of the restaurant’s HMV, and Magic Johnson Movie Theaters to second floor. The commitment from UMEZ a historically underserved area. One of the added to the momentum for the develop­ first projects of UMEZ, Harlem USA was ment of the New Leaf Café, helping to create approved in 1996. 57 new jobs and supporting the overall economic revival taking place in Upper The Hue-Man Bookstore boasts an extensive Manhattan. The EZ grant becomes a fully selection of books by African-American repayable loan should the Café fail to comply authors on a wide variety of topics. It also has with the grant agreement. UMEZ administers a large children’s book department, an edu­ the Manhattan portion of the New York cation area, and a coffee and refreshment Empowerment Zone. bar. With a décor and ambience that rival larger chain bookstores, it has become a fix­ For more information on the programs of the ture in the Harlem community. UMEZ, please call Chief Administrative Officer Marion Phillips, New York Empowerment UMEZ facilitated the establishment of the Zone Corporation, (212) 803–3239. independent bookstore in Harlem USA by providing Hue-Man with a $475,000 loan and assisting in the negotiations with the

Financial and Technical Assistance 77 SECTION 2

developer for an affordable long-term lease. “When organizations of the caliber of The bookstore’s three owners—Clara General Motors and Potamkin choose East Villarosa, Rita Ewing, and Celeste Johnson— Harlem for a major initiative,” said New York committed $500,000 in equity to the Mayor Michael Bloomberg at the signing, project. “it’s a sure sign that the neighborhood is maintaining its momentum toward becom­ A financier, psychologist, and holder of a law ing a major destination shopping location, as degree, Villarosa founded the Hue-Man well as a place where people work, live, and bookstore in Denver, Colorado, and operated invest.” it for 16 years before bringing the concept to New York City. Ewing is an attorney and The East Harlem Auto Mall, to be built on author of women’s fiction and children’s East 127th Street between Second and Third books. Johnson had considered opening a Avenues, will house five auto dealerships bookstore of her own in Charlotte, North including the GM brands Cadillac, Chevrolet, Carolina. Saturn, and Hummer. In addition, the prop­ erty will be used to complete the final stages “This is so much bigger than our plans,” of auto manufacturing and offer full vehicle Ewing told the American Booksellers service and repair facilities. Association’s Bookselling this Week at the time of the opening. “I never expected the The UMEZ Development Corporation issued kind of impact [the bookstore] would have $17 million in Industrial Development on the entire community. People are always Authority bonds to finance the cost of con­ coming by, poking their heads in.” struction. UMEZ administers the portion of the New York EZ that is in Manhattan. For more information on the programs of the UMEZ, please call Chief Administrative The Cadillac and Hummer franchises will Officer Marion Phillips, New York be owned by Potamkin Cadillac Hummer Empowerment Zone Corporation, at of Manhattan and will be developed in (212) 803–3239. conjunction with Potamkin’s Minority Dealership Program. Similarly, the Chevrolet and Saturn franchises are being GM, Car Dealer Group developed in conjunction with GM’s Partner With EZ To Minority Dealer Development Program. Establish New Auto Mall “These new GM franchises will play a role in GM’s effort to better address the needs in Harlem of buyers in this large and diverse market,” said GM Chairman and CEO Rick Wagoner New York, New York, EZ at the signing. “We’re dedicated to provid­ When completed in 2005, the East Harlem ing products and services that a wide range Auto Mall will be the largest auto sales and of customers want and to getting our fair service center in New York City and the first share of the growing sales in these markets.” located above 60th Street in more than 40 years. The new auto mall, launched June 20, The East Harlem Auto Center is expected to 2003, with an agreement signed between create more than 250 permanent high- General Motors and the Potamkin Auto paying, full-time jobs with an average annual Group of New York, was made possible by salary of approximately $41,600. This is a full $17 million in tax-exempt EZ facility bond 16 percent higher than the median wage of funding.

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$36,760 for New York residents, noted beams when he speaks about how far his Kenneth J. Knuckles, former CEO and presi­ company has come since June 2003. “When dent of UMEZ. I came to talk with Empowerment 2010, we had zero contracts. To this date, we have “A project of this size will pay massive divi­ five. Once everything was put in place dends as East Harlem and the surrounding through the relationship with communities of Upper Manhattan continue Empowerment 2010, we were quite suc­ to benefit from new investment and building cessful with contract negotiations and initiatives,” said Knuckles. “We hope to con­ awards,” he said. tinue to bring these types of projects to Upper Manhattan in the future.” With ARI’s move to the EZ came growth. The company has gone from a 1-man oper­ For more information on the programs of ation to 15 full-time employees, 5 of whom the UMEZ, please call Chief Administrative are EZ residents. ARI is now eligible to claim Officer, Marion Phillips, New York Empower­ yearly EZ wage tax credits worth as much ment Zone Corporation, at as $3,000 per employee. By registering with (212) 803–3239. Federal and State procurement agencies, ARI won a competitive bid to perform screening services for a pass and identifica­ EZ’s Technical Assistance tion department valued at $62,700. Helps Security Company For more information on the programs of the Prosper Norfolk-Portsmouth EZ, contact Landis D. Faulcon of Empower 2010, Inc., at (757) Norfolk-Portsmouth, Virginia, EZ 314–4228. Seeking to take advantage of the heightened interest in security in order to grow its busi­ ness and in need of more suitable office Virginia EZ and Wireless space, Advanced Research Investigative, LLC 4 U Form Valuable (ARI) approached the Norfolk-Portsmouth, Virginia, EZ for help. Within 90 days of the Partnership request, ARI had relocated from Virginia Beach, Virginia, to the EZ. Norfolk-Portsmouth, Virginia, EZ Having started as an independent sales “Pre-September 11th, there was not a lot of representative selling cell phones from the interest in security, but since that time, trunk of his car, James Hunter, Jr., was opportunities have opened up in this indus­ ready for a store of his own. Today, his try,” said CEO Keith Benson, who founded company, Paradyme Marketing Group, LLC, ARI in 1998. These opportunities, combined is flourishing due in large part to the help with ARI’s move to the EZ, served as a Hunter received from the small business springboard to take business to the next incubator and resource center run by level. Empowerment 2010, the organization that Through its small business incubator and administers the Norfolk-Portsmouth, resource center, Empowerment 2010, which Virginia, EZ. administers the EZ, was able to steer ARI to After developing his business plan, Hunter additional government contract opportuni­ turned to the small business incubator and ties and was instrumental in helping ARI resource center, where he learned about the secure new government contracts. Benson

Financial and Technical Assistance 79 SECTION 2

opportunities provided to EZ businesses. He Center (SBIRC) in the Norfolk-Portsmouth, received a wealth of legal, human resources, Virginia, EZ. This family-owned metalsmith and marketing assistance for his new business. firm received invaluable information from “Empowerment 2010 was very useful because and made valuable business contacts it provided information that I would not have through the SBIRC. had or come across if I’d not established that relationship,” says Hunter. Tiggs Welding is the brainchild of Herbert and S. Patrice Tiggs. Trained in California as Paradyme Marketing Group opened its first a special niche welder, Herbert Tiggs was retail store, Wireless 4 U, in September inspired by another entrepreneur and moti­ 2002 on Hampton Boulevard in Norfolk, vated by a family crisis to begin this joint just minutes from a local university. The venture. Patrice Tiggs, a former client of store not only offers competitive local Empowerment 2010, which administers exchange carrier services through Cavalier the EZ and the SBIRC, had heard of self- Telephone, but also carries a variety of mobile improvement programs for EZ residents, products from Alltel, Nextel, Sprint, and but was unclear how they could be of help T-Mobile. in establishing a business.

In August 2003, after correctly anticipating Initially, the husband-wife team sought profes­ the buying power of Generation Y, Hunter sional assistance for their business from the expanded his business to Chesapeake, Virginia. veteran’s center. When that program conclud­ He described the technical assistance he ed, the instructor joined SBIRC and the Tiggses received from Empowerment 2010 as “invalu­ soon were reaping the benefits of all SBIRC able.” When he started the company in 2002, had to offer. it had five full-time employees, three of whom were EZ residents. Paradyme was eligible to “I guess the three things we’ve gained claim yearly EZ wage tax credits worth as have been knowledge, insight into business much as $3,000 for each of these three relationships, and accountability,” said employees. Hunter says he is looking forward Patrice Tiggs. “While the information is to a prosperous future and a fruitful, ongoing available at the center, we’ve learned it’s relationship with Empowerment 2010. up to you to learn as much as you want to learn. No one is going to do it for you.” For more information on the programs of the Norfolk-Portsmouth EZ, contact Landis After establishing itself in April 2001, Tiggs D. Faulcon of Empower 2010, Inc., at (757) Welding requested assistance with market­ 314–4228. ing to increase its share of construction and government contracts. The SBIRC helped the firm implement several initiatives to EZ Helps Welding help enhance market share. As a result, the firm has expanded from mobile welding to Company Connect With metal equipment repair and fabrication and New Opportunities has been certified by the Virginia Depart­ ment of Transportation as a “Stay-in-Place Norfolk-Portsmouth, Virginia, EZ Decking” builder for bridge construction. Two years after Tiggs Welding, LLC, was Additionally, its increased market presence TM established, profits soared 150 percent, a led Rockford Steel Building Systems, a result of the company’s relationship with the South Carolina manufacturer of ready-to- Small Business Incubator and Resource assemble steel buildings, to designate Tiggs

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Welding as the Hampton Roads region’s Community Capital; and the Service Corps of authorized dealer for its products. Retired Executives. The EZ also offers financial assistance in the form of low-interest loans and These milestones allowed the company to grants at the center. increase its 2002 revenues by 150 percent over the previous year. The relationships initi­ A recent analysis prepared by the Initiative ated through the Empowerment 2010 SBIRC for Competitive Inner Cities projects growth helped Tiggs Welding reach new heights. potential for EZ businesses and praises the EZ business center. “Consistent with trends For more information on the programs of the nationwide, St. Louis’s growth is anchored Norfolk-Portsmouth EZ, contact Landis D. by small business development,” says Kevin Faulcon of Empower 2010, Inc., at (757) Cahill, chief operating officer of the St. Louis 314–4228. Inner City Competitive Alliance. “The cre­ ation of this business development center is critical to retaining and encouraging sustain­ EZ Business Center able business development and job creation.” Strengthens Urban Core “The service we offer and coordinate truly Stability empowers business owners,” says Kevin Wilson, director of the EZ Small Business St. Louis, Missouri/East St. Louis, Development Center. “They have a real Illinois, EZ opportunity to improve their circumstances.” Although the lack of adequate capital can be For example, DMX Industries and Lackey Sheet a barrier to small business development, the Metal have received technical and financial lack of adequate technical assistance often assistance at the EZ business center to prevents businesses with potential from get­ expand their operations, while two other ting off the ground. And, without a sound businesses, Wicks Mobil Plaza and Cecil business plan, many startups are unable to Whittaker’s Pizzeria, used assistance from the attract financing. EZ business center to add critical access to The EZ Small Business Development Center retail services. Arvin’s Furniture Appliance and (SBDC) in St. Louis has been working to AC, another recipient of assistance, was able ensure that companies receiving Federal to rise from the ashes of a fire that damaged loans are considered sound by outside its facility within the EZ. investors. Having loaned $890,000 to five For more information on the programs of the small businesses in 2001 and 2002, the St. Louis, Missouri/East St. Louis, Illinois, EZ, Greater St. Louis Regional EZ, which estab­ contact Interim Executive Director Ann lished the SBDC, saw its efforts pay dividends Robertson, St. Louis Regional EZ Manage­ as the seed money leveraged an additional ment Corporation, at (314) 241–0002. $2.5 million in private development and retained and created 92 jobs.

At the EZ Small Business Development Center, Yakima Uses Loan Fund companies learn business plan development, To Generate Jobs marketing, loan packaging, and financial analy­ sis. The EZ operates the center in partnership Yakima, Washington, RC with the U.S. Small Business Administration; The establishment of an Economic RMI, a microbusiness lender; the Missouri Small Development Loan Fund (EDLF) in Yakima, Business Development Center; Great Rivers

Financial and Technical Assistance 81 SECTION 2

Washington, in October 2002 has led to the white and red wines. Both the wine produc­ creation of more than 130 jobs within the tion facility and the tasting room are located Yakima RC. While the monies, all of which in Yakima’s RC. Yakima Cellars used a came from HUD’s Office of Community $110,000 loan for working capital and Planning and Development, have been ear­ equipment acquisition. As a result, the com­ marked for specific purposes, the city has pany expects to expand production and hire allotted them to further job growth in the three more full-time employees over the next RC. Yakima has used a $1 million Economic 24 months. One of its partners has started a Development Initiative grant to provide a second winery as a result of Yakima Cellars’ loan loss reserve, pay certain fees, and guar­ success. antee the interest rate for the term of each loan, while it has used $4 million in Section With its $330,000 EDLF loan, Pepper’s 108 funds to approve businesses. Restaurant funded both the acquisition of and repairs to an existing structure and In 2003 Yakima funded three projects working capital. The principals of this through the EDLF at a total value of minority-owned, RC-based business also $3,335,000. The jobs these projects will cre­ own a hotel adjacent to the restaurant. ate are spread among businesses large and Reopening the restaurant was, in the eyes small. of owners Seong and Helen Kim, vital to the success of their hotel. The first involves Trail Wagons, Inc., a recre­ ational vehicle manufacturer. This business The EDLF is an integral part of the Yakima used its loan to supplement working capital, RC’s efforts and provides it with more flexi­ acquire chassis, and retool for the introduc­ bility when assisting businesses at the local tion of two new motorhome models. The level. expansion of this RC-based business will cre­ ate 121 new, full-time manufacturing jobs for For more information on the programs of local residents. the Yakima RC, please contact RC Director Michael Morales of the city of Yakima, at During its brief existence, Yakima Cellars, a (509) 575–3533. boutique winery and tasting room, has pro­ duced several award-winning handcrafted

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Financial and Technical Assistance

Charm City Signs used a Baltimore EZ loan and EZ technical assistance to launch a successful graphics arts business. (page 64)

Fresno EZ Director Fred Burkhardt provides technical assistance on EZ tax incentives to local residents and business owners. (page 70)

All My Heart Education Center for children expand- ed through a $100,000 Cleveland EZ business loan. (page 68)

A Huntington-Ironton EZ grant helped to finance a new industrial park in South Point, Ohio. (page 71)

An El Paso EZ grant helped to finance a local retail center. (page 69)

Financial and Technical Assistance 83 SECTION 2

Financial and Technical Assistance

Pullman Square was developed partly through a $500,000 Huntington-Ironton EZ grant. (page 71)

A New York EZ loan helped to finance the new Gotham Plaza in Upper Manhattan. (page 76)

Employees of Healthcare Billing Resources, a small business that received Knoxville EZ financial assis- tance.

New Leaf Café in Ft. Tryon Park received funding through a New York EZ grant. (page 76)

Café Tatta Bunna is a local business that received Minneapolis EZ financial assistance. (page 75)

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Financial and Technical Assistance

The East Harlem Auto Mall was financed with tax-exempt New York EZ facility bonds. (page 76)

Yakima Cellars Winery is a Yakima RC business developing through a Section 108 city loan. (page 81)

Cherry Janitorial Services, a women-owned local business, received technical assistance through the Norfolk-Portsmouth EZ and now saves money through EZ wage credits. (page 79)

Tiggs Welding received valuable technical assis- tance through the Norfolk-Portsmouth EZ Small Business Incubator and Resource Center. (page 79) Financial and Technical Assistance 85 Spotlight on Results

SECTION 3 Residents Advancing With Job Creation, Training, and Assistance SECTION 3

key to revitalizing the BEST is an employment skills-training model Renewal Communities (RCs) that develops employment competencies for and Empowerment Zones local residents, matches participants to local (EZs) is creating jobs for local opportunities, and provides job-retention residents.A Steady employment provides the support for each participant. foundation for residents to become econom­ ically self-sufficient. Providing new jobs and In the Eastern Kentucky Renewal Community job-training services for local residents helps (EKRC), RC staff partnered with Save-the- each EZ promote economic opportunity, Children and AmeriCorpsVISTA to provide which is one of the four key principles of computer skills for RC residents. At a local each EZ’s strategic plan. The tax incentive donated computer lab in the RC, residents utilization plan of every RC also focuses receive one-on-one computer training and heavily on creating jobs and providing job tutorials on computer repair. The Flint, training for local residents. Michigan, RC works with the national organization Support and Training Result in The annual reports that RCs and EZs submit Valuable Employees (STRIVE) to provide job to HUD reveal considerable success in training for RC residents. In 2002 STRIVE con­ advancing job creation and training assis­ ducted preemployment and basic skill devel­ tance for local residents of these designated opment classes. It recruited 318 residents, of areas. These reports show that the urban EZs which 209 graduated into employment. have conducted nearly 700 job-training and job match programs for more than 65,000 This section of the publication showcases the EZ residents since 1994. As a result, the EZs successes of RCs and EZs in providing vital helped more than 55,000 EZ residents obtain job creation and training assistance for local new jobs and retain current employment. residents. We know that you will enjoy read­ ing about these successes and we hope that The RCs do not receive Federal grants to your community emulates some of these suc­ provide job training assistance to local resi­ cesses. If you would like additional informa­ dents, yet the RCs are still successful in pro­ tion on any of the stories in this section, viding employment training and new jobs please call the RC or EZ directly using the for local residents. In Rochester, New York, contact information that appears at the end for example, the RC works with Rochester of every story. city offices to facilitate the BEST program.

Job Creation,Training, and Assistance 89 SECTION 3

Development Agency (AWDA). Through employment recruitment, evaluation, indi­ Job Creation, vidualized job coaching, and career advancement counseling, AWDA’s Training, and GoodWorks! program offers lifelong learn­ ing and career development opportunities. Assistance The 7-month GoodWorks! program is tar­ geted to Temporary Aid for Needy Families applicants and recipients as well as noncus­ People, Partnerships, and todial parents with a high school diploma Progress in Georgia RC or General Equivalency Diploma. The pro­ gram also provides mentoring for up to 12 Atlanta, Georgia, RC months after a hire date and support serv­ With almost 60 percent of families in the for­ ices such as transportation, childcare, and mer Atlanta EZ living below the poverty healthcare. level, job readiness took priority as the EZ As an AWDA program participant, Copeland began its transition to an RC. The need for is now working at the Atlanta RC’s manage­ employment-related training was empha­ ment company, the Atlanta Neighborhood sized by residents attending seven commun­ Development Partnership, Inc. “This opportu­ ity meetings sponsored by the city of Atlanta nity has offered me computer training, to discuss the new RC designation. helped me develop typing skills, and has “The Atlanta Renewal Community is com­ allowed me to meet very important people pletely committed to what works to relieve here in Atlanta,” said Copeland. “I am now and eradicate the distress in our neighbor­ excited about my future!” hoods through partnerships with residents, Pleased to provide employment opportuni­ businesses, and government,” said Melvin ties to AWDA participants, Waldrop noted, Waldrop, executive director of the Atlanta RC. “We could not expect to engage our part­ “We are also committed to who works. Every ners to honor their commitment to this capable adult and youth should have the community and not do so ourselves.” In fact, capacity—skills and training—to move from two of Copeland’s GoodWorks! classmates unemployment and underemployment to also have been placed through the Atlanta self-sufficiency.” RC: Marry Ann Pitts, who now works in the Although she lives in the RC, Jorrica office of the president and CEO of Atlanta Copeland knew very little about how either Neighborhood Development Partnership, EZ or RC programs could help her. Cope­ Inc., and Angela Langford, who provides land did know a lot about unemployment direct support to the RC program. and underemployment. Since graduating “When you bring people together in partner­ from high school in 1995, she had worked ships that work, progress is the predictable only in customer service positions at a outcome,” said RC Deputy Director Lisa L. major grocery store and a dry cleaning Hawkins. “That’s what works for the Atlanta establishment. Renewal Community—people in partnerships The employment-related needs of Copeland for progress.” and other RC residents are now being For more information on the programs of addressed through a partnership between the Atlanta RC, contact Lisa Hawkins, at the Atlanta RC and the Atlanta Workforce (404) 522–3970. 90 Spotlight on Results SECTION 3

Painting a Picture Full of program has changed her life. “I was strug- gling—making minimum wage, low self- Opportunities esteem, lost, and confused. Now I have a much better income. I have learned patience Cincinnati, Ohio, EZ and self-control and have had an attitude The benefits provided by this Cincinnati, change,” she said. “What I am most proud Ohio, EZ-based paint company extend of is ... I took my 8-year-old son on a tour of beyond the EZ’s boundaries and into the where I work. When it was over he looked up community at large. Not only does Nu-Blend at me with so much pride and said, ‘Mom, Paints provide job training and opportunities, this is where you work?’” it also recycles unused latex paint, reblend­ ing it into more than 150 different colors For more information on the programs of and a variety of finishes. the Cincinnati EZ, call Harold Cleveland, CEO of Cincinnati Empowerment Corporation, at By purchasing the Free Store/Food Bank (513) 487–5200. Building at 40 East McMicken in the Over- the-Rhine (OTR) area, Nu-Blend Paints demonstrated its commitment to EZ resi­ Cleveland EZ-Based dents. “Without the Empowerment Zone Business Keeps Ex- we would not be here,” said Bill Wojcik, Nu-Blend Paints’ executive director. “The Offenders Out of Prison Empowerment Zone has been extremely helpful to our past and continued exis­ Cleveland, Ohio, EZ tence. We invite everyone to tour our facil­ As thousands of former prison inmates return ity. We see OTR as a viable community and to Cuyahoga County, Ohio—most of whom we are committed to making the neighbor­ will make their homes within the Cleveland hood a great place to live, work, and do EZ—one EZ-based business is working to business.” reduce recidivism by integrating training, education, support services, and employment. In 2001–02, the Cincinnati Empowerment Corporation, which administers the More than 20,000 inmates were released Cincinnati EZ, awarded Nu-Blend a grant from Ohio’s State correctional facilities in and renewed it in 2002–03. Nu-Blend pro­ 2003, according to the Ohio Department of vides training and job opportunities to EZ Rehabilitation and Correction (ODRC). Many residents. Its Painters Training Program of these ex-offenders faced obstacles such as teaches painting as a trade and helps overcoming addiction to drugs and alcohol, graduates find occasional or full-time paint locating adequate housing, and finding jobs. jobs and assists them in forming their own painting contract companies. The company In an effort to end the cycle of prison release presently has 16 employees, most of whom and readmission, Community Re-entry, Inc., live in the EZ. gives a second chance to those who need it through the SAVIP (Save a Very Important Painter Rhonda Lewise joined Nu-Blend Paints Person) program. SAVIP was developed to aid in its infancy. “I have started many things and former felons living in the Cleveland EZ. Since never completed them,” she said. “With the 2001 the Cleveland EZ has obligated more help of the Nu-Blend staff, I followed through than $1.3 million in grant funds to the SAVIP and I’m proud of it.” The mother of three, program. Lewise admits that her participation in the EZ

Job Creation,Training, and Assistance 91 SECTION 3

For Victoria Lynne Berry, SAVIP was her sav­ training in these construction trades to ing grace. Having labeled herself the black underemployed or unemployed EZ resi­ sheep of her family, this 30-year-old found dents. “We’re attempting to fill an industry herself confined within the criminal justice void by providing a skilled work force, and system on four occasions—primarily due to we are meeting the needs of the residents her involvement with drugs and alcohol. of the Empowerment Zone by creating job opportunities,” said Milton Smalls, the EZ’s “I was doing all right until crack came to CEO. “The WIP program is what the town,” said Berry. That was when she lost Empowerment Zone was set up to do, to control of her life and alienated her family. create public-private partnerships that She lost 18 years to drugs and alcohol abuse. would come in and fill the needs of the In August 2002 Berry made the decision to community.” turn away from her destructive lifestyle. The WIP offers three 10-week training pro­ That’s when she came to Community Re­ grams each year to help EZ residents attain entry and enrolled in the SAVIP program. marketable skills in carpentry and masonry. Under the SAVIP program, Berry returned to Participants who complete a minimum of Cuyahoga Community College to complete 9 weeks of training receive a certificate from her associate’s degree while also working in the National Center for Construction a subsidized position with the Famicos Education and Research. Foundation. Impressed with her personality Various organizations refer applicants to the and work ethic, Berry’s employer offered her WIP, including the Columbia Housing a full-time position as a community organizer Authority, the Employment Security and outreach coordinator. Commission, South Carolina Vocational Now, in addition to working full-time, Berry Rehabilitation, the Department of Social voluntarily teaches computer literacy classes. Services, the Tennessee Development She made the dean’s list as an undergraduate Corporation, Benedict College, and the and has begun giving back to the communi­ Home Builders Institute Project Take Heart. ty she took for granted and drained of Only those who are underemployed or resources while an addict. unemployed may receive the nominal, incentive-driven weekly stipend that con­ For more information on the programs of the siders attendance, test scores, and skills Cleveland EZ, contact Anthony Houston, demonstration. director, at (216) 664–3410. Employers in the Columbia/Sumter EZ have a significant financial incentive to hire WIP Work Initiative Program graduates. Employers in the EZ can receive up to $3,000 yearly in Federal wage tax Teams EZ Residents With credits for each employee who lives in the Local Employers EZ. “Not only does it allow the construction industry to take advantage of the tax incen­ Columbia/Sumter, South tives and tax credits that the Empowerment Carolina, EZ Zone offers, it also provides above average wages for our residents,” said Smalls. “So With a shortage of skilled carpenters and it’s a win-win situation for everyone masons in the region, the Columbia/ involved.” Sumter, South Carolina, EZ launched the Work Initiative Program (WIP) to offer skills

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In 2003 more than 200 people applied to Sims and her Operation ABLE colleagues WIP; 76 were accepted into the program. help EZ residents overcome obstacles to About 80 percent of the participants gradu­ employment, including limited job experi­ ated into full-time employment. In 2004 WIP ence, a history of substance abuse or incar­ expanded each of the 3 sessions to 12 weeks ceration, fear of rejection due to age to incorporate soft-skills training. discrimination, or shopworn work skills due to long absences from the workplace. For more information on the programs of the Columbia/Sumter EZ, contact CEO While attending an EZ town hall meeting at Milton Smalls at (803) 545–3336. Beard Elementary School in January 2002, Holley picked up a flyer from Operation ABLE’s booth advertising computer classes. Adult Job Training If she could upgrade her computer skills, Sparkles in Detroit thought Holley, she would be a more attrac­ tive job candidate. Holley began Operation Detroit, Michigan, EZ ABLE’s computer training program just 2 months later. Today she works within the When Jewell Holley found herself in the EZ as a bank’s assistant branch manager. unemployment line, her self-esteem dropped and she suffered bouts of depression. At age With $533,600 in grants from the Detroit 50, with more than 35 years of work experi­ EZ Development Corporation since August ence, she was unable to find a job. Today, 1996, Operation ABLE has helped bridge a Holley is an assistant branch manager for vital gap by making free computer training Standard Federal Bank in the Detroit, and job-search assistance available to EZ resi­ Michigan, EZ, thanks to Operation ABLE. dents over 40 years of age. Operation ABLE uses a variety of strategies to help clients Although mature and elderly adults can land jobs. Employers frequently come to one often avail themselves of social services, or more of Operation ABLE’s three offices, all healthcare, and recreational and housing within the EZ, to interview clients. Operation options, there are far fewer opportunities ABLE also provides job leads, listings of for employment and job training. The jobs convenient to specific bus lines, job Detroit, Michigan, EZ’s response to such fairs, job clubs, and clothing. limited offerings was to help fund Operation ABLE, which provides a range Since the program began, 278 EZ residents of job-related services for EZ residents age have received computer training, other job 40 or older. skills, and job-search training. So far, 142 have been placed in jobs by ABLE or found “Most public and private agencies in our jobs independently using the skills they communities focus on strengthening families acquired through ABLE. by wrapping services around children and parents. At Operation ABLE we want to make For more information on the programs of sure that family elders get their fair share,” the Detroit EZ, contact Executive Director said Francine Sims, who directs the agency’s Larry Givens at (313) 872–8050. central office at Hannan House on Woodward Avenue.

