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THE WHITE HOUSE:
WASHINGTON
May 10. 1999
TOUR OF SWEET AUBURN MARKET and ROUNDTABLE
Mayll.1999
2: I 0-2:30pm (lour)
2:40-3:40pm (Roundtable)
LOCATION: Sweet Auburn Market, Atlanta GA
Gene Sperling
FROM:
DATE:
TIME:
I.
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PURPOSE
To visit this Empowerment Zone location where you can highli£ht the EZ'EC effort th;)t hl1s been a
priority for both you and the Vice President over the last six years. Also, by focusing on
Empowerment Zones, it may make this trip less duplicative of your July trip. which will it)cJude.
but wiH go beyond. Empowerment Zones,
II.
. L;ACKGROUND
See attachment on the Sweet Auburn Market and the roundtable participants.
1lI.
PARTICIPANTS
Pre~brief
YOU
Gene Sperling
Maria Echavcste
Mayor Bill Campbell
Ruby Jones
Councii Member Debbie Stnmes
Secretary Cuomo
Administrator Alvarez.
15 CEO,
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Tour
YOU
Mayor Bill en: ,pbell
Council Member Starnes
Gene Sperling
Marta Echavcstc
Administralor Alvarez
�•
Secretary Andrew Cuomo
15 CEO.
IV.
SEQUENCE OF EVENTS
YOU will be greeled by Mayor Bill Campbell at lhe Atlanta liartsfield Airport.
YOU, the Mayor, and your delegation ofCEOs and Cabinet arrive al the Sweet
Auburn Market :'vhere YOU are greeted by Council Member Debbie Starnes and'
Ruby Jones, Director, Sweet Auburn Market.
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Councilwoman Starnes wil1 give YOU and the delcgatio:1 a brief ovet':icw ofthe
market.
YOU and the delegation will tour the market and stop to speak with selected
vendors. YOU will be followed by the rest of the participants.,
following your walk through the market, YOU will exit the market and take your
seat in a casual horse shoe setting wilh chairs but not table
YOU will participate in a second roundtable discussion with seven local business
representatives, Mayor Campbell. and Rep. Cynthia McKinney.
,
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V.
YOU make brief remarks and then open lt up to a discussion (Mayor Campbell
will moderate)
.
YOU depart.
PRESS COVERAGE
Open
VI.
REMARKS
Spcechwriting will provide opening remarks.
Notecaros will be included in briefing book for dialogue.
VII. ATTACHMENT
1. One page on tour of the: Sweet Auburn Curb Street Market
Ba~kgrour.c. on the market
Background on {our leader
2. !hckgrctl:ld or. Roundtrrblc with L.ocal Atlm:~a Busil1ess Owners
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TOUR OF THE SWEET AUBUIU" CURB STREET MARKET
Background on the Sweet Auburn Curb Street Market:
History
• CurrerJly a par1 of the City of Atlar.!a's Empowerment Zone. the Sweet Auburn O.::rb Street
Market has been operating since 1923. It originally began as:m open-air market in 1918
until the Atlanta Women's Club transformed it in10 an enclosed structure.
• The market is located in the City's historic Sweet Aubu:1l area. the City's first African
American conunercial district The market was in disrepair in 1992 when the City applied
for a Section 1OS loan guarantee 0[$4,9 million to refurbish the facility.
Current Ecol1omic Development
•
•
Approximately 24 business are located withIn the market with total space for up to 35
businesses. These businesses include produce vendors, a florist. a garden center. a seafood
market, and various restaurants. Eight businesses in the market receive direct EZ assistance.
• Businesses with the market often hire residents from the surrounding,EZ neighborhoods and
thereby benefit from EZ tax credits.
• In total. more than $&.3 milllon in federal funding has been directed to the market and its
vendors. These funds include EZ grants to businesses for equipment, CDBO funds for site
improvements and commercial rehabiHtation and Section lOS. loans for cOr.1me;-clal
rehabilitation.
Background on Tour Leader, Ruby Jones:
"Ruby Joltes) Property !tftmagcr. Sweet AuhurIl Curb A/arket
• Ruby Jones will lead the tour through the market
• Ms. Jones is the propeny :1anagcr for the n:arket and is involved in attracti:lg new businesscs
and meeting and developing relationships with :1cighbcrhoQd :esidcats. As propCr1y
mar.agcr she is responsible for lensing, IYlurketing and coordinatir:g evcr.:s at tbe ma~l.:et.
which include voicr registration drives, cooki:lg dcmonslrat;ons, educational tours of the
markets and food drives_
• Since the market is located in the EZ, Ms. Jones vigorously c:lcouragcs the vendors of the
market 10 hire residents from the neighborhood.
• She is also the volunteer coordinator for the Atlanui Downtown Pa;1nership nnd servcs on the
board nfdirectors ofllle Midiown Assistance Center.
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ROUNDTABLE WITH LOCAL ATLANTA BUSINESS OWNERS
Roundtable Participants:
• Seven business people will participate in the roundtable at the market (see below)
• Mayor Bill Campbeil will moderate the discussion.
• Rep. Cynthia McKinney win participate in the roundtable as welL
• All but one of the businesspeople operates a business or invests in the Empowerment Zone
(Jason Slaughter of S&\V International Foods operates his business in a distressed area of
At12' tajust 0 tside of the zone).
J. SalUe Adams Dalliel, Senior Vice Prcsidcf/I, Natiolls Bank ofGeorgia
• Ms. Daniel is an active member of the Atlanta EZ ~nd is a director on its governing board.
• Ms. Daniel wiII talk about NationsBank's commirment to community revitalization around
•
the ontian. She will also talk about her in\'ol\'ement in the EZ and NationsBank partnership
with local CDCs.
• Nations Ba!1k has undertaken a number of activities that support the revitalization of the
Atlanta EZ and other distressed underserved communities. NationsBank partners with two
CDO; located in the EZ --- the Historic District Development Corporation and Summerhill
Neighborhood Development Corporation. NationsBank provides the CDCs with technical
assistance and invests in their projects.
2. John
Mill)
•
Atlerhold~
Chairman ofAderhold Properlies (Developer ofthe Fultoll Bag and COllon
• Mr. Aderhold, ChJinnan of Aderhold Properties, is the developer of the Fulton Bag and
CoUon Mitl project. one of the marquis projects helping to revitalize the Cabbage Town
neighborhood in the heart of the Atlanta EZ.
• Mr, Aderhold will speak to lhe impOrtAnce of federal assistance in the development of the
project. He will also comment on (he impact that the site has had on the surrounding area
and the successful economic return on his investment in the project.
• The developmc:n includes a mixed income residential project with 20610fi apartments of
which 83 arc rC::Jtcd by lo\\,* and moderate-income persons. There is also commercial SP;lCC
at the site, which is expected to create jobs and businesses in the EZ.
• The project used a $1 milhon EZ loan to leverage a $10 million HUD Section 221 (d)4 Joan, a
$4001000 City of Atlanta Loan and over $6 million in Htstoric Tax Credits and Low-Income
Tax Credits. This project has anchored a flurry ofredcve!op!11ent in the surrounding area
including the El.:.fCka restaurant. whose owner is a roundtable participant as welL
�,
•
.
3. Tricia D()flCgOltt Owner ofEureka Restaurant
• Tricia Donegan. owner of this restaurant which opened in the EZ in November 1998,
received technical assistance from the Atlanta One Stop Capital Shop (run by SBA) in
putting together her business plan.
• Ms. Donegan employs 20 people, ofwhlch 10 are EZ residents, enabli:1g her to use the
Empowern1ent Zone- Wage tax credit.
• Ms. Donegan will discuss her success in hiring EZ residents as well as the importance of the
major Fulton Bag and Cotton Mm revitalization project to her decision to locate this small
business in the EZ.
• She also owns a restaurant in another
low~income
East Atlanta neighborhood,
4. KemwtlI Bleakel)', President ofNorth Yards Business Park, LLC
• The Atlanta EZ recently announced a $5 million grant 10 Mr. Bleakely's company, North
Yards Business Park, to de\'elop a brownfields site into a 55·acre industrial park in the EZ
that will cost $25 minton. The EZ investment made this project possible.
• The project is ajoint venture between the Atlanta Development Authority, Antioch Urban
Ministries, and a partnership created by the downtown business community that includes
•
Nonh Yards (the panncrship is known as COPA, the Centennial Olympic Park Area). .
• Kenn"th Bleake1y will talk about the COP A business pannership and why it decided to invest
in the site. He will also discuss the organization '5 perspective on hiring EZ residents.
Lastly, he may comment on recent new commitments from prospective tenants at the site,
including Coca·CoJa.
• North Yards has made a commitment to have its infrastructure contractors hire 50% EZ
residents and has also set a target of having park tenants h:re 50% of their employees from
the EZ.
• The project also received a $50:),000 Brownfields Economic Development 1niiiarive gram
and a $500,000 HUD Section 108 loan to demolish dilapidated strectures and make
infrastructure improvements.
5. SOllJ'lf JOlle~;, Owner ofthe Sweel Auburn Bread Company (lud Sowhci!y Cuisine (note: these
businesses are located ill the markcIl
• Sonya Jones and her husband, Robert Jones, own two shops i:1 the market. They e:nploy six
people, She is a professiomd ehcftraincd at the Culir.ary Institute of America in S"ew York.
Sonya initially owned only the Southcity Cuisine, and loter assumed owncrsllip ofSweel
AU:'Unl Bread Company.
• Sonya Jones will talk about her experience as U slllall business owner in the EZ. She will
comment on the importance of both the EZ funds and the surrounding development to the
success of ber business.
• Ms. Jones's clientele includes employees of tbe adjacent Grady Hospital, Hugh Spauldiog
Children's Hospital, residents of the Grady Homes. public housing and the rC!1l3inmg
community.
•
�..
•
6.
Vivt'an Reid,
Co-O~'f1er
o/Ihe KaJJee Shop ("ote: this business is located in the market)
• Vivian Reid, along with her two sisters, own this store which sells a variety of coffee
products and which has been in business for a year and a half.
• Ms. Reid '.\'iU discuss how owning and operating a small business has jmpTOvcd the Jives of
her and her sisters. She win also talk about the fact that they have been able
employee at the shop who is a Welfare-ta-Work p~icipant.
[0
hire an
7. Jason Slaughter, Owner of S& W Iltfematiollal Foods (note: tlu's business is 1101 located ill
the EZ)
• S&W International Foods was established in 1996 and is a tremendous example of a growing
smail business that n~ceived federal suppon in its startut' phase.
• Jason Slaughter will talk about his deciSion to locate in the city of Atlanta, Although his
•
•
business is not located in the EZ it is In an area that fits the model for a New Market.
Slaughter will comment on the importance of federal assistance in the startup phase, and his
di fficulty at times accessing private capital.
• The company cuts and repackages meat products and manufactures a line of frozen biscuits.
• The company has grov.'1l from J2 employees to a staff of60 over the last several years and
incn:ased saJes from $6 miHion last year 10 expected sales of $13 million for this year,
• Two SBA gua."""anteed loans have helped S&W to add new plants and equipment alJowing the
company to grow significantly. The company has secured contracts with Sara Lee
Corporation, Church's, Popcycs, Wa.l~Mart, Publix, and Kroger.
�•
FORMAT FOR SWEET AUBURN ROUNDTABLE:
I. Mayor B"iIl Campbell opens with welcome to the participants: you, the seven business
people, and Rep. Cynthia MCKinney. He will then introduce you
2. You wHl give brief opening remarks (provided separately by speochwnting)
3, You ope:n discussion with business people
• You may want to turn to Sallie Adams Daniel to talk about NationsBank investment in
theEZ
• You may then want 10 tum to Jason Slaughter to talk about his experience as a fast
growing company that was seeking capital during its startup phase.
•
•
At any time you wish. you can refer questions to or ask for comment by any of the 15
CllOs from your morning roundtable who will accompany you to Atlanta (they will be
seat(:d in the front row with several microphones available to them).
SEVEN LOCAL BUSINESS PEOPLE AND SUGGESTED QUESTIONS:
Question for SALL1E ADAMS DANIEL, Senior Vice President, Nations Bank of Georgia.:
Ms. Daniel, how have you seen the At/(lItta EZ develop and who! role have you
and Nations Bank /1(1(1 in this developmelll?
Daniel's Ba:::kground:
• Ms, Daniel is an active member of the Atlanta EZ and is a director on its governing board.
.. Nations Bank has undertaken a number of acti"ities that support the revitalization of the
Atlanta EZ and other distressed underserved communities.
Daniel's LikelY Points:
•
• Ms, Daniel willlalk about NatiollsBank's commilment to community revitalization around
the natie.n. She will also talk about her Involvement 10 the EZ and Nation.'iB:mk partnership
with local CDCs:.
• NationsBank provides the CDes located in the EZ with tcchnicul assistance and invests in
their projects.
�"
•
Question for JOHN ADERHOLD, Chainnan of Aderhold Properties (Developer of the Fulton
Bag and Cotton Mill):
Mr. Aderhold, call you talk a bit about how public and private entities have come
logether /0 make your Fulton Bag and Cofton Mill development project a
success?
Aderhold's Background:
• Mr. Aderhold, Chainnan of Aderhold Properties. is the developer of the Fulton Bug and
CoHon Mill project, one of the marquis projects helping to revitalize the Cabbage Town
neighborhood in the heart afthe Atlanta EZ,
• You should know that Fulton Bag and Colton Mill was damaged by a fire on Monday, May
3. It 1& not expected that this will deter development.
Aderhol~'s
•
Likely Points:
• Mr. Aderhold will speak to the importance of federal assistance in the development oftlle
Fulton Bag project. He wiJl also comment on the impact that the site has had on the
swrounding area and the successful economic return on his investment in lhe project.
• The development includes a mixed income residential project with 206 Joft. apartments of
which 83 are rented by low-and moderate-income persons. There is also commercial space
at the site, which is expected to create jobs and businesses in the EZ.
• The project used a $1 million EZ loan to leverage a $10 million HUD Section 22J(d)4 loan, a
$400,000 City of Atlanta Loan and over $6 million in Historic Tax Credits and Low-Income
Tax Credits.
• This project has anchored a flurry of redevelopment in the surrounding area including the
Eureka restaurant, whose owner is a roundtable participant as welL
Question fer TRiCIA DO:-.lEGAN. owner of Eureka Restaurant:
Ms, DoncgCIIl, what prompted you 10 open your rcsfauranr in the EZ?
Donegan's Background
• Tricia Donegan owns Eureka restaurant which opened in the EZ in November 1998.
• She also owns a restaurant in another low~income East Atlanta neighborhood,
•
Donegan's l~ikcly Points:
• Donegan received technical assistance from the Atlanta One Stop Capi:al Shop (run by SBA)
in putting together her original busi!1cSS plan.
• Ms. Donegan employs 20 people, of which 10 afC HZ residents, cnahling her to usc {he
Empowerment Zone Wage tax credit.
• ::Vb. Donegan WLIJ discllss her success ill hiring EZ residents as w(Jll as the importmu;c of the
major Fulton Bng and Cotton Mill revitalization project to ncr decision to locate t:lis small
business in the EZ .
�.,
•
Question for KENNETH BLEAKELY, President o[North Yards Business Park, LLC
AIr. Bleakely, your business park has made a commitment to hire a significant
number ofEZ residents. Can you talk a bit about this admirable effort?
Bleakelv's Background:
• Kenneth Bleakely is the President of North Yards Business Park, LLC.
• The project is ajoint venture between the Atlanta Development Authority. Antioch Urban
Ministries, and a partnership created by the downtown business community that includes
North Yards (the partnership is known as COPA, the Centennial Olympic Park Area).
BJeakely's Likely Points:
.
• The Atlanta EZ recently announced a $5 million grant to :\1r. Bleakely's company, North
Yards Bu.siness Park. to develop a brownfields site into a 55«3cre industria] park in the EZ
that will t~ost $25 million. The EZ investment made this project possible.
• North Yards has made a commitment to have its infrastructure contractors hire 50% EZ
residents and has also set a target of having park tenants hire 50% oftheir employees from
the EZ.
•
The project also received a $500,000, Brownfieids Economic Development initiative grant
and a $500,000 HUD Section 108 loan to demolish dilapidated stmctures and make
•
infrastructure improvements.
Question for SONYA JONES, owner of the Sweet Auburn Bread Company and Southcity
Cuisine (note: these businesses are located in the market)
Ms. Jones, J just was on a tour ofthis terrific market ~ how have you seen Sweet
Auburn }.1arkct change in recent years?
Jones' Backb'TOUnd:
• Sonya Jones and her husband, Robert Jones, own two shops In the market
• They employ six people.
Jones' Likely Points:
• Sonya Jones will talk about her experience as a small business owner in the EZ, She will
commer.t on the importance of both the EZ funds and the surrounding -development to the
success of her business.
