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THE WHITE HOUSE
WASH lNGTON
December 29, 1998
MEMORANDUM TO THE PRESIDENT
FROM:
GENE SPERLING
SUBJECT:
BACKGROUND FOR MEETING WiTH REVEREND JACKSOo; -
YOUR "UNTAPPED MARKETS" AGENDA
Despite your Administration's record of significant accomplishments and innovation in
economic development, there remains a significant groblem .~ too much of the private capital
invested in America today by~passes OUf central cities and rural areas.
To address this failure, the Reverend Jesse Jackson has used his .unique stature and rhetorical
power to bring together Wall Street investment finns and corporate CEOs and create something
he calls the "Tril1ion Dollar Roundtable" headed by Sandy Weill (fonner CEO ofTravelers, now
Citigroup). Reverend Jackson has urged the Trillion Donar Roundtable to seck out the valuable
investment opportunities to be found In America's own untapped markets, Reverend Jackson is
focused not only on inner cities but also on rural arcas. especially Appalachia, as he believes it
best illustrates tha1 we have all kinds of untapped markets in America.
After he announced the Trillion Dollar Roundtable at his Wall Street Project event last January,
the Reverend organized a series of meetings to work on developing a private sector investment
vchicle that would target investment in underscrved arellS and generate large investment
commitments from prominent investment fiffilS and corporations on the TrilEon Dollar
Roundtable, We have worked closely with the Reverend and his advisors during this effort For
example, in. preparation for a major June meeting of the Trillion Dollar Roundtable in New York
City, I pulled together a group of experts from within the Administration to meet with Re\'crend
Jackson and his key advisors. Then, SEA staff and I spoke on pands during the Roundtable
meeting, the Vice President addressed the meeting via a video hookup with his: Empowennent
Zone ~onfercnce. and Reverend Jackson addressed the EZ Conference as well.
In addition, w~ shared 'with Reverend Jackson's advisors our expertise on existing government
programs that they might want to usc to make their investment vehicles more attractive. Based
on the design they now are pursuing. our input appears to have been helpful. More importantly, I
have coordinated an interagency process, including Treasur:y, SBA, HUD, Commerce, DPC.
OVP. and OMB, to develop a ncv.' government initiative for your budget designed to prompt
greater private investment in America's untapped markets.
�!
Reverend Jackson's rhetoric has frequently noted that we have programs. like the Overseas
Private Investment Corporation (OPIC), to stimulate investment in emerging markets overseas,
yet nothing similar to reduce investor risk when investing in rural America or central cities.
However, the Reverend agreed that he would not call for any specific new government program,
instead letting your Administration bring forward its own new initiatives. Reverend Jackson's
message is remarkably similar to your own emphasis on the opportunities in America's untapped
markets, To fulfill your objectives and meet Reverend Jackson's challenge, the NEC working
group hus developed the new "Untapped Market Agenda" (current name, subject to change), We
sought the input of Reverend Jackson's advisors, and many other experts 1n community
deveiopment and urban investment, on the various new initiatives that we are proposing.
'nle Small Business Administration (SBA) has bee:l a key contribu~or to this initiative, At the
New York meeting of the Trillion Dollar Roundtable, the Vice President chaHenged the SBA to
find ways to bctter serve the needs of minority and underserved markets through their programs,
SBA Administrator Alvarcz and her staff. together with the other members of the working group,
responded enthusiastically and diligently to the challenge,
AS I mentioned to you cartier, 1 presented a brief summary of this initiative to Reverend Jackson
the week belore Christmas. He was quite pleased. He called me on Monday to say that he might
want to raise this issue with you and asked us to share cQltjideutially some of our ideas on paper.
Today, we faxed him a three~page summary of the initiative, with the qualification that elements
of a plan arC subject to final budget decisions. A copy of the summary provided to Reverend
Jackson is attached,
Reverend Jackson has invited you to speak at the second Wall Street Project event in New York
on January {5th, Martin Luther King's Birthday. We propose that you announce this initiative at
that time, citing Reverend Jackson's personal leadership as an inspiration for the plan.
Administrator Alvarez and Secretaries Rubin and Cuomo also are invited to speak and 1 will be
there to brief and provide morc details to participants. Reverend Jackson is eager 10 work with
us to ensure a successful roll-out of this initiative. We have agreed to work together, for
example. to get a few key validators -~ for ex:ample, Hugh McCall -- to provide an initial
enthusiastic response to the announcement. At the event, Reverer.d Jackson a.lso may unveil his
organization's pla.ns for a private investment vehicle designed to take advantage of existing
government programs, as well as the new initiatives we describe, if enacted by Congress"
Attachment
2
�PRELIMINARY AND GONl'J9Eh"fbtt:·· NOT FOR DISTRIBUTION
AMERICA'S UNTAPI'ED MARKETS AGENDA
DRAFT - As of December 29, 1998
Background:
FoHowing a series ofrneetings between White House~ Cabinet Officials, and the Reverend Jesse
Jackson, President Clinton directed his National Economic Council (NEe) to conVC11C a high
level working group, including the Small Business Administration (SBA). Treasury Department
(TR). Department of Housing and Urban Development (HUD). Department of Commerce (CYl),
and the Office onhe Vice President (OVP). and the Office of Management and Budget (OMB),
to consider whether there was more that the government could do:
•
to act as a catalyst for greater private sector economic activity in America's
untapped markets; and
•
to build the capacity of communhy~based instiwtions that provide credit, equity,
and technical assistance faT economic development in underscrvcd areas.
In addition, the Vice President speCifically challenged the SBA to find ways to better serve the
needs of minority and undcrservcd communities.
The NEC-h:d working group consulted widely ~- with!:! the govemment and with investment
professionals (rying to work in underserved markets, Reverend Jackson himself, and other urban
advocay groups ~~ about the strengths and weaknesses of existing programs, including the
SBA's Small Business Investment Company (SBle) program. They found that. while the SBre
program has been successful in stimulating venture capital investments that have allowed sman
businesses to grow, it has not been used to a significant degree in underserved markets.
Improvements were needed to encourage investors to use SBles to make investments in
underserved areas, to allow for larger investments in the kind of larger firms that can serve as the
anchor for a neighb.orhood revitalizatit;)n, and 10 deal with the needs of s:l1al1cr finns that needed
not only equit): jnvestment~ but also"management capacity and support, in order to take
advantage of business opportunities,
In response 10 these findings. the NEC Working Group on Untapped Markets developed the
eight-part agenda described below. The plan calls for new or expanded programs that, in total,
wililevemge billions in new investment for inner cities .and rural areas like Appalachia.
�l
"
PRELIMINARY AND
fi(')NH1~ENTlAI:-
- NOT FOR DISTRIBUTION
Elements a/the ageuda are undergcillcjil1al Administration rel'icH! in preparation for a
January a/mOl/nccmell!. Exact numhers arc sti~/ beillg worked mit, subject /0 overall bwiget
cl)ttStrail1ls. Program /lames, elements; and details ard subject to challge.
1.
A ;\'e:,v "Untapped ,4,farket InwJsll1Umt Ta.x Credit I> - Tax-credits would be available for
qualified equity investments made in selected targeted investment vehicles. An investor
could receive total tax crcd:1S up to a fixed percentage of her investment. The program
will be designed so that investors will have as much certainty as possible about the
investment's eligibility for the credit prior to making their investment decisions,
Investment vehicles created under most programs in the Untapped Market Agenda, as
. well as other c,,?mmunity development investments, will be eligible to apply for the credit.
2.
A NeH' SBIC-Like Program for Larger Firms - In response to concerns that the SBICs
were too limited in size to meet the need for larger-scale investment m underscrved areas,
the President will propose a new program to stimulate equity investments in larger-scale
businesses ill, or relocating to, central cities or rural areas. This new program will
provide government guarantees
debt up 10 two times the amount of equity investment
allowing several investment finn:; each with up to $300 million to invest. The program
will be jointly administered by HUD and SBA, bringing SBA's business investment
expertise together with HUD's expertise on large scale urban revitalization. (Program
name could be something like "America's Private Inves!ment Companies (APles).)
on
3.
New /Jlarke/~' Venture Capltal Firms ("NMVC'J -- A new program at SBA designed to
help small-sized finns in underserved areas that have market 0ppol1unities to grow, but
need not only invcstmel1l but also technical assistance to take ~Idvantage of their market
opportunity. Investors wilt get government guarantees on debt matching the level of
equity investment, provided lhey also match technical assistance and administer it to the
business to support the investment. The program should provide long~teml. patient
growth capital and facilitate critically needed technology and·management skills
devc!opment for these finns.
4.
SBIC Targeting/or Ulldersen'ed Areas·~ In a video hookup 10 a Trillion Do!lar
Roundtable event in New York City last summer, the Vice President specifically
challenged the SBA to find ways to meet better the needs of' minority finns and
underservcd ma!'kelS. In response, SBA developed:
u.
An OutreaciJ PIau to Meet the Capital Needs of IImer Ct'ty and RUral
Businesses: SBA will hold a series of workshops throughout the count!)' to
educate the business and investment community about the SBle program and to
promo:e the formation of SBICs focused on equity capital for underserved areas,
2
�, .
PRELIMlNAR Y AND G()NPWlffi'+/,#:·· NOT FOR DISTRlllUTION
o
h.
New SHies Targeted to l.flldersen·ed Areas: Under program changes to the
existing SBle program, investors will get a new form of patient government~
guaranteed debt leverage equal to their equity investment and get more favorable
regulatory treatment if they invest in businesses in underserved areas (or which
draw a significant proportio.n of its employees from those areas).
5.
New lVfarkets LcltdiJrg Companies ("NM.LC'1- For the first time in many years, SBA
will approve new 7(a) non~bank lenders (finns authorized to originate SBA-guaranteed
loans) but the firms selected must have a plan tn target their lending to undcrscrved areas.
In many underserved areas, fostering
opportunities for the smallest of entrepreneurs can help to build the job base and provide
economic stability to a commv.nity. The Pres:dent's budget calls for a two and a half
increase in funding for tech!llcaJ assistance and lending to very small businesses.
6.
A Microi.:1lterprise Illvestmcflf Strategy:
7.
Contiuued Growth/or CDFls: The President's initiative to develop cotnmunity
development financial institutions. locally~based institutions with expertise in lending and
investment in underserved areas, will continue to grow with a $15 million increase.
8.
BusillessLink: The President's budget will include seed money for an innovative public
private partnership spearheaded by {he Vice President and CEOs to demonstrate the
business benefits to large fimls if they to help develop the capacity of smalf and minority'
business partners. Funding would support demonstrations throughout the ~ountry,
Possible
Privat.~eC(or
Respont:c:
In response, private investment managers may create vehicles that would target underserved
markets. Large, national investment funds could invest in various it~vestmcllt vehicles set up 10
participate in the NMVC p:ogram and the new SBlC-like programs targeted to undcrserved
areas, CDPIs, direct investments in underserved markets, and other non-targeted investments,
Tentative A!lOjHJncem~n~ Plans:
Assuming final budget approval, the untapped market agenda may be announced by the President
with Reverend Jackson at the Wall Street Project event on January 15th (Martin Luther King's
Birthday). Other senior Administration officials, including possibly Secretaries Rubin and
Cuomo, Administrator Alverez, and NEC Director Gene Sperling, also will be there either to
speak or 10 provide more detail and promote the initiative.
3
�January 13, 1999
1\:IEMORANDUM FOR THE PRESIDENT
FROM:
GENE SPERLING
SUBJECT:
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memo stresses two areas In economIC opportYlUty an eve opment
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where he feels our efforts so far are inadequate. While we will agree~t would be good to do even
more and while there are legitimate differences On how best to tackle these challenges, it is
important to put his ideas in both areas in perspective.
Economic, Development:
On top of your Empowenneor Zones, the Community Reinvestment Act, the Community
Development Financial 1nstitution (CDFI) fund, you will announce on Friday the New Markets
Initiative. which will dramatically expand capital investments in our underserved areas, This
initiative will include:
•
A New Market Investment Tax Credit: You will propose a new $1 uiHion tax credit,
which will be available for qualified equity investments in a range of vehicles financing
businesses in America's new markets. An investor will receive total tax credits up to a
fixed percentage ofhislher investment. This tax credit will leverage $6 bil1ion in
additional investment in our distressed communities.
•
Tbe Creation of America's Private Investment Companies (APIC): In response to
concerns that the SBICs are too limited in size to meet the need for larger~scale
investment in underserved areas, you will propose a new program to provide government
guarantees for investment partnerships targeting larger businesses relocating or
expanding in inner cities and mra1 areas. This initiative will allow government
guarantees on debt up to two times the amount ofequity investment allowing up to five
investment firms each with up to $300 million to invest -- or up to $1.5 billion in
investment
•
New Markets Venture Capital Firms (NMVC): To help small-sized finns in
underserved areas that need investment (lnd technical assistance, you will propose thnt
SBA finance investment firms offering a new combination investment and technical
assistance to smaller businesses in targeted areas. The program should provide long~tcm;,
patient growth capital and facilitate critically needed technology and management skills
development for these firms.
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CJ1ris recommends re-chartering the Federal Home Loan Bank System (FHLBS) to create
a National Community Investment Bank with the goal ofpromoting community development.
While we share Chris's interest in the potential ofGSEs doing more to meet public policy
objectives, the issues involving Fannie Mae, Freddie Mac, and the ~S are complex and
delicate andJl!t?Yropo3sl:!l that CMis SdV8R8BS are nat--as-sffiiple as ~WJ&.tbam sound?,
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In the end, we believe that our chances are far greater to get a sound New Markets
~
Initiative passed by this Congress than a prudent new GSE. Therefor:e, while Chris's proposal
may be something we should aspire to, you should know that the experts within your
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Administration have significant problems with it.
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For example. there is much skepticism that political dynamics will allow us to add new
public purpose obligations on the FHLBS -- the off-budget subsidies of which Chris writes __ and
reduce arbitrage significantly at the same time. More likely, some fear, the mission will be
expanded and the leakage of federal subsidy to private hands will grow. Treasury has thus far
insisted that these "abuses" be stemmed before any even modest mission expansion can go
forward.
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If you would like to pursue this idea further, we can convene a process to evaluate this
option further and develop a prolcon memo to inform your decision on how to proceed.
t'f,,,J
Youth Jobs: .
. We share Chris's goal of" reaking the back of endemic hyper-unemployment in
distressed communities." Howeve , we must respectfully disagree with Chris's belief that your
Youth Oppor1unities Initiative is
"the answer" because it is too concentrated in a few areas
and will serve "only" 60,000 poor children this year.
The overwhelming weight of the academic research shows that in order to truly help out
of-school youth we need to saturate small areas with a lot of resources so that we change the
culture ofjoblessness and high unemployment. This is precisely what the Youth Opportunity
Initiative will do. For the JIeftfISd, Ais important to note that serving 50,000 out-of-school youth
nationwide is IlQ1 a "drop in the'swimming pooL" Last year; there were 280,000 unemployed
African-American teenagers aR6 olle lIIillisR AfrieaR AmerieB:fl! (aged 18 24) livihg iii p'o. crty.
.
Therefore, we are addressing a significant part of the problem.
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Finally, Chris's memo ignor~fie tremendous progress you ~ve made in the past couple
of years to address the problems of politically powerless disadvantaged youth. His memo does
not address the fact that we got $250 million in last year's budget for Youth Opportunity Areas,
$120 million for GEAR-UP, and $70 million more to help minorities prepare for college and stay
in college through the TRIO program. In sum, we will ~t.$S.l.O million more in FY99 than in
FY98._~ -- (., I.,.
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Ifyem include the/expansions of existing programs and the new initiatives in your
FY2000 budget, our investments in programs specifically targeted at poor children are $9,Q.2
C million higher than in 1998. (See table) In the face of a partisan Republican Congress, this IS
1- absolutely F9R'1:Mksbie progress and will certainly purchase more than "a wrench and
screws."
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FUNDING FOR PROGRAMS THAT
HELP DISADVANTAGED YOUTH
Actual
EXl228
FY~DDD
Increase from
122HDDD
$250
million
$250
million
$250
million
million
$120
million
$240
million
$240
million
$1;200
million
-
$100
million
$100
million
$500
million
$50
GEAR-UP
Mentoring Program
Proposed
-
Youth
OpportUD ity Areas
Actual
E1:1222
$250
million
-
Right-Track
-
P~rtDerships
Regional
Youth Initiative
5-Year
ThlllI
$1,250
-
-
million
$50
million
-
-
$20
million
$20
million
$100
million
$530'
million
$600
million
$630
million
$100
million
$500
million
YouthBuild
$35
million
$43
million
$75
million
$40
million
$200
. million
JobCorps
$1,246
million
$1,308
million
$1,348
million
$102
million
$510
million
$902
million
$4,510
million
Rewardinl~
Achievem(~nt
in
Youth
TRIO Helping
Minorities Go to and
Stay in College
TOTAL
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3
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�THE: WHITE: HOUSE:
\
WASHINGTON
April 12, 1999
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RE:
PRESIDENTIAL TRlP TO AMERICA'S NEW MARKETS
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Your planned trip to underserved areas in America offers an opportunity to leave..a lasting-
impact en inxesrmem in urban rural and NaljYe American distressed commtmities. Clearly this
.trip could be done in the next five weeks in a way that would highlight your accomplishments
such as CDFls, Empowerment Zones, CRA. and specifically your new initiative -- New Markets
Inveslments Initiative. Such a trip would cement an understanding of your longstanding
commilment (and that of the Vice President) to revitalizing the needs of these communities.
