Capturing Successes in Renewal Communities 

and Empowerment Zones 

Spotlight 

on Results 

Spotlight 

on Results
Spotlight on Results
ABOUT THIS PUBLICATION


About This Publication 

T he Bush $11 billion Tax Incentives 

package available to Renewal 

Community and Empowerment 

Zone businesses and $15 billion 

New Markets Tax Incentive Program are proving to be a viable option in fostering the 

entrepreneurial spirit in our Nation’s urban 

and rural areas. Spotlight on Results: Capturing Successes in Renewal Communities and 

Empowerment Zones highlights the successes 

of the tax incentives and celebrates successful 

programs and projects taking place in RCs 

and EZs that exemplify the principles of the 

Community Renewal Initiative. 

Spotlight on Results: Capturing Successes in 

Renewal Communities and Empowerment Zones 

provides sterling examples of the Administration’s new approach in assisting RC/EZ 

designated areas. President Bush believes 

that these low-income areas are best served 

by allowing the genius and can-do attitudes 

of America’s entrepreneurs to take root in 

designated areas. 

Fostering an environment that is both friendly to business interests and one that strongly 

supports capital investment requires a departure from the traditional way of meeting the 

challenges of RC/EZ communities. The initial 

concept was a grant approach for Round I 

EZs and ECs coupled with a minor emphasis 

on the promotion of tax incentives. This concept evolved over time into an approach that 

strongly emphasized the importance of tax 

relief for RC/EZ businesses. The Administration has made the $11 billion tax incentive 

package and the $15 billion in New Markets 

Tax Credit Program the centerpiece of its 

strategy for creating economic opportunities 

in low-income areas. This strategy focuses on 

the creation of prosperity through jobs and 

business expansion and on building strong 

and viable private and public partnerships as 

the most effective way to meet the challenges of these areas. 

Spotlight on Results highlights many of the 

successes resulting from the Administration’s 

efforts for achieving economic prosperity in 

RC and EZ designated areas. Section I of this 

publication provides anecdotal evidence that 

tax incentives are clearly working, particularly 

for RCs and Round III EZs. These designees 

have built strong partnerships, shown an 

unwavering commitment to the successful 

marketing of tax incentives, and have acted 

to remove many of barriers that tend to 

handicap the full utilization of the tax 

incentives. 

The publication also provides a balanced 

portrait of the successes that Rounds I and II 

Zones have experienced in using local and 

federal funds to promote job training, and 

technical and financial assistance. Their stories are grouped together under such themes 

as “Businesses Advancing with Technical 

and Financial Assistance” and “Residents 

Advancing with Job Creation and Training 

Assistance.” These sections illustrate how 

EZs have used available local and federal 

resources. Furthermore, there are several 

notable illustrations depicting how RCs have 

worked with local partners to help businesses 

open and expand and to assist residents find 

employment and learn new job skills. 

Spotlight on Results also contains additional 

stories about community services available to 

RC and EZ residents through: Innovative 

leveraging of private and public resources for 

activities focusing on assistance to RC/EZ residents to obtain low-income housing; AfterSchool programs; increased access to 

healthcare and childcare; and a variety of 

About this Publication iii 
ABOUT THIS PUBLICATION 

other services. Stories on these successes 

appear in the sections under “Families Improving with Community Services and Development,” and “Families Advancing with Housing 

and Homeownership Assistance.” 

We hope you enjoy this first volume of 

Spotlight on Results: Capturing Successes in 

Renewal Communities and Empowerment 

Zones. We also hope that the successes outlined in this volume encourage you, as a 

community leader or business owner in or 

near a RC or EZ, to take advantage of the 

valuable RC/EZ incentives in your community. 

To obtain additional complimentary copies of 

this guide or other Community Renewal publications, including the Tax Incentive Guide 

for Businesses in the RCs, EZs, and ECs and 

Tax Incentives + Businesses=Jobs: A Marketing Primer on How to Entice Businesses to 

Renewal Communities, Empowerment Zones, 

and Enterprise Communities, please call HUD’s 

Community Connections Information Center 

at (800) 998-9999. 

To determine whether a business is located in 

an RC or EZ, and whether the employees live 

in these areas (allowing the business to be 

eligible for a share of $11 billion in RC/EZ 

tax incentives), please visit HUD’s RC/EZ 

Address Locator on the Internet at 

www.HUD.gov/crlocator. 

For more information on HUD’s RCs and EZs, 

on the incentives available to businesses in 

these communities, and for maps of the 

designated areas, please visit HUD’s Office 

of Community Renewal Web site at www. 

hud.gov/cr or call HUD’s Community 

Renewal Office at (202) 708-6339. For 

more information on USDA’s rural EZ initiative, please visit USDA’s Web site at www. 

ezec.gov. 

iv Spotlight on Results 
“The role of government is to create an environment that encourages capital flows and job creation 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 

“The spirit of the small business owner is strong in 

America. Remember when you cut income tax 

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 

“We lowered marginal tax rates and 

reduced multiple taxation on investment. 

As a result, 25 million small business 

owners saved an average of $3,000 and 26 million 

investors saved nearly $800 apiece. The cumulative benefit is clear, both in terms of family budgets and business 

investment. Real after-tax income is up nearly 10 percent 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 
“This publication illuminates the successes 

of urban and rural communities thriving in an 

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 message of hope and provide a powerful stimulus for continuing 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 

“Recognizing the inextricable link between 

sound fiscal policy and creating an environment that inspires and nourishes America’s 

entrepreneurial innovative spirit, I have seen and heard 

over the past four years first hand from those communities 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 publication 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 
“I am pleased to present Spotlight on Results as one of 

my first actions as Assistant Secretary for Community 

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 

“S potlight on Results is a testimonial to the successes 

occurring in our nation’s urban and rural communities through wise tax policies, thoughtful leveraging 

of public and private resources, and strong support of community 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 vii 
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, affordable 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 designated 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


T he Community Renewal initiative has 

been an interagency effort focused 

on creating self-sustaining development in distressed urban and rural 

Renewal Communities (RCs) and Empowerment 

Zones (EZs) throughout the country. The initiative supports a holistic approach to development 

that requires community stakeholders to work 

together to create and implement comprehensive courses of action and strategic plans for 

revitalization. 

Using a combination of $11 billion in Federal 

tax incentives, flexible grant funds, and other 

resources, the RC and EZ leaders and local partners are reinvigorating businesses and entire 

communities that were previously in decline. 

Business owners are now eligible for billions 

of dollars in tax incentives by operating or 

expanding in the RCs and EZs and by employing 

residents of these areas. As a result of these 

incentives and other resources of the Community Renewal initiative, new businesses in the 

RCs and EZs are opening and expanding, more 

residents are becoming employed, and new 

community services are becoming available. 

More than 3,575 neighborhood-based projects 

and programs have been developed and are 

underway as a result of each EZ strategic plan. 

Federal seed money and tax incentives of $1.3 

billion have leveraged almost $18 billion in 

additional public—and private—sector investments. According to a 2004 publication, 

Success Stories Round II Urban Empowerment 

Zones, the 15 Round II EZs reported that they 

leveraged more than $3.5 billion in public and 

private funding, or $11.55 for every $1 of EZ 

grant funds. They also created or retained 

18,125 jobs. According to the Performance 

Measurement System (PERMS), in 2003 Round 

II EZs received $3.14 in leveraged funds for 

every $1 of EZ grant funds put into job creation projects. 

In 2001, 28 urban communities and 12 rural 

communities received RC designations from 

the U.S. Department of Housing and Urban 

Development (HUD). In addition, 30 urban 

communities have HUD EZ designations. In 

Round I four urban communities were designated as Enhanced Enterprise Communities, 

and, as such, were eligible for tax-exempt 

bond financing. Part of Washington, D.C., 

has HUD’s only Enterprise Zone designation. 

Ten rural areas throughout the country have 

EZ designations from the U.S. Department of 

Agriculture (USDA). 

Round I and Round II Urban 

Empowerment Zones 

In 1994 HUD designated six urban EZs during the Round I competition. HUD also designated parts of Cleveland and Los Angeles as 

supplemental EZs and these areas received 

full EZ status in January 2000. In 1999 HUD 

made 15 additional urban EZ designations in 

Round II. The D.C. Enterprise Zone designation period began in January 1998. 

Round III Empowerment Zones 

and Renewal Communities 

In December 2000 Congress authorized nine 

new EZs in a third round of designation, with 

seven of the EZs planned for urban areas and 

two for rural areas. Congress also authorized 

the designation of 40 RCs. The goal of the 

new RC program, like that of the EZ initiative, has been to promote economic development in communities distressed by high 

levels of poverty and unemployment. 

Businesses in the RCs and new EZs became 

eligible for billions of dollars in Federal tax 

incentives to hire local residents and expand 

operations. 

Introduction Introduction xv
INTRODUCTION 

On December 31, 2001, HUD designated 28 

RCs in urban areas and 12 more in rural 

areas. The law required an EZ or one of the 

former Enterprise Communities (EC) to forfeit 

its designation if any of its geographic area 

was included in one of the RCs. Due to this 

law, the Atlanta EZ, 16 urban ECs, and 3 

rural ECs lost their designations. The loss of 

the Atlanta EZ designation enabled HUD to 

designate eight new EZs instead of seven in 

Round III. USDA designated to rural Round II 

EZs in Maine and Texas. The 8-year designation period for the new RCs and EZs began 

on January 1, 2002. 

A Treasury and HUD Partnership 

To Promote New Markets Tax 

Incentives 

Throughout this publication are examples of 

the effectiveness of Federal, State and local 

partnerships in assisting low-income communities increase economic opportunities 

through business development and expansion. One such partnership currently exists 

between Treasury and HUD as they couple 

their efforts to aggressively promote and 

promulgate the following New Markets Tax 

Credit (NMTC) information to their respective constituents. 

The NMTC Program objective is to stimulate 

economic and community development and 

job creation in low-income communities. 

This program provides an innovative path for 

attracting needed capital from the private 

sector and for reducing the federal burden 

of providing direct grants to low-income 

communities. 

Under the NMTC Program, taxpayer investors receive a credit against Federal 

income taxes for making qualified equity 

investments in designated Community 

Development Entities (CDEs). Substantially all 

of the qualified equity investment must in 

turn be used by the CDE to provide investments in low-income communities, including 

RCs and EZs. The credit provided to the 

investor totals 39% of the cost of the investment and is claimed over a seven-year credit 

allowance period. Throughout the life of the 

NMTC Program, Treasury is authorized to 

allocate to CDEs the authority to issue to 

their investors up to the aggregate amount 

of $15 billion in equity as to which NMTCs 

can be claimed. 

The benefits of the NMTC Program flow to 

both the investor and the business borrower. 

The investor invests capital funds in the lowincome area, and by so doing receives a tax 

credit. The formula for determining credit 

over the seven year period is as follows: during the first three years of the investment, 

five percent of the total amount paid for the 

stock or capital interest at the time of purchase, and the tax credit during the final four 

years is increased to six percent annually. 

To claim the credit for a year, the investor 

must hold the qualified equity investment on 

the credit allowance date for that year. The 

credit allowance date is the date you make 

the initial investment and applies to each of 

the next six anniversary dates. 

Businesses also benefit from the NMTC program, as private sector resources are made 

available to them to better meet their short 

and long term financial needs through 

increased loans and financial technical 

assistance. 

In three rounds of NMTC allocations made 

since 2002, the Treasury has made 170 

awards of NMTC allocations totaling $8 

billion in tax credit authority, leaving 

$7 billion still to be allocated. For more 

information about the next allocation cycle, 

including the application process, visit the 

Treasury website at www.CDFIfund.gov. 

xvi Spotlight 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
Atotal of $11 billion in special 

tax incentives is available to 

businesses that operate in 

Renewal Communities and 

Empowerment Zones and that employ residents of these areas. The most popular of 

these tax incentives is the RC/EZ wage credit. 

Businesses that hire and retain RC/EZ 

residents can apply tax credits against their 

Federal tax liability. If a business owes 

$50,000 in Federal taxes and has $20,000 

in RC/EZ wage credits, it would owe only 

$30,000 in taxes. These credits are worth up 

to $3,000 per employee per year to businesses in EZs and $1,500 per employee per year 

to businesses in RCs. 

HUD’s Office of Community Renewal is working with the Internal Revenue Service (IRS) to 

determine the current total value of wage 

credits that RC and EZ businesses claim annually. According to a 2004 General Accounting 

Office report, the IRS estimates that 24,000 

tax returns filed in EZs from 1995–2001 

saved businesses more than $250 million. In 

1995, according to an IRS study of businesses 

nationwide, only 432 businesses claimed EZ 

wage credits. In 2001 this figure escalated to 

more than 7,000 businesses. 

HUD found that EZ wage credits influence 

employment decisions that business owners 

make in the EZs. According to a 2000 survey 

of Round I EZ business owners that claimed 

EZ wage credits, 45 percent of the owners 

stated that their savings from the EZ wage 

credits were “very important” or “somewhat 

important” to their decisions to hire and 

retain employees. HUD found that businesses 

that used the EZ wage credits in 1996 and 

1999 experienced, on average, greater 

increases in the number of EZ residents 

employed than firms located in the EZs that 

did not claim EZ wage credits. HUD is working with the IRS and other agencies to collect 

SECTION 1 

similar national data on the use of wage 

credits in the RCs, whose designations began 

in 2002. 

The Work Opportunity Tax Credit (WOTC) is 

another valuable employment credit for business owners in RCs and EZs. Employers 

receive a one-time WOTC of up to $2,400 

per employee by hiring 18- to 24-year-old 

employees who live in the RCs or EZs. The 

2000 survey of businesses in the Round I EZs 

showed that WOTCs also influence employment decisions that EZ business owners have 

made. Fifty-eight percent of business owners 

that claimed the WOTC stated that their savings from the credits were “very important” 

or “somewhat important” to their decisions 

to hire and retain employees. It appears that 

without these credits, business owners 

throughout the RCs and EZs would not have 

hired as many local residents. 

According to data reported by the U.S. 

Department of Labor (DOL), WOTC utilization jumped 20 percent with the designations of the RCs and Round III EZs, from 

47,700 (12.1 percent) of the overall WOTC 

totals in 2001 to 56,800 (14.2 percent) in 

2003. DOL data showed a 24-percent 

increase in WOTC claims in RCs and EZs after 

HUD designated the RCs and Round III EZs in 

December 2001 from 42,947 claims for tax 

year 2001 to 53,058 claims for tax year 

2002. 

If you would like additional information on 

any of the success stories on wage credits in 

this section, please consider calling the RC 

or EZ directly using the contact information 

that appears at the end of every story. In 

addition, to determine whether a business 

is located in one of the RC/EZs and may be 

eligible for wage credits, please visit HUD’s 

RC/EZ Address Locator at 

www.hud.gov/crlocator. 

EZ and RC Tax Incentives 3 
SECTION 1


Wage Credits

EZ Manufacturer Uses 

Its Tax Credits To Help 

Employees Buy Homes 

Baltimore, Maryland, EZ 

“We get the tax credit because of our 

employees, so why shouldn’t they share in 

the benefit?” This is how Stuart Walman, 

manager of Medo Manufacturing in the 

Baltimore EZ, explains the reasoning behind 

his company’s homeownership grant program. 

With more than 400 employees, Medo 

Manufacturing, a maker of air fresheners 

and related products, is one of the largest 

businesses in Baltimore’s EZ. Medo has a 

strong commitment to hire local residents. 

As an EZ business that hires zone residents, 

Medo is entitled to a Federal wage tax credit 

of up to $3,000 per EZ employee. This commitment has translated into more than $1 

million in wage tax credits for the business 

since 1994 when the Baltimore EZ was 

designated. 

“We have dedicated employees who work 

hard every day to make our company a success,” explained Walman. “We want to give 

something back to our employees and they 

deserve it.” 

What Medo decided to do for its employees 

was to use savings from EZ wage tax credits 

to fund a homeownership grant program. 

Medo awards $2,000 to employees who purchase homes in the EZ. 

Medo employees Jan Hoover and Bruce 

Griffiths were the first to take advantage 

of the company’s new program. Hoover, 

Griffiths, and future Medo employees who 

purchase homes in the EZ will receive $1,000 

after settlement and another $1,000 one year 

later. 

“Medo is the first company to let us know 

about a project developed with funds saved 

by taking advantage of the Empowerment 

Zone wage tax credit,” said Empower 

Baltimore Management Corporation (EBMC) 

former President and CEO Diane Bell. “We 

are excited to partner with a company that 

has developed a creative way to give a perk 

to their employees that also is a benefit to 

the community,” she added. EBMC administers the Baltimore EZ program. 

Employees can use Medo’s $2,000 grant in 

conjunction with a separate grant of up to 

$5,000 from EBMC’s Housing Venture Fund 

to cover settlement costs. EBMC has designated $4.7 million of EZ funds to the fund, 

which provides grants (949 awards as of 

February 2004) to help low- and moderateincome individuals and families purchase 

homes in the EZ. 

For more information on the programs of the 

Baltimore EZ, please contact Tanya Terrell, at 

(410) 783–4400. 

Blue Info Cards Help 

Jobseeking RC Residents 

Market Tax Credits— 

and Themselves 

Buffalo-Lackawanna, New York, RC 

“The address of the Renewal Community resident has value,” pointed out Caroline Bright, 

associate employer services representative of 

the New York State Department of Labor and 

a key partner in the Buffalo-Lackawanna RC. 

“That address could be worth a $1,500 

Federal tax credit to the employer who finds 

EZ and RC Tax Incentives 5 
SECTION 1 

that the employee lives and works in the 

Renewal Community.” 

But how to be sure that both RC residents 

and potential employers are aware of this 

benefit? For Bright and her staff at the 

Buffalo office, the answer was a bright blue, 

laminated “Resident Awareness” card. 

The card, provided to all jobseekers who are 

residents of the RC or the New York Empire 

Zone who visit one of the Department of 

Labor sites in Buffalo, states the following: 

ATTENTION EMPLOYER: by hiring the 

bearer of this informational card, your company may be entitled to several tax credits, 

including: 

●	 Welfare to Work tax credit. 

●	 Work Opportunity tax credit. 

●	 Empire Zone Credit (New York State tax 

program requiring local certification). 

●	 Renewal Community employment credit. 

The card lists phone numbers for followup 

information and serves two purposes. It 

informs residents that among their other 

qualifications for employment, they bring 

with them a potential tax credit to the 

employer, and it also identifies for potential 

employers the specific programs from which 

they may benefit. 

The RC plans to carry out a survey on card 

usage and response. In the meantime, the 

RC has helped build a bridge between local 

residents and employers. The blue laminated 

card serves as a reminder to all that RC residents have value. 

For more information on the programs 

of the Buffalo-Lackawanna RC, please call 

Bonnie Kane Lockwood at (716) 851–5468. 

RC Wage Credits Boost 

Bottom Line for Vermont 

Pub & Brewery 

Burlington, Vermont, RC 

Vermont Pub & Brewery, a Burlington, 

Vermont, restaurant that crafts its own varieties of ales and lagers, was able to claim 

$22,380 in RC wage credits on its 2002 

taxes. 

“Renewal Community tax incentives are 

valuable economic development tools,” said 

Bruce Seifer, assistant director of economic 

development in Burlington’s Office of 

Community and Economic Development. 

The experience of the 15-year-old local pub 

and brewery seems to bear out Seifer’s assertion. Of the enterprise’s 64 part-time and 

full-time employees in 2002, 18 lived in the 

RC. Because businesses located in the RC can 

receive up to $1,500 in wage credits every 

year for each employee who resides in the 

RC, these workers created a substantial tax 

benefit for the Vermont Pub & Brewery. 

Seifer emphasized the importance of getting 

the word out about the value of RC wage 

credits and other economic development 

incentives. “Through our city’s outreach 

efforts, businesses are regularly informed 

as to how these incentives can be used to 

their advantage,” he said. “Whether it is 

through the use of commercial revitalization 

deductions for a large development or redevelopment project or through keeping hardearned dollars using wage credits, it is clear 

that the net result of these incentives is the 

strengthening of the economy of the whole 

community.” 

For more information on the programs of 

the Burlington RC, please contact Bruce 

Seifer at (802) 865–7144. 

6 Spotlight on Results 
RC Tax Credits Yield 

Employee Health 

Insurance 

Central Louisiana, RC 

Before HUD designated an RC in Central 

Louisiana in January 2002, Catahoula 

Manufacturing in Jonesville could not afford 

to provide health insurance for its employees. 

Then, in 2004, business owners Charles 

Champlin and his daughter Dareth Delhoste 

found that the benefits of RC wage tax credits for employees living and working in the 

RC made providing health insurance 

affordable. 

“The family looks at this as an investment in 

its employees,” commented Heather Urena of 

the Kisatchie Delta Regional Planning District. 

RC tax incentives such as the $1,500 per 

employee wage tax credit enable employers 

to offer benefits to employees. 

“The RC program is helping to sustain local 

businesses and to encourage faster investments. The program is helping business owners to decide to act sooner rather than later,” 

Urena commented. The RC program’s goal, 

to attract sustained private investment and 

a diverse employment base in some of the 

most distressed pockets of poverty, has garnered attention from around the Nation, 

she said. 

Champlin and Delhoste own two companies 

in the Central Louisiana RC: Catahoula 

Manufacturing and The Fish Net Company. 

Catahoula Manufacturing makes netting for 

fishing, batting cages, and other products, 

which is then sold at The Fish Net Company, 

the family’s nearby retail store. These two 

homegrown companies contribute to the 

local and State economies. 

SECTION 1 

Another recent success in the Central Louisiana 

RC is the purchase by local entrepreneur Jessie 

Newcomer of a blighted brownfields site on 

Bolton Avenue in the city of Alexandria. 

Newcomer is using environmental cleanup 

credits and a possible RC commercial revitalization deduction (CRD) allocation to offset the 

costs of cleaning up this major eyesore. 

Newcomer’s business, Visual Strings, is planned 

as a high-technology manufacturing site for 

violin parts. The project is expected to help 

revitalize downtown Alexandria, according to 

the Alexandria Daily Town Talk. 

For more information on the programs of 

the Central Louisiana RC, please call 

President and CEO Tana Trichel, Macon 

Ridge Economic Development Region, at 

(318) 757–3033. 

Work Opportunity Tax 

Credit and Creative 

Transportation Solution 

Yield Summer Jobs for 

Jersey Youth 

Cumberland County, New Jersey, EZ 

The Cumberland Empowerment Zone 

Corporation (CEZC), the Cumberland County 

Office of Employment and Training (CCOET), 

and a convenience store company located in 

the EZ have worked together to create a successful program using the WOTC to provide 

summer jobs for youth living in the EZ. 

The company has several convenience stores, 

which need to staff up for the summer 

months, near tourist areas along the Jersey 

Shore. The three partners identified transportation as a barrier to getting jobs for residents. 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 

areas to their jobs. 

In the 4 years of operation from 1999 

through 2003, approximately 180 EZ youth 

received training and worked for the convenience store company during summer 

months, exceeding the partners’ expectations. CCOET screened potential employees 

and certified youth as being members of a 

group targeted by the WOTC. (CCOET is 

responsible for doing employee certifications for both WOTC and the Welfare to 

Work [WtW] credit.) 

As CEZC Executive Director Sandra 

Forosisky explains, “Empowerment Zone 

communities are some of the most distressed areas in the Nation. Tax incentives 

for job creation are important tools in an 

overall holistic strategy for change. CEZC 

funding addresses underlying social, education, and community issues within the EZ 

community. Combining tax incentives with 

funding for transportation, job training, 

entrepreneurial training, and business 

financial assistance is the recipe for successful economic development and revitalization of these communities.” 

Since its inception in 1998, CEZC has 

forged partnerships with local organizations 

to increase their use of Federal EZ tax 

incentives, including WOTC. Under WOTC, 

employers can receive a tax credit worth up 

to $2,400 per employee by hiring EZ residents between the ages of 18 and 24. 

For more information on the Cumberland 

County EZ, contact Executive Director Sandra 

Forosisky at (856) 459–1700. 

Rural Kentucky Employer 

Takes Full Advantage of 

RC Wage Credits 

Eastern Kentucky, RC 

An agreement between the Corrections 

Corporation of America (CCA) and the State of 

Vermont and the ability to capitalize on the 

RC wage credit worked together to create 47 

new jobs in the Eastern Kentucky RC (EKRC). 

CCA, the Nation’s largest owner and operator of privatized correctional and detention 

facilities and one of the largest prison operators in the United States, announced an 

agreement in January 2004 to manage up to 

700 Vermont inmates. CCA elected to house 

215 of those 700 inmates at the Lee 

Adjustment Center in the RC, creating an 

additional 47 jobs. “CCA is one of the larger 

employers within the EKRC and we are excited about the new jobs,” said Susan Wilder, 

EKRC State director. 

CCA operates 64 facilities (including 4 in 

RCs) with a total capacity of approximately 

65,000 beds in 20 States and the District of 

Columbia. Employers in RCs that employ RC 

residents can receive a yearly wage tax credit 

worth up to $1,500 per employee. CCA 

claimed approximately $436,000 in RC Wage 

Credits in both 2002 and 2003, according to 

Steve Brown, CCA director of financial 

reporting. According to the CCA Web site, 

through CCA’s ownership of correctional 

facilities, the company also provides valuable 

economic benefits to local communities 

through property, sales, and other taxes, 

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. 

8 Spotlight on Results 
For more information on the EKRC, contact 

EKRC State and OCAT Director Susan Wilder 

at (606) 593–7296. 

Helping Kentucky 

Residents Help 

Themselves Through 

Tax Incentives 

Eastern Kentucky, RC 

The Eastern Kentucky RC (EKRC), which 

includes four southeastern Kentucky counties 

in the heart of Appalachia, made a commitment at the start of its designation to help 

residents become self-sufficient, employed 

people who take pride in themselves. Since 

it received its designation in January 2002, 

EKRC has been excited about helping local 

businesses take advantage of RC tax credits 

and deductions and about focusing efforts on 

empowering local residents. 

EKRC formed a partnership with the Kentucky 

Department for Community-Based Services 

(DCBS) in early 2002 to inform residents 

about the RC employment credit, the WOTC, 

and the WtW credit. EKRC created a 

brochure titled How Residents Can Use the 

Renewal Community Tax Credits to Get a Job in 

the Eastern Kentucky Renewal Community, and 

DCBS distributes this brochure to local residents who are looking for jobs. DCBS refers 

those clients to the Owsley County Action 

Team (OCAT), which works with the local residents to explain how the employment credit 

can benefit local employers and also helps 

the residents determine whether they are 

eligible for the WOTC and WtW programs. 

When residents are determined to be qualified for either of these programs, OCAT staff 

members first give them the forms that 

employers will need to use the tax credits, 

then teach them to complete the forms 

SECTION 1 

correctly. OCAT advises its clients to attach 

copies of these forms to all job applications. 

EKRC staff members also provide assistance 

to RC residents, advising them to tell 

prospective employers within the four-county 

area about their RC residency and to remind 

these employers about the valuable tax benefits available for hiring RC residents. EKRC 

also gives copies of its marketing brochure to 

individuals who travel outside the RC to look 

for work, reminding them that employers 

located outside the RC can also claim the 

WOTC and WtW tax credits if employees 

meet certain eligibility criteria. 

This marketing method has proven successful 

as EKRC has found that the more residents 

know about the incentives, the more their 

chances of finding employment improve. 

EKRC’s marketing efforts can be reduced 

because residents apply their energies to 

promoting themselves. “This project helps 

residents feel confident about their chances 

to secure a job while at the same time helping us to market the tax incentives,” said 

Susan Wilder, State director of the EKRC. 

For more information on these successful tax 

incentive efforts in the EKRC, contact EKRC 

State and OCAT Director Susan Wilder at 

(606) 593–7296. 

Southwest Pizza 

Company Maximizes 

Benefit of EZ Wage 

Credits 

El Paso, Texas, EZ 

Of the many benefits and services available 

to businesses that hire EZ residents, wage 

credits are possibly the most rewarding for 

one simple reason: they tie directly to job 

creation and retention. In the El Paso EZ, 

EZ and RC Tax Incentives 9 
SECTION 1 

one business taking full advantage of the 

wage credit and other EZ tax incentives is 

Pizza Properties, Ltd. 

Pizza Properties owns and manages a number of Burger King and Peter Piper Pizza franchises in Texas and New Mexico. With 2,100 

people in its employ in both full- and parttime positions, Pizza Properties takes a proactive approach to maximizing its net income. 

It relies on qualified tax advisors such as Net 

Profit, Inc., to research and file the appropriate paperwork on its behalf to help the 

company take advantage of wage credits 

whenever applicable. 

According to Controller Jeanene Payen, a 

certified public accountant, Pizza Properties 

has a history of taking advantage of wage 

credits (which reduce income tax on a 

dollar-for-dollar basis) whenever they are 

available. Of the company’s current employees, 253 either qualify at the present time or 

have qualified in the past for the EZ wage 

credit, the Work Opportunity Tax Credit, or 

the WtW credit. 

A business that is part of an industry with a 

high employee turnover rate, such as Pizza 

Properties, can find it an administrative burden to continually track employees to identify 

credit opportunities. This is why Pizza 

Properties enjoys working with entities such 

as Net Profit. “They make it so easy. They are 

responsible for verifying the qualifications of 

the individual employee and compiling the 

tax forms,” said Payen. 

Because Pizza Properties is noted for taking 

advantage of the EZ tax incentives, Payen 

was able to suggest that the El Paso EZ could 

help other businesses do the same by targeting information to potential employees. “I 

really think there is a lack of knowledge out 

there,” Payen explains, adding that marketing the tax credits directly to residents could 

allow them to market themselves more effectively. The possibility of being able to use a 

tax credit could influence a company’s hiring 

decision if all other applicant characteristics 

were equal. 

For more information on the El Paso EZ, contact Executive Director Phyllis Rawley at 

(915) 351–1680. 

Northwest Indiana 

Businesses Profit 

From EZ Locations 

Gary/Hammond/East Chicago, 

Indiana, EZ and Columbus, 

Ohio, EZ 

Les Kaplan, controller of Interstate Blood 

Bank, Inc., understands the value of locating in a Federal EZ. A sister company, BioBlood Components, Inc., is located in the 

Gary/Hammond/East Chicago EZ and 

another facility is in the Columbus, Ohio, 

EZ. Both companies in the EZs are realizing 

tremendous tax savings because of their 

locations. The companies, which provide 

human blood and/or blood components to 

the therapeutic and diagnostic industries, 

have realized more than $37,000 in income 

tax savings from the EZ-related employment credits. Kaplan is very pleased with 

the service provided by the Gary/ 

Hammond/East Chicago EZ staff and says 

he will continue to take advantage of the 

tax incentives and will spread word of the 

EZ advantages to business partners and 

associates. 

The International Steel Group, Inc. (ISG), a 

new but highly profitable competitor in the 

global steel industry, operates an H-4 blast 

furnace, a basic oxygen furnace, and a continuous casting machine at a facility called 

ISG Indiana Harbor, Inc. The company has 

greatly benefited from its decision to locate 

in the Indiana EZ. It not only took home 

huge profits, it also boasted tax savings of 

10 Spotlight on Results 
more than $126,000 from EZ employment 

credits. 

Union Tank Car Company (UTLX), also located 

in East Chicago, Indiana, has claimed EZ 

employment credits for the past 2 years. The 

resulting tax savings are impressive. In 2002 

UTLX saved $40,542 and in 2003 it saved 

$64,155. UTLX employs a total of 23 EZ residents, 8 from East Chicago and 15 from 

Gary, Indiana. Don Kepplinger of UTLX is 

pleased enough to say, “I have recommended to all my business associates to take full 

advantage of the EZ tax credits.” 

For more information on the programs of the 

Gary/Hammond/East Chicago, Indiana EZ, 

please contact EZ Executive Director Venus 

Cobb at (219) 886–9047. 

City of Hamilton Hosts 

Valuable Tax Seminar 

Hamilton, Ohio, RC 

In Hamilton and other RC cities, regular marketing and education for businesses about RC 

tax incentives are critical to program success. 

In 2003 the city of Hamilton and the Greater 

Hamilton Chamber of Commerce hosted a 

morning seminar—Partnering for Community 

Renewal—for area business owners, developers, tax attorneys, and accountants to sharpen their understanding and interest in the 

Hamilton RC. A diverse group of local businesses that conduct business in the RC 

helped underwrite the seminar. 

D.C. attorney Linda Schakel, a leading authority on RC tax incentives, presented a 3-hour 

workshop on tax benefits available to businesses doing business in the city’s RC. 

Hamilton business owners also helped educate 

their peers about RC tax incentives. George 

Schmidt, owner of Hamilton’s downtown 

McDonald’s, emphasized that the city’s RC 

designation has helped his bottom line. As 

an RC business, he receives up to $1,500 in 

SECTION 1 

Federal tax credits for each RC resident that he 

hires or retains. 

The press also helped publicize Hamilton’s RC 

program. The local newspaper, the JournalNews, ran a series of articles about the RC 

during the week of the workshop. 

To encourage attendance, Chris Xeil Lyons, 

economic development specialist for Hamilton 

and the RC program manager, secured continuing education credit for attorneys through 

the Ohio Supreme Court and for certified public accountants through the Ohio Accountancy 

Board. 

“We are currently working on a followup 

seminar,” said Lyons. “Although the designation 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 

basis. We are also working with our legislators on Capitol Hill to make some of the tax 

incentives more user friendly. Our hope is 

that our marketing efforts, combined with 

our legislative efforts, will provide the awareness this program needs in order to make it 

as successful as it was intended to be.” 

For more information on the programs of the 

Hamilton RC, please contact RC Program 

Manager Chris Xeil Lyons at (513) 

785–7070. 

EZ Organizes Tax 

Incentive Seminar 

and Offers Credits 

to Accountants 

Huntington, West 

Virginia/Ironton, Ohio, EZ 

In 2003 the Huntington, West 

Virginia/Ironton, Ohio, EZ sponsored a tax 

credit seminar to educate local businesses 

about EZ tax advantages. Linda Schakel, an 

EZ and RC Tax Incentives 11 
SECTION 1 

attorney specializing in tax-exempt bond filing, gave a presentation on wage credits, 

expensing, and tax-exempt bonds to an 

audience of accountants, business owners 

and managers, lawyers, bankers, and economic development professionals. 

To encourage accountants to participate, the 

West Virginia Board of Accountancy accredited the seminar, which means that each 

attorney and accountant who attended 

received 2 hours of continuing professional 

education credit. 

“The seminar was a great success,” said 

Cathy Burns, executive director of the 

Huntington/Ironton EZ. “We received a lot of 

positive feedback, and we’re planning to 

make some improvements and do it again 

next year.” To boost attendance, the EZ will 

schedule future seminars during the summer 

months when workloads are lighter. There 

also will be two separate sessions—one for 

business people and one for accountants. 

For more information on organizing a tax 

credit seminar and for more information on 

the programs of the Huntington/Ironton EZ, 

please contact Executive Director Cathy 

Burns at (304) 399–5454. 

Promoting EZ 

Employment Credits 

on the Ohio/West 

Virginia Border 

Huntington, West 

Virginia/Ironton, Ohio, EZ 

To market the EZ and its tax incentives, the 

Huntington, West Virginia/Ironton, Ohio, EZ 

developed and distributed local press releases. Featuring interviews with Ironton and 

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 

Drawing on the press releases, local newspapers have published articles educating the 

public and prospective EZ businesses 

about the Huntington/Ironton EZ and its 

advantages: 

●	 An article in The Ironton Tribune featured 

Unger Shoes, a downtown business that 

has taken advantage of EZ tax credits. 

Quoting Joe Unger, whose father started 

Unger Shoes in 1947 at its current Ironton 

location, the Tribune noted, “The best 

thing about this tax credit—aside from 

the overall economic benefit of the 

Empowerment Zone itself—is giving existing businesses an opportunity to hire 

people from targeted areas and to receive 

help from the government on their Federal 

tax bill.” 

●	 In an article on Huntington’s EZ, The 

Herald-Dispatch quoted Kirk Dodrill, owner 

of Dodrill Jewelers, “This wage credit helps 

small business owners like myself and is 

easy to use. I was glad to learn of this 

credit and it’s really benefited my business.” The article explains the advantages 

of EZ wage credit and how EZ businesses 

can qualify for other benefits, including 

the WOTC and the WtW Credit. 

In addition to marketing the EZ through 

press releases, the Huntington/Ironton EZ has 

conducted tax credit seminars for EZ businesses, accountants, and attorneys, and has published and mailed several brochures describing 

the EZ tax incentives to EZ businesses, seminars, 

and trade shows. During tax season EZ officials 

have also placed advertisements describing the 

EZ employment wage credits in The HeraldDispatch and The Ironton Tribune. 

For more information on the Huntington/ 

Ironton EZ programs, call Executive Director 

Cathy Burns at (304) 399–5454. 
SECTION 1


High-Powered Marketing 

and EZ Incentives 

Empower Jacksonville 

Businesses 

Jacksonville, Florida, EZ 

In January 2002, when HUD designated an EZ 

in Jacksonville, the city embraced the decision. Charged with implementing the EZ 

plan, the Jacksonville Economic Development 

Commission (JEDC) designed a marketing 

plan, prepared a special mailing targeting the 

EZ’s 3,500 businesses, created a Web site for 

the EZ, and developed a series of tax incentive workshops. 

JEDC’s mailing to local EZ businesses included 

descriptions of all the EZ tax incentives, IRS 

forms, a map of the EZ, and a short survey 

postcard. Tax incentives in the EZ include EZ 

facility bonds, reduced capital gains, 

increased deductions of equipment purchases, and wage credits worth up to $3,000 per 

year to local businesses for each EZ resident 

that they employ. 

Since 2002 JEDC has sponsored five public 

workshops educating hundreds of business 

owners, city council members, city officials 

and staff, and area agencies and departments 

about EZ tax incentives. IRS representatives 

offered keynote presentations at the workshops and provide ongoing community education about EZ benefits. 

JEDC also created four marketing pieces that 

it distributes to businesses, city and state 

departments, and strategic planning partners. 

The material includes: 

●	 A brochure outlining the tax incentives 

offered to businesses in the EZ. 

●	 A brochure detailing the theory and 

approach to developing an empowering 

community. 

●	 A window decal for businesses using the 

incentives. 

●	 A small mailer with a perforated, postagepaid return card requesting business 

feedback. 

JEDC reports that at least 25 EZ businesses 

responded that they had not known about 

the EZ tax incentives until they received the 

mailing and will now take advantage of the 

tax incentives. One Jacksonville company, 

MLXL Sportswear and Specialties, decided to 

save some money by buying a large warehouse space in the EZ’s Springfield area. For 

owner Pete Malloy, who employs 25 people, 

the move was more advantageous than he 

anticipated, because the warehouse is located 

in the EZ. “We didn’t find out about the tax 

advantages until after we moved in,” said 

Malloy. “We were pleasantly surprised.” Now 

Malloy is committed to hiring EZ residents so 

he can capitalize on as many tax incentives as 

possible. 

The JEDC also markets the EZ on a local cable 

television show, Jacksonville on the Move, 

which airs several times a month. Appearing 

on the show, JEDC staff discuss the EZ tax 

benefits and promote EZ programs. 

Documenting the effectiveness of TV marketing, JEDC experiences a dramatic increase in 

phone calls on the day following each show. 

For more information on Jacksonville’s EZ 

programs, contact JEDC Senior Project 

Manager for Business Development Karen 

Nasrallah at (904) 630–2272. 

EZ and RC Tax Incentives 13 
SECTION 1 

Semiconductor Company 

Reaps Benefits of RC 

Employment Credits and 

Assists Community 

Lawrence, Massachusetts, RC 

When faced with the loss of traditional industrial jobs, RC cities can attract new businesses 

to turn around their economies. In Lawrence, 

Massachusetts, Microsemi Corporation—a 

leading supplier of semiconductors to the 

aerospace, defense, and communication 

industries—operates a highly efficient production facility in the city’s RC. Microsemi’s 

expansion and ongoing job growth have 

helped boost the city’s economy. 

Microsemi-Lawrence provides more than 300 

jobs—29 held by RC residents. This allows 

the company to claim as much as $43,500 in 

employment tax credits annually, according 

to Bryan Schmidt, company controller. When 

the company recently recruited for 40 new 

positions, 60 percent of the applicants lived 

in the RC, reports Microsemi Human 

Resource Manager Kristin Yencho, who works 

with the Massachusetts Department of 

Employment and Training on the company’s 

staffing efforts. 

Recognizing Microsemi’s commitment to 

the community, Northern Essex Community 

College nominated the company for the 

Excellence in Literacy award for providing 

English as a Second Language training for 

its highly diverse workforce—most of whom 

come from the city’s diverse population. 

Known as the Immigrant City, Lawrence continues to be the first stop for people coming to America. Today most of the city’s 

immigrants come from the Caribbean, Latin 

America, and Southeast Asia. 

Commenting about the increased interest 

that the RC designation brings to Lawrence, 

Mayor Michael J. Sullivan says, “The Renewal 

Community designation gives businesses 

located in the city an economic environment 

in which to stay, to grow, and to prosper. It 

also sends a strong message to new businesses that are searching for a place to set 

up shop that Lawrence has all the right elements: great transportation systems, a 

tremendous labor pool, and low-cost commercial space. When combined with RC tax 

incentives, these factors can greatly reduce 

the cost of doing business.” 

For more information on the programs of 

the Lawrence RC, contact Economic Development Coordinator Fred Carberry at 

(978) 794–5891. 

New Memphis Web Site 

Captures RC 

Accomplishments 

Memphis, Tennessee, RC 

In 2003 Memphis unveiled a new interactive 

RC Web site—the first in the country. The 

Web site allows RC businesses to enter and 

update their tax incentive information. The 

site has another advantage—Memphis RC 

officials can now track employment and 

other key data that document RC accomplishments and publicize them to the public, 

businesses, local and Federal agencies, and 

Congress. The local press also highlighted 

the Web site’s debut and significance. 

The Web site, which was launched August 

22, enables a business to update its information about the number of renewal community residents employed, their wages, the 

amount of employment tax credit, the 

amount of the accelerated depreciation 

deduction, and the company’s e-mail 

address. This information is useful because 

it shows progress over time, and it would 

14 Spotlight on Results 
otherwise be impossible to obtain on a local 

basis, said Yvonne Leander, field office director of the U.S. Department of Housing and 

Urban Development. 

As an incentive, Memphis pays businesses $50 

for updating their information on the Web site. 

“It’s all voluntary, but companies have an additional incentive to update their information,” 

RC Administrator Dottie Jones told 

www.gomemphis.com. “If we can track it with 

some degree of accuracy, we’ll be able to go 

back to Congress and show that the program 

is effective, businesses are claiming credits, and 

we have an opportunity to do things, to add to 

the program, extending it.” 

Before posting updates on the Web site, 

Jones, administrator of the intergovernmental 

relations office of the city’s law division, verifies the information. 

For more information on the Memphis RC 

programs contact Dottie Jones of the city of 

Memphis at (901) 576–6565 or visit the 

Memphis RC Web site: www.cityof 

memphis.org 

Memphis Conference 

Highlights RC Tax 

Incentives 

Memphis, Tennessee, RC 

“A free conference designed to teach more 

citizens and business owners about the tax 

credits takes place Tuesday and Wednesday 

at the Downtown Marriott, 250 North Main 

Street. A street fair that runs from 4:45 to 7 

p.m. Tuesday will give business owners who 

can’t get away during the workday a chance 

to meet with various professionals and government” (The Memphis Daily News, May 1, 

2003). 

During 2002, the Memphis RC’s first year, 

fewer businesses than expected took advantage of the available tax incentives. To 

SECTION 1 

increase business participation in 2003, 

the RC sponsored a 2-day conference and 

evening street fair to educate the community about RC tax incentives. According to RC 

officials, when businesses leave the conference they will know enough about the tax 

credits to ask their accountants and tax preparers about them. 

The city’s 8-year RC designation has benefited 

many of the 4,900 businesses located in the RC 

that covers 48 census tracts and includes 

downtown, midtown, and the Memphis International Airport. In 2002 T.W. Jones, Jr., who 

owns a container recycling business, took 

advantage of RC wage credits for his 10 

employees who live in the RC. According to 

Jones, as long he can make a profit, he will 

pass the RC tax savings on to his employees. If 

they were scheduled to receive a 30-cent per 

hour raise, for example, they got a 60-cent 

raise. In the future Jones’ hiring strategy will 

focus on residents of the 40-mile RC area to 

take advantage of the $1,500 tax credit per 

employee. 

City RC officials hope that the conference 

and other marketing efforts will educate 

more business owners to follow Jones’s example. As RC Administrator Dottie Jones told the 

Memphis Daily News, “One of the important 

things for people to understand is that if they 

are hiring someone, they need to look at 

where that person lives. If they’re faced with 

hiring an employee and they have two equally qualified candidates—but one comes with 

a tax credit and one doesn’t—well, any intelligent business person is going to want to 

hire the person that comes with the credit.” 

For more information on Memphis RC 

programs, contact Dottie Jones at (901) 

576–6565. 

EZ and RC Tax Incentives 15 
SECTION 1 

New Haven Successfully 

Markets EZ Tax 

Incentives 

New Haven, Connecticut, EZ 

Empower New Haven, which administers the 

New Haven EZ, has been fielding more questions from tax professionals, residents, and current and prospective business owners. The 

organization has earned this attention by making significant strides in the past 2 years in 

marketing and promoting EZ tax incentives. 

Using methods ranging from brochures and 

newsletters to public access television programs, Empower New Haven has worked 

tirelessly to publicize the benefits of EZ tax 

incentives. The organization has also formed 

a partnership with local merchants, neighborhood business associations, and business 

groups to increase awareness among these 

communities. In one such effort, the organization invited more than 3,000 EZ businesses to attend a HUD tax incentive workshop. 

“Empower New Haven is very committed to 

helping our partner businesses become profitable, and we will continue to aggressively 

market these vital bottom-line benefits,” 

said Empower New Haven President and 

CEO Althea Marshall. 

As reported in Success Stories: Round II 

Empowerment Zones, Empower New Haven 

has also formed a business alliance with the 

Greater New Haven Chamber of Commerce 

(COC). EZ staff gave presentations and 

answered questions on EZ tax incentives at 

two COC board meetings, and the COC in 

turn featured the tax incentives in one of 

its weekly newspapers. Through its work 

with the COC, the EZ informed more 

employers about the benefits of locating 

in the EZ and hiring Zone residents. 

These efforts are getting results. Thanks to 

Empower New Haven, the Medical Center 

Pharmacy Group, an organization with five 

pharmacies located in the EZ, learned that it 

could save $30,000 annually through the EZ 

wage credit alone. 

For more information on the programs of the 

New Haven EZ, please contact Althea 

Marshall, President and CEO of Empower 

New Haven, at (203) 776–2777. 

Savvy Veterinarian 

Applies Multiple RC 

Incentives for Maximum 

Savings 

Northern Louisiana, RC 

Dr. Chris Sullivan owns the Sullivan 

Veterinary Clinic in Winnsboro, part of the 

Northern Louisiana RC. He is the sole proprietor of a large and small animal practice 

in this manufacturing and farming community of about 6,000. When Sullivan decided 

to build a new clinic, he was eligible for the 

tax advantages available to business owners 

focused primarily within an RC. 

In May 2002 Sullivan sent his accountant to 

HUD’s Community Renewal Implementation 

Conference in Washington, D.C. At the conference his accountant learned the details on 

tax incentives, innovative tax incentive marketing techniques, and performance measurement. What he learned allowed Sullivan to 

save many thousands of dollars on land, construction, and equipment for his new clinic. 

The accountant was also able to advise 

Sullivan on how to take advantage of ongoing wage credits and, since Sullivan plans on 

keeping the RC business for more than 5 

years, how he can avoid capital gains when 

he decides to sell the business. 

During construction of the new clinic, 

Sullivan applied for an allocation of the RC 

commercial revitalization deduction to help 

16 Spotlight on Results 
SECTION 1


reduce his construction costs. He also divided the deductions for his equipment purchases between 2002 and 2003 to take full 

advantage of increased Section 179 expensing. He currently receives a $1,500 RC wage 

credit annually for each of his seven original 

employees, since they all live in the RC. 

Recently he hired four new employees from 

the RC who are between the ages of 18 and 

24. He is able to claim a $2,400 one-time

WOTC for each of these new employees. 

For more information on the programs of 

the Northern Louisiana RC, please call 

President and CEO Tana Trichel, Macon 

Ridge Economic Development Region at 

(318) 757–3033. 

Orange Cove Businesses 

Growing in RC 

Orange Cove, California, RC 

RC tax credits are revitalizing the citrus packing industry in Orange Cove and generating 

hundreds of new jobs. “These jobs will pay 

better than minimum wage, and the workers 

will also receive benefits,” said Orange Cove 

Mayor Victor Lopez. “That’s music to my 

ears, having this kind of business coming into 

Orange Cove” (The Fresno Bee, September 

10, 2003). 

As a result of Orange Cove’s RC designation, 

owners of area citrus plants—many idle for 

years—have bought, renovated, and expanded their businesses, in some cases doubling 

their workforces. Former RC Manager Jim 

Gordon highlighted some of the packinghouse improvements directly tied to RC tax 

incentives: 

●	 Bowman Farms purchased and completed a 

$100,000 renovation of a plant that had 

been idle for 4 years and added new jobs. 

In addition to its own citrus groves and 

packinghouse, the Bowman family also 

owns a health-benefits administration 

company, which means the company 

can provide health benefits to employees. 

●	 When Sunny Cove Citrus left a smaller packinghouse last year, it purchased and renovated a larger one that had been closed 

for 6 years. The Sunny Cove plant doubled 

its work force to about 200 employees. 

When the $500,000 expansion is completed, the total number of employees could 

increase to about 400. 

●	 After Booth Ranches reopened a closed 

plant, the company created 75 new jobs. 

Booth will complete a two-phase, $2.5 million expansion, expected to create another 

75 jobs. 

●	 Cecilia Packing Corporation’s $2.25 million 

expansion and modernization will add 

approximately 85 jobs. 

Prior to the area’s becoming an RC, Orange 

Cove packinghouses handled about 14 percent of California’s citrus crop, but, by 2005, 

this could rise to 17 percent, according to 

Gordon. The RC has also helped turn around 

the city’s 2002 unemployment rate of 39 percent. Packinghouse jobs had declined to 500 

in recent years, but, thanks to business 

expansion, this sector could provide 1,250 

jobs by 2005 in a city of 8,000 people. 

For more information on Orange Cove RC 

programs, contact Project Manager Julian 

Chapa, city of Orange Cove, at (559) 

626–2489. 

EZ and RC Tax Incentives 17 
SECTION 1 

Empowering Employers 

“One at a Time” in 

Pulaski County EZ 

Pulaski County, Arkansas, EZ 

After Pulaski County received its EZ designation from HUD in January 2002, representatives from the public and private sectors 

needed an effective way to inform local businesses about the value of the EZ tax incentives 

and how they could enhance their bottom 

line. In a novel marketing strategy, the Pulaski 

County EZ and the Downtown Partnership of 

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 

the benefits of meeting one-on-one with EZ 

Manager Terri Hollingsworth and Downtown 

Partnership Executive Director Sharon Priest. 

Some businesses are learning about the EZ 

employment credits for the first time and are 

excited about using the credits. 

“Because the success of the EZ is based on the 

business taking advantage of the credits, we 

felt that it was important to provide personal 

visits to help the business community understand these important economic incentives,” 

says Hollingsworth. “Since this valuable economic tool is not widely used, our goals are 

to make the business community more aware 

and to make a real impact upon revitalizing 

our community.” 

One EZ success story is the Community Bakery, 

a popular spot for Little Rock residents to satisfy their carbohydrate cravings. The bakery 

has two locations in the EZ and one in West 

Little Rock. Community Bakery owner Joe Fox 

employs between 200 and 300 workers every 

year, and nearly 55 cents of every dollar 

earned is spent on payroll. Because his business is so labor intensive, Fox was quick to 

take advantage of the tax incentives, which 

allow him to receive up to $3,000 in tax credits annually for every new and current 

employee who both lives and works in the EZ. 

He applied the credit to 39 employees in 

2002. 

Fox wants to ensure that more employers 

know about the tax advantages of locating 

within the EZ. “It certainly makes it more 

financially attractive to be operating a business in the EZ, particularly a business that 

hires a lot of employees,” he says. 

