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T H E U P P E R M A N H A T T A N E M P O W E R M E N T Z O N E

Creating Economic Opportunities for Upper Manhattan

R E P O R T O N O P E R A T I O N S1 9 9 6 – 1 9 9 9

An Alliance for Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Chairman’s and President’s Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Summary of Investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

The Upside of Manhattan—Is Above 96th Street . . . . . . . . . . . . . . . . . . . . . . . . 10

The Path to Sustainable Economic Expansion . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Upper Manhattan at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Auditor’s Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Benefits of Investing in the Empowerment Zone . . . . . . . . . . . . . . . . . . . . . . . . 34

Information About UMEZ Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

UMEZ Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

UMEZ and BRISC Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Board of Directors and Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

T A B L E O F C O N T E N T S

2.

3.

A L L I A N C E F O R G R O W T H

AN ALLIANCE FOR GROWTH

After a community-based effort to create a strategic plan for economic

development, New York City was awarded one of six coveted urban

Empowerment Zone designations in 1993, following legislation introduced in

Congress by Representative Charles B. Rangel. The ten-year designation was

accompanied by a federal grant of $100 million and $250 million in federal tax

credits. New York Governor George E. Pataki and New York City Mayor

Rudolph W. Giuliani matched the federal commitment, creating a total public

investment pool of $300 million, the largest in the nation.

Upper Manhattan comprises 83% of the New York Empowerment Zone;

the balance is in the South Bronx. The Upper Manhattan Empowerment Zone

Development Corporation (“UMEZ”) is a private, not-for-profit organization

charged with igniting the economies of Central, East and West Harlem,

Washington Heights and Inwood. UMEZ leverages federal, state and city

Elected and appointed officials at the January 19, 1996 signing of the New York EmpowermentZone’s Memorandum of Understanding. (L to r) Randy Daniels, Empire State DevelopmentCorporation (ESDC); Former Deputy Mayor Fran Reiter; Charles Gargano, Chairman,ESDC; Governor George Pataki; U.S. Representative Charles Rangel; Mayor RudolphGiuliani; HUD Secretary Andrew Cuomo; Manhattan Borough President C. Virginia Fields;and Councilmember Guillermo Linares.

4. resources to facilitate private investments that expand economic activity,

enhance the ability of local residents, businesses and institutions to benefit

from EZ economic opportunities, and improve the quality of life for residents,

employees and visitors.

Three years ago, the Upper Manhattan Empowerment Zone embarked on

an ambitious phase as it began to translate the community’s vision for a

revitalized community into a working strategy for investment. In moving from

drawing board to reality, we aimed high: to reclaim Upper Manhattan’s mantle

as the Urban Capital of the World. Today, momentum toward achieving that

goal is unmistakable.

A L L I A N C E F O R G R O W T H

5.

S T A T E M E N T F R O M

T H E C H A I R M A N A N D T H E P R E S I D E N T

UPPER MANHATTAN, THE FUTURE’S LOOKING UP!

Despite its status as an international icon, Harlem and much of Upper

Manhattan, in 1996, bore evidence of three difficult decades. Like most

inner cities around the nation, our community has been scarred by the

transition from an industrial to a service economy. From the early 1960’s to the

late 1980’s Upper Manhattan experienced unprecedented levels of de-popula-

tion, concentrated poverty and crime. As businesses followed the middle class

migration to the suburbs, jobs, basic shopping amenities, and private invest-

ment in housing and other real estate declined precipitously.

As the Board of Directors and staff faced the monumental challenge of

turning around the community, we analyzed the competitive strength and

weaknesses of the local economy in relation to the New York region.

Upper Manhattan’s largely residential economy is simply not generating

enough jobs for its residents, who are not equipped to take advantage of jobs

throughout the region. Upper Manhattan’s highest economic potential lies in

building on its distinctive assets, mobilizing private capital, and achieving

greater integration with one of the world’s most powerful economic engines—

New York City. A tall order? You bet. But there’s ample precedent. New York’s

public and private sectors have mobilized to create success stories in Times

Square, Lower Manhattan, Downtown Brooklyn and Jamaica Center. Now is

the time for Upper Manhattan.

Richard D. Parsons, Chairman Terry C. Lane, President

Upper Manhattan’spotential lies inbuilding on itsdistinctive assets,mobilizing privatecapital, andachieving greaterintegration with apowerful economicengine—New YorkCity.

6. In order to improve the quality of life in Upper Manhattan, we must first

break down the barriers that prevent access to capital and jobs. The UMEZ

action plan’s first focus is recruiting businesses in high growth industries

likely to create the greatest number of jobs for EZ residents. A staggering

12,000 Empowerment Zone residents need jobs to bridge the gap between

unemployment rates in the Empowerment Zone and New York City. If all of

Upper Manhattan were included, the gap grows to 23,000 residents!

Second, we must prepare small business owners, who make up nearly

75% of commercial businesses in Upper Manhattan, for competition in the 21st

Century. Small businesses are important contributors to the community and

the economy, and a critical element of the expansion and retention of local

wealth.

Third, we must invest in our neighborhood’s core infrastructure—its

people, institutions and physical infrastructure. Upper Manhattan is more than

a collection of commercial activities; it is made up of many distinct neighbor-

hoods, families and the more than 1,000 institutions that serve them.

The early results are encouraging. Our funding commitment of over $115

million is expected to leverage $2.64 from private and other sources for every

$1.00 of UMEZ funds. These investments are expected to generate over 4,200

direct jobs, nearly 1,000 construction jobs and countless others through

increased commercial activity. The impact on Upper Manhattan residents,

businesses and institutions is already apparent. Our investment in Harlem

USA, a 275,000 square foot retail complex, has shattered the notion that

mainstream retail cannot succeed in the inner city. Both Harlem USA and

Pathmark, a 51,000 square foot supermarket, have altered the face of 125th

Street forever, expanding quality goods and services and providing over 800

jobs. Additional retail and entertainment venues are on the drawing board and

will soon cement 125th Street’s status as a regional destination for shopping.

And new corporate partners are investing in our residents and commu-

nity. Consider Broadway Video. A UMEZ loan guarantee helped Broadway

Video, owned by Lorne Michaels, producer of Saturday Night Live and a leader

Our fundingcommitment of$115 million isexpected toleverage $2.64 fromprivate and othersources for every$1.00 of UMEZfunds.



