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Map: The Empowerment Zone

Boro's zone hopefuls fear same old story

By C. J. Chivers, Staff Reporter

As borough leaders refine plans for an anticipated influx of $5.1 million in government cash, residents hope to prevent the patronage and waste that could undermine the job-training programs the money will fund.

"Talk to those people who live out here and they'll say, 'What, another program? Who's the power broker in this one?'" said Carlos Padilla, who owns a medical equipment sales company in Mott Haven. "Who's going to pocket all the money?"

The expected money is the first installment of the South Bronx's portion of the federal empowerment zone, which is a program of tax breaks and government grants designed to stimulate business activity in beleaguered urban areas over a 10-year period.

The borough, which is part of a zone that includes upper Manhattan that is scheduled to receive $10 million a year from the federal government. The city and the state have pledged to match these grants. If all goes as planned, the Bronx's share equals $5.1 million each year.

"We're going to do our best with the money that has been given to us," said Kevin Nunn, president of the Bronx Overall Economic Development Corp., the arm of the borough president's office that is coordinating the local portion of the zone. "It's not a panacea, but we hope it will make a meaningful difference.

The corporation's draft budget targets job skills as the key to improving the borough's business climate.

In doing so, it earmarks money for apprenticeships, clerical training, business skills for entrepreneurs and developing proficiency in English.

But after reviewing the budget, some residents expressed concern that money will be squandered on the rents and payrolls of social service agencies.

"I don't think these will be efficient programs," said John Shipp, chairman of the economic development committee for Community Board 4. "These programs will be top-heavy with administration and will not reach the people they should reach."

Some proposed services may also duplicate existing programs.

As an example, the draft budget allocates $1,700 a student for "entrepreneurial training," which includes assistance in starting small businesses.

By comparison, the Bronx Community College offers six-week bookkeeping and business writing classes for $85 and $50, respectively. An eight-week typing class costs $90.

But borough leaders say such training is necessary.

"There is a huge mismatch in New York City between the skills employers want and the skills residents have," Nunn said.

The borough's business owners agreed that many residents are not ready for the job market.

"Right now we have a problem with employees coming into the work force who can't even listen," said Pat Canale, who owns a sandwich shop near Yankee Stadium. "You tell them to give you a large cup of coffee, and they give you a light cup of coffee. And then you tell them to give you a light cup of coffee and they give you a large cup of coffee."

Another concern is matching the training to employers. Padilla recalled training programs for truck drivers and beauticians that left graduates with licenses and diplomas, but no jobs.

"For a while every girl I went out with was a beautician," he said. "They could do your hair all day, but they couldn't get a job."

But others cautioned that for some would-be workers, training programs may be too little too late.

"There is no way that you can take someone who dropped out of high school and expect that in a six-week turnaround time they are going to come out with the skills of someone who has a higher degree," said Maritza Owens, owner of the Anwa Group, a consulting firm located near the Grand Concourse.

More than 50 percent of zone residents over the age of 25 do not have a high school diploma. Less than 6 percent of zone residents have a college degree.

Grants should be tied to performance standards, such as how many students find -- and keep -- jobs, Owens said.

"Don't give somebody $100,000 and at the end of six months they come back at you say, `Well, we could only place two people,'" Owens said.

Local business people lauded the development corporation for including residents in the process of refining the budget.

But many also said that they are wary.

"It always happens," Canale said. "Somewhere along the line somebody gets sticky fingers."

Nunn welcomed the budget's critics.

"I'm glad they are here," he said. "They are going to keep the whole process honest."


The Bronx Beat, March 13, 1995