For more information on the Pulaski 

County EZ, please contact EZ Manager 

Eyona Scott at (501) 375–0121 or 

escott@downtownlr.com. 

Toyota To Realize Huge 

Savings by Locating in 

San Antonio EZ 

San Antonio, Texas, EZ 

On February 5, 2003, Toyota announced 

its choice of the San Antonio EZ as the place 

to build its sixth North American vehicle 

assembly plant. Toyota Motor Manufacturing, 

Texas, Inc., will build approximately 150,000 

Tundra full-size trucks annually at the new 

facility beginning in 2006. The new plant 

represents an $800 million investment by 

Toyota and is expected to generate approximately 2,000 new high-wage jobs in the San 

Antonio area, many for EZ residents. 

Suppliers will add another 1,000 jobs and 

generate at least $100 million in building 

and equipment investments. 

The substantial tax savings that are associated 

with the hiring of EZ residents was the catalyst 

for Toyota’s decision. If only 1 in 20 of the 

positions projected to be created by the 

Toyota plant and supplier activities is filled by 

an EZ resident, the employers could realize up 

to $450,000 in tax savings annually. 

Toyota is also developing a reputation in the 

city as an exemplary corporate citizen. So far, 

18 Spotlight on Results 
the company has made donations totaling 

half a million dollars to five San Antonio nonprofits to help support economic development, college scholarships, parenting and 

early childhood development programs, 

education, and medical services. 

Mayor Ed Garza commented that Toyota is 

“creating a transformation in our community. The Southside will be the center of 

investment with new neighborhoods and 

commercial development, and the Toyota 

plant will be at the core of that growth.” 

Fujio Cho, president and CEO of Toyota 

Motor Corporation, said of San Antonio, 

“Besides being a great place to live and work, 

San Antonio is a city of the future. Located in 

an important corridor for North American 

trade, it will undoubtedly serve as a vital link 

tomorrow for businesses all around the 

world.” 

For more information on the programs of 

the San Antonio EZ, please contact Dianne 

Quaglia of the city of San Antonio at (210) 

207–4014. 

New San Francisco Centre 

Brings Millions in 

Development 

San Francisco, California, RC 

When complete, it will boast the secondlargest Bloomingdale’s and Nordstrom in the 

country, create 3,350 permanent jobs, and 

contribute $43.3 million for affordable housing over 30 years. It is the San Francisco 

Centre, soon to be one of the Nation’s largest 

urban retail destinations. 

Located in the San Francisco RC, “This oneof-a-kind project will give San Francisco’s 

retail core a huge boost by attracting millions of new shoppers,” said Mayor Gavin 

Newsom. “Businesses from Union Square to 

Yerba Buena will benefit from the increase in 

SECTION 1 

consumers drawn to the area, and the city 

will benefit from a surge in tax revenue, 

thousands of new jobs, and millions in community contributions.” 

This shopping and entertainment venue is the 

result of an agreement between Forest City 

Enterprises, the developer of 835 Market 

Street, and Westfield America, which owns the 

San Francisco Centre. In February 2003 the 

firms announced a plan to integrate, develop, 

and market two adjacent sites to maximize 

their potential. “Two of the Nation’s leading 

real estate companies have come together to 

develop a premier retail and entertainment 

destination that will provide substantial benefits 

to the city of San Francisco,” said former Mayor 

Willie L. Brown, Jr. 

Among those benefits are the creation of 

more than 3,000 permanent jobs and the 

generation of $500 million in annual sales. 

The San Francisco Centre also will establish 

job training, internship, and emerging business incubator programs. It will provide more 

than $40 million for affordable housing over 

30 years, and contribute some $2 million to 

a revolving community improvement fund. 

Employers in the new development will be 

able to take advantage of several tax incentives as a result of the centre’s location. RC 

employment credits, available through 2009, 

provide $1,500 in tax credits to businesses for 

each employee that lives in the RC. By hiring 

residents of California’s EZ, businesses in the 

San Francisco Centre also will be able to take 

advantage of the State’s EZ hiring credits. The 

San Francisco Redevelopment Agency and the 

Mayor’s office assisted the project’s developers 

in obtaining the necessary State approvals for 

the project. The RC CRD, worth a combined 

$12 million in accelerated deductions each 

year to businesses in the RC, allows businesses 

that build or rehabilitate commercial property 

to use a 10-year depreciation schedule, as 

opposed to the standard 39 years. With a single maximum allocation of $10 million, this 

EZ and RC Tax Incentives 19 
SECTION 1 

deduction offers eligible businesses instant tax 

savings of tens of thousands of dollars. 

The new development boasts several aesthetic enhancements, chief among them the 

restoration of the famed 102-foot-wide, 

glass-and-steel dome and Rotunda and historic Market Street façade to their early 

1900s’ appearance. The unique oval-shaped 

atrium that currently illuminates the San 

Francisco Centre and links historic Market 

Street with contemporary Yerba Buena will 

complement the dome. 

For more information on the programs of 

the San Francisco RC, contact RC Program 

Director Albert Lerma at (415) 252–3134. 

EZ Wage Credits Steer 

Cycle Company in Right 

Direction 

Santa Ana, California, EZ 

A streamlined procedure to help businesses 

apply for EZ employment credits has a 

motorcycle seat manufacturing company 

riding high in Santa Ana, California. High 

End Products, which opened for business in 

1998, was looking to expand just 4 years 

later. The timing was fortuitous: in January 

2002 HUD’s 15 Round II EZs had received 

an expanded package of tax incentives to 

help stimulate economic growth among EZ 

businesses. 

Intrigued by the potential tax savings, High 

End left Rancho Margarita, California, in 

November 2002. “The combination of tax 

credits, business-friendly environment, and 

qualified labor force were the main draw for 

High End Products to relocate to Santa 

Ana,” said Sonny Thomas, vice president of 

operations. The company’s 20,000-squarefoot building is adjacent to Santa Ana’s Auto 

Mall and the 55 Freeway. 

When the facility opened, workers with the 

Santa Ana EZ wasted no time providing High 

End Products with a specially designed affidavit form to help the company verify those 

employees that were EZ residents. The manufacturer was able to qualify eight employees, worth $24,000 in Federal employment 

credits. An EZ business can earn $3,000 in 

tax credits each year for every EZ resident it 

employs. 

Santa Ana’s hands-on approach has helped 

businesses in the EZ claim some $1.9 million 

in tax savings since 1998. “The EZ tax credits 

offer Empowerment Zone residents and businesses a profitable tool to stimulate economic growth and sustainability within the 

Santa Ana EZ,” said William Manis, Santa 

Ana EZ manager. 

Due in part to its recent tax savings, High 

End Products is looking to expand its facilities 

and employee base within the next year. The 

firm is working closely with EZ staff to maximize its savings. “It’s important for a business 

to have the support of both its workforce and 

of the city,” said Lars Roulund, president and 

CEO of High End Products. “As a business 

owner, it’s comforting to know that the city 

is in my corner.” 

High End Products recently received a national 2004 Initiative for a Competitive Inner City 

award. Ranked 31st among 7,000 applicants, 

the firm is considered one of the most innovative and fastest-growing companies in the 

United States. High End Products has increased its business by 110 percent over the 

past 2 years: in recognition of this growth 

and the firm’s importance to the city, Santa 

Ana presented High End Products with a city 

proclamation at its May 2004 council 

meeting. 

For more information on the programs of 

the Santa Ana EZ, contact EZ Director 

Deborah Sanchez at (714) 647–6548. 

20 Spotlight on Results 
Renewal Community 

Incentives Keep Jobs in 

United States 

Southern Alabama, RC 

Although many textile and apparel companies have moved their operations overseas to 

cut costs, at least one firm has found a way 

to reduce expenses without leaving town. 

American Apparel considered its Selma, 

Alabama, plant, which employed some 400 

workers, to be a candidate for relocation. 

Such a move would have adversely affected 

the local apparel industry, a key component 

of Selma’s economy. 

The 2002 RC designation of the area in 

which the American Apparel facility is located has allowed this plant to prosper at a 

time when other U.S. textile companies are 

closing their doors. The CRD, wage credits, 

and other tax benefits associated with the 

RC have produced significant cost savings 

for this producer of military uniforms and 

provided an incentive for the company to 

stay put. 

With more than 75 percent of its employees 

living in the Southern Alabama RC, American 

Apparel was able to reduce its after-tax labor 

cost by about 52 cents per hour, according 

to company managers. That saved the company roughly $400,000 during the RC’s first 

year in existence. A business in the RC may 

earn up to $1,500 each year in wage credits 

for each RC resident it employs. Reduced 

labor costs helped American Apparel increase 

its workforce to 480 and install automation 

that it could not otherwise afford. 

The RC benefits and resulting tax savings 

have allowed American Apparel to not only 

increase capital spending, but also to 

consider two expansion projects. The company is looking at a permanent press facility in 

2005 as well as an additional sewing plant. 

Both facilities will be located in the RC. 

SECTION 1 

For more information on the programs of 

the Southern Alabama RC, contact David 

Barley II of the Alabama Department of 

Economic and Community Affairs at 

(334) 242–5823. 

Automotive Supplies 

Establish Niche Market 

in RC 

Southern Alabama, RC 

When a major automaker built a plant just 

30 miles from the eastern border of the 

Southern Alabama RC, it turned the RC into 

a prime spot for automotive-related businesses. Realizing the marketing potential 

inherent in the RC’s proximity to the 

Hyundai Motors plant, the Alabama 

Department of Economic and Community 

Affairs (ADECA) developed a strategy that 

has convinced three automotive suppliers 

to locate within the RC. 

Working closely with the Alabama 

Development Office (ADO) and local economic developers, ADECA came up with a 

multipronged effort to entice automotive 

suppliers to establish operations within the 

RC. The agency developed brochures that 

explained the financial benefits of locating 

in the RC. It produced economic and 

financial models, using a cost-benefit 

comparative-analysis approach, that were 

based on a company’s potential investment. 

ADECA gave presentations to prospective 

automotive suppliers as well as to ADO’s 

industrial recruiters and local economic 

development managers and staff. After 

learning of the tax incentives available 

through the RC program, Todd Strange, 

director of ADO, described the combination 

of wage credit and capital gains provisions 

as “... one of the best recruitment tools in 

the State.” 

EZ and RC Tax Incentives 21 
SECTION 1 

As a result of these efforts, three automotive 

suppliers have decided to locate in the RC 

and several others are considering doing so. 

In 2002 two automotive-related businesses, 

Hwashin Ltd. and Hysco America Company, 

Inc., agreed to locate in Greenville, Alabama. 

A third automotive supplier, Sejong Industrial 

Company Alabama, decided to locate in Fort 

Deposit in Lowndes County, which has one 

of the highest poverty rates in the Nation. 

Collectively these plants will invest about 

$100 million in buildings and equipment 

and employ approximately 960 people. The 

companies will save thousands of dollars 

through wage credits, worth up to $1,500 

annually for each RC resident a business in 

the designated area employs. 

Construction at these three facilities began 

in 2003. Each manufacturer is eager to take 

full advantage of the CRD, a tax incentive 

worth $12 million yearly to each RC. 

Businesses within the RC may depreciate 

as much as $10 million in construction or 

rehabilitation costs over 10 years instead 

of the standard 39 years. 

For more information on the programs of 

the Southern Alabama RC, contact David 

Barley II of the Alabama Department of 

Economic and Community Affairs at 

(334) 242–5823. 

Tax Incentives Encourage 

Manufacturer To 

Consolidate Operations 

Southern Alabama, RC 

With a plant in Marion, Alabama, and another in Knoxville, Tennessee, TekPac was looking to improve company efficiency. When 

HUD designated the Southern Alabama RC 

in January 2002, TekPac jumped at the 

chance to consolidate its operations and take 

advantage of the tax savings. 

TekPac’s primary business had been manufacturing synthetic medical devices at its 

Alabama site. When it merged operations, 

the production of food spices and room 

deodorizers shifted to Marion as well. The 

consolidation not only allowed TekPac to 

expand its selection of products, but also 

to increase its workforce by 8.5 percent. In 

January 2002 the company had about 65 

full-time employees and as many as 35 parttime employees. 

“Approximately 90 percent of the company’s 

employees live in the Renewal Community 

and the RC wage credit is a major benefit to 

the company,” said a TekPac manager. The 

company will be able to save more than 

$50,000 each year through the RC wage 

credit alone, the manager predicted. 

Businesses in the RC can earn up to $1,500 a 

year in wage credits for each employee residing in the RC. The RC program has not only 

stabilized TekPac’s workforce at the Marion 

location but also expanded employment 

opportunities for area residents. 

For more information on the programs of 

the Southern Alabama RC, contact David 

Barley II of the Alabama Department of 

Economic and Community Affairs at 

(334) 242–5823. 

RC Designation Helps 

Hospital Expand in Rural 

Alabama 

Southern Alabama, RC 

RC tax savings are improving the financial 

health of Georgiana Regional Hospital and its 

services to low-income rural communities. 

Located in the Southern Alabama RC, the 

hospital serves three counties inside and 

three counties outside the RC. Medical services are spread thinly throughout the area, 

22 Spotlight on Results 
because several counties do not have the 

population or finances to support a hospital. 

According to Hospital Administrator Harry 

Cole, prior to the area’s being designated as 

an RC, “We wanted to build a daycare center 

for our employees but could not justify it 

because the revenue stream would not support it. However, through a combination of 

RC wage tax credits and the community revitalization deduction’s accelerated depreciation provisions, it is now financially feasible 

for the hospital to proceed with the capital 

investment to build the daycare center.” In 

2003, as a result of tax savings from different 

RC tax incentives, the hospital was able to 

begin constructing a daycare center that will 

accommodate 30 to 40 children. 

In 2002 the Georgiana Hospital had 

approximately 105 full- and part-time 

employees, approximately 50 percent of 

whom live in the RC. According to Cole, 

“This resulted in an annual after-tax wage 

savings of $50,000 to $60,000 annually, 

thanks to the Renewal Community program’s wage tax credit provisions.” The 

hospital is now planning an additional capital investment within the next 2 years. 

For more information on the programs of 

the Southern Alabama RC, contact David 

Barley II of the Alabama Department of 

Economic and Community Affairs at 

(334) 242–5823. 

Tacoma Dance Club Bops 

to the Beat of RC Tax 

Savings 

Tacoma, Washington, RC 

No, it is not a gimmick or an infomercial.... 

There really is money out there waiting to be 

claimed by local merchants in the form of tax 

credits. That is the message the Tacoma 

SECTION 1 

Economic Development Department is sending to businesses in the 3-year-old Tacoma, 

Washington, RC. 

The Loft, a dance club on South 21st Street 

and Pacific Avenue, has gotten the message 

loud and clear and is taking advantage of 

the RC wage credit. “It’s made a big difference for us.... You take it right off the bottom line,” said Jordan Snyder, The Loft’s 

general manager. “It’s a no-brainer.” Because 

9 of its 30 workers live within the RC’s 

boundaries, the club saved $13,500 in taxes. 

That is a $1,500 tax credit per employee, the 

maximum allowed each year. 

Shari Hart, who coordinates the RC program, 

makes frequent pitches to the Downtown 

Merchants Group and others interested in 

learning about the variety of tax breaks and 

development opportunities available in the 

RC. As she promotes the RC, Hart reminds 

business owners to use HUD’s address locator 

at www.hud.gov/crlocator to determine 

whether their business is located and the 

employees reside in the Tacoma RC. 

Tacoma is the only place on the Puget 

Sound—and one of only 28 urban communities around the country—to receive a HUD 

RC designation in 2002. The Tacoma RC 

covers most of the downtown core, the port 

area, upper Tacoma, and a portion of the 

city’s east side. The RC replaces Tacoma’s former Enterprise Community designation and is 

slated to last through December 2009. 

In addition to the wage credit, Tacoma businesses can take advantage of the RC designation through CRD, increased IRS Section 179 

deductions, and zero-percent capital gains 

rates when they sell qualified property. 

For more information on the programs of the 

Tacoma RC, contact Shari Hart at (253) 

591–5208. 

EZ and RC Tax Incentives 23 
SECTION 1 

Businesses Empower 

Employees by Sharing EZ 

Wage Credit Proceeds 

Tucson, Arizona, EZ 

Matt Noble, owner of Fraternity Management 

Group (FMG) in Tucson, Arizona, understands 

that a key to profitability is a positive 

employee attitude. That is why, Noble said, 

“I’m always looking for ways to help my 

employees succeed on the job and in life.” 

EZ tax incentives have given Noble both the 

opportunity to support his employees and to 

reduce his Federal tax burden. 

Noble offered to split his EZ employment 

credit proceeds with any employee willing 

to move into the Tucson EZ. Anthony Marks 

took Noble up on his offer and used his 

share of FMG’s savings from the EZ credit to 

help purchase a house near downtown. “I’m 

thankful that Matt and the Empowerment 

Zone helped me find a better place to live 

and gave me a jump in building a better 

life,” Marks said. 

“This designation placed our community 

among an elite group of cities and created 

powerful tax incentives for small business 

owners,” said Tucson Mayor Robert Walkup. 

What makes the EZ so effective, said Walkup, 

is the way in which businesses are using the 

program to support their employees. “The 

credit’s design and the city’s marketing strategy emphasize reinvestment in our future,” 

Walkup said. “They are an important part of 

building an effective workforce.” 

A-1 Mattress, a small five-person shop in 

South Tucson, is eligible for a $3,000 EZ 

employment credit for each of the three 

employees who live in the zone. Owner 

Bobby Biodo is using the $9,000 credit he 

receives every year to purchase health insurance for all of his workers. 

City leaders hope to see the EZ expand its 

reach into the community. “The primary tool 

of the Empowerment Zone is Federal tax and 

financing incentives, but the Empowerment 

Zone concept is much more,” said Assistant 

City Manager Karen Thoreson. “It lays out a 

strategic vision addressing the workforce, 

economic, and community development 

needs of Tucson, and it does this by supporting vital revitalization projects, by helping 

individuals find jobs, and by instilling a sense 

of civic pride.” 

When Fiore Iannacone, who has owned the 

Italian Kitchen restaurant in downtown Tucson 

for 20 years, found out about the EZ, he filed 

an amendment to his 2002 tax returns and 

received $2,100 back because of the program. Iannocone used the additional money 

to invest in a new downtown restaurant, the 

Enoteca Pizzeria and Wine Bar, which opened 

in January 2004. “Because this program has 

been so beneficial to me, I have hired more 

employees from the Empowerment Zone and 

hope to be a part of downtown for a long 

time to come,” he said. 

For more information on the programs of 

the Tucson EZ, contact Larry Cummings at 

(520) 791–5093. 

Putting Earned Income 

Tax Credits Back Into the 

Pockets of EZ Residents 

Yonkers, New York, EZ 

Promoting EZ incentives for businesses and 

helping residents access earned income tax 

credits (EITCs) are major Yonkers EZ initiatives. Partnerships have played a key role in 

the program’s success: the Yonkers EZ staff 

has been working with many local and 

national partners, including HUD’s Office 

of Economic Development, to promote tax 

24 Spotlight on Results 
incentives in the EZ and maximize the injection of funds into the local economy. 

Since receiving its Round III EZ designation 

in January 2002, Yonkers has been holding 

monthly seminars for local EZ businesses and 

residents to maximize the impact of tax benefits in the EZ. The one-hour sessions, cohosted by local banks and businesses, provide 

technical overviews of EZ tax benefits while 

also stressing the program’s simplicity. 

By spring 2004 more than 1,000 people had 

attended 50 seminars. According to an EZ 

staff survey of seminar attendees, the city’s 

EZ companies had accessed more than $1.5 

million in Federal EZ wage tax credits. 

The seminars also provide opportunities for 

EZ staff to develop relationships with the 

business community and establish a level 

of communication that otherwise might not 

exist. The EZ staff provides information about 

EZ incentives, as well as incentives available 

through other Federal, State, and municipal 

programs. 

An EITC campaign, developed by Yonkers city 

and EZ staff, helps EZ residents access EITCs 

and maximize their tax refunds. IRS-trained 

volunteers provide free tax-preparation services 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. 

SECTION 1 

To publicize the widely underutilized EITC, 

the VITA site informs eligible EITC recipients 

of the credit and completes tax returns for 

free. Filers can elect to file their returns electronically and to have their refunds deposited 

directly into their bank accounts. EITC can 

refund up to approximately $4,300 for eligible filers and provides additional income for 

low-income workers. 

VITA is a collaboration of several organizations. A generous grant from JP Morgan 

Chase funded the purchase of six computers 

on which VITA volunteers complete the tax 

returns. Verizon Wireless has agreed to make 

cell phones available for calls to the IRS, and 

the Yonkers Riverfront Public Library dedicates 

two rooms for the entire tax preparation 

season. 

In 2004 the VITA assisted more than 800 taxpayers who received $400,000 in EITCs. With 

the help of VITA volunteers, more Yonkers 

residents were able to claim tax credits that 

put more money into their pockets and stimulated the local economy. 

For more information on the Yonkers EZ programs, contact EZ Manager Lola Vataj at 

(914) 377–6135. 

EZ and RC Tax Incentives 25 
SECTION 1


Deductions

Each year from 2003 through 2009 each 

RC has the authority, through commercial 

revitalization deductions (CRDs), to make 

$12 million in accelerated deduction allocations to businesses that build or substantially rehabilitate commercial property in RCs. 

Since there are 40 RCs, this incentive is 

worth almost $4 billion in accelerated 

deductions to businesses in these areas 

during the 8-year RC program. 

Businesses in the RCs have taken many different levels of CRD allocations to save millions of dollars. If a business receives a $1 

million CRD allocation, for example, it can 

deduct this amount in expenses over just 

10 years, or $100,000 each year. Normally 

businesses must take such deductions over 

39 years, or just $25,000 per year in this 

example. 

The CRD has a second deduction option. 

The business can deduct one-half of the $1 

million in the first year, or $500,000. The 

business would then deduct the remaining 

$500,000 evenly over the next 38 years. 

In 2002 and 2003 RCs nationwide made 

CRD allocations of more than $475 million 

to local businesses. 

The Increased IRS Section 179 Deduction is 

an incentive available to employers in RCs 

and EZs that do a substantial portion of 

their business in the designated areas. 

Expensing or accelerated depreciation 

increases the deductions a business can 

claim when calculating its taxable income. 

Generally a business has to depreciate its 

equipment and buildings over the economic life of the equipment or building. This 

incentive permits a business to deduct an 

extra $35,000 in equipment costs in the 

year of purchase. This is another incentive 

that has influenced investment decisions in 

the designated areas. The average value 

of investment among businesses that used 

this incentive was more than $90,000. 

Among EZ business owners that claimed 

this deduction, 16 percent reported that 

the availability of this deduction was 

important in their investment decision. 

They agreed that without this provision it 

was “very unlikely” or “somewhat unlikely” 

that they would have made the investment 

that was expensed. 

If you would like additional information on 

any of the success stories on tax deductions 

in this section, please consider calling the RC 

or EZ directly using the contact information 

that appears at the end of every story. In 

addition, to determine if a business is 

located in one of the RC/EZs and may be 

eligible for tax deductions, please visit 

HUD’s RC/EZ Address Locator at 

www.hud.gov/crlocator. 

CRD Helps Burlington 

Reclaim Its Historic 

Waterfront 

Burlington, Vermont, RC 

“Without the commercial revitalization 

deduction [CRD] tax allocation, the public 

amenities of this project would have dragged 

down the project financially,” commented 

Melinda Moulton of the Main Street Landing 

Company, developer for the Lake and College 

Street Redevelopment Project in Burlington, 

Vermont. 

“With the CRD, we are able to provide a 

wonderful community resource with enormous cultural amenities, public promenades, 

18,000 square feet of additional park space, 

and public linkages from downtown to the 

city’s waterfront, and create a financially 

viable commercial project,” said Moulton. 

26 Spotlight on Results 
A 2003 CRD, awarded through the 

Burlington RC, provided $10 million of an 

estimated $12 million in costs for the Lake 

and College Street Redevelopment Project. 

Once the region’s lively, bustling center of 

transportation and manufacturing activity, 

Burlington’s waterfront on Lake Champlain 

played a major role in the early history of the 

city. Later, as highways came to dominate 

commerce and transportation, more than 

100 acres of Burlington’s urban waterfront 

lands were left neglected, scarred with remnants of past industrial uses such as junkyards, auto body shops, coal plants, and oil 

storage terminals. A large lumber mill at the 

corner of Lake and College burned in the 

1920s. 

The 113,000-square-foot Lake and College 

Street Redevelopment Project includes a movie 

theater, a restaurant, office and retail space, 

sculpture gardens, a 56-car underground 

parking garage, and public promenades 

and terraces. A series of pedestrian-friendly 

businesses and shops staggered along Lake 

Street’s edge will provide a mix of small retail 

spaces housing locally owned businesses, 

shops, and artist studios. The project will link 

to the Battery Park Extension to the west via 

a central overlook, stair, and elevator system. 

The steep embankment will be terraced, creating about 18,000 square feet of new city 

park space. The project broke ground on 

July 1, 2003. 

The project is estimated to employ 500 people during construction, creating about 250 

permanent jobs. The project owners and 

employers will also be able to take advantage 

of RC wage credits worth up to $1,500 yearly 

for each person they employ that resides in 

the RC. 

For more information on the programs of 

the Burlington RC, please contact Bruce 

Seifer of the city of Burlington at (802) 

865–7144. 

SECTION 1 

Redevelopment of 

Historic Building Rises 

to New Levels 

Burlington, Vermont, RC 

Despite its location in Burlington’s thriving 

downtown Church Street Marketplace, only 

part of the Nelson Block had shared in the 

area’s economic renewal. Although the 

ground f loor of this 1864 vintage building 

was rented to retail tenants, the upper 

f loors had long been vacant. The second 

f loor had not been occupied for two 

decades, the third f loor not since 1932. 

Each of the abandoned upper f loors contained a potential 4,400 square feet of f loor 

space in a viable commercial location. Yet 

much of the space was inaccessible or not in 

compliance with building codes. Under ordinary modes of financing, the costs of making 

the upper f loors usable would have been 

overwhelming. 

In 2003 a $144,000 CRD allocation through 

the Burlington RC, along with other financial 

resources, helped remedy the situation. The 

Nelson Block Redevelopment Project—Church 

Street Marketplace took place in two phases. 

Phase I included critically important infrastructure improvements to the building, 

especially to the roof, support beams, and 

drain system. Reinforcement of the f loors 

with metal beams to meet code requirements 

for f loor loadings—an exceptional expense— 

occurred during Phase II. 

Redevelopment of the Nelson Block helped 

enhance the vitality of Burlington’s downtown. Opening the building’s neglected 

upper f loors to commercial use helped make 

up for the lack of vacant, developable land at 

the Church Street Marketplace. The upperf loor redevelopment strategy also fights 

urban sprawl and preserves the city’s historic 

and architectural heritage. 

EZ and RC Tax Incentives 27 
SECTION 1 

For more information on the programs of 

the Burlington RC, please contact Bruce 

Seifer of the city of Burlington at (802) 

865–7144. 

Tax Incentives Make 

Florist Bloom 

Charleston, South Carolina, RC 

Is the RC a good place to launch a successful business? Ask Manny and Clara Gonzales, owners of Tiger Lily Florist in the 

Charleston RC. 

Each year from 2000 to 2003, readers of the 

Charleston City Paper voted Tiger Lily Florist 

the “Best Florist in Charleston.” The following year, Tiger Lily was chosen Charleston’s 

2004 Small Business of the Year. 

The Tiger Lily site—an abandoned, 1930s-era 

gas station at Spring Street and Ashley 

Avenue—had been vacant for 10 years, with 

environmental and soil contamination from 

underground fuel tanks. Manny and Clara 

Gonzales were able to rehabilitate the property while preserving its historic architecture, 

thanks to the help of the Charleston RC’s 

CRD and other tax incentives. 

The $425,000 CRD allocation helped the 

Gonzaleses purchase and rehabilitate a 

neighborhood eyesore and provided a key 

spark to the redevelopment of the city’s 

Spring/Cannon Street corridor. The RC tax 

incentives were major determinants in their 

decision to purchase and renovate at this 

location, according to Manny Gonzales. 

Tiger Lily Florist is a full-service shop that 

prides itself in providing client satisfaction 

through its innovative flower designs and 

some of the finest fresh flowers from around 

the world. “It is these qualities that have 

helped us become the florist of choice for 

Charleston’s elite hotels, restaurants, wedding 

and special event planners, and downtown 

residents,” said Manny Gonzales. 

“Because of the RC tax incentives, we can put 

more Renewal Community residents to work,” 

said Gonzales, who plans to employ five RCbased employees by 2004. The business will 

be able to claim yearly RC wage tax credits 

worth as much as $1,500 for each employee. 

The RC tax incentives enable the Gonzaleses to 

pay competitive wages and provide generous 

benefits packages. 

“What makes this project unique is that Tiger 

Lily is a community-based small business that 

has embodied the true spirit and intent of 

the RC tax incentives by hiring local RC residents while becoming a good neighbor 

within this historic Charleston neighborhood,” said Anthony Moore, Sr., manager 

of the Charleston RC. 

For more information on the programs of 

the Charleston RC, please contact RC 

Manager Anthony Moore, Sr., at 

(843) 720–3836. 

New Circle K Celebrates 

Tax Savings 

Corpus Christi, Texas, RC 

The CRD, available to businesses in RCs, has 

created 14 jobs at a new Circle K convenience store located in the Corpus Christi RC. 

The new store celebrated its grand opening 

in May 2004. 

The Corpus Christi RC provided SSP Partners, 

owners of the Circle K franchise, with the 

opportunity to receive a CRD allocation of 

$850,000, which allows the business to rapidly accelerate the depreciation of the building. CRD allocations are available to 

businesses in RCs that build or substantially 

rehabilitate commercial properties. Business 

owners that receive CRD allocations can 

28 Spotlight on Results 
deduct their construction or rehabilitation 

costs over 10 years instead of the normal 39, 

thus saving substantial amounts in taxes. 

Corpus Christi Mayor Loyd Neal, who participated in the grand opening event, says that SSP 

Partners has been a leader in ongoing revitalization efforts in the RC and that the city of Corpus 

Christi is proud to have been part of a project 

that turned what had been a vacant lot for 10 

years into a first-class convenience store. 

The 14 new jobs created by construction of the 

store will generate an annual payroll of approximately $250,000. The 4,700-square-foot facility includes 16 fueling stations and food 

service from an onsite kitchen and from Laredo 

Taco Company. 

According to Sam Susser, SSP Partners president, the CRD allocation allowed the company to expand its plans for the store. Susser 

believes the new Circle K will help generate 

increased activity by both area residents and 

tourists visiting the nearby convention center 

and multipurpose arena and attending games 

played by the Corpus Christi Hooks minor 

league baseball team. 

For more information on the Corpus Christi 

RC, contact Assistant City Manager Oscar 

Martinez at (361) 880–3235, or 

oscarm@cctexas.com. 

(Information in this story was derived from the 

Corpus Christi Caller-Times, May 8, 2004.) 

Eastern Kentucky RC 

Businesses Benefit From 

Tax Incentives 

Eastern Kentucky, RC 

The EKRC surveyed businesses on their use 

of RC tax incentives on their 2002 Federal 

income tax returns, and results showed that 

the tax credits and deductions have provided 

significant benefits to the community. 

SECTION 1 

With 50 businesses responding, results indicated that businesses used the RC wage credit for a combined 636 employees. This 

incentive alone provided total tax credits of 

$745,306. The RC wage tax credit is worth 

up to $1,500 each year to business owners 

for each person they employ who lives in an 

RC. This can be a substantial amount of 

money to small business owners and can 

help them pay important bills or purchase 

additional inventory. 

The survey also showed that the Work 

Opportunity Tax Credit (WOTC) provided 

businesses with a combined $900,870 in 

credits on qualified first-year employees. This 

savings, especially when combined with the 

estimated $3,000 savings per business from 

wage credits, equals approximately $6,600 in 

tax savings for each business in just 1 year. 

Survey respondents indicated they received 

even more savings by claiming an Increased 

IRS Section 179 Deduction, another major RC 

tax incentive. According to results, the businesses that claimed tax savings from this 

incentive reduced their taxes by an average 

of almost $30,000 (assuming that they fall in 

the 20-percent tax bracket). 

EKRC businesses also saved substantial 

amounts of money due to the CRD. EKRC 

made CRD allocations to seven businesses in 

Lee and Owsley Counties to construct new 

buildings or substantially renovate existing 

ones. In 2002 these businesses received CRD 

allocations totaling more than $1.4 million; 

the actual tax savings for these businesses 

over a 10-year period will equal approximately $287,000. 

Businesses throughout the EKRC have experienced substantial tax savings from the RC tax 

incentives. Land Farm Supply, located in Lee 

and Owsley Counties, is a good example. 

After filing 2002 Federal income taxes, owner 

Jesse Land said, “This is the first time in a 

long time that we have not had to pay any 

EZ and RC Tax Incentives 29 
SECTION 1 

Federal income tax!” Prior to the RC designation, Land’s annual tax payment to the 

Federal Government averaged $4,500 per 

year; using only wage credits, Land lowered 

his 2002 Federal tax payment to zero. 

Luther and Rosemary Smith of Lee County 

are also excited about the benefits they 

received from the tax incentives. In 2002 the 

Smiths built two buildings in Beattyville for 

lease as office space. They received a CRD 

allocation of $629,466 to build the buildings 

and chose to deduct one-half of the expenses in the first year. The benefit was so great 

they decided to build another building in 

2003, on which they received another 

$200,000 CRD allocation. Rosemary Smith 

says, “Tax-wise, this is a perfect time to build 

commercial buildings.” 

The Smiths also own Jordan Drug Company 

with locations in Booneville, Beattyville, 

Campton, and Jackson. Their company 

claimed RC wage credits for several employees 

who live in the RC and thus saved enough 

money to hire five more employees. 

In March 2000 CJM Metal Fab, Inc. opened 

in Hazard, Kentucky. CJM has continued to 

grow each year with the support of local 

banks and nonprofit lenders, including the 

East Kentucky Corporation, the Kentucky 

River Area Development District, and the 

Mountain Association for Community 

Economic Development. On its 2002 Federal 

tax return, CJM expensed property, including 

production equipment and vehicles, under 

the Increased IRS Section 179 Deduction 

provision. In 2003 CJM employed as many 

as 40 individuals and the company plans to 

take full advantage of the available RC 

wage credits. 

For more information on the EKRC, contact 

EKRC State and OCAT Director Susan 

Wilder at (606) 593–7296. 

CRD Provides Shot in 

Arm for Rural Texas 

Businesses 

El Paso County, Texas, RC 

As businesses in rural southeast El Paso 

County begin to take advantage of the 

CRD available through the RC program, 

residents in turn begin to benefit from 

expanded service availability and the 

potential for new jobs. 

“This is the beginning of a shot in the arm 

for rural residents whose median family 

income is less then $24,000 per year and 

who are dozens of miles from commercial 

clusters in larger populated areas of El Paso 

County,” Precinct Commissioner Miguel 

Teran said. The commissioner, who represents the area, has also been the driving 

force behind the current development and 

construction of the new Tornillo/Guadalupe 

International Bridge and Port of Entry 

between the United States and Mexico. 

In each RC, businesses can take a combined 

total of $12 million in CRD allocations 

annually. Retail, service, and warehousing 

businesses in the El Paso County RC took a 

total of $2.25 million in CRD allocations for 

tax year 2003. A combined allocation of 

$750,000 helped to develop a new movie 

theater and an auto parts store in the town 

of Fabens, and owners of a self-storage 

facility took a CRD allocation of $1.5 million 

to dramatically reduce their final cost. 

Businesses that construct or rehabilitate 

commercial properties in an RC can use 

these allocations to deduct costs evenly 

over just 10 years instead of the normal 

39 thus saving the businesses thousands 

of dollars in taxes. 

The El Paso County RC has a population of 

approximately 56,500 people concentrated in 

30 Spotlight on Results 
small clusters within a sparsely populated 

217-square-mile area. The area north of 

Interstate 10 is uninhabited desert, and the 

area between Interstate 10 and the Rio 

Grande River is agricultural farmland with 

communities ranging in population from 

1,500 to 20,000 people. 

For more information on the El Paso County 

RC, contact (915) 834–8201. 

Facilities Upgrade 

Promotes Growth 

in Rural Alabama 

Greene-Sumter County, 

Alabama, RC 

Although one of the busiest exits off 

Interstate 20/59 can be found in Alabama’s 

Greene-Sumter County RC, problems with 

the local sewage system deterred area business expansion until the RC provided matching funds that leveraged $669,000 and 

helped the Greene County Commission 

rebuild the sewage system. This upgrade not 

only saved 114 local jobs, it also created the 

opportunity for a major gaming industry 

expansion that added 200 new ones. 

In an area that suffers from a 12-percent 

unemployment rate, the new jobs have 

made a tremendous impact; they could 

mean an annual difference to the local 

economy of up to $10 million. GreeneSumter’s RC designation also allowed the 

project owners to take a $500,000 CRD 

against the cost of rehabilitating the 

sewage system. The owners thus can 

deduct the $500,000 in expenses evenly 

over just 10 years instead of the normal 39 

years for projects not located in an RC, saving them thousands of dollars in taxes. 

Because of the sewage system renovation, 

several other businesses are now considering locating near the exit. 

SECTION 1 

For more information on the Greene-Sumter 

RC and its programs, contact RC Executive 

Director Donald Means at (205) 652–7408, 

or e-mail greenesu@bellsouth.net. 

New Manufacturer 

Touts RC Benefits 

Jamestown, New York, RC 

Jamestown’s RC tax incentives are attracting 

new businesses, including International 

Ordnance Technologies, Inc., a new minorityowned business that will create new jobs 

with good wages for RC residents. Located 

in a formerly vacant 4,000-square-foot 

building within the RC, the new company 

manufactures small and medium caliber 

ammunition cartridge links for domestic 

and international sale. 

“We are excited at the prospect of locating 

within the Jamestown Renewal Community,” 

said International Ordnance President Tammy 

H. Snyder. “The cooperation and support 

that we have received from everyone involved in bringing this venture to Jamestown 

has been great. We did look at other locations in New York and Pennsylvania. 

However, the Harrison Street site is ideal 

because it is located in the Jamestown 

Renewal Community and in a New York 

State Empire Zone. The opportunity to access 

both Federal and State tax incentives was an 

important part of our site selection.” 

Planning to employ 150 RC residents in 

new manufacturing jobs by its third year of 

operations, International Ordnance is working closely with the local workforce investment board to select and prescreen 

prospective employees. Another company 

goal is to have 35 percent of its workforce 

live in the RC to qualify for the zero-percent 

capital gains rate and Increased IRS Section 

EZ and RC Tax Incentives 31 
SECTION 1 

179 Deductions—benefits available to qualified RC businesses. 

In February 2004 Snyder attended an RC 

symposium in Schenectady, New York, which 

brought together local leaders, members of 

Congress, RC staff, and businesses from the 

State’s five RCs to discuss the valuable tax 

incentives that are available. Snyder discussed the positive impact the RC tax benefits have had on her company in Jamestown 

and urged ongoing cooperative partnerships 

to continue to attract and retain businesses 

and manufacturers in New York’s RCs. 

Looking forward to a committed presence in 

the Jamestown RC, International Ordnance 

recently received a major order from General 

Dynamics. 

For additional information on Jamestown RC 

programs, contact Director of Development 

Steven Centi, Greater Jamestown Zone 

Capital Corporation, at (716) 483–7667. 

Commercial 

Revitalization Deduction 

Recipe for Catering 

Company Success 

Los Angeles, California, RC 

When downtown Los Angeles businesses 

want to lay out a boardroom spread for 

clients or staff, they often turn to City Fare, 

Inc. This growing corporate catering firm is 

located on the edge of the booming business district, which is part of the Los Angeles 

RC. That means City Fare enjoys Federal tax 

breaks and incentives. 

In 2002 City Fare received a CRD allocation 

worth $207,000—a tax break available only 

in designated RCs. Businesses can use CRD 

allocations to help lower their costs to construct or substantially renovate commercial 

buildings in RCs. The CRD has been a 

bonanza for City Fare owner Terry 

McIlhargey, who converted a vacant manufacturing plant into a successful food preparation and delivery service. 

“The tax credit allowed us to absorb the 

unforeseen expenses that come with expansion,” said McIlhargey. “By reinvesting those 

tax dollars in our business, we were able to 

make our transition smoother by hiring more 

staff and buying equipment.” 

To obtain CRD allocations, businesses must 

go through an application process developed 

by each RC in association with their State 

governments. In Los Angeles, the city’s community development department handles 

these applications, forwarding them with 

recommendations to the California 

Tax Credit Allocation Committee for final 

approval. CRD rules allow the deduction of 

up to 50 percent of qualified expenses in a 

year, or 100 percent of qualified expenses 

over 10 years. By contrast, normal depreciation is taken over 39 years. 

“The CRD is fast becoming one of our most 

valued and versatile business attraction tools. 

Developers large and small are becoming 

aware of it and are seeking us out. We have 

millions of dollars in pending projects lined 

up to utilize the CRD,” according to Jasper 

Williams, director of the city’s Industrial and 

Commercial Development Division. 

The employment credit—another RC tax 

break available to McIlhargey—is based on 

where his 20 employees live. His business 

can get up to $1,500 in employment tax 

credits annually for each of his three 

employees who also live in the RC. 

Businesses in the RCs can also receive 

$2,400 in Work Opportunity Tax Credits 

by hiring 18- to 24-year-old RC residents. 

Qualified RC businesses are also eligible for 

zero-percent capital gains provisions and 

Increased IRS Section 179 Deductions. 

32 Spotlight on Results 
The financial incentives for companies that 

locate in RCs are enormous, but equally 

important are the benefits for surrounding 

neighborhoods. When a business renovates 

abandoned or underutilized structures, it 

eliminates blight and improves living standards in inner-city neighborhoods. Job creation for RC residents also revitalizes 

communities. City Fare, Inc., has managed to 

accomplish all of its goals while the neighborhood has benefited as well. This is a winwin recipe that makes City Fare, Inc., and the 

RC so popular. 

McIlhargey’s business is prospering. He has 

added new staff and is considering acquiring 

an adjacent building to develop as a conference and hosting center. When those plans 

come to fruition, he will, of course, apply for 

another CRD. 

For more information on the Los Angeles RC 

programs, please contact RC Director Cliff 

Weiss at (213) 485–6301. 

Adaptive Reuse of a 

Magnificent Urban 

Resource 

Lowell, Massachusetts, RC 

The Boott Cotton Mills is one of the most historic, architecturally significant mill yards in 

the United States. The 650,000-square-foot 

Boott Cotton Mills was incorporated in 1835 

as a textile manufacturing company and continued operations until 1956. Although the 

original four mills, the company office, and a 

counting house survived in almost original 

form, long-term neglect and community disinvestment took its toll and all the buildings 

had fallen into disrepair. In 1989 the new 

owners started a historically sensitive rehabilitation of two of the four mill buildings for use 

as office space. 

SECTION 1 

The location of the complex within Lowell’s 

RC and the availability of the RC’s CRD tax 

incentive helped launch the subsequent 

phase in the renewal project: the rehabilitation of approximately 14,000 square feet of 

long-vacant space within one of the mills to 

accommodate the growth of one of the complex’s anchor tenants. “The CRD helped one 

of our most critical mill complexes move forward,” says Lowell’s former director of economic development, Colin McNiece. “We’re 

looking forward to the next phase and have 

already begun talking with the owner about 

another 80,000 square feet.” 

Since the creation of the Lowell National 

Historic Park in 1978, which was established 

to preserve nationally significant historical 

and cultural sites and structures in the city, 

Lowell has gained a reputation both nationally and internationally as a model for historic 

and economic revitalization. The adaptive 

reuse of this magnificent urban resource is an 

example of the spirit of cooperation and collaboration that exists in Lowell between the 

public and the private sectors. 

For more information on Lowell’s RC Program, please contact Director of Economic 

Development Brian Conners at 

(978) 970–4276. 

Memphis Businesses 

Succeed With 

RC Tax Credits and 

Deductions 

Memphis, Tennessee, RC 

In 2002 Memphis received its RC designation 

and the accompanying millions in tax incentives for its local businesses. The city quickly 

committed the $12 million in 2002 CRD 

EZ and RC Tax Incentives 33 
SECTION 1 

allocations from the State of Tennessee to 

Memphis RC businesses: 

●	 Tennessee Capital and Development, LLC, 

received a $4.2 million CRD allocation to 

develop a retail center that would create 

approximately 150 new jobs paying 

$13.75 per hour. 

●	 First Alliance Bank won a $1.4 million CRD 

allocation to build the first new bank 

branch to open downtown in nearly 25 

years. The bank will create six new jobs 

that pay $20 per hour. 

In 2003 Memphis received and awarded an 

additional $11.3 million in CRD allocations 

to the following RC initiatives: 

●	 A $4.8 million CRD allocation will help 

renovate the historic Hunt Phelan Home— 

the centerpiece of a $5.1 million mixeduse project housing a restaurant and bar 

on the first floor, bed and breakfast suites 

on the second floor, a separate ballroom 

(with kitchen facilities) to seat up to 350 

people, a day spa, and commercial space. 

●	 Another 2003 CRD allocation, valued at 

$3 million, went to the Uptown Center, 

a 14,000-square-foot, mixed-use project 

that will include BP, Baskin Robbins, and 

Subway as tenants. This site is near the 

new First Alliance Bank branch. 

The city of Memphis also developed a Web 

site (www.cityofmemphis.org/rc) to 

promote and collect information on RC tax 

incentives. Businesses can download applications for the CRD allocation from this 

Web site and enter tax incentive data. 

In Memphis the RC employment credit is the 

most utilized tax incentive. TWJ Packaging 

Group, a recycler of industrial bulk containers, 

saves up to $1,500 for each of its 8 to 10 

employees who live and work in the RC. 

The company president estimates that the 

credit equals 50 to 75 cents per hour per 

employee—a savings he shares with his 

employees as salary bonuses. Another company, CCL Custom Manufacturing, employs 

approximately 250 people, more than 60 of 

whom live in the Memphis RC. As a result, the 

company claimed RC employment credits of 

more than $100,000 in 2002. 

The Memphis RC is home to approximately 

112,500 residents and 4,500 businesses. In 

partnership with the Memphis Regional 

Chamber of Commerce and the Memphis 

Light, Gas, and Water Division, the RC 

mailed invitations to each business and hosted a full-day workshop about the tax incentives available to RC businesses. 

For more information about the Memphis 

RC’s programs, contact Dottie Jones at 

(901) 576–6565. 

Private Partners Help 

Milwaukee RC Promote 

Tax Incentives 

Milwaukee, Wisconsin, RC 

Although incentives are powerful tools for 

redevelopment, they are useful only when 

businesses and residents know they exist and 

understand how they work. Through a publicprivate partnership, organizers in Milwaukee 

are conducting an aggressive outreach and 

education campaign for businesses that has 

spurred development and promoted job creation in the city’s RC. 

With 53 census tracts, more than 140,000 residents, nearly 4,000 businesses, and acres of 

developable land, the Milwaukee RC has many 

advantages for local businesses in addition to 

tax incentives. But Milwaukee’s RC organizers 

knew that to make the most of these 

resources, their campaign needed to target 

not only businesses in the RC, but also businesses considering a location within the RC’s 

boundaries, community-based organizations, 

34 Spotlight on Results 
SECTION 1


workforce development organizations, 

accountants, attorneys, and economic development professionals. 

To meet this challenge, Milwaukee’s department of city development created a publicprivate partnership for outreach and training. 

Using Community Development Block Grant 

funds, the city enlisted the Urban Economic 

Development Association of Wisconsin (UEDA) 

to lead the public information campaign. 

UEDA tapped into its strong network in the 

economic development community to spread 

the word about the RC’s incentives, which 

include tax credits for business owners who 

hire workers who live and work within the RC’s 

boundaries, accelerated depreciation for new 

construction and property rehabilitation, and 

capital gains exclusions. UEDA also sought private sponsors, such as Johnson Bank, to 

increase funding and bring additional expertise 

to the outreach effort. 

Since Milwaukee received its RC designation 

in 2002, RC organizers have had personal 

contact with 45 percent of the businesses in 

the RC, held nearly 80 information sessions, 

had 100 one-on-one meetings, and met 

with nearly 80 nonprofit and government 

officials. RC organizers have also worked in 

partnership with the IRS and the business 

school at Marquette University to educate 

tax preparers and local real estate developers about the incentives. These efforts have 

paid off. Since 2002 Milwaukee has made 

$24 million in CRD allocations to support 

24 redevelopment projects. Together, these 

projects have retained or attracted 550 jobs 

and have saved $535,000 annually for two 

dozen local business owners. 

“Milwaukee is proud to be one of only 40 

communities in the country that received 

the designation as a Renewal Community,” 

says Mayor Tom Barrett. “Through our outreach efforts, we have encouraged businesses of all sizes to take advantage of some 

great incentives that are exclusively 

available to business located in this targeted 

area. The best result is that we have been 

able to encourage the retention and creation of jobs as well as investment in 

Milwaukee’s distressed communities.” 

For more information about the Milwaukee 

RC, please contact Economic Development 

Specialist David Latona, city of Milwaukee, 

at (414) 286–5682. 

Alabama Newspaper 

Takes Maximum 

Commercial 

Revitalization Deduction 

Mobile, Alabama, RC 

In June 2002 the Mobile Register completed 

construction of a new $75 million facility in 

the northeast end of downtown Mobile. This 

accomplishment provides a new workspace 

for hundreds of newspaper employees, and 

also stands as a testament to how government and business can work together to 

reclaim struggling downtown areas. 

The Mobile Register is one of many companies 

to receive Federal tax breaks for locating or 

expanding operations in the Mobile RC. After 

identifying a site within the RC boundaries, 

the Mobile Register applied for and received a 

$10 million CRD allocation from the Mobile 

RC. The CRD allows the newspaper to deduct 

$10 million in construction costs evenly over 

10 years instead of the usual 39 years, which 

will save the newspaper thousands of dollars 

in taxes. 

“These economic incentives are a big boost to 

our efforts to support Alabama businesses and 

create jobs in areas of poverty and high 

unemployment,” said Don Siegelman, thengovernor of Alabama, in a statement released 

by the Alabama Department of Economic and 

Community Affairs. 

EZ and RC Tax Incentives 35 
SECTION 1 

The new Mobile Register building and the 

renovated GM&O railroad terminal anchor 

more than 14 acres at the northeast end of 

Water Street, a formerly depressed part of 

downtown Mobile. The area, once an eyesore, now features lush green landscaping 

and beautiful buildings that offer passing 

motorists and local residents a glimpse of 

Mobile’s past and future. 

The new facility is a big hit with both 

employees and local residents. In fact, at the 

facility’s grand opening on July 4th, 2002, 

which also marked the city of Mobile’s tricentennial, more than 8,000 people toured the 

new Mobile Register buildings. 

For more information on the programs of 

the Mobile RC, please contact Diane Burnett 

of the South Alabama Regional Planning 

Commission at (251) 433–6541. 

RC Designation Sparks 

Development and 

Agency Coordination 

in New Orleans 

New Orleans, Louisiana, RC 

The New Orleans RC is more than just an 

incentive-based program for business development. It is a valuable resource linking citizens, entrepreneurs, and more than 600 area 

businesses with government and communitybased services that can reinvigorate neighborhoods and provide job opportunities for 

residents. 

Since receiving its RC designation in January 

2002, the New Orleans RC has seen consistent growth in both awareness of the RC 

program and use of the tax incentives. New 

Orleans RC staff have used direct mailings 

and monthly workshops to educate local 

businesses about the RC tax incentives. Local 

economic development agencies have taken 

their show on the road, featuring the RC 

incentives in presentations to major manufacturers and businesses throughout the 

country. These national marketing efforts 

have included large conferences as well as 

private meetings. 

The city of New Orleans has also contributed 

to the RC awareness campaign. To promote 

the broader use of RC tax incentives, the 

New Orleans Finance Department has offered 

an amnesty program for businesses operating 

without appropriate occupational licenses. 

The city will help these businesses obtain 

their licenses and will not penalize them for 

being unlicensed. City officials hope that this 

effort will increase the number of businesses 

able to take advantage of the tax incentives. 

