Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, October 1, 1993                   TAG: 9403100015
SECTION: EDITORIAL                    PAGE: A14   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Medium

A CHANCE TO SHOW CITY'S ENTERPRISE

President Clinton's vision of "empowerment zones" and "enterprise communities" survived the congressional budget process, but a select few localities will be able to participate in the program. There will be only about 10 empowerment zones in the nation and about 100 enterprise communities, a second-tier program that will offer less - but not inconsiderable - help cultivating economic rebirth in areas that need it.

The federal government will choose the zones and communities from among areas nominated by state and local governments. To be eligible for one of these designations, an urban area must have a poverty rate of at least 20 percent, with 90 percent of the population tracts within that area having a poverty rate of at least 25 percent, and half of them a poverty rate of not less than 35 percent.

(Rural areas will be chosen to participate, as well. They must meet the same poverty rate criteria in an area of no more than 1,000 square miles with a population of 30,000 or less.)

The programs will differ from existing urban enterprise zones, which offer tax incentives to businesses to locate in economically distressed areas. The empowerment zones and enterprise communities will be eligible for tax, financing and regulatory incentives, yes, but also for grants and priority in federal programs to help deal with f+idisoincentives to investment, such as lack of a trained work force and safety fears. There will be $2.5 billion in tax incentives and $1 billion in block grants for social programs ranging from job training to housing rehabilitation to teen pregnancy counseling.

Is there any doubt that Roanoke, where more than 50 percent of the children in public schools live below the poverty line; Roanoke, which has been looking to its neighbors, to the General Assembly, anywhere for help in addressing its core-city problems; is there any doubt that Roanoke should try to become part of the Clinton experiment?

It apparently means to, if it can qualify. The city already has identified the census tracts that meet the poverty criteria, and is tracking closely how the program is shaping up in Congress. But that is just a beginning. Communities will be chosen based on the commitment shown by the local government - and the people in the community who are key to success. Local and state government, businesses, volunteer groups, nonprofit agencies and community organizations within the proposed renewal area - it is not too early for people from all of these groups to get together and talk about what each would contribute if they won the designation. What investment could be expected? How many jobs might be created? What community support would be extended? What would this community look like if it had the resources this federal program is offering?

How would the plan empower local residents to become economically self-sufficient? That is the goal.

The localities that can answer that question in a way that reveals a sound vision and inspires confidence in its success will be among the handful nationwide that will participate in the Federal Empowerment Zone Program. Roanoke and its citizens, both corporate and private, must get an early start if it hopes to be among them.