https://www.americancityandcounty.com/wp-content/themes/acc_child/assets/images/logo/footer-logo.png
  • Home
  • Co-op Solutions
  • Hybrid Work
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcast
  • Resources & Events
    • Back
    • Resources
    • Webinars
    • White Papers
    • IWCE 2022
    • How to Contribute
    • Municipal Cost Index – Archive
    • Equipment Watch Page
    • American City & County Awards
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Privacy Statement
    • Terms of Service
American City and County
  • NEWSLETTER
  • Home
  • Co-op Solutions
  • Hybrid Work
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcasts
  • Resources/Events
    • Back
    • Webinars
    • White Papers/eBooks
    • IWCE 2022
    • How to Contribute
    • American City & County Awards
    • Municipal Cost Index
    • Equipment Watch Page
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Cookie Policy
    • Privacy Stament
    • Terms of Service
  • newsletter
  • Administration
  • Economy & Finance
  • Procurement
  • Public Safety
  • Public Works & Utilities
  • Smart Cities & Technology
  • Magazine
acc.com


‘Zone’ proposals get a new look

‘Zone’ proposals get a new look

This past fall, the vice presidential candidates went toe to toe on the issue of inner city redevelopment. Jack Kemp, of course, was one of the original
  • Written by Barlas, Stephen
  • 1st November 1996

This past fall, the vice presidential candidates went toe to toe on the issue of inner city redevelopment. Jack Kemp, of course, was one of the original advocates of enterprise zones, both before and during his tenure as secretary of the Department of Housing and Urban Development (HUD) in the Bush administration.

Al Gore chairs the Community Empowerment Board, which is responsible for the Clinton administration-erected Empowerment Zone and Enterprise Communities program run out of HUD.

Kemp and Gore differ on what incentives the zones — empowerment, enterprise or otherwise — should offer businesses. But, to paraphrase a popular movie line, both men believe that “if you build them, they will come.”

So far, though, there has not exactly been a rush of companies to the 11 empowerment zones and 84 enterprise communities created by the Clinton administration in December 1994. “The general consensus,” says Urban Institute analyst Chris Walker, “is ‘ain’t nothing going on there yet.”‘

The six big-city empowerment zones received $100 million in 1995. Cleveland and Los Angeles were later named “supplemental” zones, getting $90 million and $125 million, respectively.

The money is supposed to help with local training, education and other programs designed to bring the skills of local residents up to snuff. Additionally, companies that locate within the designated areas receive a $3,000 wage tax credit per local resident hired.

The enterprise communities get about $3 million a year but receive no tax credits.

Mike Steele, president and CEO of Elder Health, a health care center for frail adults in inner-city Baltimore, says he opened his business there partly because of an empowerment zone designation. Steele’s company employs 45 people, two-thirds of whom drive in from outside the zone. Those are the employees with the medium- to high-skill jobs. Steele says that he is attempting to train some of the lower-skilled local residents, but he acknowledges that only time will tell if Elder Health can meet that challenge.

Randy Arndt, a spokesperson with the Washington, D.C.-based National League of Cities, says he cannot judge the effectiveness of the administration’s efforts because “we haven’t seen much happen yet.”

Lack of results may account for the Clinton administration’s efforts to sweeten the pot. In September, the Department of Commerce issued a proposed rule on “empowerment contracting,” which would offer companies locating in areas with a poverty rate of more than 20 percent advantages in bidding for federal contracts.

That 20 percent threshold exceeds requirements for empowerment zones and enterprise cities. Additionally, 15 percent of the companies’ workforce would have to be local residents.

Sen. Christopher Bond (R – Mo.), chairman of the Senate Small Business Committee, has proposed a GOP alternative that would create Historically Underutilized Business Zones (HUB zones).

Under this designation, small businesses employing local residents for at least 35 percent of their workforce would get preference over even minority business enterprises in the federal contracting game.

That is sure to foster significant opposition within Congress.

Still, some observers like Ron Utt, a senior fellow at the conservative Heritage Foundation, argue that regardless of the names the zones are given — or the incentives offered — businesses will remain leery of locating within any designated area if they cannot draw a workforce without even very basic skills.

