‘Empowerment zone’
request goes to D.C.Honolulu has a lot of competition
By Pete Pichaske
for the millions of dollars in grants
Star-BulletinWASHINGTON -- Mayor Jeremy Harris and his top aides personally delivered Honolulu's application to be named an "empowerment zone" to the U.S. Department of Housing and Urban Development today, touting it to HUD administrators as "an innovative proposal" with "a vast array of ideas."
Harris said, "Nothing has sparked more excitement, more hope, more enthusiasm in our city than this process," noting that more than 55,000 hours of volunteer work went into the proposal.
After seven years of recession, said Harris, "there is a great deal of need for the empowerment zone" in Hawaii.
Empowerment zones, as designated by HUD, are eligible for tens of millions of dollars in federal grants, as well as low-interest loans and tax-exempt bonds. Businesses in the areas are eligible for tax credits.
HUD uses the designation to revitalize poor or run-down communities. In 1994, 105 cities and towns were designated, and $1.5 billion in federal money was set aside to aid those cities.
Honolulu, in its application, proposes using the money for a variety of projects, from increasing child-care for working parents to boosting commercial aquaculture.
Honolulu's application appeared to be well-received.
"It sounds like you're going in the right direction," said Dennis Kane, coordinator of the program.
But federal help for the city is not necessarily on the way.
HUD is expecting 125-150 applications for only 15 available designations, said Kane.
Moreover, while the Clinton Administration has requested another $1.5 billion, Congress has not yet set aside any federal funds for this year's zones.
"We're working on it," said Rep. Neil Abercrombie, D-Honolulu, who accompanied Harris to HUD -- and sweetened the presentation with gifts of chocolate-covered Macadamia nuts for the HUD officials.
