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From January 2002
through December 2009, an area of Milwaukee is designated as a Renewal Community
(RC) by the US Department of Housing and Urban Development. During this
designation period, businesses located within Milwaukee’s RC will have access to
a package of Federal tax incentives – with the goal of job growth and economic
development. For additional information about the program, see the
HUD website and a JSOnline
article about
the program.
The RC effort has some similarities to HUD's Empowerment Zone and Enterprise Communities program. However, instead of offering an infusion of dollars into designated areas, HUD will provide designated areas with a package of tax incentives. The RC program aims to spur economic development and job creation in the countries most distressed communities by offering designated areas a package of tax incentives for business growth.
Milwaukee joined with the Urban Economic Development Association, Local
Initiatives Support Corporation and Helen Bader Foundation to prepare the
application. And together, we met with representatives of community
organizations, business associations, and workforce development agencies to
explain the RC program, to discuss the opportunities that might exist with such
a designation and to gather input on the application, also known as the "Course
of Action."
(Read the
executive summary
of Milwaukee's Course of Action.)
The Renewal Communities designation will give disadvantaged neighborhoods in the city an extra tool to lure prospective employers, help existing companies with expansion plans and provide job opportunities.
The City has delineated a
Renewal Community
area that meets HUD's requirements.
Application Process
The City of Milwaukee Department of City Development, in partnership with Urban
Economic Development Association (UEDA), Local Initiatives Support Corporation (LISC),
Helen Bader Foundation, Metro Milwaukee Association of Commerce (MMAC) and
Milwaukee’s Housing Authority worked together to submit the application. The
application process included three steps:
1. Determine an area HUD
requires that applicants base their geographic area on specific demographic
information from the 1990 census. HUD’s criteria required that we choose an
area with census tracts that have unemployment rates greater than 9.4% and a
poverty rate of at least 20 percent. In addition, at least 70% of area
households must have incomes below 80% of median income. HUD enters the
applicant’s demographic data into a computer and designates those areas that
statically show the greatest need.
2. Submit a
document
summarizing how local government (city and state) programs have worked and will
work with community-based organizations to reduce burdens and to improve
services for RC residents and businesses. HUD calls this
document a “Course of Action.”
(Read the
executive summary
of Milwaukee's Course of Action.)
They
require that applicants explain the role of local government in the following
activities:
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Reducing tax burden |
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Improving and increasing
local services |
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Implementing crime
reduction strategies |
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Acting to reduce or remove
government requirements |
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Increasing community
involvement in economic development activities |
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Promoting the giving, or
selling at below fair market value, of surplus property |
3. Gather
signatures and letters of support The Course of Action must be signed by state and local government officials
as well as community-based organizations, business associations and other
partners in economic development. Several community organizations and
businesses submitted letters of support.
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