However, I believe the trip couEd have an even more significant impact if it culminates in a high
profile effort begun in May to mobi1ize the private sector to provide capital for underserved
,*,\1 W"derv~,"y, announce
,~o~.:u~n~d~~~th~iS~p~l~an~'~~~I~~~~~~~~~~~~~~~~~~~the
To meet this goal of national mobilization you could host a CEO/Communi!! lead~
roundtable at the White House to highlight what)'J'lu haye "IMY done and it could serve as the
appropriate venue for you to issue a challenge to the country to participate with you when you
take your trip in July and seek new commitments to America's untapped markets, In issuing this
challenge, with eight full weeks oflead time before your trip, we would have the chance to
laWlob an aggressive, administration-wide effort to get companies, banks, non-profit
organizations engaged in this important mission of bringing U.s. investors to America's own
emerging markets and seek to try and create a bandwllgon errect in which more and more people
are answering this call. Then the Vice President -- or the two of you together -- could use the
~;:::~~~ to furth~ emphasize the trip and the need for additional
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Zones and other Administration initiatives. There is one .
important caveat: to make this a real national mobilization we may need to make some effort to
show your crulllenge as a non-political, bipartisan call on America'. private sector to do good.
This would 'equire including key Republicans. like Jack Kemp. in our plan to assure people that
this is • challenge that is not motivated by partisan politics.
�,
, .. ..
The trip would therefo~ include the foHowing components:
t.
Mational Mobilization of Private Investment in New Markets. The trip
could reflect a major effort to mobilize business investors around the country
to invest in underserved communities. The Youth Summit was exciting because it
was perceived as mohilizing new commitments. Leading up to the trip. you could
call upon key inve"stment community leaders ~o join you in pioneering in
underserved communities and create some competition among efforts to be the ones
highlighted on the trip. The story of the trip, then. will be the private investors who
have been mobilized by your call to find profitable business investment
opportunities in America's untapped markets.
2.
Major New National and Loullnvestment Commitments Duildin!: On Existing
Success and Capacity to Implemegt. 1'0 demonstrate the mobilization, each visit
could foHowa formula played out with different programmatic elements'in a
different setting: (A) find an area of poverty and joblessness where something is
working. e,g.. a CDFT. an empowennent zone. or an active community
development partnership; (B) unveil new commitments that were mobilized by
your initiative; and © show that we leave behind an infrastructure that will ensure
fonow through and implementation of the commitment. In addition, where
possible: (D) Simultaneously highlight other communities across the country where
similar program. are being unveiled (perhaps by sending Cabinet Secretarie. to
participate in parallel events that day). I believe that we would get the best impact
from your trip if we are able to announce new things instead of announcing good
things already happening.
For example: You could have a CDFl investment day during which you visit a
poor community where a successful CDFI has made tangible
investments that have made a real difference. You couid unveil new
million dollar commitments of area or national companies and
investors who were mobilized by your Administration to invest in a
new fund set up by the CDFI. We could work with major financial
institutions (like Citigroup, Otase, and Nation.Bank) to make major
nationwide announcements ofcomparable investments that same
day. And you could send members of your Cabinet to five other
communities to highlight similar new funds are being established by
CDFIs with new private investment commitments.
3.
Announce tbe Trip Witb Busigess Le3~b~rs. I propose that you host in Maya
roundtable with a small group of major CEOs who are willing to commit to some
type of new investment. At the roundtable, you could announce that you seek to
mobilize investment to be highlighted on a trip to be taken three months later.
We could provide models for the type of investment we seek, stimulating a
competition among other companies to be part of the effort.
2
�4.
Vice Presjdfnt Gore Leads Qutreach Effort at EmRowe;rment Conference. In
late May. the Vke President will chair the fifth annual Empowennent Conference
in Texas. It wiH provide another opportunity to bring together major business
interests to showcase those who have agreed to make commitments to this effort
and to cail upon others to join the New Markets mobilizatlOn, The Vice President
~~ anhe two afyau if you attend -- could use this to build momentum for the trip
and to call for additional private sector commitment in the Empowerment Zones.
S.
Senior Admiuistration OfficiAls Beach Out to Their Constituencies.
Secretaries Rubin, Alvarez. Daley, and Cuomo could host lunches with CEOs in
the financial. investment, corporate. and real estate sectors. The Office ofPublle
Liaison (Cheri Carter and Jay Dunn) could be tasked with carrying out the
outreach effort and coordinating with the public liaison functions at each agency.
Senior White House, Cabinet, and Subcabinet officials must be available to heJp
them mobilize the private sector by phoning targeted companies and hosting
briefings.
6.
Iask FQrce to Dcsi2D the Most Prnmjsine Proerammatic Models. I will lead a
special task force made up of Secretaries Rubin. Cuomo, and Daley, and
Administrator Alvarez to develop [he programmatic elements. At the staff level, I
have just hired Lisa Green. an energetic woman who previously worked at Fannie
Mae, LISC. and Enterprise Foundation, to work full-time on this effort. She will
lead the staff)evel working groups, with which I wilt meet periodically, assisted
by my senior advisor, Sarah Rosen~ who coordinated the development of the New
Markets proposals in your budget this year.
7~
EncQuraee Likely Communities to Develop ProlH'$als and Create
CompetitioQ CQ[ Ev.ent SitHI With the best models in hand. we can identify
communities that are most likely to be able to produce new commitments and then
send small interdisciplinary teams into the community to see what they can pull
together.
8.
Mobilize a Spes;ialluternal Effort to'Plao the New Markets Irip. I will work
with Maria Echaveste to cOordinate the'effort to reconcile the programmatic
content for the trip with the political, legislative, and logistical considerations.
9.
ED,ure Ad_ate Resources I. Carl"! Qullhe Plag, In addition to the NEC
staffand the support of OPL. Legislative Affairs, Scheduling Communications.
etc., we could ask each of the relevant Cabinet Secretaries to designate both a
Senate~confirmed appointee responsible for marshaling their agency's
contribution to the mobilization and two staff who win be available as needed to
help with outreach and planning.
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3
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As we undf~rtake the outreach plan, we will be encouraging investors to consider various
approaches to working in untapped markets. In consultation with HUD. Treasury, SBA. and
Commerce, we have developed the following preliminary programmatic models:
1.
New Market Inyestmept ComnaUifS,. A central component of your New
Market initiative is,the creation of various types of investment funds which would
focus on equity investment in businesses in underserved areas.
America's Private Investment Companies (APICs) and the New Market Venture
Capital Firms (NMVCs) are both modifications of an existing SSA program
known as Small Business Investment Companies (SBICs). V,'hile APIC. and
NMVCs require legislation, the SBA is near completing regulatory changes that
will provide special incentives for Sales that target investment in underServed
areas. (APICs will be larger funds that can make larger investments; NMVC are
aimed at smaller films that need technical assistance as well as equity.) SBA is
aggressively marketing the concept of targeted SBICs through conferences around
the country. There are a number of targeted SBICs on the drawing hoard aimed at
inner cities and Appalachia. We hope to find that some of these proposed funds
can demonstrate that have qualified management. There also are a handful of
existing community development venture capital firms that are struggling under
existing program rules. The investors spurred to make investments by your
challenge will find that these vehicles are available. Obviously, if you unveil
investments in these types of funds, it will be a great opportunlly to argue about
the far greater possibilities ifour APICs, NMVC, and tax credit legislative
proposals are enacted by Congress.
2.
CPDs, CDFls are some of tile most knowledgeable and effective institutions in
underserved areas dedicated to community development They provide existing
institutions with capacity and proven track records and can serve as the vehicle for
the new investment that this effort will solieit. Because there are so many around
the country. this event could be the cornerstone of a national CDFJ investment
day.
3.
Empowe[m~1lt Zones. 20 new Empcwennent Zones were recently selected, but
Congress has not provided the necessary funds, Each EZ application contains
private sector commitments; the most successful zones thus far have been those
with significant private sector investment. Your visit could present an
opportunity to increase the level ofcommitments to these new 7.ones while
making. case for public funding.
4
�4.
Retail or Franchise Stores in Inner Cities., Recently. a number of companies
have invested in'itmer cities and produced high rates of return. including
Pathmark supennarkets. RiteAid pharmacies, and Magic Johnson theaters. These
"
finns are taking advantage oftne extraordinary concentrated buying power in
"J these communities. The example of these finus may help induce other large retail
or franchise companies to make new commitments to inner cities, allowing us to
highlight the economic potential ofthese communities. perhaps by releasing a
new government study to validate advocates assertions about this potentiaL
IlusinessLINC Partnersbips. Under the Vice President's leadership, Treasury
Secretary Rubin and Administrator Alvarez launched an initiative to encourage larger
businesses to link with and advise smaller firms~ particularly in distressed
communities. Many companie~ find that such efforts to mentor smaller firms can lead
to loyal and productive supplier relationships. The effort is nOW focused on bringing
together local BusinessLINC partnerships. News of your potential visit could promote
communities to compete to pull together the most inpovative and extensive local
efforts to foster srnaU finus in their communities.
5
�303;(..).8 ~
'S9MAI'3pH5:56
r-G-ool-o7
THE WHITE HOUSE
WASHINGTON
May 3,1999
MEMORANDUM
FOR~RESIDENT
FROM:
GENE SPERLING
SUBJECT:
UPDATIl ON NEW MARKETS EVENT FOR MEETING WlTH REV. JESSE
JACKSON
While your meeting this evening v.ith Rev. Jackson focuses on Kosovo, 1wanted you to be
aware that Minyan and] met with Rev. Jackson last week regarding your New Markets
Roundtable with CEOs and the New Markets trip scheduled for next Tuesday, May 11. We
asked Rev. Jackson's for his input on the event. He was very excited about the upcoming
roundtable.as wen as the later July trip to New Markets. He expressed a particular interest in
having Mississippi included in the July trip.
Below are details regarding your May iliff event:
• In the momjng~ you will host a White House Roundtable with a group of CBOs to. challenge
corporate America and mobilize new investment commitments in distressed urban and rural
areas in order to engage CEOs in a discussion on the potential in l.mtapped markets. The
roundtable diseussion will be followed by a Rose Garden 8lllIDlIllCement about the upcoming
July trip. Following your announcement, you and a number or CEO. will travel to either .
Atlanta, GA or Akron. OH - pending a final decision from you - to meet with successful
businesses in distressed communities that illustrate the potential for investment in new
markets.
• Already confirmed CEO's are: Sandy Weill, Travelers Group; Sy Steinberg, NY Life;
Dick Huber, AETNA; Ivan Seidenberg, Ben Atlantic.
�iHE PRESIDENT HAS SEEN
:'-'-'1'1
~o ~~6(
J:1.
Te3i8
THE WHITE HOUSE
WASHiNGTON
May 4, 1999
~ENT
MEMORANDUM FOR TIlE
FROM:
GENE SFERLING
MARIA ECHAVESTE
STEPHANIE STREETT
SUBJECT: PRESIDENTIAL TRIP TO AMERICA'S NEW MARKETS
BACKGROUND
As we have discussed, you win host a CEO rouudtable on Tilesday, May II to discuss the New
Markets Initiative. The CEO Roundtable wiU serve as a venue for you to issue a challenge to the
country and jnvite corporation participation in your July trip to underserved areas. The CEO
Roundtable will also provide an opportunity to seek new commitments from corporations to invest in
America's untapped markets. The morning roundtable on May 11 will be followed by an
announcement in the Rose Garden about the July trip. when we expect to unveil major private sector
committne:ots to lUlderserved comnnmities. After the Rose Garden announcement, you will be
accompanied by a number of the CEO. and perhaps others on a brief trip to a city where we can
illustrate the investment potential in new markets.
REQUEST
The purpose of1his memorandum is to request your preference between two locations for the May II
trip. You asked that we seek your guidance on what city to visit. We have analyzed a number of
locations with an emphasis on Empowerment Zones and Empowerment Conununities. We believe a
visit 10 an BZ or BC will create a bridge bctween the New Markets Initiative and the community
empowe.tment programs that have been a priority fur both you and the Vice President over the last six
years. Also. by focusing on Empowennent Zones it may make your May 11 110 trip less duplicative of
your July trip that will include, but go beyond, Empowerment Zones,
We pr-opose a visit to either Atlanta., Georgia or Akron, Ohio where we can highlight examples of
economic succ~;s in untapped, non~traditional markets through visits to one or more business sites
as outlined below.
finn 1: Atlan
GA
Pros:
• This city has an Empowennent Zone with ntany characteristics of a ''New Market." The
Atlanta EZ has a poverty rate of57,4% and an unemployment rate ofl7,9%.
Approximately 44% of the residents lack a high school diploma.
�·I~~"""_·"""""~"·D""'"
• Atlanta is home to many important corporations such as Coca-Cola and BellSouth that we
wiII enlist as partners in the New Market Initiatives. We can expect CEOs from these
companies to participate in both the roundtable and the trip. if Atlanta is selected as the
location.
• The City of Atlanta is home to many small businesses that illustrate the potential ror
s.uccessful investment in distressed areas. Business success stories in Atlanta and its
Empowennent Zone include the following•. one ofwhlch may make fur an effective
ven"e on May 11:
(1)
Nation,Bank has received funding from Treasmy's CDFl Fund to make
investments in the National Community Investment Fund. The NeIF
(2)
(3)
wiH use NationsBank's support to invest in community development
banks and to expand its eXIsting connnun.ity development programs,
Diaz Wholesale and Manufacturing is a small business recently
featured.in an Inc. Magazine cover story on the Top 100 Inner..city
Companies, compiled from research conducted by Michael Porter's
grouP. Initiative for a Competitive Inner City. Diaz manufactures and
distributes Hispanic fooda and employs 85 people.
United Water Services Atlanta (UWSA) was recently chosen to
privatize the city's water system and will locate it regional headquarters
in the EZ. UWSA employs 425 people and has committed to hiring
20% of its employees from the EZ. The company has also committed to
provide a total of $500,000 for use as seed capital in new EZ businesses.
(4)
(5)
Renewal Atlanta is a recycling plant that will generate 65 permanent
jobs for BZ residents: and 200 temporary jobs for students. However.
building renovations for the plant have just begun.
Bllmpy's is Opening its first franchise as part of a corporate agreement
to open franchises in ten EZIECs across the country.
• A visit to Atlanta on:May 11 will also complement the pJanned SBA Workshop on New
Markets schednled for May 6 that will focus on SBA's Small Business Investment
Cofl1J.)any (SBIC) program. The workshop is designed to recruit potential new SBle
investors and management teams 'with experience investing in small businesses in low
and mooerate-income areas,
Cons:
• The Atlanta Empowennent Zone experienced some well-publicized difficulties during
its startup related to administration and management. These issues have been resolved,
however there may be some remaining stigma.
2
�Option 2: Akron, OH
Pros:
• Akron, Ohio is 8 model Enterprise Community with many new businesses, illustrating
the potential of a new market. The Be bas a 25% poverty rate and an \Ulemployment
rote of 18.1 % with a popUlation of 49.920, Akron is a classic mid-sized city with a
population of223.019.
• A visit to Akron would be a related follow through to. the Town Hall meeting you
conducted there earlier this year on race relations.
• The mayor and congressman from Akron have been strong supporterS,
• There are several examples in Akron ofprivate investment that exemplify the types of
commitments we will be seeking from corporations. These e)(amples include;
(1)
(2)
The Safe Harbor MlnorJty Business Center assists the development and
growth of minority-owned office and service fums through support services
and teehnica1assistance. The 7,000 square foot center currently houses nine
businesses, The center also operates a micro~lending program in
conjunction with Akron's Be Program,
Enterprise Community Fund (ECF) is a non·profit business loan fund
and a recipient of. CDFI Fund award •• that makes working capital loans to
small and micro~businesses in the distressed neighborhoods of the Akron
Enterprise Community, ECF also provides businesses with much needed
technical assi,tance.
(3)
(4)
(5)
Akron Edison Industrial Incubator was created in 1983 and is a model
small business incubator with amulti~tenant facility that provides
entrepreneurs with space and a wide variety of administrative. management,
technical and professional services,
G. Stephens CODstrucUon is. a small firm partnering with Turner
Construction through BusinessLINC~ an initiative that encourages larger
businesses to link with and advise smaller finns, particularly those in
economically distressed communities.
The MIddlebury Grocery Shopping Center is under development in the
central city area through a loan under the Economic Development Initiative.
The center will ultimately employ 30 full time and 100 part time worlrers.
Cons:
• The Vice President has attended .ev....l recent events in Al<ron, including one last
month on teen smoking.
3
�\'i"E PIlES't:>£/JI" Il:ASS€EN
5-"7-'1'1
SUMMARY OF RECOMMENDATION
After carefW cClosideration and review often other potential locations (several ofwhich you have
recently visited), Atlanta, GA and Akron, OR were selected for reoonunendation. These two cities
are characteristic of New Markets and they illustrate the potential for successful private investment
in underserved communities. These cities also fit logistical travel constraints given our expected
departure time from Washington [oHawing the morning roundtable. Please advise us of your
preference.
~
Atlanta, GA_'I-,-_
Akron,OH'-_ __
Discuss Further _ _ __
•
4
�THE: WHITE: HOUSE:
WASHINGTON
May 4,1999
MEMORANDUM FOR THE PRESIDENT
VICE PRESIDENT
FROM:
ROBERT RUBIN
BRUCE REED
CHUCK RUFF
GENE SPERLING
LARRY STEIN
SUBJECT:
COMMUNITY REINVESTMENT ACT (CRA) STRATEGY
Action Forcing Event
eRA will be a central issue in lhe Senate floor debate on financial modernization legislation
scheduled to begin as earJy as Monday. The Gramm bill, voted out of eommittee on a straight pany-line
vote, would significanlly weaken eRA. We expeet that both sides will offer eRA amendments.
Democrats have made procedural demands in exchange for their cooperation in bringing the bill to the
floor.
