South West Economic Business Resource Center Group Project Jill Allen JooHwan Cheon Jonathan Hamlet Robert Hord Monica Lenard Greta Nasi Final Recommendations

Agenda Overview of the Project and the Client Overview of the Project and the Client Methodology Methodology Empowerment Zone: Some Details Empowerment Zone: Some Details Findings Findings Recommendations /SWEBRC Strategic Plan Recommendations /SWEBRC Strategic Plan

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

Overview of the Project Our objectives were to assist SWEBRC: To devise a marketing plan indicating how to attract businesses to the city of Syracuse To devise a marketing plan indicating how to attract businesses to the city of Syracuse To develop a strategic plan specifying how to maximize resources needed to develop empowerment zones To develop a strategic plan specifying how to maximize resources needed to develop empowerment zones

Methodology Literature review: HUD and Academic Findings Literature review: HUD and Academic Findings Administer questionnaires for benchmarking purposes Administer questionnaires for benchmarking purposes Interviews and correspondence with local partners Interviews and correspondence with local partners Analyze how other effective empowerment zones leverage resources and enhance the economic development Analyze how other effective empowerment zones leverage resources and enhance the economic development

Empowerment Zone First effective in 1993 as part of the Federal Omnibus Budget Reconciliation Act which aim was to develop community revitalization strategies First effective in 1993 as part of the Federal Omnibus Budget Reconciliation Act which aim was to develop community revitalization strategies It is managed by HUD It is managed by HUD Objective: to provide tax incentives to businesses in order to promote economic growth in depressed urban and rural areas throughout the country Objective: to provide tax incentives to businesses in order to promote economic growth in depressed urban and rural areas throughout the country

Syracuse Empowerment Zone

Syracuse’s EZ: Facts 48,507 residents in the EZ from the total population of 147,306 (2000 census) 48,507 residents in the EZ from the total population of 147,306 (2000 census) 6,63 square miles 6,63 square miles Currently there are 19 tracts Currently there are 19 tracts 18 tracts with poverty rates greater than 25% 18 tracts with poverty rates greater than 25% Poverty rate for the above 18 census tracts ranges from 33.7 to 65.8% Poverty rate for the above 18 census 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 achieve Economic development ( Tourism/retail, Technology/new economy, Neighborhood businesses, Education/medical ) Economic development ( Tourism/retail, Technology/new economy, Neighborhood businesses, Education/medical ) Housing Revitalization ( Tomorrow’s Neighborhood Today- TNT ) Housing Revitalization ( Tomorrow’s Neighborhood Today- TNT ) Higher Education/Training Higher Education/Training Environmental improvement Environmental improvement Health and social welfare Health and social welfare Public Transportation enhancement Public Transportation enhancement Public Safety melioration Public Safety melioration Youth Services Youth Services

Syracuse’s EZ: Incentives Wage and Tax credits Wage and Tax credits Low-income housing tax credits Low-income housing tax credits Bond financing (to assist public institutions) Bond financing (to assist public institutions) Brownfields tax incentives (polluted area development) Brownfields tax incentives (polluted area development) Welfare to work credits (hiring long-term family assistance recipients) Welfare to work credits (hiring long-term family assistance recipients) Property tax reductions Property tax reductions

Findings: Literature and benchmarking Successful EZs are driven by a centralized entity apart from the local municipality Successful EZs are driven by a centralized entity apart from the local municipality Partnerships and networks must be developed in order to effectively pool resources Partnerships and networks must be developed in order to effectively pool resources Benefits beyond tax incentives should be addressed to potential businesses Benefits beyond tax incentives should be addressed to potential businesses

Findings: Challenges gathered from benchmarking Political support may be inconsistent Political support may be inconsistent Delays in project funding Delays in project funding Funding channeled through slow and inefficient local government agencies Funding channeled through slow and inefficient local government agencies Partners turn into venders Partners turn into venders

Findings: Syracuse’s landscape Syracuse has a Community Network that works on economic development Syracuse has a Community Network that works on economic development There are many city-wide stakeholders, but there is not an EZ designated leader There are many city-wide stakeholders, but there is not an EZ designated leader

Findings: Southwest area’s implicit costs Lack of security Lack of security Scarcity of skilled workers Scarcity of skilled workers Poor infrastructure Poor infrastructure Lack of technical expertise Lack of technical expertise Lack of coordination in development efforts Lack of coordination in development efforts

Recommendations /SWEBRC Strategic Plan I. Strengthen SW Syracuse community networks to strengthen political capital in SW, the City of Syracuse, and externally. - Town hall meetings -Business coalition meetings -Youth-oriented services -Advertise SWEBRC -Partner with financial institutions -Strengthen relations with other EZ stakeholders -Establish contact with other cities

Recommendations /SWEBRC Strategic Plan Practical Steps: Practical Steps:-Database -Identify locations available for entrepreneurial activities -Monthly newsletter

Recommendations /SWEBRC Strategic Plan II. Establish SWEBRC as the technical expert and “go to” resource for business owners who wish to utilize the Empowerment Zone -Contact accounting experts -Keep local businesses informed about EZ benefits Practical Steps: Practical Steps: -Brochures explaining tax benefits -Training sessions about the EZ

Recommendations /SWEBRC Strategic Plan III. Improve Economic and Business Conditions in the SW -Generate a recruitment system -Focus on Krispy Kreme & Little Italy -Support development of IT capabilities in SW Practical Steps: -Make land plans available to community partners -Business expos

Recommendations /SWEBRC Strategic Plan IV. Enhance SWEBRC’s Organizational Capabilities -Organization development -Change management -Support management -Knowledge management -Evaluation management -Certification

Recommendations /SWEBRC Strategic Plan Practical Steps: Practical Steps: -Track individuals who attend training sessions -Track number of businesses SWEBRC aids in obtaining financing -Track business that utilize SWEBRC for EZ accounting information -Create database to track performance measures -Update SWEBRC’s website with full coverage of EZ information

Thank You! Questions?