Wednesday, January 13, 1999



Molokai picked
for 10-year
U.S. boost

Honolulu's bid fails, but
'enterprise' status will help revive
one isle's economy and pride

By Pete Pichaske
Star-Bulletin

Tapa

WASHINGTON -- Molokai has been picked as a rural "enterprise community" by the Clinton administration, a designation local leaders hope will give their little island a big boost.

However, the administration rejected requests from Honolulu, Kauai, and Kau on the Big Island for special economic development status.

And Molokai failed in its bid to become an "empowerment zone," which brings more benefits than the enterprise community designation.

The announcement came here in Washington, as Vice President Al Gore named the 20 empowerment zones and 20 rural enterprise communities, picked from about 160 applications, that will be the latest in a program the administration regards as key to revitalizing ailing communities.

But the reverberations were felt across the Pacific. Honolulu officials, who had traveled to Washington to hand-deliver their application months ago in a delegation led by Mayor Jeremy Harris, said some good will still came from the process.

"We're disappointed, of course, but we still feel we have the opportunity to move our community forward," said Harris spokeswoman Carol Costa.

She said Harris had set aside $38 million for community development projects that were prompted by the application process.

On Molokai, meanwhile, elated leaders are hoping their designation will boost both economic vitality and civic pride on one of the poorest of the Hawaiian Islands.

"It's wonderful. It's a great economic development program for the community and it could lead to some wonderful things," said Robbie Guard, economic development coordinator for Maui County, which governs Molokai.

As an enterprise community, Molokai will receive $250,000 in grants a year for 10 years (empowerment zones receive up to $2 million a year), get tax credits for employment programs, and be eligible for tax-exempt bonds. These benefits, say Molokai leaders, will help new and existing businesses, create jobs (the island's unemployment rate is 17 percent) and reduce poverty.

Leaders say implementing the plan should give the Molokai community a needed dose of self-reliance.

"We have not been a community with much of a voice in its own destiny. We worked hard to determine what the Molokai community wants for itself, and having this plan honored like this will really open some doors," said Karen Holt, executive director of the Molokai Community Services Council, which applied for the designation.

"It's not as much money as an empowerment zone, but this means a lot to this community," added Alton Arakaki, one of the community facilitators for the application. "It will provide an image of what Molokai wants for itself."

Molokai's 10-year "strategic plan," as outlined in its application, includes projects in environmental recovery and protection, economic recovery, self-governance and health and human services.



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