The Carrollton Shopping Center has been a 

major beneficiary of RC tax incentives. The 

owners of the shopping center received a CRD 

allocation in 2003, allowing them to deduct 

$5.7 million in construction costs over just 10 

years instead of the normal 39 years and save 

thousands of dollars in taxes. The project created 75 new jobs and the owners were able to 

construct 7 new stores at the location. In addition, the shopping center is triggering new 

development: two other projects are underway nearby that will not only add businesses 

and jobs to the area, but also bring muchneeded services and opportunities to the area. 

For more information on the New Orleans 

RC, contact Regional Director Rodney 

Littleton, New Orleans Mayor’s Office of 

Economic Development, at (504) 636–0343 

or rlittleton@mayorofno.com. 

Encouraging a Business 

To Stay—and Expand 

Niagara Falls, New York, RC 

ParMed Pharmaceuticals was considering relocating from its site in Niagara Falls until the 

city stepped in and used tax credits and 

other incentives to convince ParMed not 

36 Spotlight on Results 
only to stay, but also to increase its operation. At the time, ParMed employed 85 local 

employees and relocation would have been a 

significant loss to the local economy. 

A 2-acre parcel of land adjacent to ParMed 

had been declared a brownfields site. The 

parcel was a wasteland of construction and 

demolition debris and had historically been 

used for industrial purposes. The owners, the 

Niagara Falls Urban Renewal Agency, remediated the site through its Brownfield Development Pilot Program and then sold it to 

ParMed. Since the parcel is located in a New 

York State Empire Zone, ParMed was able to 

access New York State tax credits and incentives, including RC employment credits and 

an RC CRD allocation. The cleanup and sale 

of the parcel, along with the additional financial benefits gave ParMed enough confidence 

to stay in Niagara Falls and to expand operations. Robert Vaccaro, director of finance for 

ParMed, said, “We are happy to increase our 

operations in the city of Niagara Falls 

Renewal Community and benefit from RC 

incentives.” 

ParMed Pharmaceuticals is now constructing 

a 20,000-square-foot warehouse on the 

remediated site at a cost of $1.5 million. So 

far the expansion has created five new jobs. 

Niagara Falls has benefited from the entire 

process: a brownfield site has been remediated, existing jobs have been retained, and 

new development has meant more jobs and 

an increased tax base. 

For more information on the programs of the 

Niagara Falls RC, please contact Niagara Falls 

city Economic Development Specialist, Tom 

Tedesco, at (716) 286–8834 or visit the 

city’s Web site at www.nfez.org. 

SECTION 1 

Louisiana Manufacturing 

Company Gets Big Boost 

From RC Incentives 

Ouachita Parish, Louisiana, RC 

Garrett Manufacturing, LLC, operating under 

the trade name Luv-n-Care, is a locally owned 

manufacturing company most widely known 

for producing baby products sold through 

Sam’s, Wal-Mart, and Disney stores, and 

exported internationally. 

The company received a $3,681,125 CRD allocation in 2002 from the Ouachita Parish RC to 

build a new 318,000-square-foot manufacturing facility to support the increasing domestic 

and international demand for its products. The 

CRD, which allows Garrett to deduct construction costs in the amount of the CRD allocation 

over just 10 years instead of the typical 39 

years, amounts to huge annual savings for the 

company. 

Garrett was able to move its entire shipping 

operations to the new facility. The centralized 

location has enabled the company to streamline the shipping process and improve inventory control. The company was also able to 

replace older equipment in the facility with 

newer, safer, and more efficient equipment. 

This increased capacity made it possible for 

Luv-n-Care to bring in a substantial amount 

of new business in late 2003 and early 2004. 

Luv-n-Care was able to hire 18 new employees, partly due to RC employment credits 

and the increased cash flow from the CRD 

accelerated depreciation. Currently 55 percent of its employees are RC residents. 

Company owner Joseph Hakim is pleased, 

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 opportunity that has allowed everyone to win.” 

EZ and RC Tax Incentives 37 
SECTION 1 

For more information on the programs of 

the Ouachita Parish RC, please contact RC 

Specialist Liz Pierre at (318) 387–0787. 

Much-Needed Medical 

Clinic Brings Care and 

Jobs to Rural Area 

Parlier, California, RC 

Residents of Parlier will soon have access to 

the kinds of basic medical care that most 

Americans take for granted. Residents currently have to travel to surrounding cities for 

basic services such as filling a prescription or 

seeing a dentist. There is no specialty care 

such as obstetrics, gynecology, neonatal 

care, neurology, or physical therapy. 

The city of Parlier has worked hard to 

change this. Parlier has an RC and the city 

has succeeded in attracting a full-service 

medical clinic to the city with the promise 

of RC benefits. The clinic will have an onsite 

pharmacy and will offer an array of specialty 

medical services, even for those unable to 

pay. The city has facilitated the purchase of a 

3-acre site for the clinic and will expedite the 

permitting process for clinic construction. 

The project breaks ground this summer. 

The cost of building a 35,000-square-foot 

facility with state-of-the-art medical equipment for each specialty is prohibitively expensive. In this case, the availability of the RC 

Commercial Revitalization Deduction benefits 

was a deciding factor in opening the clinic. 

The clinic will employ 100 people and doctors have already begun training 15 Parlier 

residents for permanent employment. City 

Manager Al Puente said, “This is the way economic development is supposed to occur. A 

business is attracted to an area and trains 

area residents to work there.” 

Lou Martinez, director of economic development and administrator of the city’s RC, stated that the clinic is a key step in providing 

needed services to residents and attracting 

other companies to the area. A portion of 

the clinic will be dedicated to medical 

research and Martinez believes that the clinic 

has become the catalyst for more biotechnology investment in Parlier. The city is planning for a 300-acre biotechnology park and 

has letters of intent from six firms interested 

in relocating there. 

For more information on the programs of 

the Parlier RC, please contact Director of 

Economic Development Lou Martinez at 

(559) 646–3545. 

The Philadelphia Story: 

Targeted Marketing 

Works 

Philadelphia, Pennsylvania, RC 

During the last half of the 19th century and 

the first half of the 20th, Philadelphia was 

known as the “workshop of the world.” 

Home to Baldwin Locomotive, Stetson Hats, 

Disston Saws, and many other industrial 

firms, Philadelphia truly was the industrial 

heartland of the country. Unfortunately, during the past 60 years, Philadelphia has suffered a steady erosion of manufacturing jobs 

and the shuttering of many of the factories 

that housed them. 

The Philadelphia RC encompasses much of 

the old industrial heart of the city. The 

Philadelphia RC office recognized early that it 

needed to market benefits in key areas where 

industry sectors still flourished or where new 

sectors were rising from the ashes of the old. 

Staff developed a targeted marketing strategy that included Allegheny West and East 

Falls and large adjacent communities in 

38 Spotlight on Results 
North Philadelphia with still-viable commercial and industrial corridors. These two areas 

also have potential resources that can leverage RC benefits: a large number of Keystone 

Opportunity Zones, which are free from most 

State and local taxes; active communitybased organizations; and municipal support. 

These additional resources greatly expand the 

financial and organizational tools that, when 

coupled with RC benefits, have made good 

deals better and marginal deals possible. 

Below are just a few of many Philadelphia RC 

success stories. 

Sherman Properties/Mills II is engaged in a 

long-term project to rehabilitate the former 

Dobson Mills in East Falls into a 250,000-

square-foot mixed-use development. The 

Mills II received a $784,375 CRD allocation in 

2002. 

Hackman Dental Labs is a cutting edge, fullservice dental laboratory that needed to relocate from downtown Philadelphia. The 

laboratory was courted intensely by office 

parks outside the city but eventually purchased a long vacant and dilapidated building two blocks north from the Mills II. 

Co-owner Bobbi Quinn said, “The CRD benefit allowed us to renovate the building, meet 

our bottom line, and was the final piece of 

the puzzle for us.” Hackman Labs received a 

CRD award of $214,500 and is on target to 

hire three RC residents to fill out its expanding workforce. 

S. Zitner’s Co. makes a wide range of chocolate candies. Chris Murphy, Zitner’s owner, 

hires mostly people who live near the plant 

and walk to work. Murphy states, “The RC 

wage credit is perfect. We have many seasonal workers, both men and women, and we’re 

able to claim a large number of them. Over 

the past 2 years we’ve been able to claim 

more than $100,000 in RC wage credits.” 

SECTION 1 

For more information on the programs of the 

Philadelphia RC, please contact RC Senior 

Manager, Jim Flaherty at (215) 683–2126. 

Rochester Projects 

Moving Forward 

Rochester, New York, RC 

Perseverance pays off. The city of Rochester 

had sent numerous mailings to a company 

called BSV Metal Finishers about the RC tax 

incentives available to the company. Then 

a city staffperson spoke to the owner 

personally about RC benefits and showed 

him how to check on his eligibility for RC 

wage credits using HUD’s Address Locator. 

The owner discovered that he was eligible to 

claim RC wage tax credits for 28 of his 32 

employees. BSV is now taking full advantage 

of the benefits and appreciates the good 

advice from the city. 

John Billone, Jr., runs Flower City Management, 

a family-owned company, and has more than 

30 years of experience developing real estate in 

Rochester. With the help of a $5 million CRD 

allocation in September 2003 and another allocation in 2004, the family is working on an 

ambitious project: taking a rundown motor 

lodge at a prominent location in Rochester and 

turning it into a showpiece building with 

20,000 square feet of mixed-use commercial 

space and 18,000 feet of residential units. It is 

anticipated that the previously abandoned 

location will become a vibrant part of the community. In addition to providing permanent 

jobs for some Rochester citizens, it will also create temporary positions for about 250 local 

construction workers. 

Without the RC contribution, the Billone family was unlikely to have taken on this project. 

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 

with the project.” 

In another successful Rochester rehabilitation 

project, a Popeye’s Famous Fried Chicken 

franchise in the RC was in need of extensive 

rehabilitation and received a 2003 CRD 

allocation of $237,691. The owner, 

Northeast Fast Foods, would probably not 

have been able to afford the necessary work 

without that assistance. 

For more information on the programs of 

the Rochester RC, please contact Fashun Ku 

of the RC at (585) 428–6808. 

Breathing New Life Into 

Old Neighborhoods 

San Diego, California, RC 

“It’s a huge success in our community,” said 

Karen Whitehead of Golden Hill when asked 

about a building in her community that was 

gutted and restored with the help of CRD 

allocations. The building now houses 

Krakatoa, a trendy neighborhood coffee 

house. She continued by saying, “The 

Krakatoa Coffee House is the latest example of 

property owners making investments in their 

properties here in Golden Hill to make the 

area more attractive and to create a more 

family feeling in the neighborhood.” The 

owner-developer of the property applied for 

and received a $113,700 CRD allocation for 

the coffeehouse, which helped create six 

jobs, three of which are held by RC residents. 

In January 2002 HUD granted an RC designation to an area of San Diego that had 

been suffering from high poverty, unemployment, crime, and other problems. Businesses 

in the San Diego RC are eligible to apply for 

a share of $12 million in CRD allocations 

each year through 2009. 

The RC status has helped spur investment. 

The renovation of the Pepitone building is a 

good example. This historically significant 

building in the downtown Gaslamp Quarter 

was dilapidated and in need of extensive 

renovation in order to be used again. A 

$4.9 million CRD allocation resulted in a 

beautifully rehabilitated structure in older 

downtown San Diego that will create 100 

jobs, about 50 of which will go to RC residents. “This rehabilitation not only substantially restores a historic building, it also adds 

critical housing, restaurant, and office spaces 

to a revitalizing downtown arena,” said Jim 

Schneider, spokesman for the project. 

Another Gaslamp Quarter project got underway with the help of a sizeable CRD allocation. Borders Books and Music Store 

constructed a large store on a long-vacant 

corner in the Gaslamp Quarter. The company invested $7.8 million in the project, 

which created 350 full-time and part-time 

jobs, about 280 of which are for RC residents. “I used to work in a fast food restaurant without benefits. Now I work at Borders, 

make more than minimum wage and have 

health benefits for me and my family,” said 

Betty Washington, a Borders Books and 

Music Store employee. 

For more information on the programs of 

the San Diego RC, please contact RC 

Manager Ples Felix at (619) 533–5442. 

Childcare and Chow Now, 

Just Steps From Home 

San Francisco, California, RC 

Long underserved by retail and grocery 

outlets, residents in San Francisco’s South 

of Market neighborhood now can purchase 

fresh meat and produce close to home. The 

Harvest Urban Market & Childcare Center 

Project, at Eighth and Howard Streets, is a 

mixed-use development that includes 

40 Spotlight on Results 
affordable housing for 74 families and 88 

individuals. 

The project is the result of a collaborative 

effort between the Citizens Housing 

Corporation and the Tenderloin Neighborhood Development Corporation. The two 

groups secured a $4.6 million loan from the 

San Francisco Redevelopment Agency (SFRA) 

to purchase the land. They then sold the land 

to the SFRA. In order to retain air rights to the 

property, the two nonprofits took back loans 

on the housing parcels from the SFRA and 

obtained private funding from Citibank for 

development of commercial space. The city of 

San Francisco kicked in an additional $22 million in loans and bond financing. 

The two groups also worked closely with the 

Mayor’s office of housing to build the onsite 

childcare center and to identify local tenants 

for 6,000 square feet of commercial space. 

The 2,500-square-foot childcare facility serves 

both residents and community members. The 

commercial space accommodates afterschool 

programs, vocational training, educational 

workshops, computer labs, and other services. 

The Harvest Urban Market is an 11,000-

square-foot store that sits on the ground 

f loor of the affordable housing development. 

It owes its existence to the efforts of Urban 

Solutions, a San Francisco-based neighborhood economic development organization; 

Mayor Gavin Newsom; and the Mayor’s 

Office of Community Development. 

The store’s owner, Gilles Desaulniers, is excited about bringing healthy food choices to 

the neighborhood. In addition to fresh meat 

and produce, the market offers a variety of 

healthy, prepared meals that can be eaten 

onsite. Desaulniers predicts that his store will 

create at least 45 jobs, many of which will be 

filled by RC residents. With a single RC 

employment credit worth $1,500, he expects 

to claim thousands of dollars each year 

through 2009. 

SECTION 1 

The Harvest Urban Market plans to take 

advantage of the RC Commercial Revitalization Deduction by depreciating its $1.2 million capital investment over 10 years instead 

of the traditional 39 years. The market also 

received $755,000 in bank financing and a 

$150,000 loan from the Mayor’s office of 

community development. 

For more information on the programs of the 

San Francisco RC, contact RC Program 

Director Albert Lerma at (415) 252–3134. 

Tacoma RC Maximizes Use 

of Commercial 

Revitalization Deduction 

Tacoma, Washington, RC 

Just a year into its RC designation, the 

Tacoma, Washington, RC had received 

requests for more than double the amount of 

tax relief available. Applications for CRD allocations exceeded $26 million. This deduction, limited to a combined total of $12 

million each year for projects in the RC, saves 

property owners thousands of dollars annually by allowing them to use a rapidly accelerated depreciation schedule. 

Tacoma was the only community in Puget 

Sound—and one of only 28 urban communities around the country—to receive a HUD 

RC designation in 2002. The State of 

Washington, following the recommendation 

of the Tacoma RC, awarded CRD allocations 

to five firms: 

●	 Albers Mill building (Albers Mill LLC), 

$3.9 million. 

●	 Courtyard Marriott Hotel (Hollander 

Investments, Tacoma Hospitality LLC), 

$3.2 million. 

●	 Rainier Pacific Bank Building (Rainier Pacific 

Bank), $3.1 million. 

EZ and RC Tax Incentives 41 
SECTION 1 

● Ted Brown Music Building (Broadway 

Center Investors LLC), $1.3 million. 

●	 Fraternity Hall (Roberson Building Co.), 

$0.5 million. 

Each of the projects will benefit from a 

reduced Federal tax bill. The RC’s ability to 

provide financial relief early in a project, 

when a large number of expenses are 

incurred, is a distinct advantage. Albers Mill 

LLC, for example, will be able to deduct its 

$3.9 million in construction costs evenly over 

just 10 years instead of the normal 39 years. 

This will yield thousands of dollars in annual 

tax savings for the company. 

In addition to the CRD allocation, a business 

in the Tacoma RC can take advantage of RC 

employment tax credits, Increased IRS Section 

179 Tax Deductions, and zero-percent capital 

gains when it sells property after holding it for 

at least 5 years. 

The RC covers most of Tacoma’s downtown 

core, the port area, upper Tacoma, and a 

portion of the city’s east side. The RC designation replaces Tacoma’s former HUD 

Enterprise Community designation. 

For more information on the programs of 

the Tacoma RC, contact Shari Hart of the 

Tacoma Economic Development Department 

at (253) 591–5208. 

RC Tax Incentives Yield 

Big Savings for Turtle 

Mountain Businesses 

Turtle Mountain Band of 

Chippewa, RC 

Ten miles south of the Canadian border in 

rural North Dakota, one of the newest RC designations is providing much-needed support 

to businesses and reinvigorating industrial 

recruitment efforts in this tribal community. 

A critical component of the Turtle Mountain 

Chippewa Tribe’s overall economic development strategy, the RC designation has helped 

expand the horizons of both local business 

owners and the tribal government. 

Tribal member Ken Davis is aggressively pursuing several potential ventures now that his 

current business, LaDots Convenience Store, 

is reaping the benefits of RC tax incentives. 

In 2002 LaDots, Inc., received an $81,000 

CRD allocation, and in 2003 it claimed 

$48,000 in RC wage credits and $72,000 in 

Increased IRS Section 179 Deductions. 

“Because of the tax savings achieved 

through the RC designation, I was able to 

give several employees raises and substantially improve their benefits packages,” said 

Davis. In addition to helping his staff, Davis 

hopes to improve retail options for those 

living on the reservation by constructing a 

10,000-square-foot building that will provide hardware services. Turtle Mountain 

currently lacks a hardware store. 

The RC designation has motivated the Turtle 

Mountain Chippewa tribal government to 

identify and recruit new companies and 

industries. Since January 2004 Turtle 

Mountain RC staff members have marketed 

the tax incentives aggressively to businesses. 

RC staffers also have attended trade fairs and 

business gatherings in Belcourt and Grand 

Forks, North Dakota, and in Las Vegas, Los 

Angeles, and Washington, D.C. The RC made 

more than 260 business contacts and several 

businesses are considering Turtle Mountain 

as a future site for investment. 

For more information on the programs of 

the Turtle Mountain Band of Chippewa RC, 

contact Chief Executive Officer Lyman J. 

Bercier at (701) 477–2688. 

42 Spotlight on Results 
RC Tax Incentives Boost 

Local Hunting Company 

West-Central Mississippi, RC 

RC tax incentives have allowed one Mississippi 

business to streamline its flow of operations 

and expand its employment base. 

Primos, Inc., is a small family-owned company located in the heart of the WestCentral Mississippi RC. The company was 

started by Will Primos in 1976 when he 

started selling homemade hunting calls to 

local hunters. By 1979 Primos had to hire 

several people to assist him in making the 

calls to keep up with the national demand, 

and Primos Hunting Calls was born. 

Primos Hunting Calls has more than 150 

employees and manufactures around 300 

products, which include calls, videos, clothing, and accessories for hunting turkey, elk, 

waterfowl, deer, and predators. The company currently holds 14 patents and numerous trademarks. 

In 2002 Primos received a $2.5 million CRD 

allocation for the construction of its new 

54,000-square-foot facility in Flora, Mississippi, thanks to the RC program. According 

to Will Primos, the new facility has allowed 

the company to streamline the flow of operations and expand its employment base. 

The CRD allocation provides Primos the 

opportunity to greatly accelerate the rate at 

which the company depreciates the cost 

associated with constructing the new facility. Each State with an RC designation is 

allowed to allocate $12 million in deductions to businesses that construct new 

facilities or substantially rehabilitate existing 

facilities for each year of the RC designation. Once a business receives a CRD allocation, it must decide how to deduct the 

allocated amount based on two options. A 

business may choose to deduct half of the 

allocated amount for qualified expenses in 

SECTION 1 

the year the building is placed in service 

with the remaining amount depreciated 

over the standard 39 years or it may elect 

to deduct the full allocated amount over a 

10-year period. Since receiving the allocation, Primos has elected to receive its benefits over the next 10 years. 

Primos also has been able to avail itself of the 

wage credits that are offered through the RC 

program. Wage credits allow businesses to 

deduct up to $1,500 per year for each 

employee who lives and works in the RC. In 

2002 Primos employed 157 employees. After 

determining each employee’s physical 

address using HUD’s address locator at 

www.hud.gov/crlocator, Primos learned 

that 90 of the company’s employees live in 

the RC. For each year of the RC designation 

through 2009, Primos will be eligible for a 

wage tax credit up to $1,500 for each 

employee who lives in the RC. 

The West-Central Mississippi RC includes portions of 13 counties and 30 municipalities 

located in central Mississippi, and Primos is 

only one of thousands of businesses in 

Mississippi that has received immediate tax 

relief due to the benefits of the RC program. 

For more information on the programs of the 

West-Central Mississippi Rural RC, contact 

Bruce Reynolds of the Central Mississippi 

Planning and Development District at (601) 

981–1511. 

RC Tax Incentives Pay 

Dividends for 

Youngstown 

Manufacturing Company 

Youngstown, Ohio, RC 

Having expanded operations four times in the 

1990s, Fireline, Inc., was once again poised for 

growth. Expansion, however, had strained the 

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 

development program. Using tools available as 

a result of its RC designation, Youngstown, 

Ohio, was able to help this progressive company move forward. 

Fireline, Inc., manufactures high-performance 

ceramic shapes used in a variety of molten 

metal applications. It is the preeminent supplier of melting liners and accessory shapes 

for the aerospace market of the investment 

casting industry. During the past decade, the 

company grew at an average annual rate of 

l0 percent. Such growth allowed it to 

expand its Andrews Avenue facility four different times. Fireline’s growth, due largely to 

continuous efforts to improve product quality, came at a time when the aerospace 

industry was flagging. 

In an effort to invest in the future, Fireline 

turned its attention recently to a new and 

innovative product line. In 2002 it formed 

a wholly owned subsidiary to develop new 

products and market them under the trademark TCON. The company has been working closely with the Engineering and 

Technology Department of Youngstown 

State University and has two engineering 

students learning and working on the TCON 

project. 

A CRD allocation—worth nearly $800,000 

over 10 years, as opposed to the standard 

39 years—gave Fireline the cash flow necessary to begin investing in a research and 

development process and to design a pilot 

operation. 

“The growth attained by Fireline is directly 

attributed to our continual investment in 

new products and new technology as well as 

our dedication to quality and customer service, and our willingness to invest in process 

equipment,” said company founder Roger 

Jones. “This help from the city gave us the 

opportunity to invest in our future. We project near-term, TCON product revenues of 

$l.5 million, creating l2 new jobs.” 

In business for more than 37 years, Fireline 

started in a garage shop with just 2 employees. Today, the company boasts more than 70 

employees with annual revenues approaching 

$9 million. “Fireline is a great example of a 

homegrown company that is respected 

among its peers and also is an excellent corporate citizen,” said Dave Bozanich, city 

finance director, who worked with the company during the expansion. 

“As the now-defunct steel industry was the 

bastion that allowed the city of Youngstown 

to rise to economic prominence at the turn 

of the 20th century, companies like Fireline 

are what will return a level of economic 

vibrancy to the community now and for the 

future,” said Community Development 

Agency Director Jay Williams. “We hope 

to employ additional Renewal Community 

incentives to help us accomplish that.” 

For more information on the programs of 

the Youngstown RC, contact Jay Williams at 

(330) 744–0854. 

44 Spotlight on Results 
SECTION 1


Bond Financing

Tax-exempt bond financing is a tax incentive 

that increases a business’ cash flow because it 

allows businesses to receive low-interest loans. 

A State or local government can issue a bond 

and sell it to investors. The State or local government then uses the money it receives from 

investors to make a loan to the business. 

Investors will accept a lower interest rate on 

the bond from the State or local government 

because they do not have to pay income tax 

on the interest income. The lower interest rate 

is then passed along to the businesses. 

Enterprise Zone facility bonds are issued in EZs 

to help fund development projects. EZs with a 

population of least 100,000 have access to as 

much as $230 million in bonds, with a maximum of $130 million available for smaller EZs. 

Since 1995 State and local governments have 

issued more than 40 different series of taxexempt bonds with an aggregate issue price of 

approximately $450 million to benefit businesses operating in EZs and ECs and in the District 

of Columbia Enterprise Zone. 

Qualified zone academy bonds (QZABs) are 

also available in EZs. Schools use these bonds 

to receive no-interest loans to make repairs, 

purchase equipment, and support teacher 

training. State or local governments issue the 

QZABs, which are held by banks that make 

loans to the schools. The banks receive tax 

credits from the Federal Government in lieu of 

interest. This program requires a contribution 

from a business of at least 10 percent of the 

value of the bond. Because QZABs are also 

available in all areas in which at least 35 percent of students are eligible for free or 

reduced-price lunches, most schools in RCs 

are also eligible. 

If you would like additional information on any 

of the success stories on tax-exempt bond 

financing in this section, please consider calling 

the RC or EZ directly using the contact 

information that appears at the end of each 

story. In addition, to determine if a business is 

located in one of the RC/EZs and may be eligible for tax-exempt bond financing, please visit 

HUD’s RC/EZ Address Locator at 

www.hud.gov/crlocator. 

EZ Bonds Fund Major 

Development Projects 

in Boston 

Boston, Massachusetts, EZ 

What do a Best Western Hotel, a Hampton Inn 

and Suites, a large seafood distributor, a 

third-generation produce wholesaler, and a 

new 15,000-square-foot urban retail complex 

have in common? All have used bonds to 

strengthen enterprise and bring jobs to the 

city of Boston. 

In just its first 3 years, the Boston EZ used its 

designation and financial savvy to obtain and 

award a combined $61.4 million in bond 

financing. Boston’s EZ is a large (5.8 square 

miles) and diverse area, encompassing nearly 

60,000 residents within the communities of 

Downtown, Seaport District, Chinatown, 

Dorchester, Jamaica Plain, Mission Hill, 

Roxbury, South Boston, and South End. 

In early 2001 the Best Western Roundhouse 

Suites Hotel in Boston’s South End became 

the first hotel to open in a Northeastern EZ. 

Located in a long-vacant historic structure, 

the hotel has been a catalyst for the revitalization of this section of the EZ. The $10 million Best Western utilized $8 million in EZ 

bonds, providing approximately 24 full-time 

jobs, most of which are held by city residents. Drawing many workers from the EZ 

itself, Best Western was able to claim approximately $20,000 in EZ Employment Wage 

Credits in 2001. 

The $140-million Crosstown Center, a retail, 

office, and hotel complex located at a central 

EZ and RC Tax Incentives 45 
SECTION 1 

intersection in the Roxbury neighborhood, 

received $43.42 million in EZ bonds in 2002. 

These funds support Phase I, including a 

190-room Hampton Inn and Suites, more 

than 15,000 square feet of ground-level 

retail space, and a parking structure. Phase II 

includes offices and additional parking. 

When complete, the Crosstown Center will 

anchor as many as 1,500 permanent jobs. It 

is expected that EZ residents will hold many 

of these jobs. 

Pilot Seafood Distribution opened in the 

Seaport District in April 2000. This 65,000-

square-foot seafood processing, packaging, 

and distribution center helps to support 

Boston’s $650 million seafood industry. The 

project used $10 million in EZ bonds, all of 

which were guaranteed by the Commonwealth of Massachusetts’ Port Authority. 

Using $2.8 million in EZ bonds, Katsiroubas 

Brothers, a third-generation Boston produce wholesaler, renovated the company’s 

10,550-square-foot building to meet 

Federal Hazard Analysis and Critical Control 

Point (HACPP) regulations regarding food 

processing and handling. The work included adding 16,800 square feet and 7 new 

loading docks, combining facilities, 

installing additional freezer space, and creating a value-added preparation area. 

Thanks to the upgraded facilities, the company has been able to recapture sales to 

hotels and achieve the best HACCP and 

USDA ratings possible. Started in 1916, 

Katsiroubas Brothers is one of the largest 

produce companies in Boston with 27 

trucks and more than $22 million in sales. 

More than 16 percent of the workforce 

comes from work release and halfway 

house programs. 

Collaboration with Boston’s Industrial 

Development Financing Authority helped 

facilitate these transactions. 

For more information on the programs of 

the Boston EZ, please call Shirley Carrington, 

Boston Connects, Inc., which administers the 

Boston EZ, at (617) 541–2670, or visit the 

EZ’s Web site at www.bostonez.org. 

EZ Bonds Help Chicago 

West Side Plant Expand 

Chicago, Illinois, EZ 

Gardner-Gibson Chicago, Inc., in Chicago’s 

West Side EZ, is expanding with $6 million in 

EZ Facility Bonds. 

Manufacturer of Roof Tite, Sta-Cool, ShurStik, Black Jack, and other roofing and 

paving products, Gardner was founded in 

1945 and has been operating in Chicago 

since 1981. Gardner is using the EZ Facility 

Bonds, authorized in 2002, to acquire adjacent land, expand and renovate its existing 

plant, and purchase new equipment. 

Gardner’s Chicago plant formerly 

employed 29 workers full-time. With the 

expansion, the company hired 17 new 

workers as of mid-2004, all residents of 

the Chicago EZ, and expects to add 

another 17 workers by mid-2005. Hourly 

positions such as office, clerical workers, 

operators, and laborers have a starting 

salary range of $7.50 to $11.00 per hour. 

Salaried positions such as managers start 

at $35,000 per year. 

Gardner is one of the largest manufacturers 

of do-it-yourself products for homeowners 

and professional-grade roof and driveway 

products in the United States. Its distribution 

network includes 17 manufacturing and 

warehousing facilities across the country, 

and it employs approximately 500 people. 

46 Spotlight on Results 
For more information on the programs of the 

Chicago EZ, please contact Managing Deputy 

Director Jarese Wilson at (312) 744–7870. 

EZ Bonds Ice 

Development in 

Cumberland County 

Cumberland County, New Jersey, EZ 

A Cumberland Empowerment Zone 

Corporation (CEZC) partnership with the 

New Jersey Economic Development Authority 

(EDA) has put development in the area on ice 

via a skating facility that increases recreational opportunities in the area and indirectly 

promotes additional development. 

To facilitate issuing tax-exempt EZ facility 

bonds, CEZC joined forces with New Jersey 

EDA, an active issuer of tax-exempt bonds for 

commercial and industrial projects over the 

course of several decades. The first taxexempt bond financing, for approximately 

$4.2 million, closed in January 2002 and 

financed the construction of a skating facility 

used for ice hockey, family outings, and other 

recreational purposes. The ice rink will be a 

prime location for hockey tournaments, and 

CEZC expects that nearby hotels and restaurants will indirectly benefit from the economic development project. 

This project had its roots in a memorandum 

of understanding (MOU) signed by CEZC and 

New Jersey EDA in July 2001. The MOU outlined the procedure for referral and approval of 

bond issuance and detailed both the services 

that New Jersey EDA would perform in issuing 

the bonds and that CEZC would provide in 

monitoring compliance with the EZ business 

test, particularly with respect to meeting the EZ 

Facility Bond requirement that 35 percent of 

employees reside in the EZ. New Jersey EDA 

and CEZC also agreed on how to share the 

fees paid by the borrower to the EDA. New 

SECTION 1 

Jersey EDA representatives then met with 

members of the local business community to 

make businesses aware of EZ facility bond 

financing, and CEZC agreed to provide compliance training to interested businesses. CEZC 

also developed a compliance reporting agreement to be executed by CEZC and a borrower, 

which includes a requirement that the borrower submit an annual reporting form. 

Once this partnership was designed and in 

place, businesses could take advantage of the 

bond program. Since that time, in addition 

to the ice skating facility, two other businesses have used these services to take advantage 

of the tax-exempt financing available in 

the EZ. 

One company, Cumberland TruStone LP, produces aerated autoclaved concrete block and 

panels for use as building materials. Using $5.6 

million in tax-exempt bond financing and a 

$500,000 predevelopment loan from CEZC, 

Cumberland TruStone is in the process of constructing a 50,000-square-foot manufacturing 

facility. Company President Steve Gervasio said, 

“But for the predevelopment money that 

allowed us to put this project together and the 

tax-exempt bonds that provided a startup 

company with an instrument for long-term 

debt, we would not have been able to see this 

state-of-the-art project materialize.” 

Garden State Bulb Company LLC imports 

flower bulbs from Holland for distribution to 

customers throughout the United States and 

Canada. The company used $2.4 million in 

tax-exempt bonds to construct a new 

80,000-square-foot facility on approximately 

12 acres. It also is taking full advantage of EZ 

wage credits. Both businesses are located in 

the Vineland developable site within the EZ. 

CEZC and the Cumberland County Office of 

Employment and Training (CCOET) are helping these businesses meet their 35-percent 

resident employee requirement. CEZC has 

EZ and RC Tax Incentives 47 
SECTION 1 

funded an initiative that expands the county 

transportation system so that residents can 

get from the EZ census tracts to the EZ 

developable sites, eliminating a barrier that 

prevented employers from hiring EZ 

residents. 

The Cumberland County EZ, a multijurisdictional EZ, resulted from the combined efforts 

of the Bridgeton, Millville, Vineland, and 

Commercial township governments. CEZC 

administers and works in partnership with 

CCOET to develop the EZ. 

For more information on the Cumberland 

County EZ, contact Executive Director 

Sandra Forosisky at (856) 459–1700. 

Wage Credits, EZ Bonds 

Capture Interest of DC 

Zone Businesses 

District of Columbia, Enterprise 

Zone 

In 1998 Congress authorized a special 

Enterprise Zone designation for the District of 

Columbia to help spur capital investment in the 

Nation’s Capital. Since that time two incentives 

have captured the interest of businesses: the 

$3,000 employment tax credit and the authority to issue Enterprise Zone facility bonds of up 

to $15 million per project. How have these 

credits served the city? The numbers tell a powerful story. Survey results reveal that EZ incentives have helped thousands of large and small 

employers including retailers; residential and 

commercial developers; and owners and operators of maintenance companies, hotels, and 

restaurants. Some examples follow: 

●	 An accounting firm with 15 midsize clients 

documented total D.C. Zone employment 

tax credits of $1 million for tax years 1998 

through 2001. 

●	 Nineteen firms involved in construction, 

janitorial, and other services have claimed 

total D.C. Zone employment tax credits of 

$3.2 million since 1998. 

●	 A District manufacturer cut its Federal 

taxes by $390,000 and a hotel partnership 

claimed EZ wage credits of more than 

$1.5 million during the same 3-year period. 

●	 In 2001 one of the District’s largest hotel 

operators reported D.C. Zone employment credits of more than $1.1 million on 

wages of $8.6 million, or an operating 

cost reduction of nearly 13 percent. 

●	 The District has issued more than $113 

million in D.C. Zone facility bonds to 

attract and retain 12 District employers, 

including the International Spy Museum, 

Premium Distributors, CVS Pharmacy, the 

Newseum, the National Association of 

REALTORS®, and the United Planning 

Organization. 

The three success stories that follow illustrate 

the value of the D.C. Zone tax incentives. 

International Spy Museum 

The District is home to the world’s first 

museum dedicated to espionage, and the 

International Spy Museum has been key to 

revitalizing the historically rich F Street corridor. Because of its location in the 

Enterprise Zone, the Malrite Company, the 

project developer, financed the restaurant 

and museum portions of the project with 

$15 million in tax-exempt Enterprise Zone 

facility bonds; the residential and office 

portions of the building were financed with 

developer equity. Using bond proceeds as 

opposed to conventional financing saved 

the Malrite Company an estimated $3 million over the life of the bonds. 

48 Spotlight on Results 
14th and Irving Ventures 

The District issued approximately $4.5 million 

in tax-exempt Enterprise Zone facility bonds 

to help finance new construction at 14th and 

Irving Streets, NW., by 14th and Irving 

Ventures, LLC. Bond proceeds refinanced the 

existing mortgage loan on the facility and 

financed constructing and equipping a CVS 

Pharmacy on the first floor and other new 

commercial space on the second f loor. The 

project also involved new construction at the 

site, located in the Columbia Heights neighborhood on land acquired from the D.C. 

Redevelopment Land Agency. Construction 

at the two-story site started in July 1999 and 

ended in July 2000. This project served as the 

pioneer development in the renaissance of this 

formerly riot-torn neighborhood. CVS and 

other major retail development will create substantial employment opportunities for local 

residents. 

National Association of REALTORS® D.C. 

Headquarters 

The recently completed District headquarters 

of the National Association of REALTORS®, 

located at 500 New Jersey Avenue, NW., has 

been nominated for awards in four categories 

by the District of Columbia Building Industry 

Association. Located on the site of a former 

gas station, this new state-of-the-art building 

features double-curtain glass walls that make 

thermal heat dissipation possible, a recyclable 

water system, and a photovoltaic solar array 

that produces voltage when exposed to radiant energy on the roof. The U.S. Environmental Protection Agency declared the new 

structure one of the most environmentally 

green commercial buildings in the city and in 

the Nation. 

This $46 million project was financed with an 

owner’s equity contribution of $15 million in 

tax-exempt Enterprise Zone facility bonds and 

$15 million in taxable bonds issued by the 

District of Columbia, both underwritten by 

SECTION 1 

SunTrust Bank. The building’s design elements, 

while visually attractive and environmentally 

friendly, also comply with the new national 

Leadership in Energy and Environmental 

Design (LEED) standards adopted by the U.S. 

building industry. LEED standards promote the 

voluntary construction of high-performance, 

sustainable buildings. 

The 12-story triangular-shaped structure 

includes 90,000 square feet of office and 

retail space, a 66-car underground parking 

garage, and a rooftop terrace with dramatic 

views of the U.S. Capitol. 

In addition to the District’s proactive business climate, the success of the Enterprise 

Zone is attributable to the use of HUD’s tax 

incentive marketing tools, especially the 

Dun & Bradstreet CD–ROM. This CD contains spreadsheets with a wealth of information on every business located in the 

area, including number of employees, business owner contact information, and year 

of incorporation. The Enterprise Zone used 

this data to organize industry-specific 

workshops and seminars targeted to businesses that meet different industry profiles. 

For more information on the District of 

Columbia Enterprise Zone, contact Director 

Michael Hodge at (202) 727–3770. 

Making Facility Bonds and 

Work Opportunity Tax 

Credits Work in the EZ 

Huntington, West 

Virginia/Ironton, Ohio, EZ 

Spanning two states, the Huntington, West 

Virginia/Ironton, Ohio, EZ has a unique challenge—dealing with two different State governments to make EZ tax incentives work. 

EZ and RC Tax Incentives 49 
SECTION 1 

From the beginning of its EZ designation, 

the bi-state EZ governance board decided to 

use tax-exempt bonds to encourage revitalization in the EZ. A company that had asked 

to meet with the board was expected to 

request a sizable portion of the EZ’s total 

$130 million bond allocation. Because 

Federal regulations do not establish limits 

for issuing bonds to individual projects, the 

Huntington/Ironton EZ Governing Board 

adopted its own regulations: 

●	 Huntington and Ironton would have 

separate bond issuing authorities, the 

Huntington Municipal Development 

Authority and the Lawrence Economic 

Development Corporation. 

●	 The board would review applications 

for bond financing, and no bonds could 

be issued without the prior approval of 

the board. 

●	 No single project could receive a bond 

allocation of more than $25 million without two-thirds approval from the board. 

In January 2002 the EZ governance board 

approved a resolution to issue nearly $10 

million in tax-exempt bonds to help finance 

an urban town center—a mixed-use development of integrated retail, entertainment, 

office, and residential uses—that was easily 

accessible to Huntington and Ironton 

residents. 

The town center developers met with the 

governance board to discuss structuring the 

project to qualify as an EZ business with 35 

percent of its employees living in the EZ. The 

meeting also focused on attracting retailers 

that could utilize the EZ’s tax-exempt bond 

financing for leasehold improvements and 

equipment. The governance board staff provided information on EZ wage credits, which 

would provide strong incentives to companies interested in leasing space in the town 

center. 

The customer service distribution operations 

of Amazon.com was attracted to the EZ 

because the area has a large college population interested in working part-time. 

Therefore, the EZ staff focused on the marketing the WOTC that would be available if 

the company moves into the EZ and hires a 

substantial number of 18- to 24- year-olds. 

As another incentive to this Internet company, the EZ provided a cash grant conditioned 

on the company’s meeting specified hiring 

targets and paying wages at certain levels. 

The State of West Virginia funded a local university to enhance its business program with 

Web-based courses for its students. The company helped design the course curriculum. 

For more information on these tax incentives 

and on the Huntington/Ironton EZ, call 

Executive Director Cathy Burns at (304) 

399–5454. 

EZ Bonds, Other 

Incentives Develop 

Los Angeles EZ 

Los Angeles, California, EZ 

Tax-exempt facility bonds help EZ businesses secure low-cost loans to finance property, buy equipment, and develop business 

sites within the EZ. A $3-million, 25-year 

EZ Facility Bond awarded to AAA Packing & 

Shipping in 2000 enabled this Los Angeles 

company to create 60 new jobs in the EZ. 

The company manufactures wooden crates. 

“With our new facility, built with the aid of 

EZ bonds, we have been able to expand 

our business tremendously,” said AAA 

President Julius Giannini. 

Complementing the EZ facility bonds and 

other Federal tax benefits, Los Angeles offers 

additional incentives that attract businesses 

to the city’s 19-square-mile EZ. Cliff Weiss, 

deputy director of the Industrial and 

50 Spotlight on Results 
Commercial Development Division, describes 

two key incentives: 

●	 The city reduces electricity rates for EZ 

businesses by 35 percent. “For a manufacturer that uses a lot of electricity, that’s 

obviously a huge benefit to their bottom 

line,” Weiss says. 

●	 “We also waive the city business tax for 

new businesses that move into the EZ or 

existing businesses that expand within the 

zone. New businesses pay just $25 per 

year for 5 years,” Weiss adds. 

Los Angeles also plans to market the EZ 

bonds more aggressively. “We have less than 

7 years to use $230 million in EZ bonds, and 

it is money we want to get out on the 

street,” Weiss continued. “We are going to 

be doing some major outreach efforts to 

market our EZ bond products. We have held 

several seminars for business owners and 

developers to market EZ bonds and our other 

bond products.” 

For more information on EZ programs 

in Los Angeles, contact Lupe Ortiz at 

(213) 485–8161. For more information on 

the city’s EZ bonds, contact Clarence Espinosa 

at (213) 485–2412. 

Multimillion-Dollar Bond 

Project Develops 

Industrial Park EZ 

Miami-Dade, Florida, EZ 

In 2004 the Miami-Dade Empowerment Trust, 

which administers the Miami-Dade EZ, authorized issuing $60 million in EZ facility bonds to 

help develop Poinciana Park, an $111 million 

multipurpose commercial and residential community. 

According to project developer Town Center 

Properties, Poinciana Park will contain 

600,000 square feet of office, industrial, 

SECTION 1 

and manufacturing space; 60,000 square 

feet of service and convenience retail; a 

parking garage for 1,700 cars; and onsite 

parking for 850 cars. A 40-unit apartment 

community will provide a high-density residential area within a commercial setting. 

Poinciana Park’s master plan includes a biopharmaceutical facility, the new headquarters of MediVector Biopharmaceutical 

Centers, Inc. By locating in the EZ, this 

company facility will receive many tax benefits while creating employment and training opportunities and providing many 

other benefits to the community: 

●	 The Biopharmaceutical Career 

Training Institute. The career institute 

will work with local colleges and universities to develop courses that provide the 

technical skills residents will need to qualify 

for biopharmaceutical jobs. The institute 

will teach researchers, technicians, and 

medical personnel to research, develop, 

and manufacture pharmaceuticals. Another 

initiative will bring local college and university students to Poinciana Park to 

use the research and manufacturing facilities and to receive training, including 

FDA-validated current Good Manufacturing Practices. The Institute expects that 

many of these students will move into jobs 

at MediVector’s EZ facility. 

●	 An outpatient clinic. MediVector hopes 

to establish Clinics of Excellence that will 

provide the best available patient care, disciplined patient followup, and the best 

available medicines for patients from the 

surrounding communities. 

●	 Poinciana Research Clinic. MediVector 

will also establish a state-of-the-art clinical 

research unit. This clinic will perform Phase 

I and II studies to fulfill a growing need of 

large pharmaceutical companies to make 

faster decisions, based on high-quality 

EZ and RC Tax Incentives 51 
SECTION 1 

data, about the economic potential of 

new drugs. 

Designed to be a strong economic engine for 

the community, Poinciana Park will offer a 

unique combination of a suburban office/ 

industrial park in an urban community. The 

MediVector Biopharmaceutical Center alone is 

expected to create 1,500 jobs for EZ residents. 

According to a MediVector representative, “The 

[bond] financing facilitated by the Empowerment Trust is going to make it possible for us 

to serve, and ultimately improve, the emerging 

South Florida pharmaceutical and biomedical 

market. In the long run we will be creating a 

technical, skilled workforce.” 

For more information on programs in the 

Miami-Dade EZ, call EZ Director Andre 

Wallace at (305) 372–7620. 

Academy Bonds 

Revitalize Schools in 

Philadelphia EZ 

Philadelphia, Pennsylvania/ 

Camden, New Jersey, EZ 

The Philadelphia school system knows that 

QZABs are effective in helping schools in EZs 

to raise cash for capital projects. In 

November 2000 the Commonwealth of 

Pennsylvania approved issuing $22,985,000 

in QZABs to renovate several existing school 

buildings and convert them as necessary for 

specific age ranges and abilities. About $2 

million of that has been earmarked for the 

purchase and installation of security equipment at the schools, and the rest is being 

spent on the renovation and conversion. 

To meet the eligibility criteria for the QZAB 

program, 10 percent of the project costs had 

to come from the private sector. This goal was 

met: $2,298,500 in contributions from private 

businesses was raised through the Children 

Achieving Challenge Grant during 1999 and 

2000. This created an important buy-in 

between the local business community and 

the school district. 

Philadelphia had a second round of QZABfunded school improvements in process during fall 2004. The $19,335,700 bond issue 

will pay for two middle school conversions to 

high schools. 

The QZAB program has proved a vital one 

for the Philadelphia School District and they 

believe that the program is a particularly 

important tool in EZ communities. In this 

day of tight budgets, QZABs have provided 

this school district with another method to 

meet the educational needs of its diverse student body. 

For more information on the programs of 

the Philadelphia EZ, please contact Eva 

Gladstein at (215) 686–0457. 

EZ Bonds Help Camden 

Play Ball 

Philadelphia, Pennsylvania/ 

Camden, New Jersey, EZ 

“It will be the Main Street of South Jersey— 

the place to go.” This forecast for the future 

of the Camden Waterfront comes from Tom 

Corcoran, head of Cooper’s Ferry Development Association (CFDA). CFDA is a Camden 

nonprofit development agency that—in the 

words of the Courier Post—“has guided the 

transformation of what was once a postindustrial hodgepodge into the most visible 

engine of the city’s renewal.” 

Instrumental in this turnaround was the New 

Jersey Economic Development Authority’s 

2002 issue of $7 million in bond financing 

for Campbell’s Field, located on the waterfront in the Camden EZ. The EZ bonds were 

then sold to refinance an equal amount of 

loans issued by local banks for stadium 

52 Spotlight on Results 
construction. The state development authority also made a $2 million loan to CFDA 

Baseball Property, Inc., the baseball field 

development arm of Coopers Ferry 

Development Association. CFDA owned the 

stadium during the construction phase, turning ownership over on completion to Rutgers 

University. 

“The EZ bonds were the crucial element in 

the overall financing package for the ballpark,” said Corcoran of the bond financing. 

Camden’s new minor league baseball stadium opened May 11, 2001, to a record crowd 

of 7,192 fans. Campbell’s Field is the home of 

the RiverSharks, who play in the Independent 

Atlantic League, and is also the home field of 

the Rutgers Camden baseball team. 

Campbell’s Field sits near the Ben Franklin 

Bridge that connects Camden and 

Philadelphia, giving rise to the two cities, one 

waterfront theme—a vision for turning the 

waterfront areas of the cities of Philadelphia 

and Camden, which face each other across 

the Delaware River, into a unified tourist 

attraction. The Battleship New Jersey 

Museum, the Tweeter Center (performances 

and sports), the Camden Children’s Garden 

(horticultural park), and the New Jersey State 

Aquarium are also located in the Camden 

Waterfront. 

In 2001 Camden Baseball LLC, which owns the 

RiverSharks and operates the stadium, provided 8 permanent full-time and 210 seasonal 

part-time jobs for parking lot attendants, 

cashiers, ticket-takers, food vendors, and others. Full-time employment has fluctuated 

between 10 and 15 in subsequent years, with 

some part-time services being absorbed by 

vendors under contract, according to 

Managing Director Rick Cummings of the 

Camden EZ Corporation. Every year Camden 

Baseball LLC has met the critical IRS requirement for EZ bonds that 35 percent of the 

employees be EZ residents, he said. 

SECTION 1 

In March 2004 new owners purchased the 

RiverSharks, easing debt problems that had 

emerged after the May 2003 death of former 

owner Steve Shilling. 

For more information on the programs 

of the Camden EZ please contact Managing 

Director Rick Cummings, Camden 

EZ Corporation, at (856) 365–0300. 

Bonds Provide Dough for 

Bakers to Expand 

Operations 

Santa Ana, California, EZ 

The scent of baking bread and cookies permeates the air in portion of Santa Ana, 

California, designated as a Federal EZ. 

Sourdough bread and animal crackers are 

the primary products of the first two businesses here to take advantage of EZ facility 

bonds. 

Since January 1999, when HUD assigned EZ 

status to this 3.9 square-mile area, the city of 

Santa Ana has been able to issue up to $130 

million in tax-exempt, EZ facility bonds to 

qualified businesses. These businesses must 

substantially conduct their operations within 

the EZ and focus on hiring residents within the 

EZ’s boundaries. The EZ designation, coupled 

with local economic expansion and an 

increased workforce, led Gold Coast Bakery and 

Stauffer Biscuit Company to solicit financing to 

expand their production capabilities. 

Gold Coast Baking Company, which specializes in sourdough bread, has effectively used 

State and Federal EZ hiring and sales tax 

incentives to acquire new equipment, 

increase its labor force, and spearhead an 

eightfold expansion of its facilities. With $5 

million from EZ facility bonds, Gold Coast 

enlarged its 2.48-acre plant and purchased 

new bread manufacturing lines. The company also has received $33,000 annually in 

EZ and RC Tax Incentives 53 
SECTION 1 

Federal tax credits because 11 of its employees reside within the EZ. When it relocated 

to Santa Ana in 1993, Gold Coast had 25 

employees. Today it has 145 workers. 

Stauffer Biscuit Company, Inc., a 130-year-old 

Pennsylvania-based baking company famous 

for its “Original Animal Crackers” and other 

baked goods, chose Santa Ana as the site of 

its new West Coast facility, the Laguna Cookie 

Company. This food processing company 

constructed a 217,000-square-foot state-ofthe-art facility in the Gateway Corporate 

Center and began operations in June 2001. 

Located in both the Federal and State EZs, the 

company used $12 million in bond proceeds 

to finance the construction of its new building 

and the acquisition and installation of new 

equipment. Santa Ana’s diverse labor pool 

contributed to Stauffer’s decision to establish 

itself within the EZ. “The work ethic of the 

people we’ve encountered is superb,” said 

Carlous Sutton, the firm’s chief financial 

officer. 

For more information on the programs of 

the Santa Ana EZ, call EZ Director Deborah 

Sanchez at (714) 647–6548. 

Dual-State EZ Launches 

Hotel Development With 

Facility Bonds 

St. Louis, Missouri/East St. Louis, 

Illinois, EZ 

Looking to strengthen its central business 

district, the city of St. Louis, Missouri, 

expanded its convention center in the 1990s. 

Without sufficient hotel capacity, however, 

the city was unable to attract top conventions. A 1999 Round II EZ designation of the 

two-state metropolitan area provided new 

options for St. Louis and resulted in the 

largest EZ bond transaction in the Nation. 

The city wanted to increase the number of 

conventions from about 30 each year to 50 

or more, and to increase the number of 

hotel room bookings by two-thirds to 

500,000 nights annually. A proposed renovation of two historic buildings, the Lennox 

and Statler Hotels, and construction of one 

new tower would advance the city’s goal by 

adding 1,071 rooms and 70,000 square feet 

of function space. 

