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

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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

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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

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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

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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

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Syracuse Empowerment Zone

• http//www.syracusecentral.com/fastfacts/bus06.htm
  l

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Syracuses 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

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Syracuses EZ Goals to achieve

• Economic development (Tourism/retail,
  Technology/new economy, Neighborhood businesses,
  Education/medical)
• Housing Revitalization (Tomorrows Neighborhood
  Today- TNT)
• Higher Education/Training
• Environmental improvement
• Health and social welfare
• Public Transportation enhancement
• Public Safety melioration
• Youth Services

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Syracuses 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

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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

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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

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Findings Syracuses 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

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Findings Southwest areas implicit costs

• Lack of security
• Scarcity of skilled workers
• Poor infrastructure
• Lack of technical expertise
• Lack of coordination in development efforts

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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
• -Advertise SWEBRC
• -Partner with financial institutions
• -Strengthen relations with other EZ stakeholders
• -Establish contact with other cities

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Recommendations /SWEBRC Strategic Plan

• Practical Steps
• -Database
• -Identify locations available for
• entrepreneurial activities
• -Monthly newsletter

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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

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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

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Recommendations /SWEBRC Strategic Plan

• Enhance SWEBRCs Organizational Capabilities
• -Organization development
• -Change management
• -Support management
• -Knowledge management
• -Evaluation management
• -Certification

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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 SWEBRCs website with full coverage of
• EZ information

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Thank You!Questions?