7.in entertainment and video production, to identify and establish a second

facility in West Harlem. We introduced them to STRIVE, a nationally ac-

claimed workforce development provider based in East Harlem. Kyschia

Frederick, an East Harlem resident who lost her job after two years of

employment as a receptionist, is one of 12 initial employees of Broadway

Video’s uptown facility. She was recently promoted as part of its management

team. You’ll read more of the many heartwarming stories we could share

through the pages of this report.

We’ve had lots of help along the way. First, the UMEZ Board of

Directors, made up of residents and other citywide leaders, has made a

tremendous investment of time and commitment. Every UMEZ-approved

initiative is vetted through committees and Board members interview each

applicant.

Among the members who are no longer with us is Eugene McCabe, our

vice chairman, and former president of North General Hospital who died on

September 30, 1998. We miss him but are thankful for his leadership, which

is evident throughout our community and beyond.

Second, we have received an outpouring of support from the city’s private

sector, from consulting firms to law firms to advertising agencies. And last, but

not least, we are grateful for support from our partners in government: Vice

President Al Gore, HUD Secretary Andrew Cuomo, Governor George Pataki

and Mayor Rudolph Giuliani and their respective staffs.

While there is much more to be done, we are proud of our early

accomplishments together and anticipate more successes going forward. We

hope you’ll agree that for Upper Manhattan, The Future’s Looking Up!

The UMEZ Board ofDirectors is made upof residents andother citywideleaders.

Richard D. ParsonsChairman

Terry C. LanePresident



8. In fiscal years 1996–1999, the UMEZ Board approved 56 initiatives. These initia-

tives represent an Empowerment Zone commitment of $115 million and together

create or retain 4,278 jobs.

Our investments were made in the following priority areas:

S U M M A R Y O F I N V E S T M E N T S

EZ Initiatives 1996–1999Business Recruitment and Retention $42,238,940Tourism & Cultural Industry Development $38,044,880

Small Business Development $18,222,813

Workforce Development & Human Capital Development $16,221,527

Total $ 114,728,160

Summary of Investments 1996–1999

Small Business Development

16%

Business Recruitment &

Retention

37%

Workforce & Human Capital

Development

14%

Tourism & Cultural Industry

Development

33%

9.

All

36%

CB #9

5%CB #10

25%

CB #11

25%

CB #12

9%

0

50

100

150

200

250

300

350

400

EZ Investments Other Funds Total Cost

S U M M A R Y O F I N V E S T M E N T S

In addition to the above investments, we have leveraged another $303 million in

private and other public resources. This means that for every EZ dollar we leveraged

$2.64 dollars in other funds.

Breakdown of EZ Projects by Community Board

A total of 56 EZ projects were funded.

Every EZ Dollar Leveraged $2.64 in Other Funds

Mill

ions

of

dolla

rs

10.

T H E U P S I D E O F M A N H A T T A N

THE UPSIDE OF MANHATTAN…IS NORTH OF 96TH STREET

Upper Manhattan has many advantages to call upon. First, booming

national and city economies. In 1999 New York City recovered 97% of

the private sector jobs lost in the 1989-1992 recession. Second, thanks to the

New York City Police Department, local residents and advocates, crime has

fallen dramatically—more so in Upper Manhattan than the City as a whole.

Third, following the tremendous investment of community development

organizations, led by the faith-based community, with the support of tremen-

dous public and private investments, housing is being renovated, drawing

immigrants and others to the community. This re-population of Upper Manhat-

tan reversed a devastating three-decade trend. Finally, businesses led by

retailers, are recognizing these trends as they seek new markets in an intensely

competitive era and saturated suburban markets. Professor Michael Porter of

Harvard Business School estimates the United States inner city retail market

to be $85 billion—larger than Mexico!

Harlem’s yesterday was glittering, but its future is brighter. And Upper

Manhattan is Harlem and so much more, encompassing East, Central and West

Harlem, Washington Heights and Inwood. One of the last untapped areas of New

York City, Upper Manhattan is poised for explosive growth. Among its rich assets are:

Over 520,000 residents who live within just 7.2 square miles. On a stand-

alone basis, Upper Manhattan would be America’s 22nd most popular city—

larger than Seattle. And for the first time in decades the area’s population is

growing, and at rates exceeding New York City overall. This growth is fueled

by immigration and housing redevelopment. Our residents also represent an

underutilized labor force, of which more than a quarter is bilingual.

World-class institutions in education and health. Upper Manhattan

counts Columbia University, City College, Boricua College and Yeshiva

University among its 27 colleges and universities. The area’s vibrant health

care cluster comprises six major hospitals, including New York Presbyterian

Hospital and NYU/Mount Sinai Medical Center. Apart from being first-class

centers of research and education, these institutions are part of two dynamic

One of the lastuntapped areas ofNew York City,Upper Manhattan ispoised for explosivegrowth.

11.citywide business clusters, generating $4 billion in annual spending and significant

employment.

$2.5 billion in retail purchasing power.

Upper Manhattan’s dense consumer market

represents a significant market opportunity.

First, as many as 70% of local residents shop

outside the community due to limited avail-

ability of high quality goods and services—

an estimated $1 billion in retail sales lost to

the community. This is even more evident

when added to spending by tourists and

local institutions. Second, the community’s youthful and ethnically diverse

consumers are acknowledged innovators who set national trends in fashion,

music and the arts, making Upper Manhattan an attractive window into

America’s future retail markets today.

A rich historical legacy and cultural institutions that keep the legacy alive.

Arguably the most fabled African-American community worldwide, and a

community increasingly recognized for its diverse Latino cultures, Upper

Manhattan boasts unparalleled historical and cultural assets. Hundreds of

thousands of city, national and international tourists visit the community’s rich

cultural attractions, houses of worship and architectural treasures and seek jazz

and other entertainment venues. Tourists represent a rich, yet largely untapped

source of revenue for uptown businesses and a link to a citywide business

cluster which is booming globally.