• t..1s, Jones's clientele includes employees of the adjacent Gracy Hospital. Htlgh Spaulding
Children's Hospital, residents oithe Grady Homes, public housing ar.d the remaining
community.
•
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•
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Question for VIVIAN RElD,
market)
Co~Oyy'fler anhe Kaffee Shop (note: this: business is located in the
~fs.
Reid, it's my understanding fhat you've hired an employee who is a Welfare
to-Work participant at your store here in the market. Can you tell us about this?
Reid's Background:
• Vivian Reid, along with her two sisters, own this store which sells a variety of coffee
products and which has been in business for a year and a half.
Reid's Likely Points:
• Ms. Reid wi)( discuss how owning and operating a sma:! business has improved the lives of
her and her sisters, She will also talk about the fact that they have been able to hire an
employee at the shop who is a Welfare-ta-Work participant
Question for JASON SLAUGHTER, ownerofS&W International Foods (note: thi§ business is
not located in the EZ)
•
Mr. Slaughter, I think I read that your business has grown substantially in the last
few years and that SBA helped you in that growth. Can you talk about working
with SBA?
Slaughter's Background:
• Jason Siaugbter established 8&W International Foods. a meat packaging and frozen biscuit
company, in 1996.
• The company has grown from 12 enlployees to a staff of 60 over the last several years and
increased sales from $6 million last year to expected sales of$13 milljon for this year.
Slaughter's Li~.~Jy Points:
"
• Jason Slaughter will talk about his decision to locate in the city of Atlanta. Although his
busines:; is not located in the EZ it is in an area that fits the model for a New Market. ,
• Slaughter will comment on the importance of federal assistance in the startup phase. and his
difficulty at times accessing private capital.
• Two SBA guaranteed loans have helped S& W to add new plants and equipment allowing tI:c
company to grow significantly. The company has also secured contracts with S?ra Lee
Corporation.
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�·1
, ______________________
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___________________________________________ ,
EMPOWERMENT ZONES
Across the country, communities are reeling from a decade of declining opportunity and
rising social and economic isolation. The Clinton Administration is introducing the Economic
Empowerment Act of 1993 as a fjrst piece of targer community empowerment agenda to bring
on a new era of opportunity, responsibility and community. The Empowerment Zone proposal
moves beyond both lop-down, bureaucratic proposals on one hand and on the other hand,
traditional enterprise zone proposals on the other hand that assumed thai tax breaks alone
can revitalize communities, without changing the way government does business. The Clinton
proposal recognizes that community empowerment will come only when we empower local
. communities with the incentives, deregulation and flexibility they need to come up with
coordinated and comprehensive economic strategies that include a strong private sector
commitment.
1. BOTTOM-UP STRATEGIC PLANS: The entire economic empowerment zone
program will be run through a competitive, challenge grant process. No applicant will
be eligible for a single dollar of federal enterprise support unless it submits a strategic
plan that brings together the affected community, private sector and governmental
people and demonstrates how the community will reform the delivery of relevant
~Iovernment services. The challenge grant process is designed to empower local
communities to be as innovative as possible in their planning.
~!. ONE-STOP WAIVER AUTHORITY: To empower communities to implement their
bottom-up strategy, an Enterprise Board -- consisting of relevant Cabinet Secretaries
will -- will guarantee a single point of contact for responding to requests for support and
waivers in order to empower each local community to implement its own strategic plan
llsing existing federal programs and resources more effectively and efficiently.
3.10 EMPOWERMENT ZONES AND 100 ENTERPRISE COMMUNITIES: A total of
110 zones and neighborhoods will be chosen through the empowerment challenge
grant process. All 110 will be eligible for empowerment tax incentives and given special
priority at many innovative federal programs including community development banks,
community policing, education enterprise schools as well as an innovative Fannie Mae
Community Neighbors and Community Buyers programs. The 10 Empowerment
Zones will be more resource-intensive and will be given capital incentives as well as
two substantial Employment and Training Credits. One empowers employers with a
wage credit for hiring residents within the zones, while also empowering zone residents
t:J move to work opportunilies outsi.de of Ihe zone.
4, INDEPENDENT EVALUATION AND SUNSET: Provide for independent evaluation
of results after several years of operation before expanding the Act to other
communities: require full consideration of what works clnd what doesn't by contracting
for an independent evaluation and enacting a sunset after 10 years
SUMMARY OF ZONE INCENTIVES AND INVESTMENTS:
In addition to enhanced flexibility to coordinate strategic plans, the 10 Empowerment
Zones and the 100 Enterprise Communities will receive or be eligible for five basic forms of
incentives and investments. a) Capital incentives to spur private sector inyestment;
�02
b) empowermenl incentives; c} Employer wage eredlls that empower both business within Ihe
zone ard bL.siresses outside of ihe zone who hire zone residents, Th:s ensures that the
propose empowers zone communit:es while still empowering indjviduals to move to
o~portur,lties ourside the zones, di Investment programs, such as commun:ty poUC:ng and
enterprise schools, e} Zone Priority Investments: A host of federal programs will give recipients
of the 110 zones priority status for grant applications for Investments that may be essential to
a comprehenslve empowerment strategy, Starred incentives (.) are available only fo' the 10
EmpOWi'~rrnent
Zones,
CAPITAL INCENTIVES
- Tax-exempt private activity bonds fOf inve~Hments In tangible properly in zone
• Expansion of Low Income Housing Tax Credit
~ Increased Property Expeosing under Section 179"
~ Accelerated depreciatIon for tangible irvestments"
EMPOWERMENT lNCENTIVES
~ Resldenl Empowerment Savings Accounts -- ;ax credits for employer contributions;
penalty-free withdrawals for education, purchase olfirs\ home. starting a small
business Or ,nvesting 'n community investment corporation or fund
• Residen! EF,powermem Opporlun:ty Card
~ Private Activity BO"1ds for zone businesses, Community Investment corporations and
�---,--------------------------------------------------
-).
Funds, and ESOPs owned 50% Or more by zone residents>
EMPLOYMENT TAX INCENTIVES
- Emp:oYJl'er'!! and Training Credits ("ETC") for zone residents
· A mulli·year ETC for zone employers
• A one-year Targeted ETC for non-zone employers,
INVESTMENTS UNDER THE ACT
· Enterprise Grants
~ Community Policing
ZONE PRIORITY INVESTMENTS
~
Community Partnerships against Crime, Community Development Financial
Institutions and Banks,- HUn Malching Fund foJ' COCs
~
Up to 30 Enterprise School Communities
~ S8A Commerce and EDA funds and technioal assistance
~ Schoo!·jo-Work, Apprenticeship, Youlhbudd, Youth Falr Chl'.mc~t Job Corps
~ Drug Prevention and Rehabiljta!icn~to·Work - "One Stop Shoo" Career Centers
(JPTA), w Access and Moving to Opportumties· Distressed Public Housing, McKinney
Homeless Shelter, Assistance, Se!f·sufflciency, FHA and FnMHA Fannie Neighbors
and Community Buyers
Cost: The Budget includes $4.1 billion in tax incentives, Approximately 75% of the cost carnes.
from the wage tax credits, Over the next two years, $500 million currently in the budget will be
allocated to Enteprise Grants !or empowerment lones, while an additional $500 million will go
10 COMmunity poHcing, of which a substantia1 amount will be targeted toward the 'T 10 lones, In
addition, severa Depar~ments have made commitments to target existing investment
p'O:;Jrams 10 the zones, so t"at t"ere can be an equal amount of of invesrre'1ts and tal(
ir::emives, For example, the Department of Education has already commitled func;"ing ard
suppor: local comJTIunities 10 create 30 Enterprise SchoOlS initiatives with'n tr.e zones to make
schools 24 hour, 365 day·a-year communily centers. HUD
has agreed to target $200 million of its Communily Par1nership ag3insl Crime funds -- public
safety and drug prevention -- 10 the zones.
PopUlation:
Percentage:
Tax Incct)live:s:
Poverly Cllteria
�, _ . _ - - - - - - - - - - - - - - - - - - - - - - - - - - _ .•..•._ ,
Population criteria
HR11
Details
How Ml.:h does it cost?
SL.1 bill 0'1 in lax expend;tures:
51 billion in Enterorise; and community policing
% of urban and rural.
�"''hen the Comf:'.ut:ity EmpCw<!tffll!!it rkirhtl.g Group first atllrted to design the
8'powernen~
Zone proposa:, our hope WliS that much of the good from the
legislation would cOIr.e throu9h crup,ting a process chat would encourage local
corr.rrmunities to pull together, analyse theil' needs together, lind cOllie up witn
coml?reh~nsive
strategics for revinventing ourselves together. Ti"ds emphasis on
innovat.ion, co~prehensiveness, and direct community involvement in the
preparation of the applicationll has been inspired by the belief that. effective
revitalization rr:.1st cegio with lOl;;vl level planning.
Ir. anno'Jnci::g :-::::e
initiative, the President stressed this point by stating t.hot "not a di'll/,; will
go out ',;ithcHt <1 coordinated str"t~gy deve:oped at the grass-roots level " :Uc\'.'
York Times, May 5. :1-993)
Since the V~ce Prenident h:w led rae Cr,:mnlcnity
Enterprise he has used his expertise. on reinvem::ng s;overn:lcnt to give further
emphasis to. this community build1.rtg roles that the vary process ot empowerment
~one applications can have,
I, as with others, had been hearing very enCOUraging stOrles about the
degree chat the ~mpowermen~ zone ~rocess were having precisely the effect that
....e had hoped eer: the ve-rf p::-ocess of cooperatively designing a comprehsrtsive
e.mpowercel;t. zone atrategy was itself havir:g posic:;.ve effeccn l)Y brinfpng
cO'I1munities ~og"er..:ler to anal}'E!;l- their sitvnt..lon and come up with innovative
l;ltrateS'"f;!G La a:ldreSB it -- wr"rtt the Vl.ce President: 1-"oEers to as "the mnglc
feach-er ,. : £laked Sheryl Casr.in alto :'lIy intern from George::own Law Sc:tool, Sean
Vox: :;0 aei1rch lor examples lor! the newspapers and they flav"! lound sor:e interest
atticlen in regional papers. What ....e found wes that this positive theme -- ~h.at
tr.e proGess itself was making eommunitie3 winners -- wi1s beir~ rapeated in
differelll: regional papers across the country, 'three pointa seem to come -::hrough
in many of these articles,
Tne existence of a eommon goal has bToUg~t tog.ethcr diverse
r<"!L'el.y, it t;VCl=", cooperated in tht; pnsc,
1
9~Onp$
which
2:
Many ::owml:nit.ies have for the fir::Jt. til1"J':! d"'vGloped a "holiutic' npprOil.ch t.o
econom.l.C rcvitalizat.ic.:l. .. hie}:; em::ompan.!lcs bcr.n ca~ita'i. formation strategiell and
the p;oo\'ision of .!loc-:'al services !\>lch u.s Ghild~Gare, j(lb~training, ed\lcation,
find health care,
3,
The
public-priva~e
applica~ion ?~oce$s
part3erships that have developed as a reuul.t of the
will be a torc~ for change far into the future,
It, is .!.O'.portnnr. :;0 no::e, however, thar. while there is fa,' mere r,har. praise than
c:rlticl.Hm, 1;WQ negative themes can be found in II few artic:os, 01lil, ~Iil tll!>t
2'npow!!);tlle!)t: ZoneD are pitt;:.ing poor communities a.gair.ct each other .~ even wi.::hin
single cities, Two, is the view chat selectic:1s w::'11 be cietermined by political
reasons, with mid· term elections being a factor in the timitlg of de-c:.sions
Thu$, W$ ~nt en$ure that we continue to
R~Jow
ace selections fro~ r,~vcr~l news?;pers ~rticles stressing the
precess itse:"f it:. u.CC1T1V'1plieh!.ng tht'ee main posit1ve results,
i'llportar...::!! 0: ChG
\
�1.ltoUS'.:ON CRHRONICLE,
"Whether or not Houston wins En elf'powo.rrnene: zone des.ignatjon, the
of a !<fide v~riecy of commun.i ty players to prep#re -c:he
application will result in on~gojng discussions.
The process has
brought: pecple tOf/etber wllc had never worked with OJich Ql;;hfu· before.-'
pilr~icipation
Gu:.l~r,
Judy
"ide to t"layot' Bob L?Hlitu· (Houston Chronicle, Ml1Y 28, 1:1"94)
2. OETRIOT FRES PRESS:
[I) an edtiroiral entitled.
"Em,>owerment Zone: Application Coop~:!"ation
Gives Decro1t. a New Attitude" from Jur.e 20, 1984, [!::Ie ar:::i::le et,,::es,
'Detroit' B empowerment: zones applicacion a nearly ready to be Bent: t.o
l'iashington., .. Bue even if Detroit: is denited, the applicat.ion precess
.itseU will benefic t:he ciey. The process has Cl:cat.ed a previously
unfamiliar senes of cooperation amoung Detroid citizens, neighborhood
!1~·O\JP9. and city officials."
3. DETROIT
N~~S;
Rxcerpts from ·Projeet Empowers
[Jetrait News, Jur.e 12. 1994
Sp~rit
¢f
Ci~y
Uoity,· by Vivian TOY, The
'A I,r,,1 i:"1':':1<I:ry Q:!"afc of Cetroit-" iii apglicatJ.on (or Ii federal empowerment:
.:m".e EocuseB on fa:J.lly and ehe workfi'H'<::e acd pl."omises ,mprecedented
(;coperation a:nong Detroit businesses ilnd community ol:ganizatiomL ~
'Tl".c pt·ocess: has spurred a continuing efta::'t ta ra!ac IT:l-lli:ms of d:l:lars
;:; CQ(:'Il!it,nmts for area buSine5tn;B from inves':Jl'ent b some ot the ci ';;Y' t.!
poo::'est neighborhocds.~
'''It's;; rare day when YOlJ h.we the Big Three auto giiJlncs siCCing down at:
the ssme table with neighbcrhaod leilders to calk about turning things
around in Detroit.' said ArthUr' Carter, a Detroit public 5(;,'10015
administrator aad 3 cc·ch,dr 0:: ::he education and training t,v;k [orce.
'it's been il:l invaiwable 1e:arning exper:1..f!nce tor tlV€r'/onc .' •
.4
ARKA.~SAS
~ril the .rural iirea what has !u!ppened 1s t:hat:
. . mayors, J:m.nke~·$,
blJsiness ownerl.l. judges. eee. are coming co meeti.ngs with c"tnmunity based
crganizatiQn_~blacks and whices together as parcners 1n a planning
pro::::ess."
Becky Williams of Arkansas (letter to Carol Rasco. Assistant to
tt<2 P:::esiden~ for Domestic Policy, l\pril 21, 1391)
5, USA TOOAY
"t;.icies are developing ,1I1 entirely l:el<' approach [c redavelopn!;jJlt, it more
ilOliscic approach that'a g01.r.g to benefIt even ~lwae o1.tie.<; thae con't:
will.
We'll never go back cc the old way,' !1ayol' :erry Ahrrll"sor. of
Louinville. ?reside:!.t of the G.S. Cnnference of Mayors jUSi\ ':'001'1'1, May 23,
1'~4)
�"-~.
-'--'---~---
- - - - - - --
--- --
6. ST. LOUIS DISPATCH
~Tbe
key to this gram: :applica::icfl is the opportunity preSCllI;ed to I\inloch
to form a holistic plan to address ita major problem areas."
St. Louis
County EConomic Council .official Claude Louisnomme (SC. Louis Post
D~spatc~. ~ay 26, 1~94i
.,
CfUGAGO TRIBUNE:
·-It
[~l;e
focus
application process) als'o :Illustrate."! thilt the iTlt;'uia'$
cQnSCiJnt
Chic;;go' G vcry real neighboJ.:hcod problems I1w,sks significant
0:1
physical and human assecs in these same communitLcs, Linking ~ese
neighborhood leaders with the resources neces~ly to act on their plans
must be a priority in the ftlttlre ... , • In many rqspeC't$,
Chicago is
already a winner. The empowcl'!'1llen~ zone process is a Strong 5t.&temel1~ !..hat:
:nei'lningful city
gO""eIr.mellt~n~ighborh:>Qd
plan.. ing can work in Chica.gfL
.
~
'fhQm~s
Lenz, Loen,- lni~it!tives S;;pport Ccrporation nnd :'l!'!l11bCt· Qf C~icago's
,i::'11pawermer.t Zar.e coorc::Jating Cu..:.nc:.l iChicagc Trihu:l(!', lI.:ly :13, 1394)
e,
PHlt<APELl'HtA ENQU"IRERERI
from
ZXce~p~s
PiQ~c&,
~The
Cities Axe Lining Up To
Philadelph1A Xnquirar, May 16, 19"
G~t
Empow&rmont
(A16Q in
Zones~,
no~aton
by
Ne~l
Chronicle)
"The zea: story, hO\oiever, is about a di fferent po! itic3' the C:;':::ltonitea'
otrategy to get cities and counties to tap the ;.:.:.11 to rev, ",.,lize eve~.
the:.r poorest communities, and to ~vcke rte;.: C~Ly and regional n:lianccp to
aupport those neighborhoods.~
., It i$ not: the Jack Kemp vision nf t!nterprise u:'Jnes - throw out a bunch of
tax: incentives and see 1:ow ll'<3ny businesses ~her: want to set. up shop in
gl'nt:Hti~smeared, cr11"~~plag'.!ed areas.
