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| Strategic Vision For Change |
Funding realities for the Empowerment Zone Initiative have now dictated a new direction for the Cumberland Empowerment Zone Corporation (CEZ). In light of the fact that the tax incentives are in effect until 2009, and that the Cumberland Empowerment Zone Corporation has become an engine for economic development in the county, the organization now faces the challenge of self-sustainability in order to continue spurring economic development in a distressed county that continues to lose its manufacturing base. In addition, new resources will have to be sought and creative uses of existing resources in order to continue with economic development initiatives.
Although the strategy for realizing the original strategic vision of the CEZ has taken a new direction, the vision itself remains in tact: Maximizing the use of its resources by reclaiming sites for creative employment opportunities in food processing, scientific glassware, trucking operations, unique types of tourism, high-tech training, back-office operations, and other types of industry suitable to the area; improving special transportation and shellfish processing; enhancing education and recreation for youth; strengthening family values and community support systems; and caring for the elderly and those with disabilities. Rather than using EZ funding as originally proposed in the strategic plan, the CEZ now plays a role as project coordinator, bringing resources to the project from several sources. These resources include CDFI designation that has enabled the CEZ to apply to US Treasury for funding to support its loan fund in addition to attracting equity investments from private banks in order to fulfill CRA requirements. The CEZ Executive Director sits on the Board of Directors for the New Jersey Economic Development Authority (NJEDA) Community Development Entity that received a New Market Tax Credit (NMTC) allocation of $125.0 million.
The CEZ continues to offer an 8-week entrepreneurial training program two to three times per year to assist aspiring entrepreneurs with business plan development. The CEZ relocated its Business Assistance Center (BAC) from a mobile classroom at the County College to the new Cumberland County Office of Employment and Training One Stop Center. This new location offers a modern facility that is conveniently situated to the EZ. The BAC offers a complete SBA business library in addition to computers with business plan software and Internet access. It is anticipated that foot traffic will increase substantially due to the new location. The CEZ is also sponsoring seminars that focus on specific topics in order to reach out to a greater number of EZ residents. An example of this outreach was a breakfast seminar sponsored by the CEZ this summer for Hispanic community leaders. The CEZ staff believed that there was a lack of trust by the local Hispanic community for government programs. The CEZ staff addressed these concerns at the conference in order to allay their misconceived apprehension.
In addition to providing resources and tax incentives for business start-ups and expansions, the CEZ also plays a role as developer for community projects, which include a community school and a rescue mission. The CEZ is able to attract additional funding sources by using EZ funding as seed money. The CEZ also continues to recognize that an investment in its youth is critical to the sustainability of a community. To that end, the CEZ has been able to continue after-school and summer programs with funding received through the 21st Century Community Learning Centers grant and Safe Schools Healthy Students grant.
Because of funding realities, the CEZ will no longer be able to fund support programs such as transportation, workforce training and homeownership subsidies. This poses challenges in realizing our strategic vision because these issues proved to be barriers to EZ residents becoming productive members of the workforce. We will, however, continue on the same strategic vision utilizing our revolving loan pool, tax incentives and technical assistance in order to spur job creation through new business start-ups and expansions.
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| Community Based Partnership |
Governance Board
The activities of the Cumberland Empowerment Zone Corporation are conducted under the direction and supervision of a 21 member Board of Directors. Eleven members of the Board of Directors are automatically appointed based upon their positions - 4 mayors, 3 freeholders, and 4 standing committee chairpersons. The remaining 10 Board members are selected by a nominating committee as representatives of EZ businesses, social service providers and residents. From the Board’s inception through June 2004, Board meetings have occurred once a month. Meetings are advertised and conducted in compliance with the Open Public Meetings Act. Public Notice is provided through a listing on the CEZ website, postings in the Empowerment Zone office, and advertisements in the three local newspapers. Attendance is recorded at each meeting and the CEZ Board of Directors has always met the quorum requirements set forth in the organization’s by-laws. Since 1999, only 2 meetings have been cancelled; one due to inclement weather and the other due to a conflict in scheduling with a special event attended by the majority our its Board members.
In addition to the Board of Directors, the CEZ also receives oversight and advice from a 65 member Advisory Board. Members of the Board of Directors participate in the Advisory Board, which has met quarterly (in compliance with the Open Public Meetings Act). In addition to the quarterly meetings, Advisory Board members serve on various subcommittees that meet each month to discuss applications to be presented for approval to the Board of Directors. The four subcommittees review the applications from their particular focus area, namely Finance, Stakeholders, Communications and Implementation. The chairperson of each subcommittee is a member of the Board of Directors and reports the subcommittees’ recommendations to the Board.
