Special Publication- The EZ After 10 Years: Key Accomplishments

Revitalizing the Quality of Life (download)

Enhancing the Quality of Life (download)

Creating Access to Capital (download)

Remaking an Industrial Corridor (download)

Sustaining Community Stewardship (download)

Essay: EZ Accomplishments after Nine Years (April 2004)

Nine years into the Empowerment Zone program, its American Street, North Central and West Philadelphia communities are now more attractive places in which to live and work, with increased commercial activity. The following five acheivements are among the most significant to date:

1. Creating national models to sustain the impact of the Empowerment Zone’s work.

2. Lending over $35 million and leveraging another $83 million through 187 loans that have attracted new businesses to the EZ and supported the growth of existing businesses. Through these loans, the EZ helped maintain and create 1,197 jobs for EZ residents.

3. Cleaning and greening more than 18 acres of formerly trash-strewn vacant lots in the three EZ neighborhoods.

4. Spurring revitalization by uniting 44 organizations located along Girard Avenue into a new coalition, a key commercial corridor connecting the American Street and North Central Empowerment Zone and Renewal Community neighborhood.

5. Creating strong collaborations among businesses, community based organizations, and the public sector to develop and implement economic development plans.

Over the past two years, the Philadelphia EZ has focused on developing new models to sustain the impact of its work. The creation of long-term community endowments in the American Street and North Central neighborhoods is a particularly innovative component of the EZ’s sustainability strategy. The Empowerment Zone is using loan repayments to create what we call Neighborhood Funding Streams. The Funding Streams will make grants to projects that meet Empowerment Zone principles and ensure that resources continue to be available to these Empowerment Zone neighborhoods well beyond the end of the federal EZ designation. The EZ’s Community Trust Boards are setting funding strategies and priorities, thus continuing their planning role and building the community’s capacity. The EZ has chosen the United Way and the Vanguard Group as their partners in this innovative program. Since January 2004, over $6 million in loan repayments have been invested to help build the Funding Streams. In FY 05, the EZ’s goal is to issue the first Request for Proposals using the Neighborhood Funding Stream.

Another component of the EZ’s sustainability strategy is the creation of three Community Lending Institutions that manage revolving loan pools to attract new businesses to the Empowerment Zone and help existing businesses expand. In the year ending December 31, 2003, the EZ’s three Community Lending Institutions settled 37 loans totaling over $8 million. Overall, the EZ has been able to attract leverage of more than two dollars for every dollar lent. Actual leverage has yet to be reported for most of this past year’s loans.

Over the last two years, the EZ has sought sustainability in a third way, by using its resources to conduct planning, provide early resources and seed activities to support Mayor Street’s Neighborhood Transformation Initiative (NTI). For example, the EZ’s Vacant Land Stabilization project has served as the model for the NTI’s citywide efforts in this area of work. This work has had a dramatic impact, creating a more inviting climate for residents, employers, employees and prospective businesses. In the last year, work focused on the stabilization of eight lots each in the North Central and West Philadelphia EZ neighborhoods and the development of a long-term strategy to ensure the maintenance of stabilized lots. In FY 05, additional lots will be greened at key gateways and along commercial corridors.

Another component of the EZ’s sustainability strategy is to create independent organizations that can bring to fruition the earlier planning efforts of the EZ. The Girard Coalition is one example. Spurred by SEPTA’s planned re-introduction of the Route 15 trolley, in the spring of 2001 the EZ convened The Girard Avenue Coalition to foster economic growth and enhance the commercial environment and quality of life along Girard Avenue and in the surrounding residential neighborhoods. The EZ established a partnership with the Local Initiatives Support Corporation (LISC) to provide technical and financial assistance to this effort. With boundaries stretching from I-95 to 33rd Street, this work extends through the American Street and North Central EZ, as well as the Renewal Community. The Coalition has completed a comprehensive planning process for Girard Avenue, secured an initial allocation of $1 million in City Capital Funds for infrastructure improvements between Front and 6th Streets and initiated a public art/gateway project with funding from the William Penn Foundation. In November, 2003, the Coalition transformed itself into an independent, non-profit organization; it adopted by-laws, elected a Board of Directors, and selected officers. Goals for FY 05 include securing additional funding to implement the land use and streetscape recommendations contained in the plan.

All three EZ neighborhoods have established commercial corridor revitalization strategies and strong collaborative relationships that bring together residents with the public and private sectors to encourage this economic development. In American Street, significant progress has been made in improving the cleanliness and safety of the industrial and commercial corridors; developing ways to calm traffic and facilitate truck access to American Street; planning streetscape improvements, facilitating land assembly to attract new businesses and jobs, and laying the groundwork to obtain private sector support for these programs. The EZ’s goals for FY 05 include securing federal or state resources for reconfiguring the gateway to American Street at Girard Avenue; implementing recommended streetscape improvements; launching a shared program to improve nighttime security; and completing site assembly projects on American Street.

In West Philadelphia, the EZ has allocated almost $1.5 million towards the enhancement of its commercial corridors, with programs that will include cleaning, vacant land stabilization, business support, façade improvements, and other activities. The EZ’s West Philadelphia community lending institution has identified an anchor tenant for a retail center at 52nd and Jefferson Streets that it is co-developing with The Goldenberg Group.

In FY 05, the North Central EZ plans to fund a collaborative of community-based organizations to support quality of life and economic development improvements. Goals include improving community safety by coordinating available resources and increasing community involvement in police/community partnerships; providing incentives to businesses to improve security, lighting, and building conditions on the commercial corridors; and beginning to examine the feasibility of creating a Neighborhood Improvement District (NID) along its commercial corridors.

Since January 2002, the Empowerment Zone office has also been responsible for administering the Renewal Community program. Philadelphia was one of only 40 localities selected through a competitive national process. This new initiative provides a set of attractive tax incentives to encourage revitalization throughout parts of North, West and South Philadelphia. To build awareness of the RC program during the last two years, the EZ staff has trained over 300 public and private sector economic development professionals, accountants, and attorneys and mailed information on the benefits of the RC program to more than 6,500 interested individuals and businesses in the Philadelphia region.

The Renewal Community designation carries with it five federal tax incentives. One of them, the Commercial Revitalization Deduction, is capped at $12 million per year per City. It is awarded on a competitive basis by the City and the state. During the last two years, $24 million in Commercial Revitalization Deductions has been awarded to sixteen enterprises, ranging from a construction company to a child care center, a dental laboratory, and two large retail centers. These developments leveraged over $145 million in private funds and project the creation of 2,700 new and full and part-time positions and the retention of 225 jobs in Philadelphia. These projects enhanced the commercial and industrial environment in neighborhoods stretching from South Philadelphia to North Central Philadelphia and from West Philadelphia to Allegheny West and Kensington. The Renewal Community plans to allocate another $12 million in calendar year 2004.

Over the last two years, we have showcased the Empowerment Zone and Renewal Community neighborhoods to over 150 members of the regional development community who attended our annual Developers' Breakfast and Tour. Last year, we were also honored to host a national Community Renewal Workshop sponsored by the U.S. Department of Housing and Urban Development. We were proud to share the successes of the Philadelphia EZ and Renewal Community with HUD Secretary Alphonso Jackson and over 300 other individuals representing EZs, RCs, and local, state and federal government.