February 19-25 1989 CHIGAN CmZE
. P 15
aENTON HARBOR AREA NEV;S
Enterprise Zone needs
time, supporters slay
By F1 s. said that enterprise zone ideas the program. The research
Capital News &TVice . have proven effective in areas team, which was headed by
LANSING - Michigan's around the country. But the Sheldon and Richard Elling
enterprise zone program for r program takes some tim to from the University's Depart: I
economically ailing towns has show success, she said ment of Political Science, out
not yet generated major bus i- . "Enterprise zones don't be- lined recommendations in a
ness developments in its pilot come successful in the first few 146-page study' conducted last
city of Benton Harbor, but give years," and that's the case in April. I
it time, supporters say. ,Benton Harbor, Sheldon said Benton Harbor's slow
A 1985 law established the 'We stress the fact that i 's development can also be at-
Enterprise Zone (EZ) too early to tell," said Sheldon. tributed to its lack of resources
program, inviting businesses to "There are so many problems in to work with, such as land and.
expand and relocate in desig- Benton ,Harbor 'hat the buildings, she said.
nated low-income areas. Incen- enterprise zone doesn't ad- "It has a crushing number of
tives for the business moves in- dress." \ I c problems that lare negative" she.
elude reductions in property Sheldon said the state is "par- said "The �nefits tha ,are in
and Single Business Tax tially" heading in the right direc- 0 the: enterp J.Se zone" don tout-
Benton Harbor, as one of tion with the program, but some weigh the problems. .
Michigan's economically of the ideas need to be changed Iverson .agreed, .saymg �at
troubled cities, was chosen in for better long-term results she �e EerprlSe zone IS a �argam-
1986 as the program's pilot 'd. ' 109 ble. The state brings tax
sal "Th te: is redu iOQ incentives and Ben-
project. Toward the end of the e en er prrse zone 1 H bo h I' h.. If h
original trial period the date was probably not the best tool to ad- to?d :: r as 1�1{;!0 0 le�, e
expanded to December 1990, dress these problems," she said." S�l: ut so!1le usmess ave
said John Iverson, a Depart- "In the long run it probab y will shtdll�dvestcd 10 Benton Harbor,
f C . h ..." c sal .
ment 0 ommerce repre- ave a posmvc Impact. "T busi hi'
sent tive. Sheldon said she and a en usmcsses ave re 0-
Ann Workman Sheldon, a W St t h t cated and expanded as a conse-
ayne a c researc cam f h .
Wayne State University Center recommended that the state quencc 0 t e enterp�lse zone
for Urban Studies researcher,' d d h package," Iverson said.Aaron
conunue, expan an c angc A th B t H bo:
I ' . n any, en on ar or s
'La dl d' Itt -II economic director.said another
n or s say enan S WI problem is that the enterprise
o zone should co centrate more
bear burden of'fee hikel' ��y�U����s(:re::Yc:���d��i�
ne sscs 'owners were dis
couraged from expanding, he
said.
According to the enterprise
zone requirements, existing
Benton Harbor businesses had
to' almost double in order to
quality, he said. I
"P�ut of the problem of the
enterprises zone is whithin the
city limits,' Anthony iad. '1A Jot
of existing busincs es looked at
the 'doubling qualifier and said,
no I can't do that, he said.
Anthony said: however, that
the enterprises zone is under
rated. Tho current program has
attracted three more busi
nesses, creating 15 new jobs
With 40 other jobs pending, he
said:'
Anthony said he thinks the
Wayne State tudy is too pes
simistic.
I disagree in some respects
with the study," he aid. "I would
beg to differ that the enterprise
zone won't work. It needs to be
fine tuned to do better."
Although the program has
attracted some businesses and
helped others expand, it has a
long way to go before
prosperity, Sheldon aid. In
about a 10-year .span the
program will show more posi
tive growth in Benton Harbor,
she said. I
Sheldon's study concluded
that the enterprise program is
overall beneficia to Benton
Harbor and the Twin Cities area
of Southwestern Michigan. The
study compared Michigan's'
program with the successes and
failures of others states, includ
ing Ohio, Indiana, Dlinois and
Kentucky.
8y Bernice Brown
BE TO HARBOR
Members of theBenton Harbor
Landlord, A sociation showed
up at the Monday night,
Fcbruarv 13, Benton Harbor
City 0�111ission meeting, rc
que. ting that the Mayor and
C0111mi. ioner. recon. ider the
pr oposal to increase rental
registration fees.