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Lack of Nurse Assistants hour. Graduates passing the State- administered licensing exam tend to com­ Means Job Training mand more than those who are unlicensed. Options for EZ Residents To qualify for training, applicants must be at least 18 years of age, be drug-free, have sta­ Detroit, Michigan, EZ ble housing, have a clean criminal back­ Facing an increased demand for paraprofes­ ground, have access to reliable childcare, sionals in hospitals, assisted-living facilities, and be able to read on an eighth-grade level. private homes, and nursing homes, the They also are required to pass a physical Visiting Nurses Association (VNA) of South­ examination. Priority is given to low-income eastern Michigan is training 60 EZ residents as applicants and mid-life career changers. An nurse assistants with a $300,000 grant from interview with VNA staff is required. the Detroit EZ Development Corporation (EZDC). “The face-to-face interview helps us to determine such factors as the applicant’s “By 2005 the need for paraprofessionals level of maturity, how self-directed, disci­ to work in skilled nursing facilities and with plined, and independent they are, and if homebound patients is projected to increase they’re medically and emotionally ready by 138 percent. This is the largest increase to deal with the demands of the job,” across all healthcare professions,” wrote VNA says Training Counselor Nadia Purnell. Training Institute Director Trinee Moore in Applicants who cannot read on an eighth the April 2003 issue of In Touch. VNA not grade level are referred to local literacy only provides home healthcare for eligible programs where they can be brought up recipients, it trains workers in the healthcare to speed. “We keep the door open. industry and serves as an advocate for health- Whenever applicants reach that level, care issues such as coverage for the unin­ they’re welcome to come back,” she said. sured and affordable prescription medications. “This training presents an opportunity to gain a real foothold on employment because Certified nursing assistants perform a variety the demand is so great for skilled workers,” of patient services. These include personal says Larry Givens, executive director of the care services such as dressing, feeding, and EZDC. It is also a launching pad, he says, for bathing; taking vital signs and assisting with higher paying professions up the healthcare medication; holding instruments and adjust­ career ladder such as licensed practical nurse, ing lights during medical examinations and nuclear medical technician, or administrator. treatment; and offering patients emotional support. To date, VNA has provided education, train­ ing, and employment to more than 300 EZ-funded classes are held at the training people. institute’s newest location in the Metropolitan Center for High Technology. Participants For more information on the VNA training attend classes daily during the 5-week program, contact Nadia Purnell, VNA training training program and receive field experience counselor, at (800) 882–5720. For more each Saturday. Those completing the pro­ information on the programs of the Detroit gram can work as home health aides in pri­ EZ, contact Executive Director Larry Givens vate homes or as nurse assistants in hospitals, at (313) 872–8050. assisted-living facilities, or nursing homes. Starting salaries range from $7 to $9 per

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Faith-Based Furniture are doing so well that they have been able to get their own homes or apartments in Factory Builds Skills of the community. Another employee has Homeless in El Paso EZ gone on to employment with a company in El Paso, receiving a pay boost to $8 per El Paso, Texas, EZ hour instead of the $5.50 per hour wage “Our business is a little different from at Rescue Furniture. most,” notes the Web site of Rescue The Rescue Mission, a faith-based group, Furniture, a faith-based enterprise in the was established in 1952 to address the El Paso EZ. “We are not in business to see needs of the homeless in El Paso County. how much money we can make. We insist Over the past 15 years, the organization on hiring only homeless persons, and we has transformed itself from a provider of give hiring preference to the most disabled food, clothing, shelter, and counseling for persons that we can find.” a temporary stay into a provider of services In June 2003 El Paso’s Rescue Mission creat­ to help homeless persons obtain stable ed Rescue Furniture to provide employ­ housing, develop full wage-earning poten­ ment for homeless persons while teaching tial, and reintegrate into society. them marketable woodworking job skills. For additional information on Rescue Rescue Furniture opened with an annual Furniture, please visit the Web site at budget of about $120,000—reflecting www.rescuefurniture.org or call Blake wages for four laborers, a shop foreman, Barrow at (915) 532–2575. For more infor­ shop equipment, office equipment, and mation on the programs of the El Paso EZ, overhead, not including lumber costs. The please call Executive Director Phyllis Rawley project submitted a grant request to the El at (915) 351–1680. Paso EZ that met the EZ’s parameters of a 1:5 leverage ratio. The EZ approved a grant of $26,172. EZ Helps Fund Training Rescue Mission envisioned also that the new for High-Skill, High- furniture factory would create superior qual­ Demand Jobs ity products that would change public per­ ception about the work that homeless El Paso, Texas, EZ persons are capable of achieving. Today Rescue Furniture manufactures heavy-duty “Thanks in part to the Empowerment Zone all-wood bunk beds, single beds, three- and and Project ARRIBA, which believed in me, I four-drawer chests, and bedside tables. The was given an opportunity of a lifetime … to products are attractive, economically priced, return to school and receive a college and durable. Potential customers include degree,” said Norma Melendez, a resident of consumers, local retailers, other missions and the El Paso EZ. Displaced from a high-paying shelters, and government agencies. job in 2002, Melendez is a single parent of two school-aged children with special needs. All Rescue Furniture workers are recruited from residents in the homeless shelter in Project ARRIBA (Advanced Retraining & the El Paso EZ. Most of the workers are Redevelopment Initiative in Border Areas) pro­ recent graduates of the mission’s 13-week vides quality job training in El Paso County, drug and alcohol treatment program. Of where unemployment hovers at almost dou­ the eight employees building furniture, six ble the national average. ARRIBA’s mission is

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to provide long-term, high-skills training and “I will finish school in May 2005 as a regis­ case management services to eligible residents tered nurse,” Melendez said. “I will be able to enable them to qualify for jobs that pay a to pay back the community by staying in El living wage and benefits. The training also Paso and becoming a contributing taxpaying stresses the importance of life skills needed citizen of our society again. I will be able to in the business sector including time man­ set an example not only to my small children agement, establishing a good work ethic, but also to the rest of the community and showing responsibility, developing good demonstrate where there is a will there is communication skills, and demonstrating an a way.” ability to think critically. The program works with participants and their employers after For further information on Project ARRIBA, job placement to help ensure job retention. please visit its Web site at www.project arriba.org or contact Kathy Cox, CEO, at Believing that investing in human capital is (915) 843–4055. For more information on economic development that works, the El the programs of the El Paso EZ, please con­ Paso EZ has supported Project ARRIBA for tact Executive Director Phyllis Rawley at more than 2 years with a $250,000 grant (915) 351–1680. for July 2001–October 2002 and another $250,000 grant for September 2002–July 2005. ARRIBA has contracted with the EZ to Mott Initiative Opens graduate and place 50 EZ residents in jobs. Allied Health Careers Since its inception in December 1998, ARRIBA to Flint RC Residents has graduated 127 participants into high- demand occupations that are typically filled Flint, Michigan, RC by people from outside the community. The The Flint Healthcare Employment Opportunities average wage for program graduates who (FHEO) Project, an initiative of the Charles gain employment is more than $14.50 per Stewart Mott Foundation, is bringing new hour, or $30,000 per year. These occupations job-training opportunities to residents of the offer benefits and career paths. Flint Renewal Community while addressing a Project ARRIBA sponsors more than 250 pro­ local shortage of skilled labor in the allied gram participants in long-term training in health field. the allied health and information technology In 2000 Mott initiated the FHEO Project with fields. The program aims to help alleviate the a grant to the National Economic Develop­ critical shortage of healthcare professionals in ment and Law Center. Research found that the EZ. The overall program retention rate is the healthcare industry in Genesee County, more than 80 percent. Michigan, was experiencing both a high attri­ The typical ARRIBA participant is a 33-year- tion rate among entry-level healthcare work­ old Hispanic woman, married with two chil­ ers and a labor and skills shortage among dren, who receives government assistance in allied healthcare positions. At the same time, the form of TANF, food stamps, or both. residents of the Flint RC, an area of high More than 51 percent fall at or below the unemployment and low income, represented poverty level. Participants excel in the class­ an untapped source of potential employees. room with 63 percent maintaining a 3.0 Addressing these factors, the FHEO Project cumulative grade point average or better. works with healthcare employers to restruc­ ture hiring, retention, and promotional

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practices for entry-level healthcare workers By April 2004 the FHEO Project had already to help reduce attrition rates, facilitate career yielded impressive results: 90 participants had advancement, and improve employment completed the 3 weeks of life-skills training; opportunities in healthcare for residents of 42 participants were employed in healthcare the Flint RC. jobs; 8 participants were employed in non­ healthcare jobs; and 13 were enrolled in col­ The Flint RC was involved in the research, lege for nurse aide training. analysis, planning, and implementation phas­ es of the FHEO Project. RC staff conducted For more information on the programs of focus group sessions to determine healthcare the Flint RC, please contact RC Manager employers’ employment needs as well as Nancy Jurkiewicz Rich at (810) 341–1499. potential interest in participating in the FHEO Project. RC staff served on the project implementation committee to ensure that Community College in RC residents receive continued access to Flint RC Trains Residents services. for Employment The Mott Foundation will provide $400,000 in yearly funding for the FHEO Project Flint, Michigan, RC through June 2005. A related Mott program Housed at the Sylvester Broome Center in awarded $120,000 over a 5-year period to the heart of the Flint Renewal Community, assist FHEO graduates in continuing their the Mott Community College (MCC) Workforce education and moving up the healthcare Development Department offers a variety of career ladder. The Community Foundation affordable educational and employment of Greater Flint contributed a 1-year grant training services to local residents who are of $40,000 to fund a position to maintain unemployed or underemployed. regular contact with employers and FHEO graduates to address workplace issues and The Flint RC, designated by HUD in January to develop new partnerships with other 2002, is a committed partner of the college’s healthcare employers. The Greater Flint workforce training. The RC helped MCC Health Coalition is the lead agency for the identify funding opportunities and participat­ project. ed in regional planning efforts to assess workforce needs, types of jobs available, and FHEO has offered six training classes to date, effective job-training services. with the first class of graduates completing training in January 2003. Participants receive MCC’s partnership with the local workforce 3 weeks of professional, attitudinal, and life- development board and Michigan Works! skills training; a mentorship program; offers services in vocational and academic WorkKeys® skills assessment of mathematics; assessments, computer and employment and training in locating information, obser­ training, and job placement. vation, and reading skills. The program also provides 2 years of case management. Other MCC operates a Workforce Investment Act initiative components include training for (WIA) program, an adult worker program, a those who supervise entry-level employees, dislocated worker program, an Incumbent certified nursing assistant training, and worker program, and a year-round youth training and career assistance for incumbent program. These programs offer educational/ healthcare workers living in the RC. career assessments; resume development; employment assistance; and training in com­ puter, literacy, and teamwork skills.

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Participants placed in jobs receive support said Colen. “I couldn’t have done it without services for up to 90 days, which include them.” transportation services, uniforms, and child- care services. For more information on the MCC Workforce Development Department, please contact As many as 100 WIA participants secured Robert Matthews of Mott Community employment in 2004. The WIA program College at (810) 785–3300. For more infor­ “Helped me to obtain employment and to mation on the programs of the Flint RC, develop and focus on my goals,” said Narisis please contact RC Manager Nancy Jurkiewicz Coleman, a WIA-Youth-program participant Rich at (810) 341–1499. who found a job as a lunch aide at a Flint elementary school. Prior to coming to MCC, Coleman was unemployed and enrolled to EZ Tapped to Recruit obtain her GED. Staff for New Bennigan’s A relatively new certificate program is MCC’s Restaurant in Gary Assisted Living/Direct Care Worker Job Opportunity program, which prepares partic­ Gary/East Chicago/Hammond, ipants to provide direct care and CPR to indi­ Indiana, EZ viduals in assisted living, private homes, or When Bennigan’s Restaurant opened its doors group home settings. Since its inception in in Gary in May 2003, almost all of the wait­ May 2003, 31 students have graduated and ers, cooks, managers, and other staff 27 of the graduates are now employed. were residents of the Gary/East Chicago/ Angela Colen, 41, a recent graduate of the Hammond EZ—and had been recruited and MCC Direct Care program, is now employed placed in their Bennigan’s jobs by the at a resident adult care facility. She enjoys EZ itself. working with the elderly to make sure their When planning the new restaurant, needs are met and, more importantly, they Bennigan’s owner Larry Briski was commit­ receive companionship. ted to hiring EZ and other local residents Before coming to MCC, Colen was an unem­ from Gary and East Chicago. Gary Mayor ployed college graduate with an accounting Scott L. King sought the assistance of the degree who had difficulty finding a job. EZ to find these workers. EZ staff took on Colen’s story demonstrates how program the assignment of filling more than 125 staff overcome multiple barriers to employ­ positions, including managers, servers, ment. Because she had been unemployed for hosts, hostesses, bartenders, cooks, and a long period and lacked money for class buspersons. fees, staff helped Colen secure financial assis­ The EZ conducted numerous job-readiness tance. The staff also helped her secure hous­ seminars and hosted a job fair at the Genesis ing and helped resolve a situation with Convention Center in April 2003, which 238 unpaid tickets that had deprived Colen of her applicants attended. driver’s license. Direct Care staff worked with Colen and the court to develop an agree­ Currently 96 percent of Bennigan’s staff are ment that allowed her to satisfy the debt EZ residents. Briski has received EZ employ­ through community service at MCC. ment tax credit for each EZ resident hired— a total of approximately $200,000. The EZ “The staff was always very resourceful in wage tax credits are worth up to $3,000 to helping me work out problems and barriers,”

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EZ business owners for each employee who EZ, please contact Executive Director Venus lives in the EZ. Cobb at (219) 886–9047.

For more information on the programs of the Gary/Hammond/East Chicago, Indiana, EZ Partnership With EZ, please contact Venus Cobb, EZ executive director, at (219) 886–9047. WorkOne Provides Job Training and Placement

EZ Transportation Grant Gary/East Chicago/Hammond, Gives Residents Lift Indiana, EZ to Work The Gary/East Chicago/Hammond, Indiana, EZ has formed a partnership with Workforce Gary/Hammond/East Chicago, Development Services (WFD) to create a Indiana, EZ dynamic job-training and work experience program for EZ residents. Started in January If you cannot get to work, you cannot work. 2004, the program is called “A New Year a With this fact and some hard data in hand, New YOU—Empowerment Through the East Chicago Housing Authority Employment.” Community Services director approached An EZ grant of $760,000 provides scholar­ United Parcel Service (UPS) with a plan to ships for skills assessments and vocational provide transportation for East Chicago training for EZ residents through WorkOne residents to jobs at the UPS facility in Centers in Gary and East Chicago. Hodgkins, Illinois. The project was made possible in part by a 2002–03 grant of Participants are taken through a vigorous $116,200 by the Gary/East Chicago/ 6-week job-readiness training. Participants Hammond EZ. who successfully complete the job-readiness portion move into a 3-month work experi­ The transportation program is a collabora­ ence and vocational certification training, tion between the city of East Chicago, East made possible through established relation­ Chicago Community Foundation, and the ships among the EZ, WFD, and area employ­ Urban Enterprise Association. The partner­ ers. Participants gain work experience in a ship and grant reinforce the EZ’s mission particular area of experience or interest, to create jobs for the EZ residents. building specialized skills.

Approximately 75 EZ residents used PACE Currently, 27 individuals are participating in Transportation to help them get to the training. The program has graduated 16 EZ UPS facility. participants with a 100-percent placement “This is a win-win situation because we are and retention rate. providing employment opportunities to top- For more information on the programs of notch individuals,” said Dan Bujos, UPS pro­ the Gary/Hammond/East Chicago, Indiana gram director. EZ, please contact EZ Executive Director For more information on the programs of Venus Cobb at (219) 886–9047. the Gary/Hammond/East Chicago, Indiana,

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EZ Funding Supports and vocational training, was transformed through a 2001–02, $650,000 EZ grant. Employment Training for At-Risk Youth One component of YEP, a 6-week woodwork­ ing class, recently received statewide recogni­ tion for its work. In February 2004 three Huntington, West woodcraft items produced in the class were Virginia/Ironton, Ohio, EZ juried and accepted by Tamarack, a shop that Operating out of an old high school renova­ showcases West Virginia handcrafts, culture, ted through a $650,000 grant from the fine art, regional cuisine, music, and heritage. Huntington/Ironton Empowerment Zone, the Cabell County Youth Empowerment Program “Congratulations and welcome to Tamarack,” in Huntington, West Virginia, is making a big announced Ron DeWitt, artisan services coor­ difference in the lives of local school dinator at Tamarack. “You are now the best dropouts. of the best of West Virginia. We love your coaster set, cutting board, and game board. The EZ uses city of Huntington Community We have determined that they meet or Development Block Grant and the Federal exceed our standards for craftsmanship, Workforce Investment Act to fund the opera­ creativity, and quality.” tions of the Youth Empowerment Program (YEP). The program helps school dropouts For more information on the programs of ages 14 to 21 who are deficient in job skills the Huntington/Ironton EZ, please contact get into the workforce. The EZ has provided Executive Director Cathy Burns at (304) about $60,000 during the 3 years of the pro- 399–5454. gram’s existence. The youth program also helps local busi­ Miami EZ Funds Training nesses. YEP subsidizes businesses to hire pro­ in Computer-Assisted gram participants, thereby providing at-risk youth with the job skills and training they Design Software need to prosper. Participating businesses gain the opportunity to train future employees at Miami-Dade, Florida, EZ no cost and have the satisfaction of making a Residents of the Miami-Dade EZ are learning difference in individual lives. In addition, the skills of computer-assisted architectural businesses located in the EZ can receive a design and drafting, thanks to an agreement $2,400 Work Opportunity Tax Credit and an between CADD Centers of Florida and the annual $3,000 EZ employment tax credit for Miami-Dade Empowerment Trust, which each student they hire who resides in the EZ. administers the EZ. Under the agreement, Program directors worked with the EZ to signed in March 2001, CADD Centers have form mutually beneficial alliances with more conducted six 14-week sessions to date of than 16 local businesses. Autodesk Authorized Training in the EZ, grad­ uating 60 trainees. The highly successful program moved in January 2003 into new housing in “On several occasions we had to request per­ Huntington’s once-abandoned Frederick mission from our program directors to Douglass High School building, now an office increase the class size to accommodate the building. The renovated facility, which offers high demand for our training,” said instruc­ a state-of-the-art computer lab and onsite tor Alvaro Menendez. “That alone is testa­ access to many other types of educational ment to the need for our program.” CADD 100 Spotlight on Results SECTION 3

assigned two instructors and one coordinator “This is a really unique and exciting program to the EZ-funded trainings. Successful because not only are we providing people trainees become employable in jobs that pay with the educational tools to prepare them $10 to $15 per hour. for a career, but we are also creating entre­ preneurs with the potential to be extremely Autodesk is a manufacturer of computer- profitable,” affirmed Bryan Finnie, president aided design software, needed in industries and CEO of the Empowerment Trust. such as building, manufacturing, infrastruc­ ture, digital media, and location services. For more information on CADD Centers of CADD is the only dealer in Florida certified Florida, call Richard Neiman, president, at to train in all five areas of Autodesk software: (954) 772–7300. For more information architectural design and drafting, civil design on programs of the Miami-Dade EZ, and land development (including survey), call EZ Director Aundra Wallace at mechanical design and drafting, graphic (305) 372–7620. information systems, and animation and visualization. Focusing Regional Training is conducted on the latest Autodesk Certified Courseware. After passing each Employment Resources step, students move on to the next plateau on EZ Resident Needs to learn even greater skills. Trainees can move on to internships at commercial firms Miami-Dade, Florida, EZ and government agencies, getting experi­ “We knew that our economic and communi­ ence in real-world applications and work ty development efforts were creating job habits. opportunities, but we needed to ensure that To fill a lively demand among companies Empowerment Zone residents were properly looking for skilled drafters and designers, trained and aware of these opportunities,” CADD refers its trainees to opportunities as explains Bryan Finnie, president and CEO of independent contractors. Many government the Miami-Dade Empowerment Trust, which projects require minority participation and administers the EZ. “That’s where this con­ most trainees from the EZ fall into that cept was developed.” category. To solve this problem, South Florida Employ­ CADD assists those who wish to become ment and Training Consortium (SFETC) and independent business people to set up the Empowerment Trust designed a program operations—providing hardware and soft­ to identify and link EZ residents to the com­ ware and assisting graduates with market­ mitted jobs in the strategic plan by market­ ing, planning, and running a business. ing SFETC services to EZ residents. The CADD helps these entrepreneurs market program featured training and employment their services to business and government opportunities specifically for EZ residents in enterprises and maintain the currency of targeted industries. their skills through ongoing technical sup­ SFETC administers $40 million in training port. CADD’s ongoing training in the EZ and employment funds and serves 18,000 produces a pool of skilled labor that these entrepreneurs can hire and mentor.

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individuals annually in Miami-Dade County. Good News Garage Gives Although SFETC operates 14 One-Stop Centers in or near EZ neighborhoods, the PreOwned Cars to Hard- trust saw its services as underutilized. Many Working EZ Commuters EZ residents qualified for SFETC programs but were unaware of the opportunities. New Haven, Connecticut, EZ In April 2000 the Empowerment Trust’s Board Barbara Fair, a resident of the New Haven of Directors authorized a scope of services EZ, needed her own car to get to work. She with SFETC for a contract to expand the thought she could handle the gas, mainte­ Career & Pathways Strategy of the EZ strate­ nance, and insurance costs on her budget, gic plan and ensure that EZ residents have but knew she could not afford the car pay­ access to available services. The contract ments. That is where Empower New Haven required SFETC to place 500 EZ residents into and the Good News Garage made a life- jobs. By joining forces with SFETC, the EZ changing difference. Fair got a preowned leveraged Federal dollars with Florida Depart­ car for free. She loves the car and her ment of Labor, Department of Children and employer loves the fact that it is no longer a Families, and other sources to provide a com­ hassle for Fair to get to work. The first recip­ plete battery of programs to EZ residents. ient of a car from the Good News Garage, Fair drove her car off the lot in January SFETC met all its objectives under the con­ 2003. tract and the next step was to involve the EZ neighborhood assembly chairs in the struc­ “We want to provide relief for EZ residents turing of the job placement process. SFETC who have transportation difficulties as a met with the assembly chairs to resolve barrier to employment,” said Althea issues concerning the monitoring of service Marshall, Empower New Haven president providers and the retention rate of EZ resi­ and CEO. “This will help them maintain dents placed in jobs. As a result of the meet­ employment and reduce absenteeism and ings, SFETC developed a request for tardiness.” proposals that would target customized The Good News Garage opened in New training for EZ residents, require the agents Haven on January 17, 2003. Operated by for the customized training to be among the Lutheran Social Services of New England, region’s approved training agents, require its activities are largely funded through a service providers to locate in the EZ where $300,000 grant received in 2002 for opera­ they will serve, require a track record of suc­ tions from the New Haven EZ. By early cessfully serving EZ residents, and state the September 2004, 92 EZ residents had number of placements to be achieved within received roadworthy used cars through the each community within EZ. program.