We will work to focus the message on a unified Demoeratic position on eRA. Earlier today
Secretary Rubin spoke to the Democratic Caucus where he reiterated your veto pledge on eRA, and he
win also testify on finaneial modernization in the House Commerce Commiuee tomorrow (SIS). Just as
he was today, we expeet that he will be asked to clarify the items you eited tn your letter threatening to
veto the Gramm bill tomorrow as well. Specifically, we expect (hat he will be asked whether, if all other
problems with the financial modernization bill were resolved, you would veto a bill that fails 10 require
that banking organizations "have and maintain" an adequate eRA record as a condition for engaging in
newly authoriz..ed financial activities.
Raekground
You sent a letter on March 2, 1999 (attached) to the Senate saying that you would veto the bill ror
four reasons, including concern that the bill would weaken eRA. Your tetter did not speeify how the
Gramm bill would seriously weaken eRA, but it does so in three ways:
1, Its "safe harbor" provision exempts any bank that received a satisfaetory eRA rating in a previous
banking examination from regulators' review -- and community groups' input -- at the time of an
application to merge or expand,
2. Its "small bank exemption" provision removes some 4,000 banks and thrifts with under $1 00
miHion in assets, located outside metropolitan areas (38% of all banks and thrifts) from eRA.
�3. It faits to include a requiremen1 that banking organizations both have a satisfaclory CRA rating as
a precondition to engage in newly authorized financial activities and maintain thcir eRA rating in
order to continue engaging in these aetivilies, Chairman Gramm considers this requirement an
expansion ofCRA. Wc, on the other hand, believe that failure lo include this provision would
seriously erode CRA's relevance over time, as banking organizations increasing1y focus on these
new activities, (See appendix,)
In Ihe House. the Banking Committee reported out a bipartisan bill (5 [-8). thaI we endorsed, that
does not coniain any imti-CRA provisions, The House Banking bill includes the "have and maintain"
requirement. Ifa bank falls to maintain its raling it must develop and implement II compliance plan or
risk penalties -- including the possibility of forced divestitures of the ncwly approved activities and,
according to some interpretations of the bill, civil money penalties,
When the Senate bill comes to the noor, Democrats currently plan to introduce both a Democratic
substitute bill, and a comprehensive CRA amendment striking the anti~CRA provisions and adding the
"have and maintain" requirement. Democrats will likely vote for thc amendment ~~ although support for
individual piee:es may vary ~~ and against finalpil..ljsage if the amendment fails. Republicans may offer
anti-CRA amendments. In addition, there may be amendments offered by members of either or both
parties with respect to penniuing banking organizations to conduct new activities through operating
subsidiaries, and limiting the unitary thrift provisions. We support such amendments as consistent with
your veto letter. although there is some question about our likelihood o(success on the floor, Our strong
support for the "'have and maintain" requirement for CRA is likely to further bolster our support from
Democrats for these other amendments, If the Democratic CRA amendment fails, Democrats are likely
to be unified in opposing the bill on final passage, and we may have more leverage to fix other issues in
conference, such as banking and commerce or the operating subsidiary, If the eRA amendments
succeed, we may be in a weaker position to make other changes to the legislation in conference.
Community groups strongly support our opposition to the Gramm bili, but believe that the House
passed version, with its uhave and maintain" requirement. is at best minimally acceptable. They are likely
to oppose any financial modcrnization legislation that docs not significantly expand CRA
Recommendation
Parti: eRA Veto Threat, includillg i'Have and Mailftain"
In both your lelters to the Senate and Treasury statements. we have provided a number of rcasons
why you would veto the current Gramm bill. This week. as some Senators seek to find a compromise.
Secretary Rubin inevitably will be asked whether you would veto the bill over specific provisions - in
particular over the absence of the "have and maintain" requirement As a policy matter, your advisors
believe that you should veto financial modernization legislation that fails to include a requirement that
banking organizations both have and maintain a satisfactory eRA rcoord in order to engage in newly
authorized activities.
�Nonetheless: your advisors a!so believe that it is premature for you to be asked to speak to a
hypothetical situation, as nO bill currently would address all our other concerns except the "have and
maintain" requirement. Moreover, we do not have a clear sense of how many Democrats would support
you, if that were the only eRA problem raised by the bill. Thus, for now, your advisors recommend that
we continue publieIy 10 reiterate your veto threat on eRA generally. When asked. Secretary Rubin would
clarify that the veto threat includes the small bank exemp1ion, the safe harbor, and the lack of a "have and
maintain" requirement. Ifpressed further on Hhave and maintain," Secretary Rubin would explain that the
requirement is embedded in the veto threat. We would leave flexibility as to the enforcement mechanism
ror this requirement.
Analysis: In the future. thc relative importance of banking merger applications ~~ and,
thus, occasions for reviewing a bank's CRA record, may deeline and the establishment of non
bank financial activities will become increasingly important In that context, the requirement that
bar;king organizations have and maintain an adequate CRA record in order to engage in newty
authorized financial activities will be essential to maintaining the relevance of eRA. This
requirement strengthens eRA enforcement ~~ by conditioning applications for non-banking
activities On eRA compliance and by subjecting the bank to further consequences Ifits eRA
record becomes unsatisfactory after the applications is approved -- without expanding the scope of
CRA beyond insured depository institutions.
In addition, insisting On the "have and maintain" requirement is consistent with your strong stance
('r( eRA over the last six years, and is a pOsition [hat consumer. community. and civil rights groups expect
you to take, Moreover. there are tactical advantages to taking a tough negotiating stance on eRA. It
increases our leverage in conference. as Congressional Democrats have thus far been relatively united in
supporting a "have and maintain" requirement this year. Democrats are not as united on our other
concerns" Thus, CRA will be a key rationate should a veto be necessary.
,
In the end. however, it is unlikely that we will get a bill out of Congress containing the «have and
maintain" requirement. Chainnan Gramm has said that he win bring down any bill that is no! at least
"CRA neutral." Chainnan Gramm argues that "have and maintain" is an expansion of CRA. Moreover, in
the unlikely event that you are foreed to veto a bill solely over lhe "have and maintain" requirement, that
veto could be diHieult to sustain, For example. Jnany Democrats at the cnd of the day may not oppose a
bill that addressed their other concerns with the Gramm bill, but dropped the "maintain" requirement.
(Prospects of sustaining the veto are somewhat better in the House than in the Senate.) Last Congress,.
moreover. the Administration sent up a biH requiring that banks have a satisfactory CRA rating but!!£! that
banks maintain their CRA rating. and the Senate Banking Committee reported a bHllast year with this
more limited requirement, 16-2,
Part i: Support Democratic eRA Floor Strategy
Your adviso~ believe that we should support the Senate Democratic Leadership's floor strategy: be
erueful not to push votes that will divide Democrats on eRA ISSues. and be especially careful not to drive
moderates to cut a deal with Gramm. Although the situation is fluid. that slrategy currently exists of
offering a full Democratic substitute for the bill, offering a single eRA amendment to strike offending
�·
.
provisions and add U1C "have and maintain" requirement, and opposing anti·CRA amendments.
Analysis: On the one hand; community groups have heen urging us 10 be more aggressive,
arguing that w.;;, should expand eRA as we modernize the financial system. On the other. some
Democrats would prefer to get financial modernization cnacted, even if it meant a weakening of eRA
Thus, some are tempted to compromise On the small bank exemption or "have and maintain."
As a result, Democratic unity behind a comprehensive eRA amendment would be a significant
achievement.
If Republicans offer an "antiwcxtortion" amendment, we would oppose it on the grounds that it
would chill legitimate relationships between financial institutions and cornmunities~ and that extortion is
already illegal, but the debate will be difficult for Democrats, Republicans also might propose an
amendment requiring disclosure of bank~community group CRA settlements, and it would be difficult to
press Democrats to oppose this. In fact. we could support such an amendment. Ifit is offered, we should
encourage Demoerats to offer a "second·degree" amendment requiring financial institutions to report on
their progress in meeting thcir eRA commitments, whieh would gamer support from Democrats and
community groups, but the amendment is unlikely to pass,
DECISION
_·__Agree
_ _Dlseuss Further
�·,
APPENDIX: BACKGROUND ON CRA
CUrrtmi Law. eRA requires a bank to serve the convenience and needs of all communities in
which it operates. The Fed, OCC and OTS examine the banks they each regulate periodically (every 24~
36 months) fi)T eRA compliance, and make these eRA evaluations public. ·However, enforcement comes
only when a hank files an application to merge with another bank or opens a new branch, (A bank's eRA
record is not ,:;urrendy scrutinized in connection with applications to affiliate with non~banking
companies.) In considering an application. the reguiator must take into account the banks eRA and the
public has an opportunity to comment Regulators issued regulations in 1995 in response to your request
that eRA focus 00 perfonnance not papel"V/ork. eRA ratings are now based on a three-pronged test: .
lending, services. and investments. In addition, regulators revised and streamlined the examination
process, parti::ularly for smaller institutions.
Effectivencss ofCRA. Evidence suggests that publie disclosure ofCRA ratings, together with
the changes made by the regulato~s under your leadership, have significantly contributed to improved
perfonnance by financial institutions in meeting the needs of low and moderate income communities and
minorities. Since 1993. the number of horne mortgage Joans to African Americaris increased by 58
percent, to Hispanics by 62 percent, and to low and moderate income borrowers by 38 pereent, well
above the overall market increase. Sinee 1992, nonprofit community organizations estimate that the
private seetor has pIedged over $1 trillion in loans and investment under eRA. In 1997, banks and thrifts
subject to CRAs reporting requirement made 2,6 minion small busineSs loans for a total of $159 billion,
two~thirds of all small business loans made that year. More than one-fifth of those loans were made to
small businclises in low and moderate income communities.
Changing Naturc (J/thc Fi1UlIlciol Services Ittdustry. Commercial banks have seen their share
oftotnl financial intennediary assets decline from about 60 percent at the end of World War II, to
roughly 25 percent today. In the future, the relative importance of banking merger applications-
and. thus, occasions for reviewing a bank's CRA record, may decline and the establishment of
non-bank finaneial aetivities will become increasingly important Communities groups are likely
to oppose any financial modemization legislation unless eRA were extended to securities and
insurance providers,whieh Treasury has not supported in the past. which stands no chance of
success in the current or foreseeable politieal environment, and which presents praetical and
theoretical difficulties,
�c..rp ,.", d
THE WHITE HOUSE
~l.vv,,,
e0~~
WASHINGTON
May 4, 1999
St/\..0.4. t
Poc~
MEMORANDUMFORTH~ENT
FROM:
SUBJECT;
GENE SPERLING
MARlA ECHA VESTE
STEPHANIE STREETT
'::18 HAy 4?,3:55
PRESIDENTIAL TRlP TO AMERICA'S NEW MARKETS
BACKGROUND
As we have discussed, you win host a CEO roundtable on Tuesday, May r 1 to discuss the New
Markets Initiative. The CEO Roundtable will serve as a venue for you to issue a challenge 10 the
country and invite corporation participation in your July trip to underserved areas, The CEO'
Roundtable wiB also provide an opportunity to seek new commitments from corporations to invest in
America's untapped markets. The moming,rGundtahle on May 1 J will be foHowed by an
<.'.:, ,.
announcement in the Rose Garden about the July trip. when we expect to unveil major private seclor
commitments to underservoo communities. After the Rose Garden announcement. you will be
accompanied by <; number 0 f the CEOs and perhaps others on a brief trip to a city where we can
illustrate the investment potential in new markets.
REQUEST
The purpose of this memorandum is to rcx:juesl your p'reference between two loeations for the May 11
. trip. You asked that we seek your guidance on what ehy to visit. We have analyzed a number of
locations with an emphasis on Empowennent Zones and Empowennent Communities, We believe a
visit to an EZ or Ee will create a bridge between the New Markets Initiative and the community
empowennent programs that have been a priority for both you and the Vice President over the last six
years. Also, by focusing on Empowerment Zones il may make your May! 1II) trip leSs duplicative of
your July trip that will include, but go beyond, Empowerment Zones,
We propoS(; a visit 10 either Atlanta, Georgia or Akron. Ohio where we can highlight examples of
economic success in untapped. non~lradilional markets through visits to one or more business sites·
as outlined below.
lion I: Atlanla GA
Pros:
• This city has an Empowennent Zone with many characteristics ofa-"Ncw MarkeL" Tbe
Atlanta EZ has a poverty rate of57.4% and an unemployment rate 17.9%.
Approximately 44% of the residents lack a high school diploma,
of
�• Atlanta is home to many important corporatiQns SU9h as Coca-Cola and BcHSouth that we
'will enlist as partners in the New Market Initiatives. We can expect CEOs from these
companies to participate in both the roundtable and the trip, if Atlanta is selected as the
location.
• The CIty of Atlanta is home to many small businesses that illustrate the potential for
successful investment in distressed areas, Business success stories An Atlanta and its
Empowennent Zone include the following, one ofwhieh may make for an effective
, venue on May 11 :
.
(I)
.
(2)
(3)
..
(4)
(5)
Nation~Bank
.
has received funding [rom Treasury's CDFI Fund to make
investments in the 'Kational Community Investment Fund. The NC}F
will use NationsBank's support to invest in community development
hanks and to expand its existing community development programs.
Diaz Wholesale and Ma~ufacturing is a small business recently
featured in mIne. Magazine cover story on the Top 100 Inner~City
Companies, compiled from niseirch conducted by Michael Porter's
group, Initiative for a Competitive Inner City. Diaz manufactures and
distributes Hispanic foods and employs 8S people.
United Water ServittS Atlanta (UWSA) was recenlly chosen to
privatize the city's water system, and.wililocate it regional headquarters
in the EZ. UWSA employs 425 people and has committed (0 hiring
20% of its employees from the EZ. The company has also committed to
provide a lotal of $500,000 for usc as seed capital in new EZ businesses,
Renewal Atlanta is a recycling plant thal will generate 65 pennanent
jobs for EZ residents and 200 temporary jobs for students. However,
building renovations for the plant have just begun.
BUmpy's is opening its first franchise as part of a corporate agrecment
to open franchises in ten ElJECs across the country.
• A visit to Atlanta on May 11 wiH also complement the planned SBA Workshop on New
Markets scheduled for May 6 that will focus on SBA's Small Business Investment
Company (SBIC) program. The workshop is designed to recruit potential new SBle
investors and management teams with experience investing in. small businesses in low
and moderate~ineome areas.
COilS:
• The Atlanta Empowerment Zone experienced some welJ~publieized difficulties during
its startup related to administration and management These issues have been resolved,
however there may be some remaining stigma.
(
2
�•
,
Option 2: Akron, OH
Pros:
• Akron, Ohio is a model Enterprise Community with many new businesses. illustrating
-the potential of a new market. The Ee has a 25% poverty rate and an unemployment
rate of 18. t % with a population of 49,920. Akron IS a classic mid-sized city ~ith a
population of223,019.
• A visit to Akron would be a related foHow through to the Town Hall meeting you
conducted there earHer this year on race relations.
• The mayor and congre~man from Akron have been strong supporters.
• There are several examples in Akron of private investment that exemplify lhe types of
commitments we will be seeking from corporations. These examples include:
(I)
(2)
(3)
(4)'
(5)
The Safe Harbor Minority Business Center assists the development and
growth of minority-owned office and service fifl!ls through support services
and technical assistance. The 7,000 square foot center currently houses nine
businesses. The center also operates a mkro~lending progr'''m in
conjunction with Akron's EC Program.
Enterprise Community Fund (ECF) is a non~profit business loan fund -'
and a recipjenl of a CDFf Fund award ~~ that makes working capital loans 10
small and micro-businesses in the distressed neighborhoods ofihe Akron
Enlerprise Community, ECF also provides busInesses with much needed
technical assistance,
Akron Edison lndustriallncubator was created in 1983 and is a model
small business incubator with a muiti~tenant facility that provides
entrepreneurs with space and a wide variety of administrative. management,
. Technical and professional services,
G. Stephens Construction is a small firm partnering with Turner
Construction through BusinessLINC, an initiative that encourages larger
businesses to link with and advise smaller firms, particularly those in
economicaJly distressed communities.
The Middlebury Grocery Shopping Center i. under development in the
central city area through a loan under the Economic Development Initiative.
The center wl11 ultimately employ 30 full time and 100 part time workers.
COifS:
• The Vice President has attended several recent events in Akron, including one last
month on teen srnokin~,
3
�', .. c PRESIDIi#JIIIASS'" ,..
5-7-"1'"
SUMMARY OF RECOMMENDATION
After careful consideration and review of ten other potential locations (several of which you have
recently visited). Atlanta, GA and Akron, OH were selected for recommendation. These two cities
are characterislic of New Markets and they illustrate the potential for successful private investment
in underserved communities. These cities also fit logistical travel constraints given our expected
departure time from Washington following the morning roundtable. Please advise us of your
preference.
Allanta.~_-,--
__
Akron, OH_ _ _--:
4
Discuss Further _ _ _ __
�.
.".
. ." .' >.
THE WHITE HOUSE
WASHINGTON
May 10, 1999
WHITE HOUSE ROUNDTABLE and
ROSE GARDEN A:"NOUNCE~fENTS witb CEOs
May 11. 1999
9:05-9:30am (Pre-brief)
9;30-10:45 (CEO Roundtable)
10:50-11 :00 (Pre-brier ror Statement)
II :05-11 :20 (Rose Garden Announcement)
LOCATION: Pre-brieC (Oval)
CEO Roundtable (Cabinc' Room)
Pre-brieC Cor S'atement (Oval)
Announcement (Rose Garden)
Gene Sperling
FROM:
DATE:
TIME:
I.
PURPOSE
To issue a challenge to the country and invite corporations and investment firms to participate in
your July trip to underserved areas, The CEO Roundtable will provide an opportunity to seek
new commitments from companies to invest in America's untapped markets, Following the
roundtable you will armounce -~ in the Rose Garden flanked by the CEOs and your Cabinet -- the
July trip, in which you expect to highlight major private sector commitments to underserved
communities.
II.
