CUOMO ANNOUNCES $51.6 MILLION IN ECONOMIC DEVELOPMENT ASSISTANCE FOR NEW YORK CITY, MOUNT VERNON, YONKERS AND BUFFALO
NEW YORK - U.S. Housing and Urban Development Secretary Andrew Cuomo today announced $51.6 million in economic development assistance to New York City, Mount Vernon, Yonkers and Buffalo, NY that will lead to the creation of about 2,100 jobs and stimulate about $84 million in additional public and private investment.
"We're investing in building a better future for businesses and families in New York," Cuomo said. "By helping businesses to start up and grow, we'll create jobs, we'll create new opportunity for families, and we'll help revitalize communities."
A total of $42.6 million of the new assistance is in the form of Economic Development Loan Guarantees under HUD's Section 108 program. The loan guarantees enable communities to borrow money at reduced interest rates to fund job creation, housing rehabilitation, the construction of public facilities and large-scale development projects.
The remaining $9 million of the assistance is in the form of HUD Economic Development Initiative (EDI) grants, which go to localities to fund economic development activities that create jobs, primarily for people with low and moderate incomes. Working with Congress, Cuomo created the EDI grants in 1994, when he was an Assistant Secretary at HUD, to work in tandem with HUD's loan guarantees.
Here's where the HUD assistance will go (see attachment for details):
|| EDI GRANTS
|New York City
|| $4 million
| Mount Vernon
|| $2 million
||$ 3 million
|| $1 million
||$ 4 million
||$ 7.3 million
|| $ 2 million
||$ 9.3 million
|| $ 9 million
Senator Daniel Patrick Moynihan said: "These grants and loans are targeted to sound projects in areas that need federal help. I congratulate everyone who worked diligently to win their approval."
Senator Charles E. Schumer said: "I am delighted that so many New York State residents will benefit from this terrific program. The Economic Development Initiative allows communities to foster economic development activities. I look forward to continuing to work with the Department of Housing and Urban Development to bring in the resources that lift up New Yorkers."
Cuomo said the HUD assistance will help create new markets as well as jobs in cities, leading to community revitalization and economic expansion.
The Secretary accompanied President Clinton last week on part of the President's New Markets Tour of economically distressed communities that highlighted the economic potential for investment in underserved markets. The President is proposing tax incentives and investment tools that will make it more attractive for corporate America to search for opportunities in such communities.
A HUD report issued last week titled New Markets: The Untapped Retail Buying Power In America's Inner Cities (was linked to http://www.huduser.org/publications/newmarkets/exesum.html) showed that America's inner city neighborhoods - with $331 billion in annual retail purchasing power - hold major economic potential for retail business growth.
The report said the high population density of cities gives them an advantage for retailers. As an example of the business opportunities created by high population density, the report pointed out: "Harlem's estimated retail demand for food and apparel of $116 million per square mile per year is more than twice the New York metro area rate of $53 million."
The report said residents of New York City had retail purchasing power at $118.7 billion in 1998. However, the report found that the difference between households' retail buying power and total retail sales in New York City - the retail gap - was $37.1 billion, or almost one-third (31.2 percent) of total retail purchasing power, notwithstanding the world-famous shopping districts of New York City.
The two major findings of the HUD report were:
- America's inner city neighborhoods possess enormous retail purchasing power - estimated at $331 billion last year, or one-third of the $1.1 trillion total for the central cities in which those neighborhoods are located. The report suggests that businesses not yet operating in inner cities should not ignore that large domestic market.
- Despite their huge buying power, many of America's inner city communities are "under-retailed," with sales that fall significantly short of residents' retail purchasing power. The report makes clear that not only is there a large inner city consumer market worth competing for, but there is also room for expansion of that market.
DESCRIPTION OF $51.6 MILLION IN HUD ASSISTANCE TO
NEW YORK CITY, MOUNT VERNON, YONKERS AND BUFFALO
NEW YORK CITYA $2 million EDI grant and a $13.6 million Loan Guarantee to develop and expand the Women's Interart Center in Manhattan. The project will create 493 full-time jobs and provide the community with high-quality rehearsal space and a cultural complex for New York's art and entertainment community. The Center will work with the Federation Employment and Guidance Service to recruit and hire welfare recipients and low-to-moderate income residents. More than $3.3 million in private and state funds have been leveraged for development of the Center.
A $2 million EDI grant and an $8.7 million Loan Guarantee to develop 39,000 square-feet of commercial and retail space, construct 165 homes to be sold to homeowners, and create 238 permanent jobs in an economically distressed commercial corridor in the South Bronx Empowerment Zone. In partnership with the New York City Housing Partnership, the project will be developed through the City Department of Housing Preservation and Development's Alliance for Neighborhood Commerce and Homeownership Revitalization Program.
MOUNT VERNONA $2 million EDI grant and a $10 million Loan Guarantee to fund development of the Mount Vernon Hotel, as part of the first phase of a three-phased revitalization plan for the city's south side. The plans for the $50 million hotel include 300 guest rooms, a ballroom with seating for up to 1,000 people, a health club, a restaurant, a telecommunications facility, and parking for 300 cars. The $10 million in Loan Guarantees will leverage an additional $10 million in federal, state and local funds, as well as $30 million in private sector funds for Phase I. The project will create an estimated 600 jobs
YONKERSA $1 million EDI grant to assist in the development of the Station Plaza project and a $3 million Loan Guarantee that will capitalize an Economic Development Loan Fund to support business projects in the downtown waterfront district. The project will create 200 jobs in the heart of the city's Community Development Block Grant target area. Station Plaza will build on the city's master plan and will be the first major waterfront development on the Hudson River since its designation as an American Heritage River.
BUFFALOA $2 million EDI grant and a $7.3 million Loan Guarantee to assist in developing a major mixed-use development, including construction of a 350,000 square-foot building with office and retail space. The office tower will be constructed as the National Operations Center of Adelphia Cable, the fifth largest cable company in the nation. This will help retain 350 jobs and create 950 full time jobs. The retail-entertainment space will enhance the existing public-private investments in the Inner Harbor and the Marine Midland Sports Arena and generate an additional 270 jobs. Buffalo's Enterprise Community residents will be given hiring preference for both the office and retail jobs, and Adelphia will participate in a welfare-to-work program. The EDI grant and Section 108 loan will provide the stimulus for the development team to invest $41 million in private funds into the project.
Content Archived: January 20, 2009