Capacity Building
Reductions in federal funding to the Empowerment Zone program have severely diminished the ability of the Cumberland Empowerment Zone Corporation to support and build the capacity of local service and non-profit organizations. Notwithstanding, the CEZ is pleased to report on the progress of several organizations that have received funding to provide a variety of services to residents of the Empowerment Zone.
The CEZ maintains an integral partnership with Cumberland County College to continue the services provided to the community through the Neighborhood Leadership Institute (NLI). Since its formation in 1999, the NLI has provided a means for established and emerging neighborhood groups, community leaders, volunteers, and non-profit institutions to come together; training them in grassroots community development and leadership concepts; and providing a supportive network for ongoing involvement and growth. Membership and participation in the NLI gives organizations access to technical information and also facilitates networking and the exchange of ideas to increase the success of their individual programs. Over the course of the past year, several technical assistance and training seminars have also been offered by the NLI. From February through April 2005, participants attended the Community Capacity Building Series, an eight-week series offering interactive technical assistance workshops focusing upon grassroots organizational development topics. In April, NLI offered Part II of the Community Capacity Building Series. This portion of the series is a four week program providing an average of 12 participants a more in-depth prospective on organizational evolution, as well as personal skills development. The Grant Team is a new program offered by NLI this year. In this hands-on program, participants individually and collectively complete a grant proposal. The Grant Team was offered twice during the program year, with an average of 8 total participants per offering. Finally, in January NLI also offered a two-day Grant Workshop giving the 29 attendees a basic overview of successful grant research and writing.
The CEZ supported the Urban Network Organization’s (UNO) efforts to build capacity, as it was one of the few Hispanic non-profits in an empowerment zone with a predominately Hispanic population. While UNO was successful in working with the Cumberland County Office of Employment and Training to assist EZ residents with job placements, it failed in its efforts to sustain itself without CEZ assistance. Without CEZ funding, staff is now down to a minimum and focusing on healthcare for EZ children. To that end, the program did not realize the outcomes projected in PERMS for EZ employment. However, although UNO is no longer implementing the EZ resident employment placement program, the Office of Employment and Training has continued the program at no cost to the CEZ.
CEZ staff has continued to work with the Nanticoke Lenni-Lenape Indian Tribe to build the organization’s capacity and sustainability. The tribe expressed interest in becoming involved in housing development as a means to both build the group’s capacity as well as provide housing for tribe members. Unfortunately, the Nanticoke Lenni-Lenape Indian Tribe has encountered difficulties finding the necessary funding for participation in programs such as the USDA Self-Help Housing Program. The tribe continues to research the best course of action. During the last year, three tribal representatives attended two grant-training workshops offered by the Administration of Native Americans. As a result of the training received at the workshops, the tribe decided to complete a demographic study of its needs in order to fully determine the feasibility of tribal housing and other economic development programming strategies. The Nanticoke Lenni-Lenape Tribe is currently awaiting word on several grant applications that were submitted to fund this initiative. In addition, the tribe formed its own limited liability company, “Turtle Associates, LLC”, in January 2005 and has submitted an application to the U.S. Small Business Association for Tribal 8a status. Such status would allow preferred, noncompetitive acquisition of government contracts with a higher profit margin than typical government vendors. The revenue from these projects would be used to meet funding demands of tribal housing and community development programs, while also providing training and jobs for residents. The Cumberland Empowerment Zone Corporation continues to provide technical assistance to the Nanticoke Lenni-Lenape Tribe and supports the tribe’s efforts in determining the most effective manner to achieve its capacity-building goals. The Tribe’s goal is now to receive federal designation so that it would be eligible for federal funds toward capacity building and tribal programs.
The Cumberland Empowerment Zone Corporation also continues to encourage leveraging of resources and creation of partnerships among groups that provide services to the EZ communities.
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| Economic Opportunity |
Workforce Development
In September 2000, the Academy of Aviation Science opened at the Millville Airport Industrial Park through the assistance of the Cumberland Empowerment Zone Corporation, the County of Cumberland and the Delaware River Bay Authority. The Academy provides training to adult students in the area of aviation mechanics. Recently added to the Academy are special and customized training components. Enrollment in the program is steadily increasing, although the number of Empowerment Zone residents has not been at the level initially expected. Cumberland County Technical Education Center (CCTEC), which operates the Academy, is actively pursuing ways of increasing enrollment and expanding the program. For example, agreements with Cumberland County College and Rowan University are being explored so that a broader base of offerings within the aviation field can be developed. In addition, CCTEC is in the process of implementing a high school component to the program. CCTEC is in the process of becoming a separate high school rather than its current arrangement of serving as a timeshare with existing high schools in the county. Accordingly, a full-time high school program in Aviation Science is expected to be implemented in September 2007. To date, curriculum has been developed, FFA approval has been verbalized, space has been dedicated and equipped, recruitment efforts have been expanded, and entrance exams have been administered. As a new program, both the CEZ and CCTEC expected that it would take some time before the advantages of the program were fully recognized in the community. Through consistent and increased marketing, the number of Empowerment Zone enrollees is expected to steadily grow. As a further incentive, scholarships remain available for EZ residents. The presence of the Academy at the Millville Airport is also a draw for companies in the Aviation industry. For example, The Boeing Corporation has contracted training services to further advance the certifications of a group of their employees.