.Will Brun cumb Vitt Prcsi
d . n t of the Ben ton H arhor
Landlord A . ,) .iatiou . aid, they
(the a .. iciation) ohj .ctcd to the
passim; .of the registration fees
and "hOI c the commission
would take under considcra
tic n " t h a t this will cause
"another hard. hip" II renters to
who are already "living below
the provcrty level".
He aid he's ure the com
missi n i. n )t aware of "what the
landlord! arc going under, what
problems would be put on the
people that live in these houses."
Bran cumb presented a let
ter to the comrni sion from the
Association's president, John
Blackamorc. The letter stated
that the association vas "op
posed to the arbitrary, capri
c i o� and discriminatory
dccisi n on the part of the Ben
ton H ar r ity Commission to
im po n illegal, if not extra
legal rental registration fee on
rental property' in the City of
Benton Harbor."
"Current fee, along with taxes
paid on property in the City of
Benton Harbor is more than
adequa c to meet the inspection
n ds for the city," he added
e further beli e that this
is clearly an attempt on the part
• ; • l '.a ' <I j
of the commission to gouge
landlords for more money for
inspection fees, knowing full
v ell that the landlord has no
other choice hut Lo pass this in
ere: cd cost along to, tenants
who are already finding it dif
ficult to meet current rental
rates. and at the same time feed
their family,' he added.
'The ci y's rental prop isal in
our view implies, disrespect, if
not total disregard for tenants in
the city, • he concluded.
Brunscurnb al. 0 said that
s me or the things in the City'.
Five-year 'plan are "not going to
give the Black business a chance
to grow."
He said that City Manager
Steve Manning i. telling the
people to come to the In
cubator Program and once they
get n their feet then they will
"take stand - give them a hand."
"I don't feel Black businesses
arc going to have a fair share in
this", Branscumb said. "If I'm
wrong then prove I'm wrong by
giving the same aero s the
board. I don't want to cc any
discrimination here." he added.
Branscumb also complained
that minority contractors in the
city haven't been gelling enough
of the city's business.
He claimed that the contrac
tors awarded contracts in the
cit didn't have "enough Blacks"
working for them.. "This is not
ju t a racial thing," Branscum
aid, "I don't want to make it ra
cial. I thin you are discriminat
ing against the poor people, this
is what I'm concerned about, "he
added
I CODtiia"�d
� ..
•
to train �ff
DCA, TIR
I
By Beriaice Brown
BENTON H RBOR -
The Downtown Development
Authority (DQA) and the T�
Increment Finance Authority
(TIFA) boards met Wednes
day, February 15, instead of
their regular scheduled date,
which is the second wednesday
of the month.
The DDA and TIFA board
members approved a contract
with Sandra Dudley, a student
at Andrews University, Berrien
Springs, to train Jacqueline
Bell, Administrative Assistant
for DDA and TIFA and other
staff members in Record Keep
ing on Computer.
Cost is $2,100, which will be
broken up in three phases.
DDA will pay $1,400 and TIFA,
$700. Contract ends- June 30,
1989.
The Board accepted the'
resignation of Judith Lectka
from DDA & TIFA board as of
February 1. She stated in a let
ter the reason for her resigna
tion was a job transfer to
Traverse City with Michigan
Bell Telephone Company.
Lectka's term did not expire
until AUguS4 1992.
In other business the DDA &
TIFA Boards approved the fol
lowing:
- Payment to accountin
firm of Plante Moran for 'an
amount of $10,415 for audit ser
vices for D DA and an amount of
$1,695'.00 for audit services for
TIFA.
- Payment to e firm of
Clary, Nantz for legal rvice in
the amount of$10,005.4 .Clary,
antz represented DDA i e
suit, Alex Little vs D D in
hich charges were �oppe .
- The Board alsp approved
entering into a Revenue Sharing
Agreement with th City of Ben
ton HarbOr, which Ie DDA will
pay bac to the city $162,383.15,
for 28.7.mills for taxes collected
and TIFA, $37,795.93 for 28.7
mills for taxes collected.
.L. Hiring of part -time main
tenance/security wor er at Vin
cent Place.
- Fill the position for an Ad
ministrative aide, no later than
March 8.
- Amended By La�s for
DDA& TIFA.
Denied the pur
chase/lease of construc
tion/demolition equipment
from Valenti Inc., Coloma, .
Michigan.
- Reschedule bid opening
date for demolition f various
buildings in the city to Tues
February 21.
- TIF A approve a contra
with Lemac Sewer Company in
an amount of $1,562.50 for
sewer cleaning on Water treet.
Aaron Anthony, Director for
D DA & Tl F� advised th
board to see what DDA &
TlFA's rote is in the Incubator
project.
I