For more information on programs in The New Haven Good News Garage is the Miami-Dade EZ, please call EZ housed in St. Luke’s Church under the aus­ Director Aundra Wallace at (305) pices of the St. Luke’s Development 372–7620. Corporation. Other New Haven partners in the project include the departments of cor­ rection, labor, motor vehicles, and social services, as well as the Northeast Utilities Foundation. Other Good News Garage pro­ grams are located in Burlington, Vermont;

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Sturbridge, Massachusetts; Manchester, New Environmental Training Hampshire; and Hartford, Connecticut. To Provide Jobs, Shortly after New Haven received its EZ des­ Redevelopment ignation in 1999, Empower New Haven’s neighborhood committees began to consid­ Opportunities er obstacles to EZ residents in getting trans­ portation to work. After researching a Oklahoma City, Oklahoma, EZ number of programs, Empower New Haven, In an effort to reclaim contaminated land which administers the EZ, contacted the within the Oklahoma City, Oklahoma EZ’s Good News Garage program, impressed by borders, the city’s office of workforce its demonstrated past success. development will use an EPA Brownfields Job-Training Grant to prepare 110 EZ resi­ Car owners donate used vehicles to Good dents for careers in environmental remedia­ News Garage and receive a tax credit based tion. The restoration of brownfields not only on the blue book value of the vehicle. The removes community eyesores, it also opens garage then evaluates whether the vehicle up opportunities for economic development. can be made operational for less than The EPA defines brownfields as “real proper­ $1,000. Good News Garage also subcon­ ty, the expansion, redevelopment, or reuse tracts with mechanics and test drives the of which may be complicated by the pres­ cars. ence or potential presence of a hazardous The cars must pass safety and emissions substance, pollutant, or contaminant.” inspections and successful applicants must To become certified each trainee will receive have good driving records, be employed, 40 hours of instruction in both hazardous and be earning enough to maintain a car. waste operations and emergency response In April 2004, at the 30th Annual and hazardous materials training (HAZMAT). Community Development Block Grant An additional 16 hours of clandestine Recognition Day, Empower New Haven methamphetamine laboratory cleanup and 8 received a peer excellence award on behalf hours of confined space training are included of the city of New Haven and the Good in the program. News Garage. The Connecticut Community Potential trainees must be in good health, like Development Association and the city of to work outside, and be willing to work on an Hartford cosponsored this event. The award on-call basis. Many of the EZ residents accept­ recognized the EZ’s outstanding service in ed into the program can anticipate additional the field of community development. income as potential wages in the environmen­ The EZ hopes to be able to fund an exten­ tal remediation field are generally higher than sion of the program. average wages in Oklahoma.

For more information on the programs of “This is an excellent opportunity for training, the New Haven EZ, please contact Althea at no cost to the students, that can con­ Marshall of the EZ at (203) 776–2777. tribute to our community by cleaning up our environment,” says Oklahoma City Council­ woman Willa Johnson, who represents part of the EZ. “This program will add to the eco­ nomic development of our city through a well-trained available workforce,” she says.

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Councilwoman Ann Simank, whose district director of the Santa Ana WORK Center, said includes a part of the EZ, concurs, “Our city case managers at the 10 neighborhood sites has become a vibrant jewel, and many other will tailor training to each individual. “We are cities are looking to Oklahoma City for guid­ looking at the person’s overall need,” she ance. This training program will significantly said. “Our hope is that we will not only help impact the well-being of our citizens whose get jobs but make sure they can advance.” goal is self-sufficiency.” The Conservation Corps, a nonprofit organi­ For more information on the programs of the zation serving people ages 18 to 26, offers Oklahoma City EZ, contact Russell Claus at help with everything from writing a résumé (405) 297–1628. to learning English to dressing for work. The group offers one-stop shopping. “Everything is here,” said Roman. One-Stop Job and Having dropped out of high school to sup­ Education Centers Help port his family, Roman tried night school. EZ Residents Gain But his work schedule and reliance on public transportation made it difficult to get to class. Diplomas Roman’s Corps schedule includes time for work and school. A van picks him up at 6:45 Santa Ana, California, EZ a.m. and takes him to his job site. In the As he walked the streets of Santa Ana, afternoon he returns to the Corps office for California’s EZ, looking for work, Orlando class until 4:15 p.m. Fridays are devoted to Roman feared he would find himself in studies, including public speaking and com­ another dead end job. But a chance meeting puter skills. with a member of the Orange County Conservation Corps put Roman on a new Roman turned down a $12-an-hour construc­ path, one that included a college degree. tion job in favor of his $8.75 Corps job because it allowed him greater flexibility in After learning that he could work for the starting college. “He understands the impor­ Orange County Conservation Corps for mini­ tance of education and lining himself up with mum wage plus receive transportation, job a good job,” said Gaby Gonzalez, director of training, and a high school diploma, Roman Conservation Corps member development. was ready to give it a try. In August 2003 the 24-year-old Mexican immigrant used his In late summer 2003, 800 EZ residents enhanced English skills to deliver a speech began receiving free personalized job- to his fellow graduates. A college scholarship placement assistance. The zone planned to awaited him. spend $1 million for the year to offer the program to adults eligible to work. The Santa Ana EZ has established several goals, chief among them finding sustainable For more information on the programs of the jobs for 5,000 residents by 2009 and apply­ Santa Ana EZ, contact EZ Director Deborah ing for grants for training and education. The Sanchez at (714) 647–6548. Conservation Corps is one of 10 groups assisting with this endeavor. Judy Chen-Lee,

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Nojaim Brothers Market ment Zone tax benefits,” he said. Nojaim calculated the amount of wage and WOTC Helps Local Youth Learn credits available and then rolled the funds Job Skills back into the business to finance the training program. Syracuse, New York, EZ The training program includes life skills, Having started with 10 neighborhood youth, community service, and job preparedness. this private-sector job-training program now Young people in the program develop inter­ operates year-round and serves 28 young personal communication skills and learn people in the Syracuse, New York, EZ. personal responsibility. They are held Utilizing Work Opportunity Tax Credits accountable for being on time and for per­ (WOTCs), Nojaim Brothers Market has created forming specific job duties to the best of a youth workforce development program their ability. Money management and profit- that exemplifies how companies can use EZ ability—key to success in the business tax credits as real dollars to fund job-training world—are stressed. initiatives. Seeking to enhance the youth job-training For 85 years the Nojaim Brothers Market has experience, Nojaim Brothers Market invited been located in the same neighborhood, one a local media company, Clear Channel ranked among the poorest in the city’s 1990 Entertainment, to introduce program partici­ census. When Paul Nojaim—the third gener­ pants to careers in the entertainment ation to lead the market—took over the fam­ industry. The youth take career field trips and ily business he was intent on continuing his learn about careers in the music and adver­ family’s commitment to community. As he tising industries and they meet with DJs and looked around, Nojaim was struck by the recording artists. When Clear Channel spon­ number of young people in his community sors events, the young people are invited to being lost to violence and hopelessness. attend. They learn, however, that nothing is Upon learning of the neighborhood’s desig­ free. They might, for example, be asked to nation as a New York State Empire Zone (spe­ help set up and break down stages, hang cially designated areas throughout the State banners, stuff envelopes, or clean up after that offer special incentives to encourage eco­ events. These activities reinforce what they nomic and community development) and a learn in the program. Federal EZ, Nojaim realized that the tax bene­ For more information on the programs of fits from the EZ program could create a pool the Syracuse EZ, contact EZ Director Kurt of funds to support a training program for Roulston at (315) 448–8062. the market’s young employees. “We wouldn’t have had a program without the Empower-

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Job Creation, Training, and Assistance

DestiNY USA will be an 800-acre waterfront resort in the Syracuse EZ with 75 million square feet of dining, shopping, entertainment, hospitality, and recreation venues. (page 105)

A Detroit EZ grant to Operation ABLE helps to provide job skills to EZ adults. (page 93)

NuBlend Paints has created local job opportunities thanks to a Cincinnati EZ grant. (page 91)

A $300,000 Detroit EZ grant to the Visiting Nurses Association helps train 60 local residents as nurse’s assistants. (page 93)

The Work Initiative Program, funded by the Columbia-Sumter EZ, teaches marketable skills to EZ residents. (page 92)

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Job Creation, Training, and Assistance

An El Paso EZ grant helps Project ARRIBA provide employment training to EZ residents. (page 95)

The Cabell County Youth Empowerment program, funded by the Huntington-Ironton EZ, provides job training for local youth. (page 100)

The Flint RC maintains a partnership with the Mott Community College Adult Worker Program. (page 96)

The Nojaim Brothers Market uses Syracuse EZ wage credits to find a workforce development program to provide job skills and life skills to area youth. (page 105)

The Gary-Hammond-East Chicago EZ sponsored job seminars to help the owners of a new Bennigans Restaurant employ several EZ residents. (page 98)

Job Creation,Training, and Assistance 107 Spotlight on Results

SECTION 4 Families Improving With Community Services and Development SECTION 4

he Renewal Communities (RCs) The RCs do not receive Federal grants to pro­ and Empowerment Zones (EZs) vide community development services for need more than business and job local residents, yet they have been successful growth to become healthy com­ in providing these services locally. In Chat­ munities.T This is why a key principle of every tanooga, Tennessee, for example, the RC and EZ strategic plan is to promote sustainable the city of Chattanooga created a crime- community development in the designated reduction strategy by constructing two police areas. Since 1994 EZ leaders have been pro­ precincts in the RC; by receiving a U.S. viding this sustained development by helping Department of Justice Weed and Seed grant; to improve education and healthcare servi­ increasing police presence in the RC; and by ces, improve public safety, promote environ­ implementing an Officer Next Door program, mental preservation, and provide other which provides housing assistance to recruit services. police officers as homeowners in the RC.

The RCs also are committed to holistic In west-central Mississippi, the RC utilized approaches to local development. The funds made available through the Mississippi course of action, which is a key part of each Legislature to the Nissan North America RC’s tax incentive utilization plan, requires project to help construct a new workforce the RC to promote development efforts development training center and provide job- such as local crime-reduction strategies and training classes for RC residents. In 2002 the to facilitate support services for residents in city of Milwaukee adopted a zoning ordi­ such areas as childcare, afterschool care, nance to give limited use to family daycare and local transportation and to provide homes. This change allows family daycare other services that help RC residents homes to operate in the RC without board of become self-sufficient. zoning appeals approval as long as they meet certain conditions such as specific hours of The annual reports that RCs and EZs submit operation. to HUD identify many successes in providing vital community services and development This section of the publication showcases the for local residents and families. These reports successes of RCs and EZs in providing impor­ show that since 1994 the urban EZs have tant community development services for conducted 120 crime-prevention and public local residents and families. We know that safety programs for more than 350,000 resi­ you will enjoy reading these successes and dents, rehabilitated 70 local playgrounds for we hope that your community can emulate the benefit of 200,000 children, created near­ some of these successes. If you would like ly 250 K–12 school programs to assist almost additional information on any of the stories 100,000 children and young adults, and per­ in this section, call the RC or EZ directly using formed hundreds of other vital community the contact information that appears at the development services for hundreds of thou­ end of every story. sands more EZ residents.

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potential panelists and information avail­ Community able.” The show is produced at no charge at the Services and Apollo Media Center, a former abandoned movie house located on Jefferson Avenue in Development the heart of the RC. Community activists with a vision rescued the Apollo in the 1990s. Today the Apollo is a state-of-the-art New York RC Takes to community-based telecommunications facili­ Airwaves ty with a small business outreach center staffed by the Buffalo Economic Renaissance Buffalo-Lackawanna, New Corporation. Buffalo-Lackawanna RC staff held a tax incentives workshop for local busi­ York, RC nesses at the facility in March 2004. “On the day of the taping, we arrived at the studio only to learn the host had been “The Apollo Media Center is a community called to jury duty,” recalled Bonnie Kane asset in an eligible census tract,” Lockwood Lockwood, coordinator for the Buffalo- commented. “It certainly adds to the sense Lackawanna RC. “No host, no show— of connection and partnership we are build­ unless one of us was willing to take over ing to be able to use it to promote what is as interviewer.” happening and what is needed in the Buffalo-Lackawanna Renewal Community.” Reminding herself that the RC is about “mar­ keting the opportunity,” Lockwood seized Lockwood added, “We are always looking the opportunity to host the half-hour talk to increase our ratings, so if you are ever in show herself, posing questions to the sched­ town, turn on Channel 22 and you just uled guests: a local IRS representative and might catch the next episode of “Buffalo- the New York State Department of Labor Lackawanna Renewal Community Presents!” director. Lockwood’s planned one-time TV For more information on the programs appearance on government access Channel of the Buffalo-Lackawanna RC, please call 22 has now become a regular show that is Lorrie Abounader at (716) 842–6923. taped monthly and runs twice a week. The show, “Buffalo-Lackawanna Renewal Community Presents,” features tax and labor “Invest in Camden Day” experts, representatives from businesses eligible for RC tax incentives, activists with Develops Business community-based organizations, and other Community Following guests.

“We have discussed everything from Weed Camden, New Jersey, RC and Seed programs to new daycare centers “If we had held ‘Invest in Camden Day’ 2 and renovated buildings in the downtown years ago, we could have held it in a phone core,” comments Lockwood. “We even fea­ booth,” says former New Jersey Governor tured a HUD representative who discussed James E. McGreevey. “Today each of you is Federal programs and support available from part of a standing-room-only crowd of devel­ the local office. There is no shortage of opers, architects, lenders, and community leaders who want to know, ‘How can I get in on the action?’” And action there has been, 112 Spotlight on Results SECTION 4

with more than $1.2 billion in new develop­ Recent milestones in Camden’s RC include a ment having been pledged or underway in December 2003 announcement that Cherokee the Camden RC. Camden planned to invest $1 billion to create a 450-acre mixed-use community in the city’s “For the past 2 years we have been laying Cramer Hill section, with retail space, a golf the foundations to build a better New Jersey. course, and 5,000 new homes, including There is no better place to see what our suc­ affordable housing. The new retailers will be cesses mean than right here in Camden,” eligible for such Camden RC tax incentives as McGreevey told some 500 attendees during the RC wage credits, $12 million in Com­ the “Invest in Camden Day” conference held mercial Revitalization Deduction allocations, at the city’s Tweeter Center in January 2004. Increased IRS Section 179 Deductions, and Sponsored by the Economic Recovery Board zero-percent capital gains provisions on the for Camden, the New Jersey Economic sale of RC assets. “Camden is exceeding all Development Authority, the Chamber of our expectations and providing a model for Commerce of Southern New Jersey, and the urban redevelopment that we can reproduce Camden Redevelopment Agency, the confer­ throughout the State,” McGreevey said. ence was designed to help developers, For more information on the programs of the lenders, business owners, and nonprofit organ­ Camden RC, contact Darrell Staton of the izations explore the many ways to invest in RC at (856) 365–9061. Camden. Attendees heard how the Camden city government was revamped to aid redevel­ opment efforts and learned about RC tax Chattanooga Experience incentives and other resources available to support and leverage private investment. Puts RC on Fast Track to Development The centerpiece of Camden’s renewal is the State’s commitment of $175 million to attract Chattanooga, Tennessee, RC private investment, create jobs, and energize the city’s economy. That initiative generated Fueled by broad citizen participation, a city­ $135 million in private investments that will wide vision, and aggressive leadership, “The bring new offices, restaurants, and retail to Chattanooga Experience” has been heralded the waterfront. “They will be joining a solid as one of the best public-private partnerships. list of corporate neighbors who have been Since 2002 the Chattanooga, Tennessee, RC part of Camden’s history and will be part of has been a key component in the city’s Camden’s future. Companies like L-3, a leg­ renaissance. acy GE company with a long-time presence Visioning and planning for the city’s revival on Camden’s waterfront, and Campbell began in the early 1980s with a plan that Soup, which has been investing in this great focused on development of the underutilized city since 1869,” said McGreevey. “And that’s riverfront. Leading the city’s recent down­ just the beginning. Drawn by this new sense town development efforts is the $120 million of purpose, other employers are moving into 21st Century Plan, which includes expansion the city of their own accord.”

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of the Tennessee Aquarium and redevelop­ investment in 100 new and renovated hous­ ment of the north and south shores of the ing units, creation of a mile-long greenway, Tennessee River, among other things. Of and a planned $100 million investment in the funds, $69 million came from the pub­ commercial development. lic sector (80 percent from a hotel-motel tax paid by visitors to the city) and $51 In the Southside, construction of a new ele­ million from the private sector. mentary school, renovation of a high school, new housing developments, and Where the 21st Century Plan ends, the RC redevelopment of a major brownfield site begins. Since its inception, the RC program have spurred commercial growth. Seven has awarded $24 million in Commercial projects received CRD allocations. Revitalization Deduction (CRD) allocations to developers of 17 construction and rehab “The RC incentive made the price and the projects, with a 5-year projected return on project worthwhile,” says John Clark, one of investment of 600 new jobs and more than four developers that renovated a 1924 for­ $112 million in building costs and employee mer bread factory, turning it into residential wages. and commercial lofts. In addition to the CRD, owners took advantage of the PILOT “Through the Renewal Community program, (Payment in Lieu of Taxes) program, which Chattanooga has been able to put in place allows developers of new housing in the tools that are resulting in new investment in downtown area to lock in on property taxes our city’s core and creating jobs for our citi­ for 12 years. zens,” says Mayor Bob Corker. In addition, Corker created The Enterprise Center, which In Alton Park demolition of one of the oversees 14 federally funded programs largest public housing complexes is making (including the RC) aimed at technology and way for a $35 million HOPE VI develop­ business development and job growth. ment. Some 400 new single-family and multifamily homes and an adjacent First Tee In the central business district, business golf course are fueling commercial develop­ owners are participating in a Main Street- ment here. The city-initiated brownfields inspired revival of downtown. Eight building program seeks Federal support for reclaim­ projects—ranging from construction of a ing these hazardous sites for future com­ hotel to renovation of a historic theater— mercial development. A CRD allocation was have received CRD allocations. recently awarded for the development of warehouses on land adjacent to brownfields. “It certainly allowed me to pursue a bigger project than I otherwise would have been “Chattanooga has been very successful in able to do,” says Morgan Adams, an attor­ using whatever Federal resources were avail­ ney who is renovating a former liquor store able to leverage private investment,” said and boarding house into law offices, apart­ City Councilman Ron Littlefield. “Anytime ments, and retail development. “There’s no you restore health to a part of your commu­ question in my mind that the development nity, it has a positive effect elsewhere.” of my building, which is in a rundown row, will make all the other projects on the block For more information on the programs of viable,” he says. the Chattanooga RC, contact RC Manager Maria Noel at (423) 425–3770. In the Martin Luther King community there has been a major expansion of the University of Tennessee at Chattanooga, a $28 million

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Neighborhood Rallies will have added some 200 new jobs to the community. To Create Health and Education Center For more information on the programs of the Chicago EZ, contact Managing Deputy Director Jarese Wilson at (312) 744–7870. Chicago, Illinois, EZ The Austin Wellness and Educational Center owes its existence to the surrounding com­ Land Development Fund munity. From groundbreaking to ribbon- cutting, local residents helped shape nearly Provides Much-Needed Lift every aspect of this new facility in the to Commercial Corridor Chicago EZ. Columbus, Ohio, EZ With a $2.5 million EZ grant, Westside Health Authority set out to construct a new East Main Street is getting a facelift with funds healthcare facility in the Austin community, from the Columbus, Ohio, EZ Land Develop­ a traditionally underserved area on the west ment Fund. Projects comprising more than side of Chicago. From the outset, the com­ 47,000 square feet and costing well over $5 munity was involved. Area residents raised million are designed to spruce up this decay­ $60,000 for the center through grassroots ing, major corridor. fundraising events such as Friday night fish The EZ Land Development Fund is a targeted fries and a gospel fest. Most impressively, financing pool created to encourage com­ more than half of the participating contrac­ mercial and housing investment and redevel­ tors were neighborhood residents. opment projects in the 14-square-mile African-American contractors comprised Columbus EZ. The Columbus Compact 55 percent of the total, and 33 percent of Corporation, which administers the those contractors were from the neighbor­ Columbus EZ program, established the fund. hood. For many contractors, the center’s This financing pool provides gap financing— development was their first commercial dollars that reduce project risk and attract project. The project timeline was extended other hard dollars—in order to increase a to provide technical assistance, support, project’s viability. The fund is flexible enough and training to the less-experienced con­ to accommodate grants to nonprofit organi­ tractors. The result was that 27 local resi­ zations and loans and/or equity investments dents were hired into various union trades to nonprofit and for-profit entities. It seeks to and 11 residents from Westside Health fund those projects with positive community Authority’s ex-offender employment project impacts such as redevelopment of idle land; were hired as union apprentices. creation of jobs; creation of new business The two-story 28,500-square-foot Austin activity and services; improvements in the Wellness and Educational Center houses a urban streetscape that encourage business clinic that provides a range of primary health- redevelopment, pedestrian traffic, and neigh­ care services, including pediatrics, family and borhood vitality; and improvement in the internal medicine, and an urgent-care center. quantity and/or quality of housing stock. The center operates a 16-station kidney dia­ With $400,000 from the EZ Land Fund lysis center for patients, many of whom used Development Fund, the Central Community to travel to a nearby suburban hospital for House was able to break ground in March treatment. When fully operational, the center

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2004. When complete, this 15,000-square- For more information on the programs of foot, $2.6 million facility will house a daycare the Columbus EZ, contact CEO and Presi­ center, community meeting space, and dent Jonathan Beard, Columbus Compact Central Community House offices. The Corporation, at (614) 251–0926. organization will be able to consolidate sev­ eral area facilities into this one building at 1162 East Main Street, adjacent to the new Clinica Doctora Elena East Central Family Health Center. There will Mixes Medicine With be enough space for Central Community House to expand its afterschool programming Love in Detroit EZ and provide increased support, resources, and services to parents. The facility will assist Detroit, Michigan, EZ the organization with its mission—helping When Elena Perry-Thornton came to the people reach their full potential, become United States from Panama in 1981, she self-supporting, and live cooperatively with dreamed of providing affordable quality others. healthcare to people in need. Today, Perry- Thornton operates Clinica Doctora Elena at The EZ Land Development Fund provided 725 Junction Street in the heart of the site assembly and land banking for the new Detroit, Michigan, EZ. Roughly 90 percent Salvation Army facility at 966 East Main of her patients are Hispanic and many speak Street. Situated on 1.2 acres of vacant land, only Spanish. “I got into the medical field so this 20,000-square-foot building will serve as that I could help people. That’s what drives the organization’s headquarters. It will me,” said Perry-Thornton, who is affection­ include a worship center, space for the deliv­ ately called Dr. Elena by the 1,800 families ery of social services, and features such as a that visit her clinic. kitchen pantry. Groundbreaking was held in late spring 2004. Perry-Thornton’s vision, determination, and personal savings carried her far. But $88,000 Before the June 2004 groundbreaking of this and valuable business counseling from two new transit center, the EZ Land Development EZ programs—One-Stop Capital Shop and Fund handled site assembly and predevelop­ Detroit Community Loan Fund, run through ment activities, such as site demolition. The Shorebank—were instrumental in helping Near East Transit Center will feature 12,000 her realize her dream. The result has been square feet of retail and office space. With the transformation of a homely storefront, 40 to 50 employees, the center will house a ravaged by years of vandalism and neglect, Central Ohio Transit Authority (COTA) cus­ into an attractive, state-of-the-art medical tomer service department, a medical facility, facility. and a financial institution. Bus stops will be located in front of the center on both Shortly after opening, Perry-Thornton and Champion Avenue and East Main Street. A her staff began identifying ways in which the financial partnership between the Columbus clinic could better serve the community. EZ, the city of Columbus, COTA, the Ohio They started several education and support Department of Transportation, and others groups for diabetics, pregnant women, and generated $2.7 million for this project. people with weight problems. They adjusted clinic hours to accommodate patients in the

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evenings. The clinic is open from 5 to 10 and a local church are not taking the news p.m., Monday through Friday, and from 9 sitting down. a.m. to 2 p.m. on Saturdays. Perry-Thornton also has a Web site, www.clinicadraelena. You might say these kids have “jumped to com, where visitors and patients can obtain it,” by participating in the Detroit EZ Healthy information in both English and Spanish. & Smart signature program—Team Jump Rope. This program is a Mo’ Better Health, “There is a real big need for accessibility and Inc., offering 130 EZ youth with constructive for doctors who speak Spanish in this com­ and healthy afterschool activities and week­ munity,” says clinic office manager Carolina end workshops. A $47,000 EZ Innovation Bernal-Gutierrez. “People can come after Fund grant has helped make Team Jump work, they can take their children without Rope possible. having to keep them out of school, and we’re in the neighborhood, so there is no “Team Jump Rope is a new approach to low­ transportation problem.” ering the number of inactive youth in our community, while exposing them to a fun As a result of her work, then-Michigan way to get in shape,” says Velonda Governor John Engler awarded Perry- Thompson, Mo’ Better Health executive Thornton the 2001 Governor’s Award of director. Excellence for improving preventive care in the ambulatory care setting. “While Dr. Elena The teams meet two to four times weekly put up a lot of her own money to rebuild the to train youth in skills for competitive rope clinic facility and get the place off the jumping. It’s healthy, fun, promotes team­ ground, she needed nontraditional funding work, friendships, and participants stay fit, for supplies, equipment, and other essen­ says Thompson. tials,” says Van Adams, EZ Development Hunter Hicks, a 9-year-old student at Corporation program manager. “We were Jameison Elementary, participates because more than glad to help since no one else is she just “likes it. My specialty is speed,” says doing this kind of work in this neighborhood. Hunter. “I’ve won awards—two first place We are delighted that the team we put and one second.” together made this venture work,” he adds. Her grandmother, Loretta Binion, is very For more information on the programs of proud of Hunter’s work with Team Jump the Detroit EZ, contact Executive Director Rope and with the As on her report card. Larry Givens at (313) 872–8050. “Hunter always liked sports,” said Binion, “but she often would shy away from them. She has the sickle cell trait and used to have Empowerment Zone pains in her legs. The rope jumping has been Youth Jump to It good for her. After she started with the team, the pain disappeared.” Detroit, Michigan, EZ In 2003, 10 Team Jump Rope participants Detroit’s dubious distinction—being voted qualified as Michigan State Champions and the fattest city in the country by Men’s were honored at a Jump Rope for Heart activ­ Fitness magazine—may have stopped some ity. They were among some 40 Detroit-area Detroiters in their tracks. But an energetic youth whose enthusiastic energy and skills group of young students at four Detroit ele­ earned them more than $500. The funds mentary schools, two community centers,

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were donated to the American Heart sports and technology to build character Association. in youth, THINK DETROIT aims to provide equal opportunities for boys and girls; foster For more information about the Team Jump a positive family environment; provide safe, Rope program, contact Mo’ Better Health clean fields and facilities; and pay consistent Executive Director Velonda Thompson at attention to detail. (313) 571–7600 or visit the Mo’ Better Health Web site at www.comnet.org/ The THINK DETROIT youth soccer league, mbhinc. For more information on the pro­ which began with 25 children, had managed grams of the Detroit EZ, contact Executive successful growth but had not been capable Director Larry Givens at (313) 872–8050. of creating a separate girls league until June 2002 when it received the EZ grant to estab­ lish a program for females ages 7 to 18. The EZ-Funded Soccer group’s recreation league now includes all- Program Inspires girl soccer teams in four divisions: Under-8, Under-10, Under-12, and Under-14. Detroit Youth The nonprofit also works closely with the Detroit, Michigan, EZ Detroit Public Schools to offer girls soccer at Since 1997, when THINK DETROIT began five high schools. In summer 2003 THINK offering soccer to children in the EZ, it had DETROIT held tryouts for two select teams of been unable to sustain a league specifically girls in the Under-18 and Under-15 divisions. for girls. With the help of a $47,000 EZ These teams travel to nearby communities and Innovation Fund grant, this nonprofit sports compete at a higher level. As team members, and technology organization now brings the the girls learn to be on time for games and world’s most popular sport to 650 girls practices, work together, and compete with each year. class and dignity. Thanks to the EZ Innovation Fund, THINK DETROIT is looking forward to Patricia Frayre is one of the league’s many having its first girl receive a soccer scholarship success stories. Despite being diagnosed with to college. kidney stones in late 2002, Frayre, a 15-year- old Western High School student, was a for­ For more information about THINK ward and leading scorer on Western’s squad. DETROIT’s athletic programs, contact The following June, after a 2-day tryout with Frederick Hunter, athletic director, at THINK DETROIT, Frayre joined 18 other (313) 833–1600. For more information members of the Under-18 Detroit Turbo on the programs of the Detroit EZ, please team, an elite travel squad for players with contact Executive Director Larry Givens at advanced skills. (313) 872–8050.