The Cumberland Empowerment Zone Corporation again provided financial support for the Wawa Summer Youth Training Program in Summer 2005. The partnership between Wawa Food Markets, the CEZ and Cumberland County Office of Employment & Training for the Summer Youth Program is in its 6th year. The CEZ funds a portion of the cost of transporting EZ youth to shore communities for work at Wawa stores. This program continues to be an excellent example of using work opportunity tax credits to both benefit business and facilitate employment opportunities for EZ residents. The Wawa Summer Youth Program has received accolades and support throughout the region. This summer, 26 youth residing in EZ communities have been participating in the program.
In 2000, the CEZ approved financial support to Tri-County Community Action Partnership, Inc. (TCCAP) for its Lead Remediation & Abatement Program. The program was created to provide for the abatement/remediation of lead in homes within the EZ census tracts. To date, 22 residences within the Empowerment Zone have benefited from Empowerment Zone funding of the program by the removal of a serious health hazard. Staff closely monitored the program during funding periods and, by all accounts, it was a definitive success. As initially designed, the program was to include its own lead abatement workforce. However, insurance costs made this an unfeasible business venture. Notwithstanding, Empowerment Zone funding of the program allowed Tri-County to develop the necessary experience to be awarded a much-coveted Lead-based Paint Abatement Grant though HUD. The CEZ expected the program to continue its growth and success with HUD funding. Unfortunately, staff has learned that HUD funding of Tri-County’s program was terminated. Notwithstanding this setback, Cumberland Empowerment Zone staff considers its prior funding of the Lead Abatement Program to be a worthwhile initiative in light of the Empowerment Zone homes and residents that have benefited from the program during the years of its operation.
The CEZ continues to benefit from its EZ Resident Workforce & GIS Information Database. The database contains demographic data, as well as information regarding skills and needs of EZ residents. Moreover, the CEZ and the County of Cumberland are developing a countywide GIS system. A pilot system has been created, which the partners seek to expand into a comprehensive on-line source of information for businesses and individuals. The Cumberland Empowerment Zone Corporation successfully applied for grant funds to be used toward the development of the expanded system.
Cumberland County College has maintained and expanded its Construction Supervision Program. The college currently offers two associate degree programs – one in Construction Supervision and the other in Construction Supervision/Electrical Technology. In addition, career certificates are offered in these areas. The Construction Supervision Program is intended to train students for entry-level professional and supervisory positions in the construction management sector. Several businesses are also participating in the program, by enrolling their employees for training and also hiring students as interns. The program is still in its infancy and Cumberland County College has been proactive about marketing it to the community. In November 2004, a mass mailing was sent to all construction industries in the County to stimulate interest. In addition, information is regularly disseminated to prospective students within the area. In light of the fact that EZ enrollment did not meet projected levels, the CEZ will not disburse the second half of the grant funding initially approved for the program. Notwithstanding, CEZ staff will continue to work with the College in its efforts to maintain and grow the program.
Businesses Assisted
The Cumberland County Office of Employment & Training informs its business clients about the availability of tax credits as an incentive to hire Empowerment Zone residents. The Office of Employment & Training educates and assists businesses in maximizing tax benefits, including the Work Opportunity Wage Credit, the Welfare to Work Wage Credit, and the Empowerment Zone Wage Credit. During the past year (July 2004 – June 2005), the Cumberland County Office of Employment & Training reports that 76 Empowerment Zone residents were placed in jobs that provided their employers with eligibility for Empowerment Zone tax credits.
The Millville Airport Maintenance Service Hanger was constructed through a partnership with the Cumberland Empowerment Zone Corporation and the Delaware River and Bay Authority. The 40,000 sq. ft. hangar is a multi-tenant corporate aviation facility with aircraft repair and refitting capabilities, along with office and workshop space. The DRBA, City of Millville and the CEZ have been aggressively marketing the Hangar to prospective tenants. As an example, in November 2005, the three partners are sending representatives to National Business Aviation Association convention, where they will exhibit information about the Hangar and Millville Airport.