:';:or is it Lady Eountifu~
libenllism ~ she'" how yo;; can spend wa~hir.g:;cn't1 money,
'I{1!1tedd, Washing tor. 2-5 :::ha::'ler:::;ing applican:". CO::lrnunitiCJ; to show buy-in
irom
b:::,oad :::,ange of f-<lrtners - gr[1S0- roots coromuni ty 0TOllPS, local
!1ea:tr. and socJ.al service ,,-genCle$., environmental
organi:lltions, churches, businesses, universities."
i:-
~;overnrrer'ts.
~Some places seem truly to grasp the spirit. and potential at the r.ew deal
!;ho feds are offef"ing. Consider the example of America's 'tIost t'avis~ed
<;ln~at city, in the nation's most se9re~J'~ted region - Detroit;,
"htr. t::l".c
)l<!~t t)t ewpo __ "ment zone designatio!t. tlnd anxio\.<s to bolster :YeS;-J11en
flayor Dennie; Archer, the big inGti tllC ionn of the Cetro~';.. region :wva
pt'oduced a startling set of initi",tivec.."
"But (or now, the competition reminds us that. every metropolitan ar<e., has
.-,11 the resources it needs to revive its depressed neighborhoods ~ it it
will onl)' lJlo~ili:te them. ,]ust a dozen ar twc citie$ ernulatHtg Detroit' J;I
,'«rve in building new coalitiol'_$ ::0. combat pcverty anti inner-city
tJepressioll would
J~:st:('y
the ",cr.!)::''.!' effQrt."
!f, DOSTOtl GLaDE
ll:a:cerptB from
~Plan
Would Revitalize Areal! Aiong Blua Hiil Ave, ~, by
�Adrian Walker, The Boaton Globe, Hay S,
~99.
UThe steering committee writ~n9 the plan included community activists.
business a~tiviBts, and local a~d state elected officialv.
(Linda) Haar
rtne coordinator of the p~ojectJ said she believes one of the strengtho of
the city's proposal is ~he broad coalition working to formulate it.
~Huar said the empo'<.'er.:tent zone differs from other urban renewal pt'ograms
because it bril'.gs together a wider array of programs that affect er:onomic
d~elopme::t, job t.raining, cap; t.Jll and social services."
"'Inst(!:ad of pt-ograms that thrcw money at peepl/), we're saying no none of
those 'l\odels, ind~viriuaJ..ly, can work,' Haar said.
'You really ~eed to
bring corr.l;.ined resources to bear. t"
lO, LOS ANGELES TIMES:
ElCcorptfl from "Cities Un:Lt~ ro aoon!;: C:n.lln<:l11$ for
Bos:9, L<HI An!il0loll Tim/t, May 22, 1994
Or~ntfl,'
by Mary H61 ..n
"SouthC<lBL cit~es have united on two f:tonts to torm nn economic
development coalition to attack socia:" problemc in the lln'HL LClIiJet:'$ in
eiIJht dt~es have voted :iurir.g :.he pas:. monch to form a nonpt'ol.it
c;;.mrnunity deve:<.cpment corporation that they hope will nelp give the region
c::'cut, making the area more elig:'ble l'lInd mote nttrllct ..ve to ,)ublie and
priVi.lte :unding groups. '::n add::'tion, six cities have creiled a consortium
to apply fer jo.>.nt designa:::ion as a federal E!1terpris e Cowlltllun.y." ~
"rhe projects 'create eO<!'!e joint vision on t.he -region in terms ot
identifying l'.e.eds ami solvill9 the aren's problems,' said ~or9"e Cole, a
Bell counci lrnan and founding member ot the development col:poration,"
E~e$~pt$ from ~Da4e Seramblen to wiu ~Q~ont
Dexter Filkiu4, Miami HerAld, ~ar¢h 13, 19j4,
~Junt
wben it seemed like
~veryone
t¢ne~,
had sivert up on
by
T~ny
rugh and
Arr~rica's 9het~oS,
th~
federal 90vernment is POlSed !::c launcJ: ::me of :ts b19gi!!31:, assault.s in
r.ecent memon', Met-ropo:' ita.:. t:::ami :-;ay be a prlme beneficiflr'Y."
":Sud )(i;\nitz, exe=::ive d:.rectcr of the !'Jationu: "aighborhood Conlicion,
iPj'ormll!;;:.cn Glearing!:om::e or; natiOna1
lV!lgh;)Qrhcocs,
sa~d
pol~cies
.'11
Clr:d Jo",·im';;01t1Q
Emp:::wl!l."lllem: Zones .a::e a break wiLll
th~
fili lures of the
[»st:, ,.
", It';;;
:!
<;;omprQ"'ens~ve
npproach thtlt: $ fb.r better thn:1 the
f)f'OpOtW~i;i
mafle
i:J p.i"I.;'vi:m,5 adrr.i.r:istrat.icns,' Kanit.z said,"
''flee focus on publiC .md private investment ';.'orking together
rl i l'fernnt.::ates Empowerment Zones from paG't attempts La atLn:;k inner-;:;i ty
poverty, t;ome experts say,"
POLITXC~
CONSIDERATIONS
�!)esplle the -genet'al positive respon!Je that the empowerment zone
<:lpp1ic.l.t,.ion pt'OCf.!S$ h;1$ ehcited trom local part::.cipants, it is important. to
note that there have been two types of negative comments there a~e t~o po~ential
political problems that must not be ignored. first, the drawing of the
e"lpowerrr.ent :lone' 5 boundaries has prDmpted intense politi::;ii! disp:.:tes il'. some
cities. At leBs:, one cQl1111\unity leader has descril::ee the apFli:::a:.icn FrOCe3!l as
"pitttng the ppo~' UU;;UU!lC the poor."
Second, the sell)ctioll proceS.\,l by che ComlTlv.oity Enteq;.r~se );Ioa,o. ~s oe::>lg
dep~ct,)d by Borne a process driven solely by political cC:l5ideratic:ls, ;.dth
assertions thAt cfu·tain major cities are as.sured of an ell9Owermen,; zone based en
their political importanee -- and that mid~ter:m eleqtir,m I;:iml.ng Gould be an
isuue. Thet:(liore, while we str-ess the p!:.l'sitive aspects, ,"'C' have te vigilant in
showinH that thi.\! prOCOoiJS w~ll be t'ilir a:ld obj",cti"'" ;Ina tha,; tr.e competitiv(l
proC<.!$Ii is {I sound W:ly to borh enCO'.lt"11\Je ir.novation ilnd eccperiltion as well 11S
/.;<lLng II oo,m<;\ use 01: rColo.. rces so tl:wx we avo~d 5t.C:' a dilut::cn of resources
th;'\t
no ponit.:ive gOod.can c:orr.e.
SELECTeD NEGATIVE COMMENTS
Exc&rpt,s (rom wbpQWlliU'#lIH'It 2:01'11"11: F,,4 Progr/l,lll Cr"",te'lJ Skepticism, Confusion", by
Kar.n flothn!y6r, tlaW'jlH,!ay, Mlly 10, 1994
""(]nfOl·tunilte~y,
lA..'l.gelcj f'a:cor. say", 'tac e::lpowerm"!nt: l!one prognlm forces poor
areas t.o compete ~ith encl". o;"~le:r rat"m: '-har. developing strategies that nrc
useful far a1'.' 1his certa~n1y has been the case ~n New Yock. With a cap on
the pre.posed l!or.e's population set at ::00,000 - whereas a population of at least.
twice that lives in the are~s - boundYry lines are th~ fiercest point of
cont;.eotioo. "
lSxcerpt. fr¢la "L,A. com,lJni~iel4 Via Itor $100 Milliun in ?adera1 ?unding," by
Robert: Lope:, Los Angelos Times, March 1), ~S94
"A multi:tullio:t-co:'-lnr (~Jernl empo'lffll:111t:nr. zone thor would promote econom~c
develcpoent in Los Ange:es will U>.:ely be t;iirVec into sever<ll portions, and
communities ncross the ciey are already jockeying for their piece.~
"No watter how it [empowermen4 zonel is carved up, the 20-5quare~mile zone wi~l
st11: excluce an Qvexwhelming majonty ot the eligiole areas covering !II) sq:.:are
--hIes j(\ :'OC Nlgele!l. l\rJd lUI'" May 15 deadline approaches fer the Ci':y C;ou:::r;:l
LO prei1llJ:e II irnit report., 00 which commonities "will benerit, the batt:es ur..o[1g
ccmpe';ins interests lwve beguP ~
""Hopefully, it; won't sot teo \l91y,' $ .. io. R&ynolo. alight., d:i.:re.ctor of state
onterprice cope programs tor the ci4y'a ~~nity Developmen~ Depart~ent"'
• We're all fighting for this piece ()f ple, flr'.ci :: don'4 know if 4here is enough
me:;'!y to S1lt:isfy os all,' tw.i(1 Richard Marshall', « me"lber of the CQ!mn\l:tity
Ad" i a'ory CC0f\Cll co tb~ 9th Counci 1 tLstdc% in S:::mth~Ccrtra;. '
Excurpts from ~A F~d&rally Funded Empowerment Zone is Good News For L.A., au~
Its Limited Si:_ Will Exelua. Many Nuedy Area.,- ~QS Ang4lu$ Timu5, NovGmhGr 7,
1993
~There
is JUSt one problem,
The tone can only be 20 square miles with no more
�than 200,0'.'10 resiclents, assuring that many needy areAS will be left out and
Lt;rrcing Cl::::Y DfHcltl.ls tC make difhc\Jlt choices in determining WhH!h area will
receive the fede:::a:' ilss:stance."
, It
b~c"i"'es
tough to pick sncn
<l
small areas when ther'1" are no nvmy needing
1)1;1:P,' ::nlld RQynold Blight. director of enterprise :lUle rrogr,,!"tl lor the L;;>S
Angeles COITllf.:.m:::y Development Department, th.e ciey 1l9/!ncy chat will r;.tf;
fodor", <ilt'1lpow"n:mont zone progrilrn."
::t'.~
"'1("; does create a situation where you have II bunch of people t:gr,c!.nq over i.t.
r know my group wants a pier;:e for sure,' said Ezekiel ¥.ohley, exeCl.;tive director
CIt the Central City South Association of commerce and Ir.dustry, a conson.ium. of
about SO businesses near USC that incorporated in SepLember in part to lO~i for
the zone
benefits.~
CQMMENT$ FROM AROUND THE COUNTRY ASOUT THE EMPOWERMENT
ZONE APPLICATION PROCESS
eXC4rpLS trom ~3@tting on the Future of
Louis Pone·~i$patch, June 15, 1994
St.LouiD,~
by E. LAne. McCarthy, St.
'P.. flp:.te the'lew o1ds of wir.mng, the planning process will huvtl positive
Fo:;'" St, ~.c\lill, " ::;:i'.y thnt rcspofloS to projects inetead of developir.g
" sJ,::t:il':eD":c long-rlmg!:! p~D.r., the benefits ilL'e enoL'm0113, "
~·c$ultl;
':he compreheTH>lVe p=cens of the St.. Louie plan revetll~ how mnny great progrnms
exist U:1C hew ::lllny dedicilted residents serve the city. The plnn 1',<).s ir.c::'udcrl an
exeouc,ve committee, led by the mayor, focusing on busine.IHI develop~(mt nne
humnn capital, soci'-ll services, public safe\:y and comrrur.ity dew;lop::1.e:lc and
-community outreach, in which citizens participat.e."
"The pl:oces$ demanded the commitment of more than 300 people. ':'he-se
llnt"ticipants are mot:.ivated hy the helie:" thilt the metropolitnn neg-ion can
tU""liZ'l its f\lU economic ilnd social potential when the m:'lst disadvantaged an:
given !:he oppor:.:unity to cilar.gc - thrcugh their CWl: actions - the i.mpoverished
conditions o? t.heil.' lives."
"[lcrn~ \;:Joug::H: thfllse co:-,ci;,ions would be solved immeditltely when tho city's hrat
Jl.fricull-.i\'l1erir:an mayer, Freerlll:n Bosley. Jr , took office a yenr age. But t!lere
Wd; e ) Flan.
:::he c::Ipcwe::::nent zene otfer the opportunity to create that pian,"
"Throughout the process, che cornrounity has voiced its fl(!etl1:l, 51001$ ar.d
Those solution., include job development., leaden'lhip trai:r.ing,
recreal.ion for youth, housing rebab, revolving loan programs a!ld one-stop shops
to de14ver social snd economic services.~
solutions.
�· ;'.):,~ Empow~r $::;. Louis Initiative is a teachable moment chat wHl tflark St.
:.v..\is ai1: a winner, that will include the disenfranchised anc !:hat will ul'.ite a
!)(!twor<: of citi;:ens who c;"re about the fU':ur:::: of Ola city
I<e mwst !:'tl'U;;t:.Ul'e. a
P~';H:; to::; eoonomic g.t;Qwth, led by teclh"lology and manutacturil',g, with comr..ur.i:::y
input and equi ty, "
B:x:c-orpt:l from "Projl!lct Empowl!lra Spirit of City tTnity, " by Vivian Toy, The
Detroit NewQ, June. 12, 1~9:~
"A prel:in1inar.f oraf::: 0:: Oet~O::'~'E appli:;Ht.~on fer a ende:t:al er!lpcwernent. "one
focuses on ia'llily Hnd the \\'Orkfcrce aM prcmil'lel'l unpl"ecedented cooperation af!lOng
Dtd;roi r.: busint!'sses a:1d C::>lf1rUll::.y organi zaL Lons. ~
"'The ptocess has spurre:'.! a c:mLin:.;ing effort to raise mi 11 ions of dollars .;.;::
c::m,mit.!;"'cW.LS for a~-ea b.;sinesues frON investment ill .some of the ci;;;y's poot'eot
i'.(Lghbo;;I".Qods .•
�" 'I t:.' 5 ,l .L:'lre d<lY when YOll h<lve the Big Three auto giants si t ting down at the
.'l<lme table with neighborhood leaders to talk about turning things around in
Detroit,' said Arthur Carter, a Detroit public schools administrator and a co
chair of the education and training task force.
'It's been an invaluable
learning experience for everyone.'"
"Still, coordinating council members say unlikely alliances formed. One
coordinating council member said it took intensive arm twisting to get corpor<lte
support for some lofty idea[]."
"S<lid C. Patrick Thompson [task force member], 'The business and tinancial
community have been willing to listen to us, and that'S a major df!parture.
really '",rote us off for 20 years.'"
They
"The co::>nlinating council met two or three times a week to collate task-force
suggestions. They often emerged bleary-eyed after five or six hours of haggling
and sometime heated arguments over priorities and commitment."
"'We dOIl't illways agree, but the olle thillg we do is st(lY at the table until we
do agree,' said Gloria Robinson, city planning director and council co-chair.
"A univernal goal throughout has been bringing services to people, and into
communities.
'It had to be a bottom-up approach, where we developed program
around people and their needs,' said Marvin Petty, a coordinating council
member. "
"Even if Detl-oit is passed over, council members say, the process moved Detroit
closer to l.enewal."
"The process is going to go forward whether we get the federal dollars or not,"
[John) Slater said. For once, we just all got together and dreamed, and now
that we know what needs to be done, we're going to make sure it happens.
"'An effective, comprehensive well-managed
system is the mainstay of a
thriving economy,' [AI Ma.rtin, director of the Detroit Department of
Transportation] said."
Excerptll from "City Among Hundreds in Competition for Six $100 Million Federal
Grants," by Tim O'Brien, St. Louis Post-Dispatch. May 26, 1994
"The Kinloch Community Involvement cOlJl!lllttee will get help with the applications
from several government and community agencies, including the St. Louis County
Economic Council, The Urban League of Metropolitan St. Louis, and the
Preventative Partnership Program - a program to prevent alcohol and other drug
abuse. "
"St. Lcuis County Economic CoulJcil official Claude Louishomme naid the city
needs to organize a campaign to bring business bask into the community.
