Chinatown and the Lower East Side: A Study of Economic Possibilities Michael Lee, Assistant Director

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Chinatown and the Lower East SideA Study
of Economic PossibilitiesMichael Lee,
Assistant DirectorRenaissance Economic
Development CorporationOctober 26, 2007
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Renaissance Economic Development Corporation

• Mission provide direct financing and technical
  assistance to low-income, minority, women and
  immigrant entrepreneurs and small business owners
  in New York City.
• 501(c)(3) - Established in 1997.
• A certified U.S. Community Development Financial
  Institution (CDFI).
• Target Markets
• Chinatown and LES
• East Elmhurst, Corona, Jackson Heights, Jamaica,
  Richmond Hill, and Flushing
• Sunset Park
• Administrator for Chinatown/LES Empire Zone

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Chinatown/Lower East Side Empire Zone(March 7,
2006)
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What is the Empire Zones Program?

• State Program (Empire State Development Corp.)
• Stimulate economic growth in low-income
  communities
• State tax credits for job creation investment
• Businesses must apply to enter the Program
  (certification)
• Local administration

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Local Administration

• Zone Administrative Board
• Zone Development Plan
• Businesses must fit within ZDP to enter the
  Program
• ZDPs can be revised at the Boards discretion

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Categories of Businesses

• From the Interim Guidance Document
• Traded businesses - export a substantial portion
  (e.g. 60 or more) of their goods/services
  outside of the Zone.
• Non-traded/captive businesses primarily serve
  the local market area. Generally speaking,
  non-traded businessesshould not be targeted
  unless a compelling case can be made for doing
  so.
• At-risk businesses/industries often are not
  dependent on a specific geographic location, or
  local market area.
• Tourism destination projects catalyst
  projects, the reason someone visits an area or
  extends their stay. (Does not include the
  ancillary retail/service businesses such as
  diners, ice cream shops, etc.).

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Key Principles

• Empire Zone is one tool among many for economic
  development not a cure-all.
• Work towards net economic improvement not just
  shifting jobs from non-Zone-certified businesses
  to Zone-certified businesses.
• Businesses can relocate to the Zone whether or
  not they are included in ZDP.
• A business does not need to be identified in ZDP
  to benefit from EZ Program (economic
  multipliers).
• Once ZAB sets a standard for businesses to meet,
  must certify all businesses meeting that standard.

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Chinatown the Lower East Side Present Economic
Conditions

• Strengths
• Entrepreneurial spirit (almost 5,000 small
  businesses
• Diligent workforce with a growing population
• International ties (Asia, Latin America)
• Local economy is interrelated

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Chinatown the Lower East Side Present
Economic Conditions

• Impediments to growth
• Pure price competition between small businesses
  (prevents growth)
• Lack of job training and daycare
• Decline in major employers (garment
  manufacturers)
• Main streets are lively but havent lived up to
  potential
• Economic isolation of the Zone lack of traded
  businesses
• Commercial property
• Threat of conversion to market rate housing
• What remains is expensive and of poor quality
• Some property is underutilized (Waterfront)

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Chinatown/LES Plan

• Build on our strengths, remove impediments to
  growth
• More jobs for residents, minorities and women
• Main street development
• Preserve commercial property where threatened
• Protect manufacturing

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Goal More Jobs for Residents, Minorities and
Women

• Large employers
• Local recruitment
• Job training programs
• Reports on local hiring
• Protect manufacturing
• Attract businesses that can offer career
  advancement possibilities (quality jobs).
• Encourage affordable, preschool day care

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Goal Preserving Commercial and Manufacturing Uses

• Target comm./mfg areas facing pressure to convert
  to market rate housing.
• Encourage development of comm./mfg property.
• Attract traded businesses with a potential for
  growth (Admerasia).

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Goal Main Street Development

• Tourist destination projects
• Economic multipliers
• Gateways to existing small businesses
• International trade
• Make main streets a visible center of
  international trade
• Import/export companies

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Next Steps for Businesses

• Target businesses
• Design firms
• Hotels with conference centers
• Architecture engineering firms
• Non-national retail stores
• Light Manufacturer
• Linkages within the community
• Present your case to the Board