2006 Annual Report Executive Summary

Griggs-Steele County Empowerment Zone

Among many procedural improvements and ongoing works-in-progress, the Griggs-Steele Empowerment Zone, Inc. (Zone) reports ten most significant accomplishments during calendar year 2006 as follows:

  1. Instituted aggressive policies and practices necessary to achieve sustainability by the end of 2009.
  2. Took aggressive action to reduce the historical delinquency rate of loans while greatly improving the quality of current loans.
  3. Established M-Power, LLC, a locally-owned company, to direct the full commercialization of the abundant wind resources in the two-county area.
  4. Developed an innovative industrial building program that affords market-rate rent while providing revenue stream for local economic development agencies and the Zone.
  5. Invested over $1.5 million in existing local business for purposes of business retention and expansion, leveraging an additional $7 million.
  6. Instituted zone-wide “Employer’s Forum” to facilitate discussion and resolution of common problems.
  7. Increased development and promotion of the area’s historical, recreational, and tourism resources.
  8. Instrumental in the rehabilitation of eight low-income and the construction of eleven new senior-friendly housing units.
  9. Established and empowered a “Value-Added Ag Committee” to aggressively pursue the various ag-based energy and food-processing resources within the area.
  10. Provided $305,000 in grants that leveraged $522,800 more in support of community development activities and much needed infrastructure.
Almost 2% of the total population served by the Zone actively participate in its program planning and governance. In addition to the hands-on involvement of many, the Zone sponsors annual Community Visioning meetings in which participating communities provide input to the Zone’s strategic plans as well as their own.

During 2006, public input in planning was enhanced through a series of public education events as well as major publications in the local weekly newspapers and periodic columns featuring special events or ongoing activities. A recent scientific sample telephone survey of citizens reaffirmed the Zone’s strategies.

The Zone continues to nurture and expand its partnerships and alliances with other entities and individuals who have potential for synergistic actions. These include: business finance packaging partners, technical assistance providers, community development specialists, university departments, special focus groups, business organizations, among others. The Zone has accelerated efforts to use its non-Federal revolved funds to leverage other USDA-RD programs that are needed and appropriate for the area.

Low wages and workforce availability are emerging as obstacles to the Zone’s business retention, expansion, and targeted recruitment efforts. Programs are planned to collectively address these problems through “Employer’s Forums” and technical assistance such as tailored business management seminars and specialized Business Coaching Services.

The uncertainty of funding from year-to-year inhibits long-term planning and adversely affects Zone staff morale and creativity. The Griggs-Steele Empowerment Zone’s plan for reaching a state of sustainability in the three years remaining in the designation period is greatly dependent upon receiving an annual allocation equal to at least the average annual funded amount since inception; or about $1.4 million per year.

The threat of the expiration of the various tax incentives that stimulate economic activity for new business development is changing to a “disincentive” as the end of the designation period draws nearer. Without these tax incentives, even though the Zone will be sustainable, its competitive advantage to attract business expansions or relocations to the Zone will be eliminated. Congress needs to consider the consequences of the expiration of the tax incentives offered by the Empowerment Zone. The Griggs-Steele Empowerment Zone needs these incentives beyond the designation period in order to continue its mission to stem outmigration. To remove them before “critical mass” in business activity is reached would cause a set back in the progress made.

A major research project will be conducted to determine what facilities and services are required to recruit and retain the aging population.

 

*Disclaimer Notice

Griggs-Steele EZ Summary Page    Griggs-Steele EZ Funding Page 

Main Map    EZ/EC Home Page