"'The key to thin grant application is the opportunity presented t.o Kinloch to
form a holistic plan to address its major program areas,' said Louishomme
�~c.rpts
from
~Planning
£ff¢rt A Model for the
city,~
by Thomas J,
Len~,
Chicago
Tribune, Mey 13, 1334
~The just-concluded process for deterrr,ining 'the ccnfiguration of Chicago's
propos.. l for the federal empo...-erw.tmt zen"", prog::a11l is proof that neighborhood·
based planning is alive an well in the Windy City. ~
~AIt a ~mber Of t:he coordinating council appoirtted by Mayor Oaley to oval'see the
process, I approached the ~ask with sow~ ambivalence. While the stakes were
high ($lQO million in new HUn funds p1U3 millions more from existing fedeml
programs), chicago had never before a<:>;.emptea partieipatory planning on this
l'H.:"le. ~
"Could ~::~n numerous and. a';:: times, fractitious community groups produce quality
;>1(1n$ in the !;Ihort tir"e frame set by the federal government? Could the City
d~!ngn 1mct lHl::ere to a bottom-up pcocess in keeping wi+::h the empoY!e.("l'Icnt ZCI'.e
p;Qgram'3
90~1?"
"The iUlHWiU" 1;:0 both guelltions. I am happy to say, has bee:t an ~.q\l"li[ied ytl'C
with hwa than two months lead time, licerally ~t:ndreds ci' COll'Jrr"ll\-ty
c~'Salli Zlil::lonfl cnme up with dozens 0: b:!.ueiJrim:s for !\1!oig:J~rhCod \'er.~wal,
Thc
33 planu fluhmitted to the coordinating CQunci" were ce4arAah:e in cwo wnYfl."
"FIrst, they dispLDyed a profound ccmmi:;'!!',er:t :'0 r.e:g:u:.(Jr~cod -leve'"
t:Ql1ilbol:-acion. on nwnero"..lS (lccasic;].s, form~r:"y tu1t."9urli!!t::ic grouP!! put theh'
differ!!uces aside to buil,," <: cOIll'll::on \riS:'.C:l and :;:.;lan for ::.heir community ~
"S~coud. ~~le plar.s we::e t::ri;nmi:1g w:::h S::ood 'doable' ideas on linldng Chicago's
dlS1HiVflf.taged retdder.ts w{th jClJ5, hOJ.!!irtg M.d 3ervlccc
For exarnpln. <II numbec
or. prr::pooals suggested u!lir.g t.ae C"~A's Creel"', Line recortstruc::.{oa tiS a catalyst.
fer generatlllg retail, wd.:strial and housing development adj<lcunt co the ne""
stat ien!l .•
"This sllrpll,l.o Qf prcmiuing ideas and partnerships made :::he inEflli:::,'Ible winnowing
process extr~ely di!ficult. It also illustrates that the r.~dia'n conncant:
foc\1.s 01) Chic"go's very real neighborhood problems 1M.. !;;.. significant phys-ical
and hUlll(ln aaseLS in theae ssme communities" Linking chene neighborhood leaders
~jth reno~rcea necessary to act on their plans must be a priority in the
f~ture. ~
'Yinally, the mayar and his statf. particJlarly Pla~xin9 and Development
head Valerie Jarrett, ;;In! to be creeited with creating a modl!l
locally driven planning process. As a vetera~ of sev~ral Citizen advisory
groups I:1v'!r the year's, ! had expected to plan a lii.rg-ely reactive role.
Instead,
the city took th>;: (lwpowerment: zone program's g0<l1s to heart and vested the
n<!ighbol"hooci gt'oups and the coordi::1.at:'ng -c-ouncil witt: the aUL11or1ty necemlary to
develop thll' plan. ~
~partmen:::
"Tn many ::'!9pect9, however. Chicago i$ already a wi:1tler. 'l'he empowernlent ;::one
[a'oeen!; i!.1 a ,lIt.rc:1'j stat-e-::lent tha:: IT,eani";"'1gful city government·neighbornood
plilnnin,,1 Clio '....o rk .iT. Chi.cago.·'
�..
Excerpts from ~Citi&li Compete for Cash in ·Olympic.'~like Fevar/!Hllions in
Federal 'Empowerment' Grant!!. Tax Break. at Stea.k,.". by Maria Puante, USA Today,
May 2), 1994
NThe Clir.ton a:il;"clnis';;ration also is pu::cinzr a r.igh value on t:he 'boLtom-up'
approach, in '"h~ch neigi"'.:b:.:lr:WOds ilnC gra9s~rOOts O:tJilanaatioHS have n mnjor say
in pi:;k:.l..ng zones <Iron decidl..tlg what to do with them."
Louis,
~St,
~ubmittlng
"'1\$ a resu!t,
a
mor~
win.
for instance, plans to hold more than 50 public
~D.
rr~elings
before
its plan,
C1t1(>5
ar", developirtg an ent.irely new approach to redeveloprr,ent.,
holistic approach that's going to benefit even those cities that don'c
We'll never g{) back to the old way," {Louisville Mittyol: Je::-ry: Abramson
nays,
"''fhe [Clinton] appr'oilch has much more positive po:e.r.L:al beciLwe t:~"''' key 1.$ che
I.:ombinatlons ot dollCira ar.j flexil::illty.' 1FlyS Jil1·GinsG:J. nenlor nssociate at;
the 1 iberal Urban In1lt.itute think tack ::.u Wanhi::gton,
''the gcv.;.rnrr,er.t is
responding to local s.trategies rar.her the:!. ;ordering) program COn1.J.9uratio,L'"
LOS
ANG~LES
TIMES:
Excerpts from Keities Unita To BoQst Chana.s
Los
~~gel&s
Ti~8,
~y
22,
tor
Gr.. n~.,* by Mary Helen 8arg.
1~3~
"Sout~east oities ~ve united on two fronts to form an economic development
coaLitl::m to nttack social problems in the area. L!.wders in eight cJtie$ nave
vDted d>.lrir_g the past: t!lcnt:h to form a nonprofit communi cy dev*lopmen:::
co~"pcra:.;.on :.hat :..hey hepe will help givI: the region clDut;, maldnq the ,u;e(l ~C~<:e
01ig£'o1':) and !rc()re act:ractive co public and private fum:lir:.g groups,
:n .addiL:Cn,
~ix cities have cr~ned a ccnnortium to apply ror join% desig~atic, ae n federal
l':ntarp:;i,se CQIffl"mity ..• "
~'I'he project.s 'create some join'.: vision 00 the region in terms of icent:i fying
needs and solving the area's problems,' said George Cole, a Bell councilman nnd
to'.lruiing ItIell'ber of the develop:nent
corpora::ion ~
from -ThQ Citios Ar11l Lining Up To G$t EmpowQrmGn~ 2on0S~. by «.al
Pierce, PhilM01phia I!"I.quirer, May 1£, 1954 (1<::'so in Houaton Chroniclo)
~Orpt3
~'the real S:Ol·r, :~o",e"'e;:, ~s abOUt" a u~f:::erent; po1i ticll: the Clintoni t:es'
slorilloeg:t t.o get. cities arod COI..n-t-:,eS to tcp t.he will loO revit.alize even thei);
,XJ:)re5t c04:;:unit~e5, <l:1C to evoke ne'"" city and rcgion"l nll1.i'lnces to support
t):;ose n,;i9bbo-rhoco~.·
"It is not- t;"e Ji.\C~ Kemp vision of enterpri~e zonea - ::.hrow cut a hunch of tilX
ir.centi'fes and aee how many businesses then want to eet: up shop in graffiti~
smoared, crime~plagued areas. Nor is it Lady Boun:;iful liberalism
show how
you can spend Washington' a money."
w
"lnsteOl~l, WOlshington i$ challenging applicant cOmr'..unit".ies to strow buy-in from a
broad rnnge of partner$ - grass-roots community groups. local goverm:viltnt:s,
health ,'lIld social service agencies. en,dronlT.enta: Orgl"Hlizat~ol',$. churches.
�,----"--------------
---------
-- -- ----
husinesses, uni versi ties. "
"Some places seem truly to grasp the spirit and potential of the new deal the
feds axe offering. Consider the example of America's most ravished greut city,
in the nation'S most segregated region - Detroit.
with the bait of empowerment
zone designation, and anxious to bolster freshmen ~1ayor Dennis Archer, the big
irwtitlltions of the Detroit region have produced a startling set of
initiatives.
"A cor.sortillm of lead universities - '"l,qne State, Michigan State and the
University of Michigan - h,lVe agreed to focus resources of mUltiple depilrtments,
including their schools of business development, urban studies and architecture,
all Detroit's zone, and to keep up the effort whether Detroit "wins" in the
competition or not."
Leading Detroit foundations, including Kresge and Iludson-Webb-er, have put
together a $10 million fund to provide operating assiGtance to community-based
organizations."
"Detroit Ren<1issance - the chief executives of the region's 50 largest
businesses, inlcuding GM, Chrysler and Ford - are launching a community
develcpment bank somewhat akin to Chicago's fames South Shore Ilank, aiming for
·almost $SO million in capitalization."
"None of \·l<1shington's reinvented, user-friendly ways of running the zone
competition means picking lhe winners won't he contentious.
The process could
111so enCO\lnt.er huge snags when the federal departments begin waiving regulations
that hamper local governments in the zones."
"Gut for now, the competition reminds us that every metropolitan ~rea has all
the resources it needs to revive its depressed neighborhoods - if it will only
mobilize them.
Just a dozen or two cities emulating Detroit's verve in building
new ccalitions to combat poverty and inner-city depression would justify the
whole effort."
,
Excerpts from "Plan Would Ravitalize Areas Along Blue Hill Ave.", by Adrian
Walker, The Boston Globa, May 9, 1994
"The steering committee writing the plan included community activists, business
[Linda] Haar [the coordinator
aL:tivist:s, and local and state elected officials.
of the project] said she believes one of the strengths of the city's proposal is
the broud coalition working to formulate it.
Several other cities competing for
the funds are expected to rely heavily on outside consultants to formu.late their
propos;;!ls. "
" 'If it's the community plan, the community is invested,' Haar said.
'I f a
consultant give you a plan, how do you SUGtain it? How does the city sustain
it? I think we're way "head of the gl1me in that regard. '"
�·.
'''1 think right now we have a good comprehensive outline of how to approach the
of the communities in the empowerment zone,' said Howard Lebowitz, the
director of intergovernmental relations.
'What's needed now is to fill in the
details. H
need~
"Hanr 8,lid the empowerment zone differs from other urban renewal programs
because it brings together a wider array of programs that affect economic
development, job training, capital and social services."
" 'lnstelld of progrilms that throw money at people, we're sayin9 no none of those
models. indi viduv.lly, can work,' Haar said.
'You really need to bring combined
resourc,~s
to bear. ' "
Excerptll from "Phoenix Business Urged to Empower Zone", by John DeWitt, Arizona
BUElinQIIII Gazotte, April 21, 1994
"Phoenix businesses should jump into the planning process for empowerment zones,
de8igned to create jobs, the effort'8 leaders say. The re8ult, th~y say, could
be receiving $100 million in federal funds in a 20~square~mile areas of central
and sout;h Phoenix and substantial tax break!! for businesses that locate in the
zone. "
"Alfredo Guttierrez who is chairman of the 42~member city Commission on the
Empowen"ent Zone, says the zone does not have to be another big~government
welfilre program."
"'This idea this time is that the traditional progrilm ~ Model Cities, CETA, etc.
that have been around since the War on Poverty start.ed in '63 didn't work in
terms of saving inner cities or creating new jobs and long·term economic
developnent, , said Mr. Gutierrez, a former state senator who now runs the
political consulting firm of Jamieson and Gutierrez."
~
"'The challenge is to create something that sustains itself and that generates
permanent jobs,' he said."
Excerptu from "Dade Scrambles to Win Empowerment Zone", by Tony Pugh and Dexter
Filkins, Miami Herald, March 13, 1994.
".!\,st: whun it.: r;eemed like everyone had given up on AmeriCi1's ghet.:tos, the
tederul gov'~t"rlme!lt.: is poised to launch one of its biggest ussaultG in recent
llI~mory.
Metropoliti1n Miami may be a prime beneficiary."
"The Clinton people tout their program as an amhitiou!l departure tron, the failed
anti·povercy progri1ms of the past. 18 it? 'If t.hey really CO!lCent.:rate on one
arei1, ! think they could accomplish U lot,' said Nilsa Velazquez, who heads a
childcal:e center in wynwood. 'That money will make fI big dif ference. ' "
"Yet even lOW Metro·Dade scrambles to capture one of the prizes, there's a
nagging sense that after so many dashed expectations, it might be best not to
hope for too much."
"'J am [or the Empowerment Zones, and I want Overtown to be included,' said
MIlt.ro Corr.mi!ision Chairman Arthur Teele. 'But no government program has ever
chunged che physical conditions of the place. You are not going to see a 10C of
difference.' "
�------------------------------------------,
"Bud j(,anit.:.:. executive directo;( c!' the t'l'at;,onal Neighhorhood Coalition, an
infOrtrntion clearirK]hQus.I;! en 0..:;.10na1 policies and lo\.i-income neighborhoods,
suid Empowerment Zoncs axe a break with the failures of the past,~
'" It's a cOIr,prehensive approach l:nac's far better than the proposals made by
previous administrations,'
Kan~~2 said.~
"The focus on pUhlic a:-.O: private investment working together differentiat'!s
Empowerment:. ZOnes from past: at:tert?u~ 1.0 attack inner-city poverty. some t!xperts
(lay,"
"':;;Ht,eS 3utxcr: la proi\!ssor ot political science at the university or F::.oddal
::laya chat ideils of '!ncouraging privilte investment with tax incenti ves ~ - CQupl{l:d
with that publiC woney co r.ra.ll1 residents -- has nor. been tried extensively,
'Tho putliC-!)l::ivatJ> venture is one worth trying,' Bu':tco s<li,:,"
£Xcarpta from
Tr~bun~.
Vrgas Unicy to Get $100 million for Povarty
17. i994
~nftlay
FeQru~ry
Pight~,
Ch~¢ago
"Mnyor Rich..:>;l wale¥' walked a polit:cid e;:s::trope We{!:-;esday in u~ing :!lore '[.lv;m
2Ut> communtty leilcl.::r.. to join toger.her to draft a p::'an !'or ar. ansauit: on inner
.;i ty poven:y in Chiengo.·
"On tn.: cne huml, he was embraci::S a newwsr.yle, gl:'asoroots, coope,:ative approach/
for addressing Uroon l11f.;, ae ....n$ of!:'ering to .....ork h.;1nd·in·hand' with
lie1ghbornood ecdviscs in preparir? ::~e and-poverty plan for submission to
federal o(Cicial$ by June )0,·
ha~, he couldr.'t help himself ~t times from falling back into
City ant: ways and tell in.g the Ols$eml:>J.ed leaders what he wanted their
l>lan to include."
~But
on the ether-
eld~st.yle
"'the application process itself i6 diificult. A. city has to come up with a plan
that. will Ilttlick povert.y in a coordinated way on a number of front:3- and will
~orttinue once the Cederlil funds run out.
In addition, a city has to show that
the pll!:n has CCIl\(l from the community, :'ather than Ci ty Hall""
"lr was "hat requirement in mind tbat Daley said Wednesday;
'Our applicntiotl.
. hus to Jive lind bx:eath~ with the hope and dreams Qf t.he
p,!ople It \01111 heJp 80 t:hat the people in ·,:nshington. D.C .. reviewing i" can
rc:el OUl" ee,"Vcr ::lad sbare our enthuGiaos(ft ..
~ ceal t::w;lincsll QW':11!rS, cht,lrch
of you know much be:::ter ::l:afl the
'lL is critlcOflly important that community g'·(.mps,
leaderB
~rtd pecpl~
drive the process.
./\l~
l}ureuw::rtlcy in Wllshington, D.C., what: wi:1. work ir.
ME~10RANDUM
FROM,
SUBJECT:
FOR
~hc
cor.rc.l.r.i.'.H:f." ."
�By the end of this month, over 500 communities nation-wide are expected to
suhmit applications to HUD and USDA in a bid to have part of their community
designated an empowerment zone or an enterprise community under the Economic
Empowerment Act of 1993. Aa the application deadline nears, attention of the
press and the public will inevitably focus on the competitive nature of the
selection process--which communities will be chosen and which will not. Such a
narro",' focus, however, ignores a fundamental observation about the application
process: the "bottom-up" approach has sparked a significant level of community
participation and cooperation that will have beneficial economic effects in the
long-term even in the those areas that are not designated empowerment zones.
ThlS theme should serve as an integral part of the administration's message
around the empowerment zones over the next few months.
BACKGROUND
THE
~MINISTRATION'S
MESSAGE
MEMORl'.NDUM FOR
FROM:
EMPOWERMENT ZONES
SUBJECT:
By the end of this month, over 500 communities nation-wide are expected to
submit applications to HUD and USDA in a bid to have part of their community
desigr.ated an empowerment zone or an enterprise community under the Economic
Empowerment Act of 1993, As the application deadline nears; attention of the
press and the public will inevitably focus on the competitive nature of the
selection proce~~··which communitie~ will be chosen ilnd which will not. Such a
n<1rro",' focus, however, ignores a fundamental observation about the application
process: the "bottom-up" approach hrls sparked a significant level of community
jJiH·ticipntion and cooperation that will have beneficial economic effects in the
10111J-term even ill the those areas thllt ,1re not desigll'lted empowel"ment zones.