Location. Location. Location. A “gateway” to one of the world’s most

vibrant and densely concentrated markets, Upper Manhattan is a hub of New

York City’s excellent public transportation infrastructure. Proximate to key

highways, and commuter and local trains and buses that lead south to midtown

and north to suburban communities, Upper Manhattan is a clear advantage for

industries that require time sensitive movement of people and goods to regional

destinations.


ColumbiaUniversity isjust one ofmany institu-tions of higherlearninglocated inHarlem.

12.

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Creating jobs is ourfirst priority. Weaccomplish this bygrowing smallbusinesses andrecruitingbusinesses thatbuild on UpperManhattan’s assets.

Upper Manhattan’s Assets Are Accompanied By Significant, YetSurmountable Challenges

Upper Manhattan has all the ingredients to become the Urban Capital of

the World: world-class universities and hospitals, cultural attractions

and location in the heart of the most exciting city in the world. Yet, consistent

with inner cities across the nation, the transition from an industrial to service

economy, has produced a number of structural dislocations. While our re-

sources alone cannot address all of our community’s challenges, we are

working in concert to surmount the principal challenges limiting economic

opportunities for our residents in four significant areas.

Unemployment

The most glaring result of the three decades between the end of the 1950’s

and the end of the 1980’s is stubborn and increasingly concentrated unemploy-

ment and poverty—seemingly unconnected to city and national business

cycles. With an unemployment rate of 18.2% and more than twice the citywide

proportion of residents receiving public assistance, an estimated 12,000 jobs

deficit exists in EZ census tracts alone. This remains true despite a 1990’s

economy increasingly constrained by the lack of qualified employees. Why?

Imbalanced Economy

In sum, Upper Manhattan’s economy is not generating sufficient jobs for

its residents. Approximately 43% of jobs in Upper Manhattan are in the

government and non-profit sectors, compared to 26.9% in New York City as a

whole. As these sectors decline, the lack of economic diversity and depen-

dence on the public sector compounds the magnitude of the EZ’s employment

challenge. Additionally, one-third of all jobs in Upper Manhattan are concen-

trated in seven large non-profit hospitals and one university, while less than

10% of these jobs are held by Empowerment Zone residents. Significant

commercial opportunities created by these institutions are not captured locally.


13.An important corollary is the relative weakness of Upper Manhattan’s

private sector. Only 8 companies have 100 or more employees and 75% of all

for-profit companies have less than 5 employees. The vast majority of these

companies serve the local residential community only, exporting limited

goods and services beyond its borders. These businesses are not connected to

the “new economy”, e.g., information and technology based industries, and are

inherently low growth, low profitability opportunities with limited job and

wealth creation possibilities.

Skills Gap

In addition, 75% of jobs created are not locally captured by residents.

And residents are ill prepared to compete in the larger job marketplace. While

high school graduates hold 80% of all New York City jobs, 51% of Upper

Manhattan residents do not have a high school diploma.

Unsafe Image

New York City’s crime reduction strategies have produced a startling

boost in its economy and its image that has been recognized across the nation,

and crime has fallen faster in Upper Manhattan than the City as a whole. Yet,

despite tremendous gains, negative perceptions linger due to the lag between

reality and perception, particularly in America’s number one media market and

the signals created by scarred and dilapidated blocks.


14.

UMEZ investmentsare designed toexpand sustainableeconomic activity,enhance the abilityof local residents,businesses andcommunityinstitutions tobenefit fromEmpowerment Zoneopportunities andimprove the qualityof life in UpperManhattan.

T H E P A T H T O S U S T A I N A B L E

E C O N O M I C E X P A N S I O N

THE PATH TO SUSTAINABLE ECONOMIC EXPANSION

To convert our community assets into sustainable economic expansion,

UMEZ adopted an integrated investment strategy. Among our fundamen-

tal premises: Upper Manhattan’s highest economic potential lies in building on

its distinctive assets, mobilizing private capital, and achieving greater

integration with one of the world’s most powerful economic

engines—New York City.

Business Recruitment

Identifying, targeting and recruiting leading companies

in New York City’s high-growth industries to Upper Manhat-

tan, is a leading component of maximizing job creation for EZ

residents. With the assistance of McKinsey & Company, UMEZ

analyzed a wide range of industries and identified four with the

greatest potential impact on employment and the best “fit” with Upper

Manhattan’s strategic assets. Each represents opportunities to connect to key

regional business clusters, thereby boosting local job creation and providing

opportunities for local businesses to export goods and services beyond the

local market. These industries are:

Tourism and Entertainment. Tourism is booming in New York City,

across the nation and the world. According to the New York Convention and

Visitors Bureau, an estimated 34 million tourists visited New York City in 1998

and generated over 134,200 jobs.

With unparalleled historical and cultural assets, Upper Manhattan is well

positioned to expand the more than 500,000 tourists who visit uptown each

year. A significant opportunity exists to expand the community’s limited

entertainment, eating and shopping venues and to attract larger businesses

such as hotels.

Retail. Pent-up demand for consumer goods and services has been

documented in virtually every retail and service category of an estimated

market opportunity of over $1 billion. This industry provides opportunities for

15.both larger retailers and niche businesses offering distinctive goods.

Health Services. Upper Manhattan’s vibrant healthcare cluster is driven

by six major hospitals. With managed care driving a transformation of the

health services industry, growth opportunities exist in home health care,

doctors’ offices, nursing and other out-patient services, assisted living and

other entrepreneurial ventures.

Business Services. Upper Manhattan’s base of businesses, institutions

and residents is growing, yet it is vastly underserved in areas such as private

security, employment agencies, delivery and warehouse services, and com-

puter related goods and services.


While large employers are critical to increasing employment and expand-

ing availability of efficiently priced goods and services locally, improving the

competitiveness of existing small businesses, as well as increasing business

formation generally, is critical to capture the wealth generated by the

community’s revitalization. Mirroring national trends, very small firms (up to

19 employees) have been the only net job-creators in New York City since the

1989 recession. However, the vast majority of Upper Manhattan’s businesses

are micro businesses in need of capital, technology and technical assistance to

grow and retain greater levels of wealth. An urgent priority is to diversify the

base of businesses beyond those serving primarily local residential markets,

and support those in high growth emerging industries capable of exporting

goods and services to the broader New York region.

