South West Economic South West Economic Business Resource Center Business Resource Center

Group ProjectGroup Project

Jill AllenJill AllenJooHwan CheonJooHwan Cheon

Jonathan HamletJonathan HamletRobert HordRobert Hord

Monica LenardMonica LenardGreta NasiGreta Nasi

Final Final Recommendations Recommendations

AgendaAgenda

• Overview of the Project and the ClientOverview of the Project and the Client

• MethodologyMethodology

• Empowerment Zone: Some DetailsEmpowerment Zone: Some Details

• FindingsFindings

• Recommendations /SWEBRC Strategic PlanRecommendations /SWEBRC Strategic Plan

Overview of the ClientOverview of the Client

South West Economic Business South West Economic Business Resource Center (SWEBRC) is a non Resource Center (SWEBRC) is a non profit organization seeking ways to profit organization seeking ways to improve economic development by improve economic development by providing technical and financial providing technical and financial need and ongoing support services need and ongoing support services for small businessesfor small businesses

Overview of the ProjectOverview of the Project

Our objectives were to assist SWEBRC:Our objectives were to assist SWEBRC:

• To devise a marketing plan indicating To devise a marketing plan indicating how to attract businesses to the city of how to attract businesses to the city of SyracuseSyracuse

• To develop a strategic plan specifying To develop a strategic plan specifying how to maximize resources needed to how to maximize resources needed to develop empowerment zonesdevelop empowerment zones

MethodologyMethodology

• Literature review: HUD and Academic Literature review: HUD and Academic FindingsFindings

• Administer questionnaires for Administer questionnaires for benchmarking purposesbenchmarking purposes

• Interviews and correspondence with Interviews and correspondence with local partnerslocal partners

• Analyze how other effective Analyze how other effective empowerment zones leverage empowerment zones leverage resources and enhance the economic resources and enhance the economic development development

Empowerment ZoneEmpowerment Zone

• First effective in 1993 as part of the First effective in 1993 as part of the Federal Omnibus Budget Reconciliation Federal Omnibus Budget Reconciliation Act which aim was to develop Act which aim was to develop community revitalization strategies community revitalization strategies

• It is managed by HUDIt is managed by HUD

• ObjectiveObjective: to provide tax incentives to : to provide tax incentives to businesses in order to promote businesses in order to promote economic growth in depressed urban economic growth in depressed urban and rural areas throughout the countryand rural areas throughout the country

Syracuse Empowerment Syracuse Empowerment ZoneZone

http://www.syracusecentral.com/fastfacts/http://www.syracusecentral.com/fastfacts/bus06.htmlbus06.html

Syracuse’s EZ: FactsSyracuse’s EZ: Facts• 48,507 residents in the EZ from the total 48,507 residents in the EZ from the total

population of 147,306 (2000 census)population of 147,306 (2000 census)

• 6,63 square miles6,63 square miles

• Currently there are 19 tractsCurrently there are 19 tracts

• 18 tracts with poverty rates greater than 18 tracts with poverty rates greater than 25%25%

• Poverty rate for the above 18 census Poverty rate for the above 18 census tracts ranges from 33.7 to 65.8%tracts ranges from 33.7 to 65.8%

• Unemployment in the 19 tracts is 16.6%Unemployment in the 19 tracts is 16.6%

Syracuse’s EZ: Goals to Syracuse’s EZ: Goals to achieveachieve

• Economic developmentEconomic development ( (Tourism/retail, Tourism/retail, Technology/new economy, Neighborhood businesses, Technology/new economy, Neighborhood businesses,

Education/medicalEducation/medical))• Housing RevitalizationHousing Revitalization ( (Tomorrow’s Tomorrow’s

Neighborhood Today- TNTNeighborhood Today- TNT))• Higher Education/TrainingHigher Education/Training

• Environmental improvementEnvironmental improvement

• Health and social welfareHealth and social welfare

• Public Transportation enhancementPublic Transportation enhancement

• Public Safety meliorationPublic Safety melioration

• Youth ServicesYouth Services

Syracuse’s EZ: IncentivesSyracuse’s EZ: Incentives• Wage and Tax creditsWage and Tax credits• Low-income housing tax creditsLow-income housing tax credits• Bond financing (to assist public institutions)Bond financing (to assist public institutions)• Brownfields tax incentives (polluted area deveBrownfields tax incentives (polluted area deve

lopment)lopment)• Welfare to work credits (hiring long-term familWelfare to work credits (hiring long-term famil

y assistance recipients)y assistance recipients)• Property tax reductionsProperty tax reductions