THINK DETROIT gives EZ youth the opportu­ nity to participate in afterschool sports Massachusetts RCs leagues and computer classes. Its first sum­ Partner To Leverage mer baseball season included 120 children. Today THINK DETROIT serves more than Resources Development 4,000 girls and boys annually in baseball, softball, soccer, and basketball. Nearly 1,000 Lowell, Massachusetts, RC children take part in leadership development If two heads are better than one, can the and computer training courses. By using same be said about RCs? In the case of the

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Lowell and Lawrence, Massachusetts, RCs the ● Developing a training curriculum on RC answer is a resounding yes. tax incentives, effective business develop­ ment techniques, and methods to foster Lowell and Lawrence, located in the coordination among business programs to Merrimack Valley, share a common history, maximize their impact in the RC. economic and human service challenges, business and industry councils, and political ● Implementing two, daylong training ses­ representation. In 2002 the two RCs com­ sions for economic development and bined resources to improve their probabili­ workforce development staff, relevant ties of success and achieve economies of human service and training providers, and scale. “Bringing the two communities community-based agencies. together brought more exposure to the ● programs and helped us get the word out Designing and implementing mechanisms more effectively,” says Colin McNiece, for­ to coordinate business and workforce mer director of economic development for development efforts. the city of Lowell. ● Developing three case studies for the The first phase of the strategic plan for this service-delivery system and the delivery dual-RC alliance included developing a tax of customized business development incentive utilization plan to serve the diverse incentives. needs of residents, businesses, and area “The RC incentives put a number of new stakeholders. The RCs engaged the residents tools in our toolbox and this next phase will of the entire Merrimack Valley in the make sure that we, and our partners, will process. They also designed a survey to know how to use them,” said McNiece. solicit the opinions of local businesses regarding their RC designations and the For more information on the programs of the accompanying Federal tax incentives. Lowell RC, contact Director of Economic Development Brian Conners at (978) A product of the RCs’ Future Trends advisory 970–4276. committee was the filing of congressional Bill HR 4096 IH: Renewal Communities Expansion and Technical Improvements Act of 2004. The New Business Incubator bill would amend the Internal Revenue Code of 1986 to expand the incentives that RCs can To Provide Culturally offer. Future Trends includes representatives Specific Childcare from the Office of the Chancellor, University of Massachusetts, Lowell; Regional Development Minneapolis, Minnesota, EZ and Commercial Venture Development; the For new immigrants, finding affordable, cul­ Massachusetts Office of Business turally specific childcare is a major challenge. Development; the Lowell Small Business This is particularly evident in the Phillips Assistance Center; and the Office of neighborhood in south Minneapolis, Congressman Martin T. Meehan. Minnesota, where the immigrant population Phase two of the RCs’ strategic plan will has soared. With the help of nearly $1.4 mil­ include: lion from the Minneapolis EZ, the local YWCA has developed a multicultural childcare busi- ● Designing a workforce development com­ ponent to match RC residents with new training and employment opportunities.

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ness incubator to serve this ethnically diverse Northwestern, the partnership approached neighborhood. the Minneapolis EZ Governance Board asking it to provide the last $379,000 needed to Data from Census 2000 show that the popula­ move development of this $3.5 million facili­ tion of the Phillips neighborhood grew by 15 ty forward. In March 2004 the board agreed. percent during the 1990s. Dig deeper into the figures and one finds a sea change in the “This program could have never been possi­ neighborhood’s ethnic composition. The over­ ble without the initial investment made by all increase in residents occurred despite a 19­ the Minneapolis Empowerment Zone,” Hite percent drop in the European-American said. “The EZ grants demonstrated great population and a 45-percent decline in the foresight, and we were able to leverage the Native American population. At the same time, EZ contribution to match their $1 million. the number of Latinos living in Phillips rose by The EZ’s ongoing support means we can 558 percent, and the combined numbers of proceed with our plans and have this pro­ people of other races, including East Africans, gram in operation before the end of 2004,” Somalis, and Asians, residing in the neighbor­ she adds. hood grew by 852 percent. The YWCA Child Care Business Development “These census figures—in addition to a 1998 Center will assist in developing childcare survey of parents in south Minneapolis con­ businesses by providing access to high- ducted by the South Side Child Care quality childcare space at no initial cost. Collaborative—demonstrated the need for The organization also brings to the table its more childcare to serve our growing immi­ expertise in the successful operation of child- grant population,” says Nancy Hite, CEO of care businesses in south Minneapolis, an the Minneapolis YWCA, an organization that understanding of resources for training and was then providing multicultural childcare in support available in the area, and a commit­ three area locations. ment to the development of childcare that respects children, cultures, and caregivers. In 1998 the YWCA received a $778,500 grant from the Minneapolis EZ to establish a For more information on the programs of multicultural childcare business incubator in the Minneapolis EZ, contact Director the proposed Great Lake Commercial Center Jonathan Palmer at (612) 673–5016. (the former Sears complex along Lake Street). When the development plan fell through in 2001, the YWCA turned to EZ Funding Helps Abbott Northwestern Hospital in the Phillips Programs Bring Students neighborhood, which was looking for an onsite childcare center for its employees. The Back to School two combined efforts and Abbott Northwestern agreed to provide free space Minneapolis, Minnesota, EZ for the childcare incubator serving up to Convincing teens and teen parents to pursue 117 EZ children. a high school diploma is a challenge, but one to which the Minneapolis, Minnesota, In 2001 the Minneapolis EZ awarded an EZ is committed. Two recent EZ grants total­ additional $211,500 to the incubator proj­ ing $350,000 have substantially increased ect, provided the partnership could match the number of local teenagers looking for­ the combined $1 million in EZ funds. After ward to graduation day. raising more than $1 million from the private sector, including $750,000 from Abbott 120 Spotlight on Results SECTION 4

More than 100 students have enrolled in the school’s positive climate allows students to Broadway Teen Parent Program in north improve their ability to read, write, and Minneapolis, which began in January 2003. listen—skills that not only help them earn “We knew there were many teen parents their diplomas, but prepare them to be suc­ who had dropped out of school and we cessful at other educational institutions, in needed this program to reach out and bring their jobs, and in personal relationships. them back in,” says Mary Pat Sigurdson, a teen-parent specialist for the Minneapolis “This new building lets young people see Public Schools. “The school district didn’t that education is valued. It makes a difference have the money. A 2-year grant of $175,000 in their behavior and attendance,” says from the Minneapolis Empowerment Zone Chrislee Jacobs, a teacher at the school. was the first funding we received, and it For more information on the programs of the helped us attract more than $940,000 in Minneapolis EZ, contact Director Jonathan additional funding.” Palmer at (612) 673–5016. For teen parents like Jennifer Vargas, Kristal Fineday, Amanda Stroud, and Rachel Nitschke, the Broadway Teen Parent Program New Jersey Renewal has not only helped them earn a diploma, it Community Applies also has enhanced their life skills, introduced Holistic Approach to them to the business world, and provided a choice of internships at 15 sites. Development

“I never had a job before,” Vargas says, “and Newark, New Jersey, RC this program helped me learn how to create a The city of Newark approaches urban renewal budget for the living expenses I need to sup­ as a complex web of needs and resources. By port my kids. I enjoyed computer training and being attentive to the specific goals of resi­ learning how to provide good customer serv­ dents, business owners, and the local govern­ ice.” Following a successful internship, she took ment, they can better match up the many a part-time job with Sun Country Airlines. public and private partners and resources “I was not much of a ‘people person,’ but I needed for successful urban renewal. This holis­ learned how to keep a good attitude at work tic approach seeks to balance and harmonize and to build relationships,” Stroud says of her the interests of the commercial districts and internship at the North Community YMCA. In those of neighborhoods alike, emphasizing 2003 she graduated with a high school diplo­ business opportunities and strategies that ma and now has a paid position at the YMCA. employ Newark residents, create profit for “I was able to get my own apartment and can investors, increase municipal revenues, and now manage my bills,” Stroud says. enhance overall development throughout the city. Another $175,000 grant, this one to the Plymouth Christian Youth Center’s Capri Newark was designated a HUD RC in January Alternative High School and Neighborhood 2002 and, according to Richard A. Monteilh, Center on West Broadway in North Min­ Newark’s business administrator, “The RC tax neapolis, will help renovate the organization’s incentive package has had a very positive facilities. Under a contract with the Min­ impact on the city’s economic development neapolis Public Schools, the Capri school strategies. Companies that are doing business works with junior- and senior-high youth with the city or are looking to do business who have been unsuccessful elsewhere. The

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with Newark are very excited about the RC Citizens’ Television program and its benefits.” Promotes Successes The city has been working hard since in Connecticut EZ 2002 to promote RC benefits and so far the approach seems to be effective. In New Haven, Connecticut, EZ 2004 a new shopping center and a new subsidized low- and moderate-income Simply put, Empowered Voices is a weekly cel­ housing development were opened on a ebration of accomplishments in the New major neighborhood commercial corridor. Haven, Connecticut EZ. This 1-hour, prere­ Another retail complex, anchored by corded show has been airing each Friday Home Depot and with an additional evening since March 2003 on a local public 30,000 square feet of retail space, is being access channel, Citizens’ Television. Hosted built with the help of Federal and State by Tom Ficklin, director of marketing and grant money for planning, acquisition, communications for Empower New Haven, and site remediation. The Home Depot the program reaches a majority of the local project will bring approximately 200 new cable system’s 100,000+ homes. jobs to the area. A new state-of-the-art “The face of Empower New Haven is that of regional call center for MBNA will employ our residents,” says Empower New Haven’s an additional 1,500 people from the RC acting president and CEO Althea Marshall. and surrounding communities. “It has been a blessing to depict the Em­ In another area is a 100+ acre redevelop­ power New Haven family and the real-life ment area that stitches together the James uplifting drama of the Empower New Haven Street Historic District and its surrounding story via this community medium of public neighborhoods into a vibrant downtown access broadcast.” community. This project includes 6,000 While saluting the many residents who have housing units and nearly 2 million square taken advantage of EZ programs and initia­ feet of office/retail space. Also located tives, the show presents local vendors and downtown are two historically significant community partners as approachable and buildings—a department store and adjacent ready to help residents achieve individual or office building—which are being adapted family financial independence. Empowered into luxury loft rental apartments with Voices showcases EZ residents who have: 100,000 square feet of ground floor retail space. Another large historic preservation/ ● Participated in the Individual Development adaptation project is the conversion of a his­ Account Homeownership Program. toric downtown office building into luxury ● apartments with a health club, business Purchased homes via the Loan to Grant center, lounge, and bowling alley. Homepower Program.

● For more information on the programs of the Driven cars due to the partnership with Newark RC, please contact RC Coordinator Lutheran Social Services/Good News Angela Corbo at (973) 733–4331. Garage Program. ● Attended Gateway Community College through the Career Ladders Partnership.

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● Secured employment due to Empower provided a $500,000 loan to help expand the New Haven’s partnership with Support Pregones Touring Puerto Rican Theater. Under and Training Result in Valuable Employees the terms of the agreement, the loan may be (STRIVE). converted to a grant in 2018 if Pregones maintains its mission. ● Started a business through the business power technical assistance initiative. Located at 571 Walton Avenue near 149th Street, the 120-seat theater is expected to ● Received a job upgrade via the customized open in June 2005 and will be a welcome training initiative. addition in a neighborhood widely recog­ nized as a burgeoning cultural center. The Given the variety of initiatives it has under­ loan from BOEDC, which administers the way and audiences it needs to reach, Em­ Bronx portion of the New York EZ, will go power New Haven and Citizens’ Television toward the purchase and renovation of an developed a second hour-long program that adjoining warehouse at 575 Walton Avenue. airs on Sunday afternoons. This weekly show features press conferences, partner annual “We’re excited about what this means for the meetings, EZ resident graduations from part­ overall Bronx economy,” says Bronx Borough ner programs, community forums, and President Adolfo Carrion, Jr. “Not only will Empower New Haven neighborhood celebra­ the new Pregones Theater put people to tions. work, but also its location—situated just 5 minutes from Manhattan and a block from The Sunday broadcast captures events and the NYC Transit System—guarantees that milestones in the community. These events many visitors of all backgrounds will come to have included the mayor of New Haven and experience the rich culture and heritage of representatives of the U.S. Congress one of the city’s largest ethnic groups.” addressing an anti-predatory lending initia­ tive, the earned income tax credit program, Under the artistic and administrative direction an emergency home repair program, and of Rosalba Rolon, Alvan Colon Lespier, and Federal EZ tax incentives. Jorge Merced, Pregones Touring Puerto Rican Theater has distinguished itself as a specialist in For more information on the programs of the the production of Hispanic plays and perform­ New Haven EZ, contact Acting President and ances. “This funding marks a major milestone CEO Althea Marshall, Empower New Haven, in our 15-year history of providing residents at (203) 776–2777. from across the city and tourists alike with an affordable way to access cultural, artistic, and educational events,” says Rolon. “The Bronx EZ Assists $500,000 loan will allow us to expand on Performing Arts Theater those offerings to ensure that Pregones contin­ ues on its path of providing first-rate perform­ in Heart of Cultural ances for everyone to enjoy.” Corridor For additional information on the programs of the New York EZ in the Bronx, contact New York, New York, EZ President Rafael Salabarrios, BOEDC, at (718) In an effort to create new jobs, increase 590–6252. tourism, and enhance the community’s cul­ tural offerings, the Bronx Overall Economic Development Corporation (BOEDC) has

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New York EZ Funds testifies to the many great athletes who have competed in the sport’s various National Track & Field disciplines. Hall of Fame Over time, the sports complex stands to become internationally recognized as one of New York, New York, EZ New York’s most prominent cultural treas­ The transformation of an underutilized mili­ ures. “This project further reinforces Upper tary installation into a monument to the Manhattan’s stature as a primary destination sport of track and field is serving as an eco­ for richly diverse cultural attractions and nomic engine for Washington Heights, events,” says Kenneth Knuckles, former CEO New York, and its surrounding communi­ and president of UMEZ. ties. The Upper Manhattan EZ Corporation (UMEZ) Development Corporation, which A highlight of the Hall of Fame is a vast glass administers the Manhattan portion of the structure on which the names of all 197 New York EZ, helped bring the National inductees are etched. The displays also fea­ Track & Field Hall of Fame to Washington ture a rich blend of photos and memorabilia Heights with a $1.8 million grant. The that include Mal Whitfield’s Olympic gold multiuse facility stands as a jewel in the medal, Steve Prefontaine’s uniform, Wilma center of this diverse, largely Hispanic com­ Rudolph’s singlet, and a painting of the 1936 munity. Located in the remodeled Armory Olympic long jump award ceremony honor­ building, the facility includes a fully func­ ing Jesse Owens. tioning community center. Other highlights include an interactive video It took 3 years after USA Track & Field in the gallery titled “What Makes a awarded the Armory the privilege of hous­ Champion” that lets visitors interview elite ing its Hall of Fame collection—previously athletes and get responses and advice direct­ located in Butler, Indiana—before the facili­ ly from them. Other displays and exhibits ty opened. The Armory is an ideal setting showcase the rich and dynamic history of for the Hall of Fame because it is already this great sports discipline. the Nation’s most active indoor track and For more information on the programs of field center. Armory Foundation President the UMEZ, call Chief Administrative Officer Norbert Sander notes, “Through our func­ Marion Phillips, New York Empowerment tion as a track and field center, we’re Zone Corporation at (212) 803–3239. already providing a home for young people vying to become champions.”

The National Track & Field Hall of Fame Abandoned EZ-Based brings the history, politics, physiology, Schools Become health benefits, and technologies of track and field to life. From interactive experi­ Community Centers ences that use technology to measure ath­ letic capabilities and predict potential to Oklahoma City, Oklahoma, EZ exhibits honoring such greats as Jesse Once the heart of their neighborhoods, Owens, Jim Ryun, and Jackie Joyner Kersee, two vacant schools are being transformed the Hall of Fame pays tribute to the inclu­ into community hubs that will provide cul­ siveness of the sport. The Hall of Fame tural, recreational, and educational oppor­ chronicles the annals of track and field and tunities for residents of the Oklahoma City, Oklahoma, EZ. For nearly a decade, ever 124 Spotlight on Results SECTION 4

since the city received an EC designation, Authority. Phase III involves the completion of the development of multiservice community the school building as a community center. centers has been a top priority. The Page Woodson School, at NE Sixth and In 2003 the city received EPA funds to design High, is a 3-story, 88,000-square-foot building community reuse plans around three with historical significance. Abandoned and Superfund sites within the EZ’s borders. The declared surplus by the Oklahoma City Public sites, dormant for at least a decade since Schools, the school site housed the first segre­ their remediation, are in an area that has gated African-American high school from the continued to experience a decline in value 1920s to the 1950s. The site is adjacent to and services. The EZ established a special infill housing programs by Oklahoma City, project steering committee in 2003 to focus Oklahoma County, the Urban Renewal on this area, which it called the Eastside Authority, the Oklahoma Housing Authority, Reinvestment Area. and several area churches. Stakeholders plan to reinvest in the site to preserve its cultural signif­ Following a series of community meetings icance and transform it to an African-American and design workshops, two abandoned cultural center and museum. school buildings, designated as brownfields, joined the list of redevelopment opportuni­ Preliminary plans involve renovating the ties for the Eastside Reinvestment Area effort. 1,500-seat auditorium for use by the Black Both buildings are located in a predomin­ Liberated Arts Center and Ambassador’s antly African-American area that has unem­ Choir, creating a Museum/Archive and ployment and poverty rates that are twice Research Laboratory for Langston University, the national average as well as below- converting the cafeteria to a soul food median reading and math test scores. kitchen, and renovating the Olympic-sized swimming pool and gymnasium for com­ The Truman School Building, at NE 13th munity use. The third floor will contain Street and Kelham, emerged as the most extended-stay lodging for use by local arts appropriate location for the community cen­ agencies, artists, and residents of the adja­ ter. Its location will allow maximum commu­ cent University of Oklahoma Health Sciences nity access to the social and health services Center. provided by the city and State. In addition, the center will provide afterschool homework For more information on the programs of the clubs, mentoring, job training, and job search Oklahoma City EZ, contact Russell Clauss at services. (405) 297–1628.

The Truman School site is land-rich and the first phase of the project includes infill housing EZ Focuses on Brownfields development to the north and south. The Oklahoma City Urban Renewal Authority will Economic Development provide adjacent lots for infill housing develop­ Potential ment. The Woodworth Foundation is provid­ ing $100,000 as startup capital and MetaFund Oklahoma City, Oklahoma, EZ will provide more than $250,000 in Phase I Once home to oil-processing facilities, this construction financing. Phase II includes a old industrial corridor in the Oklahoma City, Targeted Brownfields Assessment of the Oklahoma, EZ is ripe for change. Location Truman School building by the U.S. Army and circumstances have combined to make Corps of Engineers and acquisition of the the brownfields surrounding Reno Avenue a remaining infill lots from the Urban Renewal

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prime target for redevelopment. The corridor Order in the Court: Teen is strategically close to transportation net­ works. Not only does it parallel active short- Legal Program Tries and line and major railways, it sits at the junction Teaches of two major Interstates: I-35, a primary NAFTA route and I-40, where travelers and Philadelphia, Pennsylvania/ truckers rest and refuel. Camden, New Jersey, EZ When asked by city planners what their vision Truancy, lateness, disruption of class, gum is for investment in this area’s future, residents chewing, disrespect toward staff and and businesses emphasized the corridor’s geo­ peers—these are all misdemeanors for graphic and historic prominence. The indus­ which youth may be held accountable by trial corridor, noted respondents, is the city’s a jury of their peers. With an initial grant front door and currently makes a poor first of $60,000 from the Philadelphia EZ, Teen impression on visitors. With the American Court has been handing down verdicts at Indian Cultural Center set to open to the cor- Kensington High School since 2000. ridor’s south and with the Bricktown enter­ Teen Court functions as both an alternative tainment district to the west, Reno Avenue sanction system for young offenders and a will need to accommodate at least 1,500 civic-responsibility awareness program. Its additional vehicles per day. Major revitaliza­ goals are to reduce delinquency and violence tion efforts are gaining momentum through­ among youth, encourage positive behavior, out the city as its centennial approaches and help students understand the legal system in 2007. and the values that underlie the laws of society. Respondents pointed out that in addition to “The Teen Court program is empowering the accommodating and enhancing tourism, the future generation of the EZ by familiarizing corridor could become a jobs center. Full uti­ teenagers with how the justice systems lization of the area—about 250 acres total— works, encouraging their respect for others, could accommodate at least a million and providing them with new skills to resolve additional square feet of commercial and problems,” said Eva Gladstein, executive industrial facilities and support hundreds of director of the Philadelphia EZ. new jobs in the EZ. Offenders in grades 10 to 12 are tried and sen­ Given all these influences, change in the tenced in a Teen Court by a judge and jury of Reno Avenue corridor is inevitable. their peers. Assisted by teachers and law stu­ Oklahoma City plans to make use of the dents from Temple University, youth volunteers EZ’s tax incentives (wage credits, low-cost play the roles of prosecuting and defense bonds, reduced capital gains, and attorneys, clerks, bailiffs, and managing board increased deductions, among others) to members and conduct trials as in real life. help ensure that the working traditions of this important area are integrated with the During the first 2 years, 40 students partici­ future visions for the entire Oklahoma City pated and heard 79 cases ranging from tru­ community. ancy to uniform violations, hall walking, profanity, and class disruption. The sentences For more information on the programs of meted out by the jury varied from suspend­ the Oklahoma City EZ, contact Russell Claus ing the offenders from school to forcing at (405) 297–1628. them to offer written and verbal apologies, write essays, and provide community service.

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June 2004 marked the start of Teen Court’s counties have neither the population nor fourth year. finances to support a hospital.