This theme tJhould tJerve as nn integrill part ot the administriltion'G mesGage
uround the empowerment zones over the next few months
BACKGROUND
THE ADMINISTRATION'S MESSAGE
ARIZO~A
BUSINESS GAZETTE
Excerpts from "Phoenix Business Urged to Empower Zone", by John DeWitt, Arizona
Bu:liness Gazatte, April 21, 1994
"Phoenix bllsinesses should jump into the planning process for empOIo/erment zones,
designed to create jobs, the effort's leaderG say. The result, they say, could
be receiving $100 million in federal funds in a 20-square-mile areas of central
and south Phoenix and substantial tax breaks for businesses that locate in the
zone. "
�'Al:1'edo Guttier:ez wriO 1e chairman of the 42-memher city ~o:~~miNs:ot: on the
Eq::O"derment Zone, cays the zone ooeD not have to be anotnc:: blg-gcvernr.~'l:t
welf;;:rc pxcgxD.m. n
"'This idee th1a t,",me ",3 thu;:, too tTa:iitlon:;.:' pttlgl."ilm - ~ooe: Cit:e:s, ChTA, .. \,;c.
- that have been at'Ol.md since the W.!U" en Poverty s:.atted in '63 ditln't work in
terms ( I f saving lnner citiea or creating new jc::'s <!rul long~ceYin economic
develolt1lem:. $!'Iid !l.1', Gutierrez, a f.cnmer std::e cenat.oe \oihO now CHilI! the
politi,,;>: c:;mS\!lllng f:m or J'"mievcn "no Gutle1'rez."
l
~
'The {tall,m;:Je is to craate somethlng that sustains i t5e1f and that :;ranCHetteS
jobs,' he !laid,"
p~.c""'!lam;n::
.,\ ::;on801'tiu"1 of' lead univer1lities • !1;lyne State, 1Jjic~igf'.n Btato llnd the
Univer.e:ity of Michlgall. ~ have agl:eed to fct;us reSO'L.t·C~5 ot: rO'.. :.1:.:';11e depan:nents.
including their schoDls of businf!5G de\'e:cpfn~nt, '..l'Cba:l studies ar::'i aTchi:;eCLl.,n:e,
on Det.roit.'s zone, ;:Ind t.o keep '..lP th" effort ...het:::er ;)et"roit ~wir$" in the
competi tion or
~ot
_,.
L,!'<.(ling De~.oic. ~oundations, l.nclud:ng Kresge and Hudson-Webber, have put
tcgethcr a $10 "1i1::011 fund to provide operating assistan.ce. to cOlTJl\unity~based
organ::'zat::c::!:l. ~
"Detro~t RenaisS.(lnce - the chief exeC\ltives of the region's S{) largont
busi:r,ess<=s, inlcud).ng GH, Chrysler an:i Foro - are ::aur.ch~n9 a cDltl"'"'1I;nity
development; bank somewhat akin to Chici'lgc' s fames South Shore Bank, aim1ng For
almost $50 mill ion in capital iZl'loclcn. '
~tJone (,f W sh~rt9tOrt'!I reit1.vented. user-friendly ways of running the zone
..
cornpeti t.ic:": ::'leans pieking the winners won' to be contentious, The pcocea!l could.
"Iso er.counter hl.:ge :mags when the fed<il:r-.l departmentr. begin waiving l'egu~ation[!
L:tat. hamper ::.ocai governrr.enta in the zones."
�.,
•
THE WHITE HOUSE
WASHINGTON
August 24, 1996
MEMORANDUM FOR THE PRESIDENT
FROM:
SUBJECT:
•
,.
•
•
GENE SPERUNG
JON ORSZAG
New Initiatives in FY97 Budget
Leon said that you were interested in reviewing the new initiatives that were already
in your current budget. Attached is a three-page list of these initiatives, along with pages
from the Budget on EZ/ECs, Brownfields, CDFIs, HIV/AIDS, Immunizations, Chaner .
Schools. and research and development. If there are any initiatives that we missed or did not
provide enough information on. we can send it to you later in the day.
,
�58
•
!
.,
"
experienced. skilled people serve the ill. the
frail. the isOlated elderly, and young peoph:
with emotional, mental. or pbysical. disabil·
ities. The budget also proposes $6 million
far The Pt:lints of Ught Foundation. All
told, the Conwration would provide opportuni~
ties: for over a million Amerieans to engage
in SCrvlce.
I
I
AmeriCorps sl;l'engthens America's commu
nities in several ways. N&.tional, SUite, and
local organizations operate AmeriCorps pro
grams, desiping them iadividually to meet
specific needs. AmeriCorps members do not
displace existing volunteers or employees;
they participate alongside the men and 'women
alr.eady working to solve problems at the
community leveL They provide a regular
source of service that most volunteel"8, given
their time constraints, ~annot offer,
The Corporation operates few AmeriCorps
programs lese!£: it.o:; primary work is ensuring
quality in AmeriCorps programs that. are
locally developed and implemented. The Cor·
poration works with States to run competitions
that determine what programs will participate
in AmeriCorps, Because States best know
their own needs, they enjoy considerable
auwnomy in determining priorities. selecting
programs, and offering additional assistance,
AmeriCorps is not a mandate for any State
or organization, aithough 49 States sought
AmeriCorps funds l.ast year,
In addition, AmeriCorps seeks to entX}u.rage
strong partnerships with the private and
non-profit surors. ArneriCorpa grantus must
raise matching funds from outside the _Cor
poration, ap.d many AmeriCorps programs,
are underwritten by businesses, inehtding
American Express, Fannie Mae, General Elce·
tric, IBM, and Timberland_
•
Following intense competition last year,
blpartisan. gubernatonally-apP<linted State
commissions and the Corporation chose 450
organizations to participate in AmeriCorps,
including the American Red Cross. the Na
tional Coniition of Homeiess Veterans. the
\"]OleA, and ioca! United Ways across the,
country" \Vher,ever they serve, AmeriCorps
members are meeting vital needs and getting
solld results:
TIlE BUDGET FOR FISCAL YEAR 1997
• In Kanaae City. they helped close 44 crack
houses and drove out drug dealers from
a 173·block community-and brought in
over 3,000 volunteers to keep the ~a safe
and clean;
• In Simpson County, Kentucky, they raised
the reading lel(f:U> of nearly half of the
county's second grade students; and
" In Miami, they reau.ited and worked with
aver 5,000 volunteers to b~ild 44 new
homes (or working families.
Many AmeriCot-ps members nct as "volun
teer generators" who reeruit and supervise
other citizens in direct service. The Corpora"
tion's motto-"'getting things, done"--erpresaei
AmeriCorps' commitment to aerueving direct
and demonstrable results.
With a strong commitment to community·
hased direction, -the Corporation maintains
a small Washington staff. The law litnits
; administrative costs included in gnmta to.
AmeriCorps prcgrnms to five pereent of grant
, am()Unts.
Empowerment Zones and Enterprise
Communities
As pan of his 1993 economic progTam,
the President proposed. and Congress enacted,
the Empowerment Zones and Enterprise Com
munities program. Under it. (ommuruties de
velop a strategic: pian- to help spur economic:
development and expand oppt:lrtunities for
their residents., in exchange for Federal tax
benefits, social service grants. and better
program coordination.
Empowerment Zones (EZs) and Enterprise
Communities (ECs) are parts of urban or
rural areas mth high unemployment and
high PQ\'{frty rateS. For EZs, the Federal
Government provides tax benefits for busi
nesses that set up shop. ruid grants to
community groups for job training, day care,
and other purposes. For ECs, the Govemml<nt
provides grants to community groups fOr
the same array of- purposes. EZs and ECs
bmh can apply for waivers from Federal
reguitnions: f.mabling them to better address
their local needs.
The 1994 competition for the first round
of EZ and EC designations generated over
�-
•
$,
500 applications as weU as new partnerships
for community revitalization, The 105 selected
communities made wen over $8 billion in
private-public commitments. apart from the
promised Federal resourceS. Even in commu
nities that applied but were not designated
as EZs or ECs. local efforts to marshal
resources and forge broad coalitions to support
an innovative ~anomic empowerment strategy
produced tangible benefits.
But many other communities lack the seed
cap'tal to imp}ement their strategies and
sustain private commitments. Thus, the Presi
dent now proposes a second round of EZs/
ECa to stimulate further privRte investment
and econonllc opportunity m distressed urban
and TUral communities and to connect resi
dents tn availabl.e local jobs, The program
would again challenge communities to develop
their, own comprehensi.ve, strategic plans for
revitalization. with input from residents and
a wide array of community partners. The
Administration would invest in communities
that develop the most innovative plans and
secure significant local commitments,
•r
The second TQund would build on the
President'! ~brownfie[ds" tax ineentive (de
scribed in Chapter 9), which would encourage
\ businesses to dean up abandoned, contami~
nated indUStrial properties in distressed eom~
munities. Also, this r(luntl would offer a
wmpetitive appUcation process that would
stimulate the pubhc-private partnerShips need
ed for large.-scale job creation, business ('ppor·
tunities, and job connections for :amiiies
in distressed communities, The Administration
would seek up to \05 new designations.
with communities receiving a combination
of tax incentives. di.rect grants, and priority
consideration for waive", o( Federal program
requirements from the Prj1sident's Community
Empowerment Board. chaired by Vice Presi·
dent Gore.
®
,,~
The proposed budget for the second rQund
•
includes $2 billion (or tax incentives, indudi-ng
•
59
RESTORING THE AMERICAN COMMUNITY
incentives for brown fields clean-up and small
business investment, and $1 billion for direct
grants and loans over three years. Each
EZ Dr EC would have to identIfy periorrnan<:u
bendimaI'ks to show what it plans to atcom
pUsh in each year of the to'year designation.
CommWlity Deveiopment Financial
1118iitntions (CDFls)
Proposed by the President in 1993 and
created a year later, the CDF! Fund is
designed to expand the availability of credit.
investment capital, fmancia! services, and
other development services in distressed urban
and rural oommunities. By stimulo.titi.g the
creation and expansion of a diverse set of
CDPIs, the Fund will help develop new
private markets. create healthy local econo
mies, promote entrepreneurship, res~ neigh
borhoods. generate tal: revenues, and empower
residentll.
COFls proVide a Wide range of financial
products and services-e.g., mortgage fuJanc
ing to first-time home buyn"" commercial
loa,rts and investments to $tnrt or expand
small businesses, loans to rehabilitate rental
housing, and basie financial ServlC(ls. CDFIs
ahlO cover a broad range of institutions
e.g., eammunity development banks, commu
nity development credit unions. community
devttlopment loan funds, community develop
ment venture capital funds. nnd microenter
prise Joan funds. These institutions. not. the
CDFI Fund, decide which individual projects
to finance.
l
The budget proposes $125 million for the,
CDFI Fund, with gradual increases each
year to bring the six-yelu total to $1.6
billion. Private sector interest in the program
has already dramatically exceeded expeeta- .
,ions. To. date. the COPI Fund has reeeived
req"uests fo.r assistance from new and existing
CDFls of o.ver $300 million, about 10 times
the amount available for the first round.
These applications, however, barelY scratch
the surface of long-run potential. The Fund
also plans to implement an aggressIve. long
tCTm program of training, technical (lS.'3istance,
and capacity building. which would help the
CDFI field grow substantially over time wtule
maintainmg high-quaHty standards and mar~
ket discipline. In addition. the Fund will
inaugurate an annual Pr:esidemial Microenter·
,prise Awards program and roordinare j, new
Federal Microenterprise lnitiative.
Additional resources would enable the Fund
tn implement a new initiative to support
pnvate institutions that provide secondary
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•
TIrE BUDGET FOR FISCAL YEAR 1937
homes to home-- a.nd community·based set~
tings without Federal
wai~en.
• COlJerage expansions without waivers.
The -plan enables States. withoot waivers,
to expand coverage tu any person whose
income is under 150 percent of the poverty
line. States would pursue these upansion.."l
witrun their per-person limits. thereby
limiting Federal costs,
Protections for the Most Vulnerable
The budget l1!tains the policy of helping
low-income senion and people with disabilities
by preserving the shared Federal~State respon
sibUity for their Medicare premiuma, copay
rnents, and de:ductibles. It also retains' pay
ment pn)tections fOT Medicaid-eligible NaUve
Americans treated in Indian Health Service
and other faetlities, These protections are
not subject to the per-person cap,
businesses the purchasing clout that larger
businesses have, the budget proposes $25
million a year in grants that States can
use for technical assistance and for setting
up voluntary pu.n:hasing cooperatives.
Health Insurance for the Temporarily
Unemployed
The budget gives-premium subsidies to
individuals whQ lose ~ir health insurance
when they lose their jobs, to pay fur private
insurance coverage for up to six months.
Slaws would receive funding to design and
administer the progra.rn. which would pJ"<Wide
coverage for about 3,8 million Americans
II yeat'. During the four-year period for which
this program is authorized, a Commission
would study and provide recommendations
to the Administration and Congress as to
making it permanent,
PROMOTING PUBLIC HEALTH
•
MAlNTAIN1NG AIm EXPANDING COV.
ERAGE FOR WORKING AMERICANS
Reformn to Make Health Coverage More
Accessible and Affordable
In ms State of the Union address, the
President chnllenged Congress to enact insur
ance reforms to enable more Americans to
maintain health insurance eoverage when
they chru;ge jobs, and stop insuranee compa
nies from denYIng coverage f-or pre-cxisting
conditiolls. The budget proposes that plans
make coverage available to aU groups of
businesses. regardless of the health status
of any group members. lnsurent would have
to provide an open .;nroUment period of
at least 30 days for all new employees
(whether or not they were previously insured),
and insurers: ¢Quid not individually underwrite
new enroHea-i.e" their premiums would
have to match ather t'nrQllecs' with similar
demogruphic characteristics.
To increase afford ability, the President's
•
•
insurance reforms phase out the use of chums
experience, duration of coverage. and health
status in determining rates for smail busi
nesses. To put the seU-employed on a more
equal (ooting Wlth other businesses. the re
forms I,rradually raise the self-employed tax
deduction for health insurance premiums from
30 to 50 percent, And to help give small
The budget continues our Nation's critical
investment in basie hiomedical research. an
invmltment that plants the seeds for Hfesaving
advances in medicine. The budget proposes
$12.4 biUion for NIH. a $467 million incn!:a8e
>over 1996 and a 20 percent in~rease aince
1993, Further, the budget advances our efforts
to eradicate, once and for all. the dreaded
aisease of polio. And it supports childhood
immunizations, which have proven their cost
effectIVeness time and agam.
The budget continues the President's strong
commitment to liIV/AIDS prevention and
treatment. It increases funds to prevent HIV
transmission by $34 million over 1996 ievels.
It increases Ryan 'White funding by $32
miUion over 1996 to ensure that OUf most
hard·rut cities, States, and local clinicS can
assist. those with AIDS.- It increases funding
lor potentially life-prOlonging therapies. includ·
ing some of the newly-disCQvered drugs that.
Ishow so much promise in treating AIDS.
It increases support for drug treatment
.one of the most effective forms of HIV
prevention. And it increases AIDS research
,funding at NIH in - the continuing search
for effective treatments. vaccines. and <l CUf'{!,
The budget also gives substance abuse
treatment and prevention a 17 pertent in
crease. helping expand efforts against drugs.
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.67
And it increases support for the Indian
Health Servlee HHS) by eight percent-keep
i.ng our Nation's commitment t.a Native Amcri~
cans and oontinuing efforts to promo'tc Tribal
:ldministrnton of IHS prog.t;anls.
Biomedical and Behavioral Research:
The budget continues the Administration's
long-standing commitment to biomedical and
behaviQral researeh. which advances the
health and weU~being of all Americans. The
$12.4 bU)ion. proposal for the NIH invests in
research ditected to areas of high need and
promise. as well as in hastc biomedical, re-'
search that would lay the foundation for future
innovations that Improve health and prevent
disease. The- budget includes increases for
mVJAIDS·reiated research, brf!8st cancer re·
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•
•
search, high perfonnance computing, prevenT
~ion research. gene therapy. and developmen
tal and reproductive biOlOgy. The Office of
AIDS Research will continue t(} coordinate all
of NIH's AIDS research. The budget also
includes funding for a new NIH Clinical Re·
search Center, which would give NIH a state
of· the-art resean:h facility in which research·
ers would hnng the latest discoveries directly
to patients' bedside$. NIH's highest priority
continues t(} be financing investigator·imtiated
research pr'I)ject grants.
