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Economic Development |
Project 1: Sustainable Industrial Development
USC Lead: USC
Center for Economic Development
Community Partner: The Community
Redevelopment Agency of the City of Los Angeles (CRA)
Project Description:
This project will assist business and property owners within the 20 block industrial area bounded by Olympic Boulevard on the north, Pico Boulevard on the south, Soto Street on the west and Grande Vista Street on the east. This community has asked for economic development assistance so: the business improvement district it is forming will address its needs; CRA-planned improvements will reflect community concerns; and a proposed new industrial park will improve area property values. This project will offer:
* Education and information dissemination to businesses
and landowners within the project area regarding formation of a Business
Improvement District (BID);
* Consensus-building training to BID Formation Committee members and the
Industrial Business Watch Group;
* Assistance designing a concept for security improvements in the area; and
* Assistance in concept design for a proposed industrial park.
In 1992, a survey of businesses in the project area revealed that location is the primary reason for remaining in this Boyle Heights neighborhood. However, over 60% of the businesses believe the future outlook is declining. Issues and concerns of the local community at that time included: the age of the industrial base; lack of parking; substandard truck access or turn around space; poor street lighting; lack of landscaping; trash dumping; issues related to the area's homeless population; crime and graffiti; environmental issues including ground contamination; loss of local industries and jobs due to high property taxes; increasing workman compensation claims and expenses; city fees; relocation of the furniture industry to Mexicali; and lack of incentives to attract new industry.
The Industrial Business Watch Group, a voluntary membership group, has been working on addressing the economic development issues in the target area for this project. It has invited USC's participation in educating and informing fellow business owners about the opportunities of forming a Business Improvement District.
The following agencies recognize the economic development need for this project:
* The City of Los Angeles Consolidated Plan 2000-2003,
First Year Action Plan 2000 - 2001 is funding a Targeted Neighborhoods
Initiative in Boyle Heights;
* The Community Redevelopment Agency of the City of Los Angeles includes the
target area in its Adelante Eastside Project Area;
* The State of California includes the area in the State Enterprise Zone; and
* The Federal Government includes the target area in the Los Angeles Empowerment
Zone.
The TNI concentrates CDBG funds in twelve declining Los Angeles neighborhoods to increase private investment and revitalize neighborhoods. Stakeholders guide the TNI, for example, local TNI neighborhood groups determine project activities. During its third year of operation, the Boyle Heights TNI has been concentrating on the commercial districts in Boyle Heights.
Project 2: One-Stop,
Web-Based Economic Development Resource Center
USC Lead: USC Center for Economic
Development
Community Partner: South Los Angeles Economic Alliance (the Alliance)
For Information on How To Prepare Federal Grant Application, Please Click Here.
For Information on How to Apply For SBA Loans, Please Click Here.
Project Description:
The South Los Angeles Economic Alliance is a confederation of community-based organizations serving the economic development needs of South-Central Los Angeles. Alliance members have requested basic training in preparing grant and loan applications, and assistance identifying sources of more in-depth training. For this project, the Center will design and develop Internet and CD-ROM-based resources enabling residents of the target area to access funding opportunities. Specific modules will train users to prepare grant and loan applications, and provide 2000 Census data economic indicators describing the EZ/EC Zone to use in grant applications. This project builds on work the Center has already completed building a web site linking the community to economic development resources.
Project 3:
Micro-enterprise Training and Financing Initiative
USC Lead: USC-
Central Los Angeles Small Business Development Center
Community Partner: California Federal Bank
Project Description:
The objective of this program is to provide low-income individuals with opportunities to stabilize and increase their earning capacity through small business training and financing. The Micro-enterprise Training and Financing Initiative will provide business training to low-income individuals interested in starting businesses. Micro-loans up to $10,000 in investment capital will be available based on the quality of business plans. This project will assist new, low-income entrepreneurs by providing outreach, training, technical assistance, and start-up capital (provided by California Federal Bank). There will be three classes training 75 entrepreneurs during the three project years.
Following are the major project tasks:
* Extensive outreach to grassroots-level groups like
the Brotherhood Crusade's African-American Unity Center, Watts Labor Community
Action Committee and other Community-Based Organizations with which Small
Business Development Center has working relationships.
* Assessing the viability of basic business ideas and applicants' suitability
for inclusion in the training program.
* Providing FastTrac Entrepreneurship training to selected applicants over a
seven-week period.
* Working with participants to complete feasibility studies of proposed
ventures.
At the end of the class, and upon submission of completed feasibility studies, Small Business Development Center will refer the most realistic and viable plans to a judging panel for consideration. Participants whose plans make the first "cut" will then be invited to "pitch" their plans to this panel. Based upon the quality of the plan, the judging panel will make recommendations to California Federal Bank regarding which candidates should be funded. USC Small Business Development Center will provide borrowers with post-loan technical assistance in specific areas such as product sourcing and marketing, management and operations, cash management, etc.
Project 4:
Asset Building for Empowerment Zone and Enterprise Community Residents
USC Lead: Small
Business Development Center
Project Description:
This project will determine the best approach for establishing a community-based program offering Individual Development Accounts (IDAs) to provide an opportunity for savings and asset-building in the EZ/EC Zone.
Individual Development Accounts (IDAs) are matched, tax-advantaged savings accounts for low-income people. They provide individuals with incentives to save by matching their deposits 2:1. Public and private sector contributions usually funded the program matches. Participants may withdraw accumulated matches only for "approved" uses, such as home purchase, home repair, micro-enterprise, retirement, or post-secondary education. Savers may withdraw their own accumulated contributions for any purpose.
IDAs are very similar to Roth IRAs, but they include matches for the poor. Roth IRAs are savings accounts in which after-tax dollars accumulate interest tax-free and are available to the account owner for use in retirement, home purchase, or post-secondary education. Poor people are in low or negative tax brackets, so the tax incentives for IRAs are not strong, hence the matches. Also, the matches help savings accumulate sufficiently and quickly enough so that savers are less likely to become discouraged or withdraw money for some short-term use.
The major tasks of the proposed asset-building project are:
* Conducting research to learn about the savings
behavior of residents in the Empowerment Zone;
* Educating and interacting with community-based organization leaders to
establish IDAs through various organizations; and
* Initiating an IDA program at one community-based organization.
The project will include a survey of at least 100 low-income residents to gain insight into their savings behavior. BEN staff will also conduct one-on-one interviews with the chief executives and staff of at least ten community-based organizations to obtain feedback on setting-up an IDA program within the Empowerment Zone. Finally, BEN will establish an alliance with one community-based organization interested in starting such a program, and provide technical assistance in program design and implementation.