Subsidizing the Low Road: Economic ... - Good Jobs First

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Baltimore Management Corporation (EBMC), a quasi-public agency. As of June 2000,EBMC had spent $34 million of the $100 million cash grant. 54The four goals of the Empowerment Zone are business development for jobcreation, workforce development, improving quality of life, and community capacitybuilding. 55 The program seeks to balance the goals of business development,neighborhood development and social programs. However, since there is $250 millionbudgeted for tax credits for business development, in addition to business-orientedprograms paid out of the $100 million cash grant, Empowerment Zone spending leanstowards business development.One business development program is a federal tax credit of up to $3,000 peremployee for businesses that hire zone residents. The EMBC also has several loanfunds, including a small business loan fund and a Brownfields loan fund. EMBC alsoprovides support and networking opportunities for zone businesses. The EMBC claimsto have created 4,800 jobs through its business development programs. 56 EMBCofficials admit that although they have succeeded in helping residents find low-payingjobs, they need to do more to get residents into higher-paying jobs. 57Workforce development programs include job training, job readiness, literacyand other educational programs. Support services such as transportation or drugtreatment programs are also provided for residents. Workforce development programsare required to place workers in jobs paying at least $6.50 an hour. 58Quality of life programs include community policing, extended day schools andhomeownership programs. The EMBC reports that the homeownership program,which provides grants of up to $5,000 for low- and moderate-income residents, hashelped 711 residents become new homeowners. 59A range of businesses from a variety of industries have benefited from theEmpowerment Zone program. EMBC, for example, has worked with the BDC todevelop an industrial park in the Fairfield area, which is a largely underutilizedindustrial site that contains many brownfield areas. As a result of improvements madeby the city, the Fairfield area has attracted $100 million in private investment. 60The EMBC also supports small businesses that create relatively good jobs, suchas a sign company and an auto body shop. However, Empowerment Zone money alsogoes towards the city’s already heavily subsidized tourism industry, with loans forrestaurants such as the Bohagers and Charleston restaurants, and tax credits for theMarriott Waterfront Hotel. 6112
ConclusionBaltimore’s response to the decline of its industrial base has been to focus onthe development of office space, retail and housing in the downtown area. The InnerHarbor redevelopment is the most visible and successful of these efforts; other effortsinclude the city’s attempts to revitalize retail and housing in the West Side area nearLexington market. The city has continued a downtown-oriented strategy by devotingsignificant resources to tourism, parking, the redevelopment of Inner Harbor East andthe West Side. The Empowerment Zones have shifted some resources into industrialdevelopment and into other areas of the city, although some Empowerment Zonefunds do go towards projects in Inner Harbor East (which is included in the Zone). Thecity’s newest major initiative, the proposed Biotechnology Park, is the most significantinvestment outside of the downtown area. This project could serve to link the areas ofEast Baltimore and the Inner Harbor/Downtown.13
Page 1 and 2: Subsidizing the Low Road:Economic D
Page 3 and 4: Table of ContentsAcknowledgments…
Page 5 and 6: Executive SummaryAn analysis of Bal
Page 7 and 8: of packages. The BDC evaluates prop
Page 9: 1. Revitalizing Downtown: A History
Page 18 and 19: the agenda was the city's acquisiti
Page 22 and 23: Table 3. Major BDC Projects Approve
Page 24: 3. How Baltimore Finances Economic
Page 27: While promoting development, TIF co
Page 30 and 31: 4. The Economic Development Decisio
Page 32 and 33: • whether the project would provi
Page 34 and 35: The real question, however, in eval
Page 36 and 37: to alleviate poverty if job quality
Page 38 and 39: Committee. 130 The Committee focuse
Page 40 and 41: emained skeptical. George Williams,
Page 42 and 43: Effect on State Aid. The state dist
Page 44 and 45: 7. Case Study: Additional Payments
Page 46 and 47: 8. Case Study: The Orioles and Rave
Page 48 and 49: The Ravens RoostWhile the Orioles w
Page 50 and 51: Soon after Modell agreed to move hi
Page 52 and 53: 9. Case Study: East Baltimore Biote
Page 54 and 55: However, the city may well be overe
Page 56 and 57: will allow Johns Hopkins to expand
Page 58 and 59: 10. ConclusionBaltimore’s massive
Page 60 and 61: Wage standards could be pegged to t
Page 62 and 63: 34 Hula, 1990.35 Thomson, 2001.36 L
Page 64 and 65: 103 Levine, 1987a.104 Levine, 2000
Page 66 and 67: 167 Baltimore Development Corporati

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