Workforce and Infrastructure Development

Jobs and entrepreneurial opportunities are two hallmarks of successful

communities. However, other critical investments are required to create the

baseline conditions that attract businesses and provide a high quality of life for

residents, workers and visitors. Businesses need workers with 21st Century

skills. Workers need access to support services to enable their participation in

the city’s competitive workforce. Residents, workers and visitors need a



Improving thecompetitiveness ofsmall businesses iscritical to capturingwealth locally.

Businesses needworkers with 21stCentury skills.

16. quality physical environment. And many of the community’s 1,000 non-profit

institutions need to be strengthened through technical skills development,

technology and other resources if they are to continue to lead and sustain

Upper Manhattan’s transition to a new economy.

Marketing and Image Campaign

Myths and stereotypes die-hard. The Bozell Sawyer Miller Group, on a

pro bono basis, conducted research among leaders of key business sectors and

found that they lack accurate information about our community. Many believe

that Upper Manhattan is isolated and has little commercial activity. To

successfully recruit businesses and others to our community, a proactive

marketing campaign must be launched to ensure that accurate information and

messages reach desired audiences.



To successfullyrecruit businessesand others to ourcommunity, aproactive marketingcampaign must belaunched to ensurethat accurateinformation andmessages reachdesired audiences.

17.Business Recruitment and Retention



Attracting leading companies in high-growth industries is a critical

component of re-connecting Upper Manhattan to New York City’s

larger economic engine. Recruiting companies in growing industries creates

jobs in volume, attracts private investment and creates opportunities to export

goods and services beyond Upper Manhattan’s geographic boundaries.

Our strategy is to utilize our capital and federal and other public tax

incentives to energize new markets, making the lead investments required to

attract mainstream capital. We began with retail and evidence of follow up

investments is abundant (see below). We are making similar investments in the

development of quality office space and lodging—including our largest and

most recent investment in the development of a 300-room, 4-star hotel in

Washington Heights, operated by Doubletree Hotels.

The HarlemUSA site beforethe ground-breaking in1997.

Harlem USA: Establishing the Viability of Large Scale Retail on 125th Street

We provided a subordinated loan of $11.2 million, or 17% of the total

financing for Harlem USA, a $65 million, 275,000 square foot complex, that

will create 500 permanent jobs and increase the availability of efficiently

priced, quality goods and services from national retailers. Chase Manhattan

Bank is the lead lender, providing a construction loan of $47 million. The

18. developers, Grid Properties, The Gotham Organization, and Commonwealth

Local Development Corporation, a local non-profit agency that is also the

complex’s land owner, contributed the balance of 10% in equity.

The complex, tenanted by Disney Stores, Magic Johnson Theatres, HMV,

Old Navy and other quality retailers, is expected to open this Spring.



Right: HarlemUSA underconstruction in1999.

Below: Artist’srendering ofthe future mall.

19.



Broadway Video: Recruiting New Technology Jobs to Upper Manhattan

UMEZ assisted Broadway Video, an entertainment and video duplication

company located in midtown, to expand by helping them to locate a site in West

Harlem. We guaranteed 50% of a $900,000 loan required to build the new

facility. Citibank provided the loan. We also introduced Broadway Video to

STRIVE, a nationally acclaimed job training agency, to ensure that they would

have access to well-trained

local residents. They have

already created 16 of the

20 jobs projected. Ten of

the jobs, or 63%, are filled

by local residents. Three

of the STRIVE graduates

were recently promoted to

positions offering greater

responsibility and profes-

sional opportunity. These

jobs are in the fast growing

media industry and pay

more than twice the mini-

mum wage. In addition,

Broadway Video has made

a donation to the City Parks

Foundation to help fund the

greening of West Harlem.

KyschiaFrederick, anEast Harlemresident, wasrecentlypromoted tothe manage-ment team atBroadwayVideo.

20. Small Business Development



Case Study: Verry Velma’s Party ShopVelma Saunders opened Verry Velma’s Party Shop at 139 West 116th Street

in December 1997 after getting her start at Mart 125. The shop offers greeting

cards, toys, gifts, personalized invitations, balloons, and other items for

parties and special occasions. Ms. Saunders also provides event coordina-

tion services. Her $25,000 BRISC Investment Fund loan has been used to

purchase equipment, inventory, leasehold improvements and to provide

working capital. Velma has also participated in BRISC’s Financial Advisory

Services and Commercial Information Technology programs.

21.

Capital Shop” for businesses to obtain capi-

tal, technology and technical assistance. To

date, BRISC has received over 6,000 visits

and hosted more than 50 business seminars.

BRISC operates an investment fund

for small businesses that need loans in

amounts ranging from $25,000–$200,000.

It also actively aids businesses in obtaining

bank loans and SBA loan guarantees, lever-

aging further resources for the community.

BRISC also operates as a technical

assistance intermediary by providing assis-

tance to small business owners interested in

expanding or relocating, as well as resi-

dents who want to start new businesses. For

example, through the SBA’s Business Infor-

mation Center, community residents can

access essential business information using

the latest in technology and telecommuni-

cations equipment, as well as a general

business information library.

BRISC is also a funder of small busi-

ness intermediaries in the community. To

speed the transition of more small busi-

nesses to obtain mainstream capital, BRISC

offers targeted pro bono legal assistance by

the city’s major law firms. In addition,

BRISC, through its Financial Accounting

Service Program, matches a business

owner’s costs to engage a certified public


Bringing small businesses into the 21st

Century with a “tool kit” of capital,

technology and first rate business and tech-

nical advice is critical to creating and re-

taining local wealth. In addition to direct

investments in small businesses, UMEZ is

making targeted investments in key local

service industries—initially, restaurants and

dry cleaners—as well as vendors markets

and youth organizations, both of which are

incubating new businesses in the commu-

nity. Importantly, UMEZ is investing in

intermediaries who can provide the “hands

on” assistance that business owners and

future entrepreneurs need to raise the com-

petitive level of their businesses. These in-

stitutions are a critical “bridge” to main-

stream capital and expert advice and are

therefore key to sustaining the community’s

economic momentum.

Business Resource & Investment Service

Center (BRISC)

The first and most comprehensive of

UMEZ’s small business initiatives is the

Business Resource and Investment Service

Center. As an initiative of the Upper Man-

hattan Empowerment Zone and the U.S.