Teen Court capitalizes on the power of peer Prior to the area’s RC designation, says influence and promotes civic commitment Hospital Administrator Harry Cole, “We and youth empowerment. Students who par­ wanted to build a daycare center for our ticipate in the program have demonstrated a employees but could not justify it because depth of knowledge in courtroom procedure the revenue stream would not support it. as well as in solutions to school problems. However, through a combination of Renewal Students use mediation as a tool to curtail Community Federal wage tax credits and the bad behavior and alter violent patterns while accelerated depreciation provisions of the exercising their peer leadership roles in Renewal Community program, it is now school. financially feasible for the hospital to proceed with the capital investment to build the day­ The first Teen Court program was implement­ care center.” The daycare center was designed ed almost 15 years ago. Today, there are to accommodate approximately 30 to 40 more than 400 such programs operating students. in the United States. In 2002 Georgiana Regional Hospital had For more information on the Teen Court pro­ approximately 105 full- and part-time gram, please call Terrine Datts, program employees. About half of them lived in the monitor, at (215) 686–0467. For more RC. “This resulted in an annual, after-tax information on the programs of the wage savings of $50,000 to $60,000 annually Philadelphia EZ, contact Eva Gladstein thanks to the Renewal Community program’s at (215) 686–0457. wage tax credit provisions,” says Cole. The hospital is planning an additional capital investment. As a result of tax savings from Hospital Turns to RC Tax several RC tax incentives, Georgiana Hospital Incentives To Offer began construction of the daycare center Employees Childcare in 2003. For more information on the programs of the Southern Alabama, RC Southern Alabama RC, contact David Barley II Because rural Alabama hospitals often struggle of the Alabama Department of Economic and to make ends meet, funding services outside Community Affairs at (334) 242–5823. their primary mission—such as childcare for employees—may not be possible. Such was the case at Georgiana Regional Hospital, a Tax Incentives Yield Hope facility the Alabama Hospital Association could and Development in Rural have been describing when it reported that rural hospitals, especially those assisting low- North Dakota income residents, often “operate in a margin­ ally self-sufficient state.” Turtle Mountain Band of Chippewa, RC Located in downtown Georgiana on the Like a torch in the night, the tax incentive southern fringe of the RC, the hospital serves utilization plan (TIUP) developed by the three counties inside and three counties out­ Turtle Mountain Band of Chippewa RC has side the RC’s border. Medical services are been guiding the successful development spread thinly throughout the area as several

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efforts of this community since 2002. The the comprehensive reduction of poverty over TIUP outlines the ways in which the RC will 10 years. utilize both Federal tax incentives and local resources to spur economic activity. Other initiatives designed to advance devel­ opment in the RC include a land-use plan­ The Turtle Mountain Band of Chippewa RC ning effort, a moratorium on new tribal has aggressively implemented its TIUP within taxes, a coordinated approach to meeting the designated area. In 2002 the tribe allo­ tribal housing demand, and the develop­ cated nearly $190,000 in discretionary ment of a comprehensive indoor-outdoor funding to establish an RC center. The Turtle recreation plan for local youth and families. Mountain TIUP also has proven to be the starting point for a host of development As the Turtle Mountain Chippewa Tribe initiatives. moves toward economic and community development and self determination through “With the awarding of the RC designation, the the RC designation, the future looks bright tribe has been able to extend and market our for a renewed tribal community in the heart economic development efforts outside of the of Indian Country in north-central North reservation boundaries while further enhancing Dakota. our ability to diversify our economy, create new wealth, and produce jobs as well as show­ For more information on the programs of case the efforts and opportunities that the the Turtle Mountain Band of Chippewa RC, TIUP is creating for businesses and community contact Lyman Bercier of the RC at (701) betterment,” says Lyman Bercier, CEO of the 477–2688. RC center.

Because many tribes on Indian reservations Using Earned Income Tax or in Indian Country do not have sufficiently Credits To Stimulate developed legal environments for business, they are unable to handle large economic Local Economy development efforts. The creation of a new corporate governance structure and imple­ Yonkers, New York, EZ mentation of a tribal uniform commercial In an effort to put more tax dollars back into code will allow the Turtle Mountain tribe to the pockets of businesses and residents, the take advantage of the 8-year “window of Yonkers, New York, EZ has been offering opportunity” that the RC designation pres­ monthly seminars and free tax-preparation ents. The new structure and code were services. These two programs combined developed cooperatively by the tribal gov­ have helped to pump nearly $2 million into ernment, the RC leadership, and the RC the local economy. center staff. The 1-hour information sessions, cohosted The RC designation has sparked other local by local banks and businesses, provide a initiatives, including a new 100-acre industri­ technical overview of the simplicity of the EZ al park for the reservation and the possible program. Between January 2002 and spring opening of an aerated concrete company 2004, the EZ had reached more than 1,000 that will employ at least 15 tribal members. people through its 50 seminars. Yonkers EZ It may even lead to a partnership between staff surveyed seminar attendees and discov­ the tribe and the North West Area Founda­ ered that Yonkers EZ companies had tion Ventures Program, resulting in aid for accessed more than $1.5 million in Federal EZ wage tax credits to date. 128 Spotlight on Results SECTION 4

The sessions allow EZ staff to develop rela­ their returns transmitted electronically and tionships with the business community and their refunds deposited directly into their establish a level of communication that bank accounts. The EITC can refund as might not otherwise exist. EZ staff provides much as $5,000 to eligible filers and pro­ information about incentives available to vides much-needed, additional income for Yonkers EZ-based companies. These incen­ low-income workers. tives include Federal EZ tax incentives and other incentives available through Federal, The VITA site represented a collaborative State, and municipal programs. effort on the part of several organizations. A grant from JP Morgan Chase allowed for the Yonkers City and EZ staff members also cre­ purchase of six computers on which returns ated an Earned Income Tax Credit (EITC) were completed. Verizon Wireless made cell campaign to assist residents within the EZ phones available for calls to the IRS. in making use of this underutilized credit. Additionally, the Yonkers Riverfront Public A cadre of IRS-trained volunteers joined EZ Library dedicated two rooms for the entire staff in offering free tax-preparation services tax-preparation season. The program ended at the new Yonkers Riverfront Public Library. on a very successful note in 2004 with some The Volunteer Income Taxpayers Assistance 800 taxpayers receiving assistance and some (VITA) received generous assistance from $400,000 in EITCs returning to EZ residents. Mayor Philip A. Amicone’s office, JP Morgan Chase, and Verizon Wireless. For more information on the programs of the Yonkers EZ, contact EZ Manager Lola Vataj at VITA workers inform eligible EITC recipients (914) 377–6135. about the credit and complete tax returns without charge. Filers can then elect to have

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Community Services and Development

The RC designation and citizen participation in local development have led to a Chattanooga renaissance. (page 103)

A new downtown is taking shape due to Hamilton RC tax incentives.

A Chicago EZ grant financed the new Austin Wellness Center, a desperately needed healthcare facility on Chicago’s West Side. (page 115)

The Northbank Riverwalk and local businesses are being revitalized through Jacksonville EZ tax incentives and marketing efforts.

A Detroit EZ Innovation grant helped to fund the THINK DETROIT soccer league. (page 116)

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Community Services and Development

A Minneapolis EZ grant helps to fund a Childcare Business Incubator at Abbott Hospital. (page 119)

Georgiana Hospital used Southern Alabama RC tax savings to open a daycare center. (page 127)

A New York EZ (Bronx) loan helped to finance a theater for the Pregones Touring Puerto Rican Theater Company and created new jobs for local residents. (page 123)

Lyman Bercier, CEO of the Turtle Mountain RC (front right) sits proudly with fellow Turtle Mountain Band of Chippewa RC staff. (page 127)

The Oklahoma City EZ is helping to renovate the Page Woodson School into an African American Cultural Center and Museum site. (page 124)

Community Services 131 Spotlight on Results

SECTION 5 Families Advancing With Housing and Homeownership Assistance SECTION 5

evelopment within the The RCs do not receive Federal grants to pro­ Renewal Communities (RCs) vide housing and homeownership services for and Empowerment Zones local residents, yet they have been successful (EZs) will not be complete in providing these services. The Camden, Duntil the residents of these distressed com­ New Jersey, RC has a Recovery Act to help munities can attain the dream of homeown­ increase local homeownership. Under this ership. This is why a key principle of every EZ act, first-time homebuyers that purchase or strategic plan, sustainable community devel­ substantially rehabilitate a primary residence opment, focuses significantly on meeting the in Camden receive an income tax credit up housing needs of EZ residents and ultimately to $5,000 annually for a 5-year period. helping them to become homeowners. Since 1994 EZ leaders have been working to meet In the Charleston, South Carolina, RC, the the housing and homeownership needs of city of Charleston has started working to local residents by building and rehabilitating amend a zoning ordinance to consider per­ affordable housing, funding services and mitting higher housing densities for certain housing for the homeless, and creating units, thereby encouraging projects that homeownership programs to help residents mix residential housing with commercial achieve their American dreams. development. To assist residents of the Memphis RC and other distressed sections The RCs are equally committed to meeting of the city, the Memphis city council enact­ the housing and homeownership needs of ed an ordinance to convey city-claimed local residents. The Course of Action, which housing at substantially reduced costs to is a key part of each RC’s tax incentive util­ local agencies that agree to develop the ization plan, requires each RC to promote units for persons of low and moderate local community development needs such income. as housing and homeownership to help RC residents become self-sufficient. This section of the publication showcases the successes of RCs and EZs in providing impor­ The annual reports that RCs and EZs submit tant housing and homeownership services for to HUD identify many successes in providing local residents and families. We know that vital housing and homeownership services for you will enjoy reading about these successes local residents and families. These reports and we hope that your community can emu­ show that the urban EZs have constructed late some of them. If you would like addition­ more than 3,500 new housing units, rehabili­ al information on any of the stories in this tated 8,000 more units, and served more section, call the RC or EZ directly using the than 10,000 EZ residents through more than contact information that appears at the end 100 housing and homeownership programs of every story. since 1994.

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housing agencies then worked with those who qualified. Applicants had to live in the Housing and EZ, own a single-family home and reside in it, and meet HUD income guidelines. The Homeownership housing agencies sent out the formal appli­ cation packets, then worked with homeown­ Assistance ers to ensure that they held homeowners’ insurance and that their taxes were up to date. The agencies then set up a precon­ Lottery-Like Program To struction conference and facilitated the Repair Hundreds of process. Homes in Detroit EZ The grants cover up to $10,000 for individ­ ual household repairs. Eligible improvements Detroit, Michigan, EZ include furnace replacement or repair, water As of September 2004 more than 120 homes heater replacement or repair, porch repair or in the Detroit EZ have received substantial replacement, exterior stair replacement or repairs inside and out, thanks to the Home repair, roof replacement, security and/or Repair Program of the Detroit EZ. The pro­ storm door installation or replacement, and gram, a partnership between the Detroit EZ wheelchair ramp installation or repair. and 7 local housing agencies, provides up to Homeowners can also use the grant to $10,000 on a lottery-like system to each of make exterior improvements involving tree 300 EZ homeowners to pay for a variety of removal, sidewalk/driveway repair, garage home repair projects—a total of $3 million demolition, installation of exterior security in funds. lighting, and yard fencing. “This partnership is a great opportunity for “This program reflects our ongoing com­ our residents,” says Mayor Kwame Kilpatrick mitment to help Detroit’s comeback by during a ceremony in early August 2003 that revitalizing our communities and providing launched the program. ‘’Public-private part­ Empowerment Zone residents the resources nerships enable us to do more than we can they need to breathe new life into our neigh­ do alone to enhance the city’s development borhoods,” says EZ Executive Director Larry and prosperity and meet the needs of Detroit Givens. citizens.” For more information on the programs of Media coverage and word of mouth brought the Detroit EZ, please call Executive Direc­ about 10,000 submissions of interest, a one- tor Larry Givens at (313) 872–8050. page request for consideration form that the EZ had prepared, by the August 30 deadline. Vince Murray, executive director of Bagley New Housing Popping Up Housing Association, a participating EZ part­ ner that administers the program, said his in Corktown office was flooded with calls. Detroit, Michigan, EZ EZ staff then sifted the responses down to A community vision is coming alive in urban 3,500 eligible households within the EZ, sent Detroit, thanks to the Greater Corktown letters of explanation to all nonqualified Development Corporation, U-Snap-Bac, responders, and screened for duplicate and 11 other local housing and community responses. The seven participating nonprofit 136 Spotlight on Results SECTION 5

development agencies funded by the Detroit some housing is designed for special popula­ Empowerment Zone Development tions. “We have special housing initiatives to Corporation (EZDC). meet the needs of seniors, people with dis­ abilities, and homeless families in transition,” Corktown Development is building 33 new Givens explained. homes scattered along Cochran Avenue, Harrison Avenue, and Sycamore Street on In some cases homes are sold to eligible indi­ land that had laid vacant for many years. The viduals and families at affordable rates based construction phase begins September 2004. on guidelines issued by HUD. The new houses, all pre-sold, are priced at around $80,000. For more information on the programs of the Detroit EZ, please contact Executive Director “We are proud of our partnerships with all Larry Givens at (313) 872–8050. of these agencies to make affordable housing and homeownership a reality for Detroit’s low- and moderate-income residents,” says Homeownership Larry Givens, executive director of EZDC. Assistance Makes Dreams “The nearly $3 million we have thus far made available to support and enhance housing Come True in El Paso EZ and neighborhood development is an invest­ ment in people, an investment in our neigh­ El Paso, Texas, EZ borhoods, and an investment in the future of The homeownership grant assistance pro­ Detroit.” gram of the El Paso Empowerment Zone is making homes more affordable, promoting The EZDC provides soft money for predevel­ residence in the EZ, and making dreams of opment costs such as architectural services, owning a home come true for many residents. appraisals, surveys, environmental assess­ ments, and related services, Givens As an inducement to purchasing a home in explained. Corktown Development used its the EZ, the program offers grants of $5,000 $210,000 grant from the EZDC to cover con­ to homebuyers. The assistance is available on sultant costs and leveraged these funds for a first-come, first-served basis to all who live in construction financing from Charter One, the EZ or want to move there, without regard National City, and Bank One. to household income levels. The grant can be used only for the purchase of owner-occupied U-Snap-Bac, another community development properties and may be applied toward down- agency, used its $300,000 grant for architec­ payments, closing costs, repairs, or move-in tural renderings, land acquisition, title work, expenses. Buyers commit to making this their and engineering costs. Supporting partners primary residence for a minimum of 5 years. created through leveraging these funds The EZ homeownership grants do not need to include the city of Detroit, Michigan Capital be repaid. Fund, and National City Bank. The already competitive prices of older Through these partnerships with housing and homes in the EZ make the program even community development agencies, hundreds more attractive. Housing market values with­ of homeownership opportunities now exist in the EZ enable buyers to purchase much throughout the EZ’s central, east, and south­ bigger homes than they would be able to west areas. Consistent with the EZ mission, afford in other areas of the city.

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Elsa Loebell, one of the $5,000 grant recipi­ gages. Conducted in both Spanish and ents, is now the proud owner of a $95,000 English, classes typically run for 2 hours and home in the EZ. She also benefited from a are held 4 consecutive nights. As a result, 3.75-percent interest rate on her note, pro­ approximately 180 EZ residents have opened vided by El Paso Credit Union Affordable savings accounts, the first ever for 127 of Housing to EZ borrowers. Oly obtained a 20­ them. year instead of a 30-year mortgage and her qualifying parameters were much more In addition, in 2002 the EZ funded lenient than if she had purchased outside AHCUSO’s home loan program, contributing the EZ. $500,000 to AHCUSO’s mortgage pool. These funds leverage dollars 2:1 for prospec­ Loebell is now living the American dream of tive homebuyers in the EZ. The EZ has creat­ homeownership and the El Paso EZ is looking ed a hybrid mortgage product that splits the forward to seeing many more families like principle on a 20-year mortgage term into hers do the same. two 10-year terms, thereby cutting the effec­ tive interest rate in half. This lower interest For additional information regarding the rate enables more families in the EZ to qual­ homeownership assistance program, please ify and own their homes, building equity for call Phyllis Rawley of the El Paso EZ at (915) the future. 351–1680 or visit the EZ’s Web site at www.elpasoez.org. AHCUSO is a credit union initiative estab­ lished to improve the economic, social well­ being, and quality of life of El Paso residents. With Help From EZ, The initiative works to empower community Credit Union Initiative members to create personal wealth through savings, obtain solid credit, and become can­ Provides Financial didates to qualify for home mortgages. Literacy and Mortgage Beginning operations in September 2001, AHCUSO funded more than 28 affordable Assistance housing mortgages totaling $900,000 in its first year, according to National Credit Union El Paso, Texas, EZ Youth Week. The El Paso Credit Union Affordable Housing, LLC (AHCUSO), a credit union service organi­ For further information on qualifying for zation owned by eight credit unions in El the residential mortgage loan program, Paso, is providing free bilingual financial liter­ please call Larry Garcia at (915) 838–9608. acy training and credit management assis­ For information on upcoming financial literacy tance in the El Paso EZ. training classes, visit the EZ Web site at www.elpasoez.org or contact Rai Sarabia at Through an initial grant of $15,000 in 2002 (915) 838–9608. For more information and a second-year grant of $50,000 in 2003 on the programs of the El Paso EZ, please from the El Paso EZ, AHCUSO has provided contact Executive Director Phyllis Rawley at financial literacy and homeownership work­ (915) 351–1680. shops to more than 1,000 EZ residents to prepare them to qualify for home mort­

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New Construction in The Emerson Housing Project, said Upshaw, “will make a positive impact on the commu­ EZ Neighborhood = nity for generations to come.” Affordable Housing For more information on the programs of the and Jobs Gary/Hammond/East Chicago, Indiana EZ, please contact Executive Director Venus Cobb Gary/Hammond/East Chicago, at (219) 886–9047. Indiana, EZ “This project is a great fit for the Empower­ ment Zone,” says Business Empowerment EZ Grant Helps Open Center Manager Scott Upshaw of the Home for Homeless Boys Gary/Hammond/East Chicago EZ. The in Huntington Emerson Multifamily Housing Project “com­ bines job training and job creation for zone Huntington, West residents. It also creates new housing stock in an established neighborhood that has Virginia/Ironton, Ohio, EZ spurred improvements in the surrounding The Mended Reeds Home for Children opened its neighborhood.” doors in September 2002, thanks to a match­ ing forgivable loan from the Huntington, West Gone are the weedy, vacant lots and Virginia/Ironton, Ohio, EZ. boarded-up homes in the 500 blocks of Rhode Island, Georgia, and Vermont streets Additional funding came from the First Baptist in Gary, Indiana. The Emerson Housing Church of Ironton, which raised $5,000 for Project, which includes 10 garden apart­ the cause, and Big Sandy Super Store, which ments and 34 apartment townhomes, is made a sizeable contribution. This support the cornerstone of the revitalization. allowed the agency to purchase the property without taking out a private loan, explains The two- and three-bedroom homes include David Lambert, director of Mended Reeds. a mix of affordable and market-rate housing. Financed through the EZ and sponsored by Lambert then secured a $70,000 forgivable the Gary Urban Enterprise Association, the loan from the EZ to complete the $140,000 project is bringing job training and the prom­ project. Generous community support and ise of a better quality of life for everyone the EZ’s forgivable loan program made it involved. possible for the agency to open and begin its operations debt-free. The Gary Urban Enterprise Association offers participants job-readiness skills, employment The Mended Reeds Home provides a safe training, education, and job placement for at place for boys ages 14 to 20 to live, continue least 6 years. their education, receive professional counsel­ ing and support, develop their social skills, “As part of the loan agreement, at least 100 and find jobs in the Ironton community. The EZ residents participated in job training with shelter is located in a remodeled private 51 completions and 49 placed into construc­ home built around 1890—restored to its tion or related jobs,” reported Upshaw. original Queen Anne-style architecture and “These are good-paying jobs tied to the con­ updated with all new wiring and security struction trade and include framing, roofing, systems. electrical, and other skilled trades.”

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Before the completion of Mended Reeds, Due to the commitment of the Empower­ there was no place in the Ironton, Ohio, area ment Trust, Ario Lundy, president of Pal­ where young boys without the support of metto Homes, has been able to pursue his family or public assistance could turn for vision “to make homeownership a reality by help, guidance, and stability. Today there are building affordable houses, creating job 10 boys, ages 14 to 18, who live in the facili­ opportunities in the process, and ultimately ty, attending local schools and working at giving people a better place to live.” local businesses. For more information on programs in the “The boys will learn job skills and basic skills Miami-Dade EZ, call President and CEO needed in life, such as cooking, cleaning, Bryan Finnie, Miami-Dade Empowerment and how to handle finances,” Lambert says. Trust, Inc., at (305) 372–7620.

The Mended Reeds Home for Children, which operates as a faith-based, nonprofit Residents’ Union Request independent living center, is also licensed and equipped to provide foster care and Spurs EZ Renovation adoption services to the community. Grant For more information on the development Minneapolis, Minnesota, EZ of the Mended Reeds Home for Children using the EZ forgivable loan program, please “When we first moved here, this place was contact Executive Director Cathy Burns, in squalor conditions,” says Janice Hamilton. Huntington/Ironton EZ, at (304) 399–5454. “Now we have a clean, decent place to live.” As a 10-year resident and president of the Park Plaza Residents’ Union, Hamilton is Another Palmetto Homes proud to see that the Park Plaza Apartments Milestone in the Minneapolis EZ have become more than a collection of five deteriorated apart­ Miami-Dade, Florida, EZ ment buildings. They now form a commun­ On February 18, 2004, Palmetto Homes of ity of attractive homes. Miami, the city of Miami Department of Thanks in part to a $400,000 grant from the Community Development, and the Miami Minneapolis EZ in September 2000, Park Empowerment Trust, which administers the Plaza has been transformed into a complex Miami-Dade Urban Empowerment Zone, that provides 134 units of quality affordable held a ribbon-cutting ceremony to celebrate housing to families and individuals earning their latest affordable housing endeavor in less than 50 percent of metro median the EZ. income. Thanks to a $250,000 bridge loan from the Only a few years ago, Park Plaza was nearly Miami Empowerment Trust and a $270,000 demolished. All five buildings were in severe forgivable loan from the city of Miami disrepair and presented dangerous living con­ Department of Community Development, ditions. Then, the Park Plaza Residents’ Union Palmetto Homes will construct six affordable approached the EZ Governance Board for infill homes on vacant lots and underutilized financial assistance. property in the EZ.

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After an onsite visit to Park Plaza, the EZ loan-to-grant initiative—developed by Governance Board members knew it was Empower New Haven, the EZ’s administra- important to support the effort. Through the tor—is making headway. To date, 45 EZ work of the residents’ union, many funding residents have used the $5,000 to cover partners, and some gifted professional archi­ downpayment and closing costs. “The pro­ tects, Park Plaza found a new beginning. grammatic goal for homeownership is to sta­ bilize and revitalize EZ communities,” says Hamilton and other residents were able to con­ Althea Marshall, Empower New Haven’s pres­ tinue living at Park Plaza during the renova­ ident and CEO. tions, shifting from apartment to apartment within the complex while the work went on. The individual development account (IDA) is As a benefit to residents, the laundry room was another Empower New Haven HomePower relocated from the basement to the ground program designed to encourage homebuyers floor. These more pleasant and secure surround­ within the EZ. Some 250 residents are saving ings for the laundry room offered a welcome toward a maximum of $2,500, which change to the residents. Empower New Haven will match 2:1. The potential for $5,000 in matching funds Park Plaza is a community created by its resi­ makes the IDA program more appealing than dents. Residents’ union President Hamilton other, similar initiatives available in the city. and her daughter, Andrea Cannon, work with the 340 residents of Park Plaza to improve To help increase financial literacy and pre­ the quality of life. Hamilton, known for her serve assets within the EZ, several groups faith and commitment to the community, has funded an anti-predatory lending media cam­ coordinated several events and was instru­ paign. Empower New Haven, the city of New mental in creating the first annual Park Plaza Haven, Fannie Mae, ACORN, and community National Night Out event in 2001. housing advocates joined forces to alert resi­ dents to this practice through a press confer­ The results of a lot of hard work are clear, ence at city hall, newspaper articles, public Hamilton said. “This is a place we can be service announcements on radio stations, and proud to come home to.” bus panels, both inside and outside. These For more information on the programs of panels included a call-to-action phone num­ the Minneapolis EZ, please contact Director ber for further information. The bus panels Jonathan Palmer at (612) 673–5016. feature an EZ resident who purchased her home via the Loan to Grant HomePower initiative.

Boosting Homeownership Empower New Haven has also announced a in Urban Connecticut companion HomePower initiative that will Community provide emergency home repairs and exterior improvement repairs for EZ residents.

New Haven, Connecticut, EZ For more information on the programs of the By forgiving 20 percent of the loan for every New Haven EZ, contact President and CEO year a buyer remains in his or her home, the Althea Marshall, Empower New Haven, at New Haven, Connecticut, EZ is looking to (203) 776–2777. help 100 first-time homebuyers purchase a residence within the EZ’s boundaries. The

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Housing and Homeownership Assistance

Albemarle Square features 340 units for rent and ownership. The Baltimore EZ helped to facilitate the resident engagement effort and land use plans.