BACKGROUND
Since 1993, you and Vice" President Gore have been committed to community and economic
development in .America's urban and rural areas, The Ctinlon-Gore Administration has worked
with the private and public sectors to help re\'ltaiize America's undeserved communities. This
effon has invol\"ed bringing capital,jobs; and other types economic opportunity to dislressed
arcas. Your community development efforts have also included cleaning up the urban
environment. The Erl!IJOwennem Zone and Enterprise Community (EZIEC) Initiativc is a key
clement of your job creation stralegy for Amcrica. It has hclped to create jobs and business
opportunities in the mosl economicaily dislressed areas of inner cities and the rural heartland.
Your 1999 final budget included $60 million in flexible discrctionary funding for the next round
of Empowenncnt Zones and new rural Enterprise Communities. Your 1999 Budgct also
included $283 million for 50.000 ncw vouchers exclusively for people who nced housing
assistance to make the transition from welfare to work. As you know, your AdministraLion has
also been steadfast in its comf!1itmcni to the Community Reinvestment Ac\. In 1995. you
or
�..
.,
worked to refonn and streamline eRA regulations with a new focus on perfonnance. These are
but a few of the examples of your record or. community Jevelopm~nL Other accomplishments
include the creatior. of the Community Development Financial Institutions Fund. the growth and
expal'-:.ion of the Economic Developmer.t Initiative and Section 108 Loa:! Guarantee Program.
and the establishment of Business Line. a program designed to fosler mentoring relationships
bet~'een larger eorporations and small business.
The New Markets Initiative builds off of your previous accomplislunenls a:id continues your
co:nmltment to ur.dcrserved areas, both rural and urban. As we undertake the outreach plan, we
will encourage investors to consider various approaches for investment in untapped marke:s. In
consullation with HOO, Treasury, SBA, and Commerce, we have developed the following
preliminary programniatie models:
1,
New Markets Tax Credits. This new legislative proposal wm ultimately help to
spur S6 billion in equity capital for investment in America's, new markets, The
tax credit is wonh up to 25 percent for investments in a wide range of vehicles
serving these communities. including community development banks, venture
funds and AYICs, a new type of investment company created by this initiative
(described below).
2.
APICs (American Private ID"estment Companies), Just as America's support
for the Overseas Private Investment Corporation helps promote growth in
emergIng markets abroad, APICs wiH encourage private investment in this
country's untapped markets,
3.
New Markets Venture Capital (N1VIV!';) Firms an~ Ex-pansion of Current
SBIC Program. Nlv1YC fimls wili make both capItal and technical assistance
available to small business entrepreneurs in ~nner~city and rural areas, Ten to
twenty community development J'\MVC films are planned, SBA will match the
equ:ty and technical assistance o[private investors,
The New Market Venture Capital Firms G'l'MVCs) and Americats Pnvale
Investment Companies (APles) are both modifications of an exist;ng SBA
program kno\vn as Sma;1 Business Investment Companies (SBICs). While APICs
and NMVCs require legislation, the SBA is completing regulatory changes that
will provide special incenti\'es for SBICs tha: target investment In underscrved
areas. SBA is aggressively marketing tl:e concept of targeted SBICs th;;ough
conferences around the eoun:ry. There arc a number oftargctcd SBICs on thc
drawing board aimed a~ inner c;lies and Appala6ia,
Your challenge will motivate investors to seek out these types of investment
vehicles. An announceme:1{ of i:1vestmcnts in these types of funds during your
July trip will be ua excellent opportunity to present the merits and great potentia;
of our APICs. ~MVC, and tax rrcdillegislative proposals.
�4.
CDfIs. CDFIs are some oflhe most knowledgeable and effeClIve institutions in
unde~erved areas dedicated to community development. They provide existing
instihl1ions with capacity. and they have proven track records. l3.ccause there are
so many 1hroughout the count;. the July trip eould include a national CDF!
investment day.
5.
Empowerment Zones. 20 new Empowerment Zones were recently selected, but
Congress has not provided the necessary funds. Each EZ application eontains
private sector comn:titments; the most successful zones thus far have been those
with sig.'1ificant private sector investment. Your July trip could create an
opportunity to promote 3..1 increase in the level of commitments to these new
zones while making a case for public funding.
6.
ReisH or Franchise Stores in lnner Cities. Recently, a number of companies
have Invested in inner cities and produced high rates of return, including
Pathmark supennarkets, Ri1eAid phannacies. and Magic Johnson theaters. These
firms are taking advantage of the extraordinary concentrated buying power in
these communities, Tbe example of these fimls may help induce other large retail
or franchise companies to make new commitments to inner cities, allowing us to
highlight the economic potential of tbese communities. perbaps by releas:ng a
new government study to validate advocates' assertions about this potential.
7.
Ill.
BusincssL1NC P:lrtncrships. Under the Vice President's leadership, Treasury
Secretary Rubin and Administrator Alvarez launched an initiative to encourage larger
businesses to link witb and advise smaller firms, particularly in distressed
communities. Many companies find that s:.Jch cfforts 10 mentor smaller firms can Jead
to loyal and productive supplier relatiorub[ps. Tbe effort is now focused on bringing
togetber local BusinessLlNC partnerships. News of your potential visit could promote
communities to compete to pull together the most innovative and extensive local
efforts to foster small firms in thetr communities.
PARTICIPANTS
Pre~brkf
John Podesta
Gene Sperling
Maria E::liaveste
RoundtubJe
YOU
Vice President
Administrator A;varez
Secretary Andrew Cuomo
Secretary William Daley
�Maria Echaveste
Secretary Danicl Glickman
Secretary Alexis Herman
lohn Podesta
Secretary Robert Rubin
Gene Sperling
CEO,
I,
2.
8.
9.
10.
11.
12.
13.
14.
15,
16.
17.
Duane Ackennan, Ben South
Dan Amos, AFLAC
Donald Carty, American 'Airlines
"mma Chappell, United Bank of Philadelphia
Jon Corzine, Goldman Sachs
Charles Gifford. BankBoston
Martin Grass, Rite Aid
Richard Grasso, NYSE (llottraveling)'
Dan Hesse, AT & T Wireless
Richard Huber, Aetna
Debra Lee, BET Holdings
Len Mullin, Delta Airlines
Frank Newman, Bankers Trust
Frank Raines. Fannie Mae (llor traveling)
Maceo Sloan. Sloan Financial Group
Sy Sternberg, NY Life
Sanford Weil, Ci,igroup
IV,
SEQUEr;CE OF EVENTS
3
4
5.
6.
7.
)' OU will be briefed by your advisors in the Oval Office.
YOU and the Vice Presldcnl~wjll meet with the Chief Executive Officers in the
Cabinet Room (Cabinet members and \\'hite House Advisors \viil be seated
behind you).
The Vice President wiH welcome the CbiefExecutive Officers.
YOU will make brief remarks and then open up the discussion for diulogue,
YOU will be briefed in the Oval Office for your statement
YOU, accompanied by the Vice President, will walk oul to the Rose Garden (the
CEOs and Cabinet are already standing behind tbe podium) .
. The Vice President makes brief remarks and il:troduces "lOu.
YOU make brief remarks a:ld dcp,\rt for Andrews Air Force Base,
V.
PlillSS COVERAGE
Cased,
VI.
REMARKS
Script for the Roundtable dIalogue will be included in your briefing book,
Speechwriling will provide Rose Garden Remarks.
�SUGGESTED SCRIPT FOR WHITE HOUSE CEO ROUNDTABLE
Format ror CEO Roundtable:
Vice President opens
President speaks. opens discussion
Wide~ranging discussion with CEOs
1. Vicc I'resident's Suggested Opening Tboughts
• Welcome 10 the White House and thank you all for being here today
• We are asking for your advice and help with our efforts to lap Ameriea's full
p{:oteniial by creating more investment in untapped markets across the country
• This effort to mobilize investments in new markets builds upon our past and current
efforts creating Empowerment Zones, preserving the effectiveness of the Community
Reinvestment Act) and establishing Community Development Financial Institutions.
• Introduce President
�2. The President's Suggested Remarks - three main points to stress at outset:
• We would like to use this summer to conduct a major mobilization to spur investment
and business growth in America's most economically underscrved communities,
• In fact, there are a Jot of good efforts going on now, including the Wall Street Project
that Reverend Jackson and Sandy Weill have led.
• :.iow we want to elevate Ihis endeavor to a national level so that we are able to show
new efforts that are being made.
• To help elevate this, we Me planning to visH untapped markets aeross the country
during the week of July 5 - with a real focus on inner cities and rural areas. And we
want this effort to be bipartisan.
• We need your ideas about the best way to do this - locations you think we should
visit, community development banks to highlight, mentoring efforts that arc working,
Vie want to hear from you about what you think it will take to do this.
�3. Discussion with CEOs - you may want to open the discussion by turning to (1) Sandy
\VeiH and then (2) Frank Raines to talk about what resources and tools they have seen
work best in underserved areas.
Sandy Weill. CWgroup:
Weill's Likely Points:
• Major supporter ofthe Wall Street Project and Trillion Donar Roundtable, working
wilh the RainhowlPUSH Coalition
• Last May, Citicorp and Travelers announced a to-year, $1 15 bi1lion eRA
commitment to lending and investing in moderate- and lower-income communities
and small businesses - double Citibank's $56 billion in U.s, deposits
Background (,0 Sandy Weill:
• Mr. Weill is CEO ofCitigroup,
• The compnny's banking subsidiary. Citieorp, has a200d eRA reeord and has been
active in community developmenl banking,
• Mr. Weill is also one of the main advocates behind Rcv. Jackson's Wall Street Projccl
and has been very voeal about his belief that corporations ean do well by doing good.
Frank Raines, Fannie Mae:
Raines Likely Points:
• Fannie Mae is the largest private investor in MuUifamily Low Income Housing tax
Credit investments.
• Their new American Communities Fund has closed $210 million in investments for
urhan revitalization and plans to invest $350 million in revitalization activities across
the country.
• Through Moreh 1999, Fa.nnie Mae has committed to invest close to $50 million in
CDFls and by the end of 2000 they will have invested $75 million, They have also
invested $75 million in DC's revitalizution corporatioll.
•
•
Raines was named Chairman and CEO ofFannicMae in January 1999. FannieMae is
the largest non~bank financial services company in the world.
As you well know, Raines became ehaimlsn nfter stepping down urtcr two years as
your Director of the Office of Management and Budget. During his tenure. he was a
key negotiator in the talks that led 10 the passage of the bipartisan Baianeed Budget
Aetof1997,
•
Prior to joining the White House, he was a viec-chaimlUfl of Fannie Mae, in charge of
the company's legal. credit policy and finance functions.
�BACKGROUND ON CEO ROUNDTABLE AND
REGIONAL TOUR PARTICIPANTS
May II, 1999
F. Duane Ackerman, Chairman & CEO, Bell SOUf/;
• Duane was named Chairman and CEO on January I, 1998,
• Prior to bect'ming Bell South's chief executive, he sen'cd as president of the corporation.
• He has work.;d in telecommunications since 1964 and has spent the last ten years with Bell
South in various leadership positions before asc~nding [0 Chainnan.
• He is a native of Plant City. Florida.
• Atlanta-based Bell South is a Fortune 60 Company and the 10lh largest telecommunications
firm in the world.
D(wicf P. A~!,os. President & CEO, AFLAC Incorporatcd
• Dan was named president and chief executive officer of AFLAC in 1990,
• He star1ed at AFLAC in 1973 in sales, eventually was promoted to president, COO and then
CEO, '
•
•
•
•
-•
Dan is responsible rOf broadening AFLAC's US and Japan product lines.
During his tenure, revenues have grown from $2.7 biBion to $7.1 billion.
He is a native of Pensacola, Florida.
AFLAC is the leading provider of supp!emental insurance al the worksile in the United
Stales, providing policies to employees at over 130,000 payroll accounts.
It is al~;o the largcsl foreign insurance company in Japan.
!2.,!"ald J. Cart)', Chairmalt. President & CEO. Amcriean Airlincs
• Don was named chief executive of American Airlines in May 1998.
• Prior to becoming chainnan. he was ihe principal airline executive, responsible for all
operational elements of the American and American Eagle domestk and international route
systems. which comprise nearly 290 destinations and over 3600 daily flights.
• He sits On the board of directors for Dell Computer Corporation and lhc Canada-US
Foundation for Educational Exchange,
• He resides in Dallas, Texas,
• in Chicago, American works with the Chicago Jobs Council and Chicago City Colleges to
train welfare recipients.
• ,n January, American opened 'a new office in economically depressed section ofsomhcm
Dallas with an annual payrolt of$5 million and will employ 350 people,
Cha1!Pell, Chairmanl Presidcnt & CEO, United Balik o{PhiladcJpJu'o
• Dr. Chappell is the founder of United Bank of Philadelphia.
• United Bank ofPhiladclphlfi is a fun sen'Ice minody-owncd and controlled commercial
ba:1k,
• In the last five years, they have grown from one \0 six branches and over $120 million in
aSSets,
!!!~_J?m11la
�• Dr, Chappell is a critically acclaimed leader who has heen recognized for his business skill.
as well as her advocacy on hehalf of children, minorities and women.
• She was recently awarded "The Leading Women Entrepreneurs oftlle World" in London.
• She is a native of PhHadeiphia.
• United Bank ofPhiiadelphia is a CDFI award winner.
• The Bank's mission is to fOSler community development.
• They were awarded $500,000 from US Treasury in 1997 to provide edueation and !rnining
and make equ.ity investments and Joans to small businesses.
• The Bank has alliances to promote job creation and economic growth with RiteAid,
American Express, the City ofPhi!adelphia and Fannie Mae.
Jon Sfcl'CIlS Corzine, Scnior Director, Goldman Sachs
• Jon is the Chairman of Goldman Sachs.
• He IS expected to resign as Chairman. and continue as Senior Director at Goldman this month.
• 11 is romored that he is actively looking at a U:" Senate hid in New Jersey in 2000.
Clwrles (";{ford, Chairman & CEO. BankBosron
• Chad was named Chairman and CEO in July 1995.
• Hc joined BankBoslon in 1966 as a loan officer and was promoted from within 'til he
became Chairman.
• BankBosto:1 Corporation is a superregional bank holding company with assets of$73.8
hiUion and over 25,000 employees,
• Chad serves on va:ious hoards of non-profits. including the Greater Boston Chamber of
Commerce, the Boston Symphony Orchestra and the Bosto:! Plan for Exce:lence in the
Public School,.
• BankBoston has a strong CR.<\ track record.
• They created a hank unit focused on i!Uler city investment.
• The BankBoston Development Company, L.L.C. has $100 mimon in low-income housing
lax credit investments.
• They have enabled 2500 units of affordable housing units to bc built or rehabilitated and
assisted 700 companies through non-tradilional debt structuring .
.Martill Grass. C/rairmtm &; CEO. Rife Aid Corporation
• Martin was named Chainnan and CEO i:1 March 1995.
• He jo:ned Rite Aid in 1978, was named COO in 1987 where he served until being appointed
us Chairman.
• Martin serves on sc"er3;l boards, including the Baltimore Symphony Orchestra und John
Hopkins Medicine.
• Rite Aid is the nation's largest retail drugstore chain, with over 3S00 drugstores in thirty
states including the District of Columbia.
• Ri(e Aide has opened ma.'lY branches in inner cily areas.
�R;chard Grasso, Chairman & CEO, New York Stock Exc1umge
• Dick was named Chairman In June 1995.
• Prior to being eiected Chainmm, he had served as president and COO as well as executive
\'ice president.
• He is tbe firSI person in the NYSE 206¥year history to be promoted from staff to these
positions.
• Dick h'Ls modemi~ed the r-.,'YSE. incorporating teday's technology Into the market.
Dan lIesse. Prcsidcrtr & CEO, AT&T Wireless
• Prior to being appointed President & CEO, Dan served as Vice President and General
Manager for AT&T Online Services Group.
• AT&T Wireless is the United States' largest wireless operator with 10 million customers.
14,000 employees and $6 billion in revenues,
• Dan was named "Person oflhe Year" by RCR magazine and "Wireless Executive orihe
Year" by Wireless Business and Technology masazine.
• He and his fa.'11iiy reside in Kirkland, Washington.
• AT&T has contributed over $3 million to empowerment zones across thc country (Chicago,
Oakland, Kansas, Detroit. Baltimore. Los Angeles, New York),
• They gave almost $2 minion worth of cells phones and service for the safe schools program
for schools in «at risk" communities.
• AT&T employees mentor at risk students.
Richard Huber, Chairmmt, President & CEO, AC(}Ja, hie.
• Dick was named president and CEO in h::ly 1997 and named chnimlail of the board in March
1998,
,
• Aetna is a 146*year old insurance finn that has recently undertaken a strategic transronnation
and become a $20 billion globaJ health benefi:s and financial services company,
• Dick was named CEO soon after serving as the chief strategist during the $4 billion sale or
the company's Property/Casualty business and $8 billion acqulsll:on of US Heaahcare.
• A native of North Carolina, Dick is a trustee of Trinity College in Hanford and is a member
of both the Council on Foreign Relations and the-Economic Club in New York,
Debra Lee, Prcsidellt & COO. BET Holdings
• Debra was appointed 10 her position in March
1996.
• BET Holdings is one of lhe leading black~owncd and operated multi-media en!crtainmcnt
companies ir. the United States.
• For two consecutive years. BET has been named by Forbes magazinc as the one of the "nest
Smtlll Companies in Anlcrien."
• Debra had served in severnl roles at BET before being named presidcnl, including vice
president and genera! counsel.
• Before joining BET, she was an attof!1cy with the Washington, DC law firm Stcptoe &
Johnson.
or
�fLea Mullin, PresIdent, Chairman & CEO. Della Air/lues
• Leo was named chairman in August 1997.
