South West Economic Business Resource Center Group Project

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

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

3. 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

4. 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 develop a strategic plan specifying how to maximize resources needed to develop empowerment zones

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

6. Empowerment Zone • 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 • Objective: to provide tax incentives to businesses in order to promote economic growth in depressed urban and rural areas throughout the country

7. Syracuse Empowerment Zone http://www.syracusecentral.com/fastfacts/bus06.html

8. Syracuse’s EZ: Facts • 48,507 residents in the EZ from the total population of 147,306 (2000 census) • 6,63 square miles • Currently there are 19 tracts • 18 tracts with poverty rates greater than 25% • Poverty rate for the above 18 census tracts ranges from 33.7 to 65.8% • Unemployment in the 19 tracts is 16.6%

9. Syracuse’s EZ: Goals to achieve • Economic development (Tourism/retail, Technology/new economy, Neighborhood businesses, Education/medical) • Housing Revitalization (Tomorrow’s Neighborhood Today- TNT) • Higher Education/Training • Environmental improvement • Health and social welfare • Public Transportation enhancement • Public Safety melioration • Youth Services

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

11. Findings: Literature and benchmarking • 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 • Benefits beyond tax incentives should be addressed to potential businesses

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

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

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

15. Recommendations /SWEBRC Strategic Plan • 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 -AdvertiseSWEBRC -Partner with financial institutions -Strengthen relations with other EZ stakeholders -Establish contact with other cities

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

17. Recommendations /SWEBRC Strategic Plan • 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: -Brochures explaining tax benefits -Training sessions about the EZ

18. Recommendations /SWEBRC Strategic Plan • 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

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

20. Recommendations /SWEBRC Strategic Plan 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

21. Thank You!Questions?