Gary-Hammond-East Chicago EZ financing helped to turn a vacant lot into the new Emerson Housing complex. (page 139)

The El Paso EZ has provided homeownership assistance grants to residents. (page 137)

A $70,000 Huntington-Ironton EZ loan helped to finance the Mended Reeds Home for boys in foster care, where they live and learn social and practical skills. (page 139)

AHCUSO is a credit union initiative funded by the El Paso EZ to provide financial literacy and homeownership workshops to local residents. (page137)

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Housing and Homeownership Assistance

A Minneapolis EZ grant helped to renovate more than 120 affordable-housing apartments at Park Plaza. (page 140)

The New Haven EZ Loan-to-Grant initiative has helped dozens of local residents become homeowners. (page 141)

A ribbon-cutting ceremony for a New Haven EZ resi- dent who purchased a home through the Homepower program. (page 141)

Thanks in part to a $250,000 loan from the Miami-Dade EZ, Palmetto Homes will construct six affordable homes. (page 140)

Housing 143 Spotlight on Results

SECTION 6 A Glimpse of the Round I Empowerment Zones and Enterprise Communities Successes—10 Years After Designation SECTION 6

ver the history of the Empower- Part 6 of Spotlight on Results offers profiles ment Zone (EZ) Initiative, the initial showing how cities have realized the goals focus of the Round I EZs was almost of the Empowerment Zone and Enterprise exclusively on the Social Service Community (EZ/EC) initiative. In 1994 five OBlock Grant (SSBG) funds with a far less urban Round I EZs—Atlanta, Baltimore, focus on tax incentives. Each of the Round I Chicago, Detroit, and Philadelphia/Camden— Empowerment Zones received from the were designated for a period of 10 years, Department of Health and Human Services, which was set to end on December 31, $100 million in Social Service Block Grant 2004. To ensure the continued availability (SSBG) funds, which then created the unan- of tax incentives to businesses to these EZs, ticipated results of eclipsing the Round I their designations have been extended to Zones’ effort to fully use tax incentives during December 31, 2009. their 10 years of designation. Each Round I urban EZ received $100 million With the advent of second and third Rounds in Social Services Block Grants, with the of EZs designation, an evolution took place in dual-designation cities of Camden and which federal grants were de-emphasized as Philadelphia receiving $50 million each. the best approach for assisting designated The U.S. Department of Health and Human areas. All Rounds of EZs now have the chal- Services (HHS) has administered these grants. lenge of a new approach requiring the Along with the Social Services Block Grants, aggressive promotion and marketing of the the Round I urban EZs also received tax $11 million tax incentive package and the incentives with an estimated value for the $15 billion in New Markets Tax Credits. first 5 years of $2.5 billion. These incentives consisted of wage credits, increased IRS The Round I Zones primarily concentrated Section 179 expensing, and tax-exempt on implementing activities and projects that bond financing. were eligible under SSBG requirements. Because there was virtually no type of activity On December 31, 2001, HUD designated 40 that was ineligible for SSBG funds, the Round Renewal Communities (RCs). Among them I Zones had the unfettered ability to carry out was the city of Atlanta, a Round I EZ. Due to a wide range of activities from housing, pub- the Community Renewal Tax Relief Act of lic services and improvements to economic 2000, Atlanta lost its designation as an EZ development. when it chose to become an RC. The city of Atlanta was offered an opportunity to have The Round I Empowerment Zones will be a profile of its EZ included in this part of able to fully concentrate on marketing the Spotlight on Results, but it was decided that, tax incentives now that the Community given the city’s recent move to RC status, a Renewal Tax Relief Act of 2000 has extended story would not be feasible. the Zones designation until 2009 for the pur- pose of allowing the Zones to take advantage Also in 1994, 65 urban ECs were designated, of the tax incentives for another five years. with each receiving $3 in Social Services The Act increases the amount of time avail- Block Grant funds from the U.S. Department able to the designees and provides an oppor- of Health and Human Services. Except for tunity to see the long-term impact of tax tax-exempt bond financing, businesses locat- incentives on job creation and other econom- ed in an EC have not been eligible for other ic and community development activities tax incentives. The designation for urban ECs that improve the lives of Zone residents. ended in 2004 and was not extended. Part I

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includes success stories for the ECs in new jobs. In Detroit, residents have brought Manchester; New Hampshire; Waco, Texas; a derelict park back to life as a lively gather- and Phoenix, Arizona. These three cities ing place and center for youth services, and have been outstanding in carrying out their it is now a model for other neighborhoods strategic plans and in making a positive dif- that also want great parks. In New York, res- ference in the lives of their residents. idents’ and firms’ projects have spurred close to $800 million in combined direct and indi- The EZs and ECs profiled here illustrate how rect private investment. And in Philadelphia, cities across the country have succeeded in strong EZ-created community-based organi- empowering their residents to act on four zations have led to a range of initiatives like key principles: Building Community- local funding streams that will continue to based Partnerships, Creating Economic benefit their neighborhoods long after the Opportunity, Encouraging Sustainable EZ has finished its work. Community Development, and Imple- menting Tax Incentives. The information Likewise, EC residents and businesses have in each profile is based on interviews with pursued successful projects to improve EZ and EC representatives. their communities. In Manchester, high- technology firms, light manufacturing A few outstanding projects hint at the range companies, and service and distribution and depth of the EZ residents’ and business- businesses have created more than 170 es’ accomplishments described in the follow- jobs within the EC. Innovation is at the ing profiles. In Baltimore, one community heart of the Phoenix EC’s strategic vision for literally did not exist until EZ-empowered change. Since its designation as an EC, it residents formed a nonprofit community has expended more than $1 million on a development organization, which has pur- variety of job training and placement pro- sued safer streets and market-rate housing. grams to help increase the employability In Camden, residents used the Internet to of residents and has worked to ensure that find out how to get free trees to plant on residents with jobs have the opportunity to their streets, which are now models for tree advance. And in Waco, more than 2,700 EC planting all across the city. In Chicago, a residents have received computer training, cooperative business has been able to build a attended job-readiness clinics, and learned new $3 million grocery store and has trained industry-specific skills such as carpentry and and hired residents to fill the resulting 100 small engine repair.

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Baltimore Communities the EZ’s communities totaled approximately $1.2 billion. Lay Foundation for Two of these communities, Washington Prosperity Village and East Harbor, illustrate how EBMC has taken advantage of the EZ to improve Martin O’Malley, Mayor of the city. Washington Village literally did not Baltimore exist as a community until the EZ designation empowered a group of local people to form Baltimore, Maryland, EZ a nonprofit community develop- “I’m proudest of the foundation ment organization. Through this we have laid for increasing the organization residents have city’s wealth,” explains Diane formed a partnership with the Bell, the former head of State’s attorney’s office to fight Empower Baltimore Manage- drugs, prostitution, and related ment Corporation (EBMC), the crimes thus helping to stabilize city’s EZ agency that has been the community. And they have enabling this old port city to gone on to pursue efforts to help meet the challenges of build market-rate housing and retooling its economy for the set up a Main Street project to information age. In pursuing its enhance their business district. mission of increasing citizens’ incomes by empowering them Martin O’Malley, Along with Washington Village’s Mayor of Baltimore to organize and develop their community development organ- own communities, EBMC has ization, the EZ has also helped to establish successfully acted on the four key EZ princi- two other community-based nonprofit cor- ples: building community-based partnerships, porations called village centers, which are creating economic opportunity, encouraging continuing to facilitate the EZ’s strategies. sustainable community development, and Each village center is based on a coalition implementing tax incentives. of residents, businesses, and local institutions and offer a Baltimore’s EZ extends over variety of essential services approximately 7 square miles through a career center and east and west of downtown and other resources. includes several historic inner city neighborhoods that are home to In East Harbor, another village about 60,000 people. By staying center that is a prime develop- on target with its main goal of ment site on the city’s water- increasing citizens’ earning front, an EZ-spurred land use power through training and well- plan has enabled the community paying jobs, EBMC has created to capitalize on HOPE VI redevel- almost 5,700 new jobs, placed opment and attract a large hotel approximately 11,000 people in and high-quality housing, thus jobs, reduced crime by roughly Diane Bell, EBMC boosting the city’s tax base. The 60 percent, increased homeown- community has also brought in ership by almost 6 percent, and helped several jobs by forming a partnership with Hewlett communities create and implement their own Packard to establish a computer laboratory economic development plans. From 1995 and increased homeownership by helping resi- to 2000 public and private investments in EZ Success 149 SECTION 6

dents set up individual develop- Other EZ projects have led to ment accounts. direct business startups and job creation. A prime example EBMC has enabled these com- is Charm City Signs, whose munities to succeed with “a founder Joey Richards states, “I strategy of forming partnerships don’t believe that a traditional with local employers and educa- bank would have loaned me tional institutions and by mar- money to start my business…. keting the EZ’s tax incentives The Empowerment Zone was and other advantages in cooper- the first and last [source] I went ation with the city’s and State’s to.” Richards had no experience existing economic development in graphic arts, and as an unem- agencies,” explains Bell. In this Jim Shea, EBMC Chair ployed single mother and novice way, by building on the work of entrepreneur, she stood little these established agencies, the EZ’s advan- chance of finding a traditional lender willing tages have been maximized as part of a total to finance her business. When searching the package of benefits. For example, with the Internet one day, she discovered the U.S. help of EBMC and the city’s economic devel- Small Business Administration’s One-Stop opment agency, BankOne chose downtown Capital Shop at EBMC’s Business Empower- Baltimore as the site of a new check-remit- ment Center, which helped her find potential tance center employing hundreds because it business sites in the EZ. She eventually settled would be able to take advantage of several on a site in East Harbor, where—with a 7-year key assets: the city’s trained workforce, the EBMC loan of $100,000—she leased the EZ’s ability to create customized training, a space to house the now-thriving Charm City prime location across the street from the Signs. main post office, and the bonus of EZ tax credits. Another EZ-empowered resident, Bruce Coley—a young African American from the The success of these community-based part- struggling Sandtown Winchester commun- nerships is best shown by looking at how the ity—is now a surgical technologist with a EZ’s projects have empowered particular resi- good job, thanks to having graduated from dents through customized job training lead- customized training offered by the EZ and ing to good jobs with career potential. For Johns Hopkins Health Systems. After much instance, Baltimore City Community College hard work studying and having endured lim- and EBMC together developed a customized ited finances, he completed his training and job-training program in partnership with is now on a clear career path in healthcare. Chesapeake Biological Laboratories (CBL), an “Little did I know that this would be the EZ business that manufactures pharmaceuti- turning point in my life,” Coley recalls. “As cals. The partners determined the job skills soon as I signed up, I felt like a whole new and interests of potential employees, nine EZ world had been opened up to me.” residents were selected to join an intensive training course, and all nine were hired by Still another resident grateful to the EZ is CBL, which received tax credits. Similar suc- Dorothy Scott, who has traveled a path from cessful job-training partnerships among public housing to a good job and to home- EBMC, local colleges and universities, and ownership. When the East Harbor Village a host of locally and nationally based firms Center was organizing its career center, it have led to many good jobs for local resi- sought someone who knew the neighbor- dents. hood and could work well with the commun-

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ity. Scott—then a public housing resident and assisting the village centers where the parks recreation leader with the Baltimore City will be located to determine anticipated Housing Authority—was selected for the job workforce needs and find opportunities for of the center’s client service coordinator small and minority businesses. because she lives and works in the communi- ty and is respected by the residents. “This job As the EZ winds down, EBMC will be part of was a step in empowering myself financially the city’s economic development strategy for and physically,” she states. “I used to live in only a little longer. But its legacy will contin- public housing, but now I own my own ue to enrich the city. The strong, permanent house.” community-based organizations it has helped to establish and the thousands of residents it In empowering these and many more has helped to train and start good careers are Baltimore residents, EBMC has overcome sev- putting Baltimore on the path to prosperity. eral hurdles. Most of these, according to Diane Bell, were the common problems of For more information on Empower Baltimore dealing with constantly changing communi- Management Corporation, contact Tanya ties, where leaders might just hit their stride Terrell at (410) 783–4400 or visit www.bal- and then move on and where new people timoreempowermentzone.com. For up- and organizations need to develop trust and to-date information about Baltimore’s become informed about challenges and Empowerment Zone, tune in to Empower opportunities. EBMC has overcome these Hour on WOLB 1010AM every Tuesday hurdles with a process of “constant commu- morning at 10 a.m. nication” with its partner community organi- zations through newsletters, its Web site, and the media. Trees and Hope Grow in Recently, as EBMC prepares for its closing as New Jersey its 10-year term expires, it has been working to ensure the sustainability of its programs. It Gwendolyn A. Faison, is assisting the EZ’s community-based organi- Mayor of Camden zations to develop the capacity to continue building the collaborative initiatives that will Camden, New Jersey, EZ enable their communities to “The things that our residents thrive. For instance, two have learned and overcome have planned biotechnology parks been incredible,” exclaims Rick on the west and east sides of Cummings, the head of the the EZ will benefit significantly Camden Empowerment Zone from new investments in both Corporation (CEZC). “The EZ has physical and human capital by empowered them to really major partners, including the broaden their horizons. For Federal and city governments, instance, one neighborhood Johns Hopkins Medical group that had received EZ Systems, the University of financial and technical assistance, Maryland Medical Systems, the instead of turning to the EZ, Annie E. Casey Foundation, Gwendolyn A. Faison, went to the Internet and found and many other foundations and Mayor of Camden out how they could get 80 free funders. The two parks will cre- trees to plant on their local ate about 13,000 new jobs, and EBMC is

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streets. One thing led to another, and neigh- at market rate without an income cap borhood tree planting has spread across the being imposed on purchasers. Progress to city.” fill a significant funding gap was slow, but the project is now fully financed and get- These trees—symbols of hope—epitomize ting under way. the positive change that the EZ has brought to Camden, a struggling city of about To strengthen sustainable community devel- 80,000 people across the Delaware River opment, CEZC has facilitated such innovative from Philadelphia. The Camden EZ covers efforts as the Police Multi-Agency Life Line about a quarter of the city’s population, and (MALL), which has been organized by the these committed residents have taken advan- Camden Police Department to combat delin- tage of the EZ’s benefits in undertaking quency among the city’s youth and offer many kinds of new initiatives to help them alternatives to the filing of criminal charges. realize their vision of “a transformed MALL unites approximately 20 law enforce- Camden, harmonious villages in which to ment, justice, education, and human service raise children, where families are proud to agencies in a “one-stop shop” offering many live and people are excited to visit.” kinds of services. For example, therapists in the family intervention unit provide therapy The variety of successful EZ projects illus- and advocacy during the day, in the evening, trates the residents’ empowerment. One and on weekends. And the Safe Haven, an project, the Cooperative Business Assistance afterschool enrichment program based at Corporation (CBAC), a nonprofit community Rutgers University, helps youth who would development fund, manages CEZC’s $2 mil- otherwise have been subject to the justice lion small business development fund and system. Safe Haven graduates serve as men- provides a variety of lending programs to tors, peer counselors, and field trip chaper- small businesses that have difficulty accessing ones; provide violence-prevention workshops traditional credit markets. CBAC also lever- for other youth; conduct neighborhood ages CEZC funds with capital from local cleanup projects; and collect food and holi- banks, the U.S. Treasury Department, private day gift donations for needy families. Since foundations, and the U.S. Small Business MALL began, the number of youth annually Administration. More than 60 EZ businesses referred to family court has decreased from have received almost $2 million in loans 1,600 to approximately 900, even with a 10- leveraged with more than $10 million from percent increase in arrests. other lenders, which resulted in more than 500 jobs being created and retained in the To increase economic opportunity, Rowan EZ. University has formed a partnership with the CEZC to provide basic computer literacy and The EZ has enhanced homeownership software training to EZ youth and their fami- opportunities with ambitious projects like lies at the Camden Neighborhood Cooper Grant Homes, which has been Technology Center. Donated personal com- described as the first market-rate, new puters are refurbished by trained technicians housing construction in Camden since the at the center and provided free to Camden 1950s. The project was originally planned youth from EZ schools. The program requires as 24 single-family homes in the Cooper that the youth and at least one parent com- Grant EZ neighborhood adjacent plete the training together. Upon completion to Camden’s waterfront. Local residents of the training, each youth is given a free recently requested that the project be refurbished computer. increased to 28 subsidized units to be sold

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To market and utilize the EZ’s tax incentives, the EZ’s success to control its process and CEZC has used $7 million in EZ facility bonds programs. to provide permanent financing for Camden’s new minor league baseball stadium. And One resident who appreciates this community- CEZC also has presented workshops on the based EZ structure is Ericka Ayers, who has various tax incentives, mailed and faxed mar- her EZ-funded job training to thank for “pro- keting materials about the tax incentives to viding me with the road map I need to make businesses, and created an EZ business grant my dream possible”—a 9-week course in program for Camden businesses that hire EZ small-business development, which taught residents. The EZ business grant is an extra her to write a business plan, manage incentive to encourage small businesses to finances, market her services, and obtain a increase their EZ resident employees. The EZ microloan. Ayers used her training to start business grant program, which is also mar- Maid to Serve, a professional commercial and keted by student interns, has been a way for residential janitorial cleaning service. And the CEZC to increase the use of other tax because she had completed the EZ training, incentives while presenting immediate Ayers was selected to enter the Community rewards to the Camden businesses employ- Janitorial Venture’s training program, which ing EZ residents. Along with the business has given her more training and access to grant program, the EZ’s other two outstand- commercial cleaning markets, such as win- ing uses of tax incentives have been through ning a large subcontract to provide local its entrepreneurial and training loans for service to the U.S. Census Bureau. small businesses and the small business Another group of empowered residents has development fund described above. formed a partnership with the Latin American These and many other successful EZ projects Economic Development Association (LAEDA), also have leveraged substantial additional which the EZ provided with $100,000 to assistance from the public and private sec- expand its efforts to help local people get tors. For instance, when the EZ planned to training, develop business plans, and start use $1.3 million to improve four major their own businesses in the EZ. LAEDA has downtown streets, it was eventually able to formed a partnership with the Cooperative piggyback these funds onto State plans to Business Assistance Corporation to provide build a light rail system to Trenton, the capi- startup funds for entrepreneurs and it also has tal. As a result, in cooperation with the worked with the Hispanic Family Centers of Cooper’s Ferry Development Association, the Southern New Jersey to recruit participants at EZ was able to concentrate the initial funds churches, community-based organizations, on renewing just one street and also get $12 and nonprofit agencies. million more for other downtown streets. “The greatest benefit of the EZ has been The EZ has facilitated these improvements to empower Camden’s residents to make after having overcome one main hurdle: gov- changes in their own lives, beyond the use ernance. At first, the EZ was administered as of money,” sums up Cummings. “There is part of the city government, which tended to nothing like looking at residents’ faces complicate planning and coordination. But when they realize that they can solve a once the EZ was able to set up its own non- problem.” profit agency with the support of the State For more information, contact Program government, it developed a resident-based Manager Darrell Staton, CEZC, at (856) management structure that has enabled the 365–9061, or www.camdenez.org. communities with the greatest stake in

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Chicago Builds its increase sustainable community development. Communities’ Capacities The Chicago EZ’s many accomplishments Richard M. Daley, have had a strong positive impact on the Mayor of Chicago city. It has invested $22 million to build or renovate nearly 300 rental housing units, Chicago, Illinois, EZ 100 assisted-living units for seniors, more than 300 units in previously abandoned or “Since the program started nearly a decade vacant buildings, a 100-unit sin- ago, the Chicago EZ’s accom- gle room occupancy facility, 16 plishments have included the two-flats, and 10 single-family creation, retention, and place- homes. It has invested $12 mil- ment of 3,400 jobs; giving lion to expand and build med- grants to nearly 60 small busi- ical centers, including service nesses; and assisting businesses delivery networks, child and in EZ communities secure more family service centers, and pri- than $7 million in outside fund- mary healthcare facilities. And it ing,” notes Jarese Wilson, the has invested $10 million in proj- city of Chicago official responsi- ects that enable EZ residents to ble for the EZ. The Chicago EZ build on their ethnic and cultur- thus has had a very significant al heritage as an economic impact across its 26 neighbor- Richard M. Daley, Mayor of Chicago development tool. The EZ has hoods with approximately also assisted more than 20 200,000 residents. The EZ has assisted 260 youth-futures projects for children and subgrantees to sustainably improve their teenagers in EZ communities. It has helped communities by funding projects in its major seven organizations to reduce violence in strategic areas, including affordable housing, their communities, including several anti- capacity building, youth futures, economic gang and community-policing initiatives. It empowerment, cultural diversity, health and has invested $19 million to fund 2 career human services, and public safety. centers and 22 affiliates, which have served The Chicago EZ has built on the success of 4,900 EZ residents and 30 community its programs and partnerships in past years organizations and businesses. Nearly 160 and continues to show effective results. In men and women have completed an EZ- addition to allocating funds to more than funded pre-apprenticeship construction- 260 projects, EZ dollars have been leveraged training program. with more than $150 million, which has To achieve these numerous positive out- directly benefited more than 76,000 resi- comes, the Chicago EZ has created linkages dents. To help maintain the growth that has between residents and community organiza- been accomplished by its funded programs, tions and businesses, building foundations more than $6 million has been leveraged for both EZ efforts and ongoing community from the $722,000 awarded to five EZ sub- development. The keys to these successful grantees, which provide many services—such efforts have been the six cluster organiza- as assistance with operational and program- tions within the EZ. Because each cluster matic development, grant-writing skills, and organization represents a particular geo- fiscal management—that are helping to graphic area—tying together all the area’s governmental, commercial, and private enti-

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ties—it is able to articulate the area’s pressing the Small Multifamily Preservation Project, needs as well as pinpoint opportunities for which started as one of two EZ housing activ- future development. These cluster organiza- ities funded with $2 million by the Chicago tions are continuing to operate through the city council. To augment EZ funding for the end of the Chicago EZ initiative and are com- project, the Chicago Department of Housing pleting projects concerned with three top pri- contributed $2 million and private financing orities: economic empowerment, youth sources added another $1 million. These futures, and affordable housing. funds have assisted more than 50 housing units, with services focused on maintaining Overall, the EZ’s economic empowerment ini- the viability of 4- to 10-unit residential build- tiative has received almost $34 million in ings. The Chicago Department of Housing Federal funds and about $11 million in State contributed almost $1 million toward acquir- funds, and it has leveraged almost $32 mil- ing and rehabilitating 17 units in 4 buildings. lion in other private and public support. The small multifamily preservation project These funds are being used for projects also funded a second phase of small-building addressing the business development, work- acquisition and rehabilitation in the Pilsen force development, and capacity building and Little Village communities. This effort was needs of the EZ’s communities. The most developed by the Resurrection Project, an EZ popular, well-received, and innovative eco- business, which managed the property after nomic empowerment effort has been the subcontracting most of the construction work direct grant initiative, which has focused on to other EZ businesses that are members of small existing, home-based, and startup for- its construction cooperative. In sum, the EZ’s profit businesses. Community residents have housing efforts have helped serve nearly helped determine which applicants to fund. 1,000 residents with more than $19 million For instance, the grant has enabled Curlie’s in EZ funds and $68 million in leveraged Bakery in the West Side EZ to buy machinery, funds. expand production, and increase sales. Among the other efforts concerned with eco- One main hurdle the Chicago EZ overcame nomic empowerment, the Hyde Park has been the need to build the capacity of its Cooperative in Chicago’s South Side EZ com- community-based grant and loan recipi- munity has used $3 million to build and ents—enabling them to do everything from equip a new grocery store. EZ residents have handling contracts to documenting service been trained and hired to fill 100 new jobs. delivery. This capacity-building effort has been especially successful in enabling the An outstanding business assistance effort has recipients to learn to manage the EZ’s con- been Chicago Community Ventures (CCV), struction projects. which provides many business assistance resources, including business training, finan- In pursuing this capacity building in the con- cial planning, and an information technology text of implementing its many successful center. As of 2003, CCV had led more than projects, the Chicago EZ has built a strong 300 business assistance workshops, assisting foundation for sustainable community devel- almost 800 residents and 300 EZ businesses. opment beyond the life of the EZ initiative. And outside the EZ, CCV has served more The EZ’s many projects have created solid than 700 businesses, which are now creating structures—ranging from childcare centers, sustainable opportunities for EZ residents. healthcare facilities, and housing units to community network structures built around Finally, the EZ has increased the city’s stock of educational programs, job training, and busi- affordable housing through such programs as ness assistance. These projects have provided

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services to more than 76,000 people across and mental health needs of residents. And the diverse communities of Chicago. But living and working programs have encom- most of all, the people who have taken the passed the overall quality of life for residents lead in creating and completing these proj- and addressed their transportation, housing, ects are now empowered to continue devel- recreational, job-training, and employment oping their communities. needs.