Small Business Administration (SBA),

BRISC is Upper Manhattan’s “One Stop



BRISC has receivedover 6,000 visitsand hosted morethan 50 businessseminars.

22. accountant to develop solid record-keeping practices and initial financial

statements. Similarly, through the Commercial Information and Technology

Initiative, BRISC provides 50% of the cost of a first rate technology package

including assessment, equipment, software and training to area small businesses.

Finally, strong intermediaries to support local businesses and assist in

developing and maintaining quality commercial corridors is required to

sustain economic momentum. That’s why we created the Commercial Revital-

ization Initiative. This initiative provides micro loan pools for merchants on

key commercial corridors—116th, 125th, 181st, 207th Streets, Broadway and

Amsterdam Avenue, to upgrade local stores. In addition, administrative

support is provided to key intermediaries such as merchants associations and

Business Improvement Districts, so that they can provide day-to-day support to

merchants.

Neighborhood Trust Federal Credit Union

UMEZ funded a start-up community development financial institution

serving Washington Heights, a community vastly underserved by mainstream

financial institutions. Credit Where Credit is Due, a local nonprofit agency,

launched Neighborhood Trust Federal Credit Union, which has attracted over

$3 million and 1,300 members in only 2 years. Two-thirds of these members

did not have a bank account prior to joining the credit union. More importantly,

40% of Neighborhood Trust’s 375 loans totaling $900,000, have been made to

small business owners. Our investment of

$296,250 was part of the $1.2 million required to

launch the credit union. Our funds were used to

renovate the facility, an abandoned bank in the

George Washington Bus Terminal, and provide

capitalization required to make loans and finan-

cial literacy training for depositors. UMEZ re-

cently approved a second investment to assist

Credit Where Credit is Due to launch a second

branch in West Harlem.



After just twoyears, CreditWhere Credit isDue alreadyhas over 1,300members.

23.Small Business Development



Case Study: Carlos Hidalgo—A Neighborhood Trust Federal CreditUnion Success StoryCarlos Hidalgo, a Washington Heights resident, plays several different

musical instruments. He is also an entrepreneur. Three years ago, he

opened Live Records Recording Studio in Washington Heights to capture

on tape the up-and-coming young talent in salsa, merengue, bachata and

Latin rock. A micro-loan from the Neighborhood Trust Federal Credit

Union in Washington Heights made it all possible, helping him to acquire

state-of-the-art recording equipment. A UMEZ investment enabled Credit

Where Credit Is Due, Inc. to establish the credit union, increasing capital

availability to local residents in Washington Heights and Inwood. “This

studio is a good way to get young people in the community involved in

the arts,” said Carlos.

24. Workforce Development and Human Capital Initiatives

We identify selected investments in

people, institutions and places—

those investments most likely to connect

residents to the opportunities now being

created in our community. A healthy busi-

ness environment and a superior quality of

life require that we address the barriers that

prevent access to opportunities for local

residents and businesses.

People

We work in concert with others

to assist employers and prospective

employees close the gap of opportu-

nity by providing access to informa-

tion, critical support services, and

closing skills gaps. Our lead invest-

ment is creating three EZ Career Cen-

ters, managed by experienced local

workforce development providers,

and funding other providers in tar-

geted industries. This $6 million ini-

tiative is expected to train and place

2000 local residents over the next

three years. We are also making in-

vestments to train family childcare

providers, creating technology cen-

ters for public school students, their

teachers and community residents, expanding

literacy among third-grade students, and to

expanding health care delivery by primary

care providers.

Institutions

Community building requires strong

local institutions. They are the vital link to

residents and their ability to translate the

standards required in the new economy.

Recognizing the critical role these in-

stitutions play in the fabric of community

life, UMEZ is investing resources in capac-

ity building to strengthen these institutions

as they build capacity for the future. As a

first step, we created, with the help of

Barnard/Columbia University and City Col-

lege of New York, a business plan manual

and series of workshops to assist non-profit

organizations and small businesses to de-

velop an important tool for raising funds

from both UMEZ and other funders. We

have also substantially expanded our tech-

nical assistance efforts to include ongoing

business plan/proposal development work-

shops in English and Spanish, scholarships

to managerial and other technical class-

room programs and conferences sponsored

by others, as well as one-on-one expert

advice.

In addition, we are seeding new institu-

tions where required, and commissioning ex-



UMEZbusiness planmanuals.

25.tensive research necessary to economic de-

velopment and institution building.

Places

Upper Manhattan is an historic com-

munity whose architectural treasures

abound. Yet its structures and street aes-

thetic evidence the wear and tear of decades

of disinvestment. This must change if we

are to reclaim our world class status. Yet

many capital investments cannot be made

through mainstream capital due to signifi-

cant gaps between current market values

and costs of the extensive upgrades required.

UMEZ targets these gaps to fill.



Examples of uses of our funds include

creation of an Historic Preservation Fund to

provide low cost loans and, where neces-

sary, grants to upgrade the community’s

significant historic religious and commer-

cial structures. In addition, we are funding

a Mixed-Use Initiative to upgrade struc-

tures which provide vibrant commercial ac-

tivities on the ground floor yet are vacant

above. We are also launching an Adopt-An-

Avenue program to enhance the corridors

that connect major destinations.

St. Martin’sChurch, homeof one of twoCarrillons inNew York City.

26.

UMEZ projects that entertainment and

tourism can generate 4,000–6,000

jobs in Upper Manhattan through 2004 or

up to 50% of our 12,000 total jobs goal.

However, this significant target cannot be

reached without stabilizing and expanding

Upper Manhattan’s core attractions. In rec-

ognition of the critical role that cultural

attractions play in tourism worldwide, the

UMEZ Board recently approved the cre-

ation of a $25 million Cultural Industry

Investment Fund, which will make invest-

ments to increase the competitive advan-

tage of local arts and cultural groups.

By providing a path breaking commit-

ment, UMEZ hopes to draw significant con-

tributions from other major funders to sup-

port stabilization and expansion of existing

large cultural institutions, small and emerg-

ing organizations, as well as locally based

artists. These funds are needed for a range

of purposes including long-term capacity

building, development of earned income

projects such as merchandising and gift

shops, capital projects, programming, mar-

keting and training, and job placement.