The Rutgers University Food Innovation Center (originally called the Food and Industry Research Extension Center (FIRE) Center) is an initiative within the Bridgeton Empowerment Zone census tracts with a mission to catalyze and promote a viable agricultural and food processing base in Southern New Jersey. The Center provides technical assistance to business and individual clients, assisting them in developing, testing and marketing food and farm products. To date, the Food Innovation Center has provided assistance to over 250 businesses, 17 of which are located within the Cumberland Empowerment Zone. In addition to providing these services in its current leased facility, Rutgers University has been diligently seeking funds to construct a 23,000 sq. ft. food business incubator in the Bridgeton Florida Avenue Industrial Park. The incubator will provide clients with access to state-of-the-art food processing and laboratory equipment. Over 60% of the funding needed for this project has been secured in the form of grants, including a $2 million grant from the Casino Reinvestment and Development Authority, a $1.8 million appropriation in the New Jersey State budget; a $500,00 grant from the CEZ, and $750,000 from the New Jersey Agricultural Experiment Station. Rutgers has formed a fundraising committee, on which the CEZ Executive Director sits, to raise the remaining funds. In furtherance of its fundraising efforts, representatives from Rutgers and the CEZ met with New Jersey EDA to discuss the merits of using New Markets Tax Credit financing to close the funding gap. Construction is scheduled to begin in Spring 2006. The Food Innovation Center provides substantial benefits to the Bridgeton Empowerment Zone, with its capability of assisting local businesses and also attracting new business to the region. As an example, a company that uses hydroponics to raise lettuce recently decided to locate within the Florida Avenue Industrial Park, in large part due to the presence of the Food Innovation Center. The City of Bridgeton, Rutgers University and the CEZ are fully committed to ensuring the success of this important project.
In 2000, the Cumberland Empowerment Zone Corporation provided funding to establish a Small Business Administration One-Stop Capital Shop. The One-Stop Shop was to include a Business Information Center, providing training services, counseling and access to financial resources. With support from the CEZ, a One-Stop Capital Shop was opened in Vineland, New Jersey. Unfortunately, the SBA One-Stop Capital Shop was forced to close when the Federal Government ceased funding for the Shops. The CEZ believed that the services offered at the One-Stop Shop were important to empowerment zone businesses and entrepreneurs. Accordingly, the CEZ began extensive efforts to open a new Business Assistance Center and obtained permission to use the resources previously contained in the One-Stop Shop.
The Business Assistance Center (BAC) was created as a partnership between the Cumberland Empowerment Zone Corporation, the Cumberland County Board of Chosen Freeholders, Cumberland County College and the Cumberland County Office of Employment and Training. The BAC provides business plan software, a library of business resources and one-on-one counseling to local businesses and entrepreneurs. For the last year, the BAC has been successfully operating out of a temporary facility at Cumberland County College. Recently, however, plans were approved to relocate the Center to permanent space at the Cumberland County Office of Employment & Training. The new facility will allow for increased use of the Center, since there is more foot traffic at the Office of Employment & Training and the facility is more easily accessible to Empowerment Zone residents. The Business Assistance Center is an important tool for economic growth, providing support for existing local businesses and new entrepreneurs in their efforts to operate successful enterprises.
Access to Capital
With Federal support for the Empowerment Zone program diminishing, the Cumberland Empowerment Zone Corporation has focused upon its Business Loan Incentive Program and Micro Loan Programs as the key to sustainable assistance for the EZ communities. The Business Loan program has had a significant impact on local economic growth and has created employment opportunities for residents. As of June 30, 2005, 30 loans have been issued through the Business Loan Incentive Program, totaling over $2.9 million and creating more than 85 jobs. Moreover, funds provided by the CEZ under this program have been leveraged with over $22.8 million in public and private investment. As a condition of funding, businesses agree to utilize the Cumberland County Office of Employment & Training in fulfilling their hiring efforts, thereby ensuring that EZ residents are targeted for employment opportunities.
Likewise, the CEZ Micro Loan Program has assisted numerous entrepreneurs and small businesses with low interest loans up to $35,000. The Micro Loan program was designed to assist entrepreneurs and small business start ups, while at the same time fill vacant buildings in downtown EZ areas. Currently, 26 businesses have benefited with funding from the program. The Micro Loan program has attracted new business to the Empowerment Zone area and assisted the local municipalities in their efforts to revitalize the downtown neighborhoods.