To help leverage $265 million in convention 

center hotel development, the EZ provided 

$95 million in tax-exempt bonds. Historic 

Restoration, Inc., the hotel developer, signed 

Texas-based Kimberly Clark as an equity partner and later brought in Solomon Smith 

Barney as the lead underwriter on the EZ 

bonds. Other major financial participants 

included the Missouri Department of 

Economic Development, the city of St. Louis, 

and local banks. 

Marriott International will operate the hotels 

under its Renaissance Grand brand. 

Approximately 800 permanent full- and parttime jobs will be created, with 35 percent 

filled by EZ residents. With additional EZ 

funding, Marriott will replicate its successful 

Career Advancement Training program for 

entry-level workers, targeting EZ residents. 

This training focuses on promotional opportunities and career development within the 

hospitality industry. 

The project has served as a catalyst for development throughout the downtown. Other 

hotel operators have added an additional 

1,500 hotel rooms to downtown St. Louis 

since the convention hotel construction 

began. The Renaissance Grand has proven to 

be an anchor for successful commercial and 

residential development efforts throughout 

the Washington Avenue Loft District. 

For more information on this successful tax 

incentives transaction and the programs of 

the St. Louis/East St. Louis EZ, call 

54 Spotlight on Results 
Interim Executive Director Ann Robertson of 

the Greater St. Louis Regional EZ, at (314) 

241–0002. 

EZ Facility Bonds 

Redevelop San Antonio’s 

Historic Downtown 

San Antonio, Texas, EZ 

The San Antonio EZ is working toward the 

issuance of $40 million in EZ facility bonds 

for redevelopment of the Alamo National 

Bank Building and the Aztec Theater, two 

historic landmark properties in the heart of 

downtown. Years in the making, this joint 

redevelopment project is an important addition to downtown San Antonio and the River 

Walk, one of Texas’ largest tourist attractions. 

The Alamo National Bank Building, a highrise 

office building prominent in the downtown 

San Antonio skyline, will be converted into a 

300-room Drury Plaza hotel, providing dining 

and retail opportunities along the banks of 

the River Walk. The Alamo National Bank 

Building redevelopment will also complete 

the now U-shaped River Walk pathway with 

an estimated $1.5 million in offsite river 

improvements. This highly anticipated connection will join the River Walk end points, 

known to bring unwitting visitors to a dead 

end at the river’s flood gates. This continuous 

loop will encourage more foot traffic through 

the many venues for shopping, entertainment, and dining along the river. 

SECTION 1 

The Aztec Theater, once considered a masterpiece of architectural and technological 

design, was a draw for thousands at its opening in 1926. Closed in 1989, the theater was 

slated for demolition, but was shielded by the 

efforts of the San Antonio Conservation 

Society. The theater will be restored from its 

currently dilapidated facade to a MesoAmerican themed family attraction. It will 

offer three-dimensional laser shows, a guided 

tour, and a trip back to 1926 with an authentic silent movie experience that transforms 

into a feature film with a giant state-of-the-art 

IWERKS® Extreme ScreenTM and sound system. 

The EZ facility bond inducement for this 

development was made possible through a 

boundary expansion approved by HUD. This 

project was competing for EZ bond financing 

with a convention center hotel that positions 

San Antonio nationally as a convention destination. With an additional $100 million allocated, the EZ was afforded the flexibility to 

move forward with all of the projects. 

“San Antonio is characterized by its unique 

blend of history and progress,” says Ramiro 

Cavazos, director of the economic development department. “This project is an exciting 

example of that business spirit in action.” 

For more information on the programs of the 

San Antonio EZ, contact EZ Manager Dianne 

Quaglia at (210) 207–4014, or visit the EZ 

Web site at www.sanantonio.gov/ 

edd/empowersa.asp. 

EZ and RC Tax Incentives 55 
SECTION 1


Capital Gains

The Community Renewal initiative also offers 

capital gains exclusions to businesses in RCs 

and EZs. If an EZ business holds an asset just 

a year, for example, it can avoid capital gains 

when selling the asset if it purchases another 

EZ asset within 60 days. The RCs also have a 

powerful capital gains exclusion for small 

businesses that sell property. This incentive 

allows the business owner to exclude 100 

percent of the gain from taxation provided 

the owner purchases the property between 

2002 and 2009, holds it for at least 5 years, 

and performs substantially all of his or her 

business in the RC during this period. In 

addition, RC residents must comprise at least 

35 percent of the business’ workforce. 

Capital gain exclusions provide a longer term 

benefit to investors in an EZ or RC. Over the 

coming year, HUD’s marketing efforts will 

continue to aggressively focus on the benefits of capital gains exclusions in order to 

assist potential investors in planning their tax 

savings strategies. Once the untapped 

investors learn of the opportunities that 

would be eligible for substantial Federal tax 

savings simply by electing to hold the qualified EZ or RC assets for a defined period of 

time, capital gains exclusions will be as popular as the other incentives available in the 

$11 billion tax incentive package for EZ/RC 

businesses. Expectations are that as capital 

gains exclusions continue to be available to 

investors, there will be a number of stories 

featured in a future publication describing 

the ways in which businesses and investors 

have been able to successfully use them. 

56 Spotlight on Results 
57 

SECTION 1.1 

dents, and saves thousands yearly due to RC wage 

credits. (page 21) 

Wage Credits 

dents and saves thousands yearly in RC wage credits. 

(page 23) 

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) 

residents and claims EZ wage credits. (page 20) 

EZ and RC Tax Incentives 

American Apparel in Selma’s Southern Alabama RC 

makes Army uniforms, employs hundreds of local resiThe Loft Dance Club employs local Tacoma RC resiHigh End Products employs several Santa Ana EZ 
58 Spotlight on Results 

SECTION 1.2 

The Hunt Phelan Home in the Memphis RC received a 

hospital that was once a school for newly freed slaves. 

(page 33) 

Commercial Revitalization Deductions helped to 

House and create 6 new jobs in the San Diego RC. 

(page 40) 

Primos Hunting Calls hires dozens of local residents 

and took a $2.5 million CRD allocation to build a local 

Popeyes Chicken in the Rochester RC received a CRD 

allocation to rehabilitate its restaurant. (page 39) 

The Nelson Block redevelopment in downtown 

(page 26) 

Deductions 

$2.4 million CRD allocation to renovate a Civil War 

finance a major renovation for the Krakatoa Coffee 

facility in the West-Central Mississippi RC. (page 43) 

Burlington was driven by the RC’s CRD savings. 
59 

SECTION 1.3 

through $95 million in EZ bonds, will create 800 new 

jobs in the St. Louis-East St. Louis EZ. (page 54) 

® D.C. headquarters 

was financed partly by the District of Columbia Enterprise 

Zone through $15 million in tax-exempt EZ bonds. 

(page 48) 

The Boston EZ used tax-exempt EZ bonds to finance 

the Roundhouse Hotel. (page 45) 

This multipurpose ice skating facility was financed partly 

by the Cumberland County EZ through $4.2 million in 

tax-exempt EX bonds. (page 47) 

(page 55) 

International Spy Museum, which was financed partly 

through a $15 million Enterprise Facility Bond. 

(page 45) 

Bond Financing 

EZ and RC Tax Incentives 

A new Renaissance Grand Hotel, financed partly 

The National Association of Realtors

San Antonio EZ facility bonds are helping to renovate 

the 80 year-old Aztec Theater in the heart of downtown. 

A favorite Washington, D.C., tourist attraction is the 
Spotlight on Results

SECTION 2


Businesses Advancing 


With Financial and 


Technical Assistance

Each of the 30 urban Empowerment 

Zones (EZs) has a strategic plan to 

guide its community revitalization. 

One of the four key principles of 

each EZ strategic plan is economic opportunity. 

Each EZ facilitates economic opportunity in part 

by providing local entrepreneurs with technical 

assistance and greater access to capital and 

credit so they can expand and create job 

opportunities for local residents. 

An important goal of every Renewal 

Community (RC) is to provide financial and 

technical assistance to local businesses. Each 

of the 40 RCs has a tax incentive utilization 

plan (TIUP) that describes how the State and 

local governments will work with private 

firms, neighborhood organizations, and community groups to assist businesses within the 

RCs. Each TIUP also discusses how the RC will 

implement a set of economic growth promotion efforts to benefit local businesses. 

Each year the RCs and EZs submit annual 

reports to HUD that reveal substantial successes in assisting local businesses. These 

reports show that the EZs have helped to 

provide financial assistance to more than 

3,100 businesses and technical assistance to 

more than 24,000 businesses since 1994. The 

EZs have been able to use Federal funds to 

leverage more than $1.6 billion in loan funds, 

which they have used to provide loans to 

nearly 18,000 local businesses. 

The RCs receive no Federal grants to provide 

assistance to local businesses, yet the annual 

reports from the RCs are filled with information on how they work with partners to assist 

SECTION 2 

local entrepreneurs. The Burlington, Vermont, 

RC annual report, for example, describes how 

the city of Burlington repealed its personal 

property tax for microbusinesses and streamlined its local permitting process by instituting 

multidepartmental review. 

The Camden, New Jersey, RC annual report 

indicates that the New Jersey Municipal 

Rehabilitation and Economic Recovery Act 

provides a $2,500 wage credit on the corporation business tax for businesses that expand 

or open in the RC and other parts of 

Camden. The Charleston, South Carolina, RC 

annual report explains how the city of 

Charleston created the Charleston Digital 

Corridor to attract small and medium-sized 

knowledge-based enterprises to the RC and 

surrounding neighborhoods. 

This section of the publication showcases successes of the RCs and EZs in providing vital 

technical and financial assistance to local 

businesses. We know that you will enjoy 

reading these success stories and we hope 

that your community chooses to emulate 

some of these successes. If you would like 

additional information on any of the stories 

in this section, please call the RC or EZ directly using the contact information that appears 

at the end of each story. We also invite you 

to visit HUD’s Community Renewal Web site 

at www.hud.gov/cr to browse through the 

annual reports of the RCs and EZs. 

Financial and Technical Assistance 63 
SECTION 2


Financial and 

Technical 

Assistance 

Baltimore EZ Helps 

Entrepreneur Achieve 

Dream of Owning a 

Business 

Baltimore, Maryland, EZ 

“I don’t believe that a traditional bank would 

have loaned me money to start my business. 

I had never done this type of business 

before.” 

—Joey Richards, Charm City Signs 

Joey Richards had no experience in graphic 

arts, only a determination to succeed. 

Working in New York City as a paralegal, she 

had learned to survive in a sink-or-swim environment. That survival instinct served her 

well when, after she moved to Baltimore to 

be with her daughter, her company downsized and Richards lost her job. Undaunted, 

Richards decided to start her own sign company. As an unemployed single mother and 

novice entrepreneur, she stood little chance 

of finding a traditional lender willing to 

finance her business. 

On the Internet Richards discovered the U.S. 

Small Business Administration’s One-Stop 

Capital Shop, located at Empower Baltimore’s business empowerment center. 

Empower Baltimore, she would discover, 

administers the Baltimore EZ. At the business 

empowerment center, she found a wealth of 

services: one-on-one business counseling; 

access to computers and business-related 

software; research materials to develop a 

business plan and loan package; and a large 

reference library with guides to planning, 

marketing, legal issues, accounting, recordkeeping, facilities, equipment, inventory, and 

advertising for different types of businesses. 

Suddenly, Richards’ plan to start her 

own company did not seem so far-fetched 

after all. 

Armed with a list of potential business sites 

available in the EZ, provided by the 

Baltimore Development Corporation, 

Richards began driving to check out each 

address. After one site she was interested 

in fell through, she settled on a site on 

Central Avenue in Inner Harbor East. With 

a $100,000, 7-year loan from Empower 

Baltimore’s Small Business Loan Fund, 

Richards leased the 2,200-square-foot, firstfloor space that would become Charm City 

Signs. One-fourth of the loan covered her 

initial equipment costs, and she opened for 

business with no other funding beyond her 

own life savings. 

Assistance from Empower Baltimore did not 

end there, however. Her business startup 

costs were such that the company operated 

at a loss for a while, and Richards worked 

hard to increase her business acumen and 

build up a stable client list. She attended a 

host of breakfasts, workshops, and other 

entrepreneurial networking opportunities 

arranged by EBMC’s business empowerment 

center. 

Her contacts in Empower Baltimore referred 

“everybody they knew who wanted a sign” 

to her shop, Richards says, and some of 

those early customers are still with her. 

Moreover, Empower Baltimore followed up 

to make sure she had plenty of networking 

opportunities and access to business expertise. Today, business is booming for Charm 

City Signs with contracts to manufacture 

signs for businesses across the Baltimore 

metropolitan area. 

64 Spotlight on Results 
For more information on the programs 

of the Baltimore EZ, please contact Tanya 

Terrell at (410) 783–4400. 

Empower Baltimore Loan 

Turns Abandoned Box 

Factory to New Uses 

Baltimore, Maryland, EZ 

“We talked to a variety of banks,” recalled 

Larry Silverstein, developer of Lancaster 

Square in Baltimore. “No one would lend 

money down here, especially for a building 

with environmental issues. Empower 

Baltimore provided the initial financing that 

got everything going. The loan they did for 

this building set off the chain reaction.” 

As a New York City investment banker and 

aspiring real estate developer, Silverstein had 

a keen appreciation of the potential of neglected urban neighborhoods. When 

Silverstein returned to his native Baltimore in 

the late 1990s, he moved into Fells Point. A 

crumbling, boarded-up brick structure at 

1820 Lancaster Street, which had once 

housed the Union Box Company, caught 

his eye. 

Silverstein envisioned a renovation that 

would restore the Union Box building to its 

former glory—but in a modern urban community that provided the mix of commercial 

and residential uses that had worked so well 

in TriBeCa—the once-deteriorating “Triangle 

Below Canal Street” area of New York City. 

Like TriBeCa, the Union Box property was a 

somewhat isolated enclave that had once 

been predominantly industrial. 

“I always wanted to fix up an old building,” 

Silverstein recalled and it was love at first sight. 

The price was “shockingly inexpensive,” said 

Silverstein—$340,000 for a crumbled building 

he wanted to turn into 50,000 square feet of 

profitable office space. The streets nearby were 

SECTION 2 

also ripe for development. A parking garage or 

two might be possible, perhaps condominiums or apartments. A small park was already 

there and the waterfront was nearby. The site 

seemed ideal for his purposes. 

The Union Box Company building dated 

from the 1800s. The company, which made 

shipping boxes for oysters and fruit, was 

typical of the industries that flourished 

when Baltimore was a rail and shipping 

hub. Also typical, however, were the old 

in-ground oil tanks, lead-based paint, 

asbestos, and other environmental contaminants in common use decades ago, that 

would have to be removed to meet current 

building and environmental standards. 

That is when Silverstein ran into problems. 

None of the banks he sought out wanted to 

finance such a project. The environmental 

cleanup costs in a brownfields site were 

unpredictable, nor was it certain that businesses would be eager to lease office space 

in the transitional neighborhood. 

It turned out that Silverstein did not need 

a bank for financing. Empower Baltimore 

Management Corporation, which administers 

Baltimore’s EZ, stepped in with a $340,000 

loan that enabled Silverstein’s project to go 

forward. Completed in 1999, the project 

combined seven separate buildings into one 

structure while maintaining the historic 

facades. The project consists of office, retail, 

and multifamily spaces. 

Lancaster Square now houses offices of a 

financial brokerage, an Internet design and 

marketing company, the EpidemiologyGenetics Program in Psychiatry of the Johns 

Hopkins University School of Medicine, and 

several other establishments. The exterior of 

the brick building has been restored right 

down to the old-fashioned block letters that 

read “Union Box Company” on the facade. A 

whimsical, faux railroad track design on the 

inside floor leads visitors past concrete pillars 

Financial and Technical Assistance 65 
SECTION 2 

fashioned to look like wooden beams to a 

light, airy interior with exposed brick walls. 

Today, Silverstein has not only repaid the EZ 

loan, but also is developing more properties 

in the area. 

Lancaster Square has won many awards, 

including the Best Historic Renovation Above 

$1 Million for the State of Maryland and the 

third best renovation below $10 million in 

the United States. In April 2001 the Baltimore 

Metropolitan Associated Builders & Contractors named Lancaster Square the best Historical Restoration Over $1 Million; in June 2002 

Baltimore Heritage gave it the Historic 

Preservation Award; and in December 2003 

Baltimore magazine gave Lancaster Square a 

Best of Baltimore award for the post office 

located there. 

It is now a space, notes Silverstein, “that sells 

well.” 

For more information on the programs 

of the Baltimore EZ, please contact Tanya 

Terrell at (410) 783–4400. 

Camden EZ Encourages 

Businesses With Loan 

Fund, Grants 

Philadelphia, Pennsylvania/ 

Camden, New Jersey, EZ 

“I believe that the availability of the EZ Small 

Business Loan Fund and the EZ tax incentives 

led INC Magazine to rank Camden sixth 

among urban cities in which to do business,” 

said Mike Diemer, executive director of the 

Cooperative Business Assistance Corporation 

(CBAC) in Camden, New Jersey. 

An employment agency, a dry cleaners and 

45 other new businesses have opened in the 

Camden, New Jersey, EZ thanks in part to EZ 

loan and grant programs for businesses. 

In 1998 the Camden Empowerment Zone 

Corporation (CEZC) made $2 million in 

business loan funds available through 

CBAC, a nonprofit community development fund founded in 1987 that provides 

loans to small Camden businesses that 

have difficulty accessing traditional credit 

markets. CBAC manages the CEZC revolving loan fund, which offers microloans 

($1,000–$20,000), commercial loans 

($20,000–$100,000), fixed asset loans 

($100,000–$250,000), and working capital 

loans for inventory, supplies, and other 

expenses. CBAC leverages CEZC funds with 

capital from a consortium of local banks, 

the U.S. Department of Treasury, various 

private foundations, and the Small Business 

Administration’s Micro Loan Program. 

The CEZC $2 million loan pool has provided loans totaling $2,755,434 to finance EZbased businesses. The 47 EZ businesses 

that received grants and loans by July 2004 

helped create 150 new jobs and retain 353 

others for EZ residents. 

This loan program helped make it possible 

for Noah Joffe, a southern New Jersey dry 

cleaner, to purchase and renovate a 15,244-

square-foot former machine shop on 10th 

Street in the EZ. The Joffe project received a 

$117,500 loan from CBAC as part of a nearly 

$700,000 financing package. The new facility was expected to create six new jobs for EZ 

residents. 

“There’s a good labor pool here,” the New 

Jersey Economic Development Authority 

(NJEDA) quoted Joffe in 2001. “We promised 

to bring new jobs to the Camden area and, 

with the help of CBAC, Commerce Bank, and 

the NJEDA, we’re doing it.” 

Another business-related project, the business grant program administered by the 

CEZC, provides grants for EZ businesses of 

$1,000 for each employee living in the EZ, 

to a maximum of $5,000 per business. These 

66 Spotlight on Results 
grants complement the benefits of EZ Federal 

wage credits, which are worth up to $3,000 

yearly for each employee who resides in the 

EZ. Problem Solvers Employment Agency, the 

first company approved for the EZ Business 

Grant program, is an example of the program in action. Problem Solvers qualified for 

two grants, making it possible for company 

President Clarence Gland and Vice President 

Kimberly Henry to hire Erika Rhett as treasurer. Problem Solvers then helped 20 other 

Camden residents find jobs. 

For more information on the programs of 

the Camden EZ, please contact Program 

Manager Darrell Staton of the Camden EZ 

Corporation, at (856) 365–9061. 

Camden Tech Incubator 

Adds New Venture Fund, 

Plans Expansion 

Camden, New Jersey, RC 

“A lot of people thought there were no 

entrepreneurs in South Jersey,” Frank Keith, 

director of the Rutgers-Camden Technology 

Campus, Inc., told the Philadelphia Business 

Journal in 2002. “We proved them wrong.” 

And Keith continues to prove his point. 

On March 31, 2004, the U.S. Commerce 

Department’s Economic Development 

Administration (EDA) boosted incubator 

efforts by providing $850,000 to cover 

legal and administrative costs of setting up 

the New Jersey Early Stage Venture Capital 

Fund. The EDA investment will start the 

venture fund and provide a mentoring program to help technology-related, earlystage businesses gain access to equity and 

debt financing. Keith envisions the venture 

capital fund becoming as large as $75 

million. 

SECTION 2 

“To help attract qualified entrepreneurial 

companies to Camden and its surroundings, 

the fund will strongly encourage companies 

in which it invests to locate in the city’s 

Renewal Community or Empowerment Zone. 

The Tech Campus will seek experienced 

venture-fund managers from the region to 

run the fund,” Keith said. 

The Tech Campus is a partnership of the 

Rutgers University School of Business at 

Camden, the Delaware River Port Authority, 

and the New Jersey Commission on Science 

and Technology. Located in Camden’s 

Renewal Community since its opening in 

October 2002, the Tech Campus will move 

to new quarters in the Camden EZ waterfront 

in 2005. 

“The long-range goal is to create a sixbuilding technology park in Camden, close 

to the aquarium,” said Keith. “As we speak, 

the first building is under construction. It 

will be 100,000 square feet—20,000 square 

feet per floor, with five f loors available for 

occupancy in 2005.” One floor of the building will provide modular “wet labs” to 

“house a nest of biotech life sciences companies in Camden,” said Keith. The 

Rutgers–Camden Technology Campus will 

occupy two f loors of the new building, 

doubling the incubator’s capacity in its current site with 35 office suites in a renovated 

hospital building in the RC. 

“The idea, as companies spin out of the incubator, is to have a tech park in Camden,” said 

Keith. He anticipates the tech park project will 

create 1,000 to 1,200 high-paying jobs. 

All companies located in the Camden RC are 

eligible also to claim valuable Federal tax 

incentives that Congress authorized for RC 

businesses, such as Commercial Revitalization 

Deductions, Increased IRS Section 179 

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 employFinancial and Technical Assistance 67 
SECTION 2 

er can take these credits. These credits are 

available to RC businesses through at least 

the end of 2009. 

For more information on the programs 

of the Camden RC, please contact Managing 

Director Rick Cummings of the Camden EZ 

Corporation at (856) 365–0300. 

EZ Loan Funds Childcare 

Center Expansion 

Cleveland, Ohio, EZ 

Dawn Benton is a woman with a lot of heart. 

Her commitment to nurture children in a 

safe and encouraging environment lies at the 

heart of her small business, located in the 

Glenville neighborhood in the Cleveland EZ. 

The name that Benton chose for the business 

reflects her heartfelt affection for children: 

All My Heart Education Center. 

“I believe the success of All My Heart comes 

from my staff, committed to giving our children the best that they have,” says Benton. 

All My Heart serves infants, toddlers, preschoolers, and elementary school children. 

The success of Benton’s early education center meant a need to grow. With the help of 

an EZ business opportunity loan of $90,764 

dollars, received in May 1999, Benton was 

able to expand her education facility by 

1,500 square feet. The new facility contains a 

kitchen, bathroom, cribs, and play areas for 

infants and toddlers. 

Enrollment at All My Heart for 2004 is at 

capacity with 70 children, most from the 

Glenville area. Benton says most of her staff, 

including 16 teachers and assistants, live in 

the EZ. 

“The children are my joy,” says Benton. 

“They are, as I like to say, the frosting on my 

cupcake.” 

For more information on the programs of 

the Cleveland EZ, please contact Director 

Anthony Houston at (216) 664–3410. 

Franchise Initiative 

Brings Popeyes, Wendy’s 

to Columbus EZ 

Columbus, Ohio, EZ 

Two national fast food chains are opening 

eateries in the Columbus EZ in 2004, thanks 

to the Columbus Compact Corporation’s 

Franchise Initiative. The two franchises— 

Popeyes Chicken & Biscuits and Wendy’s 

International, Inc.—are bringing a national presence to underserved commercial areas in the 

EZ. 

The Columbus Compact Corporation administers the Columbus, Ohio, EZ. The compact’s franchise initiative offers financial 

resources to investors and experienced retail 

managers within the boundaries of the 

Columbus EZ. 

The franchise approach enables national 

retailers to enter central city marketplaces at 

reduced risk. These enterprises benefit the EZ 

by redeveloping idle property, providing 

services, and creating entry-level jobs for 

residents. 

Through the initiative, the Columbus 

Compact makes available up to $250,000 as 

an equity investment to support a new franchise operation. The compact then becomes 

a limited partner with less than 50 percent 

ownership. A structured 5-year exit strategy 

will recoup the compact’s investment and 

leave the operator with full ownership. In 

addition, participating businesses receive the 

support of a full-service real estate development firm for tasks such as market studies, 

assistance in identifying and securing sites, 

negotiating with franchisers, and packaging 

68 Spotlight on Results 
SECTION 2


bank financing, as well as assistance with site 

development or redevelopment. 

Popeyes opened its doors for business in the 

Milo-Grogan neighborhood of the Near 

North Heritage District of Columbus in 

February 2004—dramatically improving the 

appearance of the one-half acre site, which 

formerly consisted of vacant lots, billboards, 

and two empty buildings. The Milo-Grogan 

restaurant is the second Popeyes franchise 

owned and operated by minority entrepreneurs Ron and Mary Prigmore, a local couple. 

The Prigmores credit the franchise program 

with helping identify a site and securing 

financing with Huntington National Bank. 

The program also provided development 

expertise, site assembly, and predevelopment 

financing during the site research stage as 

well as subordinated debt financing for construction/permanent financing. 

Popeyes employs 35 area residents with an 

estimated payroll of more than $300,000. 

The owners are eligible to take EZ wage credits worth up to $3,000 annually for each 

employee who lives in the EZ. 

Watermark Services LLC opened a Wendy’s 

restaurant on East Broad Street in the Near 

East Heritage District in 2004. Watermark is 

the only franchise in the Wendy’s home market owned by African Americans. This project 

is redeveloping a half-acre of vacant property 

into a one-of-a-kind, historic carriagehouse-style restaurant in an underserved area. 

There will be 35 to 40 jobs and a payroll 

exceeding $400,000. The owners will be eligible for up to $3,000 a year in EZ wage credits 

for each employee who lives in the EZ. The 

initiative provided predevelopment financing, 

development expertise, intensive assistance 

with zoning variance process, and neighborhood liaison services. 

For more information on the programs of the 

Columbus EZ, please contact President and 

CEO of Columbus Compact Corporation 

Jonathan Beard at (614) 251–0926. 

Opportunity Fund Carves 

Shopping Mall From 

Large Downtown Store 

El Paso, Texas, EZ 

The El Paso EZ’s Border Opportunity Fund 

helped make it possible for a long-time El 

Paso retailer to retain a retail presence in a 

historic downtown store while subdividing 

some of the space to create affordable main 

street storefronts for microenterprises. 

Thanks to a low-interest, 10-year construction 

loan of $197,000 secured by real estate, 

Mark Rosen, Inc., took the large Texas Store 

at Mesa and Overland Streets in downtown 

El Paso and subdivided part of it into smaller 

spaces. Rosen’s grandfather, Marcus Rosen, 

founded the Texas Store in El Paso in the 

1930s. Beginning in 1931 with the Popular 

Dry Goods Company in Las Cruses, New 

Mexico, the Rosen family has established a 

regional chain of clothing and piece goods 

stores under the Popular and Texas Store 

names. 

The 2003 EZ funding for the Mesa Street 

Development covered costs of a new roof, 

asbestos removal, seven new bathrooms, and 

additional parking facilities. The project created five separate rental retail spaces with prime 

locations on Mesa Street. 

Retailers in the development now include a 

men’s and a women’s shoe store, a sports 

shoes store, a financial services company, a 

general merchandiser, and a seamstress who 

rents out party equipment and sews for weddings and the traditional Hispanic quinseanera (a coming out party for teenage girls). 

Financial and Technical Assistance 69 
SECTION 2


The Border Opportunity Fund helps address 

the financial needs of businesses that have 

not been adequately served by traditional 

lending institutions. Loans from this fund 

feature competitive interest rates to businesses in the El Paso EZ to help facilitate expansion projects in an area with traditionally 

minimal access to business capital. 

For more information on the Border 

Opportunity Fund or other programs of the 

El Paso EZ, please contact Phyllis Rawley of 

the EZ at (915) 351–1680, or visit the EZ’s 

Web site at www.elpasoez.org. 

Fresno EZ Businesses Get 

HELP With Financing 

Fresno, California, EZ 

The city of Fresno launched its new $1 million EZ business loan program with a flourish. Mayor Alan Autry and Council President 

Brad Castillo began the January 24, 2004, 

Fresno City Council meeting by presenting 

proclamations that officially declared this to 

be HELP Loan Day in the city. 

“Access to capital is an essential element of 

any economic development program,” said 

Fresno Economic Development Director 

Fred Burkhardt, explaining the significance 

of the program. 

A partnership between the Fresno Economic 

Development Department, the Valley Small 

Business Development Corporation, and five 

area banks made the Hometown Entrepreneur Loan Program (HELP) possible. The 

Community Reinvestment Act loan pool will 

assist local enterprises that have had difficulties receiving small business loans in the 

past. 

With the active involvement of the Federal 

Reserve Bank of San Francisco, five banks 

agreed to contribute $250,000 to the loan 

fund: Central Valley Community Bank, 

Country Bank, United Security Bank, Valley 

Independent Bank, and Wells Fargo & Co. 

The Valley Small Business Development 

Corporation, a Fresno area nonprofit development agency, operates the loan pool. The 

Economic Development Department administers the Fresno EZ. 

Funds will be available for investment in the 

Fresno EZ, Enterprise Zone, HUB Zone, or 

low-to-moderate income census tracts. 

At the city council presentation on January 

24, Autry and Castillo recognized all of the 

participants who made the loan pool a reality and then held a news conference. Broad 

coverage in the press and on local television 

and radio stations helped to get the 

word out. 

Within 2 months of the launch, 5 loans were 

approved totaling nearly $0.5 million. Few of 

the successful applicants, who represent a 

variety of businesses and financing needs, 

would have secured funding without the 

program. 

“The collaboration and the confidence in 

the city of Fresno Empowerment Zone 

demonstrated by the city’s financial community is gratifying,” Burkhardt said of the 

loan program. “It is a significant tangible 

investment in the city’s future!” 

For more information on the programs 

of the Fresno EZ, please contact Fresno 

Economic Development Interim Director 

Lynn Bowness, Department of Economic 

Development, City of Fresno, at (559) 

621–8353. 

70 Spotlight on Results 
Minority Business 

Opportunity Committee 

Takes Off in 

Northwest Indiana 

Gary/East Chicago/Hammond, 

Indiana, EZ 

Since its inception in April 2003, the Northwest Indiana Minority Business Opportunity 

Committee (NIMBOC) has assisted more 

than 60 minority business entities in obtaining $13 million dollars in contract awards and 

more than $200,000 in financial transactions. 

NIMBOC, established by the Gary/East 

Chicago/Hammond EZ with funding from 

the Minority Business Development Agency 

of the U.S. Department of Commerce, is 

made up of CEOs of major private industries 

and public organizations in Northwest 

Indiana. Its mission is “to foster the creation, 

growth, and expansion of minority-owned 

businesses in the cities of Gary, East Chicago, 

and Hammond.” 

The committee fosters alliances that plan, 

coordinate, and deliver innovative policies, 

programs, and strategies. It fosters additional 

sources of capital, improved management 

skills, and greater market penetration for 

minority-owned businesses within the U.S. 

and global economies. Subcommittees work 

in the areas of finance, contracting and procurement, marketing, and international trade. 

NIMBOC holds many events for the minority 

business community. In 2003 NIMBOC hosted its first Minority Enterprise Development 

Week with the EZ. More than 200 guests 

attended and 30 EZ minority businesses 

received Entrepreneurial Legacy Awards. 

NIMBOC has scheduled its second annual 

Minority Enterprise Development Week conference for September 2004 in Gary. 

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The international trade subcommittee recently 

sponsored a trade breakfast that provided 

minority business owners an opportunity to 

sell their products and services internationally. 

Speakers presented the possibilities of trading 

in a global market place. 

For more information on the programs of the 

Gary/Hammond/East Chicago, Indiana EZ, 

please contact Executive Director Venus Cobb 

at (219) 886–9047. 

New Development at The 

Point—A Shell Building 

Takes Shape 

Huntington, West 

Virginia/Ironton, Ohio, EZ 

Construction is underway on a $1.3 million, 

42,000-square-foot shell building at The 

Point, a South Point, Ohio, industrial park. 

The shell building is the first of several projects 

planned for the 500-acre industrial park in 

the Huntington, West Virginia/Ironton, Ohio, 

EZ developable site. Economic development 

officials hope the park will bring several thousand jobs to the area in the upcoming years. 

At the March 2004 groundbreaking ceremony, 

U.S. House of Representative Ted Strickland 

said, “This is yet another example of how the 

Empowerment Zone program can work. This 

community has made great things happen 

with the EZ money.” 

Approximately an acre will be under roof at 

the new shell building, which will also have 

26-foot-high ceilings, two loading docks, and 

40-foot-wide bays. In addition, the site will 

have 50 parking spaces. 

Financial and Technical Assistance 71 
SECTION 2 

The shell building will lease for about $2.75 

per square foot, or $100,000 a year. There 

have already been a number of inquiries 

about the property, but no one has signed 

a lease yet. Tenants will be eligible for the 

many EZ tax incentives including wage credits, EZ facility bonds, reduced capital gains 

provisions, and special business deductions. 

Local officials have started an $80,000 marketing campaign for the shell building and 

the industrial park. Half of this communications budget was provided through State 

funds. 

For this project, the State partnered with the 

Lawrence Economic Development Corporation, the economic development arm of the 

chamber. The development corporation borrowed $500,000 and the State provided 

$500,000 in funding. Another $200,000 in 

funding was provided by the EZ. 

Construction on a $900,000 project will create a 6,000-square-foot training center and a 

$2.5 million project will bring infrastructure 

improvements including water, sewer, and 

road building the industrial park. 

Construction on the Ohio University 

Southern’s Point Leadership and Training 

Center will take 9 to 12 months to complete. 

In addition, the development corporation was 

recently notified that it would receive $70,000 

in tobacco settlement money to help build 

roads in the industrial park. 

For more information on progress of The 

Point’s shell building and training center, as 

well as information on the programs of the 

EZ, please contact Executive Director Cathy 

Burns of the Huntington/Ironton EZ, at 

(304) 399–5454. 

EZ Contribution Jump 

Starts Major Shopping/ 

Entertainment Complex 

Huntington, West 

Virginia/Ironton, Ohio, EZ 

Having overcome the largest impediment— 

land acquisition—to a $60 million restaurant, 

retail, and entertainment complex, Pullman 

Square is no longer a dream. Due to the 

development’s location, the Huntington, West 

Virginia/Ironton, Ohio, EZ was able to contribute $500,000 to help assemble the 8-acre 

site, thereby setting the project in motion. 

The EZ’s partnership with four groups— 

Huntington Urban Renewal Authority; the 

Transit Authority; the city of Huntington; 

and Huntington Metropolitan, the private 

developer—was key to the successful land purchase and it demonstrated the community’s 

support of and commitment to a major development within downtown Huntington. By 

backing up its words with action, the partnership effectively made the case that the EZ was 

a prime location for investment. “I am pleased 

the development is located within the 

Empowerment Zone and tenants are eligible 

for Federal tax incentives,” said Tim Rollins, 

project developer. 

Five tenants have already signed on to be a 

part of Pullman Square. Of those five, three 

companies are new to West Virginia. In addition to the 16-screen Marquee Cinema and 

two large parking garages, two restaurants, 

an ice cream parlor, a coffee shop, and a 

comedy club will call Pullman Square home. 

Located near the Marquee Cinema, Cold 

Stone Creamery will offer made-to-order 

ice cream creations to each customer by 

blending mix-ins on a frozen granite stone. 

72 Spotlight on Results 
SECTION 2


This sweet shop will occupy 1,250 square 

feet and will be the first of its kind in West 

Virginia. 

New to the State is The Funny Bone Comedy 

Club, which features standup comedians 

and weekly headliners performing in a twolevel, state-of-the-art club. A national leader 

in comedy club operations, The Funny Bone 

will occupy 6,700 square feet. 

Facing Third Avenue, Moe’s Southwest Grill 

is one of the fastest rising stars in the quickcasual dining category. Moe’s makes burritos 

daily from the freshest ingredients. The 

2,300-square-foot location will be its first in 

West Virginia. 

Sharing the building next to the Holiday Inn 

and Suites is Pizzeria Uno. Originally known 

for its Chicago Style Deep Dish Pizza, the 

restaurant now features a full lunch and dinner menu in a casual family-style setting. It 

will offer al fresco dining in this 7,200-squarefoot location. 

Situated on a high-profile corner of Pullman 

Square, overlooking the square and facing 

Third Avenue, Starbucks will occupy 1,600 

square feet and provide both indoor and outdoor, café-style seating. This is the fifth West 

Virginia location for this retailer of whole 

bean coffees, espresso beverages, premium 

teas, pastries, and confections. 

For more information on the progress 

of Pullman Square and on the programs 

of the EZ, contact Executive Director Cathy 

Burns of the Huntington/Ironton EZ, at 

(304) 399–5454. 

EZ Business Resource 

Center Uses Startup 

Loans To Assist Businesses 

and Create Jobs in Heart 

of Knoxville 

Knoxville, Tennessee, EZ 

The Bourbon Street Café is one of the newest 

additions to Knoxville’s EZ. The restaurant 

specializes in home-style New Orleans and 

southern-style meals, sandwiches, and 

desserts. Owner Lilita Smith is a bundle of 

energy who is very excited about this 

endeavor. 

Smith worked with the Tennessee Small 

Business Development Center and Economic 

Ventures, partners in the Knoxville EZ Business 

Assistance Center, for approximately 1 1/2 

years before receiving a $50,000 startup loan 

from the EZ to help finance her business. She 

accomplished all of this while working another 

job and going to school full-time. She spent 

time acquiring equipment for the café and the 

equipment served as collateral for the loan. 

Smith found the staff of the EZ business assistance center to be very helpful throughout the 

entire process. 

Smith says that the hardest part about getting started was getting detailed information 

about her industry. People were reluctant to 

share information with someone who was 

going to be a potential competitor. The easiest part about getting started was “trusting 

in God and working out the menu.” 

Four new jobs were added to Knoxville’s EZ 

with the grand opening of the Bourbon 

Street Café in October 2003. 

Financial and Technical Assistance 73 
SECTION 2 

On April 17, 2004, business owner Gary 

Gamble addressed a crowd of well-wishers 

at the grand reopening of GAM’S Hair 

Fashions in the Mechanicsville community 

of Knoxville. Gamble’s business was displaced when his former location was 

acquired as part of the economic redevelopment plan in Mechanicsville. However, 

thanks to a $50,000 loan from the 

Knoxville EZ Business Resource Center, 

Gamble now owns the building at 1524 

University Avenue where his business is 

housed and he was able to remain in the 

community just a few feet away from his 

former location. Gamble credits the assistance of the EZ business resource center 

staff throughout the process of securing 

the loan to purchase the building and new 

equipment. With the reopening of GAM’S, 

Knoxville’s EZ has retained two jobs and 

added seven new ones. 

Healthcare Billing Resources is a company 

that provides billing, administrative, and 

consultative services to healthcare providers 

in Knoxville. Owner Jennifer Monroe started 

the business out of her home in 1998. The 

business grew quickly and she soon moved 

to a bigger home. However, the success of 

the business necessitated finding appropriate 

office space. “We like the close proximity to 

downtown and to the hospitals and doctors 

we serve,” said Monroe. She stated she “gets 

more office space for the dollar” by having 

her business located downtown. In addition, 

the office is close to where most of her 

employees live. 

The continued growth of the business made 

it necessary to purchase additional equipment 

to increase operational efficiency, so Monroe 

contacted the Knoxville EZ business resource 

center for assistance. Because she had all the 

necessary paperwork when she showed up for 

her appointment, the EZ was able to process 

a business loan of $50,000 to her in a matter 

of days. Jennifer has used her loan money to 

expand the office space and purchase new 

equipment. She was excited to learn she 

could fully depreciate the equipment costs on 

her Federal taxes in the first year through the 

Increased IRS Section 179 Deductions because 

her business is located in the Knoxville EZ. She 

is also able to take advantage of the EZ wage 

credit because one of her four full-time and 

two part-time employees live in the EZ. The 

EZ wage credit is worth up to $3,000 yearly 

to EZ employers for each employee that lives 

in the EZ. 

For more information on the programs of 

the Knoxville EZ, please contact Marcy 

Griffin, Assistant Community Development 

Administrator, City of Knoxville, (865) 

215–3900. 

EZ Fosters Business 

Development in South 

Florida 

Miami-Dade, Florida, EZ 

LEASA Industries Expands Facilities 

and Jobs 

LEASA Industries Company is close to completing construction of a 30,000-squarefoot facility expansion that was made 

possible by a $1.6 million equity investment by the Miami-Dade Empowerment 

Trust, which administers the Miami-Dade 

EZ. “The Empowerment Trust is making it 

possible for us to continue leading our 

industry while making a positive impact 

in the local community,” commented L. 

George Yap, president and CEO of LEASA 

Industries. 

As one of the largest growers of bean and 

alfalfa sprouts and the largest producer of 

tofu in Florida, the expansion was needed to 

accommodate LEASA’s rapidly growing sales 

that totaled nearly $5 million in 2002. 

Located in the Poinciana Industrial Park, this 

expansion is expected to create 65 new jobs 

for residents of the Miami-Dade EZ. 

74 Spotlight on Results 
Chili’s Brings Flavor and Jobs to Bayside 

Marketplace 

Thanks to a $500,000 investment from the 

Miami-Dade Empowerment Trust’s Venture 

Capital Fund, Chili’s Bar & Grill opened a 

restaurant in Bayside Marketplace. Not only 

will Chili’s enhance this major tourist attraction, but it will also create at least 100 jobs in 

the central business district of the MiamiDade EZ. 

“This is a really great opportunity for Chili’s 

to complement the attractions offered at 

Bayside for tourists and local residents. At the 

same time we are hiring residents from economically distressed areas such as Overtown 

and Wynwood,” added a Chili’s spokesperson. 

For more information on the programs in 

the Miami-Dade EZ, call EZ Director Andre 

Wallace at (305) 372–7620. 

Coffee Shop Adds Savor 

to New Minneapolis 

Urban League 

Headquarters 

Minneapolis, Minnesota, EZ 

“I want to give back and provide a business 

model of appropriate, professional behavior, 

particularly for our children,” Ardana 

Johnson, owner of Café Tatta Bunna in the 

Minneapolis EZ, told the Minnesota 

Spokesman-Recorder. “I want them to know 

that any business they dream of can become 

their career.” 

Café Tatta Bunna has become a popular community gathering place since opening in 

December 2002. The first coffee shop on 

Minneapolis’ Near North Side, Café Tatta 

Bunna leases space in the city’s new Urban 

SECTION 2 

League Headquarters, the Glover-Sudduth 

Center for Economic Development and Urban 

Affairs. The 30,000-square-foot redeveloped 

building at Plymouth and Penn, with its distinctive patterned brick and clock tower, features two large public gathering places and 

nine smaller spaces. 

The coffee shop received a $30,000 EZ business initiative loan through the Minneapolis 

Consortium of Community Developers. Other 

funding partners included Women Venture, 

Minneapolis Urban League, Minneapolis 

Community Development Agency, Northside 

Residents Redevelopment Council, and 

Franklin Bank. 

The Minneapolis EZ Business Initiative is a 

partnership with community lenders to invest 

in EZ small businesses. It makes loans and 

technical assistance available to entrepreneurs 

within the EZ who may not be able to access 

conventional loans or who are in need of 

additional capital. Businesses located in the 

EZ are also eligible for a $3,000 yearly tax 

credit for each employee who lives in the EZ. 

Johnson, a former Northwest Airlines flight 

attendant, was born and raised in North 

Minneapolis. “My roots are here,” said 

Johnson. “I graduated from North High 

and I recently purchased a home in north 

Minneapolis.” 

When asked about her business goals, 

Johnson said that she sees her future role as 

supporting other entrepreneurs. “There are 

people in places who can and will help you,” 

Johnson affirmed. “I don’t want anyone to 

say it can’t be done.” 

For more information on the programs of the 

Minneapolis EZ, please contact Director 

Jonathan Palmer, Minneapolis EZ at 

(612) 673–5016. 

Financial and Technical Assistance 75 
SECTION 2 

Gotham Plaza Brings 

Stores, Offices, and 

Confidence to East 

Harlem 

New York, New York, EZ 

“Gotham Plaza is more than just another 

building,” says Gotham Plaza developer 

David Blumenfeld, vice president of Blumenfeld Development Corporation. “It is a historic vote of confidence in the future of East 

Harlem.” 

Gotham Plaza, a 90,000-square-foot retail 

and office building on East 125th Street 

between Lexington and Third Avenues, is an 

important factor in the ongoing revitalization 

of the New York Empowerment Zone in East 

Harlem, an area that has suffered urban 

blight for decades. 

Completed in December 2002, Gotham 

Plaza is a mixed-use facility with prime retail 

and office space. The retail stores include 

The Children’s Place, Foot Action, Petland 

Discounts, and Rockaway Bedding. The New 

York State Department of Motor Vehicles and 

Lifespire—a nonprofit organization that provides services to adults with developmental 

disabilities—lease the upper f loors of the 

building. 

The $22.5 million Gotham Plaza project was 

financed by a $3 million loan from the Upper 

Manhattan Empowerment Zone (UMEZ) 

Development Corporation, an $18 million 

loan from Fleet Bank, and $1.5 million in 

developer equity. UMEZ administers the 

Manhattan portion of the New York EZ. 

Gotham Plaza created 275 jobs and helped 

stabilize other commercial businesses, including Pathmark Supermarket, Seamans 

Furniture, and Duane Reade (the latter two 

having leased space in another building, 

Gateway Plaza, that was partially financed by 

UMEZ). 

“The project was a good first step to 

address the shortage in local office space. 

It has also provided a great draw for other 

businesses to expand or move into the 

underserved East Harlem community,” said 

Kenneth J. Knuckles, CEO and president of 

UMEZ. 

For more information on the programs of 

the UMEZ, please call Chief Administrative 

Officer Marion Phillips, New York Empowerment Zone Corporation, 

(212) 803–3239. 

Through EZ Financing, 

Café Helps Keep NYC’s 

Fort Tryon Park Beautiful 

New York, New York, EZ 

The New York Times called the New Leaf Café, 

located in Manhattan’s Fort Tryon Park, “a 

cool, airy oasis.” The Zagat Survey commended its “stunning” location, “creative” 

organic cuisine, and “friendly” service. 

What makes this out-of-the-ordinary restaurant truly unique, however—according to 

Kenneth J. Knuckles, former CEO and 

president of the UMEZ Development 

Corporation—is that “the Café received a 

grant from UMEZ and the proceeds from 

operations are used to support and maintain 

Fort Tryon Park.” 

The New Leaf Café is an enterprise of entertainer Bette Midler’s New York Restoration 

Project (NYRP), a nonprofit organization 

working to reclaim, develop, and revitalize 

parks, gardens, and public space in New 

York City. Net proceeds from the restaurant 

support NYRP’s ongoing work in Fort Tryon 

Park. In addition, Midler’s organization supports several other parks, including Swindler 

Cove Park, Fort Washington Park, Highbridge 

Park, Roberto Clemente State Park, and 

Bridge Park. 

76 Spotlight on Results 
SECTION 2


“When I moved back to New York in the 

early 90s, I saw the decay of its parks, roadways, and open spaces—especially in economically disadvantaged neighborhoods,” 

declared Midler in a 2004 letter on the 

NYRP Web site. “Since then, NYRP has 

shown what individual action, organized 

around a unified effort, can achieve. We’ve 

forged partnerships with city and State 

agencies to allow our cleanup and reclamation projects to bring hundreds of acres of 

parks back to pristine condition.” 

Since its opening in 1995 in Fort Tryon Park, 

the New Leaf Café has provided a distinctive 

and romantic setting for fine dining. 

Designed to appeal to residents and tourists 

alike, the restaurant serves local, regional, 

and international audiences and also hosts 

special events and themed evenings. The 

menu features both American and regional 

cuisines. 

The EZ’s $200,000 grant to New Leaf Café 

went toward the build-out of the restaurant’s 

second floor. The commitment from UMEZ 

added to the momentum for the development of the New Leaf Café, helping to create 

57 new jobs and supporting the overall 

economic revival taking place in Upper 

Manhattan. The EZ grant becomes a fully 

repayable loan should the Café fail to comply 

with the grant agreement. UMEZ administers 

the Manhattan portion of the New York 

Empowerment Zone. 

For more information on the programs of the 

UMEZ, please call Chief Administrative Officer 

Marion Phillips, New York Empowerment 

Zone Corporation, (212) 803–3239. 

Nation’s Biggest AfricanAmerican Bookstore 

Established in Harlem, 

Thanks to EZ Loan 

New York, New York, EZ 

“Businesses like the Hue-Man Bookstore greatly enhance the cultural landscape of our 

community,” remarks Kenneth J. Knuckles, 

former CEO and president of the UMEZ 

Development Corporation. “They draw visitors to 125th Street and complement the 

nearby cultural institutions like the Apollo 

Theater and the Studio Museum.” 

In August 2002 the Hue-Man Bookstore 

opened its massive 4,000-square-foot space 

in Harlem USA—instantly becoming the 

largest African-American bookstore in the 

country. Harlem USA, a multimedia entertainment retail complex that opened in 1999, 

previously brought in retailers like Old Navy, 

HMV, and Magic Johnson Movie Theaters to 

a historically underserved area. One of the 

first projects of UMEZ, Harlem USA was 

approved in 1996. 

The Hue-Man Bookstore boasts an extensive 

selection of books by African-American 

authors on a wide variety of topics. It also has 

a large children’s book department, an education area, and a coffee and refreshment 

bar. With a décor and ambience that rival 

larger chain bookstores, it has become a fixture in the Harlem community. 

UMEZ facilitated the establishment of the 

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. 

The bookstore’s three owners—Clara 

Villarosa, Rita Ewing, and Celeste Johnson— 

committed $500,000 in equity to the 

project. 

A financier, psychologist, and holder of a law 

degree, Villarosa founded the Hue-Man 

bookstore in Denver, Colorado, and operated 

it for 16 years before bringing the concept to 

New York City. Ewing is an attorney and 

author of women’s fiction and children’s 

books. Johnson had considered opening a 

bookstore of her own in Charlotte, North 

Carolina. 

“This is so much bigger than our plans,” 

Ewing told the American Booksellers 

Association’s Bookselling this Week at the 

time of the opening. “I never expected the 

kind of impact [the bookstore] would have 

on the entire community. People are always 

coming by, poking their heads in.” 

For more information on the programs of 

the UMEZ, please call Chief Administrative 

Officer Marion Phillips, New York 

Empowerment Zone Corporation, at 

(212) 803–3239. 

GM, Car Dealer Group 

Partner With EZ To 

Establish New Auto Mall 

in Harlem 

New York, New York, EZ 

When completed in 2005, the East Harlem 

Auto Mall will be the largest auto sales and 

service center in New York City and the first 

located above 60th Street in more than 40 

years. The new auto mall, launched June 20, 

2003, with an agreement signed between 

General Motors and the Potamkin Auto 

Group of New York, was made possible by 

$17 million in tax-exempt EZ facility bond 

funding. 

78 Spotlight on Results 

“When organizations of the caliber of 

General Motors and Potamkin choose East 

Harlem for a major initiative,” said New York 

Mayor Michael Bloomberg at the signing, 

“it’s a sure sign that the neighborhood is 

maintaining its momentum toward becoming a major destination shopping location, as 

well as a place where people work, live, and 

invest.” 

The East Harlem Auto Mall, to be built on 

East 127th Street between Second and Third 

Avenues, will house five auto dealerships 

including the GM brands Cadillac, Chevrolet, 

Saturn, and Hummer. In addition, the property will be used to complete the final stages 

of auto manufacturing and offer full vehicle 

service and repair facilities. 

The UMEZ Development Corporation issued 

$17 million in Industrial Development 

Authority bonds to finance the cost of construction. UMEZ administers the portion of 

the New York EZ that is in Manhattan. 

The Cadillac and Hummer franchises will 

be owned by Potamkin Cadillac Hummer 

of Manhattan and will be developed in 

conjunction with Potamkin’s Minority 

Dealership Program. Similarly, the 

Chevrolet and Saturn franchises are being 

developed in conjunction with GM’s 

Minority Dealer Development Program. 