In addition to the Cultural Industry

Investment Fund, UMEZ has previously

made grants to individual organizations to

boost specific initiatives such as expansion

of rehearsal and performing space at Aaron

Davis Hall. We also seed expansions, such

as development of the RAICES Archive of

Latin Music and new organizations, such as

the National Museum of Jazz in Harlem.

Pre-development work has begun and these

efforts are expected to yield positive returns

for the community in future years.

Tourism and Cultural Industry Development



Left: Theworld-famousApollo Theater.Right: TheCloistersmuseum, hometo art from theMiddle Ages.Bottom: JumelTerrace.

27.

Our Heritage Tourism Init iat ive ar-

ticulates how each element of our invest-

ment strategy comes together. Tourism is one

of the top five industries in New York City.

UMEZ projects that up to 6,000 jobs can be

created in sectors ranging from cultural in-

stitutions and eating establishments, to lodg-

ing and transportation companies. Beyond

the economic potential, heritage tourism pro-

vides a vehicle through which community building

and civic pride can be fostered by building on the unique

cultural and historic attractions of communities, while preserving

their distinct character. However, while Upper Manhattan is well positioned to

benefit from a booming tourism industry, numerous obstacles prevent the

community from realizing its full economic potential. Among them:

◆ Fragmented and dispersed offerings (e.g., no cluster or critical mass of

attractions)

◆ Lack of critical services and quality facilities, such as information, trans-

portation and security

◆ Image of high crime and perceptions of community mistrust

◆ Unorganized local tourism infrastructure

Given UMEZ’s limited resources, both financial and organizational,

UMEZ is taking a lead role in seeding key elements required to launch and

implement a comprehensive Heritage Tourism Initiative. As both an architect

and catalyst, we hope to build focused “destinations”; link individual destina-

tions by enhancing the critical corridors between them; and support local

organizations to lead the tourism effort long-term. Here’s how.



Case Study: Heritage Tourism

Success inentertainment/tourismrequiresfocusing onthree keysuccess factors.

28. Building Destinations

Visitors are drawn to a “destination”

when a cluster of distinctive activities and

attractions are available in a reasonably

limited geographic area. Our analysis sug-

gested that we initially start on 125th Street

because of its existing attractions, Apollo

Theatre, Studio Museum of Harlem, and

Victoria 5 Theater, accessibility, and world-

wide popularity.

Tourism Friendly Infrastructure

Destinations need to be easily acces-

sible to visitors. This goal requires ameni-

ties including adequate transportation, in-

formation, security and convenient facili-

ties. We have begun to make key catalytic

investments in these areas. For example, we

funded the 125th Street Business Improve-

ment District to expand sanitation services

by purchasing street cleaning machines and

to develop security kiosks on key street

corners. And we are near completion of a

study to de-

velop a state-

of-the-art Visi-

tor Informa-

tion Center

(VIC) Net-

work that will

help residents

and tourists become well oriented to the

attractions of Upper Manhattan. We started

in summer 1999 with Visitor Information

Carts, staffed by local student interns and

coordinated by Union Settlement Associa-

tion. The VIC was funded jointly with the

Office of Manhattan Borough President C.

Virginia Fields.

Significant investments also have been

made in the physical infrastructure of our

community. A Historic Preservation Fund

was created to improve and enhance the

physical condition of some of Manhattan’s

most stunning historical treasures. In addi-

tion, investments in “heritage corridors”

through an Adopt-an-Avenue Program will

begin with streetscape enhancements to

Lenox Avenue, one of Harlem’s premier

tourist corridors, and one that intersects two

historic districts. In addition to new street

lamps, benches, directional signage and

plantings, these corridors will feature trib-

utes to some of the community’s many he-

roes, providing an educational resource to

residents and visitors alike. The Cityscape

Institute, a citywide non-profit dedicated to

improving the city’s environment, is spear-

heading these improvements. UMEZ is

funding two local organizations to partici-

pate in and maintain these improvements

over time: the Mount Morris Park Commu-



Our UptownAmbassadorsprovide visitorswith informa-tion on theplaces to goand sites tosee.

29.nity Improvement Association and the Har-

lem Gateway Committee.

Finally, we hope that our $25 million

investment in Washington Heights Plaza for

a planned 300-room Doubletree Hotel at

West 165th and Fort Washington Avenue,

will create a new lodging market in Upper

Manhattan, drawing further investment,

while serving the visitor and resident popu-

lation in this dynamic community.

Integration with New York City’s

Entertainment/Tourism Industry

Upper Manhattan’s tourism industry

can benefit greatly from the significant tour-

ism infrastructure that already exists in New

York City. To do so, it must connect with

key industry players through marketing/

advertising and development of other tour-

ism resources. Driving this process takes

full time leadership and resources. Yet no

one entity is responsible for doing so in

Upper Manhattan—unlike the city’s Con-

vention and Visitors Bureau (recently re-

named New York & Co.) downtown.

As such, UMEZ recently approved a

seed investment for the creation of a new

institution to coordinate tourism in the fu-

ture. The Tourism Advisory Council—a

concept borrowed from the successful model

in Charleston, South Carolina—will be a

representative body of residents, businesses

in each of our community’s neighborhoods,

tourism industry professionals as well as

the city at large. The Council will focus on



addressing the expectations of local resi-

dents while balancing the economic and

cultural objectives of developing a strong

local tourism industry.

UMEZ commissioned a Tourism

Market Research Study to capture, for the

first time, trends in tourist demographics,

interests and spending impact on local

businesses and attractions. The results will

assist the community in devising strate-

gies to expand its attractions and pinpoint

critical markets to target expansion of

tourist visits. In the summer of 1998, we

launched a modest Marketing and Promo-

tions effort to help increase awareness and

visitation at local restaurants and cultural

venues. This successful effort will be repeated.

El Museo delBarrio collects,preserves,exhibits andpromotes theartisticheritage ofPuerto Ricansand LatinAmericansprimarily in theUnited States.

