Akron, Ohio News Release...

AKRON SEEKS EMPOWERMENT ZONE STATUS
Community-wide effort could lead to $100 million infusion

(September 28, 1998) In an attempt to build upon the City of Akron's nationally recognized Enterprise Community accomplishments, a broad-based network of citizens, social service agencies, education, business, government and neighborhood leaders have completed weeks of assembling an application to the U.S. Department of Housing and Urban Development (HUD) that could bring more than $100 million to the community. Their recommendations, included in the application, must now go before Akron City Council before being submitted formally to HUD. 

The city is competing with other communities across the United States to be among 15 selected as an Urban Empowerment Zone. Included in this designation is an award of $10 million per year for ten years, and special tax benefits related to financing and employment and federal preferences for program applications by other organizations that would benefit the Empowerment Zone (EZ). The purpose of the program is to increase economic opportunity and sustainable development for the residents, businesses and institutions of this area.

Qualifications

The EZ area can contain no more than 50,000 persons and its boundaries are determined by census tract boundaries. Any tract included must have at least 20% of its population below the federal poverty line, and 90% of the tracts must have more than 25% of its population below the poverty line. The entire area can encompass no more than 20 square miles. The City has the
option of adding up to three "developable sites", containing a maximum of 2,000 acres outside the boundaries of the EZ, which are commercial and industrially zoned.

Akron's Proposal

The City's proposed area contains 49,265 persons, 39.1% of whom live below the federal poverty level. The area is similar to Akron's already established Enterprise Community area, containing the downtown area, the near north, west and south portions of the city and the Arlington Street corridor from near East Market Street south to the corporate limits. The City has developed a set of strategies, objectives and funding allocations that address creating economic opportunity through entrepreneurial development, land assembly and development, brownfield development, financing incentives, developing the work force of the EZ, supporting the community through strategic initiatives in education, housing, family support, health and public safety. These strategies rose out of numerous meeting with community partners and representatives.

Directing the Funds

In broad terms, the City of Akron is proposing to focus $16 million on entrepreneurial development, $8 million on work force development, $7 million on developable sites, $5 million on capital incentives, $30 million in education initiatives, $30 million in a variety of housing, family support, health and public safety initiatives, and $4 million for administration.

Mayor Don Plusquellic said today, "We have demonstrated, as an Enterprise Community, our strength as innovators in urban development and our commitment to creating new jobs. And beyond the $100 million in federal support, becoming an Urban Empowerment Zone will ultimately lead to hundreds of millions of dollars more in increased investments in our community over a decade."

As part of Akron's Enterprise Zone strategy, Mayor Plusquellic is asking Akron City Council to pass, at tonight's meeting, the City's proposal to purchase approximately 50 acres of land at 2600 South Main Street. This land is currently vacant. As part of the EZ application, the City of Akron would develop and market the property to create employment opportunities for residents in the EZ and Enterprise Community.  EZ funds would be invested in the development of the parcel. Purchase price for the land is $1.65 million.

The deadline for the Empowerment Zone application to be filed in Washington, D.C. is October 9, 1998.