The EZ Dollar to Dollar Program in its initial design was created in concert with Tri-County Community Action Agency’s Entrepreneurial Training program. In concept, EZ residents would attend financial management classes and open a savings account for a new business, home or vehicle purchase, education costs, or credit repair. Tri-County’s Entrepreneurial Training program subsequently discontinued and the Dollar to Dollar program consequently did not reach its projected outcomes. As a result, the CEZ ceased funding for the program. The CEZ has implemented its own Entrepreneurial Training program that has proven quite successful in complimenting the CEZ’s business and micro loan programs.
The Cumberland Empowerment Zone Corporation has partnered with the New Jersey Economic Development Authority (NJEDA) for projects incorporating tax-exempt bonds. To date, three projects in the Cumberland Empowerment Zone have used bond financing. One corporation used EZ bonds to construct a hockey arena. Cumberland TruStone L.P. used bonds to finance the construction of a facility to manufacture aerated autoclaved concrete block and panels for use as building materials. Finally, Garden State Bulb Company L.L.C., a company that imports flower bulbs from Holland, used bond financing to build a new 80,000 square foot facility in the Vineland EZ developable site. All three business are working with the Cumberland County Office of Employment and Training to fulfill hiring needs. CEZ staff recognize that EZ bonds are an important financing tool for appropriate projects. However, the 35% EZ resident employment requirement has proven to be a challenge and potential barrier for those businesses that require a more sophisticated workforce.
Staff at the Cumberland Empowerment Zone Corporation continue their efforts to find additional economic development funds and tools for the Empowerment Zone and neighboring communities. Such tools will be vital to ensure the organization’s sustainability. Toward that end, the CEZ successfully applied for a CDFI technical assistance grant and is awaiting word on its application for financial assistance funding. In addition, staff is working to create and expand partnerships with local municipalities and lending institutions.
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| Sustainable Community Development |
Limited federal Empowerment Zone funding has had a substantial impact on the Cumberland Empowerment Zone Corporation’s ability to support community development programs and projects. Notwithstanding, the CEZ continues to believe in the key services provided to the Empowerment Zone communities by such programs. As such, funding was provided to the following organizations in furtherance of the CEZ’s holistic approach to economic growth.
Housing
The Housing Down Payment Assistance Program (HOAP) has been a very successful program in the Downtown Vineland Empowerment Zone census tracts. As of June 30, 2005, the HOAP program has assisted a total of 122 Empowerment Zone families purchase homes by providing funds for down payment and closing costs. The City of Vineland’s downtown area received designation this year under the Main Street Program. Consequently, there has been increased attention and focus on revitalizing this area and the surrounding neighborhoods. The HOAP program is a vital tool in the revitalization efforts, providing stability to the community and assisting residents.
Along with the HOAP Program, the City of Vineland operates an Aesthetic Improvements Housing Program (PAINT) with Cumberland Empowerment Zone Corporation financial support. Through the PAINT program, residents of the Downtown Vineland Empowerment Zone community are eligible for financial assistance toward exterior improvements to their homes. Specifically, the program issues matching funds for improvement costs up to a maximum of $1,000. To date, 126 EZ families have participated in the program. The Program facilitates the revitalization of Downtown Vineland by making EZ homes attractive and safe places to live.
Tri-County Community Action Agency received support from the Cumberland Empowerment Zone Corporation for Phase I of its Wesley Village Housing project. The first phase of the project is now complete and has resulted in the construction of 13 new homes within the Bridgeton EZ census tracts. The purchase price for the homes was subsidized to allow low-income residents to purchase them. Tri-County is now moving forward with Phases II and III of the project. The entire Wesley Village project will provide new homes for a total of 51 families. In addition these new homes, the project has also facilitated substantial redevelopment and infrastructure improvements to a Bridgeton Empowerment Zone neighborhood.
The Hope VI housing project is a significant project within the Bridgeton census tracts, representing the largest investment in neighborhood revitalization in the entire county. The Cumberland Empowerment Zone Corporation is providing a portion of the construction financing for the project, as well as a grant for infrastructure improvements. Funding provided for this project will leverage with other investments for a total project value of $72,000,000. In addition to financial support, Cumberland Empowerment Zone Corporation staff has provided technical assistance to individuals seeking to purchase homes within the Hope VI project. Phase I of the Hope VI project is well underway, with the 9 homeownership units constructed and approximately 90% of the new rental units complete.
Infrastructure
Port Norris, New Jersey is one of the most economically distressed regions of Cumberland County. The Cumberland Empowerment Zone Corporation has been involved with several projects intended to revitalize the area and revive the oyster industry. One ongoing project is the creation of a comprehensive wastewater treatment system. Port Norris officials are working with County, State, and Environmental authorities on this project. While progress continues to be made, the wastewater project is expected to take several years due to a complicated permitting process.