For more information, contact Managing The EZ’s role in the southwest subzone illus- Deputy Director Jarese Wilson, city of trates how these themes have been useful in Chicago, at (312) 744–7870. empowering residents. A seminal effort was the process that led to the birth of the Clark Park Coalition. Clark Park, long neglected, Detroit Empowers was scheduled to be shut down, but resi- Residents To Become dents and other volunteers decided to reclaim the park. They formed cleanup Leaders squads and restored athletic and recreational programs on weekends. With a $150,000 Kwame Kilpatrick, investment from the EZ, they Mayor of Detroit extended programming to 7 days a week, made significant Detroit, Michigan, EZ infrastructure improvements and “The most exciting result of our introduced new intergenerational EZ is the cadre of people whom sports, games, and other activi- the zone has touched,” states ties that created an engaging, Detroit EZ head Larry Givens. safe haven for children and fami- “These groups of people lies. Its ice rink is a lively gather- throughout the EZ, whom it has ing place for local youth, helped to become leaders, will attracting hockey-player mentors continue to revitalize neighbor- Kwame Kilpatrick, and now even academic mentors hoods, take care of children, and Mayor of Detroit who work with the youth at the attack other problems long after park’s field house. The EZ’s the zone has ended.” investment has leveraged about $1 million in contributions from public and private Detroit’s EZ covers about 18 square miles sources, ranging from the city’s Recreation across the southwest, central, and near east Department to Ford Motor Company. And sections of the city. The area is home to the residents’ effort to bring Clark Park back approximately 85,000 residents and 3,000 to life is now serving as a model for residents businesses. The southwest subzone has been in other neighborhoods who also want particularly active in taking advantage of the great parks. EZ’s opportunities. All of the EZ’s programs have been grouped under three themes, A prime example of how residents are fol- according to how they benefit EZ residents: lowing the Clark Park model, and thus clean and safe, healthy and smart, and living becoming empowered, is the development and working. Clean and safe programs have of a new football and athletic field in the addressed the general safety of residents as north end of Detroit—the first football field well as the cleanup and beautification of the city’s Northern High School has ever had neighborhoods. Healthy and smart programs on which to play its home games. And have focused on the educational, physical, Beniteau Park—an east side site carved out of

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litter-strewn lots—has been Neighborhood Development renewed to become a recreation- Corporation decided to under- al haven for youth and seniors take an innovative 51-unit hous- alike. ing project. The redevelopment of the 1924 Architects Building In achieving these and many was unique because all the mate- other successes, the EZ has rials used to renovate it were depended on innovative partner- recycled—including carpets ships and agencies. For instance, made from plastic bottles, ceiling the Shorebank Development tiles containing newspaper Corporation has been a leader in scraps, recycled paint, and studs bringing new vitality to the EZ. Larry Givens, Detroit EZ containing recycled steel. The Shorebank is a new type of finan- program is designed to lessen the cial institution, a community development impact of construction materials, which make bank, combining for-profit business acumen up an estimated 30 percent of all landfill and nonprofit enterprise with a genuine materials. The reborn Architects Building fea- motivation to rebuild long-neglected neigh- tures seven two-bedroom units with central borhoods. After it opened its doors in 1997, air conditioning and new appliances. Shorebank got off to a strong start; near the Environmentally sensitive materials and tech- end of that year, the bank had surpassed its niques were also used in renovating the first goal by closing on 17 residential proper- Ghandi-McMahon Building across the street. ties worth nearly $1 million and making com- A $250,000 pilot grant from the Michigan mercial loans for more than $80,000. Most of Department of Natural Resources’ Solid these loans enabled residents to purchase Waste Alternative Program provided seed and rehabilitate houses, boosting property money for the project, and additional fund- values in the area. On the commercial side, ing of $6.1 million came from various public Shorebank acquired an 8,000-square-foot and private sources. property on the east side and invested $400,000 to rehabilitate it. Moreover, Among its many efforts to build sustainable Shorebank Enterprise, the nonprofit arm of communities, the EZ has invested $8 million operations, established an enterprise develop- in a partnership with the Detroit Police ment loan fund to benefit local entrepreneurs, Department to implement a community- especially minority businesses providing jobs policing program. The role in this effort of for local residents. The fund has raised several one young woman, Toyia Watts, who lives on million dollars from the Ford Foundation, the the city’s east side, also shows vividly how EZ Charles Stewart Mott Foundation, and other residents are being empowered to make a philanthropic sources. difference. As the president of Communities United Together, Watts helps her group of Detroit’s physical infrastructure had decayed neighbors navigate the city bureaucracy and in recent years with the city’s loss of busi- develop strategies to reverse the conditions nesses and population. To attack this prob- that led to neighborhood decline. “I got to lem, the EZ embarked on a number of know local precinct commanders. I got to creative projects. One example is the renova- know the environmental officers and the city tion of the historic Architects Building and inspectors who deal with this neighbor- the Ghandi-McMahon Building. In 1998, hood,” Watts explains. “I realized that one having witnessed the effects of past disinvest- person or one group could not go it alone. ment and decay, the Cass Corridor So I started networking with the people. As

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a result, with the help of our partners in the For more information, contact Director Larry police department, conditions are beginning Givens, Detroit Empowerment Zone, at to improve and crime is going down.” (313) 872–8050 or www.detez.com. Today, Watts is a working woman, with a part-time job as a building-code specialist at the neighborhood-based Warren-Conner New York Cooperates To Development Coalition, where she explains to callers what to do about aban- Achieve Dramatic doned cars, where to call to report illegal dumping on a Success vacant lot, and how to take con- trol of their living environment. Michael Bloomberg, Mayor of New York Of the EZ tax incentives, Detroit has been most successful in using New York, New York, EZ the wage credit. For example, “The mayor and the governor Bridgewater Interiors, which have worked with the people of manufactures automobile seats Harlem and the South Bronx to for General Motors and other rebuild communities and change lives through the EZ, whose companies, has received wage Michael Bloomberg, tax credits for the more than 300 Mayor of New York many projects have spurred close employees of its new plant, who to $800 million in combined live nearby in the EZ. Bridgewater estimates direct and indirect private investment,” sums that it has saved almost $1 million through up New York EZ corporate secretary Marion the wage tax credits. Phillips. “And everyone—government, local development corporations, residents, and One obstacle faced by the EZ was how to businesses—has come together in this suc- streamline the complex process of city, State, cessful effort.” and Federal controls over the EZ’s funds. The EZ mitigated this complexity by forming a The New York EZ’s multimillion-dollar lever- separate nonprofit administering corporation, aging is just one of its many accomplish- which holds a master contract and thus can ments, which are as dramatic as the receive a share of funds from the city and dis- premier U.S. city it serves. It has disbursed tribute them directly to project sponsors as about $112 million, undertaken almost 300 subcontractors. initiatives, and created and retained approx- imately 13,000 jobs. The EZ has been able Finally, Givens notes that “when the EZ ends, to achieve these successes thanks to the the people and organizations it has nurtured two strong community-based organizations will continue to achieve successes because that it encompasses—the Upper Manhattan they’ve learned the formula for community Empowerment Zone Development development, and this democratic citizen Corporation and the Bronx Overall power, more than bricks and mortar, is the Economic Development Corporation, which EZ’s great legacy.” Across the city—from the serves the South Bronx. youth enjoying Clark Park to the people liv- ing in the Architects Building—these empow- Upper Manhattan and the South Bronx were ered residents are surely building on this selected for strategic reasons to serve as the legacy. focuses for New York’s EZ. Upper Manhattan,

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long known as a cultural capital, is once working capital, for a total projected invest- again thriving. Economic opportunities, busi- ment of $4 million. ness activities, and a flourishing cultural life have attracted worldwide attention. When Both Upper Manhattan and the Bronx have people talk about Upper Manhattan, conver- been very proactive in marketing and utilizing sation has historically revolved around the EZ’s tax incentives, particularly to small- renowned jazz musicians and composers, and medium-sized businesses. They have great writers, and cultural venues and institu- mailed notices, distributed flyers, and con- tions like the Dance Theater of Harlem, the ducted workshops on the incentives. And they Apollo Theater, the Lenox Lounge, and the have also worked with firms that have Cotton Club. Today, people also see enor- received EZ loans to make sure that they hire mous business possibilities in Upper local residents, as required for the wage tax Manhattan. Many residents are skilled and credits. An impressive range of projects has talented workers who would like to help benefited from this approach. For instance, an restore the area to its glory days of the early integral part of the Bronx at Work program is 1900s. And with the help of the New York utilizing the array of EZ and complementary EZ, these residents are seizing the opportuni- city and State tax benefits available to ty to enable Upper Manhattan to once again employers as a powerful incentive to hire become a symbol of economic and cultural employees from the zone. Approximately $17 vibrancy. million in facility bonds have been authorized in Manhattan for General Motors’ construc- The borough of the Bronx is also well on its tion of the East Harlem Auto Mall, which is way to restoring its one-time economic promi- expected to create more than 250 perma- nence. In 1997 the Bronx won the prestigious nent, high-paying, full-time jobs. All-American City Award, presented by the National Civic League in a national competi- In its 10 years, several of the New York EZ’s tion among America’s most improved commu- many projects have been particularly notable nities. The Bronx’s resurgence has been noted for their ambitious accomplishments. For by local, national, and international media. For instance, when A.L. Eastmond & Sons—a example, Smithsonian Magazine has written: major manufacturer of industrial boilers and “Few are aware of the dramatic turnaround. steel storage tanks based in the Hunts Point Welcome to the good-news Bronx!” A number section of the Bronx EZ—wanted to expand of businesses have relocated to or expanded in its plant, access to capital was scarce. An the Bronx EZ, taking advantage of tax benefits additional 60,000 square feet of production and low-interest loans. space was needed to enlarge Eastmond’s facility and hire 50 skilled workers. With For the EZ, the Bronx has had the particular $250,000 in private capital, Eastmond asset of land available for development. approached the Bronx Overall Economic Taking advantage of this land, for instance, Development Corporation and secured a is the major Fish Market at Hunts Point $450,000 loan. And Eastmond was able to Cooperative Market project, which is bring- train its new employees, many of them EZ ing in 800 jobs at about 70 businesses that residents, for high-paying union jobs with are relocating from the Fulton Fish Market in an EZ grant of $350,000. An additional Manhattan. To provide a smooth transition $100,000 low-interest loan was secured from for these relocating businesses, the EZ has Fleet Bank through the Empire State proposed to provide them with financing for Development Corporation, New York State’s construction, equipment purchases, and economic development agency. These funds

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were used to buy the space directly behind ing in a growing business that is creating Eastmond’s existing headquarters. The suc- high-technology, high-paying jobs for Upper cess of this project, as Eastmond president Manhattan residents. Broadway Video, which Leon Eastmond puts it, is reflected in the fact does video duplication, storage, and transmis- that “A.L. Eastmond is committed to sion of tapes by satellite, is now located on employing and retaining workers in the the site of a former automobile plant, where Bronx so we can continue our expansion into it has heavy freight and power capacity and new markets”—a goal fully supported by EZ access to public transportation. Its projected funding and assistance. first-year revenues were $2 million, and it expected to create at least 20 high-technology Across the Harlem River in Upper Manhattan, and other jobs for EZ residents. other equally imaginative projects have empowered residents with more access to In the South Bronx more than $500,000 in EZ economic opportunity and good jobs. An funding is enabling the Pregones Touring outstanding example has been the develop- Puerto Rican Theater to expand in a neighbor- ment of a credit union in the Washington hood widely recognized as the burgeoning Heights neighborhood, whose residents for- Bronx Cultural Corridor. Pregones has distin- merly had little real access to capital and guished itself as an established theater group were forced to use conventional banks that specializing in Hispanic theatrical plays and often required huge loan collateral or performances. One of the theater’s administra- charged exorbitant interest rates. To remedy tors, Rosalba Rolon, explains that “this funding this lack of affordable credit, two young pub- marks a major milestone in our 15-year history lic school teachers quit their jobs to form a of providing residents from across the city and credit union. The resulting Neighborhood tourists alike, with an affordable way to access Trust Federal Credit Union seeks to provide cultural, artistic, and educational events.” credit and banking services to EZ residents. The credit union got off to a strong start— In bringing these and its many other projects more than 50 people showed up to open to fruition, the New York EZ has had to meet accounts in its first 4 days of business, large the challenge of nurturing cooperative rela- private banks pledged nearly $500,000 in tionships and partnerships among the State, low-interest deposits, and the EZ made a city, and local development corporations, $40,000 grant and nearly $250,000 in low- while maintaining the EZ’s commitment to a interest loans. The credit union has since grassroots approach. “The EZ’s board has facil- prospered, opening up many new paths to itated this coming together,” Marion Phillips economic opportunity for EZ residents. explains. “It has balanced varied interests to build community.” In meeting this challenge Finally, this being New York, the EZ has even and pursuing its many successful projects, the facilitated more show business and culture in New York EZ thus has ensured future sustain- both Upper Manhattan and the South Bronx. able development for the people and commu- In Upper Manhattan the EZ has assisted with nities it has served. the development of Broadway Video, a $1.1 million postproduction facility. In partnership For more information, contact Corporate with Citibank, the EZ lent Lorne Michaels, the Secretary Marion Phillips of the New York producer of the Saturday Night Live television Empowerment Zone, Empire State program, almost $900,000 to buy equipment and renovate an existing building thus invest-

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Development Corporation, at (212) to almost 140 businesses in the EZ, creating 803–3239 or www.nyc.gov/html/om/ more than 1,100 new jobs for EZ residents. html/nyez.html. The EZ’s use of tax incentives has been tied to its efforts to help these same firms grow and prosper. “We work with EZ-based busi- Philadelphia Creates nesses to help them see how they can use Strong Community wage tax credits, which also helps to intro- duce them to the broader EZ goals,” noted Institutions Gladstein. And this effort ties back into the EZ’s strategy of John F. Street, Mayor institution building. of Philadelphia A prime example of the EZ’s Philadelphia, effective institution-building Pennsylvania, EZ approach is its Neighborhood “Our two most important Funding Stream projects in the accomplishments are the com- American Street and North munity-based organizations Central communities, which will we’ve created and the new last long beyond the EZ and institutions we’ve helped to support the sustainability of its start,” said Eva Gladstein, head efforts through several mecha- of the Philadelphia EZ. “These nisms. The funding streams will John F. Street, organizations are facilitating a Mayor of Philadelphia continue the role of the com- variety of strong partnerships, munity trust boards, the EZ’s which in turn have led to a range of new governance bodies, which are responsible for institutions—from business loan pools for identifying community needs and overseeing each neighborhood to local funding streams funding, investment, and spending. The to efforts to transform vacant lots—that will funding streams are helping the EZ’s pro- continue to benefit their neighborhoods long grams to attain sustainability by making after the EZ has finished its work.” grants to projects that meet EZ principles and address its identified funding priorities. The By collaborating with local planning boards, first phase of these projects—making low-risk, community-based organizations, businesses, short-term loans, underwritten by the com- and city agencies, the Philadelphia EZ has munity lending institutions developed by the worked toward a common vision built upon EZ—is nearly complete. Since January 2004 each neighborhood’s strengths to create approximately $7 million derived from loan vibrant communities in three designated sub- principal repayment has been deposited with zones, which together cover a 2.5-square- the city’s funds manager to begin building mile area. Two of these neighborhoods—the the funding streams. In the second phase the American Street and North Central Zones— community trust boards are in the final border each other and are located in the stages of determining funding priorities, and city’s north central section. The third commu- the first disbursement of funding stream nity—the West Philadelphia Zone—is located grants will be made in early 2005. west of center city bordering Fairmount Park. As of 2003 more than 200 loans, ranging To work toward meeting two of its sustain- from $400 to $3.5 million, had been made ability objectives—to develop strong, replica-

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ble program models, and to create a solid Resources leveraged to support the Girard foundation for other public and private Avenue Coalition have included more than investments—the EZ undertook $200,000 in funding from the early action planning for the William Penn Foundation and Mayor Street Neighborhood the Delaware Valley Regional Transformation Initiative, which Planning Commission to devise involved staff from 8 city agen- a comprehensive economic cies, 24 business leaders, and 8 development and land use community-based organizations strategy. Additional funds were (CBOs), along with more than secured to develop a public art 300 residents participating in and gateway project on one community meetings. The EZ’s end of the corridor; the city is work in support of the investing $1 million in related Neighborhood Transformation streetscape improvements. And Initiative has since fostered the Eva Gladstein, Philadelphia the State has made a $5 million creation of two new CBOs, the Empowerment Zone grant for acquisition, infrastruc- American Street Business Advisory ture, and streetscape improvements. Finally, Committee (ASBAC) and the Girard Avenue the coalition has recently formed an inde- Coalition. In cooperation with the EZ, ASBAC pendent nonprofit organization that will and its members have developed a security soon hire its own executive director and is program and a plan for streetscape improve- guided by a board of directors composed of ments for the area and supported projects to community, business, and institutional repre- promote a cleaner business district. Through sentatives. this effort, ASBAC members have made in- kind contributions to the Clean Corridors Most important, the EZ’s work has had an program; worked in partnership with city impact on broader city policy. For instance, agencies to address neighborhood problems; the city is replicating the EZ’s model for such as nuisance properties and illegal vacant land stabilization in six areas, which dumping; and sponsored the maintenance of has been critical to the effort to remove vacant lots. blight and physically transform neighbor- hoods. The EZ’s work has also led the city Along Girard Avenue—an important com- to reform its relocation policies. The city has mercial corridor that cuts through two EZ even begun to consider the EZ’s work on the neighborhoods—the EZ has facilitated the American Street and the Girard Avenue corri- formation of the Girard Avenue Coalition, dors as a model for other neighborhood eco- which has focused on planning and imple- nomic development efforts. menting streetscape improvements and on strengthening the relationships among the The EZ has also emphasized workforce devel- corridor’s businesses, CBOs, and residents. opment. For instance, during the past 4 In addition, the EZ has forged a partnership years, the EZ has benefited from Phila- with the Local Initiatives Support delphia’s receipt of a Youth Opportunity Corporation to support the coalition’s Grant from the U.S. Department of Labor. efforts. This partnership has obtained foun- This grant has supported a partnership of the dation funding to hire a full-time commu- city, the school district, the Workforce nity organizer and to complete a vision Investment Board, the Youth Council, and statement.

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nonprofit organizations that is developing a For more information, contact Executive sustainable system to ensure that EZ youth Director Eva Gladstein, Philadelphia have access to the education, training, and Empowerment Zone, at (215) 686–0457 services needed to make the transition to or www.empowermentzone.org. adulthood. The partnership’s multipurpose youth opportunity centers in each EZ neigh- borhood are friendly and comfortable places A Safe Haven for for both in-school and out-of-school youth. Economic Finally, the EZ has also encour- aged sustainable community Opportunity development by working to fill gaps in city housing programs. Robert A. Baines, In each EZ neighborhood, the Mayor of Manchester community trust boards have created housing loan pools to Manchester, New provide self-sustaining resources for housing development. Other Hampshire, EC programs support housing coun- “Without some sense of personal seling and rehabilitation. In West security, it appeared doubtful Philadelphia, for instance, $2 mil- that we could alter the economic Robert A. Baines, lion in EZ funds is being matched Mayor of Manchester course of the community,” said with almost $4 million in Bob MacKenzie, director of plan- Community Development Block Grant funds ning and community development for for several housing rehabilitation and con- Manchester, New Hampshire, contemplating struction efforts. his city’s successful 10-year run as an EC. “Safety was paramount. It had to come first.” In pursuing these ambitious and successful projects, one of the EZ’s primary hurdles has Manchester’s strategic vision for change had been to manage the expectations of EZ as its foundation the stabilization of the com- stakeholders who want dramatic improve- munity’s urban fabric. “The vision was the ments in their communities. This has involved result of a real grassroots campaign that the EZ’s leaders in educating stakeholders involved the entire neighborhood,” says about the reality of incremental change and MacKenzie. “At the time, Manchester was in the necessity of careful financial checks and tough shape and it was clear that concerns balances. “It has been important to create a about security were scaring people away.” long-term vision to sustain people’s hopes through the EZ process of long-term change,” Using roughly a quarter of its $3 million, explains Gladstein. The Philadelphia EZ’s sus- the Manchester EC funded a community tainable success testifies to the effectiveness of policing program. “People need to know this approach. the policemen in their neighborhood—to be able to put a face with a name,” says Sergeant Kevin Kincaid of the Manchester Police Department. The community police substation, which until 2004 operated out of the Manchester Community Resource Center, used officers in cruisers and on foot,

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bicycle, and horseback to patrol the neigh- facility,” says MacKenzie. Southern New borhoods. Since the program’s inception in Hampshire Services, Catholic Charities of 1995, overall calls for service New Hampshire, and Southern dropped 22 percent, while New Hampshire University criminal activity declined 62 agreed to partner with the city to percent. make the vision a reality. In October 1998 the Manchester “A program like this can be only Community Resource Center as successful as the citizens of (MCRC) opened its doors the community want it to be,” with the mission of helping resi- says Kincaid. “The people here dents attain economic self-suffi- moved this idea forward. They ciency and improve their overall embraced us. There’s a very standard of living by providing strong commitment to making access to employment, educa- this neighborhood safe.” Kincaid tion, information, and referral also credits the police depart- R.S. MacKenzie, Manchester EC Director services in a multicultural environ- ment’s commitment to communi- ment. In August 2003 the collab- ty policing as well as the motivation and orative—having created a fully operational, dedication of individual officers. financially viable 501(c)(3) organization— Some of the largest inroads have been made turned over management of the MCRC to within immigrant populations, “groups that are a volunteer board of directors. traditionally afraid of the police,” he says. “This is an exciting time for us,” says Renie “Those who have been here longest now intro- Denton, MCRC’s executive director, “but duce us to new community members. There’s we’ll need to be vigilant if we are to a high level of trust.” achieve sustainability.” In order to leverage The unit currently has 14 officers, including a limited funds and avoid duplication of serv- full-time senior services officer that works ices, MCRC forms partnerships with a vari- with the elderly. Despite moving the substa- ety of agencies and organizations. “We tion to a more strategic venue, officers con- have to be creative because we work with tinue to hold personal safety workshops at the most difficult to employ. Many are the community center. In 1998 and 1999 immigrants but others have criminal or Manchester’s Community Policing Program poor work histories,” she says. received HUD’s John J. Gunther Best Practices MCRC’s offerings include classes in basic and Award in the area of Economic Opportunity conversational English; soft skills such as per- in Community Policing. sonal hygiene or how to get along with With security concerns being addressed, the coworkers; industry-specific training, driver’s EC turned its attention to economic opportu- education, and life skills. “Our industry- nity. “The cornerstone of our program was specific training has been effective in not only the creation of a neighborhood resource getting jobs for EC residents, but putting center,” says MacKenzie. “This was the single them on a career path,” says Denton. largest investment of EC funds,” he says, “Graduates of our pharmacy tech program “roughly half of our allocation.” can get national certification and earn $15 an hour within the first year.” The pharmacy Wanting the center “to be a true partner- tech training was MCRC’s first blended ship, the city asked for collaborative pro- learning program. This family-friendly pro- posals on how to build and manage this gram combines a specific number of classes

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with online lessons, allowing students to do ated more than 170 jobs in Manchester. In some work from home. fact, one incubator graduate that now resides in more than 10,000 square feet in Job placement services and job fairs are Manchester’s Millyard has hired 55 employ- among the MCRC offerings. In 2004 the ees and recently acquired a spinoff company. center helped 294 people find employment and it sponsored 4 job fairs that were With a $175,000 grant from the EC, ABI has attended by 120 people. Some 149 EC resi- leveraged an additional $266,000 in contri- dents in search of a high-school diploma butions to provide both affordable office attended GED classes and 213 individuals space and technical assistance to start up took part in English as a Second Language companies. “We work closely with several classes. partners to offer workshops of interest to our businesses,” Gustafson says. Topics have Chief among the MCRC’s supportive servic- ranged from creating newsletters to alterna- es is the IRS Tax Return Preparation pro- tive financing and health insurance. “We also gram. In 2004 some 300 returns were have professors from Southern New completed with an average tax refund of Hampshire State University come in and cri- $1,200. The center also coordinates com- tique product demonstrations,” she says. munity events such as the annual Celebration of Cultures. As companies graduate into the greater com- munity—16 have done so since ABI became While MCRC prepares residents for jobs, the operational in 1997—the incubator adds new Amoskeag Business Incubator (ABI) encour- tenants. ABI historically has been either at, or ages job creation. Located in the city’s close to, 100-percent occupancy. The maxi- Millyard District, ABI provides a supportive, mum number of companies to reside in the entrepreneurial environment that stimulates incubator was 23. the growth of resident businesses. Several larger projects are underway in the The Millyard District, which abuts the Manchester EC and while no EC funds have Merrimack River, was a dominant force in been expended on these projects, improve- Manchester’s economy. For more than 150 ments in the social and business climate years, until the last yard of cotton was woven have contributed to their viability. A 10,000- in March 1975, the Amoskeag Mills not only seat civic center opened its doors in shaped the cityscape but the lives and for- November 2001. This $67 million facility tunes of the city’s residents. Roughly 4,900 has been a boon for residents and busi- people reside in the 0.8 square-mile EC, nesses in the EC. The SEE Science Center which encompasses the historic Millyard and the nonprofit group FIRST share space District. in the same building and offer unique edu- Today, it is technology rather than textiles cational experiences for children and young that is finding a home in the EC. “About 50 adults. FIRST’s mission is to enhance knowl- percent of our tenants over the last few edge of technology and electronics through years have been software developers,” says local, regional, and national competitions Julie Gustafson, executive director of the that feature school-age children and young Amoskeag Business Incubator. In addition to adults paired with engineers from private high-technology firms, the types of compa- businesses. nies that have resided in the incubator “If we’ve done nothing else, we’ve changed include light manufacturing, service, and the perception of the city,” says MacKenzie. distribution. Incubator companies have cre-

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“Ten years ago Manchester was a dying, old One novel approach to workforce develop- mill town. We’ve turned it around. And, ment is the EC’s Community Telecom System while our center city neighborhoods are not (CTS). Using telemarketing and voice mes- perfect, people are choosing to go into saging technology, the CTS contacts up to them. Manchester is viewed as a fairly pro- 5,000 residents each month, providing timely gressive city—one people want to move to,” information on employment opportunities he says. MacKenzie admits that although the and job training. It serves as a vital link EC designation and all that it entails will be between employers, nonprofits, and resi- missed, “Manchester has in place the partner- dents. “Our residents’ phones start ringing ships and viable community organizations to whenever we have something of interest to keep us moving in the right direction.” impart to them,” Harper says.