Ryan
White
HIVIAlDS
Treatment
Grants: The budget proposes $807 million for
activities authorized under the Ryan \Vhite
CARE Act an increase of $32 million over
1996. This level would fund grants to CIties
disproportionately affeeted by the HIV epi
demic; to States to proVlde medical and
support sel'..ices: to community·based organi
zations to prO\{'ide HIV early intervention serv~
ices: and to suppOrt pediatric AIDS demonstra
tion activities. [n addinon, the Administration
has sought more funds for State AIDS drug
assistance programs funJ:!ed under Title U of
the Ryan \\<rute program-to finance newly
discovered Hfe·prolongmg AIDS therapies.
some of which are beginmng to receive Food
and Drug AdmtnistratlOn approval. Under this
Admmistrntion, funding for Ryan \Vhite grants
has risen by 89 percent. The budget for 1997
would increase Ryan \¥h)te fundmg oy 132
percent since 1993.
HIV Prevention: The budget proposes S618
million for Centers for Disease Control and
Prevention {CDC) .HIV prevention activities. a
$34 miUioo inc.rease over 1996. At the historic
White House Confenmce on HIV and AIDS,
the President made his commitment to HIV
prevention clear: "We have to reduce the num·
ber,of new infeetions each and every year Wltil
there are no more new infections," A portion
of these funds would address the linkages be
tween substance abuse and H!V infeetion.
,
IntlUin Health Service: T):ie budgm: pro
poses $2.4 billion faT the IHS, a $186 million
inert!ase. IHS clinical servicM-ofien the only
wuree of medical care un isolated reservation
lands-grow by $138 million. maintai:ning our
commitment to Native Americans, The budget
allows the Tribes to continue taking greater
responsibility for managing their own hospitals
and clinics; it increases the "contract support
costs" that help underwrite Tribal actrvities by
31 'percent, to $201 million. In addition. the
budget proposes a major new initiative to
bring water and sewer lines to those Native
Alnencans still without adequate access to
these basic necessities. This ini.tiative would
ensure that about 4,000 more Native Ameri<:an
homes receive water and Sewer lines-a su,p
which nas been critical to improvm.g public
health.
Substanct! Abuse Treatment and Pn!rHtn.
lion: The, budget increases support for State
substance abuse treatment and prevention ac
tivities by $67 million, to $L3 billion. The
budget reiter<ltes ;:iUppoTt for Performance
Partnerships. which would give States more
flexibility to better design and coordinate their
substiUlce abuse prevention and treatment pro
grams, and better target resources to local pri·
ori~y areas. In addition. it increases funds for
substance abuse demonstration and tramlng
::u:tivjties by $140 mUllon. to $352 million, The
budget establishes a $20 million Substance
Abuse Managed Care Initiative that, with the
rapid growth of managed care, wouLd help to
establish service guidelines and design quaLity
aSsurance, monitoring, and evaluation sys·
terns. This strong: suppart for substance aous€'
::'\ctivales wouid fmaoie hundreds of thousands
of pregnant women. high risk .Youth. and other
undeNierved Americans to receive drug treat·
ment and prevention services.
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68
Special Supple~n.tal Nutrition Pro.
gram (or Women" In.fant•. and Children
rwrc): WIe reaches over seven mimon
women, iUfants. and children a year, providing
nutrition assistance, .nutrition education and
counseling, and health and ImmunizntlOn re
ferrals. As a result of funding incTn-3ses under
President Clinton. WIC participation has
grown by nearly 25 percent in the past three
years. The budget proposes $3.9 billion, to
serve 7.5 million individuals by the end of
1997, fulfilling the President's goal of fuUy
funding Me in four years.
Immunizations.'· The bud~t proposeS $957
miUi.on in spending on immunizations, includ·
ing the Vaccines for Children program. For
many diseases, the Administration is ahead of
•
•
•
schedule to meet the goal oi immunizing 90
percent of two-year.old children by 1996, 1'he
most reeent figures show that. from April 1994
to December 1995, 90 percent or more of all
two-y,~aT·old children were immunized against '
diphtheria, tetanus, pertussis. and hemophilus
influenza type B. Further. rates for immuniza
tion against measles. mumps, rubella and polio
are approaching the 1996 goals. Nevertheless.
the Nation must maintain its efforts in order
THE Bl'DOET fOR FISCAL YEAR 1997
to lock in the:re gairu and meet the goals for
the remaining immunizations,
The budget also includes a major $47
miilion initiative in the Department of Health
and Human Services IHHS) to eradicate
polio-preventable through 'immunizations
throughout the Wflrld. iThis HHS funding
comes in addition to polio-eradication effortS
that the Agency lor Intarnatioo.ai Development
supportsJ Polio is. already gone from the
Western Hemisphere. nus shows that, like
smallpox, palio can be wiped from the face
of the earth, sparing nIl children from trus
crippling disease and saving the United States
the hundreds of millions of dollars we nGW
spend to immunize against it.
lnfeciiou$ Disease: The budget proposes
SB8 million for CDC's (:ooperativc efforts with
States to address infectious disease, .an in
crt!'3se of $25 million. It would support training
and applied research. and States' disease sur
veillam:e capabHit}\ All Ameriean.s face threats
from the onset of infeetious disease problems"
such as drug resistant bacteria, and emerging
viruses, such as the hantavirus. CDC works
with State health departments to monttot' and
prevent such problems and to contain out·
breaks_
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78
THE BUDGET FOR.
This Administration has energi;ed State
and local efforts to raise the educational
achievement of every child and to create
safe learning environments. It also has worked
with <!ongTeSS to improve the largest Federal
education programs (or disadvantaged chil
dren, focusing them more on results and
jess on proeea:.
GOals 20f'J0: Th.ia Adm.inis.tration initiative,
enacted in 1994, supports State -efforts to raise
academic achievement for all students, Goals
2000 helps States and communities focus on
res.ulul. It builds on the National Education
Goals, firtt articulated by the Nation's gov
ernors (led by then-Governor Sill Clinton} and
President Bush in 1989, wbich provide clear
targets but encourage States to develop their
own means to achieve tbem.
•
States and localities reooi.ve funds to set
their ()wn challenging academic standards
for all children, then design their curriculum.
teacher training. educational teehnology, in
struction methods, and assessment tools
around them. Goals 2000 also heJps States
and schools involve parents in the education
of their children. Currently. nearly all States
participate in the program.
The budget proposes $491 million for the
program, 32 pcnent more than in 1995.
Under it. every State and over 12,000 schools
could re<:eive grants.
Churier Schools: Charter schools are pub·
He schools that parents, teachers, and commu
nities create, and that States free from most
rules and reguiations and hold accountable fOT
raising student a~hievement. Begun as a
grassroot.s movement In 1991, and supported
by Federai start-up funds since: 1995, public
chart<:r schools now number 250 nationwide,
f'tSCAL YEAR 1997
some of them already .showing results in high
er student test tfoores and lower dtop-out rates.
The budget proposes $40 milliOll for public
charter schools in 1997, and increases over the
next five years to fund start-up costs for up
to 3,000 such new schools.
Titu I-Edtu:Glian for the Di.odvo&
taged: Title I provides funds to raise the edu
cational achievement of disadvantaged chil
dren. In 1994. the President proposed and
CongHS$ Ildopted changes, to: focus Title I re
sources better on ate4$ ....ith the largest con
centrationa of low-income children; set the
same high standards: for those ehildren as for
all others; and bold schools accountable for
progress toward achieving thc.se standards.
Schoola now have much more flexibility in
using these funds. The budget includes $7 7
billion, six percent mare than in 1995,
<
EduC(lticn Technology! Technology ean ex
pand learning opportunities for all students
and help raise student aclUevement, Yet many
school districts lack the necessary resources
to integrate technology fully into their school
curricula,
The President has launched a national
mission to ensure that all children are techno
logically literate by the dawn of the 21st
Century, with communication. math, science,
and critical thinking skills essential to succeed
in the information Age, Specifically. the Presi
dent proposes a Technology Literacy Challenge
Fund, with (our g.oals: {1} helping States
put enough computers in every classroom;
C~) connecting these computers to the Informa
tion Superhighway; (;}) giving teachers the
ttmning they need to integrate technology
into teaching; and (4} fostering the develop
ment of rugh quality, widely available edu·
HOW STATES lJSE GOALS 2000 TO ADVANCE THEm REFORMS
•
•
1n Maryland, scores on t1!sts designed to measure progress tnwurd the State's standards ure
inerttllsmg year after year"
In M~dugan. 13 Upper Peninsula li<;hooi districts art! working with Bay Mills Community CoL
lege and Lakc Superil)f" University to tmin teaeheTS to ns~ f~chnol~ to Impro\'e math .'lod
$cience teoehing and learning.
In Harrison COUnty, Kentucky, Goals :.wOO is helpin~ train par"nts as volunteer mstructlonal
aides und r"oehifig out to par(!nts through cable teleV1SlOn proe-rams and homework hothnr.s.
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96
THE BUDGET FOR rtscAL YEAR 1997
tems!. The partnerships enable the private
sector to translate new knowledge into novel
technologies that benefit its bottom line and
society at large,
Science and Tecbnology Highlights
Under_the 1996 budget resolution, Congress
would cut support to S&T programs by
about 30 percent by the year- 2002. 1 At
a time when increased global l;:ompetition
threatens U.s. mlU'keta, and when Japan
has proposed dl.1ubling its investments in
S&T. the President believes we cannot afforn
such deep cuts. In his budget negotiatil.1ns
with the bipartisan ctmgTe5S1onal leadership,
the President has repeatedly reaffirmed his
commitment to eeonomic prosperity. edueation,
health, the environment, and national security.
8&T investments are critical tl.1 these goals.
The budget fulfills his eommitments by:
Incrt!!(J.i.ng Total Funding {or Science
and Technology: This budget marks the
•
fourth, straight year that the President has
proposed increases in S&T investments. Table
10-1 shows the proposal to invest raughly $73
billion in research and development (R&m,
over $1 billion more than in 1996. 2 In keeping
with previous efforts, the budget also provides
an increasing share for civilian R&D invest.
ments. with those investments at 47 percfmt
of the totaL Table 10-2 lists selected S&T
highlights.
Bo.t:nling Funding fOr Basic Research
and Health Re,earcm The budget proposes
$14 billion for basic research. a $218 million
increase over 1996, including a four percent
increase for the Natinnal Scie-nce Foundation,
Given the importance of basic and applied
health science research. the budget boosts
funding at the National institutes of Health
by fOUi pen::ent.
Strengthening
University-basf!d
Re
search: Umversity·based research is key to
America's future; simultaneously, it. provides
1AmN'II;U It.U<<:l:ltum (Ot tt4 Ad"*!)e~lU ..nt of SCI"",,~" 19'9S.
'~iIt'.. ttt:i IiCd ",,~,lopm,nl (!t&Pl i, iii ""dd)'·u,,~pttd mU'Ut~
«
of itlv,utmmt ill S&T
•
new knowledge and new technology, and it
trains the next generation of scientists and en
gineers. The budget proposes $13 billion for
university-based research, an increase of $155
million over 1996. It also proposes $22 billion
for merit·revje-.'1ed research (six percent mare
than in 1996), which compnses 31 percent of
the R&D bud~t!...
IrUJe.Hng in /nncVtlti01l to
create
New
Job. and InduBtrie.: Under this Administrn~
tion. many of the new jobs have 00en high~
tech. high-wage jobs in lndustries like b,ow
'tecnnalogy and computing-jobs that didn't
exist a decade or two ago. The budget main.
tains a strong investment in technology,t<l fos
ter these high"priority civilian S&T industries
and jobs, Funding continues or expands for
high-performance computing research; for the
Advanced Technology Program, which works
with industry to develop high-risk, rugh.payatf
technologies; for a Manufacturing Extension
Program to help small buSiness battle foreign
. competition by adopting modem technoll.1gte.s
and production techniques; and for other pro
grams.
Increasing ~nvironml:ntal ReHorch:
S&T investments are critical for enhancing en
vironmental quality, While we are malting
progress on many poUution fronts. emerging
global environmental problems pose new risks.
The budget maintains vital research to provide
safe food. dean air, and pUre water. It sup
ports research into new environmental tech
noiogv:;!s to proVlde better environmental pro
tection at lower cost, while generating jobs and
exports, It supports programs to increase
energy efficiency and the development of re
newable energy SOUTee5 that cut demand for
foreign oi.L and partnerships with Industry to
develop cars that use less fueL The budget
invests in programs that preserve biological di
versity ,and help us understand and prepare
for changing .climate conditions and natural
distu~ters. These investments also provide a
sound scientitic basis for rational rule-making
on. and the cost-effective implementation of,
environmental regulations. (For more details,
see Chapter 9.)
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,
MEMORANDUM FOR nm VICE PRESIDIlNT
Juli.. Po«or
cc:
SUBJECT:
....
121002
No_1B,1991
FROM:
.'-.""',,.-
J)ecisiOD Memorandum on St-to-nd Round
Empowen:nent Zone Designations-
The purpose of IhilI memo is _ , Fim, to _
the ~ and programmatic cmlStroinIs
surroundirls the implementation of • _
round of Empcwcrmenl Zones (EZ); and second, to J>'OS'!Ill QPtioos
regarding the designAtion process fer • _
round of llmpcwerm<;ot Zones.
The C!lB IUI$ b<en coordinating discussions with the NBC, DPC, OMB, MUD, USDA and Treaswy on
the d~ of _
and sound proposals for yc\l1' review. Several i""aliOllJl 00 • designatkm &trnlell.Y
wet. miowed by the board but, thorough analysis proved them to Jeg;slalivcly, pmgnunmatieally 01:
_ v e l y infeasible. In the final aoeIysis, two """"""'" positious emerged whiclt rellect the positions of
the leadmbip on the CEB.
I. BackgroWld
The premise of the Empo-wmnent 2,(me Initiative is to provide a bolistic approach to revitalizing our
natioo's distressed urban areas, The.:: first round .pplication proc:css provided communities with incentives to
develop. comprobensive eomtl1unity-<lriven.tr.tegic pi... The FederalfjOvemment supported that process by
providing
incentives and. f1cxlble bloek grant of Tid. XX funds.
_OIlS'"
_rt
Although the premise of the EZ lnitiativcIUI$00' cbaeged, the _ I funding and tax benefit pa<:kagc
available r", RowuIII desigruotions has been ~ BIld does MI G1l!T<:!!\lY
th. holistic IlIIlI
~&jye apgJ'OACh act earth in the first round
U. Programmatie and Budgetary Constraint. of Round U
The T""plI)'Cf Railer Act of 1997, sigcod into law by the P!cxldent on August 6, pmvides the .t.olntory
au1llority fer 20 new EZ designati_ (IS url>an and 5 rural), nU'atut"!lJls Illr the new rones to l!O desilIDlW<d
l:!j: January 1. 1m. The Ad also provides for new tax. incentives to support those 2011(:5.
I. Graut Benefits An Uncertain, Leis Gencrnus And Not As Flexible
The main difference between Round I and Round n is a reduction in the amount and. flexibility of grant
funding available at the time of application. ROWld I was funded through A flexible block grmt ofS)OO
million for EZ.s and $3 million for £Ca. This block grant providCd pommunities with the oppol't1mlty to
dovelop a comprehensive strategic plsn that was tailQred to loeally driven needs and resources.
I
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III 005
Advantages
•
•
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<IIl'Iiest provible ... of lax """",ti.,", \\1lkI1 are olteody available to cks!gnated
communili... Streamlines 'Pplioatioo p1'OC<OS ond_ WlIiting perio<I for making_:
_
that at Icost twenty cotmIlllftitics would go lhrough the ..... type of bcaolicial
opplioatioolstrategic PlaMi!t!l P""""'" that first round applicants ~
er.a.... small pool of 40 Senator< aod 20 Repn!senlanv.. who arc . _ in obtaining the
i1='l>1. _funds;
All_ the Administration to """'" lhruugh the difficult P"""'" of cboo6iII8 twenty wUmets 00'
of yay large pool of oppIicants at • quiclao- pace.
Disadvantages
•
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Criticism from GAO, P*lic Intmst Groups aod RunII Communities, fOl' nol ellowin& enough
tin>e or providing uppropriate tecbeica1 exp<:rtise fur cotmIlllftities to put together the _
"tax focuscd" plan;
Only the 20 deoignAtiQns will be required to doveIop. comprehensivc!stratogic plan i-.d of
ell the originalappli_ts;
If you II!ln<lUIlCO the wUmets befilrc going to ,"",-s to ,lOOk the additiOlUll I\mds for the grant
,ide of the program. you ........ly limit the number of member< inter<$led in fundin.!I the
prosrnm;
If tlexlble - " t\lC not approved by ,"",-5, we have crcru.d • program that i. i\S$OCl..oo
with tax~~ed "Kemp styled strategies;"
IV. RecQmmendation
!loth .fthe opOoos pNSented '"""'" Ca1l short of moetlng the objectives aod goals develop«! duriog the
fm RDwld Ilmpo~ Zone Program. Yat, this m<:Uloraodum
wriu.., under the _ n o o thet the
Administration must move forward \\1m the designation of20 new zones without having sccw-c:d flexible gnnt
funds. If this is the"- the best option in sapport of viable oommunity development, would be Option N L
w'"'
V. Decision
_ _ Optioo!