The Cumberland Empowerment Zone Corporation consistently works with the City of Bridgeton to expand the Florida Avenue Industrial Park. General site work is complete. As discussed above, Rutgers University intends to construct a Food Innovation Center in the park. The remaining CEZ funding for this initiative will be used to complete the customized site work necessary for the Rutger’s project. In addition, a second company has agreed to purchase space in the Industrial Park to construct a hydroponics facility. With the first two projects moving forward, coupled with the City’s marketing efforts, it is anticipated that business in the industrial park will continue to grow.
Along with its efforts to restore its shellfish industry, Port Norris has also focused upon eco-tourism as a method of revitalizing the community. In furtherance of this goal, the CEZ provided funding to the Bayshore Discovery Project (formerly known as the Delaware Bay Schooner Project). Among its accomplishments, the Bayshore Discovery Project acquired and stabilized shipping sheds along the Delaware Bay. The project also restored an oyster schooner, the A.J. Meerwald, which is currently used to give daily tours of the Delaware Bay Estuary. A new dock, picnic area and information kiosks are also in place. The Bayshore Discovery Project’s ultimate goal is to create an education facility and maritime museum celebrating the Bay's history. Bayshore staff has secured over $1.4 million for the final phases of this project and is in the process of completing a site plan for review and approval by the township.
The Bridgeton Recreation Center continues to provide at-risk youth with recreation activities, after-school and summer programs. Tri-County Community Action Agency has taken over recreation programming for the Center and will further its efforts to motivate Empowerment Zone youth to stay in school, stay away from crime and gangs, and develop career goals.
One of the major impediments to EZ residents’ ability to take advantage of employment opportunities in the region in the lack of public transportation serving the Empowerment Zone communities. Since its inception, the Cumberland Empowerment Zone Corporation has been committed to supporting projects that address that need. One such project was the construction of the Vineland Regional Transportation Center. The Transportation Center is a New Jersey Transit station, providing daily bus services and housing several retail establishments. The project developer still has additional space available for lease to businesses. The Vineland Regional Transportation Center serves as the public transportation "gateway" into the entire county.
The Vineland Demonstration Block Project is a revitalization effort focusing on one block in Center City Vineland. The project is in its final phases with the construction of a pedestrian causeway linking parking lots to downtown buildings. Prior portions of the project resulted in construction of a new federal post office; conversion of the prior postal facility to house the municipal court; and demolition of a vacant building to make way for the pedestrian causeway. The Demonstration Project is the first phase of an ongoing effort to revitalize the overall Downtown Vineland area, which received designation as a Main Street this year. CEZ staff is very active in the Main Street committees and is pleased to see the renewed interest and focus upon this Empowerment Zone census tract.
The City of Millville is in the process of expanding the Industrial Park at Millville Airport in order to create space for more business. In the initial stages of this project, the CEZ provided funding to create a development strategy. The City prepared submitted its preliminary application to the US Economic Development Association. The engineering process is complete and water and sewer applications are being submitting to the Department of Environmental Protection. The expansion of the Millville Airport Industrial Park is a crucial step in supporting the continued growth of this EZ developable site. The City of Millville suffered a blow this year when Dallas Airmotive decided to shut down its facility at the Millville Airport Industrial Park. As a result, the CEZ has partnered with the City in undertaking a more aggressive approach to marketing the airport to attract new business.
Yet another transportation project supported by the CEZ is the expansion of the Cumberland Area Transit System (CATS). The CEZ and the Job Access Reverse Commute (J.A.R.C.) program provided grant funding to the Cumberland Improvement Authority for this initiative. Through the initiative, the CATS system has expanded its hours to 5 a.m. – 8 p.m. Monday through Friday in order to provide transportation services for work and work-related activities. Linkages are provided to NJ Transit routes and the Office of Employment and Training (which has a shuttle service for clients). The system will continue to expand with the goal of creating an accessible, countywide transit network. The initiative is progressing as anticipated and the Cumberland Improvement Authority is preparing documents needed to draw down Empowerment Zone grant funds. The Cumberland Improvement Authority has also received word that it has been approved for additional J.A.R.C. funding for the expansion project. Cumberland Empowerment Zone Corporation support of this initiative was based upon recognition of the need for EZ residents to access public transportation service.
Environment
The Bridgeton Riverfront Farmers Market operated for its fourth summer this year. The Market is open every Friday from July – October with participation from local vendors. The Farmers Market provides a venue to purchase products from local farmers and at the same time creates increased foot traffic and activity in downtown Bridgeton.