• Delta is the third largest US airline in operating revenue and carries more passengers each
year than any other airline in the world.
• It was recently named global "Airline of the Year" by the industry's leading magaz(ne for its
growing success in customer serviee. financial soundness. product and marketing itUlovation,
and employee moral.
• It was the first year since 1977 Delta had won the award.
• Leo is a mernberofyour Export Council and is on the corporate board of Bell South.
• Leo resides in Atlanta, Georgia.
Frank Newman; Chairman & CEO, Bankers TidSl
• Frank was appointed Chairman of Bankers Trusl in April I996.
• Bankers Trust has offiees in more than 55 countries'and is the seventh largest US bank
holding company. with assets of over 5172 biilion.
• He was previously the Deputy Secretary of (he Treasury and chief operating offieer of the
Department, which includes 11 operating bureaus and 160,000 employees.
• Upon his departure from Treasury, Frank was awarded the Alexander Hamilton Award, the
highest honor bestowed upon Treasury employees, ,
• A native of Massachusetts. he now resides in New York
• Bankers Trust created the Neighborhood Franehise Project to provide business ownership
aad job creation opportunities within low and mod,erate income communities~ •
• The Neighborhood 2000 Fund is suppoI1ing local communi'ty economic development in New
York City,
• Bankers Trust made a nearly $3 million investment in Appalachia through an ilmov<ltive tax
credit program,
• They have more than $100 million invested in funds that are helping to bu;id and renovate
afCordable housing for low income families.
FronkIilf Raincs, Chairman & CEO. Fannie Mae
• Franklin was named Chainnan and CEO in January 1999.
• Fannie Mae is the largest .non-bank financial services company in the world,
• It is the nation's largest source: of financing for home mortgages.
• fe became chairman afier stepping down after two years as your Director of the Office of
.Y1anagcment and Budget
• During his tenure, he was a key negotiator in the talks that led to the passage of the bipaI1isan
Balanced Budget Act of 1997,
• Prior io joining the \\ilii:e House, he was a vice·chaiiman of Fannie Mac, in charge o:the
company's legal, eredit policy and finance functions.'
• He is on the Board of Directofs of several eorporntions, includi:1g Pfizer and Americun On
Linc.
• Fanaie Muc is the largest p:-ivatei:westor in Mul!ifamily Low Tnco:nc Housing iax Credit
investmcnts.
• Their ncw American Communities Fund has dosed £,210 million in investments for urban
fcvitaiiza:ioll ;)'71d plans to invcst $350 million in revitalization activities.
�• Through March 1999, Fannie Mae has committed to invest close to $50 million in CDFls and
by the end of 2000 they will have invested $75 million,
• They havc also investcd $75 million in DC's revitalization corporation.
"'faceD Sloall, Chairmall. Presid(!II1 & CEO, Sloan FinaNcial Group
• Mact:o 's organization includes NCM Capltal Management end the New Africa Advisors.
• He began at North Carolina Mutual Life Insurance. one of the nation's oldest, largest
African-AIl)erienn companies.
• He has been very active \,,:th Reverend Jackson's RainbowfPUSH Wall Street Project
• He rl."sides in Durham, North Carolina.
S;: Sternberg. Chairman. President & CEO. New rork Li[c
• Sy Was named as New York Life's chiefexecuti\'e in 1997.
• He had joined New York Life in .989 as a senior vice president in charge of the company's
group insurance department.
• As the chief executive, Sy oversees the company's more than 7400 employees and 7000
agents.
II'
He is on the Board of Directors for the American Council of Life Insurance.
• A native of Brooklyn. Sy resides in Purchase, New York with his family.
• New York Ufe participates in slate programs in Loulsiana, Missouri, New York, and Florida
to increase the availability of venture and seed capital in undcrserved areas.
Sa"d,)f "'em, Chairman and Co-CEO, Citigroup
• Citigroup is the di"ersified global financial services company that was formed in J 998 during
Ihe merger ofCiticorp and Tra\'elcrs Group.
• Prior to the merger, Sandy had been Chairman and CEO of Travelers.
• Hc has been ac:ive in Reverend Jackson's Operation Rainbow/PUSH Wall Street Project.
• He re~;ides in Greenwich. Connecticut.
• He is a major supporter of the WaH Street Project and Trillion Dollar Roundtable; working
with the RainbowfPUSH Coalition Citigroup has a ten year $115 billion Community
Reinvestment Act commitment, making it the highest community commitment on a per
dollar of deposit basis in the country.
• Citibank lent nearly $12 billion into low and moderate income communities in ;998.
• They lent and ifl\'ested $470 million in 1998 in pnnncrship with a non-profit Lo build and
rehabilitate ;nuhi~family housing. Citibank is also involved in micro-credit overseas.
�.'
NEW MARKETS MEETING
"'Ani NET ROOM
MAY 11, 1999
SEATING CHART
Richard Huber
Duane Ackcnnan
Debn Lee
BET Holding
Aetna
frank Newman
Bankers Trust
Charles Gifford
BankBoston
-----
Bell South
Martin Grass
Dr. Emma Chappell
Uniled Bank 'Of Philadelphia
'ion Corzine
Goldman Sachs
Rile Aid
Dan Hesse
SYSlemberg
NY Life
AT&T Wireless
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Don CaHy
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PRE,~lIlENT. CLINTON'S
CHALLENGE TO INVEST
"
, , . . , ' '.. " 'IN AMERICA'S NEW MARKETS
"
':,' ':" :': :':'
'" : May II, 1999
"
'.
"
"
.:
"We must do more to bring the spark ofprivate enterprise to cvery corncr ofAmerica ~. to build a bridge from
Wall Street to Appalachia (0 the Mississippi Delta. 10 our Narive American communities ... Our greatest
ul/tapped markets are 1I0t overseas -- they are right here at home. "
-- President Clinton, State of the Union Address,1999
JOIl"iING
,,1
1TH CORrORATE AMERICA TO MOBILIZE INVESTMENT IN UNTArPED MARKETS. Today,
President Clinton and Vice President Gore held a roundtable with 17 Chief Executive Officers from major
American corporations and investment rinns to discuss ways to best mobilize new private investment in
America's most economically underserved communities - America's new markets.
ANNOUNCING A PRESIDENTIAL TRIP TIlE "'EEK OF JULY 5 TO UNDERSER\,ED URBAN A:-iD RURAL AREAS
ACROSS TilE COUNTRY. President Clinton announced today that in July he will take a bipartisan delegation of
CEOs and Members of Congress to untapped markets throughout America, touring economically distressed
communities and :~ighlighting new business opportunities being created in these communities across the nation.
• The trip will be modeled after the trade missions that Cabinet Secretaries and CEOs often take overseas
to identify markets, which - through trade and commercial agreements - can help to create jobs and
expand econ6mic development.
• As part of the July trip, President Clinton will announce new commitments and innovative initiatives
developed by companies, inve;stment firms, community leaders, and non-profit organizations around the
country.
PROMOTING EFFORTS TO ArrRACf CAPITAL TO UNDERSERVED AREAS. As part of a bipartisan focus on
underserved urban and rural areas, 'lresident Clinton is seeking ways to expand current efforts. President
elimon's New Markets Initiative will build upon these existing efforts and help create the conditions for
economically successful investment in underserved inner city and rural areas. Inclu.ded among the clements of
the plan arc:
• The New Markets Tax C~edit. To help spur $6 billion in equity capital for investment in America's
new markets, President Chmon and Vice President Gore have proposed a tax credit worth 25 percent for
investments in a wide range of vehicles. Eligible investment vehicles include community development
banks, venture funds, and the new investment companies created by this initiative.
• America's Private Investment Companies (APICs).. Just as America's support for the Overseas
Private Investment Corporation helps promote growth,in emerging. markets abroad, APICs will
encour, ge private investment in this country's untapped markets by leveraging up to $1.5 biHion in
investments in new development projects and larger businesses that are expanding or relocating in inner
city. and rural areas. Under the financing structure, private invcstors' funds arc at risk ahead of the
govemment.
• T\'ew Markets Venture Capital (NMVC) Firms. NMVC finns will make both capital and expert
guidance available 10 small business entreprcneurs in inner-city and rural areas. Ten to twenty NMVC
finlls are planned. SBA will match the equity and tcchnical assistance of pri vate investors.
nUILDI~G
ON SIX YEARS Or'VORh: TO EXPAND ECO~'OMIC DEVI-:LOPMENT. The Clinton-Gore
Admini:"ration has made community development a priority since taking office. The efforts announced today
build on a number of critical initiatives that havc hclped to expand economic development to communities '
across the country that need it most. These efforts include the Community Reinvestment Act, Community
Development Financial Institutions, Micro-Enterprise Programs, the Economic Development Initiative and
Section 108 Loan Guarantee Program, and the Empowerment Zones and Enterprise Communities.
�BACKGROUl\'D ON THE CLINTON-GORE ADMINISTRA TlON'S
" ':" COMMUNITY DEVELOPMENT AGENDA '
" May 11, 1999"
TODAY'S A]\;NOUNCEMENT r!JILDS ON PRESIDENT CLl'iTON'S AND VICE PRESIDENT
GORE'S SIX-YEAR RECORD OF PRO~IOTI:>:G GROWTH AND OPPORTUNITY I:>:
AMERICA'S COMMU:>:ITIES
Since 1993, President Clinton a..,d Vice President Gore have been committed to tapp;ng the potential of
America's urban and rural communities, TIley have a demonstrated record of creating new initiatives and
expanding e:xisting initiatives to promote commu:1)ty and economic development. The Clinton-Gore
Administration has worked with the private sector. states, and localities to heJp re"jtalize America's
communities by bringing capital, jobs, and opportunity to distressed areas and cleaning up the urban
environment. President Clinton and Vice President Gore hasc created or expanded the [onowing initiatives
over the last six years:
H! 1pine to Brine Prin.te Entcrpri!;.e and Capifal to Distressed Areas.. The Clinlon·Gore
Administration has renewed the commitment of the Federal government to help bring private
enterprise into underscrved communities and improve access to copi{al for low~income households,
minorities, and traditionally underserved borrowers.
• 125 Empowerment Zones and Enterprise Communities_, The Clinton Administra~ion has
announced 105 EZs and ECs across the country, This effort was proposed by President Clinton
and passed by Congress in 1993, The EZlEC effort has generated more than $2 billion of new
private sector investment in community development ae~ivilies, The President has also signed into
law a second round ofEZs -- 15 new urban and 5 new rural zones -- whieh wit! includc tax
incentives, small business expensing, ilnd private activity bonds. In FY 1999, President Clinton and
Congress provided first-year funding of$55 million for the new EZs,.and $5 million in Grsl-ye<!r
funding for 20 new rural Enterprise Communities announced in January.
• Smmgtltencd and Simplified rite Commullit}' ReinvestmcJJt Act (CRA). In April 1995, the Clinton
Acministration reformed the eRA regulations 10 Clllphasizc pcrformance, According to the National
Community Reinvestment Coal ilion (NCRC). the private sector hilS pledged more than S1 triDion
gOing forv.'ard in loans ~o distressed communitlcs - ~md more than 95 percent of these financial
comntit:nents have been made since 1992. Banks made $18.6 billion :n community development
loans in 1997 alone. Lending to minority and low-income bo:rowers is also on the rise,
• Created (he C()mmulliq~J)ci'elo{JmC11f FinallciallllstifutioJls Fund (CDFI), Proposed and signed into
law by the President In 1994, the CDFI Fund. through grants, loans, and equity investments, is
helping to create a network of community de\,elopment financi1.l1 inslitutions in distressed '[reas
across the United States. The CDFl fund was es~ablishcd in 1994. In FY99. funding was incrc~sed
19 percent to S95 million from $80 million.
• Tile Economic Developmellt Initiative al1d Seelio" 108 Loan Guaramce. EDJ grants nrc used to infuse
capital into community development projects. enhancing the debt fina.'lcing pro\'jded by the Section
lOS loan guarantee program. Together, the programs surpon. critical economic development i:1
distressed communities. Estimated jobs supported hy EDI and the Section 108 loan gU3HlnlCe ha.vc
�Ie,"
grown by 300,000 from 1994 to 1998, During this time period ED! and the Section lOS
guarantee program have funded $3,5 billion for morc than 650 separate project commitmen:s.
Helpfng to Brine .Johs and Opportunih' to Di!'tressed Arens. A cornerstone of the Administration's
cOJ"lununity empowerment agenda is helping to bring jobs and opportunity back 10 distressed areas:
• $3 Billioll WcJ{are~!o-i:Vork Jobs jr.iliariwL The Clinton Administration fought fOf a $3 billion
welfare-to-work jobs initiative, as part oflhe Balanced Budget Agreement The Administration is
implementing these welfare-lo-work grants directly to both cities and states for allocating
additional resources to help long-term. hard-to-serve welfare recipients find and keep jobs.
• Welfare-la-Hark Tax Credit and I-Vork OpportunIlji Tax Credit, TIle Welfare~to~Work Tax Credit,
enacted in the 1997 Balanced Budget Agreement, provides a credit equal to 35 percent of the firs!
$10,000 in wages in the first year of employment, and 50 percent of the first $10,000 in wages in
the second year, to encourage the hiring and retention of I{)ng~term v:elfare recipicnts. This credit
eomplcmenis the Work Opportunity Tax Credit (WOTe), which expands eligible businesses to
include those who hire young adults living in Empowennent Zones and En~erprise Communities.
In FY 1999, the President requested and Congress accepted extc:lding tbe credit lhrough June 30.
1999,
• Community DCI'c/opmcnt Block Grallt (CDJ1G) EJ.ponsioll. President Clinton's FY 2000 budget
included an expansion ofCDBG, The final budget increases funding for CDBG from 54.750
billion in FY 1999 to$4,775 billion in FY 2000, a $25 million expansion this year,
Q;aning Up the Urhan En"ironment. The Clinton Administration has launched a landmark effort,
including the Brownflelds Tax Incentive, to clean up and redevelop Brownfields sites. In total, the
Brownfields action ;J;genda has marshaled funds to clean up and redevelop up to 5,000 properties,
leveraging between 55 billion and $28 biltion in private investment and creating and supporting
196,000 jobs,
PRESIDENT CLl1'\TO,," ANO VICE PRESIDENT GORE ARE BUILOING ON THEIR PAST
ACHEIVEME1'\TS THROUGH A l'iLMBER OF l\'EW 1l\'ITIATlVES THIS YEAR.
\\thile Americans are enjoying the fruits of OUr strong economy. we stiU need 10 do more to improve
conditions in underser....ed urban and rural communities. To address this need, President Clinton nnd
Vice Prcside:lt Gore are v.'Orking on several fronts:
The NIt\\' Markets Initiath·~. President Clinton's FY 2000balanccd budget provldes a new initiative
d.:slgned to create the conditions for economic succcss by prompting approximately $ i 5 billion in new
investment in urban and rural areas through:
• The Ncw :y'!.!.:~~{S Tax Credit. To help spur $6 h:JIiiln in new equity capital. this tax erectJt is worth
up 10 25 percent for invcstme~ts l:l.1. wide range of '.'ehieles serving these communities, includiiU;
community development banks, venture funds, Hnd thc new invcstment company programs created
by this Initiati\'e (see below). A widc·rangc ofbusincsses could be financed by these im'cstmen1
funds. indudi:lg small technology fim:s. in:1cr-ci:y shoppi;lg ccnterS, ma:wfacturcrs with hundreds
of employces, and retail stores.
• America IS Priwlte fllvestnu!1I! Compnnies (APJC~J Just as America's support for the O\'crscas
Private Investment Corporation helps promotc growth in emerging markets abroad, APICs will
encourage private investmcnt in Ihis country's untapped markels, by lc\'eraging up 10 $1.5 bi1ion in
2
�invcstment in new development projects and larger businesses that are expanding or rc1o(;n~!ng in
inner city and rural arens.
• SBIC's Targctcd fO New Markets, For over 40 years, SBA '5 Small Business [nvestmen( Company
(SBIC) program has provided roughly $20 billion in equity and dcbt financing to more than 85,000
different companies, helping them to grow from small businesses to household names, like AOL
and Staples. However. too little of the eapiLal invested has benefited our cities and rural distressed
communities, SBA now will be offering mOre flexibility and new financing :enns for Small
Business Investment Companies (SBles) ~hat invesl in underserved areas,
• New ~larkels i'ctl!are Capital (NUl''':) Firms. NMVC firms will make both capital and cxpcrt
guidance available to small business entrepreneurs in inner~ci!y and rural areas, Ten to twenty
1\TMVC rmr.s arc planned. SBA will match the equity and tcchnical asSistance ofpri\';;:c investors.
• New Markets Lending Companics (NMLCr For the first time in many years, SBA will approve
approximately 10 new nonMbank lenders _n_ finns authorized to originate loans under SBA's largest
loan program - lht': 7(a) General Business Loan Guaranty program. Under the 7{a) program, SEA
guarantees up to. 80% of a loan made by a ·lender 10 a credilwo:-thy small businesses l11at cannot
otherv>'ise secure financing on reasonable ter.ns, Finns must have a strategy to targct lcnding to
underscrved areas.
• Microcnferpri:o:e Lending Gnd Technical AssisrOffCC. Microenlerprise initiatIves in the FY 2000
budget include the proposed PRIME Act, under which the CDPI Fund will provide microentcrprise
technical assistance through competitive grams 10 microenterprise development organizations lhat
focus on low-income entrepreneurs, President Clinton's and Vice President Gorc's proposaJ also
includes a doubling of support for technical assistance in SBA '5 Microloan Program and a
doubling of support for SBA lending to levcrage over $75 million in new microlending, The
microenterprise strategy will also involve ncw funding for Individual Development Accounts
(fDAs) and for SBA', One-Stop Copilal Shops.