30. UPPER MANHATTAN AT A GLANCE

Area Description: 7.2 miles bounded on the east by the East River; onthe west by the Hudson River; on the south by East96th Street and West 110th Street; and on the northby 222nd Street. The EZ boundaries are a subset ofUpper Manhattan.

Land Use: The area is largely residential with such usescomprising 59.5% of all square footage; 18.9%public institutions; 6.8% commercial and industrial.7.4% of all square footage is vacant of which NewYork City owns 29%.

Population: 521,000*

Racial Composition: 38.2% African American; 45.9% Hispanic;13.1% White

Per Capita Income: $20,028

Unemployment Rate: 14.1%

High School Graduatesand Higher: 55.8%

Industry# of jobs 123,813By Category Government 21.5%

Non-Profit 21.4%For-Profit 51.4%

Major Industries: Health, Education, Retail

*(157,569 are Empowerment Zone residents)

U P P E R M A N H A T T A N A T A G L A N C E

31.

L E T T E R F R O M T H E A U D I T O R

To The Board of Directors:

The financial statements of the Upper Manhattan Empowerment Zone

Development Corporation have been audited by us for each fiscal year ended

June 30, since inception. The following Statements of Financial Position and

Activities for the fiscal years ended June 30, 1997, 1998 and 1999 are a part

of the basic financial statements prepared for each of the aforementioned fiscal

years, and, in our opinion, are fairly stated, in all material respects, in relation

to the basic financial statements taken as a whole.

Vargas & Ghigliotty, LLP, CPAs

New York, NY

32.

F I N A N C I A L S T A T E M E N T S

1999 1998 1997

ASSETS

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $921,235 $960,888 $404,982

Grants Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1

Loans Receivable - Initiatives . . . . . . . . . . . . . . . . . 12,629,722 12,144,024 675,000

Security Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,750 38,097 8,348

Loan Guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523,200 538,500 –

Prepaid Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,541 – –

Other Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,550 79,057 2,087

Property and Equipment . . . . . . . . . . . . . . . . . . . . . . 250,311 257,440 154,659

TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,435,310 $14,018,007 $1,245,077

LIABILITIES AND NET ASSETS

LIABILITIES

Accrued Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . $151,314 $138,127 $91,461

Due to Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67,605 113,302 104,499

TOTAL LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . $218,919 $251,429 $195,960

NET ASSETS

Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,216,391 13,766,578 1,049,117

TOTAL LIABILITIES AND NET ASSETS . . . . . . . . . $14,435,310 $14,018,007 $1,245,077

33.

F I N A N C I A L S T A T E M E N T S

1999 1998 1997

REVENUE

Closing Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ – $119,828 $ –

Interest Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 635,516 52,762 6,894

Donated Services . . . . . . . . . . . . . . . . . . . . . . . . . . . 296,141 920,871 –

Other Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,865 317 13,993

TOTAL REVENUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 933,522 1,093,778 20,887

SUPPORT

Government Grants . . . . . . . . . . . . . . . . . . . . . . . . . . 6,911,477 17,883,314 3,221,778

NET ASSETS RELEASED FROM RESTRICTIONS – – –

TOTAL REVENUE AND SUPPORT . . . . . . . . . . . . . . $7,844,999 $18,977,092 $3,242,665

EXPENSES

Programmatic Initiatives . . . . . . . . . . . . . . . . . . . . . . 3,938,155 2,858,379 763,468

Program Services . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,131,798 2,416,110 1,185,061

General & Administrative Expenses . . . . . . . . . . . . 1,264,660 936,682 462,057

Depreciation/Amortization . . . . . . . . . . . . . . . . . . . . 60,573 38,461 19,441

TOTAL EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,395,186 6,249,632 2,430,027

CHANGE IN NET ASSETS . . . . . . . . . . . . . . . . . . . . . . 449,813 12,727,460 812,638

NET ASSETS, BEGINNING OF YEAR . . . . . . . . . . . . 13,766,578 1,049,117 249,079

Net Asset Adjustment . . . . . . . . . . . . . . . . . . . . . . . . – (9,999) (12,600)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,766,578 1,039,118 236,479

NET ASSETS, END OF YEAR . . . . . . . . . . . . . . . . . . . $14,216,391 $13,766,578 $ 1,049,117

34. BENEFITS OF INVESTING IN THE EMPOWERMENT ZONE

There are a number of federal tax benefits for new and existing businesses

located in the Upper Manhattan Empowerment Zone. In addition to

federal benefits, there are several other State and City benefits available to

businesses in Upper Manhattan. Federal programs include:

1. The Employer Wage Credit allows employers to claim credit of up to

$3,000 each year for employees who are Empowerment Zone (EZ) residents.

Each year, the credit is based on a percentage of the first $15,000 in wages:

20% through 2001, 15% in 2002, 10% in 2003, and 5% in 2004. It is

unavailable after 2004.

2. Increased Section 179 Deduction benefits are available to businesses

located in the EZ, which may deduct as much as $38,500 ($39,000 in 1999;

$40,000 in 2000; $44,000 in 2001 & 2002; $45,000 in 2003 & 2004) of the cost

of depreciable property in the year the property is placed in service.

3. Tax Exempt Bond Financing is available for qualified EZ businesses to

facilitate financing of new facilities and renovation or expansion of existing

facilities. Private activity bonds in amounts of up to $3 million per zone

business may be issued.

4. Work Opportunity Tax Credit provides businesses with a two-year

credit of up to $2,400 for the first year and up to $1,500 the second year per

“targeted” employee hired after September 1996. Wages used to claim EZ

wage credit cannot be applied to the work opportunity credit. Note: Extended

through expiration date through December 31, 2001.

5. Welfare-to-Work Credit provides businesses with a two-year credit of

up to $3,500 for the first year and up to $5,000 the second year per “long-term

family assistance recipient” hired after December 1997. Wages used to claim

EZ wage credits cannot be applied to the welfare-to-work credit. Businesses

cannot claim both the work opportunity credit and the welfare-to-work credit.

B E N E F I T S O F I N V E S T I N G I N

T H E E M P O W E R M E N T Z O N E

35.INFORMATION ABOUT UMEZ FUNDING

UMEZ will consider any funding request for a loan, loan guarantee,

equity, recoverable grant and/or grant which can be demonstrated to

stimulate business development and economic revitalization in Upper Manhattan.