Education
The Millville Army Airfield Museum continues to attract visitors to the Millville Airport and to provide information to the public about aviation history. Each year, the museum is a major attraction during the Aviation Air Show. The museum also houses the ACE Computer Center, a youth program that received funding from the CEZ. The Museum recently learned that it is the recipient of a $500,000 grant from the Cumberland Improvement Authority to additional space in the building for a library. Moreover, the museum’s executive director co-produced a documentary being aired on the New Jersey Network, “Thunderbolts of Millville”, which tells the story of World War II at the Millville Airport. The activities of the Millville Army Airfield Museum complement and assist in the overall strategy of attracting business and visitors to Millville Airport.
Cumberland County College’s School Counts! Program is a successful tool that both rewards high school students and provides local businesses with a pool of responsible employment prospects. During high school, participating students are tracked to determine whether they maintain a C+ average, complete 8 consecutive semesters, and are late/absent less than 9 days per year. Assuming those conditions are met, the students are awarded a Certificate upon graduation. Over 450 local businesses have agreed to give priority in their hiring decisions to students with a School Counts! Certificate. Moreover, Cumberland County College has established a foundation that will provide full scholarships to Cumberland County College to every high school student who successfully completes the School Counts! Program. Cumberland County Technical Education Center (CCTEC) has formed a similar foundation and is the process of raising scholarship funds for School Counts! participants who wish to attend the vo-tech school. The Cumberland Empowerment Zone Corporation has supported the efforts of both the College and CCTEC Foundation through funding for marketing and operational costs. The School Counts! Program provides Empowerment Zone residents with an opportunity for a free education as well as employment opportunities.
Through the support of the CEZ, the Millville School District continued to bring technology instruction and access to students through its ACE Computer Center Program. The ACE Program provides services to EZ residents of all ages both at the Millville Airport Air Field Museum and the Port Norris Elementary School. During the last year, the ACE program offered after-school technology classes. The students completed several projects involving the use of computers, digital and video cameras, and educational software. Projects include a water analysis of a local stream under the guidance of Cumberland County’s Watershed Ambassador; digital photography and reporting of historic homes and buildings in Port Norris; designing and writing a Revolutionary War newspaper; and filming local veterans and creating a DVD. The veteran interviews were featured on CNN in New Jersey. In addition, ACE students at the Millville Airport site received a grant from the History Channel under the Save Our History program. During the past year, over 30 Empowerment Zone residents participated in the ACE program. Program participants maintain a website for the Millville Airport Museum (www.millville.org/memorial/ace/text/touchinghist.html).
Human Services
The Cumberland Empowerment Zone Corporation has provided support for the Broaden Your Horizons youth program for since July 2000. The program operates within the Vineland Empowerment Zone census tracts and provides a myriad of services to at risk youth. This past year, Broaden Your Horizons reached a milestone in its capacity building, officially becoming the Boys & Girls Club of Vineland. Services provided to EZ youth include valuable programs like Boxing/Self-Defense, Basketball, Mentoring, Modeling/Life Skills, Tutoring/Homework Help, Job Placement, Youth Enrichment and Computer Training. As an official Boys & Girls Club member, the organization has received increased business, public, community and volunteer support. The Boys & Girls Club of Vineland has earned a reputation within the community for providing quality programs to an underserved and sometimes challenging urban youth population.
The Scout Reach Empowerment Zone Program has undergone some changes within the past year, namely the hiring of a new District Director, Arthur Lobdell. With over fifteen years of scouting experience, Mr. Lobdell is excited to work with and expand the Boy Scout program within Cumberland County including the Empowerment Zone program. The CEZ approved grant funding to the Southern New Jersey Council to establish Boy Scout troops in Empowerment Zone communities previously lacking such Units. The initiative has met with some challenges, although it has served over 100 EZ youth. In order to increase participation in the program, the Southern New Jersey Council formed a partnership with Casa Prac, a social service organization providing services to the Spanish community within the Empowerment Zone. Two boy scout units have been chartered to Casa Prac with the intention to form four additional units in the coming year. CEZ staff has met with the new district director and will work with the Southern New Jersey Council to fulfill its objective in establishing stable and ongoing boy scout units serving empowerment zone youth.
Other Programs/Projects
The City of Bridgeton marketing program continued during the past year. The City of Bridgeton named Chris Cummings, formerly the city’s UEZ coordinator, as its new Director of Planning and Development. Mr. Cummings has been aggressively pursuing potential business and development prospects for the city. During the past year, two major commercial spaces in Downtown Bridgeton have been completely renovated and several new businesses have opened in Downtown Bridgeton.