• Regiollcl Comu:cliolls, Regional Connections will provide competitive funding to States and
partnerships ofloeal governments to develop and implement new, locally driven "smartcr growth"
strategies that ereate more livable communities by addressing economic and community
development needs acroSs jurisdictionalli:les. Regional Connections, as jJBrt of the
Administrations' Livability Agenda, will complelllen! existing federal programs that respond to
growth and investment patterns, The budget proposes funding al $50 million in FY 2000,
• The Economic Dcvc!opmeflllnilialirc Qnd Sectio1l10S Loan Guarantee Program. This program
supports critical economic developmcnt in distressed communities in conjunction with the Section
108 loan guarantee program 10 help bring econOl~lic dc"elopmenl ~o residents, In FY 2000 l~lDJ1y
projcc:s wtll be eligible to participate in the Conlmuni!y En~powennent Fund Trust, a pilot
program, which will cl\able thc pooling of loans and thc creation of a private sectOr secon~al'Y
market for economic development loans. The CEf specifically targets Welfare~to~Work and City~
Suburb·Business Connections, building upon the success ofHUD's EDI and Section lOS loan
guara!1te:: progra:n.
• EmpowcmrcrJ.' Zones alld En/uprise Communities. The 2000 Budget proposes mandatory funding
for ten years: $150million a year for urban EZs and Strategic Planning Communities; $10 million
a year for rural EZs; and $5 million a year for rural ECs,
3
�• fommurlirv Development Financial Institutions rCDFIJ Fund, The budget proposes to' ex;:and
funding for the CDFI Fund to $125 million--a $30 million increase from 1999, The Fund increases
the availability of credit, investment capital. financial services. and o:ber dcvelopment services in
distresscd communities.
• S",sinessLINC The President's F'y 2000 budget includes seed money to expand 8usiness LINe ~-
an iru)(lvalive public~pri\'ate partnership :aunched by Vice President Gore .-- for new markets in
economically distressed communities. BusincssLINC (Learning. Inromlation, Networking and
Collah::oration) is designed 10 eneourage large businesses to work with small business owners and
entrepreneurs,
• Low-Income Housing Tax Credit. Since its creation in 1986, the Low-Income Housing Tax Credit
(LIHTC) has given siales lax credits o(Sl ,25 per capita 10 allocate to developers of affordable
bousing, \\'hi Ie building costs have· increased 40 percent in the last decade, the runOU:1t of the
credit has not been adjusted for inl1ation. Therefore. President Clinton and Viee President Gore
propose to increase the cap on the LlHTC from $1.25 per capita to 51 ,75 per capita ~~ restoring the
value ofIlle credit 10 ils 1986 level and helping 10 an create additiona1150,OOO~lSO,OOO new lo\\,
income rental housing units over the next fi\'c years,
• Play-bvrthe-Rules, Th:s program will aUow renters with solid payment track records to own a
home. The 2000 Budget proposes a. second round of$15 mill ton ror this initiative.
• Helping America's Communities Redevelop Abandoned Buildings. Redcvelopment of Abandoned
Buildings. as pa.1 of the Administrations' "Livability Agenda," would auack one of the primary
causes of blight in urban neighborhoods: abandoned apartment buildings, single~ramily homes,
warehouses, office buildings, and commercial centers. Under the proposal, HUD will provide $50
nlil:ion in competitive grant funds in FY2000 to local governments to support the demoli~ion or
deconstruction of blighted, abandoned bU'ild:ngs.
4
�'.
Atlanta Empowerment Zone (AEZ) Q&A
Q:
"'hat is (he status of tbe Atlanta Empowerment Zone?
A.
As we see loday, there are great success stories in the Atlanta EZ, Unfortunately. lite
press has undercounted the successes, and the problems'ha\'e been over-emphasized. The
City and Mayor Campbell have taken important recent sieps to ensure success including
the hiring of a new executive director (August 1998) and increased the tJartncrship with
City Hat I. The new executive direclor, Josct'h Reid. has heljJed 10 breathe ncw life into
the operalion of the ABZe. We are confident that the AEZe will continue to see many
successes over the remaining six years of the EZ designation.
Cily officials who oversee the initiative describe the z, ne's problems as "growing pains"
and say that the zone is now well,positioned 10 fulfill its, mission in the remaining six
years. Mayor Bill Campbell, who serves as chainnan has placed the zone more closely
under the auspices of the City government. The AEZC moved its offices inlo City Hall
East and its new exccuth'e director is in the process ofrebuilding the staff with the
support of City Hall.
Q:
In ;\1arch 1999, HUD'.): Inspector General issued a report critical ofHUD's oversight
of the EVEC Initiative. The report was based on the results of four recent EZ
audits (including Atlanta). \Vhat are the ramifications of this report and what has
HUD done to rcmcdy the issucs idcntified in thc IG report?
A.
HUD has adequate policies and procedures in place to ensure EZ funds are spent
according to an EZJEC Strategic Plan that is HUD's statutory role. HHS. thc source of
the federal EZlEC funds, in eoncen with the states, is statutorily responsible for ensuring
adequate comrols are in place to ensur(! that tbe EZIEC funds are spent according to the
limits on the uses ofthc HHS EZiEC funds. HUD strongly disagreed with the IG's
fmding and issued a 16~page rebuttal outlining the weaknes.ses of the IG repon. The 1G
subsl!quently recanted one ofits major findings,
Q:
A.
''',hat is your response W a recent HUD IG audit that found substantial problems
wi~b tbe Atlanta EZ?
HUD strongly disagrees with the HUD IG's finding of misspending by the EZs. The
liUD fO used a faulty definition of "pcn11issible EZ activities" in' evaluating the ae:ivities
of the four EZs, Ultimately, in April 1999, the HUD IG ackl1ov.':cogcd its
misinterpretntion ofEZ laws and regulations, and has recanted On the fmdings involving
misspent funds.
Regarding inaccurate EZ reporting, HUD identifIed the pToblem prior to tbe start of the
tG audit and began instituting a new lnlernet~based pcrform::mce measurement systcrn
(PERMS) 10 improve reporting. The new PERMS system has drama.tically improvcd
reponing by the EZIECs. The problems identified in Atlanta were similar to (hose
identified in the other three EZs. There have been many successes in At!anta's EZ
�. .
•
including substantial new investments and leveraging, Addi[ionally. the new executive
director is charged wilh ensuring efficient administration of the EZ programs.
Some of the major accomplishments of the Atlanta EZ:
• The Fulton Bag and Couon Mill, a mixed housing and commercial dc\'clopment at an
abandoned ~ot1on mill. has helped to rcim'igorate the Cabbage Town neighborhood.
• The North Yards Business Park, a 55~acre industrial park, win create much needed
jobs and economic opportunity within the El. Coca-Cola recently purchased }3 acres
to build a facility at the site and has committed to hiring EZ residents, This project
received a $5 million grant from the EZ and S 1 million in HUD Brownficlds
Economic Initiative funding 10 access nnd remedialc environmental coneems at the
sHe.
o Establishment of the Atlanta On. Stop Capital Shop (OSCS) ~'hich helps coordinate
small business scrvices in the 'EZ and surrounding area, A number of Tocal banks,
federal agencies induding SI3A, HUD. and the Department of Commerce have
representatives at the site. The oses also provides entrepreneurs with technical
assis:ance such as creating business plans for fledgling businesses.
• The Sweet Auburn Curb Market (the site of the President's visit in Atlanta) has bee:J
operational since 1923 and was renovated by a $55 million dollar HUD Section 108
loan in 1992, There are approximately 24 businesses currcntly located within the
market.
Q:
\\'hill entities implement the Atlanta Empowerment Zone Strategic Plan?
A.
TIle Atlanta Empowerment Zone established a non-profit 501c(3) corporation. ealled the'
Atlanta Emj)owennent Zone Corporation (AEZC) to implement its Strategic Plan. Mayor
Campbell is thc Chair of the AEZC Board, which also includes business leaders, EZ
residents, non-profits, and other stakeholders, EZ resident inyojvcmcnl in the Atlanta
Str'ltegic Plan is cnha,.'1ccd through the Con:munity Empowemlcnt Advisory Board
(CEAB) which indudc;s representatives from all the neighborhoods in the EZ, The
CEAB is an EZ rcsident adviSOr)' body that works with the Atlanta Empowerment Zone
Corporu~ion 1n impiemcnting the local Slrategic Plan.
Q:
A.
How much bas the AUanta EZ committed and how much has the EZ leveraged?
The Atlanta EZ has 124 projects aad programs ihal illS administerillg 10 implement its
Strulcgic Plan, The Atlanta EZ has spcnt $10 mil!ion in HHS EZEC SSBG funds.
although $4 million ofihal amount covered administrative expcnscs. The EZ has
committed an addItional S60 million in EZIEC SSBG fmds. When fully :mplcmentcd,
the 124 EZ projects/programs wililcycragc an additional $2 bil![on dollars.
�THE WHITE HOUSE
WASHINGTON
May 10, 1999
TOUR OF SWEET AUBURN
DATE:
TIME:
~IARKET
and ROUNDTABLE
May 11, 1999
2:10.2:30pm (lour)
2AO.3:40pm (Roundtable)
LOCATION: Sweet Auburn Market. At!anta GA
Gene Sperling
FROM:
t
PURPOSE
To visit this Empowcnncnt Zone loc:1tion where you can highlight the EZIEC effort th;H has been a
priority for both you and the Vice President o\'er the last six years. Also, by focusing on
Empowerment Zones, it may make this trip less duplicative of your July triP. which will include,
but will go beyond, Empowcnn"ent
II.
ZO:1CS.
. LACKGROUND
Sec attachment on the Sweet Auburn Market and the roundtable participants.
Ill.
PARTICIPANTS
Pre-brief
YOU
Gene Sperling
Maria Echa\'cstc
Mayor Bill Campbell
Ruby Jones
Council Mcmbc:- Debbie Starnes
Secretary Cuomo
Administrator Alvarez
15 CEOs
Tour
YOU
Mayor Bill Ca:li'bcll
Council Mer.1ber Starnes
Gene Sperling
Maria Echavestc
Administrator A!varez
�Secretary Andrew Cuomo
15 CEO.
IV.
SEQUENCE OF EVENTS
YOU will be greeted by Mayor Bill Campbell at the Atlantn Hart.field Airpor1.
YOU. the ~1ayor, and your delegation o[CEOs and Cabinet an'ive at the Sweet
Auburn Market ~'here YOl] are greeted by Council Member Debbie Starnes and
Ruby Jones, Director, Sweet Auburn Markel.
Couneilwoffiiln Starnes will give YOU and the delegiltion il brief ovcr,jcw of the
market
YOU and the dcleg:llion will tour the market and stop 10 speak with selected
vendors. YOU will be followed by the rest of the pa.rticipanls.
Following your walk through the market. YOU will exit the market u.nd take your
seil{ in a casual horse shoe setting with chairs but not tnb;e
YOU will participate in a second roundtable discussion with seven local business
representatives, Milyor Campbell, and Rep, C}11thia ~1cKinney.
YOU make brief remarks and then open it up 10 a discussion (Mayor Campbell
will moderate)
YOU depart.
V.
PRESS COVERAGE
Optn
VI.
REMARKS
Spccchwriting \'\'ill provide openi:lg remarks,
Noteearos will be included in briefing book for dialogue.
VI!.
ATTACHMENT
L One page on lour oflhe Sweet Auburn Curb Street Market
Background on l:1e n~arkel
Background on lour leader
2, Background on Roundtable with LOCill Atlanta Business Owners
�TOUR OF THE SWEET AUBURN CURB STREET l\lARKET
Background on the Sweet Auburn Curb Street Market:
/{irf~ry
• Currently Zl par1 of the City of Atlanta's Empowerment Zone, the Sweet Allburn Curb 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 into an enclosed structure.
• The market is lOC<l~cd in the
Ciiy~s
historic Sweet Auburn area, the City's first African
American commercial district. The market wos in disrepair in 1992 when the City applied
for a Section lOS Joan guarantee of$4.9 million to refurbish the facility.
Cutrc!lt Economic DC1,e!opmen[
• Approximately 24 business arc located within the market with total space for up to 3S
businesses. These businesses include produce vcndors, a florist, a garden center, 3 seafood
markel. and various restaurants, Eight businesses in the market receive direct EZ assistance.
• Businesses with the market onen hire residents from the surrounding EZ neighborhoods and
thereby benefit from EZ lax credits,
• In total. more than 58.3 million in federal funding has been directed 10 the market and its
vendors, TIlese funds include EZ grants to businesses for equipment~ CDBa funds for site
improvements and commercial rehabililaltOn and Section 108 loans for commercial
rehabilitation,
Background on Tour Leader. Ruby Jones:
Ruby JOtle.f, Propert), Mat/oger. Sweet Aubllrll Curb Market
• Ruby Jones will lead the tour through the market
• Ms. Jones is the property :1anager for the market and is involved in mtracting new businesses
and meeting and developing relationships with neighborhood residents" As propel1y
manager•.she is responsible for lcasing, marketing and coordinating events at Ihc market,
which ific!udc·\'oter registration drives. cooking cemons~rations. educational tours of the
market~; llnd food drives.
• Since the market is loclIteG in the EZ, Ms. Jones vigorously encourages the vendors oft~e
market 10 hire residents from the neighborhood.
• She is also the volunteer coordinalor for the Atlanta Downtown Partnership and serves on the
board of directors of the Midtown Assistance'Cenler.
�ROUNDTABLE WITH LOCAL ATLANTA Bt:SINESS OWNERS
Roundtable Partidpllnfs:
•
•
•
•
Seven business people will participate in the roundtable at the market (see below)
Mayor Bill Campbell will moderate the discussion.
Rep. Cynthia McKinney wHl participale in the roundtable as wetl.
All but one of the businesspeople operates a business or invests in the Empowerment Zone
(jason Slaughter of S&W lntcma~ional Foods operates bis.business in a distressed area of ,.
Ath~'
tajust 0 tside of the zone).
1. Sallie Adams Daniel, Senior Vice Preside/I(, Nariolfs Bank o/Georgia
• Ms, Daniel is an active member of the Atlanta EZ and is a director on its governing board,
• Ms, Daniel will talk about NationsBank's commitment to community revitalization around
the nation. She w~1I also talk about her involvement in the EZ and NationsBank partnersbip
with local CDCs.
., Nations Bank has undertaken a number of activities thai support the revitalization of the
Atlanta EZ and other distressed underservcd communities, NationsBank partners with 'wo
CDCs !oeated in the EZ ~.w the Historic District Development Corporation and Summcrhill
Neighborhood Dcvelopment Corporation, NationsBank provides the CDCs with technical
nssistar.ce ar.d invests in their projects.
2, Joh,t Aderhold, Chairman ofAdcrllOld Properties (Developer of Jhe Fulton Bag and Conon
Mill)
• Mr. Aderhold. Chairman of Aderhold Properties, is thc devcloper of the Fulton Bag and
Cotton Mill project, one of the marquis projcets hclping to revitalize the Cabbage Town
neighborhood in the hean of the Atlanta EZ.
• Mr. Aderhold will speak to the importance of fcderal 'assistance in the deveJopmcllt.ofthe
project. He will a1so comment on the impact that the site bas had on the surrounding area
and the successful economic return on his investment in the projtet.
• The development includes a mixed ineor:lc residemial project with 206 10ft apartments of
which 83 arc 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 uscd a $1 million EZ loan to leverage a $ I0 million HUD Section 221{d)4 loan, a
$400,000 City ofAtlanta Loan ar.d over $6 million in Hisl0::ic Tax Credits and Lowwlncome
Tax Credits, This project has anchored a nun)' of redevelopment in the surrounding area
including the Eureka restaurant, whose owncr is a roundtable participant as \',-'ell.
�, .
3. Tricia DOl/egan, Owner ofEureka Restaurant
• Tricia Donegan, owner oflhis restauranl which opened in the EZ in November 1998.
received technical nssistn.nce from the Atlanta One Stop Capiml Shop (nm by SBA) in
putting together her business plan.
.. )As. Donegan employs 20 peopk, ofwhieh )0 are EZ rcsidcniS:, enabling ber to use lhe
Empowernlent Zone Wage tax credit.
• Ms. Donegan win discuss ber success in hiring EZ residents as well as the importance or1he
major Fulton Bag and Cotton Mill revitalization project to ber decision to locale Ihis small
business in the EZ,
• She also owns a restaurant in another low-income Eas! Atlanta neighborhood.
4. Keunett, B/cakeIJ'1 President afNorth Yards Busilless Park. LLC
• The Atlanta EZ recen11y announced a $5 million grant to Mr. Bleakely's eompany, North
Yards Business Park, to develop a brownfields site Into a 55-acre industr:al park in the EZ
that will cost $25 million. The EZ investment made this project possible.
• The projcet is ajoint \,cn(ure between the Allanta Development Authority, Antioch Urban
Ministries, and a partnership created by the do\\,'nto1A'Tl business community that includes
,
North Yards (the partnership is known as COP A, the Centennial Olympic Park Area).
• Kenneth Bleakely will talk about the COP A business partnership and why it decided to invest
in the site. He will also discuss the organization '$ perspective on hiring EZ residents,
Lastly, he may comment on recent new commitments from prospeetivc tcnants: at (he she,
includir~£ Coca-Cola,
• North Yards has made a commitment to ha\'e its infrastructure contractors hire 50% EZ
residents and has also set a target of having park lenants hire 50('/0 of their employees from
'he EZ.
• The project also rceeived a. $500,000 Brownfields Economic Development Initiative grant
and a $500 1000 HUD Section 108 loan to dcmolish dilapidated structures and make
'infrastructure improvements.
5. Sonya .Jolles, Owner o/the SweeJ Auburn Bread Compall)' lind Sowhcity Cuisine (note:: these
businesses are !ocaled in the I/larketl
• Sonya Jones and her husband, Rohert Jones. own two shops in thc n:arket They cmploy six
people. She is a professional chcf trained at the Culinary InstitUte of Amcrica in Ncw York.
