Boro to Gov: Send it, we'll spend it

By Suzanne Keating, Staff reporter

As politicians fiddle with conference calls and budget calculations, borough residents burn with ideas about how to spend $51 million in government grants over the next 10 years.

Daily phone calls and weekly meetings involving borough, city, state and federal officials have failed to resolve how much money the state will provide for development in the borough's designated federal empowerment zone. Federal officials warn the state had better make a decision soon.

"The longer it takes, the less money will be available," said Housing and Urban Development Undersecretary Mark Fabiani on Wednesday. "We should be spending this money as soon as possible."

The 80 borough residents who attended a town meeting nine days ago said they know exactly how to spend the money. Ideas ranged from entrepreneurial training to expanded childcare.

But some residents articulated a gnawing sense that they have been promised economic renewal before, including federal urban renewal and Model Cities programs, but have seen little improvement.

"We need to use the money wisely this time," said Carlos Padilla, a medical equipment supplier, "instead of dispensing it through social services and political patronage."

The proposed budget stresses social programs. Seventy-six percent of the zone money for the first three years is allocated for adult education and job training. Another 21 percent will go to child care, health insurance and innovations in the criminal justice system.

William Rodriguez, who owns Alto Exterminating Services and heads the South Bronx Board of Trade, said he wants the money spent to spur business activity. "We need business in the Bronx by people who live in the South Bronx," he said.

Padilla and dozens of others discussed their proposals during the four-hour hearing sponsored by the Bronx Overall Economic Development Corporation, which will distribute the funds. Many expressed fear that political bickering would undermine their efforts. "We're making all these plans and they're just going to get blown out of the water," said Padilla.

Kevin Nunn, who is coordinating the distribution of zone funds in the South Bronx, says that the entire project is now in jeopardy because the state's commitment is wavering. In his recently proposed budget, Gov. George Pataki has allocated only $1 million of the $10 million federal officials were expecting the state to contribute this year.

Since the city first applied for the $100 million federal money last year, Bronx and Manhattan political leaders have been feuding over who get what.

The legislation, drafted by Rep. Charles Rangel (D-Manhattan), includes a swath of Bronx waterfront and the neighborhood around Yankee Stadium. The plan submitted to HUD last year promised matching funds from the city and state, for a total of $300 million for the zone over the next 10 years.

"We've been telling HUD they've been hoodwinked," said Nunn.

But a spokeswoman from the Harlem Urban Development Corp., which is playing a coordinating role in the Manhattan section of the zone, insisted that the governor has offered his full support.

"The governor has assured the congressman the state will honor its commitment," the spokeswoman, Sam Mattingly-Wilford, said of Gov. Pataki's repeated assurances.

"The governor is an honorable man," she said. "We are confident he will keep his word."

While many residents and business owners were cautious, most who attended the meeting agreed with the goals of the empowerment zone program.

"We're talking about empowerment," said Rodriguez "Monetary empowerment. Money."

As negotiations continue, Nunn has invited zone residents and business owners to another meeting at Hostos Community College Saturday. The meeting will be held in Building C between 10 a.m. and 4 p.m. For information, call 590-3948.


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The Bronx Beat, February 27, 1995