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| Tax Incentive Utilization Plan |
EZ Tax Exempt Bonds
As discussed above, three projects in the Cumberland County Empowerment Zone census tracts have utilized tax exempt bond financing. Although the bonds can be excellent tools for promoting economic development in the region, the strict 35% EZ employment factor presents a substantial challenge for some businesses. Specifically, businesses that require skilled labor with particular expertise would find it nearly impossible to comply with the requirement, making use of the bonds not feasible. The Cumberland Empowerment Zone staff actively markets the empowerment zone tax-exempt bonds to businesses and developers and regularly searches for appropriate projects for their use.
Wage Credits
The Cumberland Empowerment Zone Corporation is proactive about disseminating wage credit information to businesses within the Empowerment Zone community. Staff regularly visits business clients to explain the tax incentives for employment of EZ residents. The Cumberland County Office of Employment and Training (CCOET) likewise works with local businesses to assist them in taking advantage of available tax credits and, at the same time, provide employment opportunities to empowerment zone residents. CCOET reports that, during last year alone, over 75 empowerment zone residents were hired through its offices, providing their employers with eligibility for tax credits. In addition, the Wawa Summer Youth program operated successfully again this summer and continues to be a major beneficiary of the Work Opportunity Wage Credit. Staff believes that it is the partnership of loan programs and tax incentives that create the best incentives for businesses to locate within the Empowerment Zone and to provide employment opportunities to EZ residents.
Marketing Plan
Cumberland County has effectively utilized a cooperative and team approach to its marketing efforts. Economic professionals from the county, municipalities, UEZs and the CEZ work together to attract new business to the region. When a new business expresses interest in relocating in the area, a meeting a scheduled with participation from all parties that can provide incentives for the relocation. This has proven to be a powerful and effective approach, presenting businesses with an overall package that include all of the potential benefits of operating within the region.
The Cumberland Empowerment Zone Corporation successfully applied for a technical assistance grant from the CDFI Fund. The grant includes funding for marketing activities. The CEZ staff intends to utilize this funding to create a brochure explaining its loan programs and tax incentives. The brochure will be an important tool to market the programs to businesses currently located within the Empowerment Zone, as well as new businesses exploring the option of relocating to the area.
CEZ staff has also attended several seminars hosted by the Millville-Vineland Urban Enterprise Zone and the Cumberland County Office of Employment and Training. The seminars, one targeted to realtors and the other to businesses in general, brought together various organizations to provide information about their programs and benefits. In addition, the CEZ Executive Director spoke at the local rotary meeting and staff attends meetings and luncheons of the County Chambers of Commerce.
The Cumberland Empowerment Zone Corporation also completed its 2002-2003 Annual Report. The report was designed by a professional marketing agency for dissemination to the public. Other marketing material, such as ads and press releases, are regularly distributed within the community.
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The Cumberland Empowerment Zone Corporation conducted entrepreneurial training courses throughout the last year. Darryl Davis, CEZ Community Development Manager, instructs the course using the NxLevel Entrepreneurial Training program. One-on-one technical assistance is likewise provided at the Business Assistance Center. These programs have provided provide participants with general information regarding business ownership and operation, as well as information about CEZ programs and opportunities. Several graduates from the NxLevel Entrepreneurial Training course have gone on to open new businesses in the Empowerment Zone with financing from the Cumberland Empowerment Zone Corporation.
The City of Vineland was a successful applicant to New Jersey Schools Construction Corporation (NJSCC) and the New Jersey Economic Development Authority (EDA) to become one of six Demonstration Projects for the construction of a Community School. Community Schools are facilities that incorporate community design features (ex., a school gymnasium, playground or library accessible to both school district students and community residents) and coordinate local economic development, redevelopment or community development with the construction of the school facility. The Vineland Community School will be built in the heart of the Downtown Vineland Empowerment Zone, in a neighborhood that has been plagued with drug dealers and vagrants and deemed unsafe for children to venture out after sundown. The Cumberland Empowerment Zone Corporation, Tri-County Community Action Agency and Joseph Jingoli & Sons, Inc. have been named re-developers for this important project. The CEZ views the community school project as a crucial step in revitalizing the Vineland Empowerment Zone census tracts.
The City of Vineland also approached the Cumberland Empowerment Zone Corporation for assistance in facilitating renovations and re-use of an abandoned warehouse in center city. The CEZ successfully submitted 2 applications to the NJ Department of Community Affairs, securing $585,000 in funding to convert the property into a homeless shelter to provide services to adult males. The City is in support of the project and views it as a means of reducing the homeless population in the downtown areas.
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