SOIl)'a initially owned only the Southeity Cuisine, and later assunlea ownership of Sweet
Auhu!11 Brcad Company.
• Sonya Joncs willlalk ahout her experience as a small husiness owner in the EZ, She will
com~cnt on the imponance of both lhe EZ funds and the surrounding dc\'elopment to tbc
success 0 f her business,
• Ms, lones's clientele includes cmpioyees of the adjacent Orney Hospital, Hugh Spaulding
Children's Hospital. residents ofthc Grady Homes. public housi!lg and the remaining
community,
�6. Vb'ian Reid, Co-Owner ofthe Ka.ffcc Shop (note: (his business i~ toealcd in the marker)
• Vivian Reid, along with her two sisters, own Ihis slore which sel]s a variety of coffee
products and ~'hich has been in business for a year and a half.
• Ms. Reid '.\'ill discuss how owning and operating a sroan 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-to-Work partieipanL
7. Jason Slaughter, OWller of S& HI In/emotional Foods (note: this business is not located in
the EZj
• S&W I:1temational Foods was established in 1996 and is a tremendous example of a growing
•
•
•
•
sr.udl business that received federal support In lts startup phase.
Jason Slaughter wiH talk about his decision toJocate in the city of Atianla. 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 ~he importance of federal assistance in the startup phase, and his
difficulty at times accessing private capital.
The company cuts and repackages meat products and manufact:.Jres a line of frozen biscuits.
The company has grown from 12 employees to a staff of60 over the tas1 several years and
increased sales from $6 million last year to expected sales of$13 mmion for this year,
Two SBA guaranteed loans have helped S&\V to add new plants and equipment anowing the
company to grow significantly. The company has secured contracts with Sara Lee
Corporation, Ch:.Jrch's, Popeycs. \Val-Mart, Publix. and K:oger.
�FORMA<r FOR SWEET AUnURN ROUNDTAnLE:
1, Mayor B'ill Campbell opens with welcome to the participants: you, the seven business
people~
and Rep. Cynthia McKinney, He will then introduce you
2. You win give brief opening remarks (provided separately by speechwriting)
), You open discussion with business people
• You may want to lum to Sallie Adams Daniel to talk about NationsBank investment in
the EZ
• You may (hen want to 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 t 5
CEOs from your morning roundtable who will accompany you to Atlanta (they will be
seated in the front row with several microphones available to them).
SEVEN LOCAL IlUSINESS PEOI'U; AND SUGGESTED QUESTIONS:
Question for SALLIE ADA~lS DA::"iIELJ Senior Vice President, Nations Bank of Georgia:
Ms. Daniel. how have you seen Ihe Al/a1/fa HZ develop and whal role have you
and Nations Bauk. had i1l {his development?
Daniel's Bad:ground:
• Ms. Danit;( is nn active member of the Atlanta EZ and is a director on its governing bonrd.
• Nations Bank has undertaken a number of activities lhat support the revitalization of the
Atlanta EZ and other distressed undcrserved eommunities.
Daniel's LikelY Points:
• Ms. Daniel will talk about NationsBank's commitment to community revitalization around
the natIon, ShewiH also talk about her involvement in the EZ and NatiollsBank partnership
with local CDCs<
• NationsBank provides the CDCs located in the EZ with technical assistance and invests in
their projects.
�Questlon ror JOHN ADEIUIOLD, Chainnan or Aderhold Properties (Developer urthe Fulton
B.g .nd Cotton Mill):
Mr. Aderhold, can you talk a bil about how public altd priw/fc emities hove come
Jogerher [0 make your Futtoll Bag and Cotton Mill development project a
success?
Aderhold's Baekground:
• Mr. Aderhold, Chainnan of Aderhold Properties, is the developer of the Fulton Bag and
Cotton Mill projecl, one of the marquis projects helping to revitalize lhe Cabbage Town
neighborhood in the heart orthe Atlanta EZ.
• You should know that Fulton Bag and Cotton ~1ill was damaged by a fire on Monday, May
3. It is not expected that this will deter development
Aderhold', Likely Points:
• Mr. Aderhold will speak to the importance of federal assistance in the development orihe
Fulton Bag project. He wilt also comment on the impact that the site has had on the
surrounding area and the suceessful economic return on his investment in the project.
• Thc development includes a mixed income residential project with 206 IoU apartments of
which 83 are rcnled by low-aod modcrate-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 221(d)4Ioan, a
$400.000 City of Atlanta Loan and over $6 million ill Historic Tax Credits and Low-Income
Tax Credits.
• ~This project has anchored a flurry ofrcdcyc]opmcnt in the surrounding area including the
Eureka restaurant. whose owner is a roundlable participant as well.
Question for TRICIA DON EGA:\" owner of Eureka Restaurant;
,
Ms. Donegal!, what prompted YOIl to open your resfaurant in
lJU!
EZ?
Donegan's B;\ckground
• Tricia Donegan owns Eurcka restaurant whieh opened in the EZ in November 1998,
• She also owns a restaurant in another 'ow~ineome East Atlanta neighborhood,
Donegan's Likcly Points:
• Donegan recci .... cd leehnieal assistance from {he Atlanta One Stop Capital Shop (rull by SSA)
in putting together her original business plan.
• Ms, Doncgan cmp!oys 20 people, ofwbich 10 arC EZ residents. enabling her to use the
Empowermcnt Zone Wage lax credit.
• Ms. Donegan will discuss her success in hiring EZ residents as well as the importance of the
major Fulton Bag and COHon Mill re....italization project to her decision to locale this small
business in the EZ.
�Question ror KENNETH BLEAKELY, President or North Yards Business Park, LLC
Mr. Bleakely, your business park has made a commitment 10 hire a significant
'lumber ofEZ rcsidenlS, Calf you talk a bit about this admirable effort?
Blcakely's Background:
• Kenneth Blcakely is the President or North Yards Business Park, LLC.
• The project is ajoin! venture between the Atlanta Development Authority, Antioch Urhan
Ministries, and a partnership created by the downtown business community that includes
'North Yards (tbe partnership is known as COPA, the Centennial Olympic Park Arca).
Blcakcly's" Likely Points:
• The Atlanta EZ recently announced a $5 million grant to Mr. Bleakcly's company. North
Yards Business Park, to develop a brownficlds site into a 55-acre industrial park in the EZ
that will cost $25 million. The EZ investment made this project possible:
• North Yards has madc a commitment to have its infrastructure contractors hire 50% EZ
residents and bas also set a target of having park tenants hire 50% of their employees from
Ule EZ.
• The project also received a $500,000 Brownlields Economic Development Initiative grant
and a $500,000 HUD Section 108 loan to dcmolish dilapidated structures and make
infrastructure improvements.
Qucstion for SONYA JONES, owner of the Swcet Auburn Bread Company and Southdty
Cuisine (note: thesc businesses are located in tbe marke~)
Ms. Jones, Jjust was 011 a tour ofthis terrific market - how have you seen Sweet
Alihurn Market change in rccelll years?
Jones' Background:
• Sonya Jones and her husband, Roben Jones, own
• They employ sIx people.
h~lO
shops in the market.
Jones' Likely Points:
• Sonya Jones wili talk about hcr expcriencc as a small business owner in the EZ. She will
commenl on the importance of both the EZ funds and the surrounding develop!l1CnllO the
sUCcesS of her business.
• Ms. Jonc!;'s clientele includes employees of the adjacent Grady Hospital, Hllgh Spaulding
Childr'en's Hospital, residents of thc Grady Homes. public housing and the remaining
community.
�Question for VIVIA~ REID,
Co~Owncr
oCtile Kaffcc Shop (note: this business is located in the
market)
M.s. Reid, it's my understanding lhat you 've hired an employee who is a Welfill'e
to-Work participant at your .slore here ill the market. CUll you teU us about this?
Reid's Background:
• Vivian Reid, along with her two sisters, o.. .m this store which sells a variety of eoffee
products and which has been in business for a year and a half.
Reid's Likely Points:
• Ms. Reid will diseuss how owning and operating a small business has improved the lives of
her dnd her sisters. She will also talk about the fael that they have been able 10 hire an
employee at the shop who is a Welfare-to· Work participant.
Question for JASON SLAUGHTER} owner ofS&W International Foods (note: this business is
not located in the EZ)
Mr. Slaughter, lthink I read lhat your business has grow/I .wbstallfiully ill (he last
few years and (bal SBA llClped you illlhal growth. Call YOII talk about working
with SBA?
Slaughter's Background:
.
• Jason Slaughter established S& \V International Foods, a meat paekaging and frozen biscuit
company, in 1996.
• The company has grown from 12 employees to a Slaff of 60 over the last several years and
increased sales from 56 million lasl year to expected sales ofS13 million for this year,
Slaughter's Likely Points:
• Jason Slaughter will talk about his deeision to locate in thc eity of Atlanta. Although his
business is nOllocated in the EZ it is in an area that fits the model [or a Ncw Market.
• Slaughter will comment on the importanee 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 the
company to grow significantly. The company has also secured eontracts with Sara Lee
Corporation.
�June 9, 1999
•
MEMORANDUM TO MARIA ECHA VESTE AND STEPHANIE STREETT
FROM:
GENE SPERLING
JONATHAN KAPLAN
LISA GREEN
SlJBJECT:
NEW MARKETS JULY TRIP - PROPOSED SITES
I.
NEXT STEPS FOR SITE SELECTION
June II, 1999
•
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. 11.
Gene, Maria and Stephanie to meet 10 discuss proposed sites
Llrger White House mceling (0 finalize she recommendations
Memo to President summarizing strongest options and alternative options
STRONGEST OPTIONS I'll US FAI<
Native American
Pine Ridge, SD
•
Mississippi Delta
Jackson, MS
Ill,
West Coast
Los Angeles, CA
Soutlrwest
Phoenix, AZ
OTHER OPTIONS
Northeast U rbal1
~ppalacll~a
New York, NY
Kentucky Highlands, K Y
Alhens,OH
Hartford, CT
New Haven/New London, CT
l\'lidwcst
S!. Louis/East St. Louis, MO
Detroit. MI
Akron,OH
ChjC~lgO,
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�tv.
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DETAILS ON POTENTIAL SITES
I.
LOS ANGELES/ANAHEIM, CA: Private Sector Workfo.... Inv.stments in
Disadvantaged Youth
Potential A"nouncemenls alld Site ViSits
• The DOL's Kulick grant program has created 700 new jobs, employing 1700 youth,
Several corporations have made pledges to the Kulick program. Additional pledges
could be sought to expand the progwm through collaboration ~eing formed by Labor
with the National Alliance or Business, Los AngeJes Chamber of Commerce, Mayor's
Businc-'is Leaders Alliance and several foundations. Potential site visits where the
program is currently operating include the Shell Oil Smull Business Academy.
• Other potential sites related to the DOL program include the Youth Opportunities
Unlimited Altemalive High School where the President could tour a center where
fonner gang members, single parents and other out~of~school youth are learning basic
computing skills to help prepare to he productive in the workforce.
• To amplify our focus on disadvantaged youth, we could work with Sandy Weil at
Citigroup who plans to hold the National Academy Foundation's 15th Annual
institute for Staff Development the week of July SU', The meeting will involve public
schools ~md 200+ business partners. NAF focuses on intern sponsorships and youth
focused efforts. They have n fom1al partnership with the Department of the Treasury.
Disadvantages
• The WaHs EZ has received negative publicity. There is also a local community
developmenl bank funded by HUD, the LA Community Development Bank that has
received a great deal of ncgalive publicity, including a relatively recent editorial.
2.
•
PINE
RIOGE~
Sl): Private Sector Investment in Native American Communities
Pote"ti"t A,mouncemellts ami Site Visits
• This community is Ihe first EZ on a reservalion. Fannie Mae is working on a
significant commitment thai Sen., Daschlc would participate in. The Fannie Mae
investment plan will involve a $400 million statewide commitment as well as the
£l!!!ning of a new Partnership Office in Sioux Falls. The plan currently involves
hOllsing mortgage effons only but could potentially includc equity investments.
• Tile Fcderal Housing Finance Board and the Mortgage Bankers Association of
America havc committed lo bring lenders mtercskd in mortgagcs (including
commercial mOl1gagcs) and economic developmenl loans to reservations.
• IBM and American Onlinc hi~Y.!?..~rQ!cen wilh HUD aboul developing Ull e~commeree
system Ihat could be uscd to markct products produced on reservlltions. In Pin~
Ridge E~con:mercc wou:cl be ~tpplicablt to {Hstribution <lrtS and crans products, An
infraslHlct'.lfC investment announcement cOllld be coordinated with thc rclc.tse of the
Commerce report abollllhe dearth oflelecommunications access on reservations.
• A HUD conference on cconomic developmenl will draw 500 tribal leaders fronl
across the U.s. The Presidcnt could address the conference as Iribal consultation, The
President could also announce the establishment of the Board ofDircclors ror the
firsH,;vcr E!lJpowermcnt Zone on <til Indian Reservation. According to HUD, no
sitting Presidcnt, since T.tft, has ever visited.a reservation.
2
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PIIOENIX, AZ: Providing Access to Capitul in Hispanic Communities
Potemial Announcements and Site Visits
• Arizona Multibank Community Development Corporation has provided $12.5 million
to 200 projects throughout Arizona, including a homc~hased day care business and n
local magazine dcdicaled to the arts and lifeways of Native Peoples, It is capitalized
with over $1 0 million from several hanks including NorwesVWeHs Fargo Bank, Bank
of America, Bank One Arizona, MultiBank is currcnlly trying to raise $5 million
from major banks for its new LMI
•
•
smc, We could announce the first LMI SBle and
these new private investments,
• We could also visii a business financed by MultiB:ll1k. For example, Corella Electric,
which was the SBA1986 Minority Small Business of the Ycar received working
capital from MultiBank in its early years. This company now has contracts with
AT&T and is so successful thAt they gave <I supplemental payment to MultiBank lo
make microloans to aspiring smal1 businesses in South Phoenix.
• Microlndustry Credit Rural Organization (MICRO), hased in Tucson, was a
Presidemial Award winner and has received funds from the CDFf Fund. MICRO is a
non-profit loan fund and technical assis1ance provider that is one of thc oldcst
Hispanic development organizations in the nation. We could potentially visit with
one of MICRO's entrepreneurs, There arc also several companies eonsidering major
investments (up to $1 miUion) in MICRO thal could be announced.
• Otber Strong CDFI Options: At the same time lit<ll tbese tUiliOunccmcnls were
being made we could also have principals throughout ihc COtilury making CDFI
announcements in other locations, The foHowing arc also good CDFI options that the
President could visit as an alternative to Multihank. Olher potential sites include:
PHILADELPHIA, PA: Delaware Valley Community Reinvcshnent Fund
"OSTON, MA: Community Lonn Fund
All of the above CDFls have receIved past funding from the COFI fund :md thcy are
all prepared to make substantial announcements and about new private investments.
• Another option is to bring representatives from these CDFls to MultiBank and make a
series of announcements about new investments. In total there are more than S1 00
million in new CDFI announcements that could potentially he announced as port o/"
the trip. As an example, Fannie Mae has indieotcd that !hcy may be in a position 10
announce new CDFl investmenls, building upon their existing investments with
several CDFIs throughout the country.
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MISSISSIPPI DELTA: Investment in SHies and Rural New Markets
Potential Announcements and Site Visits
•
• Enterprise Corporation oftne Delta (Enterprise) is a CDFl, a SBlC, and soon to be
SHA 7(,) Lender. Enterprise has received past funding from the CDPl Fund.
Enterprise is loca1ed in Jackson, Mississippi and makes investments in businesses
throughout the Delta (including Louisiana, Arkansas and Mississippi). Enterprise will
•
5.
become a SBA lender in June and is raising new Investments from several
corporations including Blue CrosS/Blue Shield and SkyteL We {;ould possibly hold a
roundtable here with corporate leaders and bellefil;iarles of Enterprise financing from
thmughotlt the Delta including Louisiana, Arkansas and MiSSIssippi.
• The Mississippi Deliu is a rural EZ and Jackson, Mississippi was designated as a
Strategic Planning Community in the second EZIEC round. The Mid-Delta
Empowerment Zone covers six counties in the northwest area of Miss1ssippL There
are several companies that have benefited from the Zone.that could be good sites,
including the Viking Range Corporation in Greenwood that IS the manufacturer of
Viking ranges, the premiere brand for commercial grade rnnges,
• Potentsnl site visits could inelude"several companies that have reeeived financing
from Enterprise including a manufacturer of construction products that is No.tive
Ameriean owned and serves conslruclion projects in Tennessee. There is also
Marianna Apparel, a 30 year old minority manufacturer loeated in a Mariana
Arkansas, a poor Delta community, thal manufaclurers uniforms for large companies,
induding MeDonnlds.
• SBA is also exploring the possibility of a BusinessLlNC roundtable in the Dehn,
which would include companies such as Federal Express, Bank One, Wal~Mart and
America online.
DisfUll'lI" ((I g es
• Jac.kson, MS is leclmieally located ill the Delta, but is not considered so by some
residents. We would need to be carefullo identify a business for the actual sitc visit
that was within the Delta.
KENTUCKY HIGHLANDS, KY: IlIve,tment in Appalachia .nd Rural New
Markets
P(Jtellfitll AllIl(JUIICttllumts and Site Visits
•
• Kentucky J·iJghlands Investment Corporation (KHIC) is the lead entity for the EZ and
is" cc"if,ed CDrl, SBIC, SBA Micro-lender, and USDA Guaranty Lender. KHiC
Iws invested 550 million ill over 140 enterprises that employ J .285 employees. We
eOllld potentially v'sit several businesses fmanced by KH1C including Mid-South
Ekctrie, Inc., a smalI company funded by KH1C, which has grown to 800 employees
and is now compleling <l S5 ;llil:ion CXP~IIlSiOll that will add tOO-150 employees.