“These new GM franchises will play a role 

in GM’s effort to better address the needs 

of buyers in this large and diverse market,” 

said GM Chairman and CEO Rick Wagoner 

at the signing. “We’re dedicated to providing products and services that a wide range 

of customers want and to getting our fair 

share of the growing sales in these markets.” 

The East Harlem Auto Center is expected to 

create more than 250 permanent highpaying, full-time jobs with an average annual 

salary of approximately $41,600. This is a full 

16 percent higher than the median wage of 
$36,760 for New York residents, noted 

Kenneth J. Knuckles, former CEO and president of UMEZ. 

“A project of this size will pay massive dividends as East Harlem and the surrounding 

communities of Upper Manhattan continue 

to benefit from new investment and building 

initiatives,” said Knuckles. “We hope to continue to bring these types of projects to 

Upper Manhattan in the future.” 

For more information on the programs of 

the UMEZ, please call Chief Administrative 

Officer, Marion Phillips, New York Empowerment Zone Corporation, at 

(212) 803–3239. 

EZ’s Technical Assistance 

Helps Security Company 

Prosper 

Norfolk-Portsmouth, Virginia, EZ 

Seeking to take advantage of the heightened 

interest in security in order to grow its business and in need of more suitable office 

space, Advanced Research Investigative, LLC 

(ARI) approached the Norfolk-Portsmouth, 

Virginia, EZ for help. Within 90 days of the 

request, ARI had relocated from Virginia 

Beach, Virginia, to the EZ. 

“Pre-September 11th, there was not a lot of 

interest in security, but since that time, 

opportunities have opened up in this industry,” said CEO Keith Benson, who founded 

ARI in 1998. These opportunities, combined 

with ARI’s move to the EZ, served as a 

springboard to take business to the next 

level. 

Through its small business incubator and 

resource center, Empowerment 2010, which 

administers the EZ, was able to steer ARI to 

additional government contract opportunities and was instrumental in helping ARI 

secure new government contracts. Benson 

SECTION 2 

beams when he speaks about how far his 

company has come since June 2003. “When 

I came to talk with Empowerment 2010, we 

had zero contracts. To this date, we have 

five. Once everything was put in place 

through the relationship with 

Empowerment 2010, we were quite successful with contract negotiations and 

awards,” he said. 

With ARI’s move to the EZ came growth. 

The company has gone from a 1-man operation to 15 full-time employees, 5 of whom 

are EZ residents. ARI is now eligible to claim 

yearly EZ wage tax credits worth as much 

as $3,000 per employee. By registering with 

Federal and State procurement agencies, 

ARI won a competitive bid to perform 

screening services for a pass and identification department valued at $62,700. 

For more information on the programs of the 

Norfolk-Portsmouth EZ, contact Landis D. 

Faulcon of Empower 2010, Inc., at (757) 

314–4228. 

Virginia EZ and Wireless 

4 U Form Valuable 

Partnership 

Norfolk-Portsmouth, Virginia, EZ 

Having started as an independent sales 

representative selling cell phones from the 

trunk of his car, James Hunter, Jr., was 

ready for a store of his own. Today, his 

company, Paradyme Marketing Group, LLC, 

is flourishing due in large part to the help 

Hunter received from the small business 

incubator and resource center run by 

Empowerment 2010, the organization that 

administers the Norfolk-Portsmouth, 

Virginia, EZ. 

After developing his business plan, Hunter 

turned to the small business incubator and 

resource center, where he learned about the 

Financial and Technical Assistance 79 
SECTION 2 

opportunities provided to EZ businesses. He 

received a wealth of legal, human resources, 

and marketing assistance for his new business. 

“Empowerment 2010 was very useful because 

it provided information that I would not have 

had or come across if I’d not established that 

relationship,” says Hunter. 

Paradyme Marketing Group opened its first 

retail store, Wireless 4 U, in September 

2002 on Hampton Boulevard in Norfolk, 

just minutes from a local university. The 

store not only offers competitive local 

exchange carrier services through Cavalier 

Telephone, but also carries a variety of mobile 

products from Alltel, Nextel, Sprint, and 

T-Mobile. 

In August 2003, after correctly anticipating 

the buying power of Generation Y, Hunter 

expanded his business to Chesapeake, Virginia. 

He described the technical assistance he 

received from Empowerment 2010 as “invaluable.” When he started the company in 2002, 

it had five full-time employees, three of whom 

were EZ residents. Paradyme was eligible to 

claim yearly EZ wage tax credits worth as 

much as $3,000 for each of these three 

employees. Hunter says he is looking forward 

to a prosperous future and a fruitful, ongoing 

relationship with Empowerment 2010. 

For more information on the programs of 

the Norfolk-Portsmouth EZ, contact Landis 

D. Faulcon of Empower 2010, Inc., at (757) 

314–4228. 

EZ Helps Welding 

Company Connect With 

New Opportunities 

Norfolk-Portsmouth, Virginia, EZ 

Two years after Tiggs Welding, LLC, was 

established, profits soared 150 percent, a 

result of the company’s relationship with the 

Small Business Incubator and Resource 

Center (SBIRC) in the Norfolk-Portsmouth, 

Virginia, EZ. This family-owned metalsmith 

firm received invaluable information from 

and made valuable business contacts 

through the SBIRC. 

Tiggs Welding is the brainchild of Herbert 

and S. Patrice Tiggs. Trained in California as 

a special niche welder, Herbert Tiggs was 

inspired by another entrepreneur and motivated by a family crisis to begin this joint 

venture. Patrice Tiggs, a former client of 

Empowerment 2010, which administers 

the EZ and the SBIRC, had heard of selfimprovement programs for EZ residents, 

but was unclear how they could be of help 

in establishing a business. 

Initially, the husband-wife team sought professional assistance for their business from the 

veteran’s center. When that program concluded, the instructor joined SBIRC and the Tiggses 

soon were reaping the benefits of all SBIRC 

had to offer. 

“I guess the three things we’ve gained 

have been knowledge, insight into business 

relationships, and accountability,” said 

Patrice Tiggs. “While the information is 

available at the center, we’ve learned it’s 

up to you to learn as much as you want to 

learn. No one is going to do it for you.” 

After establishing itself in April 2001, Tiggs 

Welding requested assistance with marketing to increase its share of construction and 

government contracts. The SBIRC helped 

the firm implement several initiatives to 

help enhance market share. As a result, the 

firm has expanded from mobile welding to 

metal equipment repair and fabrication and 

has been certified by the Virginia Department of Transportation as a “Stay-in-Place 

Decking” builder for bridge construction. 

Additionally, its increased market presence 

led RockfordTM Steel Building Systems, a 

South Carolina manufacturer of ready-toassemble steel buildings, to designate Tiggs 

80 Spotlight on Results 
Welding as the Hampton Roads region’s 

authorized dealer for its products. 

These milestones allowed the company to 

increase its 2002 revenues by 150 percent 

over the previous year. The relationships initiated through the Empowerment 2010 SBIRC 

helped Tiggs Welding reach new heights. 

For more information on the programs of the 

Norfolk-Portsmouth EZ, contact Landis D. 

Faulcon of Empower 2010, Inc., at (757) 

314–4228. 

EZ Business Center 

Strengthens Urban Core 

Stability 

St. Louis, Missouri/East St. Louis, 

Illinois, EZ 

Although the lack of adequate capital can be 

a barrier to small business development, the 

lack of adequate technical assistance often 

prevents businesses with potential from getting off the ground. And, without a sound 

business plan, many startups are unable to 

attract financing. 

The EZ Small Business Development Center 

(SBDC) in St. Louis has been working to 

ensure that companies receiving Federal 

loans are considered sound by outside 

investors. Having loaned $890,000 to five 

small businesses in 2001 and 2002, the 

Greater St. Louis Regional EZ, which established the SBDC, saw its efforts pay dividends 

as the seed money leveraged an additional 

$2.5 million in private development and 

retained and created 92 jobs. 

At the EZ Small Business Development Center, 

companies learn business plan development, 

marketing, loan packaging, and financial analysis. The EZ operates the center in partnership 

with the U.S. Small Business Administration; 

RMI, a microbusiness lender; the Missouri Small 

Business Development Center; Great Rivers 

SECTION 2 

Community Capital; and the Service Corps of 

Retired Executives. The EZ also offers financial 

assistance in the form of low-interest loans and 

grants at the center. 

A recent analysis prepared by the Initiative 

for Competitive Inner Cities projects growth 

potential for EZ businesses and praises the 

EZ business center. “Consistent with trends 

nationwide, St. Louis’s growth is anchored 

by small business development,” says Kevin 

Cahill, chief operating officer of the St. Louis 

Inner City Competitive Alliance. “The creation of this business development center is 

critical to retaining and encouraging sustainable business development and job creation.” 

“The service we offer and coordinate truly 

empowers business owners,” says Kevin 

Wilson, director of the EZ Small Business 

Development Center. “They have a real 

opportunity to improve their circumstances.” 

For example, DMX Industries and Lackey Sheet 

Metal have received technical and financial 

assistance at the EZ business center to 

expand their operations, while two other 

businesses, Wicks Mobil Plaza and Cecil 

Whittaker’s Pizzeria, used assistance from the 

EZ business center to add critical access to 

retail services. Arvin’s Furniture Appliance and 

AC, another recipient of assistance, was able 

to rise from the ashes of a fire that damaged 

its facility within the EZ. 

For more information on the programs of the 

St. Louis, Missouri/East St. Louis, Illinois, EZ, 

contact Interim Executive Director Ann 

Robertson, St. Louis Regional EZ Management Corporation, at (314) 241–0002. 

Yakima Uses Loan Fund 

To Generate Jobs 

Yakima, Washington, RC 

The establishment of an Economic 

Development Loan Fund (EDLF) in Yakima, 

Financial and Technical Assistance 81 
SECTION 2 

Washington, in October 2002 has led to the 

creation of more than 130 jobs within the 

Yakima RC. While the monies, all of which 

came from HUD’s Office of Community 

Planning and Development, have been earmarked for specific purposes, the city has 

allotted them to further job growth in the 

RC. Yakima has used a $1 million Economic 

Development Initiative grant to provide a 

loan loss reserve, pay certain fees, and guarantee the interest rate for the term of each 

loan, while it has used $4 million in Section 

108 funds to approve businesses. 

In 2003 Yakima funded three projects 

through the EDLF at a total value of 

$3,335,000. The jobs these projects will create are spread among businesses large and 

small. 

The first involves Trail Wagons, Inc., a recreational vehicle manufacturer. This business 

used its loan to supplement working capital, 

acquire chassis, and retool for the introduction of two new motorhome models. The 

expansion of this RC-based business will create 121 new, full-time manufacturing jobs for 

local residents. 

During its brief existence, Yakima Cellars, a 

boutique winery and tasting room, has produced several award-winning handcrafted 

white and red wines. Both the wine production facility and the tasting room are located 

in Yakima’s RC. Yakima Cellars used a 

$110,000 loan for working capital and 

equipment acquisition. As a result, the company expects to expand production and hire 

three more full-time employees over the next 

24 months. One of its partners has started a 

second winery as a result of Yakima Cellars’ 

success. 

With its $330,000 EDLF loan, Pepper’s 

Restaurant funded both the acquisition 

of and repairs to an existing structure and 

working capital. The principals of this 

minority-owned, RC-based business also 

own a hotel adjacent to the restaurant. 

Reopening the restaurant was, in the eyes 

of owners Seong and Helen Kim, vital to 

the success of their hotel. 

The EDLF is an integral part of the Yakima 

RC’s efforts and provides it with more flexibility when assisting businesses at the local 

level. 

For more information on the programs of 

the Yakima RC, please contact RC Director 

Michael Morales of the city of Yakima, at 

(509) 575–3533. 

82 Spotlight on Results 
83 

SECTION 2 

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 expanded through a $100,000 Cleveland EZ business loan. 

(page 68) 

industrial park in South Point, Ohio. (page 71) 

An El Paso EZ grant helped to finance a local retail 

Charm City Signs used a Baltimore EZ loan and EZ 

technical assistance to launch a successful graphics 

arts business. (page 64) 

Financial and 

Technical 

Assistance 

Financial and Technical Assistance 

A Huntington-Ironton EZ grant helped to finance a new 

center. (page 69) 
84 Spotlight on Results 

SECTION 2 

Minneapolis EZ financial assistance. (page 75) 

Gotham Plaza in Upper Manhattan. (page 76) 

Employees of Healthcare Billing Resources, a small 

business that received Knoxville EZ financial assistance. 

Pullman Square was developed partly through a 

$500,000 Huntington-Ironton EZ grant. (page 71) 

Financial and 

Technical 

Assistance 

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 

A New York EZ loan helped to finance the new 
85 

SECTION 2 

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) 

tance through the Norfolk-Portsmouth EZ Small 

Financial and 

Technical 

Assistance 

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 

Tiggs Welding received valuable technical assisBusiness Incubator and Resource Center. (page 79) 
Spotlight on Results

SECTION 3


Residents Advancing With


Job Creation, Training, 


and Assistance

SECTION 3


Akey to revitalizing the 

Renewal Communities (RCs) 

and Empowerment Zones 

(EZs) is creating jobs for local 

residents. Steady employment provides the 

foundation for residents to become economically self-sufficient. Providing new jobs and 

job-training services for local residents helps 

each EZ promote economic opportunity, 

which is one of the four key principles of 

each EZ’s strategic plan. The tax incentive 

utilization plan of every RC also focuses 

heavily on creating jobs and providing job 

training for local residents. 

The annual reports that RCs and EZs submit 

to HUD reveal considerable success in 

advancing job creation and training assistance for local residents of these designated 

areas. These reports show that the urban EZs 

have conducted nearly 700 job-training and 

job match programs for more than 65,000 

EZ residents since 1994. As a result, the EZs 

helped more than 55,000 EZ residents obtain 

new jobs and retain current employment. 

The RCs do not receive Federal grants to 

provide job training assistance to local residents, yet the RCs are still successful in providing employment training and new jobs 

for local residents. In Rochester, New York, 

for example, the RC works with Rochester 

city offices to facilitate the BEST program. 

BEST is an employment skills-training model 

that develops employment competencies for 

local residents, matches participants to local 

opportunities, and provides job-retention 

support for each participant. 

In the Eastern Kentucky Renewal Community 

(EKRC), RC staff partnered with Save-theChildren and AmeriCorpsVISTA to provide 

computer skills for RC residents. At a local 

donated computer lab in the RC, residents 

receive one-on-one computer training and 

tutorials on computer repair. The Flint, 

Michigan, RC works with the national 

organization Support and Training Result in 

Valuable Employees (STRIVE) to provide job 

training for RC residents. In 2002 STRIVE conducted preemployment and basic skill development classes. It recruited 318 residents, of 

which 209 graduated into employment. 

This section of the publication showcases the 

successes of RCs and EZs in providing vital 

job creation and training assistance for local 

residents. We know that you will enjoy reading about these successes and we hope that 

your community emulates some of these successes. If you would like additional information on any of the stories in this section, 

please call the RC or EZ directly using the 

contact information that appears at the end 

of every story. 

Job Creation,Training, and Assistance 89 
SECTION 3


Job Creation, 

Training, and 

Assistance 

People, Partnerships, and 

Progress in Georgia RC 

Atlanta, Georgia, RC 

With almost 60 percent of families in the former Atlanta EZ living below the poverty 

level, job readiness took priority as the EZ 

began its transition to an RC. The need for 

employment-related training was emphasized by residents attending seven community meetings sponsored by the city of Atlanta 

to discuss the new RC designation. 

“The Atlanta Renewal Community is completely committed to what works to relieve 

and eradicate the distress in our neighborhoods through partnerships with residents, 

businesses, and government,” said Melvin 

Waldrop, executive director of the Atlanta RC. 

“We are also committed to who works. Every 

capable adult and youth should have the 

capacity—skills and training—to move from 

unemployment and underemployment to 

self-sufficiency.” 

Although she lives in the RC, Jorrica 

Copeland knew very little about how either 

EZ or RC programs could help her. Copeland did know a lot about unemployment 

and underemployment. Since graduating 

from high school in 1995, she had worked 

only in customer service positions at a 

major grocery store and a dry cleaning 

establishment. 

The employment-related needs of Copeland 

and other RC residents are now being 

addressed through a partnership between 

the Atlanta RC and the Atlanta Workforce 

Development Agency (AWDA). Through 

employment recruitment, evaluation, individualized job coaching, and career 

advancement counseling, AWDA’s 

GoodWorks! program offers lifelong learning and career development opportunities. 

The 7-month GoodWorks! program is targeted to Temporary Aid for Needy Families 

applicants and recipients as well as noncustodial parents with a high school diploma 

or General Equivalency Diploma. The program also provides mentoring for up to 12 

months after a hire date and support services such as transportation, childcare, and 

healthcare. 

As an AWDA program participant, Copeland 

is now working at the Atlanta RC’s management company, the Atlanta Neighborhood 

Development Partnership, Inc. “This opportunity has offered me computer training, 

helped me develop typing skills, and has 

allowed me to meet very important people 

here in Atlanta,” said Copeland. “I am now 

excited about my future!” 

Pleased to provide employment opportunities to AWDA participants, Waldrop noted, 

“We could not expect to engage our partners to honor their commitment to this 

community and not do so ourselves.” In fact, 

two of Copeland’s GoodWorks! classmates 

also have been placed through the Atlanta 

RC: Marry Ann Pitts, who now works in the 

office of the president and CEO of Atlanta 

Neighborhood Development Partnership, 

Inc., and Angela Langford, who provides 

direct support to the RC program. 

“When you bring people together in partnerships that work, progress is the predictable 

outcome,” said RC Deputy Director Lisa L. 

Hawkins. “That’s what works for the Atlanta 

Renewal Community—people in partnerships 

for progress.” 

For more information on the programs of 

the Atlanta RC, contact Lisa Hawkins, at 

(404) 522–3970. 

90 Spotlight on Results 
Painting a Picture Full of 

Opportunities 

Cincinnati, Ohio, EZ 

The benefits provided by this Cincinnati, 

Ohio, EZ-based paint company extend 

beyond the EZ’s boundaries and into the 

community at large. Not only does Nu-Blend 

Paints provide job training and opportunities, 

it also recycles unused latex paint, reblending it into more than 150 different colors 

and a variety of finishes. 

By purchasing the Free Store/Food Bank 

Building at 40 East McMicken in the Overthe-Rhine (OTR) area, Nu-Blend Paints 

demonstrated its commitment to EZ residents. “Without the Empowerment Zone 

we would not be here,” said Bill Wojcik, 

Nu-Blend Paints’ executive director. “The 

Empowerment Zone has been extremely 

helpful to our past and continued existence. We invite everyone to tour our facility. We see OTR as a viable community and 

we are committed to making the neighborhood a great place to live, work, and do 

business.” 

In 2001–02, the Cincinnati Empowerment 

Corporation, which administers the 

Cincinnati EZ, awarded Nu-Blend a grant 

and renewed it in 2002–03. Nu-Blend provides training and job opportunities to EZ 

residents. Its Painters Training Program 

teaches painting as a trade and helps 

graduates find occasional or full-time paint 

jobs and assists them in forming their own 

painting contract companies. The company 

presently has 16 employees, most of whom 

live in the EZ. 

Painter Rhonda Lewise joined Nu-Blend Paints 

in its infancy. “I have started many things and 

never completed them,” she said. “With the 

help of the Nu-Blend staff, I followed through 

and I’m proud of it.” The mother of three, 

Lewise admits that her participation in the EZ 

SECTION 3 

program has changed her life. “I was struggling—making minimum wage, low selfesteem, lost, and confused. Now I have a 

much better income. I have learned patience 

and self-control and have had an attitude 

change,” she said. “What I am most proud 

of is ... I took my 8-year-old son on a tour of 

where I work. When it was over he looked up 

at me with so much pride and said, ‘Mom, 

this is where you work?’” 

For more information on the programs of 

the Cincinnati EZ, call Harold Cleveland, CEO 

of Cincinnati Empowerment Corporation, at 

(513) 487–5200. 

Cleveland EZ-Based 

Business Keeps ExOffenders Out of Prison 

Cleveland, Ohio, EZ 

As thousands of former prison inmates return 

to Cuyahoga County, Ohio—most of whom 

will make their homes within the Cleveland 

EZ—one EZ-based business is working to 

reduce recidivism by integrating training, 

education, support services, and employment. 

More than 20,000 inmates were released 

from Ohio’s State correctional facilities in 

2003, according to the Ohio Department of 

Rehabilitation and Correction (ODRC). Many 

of these ex-offenders faced obstacles such as 

overcoming addiction to drugs and alcohol, 

locating adequate housing, and finding jobs. 

In an effort to end the cycle of prison release 

and readmission, Community Re-entry, Inc., 

gives a second chance to those who need it 

through the SAVIP (Save a Very Important 

Person) program. SAVIP was developed to aid 

former felons living in the Cleveland EZ. Since 

2001 the Cleveland EZ has obligated more 

than $1.3 million in grant funds to the SAVIP 

program. 

Job Creation,Training, and Assistance 91 
SECTION 3 

For Victoria Lynne Berry, SAVIP was her saving grace. Having labeled herself the black 

sheep of her family, this 30-year-old found 

herself confined within the criminal justice 

system on four occasions—primarily due to 

her involvement with drugs and alcohol. 

“I was doing all right until crack came to 

town,” said Berry. That was when she lost 

control of her life and alienated her family. 

She lost 18 years to drugs and alcohol abuse. 

In August 2002 Berry made the decision to 

turn away from her destructive lifestyle. 

That’s when she came to Community Reentry and enrolled in the SAVIP program. 

Under the SAVIP program, Berry returned to 

Cuyahoga Community College to complete 

her associate’s degree while also working in 

a subsidized position with the Famicos 

Foundation. Impressed with her personality 

and work ethic, Berry’s employer offered her 

a full-time position as a community organizer 

and outreach coordinator. 

Now, in addition to working full-time, Berry 

voluntarily teaches computer literacy classes. 

She made the dean’s list as an undergraduate 

and has begun giving back to the community she took for granted and drained of 

resources while an addict. 

For more information on the programs of the 

Cleveland EZ, contact Anthony Houston, 

director, at (216) 664–3410. 

Work Initiative Program 

Teams EZ Residents With 

Local Employers 

Columbia/Sumter, South 

Carolina, EZ 

With a shortage of skilled carpenters and 

masons in the region, the Columbia/ 

Sumter, South Carolina, EZ launched the 

Work Initiative Program (WIP) to offer skills 

training in these construction trades to 

underemployed or unemployed EZ residents. “We’re attempting to fill an industry 

void by providing a skilled work force, and 

we are meeting the needs of the residents 

of the Empowerment Zone by creating job 

opportunities,” said Milton Smalls, the EZ’s 

CEO. “The WIP program is what the 

Empowerment Zone was set up to do, to 

create public-private partnerships that 

would come in and fill the needs of the 

community.” 

The WIP offers three 10-week training programs each year to help EZ residents attain 

marketable skills in carpentry and masonry. 

Participants who complete a minimum of 

9 weeks of training receive a certificate from 

the National Center for Construction 

Education and Research. 

Various organizations refer applicants to the 

WIP, including the Columbia Housing 

Authority, the Employment Security 

Commission, South Carolina Vocational 

Rehabilitation, the Department of Social 

Services, the Tennessee Development 

Corporation, Benedict College, and the 

Home Builders Institute Project Take Heart. 

Only those who are underemployed or 

unemployed may receive the nominal, 

incentive-driven weekly stipend that considers attendance, test scores, and skills 

demonstration. 

Employers in the Columbia/Sumter EZ have 

a significant financial incentive to hire WIP 

graduates. Employers in the EZ can receive 

up to $3,000 yearly in Federal wage tax 

credits for each employee who lives in the 

EZ. “Not only does it allow the construction 

industry to take advantage of the tax incentives and tax credits that the Empowerment 

Zone offers, it also provides above average 

wages for our residents,” said Smalls. “So 

it’s a win-win situation for everyone 

involved.” 

92 Spotlight on Results 
In 2003 more than 200 people applied to 

WIP; 76 were accepted into the program. 

About 80 percent of the participants graduated into full-time employment. In 2004 WIP 

expanded each of the 3 sessions to 12 weeks 

to incorporate soft-skills training. 

For more information on the programs of 

the Columbia/Sumter EZ, contact CEO 

Milton Smalls at (803) 545–3336. 

Adult Job Training 

Sparkles in Detroit 

Detroit, Michigan, EZ 

When Jewell Holley found herself in the 

unemployment line, her self-esteem dropped 

and she suffered bouts of depression. At age 

50, with more than 35 years of work experience, she was unable to find a job. Today, 

Holley is an assistant branch manager for 

Standard Federal Bank in the Detroit, 

Michigan, EZ, thanks to Operation ABLE. 

Although mature and elderly adults can 

often avail themselves of social services, 

healthcare, and recreational and housing 

options, there are far fewer opportunities 

for employment and job training. The 

Detroit, Michigan, EZ’s response to such 

limited offerings was to help fund 

Operation ABLE, which provides a range 

of job-related services for EZ residents age 

40 or older. 

“Most public and private agencies in our 

communities focus on strengthening families 

by wrapping services around children and 

parents. At Operation ABLE we want to make 

sure that family elders get their fair share,” 

said Francine Sims, who directs the agency’s 

central office at Hannan House on 

Woodward Avenue. 

SECTION 3 

Sims and her Operation ABLE colleagues 

help EZ residents overcome obstacles to 

employment, including limited job experience, a history of substance abuse or incarceration, fear of rejection due to age 

discrimination, or shopworn work skills due 

to long absences from the workplace. 

While attending an EZ town hall meeting at 

Beard Elementary School in January 2002, 

Holley picked up a flyer from Operation 

ABLE’s booth advertising computer classes. 

If she could upgrade her computer skills, 

thought Holley, she would be a more attractive job candidate. Holley began Operation 

ABLE’s computer training program just 2 

months later. Today she works within the 

EZ as a bank’s assistant branch manager. 

With $533,600 in grants from the Detroit 

EZ Development Corporation since August 

1996, Operation ABLE has helped bridge a 

vital gap by making free computer training 

and job-search assistance available to EZ residents over 40 years of age. Operation ABLE 

uses a variety of strategies to help clients 

land jobs. Employers frequently come to one 

or more of Operation ABLE’s three offices, all 

within the EZ, to interview clients. Operation 

ABLE also provides job leads, listings of 

jobs convenient to specific bus lines, job 

fairs, job clubs, and clothing. 

Since the program began, 278 EZ residents 

have received computer training, other job 

skills, and job-search training. So far, 142 

have been placed in jobs by ABLE or found 

jobs independently using the skills they 

acquired through ABLE. 

For more information on the programs of 

the Detroit EZ, contact Executive Director 

Larry Givens at (313) 872–8050. 

Job Creation,Training, and Assistance 93 
SECTION 3 

Lack of Nurse Assistants 

Means Job Training 

Options for EZ Residents 

Detroit, Michigan, EZ 

Facing an increased demand for paraprofessionals in hospitals, assisted-living facilities, 

private homes, and nursing homes, the 

Visiting Nurses Association (VNA) of Southeastern Michigan is training 60 EZ residents as 

nurse assistants with a $300,000 grant from 

the Detroit EZ Development Corporation 

(EZDC). 

“By 2005 the need for paraprofessionals 

to work in skilled nursing facilities and with 

homebound patients is projected to increase 

by 138 percent. This is the largest increase 

across all healthcare professions,” wrote VNA 

Training Institute Director Trinee Moore in 

the April 2003 issue of In Touch. VNA not 

only provides home healthcare for eligible 

recipients, it trains workers in the healthcare 

industry and serves as an advocate for healthcare issues such as coverage for the uninsured and affordable prescription 

medications. 

Certified nursing assistants perform a variety 

of patient services. These include personal 

care services such as dressing, feeding, and 

bathing; taking vital signs and assisting with 

medication; holding instruments and adjusting lights during medical examinations and 

treatment; and offering patients emotional 

support. 

EZ-funded classes are held at the training 

institute’s newest location in the Metropolitan 

Center for High Technology. Participants 

attend classes daily during the 5-week 

training program and receive field experience 

each Saturday. Those completing the program can work as home health aides in private homes or as nurse assistants in hospitals, 

assisted-living facilities, or nursing homes. 

Starting salaries range from $7 to $9 per 

hour. Graduates passing the Stateadministered licensing exam tend to command more than those who are unlicensed. 

To qualify for training, applicants must be at 

least 18 years of age, be drug-free, have stable housing, have a clean criminal background, have access to reliable childcare, 

and be able to read on an eighth-grade level. 

They also are required to pass a physical 

examination. Priority is given to low-income 

applicants and mid-life career changers. An 

interview with VNA staff is required. 

“The face-to-face interview helps us to 

determine such factors as the applicant’s 

level of maturity, how self-directed, disciplined, and independent they are, and if 

they’re medically and emotionally ready 

to deal with the demands of the job,” 

says Training Counselor Nadia Purnell. 

Applicants who cannot read on an eighth 

grade level are referred to local literacy 

programs where they can be brought up 

to speed. “We keep the door open. 

Whenever applicants reach that level, 

they’re welcome to come back,” she said. 

“This training presents an opportunity to 

gain a real foothold on employment because 

the demand is so great for skilled workers,” 

says Larry Givens, executive director of the 

EZDC. It is also a launching pad, he says, for 

higher paying professions up the healthcare 

career ladder such as licensed practical nurse, 

nuclear medical technician, or administrator. 

To date, VNA has provided education, training, and employment to more than 300 

people. 

For more information on the VNA training 

program, contact Nadia Purnell, VNA training 

counselor, at (800) 882–5720. For more 

information on the programs of the Detroit 

EZ, contact Executive Director Larry Givens 

at (313) 872–8050. 

94 Spotlight on Results 
Faith-Based Furniture 

Factory Builds Skills of 

Homeless in El Paso EZ 

El Paso, Texas, EZ 

“Our business is a little different from 

most,” notes the Web site of Rescue 

Furniture, a faith-based enterprise in the 

El Paso EZ. “We are not in business to see 

how much money we can make. We insist 

on hiring only homeless persons, and we 

give hiring preference to the most disabled 

persons that we can find.” 

In June 2003 El Paso’s Rescue Mission created Rescue Furniture to provide employment for homeless persons while teaching 

them marketable woodworking job skills. 

Rescue Furniture opened with an annual 

budget of about $120,000—reflecting 

wages for four laborers, a shop foreman, 

shop equipment, office equipment, and 

overhead, not including lumber costs. The 

project submitted a grant request to the El 

Paso EZ that met the EZ’s parameters of a 

1:5 leverage ratio. The EZ approved a grant

of $26,172. 

Rescue Mission envisioned also that the new 

furniture factory would create superior quality products that would change public perception about the work that homeless 

persons are capable of achieving. Today 

Rescue Furniture manufactures heavy-duty 

all-wood bunk beds, single beds, three- and 

four-drawer chests, and bedside tables. The 

products are attractive, economically priced, 

and durable. Potential customers include 

consumers, local retailers, other missions and 

shelters, and government agencies. 

All Rescue Furniture workers are recruited 

from residents in the homeless shelter in 

the El Paso EZ. Most of the workers are 

recent graduates of the mission’s 13-week 

drug and alcohol treatment program. Of 

the eight employees building furniture, six 

SECTION 3 

are doing so well that they have been able 

to get their own homes or apartments in 

the community. Another employee has 

gone on to employment with a company 

in El Paso, receiving a pay boost to $8 per 

hour instead of the $5.50 per hour wage 

at Rescue Furniture. 

The Rescue Mission, a faith-based group, 

was established in 1952 to address the 

needs of the homeless in El Paso County. 

Over the past 15 years, the organization 

has transformed itself from a provider of 

food, clothing, shelter, and counseling for 

a temporary stay into a provider of services 

to help homeless persons obtain stable 

housing, develop full wage-earning potential, and reintegrate into society. 

For additional information on Rescue 

Furniture, please visit the Web site at 

www.rescuefurniture.org or call Blake 

Barrow at (915) 532–2575. For more information on the programs of the El Paso EZ, 

please call Executive Director Phyllis Rawley 

at (915) 351–1680. 

EZ Helps Fund Training 

for High-Skill, HighDemand Jobs 

El Paso, Texas, EZ 

“Thanks in part to the Empowerment Zone 

and Project ARRIBA, which believed in me, I 

was given an opportunity of a lifetime ... to 

return to school and receive a college 

degree,” said Norma Melendez, a resident of 

the El Paso EZ. Displaced from a high-paying 

job in 2002, Melendez is a single parent of 

two school-aged children with special needs. 

Project ARRIBA (Advanced Retraining & 

Redevelopment Initiative in Border Areas) provides quality job training in El Paso County, 

where unemployment hovers at almost double the national average. ARRIBA’s mission is 

Job Creation,Training, and Assistance 95 
SECTION 3 

to provide long-term, high-skills training and 

case management services to eligible residents 

to enable them to qualify for jobs that pay a 

living wage and benefits. The training also 

stresses the importance of life skills needed 

in the business sector including time management, establishing a good work ethic, 

showing responsibility, developing good 

communication skills, and demonstrating an 

ability to think critically. The program works 

with participants and their employers after 

job placement to help ensure job retention. 

Believing that investing in human capital is 

economic development that works, the El 

Paso EZ has supported Project ARRIBA for 

more than 2 years with a $250,000 grant 

for July 2001–October 2002 and another 

$250,000 grant for September 2002–July 

2005. ARRIBA has contracted with the EZ to 

graduate and place 50 EZ residents in jobs. 

Since its inception in December 1998, ARRIBA 

has graduated 127 participants into highdemand occupations that are typically filled 

by people from outside the community. The 

average wage for program graduates who 

gain employment is more than $14.50 per 

hour, or $30,000 per year. These occupations 

offer benefits and career paths. 

Project ARRIBA sponsors more than 250 program participants in long-term training in 

the allied health and information technology 

fields. The program aims to help alleviate the 

critical shortage of healthcare professionals in 

the EZ. The overall program retention rate is 

more than 80 percent. 

The typical ARRIBA participant is a 33-yearold Hispanic woman, married with two children, who receives government assistance in 

the form of TANF, food stamps, or both. 

More than 51 percent fall at or below the 

poverty level. Participants excel in the classroom with 63 percent maintaining a 3.0 

cumulative grade point average or better. 

“I will finish school in May 2005 as a registered nurse,” Melendez said. “I will be able 

to pay back the community by staying in El 

Paso and becoming a contributing taxpaying 

citizen of our society again. I will be able to 

set an example not only to my small children 

but also to the rest of the community and 

demonstrate where there is a will there is 

a way.” 

For further information on Project ARRIBA, 

please visit its Web site at www.project 

arriba.org or contact Kathy Cox, CEO, at 

(915) 843–4055. For more information on 

the programs of the El Paso EZ, please contact Executive Director Phyllis Rawley at 

(915) 351–1680. 

Mott Initiative Opens 

Allied Health Careers 

to Flint RC Residents 

Flint, Michigan, RC 

The Flint Healthcare Employment Opportunities 

(FHEO) Project, an initiative of the Charles 

Stewart Mott Foundation, is bringing new 

job-training opportunities to residents of the 

Flint Renewal Community while addressing a 

local shortage of skilled labor in the allied 

health field. 

In 2000 Mott initiated the FHEO Project with 

a grant to the National Economic Development and Law Center. Research found that 

the healthcare industry in Genesee County, 

Michigan, was experiencing both a high attrition rate among entry-level healthcare workers and a labor and skills shortage among 

allied healthcare positions. At the same time, 

residents of the Flint RC, an area of high 

unemployment and low income, represented 

an untapped source of potential employees. 

Addressing these factors, the FHEO Project 

works with healthcare employers to restructure hiring, retention, and promotional 

96 Spotlight on Results 
SECTION 3


practices for entry-level healthcare workers 

to help reduce attrition rates, facilitate career 

advancement, and improve employment 

opportunities in healthcare for residents of 

the Flint RC. 

The Flint RC was involved in the research, 

analysis, planning, and implementation phases of the FHEO Project. RC staff conducted 

focus group sessions to determine healthcare 

employers’ employment needs as well as 

potential interest in participating in the 

FHEO Project. RC staff served on the project 

implementation committee to ensure that 

RC residents receive continued access to 

services. 

The Mott Foundation will provide $400,000 

in yearly funding for the FHEO Project 

through June 2005. A related Mott program 

awarded $120,000 over a 5-year period to 

assist FHEO graduates in continuing their 

education and moving up the healthcare 

career ladder. The Community Foundation 

of Greater Flint contributed a 1-year grant 

of $40,000 to fund a position to maintain 

regular contact with employers and FHEO 

graduates to address workplace issues and 

to develop new partnerships with other 

healthcare employers. The Greater Flint 

Health Coalition is the lead agency for the 

project. 

FHEO has offered six training classes to date, 

with the first class of graduates completing 

training in January 2003. Participants receive 

3 weeks of professional, attitudinal, and lifeskills training; a mentorship program; 

WorkKeys® skills assessment of mathematics; 

and training in locating information, observation, and reading skills. The program also 

provides 2 years of case management. Other 

initiative components include training for 

those who supervise entry-level employees, 

certified nursing assistant training, and 

training and career assistance for incumbent 

healthcare workers living in the RC. 

By April 2004 the FHEO Project had already 

yielded impressive results: 90 participants had 

completed the 3 weeks of life-skills training; 

42 participants were employed in healthcare 

jobs; 8 participants were employed in nonhealthcare jobs; and 13 were enrolled in college for nurse aide training. 

For more information on the programs of 

the Flint RC, please contact RC Manager 

Nancy Jurkiewicz Rich at (810) 341–1499. 

Community College in 

Flint RC Trains Residents 

for Employment 

Flint, Michigan, RC 

Housed at the Sylvester Broome Center in 

the heart of the Flint Renewal Community, 

the Mott Community College (MCC) Workforce 

Development Department offers a variety of 

affordable educational and employment 

training services to local residents who are 

unemployed or underemployed. 

The Flint RC, designated by HUD in January 

2002, is a committed partner of the college’s 

workforce training. The RC helped MCC 

identify funding opportunities and participated in regional planning efforts to assess 

workforce needs, types of jobs available, and 

effective job-training services. 

MCC’s partnership with the local workforce 

development board and Michigan Works! 

offers services in vocational and academic 

assessments, computer and employment 

training, and job placement. 

MCC operates a Workforce Investment Act 

(WIA) program, an adult worker program, a 

dislocated worker program, an Incumbent 

worker program, and a year-round youth 

program. These programs offer educational/ 

career assessments; resume development; 

employment assistance; and training in computer, literacy, and teamwork skills. 

Job Creation,Training, and Assistance 97 
SECTION 3 

Participants placed in jobs receive support 

services for up to 90 days, which include 

transportation services, uniforms, and childcare services. 

As many as 100 WIA participants secured 

employment in 2004. The WIA program 

“Helped me to obtain employment and to 

develop and focus on my goals,” said Narisis 

Coleman, a WIA-Youth-program participant 

who found a job as a lunch aide at a Flint 

elementary school. Prior to coming to MCC, 

Coleman was unemployed and enrolled to 

obtain her GED. 

A relatively new certificate program is MCC’s 

Assisted Living/Direct Care Worker Job 

Opportunity program, which prepares participants to provide direct care and CPR to individuals in assisted living, private homes, or 

group home settings. Since its inception in 

May 2003, 31 students have graduated and 

27 of the graduates are now employed. 

Angela Colen, 41, a recent graduate of the 

MCC Direct Care program, is now employed 

at a resident adult care facility. She enjoys 

working with the elderly to make sure their 

needs are met and, more importantly, they 

receive companionship. 

Before coming to MCC, Colen was an unemployed college graduate with an accounting 

degree who had difficulty finding a job. 

Colen’s story demonstrates how program 

staff overcome multiple barriers to employment. Because she had been unemployed for 

a long period and lacked money for class 

fees, staff helped Colen secure financial assistance. The staff also helped her secure housing and helped resolve a situation with 

unpaid tickets that had deprived Colen of her 

driver’s license. Direct Care staff worked with 

Colen and the court to develop an agreement that allowed her to satisfy the debt 

through community service at MCC. 

“The staff was always very resourceful in 

helping me work out problems and barriers,” 

said Colen. “I couldn’t have done it without 

them.” 

For more information on the MCC Workforce 

Development Department, please contact 

Robert Matthews of Mott Community 

College at (810) 785–3300. For more information on the programs of the Flint RC, 

please contact RC Manager Nancy Jurkiewicz 

Rich at (810) 341–1499. 

EZ Tapped to Recruit 

Staff for New Bennigan’s 

Restaurant in Gary 

Gary/East Chicago/Hammond, 

Indiana, EZ 

When Bennigan’s Restaurant opened its doors 

in Gary in May 2003, almost all of the waiters, cooks, managers, and other staff 

were residents of the Gary/East Chicago/ 

Hammond EZ—and had been recruited and 

placed in their Bennigan’s jobs by the 

EZ itself. 

When planning the new restaurant, 

Bennigan’s owner Larry Briski was committed to hiring EZ and other local residents 

from Gary and East Chicago. Gary Mayor 

Scott L. King sought the assistance of the 

EZ to find these workers. EZ staff took on 

the assignment of filling more than 125 

positions, including managers, servers, 

hosts, hostesses, bartenders, cooks, and 

buspersons. 

The EZ conducted numerous job-readiness 

seminars and hosted a job fair at the Genesis 

Convention Center in April 2003, which 238 

applicants attended. 

Currently 96 percent of Bennigan’s staff are 

EZ residents. Briski has received EZ employment tax credit for each EZ resident hired— 

a total of approximately $200,000. The EZ 

wage tax credits are worth up to $3,000 to 

98 Spotlight on Results 
EZ business owners for each employee who 

lives in the EZ. 

For more information on the programs of 

the Gary/Hammond/East Chicago, Indiana, 

EZ, please contact Venus Cobb, EZ executive 

director, at (219) 886–9047. 

EZ Transportation Grant 

Gives Residents Lift 

to Work 

Gary/Hammond/East Chicago, 

Indiana, EZ 

If you cannot get to work, you cannot work. 

With this fact and some hard data in hand, 

the East Chicago Housing Authority 

Community Services director approached 

United Parcel Service (UPS) with a plan to 

provide transportation for East Chicago 

residents to jobs at the UPS facility in 

Hodgkins, Illinois. The project was made 

possible in part by a 2002–03 grant of 

$116,200 by the Gary/East Chicago/ 

Hammond EZ. 

The transportation program is a collaboration between the city of East Chicago, East 

Chicago Community Foundation, and the 

Urban Enterprise Association. The partnership and grant reinforce the EZ’s mission 

to create jobs for the EZ residents. 

Approximately 75 EZ residents used PACE 

Transportation to help them get to the 

UPS facility. 

“This is a win-win situation because we are 

providing employment opportunities to topnotch individuals,” said Dan Bujos, UPS program director. 

For more information on the programs of 

the Gary/Hammond/East Chicago, Indiana, 

SECTION 3 

EZ, please contact Executive Director Venus 

Cobb at (219) 886–9047. 

EZ Partnership With 

WorkOne Provides Job 

Training and Placement 

Gary/East Chicago/Hammond, 

Indiana, EZ 

The Gary/East Chicago/Hammond, Indiana, 

EZ has formed a partnership with Workforce 

Development Services (WFD) to create a 

dynamic job-training and work experience 

program for EZ residents. Started in January 

2004, the program is called “A New Year a 

New YOU—Empowerment Through 

Employment.” 

An EZ grant of $760,000 provides scholarships for skills assessments and vocational 

training for EZ residents through WorkOne 

Centers in Gary and East Chicago. 

Participants are taken through a vigorous 

6-week job-readiness training. Participants 

who successfully complete the job-readiness 

portion move into a 3-month work experience and vocational certification training, 

made possible through established relationships among the EZ, WFD, and area employers. Participants gain work experience in a 

particular area of experience or interest, 

building specialized skills. 

Currently, 27 individuals are participating in 

training. The program has graduated 16 EZ 

participants with a 100-percent placement 

and retention rate. 

For more information on the programs of 

the Gary/Hammond/East Chicago, Indiana 

EZ, please contact EZ Executive Director 

Venus Cobb at (219) 886–9047. 

Job Creation,Training, and Assistance 99 
SECTION 3 

EZ Funding Supports 

Employment Training 

for At-Risk Youth 

Huntington, West 

Virginia/Ironton, Ohio, EZ 

Operating out of an old high school renovated through a $650,000 grant from the 

Huntington/Ironton Empowerment Zone, the 

Cabell County Youth Empowerment Program 

in Huntington, West Virginia, is making a big 

difference in the lives of local school 

dropouts. 

The EZ uses city of Huntington Community 

Development Block Grant and the Federal 

Workforce Investment Act to fund the operations of the Youth Empowerment Program 

(YEP). The program helps school dropouts 

ages 14 to 21 who are deficient in job skills 

get into the workforce. The EZ has provided 

about $60,000 during the 3 years of the program’s existence. 

The youth program also helps local businesses. YEP subsidizes businesses to hire program participants, thereby providing at-risk 

youth with the job skills and training they 

need to prosper. Participating businesses gain 

the opportunity to train future employees at 

no cost and have the satisfaction of making a 

difference in individual lives. In addition, 

businesses located in the EZ can receive a 

$2,400 Work Opportunity Tax Credit and an 

annual $3,000 EZ employment tax credit for 

each student they hire who resides in the EZ. 

Program directors worked with the EZ to 

form mutually beneficial alliances with more 

than 16 local businesses. 

The highly successful program moved in 

January 2003 into new housing in 

Huntington’s once-abandoned Frederick 

Douglass High School building, now an office 

building. The renovated facility, which offers 

a state-of-the-art computer lab and onsite 

access to many other types of educational 

and vocational training, was transformed 

through a 2001–02, $650,000 EZ grant. 

One component of YEP, a 6-week woodworking class, recently received statewide recognition for its work. In February 2004 three 

woodcraft items produced in the class were 

juried and accepted by Tamarack, a shop that 

showcases West Virginia handcrafts, culture, 

fine art, regional cuisine, music, and heritage. 

“Congratulations and welcome to Tamarack,” 

announced Ron DeWitt, artisan services coordinator at Tamarack. “You are now the best 

of the best of West Virginia. We love your 

coaster set, cutting board, and game board. 

We have determined that they meet or 

exceed our standards for craftsmanship, 

creativity, and quality.” 

For more information on the programs of 

the Huntington/Ironton EZ, please contact 

Executive Director Cathy Burns at (304) 

399–5454. 

Miami EZ Funds Training 

in Computer-Assisted 

Design Software 

Miami-Dade, Florida, EZ 

Residents of the Miami-Dade EZ are learning 

the skills of computer-assisted architectural 

design and drafting, thanks to an agreement 

between CADD Centers of Florida and the 

Miami-Dade Empowerment Trust, which 

administers the EZ. Under the agreement, 

signed in March 2001, CADD Centers have 

conducted six 14-week sessions to date of 

Autodesk Authorized Training in the EZ, graduating 60 trainees. 

“On several occasions we had to request permission from our program directors to 

increase the class size to accommodate the 

high demand for our training,” said instructor Alvaro Menendez. “That alone is testament to the need for our program.” CADD 

100 Spotlight on Results 
SECTION 3


assigned two instructors and one coordinator 

to the EZ-funded trainings. Successful 

trainees become employable in jobs that pay 

$10 to $15 per hour. 

Autodesk is a manufacturer of computeraided design software, needed in industries 

such as building, manufacturing, infrastructure, digital media, and location services. 

CADD is the only dealer in Florida certified 

to train in all five areas of Autodesk software: 

architectural design and drafting, civil design 

and land development (including survey), 

mechanical design and drafting, graphic 

information systems, and animation and 

visualization. 

Training is conducted on the latest Autodesk 

Certified Courseware. After passing each 

step, students move on to the next plateau 

to learn even greater skills. Trainees can 

move on to internships at commercial firms 

and government agencies, getting experience in real-world applications and work 

habits. 

To fill a lively demand among companies 

looking for skilled drafters and designers, 

CADD refers its trainees to opportunities as 

independent contractors. Many government 

projects require minority participation and 

most trainees from the EZ fall into that 

category. 

CADD assists those who wish to become 

independent business people to set up 

operations—providing hardware and software and assisting graduates with marketing, planning, and running a business. 

CADD helps these entrepreneurs market 

their services to business and government 

enterprises and maintain the currency of 

their skills through ongoing technical support. CADD’s ongoing training in the EZ 

produces a pool of skilled labor that these 

entrepreneurs can hire and mentor. 

“This is a really unique and exciting program 

because not only are we providing people 

with the educational tools to prepare them 

for a career, but we are also creating entrepreneurs with the potential to be extremely 

profitable,” affirmed Bryan Finnie, president 

and CEO of the Empowerment Trust. 

For more information on CADD Centers of 

Florida, call Richard Neiman, president, at 

(954) 772–7300. For more information 

on programs of the Miami-Dade EZ, 

call EZ Director Aundra Wallace at 

(305) 372–7620. 

Focusing Regional 

Employment Resources 

on EZ Resident Needs 

Miami-Dade, Florida, EZ 

“We knew that our economic and community development efforts were creating job 

opportunities, but we needed to ensure that 

Empowerment Zone residents were properly 

trained and aware of these opportunities,” 

explains Bryan Finnie, president and CEO of 

the Miami-Dade Empowerment Trust, which 

administers the EZ. “That’s where this concept was developed.” 

To solve this problem, South Florida Employment and Training Consortium (SFETC) and 

the Empowerment Trust designed a program 

to identify and link EZ residents to the committed jobs in the strategic plan by marketing SFETC services to EZ residents. The 

program featured training and employment 

opportunities specifically for EZ residents in 

targeted industries. 

SFETC administers $40 million in training 

and employment funds and serves 18,000 

Job Creation,Training, and Assistance 101 
SECTION 3 

individuals annually in Miami-Dade County. 

Although SFETC operates 14 One-Stop 

Centers in or near EZ neighborhoods, the 

trust saw its services as underutilized. Many 

EZ residents qualified for SFETC programs but 

were unaware of the opportunities. 

In April 2000 the Empowerment Trust’s Board 

of Directors authorized a scope of services 

with SFETC for a contract to expand the 

Career & Pathways Strategy of the EZ strategic plan and ensure that EZ residents have 

access to available services. The contract 

required SFETC to place 500 EZ residents into 

jobs. By joining forces with SFETC, the EZ 

leveraged Federal dollars with Florida Department of Labor, Department of Children and 

Families, and other sources to provide a complete battery of programs to EZ residents. 

SFETC met all its objectives under the contract and the next step was to involve the EZ 

neighborhood assembly chairs in the structuring of the job placement process. SFETC 

met with the assembly chairs to resolve 

issues concerning the monitoring of service 

providers and the retention rate of EZ residents placed in jobs. As a result of the meetings, SFETC developed a request for 

proposals that would target customized 

training for EZ residents, require the agents 

for the customized training to be among the 

region’s approved training agents, require 

service providers to locate in the EZ where 

they will serve, require a track record of successfully serving EZ residents, and state the 

number of placements to be achieved within 

each community within EZ. 

For more information on programs in 

the Miami-Dade EZ, please call EZ 

Director Aundra Wallace at (305) 

372–7620. 

Good News Garage Gives 

PreOwned Cars to HardWorking EZ Commuters 

New Haven, Connecticut, EZ 

Barbara Fair, a resident of the New Haven 

EZ, needed her own car to get to work. She 

thought she could handle the gas, maintenance, and insurance costs on her budget, 

but knew she could not afford the car payments. That is where Empower New Haven 

and the Good News Garage made a lifechanging difference. Fair got a preowned 

car for free. She loves the car and her 

employer loves the fact that it is no longer a 

hassle for Fair to get to work. The first recipient of a car from the Good News Garage, 

Fair drove her car off the lot in January 

2003. 

“We want to provide relief for EZ residents 

who have transportation difficulties as a 

barrier to employment,” said Althea 

Marshall, Empower New Haven president 

and CEO. “This will help them maintain 

employment and reduce absenteeism and 

tardiness.” 

The Good News Garage opened in New 

Haven on January 17, 2003. Operated by 

Lutheran Social Services of New England, 

its activities are largely funded through a 

$300,000 grant received in 2002 for operations from the New Haven EZ. By early 

September 2004, 92 EZ residents had 

received roadworthy used cars through the 

program. 