-.- Option 2
_
Discos> Further
4
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January 29, 1996
MEMORANDUM FOR THE PRESIDENT
FROM:
LAURA TYSON
SUBJECT:
COMMUNITY EMPOWERMENT RECOMMENDATIONS AND
DECIS[OtlS FOR FY 97 BUDGET
In your State of the Union Address, you announced:
", .. ,through our successful empowennem zones and community development banks.
we are helping people to find jobs and start businesses. And with tax incentives for
the companies that clean up abandoned industrial property, we can bring jobs back
to places that desperately, desperately need tbem."
,
We are working on budget initiatives to implement your statement:
1. Tax Incentives for Clean-up of Brownfields, Attached at Tab A is the Urban Policy.
Working Group's recommendation on a new tax incentive for clean·up of contaminated
sites ("Brownfields in'order to put chern back: imo productive usc to help develop
sustainable communities and create jobs in distressed neighborhoods. The budget cost can
range fmm $2 Billion to 5 Billion over 7 years.
lt
)
2. Additional Funding for Community Development Banks. Attached at Tab B is the
Working Group's recommendation to request substantial additional appropriations for your
community development banks 10 catalyze a self-sustaining network of CD Banks, micro
emerprise loan funds, and relared secondary mark.t initiatives by the year 2000. The budget
cost can range from $1.25 Billion ro $2.5 Billion over five years,
3. A Second Round of Empowennent Zones and Enterprise Communities. Tbe'
Working Group is also in the process of considering an options memo for a proposaJ for a
second round of Empowerment Zones and Enterprise Communities, The budge< cost of .
these optiOns range from $1.25 Billion to $2 Billion over seven years. I will transmit the
options to you when ready.
Your NEC staff and [ are working closely with OMB and each of the agencies on tbeir
own FY97 Budgets and non-budgetary polices that will fully support tbe basic principles of
your community empowerment agenda. Under separate cover, r will provide you with a
repan that summarizes how the full range of such initiatives is designed to implement your
community e:mpowennent agenda.
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February 12. 1996
i'vIEi'\'10Rt\NDUivl FOR
TilE PRESIDI:NT
FROM:
LAURA TYSON
GENE SI'I~RLlNG
PAUL DIMOND
SUIl.lI:CT:
COMMUNITY EMPOWERMENT WORKING GROUP
RECOMMI:NDATIONS AND FY 97 BUDGET
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CONSENSUS
In YOllr Slate orthe Union Address, you :lllllOllllCCd:
" .... lhrough our sllccessful empowermellt zones and community development banks, we arc
help; .. g people 10 find jobs and start businesses. And with tnx incentives for the companies 1hal
clean up abandoned industrial propf.:rl)'. we can hringjobs hack 10 places that desperately,
dcsp..:r:ncly need them."
The Principal!' have achieved consensus on recommending three initiatives for your FY97-2002 Budget
In further implement all three aspec\s ofyollr t1H!ssagc -- Hrownliclds C1can-Up; a Second Ruund III'
Empf)wcrnll!nt Zones and Enterllrise Communities; :Iud :.uldHionlll supJlort for CD Banks. The
NEe is working dosely with the OYP, OMB. Treasury and the relevant agj,!ncies to provide the
lH.:CL:SS;\ry details in the FY97 Budget for your ;lpprovlli. TIll.: Prillcip,lls nlso recomm"nd lhat you n:111:1;n
Illindrul orany opportunities to include such initiatives in any l1alanced Budget agreement Ihat l1ldy ;'1.:\
enlerge (roll) negotinliolls with Congress this year.
1. Ta.\ Inl'clI j h'cs 1'01' Clcan-lJ Jl of BrownJicltls. Tile Princi pal!'i propose to incluul..! :lpprox imtltely $}
hilli()n in lax incentives ror FY97-2002 to encuurage Ihe clean-up and redevelopment of land hy new
jlufch:lsers and owners who arc required under current law 10 capitalize the cnsts of cleaning-up
environmental contaminalion. Treasury is now working closely wilh EPA 10 score optiuns tu make Ihis
lax incl..!l1tive uvuilahle in all census tracts with poverty ratcs 01'25% or morc. contiguous tracts that arc
zoned 75% or more industrial or commercial, and all EZs and ECs. The proposed tax incentive will
involve SllllH: 10r]}1 of amortization of clean-lIp costs on a fairly rapid basis. For example, a IO-year.
~OO'X, declining balance schedule permiL.s deduction of 113 llie co!'i1 i11lhc fi.·sl year ,md Il2lhe eosl hy the
third y.:ar; it w(luld provide a pn.:scnt value equal to 80% ofa current deduction ofaJi clean-up CO!'iI!'i. We
will pre!'iellt Treasury's Jin:11 scoring ortl](.; optiuns to you as soon ,l~ available.
1\ IIel'llal iv\: 0111 ions. 1\ Itcmativc opl ion!'i include: (I) raising the total revenue loss tll
:lpproxinwtely $5 billion dollars to perin it eurrC1\t deductioll of al! clean-up cost in such are;lS: (2)
Ilarrowing Ih<.: range or areas covered su bslant ia II y to perm il CU1T<.:nt dcdud ihil ity; or (3)
prnvidi11g:l capped amount oCeurrenl 11<.:tluetion 10 each stale, which would then ratiollthe t:1X
incentive among eligible areas Ihrough an application process.
�2. A S('conti Round or gmpowcnncnl Zouc~ aud Enterprise COllllllunitj(,.s. '1'110 pnlposai in;;\udes a
wugl; vI' tax iUCl'lllivt:;; (lolal!ing $1 hill;!,)!l 0\ er 7 YC<1f:» .md (liscrCliullHry invcstments ($ J billion Mer
Ibn.·..· yenrs) \0 SllppOfl H sI;wmJ found of 105 Els and ECs (inehlding 25 urban and 15 rural EZs and ,10
arb:);' ;\lld 25 ruf411 ECs), Attached is ~1l1 llutli:v.' Ihul illusl(iltc a rang!.: oJ'propos...:d dis.:rctiollary
im't:SlmCllh :L:d ta,\. in..::cntjycs tluJt might he uS<.:d to help spur busincss ill the zon(,!s :llld to help n.::;illcllb
tind joos. T!":':<k~ury is working Oil final ;;c0ring l'stilllatcs for the tax incentives, whit..: OMB i,:; rcs<!rving
funds illthc discretionary budget offered up by eilch participating H£cncy to demonstrate their suppon for
a second round of EZs and ECs.
Concerns. Some principals expressed (';()Ilcern thn: the ?roro~J range or l:':dl.:rnl investments did
not include socinl and Ot[ICf scrvl1.:c&. S\Hnc Principals cxprcs:;ct! concern tlml \\1.: do HO! yt:! ;mn;
evaluation::;: ! a) or \\'hi.)t partkular lUX incentive:: will mosl l..'!Ticicntly stlmu!:ttc uu;;iw,;;-:s
expansion ,11 pOtlr p-lacc)' lind (b) of Ihc n:sults of the firs! round. SOllll" others fc'(!n:;\ lhat
ph)posing a &ceoml round mig!!1 distmu fllh!mioll and energy from -;ucccssfully il1l[1lcmclllillg !Ill'
firs1 !Olin;!.
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Reasnus JOf Rccomn'u.:ndatioll. The Prin.:ipills agn:ed, hmvcvct. that ihe primary purpo~c oj'llJe
fedeml incenlives and Investmcnts is not to promise any "tup~down" federal solu[lon bw instead
10 provide it"lCal communities wilh crcdlhle new tools 10 cngn£c th~ private scl:lN in d~vcl\lping .~
IhHn the "b'.l!loll' liP" .~ their own wnys (0 expullu husiness and to help penr>iI.; rind jobs. The
i"dct.:1ion crircfin will also Clh,:oufagc )o(.;al COlllHHll1itics 10 implement yom fnundutiun p~,:j.,;il..;$
(~.g., publit.: safety. good SChl)ols. and school-to-work) in ways th:H suppon busitlCSS expansion.
k:Hrnil11; high skills. and illV(l]viog the an;"clcd tnmmuniii;::; fully ill lh<..' desigll and
1m plcl1Icnlnl ion () r the 10c:I1strategy. Th~ Prine ipals also agreed tbt pfj'po~iJ\g a sel'ond !\lllnd
w(Hdd respolld (a) to 1he dc,lrucl11and for m~\re EJI,$ m:u ECs genera:e;:! hy ihe lir:'l maud ami {h}
It> the growing !1i~;;UL·tball StLrpOrl for [Zs und ECs (e.g._ tllc SCWll lirsl-ycar Rcpubl!cnll
Senalors 1)l<1ising your E7JEC progr;m) in jthiladdphia am! a bi~parti~m EllEC bill pwpl,scd by
Sl.!llators Liebcrman and Abrahnm), l:illaHy. the I'rineipul~ agreed lhat you should pr(lp(l~i..· a
"llb~lltnl inl cxpnlbioJ1 of fhi!> signature Iniliatlvc of yO\lf Firsl Term as tl pal1 oj" the FY97 b!l~I;;~l
in nrJcr h, cnuhle )'uu and the Vice Pjl.:sidcJ1t to lake your hopeful mcssng.: 1'( cOmnlllllilY
E%s ,I:ld ECs will
cmj1o\\,crment across the CllUllly. A bwJgc! pnlposal for a second round
demonstrate yom commitment in the ye;\r$ ahcml1(1 e.;:pmH::rillg local cOllulIllilltics "to lilld lht;
ways to gel Ihe pri\,ilte ~cctor to aS5UllW lits] rightful roll: as [ht; driver Mt:coLlllmic growth" ill
p!nces largely :thanJoL1..:d m'cr thc past gl·m.:ntlion hy thc {lId CWI111I11Y.
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3. Additional Fundin!.! for Community l}i..'vciuJimenf Hank... The Principals rc;,;olluncnd tlMt the FY97
hlldget include $125 nlil!lt'll in Treasury':; appropriation for the CDFJ Fum!. rampmg lip ill c!1ch c,tsuing
ycar jhr :I tOl.!! or $ 1,25 hllli011 owr five )'r.;:\i's. "j-rCaSl1fY is 1I1~() l:x:!milling whe1her 1hen; j~ any pOk1l1ial
filr ,ldditi(!n~ I support ,111 Ih~ mandatory side llt' 1he hudgcllhmugh pmtial cxp~'nsillg for C(luity
ilwes;m..:llts in CI) B:mki> -and Vcnhlre Funds: slich a tax lm;clIlivc for invcsling II) cons wuld he
limil-t;'d 10 EZs n:;: lin intcgml..:urnpOIlt=nt of tile additional tools 10 spur business invc5lmcm, slnrHlps lind
expansion ill the zOlles.
Reasons tor
!h~vOJl\111Cl1d:lli"n.
This funding is ('s!'cmiall() achicq, your vision oj" catl!y.zil1g it
s.c:f--!'uslainillg IH:twork of COIlHJlIu~i!y tk:vdop:rtent hall).;", micro-cnlcrpri:->c rinancill!;;. vv'lIurc
fuudf;, ami :'cblcd sc,,:ol1dllry murkct initiatives hy the !.I:i\ldl of the new t:clll,lry, Yom suctl:S1fui
uefensc of'lhc Conmmnity Reinvestmcnt Act from attnck by some Rep;,blic<lns 10 C<,)ngn:s~
providcs a pillfl\)rm lor YOIl, thc Vice President, and the Sccrctaric~ ofTrc,1sury. I IUD,
Commcn::c, and t\grknlturc. leading mayors 10 1:Ull1ch u campaign to engage the private sector
and !llajor fimmciul institutiuns in joining this n:llioll~wide network ofCDFls to assure acci..'~s to
capi!al Hild huslllcss c:\jh.:rtl;;c.
Your NEe slaff om! ! also continue to work clos.<:ly with OVP", O?vlB, Secretary Ci~ncros Ilnd ;:adt oflhe
,lgencie-s on th!.!ir ()wn FY97 Budgets find non-oudgCiary polices that will fully supporl Ih... basic
principles ofyollr community empowerment agcnda. We will provide you with a summary of the clllin:
pnckuge of pmj1l.)s,lIs as the budget j1rOC\!SS moyeR lorwanL
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CO!1C"CnlS. Curn:nt tax law rt.:qlli..-es !lew purchasers to (.:(lpi\lIli%c virtually al: 0:' the cos:s 0"
<.',lcnn~up on t!lC grol111ds that purchuscrs (jiSCOllJlt the purchase prit.:c by 111>,. \ HnWllll! HI'tl;..:: C0S1S of
cknn-up: in contrast, Cllrrcnt uwnefS wllp cil:lIsed the po!Jull,m ure gCflcr;.:.Hy pcrmiHcd 10
ClIrrcntly (leduc! nil of the costs of CIC<lIHlp 01) Hie theory lhn: "m.;h co~! :,rc gC!H~r:l!ly rcbkd lii
III('i1' (11l'!,!.oil1g, fwd..: or DHS:IlCSS. Some j·rincipalc, therefor.: cxp,c~scd n o)JKeJ'll that only Cllffl:n!
,kd\lL:libility 0t'c:c:m·up costs fm,m:\\' ;)llrdwsl'rs w0u!d be view,,:,1 m, Ul adequate tllt>..'ntin.:.
Olh ..~r principub t(;;lP.:d, hO\\--evcr, lhat II 11 less lite B,<)wtliiclds 111:< incentive is IimillJd to disircss;:d
<;mnmn",j;ics, il might .serve only to r:li:::c (he prit:c of :111 contamimHet! i:lfld by !ll\! amount of {h.'
de;\I1·llp.
!\cnst1ns E)r 1~~cumme1l{htion. On balance, the Principal:; believe that1hc proposed pon';;},
criler::} fix digihility are :\boll\ right to dcl1nc high-povcny :1r<.!!IS which CUll bcncEt I;'Com ;-. ta;\
ill'.:<:lIliv.: to Glenn up aoumloneu .lamL 'I'll", Principals alsu bdkv\: 111;11 :; :cniH-loddcd
;!lill)r lization sdwdulc witli a present value c'ltlnl to MO"/o of Cll;Tcm d.:uucl ibil ity is ;"um cit: ," 1<)
\'",<.:varag,1.! Ill,: ckan-up and devcioplll<.Cll; of"colllamin;\lctlland tl1:1' is mll~t nkc~y 1\) Ill.; pill h;l(:k
iLtt1l)(p;iUI?!ivc usc hy new pUfcliasl.::-L The I'rmclpals ,,:::0 bc:icyc thaI :,w:h ,m illI:CnliYe
PJo\'ides it gOUt! "op.:nillg hid" tlla~ wi:lll<iv'~ l;cr,c:'tli j1plilica! npp(.)a: nlld will ellahle yUlitu take
ti:.: Ic:!d in building common grol.ml" ,mIlle is,,~;I.!, while expn::s:-ing, yuur willingness to lVor~
with nil in!t.:rc:-tco par~i1:s nn clUlcting :hl..' HWS: cfl',:ctive ,lIld .:fficil:llt illc~'l1liv!,; possihle. Finally.
the Pr:'lcip(li;; I~.icvc Ilia: thc option or sending i\ cappeJ amount 10 el1able slnlcs to nltrol' a
Cllrr.:m dcdu::tiol: would not be as erficicnt ill enabling the privflte s~ct()r 10 geL to work rica:'; :g
up ab;:lldontxl ~;llld and putting il back il110 productivc usc; it f1r~o \"''!Hld nU:"11 111;01 the
Browunclds c!l..:alHlp 1M'; ilKcntiv!'; In igbt losc mllch of i~~ appeallo m:lj urs, W!h1 arc its )1r::::ary
p,'OpnIlCIlLS and view thc cities ns the I'lghlful bC;1ct!cinries,
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THE VICE ;':IRESIDENT
VvASlllNGION
March 23, J998
The Honorable Gene Sperling
Assistant to the President for Economic Policy
Chair - National Economic Council
The White House
2FLIWW
Washington, D,C, 20500
Dear Chair Sperling:
1 am writing to follow-up 011 our meeting of the Community Empowcnnent Board
(CEB). The meeting was very beneficial in setting out our next steps as we work together in
continuing to move forward the Empowennent Zone (EZ) and Enterprise Community (EC)
Initiative and our Community Empowerment Agenda. Most important, not only must we
continue to support our current efforts, but we also need to apply the lessons we have
learned to prepare for a second round of EZs and to integrate broader regional strategies into
our approach.