Tags:

Most Recent


  • Report: Reforming emergency dispatch won't be easy, but it's necessary
    Over the last several years, reforming law enforcement has been a primary topic of discussion in communities across the nation. Discourse has mostly centered around the challenges agencies face in addressing the complex needs of those in mental health crisis, and the disparity of experience among community members depending on their race. But in this […]
  • Bloomberg
    Three U.S. cities to adopt Bloomberg Philanthropies Mayors Challenge-winning project to combat climate change
    Bloomberg Philanthropies has announced that seven global cities, including three in the United States, will be adopting Stockholm’s Biochar Project, which turns plant waste from parks and homes into a charcoal-like substance that residents can use in their yards to help combat climate change. The project was the winner of the 2014 Bloomberg Philanthropies European […]
  • 10 cities ideal for hybrid or full-time telecommuters seeking an outdoor lifestyle
    When the pandemic was first realized, cities emptied out, highways were suddenly devoid of cars and storefronts shuttered overnight. The assumption in many communities was that it would last for a few months and then everything would return to normal—those who’d left would return to their office jobs and apartments.  But these two years later, […]
  • ‘Zone’ proposals get a new look
    Take American City & County's budgeting survey
    With the recently passed infrastructure-related legislation by the federal government, local administrators across the United States are poised to make historic investments into their communities.  Given the generational precedence of this action, we’re curious about the state of local budgets—what expense lines are increasing the fastest year-over-year? In what area has federal funding been the […]

Leave a comment Cancel reply

-or-

Log in with your American City and County account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Arbor Day Foundation and Intrinsyx Environmental offer natural solution to clean up industrial contamination in cities and towns
  • MS-ISAC members get free access to Deloitte’s Cyber Detect and Respond Portal to help respond to cyber threats
  • Deltek releases 12th annual Clarity Government Contracting Report
  • How local governments can improve bridge projects through strategic engagement

White papers


How to Assemble a Rockstar Website Redesign Steering Committee

7th June 2022

Hand Hygiene: Compliance Matters

23rd May 2022

What it Takes to Build a Winning Esports Program

23rd May 2022
view all

Events


PODCAST


Young Leaders Episode 4 – Cyril Jefferson – City Councilman, High Point, North Carolina

13th October 2020

Young Leaders Episode 3 – Shannon Hardin – City Council President, Columbus, Ohio

27th July 2020

Young Leaders Episode 2 – Christian Williams – Development Services Planner, Goodyear, Ariz.

1st July 2020
view all

Twitter


AmerCityCounty

We want to hear from you! Please take this brief survey and let us know how your organization is managing your budg… twitter.com/i/web/status/1…

30th June 2022
AmerCityCounty

Report: Reforming emergency dispatch won’t be easy, but it’s necessary dlvr.it/ST7kQ5

30th June 2022
AmerCityCounty

Three U.S. cities to adopt Bloomberg Philanthropies Mayors Challenge-winning project to combat climate change dlvr.it/ST4bjk

29th June 2022
AmerCityCounty

10 cities ideal for hybrid or full-time telecommuters seeking an outdoor lifestyle dlvr.it/ST4T5g

29th June 2022
AmerCityCounty

Take American City & County’s budgeting survey dlvr.it/ST0qQP

28th June 2022
AmerCityCounty

Six cities and counties will take stock of underutilized assets in Rethinking Revenue incubator dlvr.it/ST0ZVp

28th June 2022
AmerCityCounty

Seamless Cooperative Experience Saves Indiana City Exponentially in Time and Money dlvr.it/SSxp95

27th June 2022
AmerCityCounty

10 best large cities for fishing dlvr.it/SSxbSZ

27th June 2022

Newsletters

Sign up for American City & County’s newsletters to receive regular news and information updates about local governments.

Resale Insights Dashboard

The Resale Insights Dashboard provides model-level data for the entire used equipment market to help you save time and money.

Municipal Cost Index

Updated monthly since 1978, our exclusive Municipal Cost Index shows the effects of inflation on the cost of providing municipal services

Media Kit and Advertising

Want to reach our digital audience? Learn more here.

DISCOVER MORE FROM INFORMA TECH

  • IWCE’s Urgent Communications
  • IWCE Expo

WORKING WITH US

  • About Us
  • Contact Us

FOLLOW American City and County ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookies Policy
  • Terms
Copyright © 2022 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X