At present, we are particularly interested in proposals that fall within our current

industry priorities: Entertainment and Tourism, Retail, Business Services and

Health Care. In order to be considered for substantive review, an application must

be submitted to UMEZ that successfully meets all of the criteria listed below.

Feasibility. A funding request must demonstrate a sound and achievable

operating plan that takes into account existing market conditions, competition,

consumer and/or business demand and basic operating issues. Plans must include

documentation that shows proof of managerial and financial capacity and should

indicate other public and/or private investment being committed to the project and/or being

sought.

Impact. A funding request must propose to meet a vital community need or

provide products or services that are consistent with the UMEZ mission and

objectives. Plans must demonstrate the project’s ability to expand economic

activity, increase and/or retain local employment, strengthen local institutions and

businesses and improve overall quality of life for residents, employees and visitors.

Qualifications. The applicant and/or management staff must have a successful

track record and management experience relevant to the funding request. Financial

qualifications and resources commensurate with the scope of the project are

required and must be supported by financial statements. Applicants should dem-

onstrate a history of managerial stability, particularly in implementing projects

similar to that proposed.

Sustainability. The applicant must leverage additional public and/or private

investment and must demonstrate that the program, service and/or product can be

maintained beyond the UMEZ investment. Plans should demonstrate sustainability

over the time frame proposed for operation. The management and operating plan

must ensure that goals are sound and achievable, particularly after requested

UMEZ funds have been exhausted.

B E N E F I T S O F I N V E S T I N G I N

T H E E M P O W E R M E N T Z O N E

36.

37.

38.

39.

40.

41.

42.

43.

U M E Z A N D B R I S C P A R T N E R S

We are very grateful to the following organizations for their pro bono assistance to UMEZ, BRISC, local

businesses and community organizations.

UMEZBozell Sawyer Miller Group Development of a comprehensive marketing strategy and

marketing materials

Brobeck, Phleger & Harrison Legal assistance

Carter, Ledyard & Milburn Legal assistance

Chadbourne & Parke Development of Employee Handbook, Personnel Poli-

cies and other projects

Chase Manhattan Bank Executive on loan

Cleary, Gottlieb, Steen & Hamilton Legal advisor on Broadway Video transaction

Columbia Law School Assistance through Legal Clinic

Debevoise & Plimpton Legal assistance

ErgoTech Development of UMEZ website

Ford Foundation and Columbia University Creation and ongoing funding of the Empowerment

Zone Monitoring and Assistance Project

Fried, Frank Legal assistance

Latham & Watkins Legal assistance

Lawyers Alliance for New York Coordination of pro bono legal services

McKinsey & Company Development of integrated investment strategy, improv-

ing organizational effectiveness

N. Y. Lawyers for the Public Interest, Inc. Coordination of pro bono legal services

Proskauer, Rose, Goetz & Mendelsohn Trademark of UMEZ logo

Simpson, Thatcher & Barlett Legal advisor on Harlem USA transaction

Vargas and Ghigliotty, LLP. Accounting assistance

Watson & Rice Accounting assistance

BRISC

Paul, Weiss, Rifkind, Wharton & Garrison Not-for-Profit Filing with IRS, Legal advisor to BRISC loan

fund recipients and other clients

White & Case LLP. Legal assistance to BRISC Investment Fund

44.

B O A R D O F D I R E C T O R S A N D S T A F F

Upper ManhattanEmpowerment ZoneBoard of DirectorsMr. Richard D. Parsons, ChairMr. Jimmy BranchMr. Lloyd E. CampbellMr. Erik ClietteMr. William A. GarciaMr. George GoodwillRev. Dr. William JamesMr. David R. JonesDr. Rafael LantiguaMs. Rae LinefskyMs. Maria A. LunaMr. William LynchMr. Leigh MillerMr. Cesar PeralesDr. Muriel PetioniMs. Deborah R. QuiñonesMs. Mary D. ReddRev. Dr. Adolph RobertsMr. Jose SanchezRegent Adelaide L. SanfordProf. Walter W. StaffordMr. Barry F. SullivanMr. Charles E. Williams, IIIRev. Dr. Reginald Williams

UMEZExecutive StaffTerry C. LanePresident & Chief Executive OfficerJames H. SimmonsSenior Vice PresidentBusiness InvestmentsNancy M. DevineSenior Vice PresidentProgram & Nonprofit InvestmentJeffrey IrishSenior Vice PresidentFinance & AdministrationLucille M. McEwenGeneral Counsel & Chief of Staff

StaffTracey AllardMenelik AlleyneMaria AngelesMabel ArangoNelsa BattistaFranklin BonifacioWanda BoydBarbara BrooksDion BurowLauren CraniotesKelvin CruceyNikoa EvansFernando FernandezToni L. GriffinLori HarrisonGarnet LucombeHenry MaldonadoJeannine L. MellyJamal MurdockJervis NúñezTrevor PearsonMiriam Lewis RaccahJose B. RiveraVilma RiveraAlex SaavedraGranvel TateSonya WhiteShellie Williams

New York Empowerment Zone Boardof DirectorsGovernor George PatakiRepresented byCharles A. Gargano,Chairman, Empire State Devel-opment Corporation and theNYEZ Corp.

Mayor Rudolph GiulianiRepresented byRudy Washington,Deputy Mayor and Vice Chair ofNYEZ Corporation.

Charles B. RangelCongressman

Jose E. SerranoCongressman

Bronx Borough PresidentFernando FerrerRepresented by Jose L. Ithier

Terry C. LanePresident and CEO,Upper ManhattanEmpowerment Zone

Andrew M. Cuomo, Secretary,U.S. Department of Housing andUrban Development

Photo Credits:Photo Credits:Photo Credits:Photo Credits:Photo Credits: Cover–Photos by FranklinBonifacio & Ozier Muhammad, The NewYork Times. Collage created by FathomCreative. Page 3: Karl Crutchfield. Pages 7–29: Franklin Bonifacio. Page 18: HarlemUSA rendering provided by Grid Properties,Inc. Layout & Design:Layout & Design:Layout & Design:Layout & Design:Layout & Design: KIP Communications.PPPPPrinting:rinting:rinting:rinting:rinting: Patane Press, Inc.

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