For more information about the Manchester Response to the CTS has been positive. Enterprise Community, contact Louise “People routinely call back wanting more Donington at (603) 624–6450. information—checking to see if they got the right address or if the employer is recruiting for a certain type of skill set,” Innovation Key she says. The telecom system recently disseminated news To Opening about a job fair that attracted more than 800 attendees, Economic Doors many of whom learned about it Phoenix, Arizona, EC through the CTS. “The enterprise community CTS is not a subscription serv- may be expiring, but I’m ice. “We were able to tie this proud to say that the majority system in to all residents within of the programs it put in place the EC that have telephones,” will carry on,” says Jennifer says Harper. Customer satisfac- Harper, project director for the tion is evidenced by the fact Phoenix EC. “Through the EC that since the program started program, we’ve been able to Phil Gordon, Mayor of Phoenix in 2003 “not a single EC resi- give community leaders the dent has said, ‘Take me off,’” she notes. training and information necessary to attract grant monies and sustain their programs.” Located in central Phoenix, the EC is a 20- EC projects have leveraged roughly $21 mil- square-mile area that is home to more than lion in private funds and $64 million in pub- 89,000 people. When the city applied for lic monies for business assistance, job the EC designation in 1994, the population training and linkage, housing, and neighbor- was just more than 70,000. Although hood revitalization programs for its residents, community-based partnerships and sustain- according to Harper. able community development have played a major role in the EC’s development, it is Innovation is at the heart of the Phoenix EC’s economic opportunity that has received strategic vision for change. Using portions of the most attention. As the EC’s 1999 its $3 million allocation as seed money to annual report notes, “Only with a job, an test ideas, the EC has encouraged businesses, income, and the opportunity to accumulate neighborhoods, and nonprofits to explore new ways of tackling old problems.

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assets can residents hope to break out of collateral assistance loan program received the cycle of poverty.” the single largest allotment of EC funds— $416,000. That money, along with $700,000 The Phoenix EC has expended more than $1 in CDBG funds, leveraged an additional $3.6 million on a variety of job-training and place- million to help secure loans for existing busi- ment programs to help increase the employ- nesses from financial institutions. The ability of residents. An example is Project EXPAND (expansion assistance and develop- STRIDE (Successful Training Resources for ment) program partners with lenders to Individual Development), one of the first to make credit available to growing businesses receive EC funding. The program offered life- by providing additional collateral security for and soft-skills training, with job placement as 4 years for requested loans. EXPAND will pro- the ultimate goal. Project par- vide as much as 50 percent of ticipants ranged from former the loan, up to $100,000, to gang members to newly the lender as collateral. In 2004 arrived immigrants to the EXPAND helped create or United States whose lack of retain some 500 jobs, accord- English skills and American job ing to Harper, “with the poten- skills caused significant barriers tial for 1,000 additional jobs.” to employment. Corporate par- ticipants in Project STRIDE— One of the ways businesses such as Bank of America, B.F. find out about EXPAND and Goodrich, Hadco Phoenix, other resources is through the and Marriott Hotels—provided business retention and expan- training and, often, jobs to sion program. Personal visits to residents completing the businesses throughout the EC program. are key to the program’s suc- Jennifer Harper, Phoenix EC cess. Through the visits, EC staff It also has worked to ensure that members determine needs and connect busi- residents with jobs have the opportunity to nesses with nonprofits or governmental enti- advance. The Incumbent Worker Training ties that can offer guidance or provide Link program, supported with CDBG funds, resources. The program, which began in seeks to upgrade workers’ skill levels at busi- 2001, includes about 300 site visits each year. nesses with 300 or fewer employees. There “What is especially nice about this program is have been classes in computer technology, the way in which we’ve been able to tailor safety, customer service, sales, and Spanish. services to the individual businesses,” says One of the eight companies requesting assis- Harper. tance through the program was Auction Tailoring programs to address the challenges Systems Auctioneers & Appraisers of Phoenix, faced by residents in neighborhoods under- which sought Spanish language training for going revitalization has been an EC focus. its employees. The Greater Phoenix Chamber “Even though we’re at the end of the era for of Commerce recognized the owner of this our enterprise community, we are fortunate company as Small Business Person of the in that we’ve been able to leverage $10 mil- Year. lion in CDBG, HOME, State, and city funds to Job retention and creation has been a long- make infrastructure improvements, rehab standing priority within the EC. As a result, a

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homes, acquire land, and proceed with Larry Groth, city manager in Waco, Texas, blight abatement,” says Harper. reflecting on the accomplishments of the local enterprise community development The Capital Mall Association (CMA), a non- commission (ECDC). “The community has profit EC organization, has used EC funds to always been willing to come together, but acquire lots on which it currently is con- our EC designation helped us build some structing nine infill homes. This EC-funded strategic relationships both within and out- project received additional support through side of the city’s boundaries that will contin- mortgage assistance of up to $10,000 in ue to pay dividends.” downpayment costs for certain low- and moderate-income homebuyers. Although increasing economic opportunity has been the cornerstone of the Waco effort, EC funds of $90,000 were able to leverage the ECDC has influenced physical and social some $240,000 in CDBG and HOME funds development within its borders. “Job creation and $700,000 from private lenders to build was by far the biggest need,” says Assistant 30 infill homes in the South Phoenix Village City Manager George Johnson, Jr., “and we neighborhood. Ninety additional units are knew that, to achieve it, we would have to planned. maximize our resources and encourage “The EC designation has really been a plus for innovation.” us in terms of leveraging funds,” says Harper. At its inception in 1995, the ECDC adopted “With our partners we have made key a strategic vision that was holistic in its improvements—sustainable improvements— approach but that emphasized an improved that will continue long after the EC has gone standard of living within the EC through away,” she says. “Our community leaders are enhanced employment options. By drawing more technically astute and the capacity exists upon the experiences and expertise of EC for them to oversee the program long after residents, businesses, nonprofit groups, and the EC has gone.” educational institutions, the resultant vision For more on the Phoenix EC, contact foresaw a community empowered to bring Project Director Jennifer Harper at (602) about change. 262–4730. The Waco EC covers roughly 20 square miles and encompasses not only the city’s down- town but parts of two other Sustainability municipalities: Lacy Lakeview and Bellmead. The district is Through home to more than 37,000 Partnerships people. Many communities within the EC once housed Virginia DuPuy, thriving business districts and Mayor of Waco vibrant neighborhoods. Waco, Texas, EC To stimulate economic develop- “The community partnerships ment, the ECDC used more that have been developed over than a third of its funds to beef the last 10 years will have long- up the services offered by the lasting effects on the economy business resource center and to and quality of life here,” said Virginia DuPuy, Mayor of Waco establish a revolving loan fund.

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“The intent was to give startup businesses and incubator space. Although the bulk of the entrepreneurs—many of whom had good contributions have gone into refurbishing ideas but were not creditworthy—the opportu- the building, some funds are subsidizing nity to blossom and grow, thereby creating occupancy and utility expenses. Brazos River new jobs,” says Johnson. Using Plaza currently is home to the approximately $785,000 in EC office of a Texas State funds and $262,000 in program Representative and a home income, the center has made 31 healthcare company. The polit- loans, with the average loan ical office has 1 intern and 3 totaling a little more than permanent employees, while $36,000. An additional the healthcare office has 2 $748,000 in funds from the onsite workers and between 9 community has yet to be and 15 employees working in loaned. The revolving loan fund private homes, according to has created or retained 153 James E. Rice, Jr., secretary- jobs. administrator of the EWDC George Johnson, Jr. board. Rice is looking forward Assistant City Manager, Waco The business resource center to a new tenant, a branch provides access to the informa- office of a Dallas-based tax tion and training small businesses need to preparation firm. succeed. It also assists businesses in securing credit or additional capital. As a result, the EC “Our mission is to furnish affordable retail has kept or gained 134 jobs. and office space,” says Rice, “but, more than that, our job is to help revitalize this corner of To prepare EC residents for new or better jobs, Waco.” To do so, Rice says his organization several educational institutions and nonprofits has had to become the community’s con- have provided computer training, job-readi- science. “We encourage by example.” A case ness clinics, and industry-specific skills training in point, he says, was the proposed sale of a in areas such as carpentry and small engine building across the street from Brazos River repair. More than 2,700 EC residents have Plaza for use as a tavern. “We convinced a benefited from these offerings. local church to purchase it and turn it into a Next door to the business resource center center for computer literacy. We’re working sits the Brazos River Plaza, which provides with them now to get grants to renovate the below-market-rate office space to busi- building.” nesses. This 13,000-square-foot building, A major blow to this community came in once a supermarket, was donated to the 1990 when Paul Quinn College, a Historic- Eastern Waco Development Corporation ally Black College, relocated to Dallas, thus (EWDC), which then gutted the structure. vacating its East Waco campus. “Before we With just a third of the floor space yet to be got involved, the grass was 10 or 12 feet renovated, the facility features upgraded high and people were living in the aban- utilities, new landscaping, and ample park- doned buildings doing all sorts of things,” ing. says Rodney Clark, executive director of Using $145,000 in EC funds, the EWDC was Quinn Campus, Inc. “Now we’re looking at able to leverage nearly $300,000 in cash transforming the site, turning it into a multi- and in-kind contributions to create the post- faceted complex with facilities for educa-

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tion, technology, economic development, Patterson uses students in the Junior ROTC culture, and recreation,” he says. programs in the La Vega and Connally Independent School Districts to construct An $83,000 investment of EC funds was used the homes. “They do anything we let them, to leverage $1.2 million from the city of Waco from clearing the lot to squaring the slab, to renovate a building for use as a civic center. framing the doors and windows, and help- The design of this multipurpose facility, which ing with the sheet rock and landscaping,” opened in fall 2004, provides for community he said. The homes are then sold to first- use and allows for overflow business from the time buyers. “So far, we’ve built four in convention center. The EC investment has Bellmead and four in Lacy Lakeview.” sparked interest in the site from other non- profit groups including the YMCA, which is Community Haven partners with Neighbor- constructing a 32,000-square-foot facility that hood Housing Services to construct the will offer state-of-the-art amenities such as a homes. It works with local school districts swimming pool; aerobics, youth, teen, and to find surplus land and the city of Lacy computer centers; classrooms; locker rooms; Lakeview waives fees and helps haul off and fields for football and baseball. As the debris. “It’s a wonderful, collaborative city’s EC designation was set to expire at the effort,” says Patterson. end of 2004, five buildings were under reno- vation and more than $7 million had been The creation of two healthcare clinics has committed to renewing the Quinn campus. allowed Community Haven to keep resi- dents in school and on the job. Initially Not only does the Quinn Campus exemplify based in local schools, the clinics have sustainable community development, it also since relocated to other buildings within highlights the importance of partnerships. the communities. The healthcare compo- Habitat for Humanity, Faith Covenant nent is another collaborative effort, says Services, Rapoport Academy, and the Baylor Patterson, in that Community Haven has University internship program are all working partnered with the Family Practice Center on the Quinn Campus offering services to EC to obtain a foundation grant to allow the residents and other community members. clinics to operate.

Partnerships also are key to the success of Community Haven also provides afterschool Bellmead-Lacy Lakeview Community Haven, recreational, tutoring, and character- which administers home construction, education programs using students from healthcare, and youth programs. Since its Baylor University. inception in 1995, Community Haven has served close to 5,000 EC residents. The EC “Our group is focused on a 60-square-block provided $180,000 in funds to get the pro- area in the EC,” said Mike Stone, executive gram off the ground. Additional public and director of Waco Community Development private funds of $126,000 and in-kind contri- Corporation (WCDC), “and our focus is easy butions of $40,000 have allowed to remember—HOME.” Community Haven to move forward. The “H” is for housing. “We provide counsel- “It takes a whole year for us to construct a ing and construction,” said Stone, “to get house, but it’s worth it,” says Alvin Patterson, people into homes.” WCDC has helped 11 project coordinator for Community Haven.

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families find homes, built 5 houses, and reno- allowed us to make real inroads in the bank- vated 2 others. ing community.”

Under “O” comes opportunities. Some 600 A different type of housing—transitional—is potential homebuyers have contacted the focus of Compassion Ministries, the WCDC. “About 140 were serious and filled recipient of a $50,000 EC grant. The funds out an intake form,” he says, “and 75 are allowed Compassion Ministries to build a now in active credit counseling.” duplex behind its new 10-unit shelter and to renovate space for offices, community “M” stands for maintenance. With many use, and a clothes closet. “We now have a homes approaching the 100-year mark, capacity of 60 beds—12 families and 8 sin- WCDC recruits groups to service homes in gles,” says the group’s executive director, the neighborhood. Jill McCall. “This was truly a community Economic development is what the “E” rep- effort. Individuals, private foundations, and resents. “We’re constantly talking to small government entities all worked in an business groups, telling them about the aggressive manner to ensure that homeless opportunities here,” he says. families with children were not without some place to go,” she says. Having received $38,000 from the EC in 2001 to cover startup costs, WCDC has As Waco’s Enterprise Community Develop- attracted more than $200,000 in outside ment Commission prepares to disband, its funding. “The EC grant allowed us to pull focus is on ensuring the sustainability of the together demographic and housing info and organizations, structures, and partnerships create a master plan,” says Stone. “That doc- that have been created during its decade- ument has made a world of difference and long existence. “We’ve worked to keep the entire community plugged in and participat- ing,” says Johnson. “That created buy-in, which was particularly important as EC funds became less available. Our expectations for continued success here in Waco are high.”

For more information about Waco’s Enterprise Community Development Commission, contact Economic Development Liaison April Hull at (254) 750–5640 or [email protected].

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10 Years After Designation

Baltimore Empowerment Zone The Baltimore EZ reports a 6 percent increase in homeownership, a 60 percent reduction in crime, 5,700 new jobs, more than $1.2 billion in public and private investments, $1 billion in physical development, and engaged partnerships with John Hopkins University and the University of Maryland.

Camden Crossing is a new market-rate housing com- munity in Washington Village-Pigtown. The Baltimore EZ helped the developer overcome project challenges.

Baltimore’s largest hotel, the 741-room Marriott in the EZ, has hired many local residents as a result of partnership assistance from Baltimore EZ leadership.

The Baltimore EZ invested $1 million in a parking garage for a $300 million University of Maryland biotech park in the Poppelton community.

Albemarle Square has 340 units for rental and owner- ship. The Baltimore EZ helped to facilitate the resi- dent engagement effort and land use plans.

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Baltimore Empowerment Zone

Groundbreaking at the University of Maryland, Baltimore Biotech Park. Mayor Martin O’Malley, Congressman Elijah Cummings, and UMB President Dr. David Ramsey are among those pictured.

A community cleanup in Self Motivated Community People’s Village Center.

Mayor Martin O’Malley addresses the Baltimore busi- ness community at the groundbreaking for the University of Maryland, Baltimore Biotech Park while Congressman Elijah Cummings and Dr. David Ramsey, President of UMB look on. New housing being constructed in the Empowerment Zone.

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Chicago Empowerment Zone The Chicago EZ has provided services to 76,000 residents through childcare centers, healthcare facilities, and education, and job-training programs. The EZ’s housing projects have directly benefited an estimated 1,000 residents by combining $68 million in leveraged funds with $19 million in Social Services Block Grant funds.

The Hearts United Housing EZ Social Services Block Grant funds are used to leverage additional funds and construct new housing units.

The Afrocentric Bookstore, Inc., received the zone’s direct grant initiative funds to create an anchor for area youth by adding a children’s reading room on the second level of its new location.

Prairie Park housing units is another example of leveraging EZ Social Services Block Grant funds.

The Harold Washington Cultural Center in the Bronzeville area of Chicago received a Social Services Block Grant to fund its construction.

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Chicago Empowerment Zone

The Renaissance Center, which provides 100 assist- ed-living units for senior residents, used a Social Services Block Grant of $1.3 million to leverage funds for the construction of the $10 million facility.

The Chicago Better Housing Association used Social Services Block Grant funds to leverage additional funds for the construction of new units.

Barbara Wright, president of Wright Fit Uniforms, Inc., used the direct grant initiative to expand her business and create jobs for zone residents.

The Austin Wellness Center is an example of Chicago’s commitment to build and expand medical centers that include service delivery networks, child and family service centers, and primary healthcare facilities.

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Detroit Empowerment Zone Detroit’s EZ is home to an estimated 85,000 residents and 3,000 businesses. In the Zone, Bridgewater Interiors alone receives wage credits for more than 300 employees. Detroit extended its designation through 2009 to continue to take advantage of the $5 billion tax incentive package available to busi- nesses located in EZs. The extension allows the Detroit Zone to continue its marketing of tax incentives to zone businesses.

Clark Park Coalition transformed a neglected park into an oasis for intergenerational sports and an array of recreational programs with an initial EZ investment of $150,000 to secure an estimated $1 million in private contributions. Bridgewater Interiors uses wage tax credits to employ 300 workers in the manufacturing of automobile seats. Bridgewater estimates that it has saved close to $1 million since joining the program.

Clark Park’s Early Childhood Playground provides new recreational opportunities for area residents.

Clark Park has the last surviving ice rank in the department of recreation. The restored rink serves families and attracts hockey players that are mentors to young enthusiasts.

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Detroit Empowerment Zone

Toyia Watts, president of Communities United Together, talks with residents about neighborhood empowerment and community policing.

Shorebank Development Corporation brought new vitality to the zone. Since 1997 it has spent $1 million to purchase residential properties and grant commer- cial loans.

Bridgewater Interiors, a minority-owned company, is a major supplier to General Motors.

The Detroit Empowerment Zone allocated $13 million for affordable housing through Housing and Community Partners.

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New York City Empowerment Zone In its report on effective international community projects, the British International Web site recognized New York’s EZ for its accomplishments in creating business growth and jobs in Harlem and the Bronx. Smithsonian Magazine said it best when it wrote, “Few are aware of the dramatic turnaround. Welcome to the Good News Bronx” where Zone businesses continue to take full advantage of tax benefits and low-interest business loans.

The upper Manhattan EZ provided $3.1 million in construction financing for the Gateway Building at 125th Street and Lexington Avenue, leveraging $6 million in private equity for this retail and office building completed in 2001.

The East Harlem Auto Mall was financed with tax- exempt New York EZ facility bonds.

The Harlem Center, an $85 million, 300,000-square- foot building with office and retail space at 125th Street and Lexington Avenue, was completed in The Harlem Children’s Zone, a $44 million headquar- November 2002 after New York EZ investments in ters for a nonprofit educational organization, home to commercial real estate nearby proved financially a K–5 charter school and medical and dental clinics at successful. 125th Street and Madison Avenue. The building was dedicated in January 2005 with Congressman Charles B. Rangel as speaker.

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New York City Empowerment Zone

The New Leaf Café in Ft. Tryon Park received funding through a New York EZ grant. La Marqueta, the former Moore Street Market, is now home to 14 independent vendors serving the Latin American community in Brooklyn.

A New York EZ loan helped to finance the new Gotham Plaza in Upper Manhattan.

The National Track and Field Hall of Fame is a place where technology brings track and field to life, capturing the achievements of such greats as Jesse Owens, Jim Ryun, and Jackie Joyner Kersee.

EZ Success 179 SECTION 6

Philadelphia–Camden Empowerment Zone The Zone’s accomplishments point to a well-traveled path marked by a common vision shared by residents, local planning boards, community-based organizations, and city agencies across this two-state Zone. In keeping with the adage that a picture is worth a thousand words, these photos provide a glance of just a few of the EZ’s accomplishments over the past 10 years.

Philadelphia EZ

Tastykake uses wage credits for 43 of its employees.

Calcutta House at 1601–03 West Girard Avenue provides supportive housing and care to adult men and women with AIDS in Philadelphia.

7 Ben Franklin Parkway, the United Way of Southeastern Pennsylvania Building. The United Way manages the Neighborhood Funding Stream, a legacy fund using allocations from the American Street and North Central Empowerment Zones.

More than 19 acres of vacant land have been cleaned and greened in the past 3 years in Philadelphia, funded by the EZ with murals created by the Mural Arts Program.

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Philadelphia–Camden Empowerment Zone

Camden EZ

The Camden EZ provides up to $2,500 in awards to local residents to help cover closing costs when pur- chasing a Royal Court Townhome. Applicants must reside in the EZ and secure a mortgage for the townhome. I Saw a City Invincible, the new mural on the South Jersey Legal Services building in the Camden EZ illus- trates justice through the actions of past and present Camden residents. The mural was planned in community meetings and painted by Cesar Viveros, an EZ resident.

The Camden EZ used $7 million in facility bonds to help build a minor league baseball stadium, Campbell’s Field, recognized in 2003 and 2004 as the Independent Baseball “Park of the Year”. This 6,450-seat venue at the base of the Ben Franklin Bridge in the EZ gives fans a great view of the The USS New Jersey, built in the Camden-Philadelphia Philadelphia skyline. port from 1940–42, is anchored near Lanning Square. The EZ provided a $1 million grant to construct a museum and visitors’ center on the ship. The EZ pro- vides technical assistance to help use this museum as a source for employment and training opportunities for EZ residents.

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Waco, Texas; Phoenix, Arizona; and Manchester, New Hampshire Enterprise Communities Designations for Enterprise Communities ended in 2004. However, these three Enterprise Communities are selected as showcase communities because of their successes in carrying out their strategic plans and in making a positive difference in the lives of their residents.

Waco Enterprise Community

The Business Resource Center, located next to the The Waco EC helped to finance startup Brazos River Plaza, used Waco EC funds to create costs of the Waco Community a revolving loan fund that has made more than 30 Development Corporation, which con- loans to businesses to stimulate economic develop- structs new homes and focuses on related ment within the EC. economic development issues to revitalize a formerly neglected area of north Waco.

Compassion Ministries’ newly renovated headquar- The Connally Community Clinic is one of two com- ters and community center, funded in part by the munity clinics established in an underserved area of Waco EC, provides office space, a clothing closet, Lacy Lakeview with financial assistance from the program meeting space, and an area for residents Waco EC. to receive visitors.

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Phoenix Enterprise Community

The Arizona OIC facility provides job-skill training classes for EC residents.

Dental clinic located in the I.G. Homes Boys and Girls Club was among the first EC funded project.

EC funds were used to leverage private dollars to complete this style of single family home in the Capital Mall EC neighborhood.

Gene Blue and the Phoenix Opportunities Industrial Center (OIC) work with the EC to increase the education and economic opportunities of low- income Phoenix area residents by providing various skills training and education programs.

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Manchester Enterprise Community

Patrolling on bicycle or horseback, Manchester’s Community Policing Unit, financed partly by the Manchester EC, has had the dramatic impact of In partnership with The Caregivers and the reducing neighborhood crime and enhancing the Manchester EC, a member of the Community city’s overall sense of safety. Policing Unit helps to deliver Valentine treats to elderly shut-ins in the EC neighborhood.

Teens settle in to take the GED exam at the Manchester Resource Center, which was financed partly through a Manchester EC grant. The Amoskeag Small Business Incubator in the city’s historic mill yard, funded partly by the Manchester EC, provides office space and support services to fledgling businesses, including software, Internet design, and information systems compa- nies. One beneficiary is James Andrus (above), president of Netro City, whose business intelligence software company now employs about 10 people.

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APPENDIX: Current Renewal Communities and Empowerment Zones as Designated by HUD APPENDIX

HUD DESIGNEES Mississippi Urban West Central Empowerment Renewal Mississippi (U) Zones (EZs)-30 Communities New Jersey (RCs)–40 Camden (U) Round I Urban EZs–5 Newark (U) Illinois Urban (U)–28 New York Chicago Rural (R)–12 Buffalo-Lackawanna (U) Maryland Alabama Jamestown (R) Baltimore Greene-Sumter (R) Niagara Falls (U) Rochester (U) Mobile County (U) Michigan Schenectady (U) Southern Alabama (R) Detroit North Dakota California New York Turtle Mountain Band Los Angeles (U) New York of Chippewa (R) Orange Cove (R) Pennsylvania/New Parlier (R) Ohio Jersey San Diego (U) Hamilton (U) Philadelphia/Camden San Francisco (U) Youngstown (U) Georgia Pennsylvania Supplemental Round I Atlanta (U) Philadelphia (U) EZs–2 Illinois South Carolina California Chicago (U) Charleston (U) Los Angeles Kentucky Tennessee Ohio Eastern Kentucky (R) Chattanooga (U) Cleveland Memphis (U) Louisiana Round II Urban EZs–15 Central Louisiana (R) Texas New Orleans (U) Corpus Christi (U) California Northern Louisiana (R) El Paso County (R) Santa Ana Ouachita Parish (U) Vermont Connecticut Massachusetts Burlington (R) New Haven Lawrence (U) Washington Florida Lowell (U) Tacoma (U) Miami-Dade County Michigan Yakima (U) Indiana Detroit (U) Wisconsin Gary-Hammond-East Flint (U) Milwaukee (U) Chicago

Appendix 187 APPENDIX

Massachusetts Tennessee Arkansas Boston Knoxville Pulaski County Minnesota Texas California Minneapolis El Paso Fresno Missouri/Illinois Virginia Florida St. Louis/East St. Louis Norfolk-Portsmouth Jacksonville New Jersey West Virginia/Ohio New York Cumberland County Huntington/ Syracuse Ohio Ironton Yonkers Cincinnati Oklahoma Columbus Round III Urban EZs–8 Oklahoma City South Carolina Arizona Texas Columbia-Sumter Tucson San Antonio

188Spotlight on Results U.S. Department of Housing and Urban Development www.hud.gov/CR

FY 2005