The New Haven Good News Garage is 

housed in St. Luke’s Church under the auspices of the St. Luke’s Development 

Corporation. Other New Haven partners in 

the project include the departments of correction, labor, motor vehicles, and social 

services, as well as the Northeast Utilities 

Foundation. Other Good News Garage programs are located in Burlington, Vermont; 

102 Spotlight on Results 
Sturbridge, Massachusetts; Manchester, New 

Hampshire; and Hartford, Connecticut. 

Shortly after New Haven received its EZ designation in 1999, Empower New Haven’s 

neighborhood committees began to consider obstacles to EZ residents in getting transportation to work. After researching a 

number of programs, Empower New Haven, 

which administers the EZ, contacted the 

Good News Garage program, impressed by 

its demonstrated past success. 

Car owners donate used vehicles to Good 

News Garage and receive a tax credit based 

on the blue book value of the vehicle. The 

garage then evaluates whether the vehicle 

can be made operational for less than 

$1,000. Good News Garage also subcontracts with mechanics and test drives the 

cars. 

The cars must pass safety and emissions 

inspections and successful applicants must 

have good driving records, be employed, 

and be earning enough to maintain a car. 

In April 2004, at the 30th Annual 

Community Development Block Grant 

Recognition Day, Empower New Haven 

received a peer excellence award on behalf 

of the city of New Haven and the Good 

News Garage. The Connecticut Community 

Development Association and the city of 

Hartford cosponsored this event. The award 

recognized the EZ’s outstanding service in 

the field of community development. 

The EZ hopes to be able to fund an extension of the program. 

For more information on the programs of 

the New Haven EZ, please contact Althea 

Marshall of the EZ at (203) 776–2777. 

SECTION 3 

Environmental Training 

To Provide Jobs, 

Redevelopment 

Opportunities 

Oklahoma City, Oklahoma, EZ 

In an effort to reclaim contaminated land 

within the Oklahoma City, Oklahoma EZ’s 

borders, the city’s office of workforce 

development will use an EPA Brownfields 

Job-Training Grant to prepare 110 EZ residents for careers in environmental remediation. The restoration of brownfields not only 

removes community eyesores, it also opens 

up opportunities for economic development. 

The EPA defines brownfields as “real property, the expansion, redevelopment, or reuse 

of which may be complicated by the presence or potential presence of a hazardous 

substance, pollutant, or contaminant.” 

To become certified each trainee will receive 

40 hours of instruction in both hazardous 

waste operations and emergency response 

and hazardous materials training (HAZMAT). 

An additional 16 hours of clandestine 

methamphetamine laboratory cleanup and 8 

hours of confined space training are included 

in the program. 

Potential trainees must be in good health, like 

to work outside, and be willing to work on an 

on-call basis. Many of the EZ residents accepted into the program can anticipate additional 

income as potential wages in the environmental remediation field are generally higher than 

average wages in Oklahoma. 

“This is an excellent opportunity for training, 

at no cost to the students, that can contribute to our community by cleaning up our 

environment,” says Oklahoma City Councilwoman Willa Johnson, who represents part 

of the EZ. “This program will add to the economic development of our city through a 

well-trained available workforce,” she says. 

Job Creation,Training, and Assistance 103 
SECTION 3


Councilwoman Ann Simank, whose district 

includes a part of the EZ, concurs, “Our city 

has become a vibrant jewel, and many other 

cities are looking to Oklahoma City for guidance. This training program will significantly 

impact the well-being of our citizens whose 

goal is self-sufficiency.” 

For more information on the programs of the 

Oklahoma City EZ, contact Russell Claus at 

(405) 297–1628. 

One-Stop Job and 

Education Centers Help 

EZ Residents Gain 

Diplomas 

Santa Ana, California, EZ 

As he walked the streets of Santa Ana, 

California’s EZ, looking for work, Orlando 

Roman feared he would find himself in 

another dead end job. But a chance meeting 

with a member of the Orange County 

Conservation Corps put Roman on a new 

path, one that included a college degree. 

After learning that he could work for the 

Orange County Conservation Corps for minimum wage plus receive transportation, job 

training, and a high school diploma, Roman 

was ready to give it a try. In August 2003 the 

24-year-old Mexican immigrant used his 

enhanced English skills to deliver a speech 

to his fellow graduates. A college scholarship 

awaited him. 

The Santa Ana EZ has established several 

goals, chief among them finding sustainable 

jobs for 5,000 residents by 2009 and applying for grants for training and education. The 

Conservation Corps is one of 10 groups 

assisting with this endeavor. Judy Chen-Lee, 

director of the Santa Ana WORK Center, said 

case managers at the 10 neighborhood sites 

will tailor training to each individual. “We are 

looking at the person’s overall need,” she 

said. “Our hope is that we will not only help 

get jobs but make sure they can advance.” 

The Conservation Corps, a nonprofit organization serving people ages 18 to 26, offers 

help with everything from writing a résumé 

to learning English to dressing for work. The 

group offers one-stop shopping. “Everything 

is here,” said Roman. 

Having dropped out of high school to support his family, Roman tried night school. 

But his work schedule and reliance on public 

transportation made it difficult to get to class. 

Roman’s Corps schedule includes time for 

work and school. A van picks him up at 6:45 

a.m. and takes him to his job site. In the

afternoon he returns to the Corps office for 

class until 4:15 p.m. Fridays are devoted to 

studies, including public speaking and computer skills. 

Roman turned down a $12-an-hour construction job in favor of his $8.75 Corps job 

because it allowed him greater flexibility in 

starting college. “He understands the importance of education and lining himself up with 

a good job,” said Gaby Gonzalez, director of 

Conservation Corps member development. 

In late summer 2003, 800 EZ residents 

began receiving free personalized jobplacement assistance. The zone planned to 

spend $1 million for the year to offer the 

program to adults eligible to work. 

For more information on the programs of the 

Santa Ana EZ, contact EZ Director Deborah 

Sanchez at (714) 647–6548. 

104 Spotlight on Results 
Nojaim Brothers Market 

Helps Local Youth Learn 

Job Skills 

Syracuse, New York, EZ 

Having started with 10 neighborhood youth, 

this private-sector job-training program now 

operates year-round and serves 28 young 

people in the Syracuse, New York, EZ. 

Utilizing Work Opportunity Tax Credits 

(WOTCs), Nojaim Brothers Market has created 

a youth workforce development program 

that exemplifies how companies can use EZ 

tax credits as real dollars to fund job-training 

initiatives. 

For 85 years the Nojaim Brothers Market has 

been located in the same neighborhood, one 

ranked among the poorest in the city’s 1990 

census. When Paul Nojaim—the third generation to lead the market—took over the family business he was intent on continuing his 

family’s commitment to community. As he 

looked around, Nojaim was struck by the 

number of young people in his community 

being lost to violence and hopelessness. 

Upon learning of the neighborhood’s designation as a New York State Empire Zone (specially designated areas throughout the State 

that offer special incentives to encourage economic and community development) and a 

Federal EZ, Nojaim realized that the tax benefits from the EZ program could create a pool 

of funds to support a training program for 

the market’s young employees. “We wouldn’t 

have had a program without the EmpowerSECTION 3 

ment Zone tax benefits,” he said. Nojaim 

calculated the amount of wage and WOTC 

credits available and then rolled the funds 

back into the business to finance the training 

program. 

The training program includes life skills, 

community service, and job preparedness. 

Young people in the program develop interpersonal communication skills and learn 

personal responsibility. They are held 

accountable for being on time and for performing specific job duties to the best of 

their ability. Money management and profitability—key to success in the business 

world—are stressed. 

Seeking to enhance the youth job-training 

experience, Nojaim Brothers Market invited 

a local media company, Clear Channel 

Entertainment, to introduce program participants to careers in the entertainment 

industry. The youth take career field trips and 

learn about careers in the music and advertising industries and they meet with DJs and 

recording artists. When Clear Channel sponsors events, the young people are invited to 

attend. They learn, however, that nothing is 

free. They might, for example, be asked to 

help set up and break down stages, hang 

banners, stuff envelopes, or clean up after 

events. These activities reinforce what they 

learn in the program. 

For more information on the programs of 

the Syracuse EZ, contact EZ Director Kurt 

Roulston at (315) 448–8062. 

Job Creation,Training, and Assistance 105 
106 Spotlight on Results 

SECTION 3 

assistants. (page 93) 

Columbia-Sumter EZ, teaches marketable skills to 

EZ residents. (page 92) 

provide job skills to EZ adults. (page 93) 

NuBlend Paints has created local job opportunities 

thanks to a Cincinnati EZ grant. (page 91) 

in the Syracuse EZ with 75 million square feet of 

recreation venues. (page 105) 

Job Creation, 

Training, and 

Assistance 

A $300,000 Detroit EZ grant to the Visiting Nurses 

Association helps train 60 local residents as nurse’s 

The Work Initiative Program, funded by the 

A Detroit EZ grant to Operation ABLE helps to 

DestiNY USA will be an 800-acre waterfront resort 

dining, shopping, entertainment, hospitality, and 
107 

SECTION 3 

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) 

funded by the Huntington-Ironton EZ, provides job 

training for local youth. (page 100) 

The Flint RC maintains a partnership with the Mott 

(page 96) 

employment training to EZ residents. (page 95) 

Job Creation, 

Training, and 

Assistance 

Job Creation,Training, and Assistance 

The Cabell County Youth Empowerment program, 

Community College Adult Worker Program. 

An El Paso EZ grant helps Project ARRIBA provide 
Spotlight on Results

SECTION 4


Families Improving


With Community Services


and Development 

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T he Renewal Communities (RCs) 

and Empowerment Zones (EZs) 

need more than business and job 

growth to become healthy communities. This is why a key principle of every 

EZ strategic plan is to promote sustainable 

community development in the designated 

areas. Since 1994 EZ leaders have been providing this sustained development by helping 

to improve education and healthcare services, improve public safety, promote environmental preservation, and provide other 

services. 

The RCs also are committed to holistic 

approaches to local development. The 

course of action, which is a key part of each 

RC’s tax incentive utilization plan, requires 

the RC to promote development efforts 

such as local crime-reduction strategies and 

to facilitate support services for residents in 

such areas as childcare, afterschool care, 

and local transportation and to provide 

other services that help RC residents 

become self-sufficient. 

The annual reports that RCs and EZs submit 

to HUD identify many successes in providing 

vital community services and development 

for local residents and families. These reports 

show that since 1994 the urban EZs have 

conducted 120 crime-prevention and public 

safety programs for more than 350,000 residents, rehabilitated 70 local playgrounds for 

the benefit of 200,000 children, created nearly 250 K–12 school programs to assist almost 

100,000 children and young adults, and performed hundreds of other vital community 

development services for hundreds of thousands more EZ residents. 

The RCs do not receive Federal grants to provide community development services for 

local residents, yet they have been successful 

in providing these services locally. In Chattanooga, Tennessee, for example, the RC and 

the city of Chattanooga created a crimereduction strategy by constructing two police 

precincts in the RC; by receiving a U.S. 

Department of Justice Weed and Seed grant; 

increasing police presence in the RC; and by 

implementing an Officer Next Door program, 

which provides housing assistance to recruit 

police officers as homeowners in the RC. 

In west-central Mississippi, the RC utilized 

funds made available through the Mississippi 

Legislature to the Nissan North America 

project to help construct a new workforce 

development training center and provide jobtraining classes for RC residents. In 2002 the 

city of Milwaukee adopted a zoning ordinance to give limited use to family daycare 

homes. This change allows family daycare 

homes to operate in the RC without board of 

zoning appeals approval as long as they meet 

certain conditions such as specific hours of 

operation. 

This section of the publication showcases the 

successes of RCs and EZs in providing important community development services for 

local residents and families. We know that 

you will enjoy reading these successes and 

we hope that your community can emulate 

some of these successes. If you would like 

additional information on any of the stories 

in this section, call the RC or EZ directly using 

the contact information that appears at the 

end of every story. 

Community Services 111 
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Community 

Services and 

Development 

New York RC Takes to 

Airwaves 

Buffalo-Lackawanna, New 

York, RC 

“On the day of the taping, we arrived at 

the studio only to learn the host had been 

called to jury duty,” recalled Bonnie Kane 

Lockwood, coordinator for the BuffaloLackawanna RC. “No host, no show— 

unless one of us was willing to take over 

as interviewer.” 

Reminding herself that the RC is about “marketing the opportunity,” Lockwood seized 

the opportunity to host the half-hour talk 

show herself, posing questions to the scheduled guests: a local IRS representative and 

the New York State Department of Labor 

director. Lockwood’s planned one-time TV 

appearance on government access Channel 

22 has now become a regular show that is 

taped monthly and runs twice a week. The 

show, “Buffalo-Lackawanna Renewal 

Community Presents,” features tax and labor 

experts, representatives from businesses 

eligible for RC tax incentives, activists with 

community-based organizations, and other 

guests. 

“We have discussed everything from Weed 

and Seed programs to new daycare centers 

and renovated buildings in the downtown 

core,” comments Lockwood. “We even featured a HUD representative who discussed 

Federal programs and support available from 

the local office. There is no shortage of 

potential panelists and information available.” 

The show is produced at no charge at the 

Apollo Media Center, a former abandoned 

movie house located on Jefferson Avenue in 

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 

community-based telecommunications facility with a small business outreach center 

staffed by the Buffalo Economic Renaissance 

Corporation. Buffalo-Lackawanna RC staff 

held a tax incentives workshop for local businesses at the facility in March 2004. 

“The Apollo Media Center is a community 

asset in an eligible census tract,” Lockwood 

commented. “It certainly adds to the sense 

of connection and partnership we are building to be able to use it to promote what is 

happening and what is needed in the 

Buffalo-Lackawanna Renewal Community.” 

Lockwood added, “We are always looking 

to increase our ratings, so if you are ever in 

town, turn on Channel 22 and you just 

might catch the next episode of “BuffaloLackawanna Renewal Community Presents!” 

For more information on the programs 

of the Buffalo-Lackawanna RC, please call 

Lorrie Abounader at (716) 842–6923. 

“Invest in Camden Day” 

Develops Business 

Community Following 

Camden, New Jersey, RC 

“If we had held ‘Invest in Camden Day’ 2 

years ago, we could have held it in a phone 

booth,” says former New Jersey Governor 

James E. McGreevey. “Today each of you is 

part of a standing-room-only crowd of developers, 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 
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with more than $1.2 billion in new development having been pledged or underway in 

the Camden RC. 

“For the past 2 years we have been laying 

the foundations to build a better New Jersey. 

There is no better place to see what our successes mean than right here in Camden,” 

McGreevey told some 500 attendees during 

the “Invest in Camden Day” conference held 

at the city’s Tweeter Center in January 2004. 

Sponsored by the Economic Recovery Board 

for Camden, the New Jersey Economic 

Development Authority, the Chamber of 

Commerce of Southern New Jersey, and the 

Camden Redevelopment Agency, the conference was designed to help developers, 

lenders, business owners, and nonprofit organizations explore the many ways to invest in 

Camden. Attendees heard how the Camden 

city government was revamped to aid redevelopment efforts and learned about RC tax 

incentives and other resources available to 

support and leverage private investment. 

The centerpiece of Camden’s renewal is the 

State’s commitment of $175 million to attract 

private investment, create jobs, and energize 

the city’s economy. That initiative generated 

$135 million in private investments that will 

bring new offices, restaurants, and retail to 

the waterfront. “They will be joining a solid 

list of corporate neighbors who have been 

part of Camden’s history and will be part of 

Camden’s future. Companies like L-3, a legacy GE company with a long-time presence 

on Camden’s waterfront, and Campbell 

Soup, which has been investing in this great 

city since 1869,” said McGreevey. “And that’s 

just the beginning. Drawn by this new sense 

of purpose, other employers are moving into 

the city of their own accord.” 

Recent milestones in Camden’s RC include a 

December 2003 announcement that Cherokee 

Camden planned to invest $1 billion to create 

a 450-acre mixed-use community in the city’s 

Cramer Hill section, with retail space, a golf 

course, and 5,000 new homes, including 

affordable housing. The new retailers will be 

eligible for such Camden RC tax incentives as 

the RC wage credits, $12 million in Commercial Revitalization Deduction allocations, 

Increased IRS Section 179 Deductions, and 

zero-percent capital gains provisions on the 

sale of RC assets. “Camden is exceeding all 

our expectations and providing a model for 

urban redevelopment that we can reproduce 

throughout the State,” McGreevey said. 

For more information on the programs of the 

Camden RC, contact Darrell Staton of the 

RC at (856) 365–9061. 

Chattanooga Experience 

Puts RC on Fast Track 

to Development 

Chattanooga, Tennessee, RC 

Fueled by broad citizen participation, a citywide vision, and aggressive leadership, “The 

Chattanooga Experience” has been heralded 

as one of the best public-private partnerships. 

Since 2002 the Chattanooga, Tennessee, RC 

has been a key component in the city’s 

renaissance. 

Visioning and planning for the city’s revival 

began in the early 1980s with a plan that 

focused on development of the underutilized 

riverfront. Leading the city’s recent downtown development efforts is the $120 million 

21st Century Plan, which includes expansion 

Community Services 113 
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of the Tennessee Aquarium and redevelopment of the north and south shores of the 

Tennessee River, among other things. Of 

the funds, $69 million came from the public sector (80 percent from a hotel-motel 

tax paid by visitors to the city) and $51 

million from the private sector. 

Where the 21st Century Plan ends, the RC 

begins. Since its inception, the RC program 

has awarded $24 million in Commercial 

Revitalization Deduction (CRD) allocations 

to developers of 17 construction and rehab 

projects, with a 5-year projected return on 

investment of 600 new jobs and more than 

$112 million in building costs and employee 

wages. 

“Through the Renewal Community program, 

Chattanooga has been able to put in place 

tools that are resulting in new investment in 

our city’s core and creating jobs for our citizens,” says Mayor Bob Corker. In addition, 

Corker created The Enterprise Center, which 

oversees 14 federally funded programs 

(including the RC) aimed at technology and 

business development and job growth. 

In the central business district, business 

owners are participating in a Main Streetinspired revival of downtown. Eight building 

projects—ranging from construction of a 

hotel to renovation of a historic theater— 

have received CRD allocations. 

“It certainly allowed me to pursue a bigger 

project than I otherwise would have been 

able to do,” says Morgan Adams, an attorney who is renovating a former liquor store 

and boarding house into law offices, apartments, and retail development. “There’s no 

question in my mind that the development 

of my building, which is in a rundown row, 

will make all the other projects on the block 

viable,” he says. 

In the Martin Luther King community there 

has been a major expansion of the University 

of Tennessee at Chattanooga, a $28 million 

investment in 100 new and renovated housing units, creation of a mile-long greenway, 

and a planned $100 million investment in 

commercial development. 

In the Southside, construction of a new elementary school, renovation of a high 

school, new housing developments, and 

redevelopment of a major brownfield site 

have spurred commercial growth. Seven 

projects received CRD allocations. 

“The RC incentive made the price and the 

project worthwhile,” says John Clark, one of 

four developers that renovated a 1924 former bread factory, turning it into residential 

and commercial lofts. In addition to the 

CRD, owners took advantage of the PILOT 

(Payment in Lieu of Taxes) program, which 

allows developers of new housing in the 

downtown area to lock in on property taxes 

for 12 years. 

In Alton Park demolition of one of the 

largest public housing complexes is making 

way for a $35 million HOPE VI development. Some 400 new single-family and 

multifamily homes and an adjacent First Tee 

golf course are fueling commercial development here. The city-initiated brownfields 

program seeks Federal support for reclaiming these hazardous sites for future commercial development. A CRD allocation was 

recently awarded for the development of 

warehouses on land adjacent to brownfields. 

“Chattanooga has been very successful in 

using whatever Federal resources were available to leverage private investment,” said 

City Councilman Ron Littlefield. “Anytime 

you restore health to a part of your community, it has a positive effect elsewhere.” 

For more information on the programs of 

the Chattanooga RC, contact RC Manager 

Maria Noel at (423) 425–3770. 

114 Spotlight on Results 
Neighborhood Rallies 

To Create Health and 

Education Center 

Chicago, Illinois, EZ 

The Austin Wellness and Educational Center 

owes its existence to the surrounding community. From groundbreaking to ribboncutting, local residents helped shape nearly 

every aspect of this new facility in the 

Chicago EZ. 

With a $2.5 million EZ grant, Westside 

Health Authority set out to construct a new 

healthcare facility in the Austin community, 

a traditionally underserved area on the west 

side of Chicago. From the outset, the community was involved. Area residents raised 

$60,000 for the center through grassroots 

fundraising events such as Friday night fish 

fries and a gospel fest. Most impressively, 

more than half of the participating contractors were neighborhood residents. 

African-American contractors comprised 

55 percent of the total, and 33 percent of 

those contractors were from the neighborhood. For many contractors, the center’s 

development was their first commercial 

project. The project timeline was extended 

to provide technical assistance, support, 

and training to the less-experienced contractors. The result was that 27 local residents were hired into various union trades 

and 11 residents from Westside Health 

Authority’s ex-offender employment project 

were hired as union apprentices. 

The two-story 28,500-square-foot Austin 

Wellness and Educational Center houses a 

clinic that provides a range of primary healthcare services, including pediatrics, family and 

internal medicine, and an urgent-care center. 

The center operates a 16-station kidney dialysis center for patients, many of whom used 

to travel to a nearby suburban hospital for 

treatment. When fully operational, the center 

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will have added some 200 new jobs to the 

community. 

For more information on the programs of 

the Chicago EZ, contact Managing Deputy 

Director Jarese Wilson at (312) 744–7870. 

Land Development Fund 

Provides Much-Needed Lift 

to Commercial Corridor 

Columbus, Ohio, EZ 

East Main Street is getting a facelift with funds 

from the Columbus, Ohio, EZ Land Development Fund. Projects comprising more than 

47,000 square feet and costing well over $5 

million are designed to spruce up this decaying, major corridor. 

The EZ Land Development Fund is a targeted 

financing pool created to encourage commercial and housing investment and redevelopment projects in the 14-square-mile 

Columbus EZ. The Columbus Compact 

Corporation, which administers the 

Columbus EZ program, established the fund. 

This financing pool provides gap financing— 

dollars that reduce project risk and attract 

other hard dollars—in order to increase a 

project’s viability. The fund is flexible enough 

to accommodate grants to nonprofit organizations and loans and/or equity investments 

to nonprofit and for-profit entities. It seeks to 

fund those projects with positive community 

impacts such as redevelopment of idle land; 

creation of jobs; creation of new business 

activity and services; improvements in the 

urban streetscape that encourage business 

redevelopment, pedestrian traffic, and neighborhood vitality; and improvement in the 

quantity and/or quality of housing stock. 

With $400,000 from the EZ Land Fund 

Development Fund, the Central Community 

House was able to break ground in March 

Community Services 115 
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2004. When complete, this 15,000-squarefoot, $2.6 million facility will house a daycare 

center, community meeting space, and 

Central Community House offices. The 

organization will be able to consolidate several area facilities into this one building at 

1162 East Main Street, adjacent to the new 

East Central Family Health Center. There will 

be enough space for Central Community 

House to expand its afterschool programming 

and provide increased support, resources, 

and services to parents. The facility will assist 

the organization with its mission—helping 

people reach their full potential, become 

self-supporting, and live cooperatively with 

others. 

The EZ Land Development Fund provided 

site assembly and land banking for the new 

Salvation Army facility at 966 East Main 

Street. Situated on 1.2 acres of vacant land, 

this 20,000-square-foot building will serve as 

the organization’s headquarters. It will 

include a worship center, space for the delivery of social services, and features such as a 

kitchen pantry. Groundbreaking was held in 

late spring 2004. 

Before the June 2004 groundbreaking of this 

new transit center, the EZ Land Development 

Fund handled site assembly and predevelopment activities, such as site demolition. The 

Near East Transit Center will feature 12,000 

square feet of retail and office space. With 

40 to 50 employees, the center will house a 

Central Ohio Transit Authority (COTA) customer service department, a medical facility, 

and a financial institution. Bus stops will be 

located in front of the center on both 

Champion Avenue and East Main Street. A 

financial partnership between the Columbus 

EZ, the city of Columbus, COTA, the Ohio 

Department of Transportation, and others 

generated $2.7 million for this project. 

For more information on the programs of 

the Columbus EZ, contact CEO and President Jonathan Beard, Columbus Compact 

Corporation, at (614) 251–0926. 

Clinica Doctora Elena 

Mixes Medicine With 

Love in Detroit EZ 

Detroit, Michigan, EZ 

When Elena Perry-Thornton came to the 

United States from Panama in 1981, she 

dreamed of providing affordable quality 

healthcare to people in need. Today, PerryThornton operates Clinica Doctora Elena at 

725 Junction Street in the heart of the 

Detroit, Michigan, EZ. Roughly 90 percent 

of her patients are Hispanic and many speak 

only Spanish. “I got into the medical field so 

that I could help people. That’s what drives 

me,” said Perry-Thornton, who is affectionately called Dr. Elena by the 1,800 families 

that visit her clinic. 

Perry-Thornton’s vision, determination, and 

personal savings carried her far. But $88,000 

and valuable business counseling from two 

EZ programs—One-Stop Capital Shop and 

Detroit Community Loan Fund, run through 

Shorebank—were instrumental in helping 

her realize her dream. The result has been 

the transformation of a homely storefront, 

ravaged by years of vandalism and neglect, 

into an attractive, state-of-the-art medical 

facility. 

Shortly after opening, Perry-Thornton and 

her staff began identifying ways in which the 

clinic could better serve the community. 

They started several education and support 

groups for diabetics, pregnant women, and 

people with weight problems. They adjusted 

clinic hours to accommodate patients in the 

116 Spotlight on Results 
evenings. The clinic is open from 5 to 10 

p.m., Monday through Friday, and from 9 

a.m. to 2 p.m. on Saturdays. Perry-Thornton 

also has a Web site, www.clinicadraelena. 

com, where visitors and patients can obtain 

information in both English and Spanish. 

“There is a real big need for accessibility and 

for doctors who speak Spanish in this community,” says clinic office manager Carolina 

Bernal-Gutierrez. “People can come after 

work, they can take their children without 

having to keep them out of school, and 

we’re in the neighborhood, so there is no 

transportation problem.” 

As a result of her work, then-Michigan 

Governor John Engler awarded PerryThornton the 2001 Governor’s Award of 

Excellence for improving preventive care in 

the ambulatory care setting. “While Dr. Elena 

put up a lot of her own money to rebuild the 

clinic facility and get the place off the 

ground, she needed nontraditional funding 

for supplies, equipment, and other essentials,” says Van Adams, EZ Development 

Corporation program manager. “We were 

more than glad to help since no one else is 

doing this kind of work in this neighborhood. 

We are delighted that the team we put 

together made this venture work,” he adds. 

For more information on the programs of 

the Detroit EZ, contact Executive Director 

Larry Givens at (313) 872–8050. 

Empowerment Zone 

Youth Jump to It 

Detroit, Michigan, EZ 

Detroit’s dubious distinction—being voted 

the fattest city in the country by Men’s 

Fitness magazine—may have stopped some 

Detroiters in their tracks. But an energetic 

group of young students at four Detroit elementary schools, two community centers, 

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and a local church are not taking the news 

sitting down. 

You might say these kids have “jumped to 

it,” by participating in the Detroit EZ Healthy 

& Smart signature program—Team Jump 

Rope. This program is a Mo’ Better Health, 

Inc., offering 130 EZ youth with constructive 

and healthy afterschool activities and weekend workshops. A $47,000 EZ Innovation 

Fund grant has helped make Team Jump 

Rope possible. 

“Team Jump Rope is a new approach to lowering the number of inactive youth in our 

community, while exposing them to a fun 

way to get in shape,” says Velonda 

Thompson, Mo’ Better Health executive 

director. 

The teams meet two to four times weekly 

to train youth in skills for competitive rope 

jumping. It’s healthy, fun, promotes teamwork, friendships, and participants stay fit, 

says Thompson. 

Hunter Hicks, a 9-year-old student at 

Jameison Elementary, participates because 

she just “likes it. My specialty is speed,” says 

Hunter. “I’ve won awards—two first place 

and one second.” 

Her grandmother, Loretta Binion, is very 

proud of Hunter’s work with Team Jump 

Rope and with the As on her report card. 

“Hunter always liked sports,” said Binion, 

“but she often would shy away from them. 

She has the sickle cell trait and used to have 

pains in her legs. The rope jumping has been 

good for her. After she started with the team, 

the pain disappeared.” 

In 2003, 10 Team Jump Rope participants 

qualified as Michigan State Champions and 

were honored at a Jump Rope for Heart activity. They were among some 40 Detroit-area 

youth whose enthusiastic energy and skills 

earned them more than $500. The funds 

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were donated to the American Heart 

Association. 

For more information about the Team Jump 

Rope program, contact Mo’ Better Health 

Executive Director Velonda Thompson at 

(313) 571–7600 or visit the Mo’ Better 

Health Web site at www.comnet.org/ 

mbhinc. For more information on the programs of the Detroit EZ, contact Executive 

Director Larry Givens at (313) 872–8050. 

EZ-Funded Soccer 

Program Inspires 

Detroit Youth 

Detroit, Michigan, EZ 

Since 1997, when THINK DETROIT began 

offering soccer to children in the EZ, it had 

been unable to sustain a league specifically 

for girls. With the help of a $47,000 EZ 

Innovation Fund grant, this nonprofit sports 

and technology organization now brings the 

world’s most popular sport to 650 girls 

each year. 

Patricia Frayre is one of the league’s many 

success stories. Despite being diagnosed with 

kidney stones in late 2002, Frayre, a 15-yearold Western High School student, was a forward and leading scorer on Western’s squad. 

The following June, after a 2-day tryout with 

THINK DETROIT, Frayre joined 18 other 

members of the Under-18 Detroit Turbo 

team, an elite travel squad for players with 

advanced skills. 

THINK DETROIT gives EZ youth the opportunity to participate in afterschool sports 

leagues and computer classes. Its first summer baseball season included 120 children. 

Today THINK DETROIT serves more than 

4,000 girls and boys annually in baseball, 

softball, soccer, and basketball. Nearly 1,000 

children take part in leadership development 

and computer training courses. By using 

sports and technology to build character 

in youth, THINK DETROIT aims to provide 

equal opportunities for boys and girls; foster 

a positive family environment; provide safe, 

clean fields and facilities; and pay consistent 

attention to detail. 

The THINK DETROIT youth soccer league, 

which began with 25 children, had managed 

successful growth but had not been capable 

of creating a separate girls league until June 

2002 when it received the EZ grant to establish a program for females ages 7 to 18. The 

group’s recreation league now includes allgirl soccer teams in four divisions: Under-8, 

Under-10, Under-12, and Under-14. 

The nonprofit also works closely with the 

Detroit Public Schools to offer girls soccer at 

five high schools. In summer 2003 THINK 

DETROIT held tryouts for two select teams of 

girls in the Under-18 and Under-15 divisions. 

These teams travel to nearby communities and 

compete at a higher level. As team members, 

the girls learn to be on time for games and 

practices, work together, and compete with 

class and dignity. Thanks to the EZ Innovation 

Fund, THINK DETROIT is looking forward to 

having its first girl receive a soccer scholarship 

to college. 

For more information about THINK 

DETROIT’s athletic programs, contact 

Frederick Hunter, athletic director, at 

(313) 833–1600. For more information 

on the programs of the Detroit EZ, please 

contact Executive Director Larry Givens at 

(313) 872–8050. 

Massachusetts RCs 

Partner To Leverage 

Resources Development 

Lowell, Massachusetts, RC 

If two heads are better than one, can the 

same be said about RCs? In the case of the 

118 Spotlight on Results 
Lowell and Lawrence, Massachusetts, RCs the 

answer is a resounding yes. 

Lowell and Lawrence, located in the 

Merrimack Valley, share a common history, 

economic and human service challenges, 

business and industry councils, and political 

representation. In 2002 the two RCs combined resources to improve their probabilities of success and achieve economies of 

scale. “Bringing the two communities 

together brought more exposure to the 

programs and helped us get the word out 

more effectively,” says Colin McNiece, former director of economic development for 

the city of Lowell. 

The first phase of the strategic plan for this 

dual-RC alliance included developing a tax 

incentive utilization plan to serve the diverse 

needs of residents, businesses, and area 

stakeholders. The RCs engaged the residents 

of the entire Merrimack Valley in the 

process. They also designed a survey to 

solicit the opinions of local businesses 

regarding their RC designations and the 

accompanying Federal tax incentives. 

A product of the RCs’ Future Trends advisory 

committee was the filing of congressional Bill 

HR 4096 IH: Renewal Communities Expansion 

and Technical Improvements Act of 2004. The 

bill would amend the Internal Revenue Code 

of 1986 to expand the incentives that RCs can 

offer. Future Trends includes representatives 

from the Office of the Chancellor, University of 

Massachusetts, Lowell; Regional Development 

and Commercial Venture Development; the 

Massachusetts Office of Business 

Development; the Lowell Small Business 

Assistance Center; and the Office of 

Congressman Martin T. Meehan. 

Phase two of the RCs’ strategic plan will 

include: 

●	 Designing a workforce development component to match RC residents with new 

training and employment opportunities. 

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●	 Developing a training curriculum on RC 

tax incentives, effective business development techniques, and methods to foster 

coordination among business programs to 

maximize their impact in the RC. 

●	 Implementing two, daylong training sessions for economic development and 

workforce development staff, relevant 

human service and training providers, and 

community-based agencies. 

●	 Designing and implementing mechanisms 

to coordinate business and workforce 

development efforts. 

●	 Developing three case studies for the 

service-delivery system and the delivery 

of customized business development 

incentives. 

“The RC incentives put a number of new 

tools in our toolbox and this next phase will 

make sure that we, and our partners, will 

know how to use them,” said McNiece. 

For more information on the programs of the 

Lowell RC, contact Director of Economic 

Development Brian Conners at (978) 

970–4276. 

New Business Incubator 

To Provide Culturally 

Specific Childcare 

Minneapolis, Minnesota, EZ 

For new immigrants, finding affordable, culturally specific childcare is a major challenge. 

This is particularly evident in the Phillips 

neighborhood in south Minneapolis, 

Minnesota, where the immigrant population 

has soared. With the help of nearly $1.4 million from the Minneapolis EZ, the local YWCA 

has developed a multicultural childcare busiCommunity Services 119 
SECTION 4 

ness incubator to serve this ethnically diverse 

neighborhood. 

Data from Census 2000 show that the population of the Phillips neighborhood grew by 15 

percent during the 1990s. Dig deeper into the 

figures and one finds a sea change in the 

neighborhood’s ethnic composition. The overall increase in residents occurred despite a 19­

percent drop in the European-American 

population and a 45-percent decline in the 

Native American population. At the same time, 

the number of Latinos living in Phillips rose by 

558 percent, and the combined numbers of 

people of other races, including East Africans, 

Somalis, and Asians, residing in the neighborhood grew by 852 percent. 

“These census figures—in addition to a 1998 

survey of parents in south Minneapolis conducted by the South Side Child Care 

Collaborative—demonstrated the need for 

more childcare to serve our growing immigrant population,” says Nancy Hite, CEO of 

the Minneapolis YWCA, an organization that 

was then providing multicultural childcare in 

three area locations. 

In 1998 the YWCA received a $778,500 

grant from the Minneapolis EZ to establish a 

multicultural childcare business incubator in 

the proposed Great Lake Commercial Center 

(the former Sears complex along Lake 

Street). When the development plan fell 

through in 2001, the YWCA turned to 

Abbott Northwestern Hospital in the Phillips 

neighborhood, which was looking for an 

onsite childcare center for its employees. The 

two combined efforts and Abbott 

Northwestern agreed to provide free space 

for the childcare incubator serving up to 

117 EZ children. 

In 2001 the Minneapolis EZ awarded an 

additional $211,500 to the incubator project, provided the partnership could match 

the combined $1 million in EZ funds. After 

raising more than $1 million from the private 

sector, including $750,000 from Abbott 

120 Spotlight on Results 

Northwestern, the partnership approached 

the Minneapolis EZ Governance Board asking 

it to provide the last $379,000 needed to 

move development of this $3.5 million facility forward. In March 2004 the board agreed. 

“This program could have never been possible without the initial investment made by 

the Minneapolis Empowerment Zone,” Hite 

said. “The EZ grants demonstrated great 

foresight, and we were able to leverage the 

EZ contribution to match their $1 million. 

The EZ’s ongoing support means we can 

proceed with our plans and have this program in operation before the end of 2004,” 

she adds. 

The YWCA Child Care Business Development 

Center will assist in developing childcare 

businesses by providing access to highquality childcare space at no initial cost. 

The organization also brings to the table its 

expertise in the successful operation of childcare businesses in south Minneapolis, an 

understanding of resources for training and 

support available in the area, and a commitment to the development of childcare that 

respects children, cultures, and caregivers. 

For more information on the programs of 

the Minneapolis EZ, contact Director 

Jonathan Palmer at (612) 673–5016. 

EZ Funding Helps 

Programs Bring Students 

Back to School 

Minneapolis, Minnesota, EZ 

Convincing teens and teen parents to pursue 

a high school diploma is a challenge, but 

one to which the Minneapolis, Minnesota, 

EZ is committed. Two recent EZ grants totaling $350,000 have substantially increased 

the number of local teenagers looking forward to graduation day. 
More than 100 students have enrolled in the 

Broadway Teen Parent Program in north 

Minneapolis, which began in January 2003. 

“We knew there were many teen parents 

who had dropped out of school and we 

needed this program to reach out and bring 

them back in,” says Mary Pat Sigurdson, a 

teen-parent specialist for the Minneapolis 

Public Schools. “The school district didn’t 

have the money. A 2-year grant of $175,000 

from the Minneapolis Empowerment Zone 

was the first funding we received, and it 

helped us attract more than $940,000 in 

additional funding.” 

For teen parents like Jennifer Vargas, Kristal 

Fineday, Amanda Stroud, and Rachel 

Nitschke, the Broadway Teen Parent Program 

has not only helped them earn a diploma, it 

also has enhanced their life skills, introduced 

them to the business world, and provided a 

choice of internships at 15 sites. 

“I never had a job before,” Vargas says, “and 

this program helped me learn how to create a 

budget for the living expenses I need to support my kids. I enjoyed computer training and 

learning how to provide good customer service.” Following a successful internship, she took 

a part-time job with Sun Country Airlines. 

“I was not much of a ‘people person,’ but I 

learned how to keep a good attitude at work 

and to build relationships,” Stroud says of her 

internship at the North Community YMCA. In 

2003 she graduated with a high school diploma and now has a paid position at the YMCA. 

“I was able to get my own apartment and can 

now manage my bills,” Stroud says. 

Another $175,000 grant, this one to the 

Plymouth Christian Youth Center’s Capri 

Alternative High School and Neighborhood 

Center on West Broadway in North Minneapolis, will help renovate the organization’s 

facilities. Under a contract with the Minneapolis Public Schools, the Capri school 

works with junior- and senior-high youth 

who have been unsuccessful elsewhere. The 

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school’s positive climate allows students to 

improve their ability to read, write, and 

listen—skills that not only help them earn 

their diplomas, but prepare them to be successful at other educational institutions, in 

their jobs, and in personal relationships. 

“This new building lets young people see 

that education is valued. It makes a difference 

in their behavior and attendance,” says 

Chrislee Jacobs, a teacher at the school. 

For more information on the programs of the 

Minneapolis EZ, contact Director Jonathan 

Palmer at (612) 673–5016. 

New Jersey Renewal 

Community Applies 

Holistic Approach to 

Development 

Newark, New Jersey, RC 

The city of Newark approaches urban renewal 

as a complex web of needs and resources. By 

being attentive to the specific goals of residents, business owners, and the local government, they can better match up the many 

public and private partners and resources 

needed for successful urban renewal. This holistic approach seeks to balance and harmonize 

the interests of the commercial districts and 

those of neighborhoods alike, emphasizing 

business opportunities and strategies that 

employ Newark residents, create profit for 

investors, increase municipal revenues, and 

enhance overall development throughout 

the city. 

Newark was designated a HUD RC in January 

2002 and, according to Richard A. Monteilh, 

Newark’s business administrator, “The RC tax 

incentive package has had a very positive 

impact on the city’s economic development 

strategies. Companies that are doing business 

with the city or are looking to do business 

Community Services 121 
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with Newark are very excited about the RC 

program and its benefits.” 

The city has been working hard since 

2002 to promote RC benefits and so far 

the approach seems to be effective. In 

2004 a new shopping center and a new 

subsidized low- and moderate-income 

housing development were opened on a 

major neighborhood commercial corridor. 

Another retail complex, anchored by 

Home Depot and with an additional 

30,000 square feet of retail space, is being 

built with the help of Federal and State 

grant money for planning, acquisition, 

and site remediation. The Home Depot 

project will bring approximately 200 new 

jobs to the area. A new state-of-the-art 

regional call center for MBNA will employ 

an additional 1,500 people from the RC 

and surrounding communities. 

In another area is a 100+ acre redevelopment area that stitches together the James 

Street Historic District and its surrounding 

neighborhoods into a vibrant downtown 

community. This project includes 6,000 

housing units and nearly 2 million square 

feet of office/retail space. Also located 

downtown are two historically significant 

buildings—a department store and adjacent 

office building—which are being adapted 

into luxury loft rental apartments with 

100,000 square feet of ground floor retail 

space. Another large historic preservation/ 

adaptation project is the conversion of a historic downtown office building into luxury 

apartments with a health club, business 

center, lounge, and bowling alley. 

For more information on the programs of the 

Newark RC, please contact RC Coordinator 

Angela Corbo at (973) 733–4331. 

Citizens’ Television 

Promotes Successes 

in Connecticut EZ 

New Haven, Connecticut, EZ 

Simply put, Empowered Voices is a weekly celebration of accomplishments in the New 

Haven, Connecticut EZ. This 1-hour, prerecorded show has been airing each Friday 

evening since March 2003 on a local public 

access channel, Citizens’ Television. Hosted 

by Tom Ficklin, director of marketing and 

communications for Empower New Haven, 

the program reaches a majority of the local 

cable system’s 100,000+ homes. 

“The face of Empower New Haven is that of 

our residents,” says Empower New Haven’s 

acting president and CEO Althea Marshall. 

“It has been a blessing to depict the Empower New Haven family and the real-life 

uplifting drama of the Empower New Haven 

story via this community medium of public 

access broadcast.” 

While saluting the many residents who have 

taken advantage of EZ programs and initiatives, the show presents local vendors and 

community partners as approachable and 

ready to help residents achieve individual or 

family financial independence. Empowered 

Voices showcases EZ residents who have: 

●	 Participated in the Individual Development 

Account Homeownership Program. 

●	 Purchased homes via the Loan to Grant 

Homepower Program. 

●	 Driven cars due to the partnership with 

Lutheran Social Services/Good News 

Garage Program. 

●	 Attended Gateway Community College 

through the Career Ladders Partnership. 

122 Spotlight on Results 
●	 Secured employment due to Empower 

New Haven’s partnership with Support 

and Training Result in Valuable Employees 

(STRIVE). 

●	 Started a business through the business 

power technical assistance initiative. 

●	 Received a job upgrade via the customized 

training initiative. 

Given the variety of initiatives it has underway and audiences it needs to reach, Empower New Haven and Citizens’ Television 

developed a second hour-long program that 

airs on Sunday afternoons. This weekly show 

features press conferences, partner annual 

meetings, EZ resident graduations from partner programs, community forums, and 

Empower New Haven neighborhood celebrations. 

The Sunday broadcast captures events and 

milestones in the community. These events 

have included the mayor of New Haven and 

representatives of the U.S. Congress 

addressing an anti-predatory lending initiative, the earned income tax credit program, 

an emergency home repair program, and 

Federal EZ tax incentives. 

For more information on the programs of the 

New Haven EZ, contact Acting President and 

CEO Althea Marshall, Empower New Haven, 

at (203) 776–2777. 

Bronx EZ Assists 

Performing Arts Theater 

in Heart of Cultural 

Corridor 

New York, New York, EZ 

In an effort to create new jobs, increase 

tourism, and enhance the community’s cultural offerings, the Bronx Overall Economic 

Development Corporation (BOEDC) has 

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provided a $500,000 loan to help expand the 

Pregones Touring Puerto Rican Theater. Under 

the terms of the agreement, the loan may be 

converted to a grant in 2018 if Pregones 

maintains its mission. 

Located at 571 Walton Avenue near 149th 

Street, the 120-seat theater is expected to 

open in June 2005 and will be a welcome 

addition in a neighborhood widely recognized as a burgeoning cultural center. The 

loan from BOEDC, which administers the 

Bronx portion of the New York EZ, will go 

toward the purchase and renovation of an 

adjoining warehouse at 575 Walton Avenue. 

“We’re excited about what this means for the 

overall Bronx economy,” says Bronx Borough 

President Adolfo Carrion, Jr. “Not only will 

the new Pregones Theater put people to 

work, but also its location—situated just 5 

minutes from Manhattan and a block from 

the NYC Transit System—guarantees that 

many visitors of all backgrounds will come to 

experience the rich culture and heritage of 

one of the city’s largest ethnic groups.” 

Under the artistic and administrative direction 

of Rosalba Rolon, Alvan Colon Lespier, and 

Jorge Merced, Pregones Touring Puerto Rican 

Theater has distinguished itself as a specialist in 

the production of Hispanic plays and performances. “This funding marks a major milestone 

in our 15-year history of providing residents 

from across the city and tourists alike with an 

affordable way to access cultural, artistic, and 

educational events,” says Rolon. “The 

$500,000 loan will allow us to expand on 

those offerings to ensure that Pregones continues on its path of providing first-rate performances for everyone to enjoy.” 

For additional information on the programs 

of the New York EZ in the Bronx, contact 

President Rafael Salabarrios, BOEDC, at (718) 

590–6252. 

Community Services 123 
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New York EZ Funds 

National Track & Field 

Hall of Fame 

New York, New York, EZ 

The transformation of an underutilized military installation into a monument to the 

sport of track and field is serving as an economic engine for Washington Heights, 

New York, and its surrounding communities. The Upper Manhattan EZ Corporation 

(UMEZ) Development Corporation, which 

administers the Manhattan portion of the 

New York EZ, helped bring the National 

Track & Field Hall of Fame to Washington 

Heights with a $1.8 million grant. The 

multiuse facility stands as a jewel in the 

center of this diverse, largely Hispanic community. Located in the remodeled Armory 

building, the facility includes a fully functioning community center. 

It took 3 years after USA Track & Field 

awarded the Armory the privilege of housing its Hall of Fame collection—previously 

located in Butler, Indiana—before the facility opened. The Armory is an ideal setting 

for the Hall of Fame because it is already 

the Nation’s most active indoor track and 

field center. Armory Foundation President 

Norbert Sander notes, “Through our function as a track and field center, we’re 

already providing a home for young people 

vying to become champions.” 

The National Track & Field Hall of Fame 

brings the history, politics, physiology, 

health benefits, and technologies of track 

and field to life. From interactive experiences that use technology to measure athletic capabilities and predict potential to 

exhibits honoring such greats as Jesse 

Owens, Jim Ryun, and Jackie Joyner Kersee, 

the Hall of Fame pays tribute to the inclusiveness of the sport. The Hall of Fame 

chronicles the annals of track and field and 

testifies to the many great athletes who 

have competed in the sport’s various 

disciplines. 

Over time, the sports complex stands to 

become internationally recognized as one of 

New York’s most prominent cultural treasures. “This project further reinforces Upper 

Manhattan’s stature as a primary destination 

for richly diverse cultural attractions and 

events,” says Kenneth Knuckles, former CEO 

and president of UMEZ. 

A highlight of the Hall of Fame is a vast glass 

structure on which the names of all 197 

inductees are etched. The displays also feature a rich blend of photos and memorabilia 

that include Mal Whitfield’s Olympic gold 

medal, Steve Prefontaine’s uniform, Wilma 

Rudolph’s singlet, and a painting of the 1936 

Olympic long jump award ceremony honoring Jesse Owens. 

Other highlights include an interactive video 

in the gallery titled “What Makes a 

Champion” that lets visitors interview elite 

athletes and get responses and advice directly from them. Other displays and exhibits 

showcase the rich and dynamic history of 

this great sports discipline. 

For more information on the programs of 

the UMEZ, call Chief Administrative Officer 

Marion Phillips, New York Empowerment 

Zone Corporation at (212) 803–3239. 

Abandoned EZ-Based 

Schools Become 

Community Centers 

Oklahoma City, Oklahoma, EZ 

Once the heart of their neighborhoods, 

two vacant schools are being transformed 

into community hubs that will provide cultural, recreational, and educational opportunities for residents of the Oklahoma City, 

Oklahoma, EZ. For nearly a decade, ever 

124 Spotlight on Results 
since the city received an EC designation, 

the development of multiservice community 

centers has been a top priority. 

In 2003 the city received EPA funds to design 

community reuse plans around three 

Superfund sites within the EZ’s borders. The 

sites, dormant for at least a decade since 

their remediation, are in an area that has 

continued to experience a decline in value 

and services. The EZ established a special 

project steering committee in 2003 to focus 

on this area, which it called the Eastside 

Reinvestment Area. 

Following a series of community meetings 

and design workshops, two abandoned 

school buildings, designated as brownfields, 

joined the list of redevelopment opportunities for the Eastside Reinvestment Area effort. 

Both buildings are located in a predominantly African-American area that has unemployment and poverty rates that are twice 

the national average as well as belowmedian reading and math test scores. 

The Truman School Building, at NE 13th 

Street and Kelham, emerged as the most 

appropriate location for the community center. Its location will allow maximum community access to the social and health services 

provided by the city and State. In addition, 

the center will provide afterschool homework 

clubs, mentoring, job training, and job search 

services. 

The Truman School site is land-rich and the 

first phase of the project includes infill housing 

development to the north and south. The 

Oklahoma City Urban Renewal Authority will 

provide adjacent lots for infill housing development. The Woodworth Foundation is providing $100,000 as startup capital and MetaFund 

will provide more than $250,000 in Phase I 

construction financing. Phase II includes a 

Targeted Brownfields Assessment of the 

Truman School building by the U.S. Army 

Corps of Engineers and acquisition of the 

remaining infill lots from the Urban Renewal 

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Authority. Phase III involves the completion of 

the school building as a community center. 

The Page Woodson School, at NE Sixth and 

High, is a 3-story, 88,000-square-foot building 

with historical significance. Abandoned and 

declared surplus by the Oklahoma City Public 

Schools, the school site housed the first segregated African-American high school from the 

1920s to the 1950s. The site is adjacent to 

infill housing programs by Oklahoma City, 

Oklahoma County, the Urban Renewal 

Authority, the Oklahoma Housing Authority, 

and several area churches. Stakeholders plan to 

reinvest in the site to preserve its cultural significance and transform it to an African-American 

cultural center and museum. 

Preliminary plans involve renovating the 

1,500-seat auditorium for use by the Black 

Liberated Arts Center and Ambassador’s 

Choir, creating a Museum/Archive and 

Research Laboratory for Langston University, 

converting the cafeteria to a soul food 

kitchen, and renovating the Olympic-sized 

swimming pool and gymnasium for community use. The third floor will contain 

extended-stay lodging for use by local arts 

agencies, artists, and residents of the adjacent University of Oklahoma Health Sciences 

Center. 

For more information on the programs of the 

Oklahoma City EZ, contact Russell Clauss at 

(405) 297–1628. 

EZ Focuses on Brownfields 

Economic Development 

Potential 

Oklahoma City, Oklahoma, EZ 

Once home to oil-processing facilities, this 

old industrial corridor in the Oklahoma City, 

Oklahoma, EZ is ripe for change. Location 

and circumstances have combined to make 

the brownfields surrounding Reno Avenue a 

Community Services 125 
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prime target for redevelopment. The corridor 

is strategically close to transportation networks. Not only does it parallel active shortline and major railways, it sits at the junction 

of two major Interstates: I-35, a primary 

NAFTA route and I-40, where travelers and 

truckers rest and refuel. 

When asked by city planners what their vision 

is for investment in this area’s future, residents 

and businesses emphasized the corridor’s geographic and historic prominence. The industrial corridor, noted respondents, is the city’s 

front door and currently makes a poor first 

impression on visitors. With the American 

Indian Cultural Center set to open to the corridor’s south and with the Bricktown entertainment district to the west, Reno Avenue 

will need to accommodate at least 1,500 

additional vehicles per day. Major revitalization efforts are gaining momentum throughout the city as its centennial approaches 

in 2007. 