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1 want to ensure that, as in the first round. the application process provides a lasting
benefit for all communities competing. Therefore, we must do
we can to assist appHcants
in pursuing comprehensive strategic plans that link various issues f!:om across the breadth of
your agencies-~from the environment to transportation, There is a specific opportunity for
communities to pursue several new areas that we discussed in the meeting. such as linking
transportation to welfare-la-work. intra·community communications programs, energy
efficiency. pre-emergency disaster planning and, where applicable. military base
redevelopment
an
To get the most out of the applicafion process, 1 am asking that you work with the
applicant c;otnrnunities to provide your expertise and technical assistance where it can be
helpfuL There also will be many conferences and workshops in the coming months that wHl
require participation from all levels of your agency, from the national to the locaL In
particular. I want to highlight the need for yo~r support and expertise for our annual White
House CommunHy Empowennent Conference, which will be July 15-16 in Washington,
D,C,
I also request dUll you support the second round process in several other important
ways: by identifying particular programs and initiatives that can be helpful to the designated
communities: by detailing knowledgeable staff (preferably two) to represent your agency and
assist in the evaluation process~ and by working with Members of Congress and outside
groups to convey the importance of obtaining our full hudget request to support the second
round communities.
PRINTED ON REcvClEO PAPER
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Finally, lel me reinforce that we wiU be giving increased fobus to building on our
community efforts hy linking them to broader metropolitan a.nd regional strdlcglCS. The
Council of Environmental Quality (CEQ) and !.lIe CEB have been c()~chairing an interagency
working group that is focused on identifying changes in federal policy, regulations, and
programs that promote regionalimctropolitan cooperation and discourage \vastcful sprawl.
As I noted at our meeting, this group has developed a draft report of recommendations. I
view this report as lhe beginning of an extremely important effort, and I would like to cnsure
that every agency has provided its full input into its development.
I encourage you to review thc"many possible programs that your agency oversees that
potentially impact Ihis area, In addition, I specifically request that your Chief of Staff (or
senior member of your Immediate staff) work with your representati'lc to this CEQ/ClSB
group~~who will have a copy of this rcport~·and with others throughout your agency to
support any additional recommendations lhat can be provided. 1)lcase note that the final
deadline for agency submissions to the report is May 1.
Thank you for your hard work and the success we have witnessed in our community
empowerment efforts to date. Your continued assistance remains: absolutely crucial as we
move forward in these efforts. Piease keep us updated on your agency's responses to the
requests I have made in this area.
If you have any questions or follow-up, please feel free to contact me directly or
Julian PoUer at 456·9044.
Sincerely.
AI Gore
AGlejp
cc: Meeting Attendees:
Agency Chiefs of Staff
CEB Working Group Members
CEQiCEB Interagency Working Group Members
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THE WHITE HOUSE
WASHINGTON
July 6, 1999
SIGNING OF EMPOWERMENT ZONE BOARD
DATE:
July 7, 1999
TIME:
10:55 am-I 1:05 am
LOCATION: Pine Ridge High School, South Dakota
Gene Sperling
FROM:
I,
. PURPOSE
To make official the Executive Board for the flrst Empowennent Zone on an Indian
reservation, to highlight the success of Empowerment Zones all across the country, and to
stress that this historic partnership between the Oglala Sioux Tribe and the Government
ofthe US win have a positive effect on the Pine Ridge reservation.
II.
BACKGROUND
You and the Vice President have designated 135 uman and rural Empowennent Zones
(EZs) and Enterprise Communities (ECs) across the country. This includes a First
Round ofEZ and ECs, designated in 1994 and a Second Round, designated in January,
1999. Designated communities were chosen on the basis of their strategic revitalization
plans and receive special incentives and resources to help carry out their plans. The
. EZlEC initiative has already leveraged over $10 billion in additional public and private
sector investment in community revitalization efforts. You proposed (and Congress
passed) the first round ofthe EZlEC initiative in 1993. You as well proposed the second
round, FY 1999, provided first-year funding for the new EZ, and EC•.
The grassroots Presidential initiative supports local solutions to problems and issues
identified by community members. Federal dollars are offered to support the ten year
comprehensive plan will be implemented on a project by project basis. The plan funded
with $2 million a year for 10 years (20 million) with which leveraging other funding can
deliver up to $100 million.
The proclamation that Secretary Glickman, Harold Salway will sign (you will also sign
the proclamation as "the witness") states 5 points: (1) the partnership is. 10 year
partnership to support the economic and social improvement of the Reservation; (2) the
Federal Government will support the sovereignty of the Pine Ridge Oglal. Sioux; (3) the
Pine Ridge Oglala Sioux Empowennent Zone is a means, based on bottom~up. grassroots
citizen participation. to enhance the ability of Pine Ridge Oglala Sioux to improve by
their ov.'t1 actions the economic and social conditions on the reservation; (4) acknowledge
the importance ofthe strategic plan and benchmarlcs as a tribally·detennined vehicle by
,
which such economic and social development can occur; and (5) the Federal Government
is committed to use its resources and caPal':ilities to support the implementation."
�III.
PARTICIPANTS
Harold Salway, president, Oglala Sioux Nation
Secretary Daniel Glickman
Senator Thomas Daschl.
Senator Tim JQhnson
Rep. John Thune
IV.
SEQUENCE OF EVENTS .
.YOU proceed to the signing table. accompanied by Harold Saulw.y. Secretary
Daniel Glickman. Senator Thomas Daschle, Senator Tim Johnson, and Rep. John .
Thune.
YOU witness the signing by Secretary Glickman.
V.
PRESS COVERAGE
White House Photo Only
VI.
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REMARKS
None
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EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES,
Program OVfrview
The Empowerment Zone, (EZ) and EnteIprise Community (EC) program i, designed to
empower people and communitIes all across the nation by inspiring Americans to work
together to create jobs and opportunity. The Federal government will designate up to 9 EZs
and 95 ECs that meet certain puveny and distress criteria and that prepare creative strategic
plans for revitalization. (See Application Process Handout for more details),
Key PrInciples: Four key principles will guide the application and selection process:
• EcoDomk Opportunity. Creating jobs within the community, attracting private
investment, and expanding a=ss for residents to jobs throughout the region is a fint
priority to enabling residents to become seif-sufficient and communities to revitalize.
• Sustainable Community Development. Sustainable economic deveiopment can
only be successful when part of a coordinated and comprehensive strategy that
includes pbysical and human development. for example, safe streets, clean air and
wate.r, lifelong learning and a commitment to perSonal. faroUy and civic responsibility.
o Community-Based Partnersbips. A strategic plan for revitaJi.zatian should stan
with broad participation of the entire community, including community residents,
community groups. private and non-profit sectors. educational and religious
institutions and local and state govcrnments.
o Strategic Vision for Change. A vision for change is not a laundry list of concerns,
shortcomings, and deficits, 1£ is a vision that describes what the commuDity wiU
become -- e.g. a center for emerging technologies, a key export center for farm
products. It is also a strategic map that builds on assets and coordinates a response to
the needs of the community by integrating economic, physical. human. and other
strategies.
Overcoming Federal Barriers: A primary goal of this initiative is to renew the commitment
to cooperation among the federal, State and local govenunenls. The Community Enterprise
Board will work with aU communities that have submitted a strategic plan for change -- even
if they are not designated as an EZ or EC -- to overcome programmatic, regulatory. and
statutory impediments and encourage more effective economic. human. physical
environmentat and community deveiopment strategies,
Tax loc.oti.e.: The legislation included approximately $2.5 billion in new tax incentives,
ECs ate eligibJe for new [ax-exempt facility bonds for cenam private business activities.
Businesse' located in EZs will also he afforded an employer wage credit of up to $3000 per
year per employee for wages and training expenses for employees who are zone residents.
And zone businesses will be afforded additional Section 179 expensing deductions of up 10
$20,000 (for an annual tatal 01 up ta $37,500). In addition, although not limited ta EZs or
ECs. individual investors are eligible for a 50% exclusion of capital gains for investments in
�certain smail businesses, And. corporate and individual investorS may now defer Ihe gain on
the sale of publicly traded securities by reinvesting the proceeds in a Specialized Smail
Business Investment Company (SSBIC) -- an SBA-licensed venture capital firm that
provides equity investment and loans to socially and economically disadvantaged businessc:s.
Social Servic.. Block Grants: The legislation included $1 billion in flexible social services
block grant (SSBG) funds thai can be used to promote economic self-sufficiency and reduce
dependency. ECs will receive approximately $3 million in SSBG funds for approved
activities identified in their strategic plans. In EZs. designated areas will receive up to $40
million for each rural zone and up to 5100 million for each urban zone for approved activities
identified 1n their strategic plans.
Private-Sector Investmenl: Design.ted EZs and ECs will have. range of tools available to
maximize the flow ot private capital and investment to their nominated areas. Fannie Mae.
for exampie, has committed to work with EZs and ECs to generate substantiaJ investments for
housing and homcownership. Other new initiatives -- such as the President's Community
Development Banking and Financiai Institutions BlII, the SSBIC rollover provision. and new,
proposed Community Reinvestment Act regulations that focus on actual lending and
investment in low-income communities -- should also result in substantial new credit
investment in unde:rserve:d communities.
One Slop Capital Shops: The Small Business Administration (SBA) bas committed to
targeting some of its considerable lending and community development tools to small and
minority businesses in distressed communities and underscrved markets. Up to 12 One-Stop
Capital Shops will be located in designated EZs or ECs, with at least three serving rural
areas. The Capital Shops will also serve as national and regional capital distribution points
for underservcd markets, with each shop having the capacity to provide $300-400 million in
private lo.ms and equity jnvestments over 5 years.
Additional Federal Programs: On September 9, 1993, Ihe President issued a Presidential
memorandum creating the Community Enterprise Board and directing 13 agency members of
the Board to identify existing programs that further the goals of the EZJEC initiative and
make resources available from those programs for use by EZs and ECs in implementing their
strategic plans, Included in the application materials is a menu of programs. including
Community Policing and National SeIVice~ for which EZs and ECs may receive consideration
- and technical assistance.
Nallonal Challenge to tile Private Sedor in Eacb Region: With the EZJEC application
process, .md the tools listed above, local communities and governments have a unique
opportunity 10 build strategic alliances with the private sector in their region. Many of the
tools, such as the SSB1C rollover, One Stop Capital ShOps, and CRA Reform, offer positive
inccnlives [0 the private sector to get invoh'ed. The EZIEC initiative is a national challenge
to all sectors to come together to reaJize a strategic vision for community revitalization.
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EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES;
The Appll...tloD Process
Basic Requirements: Nine empowerment zones and 95 enterprise communities will be
designated through a nationwide competition. In order to apply, communities must meet
ccnsin eligibility criteria regarding size, poveny. unemployment and general distress. They
must be nominated by their stateS and local governments. And. they must submit strategic
plans developed with the input of community resjdents that describe the community's vision
for the future and expJajflS how this vision can be implemented.
Deslgnaling Secretaries: Secretary Cisneros of the Department of Housing and Urban
()cvelopment will designate up to 6 urban zones and 65 urban COInmUnilies. Secretary Espy
of the Department of Agriculture will designate up to 3 rural zones and 30 rural communities.
Key Evaluation Principles: The strategic plan will serve as the foundation for community
applications. and will be judged on the basis of four key principles: economic opponunity,
sustainable community development. community-based pannerships. and strategic vision for
change.
Application Forms: Unlike most other federal programs, the empowerment zone and
enterprise community application requires very few forms to be: filled out. Rather, it
encourages communities to identify their own problems and solutions, and to teil the federal
government how its resources can be used most effectively to revitalize distressed
communities. Communities will be expected to submit strategic plans of their own design.
that demonstrate creativity and innova1ion and outline specific steps on the road to
revitalization.
Application Guidance: The appiication materials released today outline eligibility criteria
ond the benefits of designation, describe the four key principles and the key selection criteria,
outline clements that should be included in community's strategic plans, and explain the
application process. In addition, planning guidebooks for both urban and rural areas, issued
by the Departments of HUD and Agriculture respectively, provide more detailed guidance on
how to prepare strategic plans that encompass the range of concerns communities may wish
to address. A $Cpomt. guide on federal programs offers an e..ensive listing of federal
reSOurces available to help designated zones and communities implement their plans. as well
as recommendations from numerous federal departments and agencies on different aspects of
strategic planning.
AppiicalioD Worksbops: Throughout February, HUD and USDA will offer a series of 12
workshops across the nation to provide technical assistance for communities that wish to
apply. The workshops will offer explanations of eligibility criteria, demonstrations of
innovative and creative strategic planning, and discussions with numerous federal officials
regarding how their programs can help in the development and implementation of strategic
plans.
Application Deadline: Applications must be received by 4:00 p.m. on June 30, 1994.
�
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Title
A name given to the resource
Clinton Administration History Project
Creator
An entity primarily responsible for making the resource
Cinton Administration History Project
Council of Economic Advisers
Department of Commerce
Central Intelligence Agency
Department of the Interior
Department of Defense
Corporation for National Service
Council on Environmental Quality
Department of Justice
Domestic Policy Council
Department of Education
Department of Energy
Environmental Protection Agency
Federal Emergency Management Agency
General Services Administration
Small Business Administration
Social Security Administration
United States Agency for International Development
National Economic Council
Office of Management & Budget
Office of National Drug Control Policy
Office of Personnel Management
Office of Science & Technology Policy
Office of the Vice President
United States Trade Representative
Date
A point or period of time associated with an event in the lifecycle of the resource
1993-2001
Description
An account of the resource
<p>The Clinton Administration History Project describes in detail the accomplishments of President Clinton's Administration for the period 1993-2001. The records consist of the histories of 32 agencies or departments within the Executive Branch. In general, each organization associated with the Project submitted a narrative history along with supporting documents. These narrative accounts are primarily overviews of the various missions, special projects, and accomplishments of the agencies. The supplementary records include substantive memos, press releases, briefing papers, and publications illustrated with photos and charts.</p>
<p>Agencies:<br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Council+of+Economic+Advisers&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Council of Economic Advisers</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Central+Intelligence+Agency&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Central Intelligence Agency</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+Commerce&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of Commerce</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+the+Interior&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of the Interior</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+Defense&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of Defense</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Corporation+for+National+Service&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Corporation for National Service</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Council+on+Environmental+Quality&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Council on Environmental Quality</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+Justice&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of Justice</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Domestic+Policy+Council&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Domestic Policy Council</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+Education&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of Education</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+Energy&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of Energy</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Environmental+Protection+Agency&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Environmental Protection Agency</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Federal+Emergency+Management+Agency&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Federal Emergency Management Agency</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+General+Services+Administration&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the General Services Administration</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+Health+and+Human+Services&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of Health and Human Services</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+Housing+and+Urban+Development&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of Housing and Urban Development</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+Labor&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of Labor</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+National+Economic+Council&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the National Economic Council</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Office+of+Management+and+Budget&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Office of Management and Budget</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Office+of+National+Drug+Control+Policy&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Office of National Drug Control Policy</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Office+of+Personnel+Management&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Office of Personnel Management</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Office+of+Science+and+Technology+Policy&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Office of Science and Technology Policy</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Office+of+the+Vice+President&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Office of the Vice President</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Small+Business+Administration&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Small Business Administration</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Social+Security+Administration&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Social Security Administration</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+State&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of State</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+Transportation&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of Transportation</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+the+Treasury&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of the Treasury</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+United+States+Agency+for+International+Development&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the United States Agency for International Development</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+United+States+Department+of+Agriculture&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the United States Department of Agriculture</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+United+States+Trade+Representative&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the United States Trade Representative</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+Veterans+Affairs&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of Veterans Affairs</a></p>
Is Part Of
A related resource in which the described resource is physically or logically included.
<a href="http://clinton.presidentiallibraries.us/items/show/36051">Collection Finding Aid</a>
Provenance
A statement of any changes in ownership and custody of the resource since its creation that are significant for its authenticity, integrity, and interpretation. The statement may include a description of any changes successive custodians made to the resource.
Clinton Presidential Records: White House Staff and Office Files
Publisher
An entity responsible for making the resource available
Clinton Presidential Library & Museum
Format
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Adobe Acrobat Document
Extent
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1474 folders in 111 boxes
Text
A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text.
Original Format
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Paper
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Title
A name given to the resource
NEC – Empowerment Zones [4]
Creator
An entity primarily responsible for making the resource
History of the National Economic Council
Clinton Administration History Project
Date
A point or period of time associated with an event in the lifecycle of the resource
1993-2001
Is Part Of
A related resource in which the described resource is physically or logically included.
Box 43
<a href="http://clintonlibrary.gov/assets/Documents/Finding-Aids/Systematic/Administration-History-finding-aid.pdf">Collection Finding Aid</a>
<a href="http://catalog.archives.gov/id/1497354">National Archives Catalog Description</a>
Provenance
A statement of any changes in ownership and custody of the resource since its creation that are significant for its authenticity, integrity, and interpretation. The statement may include a description of any changes successive custodians made to the resource.
Clinton Presidential Records: White House Staff and Office Files
Format
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Adobe Acrobat Document
Publisher
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Clinton Presidential Library & Museum
Medium
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Reproduction-Reference
Date Created
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6/24/2011
Source
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1497354-nec-empowerment-zones-4
1497354