Findings: Literature and Findings: Literature and benchmarkingbenchmarking

• Successful EZs are driven by a centralized Successful EZs are driven by a centralized entity apart from the local municipalityentity apart from the local municipality

• Partnerships and networks must be develoPartnerships and networks must be developed in order to effectively pool resourcesped in order to effectively pool resources

• Benefits beyond tax incentives should be aBenefits beyond tax incentives should be addressed to potential businessesddressed to potential businesses

Findings: Challenges gathered Findings: Challenges gathered from benchmarkingfrom benchmarking

• Political support may be inconsistentPolitical support may be inconsistent

• Delays in project fundingDelays in project funding

• Funding channeled through slow and Funding channeled through slow and inefficient local government agenciesinefficient local government agencies

• Partners turn into vendersPartners turn into venders

Findings: Syracuse’s landscape Findings: Syracuse’s landscape

• Syracuse has a Community Network Syracuse has a Community Network that works on economic developmentthat works on economic development

• There are many city-wide stakeholders, There are many city-wide stakeholders, but there is not an EZ designated leaderbut there is not an EZ designated leader

Findings: Southwest area’s Findings: Southwest area’s implicit costsimplicit costs

• Lack of securityLack of security

• Scarcity of skilled workersScarcity of skilled workers

• Poor infrastructurePoor infrastructure

• Lack of technical expertiseLack of technical expertise

• Lack of coordination in development Lack of coordination in development effortsefforts

Recommendations /SWEBRC Recommendations /SWEBRC Strategic PlanStrategic PlanI.I. Strengthen SW Syracuse community Strengthen SW Syracuse community

networks to strengthen political capital in networks to strengthen political capital in SW, the City of Syracuse, and externally.SW, the City of Syracuse, and externally.

--Town hall meetingsTown hall meetings

-Business coalition meetings-Business coalition meetings

-Youth-oriented services-Youth-oriented services

-Advertise-Advertise SWEBRCSWEBRC

-Partner with financial institutions-Partner with financial institutions

-Strengthen relations with other EZ stakeholders-Strengthen relations with other EZ stakeholders

-Establish contact with other cities-Establish contact with other cities

Recommendations /SWEBRC StrateRecommendations /SWEBRC Strategic Plangic Plan

Practical Steps:Practical Steps: -Database-Database-Identify locations available for-Identify locations available forentrepreneurial activitiesentrepreneurial activities-Monthly newsletter-Monthly newsletter

Recommendations /SWEBRC StrateRecommendations /SWEBRC Strategic Plangic Plan

II.II. Establish SWEBRC as the technical expert Establish SWEBRC as the technical expert and “go to” resource for business owners and “go to” resource for business owners who wish to utilize the Empowerment who wish to utilize the Empowerment ZoneZone-Contact accounting experts-Contact accounting experts

-Keep local businesses informed about EZ -Keep local businesses informed about EZ benefitsbenefits

Practical Steps:Practical Steps:

-Brochures explaining tax benefits-Brochures explaining tax benefits

-Training sessions about the EZ-Training sessions about the EZ

Recommendations /SWEBRC StrateRecommendations /SWEBRC Strategic Plangic Plan

III.III. Improve Economic and Business Conditions in Improve Economic and Business Conditions in the SWthe SW

-Generate a recruitment system-Generate a recruitment system-Focus on Krispy Kreme & Little Italy-Focus on Krispy Kreme & Little Italy-Support development of IT capabilities in SW-Support development of IT capabilities in SWPractical Steps:Practical Steps:-Make land plans available to community partners-Make land plans available to community partners-Business expos-Business expos

Recommendations /SWEBRC StrateRecommendations /SWEBRC Strategic Plangic Plan

IV.IV. Enhance SWEBRC’s Organizational CapabilitieEnhance SWEBRC’s Organizational Capabilitiess

-Organization development-Organization development-Change management-Change management-Support management-Support management-Knowledge management-Knowledge management-Evaluation management-Evaluation management-Certification-Certification

Recommendations /SWEBRC StrateRecommendations /SWEBRC Strategic Plangic Plan

Practical Steps:Practical Steps: -Track individuals who attend training sessions-Track individuals who attend training sessions-Track number of businesses SWEBRC aids in-Track number of businesses SWEBRC aids inobtaining financingobtaining financing-Track business that utilize SWEBRC for EZ-Track business that utilize SWEBRC for EZaccounting informationaccounting information-Create database to track performance measures-Create database to track performance measures-Update SWEBRC’s website with full coverage of-Update SWEBRC’s website with full coverage ofEZ informationEZ information

Thank You!Thank You!

Questions?Questions?