• Labor alld SBA arc working on a job tra:ning investmenl announeemcrU tbat could be
Illlllie in conjunction with an existing piiot Youth Opportunity program.
• 11 IS possible there will illso be new announcements to make about additional private
sector inveslments in KHIC.
• The Appaiuci1ian Regional Commission has funded training for the Womcn's
Initiative Nctwoi'killg Groups, Inc. ;ll1d provided eapllullo ereale a Strulegk Capital
r
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Fund managed by a non~prolit, Mountain Association for Community Economic
Development (MACED). We CQuid potentially visit a businesses helped by onc of
these organizations.
• Kentucky Highland Enterprise Zone Development Venture Fund has been very
successful with Over 500 jobs created through loans to smaU businesses in the EZ. We
c()uld potentiaJ1y visit Specialty Plastic Products of Kentucky. which pians to start
cnnstruction on a second plant in early July,
ATHENS, OH: Investment in Appalachian and Rural New :Markets
Potemial AlluOUIICem{'/lfs (md Site Visits
• Bank One will be closing a $5 million investment in the DeC Growth Fund, a large
•
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national fund with a regional office in Akron, OH, The liming of the closing or an
announcement of Bunk One>s investmenl could be mude in Athens/Nelsonville.
According to David Wilhelm LBJ visited Athens as part of his Great Society kickofT
which could help to frame lhc trip.
Enterprise Development Corporation (EDC) is a CDF] based in The Plains Ohio thai
was founded 19 years ago and covers a 30~counly largcrly rural region of
Appalachian Ohio. They have received grants from the CDFI Fund. Bank One has
committed to making a loan to DC through the SBA micro loan program. The closing
cvcnt is scheduled to take place in A1hens/JI.;clsonvil!c, OH.
An organization calJed ACE-Net (Appalachian Center for Economic Networks) is
l\ctively involved in providing support to small businesses. We could visit a minority
,
woman owned business that manufacturers specialty foods and has been helped by
venture capital financing thut resulted from a prior roundHlble organized by ACE-Nct.
Several groups including Kentucky Highlands InveSlment Corpomtion and ACE-Net
.Ire involved in the fonnation of a new fund [0 be known 3S (he Appalachia Ohio
Development Fund, which will provide lechnical assist.mee to small businesscs in
southern Ohio. Bank One is willing to make on announcement of its intcnt to bccome
a leading investor witb a specific financial commitment
AKRON, OH: MicroJ<:nterprise Development and Investment in
I\Iid~Sized
Cities
Polelltial AIIIlOllll(.'eme1fts and Site Fi...its:
•
• The Safe Harbor Minority Busincss Centcr assists tbe dcvelopmcnt and growth of
nlinorily~owned office and servicc firnls lhrongh support services and technical
assistance. The 7,000 square foot center currently houses ninc businesses. The cemer
also operates'1 micro-lending program in conjunction with Akron's EC Program.
• Enlcrprise Community Fund (ECF) is D co:t-profit husiness loan fund - and a
n:cipient of a CDFl Fund award ~~ thal makcs working capital loans to 5111<111 and
miero~bllsine5Sc.~ ill the distressed neighborhoods of the Akron Enleq)rJsc
Community. ECF :llso provides businesses with much needed technical a,<;slstanee.
• Akron Edison [ndustria~ Incubator was created in 1983 and is it modd small business
incubalor with a multi~{enant fi1ci!ity Lbat provitles ct'lreprcncurs with space and a
wide vuricty of ~Idminisiralive, managcrn~n1, technical and ~rofessiona~ services.
5
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DETROIT: MI: Urban
E7..,,~
or Microenterpf'ise Development
Potential Annoullcements and Site Visits:
•
The Detroit Entrepreneurship Institute, Inc, provides a one-sLop shop for aspiring
micro-entrepreneurs. They have received CDFI funding in the past. DEI may be
selected as an SBA's Women's Center, which could be announced as part ofthc lr!p.
• The Detroit Empowennenl Zone Financial fnslitutions Consortium (EZFIe) was
fonned in support of the Empowenncnt Zone application which the City of Dctrolt
submitted to the Federal govemmenl several years ago. Its members represent
leading financial institutions in the area, including Comerica Bank, First Federal of
Michigan, First Independence Bank, First of America, Greater Detroit Business and
Illtlusiriul Development Co!pora'ion (BIDCO), liberty BIDCO. Michigan Nutional
Bank, Bank One (fomlcrly NED), Standard Federal Bank, and Detroit Local Jnitiative
Support Corporation,
•
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• The Clark Street Technology Park: A fonncr Genera.l Motors plant has been
transfonned into the 70-aere Clark Street Technology Park, the largest development
within the Detroit EZ, Total employmcnt is expected to reach 1,700 pennanent jobs,
}'.;ew tenants that could be included on a visit to the park are as follows: (I) VlTEC, a
'minorhy~owned manufacturer, spent 520 million to construct n neW multi-acre piant
within the Technology Park, This new plant makes auto components and will create
350 new jobs, and 1rni!) and hire local \vorkcrs for tbe positions, (2) Pisfon Packaging,
u minority~owl1cd business slarted by former Detroit Pistons star Vinnie Johnson,
manufactures products for Gcneral Motors. The venture creatcd 50 jobs, and will
soon expand 10 100. (3) The Hispanic Manufacturing Center has ~Idtled 200 jobs. Thc
HMC has committcd 10 hire Zone residents whcre ever possible, (4) Federal Express
has decided to open a 77.000~square~foot sorting and distribution center there th1s
summer. This facility is in construction. Mayor Archer was planning a June 30th
pmss conference to announce thatlhc EZ has achieved their ten year goals within the
first four years oftbc Zone's establishment. This press conference has been
postponed, so we could build this announccment into thc Presidcnt's evcnt
• John James is a local resident of Detroit who redeveloped a Brownfield site into an
extremely suceessfui business, that employees Zone residents and brIngs revenue into
the Zone, OJ serves Ford Motor Company with comprehenslvc transport services,
His expnnding business could be expJored for announcements - for example, he is
about 10 export his first products to Australia.
• ShorebUJ1k wus created in 1997 as a community development hnnk dedicated 10
rcvilatizil~g the Detroit EZ ;)rca. The new iOSliwtion focuses ;18 cmms in scvem!
areas: rcsiocnti.tl, comn1crcial, .md CO:1sumer l03us; rcnl esta!c dcvcIOpmC:1I; and an
emcrprise developmcnt lonn fund. Finally, Shorebunk raised $4,6 f'nilHon from the
Ford FOllndation, Charles Stcwart 1.,,1011 FoundatIOn, and othcr sources to lend to
minority microcntcrpriscs,
• hwcstments by Chrysler in thc Zonc inclmling major production facilities that could
be toured tolal of $2.4 billion dollars.
• Rivcrbcnd Plaza Pbase II Project: This pl'Ojeet involves the construction of a 23,000
square loot addition to tbe Rivcrbcnd Plaza Shopping Center. The cxpumlcd
shopping center will provide retail services La u low to moderate income arca on the
lower East side of Detroit. To date the project bas generated 136 new jobs. The
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projeet is anchored by Rite Aid, a major supermarket (the first one in this underserved
.urea). Additional businesses are slated to COme into this project.
Members ofThe Detroit Empowerment Zone Financial Institutions Consortium
(EZFIe) include leading financial institutions in the area such as Comerica Bank.
First Federal of Michigan, First Independence Bank. First of America, and Detroit
Local Initiative Support Corporation. The EZ FIC committed 51.1 billion in lending
over a ten year period of time within the Detroit Empowerment Zone. To date, over
$956 million has been loaned. approximately 93 percent of the entire 10 year goal.
Mid~size and smJll buslnesses~ one of which could be visited hy the President, were
the. primary beneficiaries.
,
Disadl J(Ulfl1ges
• The Detroit EZ has received public criticism for not spending {heir funds in a timely
manner.
• The Detroit EZ has received significant attention already from the prcss with recent
visits by the Viee President. The story of Detroit as an economically Sl1cccssful EZ
could bc overly saturated.
9.
ST. LOUIS/EAST ST. LOUlS,MO: Urban EZs
Po/emial AmlOullcemell/S aud Site Vi.\'i/s:
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The former Enterprise Community (whieh is part of the EZ) gave rise to the Jackec
Joyner Kersee Community Center, which will provide educational and recreational
programs for youth, The Jaekee Joyner Kersee Community Center, whieh received
HUD funding, could he the site of ttn evenL A nlllnbcr of corporations have
contributed to the Jackee Joyner Kersce cenler, including Enterprise RCllt-A-Cnr, May
DepL Stores, and NationsBank. 20 jobs wili be created.
Within lhe EZ, Wnlgrcens will locale an anchor store in [he largest shopping center to
be built in the area since 1950, The SJ million slore is part of a $10 million shopping
center. The developer, Koman Properties, Inc. said they also havc lctters of intent to
lease the property from State Faml Insurance. Hollywood video, Save-A-Lot and
otherS.
Levy Sign company. D and H AulD service, and Nails, Etc, arc small businesses thaI
bave been pre-approved for loans through the small business development center.
These businesses will ereate 25 new jobs for EZ residents, Sile visits could take place
at the small business locations,
The SL Louis 2004 Revitalize Ncighborl~oous Project features $75l million in loans
and illveslmenls by 18 local financial instilHl:ons and the creation of200 jobs in Eust
Sl. Louts and eight other targeted communities.
YouthBuilJ East St. Louis (YBE) received a $700,(){){) implementation grant in 1997,
VBE has successfully 90mple\ed (wo major projects, which included Ihe dcmQ~itiol1
phase ofSt. Teresa Transitional hocsing projcci for lbc Ema St. Louis community
using community development block gran! {CDUG), and tlle rcnovation of u single
family borne for the East St LOllis Housing AUlhonty, Pleasc nole Ihal Mayor Powell
has official express support for YBE.
7
�10.
•
CHICAGO, IL: Invesling in
CD~'I'
and Urban EZ,
PotenJlat AnllOUlICemenJs anti Site Visits:
• The lIHnois Facmties Fund finances nonprofit facilities that support low ineome
pcopJe in Chicago and elsewhere in the state of minnis, The fund has previously
received funding from the CDFI Fund. IFF focuses on financing day car~ centers,
health care clinics. and other critical. We could potentially visit a daycare center
facility. A major company is also prepared to announce a significant financiai
investment in IFF's chiklcare initiatives.
• Other Strong COFI Options: At the same time that these announcements were
•
. belng made we could also have principals throughout the country making CDFT
announcements in other locations. The followmg arc also good CDFI options that the
President could visit as an alternative to MultiBank. Other potential sites inelude:
PHILADELPHIA~ PA: Delaware Valley Community Reinvestment Fund
BOSTON, MA: Communily Loan Fund
AI! of the above CDFls h<lve received past funding from the CDFI fund and they arc
all prepared to make substantial announcements and about new private investments.
• Another option is to bring representatives from these CDFTs to MultiI3ank and make a
series of announeements ahout new investmenls. As an example, Fannie Mae has
indicated lhat (hey may be in a position to announce new COFr investmcnls, building
upon their existing investments with several COFts throughout the country. In total
there are more than $100 million in new CDFl announcemenls that could potentially
be announced as part of the trip.
• There are several priv(Ite' companies interested in making announcements in Chicago.
(I) SBe Communications is also involved in hiring programs for the Hispanic
community. We might be able to coordinate an annOuncement around this workforce
uctivity. (2) Ameriteeh is developing a partnership with Arrica~Amerjean
entrepreneurs selling cable door to door. (3) BankAmeriea has identified Chicago us
ant: of the siles where they would be willing to make a major national announcement
rei:Jled to New Markets.
• TIm BusincssRoundluble is prcpured to all announcement nbout a BusincssLINC
chapter here whieh could open simultaneously \'~ith chapters in New York and
Dullas. There is II possibility of holding a roundtable on BusinessLTNC in this
location along with simultaneous roundtables in other locations.
• I3ankAmerica IUtS identified Chicago as one of the sites where they would be willing
to make a major national armounccrnent relnted to New Markets.
Disfitll'lilftage.s
• Chicago may have issues related to tlie HZ ihtH nccd to he veued.
•
8
�iL
•
HARTFORD, CT: Private Sector Efforts to Attract Capital to Underserved Urban
Areas
Potential Announcemellls and Slle Visits:
• Aelna is currently involved in several major projects in the ~ommunily ineluding the
MetroHartford Millennium Ilrojeet. which is a comprehensive effort and eollaboration
10 attract capital and development from outside Metro Hartford.
• The Metro liartford investment Fund is being developed and with Aetna's leadership
expects to raise $50 to $100 minion from Hartford based corporations. A major
announcement ofcorporate commitments iO the fund could be made as part or the
tour.
• There is a smull woman owned husiness called McHugh Puhlishing & Design IDeated
in West Hartford lhat has received SUA assistanee lhrough a men10ring program for
Women.
• Fannie Mae hils J new partnership with BankBoston in Hartford involving $1 0
million for residential and commercial conslruetion financing that was described in a
recent article as a "collahorative effort between private and public investors that's
designed to improve people's lives." Fannie Mae made an equity investment through
ils American Communities Fund group. Although the pnrtnership has been
announced it can be highlighted uS a local example of New Markets equity
investment.
•
12.
•
NEW YORK (CITY, NY: llusinessLiNC andlor Urb,m EZS
Pmellrial Annoullcements fwd Sire V;,\'i(s
• The Business Roundtahle, including Chase M:mhauan and MeDon.lIds, will be
prepared to make a m.~or announcement thaI they will house the BusinessLJNC
coalition, Dann Mead. Chair of 3RT. could aloo announce the appointment orthe
CEO who will run BusinessUNC.
• Chase Manhattan has <l Business Center p:,ogrmn that was recently expanded which
il!ustrates the benefits of BusinessLlNC. We eould visit this site or visit the si!e of a
business that \VIIS assisled by BusinessLlNC, for example an African-American
owned manufacturer ofprinler loner. Another BusillessLTNC site visit could be the
Metropolitan Teaching and Learning Comp,my. which received a $1 million
lnvcstment from NYCIF (see below) and is mcntored hy Primcdia. a large educmional
publisher. The site visit would be al a Brooklyn school that uses the curriculum
publishcd hy Mctropolilail, The school may have a summer program in session,
• At the same time this announcemcnt is being, made, we could also make an
announcement abOHI the other BRT BusincssLlNC chapters in DaBas and Chlcago.
which wouhl "open" simultancollsly. The!"c is atso Ihc possibility of simultaneously
holding a roumltahlc on BusincssUNC in anothcr location tbat would involvc local
husincsses nnd cabinct l1iC1Ilbers.
• The New York City Investment Fund, is 11 model oflhe type of cO!l1munity
development Yentu!'e fm;ds that the New Markets lni~iu[ivcwould benefic Invostors
in tbis fund indudc many oftne major corporations in New York slleh as Chase .md
Fannie Mac, We could visit a company that has received tlnancing from NYCIF,
such as Independent Carcy System which is a home health cafC company located in
9
�the Bronx that will eventually employ up to 1.000 people, Based on conversations
that HUD has had with specific companies there is a strong likelihood that Bill
Harrison, new CEO ofChase and Henry Krnvis. major venture capitalist and founder
ofNYCJF could attend event
• There are also numerous retail initiatives in Harlem New York that could be
announced including store and business openings such as Starbucks and Walt Disney.
• ACC10N New York. Inc, is a recipient ofCDFI funds and one of the largest
microlcnding organizations in the United Slates, having made over 1.800 loans
ranging from $500 to $25.000 to more [han 900 clients, There is the possibility of
making announcements related 10 lhe nationwide neiwork that ACCION !'lew York is
•
a part o(
DisadlJ!l.IItages
• Recent negalive publicity abou! the New York EZ.
• fn fIghting among local polificLans and officials regarding the zone,
.• TensIons between local retailers and large chains opening in Harlem,
13.
NEW HAVEN and NEW LONDON, CT: Urban EZs and Investments .round
Technology
Polential AllfJOU"Cemellt,~ autl Site Visit,"
•
•
•
A network of specialized quasi-public developmenr corporations, created through
eoltahorations with the private sector and local banks, will continue to offer tl range of
investment vehicles to meet the capital needs for business stnrt~llp and cxpansion,
These corporntions include the Ncw Haven Community Investment CorpOnltiOIl, the
Technology Investment Fund, lhe New Havcn Enterprise Development Corporntion
and the Connecticut Economic Development Fund,
• The Omni Hospital Training collaborative hilS brought nn additional 200+ jobs to the
nrcn with over 80 residents cmployed at New Haven's new Omni Hotel. We cOl1ld
potentially visit this site,
• Yale University has invested $10,750,000 in various initiatives for the community
ranging from h.omcownership programs to community scrvice for studcm~,
• Th{: Regional \Vorkforce Dcvelopment Board's invcstment, through its employment
training funds, 0[$2,250,000 per year and commitment to anchoring tho Parrnership
for Job:;' program, P(1rlfl(1rsMp for Jobs will lise an cmpJoycrwddvon model to
develop training programs that will connect neighborhood residents 10 specific
employment opportunities in the ncighborhoods and surrounding areas
10
�
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 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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 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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 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<a href="http://clinton.presidentiallibraries.us/items/show/36051">Collection Finding Aid</a>
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Clinton Presidential Records: White House Staff and Office Files
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Clinton Presidential Library & Museum
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Adobe Acrobat Document
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1474 folders in 111 boxes
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NEC – New Markets [1]
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History of the National Economic Council
Clinton Administration History Project
Date
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1993-2001
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Box 44
<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>
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Clinton Presidential Records: White House Staff and Office Files
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6/24/2011
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1497354-nec-new-markets-1
1497354