Respondents pointed out that in addition to 

accommodating and enhancing tourism, the 

corridor could become a jobs center. Full utilization of the area—about 250 acres total— 

could accommodate at least a million 

additional square feet of commercial and 

industrial facilities and support hundreds of 

new jobs in the EZ. 

Given all these influences, change in the 

Reno Avenue corridor is inevitable. 

Oklahoma City plans to make use of the 

EZ’s tax incentives (wage credits, low-cost 

bonds, reduced capital gains, and 

increased deductions, among others) to 

help ensure that the working traditions of 

this important area are integrated with the 

future visions for the entire Oklahoma City 

community. 

For more information on the programs of 

the Oklahoma City EZ, contact Russell Claus 

at (405) 297–1628. 

Order in the Court: Teen 

Legal Program Tries and 

Teaches 

Philadelphia, Pennsylvania/ 

Camden, New Jersey, EZ 

Truancy, lateness, disruption of class, gum 

chewing, disrespect toward staff and 

peers—these are all misdemeanors for 

which youth may be held accountable by 

a jury of their peers. With an initial grant 

of $60,000 from the Philadelphia EZ, Teen 

Court has been handing down verdicts at 

Kensington High School since 2000. 

Teen Court functions as both an alternative 

sanction system for young offenders and a 

civic-responsibility awareness program. Its 

goals are to reduce delinquency and violence 

among youth, encourage positive behavior, 

and help students understand the legal system 

and the values that underlie the laws of society. 

“The Teen Court program is empowering the 

future generation of the EZ by familiarizing 

teenagers with how the justice systems 

works, encouraging their respect for others, 

and providing them with new skills to resolve 

problems,” said Eva Gladstein, executive 

director of the Philadelphia EZ. 

Offenders in grades 10 to 12 are tried and sentenced in a Teen Court by a judge and jury of 

their peers. Assisted by teachers and law students from Temple University, youth volunteers 

play the roles of prosecuting and defense 

attorneys, clerks, bailiffs, and managing board 

members and conduct trials as in real life. 

During the first 2 years, 40 students participated and heard 79 cases ranging from truancy to uniform violations, hall walking, 

profanity, and class disruption. The sentences 

meted out by the jury varied from suspending the offenders from school to forcing 

them to offer written and verbal apologies, 

write essays, and provide community service. 

126 Spotlight on Results 
June 2004 marked the start of Teen Court’s 

fourth year. 

Teen Court capitalizes on the power of peer 

influence and promotes civic commitment 

and youth empowerment. Students who participate in the program have demonstrated a 

depth of knowledge in courtroom procedure 

as well as in solutions to school problems. 

Students use mediation as a tool to curtail 

bad behavior and alter violent patterns while 

exercising their peer leadership roles in 

school. 

The first Teen Court program was implemented almost 15 years ago. Today, there are 

more than 400 such programs operating 

in the United States. 

For more information on the Teen Court program, please call Terrine Datts, program 

monitor, at (215) 686–0467. For more 

information on the programs of the 

Philadelphia EZ, contact Eva Gladstein 

at (215) 686–0457. 

Hospital Turns to RC Tax 

Incentives To Offer 

Employees Childcare 

Southern Alabama, RC 

Because rural Alabama hospitals often struggle 

to make ends meet, funding services outside 

their primary mission—such as childcare for 

employees—may not be possible. Such was 

the case at Georgiana Regional Hospital, a 

facility the Alabama Hospital Association could 

have been describing when it reported that 

rural hospitals, especially those assisting lowincome residents, often “operate in a marginally self-sufficient state.” 

Located in downtown Georgiana on the 

southern fringe of the RC, the hospital serves 

three counties inside and three counties outside the RC’s border. Medical services are 

spread thinly throughout the area as several 

SECTION 4 

counties have neither the population nor 

finances to support a hospital. 

Prior to the area’s RC designation, says 

Hospital Administrator Harry Cole, “We 

wanted to build a daycare center for our 

employees but could not justify it because 

the revenue stream would not support it. 

However, through a combination of Renewal 

Community Federal wage tax credits and the 

accelerated depreciation provisions of the 

Renewal Community program, it is now 

financially feasible for the hospital to proceed 

with the capital investment to build the daycare center.” The daycare center was designed 

to accommodate approximately 30 to 40 

students. 

In 2002 Georgiana Regional Hospital had 

approximately 105 full- and part-time 

employees. About half of them lived in the 

RC. “This resulted in an annual, after-tax 

wage savings of $50,000 to $60,000 annually 

thanks to the Renewal Community program’s 

wage tax credit provisions,” says Cole. The 

hospital is planning an additional capital 

investment. As a result of tax savings from 

several RC tax incentives, Georgiana Hospital 

began construction of the daycare center 

in 2003. 

For more information on the programs of the 

Southern Alabama RC, contact David Barley II 

of the Alabama Department of Economic and 

Community Affairs at (334) 242–5823. 

Tax Incentives Yield Hope 

and Development in Rural 

North Dakota 

Turtle Mountain Band of 

Chippewa, RC 

Like a torch in the night, the tax incentive 

utilization plan (TIUP) developed by the 

Turtle Mountain Band of Chippewa RC has 

been guiding the successful development 

Community Services 127 
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efforts of this community since 2002. The 

TIUP outlines the ways in which the RC will 

utilize both Federal tax incentives and local 

resources to spur economic activity. 

The Turtle Mountain Band of Chippewa RC 

has aggressively implemented its TIUP within 

the designated area. In 2002 the tribe allocated nearly $190,000 in discretionary 

funding to establish an RC center. The Turtle 

Mountain TIUP also has proven to be the 

starting point for a host of development 

initiatives. 

“With the awarding of the RC designation, the 

tribe has been able to extend and market our 

economic development efforts outside of the 

reservation boundaries while further enhancing 

our ability to diversify our economy, create 

new wealth, and produce jobs as well as showcase the efforts and opportunities that the 

TIUP is creating for businesses and community 

betterment,” says Lyman Bercier, CEO of the 

RC center. 

Because many tribes on Indian reservations 

or in Indian Country do not have sufficiently 

developed legal environments for business, 

they are unable to handle large economic 

development efforts. The creation of a new 

corporate governance structure and implementation of a tribal uniform commercial 

code will allow the Turtle Mountain tribe to 

take advantage of the 8-year “window of 

opportunity” that the RC designation presents. The new structure and code were 

developed cooperatively by the tribal government, the RC leadership, and the RC 

center staff. 

The RC designation has sparked other local 

initiatives, including a new 100-acre industrial park for the reservation and the possible 

opening of an aerated concrete company 

that will employ at least 15 tribal members. 

It may even lead to a partnership between 

the tribe and the North West Area Foundation Ventures Program, resulting in aid for 

the comprehensive reduction of poverty over 

10 years. 

Other initiatives designed to advance development in the RC include a land-use planning effort, a moratorium on new tribal 

taxes, a coordinated approach to meeting 

tribal housing demand, and the development of a comprehensive indoor-outdoor 

recreation plan for local youth and families. 

As the Turtle Mountain Chippewa Tribe 

moves toward economic and community 

development and self determination through 

the RC designation, the future looks bright 

for a renewed tribal community in the heart 

of Indian Country in north-central North 

Dakota. 

For more information on the programs of 

the Turtle Mountain Band of Chippewa RC, 

contact Lyman Bercier of the RC at (701) 

477–2688. 

Using Earned Income Tax 

Credits To Stimulate 

Local Economy 

Yonkers, New York, EZ 

In an effort to put more tax dollars back into 

the pockets of businesses and residents, the 

Yonkers, New York, EZ has been offering 

monthly seminars and free tax-preparation 

services. These two programs combined 

have helped to pump nearly $2 million into 

the local economy. 

The 1-hour information sessions, cohosted 

by local banks and businesses, provide a 

technical overview of the simplicity of the EZ 

program. Between January 2002 and spring 

2004, the EZ had reached more than 1,000 

people through its 50 seminars. Yonkers EZ 

staff surveyed seminar attendees and discovered that Yonkers EZ companies had 

accessed more than $1.5 million in Federal 

EZ wage tax credits to date. 

128 Spotlight on Results 
The sessions allow EZ staff to develop relationships with the business community and 

establish a level of communication that 

might not otherwise exist. EZ staff provides 

information about incentives available to 

Yonkers EZ-based companies. These incentives include Federal EZ tax incentives and 

other incentives available through Federal, 

State, and municipal programs. 

Yonkers City and EZ staff members also created an Earned Income Tax Credit (EITC) 

campaign to assist residents within the EZ 

in making use of this underutilized credit. 

A cadre of IRS-trained volunteers joined EZ 

staff in offering free tax-preparation services 

at the new Yonkers Riverfront Public Library. 

The Volunteer Income Taxpayers Assistance 

(VITA) received generous assistance from 

Mayor Philip A. Amicone’s office, JP Morgan 

Chase, and Verizon Wireless. 

VITA workers inform eligible EITC recipients 

about the credit and complete tax returns 

without charge. Filers can then elect to have 

SECTION 4 

their returns transmitted electronically and 

their refunds deposited directly into their 

bank accounts. The EITC can refund as 

much as $5,000 to eligible filers and provides much-needed, additional income for 

low-income workers. 

The VITA site represented a collaborative 

effort on the part of several organizations. A 

grant from JP Morgan Chase allowed for the 

purchase of six computers on which returns 

were completed. Verizon Wireless made cell 

phones available for calls to the IRS. 

Additionally, the Yonkers Riverfront Public 

Library dedicated two rooms for the entire 

tax-preparation season. The program ended 

on a very successful note in 2004 with some 

800 taxpayers receiving assistance and some 

$400,000 in EITCs returning to EZ residents. 

For more information on the programs of the 

Yonkers EZ, contact EZ Manager Lola Vataj at 

(914) 377–6135. 

Community Services 129 
130 Spotlight on Results 

SECTION 4 

The Northbank Riverwalk and local businesses 

RC tax incentives. 

The RC designation and citizen participation in local 

development have led to a Chattanooga renaissance. 

(page 103) 

Community 

Services and 

Development 

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) 

A new downtown is taking shape due to Hamilton 

A Chicago EZ grant financed the new Austin Wellness 

Center, a desperately needed healthcare facility on 

Chicago’s West Side. (page 115) 
131 

SECTION 4 

The Oklahoma City EZ is helping to renovate the 

Cultural Center and Museum site. (page 124) 

Theater Company and created new jobs for local 

residents. (page 123) 

Community 

Services and 

Development 

Community Services 

Lyman Bercier, CEO of the Turtle Mountain RC (front 

right) sits proudly with fellow Turtle Mountain Band of 

Chippewa RC staff. (page 127) 

Page Woodson School into an African American 

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 

A Minneapolis EZ grant helps to fund a Childcare 

Business Incubator at Abbott Hospital. (page 119) 
Spotlight on Results

SECTION 5


Families Advancing


With Housing and 


Homeownership Assistance

Development within the 

Renewal Communities (RCs) 

and Empowerment Zones 

(EZs) will not be complete 

until the residents of these distressed communities can attain the dream of homeownership. This is why a key principle of every EZ 

strategic plan, sustainable community development, focuses significantly on meeting the 

housing needs of EZ residents and ultimately 

helping them to become homeowners. Since 

1994 EZ leaders have been working to meet 

the housing and homeownership needs of 

local residents by building and rehabilitating 

affordable housing, funding services and 

housing for the homeless, and creating 

homeownership programs to help residents 

achieve their American dreams. 

The RCs are equally committed to meeting 

the housing and homeownership needs of 

local residents. The Course of Action, which 

is a key part of each RC’s tax incentive utilization plan, requires each RC to promote 

local community development needs such 

as housing and homeownership to help RC 

residents become self-sufficient. 

The annual reports that RCs and EZs submit 

to HUD identify many successes in providing 

vital housing and homeownership services for 

local residents and families. These reports 

show that the urban EZs have constructed 

more than 3,500 new housing units, rehabilitated 8,000 more units, and served more 

than 10,000 EZ residents through more than 

100 housing and homeownership programs 

since 1994. 

SECTION 5 

The RCs do not receive Federal grants to provide housing and homeownership services for 

local residents, yet they have been successful 

in providing these services. The Camden, 

New Jersey, RC has a Recovery Act to help 

increase local homeownership. Under this 

act, first-time homebuyers that purchase or 

substantially rehabilitate a primary residence 

in Camden receive an income tax credit up 

to $5,000 annually for a 5-year period. 

In the Charleston, South Carolina, RC, the 

city of Charleston has started working to 

amend a zoning ordinance to consider permitting higher housing densities for certain 

units, thereby encouraging projects that 

mix residential housing with commercial 

development. To assist residents of the 

Memphis RC and other distressed sections 

of the city, the Memphis city council enacted an ordinance to convey city-claimed 

housing at substantially reduced costs to 

local agencies that agree to develop the 

units for persons of low and moderate 

income. 

This section of the publication showcases the 

successes of RCs and EZs in providing important housing and homeownership services for 

local residents and families. We know that 

you will enjoy reading about these successes 

and we hope that your community can emulate some of them. If you would like additional information on any of the stories in this 

section, call the RC or EZ directly using the 

contact information that appears at the end 

of every story. 

Housing 135 
SECTION 5


Housing and 

Homeownership 

Assistance 

Lottery-Like Program To 

Repair Hundreds of 

Homes in Detroit EZ 

Detroit, Michigan, EZ 

As of September 2004 more than 120 homes 

in the Detroit EZ have received substantial 

repairs inside and out, thanks to the Home 

Repair Program of the Detroit EZ. The program, a partnership between the Detroit EZ 

and 7 local housing agencies, provides up to 

$10,000 on a lottery-like system to each of 

300 EZ homeowners to pay for a variety of 

home repair projects—a total of $3 million 

in funds. 

“This partnership is a great opportunity for 

our residents,” says Mayor Kwame Kilpatrick 

during a ceremony in early August 2003 that 

launched the program. ‘’Public-private partnerships enable us to do more than we can 

do alone to enhance the city’s development 

and prosperity and meet the needs of Detroit 

citizens.” 

Media coverage and word of mouth brought 

about 10,000 submissions of interest, a onepage request for consideration form that the 

EZ had prepared, by the August 30 deadline. 

Vince Murray, executive director of Bagley 

Housing Association, a participating EZ partner that administers the program, said his 

office was flooded with calls. 

EZ staff then sifted the responses down to 

3,500 eligible households within the EZ, sent 

letters of explanation to all nonqualified 

responders, and screened for duplicate 

responses. The seven participating nonprofit 

housing agencies then worked with those 

who qualified. Applicants had to live in the 

EZ, own a single-family home and reside in 

it, and meet HUD income guidelines. The 

housing agencies sent out the formal application packets, then worked with homeowners to ensure that they held homeowners’ 

insurance and that their taxes were up to 

date. The agencies then set up a preconstruction conference and facilitated the 

process. 

The grants cover up to $10,000 for individual household repairs. Eligible improvements 

include furnace replacement or repair, water 

heater replacement or repair, porch repair or 

replacement, exterior stair replacement or 

repair, roof replacement, security and/or 

storm door installation or replacement, and 

wheelchair ramp installation or repair. 

Homeowners can also use the grant to 

make exterior improvements involving tree 

removal, sidewalk/driveway repair, garage 

demolition, installation of exterior security 

lighting, and yard fencing. 

“This program reflects our ongoing commitment to help Detroit’s comeback by 

revitalizing our communities and providing 

Empowerment Zone residents the resources 

they need to breathe new life into our neighborhoods,” says EZ Executive Director Larry 

Givens. 

For more information on the programs of 

the Detroit EZ, please call Executive Director Larry Givens at (313) 872–8050. 

New Housing Popping Up 

in Corktown 

Detroit, Michigan, EZ 

A community vision is coming alive in urban 

Detroit, thanks to the Greater Corktown 

Development Corporation, U-Snap-Bac, 

and 11 other local housing and community 

136 Spotlight on Results 
SECTION 5


development agencies funded by the Detroit 

Empowerment Zone Development 

Corporation (EZDC). 

Corktown Development is building 33 new 

homes scattered along Cochran Avenue, 

Harrison Avenue, and Sycamore Street on 

land that had laid vacant for many years. The 

construction phase begins September 2004. 

The new houses, all pre-sold, are priced at 

around $80,000. 

“We are proud of our partnerships with all 

of these agencies to make affordable housing 

and homeownership a reality for Detroit’s 

low- and moderate-income residents,” says 

Larry Givens, executive director of EZDC. 

“The nearly $3 million we have thus far made 

available to support and enhance housing 

and neighborhood development is an investment in people, an investment in our neighborhoods, and an investment in the future of 

Detroit.” 

The EZDC provides soft money for predevelopment costs such as architectural services, 

appraisals, surveys, environmental assessments, and related services, Givens 

explained. Corktown Development used its 

$210,000 grant from the EZDC to cover consultant costs and leveraged these funds for 

construction financing from Charter One, 

National City, and Bank One. 

U-Snap-Bac, another community development 

agency, used its $300,000 grant for architectural renderings, land acquisition, title work, 

and engineering costs. Supporting partners 

created through leveraging these funds 

include the city of Detroit, Michigan Capital 

Fund, and National City Bank. 

Through these partnerships with housing and 

community development agencies, hundreds 

of homeownership opportunities now exist 

throughout the EZ’s central, east, and southwest areas. Consistent with the EZ mission, 

some housing is designed for special populations. “We have special housing initiatives to 

meet the needs of seniors, people with disabilities, and homeless families in transition,” 

Givens explained. 

In some cases homes are sold to eligible individuals and families at affordable rates based 

on guidelines issued by HUD. 

For more information on the programs of the 

Detroit EZ, please contact Executive Director 

Larry Givens at (313) 872–8050. 

Homeownership 

Assistance Makes Dreams 

Come True in El Paso EZ 

El Paso, Texas, EZ 

The homeownership grant assistance program of the El Paso Empowerment Zone is 

making homes more affordable, promoting 

residence in the EZ, and making dreams of 

owning a home come true for many residents. 

As an inducement to purchasing a home in 

the EZ, the program offers grants of $5,000 

to homebuyers. The assistance is available on 

a first-come, first-served basis to all who live in 

the EZ or want to move there, without regard 

to household income levels. The grant can be 

used only for the purchase of owner-occupied 

properties and may be applied toward downpayments, closing costs, repairs, or move-in 

expenses. Buyers commit to making this their 

primary residence for a minimum of 5 years. 

The EZ homeownership grants do not need to 

be repaid. 

The already competitive prices of older 

homes in the EZ make the program even 

more attractive. Housing market values within the EZ enable buyers to purchase much 

bigger homes than they would be able to 

afford in other areas of the city. 

Housing 137 
SECTION 5


Elsa Loebell, one of the $5,000 grant recipients, is now the proud owner of a $95,000 

home in the EZ. She also benefited from a 

3.75-percent interest rate on her note, provided by El Paso Credit Union Affordable 

Housing to EZ borrowers. Oly obtained a 20­

year instead of a 30-year mortgage and her 

qualifying parameters were much more 

lenient than if she had purchased outside 

the EZ. 

Loebell is now living the American dream of 

homeownership and the El Paso EZ is looking 

forward to seeing many more families like 

hers do the same. 

For additional information regarding the 

homeownership assistance program, please 

call Phyllis Rawley of the El Paso EZ at (915) 

351–1680 or visit the EZ’s Web site at 

www.elpasoez.org. 

With Help From EZ, 

Credit Union Initiative 

Provides Financial 

Literacy and Mortgage 

Assistance 

El Paso, Texas, EZ 

The El Paso Credit Union Affordable Housing, 

LLC (AHCUSO), a credit union service organization owned by eight credit unions in El 

Paso, is providing free bilingual financial literacy training and credit management assistance in the El Paso EZ. 

Through an initial grant of $15,000 in 2002 

and a second-year grant of $50,000 in 2003 

from the El Paso EZ, AHCUSO has provided 

financial literacy and homeownership workshops to more than 1,000 EZ residents to 

prepare them to qualify for home mortgages. Conducted in both Spanish and 

English, classes typically run for 2 hours and 

are held 4 consecutive nights. As a result, 

approximately 180 EZ residents have opened 

savings accounts, the first ever for 127 of 

them. 

In addition, in 2002 the EZ funded 

AHCUSO’s home loan program, contributing 

$500,000 to AHCUSO’s mortgage pool. 

These funds leverage dollars 2:1 for prospective homebuyers in the EZ. The EZ has created a hybrid mortgage product that splits the 

principle on a 20-year mortgage term into 

two 10-year terms, thereby cutting the effective interest rate in half. This lower interest 

rate enables more families in the EZ to qualify and own their homes, building equity for 

the future. 

AHCUSO is a credit union initiative established to improve the economic, social wellbeing, and quality of life of El Paso residents. 

The initiative works to empower community 

members to create personal wealth through 

savings, obtain solid credit, and become candidates to qualify for home mortgages. 

Beginning operations in September 2001, 

AHCUSO funded more than 28 affordable 

housing mortgages totaling $900,000 in its 

first year, according to National Credit Union 

Youth Week. 

For further information on qualifying for 

the residential mortgage loan program, 

please call Larry Garcia at (915) 838–9608. 

For information on upcoming financial literacy 

training classes, visit the EZ Web site at 

www.elpasoez.org or contact Rai Sarabia at 

(915) 838–9608. For more information 

on the programs of the El Paso EZ, please 

contact Executive Director Phyllis Rawley at 

(915) 351–1680. 

138 Spotlight on Results 
New Construction in 

EZ Neighborhood = 

Affordable Housing 

and Jobs 

Gary/Hammond/East Chicago, 

Indiana, EZ 

“This project is a great fit for the Empowerment Zone,” says Business Empowerment 

Center Manager Scott Upshaw of the 

Gary/Hammond/East Chicago EZ. The 

Emerson Multifamily Housing Project “combines job training and job creation for zone 

residents. It also creates new housing stock 

in an established neighborhood that has 

spurred improvements in the surrounding 

neighborhood.” 

Gone are the weedy, vacant lots and 

boarded-up homes in the 500 blocks of 

Rhode Island, Georgia, and Vermont streets 

in Gary, Indiana. The Emerson Housing 

Project, which includes 10 garden apartments and 34 apartment townhomes, is 

the cornerstone of the revitalization. 

The two- and three-bedroom homes include 

a mix of affordable and market-rate housing. 

Financed through the EZ and sponsored by 

the Gary Urban Enterprise Association, the 

project is bringing job training and the promise of a better quality of life for everyone 

involved. 

The Gary Urban Enterprise Association offers 

participants job-readiness skills, employment 

training, education, and job placement for at 

least 6 years. 

“As part of the loan agreement, at least 100 

EZ residents participated in job training with 

51 completions and 49 placed into construction or related jobs,” reported Upshaw. 

“These are good-paying jobs tied to the construction trade and include framing, roofing, 

electrical, and other skilled trades.” 

SECTION 5 

The Emerson Housing Project, said Upshaw, 

“will make a positive impact on the community for generations to come.” 

For more information on the programs of the 

Gary/Hammond/East Chicago, Indiana EZ, 

please contact Executive Director Venus Cobb 

at (219) 886–9047. 

EZ Grant Helps Open 

Home for Homeless Boys 

in Huntington 

Huntington, West 

Virginia/Ironton, Ohio, EZ 

The Mended Reeds Home for Children opened its 

doors in September 2002, thanks to a matching forgivable loan from the Huntington, West 

Virginia/Ironton, Ohio, EZ. 

Additional funding came from the First Baptist 

Church of Ironton, which raised $5,000 for 

the cause, and Big Sandy Super Store, which 

made a sizeable contribution. This support 

allowed the agency to purchase the property 

without taking out a private loan, explains 

David Lambert, director of Mended Reeds. 

Lambert then secured a $70,000 forgivable 

loan from the EZ to complete the $140,000 

project. Generous community support and 

the EZ’s forgivable loan program made it 

possible for the agency to open and begin 

its operations debt-free. 

The Mended Reeds Home provides a safe 

place for boys ages 14 to 20 to live, continue 

their education, receive professional counseling and support, develop their social skills, 

and find jobs in the Ironton community. The 

shelter is located in a remodeled private 

home built around 1890—restored to its 

original Queen Anne-style architecture and 

updated with all new wiring and security 

systems. 

Housing 139 
SECTION 5 

Before the completion of Mended Reeds, 

there was no place in the Ironton, Ohio, area 

where young boys without the support of 

family or public assistance could turn for 

help, guidance, and stability. Today there are 

10 boys, ages 14 to 18, who live in the facility, attending local schools and working at 

local businesses. 

“The boys will learn job skills and basic skills 

needed in life, such as cooking, cleaning, 

and how to handle finances,” Lambert says. 

The Mended Reeds Home for Children, 

which operates as a faith-based, nonprofit 

independent living center, is also licensed 

and equipped to provide foster care and 

adoption services to the community. 

For more information on the development 

of the Mended Reeds Home for Children 

using the EZ forgivable loan program, please 

contact Executive Director Cathy Burns, 

Huntington/Ironton EZ, at (304) 399–5454. 

Another Palmetto Homes 

Milestone 

Miami-Dade, Florida, EZ 

On February 18, 2004, Palmetto Homes of 

Miami, the city of Miami Department of 

Community Development, and the Miami 

Empowerment Trust, which administers the 

Miami-Dade Urban Empowerment Zone, 

held a ribbon-cutting ceremony to celebrate 

their latest affordable housing endeavor in 

the EZ. 

Thanks to a $250,000 bridge loan from the 

Miami Empowerment Trust and a $270,000 

forgivable loan from the city of Miami 

Department of Community Development, 

Palmetto Homes will construct six affordable 

infill homes on vacant lots and underutilized 

property in the EZ. 

Due to the commitment of the Empowerment Trust, Ario Lundy, president of Palmetto Homes, has been able to pursue his 

vision “to make homeownership a reality by 

building affordable houses, creating job 

opportunities in the process, and ultimately 

giving people a better place to live.” 

For more information on programs in the 

Miami-Dade EZ, call President and CEO 

Bryan Finnie, Miami-Dade Empowerment 

Trust, Inc., at (305) 372–7620. 

Residents’ Union Request 

Spurs EZ Renovation 

Grant 

Minneapolis, Minnesota, EZ 

“When we first moved here, this place was 

in squalor conditions,” says Janice Hamilton. 

“Now we have a clean, decent place to live.” 

As a 10-year resident and president of the 

Park Plaza Residents’ Union, Hamilton is 

proud to see that the Park Plaza Apartments 

in the Minneapolis EZ have become more 

than a collection of five deteriorated apartment buildings. They now form a community of attractive homes. 

Thanks in part to a $400,000 grant from the 

Minneapolis EZ in September 2000, Park 

Plaza has been transformed into a complex 

that provides 134 units of quality affordable 

housing to families and individuals earning 

less than 50 percent of metro median 

income. 

Only a few years ago, Park Plaza was nearly 

demolished. All five buildings were in severe 

disrepair and presented dangerous living conditions. Then, the Park Plaza Residents’ Union 

approached the EZ Governance Board for 

financial assistance. 

140 Spotlight on Results 
After an onsite visit to Park Plaza, the EZ 

Governance Board members knew it was 

important to support the effort. Through the 

work of the residents’ union, many funding 

partners, and some gifted professional architects, Park Plaza found a new beginning. 

Hamilton and other residents were able to continue living at Park Plaza during the renovations, shifting from apartment to apartment 

within the complex while the work went on. 

As a benefit to residents, the laundry room was 

relocated from the basement to the ground 

floor. These more pleasant and secure surroundings for the laundry room offered a welcome 

change to the residents. 

Park Plaza is a community created by its residents. Residents’ union President Hamilton 

and her daughter, Andrea Cannon, work with 

the 340 residents of Park Plaza to improve 

the quality of life. Hamilton, known for her 

faith and commitment to the community, has 

coordinated several events and was instrumental in creating the first annual Park Plaza 

National Night Out event in 2001. 

The results of a lot of hard work are clear, 

Hamilton said. “This is a place we can be 

proud to come home to.” 

For more information on the programs of 

the Minneapolis EZ, please contact Director 

Jonathan Palmer at (612) 673–5016. 

Boosting Homeownership 

in Urban Connecticut 

Community 

New Haven, Connecticut, EZ 

By forgiving 20 percent of the loan for every 

year a buyer remains in his or her home, the 

New Haven, Connecticut, EZ is looking to 

help 100 first-time homebuyers purchase a 

residence within the EZ’s boundaries. The 

SECTION 5 

loan-to-grant initiative—developed by 

Empower New Haven, the EZ’s administrator—is making headway. To date, 45 EZ 

residents have used the $5,000 to cover 

downpayment and closing costs. “The programmatic goal for homeownership is to stabilize and revitalize EZ communities,” says 

Althea Marshall, Empower New Haven’s president and CEO. 

The individual development account (IDA) is 

another Empower New Haven HomePower 

program designed to encourage homebuyers 

within the EZ. Some 250 residents are saving 

toward a maximum of $2,500, which 

Empower New Haven will match 2:1. The 

potential for $5,000 in matching funds 

makes the IDA program more appealing than 

other, similar initiatives available in the city. 

To help increase financial literacy and preserve assets within the EZ, several groups 

funded an anti-predatory lending media campaign. Empower New Haven, the city of New 

Haven, Fannie Mae, ACORN, and community 

housing advocates joined forces to alert residents to this practice through a press conference at city hall, newspaper articles, public 

service announcements on radio stations, and 

bus panels, both inside and outside. These 

panels included a call-to-action phone number for further information. The bus panels 

feature an EZ resident who purchased her 

home via the Loan to Grant HomePower 

initiative. 

Empower New Haven has also announced a 

companion HomePower initiative that will 

provide emergency home repairs and exterior 

improvement repairs for EZ residents. 

For more information on the programs of the 

New Haven EZ, contact President and CEO 

Althea Marshall, Empower New Haven, at 

(203) 776–2777. 

Housing 141 
142 Spotlight on Results 

SECTION 5 

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) 

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) 

Albemarle Square features 340 units for rent and 

Housing and 

Homeownership 

Assistance 

A $70,000 Huntington-Ironton EZ loan helped to 

ownership. The Baltimore EZ helped to facilitate the 

resident engagement effort and land use plans. 
Housing 143 

SECTION 5 

Thanks in part to a $250,000 loan from the 

Miami-Dade EZ, Palmetto Homes will construct 

helped dozens of local residents become homeowners. 

(page 141) 

dent who purchased a home through the Homepower 

program. (page 141) 

(page 140) 

Housing and 

Homeownership 

Assistance 

six affordable homes. (page 140) 

The New Haven EZ Loan-to-Grant initiative has 

A ribbon-cutting ceremony for a New Haven EZ resiA Minneapolis EZ grant helped to renovate more than 

120 affordable-housing apartments at Park Plaza. 
Spotlight on Results

SECTION 6

A Glimpse of the Round I

Empowerment Zones and 

Enterprise Communities 

Successes—10 Years After

Designation
Over the history of the Empowerment Zone (EZ) Initiative, the initial

focus of the Round I EZs was almost

exclusively on the Social Service

Block Grant (SSBG) funds with a far less

focus on tax incentives. Each of the Round I

Empowerment Zones received from the

Department of Health and Human Services,

$100 million in Social Service Block Grant

(SSBG) funds, which then created the unanticipated results of eclipsing the Round I

Zones’ effort to fully use tax incentives during

their 10 years of designation. 

With the advent of second and third Rounds

of EZs designation, an evolution took place in

which federal grants were de-emphasized as

the best approach for assisting designated

areas. All Rounds of EZs now have the challenge of a new approach requiring the

aggressive promotion and marketing of the

$11 million tax incentive package and the

$15 billion in New Markets Tax Credits.

The Round I Zones primarily concentrated

on implementing activities and projects that

were eligible under SSBG requirements.

Because there was virtually no type of activity

that was ineligible for SSBG funds, the Round

I Zones had the unfettered ability to carry out

a wide range of activities from housing, public services and improvements to economic

development. 

The Round I Empowerment Zones will be

able to fully concentrate on marketing the

tax incentives now that the Community

Renewal Tax Relief Act of 2000 has extended

the Zones designation until 2009 for the purpose of allowing the Zones to take advantage

of the tax incentives for another five years.

The Act increases the amount of time available to the designees and provides an opportunity to see the long-term impact of tax

incentives on job creation and other economic and community development activities

that improve the lives of Zone residents. 

EZ Success 147

SECTION 6

Part 6 of Spotlight on Results offers profiles

showing how cities have realized the goals

of the Empowerment Zone and Enterprise

Community (EZ/EC) initiative. In 1994 five

urban Round I EZs—Atlanta, Baltimore,

Chicago, Detroit, and Philadelphia/Camden—

were designated for a period of 10 years,

which was set to end on December 31,

2004. To ensure the continued availability

of tax incentives to businesses to these EZs,

their designations have been extended to

December 31, 2009. 

Each Round I urban EZ received $100 million

in Social Services Block Grants, with the 

dual-designation cities of Camden and

Philadelphia receiving $50 million each.

The U.S. Department of Health and Human

Services (HHS) has administered these grants.

Along with the Social Services Block Grants,

the Round I urban EZs also received tax

incentives with an estimated value for the

first 5 years of $2.5 billion. These incentives

consisted of wage credits, increased IRS

Section 179 expensing, and tax-exempt

bond financing.

On December 31, 2001, HUD designated 40

Renewal Communities (RCs). Among them

was the city of Atlanta, a Round I EZ. Due to

the Community Renewal Tax Relief Act of

2000, Atlanta lost its designation as an EZ

when it chose to become an RC. The city of

Atlanta was offered an opportunity to have

a profile of its EZ included in this part of

Spotlight on Results, but it was decided that,

given the city’s recent move to RC status, a

story would not be feasible.

Also in 1994, 65 urban ECs were designated,

with each receiving $3 in Social Services

Block Grant funds from the U.S. Department

of Health and Human Services. Except for

tax-exempt bond financing, businesses located in an EC have not been eligible for other

tax incentives. The designation for urban ECs

ended in 2004 and was not extended. Part I
148 Spotlight on Results

SECTION 6

includes success stories for the ECs in

Manchester; New Hampshire; Waco, Texas;

and Phoenix, Arizona. These three cities

have been outstanding in carrying out their

strategic plans and in making a positive difference in the lives of their residents. 

The EZs and ECs profiled here illustrate how

cities across the country have succeeded in

empowering their residents to act on four

key principles: Building Communitybased Partnerships, Creating Economic

Opportunity, Encouraging Sustainable

Community Development, and Implementing Tax Incentives. The information

in each profile is based on interviews with

EZ and EC representatives. 

A few outstanding projects hint at the range

and depth of the EZ residents’ and businesses’ accomplishments described in the following profiles. In Baltimore, one community

literally did not exist until EZ-empowered

residents formed a nonprofit community

development organization, which has pursued safer streets and market-rate housing.

In Camden, residents used the Internet to

find out how to get free trees to plant on

their streets, which are now models for tree

planting all across the city. In Chicago, a

cooperative business has been able to build a

new $3 million grocery store and has trained

and hired residents to fill the resulting 100

new jobs. In Detroit, residents have brought

a derelict park back to life as a lively gathering place and center for youth services, and

it is now a model for other neighborhoods

that also want great parks. In New York, residents’ and firms’ projects have spurred close

to $800 million in combined direct and indirect private investment. And in Philadelphia,

strong EZ-created community-based organizations have led to a range of initiatives like

local funding streams that will continue to

benefit their neighborhoods long after the

EZ has finished its work.

Likewise, EC residents and businesses have

pursued successful projects to improve

their communities. In Manchester, hightechnology firms, light manufacturing

companies, and service and distribution

businesses have created more than 170

jobs within the EC. Innovation is at the

heart of the Phoenix EC’s strategic vision for

change. Since its designation as an EC, it

has expended more than $1 million on a

variety of job training and placement programs to help increase the employability

of residents and has worked to ensure that

residents with jobs have the opportunity to

advance. And in Waco, more than 2,700 EC

residents have received computer training,

attended job-readiness clinics, and learned

industry-specific skills such as carpentry and

small engine repair. 
Baltimore Communities

Lay Foundation for

Prosperity

Martin O’Malley, Mayor of

Baltimore

Baltimore, Maryland, EZ

“I’m proudest of the foundation

we have laid for increasing the

city’s wealth,” explains Diane

Bell, the former head of

Empower Baltimore Management Corporation (EBMC), the

city’s EZ agency that has been

enabling this old port city to

help meet the challenges of

retooling its economy for the

information age. In pursuing its

mission of increasing citizens’

incomes by empowering them

to organize and develop their

own communities, EBMC has

successfully acted on the four key EZ principles: building community-based partnerships,

creating economic opportunity, encouraging

sustainable community development, and

implementing tax incentives.

Baltimore’s EZ extends over

approximately 7 square miles

east and west of downtown and

includes several historic inner city

neighborhoods that are home to

about 60,000 people. By staying

on target with its main goal of

increasing citizens’ earning

power through training and wellpaying jobs, EBMC has created

almost 5,700 new jobs, placed

approximately 11,000 people in

jobs, reduced crime by roughly

60 percent, increased homeownership by almost 6 percent, and helped several

communities create and implement their own

economic development plans. From 1995

to 2000 public and private investments in

EZ Success 149

SECTION 6

the EZ’s communities totaled approximately

$1.2 billion.

Two of these communities, Washington

Village and East Harbor, illustrate how EBMC

has taken advantage of the EZ to improve

the city. Washington Village literally did not

exist as a community until the EZ designation

empowered a group of local people to form

a nonprofit community development organization. Through this

organization residents have

formed a partnership with the

State’s attorney’s office to fight

drugs, prostitution, and related

crimes thus helping to stabilize

the community. And they have

gone on to pursue efforts to

build market-rate housing and

set up a Main Street project to

enhance their business district. 

Along with Washington Village’s

community development organization, the EZ has also helped to establish

two other community-based nonprofit corporations called village centers, which are

continuing to facilitate the EZ’s strategies.

Each village center is based on a coalition

of residents, businesses, and

local institutions and offer a

variety of essential services

through a career center and

other resources.

In East Harbor, another village

center that is a prime development site on the city’s waterfront, an EZ-spurred land use

plan has enabled the community

to capitalize on HOPE VI redevelopment and attract a large hotel

and high-quality housing, thus

boosting the city’s tax base. The

community has also brought in

jobs by forming a partnership with Hewlett

Packard to establish a computer laboratory

and increased homeownership by helping resiDiane Bell, EBMC

Martin O’Malley, 

Mayor of Baltimore
150 Spotlight on Results

SECTION 6

dents set up individual development accounts.

EBMC has enabled these communities to succeed with “a

strategy of forming partnerships

with local employers and educational institutions and by marketing the EZ’s tax incentives

and other advantages in cooperation with the city’s and State’s

existing economic development

agencies,” explains Bell. In this

way, by building on the work of

these established agencies, the EZ’s advantages have been maximized as part of a total

package of benefits. For example, with the

help of EBMC and the city’s economic development agency, BankOne chose downtown

Baltimore as the site of a new check-remittance center employing hundreds because it

would be able to take advantage of several

key assets: the city’s trained workforce, the

EZ’s ability to create customized training, a

prime location across the street from the

main post office, and the bonus of EZ tax

credits.

The success of these community-based partnerships is best shown by looking at how the

EZ’s projects have empowered particular residents through customized job training leading to good jobs with career potential. For

instance, Baltimore City Community College

and EBMC together developed a customized

job-training program in partnership with

Chesapeake Biological Laboratories (CBL), an

EZ business that manufactures pharmaceuticals. The partners determined the job skills

and interests of potential employees, nine EZ

residents were selected to join an intensive

training course, and all nine were hired by

CBL, which received tax credits. Similar successful job-training partnerships among

EBMC, local colleges and universities, and

a host of locally and nationally based firms

have led to many good jobs for local residents.

Other EZ projects have led to

direct business startups and job

creation. A prime example

is Charm City Signs, whose

founder Joey Richards states, “I

don’t believe that a traditional

bank would have loaned me

money to start my business....

The Empowerment Zone was

the first and last [source] I went

to.” Richards had no experience

in graphic arts, and as an unemployed single mother and novice

entrepreneur, she stood little

chance of finding a traditional lender willing

to finance her business. When searching the

Internet one day, she discovered the U.S.

Small Business Administration’s One-Stop

Capital Shop at EBMC’s Business Empowerment Center, which helped her find potential

business sites in the EZ. She eventually settled

on a site in East Harbor, where—with a 7-year

EBMC loan of $100,000—she leased the

space to house the now-thriving Charm City

Signs. 

Another EZ-empowered resident, Bruce

Coley—a young African American from the

struggling Sandtown Winchester community—is now a surgical technologist with a

good job, thanks to having graduated from

customized training offered by the EZ and

Johns Hopkins Health Systems. After much

hard work studying and having endured limited finances, he completed his training and

is now on a clear career path in healthcare.

“Little did I know that this would be the

turning point in my life,” Coley recalls. “As

soon as I signed up, I felt like a whole new

world had been opened up to me.”

Still another resident grateful to the EZ is

Dorothy Scott, who has traveled a path from

public housing to a good job and to homeownership. When the East Harbor Village

Center was organizing its career center, it

sought someone who knew the neighborhood and could work well with the communJim Shea, EBMC Chair
ity. Scott—then a public housing resident and

recreation leader with the Baltimore City

Housing Authority—was selected for the job

of the center’s client service coordinator

because she lives and works in the community and is respected by the residents. “This job

was a step in empowering myself financially

and physically,” she states. “I used to live in

public housing, but now I own my own

house.”

In empowering these and many more

Baltimore residents, EBMC has overcome several hurdles. Most of these, according to

Diane Bell, were the common problems of

dealing with constantly changing communities, where leaders might just hit their stride

and then move on and where new people

and organizations need to develop trust and

become informed about challenges and

opportunities. EBMC has overcome these

hurdles with a process of “constant communication” with its partner community organizations through newsletters, its Web site, and

the media.

Recently, as EBMC prepares for its closing as

its 10-year term expires, it has been working

to ensure the sustainability of its programs. It

is assisting the EZ’s community-based organizations to develop the capacity to continue

building the collaborative initiatives that will

enable their communities to

thrive. For instance, two

planned biotechnology parks

on the west and east sides of

the EZ will benefit significantly

from new investments in both

physical and human capital by

major partners, including the

Federal and city governments,

Johns Hopkins Medical

Systems, the University of

Maryland Medical Systems, the

Annie E. Casey Foundation,

and many other foundations and

funders. The two parks will create about 13,000 new jobs, and EBMC is

EZ Success 151

SECTION 6

assisting the village centers where the parks

will be located to determine anticipated

workforce needs and find opportunities for

small and minority businesses.

As the EZ winds down, EBMC will be part of

the city’s economic development strategy for

only a little longer. But its legacy will continue to enrich the city. The strong, permanent

community-based organizations it has helped

to establish and the thousands of residents it

has helped to train and start good careers are

putting Baltimore on the path to prosperity.

For more information on Empower Baltimore

Management Corporation, contact Tanya

Terrell at (410) 783–4400 or visit www.baltimoreempowermentzone.com. For upto-date information about Baltimore’s

Empowerment Zone, tune in to Empower

Hour on WOLB 1010AM every Tuesday

morning at 10 a.m.

Trees and Hope Grow in

New Jersey

Gwendolyn A. Faison, 

Mayor of Camden

Camden, New Jersey, EZ

“The things that our residents

have learned and overcome have

been incredible,” exclaims Rick

Cummings, the head of the

Camden Empowerment Zone

Corporation (CEZC). “The EZ has

empowered them to really

broaden their horizons. For

instance, one neighborhood

group that had received EZ

financial and technical assistance,

instead of turning to the EZ,

went to the Internet and found

out how they could get 80 free

trees to plant on their local

Gwendolyn A. Faison, 

Mayor of Camden
152 Spotlight on Results

SECTION 6

streets. One thing led to another, and neighborhood tree planting has spread across the

city.”

These trees—symbols of hope—epitomize

the positive change that the EZ has brought

to Camden, a struggling city of about

80,000 people across the Delaware River

from Philadelphia. The Camden EZ covers

about a quarter of the city’s population, and

these committed residents have taken advantage of the EZ’s benefits in undertaking

many kinds of new initiatives to help them

realize their vision of “a transformed

Camden, harmonious villages in which to

raise children, where families are proud to

live and people are excited to visit.”

The variety of successful EZ projects illustrates the residents’ empowerment. One

project, the Cooperative Business Assistance

Corporation (CBAC), a nonprofit community

development fund, manages CEZC’s $2 million small business development fund and

provides a variety of lending programs to

small businesses that have difficulty accessing

traditional credit markets. CBAC also leverages CEZC funds with capital from local

banks, the U.S. Treasury Department, private

foundations, and the U.S. Small Business

Administration. More than 60 EZ businesses

have received almost $2 million in loans

leveraged with more than $10 million from

other lenders, which resulted in more than

500 jobs being created and retained in the

EZ.

The EZ has enhanced homeownership

opportunities with ambitious projects like

Cooper Grant Homes, which has been

described as the first market-rate, new

housing construction in Camden since the

1950s. The project was originally planned

as 24 single-family homes in the Cooper

Grant EZ neighborhood adjacent

to Camden’s waterfront. Local residents

recently requested that the project be

increased to 28 subsidized units to be sold

at market rate without an income cap

being imposed on purchasers. Progress to

fill a significant funding gap was slow, but

the project is now fully financed and getting under way. 

To strengthen sustainable community development, CEZC has facilitated such innovative

efforts as the Police Multi-Agency Life Line

(MALL), which has been organized by the

Camden Police Department to combat delinquency among the city’s youth and offer

alternatives to the filing of criminal charges.

MALL unites approximately 20 law enforcement, justice, education, and human service

agencies in a “one-stop shop” offering many

kinds of services. For example, therapists in

the family intervention unit provide therapy

and advocacy during the day, in the evening,

and on weekends. And the Safe Haven, an

afterschool enrichment program based at

Rutgers University, helps youth who would

otherwise have been subject to the justice

system. Safe Haven graduates serve as mentors, peer counselors, and field trip chaperones; provide violence-prevention workshops

for other youth; conduct neighborhood

cleanup projects; and collect food and holiday gift donations for needy families. Since

MALL began, the number of youth annually

referred to family court has decreased from

1,600 to approximately 900, even with a 10-

percent increase in arrests.

To increase economic opportunity, Rowan

University has formed a partnership with the

CEZC to provide basic computer literacy and

software training to EZ youth and their families at the Camden Neighborhood

Technology Center. Donated personal computers are refurbished by trained technicians

at the center and provided free to Camden

youth from EZ schools. The program requires

that the youth and at least one parent complete the training together. Upon completion

of the training, each youth is given a free

refurbished computer. 
To market and utilize the EZ’s tax incentives,

CEZC has used $7 million in EZ facility bonds

to provide permanent financing for Camden’s

new minor league baseball stadium. And

CEZC also has presented workshops on the

various tax incentives, mailed and faxed marketing materials about the tax incentives to

businesses, and created an EZ business grant

program for Camden businesses that hire EZ

residents. The EZ business grant is an extra

incentive to encourage small businesses to

increase their EZ resident employees. The EZ

business grant program, which is also marketed by student interns, has been a way for

the CEZC to increase the use of other tax

incentives while presenting immediate

rewards to the Camden businesses employing EZ residents. Along with the business

grant program, the EZ’s other two outstanding uses of tax incentives have been through

its entrepreneurial and training loans for

small businesses and the small business

development fund described above. 

These and many other successful EZ projects

also have leveraged substantial additional

assistance from the public and private sectors. For instance, when the EZ planned to

use $1.3 million to improve four major

downtown streets, it was eventually able to

piggyback these funds onto State plans to

build a light rail system to Trenton, the capital. As a result, in cooperation with the

Cooper’s Ferry Development Association, the

EZ was able to concentrate the initial funds

on renewing just one street and also get $12

million more for other downtown streets.

The EZ has facilitated these improvements

after having overcome one main hurdle: governance. At first, the EZ was administered as

part of the city government, which tended to

complicate planning and coordination. But

once the EZ was able to set up its own nonprofit agency with the support of the State

government, it developed a resident-based

management structure that has enabled the

communities with the greatest stake in

EZ Success 153

SECTION 6

the EZ’s success to control its process and

programs.

One resident who appreciates this communitybased EZ structure is Ericka Ayers, who has

her EZ-funded job training to thank for “providing me with the road map I need to make

my dream possible”—a 9-week course in

small-business development, which taught

her to write a business plan, manage

finances, market her services, and obtain a

microloan. Ayers used her training to start

Maid to Serve, a professional commercial and

residential janitorial cleaning service. And

because she had completed the EZ training,

Ayers was selected to enter the Community

Janitorial Venture’s training program, which

has given her more training and access to

commercial cleaning markets, such as winning a large subcontract to provide local

service to the U.S. Census Bureau.

Another group of empowered residents has

formed a partnership with the Latin American

Economic Development Association (LAEDA),

which the EZ provided with $100,000 to

expand its efforts to help local people get

training, develop business plans, and start

their own businesses in the EZ. LAEDA has

formed a partnership with the Cooperative

Business Assistance Corporation to provide

startup funds for entrepreneurs and it also has

worked with the Hispanic Family Centers of

Southern New Jersey to recruit participants at

churches, community-based organizations,

and nonprofit agencies.

“The greatest benefit of the EZ has been

to empower Camden’s residents to make

changes in their own lives, beyond the use

of money,” sums up Cummings. “There is

nothing like looking at residents’ faces

when they realize that they can solve a

problem.”

For more information, contact Program

Manager Darrell Staton, CEZC, at (856)

365–9061, or www.camdenez.org.
154 Spotlight on Results

SECTION 6

Chicago Builds its

Communities’ Capacities

Richard M. Daley, 

Mayor of Chicago

Chicago, Illinois, EZ

“Since the program started nearly a decade

ago, the Chicago EZ’s accomplishments have included the

creation, retention, and placement of 3,400 jobs; giving

grants to nearly 60 small businesses; and assisting businesses

in EZ communities secure more

than $7 million in outside funding,” notes Jarese Wilson, the

city of Chicago official responsible for the EZ. The Chicago EZ

thus has had a very significant

impact across its 26 neighborhoods with approximately

200,000 residents. The EZ has assisted 260

subgrantees to sustainably improve their

communities by funding projects in its major

strategic areas, including affordable housing,

capacity building, youth futures, economic

empowerment, cultural diversity, health and

human services, and public safety.

The Chicago EZ has built on the success of

its programs and partnerships in past years

and continues to show effective results. In

addition to allocating funds to more than

260 projects, EZ dollars have been leveraged

with more than $150 million, which has

directly benefited more than 76,000 residents. To help maintain the growth that has

been accomplished by its funded programs,

more than $6 million has been leveraged

from the $722,000 awarded to five EZ subgrantees, which provide many services—such

as assistance with operational and programmatic development, grant-writing skills, and

fiscal management—that are helping to

increase sustainable community

development.

The Chicago EZ’s many accomplishments

have had a strong positive impact on the

city. It has invested $22 million to build or

renovate nearly 300 rental housing units,

100 assisted-living units for seniors, more

than 300 units in previously abandoned or

vacant buildings, a 100-unit single room occupancy facility, 16

two-flats, and 10 single-family

homes. It has invested $12 million to expand and build medical centers, including service

delivery networks, child and

family service centers, and primary healthcare facilities. And it

has invested $10 million in projects that enable EZ residents to

build on their ethnic and cultural heritage as an economic

development tool. The EZ has

also assisted more than 20

youth-futures projects for children and

teenagers in EZ communities. It has helped

seven organizations to reduce violence in

their communities, including several antigang and community-policing initiatives. It

has invested $19 million to fund 2 career

centers and 22 affiliates, which have served

4,900 EZ residents and 30 community

organizations and businesses. Nearly 160

men and women have completed an EZfunded pre-apprenticeship constructiontraining program.

To achieve these numerous positive outcomes, the Chicago EZ has created linkages

between residents and community organizations and businesses, building foundations

for both EZ efforts and ongoing community

development. The keys to these successful

efforts have been the six cluster organizations within the EZ. Because each cluster

organization represents a particular geographic area—tying together all the area’s

governmental, commercial, and private entiRichard M. Daley, 

Mayor of Chicago
ties—it is able to articulate the area’s pressing

needs as well as pinpoint opportunities for

future development. These cluster organizations are continuing to operate through the

end of the Chicago EZ initiative and are completing projects concerned with three top priorities: economic empowerment, youth

futures, and affordable housing. 

Overall, the EZ’s economic empowerment initiative has received almost $34 million in

Federal funds and about $11 million in State

funds, and it has leveraged almost $32 million in other private and public support.

These funds are being used for projects

addressing the business development, workforce development, and capacity building

needs of the EZ’s communities. The most

popular, well-received, and innovative economic empowerment effort has been the

direct grant initiative, which has focused on

small existing, home-based, and startup forprofit businesses. Community residents have

helped determine which applicants to fund.

For instance, the grant has enabled Curlie’s

Bakery in the West Side EZ to buy machinery,

expand production, and increase sales.

Among the other efforts concerned with economic empowerment, the Hyde Park

Cooperative in Chicago’s South Side EZ community has used $3 million to build and

equip a new grocery store. EZ residents have

been trained and hired to fill 100 new jobs. 

An outstanding business assistance effort has

been Chicago Community Ventures (CCV),

which provides many business assistance

resources, including business training, financial planning, and an information technology

center. As of 2003, CCV had led more than

300 business assistance workshops, assisting

almost 800 residents and 300 EZ businesses.

And outside the EZ, CCV has served more

than 700 businesses, which are now creating

sustainable opportunities for EZ residents.

Finally, the EZ has increased the city’s stock of

affordable housing through such programs as

EZ Success 155

SECTION 6

the Small Multifamily Preservation Project,

which started as one of two EZ housing activities funded with $2 million by the Chicago

city council. To augment EZ funding for the

project, the Chicago Department of Housing

contributed $2 million and private financing

sources added another $1 million. These

funds have assisted more than 50 housing

units, with services focused on maintaining

the viability of 4- to 10-unit residential buildings. The Chicago Department of Housing

contributed almost $1 million toward acquiring and rehabilitating 17 units in 4 buildings.

The small multifamily preservation project

also funded a second phase of small-building

acquisition and rehabilitation in the Pilsen

and Little Village communities. This effort was

developed by the Resurrection Project, an EZ

business, which managed the property after

subcontracting most of the construction work

to other EZ businesses that are members of

its construction cooperative. In sum, the EZ’s

housing efforts have helped serve nearly

1,000 residents with more than $19 million

in EZ funds and $68 million in leveraged

funds.

One main hurdle the Chicago EZ overcame

has been the need to build the capacity of its

community-based grant and loan recipients—enabling them to do everything from

handling contracts to documenting service

delivery. This capacity-building effort has

been especially successful in enabling the

recipients to learn to manage the EZ’s construction projects.

In pursuing this capacity building in the context of implementing its many successful

projects, the Chicago EZ has built a strong

foundation for sustainable community development beyond the life of the EZ initiative.

The EZ’s many projects have created solid

structures—ranging from childcare centers,

healthcare facilities, and housing units to

community network structures built around

educational programs, job training, and business assistance. These projects have provided
156 Spotlight on Results

SECTION 6

services to more than 76,000 people across

the diverse communities of Chicago. But

most of all, the people who have taken the

lead in creating and completing these projects are now empowered to continue developing their communities.

For more information, contact Managing

Deputy Director Jarese Wilson, city of

Chicago, at (312) 744–7870.

Detroit Empowers

Residents To Become

Leaders

Kwame Kilpatrick,

Mayor of Detroit

Detroit, Michigan, EZ

“The most exciting result of our

EZ is the cadre of people whom

the zone has touched,” states

Detroit EZ head Larry Givens.

“These groups of people

throughout the EZ, whom it has

helped to become leaders, will

continue to revitalize neighborhoods, take care of children, and

attack other problems long after

the zone has ended.”

Detroit’s EZ covers about 18 square miles

across the southwest, central, and near east

sections of the city. The area is home to

approximately 85,000 residents and 3,000

businesses. The southwest subzone has been

particularly active in taking advantage of the

EZ’s opportunities. All of the EZ’s programs

have been grouped under three themes,

according to how they benefit EZ residents:

clean and safe, healthy and smart, and living

and working. Clean and safe programs have

addressed the general safety of residents as

well as the cleanup and beautification of

neighborhoods. Healthy and smart programs

have focused on the educational, physical,

and mental health needs of residents. And

living and working programs have encompassed the overall quality of life for residents

and addressed their transportation, housing,

recreational, job-training, and employment

needs.

The EZ’s role in the southwest subzone illustrates how these themes have been useful in

empowering residents. A seminal effort was

the process that led to the birth of the Clark

Park Coalition. Clark Park, long neglected,

was scheduled to be shut down, but residents and other volunteers decided to

reclaim the park. They formed cleanup

squads and restored athletic and recreational

programs on weekends. With a $150,000

investment from the EZ, they

extended programming to 7

days a week, made significant

infrastructure improvements and

introduced new intergenerational

sports, games, and other activities that created an engaging,

safe haven for children and families. Its ice rink is a lively gathering place for local youth,

attracting hockey-player mentors

and now even academic mentors

who work with the youth at the

park’s field house. The EZ’s

investment has leveraged about $1 million in

contributions from public and private

sources, ranging from the city’s Recreation

Department to Ford Motor Company. And

the residents’ effort to bring Clark Park back

to life is now serving as a model for residents

in other neighborhoods who also want

great parks.

A prime example of how residents are following the Clark Park model, and thus

becoming empowered, is the development

of a new football and athletic field in the

north end of Detroit—the first football field

the city’s Northern High School has ever had

on which to play its home games. And

Beniteau Park—an east side site carved out of

Kwame Kilpatrick, 

Mayor of Detroit
litter-strewn lots—has been

renewed to become a recreational haven for youth and seniors

alike. 

In achieving these and many

other successes, the EZ has

depended on innovative partnerships and agencies. For instance,

the Shorebank Development

Corporation has been a leader in

bringing new vitality to the EZ.

Shorebank is a new type of financial institution, a community development

bank, combining for-profit business acumen

and nonprofit enterprise with a genuine

motivation to rebuild long-neglected neighborhoods. After it opened its doors in 1997,

Shorebank got off to a strong start; near the

end of that year, the bank had surpassed its

first goal by closing on 17 residential properties worth nearly $1 million and making commercial loans for more than $80,000. Most of

these loans enabled residents to purchase

and rehabilitate houses, boosting property

values in the area. On the commercial side,

Shorebank acquired an 8,000-square-foot

property on the east side and invested

$400,000 to rehabilitate it. Moreover,

Shorebank Enterprise, the nonprofit arm of

operations, established an enterprise development loan fund to benefit local entrepreneurs,

especially minority businesses providing jobs

for local residents. The fund has raised several

million dollars from the Ford Foundation, the

Charles Stewart Mott Foundation, and other

philanthropic sources.

Detroit’s physical infrastructure had decayed

in recent years with the city’s loss of businesses and population. To attack this problem, the EZ embarked on a number of

creative projects. One example is the renovation of the historic Architects Building and

the Ghandi-McMahon Building. In 1998,

having witnessed the effects of past disinvestment and decay, the Cass Corridor

EZ Success 157

SECTION 6

Neighborhood Development

Corporation decided to undertake an innovative 51-unit housing project. The redevelopment

of the 1924 Architects Building

was unique because all the materials used to renovate it were

recycled—including carpets

made from plastic bottles, ceiling

tiles containing newspaper

scraps, recycled paint, and studs

containing recycled steel. The

program is designed to lessen the

impact of construction materials, which make

up an estimated 30 percent of all landfill

materials. The reborn Architects Building features seven two-bedroom units with central

air conditioning and new appliances.

Environmentally sensitive materials and techniques were also used in renovating the

Ghandi-McMahon Building across the street.

A $250,000 pilot grant from the Michigan

Department of Natural Resources’ Solid

Waste Alternative Program provided seed

money for the project, and additional funding of $6.1 million came from various public

and private sources.

Among its many efforts to build sustainable

communities, the EZ has invested $8 million

in a partnership with the Detroit Police

Department to implement a communitypolicing program. The role in this effort of

one young woman, Toyia Watts, who lives on

the city’s east side, also shows vividly how EZ

residents are being empowered to make a

difference. As the president of Communities

United Together, Watts helps her group of

neighbors navigate the city bureaucracy and

develop strategies to reverse the conditions

that led to neighborhood decline. “I got to

know local precinct commanders. I got to

know the environmental officers and the city

inspectors who deal with this neighborhood,” Watts explains. “I realized that one

person or one group could not go it alone.

So I started networking with the people. As

Larry Givens, Detroit EZ
158 Spotlight on Results

SECTION 6

a result, with the help of our partners in the

police department, conditions are beginning

to improve and crime is going down.”

Today, Watts is a working woman, with a

part-time job as a building-code specialist

at the neighborhood-based Warren-Conner

Development Coalition, where she explains

to callers what to do about abandoned cars, where to call to

report illegal dumping on a

vacant lot, and how to take control of their living environment.

Of the EZ tax incentives, Detroit

has been most successful in using

the wage credit. For example,

Bridgewater Interiors, which

manufactures automobile seats

for General Motors and other

companies, has received wage

tax credits for the more than 300

employees of its new plant, who

live nearby in the EZ. Bridgewater estimates

that it has saved almost $1 million through

the wage tax credits.

One obstacle faced by the EZ was how to

streamline the complex process of city, State,

and Federal controls over the EZ’s funds. The

EZ mitigated this complexity by forming a

separate nonprofit administering corporation,

which holds a master contract and thus can

receive a share of funds from the city and distribute them directly to project sponsors as

subcontractors.

Finally, Givens notes that “when the EZ ends,

the people and organizations it has nurtured

will continue to achieve successes because

they’ve learned the formula for community

development, and this democratic citizen

power, more than bricks and mortar, is the

EZ’s great legacy.” Across the city—from the

youth enjoying Clark Park to the people living in the Architects Building—these empowered residents are surely building on this

legacy.

For more information, contact Director Larry

Givens, Detroit Empowerment Zone, at

(313) 872–8050 or www.detez.com.

New York Cooperates To

Achieve Dramatic

Success

Michael Bloomberg,

Mayor of New York

New York, New York, EZ

“The mayor and the governor

have worked with the people of

Harlem and the South Bronx to

rebuild communities and change

lives through the EZ, whose

many projects have spurred close

to $800 million in combined

direct and indirect private investment,” sums

up New York EZ corporate secretary Marion

Phillips. “And everyone—government, local

development corporations, residents, and

businesses—has come together in this successful effort.”

The New York EZ’s multimillion-dollar leveraging is just one of its many accomplishments, which are as dramatic as the

premier U.S. city it serves. It has disbursed

about $112 million, undertaken almost 300

initiatives, and created and retained approximately 13,000 jobs. The EZ has been able

to achieve these successes thanks to the

two strong community-based organizations

that it encompasses—the Upper Manhattan

Empowerment Zone Development

Corporation and the Bronx Overall

Economic Development Corporation, which

serves the South Bronx.

Upper Manhattan and the South Bronx were

selected for strategic reasons to serve as the

focuses for New York’s EZ. Upper Manhattan,

Michael Bloomberg, 

Mayor of New York
long known as a cultural capital, is once

again thriving. Economic opportunities, business activities, and a flourishing cultural life

have attracted worldwide attention. When

people talk about Upper Manhattan, conversation has historically revolved around

renowned jazz musicians and composers,

great writers, and cultural venues and institutions like the Dance Theater of Harlem, the

Apollo Theater, the Lenox Lounge, and the

Cotton Club. Today, people also see enormous business possibilities in Upper

Manhattan. Many residents are skilled and

talented workers who would like to help

restore the area to its glory days of the early

1900s. And with the help of the New York

EZ, these residents are seizing the opportunity to enable Upper Manhattan to once again

become a symbol of economic and cultural

vibrancy. 

The borough of the Bronx is also well on its

way to restoring its one-time economic prominence. In 1997 the Bronx won the prestigious

All-American City Award, presented by the

National Civic League in a national competition among America’s most improved communities. The Bronx’s resurgence has been noted

by local, national, and international media. For

example, Smithsonian Magazine has written:

“Few are aware of the dramatic turnaround.

Welcome to the good-news Bronx!” A number

of businesses have relocated to or expanded in

the Bronx EZ, taking advantage of tax benefits

and low-interest loans.

For the EZ, the Bronx has had the particular

asset of land available for development.

Taking advantage of this land, for instance,

is the major Fish Market at Hunts Point

Cooperative Market project, which is bringing in 800 jobs at about 70 businesses that

are relocating from the Fulton Fish Market in

Manhattan. To provide a smooth transition

for these relocating businesses, the EZ has

proposed to provide them with financing for

construction, equipment purchases, and

EZ Success 159

SECTION 6

working capital, for a total projected investment of $4 million.

Both Upper Manhattan and the Bronx have

been very proactive in marketing and utilizing

the EZ’s tax incentives, particularly to smalland medium-sized businesses. They have

mailed notices, distributed flyers, and conducted workshops on the incentives. And they

have also worked with firms that have

received EZ loans to make sure that they hire

local residents, as required for the wage tax

credits. An impressive range of projects has

benefited from this approach. For instance, an

integral part of the Bronx at Work program is

utilizing the array of EZ and complementary

city and State tax benefits available to

employers as a powerful incentive to hire

employees from the zone. Approximately $17

million in facility bonds have been authorized

in Manhattan for General Motors’ construction of the East Harlem Auto Mall, which is

expected to create more than 250 permanent, high-paying, full-time jobs.

In its 10 years, several of the New York EZ’s

many projects have been particularly notable

for their ambitious accomplishments. For

instance, when A.L. Eastmond & Sons—a

major manufacturer of industrial boilers and

steel storage tanks based in the Hunts Point

section of the Bronx EZ—wanted to expand

its plant, access to capital was scarce. An

additional 60,000 square feet of production

space was needed to enlarge Eastmond’s

facility and hire 50 skilled workers. With

$250,000 in private capital, Eastmond

approached the Bronx Overall Economic

Development Corporation and secured a

$450,000 loan. And Eastmond was able to

train its new employees, many of them EZ

residents, for high-paying union jobs with

an EZ grant of $350,000. An additional

$100,000 low-interest loan was secured from

Fleet Bank through the Empire State

Development Corporation, New York State’s

economic development agency. These funds
160 Spotlight on Results

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were used to buy the space directly behind

Eastmond’s existing headquarters. The success of this project, as Eastmond president

Leon Eastmond puts it, is reflected in the fact

that “A.L. Eastmond is committed to

employing and retaining workers in the

Bronx so we can continue our expansion into

new markets”—a goal fully supported by EZ

funding and assistance.

Across the Harlem River in Upper Manhattan,

other equally imaginative projects have

empowered residents with more access to

economic opportunity and good jobs. An

outstanding example has been the development of a credit union in the Washington

Heights neighborhood, whose residents formerly had little real access to capital and

were forced to use conventional banks that

often required huge loan collateral or

charged exorbitant interest rates. To remedy

this lack of affordable credit, two young public school teachers quit their jobs to form a

credit union. The resulting Neighborhood

Trust Federal Credit Union seeks to provide

credit and banking services to EZ residents.

The credit union got off to a strong start—

more than 50 people showed up to open

accounts in its first 4 days of business, large

private banks pledged nearly $500,000 in

low-interest deposits, and the EZ made a

$40,000 grant and nearly $250,000 in lowinterest loans. The credit union has since

prospered, opening up many new paths to

economic opportunity for EZ residents.

Finally, this being New York, the EZ has even

facilitated more show business and culture in

both Upper Manhattan and the South Bronx.

In Upper Manhattan the EZ has assisted with

the development of Broadway Video, a $1.1

million postproduction facility. In partnership

with Citibank, the EZ lent Lorne Michaels, the

producer of the Saturday Night Live television

program, almost $900,000 to buy equipment

and renovate an existing building thus investing in a growing business that is creating

high-technology, high-paying jobs for Upper

Manhattan residents. Broadway Video, which

does video duplication, storage, and transmission of tapes by satellite, is now located on

the site of a former automobile plant, where

it has heavy freight and power capacity and

access to public transportation. Its projected

first-year revenues were $2 million, and it

expected to create at least 20 high-technology

and other jobs for EZ residents.

In the South Bronx more than $500,000 in EZ

funding is enabling the Pregones Touring

Puerto Rican Theater to expand in a neighborhood widely recognized as the burgeoning

Bronx Cultural Corridor. Pregones has distinguished itself as an established theater group

specializing in Hispanic theatrical plays and

performances. One of the theater’s administrators, Rosalba Rolon, explains that “this funding

marks a major milestone in our 15-year history

of providing residents from across the city and

tourists alike, with an affordable way to access

cultural, artistic, and educational events.” 

In bringing these and its many other projects

to fruition, the New York EZ has had to meet

the challenge of nurturing cooperative relationships and partnerships among the State,

city, and local development corporations,

while maintaining the EZ’s commitment to a

grassroots approach. “The EZ’s board has facilitated this coming together,” Marion Phillips

explains. “It has balanced varied interests to

build community.” In meeting this challenge

and pursuing its many successful projects, the

New York EZ thus has ensured future sustainable development for the people and communities it has served.

For more information, contact Corporate

Secretary Marion Phillips of the New York

Empowerment Zone, Empire State
Development Corporation, at (212)

803–3239 or www.nyc.gov/html/om/

html/nyez.html.

Philadelphia Creates

Strong Community

Institutions

John F. Street, Mayor

of Philadelphia

Philadelphia,

Pennsylvania, EZ

“Our two most important

accomplishments are the community-based organizations

we’ve created and the new

institutions we’ve helped to

start,” said Eva Gladstein, head

of the Philadelphia EZ. “These

organizations are facilitating a

variety of strong partnerships,

which in turn have led to a range of new

institutions—from business loan pools for

each neighborhood to local funding streams

to efforts to transform vacant lots—that will

continue to benefit their neighborhoods long

after the EZ has finished its work.”

By collaborating with local planning boards,

community-based organizations, businesses,

and city agencies, the Philadelphia EZ has

worked toward a common vision built upon

each neighborhood’s strengths to create

vibrant communities in three designated subzones, which together cover a 2.5-squaremile area. Two of these neighborhoods—the

American Street and North Central Zones—

border each other and are located in the

city’s north central section. The third community—the West Philadelphia Zone—is located

west of center city bordering Fairmount Park.

As of 2003 more than 200 loans, ranging

from $400 to $3.5 million, had been made

EZ Success 161

SECTION 6

to almost 140 businesses in the EZ, creating

more than 1,100 new jobs for EZ residents.

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 businesses to help them see how they can use

wage tax credits, which also helps to introduce them to the broader EZ goals,” noted

Gladstein. And this effort ties

back into the EZ’s strategy of

institution building.

A prime example of the EZ’s

effective institution-building

approach is its Neighborhood

Funding Stream projects in the

American Street and North

Central communities, which will

last long beyond the EZ and

support the sustainability of its

efforts through several mechanisms. The funding streams will

continue the role of the community trust boards, the EZ’s

governance bodies, which are responsible for

identifying community needs and overseeing

funding, investment, and spending. The

funding streams are helping the EZ’s programs to attain sustainability by making

grants to projects that meet EZ principles and

address its identified funding priorities. The

first phase of these projects—making low-risk,

short-term loans, underwritten by the community lending institutions developed by the

EZ—is nearly complete. Since January 2004

approximately $7 million derived from loan

principal repayment has been deposited with

the city’s funds manager to begin building

the funding streams. In the second phase the

community trust boards are in the final

stages of determining funding priorities, and

the first disbursement of funding stream

grants will be made in early 2005. 

To work toward meeting two of its sustainability objectives—to develop strong, replicaJohn F. Street, 

Mayor of Philadelphia
162 Spotlight on Results

SECTION 6

ble program models, and to create a solid

foundation for other public and private

investments—the EZ undertook

early action planning for the

Mayor Street Neighborhood

Transformation Initiative, which

involved staff from 8 city agencies, 24 business leaders, and 8

community-based organizations

(CBOs), along with more than

300 residents participating in

community meetings. The EZ’s

work in support of the

Neighborhood Transformation

Initiative has since fostered the

creation of two new CBOs, the

American Street Business Advisory

Committee (ASBAC) and the Girard Avenue

Coalition. In cooperation with the EZ, ASBAC

and its members have developed a security

program and a plan for streetscape improvements for the area and supported projects to

promote a cleaner business district. Through

this effort, ASBAC members have made inkind contributions to the Clean Corridors

program; worked in partnership with city

agencies to address neighborhood problems;

such as nuisance properties and illegal

dumping; and sponsored the maintenance of

vacant lots.

Along Girard Avenue—an important commercial corridor that cuts through two EZ

neighborhoods—the EZ has facilitated the

formation of the Girard Avenue Coalition,

which has focused on planning and implementing streetscape improvements and on

strengthening the relationships among the

corridor’s businesses, CBOs, and residents.

In addition, the EZ has forged a partnership

with the Local Initiatives Support

Corporation to support the coalition’s

efforts. This partnership has obtained foundation funding to hire a full-time community organizer and to complete a vision

statement. 

Resources leveraged to support the Girard

Avenue Coalition have included more than

$200,000 in funding from the

William Penn Foundation and

the Delaware Valley Regional

Planning Commission to devise

a comprehensive economic

development and land use

strategy. Additional funds were

secured to develop a public art

and gateway project on one

end of the corridor; the city is

investing $1 million in related

streetscape improvements. And

the State has made a $5 million

grant for acquisition, infrastructure, and streetscape improvements. Finally,

the coalition has recently formed an independent nonprofit organization that will

soon hire its own executive director and is

guided by a board of directors composed of

community, business, and institutional representatives. 

Most important, the EZ’s work has had an

impact on broader city policy. For instance,

the city is replicating the EZ’s model for

vacant land stabilization in six areas, which

has been critical to the effort to remove

blight and physically transform neighborhoods. The EZ’s work has also led the city

to reform its relocation policies. The city has

even begun to consider the EZ’s work on the

American Street and the Girard Avenue corridors as a model for other neighborhood economic development efforts.

The EZ has also emphasized workforce development. For instance, during the past 4

years, the EZ has benefited from Philadelphia’s receipt of a Youth Opportunity

Grant from the U.S. Department of Labor.

This grant has supported a partnership of the

city, the school district, the Workforce

Investment Board, the Youth Council, and

Eva Gladstein, Philadelphia

Empowerment Zone
nonprofit organizations that is developing a

sustainable system to ensure that EZ youth

have access to the education, training, and

services needed to make the transition to

adulthood. The partnership’s multipurpose

youth opportunity centers in each EZ neighborhood are friendly and comfortable places

for both in-school and out-of-school youth.

Finally, the EZ has also encouraged sustainable community

development by working to fill

gaps in city housing programs.

In each EZ neighborhood, the

community trust boards have

created housing loan pools to

provide self-sustaining resources

for housing development. Other

programs support housing counseling and rehabilitation. In West

Philadelphia, for instance, $2 million in EZ funds is being matched

with almost $4 million in

Community Development Block Grant funds

for several housing rehabilitation and construction efforts. 

In pursuing these ambitious and successful

projects, one of the EZ’s primary hurdles has

been to manage the expectations of EZ

stakeholders who want dramatic improvements in their communities. This has involved

the EZ’s leaders in educating stakeholders

about the reality of incremental change and

the necessity of careful financial checks and

balances. “It has been important to create a

long-term vision to sustain people’s hopes

through the EZ process of long-term change,”

explains Gladstein. The Philadelphia EZ’s sustainable success testifies to the effectiveness of

this approach.

EZ Success 163

SECTION 6

For more information, contact Executive

Director Eva Gladstein, Philadelphia

Empowerment Zone, at (215) 686–0457

or www.empowermentzone.org.

A Safe Haven for

Economic

Opportunity

Robert A. Baines,

Mayor of Manchester

Manchester, New

Hampshire, EC

“Without some sense of personal

security, it appeared doubtful

that we could alter the economic

course of the community,” said

Bob MacKenzie, director of planning and community development for

Manchester, New Hampshire, contemplating

his city’s successful 10-year run as an EC.

“Safety was paramount. It had to come first.”

Manchester’s strategic vision for change had

as its foundation the stabilization of the community’s urban fabric. “The vision was the

result of a real grassroots campaign that

involved the entire neighborhood,” says

MacKenzie. “At the time, Manchester was in

tough shape and it was clear that concerns

about security were scaring people away.”

Using roughly a quarter of its $3 million,

the Manchester EC funded a community

policing program. “People need to know

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,

Robert A. Baines, 

Mayor of Manchester
164 Spotlight on Results

SECTION 6

bicycle, and horseback to patrol the neighborhoods. Since the program’s inception in

1995, overall calls for service

dropped 22 percent, while

criminal activity declined 62

percent.

“A program like this can be only

as successful as the citizens of

the community want it to be,”

says Kincaid. “The people here

moved this idea forward. They

embraced us. There’s a very

strong commitment to making

this neighborhood safe.” Kincaid

also credits the police department’s commitment to community policing as well as the motivation and

dedication of individual officers.

Some of the largest inroads have been made

within immigrant populations, “groups that are

traditionally afraid of the police,” he says.

“Those who have been here longest now introduce us to new community members. There’s

a high level of trust.”

The unit currently has 14 officers, including a

full-time senior services officer that works

with the elderly. Despite moving the substation to a more strategic venue, officers continue to hold personal safety workshops at

the community center. In 1998 and 1999

Manchester’s Community Policing Program

received HUD’s John J. Gunther Best Practices

Award in the area of Economic Opportunity

in Community Policing.

With security concerns being addressed, the

EC turned its attention to economic opportunity. “The cornerstone of our program was

the creation of a neighborhood resource

center,” says MacKenzie. “This was the single

largest investment of EC funds,” he says,

“roughly half of our allocation.”

Wanting the center “to be a true partnership, the city asked for collaborative proposals on how to build and manage this

facility,” says MacKenzie. Southern New

Hampshire Services, Catholic Charities of

New Hampshire, and Southern

New Hampshire University

agreed to partner with the city to

make the vision a reality. In

October 1998 the Manchester

Community Resource Center

(MCRC) opened its doors 

with the mission of helping residents attain economic self-sufficiency and improve their overall

standard of living by providing

access to employment, education, information, and referral

services in a multicultural environment. In August 2003 the collaborative—having created a fully operational,

financially viable 501(c)(3) organization—

turned over management of the MCRC to

a volunteer board of directors.

“This is an exciting time for us,” says Renie

Denton, MCRC’s executive director, “but

we’ll need to be vigilant if we are to

achieve sustainability.” In order to leverage

limited funds and avoid duplication of services, MCRC forms partnerships with a variety of agencies and organizations. “We

have to be creative because we work with

the most difficult to employ. Many are

immigrants but others have criminal or

poor work histories,” she says.

MCRC’s offerings include classes in basic and

conversational English; soft skills such as personal hygiene or how to get along with

coworkers; industry-specific training, driver’s

education, and life skills. “Our industryspecific training has been effective in not only

getting jobs for EC residents, but putting

them on a career path,” says Denton.

“Graduates of our pharmacy tech program

can get national certification and earn $15

an hour within the first year.” The pharmacy

tech training was MCRC’s first blended

learning program. This family-friendly program combines a specific number of classes

R.S. MacKenzie, 

Manchester EC Director
with online lessons, allowing students to do

some work from home.

Job placement services and job fairs are

among the MCRC offerings. In 2004 the

center helped 294 people find employment

and it sponsored 4 job fairs that were

attended by 120 people. Some 149 EC residents in search of a high-school diploma

attended GED classes and 213 individuals

took part in English as a Second Language

classes. 

Chief among the MCRC’s supportive services is the IRS Tax Return Preparation program. In 2004 some 300 returns were

completed with an average tax refund of

$1,200. The center also coordinates community events such as the annual

Celebration of Cultures. 

While MCRC prepares residents for jobs, the

Amoskeag Business Incubator (ABI) encourages job creation. Located in the city’s

Millyard District, ABI provides a supportive,

entrepreneurial environment that stimulates

the growth of resident businesses. 

The Millyard District, which abuts the

Merrimack River, was a dominant force in

Manchester’s economy. For more than 150

years, until the last yard of cotton was woven

in March 1975, the Amoskeag Mills not only

shaped the cityscape but the lives and fortunes of the city’s residents. Roughly 4,900

people reside in the 0.8 square-mile EC,

which encompasses the historic Millyard

District.

Today, it is technology rather than textiles

that is finding a home in the EC. “About 50

percent of our tenants over the last few

years have been software developers,” says

Julie Gustafson, executive director of the

Amoskeag Business Incubator. In addition to

high-technology firms, the types of companies that have resided in the incubator

include light manufacturing, service, and

distribution. Incubator companies have creEZ Success 165

SECTION 6

ated more than 170 jobs in Manchester. In

fact, one incubator graduate that now

resides in more than 10,000 square feet in

Manchester’s Millyard has hired 55 employees and recently acquired a spinoff company.

With a $175,000 grant from the EC, ABI has

leveraged an additional $266,000 in contributions to provide both affordable office

space and technical assistance to start up

companies. “We work closely with several

partners to offer workshops of interest to our

businesses,” Gustafson says. Topics have

ranged from creating newsletters to alternative financing and health insurance. “We also

have professors from Southern New

Hampshire State University come in and critique product demonstrations,” she says.

As companies graduate into the greater community—16 have done so since ABI became

operational in 1997—the incubator adds new

tenants. ABI historically has been either at, or

close to, 100-percent occupancy. The maximum number of companies to reside in the

incubator was 23.

Several larger projects are underway in the

Manchester EC and while no EC funds have

been expended on these projects, improvements in the social and business climate

have contributed to their viability. A 10,000-

seat civic center opened its doors in

November 2001. This $67 million facility

has been a boon for residents and businesses in the EC. The SEE Science Center

and the nonprofit group FIRST share space

in the same building and offer unique educational experiences for children and young

adults. FIRST’s mission is to enhance knowledge of technology and electronics through

local, regional, and national competitions

that feature school-age children and young

adults paired with engineers from private

businesses.

“If we’ve done nothing else, we’ve changed

the perception of the city,” says MacKenzie.
166 Spotlight on Results

SECTION 6

“Ten years ago Manchester was a dying, old

mill town. We’ve turned it around. And,

while our center city neighborhoods are not

perfect, people are choosing to go into

them. Manchester is viewed as a fairly progressive city—one people want to move to,”

he says. MacKenzie admits that although the

EC designation and all that it entails will be

missed, “Manchester has in place the partnerships and viable community organizations to

keep us moving in the right direction.”

For more information about the Manchester

Enterprise Community, contact Louise

Donington at (603) 624–6450.

Innovation Key

To Opening

Economic Doors

Phoenix, Arizona, EC

“The enterprise community

may be expiring, but I’m

proud to say that the majority

of the programs it put in place

will carry on,” says Jennifer

Harper, project director for the

Phoenix EC. “Through the EC

program, we’ve been able to

give community leaders the

training and information necessary to attract

grant monies and sustain their programs.”

EC projects have leveraged roughly $21 million in private funds and $64 million in public monies for business assistance, job

training and linkage, housing, and neighborhood revitalization programs for its residents,

according to Harper.

Innovation is at the heart of the Phoenix EC’s

strategic vision for change. Using portions of

its $3 million allocation as seed money to

test ideas, the EC has encouraged businesses,

neighborhoods, and nonprofits to explore

new ways of tackling old problems.

One novel approach to workforce development is the EC’s Community Telecom System

(CTS). Using telemarketing and voice messaging technology, the CTS contacts up to

5,000 residents each month, providing timely

information on employment opportunities

and job training. It serves as a vital link

between employers, nonprofits, and residents. “Our residents’ phones start ringing

whenever we have something of interest to

impart to them,” Harper says. 

Response to the CTS has been positive.

“People routinely call back wanting more

information—checking to see if they got the

right address or if the employer is recruiting

for a certain type of skill set,”

she says. The telecom system

recently disseminated news

about a job fair that attracted

more than 800 attendees,

many of whom learned about it

through the CTS.

CTS is not a subscription service. “We were able to tie this

system in to all residents within

the EC that have telephones,”

says Harper. Customer satisfaction is evidenced by the fact

that since the program started

in 2003 “not a single EC resident has said, ‘Take me off,’” she notes.

Located in central Phoenix, the EC is a 20-

square-mile area that is home to more than

89,000 people. When the city applied for

the EC designation in 1994, the population

was just more than 70,000. Although

community-based partnerships and sustainable community development have played

a major role in the EC’s development, it is

economic opportunity that has received

the most attention. As the EC’s 1999

annual report notes, “Only with a job, an

income, and the opportunity to accumulate

Phil Gordon, Mayor of Phoenix
assets can residents hope to break out of

the cycle of poverty.”

The Phoenix EC has expended more than $1

million on a variety of job-training and placement programs to help increase the employability of residents. An example is Project

STRIDE (Successful Training Resources for

Individual Development), one of the first to

receive EC funding. The program offered lifeand soft-skills training, with job placement as

the ultimate goal. Project participants ranged from former

gang members to newly

arrived immigrants to the

United States whose lack of

English skills and American job

skills caused significant barriers

to employment. Corporate participants in Project STRIDE—

such as Bank of America, B.F.

Goodrich, Hadco Phoenix,

and Marriott Hotels—provided

training and, often, jobs to

residents completing the

program.

It also has worked to ensure that

residents with jobs have the opportunity to

advance. The Incumbent Worker Training

Link program, supported with CDBG funds,

seeks to upgrade workers’ skill levels at businesses with 300 or fewer employees. There

have been classes in computer technology,

safety, customer service, sales, and Spanish. 

One of the eight companies requesting assistance through the program was Auction

Systems Auctioneers & Appraisers of Phoenix,

which sought Spanish language training for

its employees. The Greater Phoenix Chamber

of Commerce recognized the owner of this

company as Small Business Person of the

Year. 

Job retention and creation has been a longstanding priority within the EC. As a result, a

EZ Success 167

SECTION 6

collateral assistance loan program received

the single largest allotment of EC funds—

$416,000. That money, along with $700,000

in CDBG funds, leveraged an additional $3.6

million to help secure loans for existing businesses from financial institutions. The

EXPAND (expansion assistance and development) program partners with lenders to

make credit available to growing businesses

by providing additional collateral security for

4 years for requested loans. EXPAND will provide as much as 50 percent of

the loan, up to $100,000, to

the lender as collateral. In 2004

EXPAND helped create or

retain some 500 jobs, according to Harper, “with the potential for 1,000 additional jobs.” 

One of the ways businesses

find out about EXPAND and

other resources is through the

business retention and expansion program. Personal visits to

businesses throughout the EC

are key to the program’s success. Through the visits, EC staff

members determine needs and connect businesses with nonprofits or governmental entities that can offer guidance or provide

resources. The program, which began in

2001, includes about 300 site visits each year.

“What is especially nice about this program is

the way in which we’ve been able to tailor

services to the individual businesses,” says

Harper.

Tailoring programs to address the challenges

faced by residents in neighborhoods undergoing revitalization has been an EC focus.

“Even though we’re at the end of the era for

our enterprise community, we are fortunate

in that we’ve been able to leverage $10 million in CDBG, HOME, State, and city funds to

make infrastructure improvements, rehab

Jennifer Harper, Phoenix EC
168 Spotlight on Results

SECTION 6

homes, acquire land, and proceed with

blight abatement,” says Harper. 

The Capital Mall Association (CMA), a nonprofit EC organization, has used EC funds to

acquire lots on which it currently is constructing nine infill homes. This EC-funded

project received additional support through

mortgage assistance of up to $10,000 in

downpayment costs for certain low- and

moderate-income homebuyers.

EC funds of $90,000 were able to leverage

some $240,000 in CDBG and HOME funds

and $700,000 from private lenders to build

30 infill homes in the South Phoenix Village

neighborhood. Ninety additional units are

planned. 

“The EC designation has really been a plus for

us in terms of leveraging funds,” says Harper.

“With our partners we have made key

improvements—sustainable improvements—

that will continue long after the EC has gone

away,” she says. “Our community leaders are

more technically astute and the capacity exists

for them to oversee the program long after

the EC has gone.”

For more on the Phoenix EC, contact 

Project Director Jennifer Harper at (602)

262–4730.

Sustainability

Through

Partnerships

Virginia DuPuy, 

Mayor of Waco

Waco, Texas, EC

“The community partnerships

that have been developed over

the last 10 years will have longlasting effects on the economy

and quality of life here,” said

Larry Groth, city manager in Waco, Texas,

reflecting on the accomplishments of the

local enterprise community development

commission (ECDC). “The community has

always been willing to come together, but

our EC designation helped us build some

strategic relationships both within and outside of the city’s boundaries that will continue to pay dividends.” 

Although increasing economic opportunity

has been the cornerstone of the Waco effort,

the ECDC has influenced physical and social

development within its borders. “Job creation

was by far the biggest need,” says Assistant

City Manager George Johnson, Jr., “and we

knew that, to achieve it, we would have to

maximize our resources and encourage

innovation.”

At its inception in 1995, the ECDC adopted

a strategic vision that was holistic in its

approach but that emphasized an improved

standard of living within the EC through

enhanced employment options. By drawing

upon the experiences and expertise of EC

residents, businesses, nonprofit groups, and

educational institutions, the resultant vision

foresaw a community empowered to bring

about change.

The Waco EC covers roughly 20 square miles

and encompasses not only the city’s downtown but parts of two other

municipalities: Lacy Lakeview

and Bellmead. The district is

home to more than 37,000

people. Many communities

within the EC once housed

thriving business districts and

vibrant neighborhoods. 

To stimulate economic development, the ECDC used more

than a third of its funds to beef

up the services offered by the

business resource center and to

Virginia DuPuy, Mayor of Waco establish a revolving loan fund.
“The intent was to give startup businesses and

entrepreneurs—many of whom had good

ideas but were not creditworthy—the opportunity to blossom and grow, thereby creating

new jobs,” says Johnson. Using

approximately $785,000 in EC

funds and $262,000 in program

income, the center has made 31

loans, with the average loan

totaling a little more than

$36,000. An additional

$748,000 in funds from the

community has yet to be

loaned. The revolving loan fund

has created or retained 153

jobs.

The business resource center

provides access to the information and training small businesses need to

succeed. It also assists businesses in securing

credit or additional capital. As a result, the EC

has kept or gained 134 jobs.

To prepare EC residents for new or better jobs,

several educational institutions and nonprofits

have provided computer training, job-readiness clinics, and industry-specific skills training

in areas such as carpentry and small engine

repair. More than 2,700 EC residents have

benefited from these offerings.

Next door to the business resource center

sits the Brazos River Plaza, which provides

below-market-rate office space to businesses. This 13,000-square-foot building,

once a supermarket, was donated to the

Eastern Waco Development Corporation

(EWDC), which then gutted the structure.

With just a third of the floor space yet to be

renovated, the facility features upgraded

utilities, new landscaping, and ample parking. 

Using $145,000 in EC funds, the EWDC was

able to leverage nearly $300,000 in cash

and in-kind contributions to create the postEZ Success 169

SECTION 6

incubator space. Although the bulk of the

contributions have gone into refurbishing

the building, some funds are subsidizing

occupancy and utility expenses. Brazos River

Plaza currently is home to the

office of a Texas State

Representative and a home

healthcare company. The political office has 1 intern and 3

permanent employees, while

the healthcare office has 2

onsite workers and between 9

and 15 employees working in

private homes, according to

James E. Rice, Jr., secretaryadministrator of the EWDC

board. Rice is looking forward

to a new tenant, a branch

office of a Dallas-based tax

preparation firm.

“Our mission is to furnish affordable retail

and office space,” says Rice, “but, more than

that, our job is to help revitalize this corner of

Waco.” To do so, Rice says his organization

has had to become the community’s conscience. “We encourage by example.” A case

in point, he says, was the proposed sale of a

building across the street from Brazos River

Plaza for use as a tavern. “We convinced a

local church to purchase it and turn it into a

center for computer literacy. We’re working

with them now to get grants to renovate the

building.”

A major blow to this community came in

1990 when Paul Quinn College, a Historically Black College, relocated to Dallas, thus

vacating its East Waco campus. “Before we

got involved, the grass was 10 or 12 feet

high and people were living in the abandoned buildings doing all sorts of things,”

says Rodney Clark, executive director of

Quinn Campus, Inc. “Now we’re looking at

transforming the site, turning it into a multifaceted complex with facilities for educaGeorge Johnson, Jr. 

Assistant City Manager, Waco
170 Spotlight on Results

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tion, technology, economic development,

culture, and recreation,” he says.

An $83,000 investment of EC funds was used

to leverage $1.2 million from the city of Waco

to renovate a building for use as a civic center.

The design of this multipurpose facility, which

opened in fall 2004, provides for community

use and allows for overflow business from the

convention center. The EC investment has

sparked interest in the site from other nonprofit groups including the YMCA, which is

constructing a 32,000-square-foot facility that

will offer state-of-the-art amenities such as a

swimming pool; aerobics, youth, teen, and

computer centers; classrooms; locker rooms;

and fields for football and baseball. As the

city’s EC designation was set to expire at the

end of 2004, five buildings were under renovation and more than $7 million had been

committed to renewing the Quinn campus.

Not only does the Quinn Campus exemplify

sustainable community development, it also

highlights the importance of partnerships.

Habitat for Humanity, Faith Covenant

Services, Rapoport Academy, and the Baylor

University internship program are all working

on the Quinn Campus offering services to EC

residents and other community members.

Partnerships also are key to the success of

Bellmead-Lacy Lakeview Community Haven,

which administers home construction,

healthcare, and youth programs. Since its

inception in 1995, Community Haven has

served close to 5,000 EC residents. The EC

provided $180,000 in funds to get the program off the ground. Additional public and

private funds of $126,000 and in-kind contributions of $40,000 have allowed

Community Haven to move forward.

“It takes a whole year for us to construct a

house, but it’s worth it,” says Alvin Patterson,

project coordinator for Community Haven.

Patterson uses students in the Junior ROTC

programs in the La Vega and Connally

Independent School Districts to construct

the homes. “They do anything we let them,

from clearing the lot to squaring the slab,

framing the doors and windows, and helping with the sheet rock and landscaping,”

he said. The homes are then sold to firsttime buyers. “So far, we’ve built four in

Bellmead and four in Lacy Lakeview.” 

Community Haven partners with Neighborhood Housing Services to construct the

homes. It works with local school districts

to find surplus land and the city of Lacy

Lakeview waives fees and helps haul off

debris. “It’s a wonderful, collaborative

effort,” says Patterson.

The creation of two healthcare clinics has

allowed Community Haven to keep residents in school and on the job. Initially

based in local schools, the clinics have

since relocated to other buildings within

the communities. The healthcare component is another collaborative effort, says

Patterson, in that Community Haven has

partnered with the Family Practice Center

to obtain a foundation grant to allow the

clinics to operate.

Community Haven also provides afterschool

recreational, tutoring, and charactereducation programs using students from

Baylor University.

“Our group is focused on a 60-square-block

area in the EC,” said Mike Stone, executive

director of Waco Community Development

Corporation (WCDC), “and our focus is easy

to remember—HOME.”

The “H” is for housing. “We provide counseling and construction,” said Stone, “to get

people into homes.” WCDC has helped 11
families find homes, built 5 houses, and renovated 2 others.

Under “O” comes opportunities. Some 600

potential homebuyers have contacted

WCDC. “About 140 were serious and filled

out an intake form,” he says, “and 75 are

now in active credit counseling.”

“M” stands for maintenance. With many

homes approaching the 100-year mark,

WCDC recruits groups to service homes in

the neighborhood.

Economic development is what the “E” represents. “We’re constantly talking to small

business groups, telling them about the

opportunities here,” he says.

Having received $38,000 from the EC in

2001 to cover startup costs, WCDC has

attracted more than $200,000 in outside

funding. “The EC grant allowed us to pull

together demographic and housing info and

create a master plan,” says Stone. “That document has made a world of difference and

EZ Success 171

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allowed us to make real inroads in the banking community.”

A different type of housing—transitional—is

the focus of Compassion Ministries, the

recipient of a $50,000 EC grant. The funds

allowed Compassion Ministries to build a

duplex behind its new 10-unit shelter and

to renovate space for offices, community

use, and a clothes closet. “We now have a

capacity of 60 beds—12 families and 8 singles,” says the group’s executive director,

Jill McCall. “This was truly a community

effort. Individuals, private foundations, and

government entities all worked in an

aggressive manner to ensure that homeless

families with children were not without

some place to go,” she says.

As Waco’s Enterprise Community Development Commission prepares to disband, its

focus is on ensuring the sustainability of the

organizations, structures, and partnerships

that have been created during its decadelong existence. “We’ve worked to keep the

entire community plugged in and participating,” 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

aprilh@ci.waco.tx.us.
172 Spotlight on Results

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The Baltimore EZ invested $1 million in a parking

garage for a $300 million University of Maryland

biotech park in the Poppelton community.

Camden Crossing is a new market-rate housing community 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.

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. 

Albemarle Square has 340 units for rental and ownership. The Baltimore EZ helped to facilitate the resident engagement effort and land use plans.
EZ Success 173

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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.

Mayor Martin O’Malley addresses the Baltimore business 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.

A community cleanup in Self Motivated Community

People’s Village Center.

New housing being constructed in the Empowerment

Zone.

Baltimore 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. 

Prairie Park housing units is another example of

leveraging EZ Social Services Block Grant funds. 

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.

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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The Renaissance Center, which provides 100 assisted-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. 

Barbara Wright, president of Wright Fit Uniforms,

Inc., used the direct grant initiative to expand her

business and create jobs for zone residents.

The Chicago Better Housing Association used Social

Services Block Grant funds to leverage additional

funds for the construction of new units. 

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.

Chicago Empowerment Zone
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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 businesses 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. 

Clark Park’s Early Childhood Playground provides

new recreational opportunities for area residents.

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 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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Toyia Watts, president of Communities United

Together, talks with residents about neighborhood

empowerment and community policing.

Bridgewater Interiors, a minority-owned company, is a

major supplier to General Motors.

Shorebank Development Corporation brought new

vitality to the zone. Since 1997 it has spent $1 million

to purchase residential properties and grant commercial loans. 

The Detroit Empowerment Zone allocated $13 million

for affordable housing through Housing and

Community Partners.

Detroit Empowerment Zone 
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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 Harlem Center, an $85 million, 300,000-squarefoot building with office and retail space at 125th

Street and Lexington Avenue, was completed in

November 2002 after New York EZ investments in

commercial real estate nearby proved financially

successful.

The East Harlem Auto Mall was financed with taxexempt New York EZ facility bonds.

The Harlem Children’s Zone, a $44 million headquarters for a nonprofit educational organization, home to

a K–5 charter school and medical and dental clinics at

125th Street and Madison Avenue. The building was

dedicated in January 2005 with Congressman Charles

B. Rangel as speaker.
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The New Leaf Café in Ft. Tryon Park received funding

through a New York EZ grant.

A New York EZ loan helped to finance the new

Gotham Plaza in Upper Manhattan.

La Marqueta, the former Moore Street

Market, is now home to 14 independent

vendors serving the Latin American

community in Brooklyn.

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.

New York City Empowerment Zone
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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. 

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.

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.

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.

Philadelphia EZ
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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

Philadelphia skyline.

I Saw a City Invincible, the new mural on the South

Jersey Legal Services building in the Camden EZ illustrates 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 provides up to $2,500 in awards to

local residents to help cover closing costs when purchasing a Royal Court Townhome. Applicants must

reside in the EZ and secure a mortgage for the

townhome.

Philadelphia–Camden Empowerment Zone

The USS New Jersey, built in the Camden-Philadelphia

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 provides technical assistance to help use this museum as

a source for employment and training opportunities for

EZ residents.

Camden EZ
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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. 

The Waco EC helped to finance startup

costs of the Waco Community

Development Corporation, which constructs new homes and focuses on related

economic development issues to revitalize

a formerly neglected area of north Waco.

The Business Resource Center, located next to the

Brazos River Plaza, used Waco EC funds to create

a revolving loan fund that has made more than 30

loans to businesses to stimulate economic development within the EC.

The Connally Community Clinic is one of two community clinics established in an underserved area of

Lacy Lakeview with financial assistance from the

Waco EC.

Waco Enterprise Community

Compassion Ministries’ newly renovated headquarters and community center, funded in part by the

Waco EC, provides office space, a clothing closet,

program meeting space, and an area for residents

to receive visitors.
EZ Success 183

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Dental clinic located in the I.G. Homes Boys and

Girls Club was among the first EC funded project.

Gene Blue and the Phoenix Opportunities Industrial

Center (OIC) work with the EC to increase the

education and economic opportunities of lowincome Phoenix area residents by providing 

various skills training and education programs.

Phoenix Enterprise Community

The Arizona OIC facility provides job-skill training

classes for EC residents.

EC funds were used to leverage private dollars to

complete this style of single family home in the

Capital Mall EC neighborhood.
184 Spotlight on Results

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Teens settle in to take the GED exam at the

Manchester Resource Center, which was financed

partly through a Manchester EC grant.

Patrolling on bicycle or horseback, Manchester’s

Community Policing Unit, financed partly by the

Manchester EC, has had the dramatic impact of

reducing neighborhood crime and enhancing the

city’s overall sense of safety.

In partnership with The Caregivers and the

Manchester EC, a member of the Community

Policing Unit helps to deliver Valentine treats to

elderly shut-ins in the EC neighborhood.

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 companies. One beneficiary is James Andrus (above),

president of Netro City, whose business intelligence

software company now employs about 10 people.

Manchester Enterprise Community
Spotlight on Results

APPENDIX:


Current Renewal Communities 


and Empowerment Zones


as Designated by HUD

APPENDIX


HUD DESIGNEES 

Renewal 

Communities 

(RCs)–40 

Urban (U)–28 

Rural (R)–12 

Alabama 

Greene-Sumter (R) 

Mobile County (U) 

Southern Alabama (R) 

California 

Los Angeles (U) 

Orange Cove (R) 

Parlier (R) 

San Diego (U) 

San Francisco (U) 

Georgia 

Atlanta (U) 

Illinois 

Chicago (U) 

Kentucky 

Eastern Kentucky (R) 

Louisiana 

Central Louisiana (R) 

New Orleans (U) 

Northern Louisiana (R) 

Ouachita Parish (U) 

Massachusetts 

Lawrence (U) 

Lowell (U) 

Michigan 

Detroit (U) 

Flint (U) 

Mississippi 

West Central 


Mississippi (U)


New Jersey 

Camden (U) 

Newark (U) 

New York 

Buffalo-Lackawanna (U) 

Jamestown (R) 

Niagara Falls (U) 

Rochester (U) 

Schenectady (U) 

North Dakota 

Turtle Mountain Band 

of Chippewa (R) 

Ohio 

Hamilton (U) 

Youngstown (U) 

Pennsylvania 

Philadelphia (U) 

South Carolina 

Charleston (U) 

Tennessee 

Chattanooga (U) 

Memphis (U) 

Texas 

Corpus Christi (U) 

El Paso County (R) 

Vermont 

Burlington (R) 

Washington 

Tacoma (U) 

Yakima (U) 

Wisconsin 

Milwaukee (U) 

Urban 

Empowerment 

Zones (EZs)-30 

Round I Urban EZs–5 

Illinois 

Chicago 

Maryland 

Baltimore 

Michigan 

Detroit 

New York 

New York 

Pennsylvania/New 

Jersey 

Philadelphia/Camden 

Supplemental Round I 

EZs–2 

California 

Los Angeles 

Ohio 

Cleveland 

Round II Urban EZs–15 

California 

Santa Ana 

Connecticut 

New Haven 

Florida 

Miami-Dade County 

Indiana 

Gary-Hammond-East 

Chicago 

Appendix 187 
APPENDIX


Massachusetts 

Boston 

Minnesota 

Minneapolis 

Missouri/Illinois 

St. Louis/East St. Louis 

New Jersey 

Cumberland County 

Ohio 

Cincinnati 

Columbus 

South Carolina 

Columbia-Sumter 

Tennessee 

Knoxville 

Texas 

El Paso 

Virginia 

Norfolk-Portsmouth 

West Virginia/Ohio 

Huntington/ 

Ironton 

Round III Urban EZs–8 

Arizona 

Tucson 

Arkansas 

Pulaski County 

California 

Fresno 

Florida 

Jacksonville 

New York 

Syracuse 

Yonkers 

Oklahoma 

Oklahoma City 

Texas 

San Antonio 

188 Spotlight on Results 
FY 2005 

U.S. Department of Housing and Urban Development 

www.hud.gov/CR